I

106TH CONGRESS

1ST SESSION S. 225

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 5, 1999

Referred to the Committee on Banking and Financial Services

AN ACT

To provide Federal housing assistance to Native Hawaiians.

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

3 SECTION 1. SHORT TITLE.

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

5 Housing Assistance and Self-Determination Amendments

6 of 1999’’.
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1 SEC. 2. FINDINGS.

2 Congress finds that—

3 (1) the United States has undertaken a respon4 sibility to promote the general welfare of the United

5 States by—

6 (A) employing its resources to remedy the

7 unsafe and unsanitary housing conditions and

8 the acute shortage of decent, safe, and sanitary

9 dwellings for families of lower income; and

10 (B) developing effective partnerships with

11 governmental and private entities to accomplish

12 the objectives referred to in subparagraph (A);

13 (2) the United States has a special responsi14 bility for the welfare of the Native peoples of the

15 United States, including Native Hawaiians;

16 (3) pursuant to the provisions of the Hawaiian

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

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

19 land in the Federal territory that later became the

20 State of Hawaii in order to establish a homeland for

21 the native people of Hawaii—Native Hawaiians;

22 (4) despite the intent of Congress in 1920 to

23 address the housing needs of Native Hawaiians

24 through the enactment of the Hawaiian Homes

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

26 Hawaiians eligible to reside on the Hawaiian home
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1 lands have been foreclosed from participating in

2 Federal housing assistance programs available to all

3 other eligible families in the United States;

4 (5) although Federal housing assistance pro5 grams have been administered on a racially neutral

6 basis in the State of Hawaii, Native Hawaiians con7 tinue to have the greatest unmet need for housing

8 and the highest rates of overcrowding in the United

9 States;

10 (6) among the Native American population of

11 the United States, Native Hawaiians experience the

12 highest percentage of housing problems in the

13 United States, as the percentage—

14 (A) of housing problems in the Native Ha15 waiian population is 49 percent, as compared

16 to—

17 (i) 44 percent for American Indian

18 and Alaska Native households in Indian

19 country; and

20 (ii) 27 percent for all other house21 holds in the United States; and

22 (B) overcrowding in the Native Hawaiian

23 population is 36 percent as compared to 3 per24 cent for all other households in the United

25 States;
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1 (7) among the Native Hawaiian population, the

2 needs of Native Hawaiians, as that term is defined

3 in section 801 of the Native American Housing As4 sistance and Self-Determination Act of 1996, as

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

6 the Hawaiian Home Lands are the most severe,

7 as—

8 (A) the percentage of overcrowding in Na9 tive Hawaiian households on the Hawaiian

10 Home Lands is 36 percent; and

11 (B) approximately 13,000 Native Hawai12 ians, which constitute 95 percent of the Native

13 Hawaiians who are eligible to reside on the Ha14 waiian Home Lands, are in need of housing;

15 (8) applying the Department of Housing and

16 Urban Development guidelines—

17 (A) 70.8 percent of Native Hawaiians who

18 either reside or who are eligible to reside on the

19 Hawaiian Home Lands have incomes that fall

20 below the median family income; and

21 (B) 50 percent of Native Hawaiians who

22 either reside or who are eligible to reside on the

23 Hawaiian Home Lands have incomes below 30

24 percent of the median family income;
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(9) 1 1 ⁄3 of those Native Hawaiians who are eligi2 ble to reside on the Hawaiian Home Lands pay

3 more than 30 percent of their income for shelter,

and 1 4 ⁄2 of those Native Hawaiians face overcrowding;

5 (10) the extraordinarily severe housing needs of

6 Native Hawaiians demonstrate that Native Hawai7 ians who either reside on, or are eligible to reside on,

8 Hawaiian Home Lands have been denied equal ac9 cess to Federal low-income housing assistance pro10 grams available to other qualified residents of the

11 United States, and that a more effective means of

12 addressing their housing needs must be authorized;

13 (11) consistent with the recommendations of

14 the National Commission on American Indian, Alas15 ka Native, and Native Hawaiian Housing, and in

16 order to address the continuing prevalence of ex17 traordinarily severe housing needs among Native

18 Hawaiians who either reside or are eligible to reside

19 on the Hawaiian Home Lands, Congress finds it

20 necessary to extend the Federal low-income housing

21 assistance available to American Indians and Alaska

22 Natives under the Native American Housing Assist23 ance and Self-Determination Act of 1996 (25 U.S.C.

24 4101 et seq.) to those Native Hawaiians;
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1 (12) under the treatymaking power of the

2 United States, Congress had the constitutional au3 thority to confirm a treaty between the United

4 States and the government that represented the Ha5 waiian people, and from 1826 until 1893, the United

6 States recognized the independence of the Kingdom

7 of Hawaii, extended full diplomatic recognition to

8 the Hawaiian Government, and entered into treaties

9 and conventions with the Hawaiian monarchs to gov10 ern commerce and navigation in 1826, 1842, 1849,

11 1875, and 1887;

12 (13) the United States has recognized and re13 affirmed that—

14 (A) Native Hawaiians have a cultural, his15 toric, and land-based link to the indigenous peo16 ple who exercised sovereignty over the Hawaiian

17 Islands, and that group has never relinquished

18 its claims to sovereignty or its sovereign lands;

19 (B) Congress does not extend services to

20 Native Hawaiians because of their race, but be21 cause of their unique status as the indigenous

22 people of a once sovereign nation as to whom

23 the United States has established a trust rela24 tionship;
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1 (C) Congress has also delegated broad au2 thority to administer a portion of the Federal

3 trust responsibility to the State of Hawaii;

4 (D) the political status of Native Hawai5 ians is comparable to that of American Indians

6 and Alaska Natives; and

7 (E) the aboriginal, indigenous people of

8 the United States have—

9 (i) a continuing right to autonomy in

10 their internal affairs; and

11 (ii) an ongoing right of self-deter12 mination and self-governance that has

13 never been extinguished;

14 (14) the political relationship between the

15 United States and the Native Hawaiian people has

16 been recognized and reaffirmed by the United States

17 as evidenced by the inclusion of Native Hawaiians

18 in—

19 (A) the Native American Programs Act of

20 1974 (42 U.S.C. 2291 et seq.);

21 (B) the American Indian Religious Free22 dom Act (42 U.S.C. 1996 et seq.);

23 (C) the National Museum of the American

24 Indian Act (20 U.S.C. 80q et seq.);
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1 (D) the Native American Graves Protec2 tion and Repatriation Act (25 U.S.C. 3001 et

3 seq.);

4 (E) the National Historic Preservation Act

5 (16 U.S.C. 470 et seq.);

6 (F) the Native American Languages Act of

7 1992 (106 Stat. 3434);

8 (G) the American Indian, Alaska Native

9 and Native Hawaiian Culture and Arts Devel10 opment Act (20 U.S.C. 4401 et seq.);

11 (H) the Job Training Partnership Act (29

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

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

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

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

16 has recognized and reaffirmed the political relation17 ship with the Native Hawaiian people through—

18 (A) the enactment of the Hawaiian Homes

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

20 which set aside approximately 200,000 acres of

21 public lands that became known as Hawaiian

22 Home Lands in the Territory of Hawaii that

23 had been ceded to the United States for home24 steading by Native Hawaiians in order to reha25 bilitate a landless and dying people;
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1 (B) the enactment of the Act entitled ‘‘An

2 Act to provide for the admission of the State of

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

4 1959 (73 Stat. 4)—

5 (i) by ceding to the State of Hawaii

6 title to the public lands formerly held by

7 the United States, and mandating that

8 those lands be held in public trust, for the

9 betterment of the conditions of Native Ha10 waiians, as that term is defined in section

11 201 of the Hawaiian Homes Commission

12 Act, 1920 (42 Stat. 108 et seq.); and

13 (ii) by transferring the United States

14 responsibility for the administration of Ha15 waiian Home Lands to the State of Ha16 waii, but retaining the authority to enforce

17 the trust, including the exclusive right of

18 the United States to consent to any actions

19 affecting the lands which comprise the cor20 pus of the trust and any amendments to

21 the Hawaiian Homes Commission Act,

22 1920 (42 Stat. 108 et seq.), enacted by the

23 legislature of the State of Hawaii affecting

24 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’ means any individual who is—

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

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

19 who, prior to 1778, occupied and exercised sov20 ereignty in the area that currently constitutes

21 the State of Hawaii, as evidenced by—

22 ‘‘(i) genealogical records;

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

24 kama’aina (long-term community resi25 dents); or
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1 ‘‘(iii) birth records of the State of Ha2 waii.

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

4 ACTIVITIES.

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

6 Secretary shall (to the extent amounts are made available

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

8 the Department of Hawaiian Home Lands to carry out

9 affordable housing activities for Native Hawaiian families

10 who are eligible to reside on the Hawaiian Home Lands.

11 ‘‘(b) PLAN REQUIREMENT.—

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

13 grant under this title to the Department of Hawai14 ian Home Lands for a fiscal year only if—

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

16 Secretary a housing plan for that fiscal year;

17 and

18 ‘‘(B) the Secretary has determined under

19 section 804 that the housing plan complies with

20 the requirements of section 803.

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

22 applicability of the requirements under paragraph

23 (1), in part, if the Secretary finds that the Depart24 ment of Hawaiian Home Lands has not complied or

25 cannot comply with those requirements due to cir-
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1 cumstances beyond the control of the Department of

2 Hawaiian Home Lands.

3 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

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

5 amounts provided under a grant under this section may

6 be used only for affordable housing activities under this

7 title that are consistent with a housing plan approved

8 under section 804.

9 ‘‘(d) ADMINISTRATIVE EXPENSES.—

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

11 regulation, authorize the Department of Hawaiian

12 Home Lands to use a percentage of any grant

13 amounts received under this title for any reasonable

14 administrative and planning expenses of the Depart15 ment relating to carrying out this title and activities

16 assisted with those amounts.

17 ‘‘(2) ADMINISTRATIVE AND PLANNING EX18 PENSES.—The administrative and planning expenses

19 referred to in paragraph (1) include—

20 ‘‘(A) costs for salaries of individuals en21 gaged in administering and managing afford22 able housing activities assisted with grant

23 amounts provided under this title; and

24 ‘‘(B) expenses incurred in preparing a

25 housing plan under section 803.
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1 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc2 tor shall make all reasonable efforts, consistent with the

3 purposes of this title, to maximize participation by the pri4 vate sector, including nonprofit organizations and for5 profit entities, in implementing a housing plan that has

6 been approved by the Secretary under section 803.

7 ‘‘SEC. 803. HOUSING PLAN.

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

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

10 plan under this section for each fiscal year; and

11 ‘‘(2) provide for the review of each plan sub12 mitted under paragraph (1).

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

14 section shall—

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

16 and

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

18 beginning with the fiscal year for which the plan is

19 submitted, the following information:

20 ‘‘(A) MISSION STATEMENT.—A general

21 statement of the mission of the Department of

22 Hawaiian Home Lands to serve the needs of

23 the low-income families to be served by the De24 partment.
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1 ‘‘(B) GOAL AND OBJECTIVES.—A state2 ment of the goals and objectives of the Depart3 ment of Hawaiian Home Lands to enable the

4 Department to serve the needs identified in

5 subparagraph (A) during the period.

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

7 the activities planned during the period includ8 ing an analysis of the manner in which the ac9 tivities will enable the Department to meet its

10 mission, goals, and objectives.

11 ‘‘(c) 1-YEAR PLAN.—A housing plan under this sec12 tion shall—

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

14 and

15 ‘‘(2) contain the following information relating

16 to the fiscal year for which the assistance under this

17 title is to be made available:

18 ‘‘(A) GOALS AND OBJECTIVES.—A state19 ment of the goals and objectives to be accom20 plished during the period covered by the plan.

21 ‘‘(B) STATEMENT OF NEEDS.—A state22 ment of the housing needs of the low-income

23 families served by the Department and the

24 means by which those needs will be addressed
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1 during the period covered by the plan,

2 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

23 the purposes of this title, including an ex24 planation 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

4 described 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 RE10 SOURCES.—A statement of the affordable hous11 ing resources currently available at the time of

12 the submittal of the plan and to be made avail13 able during the period covered by the plan,

14 including—

15 ‘‘(i) a description of the significant

16 characteristics of the housing market in

17 the State of Hawaii, including the avail18 ability of housing from other public

19 sources, private market housing;

20 ‘‘(ii) the manner in which the charac21 teristics referred to in clause (i) influence

22 the decision of the Department of Hawai23 ian Home Lands to use grant amounts to

24 be provided under this title for—

25 ‘‘(I) rental assistance;
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1 ‘‘(II) the production of new units;

2 ‘‘(III) the acquisition of existing

3 units; or

4 ‘‘(IV) the rehabilitation of units;

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

6 coordination, and means of cooperation be7 tween the Department of Hawaiian Home

8 Lands and any other governmental entities

9 in the development, submission, or imple10 mentation of housing plans, including a de11 scription of—

12 ‘‘(I) the involvement of private,

13 public, and nonprofit organizations

14 and institutions;

15 ‘‘(II) the use of loan guarantees

16 under section 184A of the Housing

17 and Community Development Act of

18 1992; and

19 ‘‘(III) other housing assistance

20 provided by the United States, includ21 ing loans, grants, and mortgage insur22 ance;

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

24 which the plan will address the needs iden25 tified pursuant to subparagraph (C);
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1 ‘‘(v) a description of—

2 ‘‘(I) any existing or anticipated

3 homeownership programs and rental

4 programs to be carried out during the

5 period covered by the plan; and

6 ‘‘(II) the requirements and as7 sistance available under the programs

8 referred to in subclause (I);

9 ‘‘(vi) a description of—

10 ‘‘(I) any existing or anticipated

11 housing rehabilitation programs nec12 essary to ensure the long-term viabil13 ity of the housing to be carried out

14 during the period covered by the plan;

15 and

16 ‘‘(II) the requirements and as17 sistance available under the programs

18 referred to in subclause (I);

19 ‘‘(vii) a description of—

20 ‘‘(I) all other existing or antici21 pated housing assistance provided by

22 the Department of Hawaiian Home

23 Lands during the period covered by

24 the plan, including—

25 ‘‘(aa) transitional housing;
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1 ‘‘(bb) homeless housing;

2 ‘‘(cc) college housing; and

3 ‘‘(dd) supportive services

4 housing; and

5 ‘‘(II) the requirements and as6 sistance available under such pro7 grams;

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

9 to be demolished or disposed of;

10 ‘‘(II) a timetable for that demolition

11 or disposition; and

12 ‘‘(III) any other information required

13 by the Secretary with respect to that dem14 olition or disposition;

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

16 which the Department of Hawaiian Home

17 Lands will coordinate with welfare agencies

18 in the State of Hawaii to ensure that resi19 dents of the affordable housing will be pro20 vided with access to resources to assist in

21 obtaining employment and achieving self22 sufficiency;

23 ‘‘(x) a description of the requirements

24 established by the Department of Hawai25 ian Home Lands to—
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1 ‘‘(I) promote the safety of resi2 dents of the affordable housing;

3 ‘‘(II) facilitate the undertaking of

4 crime prevention measures;

5 ‘‘(III) allow resident input and

6 involvement, including the establish7 ment of resident organizations; and

8 ‘‘(IV) allow for the coordination

9 of crime prevention activities between

10 the Department and local law enforce11 ment officials; and

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

13 will carry out the activities under the plan,

14 including the organizational capacity and

15 key personnel of the entities.

16 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

17 Evidence of compliance that shall include, as

18 appropriate—

19 ‘‘(i) a certification that the Depart20 ment of Hawaiian Home Lands will com21 ply with—

22 ‘‘(I) title VI of the Civil Rights

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

24 or with title VIII of the Act popularly

25 known as the ‘Civil Rights Act of
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1 1968’ (42 U.S.C. 3601 et seq.) in car2 rying out this title, to the extent that

3 such title is applicable; and

4 ‘‘(II) other applicable Federal

5 statutes;

6 ‘‘(ii) a certification that the Depart7 ment will require adequate insurance cov8 erage for housing units that are owned and

9 operated or assisted with grant amounts

10 provided under this title, in compliance

11 with such requirements as may be estab12 lished by the Secretary;

13 ‘‘(iii) a certification that policies are

14 in effect and are available for review by the

15 Secretary and the public governing the eli16 gibility, admission, and occupancy of fami17 lies for housing assisted with grant

18 amounts provided under this title;

19 ‘‘(iv) a certification that policies are

20 in effect and are available for review by the

21 Secretary and the public governing rents

22 charged, including the methods by which

23 such rents or homebuyer payments are de24 termined, for housing assisted with grant

25 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

6 under 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

10 1964 (42 U.S.C. 2000d et seq.) or of title VIII of

11 the Act popularly known as the ‘Civil Rights Act of

12 1968’ (42 U.S.C. 3601 et seq.) apply to assistance

13 provided under this title, nothing in the require14 ments concerning discrimination on the basis of race

15 shall be construed to prevent the provision of assist16 ance under this title—

17 ‘‘(A) to the Department of Hawaiian

18 Home Lands on the basis that the Department

19 served 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.

24 Subject to the preceding sentence, no person may be

25 discriminated 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

4 condition of receiving grant amounts under this title, the

5 Department 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

9 housing 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

24 days after receiving a plan under section 803,

25 the Secretary shall notify the Director of the
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1 Department of Hawaiian Home Lands whether

2 the plan complies with the requirements under

3 that 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

7 required under this subsection and subsection

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

9 described in subparagraph (A)—

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

11 have been determined to comply with the

12 requirements under section 803; and

13 ‘‘(ii) the Director shall be considered

14 to have been notified of compliance.

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

16 NONCOMPLIANCE.—If the Secretary determines that a

17 plan submitted under section 803 does not comply with

18 the requirements of that section, the Secretary shall speci19 fy in 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

25 Department of Hawaiian Home Lands submits a
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1 housing plan under section 803, or any amendment

2 or modification to the plan to the Secretary, to the

3 extent that the Secretary considers such action to be

4 necessary to make a determination under this sub5 section, the Secretary shall review the plan (includ6 ing any amendments or modifications thereto) to de7 termine 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 ap17 propriate 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

23 for a fiscal year, the Director of the Department of

24 Hawaiian Home Lands may comply with the provi25 sions of that section for any succeeding fiscal year
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1 (with respect to information included for the 5-year

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

3 under section 803(c)) by submitting only such infor4 mation regarding such changes as may be necessary

5 to update the plan previously submitted.

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

7 submit a complete plan under section 803 not later

8 than 4 years after submitting an initial plan under

9 that section, and not less frequently than every 4

10 years thereafter.

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

12 803 shall take effect on the date provided by the Secretary

13 pursuant to section 807(a) to provide for timely submis14 sion and review of the housing plan as necessary for the

15 provision 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
30

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1 ‘‘(B) the Director agrees to use the pro2 gram income for affordable housing activities in

3 accordance 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

7 solely 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 local24 ity, as determined or adopted (subsequent to a

25 determination under applicable State or local
31

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1 law) by the Secretary, shall be paid to all archi2 tects, technical engineers, draftsmen, techni3 cians employed in the development and all

4 maintenance, and laborers and mechanics em5 ployed in the operation, of the affordable hous6 ing project involved; 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 ‘Davis11 Bacon Act’ (46 Stat. 1494, chapter 411; 40

12 U.S.C. 276a et seq.) shall be paid to all labor13 ers and mechanics employed in the development

14 of the affordable 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 em21 ployed at any time in the construction work and re22 ceived no compensation or is paid expenses, reason23 able benefits, 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

9 of law that further the purposes of such

10 Act (as specified in regulations issued by

11 the Secretary) are most effectively imple12 mented in connection with the expenditure

13 of grant amounts provided under this title;

14 and

15 ‘‘(ii) to the public undiminished pro16 tection of the environment.

17 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO18 TECTION PROCEDURE.—In lieu of applying en19 vironmental protection procedures otherwise ap20 plicable, the Secretary may by regulation pro21 vide for the release of funds for specific projects

22 to the Department of Hawaiian Home Lands if

23 the Director of the Department assumes all of

24 the responsibilities for environmental review,

25 decisionmaking, and action under the National
33

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

2 4321 et seq.), and such other provisions of law

3 as the regulations of the Secretary specify, that

4 would apply to the Secretary were the Secretary

5 to undertake those projects as Federal projects.

6 ‘‘(2) REGULATIONS.—

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

8 issue regulations to carry out this section only

9 after consultation with the Council on Environ10 mental Quality.

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

12 under this paragraph shall—

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

14 environmental reviews performed under

15 this section;

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

17 facilitate training for the performance of

18 such reviews; and

19 ‘‘(iii) provide for the suspension or

20 termination of the assumption of respon21 sibilities under this section.

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

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

24 shall not be construed to limit or reduce any respon25 sibility assumed by the Department of Hawaiian
34

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1 Home Lands for grant amounts with respect to any

2 specific release of funds.

3 ‘‘(b) PROCEDURE.—

4 ‘‘(1) IN GENERAL.—The Secretary shall author5 ize the release of funds subject to the procedures

6 under this section only if, not less than 15 days be7 fore that approval and before any commitment of

8 funds to such projects, the Director of the Depart9 ment of Hawaiian Home Lands submits to the Sec10 retary a request for such release accompanied by a

11 certification that meets the requirements of sub12 section (c).

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

14 the Secretary of a certification described in para15 graph (1) shall be deemed to satisfy the responsibil16 ities of the Secretary under the National Environ17 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

18 and such other provisions of law as the regulations

19 of the Secretary specify to the extent that those re20 sponsibilities relate to the releases of funds for

21 projects that are covered by that certification.

22 ‘‘(c) CERTIFICATION.—A certification under the pro23 cedures under this section shall—

24 ‘‘(1) be in a form acceptable to the Secretary;
35

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1 ‘‘(2) be executed by the Director of the Depart2 ment of Hawaiian Home Lands;

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

4 Home Lands has fully carried out its responsibilities

5 as described under subsection (a); and

6 ‘‘(4) specify that the Director—

7 ‘‘(A) consents to assume the status of a re8 sponsible Federal official under the National

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

10 4321 et seq.) and each provision of law speci11 fied in regulations issued by the Secretary to

12 the extent that those laws apply by reason of

13 subsection (a); and

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

15 of the Department of Hawaiian Home Lands

16 and the Director to accept the jurisdiction of

17 the Federal courts for the purpose of enforce18 ment of the responsibilities of the Director of

19 the Department of Hawaiian Home Lands as

20 such an official.

21 ‘‘SEC. 807. REGULATIONS.

22 ‘‘The Secretary shall issue final regulations necessary

23 to carry out this title not later than October 1, 2000.
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1 ‘‘SEC. 808. EFFECTIVE DATE.

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

3 this title shall take effect on the date of enactment of the

4 Native American Housing Assistance and Self-Determina5 tion Amendments of 1999.

6 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

7 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI8 LIES.—

9 ‘‘(1) PRIMARY OBJECTIVE.—The national objec10 tives of this title are—

11 ‘‘(A) to assist and promote affordable

12 housing activities to develop, maintain, and op13 erate affordable housing in safe and healthy en14 vironments for occupancy by low-income Native

15 Hawaiian families;

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

17 mortgage markets and to promote self-suffi18 ciency of low-income Native Hawaiian families;

19 ‘‘(C) to coordinate activities to provide

20 housing for low-income Native Hawaiian fami21 lies with Federal, State and local activities to

22 further economic and community development;

23 ‘‘(D) to plan for and integrate infrastruc24 ture resources on the Hawaiian Home Lands

25 with housing development; and

26 ‘‘(E) to—
37

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1 ‘‘(i) promote the development of pri2 vate capital markets; and

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

4 clause (i) to operate and grow, thereby

5 benefiting Native Hawaiian communities.

6 ‘‘(2) ELIGIBLE FAMILIES.—

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

8 under subparagraph (B), assistance for eligible

9 housing activities under this title shall be lim10 ited to low-income Native Hawaiian families.

11 ‘‘(B) EXCEPTION TO LOW-INCOME RE12 QUIREMENT.—

13 ‘‘(i) IN GENERAL.—The Director may

14 provide assistance for homeownership ac15 tivities under—

16 ‘‘(I) section 810(b);

17 ‘‘(II) model activities under sec18 tion 810(f); or

19 ‘‘(III) loan guarantee activities

20 under section 184A of the Housing

21 and Community Development Act of

22 1992 to Native Hawaiian families who

23 are not low-income families, to the ex24 tent that the Secretary approves the

25 activities under that section to ad-
38

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1 dress a need for housing for those

2 families that cannot be reasonably

3 met without that assistance.

4 ‘‘(ii) LIMITATIONS.—The Secretary

5 shall establish limitations on the amount of

6 assistance that may be provided under this

7 title for activities for families that are not

8 low-income families.

9 ‘‘(C) OTHER FAMILIES.—Notwithstanding

10 paragraph (1), the Director may provide hous11 ing or housing assistance provided through af12 fordable housing activities assisted with grant

13 amounts under this title to a family that is not

14 composed of Native Hawaiians if—

15 ‘‘(i) the Department determines that

16 the presence of the family in the housing

17 involved is essential to the well-being of

18 Native Hawaiian families; and

19 ‘‘(ii) the need for housing for the fam20 ily cannot be reasonably met without the

21 assistance.

22 ‘‘(D) PREFERENCE.—

23 ‘‘(i) IN GENERAL.—A housing plan

24 submitted under section 803 may authorize

25 a preference, for housing or housing assist-
39

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1 ance provided through affordable housing

2 activities assisted with grant amounts pro3 vided under this title to be provided, to the

4 extent practicable, to families that are eli5 gible to reside on the Hawaiian Home

6 Lands.

7 ‘‘(ii) APPLICATION.—In any case in

8 which a housing plan provides for pref9 erence described in clause (i), the Director

10 shall ensure that housing activities that are

11 assisted with grant amounts under this

12 title are subject to that preference.

13 ‘‘(E) USE OF NONPROFIT ORGANIZA14 TIONS.—As a condition of receiving grant

15 amounts under this title, the Department of

16 Hawaiian Home Lands, shall to the extent

17 practicable, provide for private nonprofit orga18 nizations experienced in the planning and devel19 opment of affordable housing for Native Hawai20 ians to carry out affordable housing activities

21 with those grant amounts.

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

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

24 under this section are activities conducted in accordance

25 with the requirements of section 811 to—
40

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

2 for rental or homeownership; or

3 ‘‘(2) provide housing services with respect to af4 fordable housing, through the activities described in

5 subsection (b).

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

7 subsection are the following:

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

9 construction, reconstruction, or moderate or sub10 stantial rehabilitation of affordable housing, which

11 may include—

12 ‘‘(A) real property acquisition;

13 ‘‘(B) site improvement;

14 ‘‘(C) the development of utilities and util15 ity services;

16 ‘‘(D) conversion;

17 ‘‘(E) demolition;

18 ‘‘(F) financing;

19 ‘‘(G) administration and planning; and

20 ‘‘(H) other related activities.

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

22 housing-related services for affordable housing,

23 including—

24 ‘‘(A) housing counseling in connection with

25 rental or homeownership assistance;
41

S 225 RFH

1 ‘‘(B) the establishment and support of

2 resident organizations and resident manage3 ment corporations;

4 ‘‘(C) energy auditing;

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

6 self-sufficiency and other services; and

7 ‘‘(E) other services related to assisting

8 owners, tenants, contractors, and other entities

9 participating or seeking to participate in other

10 housing activities assisted pursuant to this sec11 tion.

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

13 provision of management services for affordable

14 housing, including—

15 ‘‘(A) the preparation of work specifica16 tions;

17 ‘‘(B) loan processing;

18 ‘‘(C) inspections;

19 ‘‘(D) tenant selection;

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

21 assistance; and

22 ‘‘(F) management of affordable housing

23 projects.

24 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI25 TIES.—The provision of safety, security, and law en-
42

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1 forcement measures and activities appropriate to

2 protect residents of affordable housing from crime.

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

4 under model programs that are—

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

6 this title; and

7 ‘‘(B) specifically approved by the Secretary

8 as appropriate for the purpose referred to in

9 subparagraph (A).

10 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

11 ‘‘(a) RENTS.—

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

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

14 this title, the Director shall develop written policies

15 governing rents and homebuyer payments charged

16 for dwelling units assisted under this title, including

17 methods by which such rents and homebuyer pay18 ments are determined.

19 ‘‘(2) MAXIMUM RENT.—In the case of any low20 income family residing in a dwelling unit assisted

21 with grant amounts under this title, the monthly

22 rent or homebuyer payment (as applicable) for that

23 dwelling unit may not exceed 30 percent of the

24 monthly adjusted income of that family.

25 ‘‘(b) MAINTENANCE AND EFFICIENT OPERATION.—
43

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

2 amounts of any grants received under this title, re3 serve and use for operating under section 810 such

4 amounts as may be necessary to provide for the con5 tinued maintenance and efficient operation of such

6 housing.

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

8 subsection may not be construed to prevent the Di9 rector, or any entity funded by the Department,

10 from demolishing or disposing of housing, pursuant

11 to regulations established by the Secretary.

12 ‘‘(c) INSURANCE COVERAGE.—As a condition to re13 ceiving grant amounts under this title, the Director shall

14 require adequate insurance coverage for housing units that

15 are owned or operated or assisted with grant amounts pro16 vided under this title.

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

18 to receiving grant amounts under this title, the Director

19 shall develop written policies governing the eligibility, ad20 mission, and occupancy of families for housing assisted

21 with grant amounts provided under this title.

22 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a con23 dition to receiving grant amounts under this title, the Di24 rector shall develop policies governing the management
44

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1 and maintenance of housing assisted with grant amounts

2 under this title.

3 ‘‘SEC. 812. TYPES OF INVESTMENTS.

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

5 applicable housing plan approved under section 803, the

6 Director shall have—

7 ‘‘(1) the discretion to use grant amounts for af8 fordable housing activities through the use of—

9 ‘‘(A) equity investments;

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

11 ‘‘(C) noninterest-bearing loans or ad12 vances;

13 ‘‘(D) interest subsidies;

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

15 or

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

17 Secretary determines to be consistent with the

18 purposes of this title; and

19 ‘‘(2) the right to establish the terms of assist20 ance provided with funds referred to in paragraph

21 (1).

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

23 amounts for the purposes of carrying out affordable hous24 ing activities in investment securities and other obliga25 tions, as approved by the Secretary.
45

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1 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR2 GETING.

3 ‘‘(a) IN GENERAL.—Housing shall qualify for afford4 able housing for purposes of this title only if—

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

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

7 available for occupancy only by a family that is

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

9 occupancy of that family of that unit; and

10 ‘‘(B) in the case of housing for home11 ownership, is made available for purchase only

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

13 time of purchase; and

14 ‘‘(2) each dwelling unit in the housing will re15 main affordable, according to binding commitments

16 satisfactory to the Secretary, for—

17 ‘‘(A) the remaining useful life of the prop18 erty (as determined by the Secretary) without

19 regard to the term of the mortgage or to trans20 fer of ownership; or

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

22 determines is the longest feasible period of time

23 consistent with sound economics and the pur24 poses of this title, except upon a foreclosure by

25 a lender (or upon other transfer in lieu of fore26 closure) if that action—
46

S 225 RFH

1 ‘‘(i) recognizes any contractual or

2 legal rights of any public agency, nonprofit

3 sponsor, or other person or entity to take

4 an action that would—

5 ‘‘(I) avoid termination of low-in6 come affordability, in the case of fore7 closure; or

8 ‘‘(II) transfer ownership in lieu

9 of foreclosure; and

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

11 low-income affordability restrictions, as de12 termined by the Secretary.

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

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

15 considered affordable housing for purposes of this title.

16 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELEC17 TION.

18 ‘‘(a) LEASES.—Except to the extent otherwise pro19 vided by or inconsistent with the laws of the State of Ha20 waii, in renting dwelling units in affordable housing as21 sisted with grant amounts provided under this title, the

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

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

24 conditions;
47

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

2 maintain the housing in compliance with applicable

3 housing codes and quality standards;

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

5 give adequate written notice of termination of the

6 lease, which shall be the period of time required

7 under applicable State or local law;

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

9 eviction or termination, notwithstanding any State

10 or local law, a resident shall be informed of the op11 portunity, before any hearing or trial, to examine

12 any relevant documents, record, or regulations di13 rectly related to the eviction or termination;

14 ‘‘(5) require that the Director, owner, or man15 ager may not terminate the tenancy, during the

16 term of the lease, except for serious or repeated vio17 lation of the terms and conditions of the lease, viola18 tion of applicable Federal, State, or local law, or for

19 other good cause; and

20 ‘‘(6) provide that the Director, owner, or man21 ager may terminate the tenancy of a resident for

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

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

24 other person under the control of the resident,

25 that—
48

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

2 right to peaceful enjoyment of the premises by,

3 other residents or employees of the Department,

4 owner, or manager;

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

6 right to peaceful enjoyment of their premises

7 by, persons residing in the immediate vicinity of

8 the premises; or

9 ‘‘(C) is criminal activity (including drug-re10 lated criminal activity) on or off the premises.

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

12 condition to receiving grant amounts under this title, the

13 Director shall adopt and use written tenant and home14 buyer selection policies and criteria that—

15 ‘‘(1) are consistent with the purpose of pro16 viding housing for low-income families;

17 ‘‘(2) are reasonably related to program eligi18 bility and the ability of the applicant to perform the

19 obligations of the lease; and

20 ‘‘(3) provide for—

21 ‘‘(A) the selection of tenants and home22 buyers from a written waiting list in accordance

23 with the policies and goals set forth in an appli24 cable housing plan approved under section 803;

25 and
49

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

2 any rejected applicant of the grounds for that

3 rejection.

4 ‘‘SEC. 815. REPAYMENT.

5 ‘‘If the Department of Hawaiian Home Lands uses

6 grant amounts to provide affordable housing under activi7 ties under this title and, at any time during the useful

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

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

10 shall—

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

12 the Department by an amount equal to the grant

13 amounts used for that housing (under the authority

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

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

16 amount equal to those grant amounts.

17 ‘‘SEC. 816. ANNUAL ALLOCATION.

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

19 amounts made available for assistance under this title for

20 the fiscal year, in accordance with the formula established

21 pursuant to section 817 to the Department of Hawaiian

22 Home Lands if the Department complies with the require23 ments under this title for a grant under this title.
50

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1 ‘‘SEC. 817. ALLOCATION FORMULA.

2 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by reg3 ulation issued not later than the expiration of the 6-month

4 period beginning on the date of enactment of the Native

5 American Housing Assistance and Self-Determination

6 Amendments of 1999, in the manner provided under sec7 tion 807, establish a formula to provide for the allocation

8 of amounts available for a fiscal year for block grants

9 under this title in accordance with the requirements of this

10 section.

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

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

13 that reflect the needs for assistance for affordable housing

14 activities, including—

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

16 owned or operated at the time pursuant to a con17 tract between the Director and the Secretary;

18 ‘‘(2) the extent of poverty and economic distress

19 and the number of Native Hawaiian families eligible

20 to reside on the Hawaiian Home Lands; and

21 ‘‘(3) any other objectively measurable condi22 tions that the Secretary and the Director may speci23 fy.

24 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es25 tablishing the formula under subsection (a), the Secretary

26 shall consider the relative administrative capacities of the
51

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1 Department of Hawaiian Home Lands and other chal2 lenges faced by the Department, including—

3 ‘‘(1) geographic distribution within Hawaiian

4 Home Lands; and

5 ‘‘(2) technical capacity.

6 ‘‘(d) EFFECTIVE DATE.—This section shall take ef7 fect on the date of enactment of the Native American

8 Housing Assistance and Self-Determination Amendments

9 of 1999.

10 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

11 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

12 AMOUNTS.—

13 ‘‘(1) IN GENERAL.—Except as provided in sub14 section (b), if the Secretary finds after reasonable

15 notice and opportunity for a hearing that the De16 partment of Hawaiian Home Lands has failed to

17 comply substantially with any provision of this title,

18 the Secretary shall—

19 ‘‘(A) terminate payments under this title

20 to the Department;

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

22 the Department by an amount equal to the

23 amount of such payments that were not ex24 pended in accordance with this title; or
52

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1 ‘‘(C) limit the availability of payments

2 under this title to programs, projects, or activi3 ties not affected by such failure to comply.

4 ‘‘(2) ACTIONS.—If the Secretary takes an ac5 tion under subparagraph (A), (B), or (C) of para6 graph (1), the Secretary shall continue that action

7 until the Secretary determines that the failure by

8 the Department to comply with the provision has

9 been remedied by the Department and the Depart10 ment is in compliance with that provision.

11 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL

12 INCAPACITY.—The Secretary may provide technical assist13 ance for the Department, either directly or indirectly, that

14 is designed to increase the capability and capacity of the

15 Director of the Department to administer assistance pro16 vided under this title in compliance with the requirements

17 under this title if the Secretary makes a finding under

18 subsection (a), but determines that the failure of the De19 partment to comply substantially with the provisions of

20 this title—

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

22 constituting willful noncompliance; and

23 ‘‘(2) is a result of the limited capability or ca24 pacity of the Department of Hawaiian Home Lands.

25 ‘‘(c) REFERRAL FOR CIVIL ACTION.—
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1 ‘‘(1) AUTHORITY.—In lieu of, or in addition to,

2 any action that the Secretary may take under sub3 section (a), if the Secretary has reason to believe

4 that the Department of Hawaiian Home Lands has

5 failed to comply substantially with any provision of

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

7 Attorney General of the United States with a rec8 ommendation that an appropriate civil action be in9 stituted.

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

11 under paragraph (1), the Attorney General may

12 bring a civil action in any United States district

13 court of appropriate jurisdiction for such relief as

14 may be appropriate, including an action—

15 ‘‘(A) to recover the amount of the assist16 ance furnished under this title that was not ex17 pended in accordance with this title; or

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

19 ‘‘(d) REVIEW.—

20 ‘‘(1) IN GENERAL.—If the Director receives no21 tice under subsection (a) of the termination, reduc22 tion, or limitation of payments under this Act, the

23 Director—

24 ‘‘(A) may, not later than 60 days after re25 ceiving such notice, file with the United States
54

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1 Court of Appeals for the Ninth Circuit, or in

2 the United States Court of Appeals for the Dis3 trict of Columbia, a petition for review of the

4 action of the Secretary; and

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

6 subparagraph (A), shall forthwith transmit cop7 ies of the petition to the Secretary and the At8 torney General of the United States, who shall

9 represent the Secretary in the litigation.

10 ‘‘(2) PROCEDURE.—

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

12 file in the court a record of the proceeding on

13 which the Secretary based the action, as pro14 vided in section 2112 of title 28, United States

15 Code.

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

17 action of the Secretary shall be considered by

18 the court unless the Department has registered

19 the objection before the Secretary.

20 ‘‘(3) DISPOSITION.—

21 ‘‘(A) COURT PROCEEDINGS.—

22 ‘‘(i) JURISDICTION OF COURT.—The

23 court shall have jurisdiction to affirm or

24 modify the action of the Secretary or to set

25 the action aside in whole or in part.
55

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1 ‘‘(ii) FINDINGS OF FACT.—If sup2 ported by substantial evidence on the

3 record considered as a whole, the findings

4 of fact by the Secretary shall be conclusive.

5 ‘‘(iii) ADDITION.—The court may

6 order evidence, in addition to the evidence

7 submitted for review under this subsection,

8 to be taken by the Secretary, and to be

9 made part of the record.

10 ‘‘(B) SECRETARY.—

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

12 reason of the additional evidence referred

13 to in subparagraph (A) and filed with the

14 court—

15 ‘‘(I) may—

16 ‘‘(aa) modify the findings of

17 fact of the Secretary; or

18 ‘‘(bb) make new findings;

19 and

20 ‘‘(II) shall file—

21 ‘‘(aa) such modified or new

22 findings; and

23 ‘‘(bb) the recommendation

24 of the Secretary, if any, for the

25 modification or setting aside of
56

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1 the original action of the Sec2 retary.

3 ‘‘(ii) FINDINGS.—The findings re4 ferred to in clause (i)(II)(bb) shall, with

5 respect to a question of fact, be considered

6 to be conclusive if those findings are—

7 ‘‘(I) supported by substantial evi8 dence on the record; and

9 ‘‘(II) considered as a whole.

10 ‘‘(4) FINALITY.—

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

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

13 under this subsection with the court—

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

15 be exclusive; and

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

17 be final.

18 ‘‘(B) REVIEW BY SUPREME COURT.—A

19 judgment under subparagraph (A) shall be sub20 ject to review by the Supreme Court of the

21 United States upon writ of certiorari or certifi22 cation, as provided in section 1254 of title 28,

23 United States Code.

24 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

25 ‘‘(a) ENFORCEABLE AGREEMENTS.—
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1 ‘‘(1) IN GENERAL.—The Director, through

2 binding contractual agreements with owners or other

3 authorized entities, shall ensure long-term compli4 ance with the provisions of this title.

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

6 paragraph (1) shall provide for—

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

8 and State law, the enforcement of the provi9 sions of this title by the Department and the

10 Secretary; and

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

12 referred to in paragraph (1).

13 ‘‘(b) PERIODIC MONITORING.—

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

15 annually, the Director shall review the activities con16 ducted and housing assisted under this title to as17 sess compliance with the requirements of this title.

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

19 (1) shall include onsite inspection of housing to de20 termine compliance with applicable requirements.

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

22 under paragraph (1) shall be—

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

24 the Director submitted to the Secretary under

25 section 820; and
58

S 225 RFH

1 ‘‘(B) made available to the public.

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

3 shall establish such performance measures as may be nec4 essary to assess compliance with the requirements of this

5 title.

6 ‘‘SEC. 820. PERFORMANCE REPORTS.

7 ‘‘(a) REQUIREMENT.—For each fiscal year, the Di8 rector shall—

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

10 made during that fiscal year in carrying out the

11 housing plan submitted by the Department under

12 section 803; and

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

14 form acceptable to the Secretary) describing the con15 clusions of the review.

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

17 section for a fiscal year shall—

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

19 to the Department of Hawaiian Home Lands for

20 that fiscal year;

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

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

23 housing plan;

24 ‘‘(3) indicate the programmatic accomplish25 ments of the Department; and
59

S 225 RFH

1 ‘‘(4) describe the manner in which the Depart2 ment would change its housing plan submitted under

3 section 803 as a result of its experiences.

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

5 ‘‘(1) establish a date for submission of each re6 port under this section;

7 ‘‘(2) review each such report; and

8 ‘‘(3) with respect to each such report, make rec9 ommendations as the Secretary considers appro10 priate to carry out the purposes of this title.

11 ‘‘(d) PUBLIC AVAILABILITY.—

12 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre13 paring a report under this section, the Director shall

14 make the report publicly available to the bene15 ficiaries of the Hawaiian Homes Commission Act,

16 1920 (42 Stat. 108 et seq.) and give a sufficient

17 amount of time to permit those beneficiaries to com18 ment on that report before it is submitted to the

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

20 Director may determine).

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

22 shall include a summary of any comments received

23 by the Director from beneficiaries under paragraph

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

25 plan.
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1 ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.

2 ‘‘(a) ANNUAL REVIEW.—

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

4 less frequently than on an annual basis, make such

5 reviews and audits as may be necessary or appro6 priate to determine whether—

7 ‘‘(A) the Director has—

8 ‘‘(i) carried out eligible activities

9 under this title in a timely manner;

10 ‘‘(ii) carried out and made certifi11 cations in accordance with the require12 ments and the primary objectives of this

13 title and with other applicable laws; and

14 ‘‘(iii) a continuing capacity to carry

15 out the eligible activities in a timely man16 ner;

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

18 housing plan submitted by the Director under

19 section 803; and

20 ‘‘(C) the performance reports of the De21 partment under section 821 are accurate.

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

23 under this section shall, to the extent practicable, in24 clude onsite visits by employees of the Department

25 of Housing and Urban Development.
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S 225 RFH

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

2 give the Department of Hawaiian Home Lands not less

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

4 this subsection. After taking into consideration the com5 ments of the Department, the Secretary may revise the

6 report and shall make the comments of the Department

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

8 public not later than 30 days after receipt of the com9 ments of the Department.

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

11 make appropriate adjustments in the amount of annual

12 grants under this title in accordance with the findings of

13 the Secretary pursuant to reviews and audits under this

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

15 grant amounts, or take other action as appropriate in ac16 cordance with the reviews and audits of the Secretary

17 under this section, except that grant amounts already ex18 pended on affordable housing activities may not be recap19 tured or deducted from future assistance provided to the

20 Department of Hawaiian Home Lands.

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

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

23 Department of Hawaiian Home Lands involving grant

24 amounts under this title relate to amounts provided under

25 this title, those transactions may be audited by the Comp-
62

S 225 RFH

1 troller General of the United States under such regula2 tions as may be prescribed by the Comptroller General.

3 The Comptroller General of the United States shall have

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

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

6 by the Department of Hawaiian Home Lands pertaining

7 to such financial transactions and necessary to facilitate

8 the audit.

9 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

11 conclusion of each fiscal year in which assistance under

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

13 Congress a report that contains—

14 ‘‘(1) a description of the progress made in ac15 complishing the objectives of this title;

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

17 under this title during the preceding fiscal year; and

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

19 loan guarantees under section 184A of the Housing

20 and Community Development Act of 1992.

21 ‘‘(b) RELATED REPORTS.—The Secretary may re22 quire the Director to submit to the Secretary such reports

23 and other information as may be necessary in order for

24 the Secretary to prepare the report required under sub25 section (a).
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1 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to the De3 partment of Housing and Urban Development for grants

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

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

6 SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUS7 ING.

8 Subtitle E of title I of the Housing and Community

9 Development Act of 1992 is amended by inserting after

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

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

12 HOUSING.

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

14 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME

15 LANDS.—The term ‘Department of Hawaiian Home

16 Lands’ means the agency or department of the gov17 ernment of the State of Hawaii that is responsible

18 for the administration of the Hawaiian Homes Com19 mission Act, 1920 (42 Stat. 108 et seq.).

20 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en21 tity’ means a Native Hawaiian family, the Depart22 ment of Hawaiian Home Lands, the Office of Ha23 waiian Affairs, and private nonprofit or private for24 profit organizations experienced in the planning and

25 development of affordable housing for Native Hawai26 ians.
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S 225 RFH

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

2 more persons maintaining a household, as the Sec3 retary shall by regulation provide.

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

5 Fund’ means the Native Hawaiian Housing Loan

6 Guarantee Fund established under subsection (i).

7 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha8 waiian Home Lands’ means lands that—

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

10 Lands under section 204 of the Hawaiian

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

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

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

14 Hawaiian’ means any individual who is—

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

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

17 who, prior to 1778, occupied and exercised sov18 ereignty in the area that currently constitutes

19 the State of Hawaii, as evidenced by—

20 ‘‘(i) genealogical records;

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

22 kama’aina (long-term community resi23 dents); or

24 ‘‘(iii) birth records of the State of Ha25 waii.
65

S 225 RFH

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

2 term ‘Office of Hawaiian Affairs’ means the entity

3 of that name established under the constitution of

4 the State of Hawaii.

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

6 private financing to Native Hawaiian families who other7 wise could not acquire housing financing because of the

8 unique legal status of the Hawaiian Home Lands or as

9 a result of a lack of access to private financial markets,

10 the Secretary may guarantee an amount not to exceed 100

11 percent of the unpaid principal and interest that is due

12 on an eligible loan under subsection (b).

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

14 is an eligible loan if that loan meets the following require15 ments:

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

17 only to a borrower who is—

18 ‘‘(A) a Native Hawaiian family;

19 ‘‘(B) the Department of Hawaiian Home

20 Lands;

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

22 ‘‘(D) a private nonprofit organization expe23 rienced in the planning and development of af24 fordable housing for Native Hawaiians.

25 ‘‘(2) ELIGIBLE HOUSING.—
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S 225 RFH

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

2 to construct, acquire, or rehabilitate not more

3 than 4-family dwellings that are standard hous4 ing and are located on Hawaiian Home Lands

5 for which a housing plan described in subpara6 graph (B) applies.

7 ‘‘(B) HOUSING PLAN.—A housing plan de8 scribed in this subparagraph is a housing plan

9 that—

10 ‘‘(i) has been submitted and approved

11 by the Secretary under section 803 of the

12 Native American Housing Assistance and

13 Self-Determination Amendments of 1999;

14 and

15 ‘‘(ii) provides for the use of loan guar16 antees under this section to provide afford17 able homeownership housing on Hawaiian

18 Home Lands.

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

20 any collateral authorized under applicable Federal or

21 State law.

22 ‘‘(4) LENDERS.—

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

24 made only by a lender approved by, and meet25 ing qualifications established by, the Secretary,
67

S 225 RFH

1 including any lender described in subparagraph

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

3 guaranteed by an agency of the Federal Gov4 ernment or made by the Department of Hawai5 ian Home Lands from amounts borrowed from

6 the United States shall not be eligible for a

7 guarantee under this section.

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

9 shall be considered to be lenders that have been

10 approved by the Secretary:

11 ‘‘(i) Any mortgagee approved by the

12 Secretary for participation in the single

13 family mortgage insurance program under

14 title II of the National Housing Act (12

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

16 ‘‘(ii) Any lender that makes housing

17 loans under chapter 37 of title 38, United

18 States Code, that are automatically guar19 anteed under section 3702(d) of title 38,

20 United States Code.

21 ‘‘(iii) Any lender approved by the Sec22 retary of Agriculture to make guaranteed

23 loans for single family housing under the

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

25 seq.).
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S 225 RFH

1 ‘‘(iv) Any other lender that is super2 vised, approved, regulated, or insured by

3 any agency of the Federal Government.

4 ‘‘(5) TERMS.—The loan shall—

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

6 years;

7 ‘‘(B) bear interest (exclusive of the guar8 antee fee under subsection (d) and service

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

10 borrower and the lender and determined by the

11 Secretary to be reasonable, but not to exceed

12 the rate generally charged in the area (as deter13 mined by the Secretary) for home mortgage

14 loans not guaranteed or insured by any agency

15 or instrumentality of the Federal Government;

16 ‘‘(C) involve a principal obligation not

17 exceeding—

18 ‘‘(i) 97.75 percent of the appraised

19 value of the property as of the date the

20 loan is accepted for guarantee (or 98.75

21 percent if the value of the property is

22 $50,000 or less); or

23 ‘‘(ii) the amount approved by the Sec24 retary under this section; and
69

S 225 RFH

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

2 property—

3 ‘‘(i) in cash or its equivalent; or

4 ‘‘(ii) through the value of any im5 provements to the property made through

6 the skilled or unskilled labor of the bor7 rower, as the Secretary shall provide.

8 ‘‘(d) CERTIFICATE OF GUARANTEE.—

9 ‘‘(1) APPROVAL PROCESS.—

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

11 approves any loan for guarantee under this sec12 tion, the lender shall submit the application for

13 the loan to the Secretary for examination.

14 ‘‘(B) APPROVAL.—If the Secretary ap15 proves the application submitted under sub16 paragraph (A), the Secretary shall issue a cer17 tificate under this subsection as evidence of the

18 loan guarantee approved.

19 ‘‘(2) STANDARD FOR APPROVAL.—The Sec20 retary may approve a loan for guarantee under this

21 section and issue a certificate under this subsection

22 only if the Secretary determines that there is a rea23 sonable prospect of repayment of the loan.

24 ‘‘(3) EFFECT.—
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1 ‘‘(A) IN GENERAL.—A certificate of guar2 antee issued under this subsection by the Sec3 retary shall be conclusive evidence of the eligi4 bility of the loan for guarantee under this sec5 tion and the amount of that guarantee.

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

7 in subparagraph (A) shall be incontestable in

8 the hands of the bearer.

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

10 faith and credit of the United States is pledged

11 to the payment of all amounts agreed to be paid

12 by the Secretary as security for the obligations

13 made by the Secretary under this section.

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

15 subsection may not be construed—

16 ‘‘(A) to preclude the Secretary from estab17 lishing defenses against the original lender

18 based on fraud or material misrepresentation;

19 or

20 ‘‘(B) to bar the Secretary from estab21 lishing by regulations that are on the date of

22 issuance or disbursement, whichever is earlier,

23 partial defenses to the amount payable on the

24 guarantee.

25 ‘‘(e) GUARANTEE FEE.—
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S 225 RFH

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

2 collect a guarantee fee for the guarantee of a loan

3 under this section, which may not exceed the amount

4 equal to 1 percent of the principal obligation of the

5 loan.

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

7 shall—

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

9 issuance of the guarantee; and

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

11 the Secretary, to cover expenses and probable

12 losses.

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

14 any fees collected under this subsection in the Na15 tive Hawaiian Housing Loan Guarantee Fund estab16 lished under subsection (j).

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

18 under a guarantee provided under this section shall de19 crease or increase on a pro rata basis according to any

20 decrease or increase in the amount of the unpaid obliga21 tion under the provisions of the loan agreement involved.

22 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith23 standing any other provision of law, any loan guaranteed

24 under this section, including the security given for the

25 loan, may be sold or assigned by the lender to any finan-
72

S 225 RFH

1 cial institution subject to examination and supervision by

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

3 the District of Columbia.

4 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

5 MONEY PENALTIES.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) GROUNDS FOR ACTION.—The Sec8 retary may take action under subparagraph (B)

9 if the Secretary determines that any lender or

10 holder of a guarantee certificate under sub11 section (c)—

12 ‘‘(i) has failed—

13 ‘‘(I) to maintain adequate ac14 counting records;

15 ‘‘(II) to service adequately loans

16 guaranteed under this section; or

17 ‘‘(III) to exercise proper credit or

18 underwriting judgment; or

19 ‘‘(ii) has engaged in practices other20 wise detrimental to the interest of a bor21 rower or the United States.

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

23 the Secretary that a holder of a guarantee cer24 tificate under subsection (c) has failed to carry

25 out an activity described in subparagraph (A)(i)
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S 225 RFH

1 or has engaged in practices described in sub2 paragraph (A)(ii), the Secretary may—

3 ‘‘(i) refuse, either temporarily or per4 manently, to guarantee any further loans

5 made by such lender or holder;

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

7 acquiring additional loans guaranteed

8 under this section; and

9 ‘‘(iii) require that such lender or hold10 er assume not less than 10 percent of any

11 loss on further loans made or held by the

12 lender or holder that are guaranteed under

13 this section.

14 ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN15 TIONAL VIOLATIONS.—

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

17 impose a civil monetary penalty on a lender or

18 holder of a guarantee certificate under sub19 section (d) if the Secretary determines that the

20 holder or lender has intentionally failed—

21 ‘‘(i) to maintain adequate accounting

22 records;

23 ‘‘(ii) to adequately service loans guar24 anteed under this section; or
74

S 225 RFH

1 ‘‘(iii) to exercise proper credit or un2 derwriting judgment.

3 ‘‘(B) PENALTIES.—A civil monetary pen4 alty imposed under this paragraph shall be im5 posed in the manner and be in an amount pro6 vided under section 536 of the National Hous7 ing Act (12 U.S.C.A. 1735f–1) with respect to

8 mortgagees and lenders under that Act.

9 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

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

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

12 not refuse to pay a lender or holder of a valid guar13 antee on that loan, without regard to whether the

14 lender or holder is barred under this subsection.

15 ‘‘(i) PAYMENT UNDER GUARANTEE.—

16 ‘‘(1) LENDER OPTIONS.—

17 ‘‘(A) IN GENERAL.—

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

19 a loan guaranteed under this section de20 faults on the loan, the holder of the guar21 antee certificate shall provide written no22 tice of the default to the Secretary.

23 ‘‘(ii) PAYMENT.—Upon providing the

24 notice required under clause (i), the holder

25 of the guarantee certificate shall be enti-
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S 225 RFH

1 tled to payment under the guarantee (sub2 ject to the provisions of this section) and

3 may proceed to obtain payment in 1 of the

4 following manners:

5 ‘‘(I) FORECLOSURE.—

6 ‘‘(aa) IN GENERAL.—The

7 holder of the certificate may ini8 tiate foreclosure proceedings

9 (after providing written notice of

10 that action to the Secretary).

11 ‘‘(bb) PAYMENT.—Upon a

12 final order by the court author13 izing foreclosure and submission

14 to the Secretary of a claim for

15 payment under the guarantee,

16 the Secretary shall pay to the

17 holder of the certificate the pro

18 rata portion of the amount guar19 anteed (as determined pursuant

20 to subsection (f)) plus reasonable

21 fees and expenses as approved by

22 the Secretary.

23 ‘‘(cc) SUBROGATION.—The

24 rights of the Secretary shall be

25 subrogated to the rights of the
76

S 225 RFH

1 holder of the guarantee. The

2 holder shall assign the obligation

3 and security to the Secretary.

4 ‘‘(II) NO FORECLOSURE.—

5 ‘‘(aa) IN GENERAL.—With6 out seeking foreclosure (or in any

7 case in which a foreclosure pro8 ceeding initiated under clause (i)

9 continues for a period in excess

10 of 1 year), the holder of the

11 guarantee may submit to the

12 Secretary a request to assign the

13 obligation and security interest to

14 the Secretary in return for pay15 ment of the claim under the

16 guarantee. The Secretary may

17 accept assignment of the loan if

18 the Secretary determines that the

19 assignment is in the best interest

20 of the United States.

21 ‘‘(bb) PAYMENT.—Upon as22 signment, the Secretary shall pay

23 to the holder of the guarantee

24 the pro rata portion of the
77

S 225 RFH

1 amount guaranteed (as deter2 mined under subsection (f)).

3 ‘‘(cc) SUBROGATION.—The

4 rights of the Secretary shall be

5 subrogated to the rights of the

6 holder of the guarantee. The

7 holder shall assign the obligation

8 and security to the Secretary.

9 ‘‘(B) REQUIREMENTS.—Before any pay10 ment under a guarantee is made under sub11 paragraph (A), the holder of the guarantee

12 shall exhaust all reasonable possibilities of col13 lection. Upon payment, in whole or in part, to

14 the holder, the note or judgment evidencing the

15 debt shall be assigned to the United States and

16 the holder shall have no further claim against

17 the borrower or the United States. The Sec18 retary shall then take such action to collect as

19 the Secretary determines to be appropriate.

20 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

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

22 on a loan guaranteed under this section that in23 volves a security interest in restricted Hawaiian

24 Home Land property, the mortgagee or the

25 Secretary shall only pursue liquidation after of-
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1 fering to transfer the account to another eligi2 ble Hawaiian family or the Department of Ha3 waiian Home Lands.

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

5 taken under subparagraph (A), the mortgagee

6 or the Secretary subsequently proceeds to liq7 uidate the account, the mortgagee or the Sec8 retary shall not sell, transfer, or otherwise dis9 pose of or alienate the property described in

10 subparagraph (A) except to another eligible Ha11 waiian family or to the Department of Hawai12 ian Home Lands.

13 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE

14 FUND.—

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

16 the Treasury of the United States the Hawaiian

17 Housing Loan Guarantee Fund for the purpose of

18 providing loan guarantees under this section.

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

20 credited with—

21 ‘‘(A) any amount, claims, notes, mort22 gages, contracts, and property acquired by the

23 Secretary under this section, and any collections

24 and proceeds therefrom;
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1 ‘‘(B) any amounts appropriated pursuant

2 to paragraph (7);

3 ‘‘(C) any guarantee fees collected under

4 subsection (d); and

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

6 invested under paragraph (4).

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

8 shall be available, to the extent provided in appro9 priations Acts, for—

10 ‘‘(A) fulfilling any obligations of the Sec11 retary with respect to loans guaranteed under

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

13 defined in section 502 of the Federal Credit Re14 form Act of 1990 (2 U.S.C. 661a)) of such

15 loans;

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

17 expenses necessary to make fiscal adjustment in

18 connection with the application and transmittal

19 of collections, and other expenses and advances

20 to protect the Secretary for loans which are

21 guaranteed under this section or held by the

22 Secretary;

23 ‘‘(C) acquiring such security property at

24 foreclosure sales or otherwise;
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1 ‘‘(D) paying administrative expenses in

2 connection with this section; and

3 ‘‘(E) reasonable and necessary costs of re4 habilitation and repair to properties that the

5 Secretary holds or owns pursuant to this sec6 tion.

7 ‘‘(4) INVESTMENT.—Any amounts in the Guar8 antee Fund determined by the Secretary to be in ex9 cess of amounts currently required at the time of the

10 determination to carry out this section may be in11 vested in obligations of the United States.

12 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR13 ANTEE LOANS AND MORTGAGES.—

14 ‘‘(A) REQUIREMENT OF APPROPRIA15 TIONS.—The authority of the Secretary to enter

16 into commitments to guarantee loans under this

17 section shall be effective for any fiscal year to

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

19 been, provided in appropriations Acts, without

20 regard to the fiscal year for which such

21 amounts were appropriated.

22 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN23 TEES.—The authority of the Secretary to enter

24 into commitments to guarantee loans under this

25 section shall be effective for any fiscal year only
81

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1 to the extent that amounts in the Guarantee

2 Fund are or have been made available in appro3 priations Acts to cover the costs (as that term

4 is defined in section 502 of the Federal Credit

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

6 loan guarantees for such fiscal year. Any

7 amounts appropriated pursuant to this subpara8 graph shall remain available until expended.

9 ‘‘(C) LIMITATION ON OUTSTANDING AG10 GREGATE PRINCIPAL AMOUNT.—Subject to the

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

12 Secretary may enter into commitments to guar13 antee loans under this section for each of fiscal

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

15 an aggregate outstanding principal amount not

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

17 year.

18 ‘‘(6) LIABILITIES.—All liabilities and obliga19 tions of the assets credited to the Guarantee Fund

20 under paragraph (2)(A) shall be liabilities and obli21 gations of the Guarantee Fund.

22 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

23 There are authorized to be appropriated to the

24 Guarantee Fund to carry out this section such sums
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1 as may be necessary for each of fiscal years 2000,

2 2001, 2002, 2003, and 2004.

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

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

5 regulation, establish housing safety and quality

6 standards to be applied for use under this section.

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

8 in paragraph (1) shall—

9 ‘‘(A) provide sufficient flexibility to permit

10 the use of various designs and materials in

11 housing acquired with loans guaranteed under

12 this section; and

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

14 housing acquired in the manner described in

15 subparagraph (A) to—

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

17 modest in size and design;

18 ‘‘(ii) conform with applicable general

19 construction standards for the region in

20 which the housing is located;

21 ‘‘(iii) contain a plumbing system

22 that—

23 ‘‘(I) uses a properly installed sys24 tem of piping;
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1 ‘‘(II) includes a kitchen sink and

2 a partitional bathroom with lavatory,

3 toilet, and bath or shower; and

4 ‘‘(III) uses water supply, plumb5 ing, and sewage disposal systems that

6 conform to any minimum standards

7 established by the applicable county or

8 State;

9 ‘‘(iv) contain an electrical system

10 using wiring and equipment properly in11 stalled to safely supply electrical energy for

12 adequate lighting and for operation of ap13 pliances that conforms to any appropriate

14 county, State, or national code;

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

16 under the applicable locally adopted stand17 ards for size of dwelling units, except that

18 the Secretary, upon request of the Depart19 ment of Hawaiian Home Lands may waive

20 the size requirements under this para21 graph; and

22 ‘‘(vi) conform with the energy per23 formance requirements for new construc24 tion established by the Secretary under

25 section 526(a) of the National Housing
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1 Act (12 U.S.C.A. 1735f–4), unless the Sec2 retary determines that the requirements

3 are not applicable.

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

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

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

7 VIII of the Act popularly known as the ‘Civil Rights Act

8 of 1968’ (42 U.S.C.A. 3601 et seq.) apply to a guarantee

9 provided under this subsection, nothing in the require10 ments concerning discrimination on the basis of race shall

11 be construed to prevent the provision of the guarantee to

12 an eligible entity on the basis that the entity serves Native

13 Hawaiian families or is a Native Hawaiian family.’’.

Passed the Senate November 4, 1999.

Attest: GARY SISCO,

Secretary.