Calendar No. 373

106TH CONGRESS

1ST SESSION S. 225

[Report No. 106–192]

A BILL

To provide Federal housing assistance to Native

Hawaiians.

NOVEMBER 2, 1999

Committee on Banking, Housing, and Urban Affairs discharged pursuant to the order of October 27, 1999,

and placed on the calendar
II

Calendar No. 373

106TH CONGRESS

1ST SESSION S. 225

[Report No. 106–192]

To provide Federal housing assistance to Native Hawaiians.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

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

was read twice and referred to the Committee on Indian Affairs

OCTOBER 14, 1999

Reported by Mr. CAMPBELL, with an amendment

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

OCTOBER 27, 1999

Referred sequentially to the Committee on Banking, Housing, and Urban Affairs, and if the bill is not reported by that Committee by November 2,

1999, the Committee be discharged from further consideration thereof,

and the bill be placed on the calendar, by unanimous consent

NOVEMBER 2, 1999

Committee on Banking, Housing, and Urban Affairs discharged pursuant to

the order of October 27, 1999, and placed on the calendar

A BILL

To provide Federal housing assistance to Native Hawaiians.

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

2 This Act may be cited as the ‘‘Native American

3 Housing Assistance and Self-Determination Amendments

4 of 1999’’.

5 SEC. 2. FINDINGS.

6 Congress finds that—

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

9 States by—

10 (A) employing its resources to remedy the

11 unsafe and unsanitary housing conditions and

12 the acute shortage of decent, safe, and sanitary

13 dwellings for families of lower income; and

14 (B) developing effective partnerships with

15 governmental and private entities to accomplish

16 the objectives referred to in subparagraph (A);

17 (2) pursuant to the provisions of the Hawaiian

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

19 seq.), the United States set aside 200,000 acres of

20 land in the Federal territory that later became the

21 State of Hawaii in order to establish a homeland for

22 the native people of Hawaii—Native Hawaiians;

23 (3) despite the intent of Congress in 1920 to

24 address the housing needs of Native Hawaiians

25 through the enactment of the Hawaiian Homes

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

2 legal position that subsequently enacted Federal

3 housing laws designed to address the housing needs

4 of all eligible families in the United States could not

5 be extended to address the needs for housing and in6 frastructure development on Hawaiian home lands

7 (as that term is defined in section 801 of the Native

8 American Housing Assistance and Self-Determina9 tion Act of 1996, as added by section 3 of this Act)

10 with the result that otherwise eligible Native Hawai11 ians residing on the Hawaiian home lands have been

12 foreclosed from participating in Federal housing as13 sistance programs available to all other eligible fami14 lies in the United States;

15 (4) although Federal housing assistance pro16 grams have been administered on a racially neutral

17 basis in the State of Hawaii, Native Hawaiians con18 tinue to have the greatest unmet need for housing

19 and the highest rates of overcrowding in the United

20 States;

21 (5) among the Native American population of

22 the United States, Native Hawaiians experience the

23 highest percentage of housing problems in the

24 United States, as the percentage—
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1 (A) of housing problems in the Native Ha2 waiian population is 49 percent, as compared

3 to—

4 (i) 44 percent for American Indian

5 and Alaska Native households in Indian

6 country; and

7 (ii) 27 percent for all other house8 holds in the United States; and

9 (B) overcrowding in the Native Hawaiian

10 population is 36 percent as compared to 3 per11 cent for all other households in the United

12 States;

13 (6) among the Native Hawaiian population, the

14 needs of Native Hawaiians, as that term is defined

15 in section 801 of the Native American Housing As16 sistance and Self-Determination Act of 1996, as

17 added by section 3 of this Act, eligible to reside on

18 the Hawaiian Home Lands are the most severe,

19 as—

20 (A) the percentage of overcrowding in Na21 tive Hawaiian households on the Hawaiian

22 Home Lands is 36 percent; and

23 (B) approximately 13,000 Native Hawai24 ians, which constitute 95 percent of the Native
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1 Hawaiians who are eligible to reside on the Ha2 waiian Home Lands, are in need of housing;

3 (7) applying the Department of Housing and

4 Urban Development guidelines—

5 (A) 70.8 percent of Native Hawaiians who

6 either reside or who are eligible to reside on the

7 Hawaiian Home Lands have incomes that fall

8 below the median family income; and

9 (B) 50 percent of Native Hawaiians who

10 either reside or who are eligible to reside on the

11 Hawaiian Home Lands have incomes below 30

12 percent of the median family income; and

(8) 1 13 ⁄3 of those Native Hawaiians who are eligi14 ble to reside on the Hawaiian Home Lands pay

15 more than 30 percent of their income for shelter,

and 1 16 ⁄2 of those Native Hawaiians face overcrowding;

17 (9) the extraordinarily severe housing needs of

18 Native Hawaiians demonstrate that Native Hawai19 ians who either reside on, or are eligible to reside on,

20 Hawaiian Home Lands have been denied equal ac21 cess to Federal low-income housing assistance pro22 grams available to other qualified residents of the

23 United States, and that a more effective means of

24 addressing their housing needs must be authorized;
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1 (10) consistent with the recommendations of

2 the National Commission on American Indian, Alas3 ka Native, and Native Hawaiian Housing, and in

4 order to address the continuing prevalence of ex5 traordinarily severe housing needs among Native

6 Hawaiians who either reside or are eligible to reside

7 on the Hawaiian Home Lands, Congress finds it

8 necessary to extend the Federal low-income housing

9 assistance available to American Indians and Alaska

10 Natives under the Native American Housing Assist11 ance and Self-Determination Act of 1996 (25 U.S.C.

12 4101 et seq.) to those Native Hawaiians;

13 (11) under the treatymaking power of the

14 United States, Congress had the authority to con15 firm a treaty between the United States and the

16 government that represented the Hawaiian people

17 under clause 3 of section 8 of article I of the Con18 stitution, the authority of Congress to address mat19 ters affecting the indigenous peoples of the United

20 States includes the authority to address matters af21 fecting Native Hawaiians;

22 (12) through treaties, Federal statutes, and rul23 ings of the Federal courts, the United States has

24 recognized and reaffirmed that—
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1 (A) the political status of Native Hawai2 ians is comparable to that of American Indians

3 and Alaska Natives; and

4 (B) the aboriginal, indigenous people of

5 the United States have—

6 (i) a continuing right to autonomy in

7 their internal affairs; and

8 (ii) an ongoing right of self-deter9 mination and self-governance that has

10 never been extinguished;

11 (13) the political relationship between the

12 United States and the Native Hawaiian people has

13 been recognized and reaffirmed by the United States

14 as evidenced by the inclusion of Native Hawaiians

15 in—

16 (A) the Native American Programs Act of

17 1974 (42 U.S.C. 2291 et seq.);

18 (B) the American Indian Religious Free19 dom Act (42 U.S.C. 1996 et seq.);

20 (C) the National Museum of the American

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

22 (D) the Native American Graves Protec23 tion and Repatriation Act (25 U.S.C. 3001 et

24 seq.);
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1 (E) the National Historic Preservation Act

2 (16 U.S.C. 470 et seq.);

3 (F) the Native American Languages Act of

4 1992 (106 Stat. 3434);

5 (G) the American Indian, Alaska Native

6 and Native Hawaiian Culture and Arts Devel7 opment Act (20 U.S.C. 4401 et seq.);

8 (H) the Job Training Partnership Act (29

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

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

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

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

13 has recognized and reaffirmed the political relation14 ship with the Native Hawaiian people through—

15 (A) the enactment of the Hawaiian Homes

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

17 which set aside approximately 200,000 acres of

18 public lands that became known as Hawaiian

19 Home Lands in the Territory of Hawaii that

20 had been ceded to the United States for home21 steading by Native Hawaiians in order to reha22 bilitate a landless and dying people;

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

24 Act to provide for the admission of the State of
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1 Hawaii into the Union’’, approved March 18,

2 1959 (73 Stat. 4)—

3 (i) by ceding to the State of Hawaii

4 title to the public lands formerly held by

5 the United States, and mandating that

6 those lands be held in public trust, for the

7 betterment of the conditions of Native Ha8 waiians, as that term is defined in section

9 801(15) of the Native American Housing

10 Assistance and Self-Determination Act of

11 1996, as added by section 3 of this Act;

12 and

13 (ii) by transferring what the United

14 States considered to be a trust responsi15 bility for the administration of Hawaiian

16 Home Lands to the State of Hawaii, but

17 retaining the authority to enforce the

18 trust, including the exclusive right of the

19 United States to consent to any actions af20 fecting the lands which comprise the cor21 pus of the trust and any amendments to

22 the Hawaiian Homes Commission Act,

23 1920 (42 Stat. 108 et seq.), enacted by the

24 legislature of the State of Hawaii affecting

25 the rights of beneficiaries under the Act;
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1 (C) the authorization of mortgage loans in2 sured by the Federal Housing Administration

3 for the purchase, construction, or refinancing of

4 homes on Hawaiian Home Lands under the Act

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

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

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

8 (D) authorizing Native Hawaiian represen9 tation on the National Commission on Amer10 ican Indian, Alaska Native, and Native Hawai11 ian Housing under Public Law 101–235;

12 (E) the inclusion of Native Hawaiians in

13 the definition under section 3764 of title 38,

14 United States Code, applicable to subchapter V

15 of chapter 37 of title 38, United States Code

16 (relating to a housing loan program for Native

17 American veterans); and

18 (F) the enactment of the Hawaiian Home

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

20 491, note prec.) which establishes a process for

21 the conveyance of Federal lands to the Depart22 ment of Hawaiian Homes Lands that are equiv23 alent in value to lands acquired by the United

24 States from the Hawaiian Home Lands inven25 tory.
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1 SEC. 3. HOUSING ASSISTANCE.

2 The Native American Housing Assistance and Self3 Determination Act of 1996 (25 U.S.C. 4101 et seq.) is

4 amended by adding at the end the following:

5 ‘‘TITLE VIII—HOUSING ASSIST6 ANCE FOR NATIVE HAWAI7 IANS

8 ‘‘SEC. 801. DEFINITIONS.

9 ‘‘In this title:

10 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;

11 DEPARTMENT.—The term ‘Department of Hawaiian

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

13 department of the government of the State of Ha14 waii that is responsible for the administration of the

15 Hawaiian Homes Commission Act, 1920 (42 Stat.

16 108 et seq.).

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

18 the Director of the Department of Hawaiian Home

19 Lands.

20 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI21 LIES.—

22 ‘‘(A) IN GENERAL.—The term ‘elderly

23 family’ or ‘near-elderly family’ means a family

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

25 member, is—
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1 ‘‘(i) for an elderly family, an elderly

2 person; or

3 ‘‘(ii) for a near-elderly family, a near4 elderly person.

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

6 term ‘elderly family’ or ‘near-elderly family’

7 includes—

8 ‘‘(i) 2 or more elderly persons or near9 elderly persons, as the case may be, living

10 together; and

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

12 clause (i) living with 1 or more persons de13 termined under the housing plan to be es14 sential to their care or well-being.

15 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha16 waiian Home Lands’ means lands that—

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

18 lands under section 204 of the Hawaiian

19 Homes Commission Act (42 Stat. 110); or

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

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

22 means an area of Hawaiian Home Lands with re23 spect to which the Department of Hawaiian Home

24 Lands is authorized to provide assistance for afford25 able housing under this Act.
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1 ‘‘(6) HOUSING ENTITY.—The term ‘housing en2 tity’ means the Department of Hawaiian Home

3 Lands.

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

5 means a plan developed by the Department of Ha6 waiian Home Lands.

7 ‘‘(8) MEDIAN INCOME.—The term ‘median in8 come’ means, with respect to an area that is a Ha9 waiian housing area, the greater of—

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

11 housing area, which shall be determined by the

12 Secretary; or

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

14 Hawaii.

15 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native

16 Hawaiian’ has the meaning given the term ‘Native

17 Hawaiian’ in section 201 of the Hawaiian Homes

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

19 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING

20 ACTIVITIES.

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

22 Secretary shall (to the extent amounts are made available

23 to carry out this title) make a grant under this title to

24 the Department of Hawaiian Home Lands to carry out
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1 affordable housing activities for Native Hawaiian families

2 on or near Hawaiian Home Lands.

3 ‘‘(b) PLAN REQUIREMENT.—

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

5 grant under this title to the Department of Hawai6 ian Home Lands for a fiscal year only if—

7 ‘‘(A) the Director has submitted to the

8 Secretary a housing plan for that fiscal year;

9 and

10 ‘‘(B) the Secretary has determined under

11 section 804 that the housing plan complies with

12 the requirements of section 803.

13 ‘‘(2) WAIVER.—The Secretary may waive the

14 applicability of the requirements under paragraph

15 (1), in part, if the Secretary finds that the Depart16 ment of Hawaiian Home Lands has not complied or

17 cannot comply with those requirements due to cir18 cumstances beyond the control of the Department of

19 Hawaiian Home Lands.

20 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

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

22 amounts provided under a grant under this section may

23 be used only for affordable housing activities under this

24 title that are consistent with a housing plan approved

25 under section 804.
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1 ‘‘(d) ADMINISTRATIVE EXPENSES.—

2 ‘‘(1) IN GENERAL.—The Secretary shall, by

3 regulation, authorize the Department of Hawaiian

4 Home Lands to use a percentage of any grant

5 amounts received under this title for any reasonable

6 administrative and planning expenses of the Depart7 ment relating to carrying out this title and activities

8 assisted with those amounts.

9 ‘‘(2) ADMINISTRATIVE AND PLANNING EX10 PENSES.—The administrative and planning expenses

11 referred to in paragraph (1) include—

12 ‘‘(A) costs for salaries of individuals en13 gaged in administering and managing afford14 able housing activities assisted with grant

15 amounts provided under this title; and

16 ‘‘(B) expenses incurred in preparing a

17 housing plan under section 803.

18 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc19 tor shall make all reasonable efforts, consistent with the

20 purposes of this title, to maximize participation by the pri21 vate sector, including nonprofit organizations and for22 profit entities, in implementing a housing plan that has

23 been approved by the Secretary under section 803.

24 ‘‘(f) APPLICABILITY OF OTHER PROVISIONS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall be

2 guided by the relevant program requirements of ti3 tles I, II, and IV in the implementation of housing

4 assistance programs for Native Hawaiians under

5 this title.

6 ‘‘(2) EXCEPTION.—The Secretary may make

7 exceptions to, or modifications of, program require8 ments for Native American housing assistance set

9 forth in titles I, II, and IV as necessary and appro10 priate to meet the unique situation and housing

11 needs of Native Hawaiians.

12 ‘‘SEC. 803. HOUSING PLAN.

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

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

15 plan under this section for each fiscal year; and

16 ‘‘(2) provide for the review of each plan sub17 mitted under paragraph (1).

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

19 section shall—

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

21 and

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

23 beginning with the fiscal year for which the plan is

24 submitted, the following information:
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1 ‘‘(A) MISSION STATEMENT.—A general

2 statement of the mission of the Department of

3 Hawaiian Home Lands to serve the needs of

4 the low-income families to be served by the De5 partment.

6 ‘‘(B) GOAL AND OBJECTIVES.—A state7 ment of the goals and objectives of the Depart8 ment of Hawaiian Home Lands to enable the

9 Department to serve the needs identified in

10 subparagraph (A) during the period.

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

12 the activities planned during the period includ13 ing an analysis of the manner in which the ac14 tivities will enable the Department to meet its

15 mission, goals, and objectives.

16 ‘‘(c) 1-YEAR PLAN.—A housing plan under this sec17 tion shall—

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

19 and

20 ‘‘(2) contain the following information relating

21 to the fiscal year for which the assistance under this

22 title is to be made available:

23 ‘‘(A) GOALS AND OBJECTIVES.—A state24 ment of the goals and objectives to be accom25 plished during the period covered by the plan.
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1 ‘‘(B) STATEMENT OF NEEDS.—A state2 ment of the housing needs of the low-income

3 families served by the Department and the

4 means by which those needs will be addressed

5 during the period covered by the plan,

6 including—

7 ‘‘(i) a description of the estimated

8 housing needs and the need for assistance

9 for the low-income families to be served by

10 the Department, including a description of

11 the manner in which the geographical dis12 tribution of assistance is consistent with—

13 ‘‘(I) the geographical needs of

14 those families; and

15 ‘‘(II) needs for various categories

16 of housing assistance; and

17 ‘‘(ii) a description of the estimated

18 housing needs for all families to be served

19 by the Department.

20 ‘‘(C) FINANCIAL RESOURCES.—An oper21 ating budget for the Department of Hawaiian

22 Home Lands, in a form prescribed by the Sec23 retary, that includes—

24 ‘‘(i) an identification and a descrip25 tion of the financial resources reasonably
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1 available to the Department to carry out

2 the purposes of this title, including an ex3 planation of the manner in which amounts

4 made available will be used to leverage ad5 ditional resources; and

6 ‘‘(ii) the uses to which the resources

7 described in clause (i) will be committed,

8 including—

9 ‘‘(I) eligible and required afford10 able housing activities; and

11 ‘‘(II) administrative expenses.

12 ‘‘(D) AFFORDABLE HOUSING RE13 SOURCES.—A statement of the affordable hous14 ing resources currently available at the time of

15 the submittal of the plan and to be made avail16 able during the period covered by the plan,

17 including—

18 ‘‘(i) a description of the significant

19 characteristics of the housing market in

20 the State of Hawaii, including the avail21 ability of housing from other public

22 sources, private market housing; and

23 ‘‘(ii) the manner in which the charac24 teristics referred to in clause (i) influence

25 the decision of the Department of Hawai-
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1 ian Home Lands to use grant amounts to

2 be provided under this title for—

3 ‘‘(I) rental assistance;

4 ‘‘(II) the production of new units;

5 ‘‘(III) the acquisition of existing

6 units; or

7 ‘‘(IV) the rehabilitation of units;

8 ‘‘(iii) a description of the structure,

9 coordination, and means of cooperation be10 tween the Department of Hawaiian Home

11 Lands and any other governmental entities

12 in the development, submission, or imple13 mentation of housing plans, including a de14 scription of—

15 ‘‘(I) the involvement of private,

16 public, and nonprofit organizations

17 and institutions;

18 ‘‘(II) the use of loan guarantees

19 under section 184A of the Housing

20 and Community Development Act of

21 1992; and

22 ‘‘(III) other housing assistance

23 provided by the United States, includ24 ing loans, grants, and mortgage insur25 ance;
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1 ‘‘(iv) a description of the manner in

2 which the plan will address the needs iden3 tified pursuant to subparagraph (C);

4 ‘‘(v) a description of—

5 ‘‘(I) any existing or anticipated

6 homeownership programs and rental

7 programs to be carried out during the

8 period covered by the plan; and

9 ‘‘(II) the requirements and as10 sistance available under the programs

11 referred to in subclause (I);

12 ‘‘(vi) a description of—

13 ‘‘(I) any existing or anticipated

14 housing rehabilitation programs nec15 essary to ensure the long-term viabil16 ity of the housing to be carried out

17 during the period covered by the plan;

18 and

19 ‘‘(II) the requirements and as20 sistance available under the programs

21 referred to in subclause (I);

22 ‘‘(vii) a description of—

23 ‘‘(I) all other existing or antici24 pated housing assistance provided by

25 the Department of Hawaiian Home
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1 Lands during the period covered by

2 the plan, including—

3 ‘‘(aa) transitional housing;

4 ‘‘(bb) homeless housing;

5 ‘‘(cc) college housing; and

6 ‘‘(dd) supportive services

7 housing; and

8 ‘‘(II) the requirements and as9 sistance available under such pro10 grams;

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

12 to be demolished or disposed of;

13 ‘‘(II) a timetable for that demolition

14 or disposition; and

15 ‘‘(III) any other information required

16 by the Secretary with respect to that dem17 olition or disposition;

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

19 which the Department of Hawaiian Home

20 Lands will coordinate with welfare agencies

21 in the State of Hawaii to ensure that resi22 dents of the affordable housing will be pro23 vided with access to resources to assist in

24 obtaining employment and achieving self25 sufficiency;
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1 ‘‘(x) a description of the requirements

2 established by the Department of Hawai3 ian Home Lands to—

4 ‘‘(I) promote the safety of resi5 dents of the affordable housing;

6 ‘‘(II) facilitate the undertaking of

7 crime prevention measures;

8 ‘‘(III) allow resident input and

9 involvement, including the establish10 ment of resident organizations; and

11 ‘‘(IV) allow for the coordination

12 of crime prevention activities between

13 the Department and local law enforce14 ment officials; and

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

16 will carry out the activities under the plan,

17 including the organizational capacity and

18 key personnel of the entities.

19 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

20 Evidence of compliance that shall include, as

21 appropriate—

22 ‘‘(i) a certification that the Depart23 ment of Hawaiian Home Lands will com24 ply with—
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1 ‘‘(I) title VI of the Civil Rights

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

3 or with title VIII of the Civil Rights

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

5 in carrying out this title, to the extent

6 that such title is applicable; and

7 ‘‘(II) other applicable Federal

8 statutes;

9 ‘‘(ii) a certification that the Depart10 ment will require adequate insurance cov11 erage for housing units that are owned and

12 operated or assisted with grant amounts

13 provided under this title, in compliance

14 with such requirements as may be estab15 lished by the Secretary;

16 ‘‘(iii) a certification that policies are

17 in effect and are available for review by the

18 Secretary and the public governing the eli19 gibility, admission, and occupancy of fami20 lies for housing assisted with grant

21 amounts provided under this title;

22 ‘‘(iv) a certification that policies are

23 in effect and are available for review by the

24 Secretary and the public governing rents

25 charged, including the methods by which
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1 such rents or homebuyer payments are de2 termined, for housing assisted with grant

3 amounts provided under this title; and

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

5 effect and are available for review by the

6 Secretary and the public governing the

7 management and maintenance of housing

8 assisted with grant amounts provided

9 under this title.

10 ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

11 ‘‘(1) IN GENERAL.—To the extent that the re12 quirements of title VI of the Civil Rights Act of

13 1964 (42 U.S.C. 2000d et seq.) or of title VIII of

14 the Civil Rights Act of 1968 (42 U.S.C. 3601 et

15 seq.) apply to assistance provided under this title,

16 nothing in the requirements concerning discrimina17 tion on the basis of race shall be construed to pre18 vent the provision of assistance under this title—

19 ‘‘(A) to the Department of Hawaiian

20 Home Lands on the basis that the Department

21 served Native Hawaiians; or

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

23 the family is a Native Hawaiian family.

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

25 this title may be restricted to Native Hawaiians.
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1 Subject to the preceding sentence, no person may be

2 discriminated against on the basis of race, color, na3 tional origin, religion, sex, familial status, or dis4 ability.

5 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a

6 condition of receiving grant amounts under this title, the

7 Department of Hawaiian Home Lands shall, to the extent

8 practicable, provide for private nonprofit organizations ex9 perienced in the planning and development of affordable

10 housing for Native Hawaiians to carry out affordable

11 housing activities with those grant amounts.

12 ‘‘SEC. 804. REVIEW OF PLANS.

13 ‘‘(a) REVIEW AND NOTICE.—

14 ‘‘(1) REVIEW.—

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

16 conduct a review of a housing plan submitted to

17 the Secretary under section 803 to ensure that

18 the plan complies with the requirements of that

19 section.

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

21 have the discretion to review a plan referred to

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

23 Secretary considers that the review is necessary.

24 ‘‘(2) NOTICE.—
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1 ‘‘(A) IN GENERAL.—Not later than 60

2 days after receiving a plan under section 803,

3 the Secretary shall notify the Director of the

4 Department of Hawaiian Home Lands whether

5 the plan complies with the requirements under

6 that section.

7 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

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

9 the Secretary does not notify the Director, as

10 required under this subsection and subsection

11 (b), upon the expiration of the 60-day period

12 described in subparagraph (A)—

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

14 have been determined to comply with the

15 requirements under section 803; and

16 ‘‘(ii) the Director shall be considered

17 to have been notified of compliance.

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

19 NONCOMPLIANCE.—If the Secretary determines that a

20 plan submitted under section 803 does not comply with

21 the requirements of that section, the Secretary shall speci22 fy in the notice under subsection (a)—

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

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

25 meet the requirements of section 803.
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1 ‘‘(c) REVIEW.—

2 ‘‘(1) IN GENERAL.—After the Director of the

3 Department of Hawaiian Home Lands submits a

4 housing plan under section 803, or any amendment

5 or modification to the plan to the Secretary, to the

6 extent that the Secretary considers such action to be

7 necessary to make a determination under this sub8 section, the Secretary shall review the plan (includ9 ing any amendments or modifications thereto) to de10 termine whether the contents of the plan—

11 ‘‘(A) set forth the information required by

12 section 803 to be contained in the housing plan;

13 ‘‘(B) are consistent with information and

14 data available to the Secretary; and

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

16 with any provision of this Act or any other ap17 plicable law.

18 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de19 termines under this subsection that any of the ap20 propriate certifications required under section

21 803(c)(2)(E) are not included in a plan, the plan

22 shall be considered to be incomplete.

23 ‘‘(d) UPDATES TO PLAN.—

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

25 after a plan under section 803 has been submitted
29

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1 for a fiscal year, the head of the Department of Ha2 waiian Home Lands may comply with the provisions

3 of that section for any succeeding fiscal year (with

4 respect to information included for the 5-year period

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

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

7 regarding such changes as may be necessary to up8 date the plan previously submitted.

9 ‘‘(2) COMPLETE PLANS.—The Director shall

10 submit a complete plan under section 803 not later

11 than 4 years after submitting an initial plan under

12 that section, and not less frequently than every 4

13 years thereafter.

14 ‘‘(e) EFFECTIVE DATE.—This section and section

15 803 shall take effect on the date provided by the Secretary

16 pursuant to section 807(a) to provide for timely submis17 sion and review of the housing plan as necessary for the

18 provision of assistance under this title for fiscal year 2000.

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

20 STANDARDS.

21 ‘‘(a) PROGRAM INCOME.—

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

23 of Hawaiian Home Lands may retain any program

24 income that is realized from any grant amounts re25 ceived by the Department under this title if—
30

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1 ‘‘(A) that income was realized after the ini2 tial disbursement of the grant amounts received

3 by the Department; and

4 ‘‘(B) the Director agrees to use the pro5 gram income for affordable housing activities in

6 accordance with the provisions of this title.

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

8 The Secretary may not reduce the grant amount for

9 the Department of Hawaiian Home Lands based

10 solely on—

11 ‘‘(A) whether the Department retains pro12 gram income under paragraph (1); or

13 ‘‘(B) the amount of any such program in14 come retained.

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

16 may, by regulation, exclude from consideration as

17 program income any amounts determined to be so

18 small that compliance with the requirements of this

19 subsection would create an unreasonable administra20 tive burden on the Department.

21 ‘‘(b) LABOR STANDARDS.—

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

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

24 shall contain—
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1 ‘‘(A) a provision requiring that an amount

2 not less than the wages prevailing in the local3 ity, as determined or adopted (subsequent to a

4 determination under applicable State or local

5 law) by the Secretary, shall be paid to all archi6 tects, technical engineers, draftsmen, techni7 cians employed in the development and all

8 maintenance, and laborers and mechanics em9 ployed in the operation, of the affordable hous10 ing project involved; and

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

12 than the wages prevailing in the locality, as pre13 determined by the Secretary of Labor pursuant

14 to the Act commonly known as the ‘Davis15 Bacon Act’ (46 Stat. 1494, chapter 411; 40

16 U.S.C. 276a et seq.) shall be paid to all labor17 ers and mechanics employed in the development

18 of the affordable housing involved.

19 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi20 sions relating to wages required under paragraph (1)

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

22 lease under this title, shall not apply to any indi23 vidual who performs the services for which the indi24 vidual volunteered and who is not otherwise em25 ployed at any time in the construction work and re-
32

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1 ceived no compensation or is paid expenses, reason2 able benefits, or a nominal fee for those services.

3 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

4 ‘‘(a) IN GENERAL.—

5 ‘‘(1) RELEASE OF FUNDS.—

6 ‘‘(A) IN GENERAL.—The Secretary may

7 carry out the alternative environmental protec8 tion procedures described in subparagraph (B)

9 in order to ensure—

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

11 Environmental Policy Act of 1969 (42

12 U.S.C. 4321 et seq.) and other provisions

13 of law that further the purposes of such

14 Act (as specified in regulations issued by

15 the Secretary) are most effectively imple16 mented in connection with the expenditure

17 of grant amounts provided under this title;

18 and

19 ‘‘(ii) to the public undiminished pro20 tection of the environment.

21 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO22 TECTION PROCEDURE.—In lieu of applying en23 vironmental protection procedures otherwise ap24 plicable, the Secretary may by regulation pro25 vide for the release of funds for specific projects
33

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1 to the Department of Hawaiian Home Lands if

2 the Director of the Department assumes all of

3 the responsibilities for environmental review,

4 decisionmaking, and action under the National

5 Environmental Policy Act of 1969 (42 U.S.C.

6 4321 et seq.), and such other provisions of law

7 as the regulations of the Secretary specify, that

8 would apply to the Secretary were the Secretary

9 to undertake those projects as Federal projects.

10 ‘‘(2) REGULATIONS.—

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

12 issue regulations to carry out this section only

13 after consultation with the Council on Environ14 mental Quality.

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

16 under this paragraph shall—

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

18 environmental reviews performed under

19 this section;

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

21 facilitate training for the performance of

22 such reviews; and

23 ‘‘(iii) provide for the suspension or

24 termination of the assumption of respon25 sibilities under this section.
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1 ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.—

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

3 shall not be construed to limit or reduce any respon4 sibility assumed by the Department of Hawaiian

5 Home Lands for grant amounts with respect to any

6 specific release of funds.

7 ‘‘(b) PROCEDURE.—

8 ‘‘(1) IN GENERAL.—The Secretary shall author9 ize the release of funds subject to the procedures

10 under this section only if, not less than 15 days be11 fore that approval and before any commitment of

12 funds to such projects, the Director of the Depart13 ment of Hawaiian Home Lands submits to the Sec14 retary a request for such release accompanied by a

15 certification that meets the requirements of sub16 section (c).

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

18 the Secretary of a certification described in para19 graph (1) shall be deemed to satisfy the responsibil20 ities of the Secretary under the National Environ21 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

22 and such other provisions of law as the regulations

23 of the Secretary specify to the extent that those re24 sponsibilities relate to the releases of funds for

25 projects that are covered by that certification.
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1 ‘‘(c) CERTIFICATION.—A certification under the pro2 cedures under this section shall—

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

4 ‘‘(2) be executed by the Director of the Depart5 ment of Hawaiian Home Lands;

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

7 Home Lands has fully carried out its responsibilities

8 as described under subsection (a); and

9 ‘‘(4) specify that the Director—

10 ‘‘(A) consents to assume the status of a re11 sponsible Federal official under the National

12 Environmental Policy Act of 1969 (42 U.S.C.

13 4321 et seq.) and each provision of law speci14 fied in regulations issued by the Secretary to

15 the extent that those laws apply by reason of

16 subsection (a); and

17 ‘‘(B) is authorized and consents on behalf

18 of the Department of Hawaiian Home Lands

19 and the Director to accept the jurisdiction of

20 the Federal courts for the purpose of enforce21 ment of the responsibilities of the Director of

22 the Department of Hawaiian Home Lands as

23 such an official.
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1 ‘‘SEC. 807. REGULATIONS.

2 ‘‘The Secretary shall issue final regulations necessary

3 to carry out this title not later than October 1, 1999.

4 ‘‘SEC. 808. EFFECTIVE DATE.

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

6 this title shall take effect on October 1, 1999.

7 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

8 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI9 LIES.—

10 ‘‘(1) PRIMARY OBJECTIVE.—The national objec11 tives of this title are—

12 ‘‘(A) to assist and promote affordable

13 housing activities to develop, maintain, and op14 erate affordable housing in safe and healthy en15 vironments for occupancy by low-income Native

16 Hawaiian families;

17 ‘‘(B) to ensure better access to private

18 mortgage markets and to promote self-suffi19 ciency of low-income Native Hawaiian families;

20 ‘‘(C) to coordinate activities to provide

21 housing for low-income Native Hawaiian fami22 lies with Federal, State and local activities to

23 further economic and community development;

24 ‘‘(D) to plan for and integrate infrastruc25 ture resources on the Hawaiian Home Lands

26 with housing development; and
37

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1 ‘‘(E) to—

2 ‘‘(i) promote the development of pri3 vate capital markets; and

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

5 clause (i) to operate and grow, thereby

6 benefiting Native Hawaiian communities.

7 ‘‘(2) ELIGIBLE FAMILIES.—

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

9 under subparagraph (B), assistance for eligible

10 housing activities under this title shall be lim11 ited to low-income Native Hawaiian families.

12 ‘‘(B) EXCEPTION TO LOW-INCOME RE13 QUIREMENT.—

14 ‘‘(i) IN GENERAL.—The Director may

15 provide assistance for homeownership ac16 tivities under—

17 ‘‘(I) section 810(b);

18 ‘‘(II) model activities under sec19 tion 810(f); or

20 ‘‘(III) loan guarantee activities

21 under section 184A of the Housing

22 and Community Development Act of

23 1992 to Native Hawaiian families who

24 are not low-income families, to the ex25 tent that the Secretary approves the
38

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1 activities under that section to ad2 dress a need for housing for those

3 families that cannot be reasonably

4 met without that assistance.

5 ‘‘(ii) LIMITATIONS.—The Secretary

6 shall establish limitations on the amount of

7 assistance that may be provided under this

8 title for activities for families that are not

9 low-income families.

10 ‘‘(C) OTHER FAMILIES.—Notwithstanding

11 paragraph (1), the Director may provide hous12 ing or housing assistance provided through af13 fordable housing activities assisted with grant

14 amounts under this title to a family that is not

15 composed of Native Hawaiians if—

16 ‘‘(i) the Department determines that

17 the presence of the family in the housing

18 involved is essential to the well-being of

19 Native Hawaiian families; and

20 ‘‘(ii) the need for housing for the fam21 ily cannot be reasonably met without the

22 assistance.

23 ‘‘(D) PREFERENCE.—

24 ‘‘(i) IN GENERAL.—A housing plan

25 submitted under section 803 may authorize
39

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1 a preference, for housing or housing assist2 ance provided through affordable housing

3 activities assisted with grant amounts pro4 vided under this title to be provided, to the

5 extent practicable, to families that are eli6 gible to reside on the Hawaiian Home

7 Lands.

8 ‘‘(ii) APPLICATION.—In any case in

9 which a housing plan provides for pref10 erence described in clause (i), the Director

11 shall ensure that housing activities that are

12 assisted with grant amounts under this

13 title are subject to that preference.

14 ‘‘(E) USE OF NONPROFIT ORGANIZA15 TIONS.—As a condition of receiving grant

16 amounts under this title, the Department of

17 Hawaiian Home Lands, shall to the extent

18 practicable, provide for private nonprofit orga19 nizations experienced in the planning and devel20 opment of affordable housing for Native Hawai21 ians to carry out affordable housing activities

22 with those grant amounts.
40

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

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

3 under this section are activities conducted in accordance

4 with the requirements of section 811 to—

5 ‘‘(1) develop or to support affordable housing

6 for rental or homeownership; or

7 ‘‘(2) provide housing services with respect to af8 fordable housing, through the activities described in

9 subsection (b).

10 ‘‘(b) ACTIVITIES.—The activities described in this

11 subsection are the following:

12 ‘‘(1) DEVELOPMENT.—The acquisition, new

13 construction, reconstruction, or moderate or sub14 stantial rehabilitation of affordable housing, which

15 may include—

16 ‘‘(A) real property acquisition;

17 ‘‘(B) site improvement;

18 ‘‘(C) the development of utilities and util19 ity services;

20 ‘‘(D) conversion;

21 ‘‘(E) demolition;

22 ‘‘(F) financing;

23 ‘‘(G) administration and planning; and

24 ‘‘(H) other related activities.
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1 ‘‘(2) HOUSING SERVICES.—The provision of

2 housing-related services for affordable housing,

3 including—

4 ‘‘(A) housing counseling in connection with

5 rental or homeownership assistance;

6 ‘‘(B) the establishment and support of

7 resident organizations and resident manage8 ment corporations;

9 ‘‘(C) energy auditing;

10 ‘‘(D) activities related to the provisions of

11 self-sufficiency and other services; and

12 ‘‘(E) other services related to assisting

13 owners, tenants, contractors, and other entities

14 participating or seeking to participate in other

15 housing activities assisted pursuant to this sec16 tion.

17 ‘‘(3) HOUSING MANAGEMENT SERVICES.—The

18 provision of management services for affordable

19 housing, including—

20 ‘‘(A) the preparation of work specifica21 tions;

22 ‘‘(B) loan processing;

23 ‘‘(C) inspections;

24 ‘‘(D) tenant selection;
42

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1 ‘‘(E) management of tenant-based rental

2 assistance; and

3 ‘‘(F) management of affordable housing

4 projects.

5 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI6 TIES.—The provision of safety, security, and law en7 forcement measures and activities appropriate to

8 protect residents of affordable housing from crime.

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

10 under model programs that are—

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

12 this title; and

13 ‘‘(B) specifically approved by the Secretary

14 as appropriate for the purpose referred to in

15 subparagraph (A).

16 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

17 ‘‘(a) RENTS.—

18 ‘‘(1) ESTABLISHMENT.—Subject to paragraph

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

20 this title, the Director shall develop written policies

21 governing rents and homebuyer payments charged

22 for dwelling units assisted under this title, including

23 methods by which such rents and homebuyer pay24 ments are determined.
43

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1 ‘‘(2) MAXIMUM RENT.—In the case of any low2 income family residing in a dwelling unit assisted

3 with grant amounts under this title, the monthly

4 rent or homebuyer payment (as applicable) for that

5 dwelling unit may not exceed 30 percent of the

6 monthly adjusted income of that family.

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

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

9 amounts of any grants received under this title, re10 serve and use for operating under section 810 such

11 amounts as may be necessary to provide for the con12 tinued maintenance and efficient operation of such

13 housing.

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

15 subsection may not be construed to prevent the Di16 rector, or any entity funded by the Department,

17 from demolishing or disposing of housing, pursuant

18 to regulations established by the Secretary.

19 ‘‘(c) INSURANCE COVERAGE.—As a condition to re20 ceiving grant amounts under this title, the Director shall

21 require adequate insurance coverage for housing units that

22 are owned or operated or assisted with grant amounts pro23 vided under this title.

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

25 to receiving grant amounts under this title, the Director
44

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1 shall develop written policies governing the eligibility, ad2 mission, and occupancy of families for housing assisted

3 with grant amounts provided under this title.

4 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a con5 dition to receiving grant amounts under this title, the Di6 rector shall develop policies governing the management

7 and maintenance of housing assisted with grant amounts

8 under this title.

9 ‘‘SEC. 812. TYPES OF INVESTMENTS.

10 ‘‘(a) IN GENERAL.—Subject to section 811 and an

11 applicable housing plan approved under section 803, the

12 Director shall have—

13 ‘‘(1) the discretion to use grant amounts for af14 fordable housing activities through the use of—

15 ‘‘(A) equity investments;

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

17 ‘‘(C) noninterest-bearing loans or ad18 vances;

19 ‘‘(D) interest subsidies;

20 ‘‘(E) the leveraging of private investments;

21 or

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

23 Secretary determines to be consistent with the

24 purposes of this title; and
45

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1 ‘‘(2) the right to establish the terms of assist2 ance provided with funds referred to in paragraph

3 (1).

4 ‘‘(b) INVESTMENTS.—The Director may invest grant

5 amounts for the purposes of carrying out affordable hous6 ing activities in investment securities and other obliga7 tions, as approved by the Secretary.

8 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR9 GETING.

10 ‘‘(a) IN GENERAL.—Housing shall qualify for afford11 able housing for purposes of this title only if—

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

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

14 available for occupancy only by a family that is

15 a low-income family at the time of the initial

16 occupancy of that family of that unit; and

17 ‘‘(B) in the case of housing for home18 ownership, is made available for purchase only

19 by a family that is a low-income family at the

20 time of purchase; and

21 ‘‘(2) each dwelling unit in the housing will re22 main affordable, according to binding commitments

23 satisfactory to the Secretary, for—

24 ‘‘(A) the remaining useful life of the prop25 erty (as determined by the Secretary) without
46

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1 regard to the term of the mortgage or to trans2 fer of ownership; or

3 ‘‘(B) such other period as the Secretary

4 determines is the longest feasible period of time

5 consistent with sound economics and the pur6 poses of this title, except upon a foreclosure by

7 a lender (or upon other transfer in lieu of fore8 closure) if that action—

9 ‘‘(i) recognizes any contractual or

10 legal rights of any public agency, nonprofit

11 sponsor, or other person or entity to take

12 an action that would—

13 ‘‘(I) avoid termination of low-in14 come affordability, in the case of fore15 closure; or

16 ‘‘(II) transfer ownership in lieu

17 of foreclosure; and

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

19 low-income affordability restrictions, as de20 termined by the Secretary.

21 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a),

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

23 considered affordable housing for purposes of this title.
47

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1 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELEC2 TION.

3 ‘‘(a) LEASES.—Except to the extent otherwise pro4 vided by or inconsistent with the laws of the State of Ha5 waii, in renting dwelling units in affordable housing as6 sisted with grant amounts provided under this title, the

7 Director, owner, or manager shall use leases that—

8 ‘‘(1) do not contain unreasonable terms and

9 conditions;

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

11 maintain the housing in compliance with applicable

12 housing codes and quality standards;

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

14 give adequate written notice of termination of the

15 lease, which shall be the period of time required

16 under applicable State or local law;

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

18 eviction or termination, notwithstanding any State

19 or local law, a resident shall be informed of the op20 portunity, before any hearing or trial, to examine

21 any relevant documents, record, or regulations di22 rectly related to the eviction or termination;

23 ‘‘(5) require that the Director, owner, or man24 ager may not terminate the tenancy, during the

25 term of the lease, except for serious or repeated vio26 lation of the terms and conditions of the lease, viola-
48

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1 tion of applicable Federal, State, or local law, or for

2 other good cause; and

3 ‘‘(6) provide that the Director, owner, and man4 ager may terminate the tenancy of a resident for

5 any activity, engaged in by the resident, any member

6 of the household of the resident, or any guest or

7 other person under the control of the resident,

8 that—

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

10 right to peaceful enjoyment of the premises by,

11 other residents or employees of the Department,

12 owner, or manager;

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

14 right to peaceful enjoyment of their premises

15 by, persons residing in the immediate vicinity of

16 the premises; or

17 ‘‘(C) is criminal activity (including drug-re18 lated criminal activity) on or off the premises.

19 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a

20 condition to receiving grant amounts under this title, the

21 Director shall adopt and use written tenant and home22 buyer selection policies and criteria that—

23 ‘‘(1) are consistent with the purpose of pro24 viding housing for low-income families;
49

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1 ‘‘(2) are reasonably related to program eligi2 bility and the ability of the applicant to perform the

3 obligations of the lease; and

4 ‘‘(3) provide for—

5 ‘‘(A) the selection of tenants and home6 buyers from a written waiting list in accordance

7 with the policies and goals set forth in an appli8 cable housing plan approved under section 803;

9 and

10 ‘‘(B) the prompt notification in writing of

11 any rejected applicant of the grounds for that

12 rejection.

13 ‘‘SEC. 815. REPAYMENT.

14 ‘‘If the Department of Hawaiian Home Lands uses

15 grant amounts to provide affordable housing under activi16 ties under this title and, at any time during the useful

17 life of the housing, the housing does not comply with the

18 requirement under section 813(a)(2), the Secretary

19 shall—

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

21 the Department by an amount equal to the grant

22 amounts used for that housing (under the authority

23 of section 819(a)(2)); or

24 ‘‘(2) require repayment to the Secretary of any

25 amount equal to those grant amounts.
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1 ‘‘SEC. 816. ANNUAL ALLOCATION.

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

3 amounts made available for assistance under this title for

4 the fiscal year, in accordance with the formula established

5 pursuant to section 817 to the Department of Hawaiian

6 Home Lands if the Department complies with the require7 ments under this title for a grant under this title.

8 ‘‘SEC. 817. ALLOCATION FORMULA.

9 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by reg10 ulation issued not later than the expiration of the 6-month

11 period beginning on the date of enactment of the Native

12 American Housing Assistance and Self-Determination

13 Amendments of 1999, in the manner provided under sec14 tion 807, establish a formula to provide for the allocation

15 of amounts available for a fiscal year for block grants

16 under this title in accordance with the requirements of this

17 section.

18 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—

19 The formula under subsection (a) shall be based on factors

20 that reflect the needs for assistance for affordable housing

21 activities, including—

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

23 owned or operated at the time pursuant to a con24 tract between the Director and the Secretary;
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1 ‘‘(2) the extent of poverty and economic distress

2 and the number of Native Hawaiian families eligible

3 to reside on the Hawaiian Home Lands; and

4 ‘‘(3) any other objectively measurable condi5 tions that the Secretary and the Director may speci6 fy.

7 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es8 tablishing the formula under subsection (a), the Secretary

9 shall consider the relative administrative capacities of the

10 Department of Hawaiian Home Lands and other chal11 lenges faced by the Department, including—

12 ‘‘(1) geographic distribution within Hawaiian

13 Home Lands; and

14 ‘‘(2) technical capacity.

15 ‘‘(d) EFFECTIVE DATE.—This section shall take ef16 fect on the date of enactment of the Native American

17 Housing Assistance and Self-Determination Amendments

18 of 1999.

19 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

20 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

21 AMOUNTS.—

22 ‘‘(1) IN GENERAL.—Except as provided in sub23 section (b), if the Secretary finds after reasonable

24 notice and opportunity for a hearing that the De25 partment of Hawaiian Home Lands has failed to
52

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1 comply substantially with any provision of this title,

2 the Secretary shall—

3 ‘‘(A) terminate payments under this title

4 to the Department;

5 ‘‘(B) reduce payments under this title to

6 the Department by an amount equal to the

7 amount of such payments that were not ex8 pended in accordance with this title; or

9 ‘‘(C) limit the availability of payments

10 under this title to programs, projects, or activi11 ties not affected by such failure to comply.

12 ‘‘(2) ACTIONS.—If the Secretary takes an ac13 tion under subparagraph (A), (B), or (C) of para14 graph (1), the Secretary shall continue that action

15 until the Secretary determines that the failure by

16 the Department to comply with the provision has

17 been remedied by the Department and the Depart18 ment is in compliance with that provision.

19 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL

20 INCAPACITY.—The Secretary may provide technical assist21 ance for the Department, either directly or indirectly, that

22 is designed to increase the capability and capacity of the

23 Director of the Department to administer assistance pro24 vided under this title in compliance with the requirements

25 under this title if the Secretary makes a finding under
53

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1 subsection (a), but determines that the failure of the De2 partment to comply substantially with the provisions of

3 this title—

4 ‘‘(1) is not a pattern or practice of activities

5 constituting willful noncompliance; and

6 ‘‘(2) is a result of the limited capability or ca7 pacity of the Department of Hawaiian Home Lands.

8 ‘‘(c) REFERRAL FOR CIVIL ACTION.—

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

10 any action that the Secretary may take under sub11 section (a), if the Secretary has reason to believe

12 that the Department of Hawaiian Home Lands has

13 failed to comply substantially with any provision of

14 this title, the Secretary may refer the matter to the

15 Attorney General of the United States with a rec16 ommendation that an appropriate civil action be in17 stituted.

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

19 under paragraph (1), the Attorney General may

20 bring a civil action in any United States district

21 court of appropriate jurisdiction for such relief as

22 may be appropriate, including an action—

23 ‘‘(A) to recover the amount of the assist24 ance furnished under this title that was not ex25 pended in accordance with this title; or
54

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

2 ‘‘(d) REVIEW.—

3 ‘‘(1) IN GENERAL.—If the Director receives no4 tice under subsection (a) of the termination, reduc5 tion, or limitation of payments under this Act, the

6 Director—

7 ‘‘(A) may, not later than 60 days after re8 ceiving such notice, file with the United States

9 Court of Appeals for the Ninth Circuit, or in

10 the United States Court of Appeals for the Dis11 trict of Columbia, a petition for review of the

12 action of the Secretary; and

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

14 subparagraph (A), shall forthwith transmit cop15 ies of the petition to the Secretary and the At16 torney General of the United States, who shall

17 represent the Secretary in the litigation.

18 ‘‘(2) PROCEDURE.—

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

20 file in the court a record of the proceeding on

21 which the Secretary based the action, as pro22 vided in section 2112 of title 28, United States

23 Code.

24 ‘‘(B) OBJECTIONS.—No objection to the

25 action of the Secretary shall be considered by
55

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1 the court unless the Department has registered

2 the objection before the Secretary.

3 ‘‘(3) DISPOSITION.—

4 ‘‘(A) COURT PROCEEDINGS.—

5 ‘‘(i) JURISDICTION OF COURT.—The

6 court shall have jurisdiction to affirm or

7 modify the action of the Secretary or to set

8 the action aside in whole or in part.

9 ‘‘(ii) FINDINGS OF FACT.—If sup10 ported by substantial evidence on the

11 record considered as a whole, the findings

12 of fact by the Secretary shall be conclusive.

13 ‘‘(iii) ADDITION.—The court may

14 order evidence, in addition to the evidence

15 submitted for review under this subsection,

16 to be taken by the Secretary, and to be

17 made part of the record.

18 ‘‘(B) SECRETARY.—

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

20 reason of the additional evidence referred

21 to in subparagraph (A) and filed with the

22 court—

23 ‘‘(I) may—

24 ‘‘(aa) modify the findings of

25 fact of the Secretary; or
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1 ‘‘(bb) make new findings;

2 and

3 ‘‘(II) shall file—

4 ‘‘(aa) such modified or new

5 findings; and

6 ‘‘(bb) the recommendation

7 of the Secretary, if any, for the

8 modification or setting aside of

9 the original action of the Sec10 retary.

11 ‘‘(ii) FINDINGS.—The findings re12 ferred to in clause (i)(II)(bb) shall, with

13 respect to a question of fact, be considered

14 to be conclusive if those findings are—

15 ‘‘(I) supported by substantial evi16 dence on the record; and

17 ‘‘(II) considered as a whole.

18 ‘‘(4) FINALITY.—

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

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

21 under this subsection with the court—

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

23 be exclusive; and

24 ‘‘(ii) the judgment of the court shall

25 be final.
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1 ‘‘(B) REVIEW BY SUPREME COURT.—A

2 judgment under subparagraph (A) shall be sub3 ject to review by the Supreme Court of the

4 United States upon writ of certiorari or certifi5 cation, as provided in section 1254 of title 28,

6 United States Code.

7 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

8 ‘‘(a) ENFORCEABLE AGREEMENTS.—

9 ‘‘(1) IN GENERAL.—The Director, through

10 binding contractual agreements with owners or other

11 authorized entities, shall ensure long-term compli12 ance with the provisions of this title.

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

14 paragraph (1) shall provide for—

15 ‘‘(A) to the extent allowable by Federal

16 and State law, the enforcement of the provi17 sions of this title by the Department and the

18 Secretary; and

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

20 referred to in paragraph (1).

21 ‘‘(b) PERIODIC MONITORING.—

22 ‘‘(1) IN GENERAL.—Not less frequently than

23 annually, the Director shall review the activities con24 ducted and housing assisted under this title to as25 sess compliance with the requirements of this title.
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1 ‘‘(2) REVIEW.—Each review under paragraph

2 (1) shall include onsite inspection of housing to de3 termine compliance with applicable requirements.

4 ‘‘(3) RESULTS.—The results of each review

5 under paragraph (1) shall be—

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

7 the Director submitted to the Secretary under

8 section 820; and

9 ‘‘(B) made available to the public.

10 ‘‘(c) PERFORMANCE MEASURES.—The Secretary

11 shall establish such performance measures as may be nec12 essary to assess compliance with the requirements of this

13 title.

14 ‘‘SEC. 820. PERFORMANCE REPORTS.

15 ‘‘(a) REQUIREMENT.—For each fiscal year, the Di16 rector shall—

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

18 made during that fiscal year in carrying out the

19 housing plan submitted by the Department under

20 section 803; and

21 ‘‘(2) submit a report to the Secretary (in a

22 form acceptable to the Secretary) describing the con23 clusions of the review.

24 ‘‘(b) CONTENT.—Each report submitted under this

25 section for a fiscal year shall—
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1 ‘‘(1) describe the use of grant amounts provided

2 to the Department of Hawaiian Home Lands for

3 that fiscal year;

4 ‘‘(2) assess the relationship of the use referred

5 to in paragraph (1) to the goals identified in the

6 housing plan;

7 ‘‘(3) indicate the programmatic accomplish8 ments of the Department; and

9 ‘‘(4) describe the manner in which the Depart10 ment would change its housing plan submitted under

11 section 803 as a result of its experiences.

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

13 ‘‘(1) establish a date for submission of each re14 port under this section;

15 ‘‘(2) review each such report; and

16 ‘‘(3) with respect to each such report, make rec17 ommendations as the Secretary considers appro18 priate to carry out the purposes of this title.

19 ‘‘(d) PUBLIC AVAILABILITY.—

20 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre21 paring a report under this section, the Director shall

22 make the report publicly available to the bene23 ficiaries of the Hawaiian Homes Commission Act,

24 1920 (42 Stat. 108 et seq.) and give a sufficient

25 amount of time to permit those beneficiaries to com-
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1 ment on that report before it is submitted to the

2 Secretary (in such manner and at such time as the

3 Director may determine).

4 ‘‘(2) SUMMARY OF COMMENTS.—The report

5 shall include a summary of any comments received

6 by the Director from beneficiaries under paragraph

7 (1) regarding the program to carry out the housing

8 plan.

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

10 ‘‘(a) ANNUAL REVIEW.—

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

12 less frequently than on an annual basis, make such

13 reviews and audits as may be necessary or appro14 priate to determine whether—

15 ‘‘(A) the Director has—

16 ‘‘(i) carried out eligible activities

17 under this title in a timely manner;

18 ‘‘(ii) carried out and made certifi19 cations in accordance with the require20 ments and the primary objectives of this

21 title and with other applicable laws; and

22 ‘‘(iii) a continuing capacity to carry

23 out the eligible activities in a timely man24 ner;
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1 ‘‘(B) the Director has complied with the

2 housing plan submitted by the Director under

3 section 803; and

4 ‘‘(C) the performance reports of the De5 partment under section 821 are accurate.

6 ‘‘(2) ONSITE VISITS.—Each review conducted

7 under this section shall, to the extent practicable, in8 clude onsite visits by employees of the Department

9 of Housing and Urban Development.

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

11 give the Department of Hawaiian Home Lands not less

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

13 this subsection. After taking into consideration the com14 ments of the Department, the Secretary may revise the

15 report and shall make the comments of the Department

16 and the report with any revisions, readily available to the

17 public not later than 30 days after receipt of the com18 ments of the Department.

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

20 make appropriate adjustments in the amount of annual

21 grants under this title in accordance with the findings of

22 the Secretary pursuant to reviews and audits under this

23 section. The Secretary may adjust, reduce, or withdraw

24 grant amounts, or take other action as appropriate in ac25 cordance with the reviews and audits of the Secretary
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1 under this section, except that grant amounts already ex2 pended on affordable housing activities may not be recap3 tured or deducted from future assistance provided to the

4 Department of Hawaiian Home Lands.

5 ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

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

7 Department of Hawaiian Home Lands involving grant

8 amounts under this title relate to amounts provided under

9 this title, those transactions may be audited by the Comp10 troller General of the United States under such regula11 tions as may be prescribed by the Comptroller General.

12 The Comptroller General of the United States shall have

13 access to all books, accounts, records, reports, files, and

14 other papers, things, or property belonging to or in use

15 by the Department of Hawaiian Home Lands pertaining

16 to such financial transactions and necessary to facilitate

17 the audit.

18 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

20 conclusion of each fiscal year in which assistance under

21 this title is made available, the Secretary shall submit to

22 the Congress a report that contains—

23 ‘‘(1) a description of the progress made in ac24 complishing the objectives of this title;
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1 ‘‘(2) a summary of the use of funds available

2 under this title during the preceding fiscal year; and

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

4 loan guarantees under section 184A of the Housing

5 and Community Development Act of 1992.

6 ‘‘(b) RELATED REPORTS.—The Secretary may re7 quire the Director to submit to the Secretary such reports

8 and other information as may be necessary in order for

9 the Secretary to prepare the report required under sub10 section (a).

11 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

12 ‘‘There are authorized to be appropriated to the De13 partment of Housing and Urban Development for grants

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

15 of fiscal years 2000, 2001, 2002, 2003, and 2004.’’.

16 SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUS17 ING.

18 Subtitle E of title I of the Housing and Community

19 Development Act of 1992 is amended by inserting after

20 section 184 (12 U.S.C. 1715z–13a) the following:

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

22 HOUSING.

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

24 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME

25 LANDS.—The term ‘Department of Hawaiian Home
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1 Lands’ means the agency or department of the gov2 ernment of the State of Hawaii that is responsible

3 for the administration of the Hawaiian Homes Com4 mission Act, 1920 (42 Stat. 108 et seq.).

5 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en6 tity’ means a Native Hawaiian family, the Depart7 ment of Hawaiian Home Lands, the Office of Ha8 waiian Affairs, private nonprofit or for profit organi9 zations experienced in the planning and development

10 of affordable housing for Native Hawaiians.

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

12 more persons maintaining a household, as the Sec13 retary shall by regulation provide.

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

15 Fund’ means the Native Hawaiian Housing Loan

16 Guarantee Fund established under subsection (i).

17 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha18 waiian Home Lands’ means lands that—

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

20 Lands under section 204 of the Hawaiian

21 Homes Commission Act (42 Stat. 110); or

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

23 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native

24 Hawaiian’ has the meaning given the term ‘native
65

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1 Hawaiian’ in section 201 of the Hawaiian Homes

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

3 ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The

4 term ‘Office of Hawaiian Affairs’ means the entity

5 of that name established under the constitution of

6 the State of Hawaii.

7 ‘‘(b) AUTHORITY.—To provide access to sources of

8 private financing to Native Hawaiian families who other9 wise could not acquire housing financing because of the

10 unique legal status of the Hawaiian home lands or as a

11 result of a lack of access to private financial markets, the

12 Secretary may guarantee an amount not to exceed 100

13 percent of the unpaid principal and interest that is due

14 on an eligible loan under subsection (b).

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

16 is an eligible loan if that loan meets the following require17 ments:

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

19 only to a borrower who—

20 ‘‘(A) is a Native Hawaiian family;

21 ‘‘(B) the Department of Hawaiian Home

22 Lands;

23 ‘‘(C) the Office of Hawaiian Affairs; or
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1 ‘‘(D) a private nonprofit organization expe2 rienced in the planning and development of af3 fordable housing for Native Hawaiians.

4 ‘‘(2) ELIGIBLE HOUSING.—

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

6 to construct, acquire, or rehabilitate not more

7 than 4-family dwellings that are standard hous8 ing and are located on Hawaiian Home Lands

9 for which a housing plan described in subpara10 graph (B) applies.

11 ‘‘(B) HOUSING PLAN.—A housing plan de12 scribed in this subparagraph is a housing plan

13 that—

14 ‘‘(i) has been submitted and approved

15 by the Secretary under section 803 of the

16 Native American Housing Assistance and

17 Self-Determination Amendments of 1999;

18 and

19 ‘‘(ii) provides for the use of loan guar20 antees under this section to provide afford21 able homeownership housing on Hawaiian

22 Home Lands.

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

24 any collateral authorized under applicable Federal

25 law or State law.
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1 ‘‘(4) LENDERS.—

2 ‘‘(A) IN GENERAL.—The loan shall be

3 made only by a lender approved by, and meet4 ing qualifications established by, the Secretary,

5 including any lender described in subparagraph

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

7 guaranteed by an agency of the Federal Gov8 ernment or made by the Department of Hawai9 ian Home Lands from amounts borrowed from

10 the United Sates shall not be eligible for a

11 guarantee under this section.

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

13 shall be considered to be lenders that have been

14 approved by the Secretary:

15 ‘‘(i) Any mortgagee approved by the

16 Secretary for participation in the single

17 family mortgage insurance program under

18 title II of the National Housing Act (12

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

20 ‘‘(ii) Any lender that makes housing

21 loans under chapter 37 of title 38, United

22 States Code, that are automatically guar23 anteed under section 3702(d) of title 38,

24 United States Code.
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1 ‘‘(iii) Any lender approved by the Sec2 retary of Agriculture to make guaranteed

3 loans for single family housing under the

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

5 seq.).

6 ‘‘(iv) Any other lender that is super7 vised, approved, regulated, or insured by

8 any agency of the Federal Government.

9 ‘‘(5) TERMS.—The loan shall—

10 ‘‘(A) be made for a term not exceeding 30

11 years;

12 ‘‘(B) bear interest (exclusive of the guar13 antee fee under subsection (d) and service

14 charges, if any) at a rate agreed upon by the

15 borrower and the lender and determined by the

16 Secretary to be reasonable, but not to exceed

17 the rate generally charged in the area (as deter18 mined by the Secretary) for home mortgage

19 loans not guaranteed or insured by any agency

20 or instrumentality of the Federal Government;

21 ‘‘(C) involve a principal obligation not

22 exceeding—

23 ‘‘(i) 97.75 percent of the appraised

24 value of the property as of the date the

25 loan is accepted for guarantee (or 98.75
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1 percent if the value of the property is

2 $50,000 or less); or

3 ‘‘(ii) the amount approved by the Sec4 retary under this section; and

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

6 property—

7 ‘‘(i) in cash or its equivalent; or

8 ‘‘(ii) through the value of any im9 provements to the property made through

10 the skilled or unskilled labor of the bor11 rower, as the Secretary shall provide.

12 ‘‘(d) CERTIFICATE OF GUARANTEE.—

13 ‘‘(1) APPROVAL PROCESS.—

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

15 approves any loan for guarantee under this sec16 tion, the lender shall submit the application for

17 the loan to the Secretary for examination.

18 ‘‘(B) APPROVAL.—If the Secretary ap19 proves the application submitted under sub20 paragraph (A), the Secretary shall issue a cer21 tificate under this subsection as evidence of the

22 loan guarantee approved.

23 ‘‘(2) STANDARD FOR APPROVAL.—The Sec24 retary may approve a loan for guarantee under this

25 section and issue a certificate under this subsection
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1 only if the Secretary determines that there is a rea2 sonable prospect of repayment of the loan.

3 ‘‘(3) EFFECT.—

4 ‘‘(A) IN GENERAL.—A certificate of guar5 antee issued under this subsection by the Sec6 retary shall be conclusive evidence of the eligi7 bility of the loan for guarantee under this sec8 tion and the amount of that guarantee.

9 ‘‘(B) EVIDENCE.—The evidence referred to

10 in subparagraph (A) shall be incontestable in

11 the hands of the bearer.

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

13 faith and credit of the United States is pledged

14 to the payment of all amounts agreed to be paid

15 by the Secretary as security for the obligations

16 made by the Secretary under this section.

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

18 subsection may not be construed—

19 ‘‘(A) to preclude the Secretary from estab20 lishing defenses against the original lender

21 based on fraud or material misrepresentation;

22 or

23 ‘‘(B) to bar the Secretary from estab24 lishing by regulations that are on the date of

25 issuance or disbursement, whichever is earlier,
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1 partial defenses to the amount payable on the

2 guarantee.

3 ‘‘(e) GUARANTEE FEE.—

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

5 collect a guarantee fee for the guarantee of a loan

6 under this section, which may not exceed the amount

7 equal to 1 percent of the principal obligation of the

8 loan.

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

10 shall—

11 ‘‘(A) be paid by the lender at time of

12 issuance of the guarantee; and

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

14 the Secretary, to cover expenses and probable

15 losses.

16 ‘‘(3) DEPOSIT.—The Secretary shall deposit

17 any fees collected under this subsection in the Na18 tive Hawaiian Housing Loan Guarantee Fund estab19 lished under subsection (j).

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

21 under a guarantee provided under this section shall de22 crease or increase on a pro rata basis according to any

23 decrease or increase in the amount of the unpaid obliga24 tion under the provisions of the loan agreement involved.
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1 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith2 standing any other provision of law, any loan guaranteed

3 under this section, including the security given for the

4 loan, may be sold or assigned by the lender to any finan5 cial institution subject to examination and supervision by

6 an agency of the Federal Government or of any State or

7 the District of Columbia.

8 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

9 MONEY PENALTIES.—

10 ‘‘(1) IN GENERAL.—

11 ‘‘(A) GROUNDS FOR ACTION.—The Sec12 retary may take action under subparagraph (B)

13 if the Secretary determines that any lender or

14 holder of a guarantee certificate under sub15 section (c)—

16 ‘‘(i) has failed—

17 ‘‘(I) to maintain adequate ac18 counting records;

19 ‘‘(II) to service adequately loans

20 guaranteed under this section; or

21 ‘‘(III) to exercise proper credit or

22 underwriting judgment; or

23 ‘‘(ii) has engaged in practices other24 wise detrimental to the interest of a bor25 rower or the United States.
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1 ‘‘(B) ACTIONS.—Upon a determination by

2 the Secretary that a holder of a guarantee cer3 tificate under subsection (c) has failed to carry

4 out an activity described in subparagraph (A)(i)

5 or has engaged in practices described in sub6 paragraph (A)(ii), the Secretary may—

7 ‘‘(i) refuse, either temporarily or per8 manently, to guarantee any further loans

9 made by such lender or holder;

10 ‘‘(ii) bar such lender or holder from

11 acquiring additional loans guaranteed

12 under this section; and

13 ‘‘(iii) require that such lender or hold14 er assume not less than 10 percent of any

15 loss on further loans made or held by the

16 lender or holder that are guaranteed under

17 this section.

18 ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN19 TIONAL VIOLATIONS.—

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

21 impose a civil monetary penalty on a lender or

22 holder of a guarantee certificate under sub23 section (d) if the Secretary determines that the

24 holder or lender has intentionally failed—
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1 ‘‘(i) to maintain adequate accounting

2 records;

3 ‘‘(ii) to adequately service loans guar4 anteed under this section; or

5 ‘‘(iii) to exercise proper credit or un6 derwriting judgment.

7 ‘‘(B) PENALTIES.—A civil monetary pen8 alty imposed under this paragraph shall be im9 posed in the manner and be in an amount pro10 vided under section 536 of the National Hous11 ing Act (12 U.S.C.A. 1735f–1) with respect to

12 mortgagees and lenders under that Act.

13 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

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

15 a loan was made in good faith, the Secretary may

16 not refuse to pay a lender or holder of a valid guar17 antee on that loan, without regard to whether the

18 lender or holder is barred under this subsection.

19 ‘‘(i) PAYMENT UNDER GUARANTEE.—

20 ‘‘(1) LENDER OPTIONS.—

21 ‘‘(A) IN GENERAL.—

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

23 loan guaranteed under this section defaults

24 on the loan, the holder of the guarantee
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1 certificate shall provide written notice of

2 the default to the Secretary.

3 ‘‘(ii) PAYMENT.—Upon providing the

4 notice required under clause (i), the holder

5 of the guarantee certificate shall be enti6 tled to payment under the guarantee (sub7 ject to the provisions of this section) and

8 may proceed to obtain payment in 1 of the

9 following manners:

10 ‘‘(I) FORECLOSURE.—

11 ‘‘(aa) IN GENERAL.—The

12 holder of the certificate may ini13 tiate foreclosure proceedings

14 (after providing written notice of

15 that action to the Secretary).

16 ‘‘(bb) PAYMENT.—Upon a

17 final order by the court author18 izing foreclosure and submission

19 to the Secretary of a claim for

20 payment under the guarantee,

21 the Secretary shall pay to the

22 holder of the certificate the pro

23 rata portion of the amount guar24 anteed (as determined pursuant

25 to subsection (f)) plus reasonable
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1 fees and expenses as approved by

2 the Secretary.

3 ‘‘(cc) SUBROGATION.—The

4 rights of the Secretary shall be

5 subrogated to the rights of the

6 holder of the guarantee. The

7 holder shall assign the obligation

8 and security to the Secretary.

9 ‘‘(II) NO FORECLOSURE.—

10 ‘‘(aa) IN GENERAL.—With11 out seeking foreclosure (or in any

12 case in which a foreclosure pro13 ceeding initiated under clause (i)

14 continues for a period in excess

15 of 1 year), the holder of the

16 guarantee may submit to the

17 Secretary a request to assign the

18 obligation and security interest to

19 the Secretary in return for pay20 ment of the claim under the

21 guarantee. The Secretary may

22 accept assignment of the loan if

23 the Secretary determines that the

24 assignment is in the best interest

25 of the United States.
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1 ‘‘(bb) PAYMENT.—Upon as2 signment, the Secretary shall pay

3 to the holder of the guarantee

4 the pro rata portion of the

5 amount guaranteed (as deter6 mined under subsection (f)).

7 ‘‘(cc) SUBROGATION.—The

8 rights of the Secretary shall be

9 subrogated to the rights of the

10 holder of the guarantee. The

11 holder shall assign the obligation

12 and security to the Secretary.

13 ‘‘(B) REQUIREMENTS.—Before any pay14 ment under a guarantee is made under sub15 paragraph (A), the holder of the guarantee

16 shall exhaust all reasonable possibilities of col17 lection. Upon payment, in whole or in part, to

18 the holder, the note or judgment evidencing the

19 debt shall be assigned to the United States and

20 the holder shall have no further claim against

21 the borrower or the United States. The Sec22 retary shall then take such action to collect as

23 the Secretary determines to be appropriate.

24 ‘‘(2) LIMITATIONS ON LIQUIDATION.—
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1 ‘‘(A) IN GENERAL.—If a borrower defaults

2 on a loan guaranteed under this section that in3 volves a security interest in restricted Hawaiian

4 Home Land property, the mortgagee or the

5 Secretary shall only pursue liquidation after of6 fering to transfer the account to another eligi7 ble Hawaiian family or the Department of Ha8 waiian Home Lands.

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

10 taken under subparagraph (A), the mortgagee

11 or the Secretary subsequently proceeds to liq12 uidate the account, the mortgagee or the Sec13 retary shall not sell, transfer, or otherwise dis14 pose of or alienate the property described in

15 subparagraph (A) except to another eligible Ha16 waiian family or to the Department of Hawai17 ian Home Lands.

18 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE

19 FUND.—

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

21 the Treasury of the United States the Hawaiian

22 Housing Loan Guarantee Fund for the purpose of

23 providing loan guarantees under this section.

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

25 credited with—
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1 ‘‘(A) any amount, claims, notes, mort2 gages, contracts, and property acquired by the

3 Secretary under this section, and any collections

4 and proceeds therefrom;

5 ‘‘(B) any amounts appropriated pursuant

6 to paragraph (7);

7 ‘‘(C) any guarantee fees collected under

8 subsection (d); and

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

10 invested under paragraph (4).

11 ‘‘(3) USE.—Amounts in the Guarantee Fund

12 shall be available, to the extent provided in appro13 priations Acts, for—

14 ‘‘(A) fulfilling any obligations of the Sec15 retary with respect to loans guaranteed under

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

17 defined in section 502 of the Federal Credit Re18 form Act of 1990 (2 U.S.C. 661a)) of such

19 loans;

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

21 expenses necessary to make fiscal adjustment in

22 connection with the application and transmittal

23 of collections, and other expenses and advances

24 to protect the Secretary for loans which are
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1 guaranteed under this section or held by the

2 Secretary;

3 ‘‘(C) acquiring such security property at

4 foreclosure sales or otherwise;

5 ‘‘(D) paying administrative expenses in

6 connection with this section; and

7 ‘‘(E) reasonable and necessary costs of re8 habilitation and repair to properties that the

9 Secretary holds or owns pursuant to this sec10 tion.

11 ‘‘(4) INVESTMENT.—Any amounts in the Guar12 antee Fund determined by the Secretary to be in ex13 cess of amounts currently required at the time of the

14 determination to carry out this section may be in15 vested in obligations of the United States.

16 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR17 ANTEE LOANS AND MORTGAGES.—

18 ‘‘(A) REQUIREMENT OF APPROPRIA19 TIONS.—The authority of the Secretary to enter

20 into commitments to guarantee loans under this

21 section shall be effective for any fiscal year to

22 the extent, or in such amounts as, are or have

23 been provided in appropriations Acts, without

24 regard to the fiscal year for which such

25 amounts were appropriated.
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1 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN2 TEES.—The authority of the Secretary to enter

3 into commitments to guarantee loans under this

4 section shall be effective for any fiscal year only

5 to the extent that amounts in the Guarantee

6 Fund are or have been made available in appro7 priations Acts to cover the costs (as that term

8 is defined in section 502 of the Federal Credit

9 Reform Act of 1990 (2 U.S.C. 661a)) of such

10 loan guarantees for such fiscal year. Any

11 amounts appropriated pursuant to this subpara12 graph shall remain available until expended.

13 ‘‘(C) LIMITATION ON OUTSTANDING AG14 GREGATE PRINCIPAL AMOUNT.—Subject to the

15 limitations in subparagraphs (A) and (B), the

16 Secretary may enter into commitments to guar17 antee loans under this section for each of fiscal

18 years 2000, 2001, 2002, 2003, and 2004 with

19 an aggregate outstanding principal amount not

20 exceeding $100,000,000 for each such fiscal

21 year.

22 ‘‘(6) LIABILITIES.—All liabilities and obliga23 tions of the assets credited to the Guarantee Fund

24 under paragraph (2)(A) shall be liabilities and obli25 gations of the Guarantee Fund.
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1 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

2 There are authorized to be appropriated to the

3 Guarantee Fund to carry out this section such sums

4 as may be necessary for each of fiscal years 2000,

5 2001, 2002, 2003, and 2004.

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

7 ‘‘(1) IN GENERAL.—The Secretary shall, by

8 regulation, establish housing safety and quality

9 standards to be applied for use under this section.

10 ‘‘(2) STANDARDS.—The standards referred to

11 in paragraph (1) shall—

12 ‘‘(A) provide sufficient flexibility to permit

13 the use of various designs and materials in

14 housing acquired with loans guaranteed under

15 this section; and

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

17 housing acquired in the manner described in

18 subparagraph (A) to—

19 ‘‘(i) be decent, safe, sanitary, and

20 modest in size and design;

21 ‘‘(ii) conform with applicable general

22 construction standards for the region in

23 which the housing is located;

24 ‘‘(iii) contain a plumbing system

25 that—
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1 ‘‘(I) uses a properly installed sys2 tem of piping;

3 ‘‘(II) includes a kitchen sink and

4 a partitional bathroom with lavatory,

5 toilet, and bath or shower; and

6 ‘‘(III) uses water supply, plumb7 ing, and sewage disposal systems that

8 conform to any minimum standards

9 established by the applicable county or

10 State;

11 ‘‘(iv) contain an electrical system

12 using wiring and equipment properly in13 stalled to safely supply electrical energy for

14 adequate lighting and for operation of ap15 pliances that conforms to any appropriate

16 county, State, or national code;

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

18 under the applicable locally adopted stand19 ards for size of dwelling units, except that

20 the Secretary, upon request of the Depart21 ment of Hawaiian Home Lands may waive

22 the size requirements under this para23 graph; and

24 ‘‘(vi) conform with the energy per25 formance requirements for new construc-
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1 tion established by the Secretary under

2 section 526(a) of the National Housing

3 Act (12 U.S.C.A. 1735f–4), unless the Sec4 retary determines that the requirements

5 are not applicable.

6 ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

7 To the extent that the requirements of title VI of the Civil

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

9 VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et

10 seq.) apply to a guarantee provided under this subsection,

11 nothing in the requirements concerning discrimination on

12 the basis of race shall be construed to prevent the provi13 sion of the guarantee to an eligible entity on the basis

14 that the entity serves Native Hawaiian families or is a Na15 tive Hawaiian family.’’

16 SECTION 1. SHORT TITLE.

17 This Act may be cited as the ‘‘Native American Hous18 ing Assistance and Self-Determination Amendments of

19 1999’’.

20 SEC. 2. FINDINGS.

21 Congress finds that—

22 (1) the United States has undertaken a responsi23 bility to promote the general welfare of the United

24 States by—
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1 (A) employing its resources to remedy the

2 unsafe and unsanitary housing conditions and

3 the acute shortage of decent, safe, and sanitary

4 dwellings for families of lower income; and

5 (B) developing effective partnerships with

6 governmental and private entities to accomplish

7 the objectives referred to in subparagraph (A);

8 (2) the United States has a special responsibility

9 for the welfare of the Native peoples of the United

10 States, including Native Hawaiians;

11 (3) pursuant to the provisions of the Hawaiian

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

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

14 the Federal territory that later became the State of

15 Hawaii in order to establish a homeland for the na16 tive people of Hawaii—Native Hawaiians;

17 (4) despite the intent of Congress in 1920 to ad18 dress the housing needs of Native Hawaiians through

19 the enactment of the Hawaiian Homes Commission

20 Act, 1920 (42 Stat. 108 et seq.), Native Hawaiians el21 igible to reside on the Hawaiian home lands have

22 been foreclosed from participating in Federal housing

23 assistance programs available to all other eligible

24 families in the United States;
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1 (5) although Federal housing assistance pro2 grams have been administered on a racially neutral

3 basis in the State of Hawaii, Native Hawaiians con4 tinue to have the greatest unmet need for housing and

5 the highest rates of overcrowding in the United States;

6 (6) among the Native American population of

7 the United States, Native Hawaiians experience the

8 highest percentage of housing problems in the United

9 States, as the percentage—

10 (A) of housing problems in the Native Ha11 waiian population is 49 percent, as compared

12 to—

13 (i) 44 percent for American Indian

14 and Alaska Native households in Indian

15 country; and

16 (ii) 27 percent for all other households

17 in the United States; and

18 (B) overcrowding in the Native Hawaiian

19 population is 36 percent as compared to 3 per20 cent for all other households in the United

21 States;

22 (7) among the Native Hawaiian population, the

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

24 section 801 of the Native American Housing Assist25 ance and Self-Determination Act of 1996, as added by
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1 section 3 of this Act, eligible to reside on the Hawai2 ian Home Lands are the most severe, as—

3 (A) the percentage of overcrowding in Na4 tive Hawaiian households on the Hawaiian

5 Home Lands is 36 percent; and

6 (B) approximately 13,000 Native Hawai7 ians, which constitute 95 percent of the Native

8 Hawaiians who are eligible to reside on the Ha9 waiian Home Lands, are in need of housing;

10 (8) applying the Department of Housing and

11 Urban Development guidelines—

12 (A) 70.8 percent of Native Hawaiians who

13 either reside or who are eligible to reside on the

14 Hawaiian Home Lands have incomes that fall

15 below the median family income; and

16 (B) 50 percent of Native Hawaiians who ei17 ther reside or who are eligible to reside on the

18 Hawaiian Home Lands have incomes below 30

19 percent of the median family income;

(9) 1 20 ⁄3 of those Native Hawaiians who are eligi21 ble to reside on the Hawaiian Home Lands pay more

than 30 percent of their income for shelter, and 1 22 ⁄2 of

23 those Native Hawaiians face overcrowding;

24 (10) the extraordinarily severe housing needs of

25 Native Hawaiians demonstrate that Native Hawai-
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1 ians who either reside on, or are eligible to reside on,

2 Hawaiian Home Lands have been denied equal access

3 to Federal low-income housing assistance programs

4 available to other qualified residents of the United

5 States, and that a more effective means of addressing

6 their housing needs must be authorized;

7 (11) consistent with the recommendations of the

8 National Commission on American Indian, Alaska

9 Native, and Native Hawaiian Housing, and in order

10 to address the continuing prevalence of extraor11 dinarily severe housing needs among Native Hawai12 ians who either reside or are eligible to reside on the

13 Hawaiian Home Lands, Congress finds it necessary

14 to extend the Federal low-income housing assistance

15 available to American Indians and Alaska Natives

16 under the Native American Housing Assistance and

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

18 seq.) to those Native Hawaiians;

19 (12) under the treatymaking power of the United

20 States, Congress had the constitutional authority to

21 confirm a treaty between the United States and the

22 government that represented the Hawaiian people,

23 and from 1826 until 1893, the United States recog24 nized the independence of the Kingdom of Hawaii, ex25 tended full diplomatic recognition to the Hawaiian
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1 Government, and entered into treaties and conven2 tions with the Hawaiian monarchs to govern com3 merce and navigation in 1826, 1842, 1849, 1875, and

4 1887;

5 (13) the United States has recognized and re6 affirmed that—

7 (A) Native Hawaiians have a cultural, his8 toric, and land-based link to the indigenous peo9 ple who exercised sovereignty over the Hawaiian

10 Islands, and that group has never relinquished

11 its claims to sovereignty or its sovereign lands;

12 (B) Congress does not extend services to Na13 tive Hawaiians because of their race, but because

14 of their unique status as the indigenous people of

15 a once sovereign nation as to whom the United

16 States has established a trust relationship;

17 (C) Congress has also delegated broad au18 thority to administer a portion of the Federal

19 trust responsibility to the State of Hawaii;

20 (D) the political status of Native Hawai21 ians is comparable to that of American Indians

22 and Alaska Natives; and

23 (E) the aboriginal, indigenous people of the

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

2 their internal affairs; and

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

5 extinguished;

6 (14) the political relationship between the United

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

10 (A) the Native American Programs Act of

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

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

14 (C) the National Museum of the American

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

16 (D) the Native American Graves Protection

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

18 (E) the National Historic Preservation Act

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

20 (F) the Native American Languages Act of

21 1992 (106 Stat. 3434);

22 (G) the American Indian, Alaska Native

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

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

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

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

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

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

8 (A) the enactment of the Hawaiian Homes

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

10 which set aside approximately 200,000 acres of

11 public lands that became known as Hawaiian

12 Home Lands in the Territory of Hawaii that

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

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

17 Act to provide for the admission of the State of

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

19 1959 (73 Stat. 4)—

20 (i) by ceding to the State of Hawaii

21 title to the public lands formerly held by the

22 United States, and mandating that those

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

25 as that term is defined in section 201 of the
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1 Hawaiian Homes Commission Act, 1920

2 (42 Stat. 108 et seq.); and

3 (ii) by transferring the United States

4 responsibility for the administration of Ha5 waiian Home Lands to the State of Ha6 waii, but retaining the authority to enforce

7 the trust, including the exclusive right of the

8 United States to consent to any actions af9 fecting the lands which comprise the corpus

10 of the trust and any amendments to the Ha11 waiian Homes Commission Act, 1920 (42

12 Stat. 108 et seq.), enacted by the legislature

13 of the State of Hawaii affecting the rights

14 of beneficiaries under the Act;

15 (C) the authorization of mortgage loans in16 sured by the Federal Housing Administration for

17 the purchase, construction, or refinancing of

18 homes on Hawaiian Home Lands under the Act

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

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

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

22 (D) authorizing Native Hawaiian represen23 tation on the National Commission on American

24 Indian, Alaska Native, and Native Hawaiian

25 Housing under Public Law 101–235;
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1 (E) the inclusion of Native Hawaiians in

2 the definition under section 3764 of title 38,

3 United States Code, applicable to subchapter V

4 of chapter 37 of title 38, United States Code (re5 lating to a housing loan program for Native

6 American veterans); and

7 (F) the enactment of the Hawaiian Home

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

9 491, note prec.) which establishes a process for

10 the conveyance of Federal lands to the Depart11 ment of Hawaiian Homes Lands that are equiv12 alent in value to lands acquired by the United

13 States from the Hawaiian Home Lands inven14 tory.

15 SEC. 3. HOUSING ASSISTANCE.

16 The Native American Housing Assistance and Self-De17 termination Act of 1996 (25 U.S.C. 4101 et seq.) is amend18 ed by adding at the end the following:

19 ‘‘TITLE VIII—HOUSING ASSIST20 ANCE FOR NATIVE HAWAI21 IANS

22 ‘‘SEC. 801. DEFINITIONS.

23 ‘‘In this title:

24 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;

25 DEPARTMENT.—The term ‘Department of Hawaiian
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1 Home Lands’ or ‘Department’ means the agency or

2 department of the government of the State of Hawaii

3 that is responsible for the administration of the Ha4 waiian Homes Commission Act, 1920 (42 Stat. 108

5 et seq.).

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

7 Director of the Department of Hawaiian Home

8 Lands.

9 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI10 LIES.—

11 ‘‘(A) IN GENERAL.—The term ‘elderly fam12 ily’ or ‘near-elderly family’ means a family

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

14 member, is—

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

16 person; or

17 ‘‘(ii) for a near-elderly family, a near18 elderly person.

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

20 term ‘elderly family’ or ‘near-elderly family’

21 includes—

22 ‘‘(i) 2 or more elderly persons or near23 elderly persons, as the case may be, living

24 together; and
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1 ‘‘(ii) 1 or more persons described in

2 clause (i) living with 1 or more persons de3 termined under the housing plan to be es4 sential to their care or well-being.

5 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha6 waiian Home Lands’ means lands that—

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

8 lands under section 204 of the Hawaiian Homes

9 Commission Act (42 Stat. 110); or

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

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

12 means an area of Hawaiian Home Lands with re13 spect to which the Department of Hawaiian Home

14 Lands is authorized to provide assistance for afford15 able housing under this Act.

16 ‘‘(6) HOUSING ENTITY.—The term ‘housing enti17 ty’ means the Department of Hawaiian Home Lands.

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

19 means a plan developed by the Department of Hawai20 ian Home Lands.

21 ‘‘(8) MEDIAN INCOME.—The term ‘median in22 come’ means, with respect to an area that is a Ha23 waiian housing area, the greater of—
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1 ‘‘(A) the median income for the Hawaiian

2 housing area, which shall be determined by the

3 Secretary; or

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

5 Hawaii.

6 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native Ha7 waiian’ means any individual who is—

8 ‘‘(A) a citizen of the United States; and

9 ‘‘(B) a descendant of the aboriginal people,

10 who, prior to 1778, occupied and exercised sov11 ereignty in the area that currently constitutes

12 the State of Hawaii, as evidenced by—

13 ‘‘(i) genealogical records;

14 ‘‘(ii) verification by kupuna (elders) or

15 kama’aina (long-term community resi16 dents); or

17 ‘‘(iii) birth records of the State of Ha18 waii.

19 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING

20 ACTIVITIES.

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

22 Secretary shall (to the extent amounts are made available

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

24 Department of Hawaiian Home Lands to carry out afford-
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1 able housing activities for Native Hawaiian families who

2 are eligible to reside on the Hawaiian Home Lands.

3 ‘‘(b) PLAN REQUIREMENT.—

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

5 grant under this title to the Department of Hawaiian

6 Home Lands for a fiscal year only if—

7 ‘‘(A) the Director has submitted to the Sec8 retary a housing plan for that fiscal year; and

9 ‘‘(B) the Secretary has determined under

10 section 804 that the housing plan complies with

11 the requirements of section 803.

12 ‘‘(2) WAIVER.—The Secretary may waive the ap13 plicability of the requirements under paragraph (1),

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

15 Hawaiian Home Lands has not complied or cannot

16 comply with those requirements due to circumstances

17 beyond the control of the Department of Hawaiian

18 Home Lands.

19 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

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

21 amounts provided under a grant under this section may

22 be used only for affordable housing activities under this title

23 that are consistent with a housing plan approved under sec24 tion 804.

25 ‘‘(d) ADMINISTRATIVE EXPENSES.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall, by regu2 lation, authorize the Department of Hawaiian Home

3 Lands to use a percentage of any grant amounts re4 ceived under this title for any reasonable administra5 tive and planning expenses of the Department relat6 ing to carrying out this title and activities assisted

7 with those amounts.

8 ‘‘(2) ADMINISTRATIVE AND PLANNING EX9 PENSES.—The administrative and planning expenses

10 referred to in paragraph (1) include—

11 ‘‘(A) costs for salaries of individuals en12 gaged in administering and managing affordable

13 housing activities assisted with grant amounts

14 provided under this title; and

15 ‘‘(B) expenses incurred in preparing a

16 housing plan under section 803.

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

18 shall make all reasonable efforts, consistent with the pur19 poses of this title, to maximize participation by the private

20 sector, including nonprofit organizations and for-profit en21 tities, in implementing a housing plan that has been ap22 proved by the Secretary under section 803.

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

24 ‘‘(1) IN GENERAL.—The Secretary shall be guid25 ed by the relevant program requirements of titles I,
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1 II, and IV in the implementation of housing assist2 ance programs for Native Hawaiians under this title.

3 ‘‘(2) EXCEPTION.—The Secretary may make ex4 ceptions to, or modifications of, program require5 ments for Native American housing assistance set

6 forth in titles I, II, and IV as necessary and appro7 priate to meet the unique situation and housing needs

8 of Native Hawaiians.

9 ‘‘SEC. 803. HOUSING PLAN.

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

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

12 plan under this section for each fiscal year; and

13 ‘‘(2) provide for the review of each plan sub14 mitted under paragraph (1).

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

16 section shall—

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

18 and

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

20 beginning with the fiscal year for which the plan is

21 submitted, the following information:

22 ‘‘(A) MISSION STATEMENT.—A general

23 statement of the mission of the Department of

24 Hawaiian Home Lands to serve the needs of the
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1 low-income families to be served by the Depart2 ment.

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

4 of the goals and objectives of the Department of

5 Hawaiian Home Lands to enable the Depart6 ment to serve the needs identified in subpara7 graph (A) during the period.

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

9 the activities planned during the period includ10 ing an analysis of the manner in which the ac11 tivities will enable the Department to meet its

12 mission, goals, and objectives.

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

14 shall—

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

16 and

17 ‘‘(2) contain the following information relating

18 to the fiscal year for which the assistance under this

19 title is to be made available:

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

21 of the goals and objectives to be accomplished

22 during the period covered by the plan.

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

24 of the housing needs of the low-income families

25 served by the Department and the means by
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1 which those needs will be addressed during the

2 period covered by the plan, including—

3 ‘‘(i) a description of the estimated

4 housing needs and the need for assistance

5 for the low-income families to be served by

6 the Department, including a description of

7 the manner in which the geographical dis8 tribution of assistance is consistent with—

9 ‘‘(I) the geographical needs of

10 those families; and

11 ‘‘(II) needs for various categories

12 of housing assistance; and

13 ‘‘(ii) a description of the estimated

14 housing needs for all families to be served

15 by the Department.

16 ‘‘(C) FINANCIAL RESOURCES.—An oper17 ating budget for the Department of Hawaiian

18 Home Lands, in a form prescribed by the Sec19 retary, that includes—

20 ‘‘(i) an identification and a descrip21 tion of the financial resources reasonably

22 available to the Department to carry out the

23 purposes of this title, including an expla24 nation of the manner in which amounts
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1 made available will be used to leverage ad2 ditional resources; and

3 ‘‘(ii) the uses to which the resources de4 scribed in clause (i) will be committed,

5 including—

6 ‘‘(I) eligible and required afford7 able housing activities; and

8 ‘‘(II) administrative expenses.

9 ‘‘(D) AFFORDABLE HOUSING RESOURCES.—

10 A statement of the affordable housing resources

11 currently available at the time of the submittal

12 of the plan and to be made available during the

13 period covered by the plan, including—

14 ‘‘(i) a description of the significant

15 characteristics of the housing market in the

16 State of Hawaii, including the availability

17 of housing from other public sources, private

18 market housing;

19 ‘‘(ii) the manner in which the charac20 teristics referred to in clause (i) influence

21 the decision of the Department of Hawaiian

22 Home Lands to use grant amounts to be

23 provided under this title for—

24 ‘‘(I) rental assistance;

25 ‘‘(II) the production of new units;
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1 ‘‘(III) the acquisition of existing

2 units; or

3 ‘‘(IV) the rehabilitation of units;

4 ‘‘(iii) a description of the structure, co5 ordination, and means of cooperation be6 tween the Department of Hawaiian Home

7 Lands and any other governmental entities

8 in the development, submission, or imple9 mentation of housing plans, including a de10 scription of—

11 ‘‘(I) the involvement of private,

12 public, and nonprofit organizations

13 and institutions;

14 ‘‘(II) the use of loan guarantees

15 under section 184A of the Housing and

16 Community Development Act of 1992;

17 and

18 ‘‘(III) other housing assistance

19 provided by the United States, includ20 ing loans, grants, and mortgage insur21 ance;

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

23 which the plan will address the needs iden24 tified pursuant to subparagraph (C);

25 ‘‘(v) a description of—
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1 ‘‘(I) any existing or anticipated

2 homeownership programs and rental

3 programs to be carried out during the

4 period covered by the plan; and

5 ‘‘(II) the requirements and assist6 ance available under the programs re7 ferred to in subclause (I);

8 ‘‘(vi) a description of—

9 ‘‘(I) any existing or anticipated

10 housing rehabilitation programs nec11 essary to ensure the long-term viability

12 of the housing to be carried out during

13 the period covered by the plan; and

14 ‘‘(II) the requirements and assist15 ance available under the programs re16 ferred to in subclause (I);

17 ‘‘(vii) a description of—

18 ‘‘(I) all other existing or antici19 pated housing assistance provided by

20 the Department of Hawaiian Home

21 Lands during the period covered by the

22 plan, including—

23 ‘‘(aa) transitional housing;

24 ‘‘(bb) homeless housing;

25 ‘‘(cc) college housing; and
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1 ‘‘(dd) supportive services

2 housing; and

3 ‘‘(II) the requirements and assist4 ance available under such programs;

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

6 to be demolished or disposed of;

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

8 disposition; and

9 ‘‘(III) any other information required

10 by the Secretary with respect to that demo11 lition or disposition;

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

13 which the Department of Hawaiian Home

14 Lands will coordinate with welfare agencies

15 in the State of Hawaii to ensure that resi16 dents of the affordable housing will be pro17 vided with access to resources to assist in

18 obtaining employment and achieving self19 sufficiency;

20 ‘‘(x) a description of the requirements

21 established by the Department of Hawaiian

22 Home Lands to—

23 ‘‘(I) promote the safety of resi24 dents of the affordable housing;
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1 ‘‘(II) facilitate the undertaking of

2 crime prevention measures;

3 ‘‘(III) allow resident input and

4 involvement, including the establish5 ment of resident organizations; and

6 ‘‘(IV) allow for the coordination of

7 crime prevention activities between the

8 Department and local law enforcement

9 officials; and

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

11 will carry out the activities under the plan,

12 including the organizational capacity and

13 key personnel of the entities.

14 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

15 Evidence of compliance that shall include, as

16 appropriate—

17 ‘‘(i) a certification that the Depart18 ment of Hawaiian Home Lands will com19 ply with—

20 ‘‘(I) title VI of the Civil Rights

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

22 or with title VIII of the Act popularly

23 known as the ‘Civil Rights Act of 1968’

24 (42 U.S.C. 3601 et seq.) in carrying
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1 out this title, to the extent that such

2 title is applicable; and

3 ‘‘(II) other applicable Federal

4 statutes;

5 ‘‘(ii) a certification that the Depart6 ment will require adequate insurance cov7 erage for housing units that are owned and

8 operated or assisted with grant amounts

9 provided under this title, in compliance

10 with such requirements as may be estab11 lished by the Secretary;

12 ‘‘(iii) a certification that policies are

13 in effect and are available for review by the

14 Secretary and the public governing the eli15 gibility, admission, and occupancy of fami16 lies for housing assisted with grant amounts

17 provided under this title;

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

19 effect and are available for review by the

20 Secretary and the public governing rents

21 charged, including the methods by which

22 such rents or homebuyer payments are de23 termined, for housing assisted with grant

24 amounts provided under this title; and
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1 ‘‘(v) a certification that policies are in

2 effect and are available for review by the

3 Secretary and the public governing the

4 management and maintenance of housing

5 assisted with grant amounts provided under

6 this title.

7 ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

8 ‘‘(1) IN GENERAL.—To the extent that the re9 quirements of title VI of the Civil Rights Act of 1964

10 (42 U.S.C. 2000d et seq.) or of title VIII of the Act

11 popularly known as the ‘Civil Rights Act of 1968’ (42

12 U.S.C. 3601 et seq.) apply to assistance provided

13 under this title, nothing in the requirements con14 cerning discrimination on the basis of race shall be

15 construed to prevent the provision of assistance under

16 this title—

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

18 Lands on the basis that the Department served

19 Native Hawaiians; or

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

21 the family is a Native Hawaiian family.

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

23 this title may be restricted to Native Hawaiians. Sub24 ject to the preceding sentence, no person may be dis25 criminated against on the basis of race, color, na-
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1 tional origin, religion, sex, familial status, or dis2 ability.

3 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a con4 dition of receiving grant amounts under this title, the De5 partment of Hawaiian Home Lands shall, to the extent

6 practicable, provide for private nonprofit organizations ex7 perienced in the planning and development of affordable

8 housing for Native Hawaiians to carry out affordable hous9 ing activities with those grant amounts.

10 ‘‘SEC. 804. REVIEW OF PLANS.

11 ‘‘(a) REVIEW AND NOTICE.—

12 ‘‘(1) REVIEW.—

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

14 conduct a review of a housing plan submitted to

15 the Secretary under section 803 to ensure that

16 the plan complies with the requirements of that

17 section.

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

19 have the discretion to review a plan referred to

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

21 Secretary considers that the review is necessary.

22 ‘‘(2) NOTICE.—

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

24 after receiving a plan under section 803, the Sec25 retary shall notify the Director of the Depart-
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1 ment of Hawaiian Home Lands whether the

2 plan complies with the requirements under that

3 section.

4 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

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

6 the Secretary does not notify the Director, as re7 quired under this subsection and subsection (b),

8 upon the expiration of the 60-day period de9 scribed in subparagraph (A)—

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

11 have been determined to comply with the re12 quirements under section 803; and

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

14 have been notified of compliance.

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

16 NONCOMPLIANCE.—If the Secretary determines that a plan

17 submitted under section 803 does not comply with the re18 quirements of that section, the Secretary shall specify in

19 the notice under subsection (a)—

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

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

22 meet the requirements of section 803.

23 ‘‘(c) REVIEW.—

24 ‘‘(1) IN GENERAL.—After the Director of the De25 partment of Hawaiian Home Lands submits a hous-
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1 ing plan under section 803, or any amendment or

2 modification to the plan to the Secretary, to the ex3 tent that the Secretary considers such action to be

4 necessary to make a determination under this sub5 section, the Secretary shall review the plan (including

6 any amendments or modifications thereto) to deter7 mine whether the contents of the plan—

8 ‘‘(A) set forth the information required by

9 section 803 to be contained in the housing plan;

10 ‘‘(B) are consistent with information and

11 data available to the Secretary; and

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

13 with any provision of this Act or any other ap14 plicable law.

15 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de16 termines under this subsection that any of the appro17 priate certifications required under section

18 803(c)(2)(E) are not included in a plan, the plan

19 shall be considered to be incomplete.

20 ‘‘(d) UPDATES TO PLAN.—

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

22 after a plan under section 803 has been submitted for

23 a fiscal year, the Director of the Department of Ha24 waiian Home Lands may comply with the provisions

25 of that section for any succeeding fiscal year (with re-
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1 spect to information included for the 5-year period

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

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

4 regarding such changes as may be necessary to update

5 the plan previously submitted.

6 ‘‘(2) COMPLETE PLANS.—The Director shall sub7 mit a complete plan under section 803 not later than

8 4 years after submitting an initial plan under that

9 section, and not less frequently than every 4 years

10 thereafter.

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

12 shall take effect on the date provided by the Secretary pur13 suant to section 807(a) to provide for timely submission

14 and review of the housing plan as necessary for the provi15 sion of assistance under this title for fiscal year 2000.

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

17 STANDARDS.

18 ‘‘(a) PROGRAM INCOME.—

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

20 of Hawaiian Home Lands may retain any program

21 income that is realized from any grant amounts re22 ceived by the Department under this title if—

23 ‘‘(A) that income was realized after the ini24 tial disbursement of the grant amounts received

25 by the Department; and
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1 ‘‘(B) the Director agrees to use the program

2 income for affordable housing activities in ac3 cordance with the provisions of this title.

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

5 The Secretary may not reduce the grant amount for

6 the Department of Hawaiian Home Lands based sole7 ly on—

8 ‘‘(A) whether the Department retains pro9 gram income under paragraph (1); or

10 ‘‘(B) the amount of any such program in11 come retained.

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

13 may, by regulation, exclude from consideration as

14 program income any amounts determined to be so

15 small that compliance with the requirements of this

16 subsection would create an unreasonable administra17 tive burden on the Department.

18 ‘‘(b) LABOR STANDARDS.—

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

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

21 shall contain—

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

23 not less than the wages prevailing in the locality,

24 as determined or adopted (subsequent to a deter25 mination under applicable State or local law) by
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1 the Secretary, shall be paid to all architects,

2 technical engineers, draftsmen, technicians em3 ployed in the development and all maintenance,

4 and laborers and mechanics employed in the op5 eration, of the affordable housing project in6 volved; and

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

8 than the wages prevailing in the locality, as pre9 determined by the Secretary of Labor pursuant

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

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

12 et seq.) shall be paid to all laborers and mechan13 ics employed in the development of the affordable

14 housing involved.

15 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi16 sions relating to wages required under paragraph (1)

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

18 lease under this title, shall not apply to any indi19 vidual who performs the services for which the indi20 vidual volunteered and who is not otherwise employed

21 at any time in the construction work and received no

22 compensation or is paid expenses, reasonable benefits,

23 or a nominal fee for those services.

24 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

25 ‘‘(a) IN GENERAL.—
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1 ‘‘(1) RELEASE OF FUNDS.—

2 ‘‘(A) IN GENERAL.—The Secretary may

3 carry out the alternative environmental protec4 tion procedures described in subparagraph (B)

5 in order to ensure—

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

7 Environmental Policy Act of 1969 (42

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

9 law that further the purposes of such Act

10 (as specified in regulations issued by the

11 Secretary) are most effectively implemented

12 in connection with the expenditure of grant

13 amounts provided under this title; and

14 ‘‘(ii) to the public undiminished pro15 tection of the environment.

16 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO17 TECTION PROCEDURE.—In lieu of applying envi18 ronmental protection procedures otherwise appli19 cable, the Secretary may by regulation provide

20 for the release of funds for specific projects to the

21 Department of Hawaiian Home Lands if the Di22 rector of the Department assumes all of the re23 sponsibilities for environmental review, decision24 making, and action under the National Environ25 mental Policy Act of 1969 (42 U.S.C. 4321 et
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1 seq.), and such other provisions of law as the reg2 ulations of the Secretary specify, that would

3 apply to the Secretary were the Secretary to un4 dertake those projects as Federal projects.

5 ‘‘(2) REGULATIONS.—

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

7 issue regulations to carry out this section only

8 after consultation with the Council on Environ9 mental Quality.

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

11 under this paragraph shall—

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

13 environmental reviews performed under this

14 section;

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

16 facilitate training for the performance of

17 such reviews; and

18 ‘‘(iii) provide for the suspension or ter19 mination of the assumption of responsibil20 ities under this section.

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

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

23 shall not be construed to limit or reduce any responsi24 bility assumed by the Department of Hawaiian Home
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1 Lands for grant amounts with respect to any specific

2 release of funds.

3 ‘‘(b) PROCEDURE.—

4 ‘‘(1) IN GENERAL.—The Secretary shall author5 ize the release of funds subject to the procedures under

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

7 approval and before any commitment of funds to such

8 projects, the Director of the Department of Hawaiian

9 Home Lands submits to the Secretary a request for

10 such release accompanied by a certification that meets

11 the requirements of subsection (c).

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

13 the Secretary of a certification described in para14 graph (1) shall be deemed to satisfy the responsibil15 ities of the Secretary under the National Environ16 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

17 and such other provisions of law as the regulations of

18 the Secretary specify to the extent that those respon19 sibilities relate to the releases of funds for projects

20 that are covered by that certification.

21 ‘‘(c) CERTIFICATION.—A certification under the proce22 dures under this section shall—

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

24 ‘‘(2) be executed by the Director of the Depart25 ment of Hawaiian Home Lands;
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1 ‘‘(3) specify that the Department of Hawaiian

2 Home Lands has fully carried out its responsibilities

3 as described under subsection (a); and

4 ‘‘(4) specify that the Director—

5 ‘‘(A) consents to assume the status of a re6 sponsible Federal official under the National En7 vironmental Policy Act of 1969 (42 U.S.C. 4321

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

9 regulations issued by the Secretary to the extent

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

11 and

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

13 the Department of Hawaiian Home Lands and

14 the Director to accept the jurisdiction of the Fed15 eral courts for the purpose of enforcement of the

16 responsibilities of the Director of the Department

17 of Hawaiian Home Lands as such an official.

18 ‘‘SEC. 807. REGULATIONS.

19 ‘‘The Secretary shall issue final regulations necessary

20 to carry out this title not later than October 1, 1999.

21 ‘‘SEC. 808. EFFECTIVE DATE.

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

23 this title shall take effect on October 1, 1999.
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1 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

2 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI3 LIES.—

4 ‘‘(1) PRIMARY OBJECTIVE.—The national objec5 tives of this title are—

6 ‘‘(A) to assist and promote affordable hous7 ing activities to develop, maintain, and operate

8 affordable housing in safe and healthy environ9 ments for occupancy by low-income Native Ha10 waiian families;

11 ‘‘(B) to ensure better access to private mort12 gage markets and to promote self-sufficiency of

13 low-income Native Hawaiian families;

14 ‘‘(C) to coordinate activities to provide

15 housing for low-income Native Hawaiian fami16 lies with Federal, State and local activities to

17 further economic and community development;

18 ‘‘(D) to plan for and integrate infrastruc19 ture resources on the Hawaiian Home Lands

20 with housing development; and

21 ‘‘(E) to—

22 ‘‘(i) promote the development of private

23 capital markets; and

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

25 clause (i) to operate and grow, thereby bene26 fiting Native Hawaiian communities.
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1 ‘‘(2) ELIGIBLE FAMILIES.—

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

3 under subparagraph (B), assistance for eligible

4 housing activities under this title shall be limited

5 to low-income Native Hawaiian families.

6 ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE7 MENT.—

8 ‘‘(i) IN GENERAL.—The Director may

9 provide assistance for homeownership ac10 tivities under—

11 ‘‘(I) section 810(b);

12 ‘‘(II) model activities under sec13 tion 810(f); or

14 ‘‘(III) loan guarantee activities

15 under section 184A of the Housing and

16 Community Development Act of 1992

17 to Native Hawaiian families who are

18 not low-income families, to the extent

19 that the Secretary approves the activi20 ties under that section to address a

21 need for housing for those families that

22 cannot be reasonably met without that

23 assistance.

24 ‘‘(ii) LIMITATIONS.—The Secretary

25 shall establish limitations on the amount of
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1 assistance that may be provided under this

2 title for activities for families that are not

3 low-income families.

4 ‘‘(C) OTHER FAMILIES.—Notwithstanding

5 paragraph (1), the Director may provide housing

6 or housing assistance provided through affordable

7 housing activities assisted with grant amounts

8 under this title to a family that is not composed

9 of Native Hawaiians if—

10 ‘‘(i) the Department determines that

11 the presence of the family in the housing in12 volved is essential to the well-being of Na13 tive Hawaiian families; and

14 ‘‘(ii) the need for housing for the fam15 ily cannot be reasonably met without the

16 assistance.

17 ‘‘(D) PREFERENCE.—

18 ‘‘(i) IN GENERAL.—A housing plan

19 submitted under section 803 may authorize

20 a preference, for housing or housing assist21 ance provided through affordable housing

22 activities assisted with grant amounts pro23 vided under this title to be provided, to the

24 extent practicable, to families that are eligi25 ble to reside on the Hawaiian Home Lands.
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1 ‘‘(ii) APPLICATION.—In any case in

2 which a housing plan provides for pref3 erence described in clause (i), the Director

4 shall ensure that housing activities that are

5 assisted with grant amounts under this title

6 are subject to that preference.

7 ‘‘(E) USE OF NONPROFIT ORGANIZA8 TIONS.—As a condition of receiving grant

9 amounts under this title, the Department of Ha10 waiian Home Lands, shall to the extent prac11 ticable, provide for private nonprofit organiza12 tions experienced in the planning and develop13 ment of affordable housing for Native Hawaiians

14 to carry out affordable housing activities with

15 those grant amounts.

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

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

18 under this section are activities conducted in accordance

19 with the requirements of section 811 to—

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

21 rental or homeownership; or

22 ‘‘(2) provide housing services with respect to af23 fordable housing, through the activities described in

24 subsection (b).
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1 ‘‘(b) ACTIVITIES.—The activities described in this sub2 section are the following:

3 ‘‘(1) DEVELOPMENT.—The acquisition, new con4 struction, reconstruction, or moderate or substantial

5 rehabilitation of affordable housing, which may

6 include—

7 ‘‘(A) real property acquisition;

8 ‘‘(B) site improvement;

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

10 services;

11 ‘‘(D) conversion;

12 ‘‘(E) demolition;

13 ‘‘(F) financing;

14 ‘‘(G) administration and planning; and

15 ‘‘(H) other related activities.

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

17 housing-related services for affordable housing,

18 including—

19 ‘‘(A) housing counseling in connection with

20 rental or homeownership assistance;

21 ‘‘(B) the establishment and support of resi22 dent organizations and resident management

23 corporations;

24 ‘‘(C) energy auditing;
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1 ‘‘(D) activities related to the provisions of

2 self-sufficiency and other services; and

3 ‘‘(E) other services related to assisting own4 ers, tenants, contractors, and other entities par5 ticipating or seeking to participate in other

6 housing activities assisted pursuant to this sec7 tion.

8 ‘‘(3) HOUSING MANAGEMENT SERVICES.—The

9 provision of management services for affordable hous10 ing, including—

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

12 ‘‘(B) loan processing;

13 ‘‘(C) inspections;

14 ‘‘(D) tenant selection;

15 ‘‘(E) management of tenant-based rental as16 sistance; and

17 ‘‘(F) management of affordable housing

18 projects.

19 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI20 TIES.—The provision of safety, security, and law en21 forcement measures and activities appropriate to pro22 tect residents of affordable housing from crime.

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

24 under model programs that are—
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1 ‘‘(A) designed to carry out the purposes of

2 this title; and

3 ‘‘(B) specifically approved by the Secretary

4 as appropriate for the purpose referred to in sub5 paragraph (A).

6 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

7 ‘‘(a) RENTS.—

8 ‘‘(1) ESTABLISHMENT.—Subject to paragraph

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

10 this title, the Director shall develop written policies

11 governing rents and homebuyer payments charged for

12 dwelling units assisted under this title, including

13 methods by which such rents and homebuyer pay14 ments are determined.

15 ‘‘(2) MAXIMUM RENT.—In the case of any low16 income family residing in a dwelling unit assisted

17 with grant amounts under this title, the monthly rent

18 or homebuyer payment (as applicable) for that dwell19 ing unit may not exceed 30 percent of the monthly

20 adjusted income of that family.

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

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

23 amounts of any grants received under this title, re24 serve and use for operating under section 810 such

25 amounts as may be necessary to provide for the con-
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1 tinued maintenance and efficient operation of such

2 housing.

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

4 subsection may not be construed to prevent the Direc5 tor, or any entity funded by the Department, from de6 molishing or disposing of housing, pursuant to regu7 lations established by the Secretary.

8 ‘‘(c) INSURANCE COVERAGE.—As a condition to receiv9 ing grant amounts under this title, the Director shall re10 quire adequate insurance coverage for housing units that

11 are owned or operated or assisted with grant amounts pro12 vided under this title.

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

14 receiving grant amounts under this title, the Director shall

15 develop written policies governing the eligibility, admission,

16 and occupancy of families for housing assisted with grant

17 amounts provided under this title.

18 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a condi19 tion to receiving grant amounts under this title, the Direc20 tor shall develop policies governing the management and

21 maintenance of housing assisted with grant amounts under

22 this title.
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1 ‘‘SEC. 812. TYPES OF INVESTMENTS.

2 ‘‘(a) IN GENERAL.—Subject to section 811 and an ap3 plicable housing plan approved under section 803, the Di4 rector shall have—

5 ‘‘(1) the discretion to use grant amounts for af6 fordable housing activities through the use of—

7 ‘‘(A) equity investments;

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

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

10 ‘‘(D) interest subsidies;

11 ‘‘(E) the leveraging of private investments;

12 or

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

14 Secretary determines to be consistent with the

15 purposes of this title; and

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

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

18 ‘‘(b) INVESTMENTS.—The Director may invest grant

19 amounts for the purposes of carrying out affordable housing

20 activities in investment securities and other obligations, as

21 approved by the Secretary.

22 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR23 GETING.

24 ‘‘(a) IN GENERAL.—Housing shall qualify for afford25 able housing for purposes of this title only if—

26 ‘‘(1) each dwelling unit in the housing—
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1 ‘‘(A) in the case of rental housing, is made

2 available for occupancy only by a family that is

3 a low-income family at the time of the initial oc4 cupancy of that family of that unit; and

5 ‘‘(B) in the case of housing for homeowner6 ship, is made available for purchase only by a

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

8 of purchase; and

9 ‘‘(2) each dwelling unit in the housing will re10 main affordable, according to binding commitments

11 satisfactory to the Secretary, for—

12 ‘‘(A) the remaining useful life of the prop13 erty (as determined by the Secretary) without re14 gard to the term of the mortgage or to transfer

15 of ownership; or

16 ‘‘(B) such other period as the Secretary de17 termines is the longest feasible period of time

18 consistent with sound economics and the pur19 poses of this title, except upon a foreclosure by

20 a lender (or upon other transfer in lieu of fore21 closure) if that action—

22 ‘‘(i) recognizes any contractual or legal

23 rights of any public agency, nonprofit spon24 sor, or other person or entity to take an ac25 tion that would—
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1 ‘‘(I) avoid termination of low-in2 come affordability, in the case of fore3 closure; or

4 ‘‘(II) transfer ownership in lieu of

5 foreclosure; and

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

7 low-income affordability restrictions, as de8 termined by the Secretary.

9 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a),

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

11 considered affordable housing for purposes of this title.

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

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

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

15 in renting dwelling units in affordable housing assisted

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

17 owner, or manager shall use leases that—

18 ‘‘(1) do not contain unreasonable terms and con19 ditions;

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

21 maintain the housing in compliance with applicable

22 housing codes and quality standards;

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

24 give adequate written notice of termination of the
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1 lease, which shall be the period of time required under

2 applicable State or local law;

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

4 eviction or termination, notwithstanding any State or

5 local law, a resident shall be informed of the oppor6 tunity, before any hearing or trial, to examine any

7 relevant documents, record, or regulations directly re8 lated to the eviction or termination;

9 ‘‘(5) require that the Director, owner, or man10 ager may not terminate the tenancy, during the term

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

12 the terms and conditions of the lease, violation of ap13 plicable Federal, State, or local law, or for other good

14 cause; and

15 ‘‘(6) provide that the Director, owner, or man16 ager may terminate the tenancy of a resident for any

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

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

19 person under the control of the resident, that—

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

21 right to peaceful enjoyment of the premises by,

22 other residents or employees of the Department,

23 owner, or manager;

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

25 right to peaceful enjoyment of their premises by,
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1 persons residing in the immediate vicinity of the

2 premises; or

3 ‘‘(C) is criminal activity (including drug4 related criminal activity) on or off the premises.

5 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a con6 dition to receiving grant amounts under this title, the Di7 rector shall adopt and use written tenant and homebuyer

8 selection policies and criteria that—

9 ‘‘(1) are consistent with the purpose of providing

10 housing for low-income families;

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

12 and the ability of the applicant to perform the obliga13 tions of the lease; and

14 ‘‘(3) provide for—

15 ‘‘(A) the selection of tenants and home16 buyers from a written waiting list in accordance

17 with the policies and goals set forth in an appli18 cable housing plan approved under section 803;

19 and

20 ‘‘(B) the prompt notification in writing of

21 any rejected applicant of the grounds for that re22 jection.

23 ‘‘SEC. 815. REPAYMENT.

24 ‘‘If the Department of Hawaiian Home Lands uses

25 grant amounts to provide affordable housing under activi-
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1 ties under this title and, at any time during the useful life

2 of the housing, the housing does not comply with the re3 quirement under section 813(a)(2), the Secretary shall—

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

5 the Department by an amount equal to the grant

6 amounts used for that housing (under the authority

7 of section 819(a)(2)); or

8 ‘‘(2) require repayment to the Secretary of any

9 amount equal to those grant amounts.

10 ‘‘SEC. 816. ANNUAL ALLOCATION.

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

12 amounts made available for assistance under this title for

13 the fiscal year, in accordance with the formula established

14 pursuant to section 817 to the Department of Hawaiian

15 Home Lands if the Department complies with the require16 ments under this title for a grant under this title.

17 ‘‘SEC. 817. ALLOCATION FORMULA.

18 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by regu19 lation issued not later than the expiration of the 6-month

20 period beginning on the date of enactment of the Native

21 American Housing Assistance and Self-Determination

22 Amendments of 1999, in the manner provided under section

23 807, establish a formula to provide for the allocation of

24 amounts available for a fiscal year for block grants under

25 this title in accordance with the requirements of this section.
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1 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—The

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

3 reflect the needs for assistance for affordable housing activi4 ties, including—

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

6 owned or operated at the time pursuant to a contract

7 between the Director and the Secretary;

8 ‘‘(2) the extent of poverty and economic distress

9 and the number of Native Hawaiian families eligible

10 to reside on the Hawaiian Home Lands; and

11 ‘‘(3) any other objectively measurable conditions

12 that the Secretary and the Director may specify.

13 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es14 tablishing the formula under subsection (a), the Secretary

15 shall consider the relative administrative capacities of the

16 Department of Hawaiian Home Lands and other challenges

17 faced by the Department, including—

18 ‘‘(1) geographic distribution within Hawaiian

19 Home Lands; and

20 ‘‘(2) technical capacity.

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

22 on the date of enactment of the Native American Housing

23 Assistance and Self-Determination Amendments of 1999.
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1 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

2 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

3 AMOUNTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in sub5 section (b), if the Secretary finds after reasonable no6 tice and opportunity for a hearing that the Depart7 ment of Hawaiian Home Lands has failed to comply

8 substantially with any provision of this title, the Sec9 retary shall—

10 ‘‘(A) terminate payments under this title to

11 the Department;

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

13 Department by an amount equal to the amount

14 of such payments that were not expended in ac15 cordance with this title; or

16 ‘‘(C) limit the availability of payments

17 under this title to programs, projects, or activi18 ties not affected by such failure to comply.

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

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

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

22 Secretary determines that the failure by the Depart23 ment to comply with the provision has been remedied

24 by the Department and the Department is in compli25 ance with that provision.
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1 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL IN2 CAPACITY.—The Secretary may provide technical assistance

3 for the Department, either directly or indirectly, that is de4 signed to increase the capability and capacity of the Direc5 tor of the Department to administer assistance provided

6 under this title in compliance with the requirements under

7 this title if the Secretary makes a finding under subsection

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

9 comply substantially with the provisions of this title—

10 ‘‘(1) is not a pattern or practice of activities

11 constituting willful noncompliance; and

12 ‘‘(2) is a result of the limited capability or ca13 pacity of the Department of Hawaiian Home Lands.

14 ‘‘(c) REFERRAL FOR CIVIL ACTION.—

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

16 any action that the Secretary may take under sub17 section (a), if the Secretary has reason to believe that

18 the Department of Hawaiian Home Lands has failed

19 to comply substantially with any provision of this

20 title, the Secretary may refer the matter to the Attor21 ney General of the United States with a recommenda22 tion that an appropriate civil action be instituted.

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

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

25 a civil action in any United States district court of
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1 appropriate jurisdiction for such relief as may be ap2 propriate, including an action—

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

4 furnished under this title that was not expended

5 in accordance with this title; or

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

7 ‘‘(d) REVIEW.—

8 ‘‘(1) IN GENERAL.—If the Director receives no9 tice under subsection (a) of the termination, reduc10 tion, or limitation of payments under this Act, the

11 Director—

12 ‘‘(A) may, not later than 60 days after re13 ceiving such notice, file with the United States

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

15 United States Court of Appeals for the District

16 of Columbia, a petition for review of the action

17 of the Secretary; and

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

19 subparagraph (A), shall forthwith transmit cop20 ies of the petition to the Secretary and the Attor21 ney General of the United States, who shall rep22 resent the Secretary in the litigation.

23 ‘‘(2) PROCEDURE.—

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

25 in the court a record of the proceeding on which
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1 the Secretary based the action, as provided in

2 section 2112 of title 28, United States Code.

3 ‘‘(B) OBJECTIONS.—No objection to the ac4 tion of the Secretary shall be considered by the

5 court unless the Department has registered the

6 objection before the Secretary.

7 ‘‘(3) DISPOSITION.—

8 ‘‘(A) COURT PROCEEDINGS.—

9 ‘‘(i) JURISDICTION OF COURT.—The

10 court shall have jurisdiction to affirm or

11 modify the action of the Secretary or to set

12 the action aside in whole or in part.

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

14 by substantial evidence on the record con15 sidered as a whole, the findings of fact by

16 the Secretary shall be conclusive.

17 ‘‘(iii) ADDITION.—The court may

18 order evidence, in addition to the evidence

19 submitted for review under this subsection,

20 to be taken by the Secretary, and to be

21 made part of the record.

22 ‘‘(B) SECRETARY.—

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

24 reason of the additional evidence referred to
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1 in subparagraph (A) and filed with the

2 court—

3 ‘‘(I) may—

4 ‘‘(aa) modify the findings of

5 fact of the Secretary; or

6 ‘‘(bb) make new findings;

7 and

8 ‘‘(II) shall file—

9 ‘‘(aa) such modified or new

10 findings; and

11 ‘‘(bb) the recommendation of

12 the Secretary, if any, for the

13 modification or setting aside of

14 the original action of the Sec15 retary.

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

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

18 a question of fact, be considered to be con19 clusive if those findings are—

20 ‘‘(I) supported by substantial evi21 dence on the record; and

22 ‘‘(II) considered as a whole.

23 ‘‘(4) FINALITY.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

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

3 under this subsection with the court—

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

5 be exclusive; and

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

7 final.

8 ‘‘(B) REVIEW BY SUPREME COURT.—A

9 judgment under subparagraph (A) shall be sub10 ject to review by the Supreme Court of the

11 United States upon writ of certiorari or certifi12 cation, as provided in section 1254 of title 28,

13 United States Code.

14 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

15 ‘‘(a) ENFORCEABLE AGREEMENTS.—

16 ‘‘(1) IN GENERAL.—The Director, through bind17 ing contractual agreements with owners or other au18 thorized entities, shall ensure long-term compliance

19 with the provisions of this title.

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

21 paragraph (1) shall provide for—

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

23 State law, the enforcement of the provisions of

24 this title by the Department and the Secretary;

25 and
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1 ‘‘(B) remedies for breach of the provisions

2 referred to in paragraph (1).

3 ‘‘(b) PERIODIC MONITORING.—

4 ‘‘(1) IN GENERAL.—Not less frequently than an5 nually, the Director shall review the activities con6 ducted and housing assisted under this title to assess

7 compliance with the requirements of this title.

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

9 (1) shall include onsite inspection of housing to deter10 mine compliance with applicable requirements.

11 ‘‘(3) RESULTS.—The results of each review under

12 paragraph (1) shall be—

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

14 the Director submitted to the Secretary under

15 section 820; and

16 ‘‘(B) made available to the public.

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

18 establish such performance measures as may be necessary

19 to assess compliance with the requirements of this title.

20 ‘‘SEC. 820. PERFORMANCE REPORTS.

21 ‘‘(a) REQUIREMENT.—For each fiscal year, the Direc22 tor shall—

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

24 made during that fiscal year in carrying out the
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1 housing plan submitted by the Department under sec2 tion 803; and

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

4 acceptable to the Secretary) describing the conclusions

5 of the review.

6 ‘‘(b) CONTENT.—Each report submitted under this sec7 tion for a fiscal year shall—

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

9 to the Department of Hawaiian Home Lands for that

10 fiscal year;

11 ‘‘(2) assess the relationship of the use referred to

12 in paragraph (1) to the goals identified in the hous13 ing plan;

14 ‘‘(3) indicate the programmatic accomplishments

15 of the Department; and

16 ‘‘(4) describe the manner in which the Depart17 ment would change its housing plan submitted under

18 section 803 as a result of its experiences.

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

20 ‘‘(1) establish a date for submission of each re21 port under this section;

22 ‘‘(2) review each such report; and

23 ‘‘(3) with respect to each such report, make rec24 ommendations as the Secretary considers appropriate

25 to carry out the purposes of this title.
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1 ‘‘(d) PUBLIC AVAILABILITY.—

2 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre3 paring a report under this section, the Director shall

4 make the report publicly available to the beneficiaries

5 of the Hawaiian Homes Commission Act, 1920 (42

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

7 to permit those beneficiaries to comment on that re8 port before it is submitted to the Secretary (in such

9 manner and at such time as the Director may deter10 mine).

11 ‘‘(2) SUMMARY OF COMMENTS.—The report shall

12 include a summary of any comments received by the

13 Director from beneficiaries under paragraph (1) re14 garding the program to carry out the housing plan.

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

16 ‘‘(a) ANNUAL REVIEW.—

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

18 frequently than on an annual basis, make such re19 views and audits as may be necessary or appropriate

20 to determine whether—

21 ‘‘(A) the Director has—

22 ‘‘(i) carried out eligible activities

23 under this title in a timely manner;

24 ‘‘(ii) carried out and made certifi25 cations in accordance with the requirements
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1 and the primary objectives of this title and

2 with other applicable laws; and

3 ‘‘(iii) a continuing capacity to carry

4 out the eligible activities in a timely man5 ner;

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

7 housing plan submitted by the Director under

8 section 803; and

9 ‘‘(C) the performance reports of the Depart10 ment under section 821 are accurate.

11 ‘‘(2) ONSITE VISITS.—Each review conducted

12 under this section shall, to the extent practicable, in13 clude onsite visits by employees of the Department of

14 Housing and Urban Development.

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

16 give the Department of Hawaiian Home Lands not less

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

18 this subsection. After taking into consideration the com19 ments of the Department, the Secretary may revise the re20 port and shall make the comments of the Department and

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

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

23 Department.

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

25 appropriate adjustments in the amount of annual grants
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1 under this title in accordance with the findings of the Sec2 retary pursuant to reviews and audits under this section.

3 The Secretary may adjust, reduce, or withdraw grant

4 amounts, or take other action as appropriate in accordance

5 with the reviews and audits of the Secretary under this sec6 tion, except that grant amounts already expended on afford7 able housing activities may not be recaptured or deducted

8 from future assistance provided to the Department of Ha9 waiian Home Lands.

10 ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

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

12 Department of Hawaiian Home Lands involving grant

13 amounts under this title relate to amounts provided under

14 this title, those transactions may be audited by the Comp15 troller General of the United States under such regulations

16 as may be prescribed by the Comptroller General. The

17 Comptroller General of the United States shall have access

18 to all books, accounts, records, reports, files, and other pa19 pers, things, or property belonging to or in use by the De20 partment of Hawaiian Home Lands pertaining to such fi21 nancial transactions and necessary to facilitate the audit.

22 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

24 conclusion of each fiscal year in which assistance under this
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1 title is made available, the Secretary shall submit to Con2 gress a report that contains—

3 ‘‘(1) a description of the progress made in ac4 complishing the objectives of this title;

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

6 under this title during the preceding fiscal year; and

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

8 loan guarantees under section 184A of the Housing

9 and Community Development Act of 1992.

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

11 the Director to submit to the Secretary such reports and

12 other information as may be necessary in order for the Sec13 retary to prepare the report required under subsection (a).

14 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘There are authorized to be appropriated to the De16 partment of Housing and Urban Development for grants

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

18 of fiscal years 2000, 2001, 2002, 2003, and 2004.’’.

19 SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUS20 ING.

21 Subtitle E of title I of the Housing and Community

22 Development Act of 1992 is amended by inserting after sec23 tion 184 (12 U.S.C. 1715z–13a) the following:
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1 ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN

2 HOUSING.

3 ‘‘(a) DEFINITIONS.—In this section:

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

5 The term ‘Department of Hawaiian Home Lands’

6 means the agency or department of the government of

7 the State of Hawaii that is responsible for the admin8 istration of the Hawaiian Homes Commission Act,

9 1920 (42 Stat. 108 et seq.).

10 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti11 ty’ means a Native Hawaiian family, the Department

12 of Hawaiian Home Lands, the Office of Hawaiian

13 Affairs, and private nonprofit or private for-profit or14 ganizations experienced in the planning and develop15 ment of affordable housing for Native Hawaiians.

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

17 more persons maintaining a household, as the Sec18 retary shall by regulation provide.

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

20 Fund’ means the Native Hawaiian Housing Loan

21 Guarantee Fund established under subsection (i).

22 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha23 waiian Home Lands’ means lands that—

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

25 Lands under section 204 of the Hawaiian Homes

26 Commission Act (42 Stat. 110); or
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1 ‘‘(B) are acquired pursuant to that Act.

2 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native Ha3 waiian’ means any individual who is—

4 ‘‘(A) a citizen of the United States; and

5 ‘‘(B) a descendant of the aboriginal people,

6 who, prior to 1778, occupied and exercised sov7 ereignty in the area that currently constitutes

8 the State of Hawaii, as evidenced by—

9 ‘‘(i) genealogical records;

10 ‘‘(ii) verification by kupuna (elders) or

11 kama’aina (long-term community resi12 dents); or

13 ‘‘(iii) birth records of the State of Ha14 waii.

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

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

17 name established under the constitution of the State

18 of Hawaii.

19 ‘‘(b) AUTHORITY.—To provide access to sources of pri20 vate financing to Native Hawaiian families who otherwise

21 could not acquire housing financing because of the unique

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

23 of a lack of access to private financial markets, the Sec24 retary may guarantee an amount not to exceed 100 percent
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1 of the unpaid principal and interest that is due on an eligi2 ble loan under subsection (b).

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

4 an eligible loan if that loan meets the following require5 ments:

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

7 only to a borrower who is—

8 ‘‘(A) a Native Hawaiian family;

9 ‘‘(B) the Department of Hawaiian Home

10 Lands;

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

12 ‘‘(D) a private nonprofit organization expe13 rienced in the planning and development of af14 fordable housing for Native Hawaiians.

15 ‘‘(2) ELIGIBLE HOUSING.—

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

17 to construct, acquire, or rehabilitate not more

18 than 4-family dwellings that are standard hous19 ing and are located on Hawaiian Home Lands

20 for which a housing plan described in subpara21 graph (B) applies.

22 ‘‘(B) HOUSING PLAN.—A housing plan de23 scribed in this subparagraph is a housing plan

24 that—
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1 ‘‘(i) has been submitted and approved

2 by the Secretary under section 803 of the

3 Native American Housing Assistance and

4 Self-Determination Amendments of 1999;

5 and

6 ‘‘(ii) provides for the use of loan guar7 antees under this section to provide afford8 able homeownership housing on Hawaiian

9 Home Lands.

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

11 any collateral authorized under applicable Federal or

12 State law.

13 ‘‘(4) LENDERS.—

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

15 only by a lender approved by, and meeting

16 qualifications established by, the Secretary, in17 cluding any lender described in subparagraph

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

19 guaranteed by an agency of the Federal Govern20 ment or made by the Department of Hawaiian

21 Home Lands from amounts borrowed from the

22 United States shall not be eligible for a guar23 antee under this section.
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1 ‘‘(B) APPROVAL.—The following lenders

2 shall be considered to be lenders that have been

3 approved by the Secretary:

4 ‘‘(i) Any mortgagee approved by the

5 Secretary for participation in the single

6 family mortgage insurance program under

7 title II of the National Housing Act (12

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

9 ‘‘(ii) Any lender that makes housing

10 loans under chapter 37 of title 38, United

11 States Code, that are automatically guaran12 teed under section 3702(d) of title 38,

13 United States Code.

14 ‘‘(iii) Any lender approved by the Sec15 retary of Agriculture to make guaranteed

16 loans for single family housing under the

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

18 seq.).

19 ‘‘(iv) Any other lender that is super20 vised, approved, regulated, or insured by

21 any agency of the Federal Government.

22 ‘‘(5) TERMS.—The loan shall—

23 ‘‘(A) be made for a term not exceeding 30

24 years;
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1 ‘‘(B) bear interest (exclusive of the guar2 antee fee under subsection (d) and service

3 charges, if any) at a rate agreed upon by the

4 borrower and the lender and determined by the

5 Secretary to be reasonable, but not to exceed the

6 rate generally charged in the area (as deter7 mined by the Secretary) for home mortgage loans

8 not guaranteed or insured by any agency or in9 strumentality of the Federal Government;

10 ‘‘(C) involve a principal obligation not

11 exceeding—

12 ‘‘(i) 97.75 percent of the appraised

13 value of the property as of the date the loan

14 is accepted for guarantee (or 98.75 percent

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

16 less); or

17 ‘‘(ii) the amount approved by the Sec18 retary under this section; and

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

20 property—

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

22 ‘‘(ii) through the value of any improve23 ments to the property made through the

24 skilled or unskilled labor of the borrower, as

25 the Secretary shall provide.
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1 ‘‘(d) CERTIFICATE OF GUARANTEE.—

2 ‘‘(1) APPROVAL PROCESS.—

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

4 approves any loan for guarantee under this sec5 tion, the lender shall submit the application for

6 the loan to the Secretary for examination.

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

8 the application submitted under subparagraph

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

10 this subsection as evidence of the loan guarantee

11 approved.

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

13 may approve a loan for guarantee under this section

14 and issue a certificate under this subsection only if

15 the Secretary determines that there is a reasonable

16 prospect of repayment of the loan.

17 ‘‘(3) EFFECT.—

18 ‘‘(A) IN GENERAL.—A certificate of guar19 antee issued under this subsection by the Sec20 retary shall be conclusive evidence of the eligi21 bility of the loan for guarantee under this section

22 and the amount of that guarantee.

23 ‘‘(B) EVIDENCE.—The evidence referred to

24 in subparagraph (A) shall be incontestable in the

25 hands of the bearer.
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1 ‘‘(C) FULL FAITH AND CREDIT.—The full

2 faith and credit of the United States is pledged

3 to the payment of all amounts agreed to be paid

4 by the Secretary as security for the obligations

5 made by the Secretary under this section.

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

7 subsection may not be construed—

8 ‘‘(A) to preclude the Secretary from estab9 lishing defenses against the original lender based

10 on fraud or material misrepresentation; or

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

12 by regulations that are on the date of issuance

13 or disbursement, whichever is earlier, partial de14 fenses to the amount payable on the guarantee.

15 ‘‘(e) GUARANTEE FEE.—

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

17 collect a guarantee fee for the guarantee of a loan

18 under this section, which may not exceed the amount

19 equal to 1 percent of the principal obligation of the

20 loan.

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

22 shall—

23 ‘‘(A) be paid by the lender at time of

24 issuance of the guarantee; and
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1 ‘‘(B) be adequate, in the determination of

2 the Secretary, to cover expenses and probable

3 losses.

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

5 fees collected under this subsection in the Native Ha6 waiian Housing Loan Guarantee Fund established

7 under subsection (j).

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

9 under a guarantee provided under this section shall de10 crease or increase on a pro rata basis according to any de11 crease or increase in the amount of the unpaid obligation

12 under the provisions of the loan agreement involved.

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

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

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

16 sold or assigned by the lender to any financial institution

17 subject to examination and supervision by an agency of the

18 Federal Government or of any State or the District of Co19 lumbia.

20 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

21 MONEY PENALTIES.—

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) GROUNDS FOR ACTION.—The Sec24 retary may take action under subparagraph (B)

25 if the Secretary determines that any lender or
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1 holder of a guarantee certificate under subsection

2 (c)—

3 ‘‘(i) has failed—

4 ‘‘(I) to maintain adequate ac5 counting records;

6 ‘‘(II) to service adequately loans

7 guaranteed under this section; or

8 ‘‘(III) to exercise proper credit or

9 underwriting judgment; or

10 ‘‘(ii) has engaged in practices other11 wise detrimental to the interest of a bor12 rower or the United States.

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

14 the Secretary that a holder of a guarantee certifi15 cate under subsection (c) has failed to carry out

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

17 has engaged in practices described in subpara18 graph (A)(ii), the Secretary may—

19 ‘‘(i) refuse, either temporarily or per20 manently, to guarantee any further loans

21 made by such lender or holder;

22 ‘‘(ii) bar such lender or holder from ac23 quiring additional loans guaranteed under

24 this section; and
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1 ‘‘(iii) require that such lender or holder

2 assume not less than 10 percent of any loss

3 on further loans made or held by the lender

4 or holder that are guaranteed under this

5 section.

6 ‘‘(2) CIVIL MONEY PENALTIES FOR INTENTIONAL

7 VIOLATIONS.—

8 ‘‘(A) IN GENERAL.—The Secretary may im9 pose a civil monetary penalty on a lender or

10 holder of a guarantee certificate under subsection

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

12 lender has intentionally failed—

13 ‘‘(i) to maintain adequate accounting

14 records;

15 ‘‘(ii) to adequately service loans guar16 anteed under this section; or

17 ‘‘(iii) to exercise proper credit or un18 derwriting judgment.

19 ‘‘(B) PENALTIES.—A civil monetary pen20 alty imposed under this paragraph shall be im21 posed in the manner and be in an amount pro22 vided under section 536 of the National Housing

23 Act (12 U.S.C.A. 1735f–1) with respect to mort24 gagees and lenders under that Act.
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1 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

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

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

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

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

6 holder is barred under this subsection.

7 ‘‘(i) PAYMENT UNDER GUARANTEE.—

8 ‘‘(1) LENDER OPTIONS.—

9 ‘‘(A) IN GENERAL.—

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

11 a loan guaranteed under this section de12 faults on the loan, the holder of the guar13 antee certificate shall provide written notice

14 of the default to the Secretary.

15 ‘‘(ii) PAYMENT.—Upon providing the

16 notice required under clause (i), the holder

17 of the guarantee certificate shall be entitled

18 to payment under the guarantee (subject to

19 the provisions of this section) and may pro20 ceed to obtain payment in 1 of the following

21 manners:

22 ‘‘(I) FORECLOSURE.—

23 ‘‘(aa) IN GENERAL.—The

24 holder of the certificate may ini25 tiate foreclosure proceedings (after
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1 providing written notice of that

2 action to the Secretary).

3 ‘‘(bb) PAYMENT.—Upon a

4 final order by the court author5 izing foreclosure and submission

6 to the Secretary of a claim for

7 payment under the guarantee, the

8 Secretary shall pay to the holder

9 of the certificate the pro rata por10 tion of the amount guaranteed (as

11 determined pursuant to subsection

12 (f)) plus reasonable fees and ex13 penses as approved by the Sec14 retary.

15 ‘‘(cc) SUBROGATION.—The

16 rights of the Secretary shall be

17 subrogated to the rights of the

18 holder of the guarantee. The hold19 er shall assign the obligation and

20 security to the Secretary.

21 ‘‘(II) NO FORECLOSURE.—

22 ‘‘(aa) IN GENERAL.—Without

23 seeking foreclosure (or in any case

24 in which a foreclosure proceeding

25 initiated under clause (i) con-
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1 tinues for a period in excess of 1

2 year), the holder of the guarantee

3 may submit to the Secretary a re4 quest to assign the obligation and

5 security interest to the Secretary

6 in return for payment of the

7 claim under the guarantee. The

8 Secretary may accept assignment

9 of the loan if the Secretary deter10 mines that the assignment is in

11 the best interest of the United

12 States.

13 ‘‘(bb) PAYMENT.—Upon as14 signment, the Secretary shall pay

15 to the holder of the guarantee the

16 pro rata portion of the amount

17 guaranteed (as determined under

18 subsection (f)).

19 ‘‘(cc) SUBROGATION.—The

20 rights of the Secretary shall be

21 subrogated to the rights of the

22 holder of the guarantee. The hold23 er shall assign the obligation and

24 security to the Secretary.
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1 ‘‘(B) REQUIREMENTS.—Before any pay2 ment under a guarantee is made under subpara3 graph (A), the holder of the guarantee shall ex4 haust all reasonable possibilities of collection.

5 Upon payment, in whole or in part, to the hold6 er, the note or judgment evidencing the debt shall

7 be assigned to the United States and the holder

8 shall have no further claim against the borrower

9 or the United States. The Secretary shall then

10 take such action to collect as the Secretary deter11 mines to be appropriate.

12 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

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

14 on a loan guaranteed under this section that in15 volves a security interest in restricted Hawaiian

16 Home Land property, the mortgagee or the Sec17 retary shall only pursue liquidation after offer18 ing to transfer the account to another eligible

19 Hawaiian family or the Department of Hawai20 ian Home Lands.

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

22 under subparagraph (A), the mortgagee or the

23 Secretary subsequently proceeds to liquidate the

24 account, the mortgagee or the Secretary shall not

25 sell, transfer, or otherwise dispose of or alienate
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1 the property described in subparagraph (A) ex2 cept to another eligible Hawaiian family or to

3 the Department of Hawaiian Home Lands.

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

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

6 the Treasury of the United States the Hawaiian

7 Housing Loan Guarantee Fund for the purpose of

8 providing loan guarantees under this section.

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

10 credited with—

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

12 contracts, and property acquired by the Sec13 retary under this section, and any collections

14 and proceeds therefrom;

15 ‘‘(B) any amounts appropriated pursuant

16 to paragraph (7);

17 ‘‘(C) any guarantee fees collected under sub18 section (d); and

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

20 invested under paragraph (4).

21 ‘‘(3) USE.—Amounts in the Guarantee Fund

22 shall be available, to the extent provided in appro23 priations Acts, for—

24 ‘‘(A) fulfilling any obligations of the Sec25 retary with respect to loans guaranteed under
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1 this section, including the costs (as that term is

2 defined in section 502 of the Federal Credit Re3 form Act of 1990 (2 U.S.C. 661a)) of such loans;

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

5 expenses necessary to make fiscal adjustment in

6 connection with the application and transmittal

7 of collections, and other expenses and advances to

8 protect the Secretary for loans which are guaran9 teed under this section or held by the Secretary;

10 ‘‘(C) acquiring such security property at

11 foreclosure sales or otherwise;

12 ‘‘(D) paying administrative expenses in

13 connection with this section; and

14 ‘‘(E) reasonable and necessary costs of reha15 bilitation and repair to properties that the Sec16 retary holds or owns pursuant to this section.

17 ‘‘(4) INVESTMENT.—Any amounts in the Guar18 antee Fund determined by the Secretary to be in ex19 cess of amounts currently required at the time of the

20 determination to carry out this section may be in21 vested in obligations of the United States.

22 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR23 ANTEE LOANS AND MORTGAGES.—

24 ‘‘(A) REQUIREMENT OF APPROPRIATIONS.—

25 The authority of the Secretary to enter into com-
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1 mitments to guarantee loans under this section

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

3 or in such amounts as are, or have been, pro4 vided in appropriations Acts, without regard to

5 the fiscal year for which such amounts were ap6 propriated.

7 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN8 TEES.—The authority of the Secretary to enter

9 into commitments to guarantee loans under this

10 section shall be effective for any fiscal year only

11 to the extent that amounts in the Guarantee

12 Fund are or have been made available in appro13 priations Acts to cover the costs (as that term

14 is defined in section 502 of the Federal Credit

15 Reform Act of 1990 (2 U.S.C. 661a)) of such

16 loan guarantees for such fiscal year. Any

17 amounts appropriated pursuant to this subpara18 graph shall remain available until expended.

19 ‘‘(C) LIMITATION ON OUTSTANDING AGGRE20 GATE PRINCIPAL AMOUNT.—Subject to the limi21 tations in subparagraphs (A) and (B), the Sec22 retary may enter into commitments to guarantee

23 loans under this section for each of fiscal years

24 2000, 2001, 2002, 2003, and 2004 with an ag-
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1 gregate outstanding principal amount not ex2 ceeding $100,000,000 for each such fiscal year.

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

4 of the assets credited to the Guarantee Fund under

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

6 of the Guarantee Fund.

7 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

8 There are authorized to be appropriated to the Guar9 antee Fund to carry out this section such sums as

10 may be necessary for each of fiscal years 2000, 2001,

11 2002, 2003, and 2004.

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

13 ‘‘(1) IN GENERAL.—The Secretary shall, by regu14 lation, establish housing safety and quality standards

15 to be applied for use under this section.

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

17 paragraph (1) shall—

18 ‘‘(A) provide sufficient flexibility to permit

19 the use of various designs and materials in hous20 ing acquired with loans guaranteed under this

21 section; and

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

23 housing acquired in the manner described in

24 subparagraph (A) to—
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1 ‘‘(i) be decent, safe, sanitary, and mod2 est in size and design;

3 ‘‘(ii) conform with applicable general

4 construction standards for the region in

5 which the housing is located;

6 ‘‘(iii) contain a plumbing system

7 that—

8 ‘‘(I) uses a properly installed sys9 tem of piping;

10 ‘‘(II) includes a kitchen sink and

11 a partitional bathroom with lavatory,

12 toilet, and bath or shower; and

13 ‘‘(III) uses water supply, plumb14 ing, and sewage disposal systems that

15 conform to any minimum standards

16 established by the applicable county or

17 State;

18 ‘‘(iv) contain an electrical system

19 using wiring and equipment properly in20 stalled to safely supply electrical energy for

21 adequate lighting and for operation of ap22 pliances that conforms to any appropriate

23 county, State, or national code;

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

25 under the applicable locally adopted stand-
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1 ards for size of dwelling units, except that

2 the Secretary, upon request of the Depart3 ment of Hawaiian Home Lands may waive

4 the size requirements under this paragraph;

5 and

6 ‘‘(vi) conform with the energy perform7 ance requirements for new construction es8 tablished by the Secretary under section

9 526(a) of the National Housing Act (12

10 U.S.C.A. 1735f–4), unless the Secretary de11 termines that the requirements are not ap12 plicable.

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

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

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

16 of the Act popularly known as the ‘Civil Rights Act of 1968’

17 (42 U.S.C.A. 3601 et seq.) apply to a guarantee provided

18 under this subsection, nothing in the requirements con19 cerning discrimination on the basis of race shall be con20 strued to prevent the provision of the guarantee to an eligi21 ble entity on the basis that the entity serves Native Hawai22 ian families or is a Native Hawaiian family.’’.