II

106TH CONGRESS

1ST SESSION S. 225

To provide Federal housing assistance to Native Hawaiians.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

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

was read twice and referred to the Committee on Indian Affairs

A BILL

To provide Federal housing assistance to Native Hawaiians.

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

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’’.

7 SEC. 2. FINDINGS.

8 Congress finds that—

9 (1) the United States has undertaken a respon10 sibility to promote the general welfare of the United

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

2 unsafe and unsanitary housing conditions and

3 the acute shortage of decent, safe, and sanitary

4 dwellings for families of lower income; and

5 (B) developing effective partnerships with

6 governmental and private entities to accomplish

7 the objectives referred to in subparagraph (A);

8 (2) pursuant to the provisions of the Hawaiian

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

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

11 land in the Federal territory that later became the

12 State of Hawaii in order to establish a homeland for

13 the native people of Hawaii—Native Hawaiians;

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

15 address the housing needs of Native Hawaiians

16 through the enactment of the Hawaiian Homes

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

18 agencies of the Federal Government have taken the

19 legal position that subsequently enacted Federal

20 housing laws designed to address the housing needs

21 of all eligible families in the United States could not

22 be extended to address the needs for housing and in23 frastructure development on Hawaiian home lands

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

25 American Housing Assistance and Self-Determina-
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1 tion Act of 1996, as added by section 3 of this Act)

2 with the result that otherwise eligible Native Hawai3 ians residing on the Hawaiian home lands have been

4 foreclosed from participating in Federal housing as5 sistance programs available to all other eligible fami6 lies in the United States;

7 (4) although Federal housing assistance pro8 grams have been administered on a racially neutral

9 basis in the State of Hawaii, Native Hawaiians con10 tinue to have the greatest unmet need for housing

11 and the highest rates of overcrowding in the United

12 States;

13 (5) among the Native American population of

14 the United States, Native Hawaiians experience the

15 highest percentage of housing problems in the

16 United States, as the percentage—

17 (A) of housing problems in the Native Ha18 waiian population is 49 percent, as compared

19 to—

20 (i) 44 percent for American Indian

21 and Alaska Native households in Indian

22 country; and

23 (ii) 27 percent for all other house24 holds in the United States; and
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1 (B) overcrowding in the Native Hawaiian

2 population is 36 percent as compared to 3 per3 cent for all other households in the United

4 States;

5 (6) among the Native Hawaiian population, the

6 needs of Native Hawaiians, as that term is defined

7 in section 801 of the Native American Housing As8 sistance and Self-Determination Act of 1996, as

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

10 the Hawaiian Home Lands are the most severe,

11 as—

12 (A) the percentage of overcrowding in Na13 tive Hawaiian households on the Hawaiian

14 Home Lands is 36 percent; and

15 (B) approximately 13,000 Native Hawai16 ians, which constitute 95 percent of the Native

17 Hawaiians who are eligible to reside on the Ha18 waiian Home Lands, are in need of housing;

19 (7) applying the Department of Housing and

20 Urban Development guidelines—

21 (A) 70.8 percent of Native Hawaiians who

22 either reside or who are eligible to reside on the

23 Hawaiian Home Lands have incomes that fall

24 below the median family income; and
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1 (B) 50 percent of Native Hawaiians who

2 either reside or who are eligible to reside on the

3 Hawaiian Home Lands have incomes below 30

4 percent of the median family income; and

(8) 1 5 ⁄3 of those Native Hawaiians who are eligi6 ble to reside on the Hawaiian Home Lands pay

7 more than 30 percent of their income for shelter,

and 1 8 ⁄2 of those Native Hawaiians face overcrowding;

9 (9) the extraordinarily severe housing needs of

10 Native Hawaiians demonstrate that Native Hawai11 ians who either reside on, or are eligible to reside on,

12 Hawaiian Home Lands have been denied equal ac13 cess to Federal low-income housing assistance pro14 grams available to other qualified residents of the

15 United States, and that a more effective means of

16 addressing their housing needs must be authorized;

17 (10) consistent with the recommendations of

18 the National Commission on American Indian, Alas19 ka Native, and Native Hawaiian Housing, and in

20 order to address the continuing prevalence of ex21 traordinarily severe housing needs among Native

22 Hawaiians who either reside or are eligible to reside

23 on the Hawaiian Home Lands, Congress finds it

24 necessary to extend the Federal low-income housing

25 assistance available to American Indians and Alaska
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1 Natives under the Native American Housing Assist2 ance and Self-Determination Act of 1996 (25 U.S.C.

3 4101 et seq.) to those Native Hawaiians;

4 (11) under the treatymaking power of the

5 United States, Congress had the authority to con6 firm a treaty between the United States and the

7 government that represented the Hawaiian people

8 under clause 3 of section 8 of article I of the Con9 stitution, the authority of Congress to address mat10 ters affecting the indigenous peoples of the United

11 States includes the authority to address matters af12 fecting Native Hawaiians;

13 (12) through treaties, Federal statutes, and rul14 ings of the Federal courts, the United States has

15 recognized and reaffirmed that—

16 (A) the political status of Native Hawai17 ians is comparable to that of American Indians

18 and Alaska Natives; and

19 (B) the aboriginal, indigenous people of

20 the United States have—

21 (i) a continuing right to autonomy in

22 their internal affairs; and

23 (ii) an ongoing right of self-deter24 mination and self-governance that has

25 never been extinguished;
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1 (13) the political relationship between the

2 United States and the Native Hawaiian people has

3 been recognized and reaffirmed by the United States

4 as evidenced by the inclusion of Native Hawaiians

5 in—

6 (A) the Native American Programs Act of

7 1974 (42 U.S.C. 2291 et seq.);

8 (B) the American Indian Religious Free9 dom Act (42 U.S.C. 1996 et seq.);

10 (C) the National Museum of the American

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

12 (D) the Native American Graves Protec13 tion and Repatriation Act (25 U.S.C. 3001 et

14 seq.);

15 (E) the National Historic Preservation Act

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

17 (F) the Native American Languages Act of

18 1992 (106 Stat. 3434);

19 (G) the American Indian, Alaska Native

20 and Native Hawaiian Culture and Arts Devel21 opment Act (20 U.S.C. 4401 et seq.);

22 (H) the Job Training Partnership Act (29

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

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

25 U.S.C. 3001 et seq.); and
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1 (14) in the area of housing, the United States

2 has recognized and reaffirmed the political relation3 ship with the Native Hawaiian people through—

4 (A) the enactment of the Hawaiian Homes

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

6 which set aside approximately 200,000 acres of

7 public lands that became known as Hawaiian

8 Home Lands in the Territory of Hawaii that

9 had been ceded to the United States for home10 steading by Native Hawaiians in order to reha11 bilitate a landless and dying people;

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

13 Act to provide for the admission of the State of

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

15 1959 (73 Stat. 4)—

16 (i) by ceding to the State of Hawaii

17 title to the public lands formerly held by

18 the United States, and mandating that

19 those lands be held in public trust, for the

20 betterment of the conditions of Native Ha21 waiians, as that term is defined in section

22 801(15) of the Native American Housing

23 Assistance and Self-Determination Act of

24 1996, as added by section 3 of this Act;

25 and
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1 (ii) by transferring what the United

2 States considered to be a trust responsibil3 ity for the administration of Hawaiian

4 Home Lands to the State of Hawaii, but

5 retaining the authority to enforce the

6 trust, including the exclusive right of the

7 United States to consent to any actions af8 fecting the lands which comprise the cor9 pus of the trust and any amendments to

10 the Hawaiian Homes Commission Act,

11 1920 (42 Stat. 108 et seq.), enacted by the

12 legislature of the State of Hawaii affecting

13 the rights of beneficiaries under the Act;

14 (C) the authorization of mortgage loans in15 sured by the Federal Housing Administration

16 for the purchase, construction, or refinancing of

17 homes on Hawaiian Home Lands under the Act

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

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

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

21 (D) authorizing Native Hawaiian represen22 tation on the National Commission on Amer23 ican Indian, Alaska Native, and Native Hawai24 ian Housing under Public Law 101–235;
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1 (E) the inclusion of Native Hawaiians in

2 the definition under section 3764 of title 38,

3 United States Code, applicable to subchapter V

4 of chapter 37 of title 38, United States Code

5 (relating to a housing loan program for Native

6 American veterans); and

7 (F) the enactment of the Hawaiian Home

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

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

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

13 States from the Hawaiian Home Lands inven14 tory.

15 SEC. 3. HOUSING ASSISTANCE.

16 The Native American Housing Assistance and Self17 Determination Act of 1996 (25 U.S.C. 4101 et seq.) is

18 amended by adding at the end the following:

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

22 ‘‘SEC. 801. DEFINITIONS.

23 ‘‘In this title:

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

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

2 department of the government of the State of Ha3 waii that is responsible for the administration of the

4 Hawaiian Homes Commission Act, 1920 (42 Stat.

5 108 et seq.).

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

7 the Director of the Department of Hawaiian Home

8 Lands.

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

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

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

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

14 member, is—

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

16 person; or

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

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

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

21 includes—

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

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

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

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

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

8 lands under section 204 of the Hawaiian

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

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

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

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

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

16 ‘‘(6) HOUSING ENTITY.—The term ‘housing en17 tity’ means the Department of Hawaiian Home

18 Lands.

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

20 means a plan developed by the Department of Ha21 waiian Home Lands.

22 ‘‘(8) MEDIAN INCOME.—The term ‘median in23 come’ means, with respect to an area that is a Ha24 waiian housing area, the greater of—
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1 ‘‘(A) the median income for the Hawaiian

2 housing area, which shall be determined by the

3 Secretary; or

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

5 Hawaii.

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

7 Hawaiian’ has the meaning given the term ‘Native

8 Hawaiian’ in section 201 of the Hawaiian Homes

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

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

11 ACTIVITIES.

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

13 Secretary shall (to the extent amounts are made available

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

15 the Department of Hawaiian Home Lands to carry out

16 affordable housing activities for Native Hawaiian families

17 on or near Hawaiian Home Lands.

18 ‘‘(b) PLAN REQUIREMENT.—

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

20 grant under this title to the Department of Hawai21 ian Home Lands for a fiscal year only if—

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

23 Secretary a housing plan for that fiscal year;

24 and
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1 ‘‘(B) the Secretary has determined under

2 section 804 that the housing plan complies with

3 the requirements of section 803.

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

5 applicability of the requirements under paragraph

6 (1), in part, if the Secretary finds that the Depart7 ment of Hawaiian Home Lands has not complied or

8 cannot comply with those requirements due to cir9 cumstances beyond the control of the Department of

10 Hawaiian Home Lands.

11 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

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

13 amounts provided under a grant under this section may

14 be used only for affordable housing activities under this

15 title that are consistent with a housing plan approved

16 under section 804.

17 ‘‘(d) ADMINISTRATIVE EXPENSES.—

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

19 regulation, authorize the Department of Hawaiian

20 Home Lands to use a percentage of any grant

21 amounts received under this title for any reasonable

22 administrative and planning expenses of the Depart23 ment relating to carrying out this title and activities

24 assisted with those amounts.
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1 ‘‘(2) ADMINISTRATIVE AND PLANNING EX2 PENSES.—The administrative and planning expenses

3 referred to in paragraph (1) include—

4 ‘‘(A) costs for salaries of individuals en5 gaged in administering and managing afford6 able housing activities assisted with grant

7 amounts provided under this title; and

8 ‘‘(B) expenses incurred in preparing a

9 housing plan under section 803.

10 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc11 tor shall make all reasonable efforts, consistent with the

12 purposes of this title, to maximize participation by the pri13 vate sector, including nonprofit organizations and for14 profit entities, in implementing a housing plan that has

15 been approved by the Secretary under section 803.

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

17 ‘‘(1) IN GENERAL.—The Secretary shall be

18 guided by the relevant program requirements of ti19 tles I, II, and IV in the implementation of housing

20 assistance programs for Native Hawaiians under

21 this title.

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

23 exceptions to, or modifications of, program require24 ments for Native American housing assistance set

25 forth in titles I, II, and IV as necessary and appro-
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1 priate to meet the unique situation and housing

2 needs of Native Hawaiians.

3 ‘‘SEC. 803. HOUSING PLAN.

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

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

6 plan under this section for each fiscal year; and

7 ‘‘(2) provide for the review of each plan submit8 ted under paragraph (1).

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

10 section shall—

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

12 and

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

14 beginning with the fiscal year for which the plan is

15 submitted, the following information:

16 ‘‘(A) MISSION STATEMENT.—A general

17 statement of the mission of the Department of

18 Hawaiian Home Lands to serve the needs of

19 the low-income families to be served by the De20 partment.

21 ‘‘(B) GOAL AND OBJECTIVES.—A state22 ment of the goals and objectives of the Depart23 ment of Hawaiian Home Lands to enable the

24 Department to serve the needs identified in

25 subparagraph (A) during the period.
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1 ‘‘(C) ACTIVITIES PLANS.—An overview of

2 the activities planned during the period includ3 ing an analysis of the manner in which the ac4 tivities will enable the Department to meet its

5 mission, goals, and objectives.

6 ‘‘(c) 1-YEAR PLAN.—A housing plan under this sec7 tion shall—

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

9 and

10 ‘‘(2) contain the following information relating

11 to the fiscal year for which the assistance under this

12 title is to be made available:

13 ‘‘(A) GOALS AND OBJECTIVES.—A state14 ment of the goals and objectives to be accom15 plished during the period covered by the plan.

16 ‘‘(B) STATEMENT OF NEEDS.—A state17 ment of the housing needs of the low-income

18 families served by the Department and the

19 means by which those needs will be addressed

20 during the period covered by the plan,

21 including—

22 ‘‘(i) a description of the estimated

23 housing needs and the need for assistance

24 for the low-income families to be served by

25 the Department, including a description of
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1 the manner in which the geographical dis2 tribution of assistance is consistent with—

3 ‘‘(I) the geographical needs of

4 those families; and

5 ‘‘(II) needs for various categories

6 of housing assistance; and

7 ‘‘(ii) a description of the estimated

8 housing needs for all families to be served

9 by the Department.

10 ‘‘(C) FINANCIAL RESOURCES.—An operat11 ing budget for the Department of Hawaiian

12 Home Lands, in a form prescribed by the Sec13 retary, that includes—

14 ‘‘(i) an identification and a descrip15 tion of the financial resources reasonably

16 available to the Department to carry out

17 the purposes of this title, including an ex18 planation of the manner in which amounts

19 made available will be used to leverage ad20 ditional resources; and

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

22 described in clause (i) will be committed,

23 including—

24 ‘‘(I) eligible and required afford25 able housing activities; and
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1 ‘‘(II) administrative expenses.

2 ‘‘(D) AFFORDABLE HOUSING RE3 SOURCES.—A statement of the affordable hous4 ing resources currently available at the time of

5 the submittal of the plan and to be made avail6 able during the period covered by the plan,

7 including—

8 ‘‘(i) a description of the significant

9 characteristics of the housing market in

10 the State of Hawaii, including the avail11 ability of housing from other public

12 sources, private market housing; and

13 ‘‘(ii) the manner in which the charac14 teristics referred to in clause (i) influence

15 the decision of the Department of Hawai16 ian Home Lands to use grant amounts to

17 be provided under this title for—

18 ‘‘(I) rental assistance;

19 ‘‘(II) the production of new units;

20 ‘‘(III) the acquisition of existing

21 units; or

22 ‘‘(IV) the rehabilitation of units;

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

24 coordination, and means of cooperation be25 tween the Department of Hawaiian Home
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1 Lands and any other governmental entities

2 in the development, submission, or imple3 mentation of housing plans, including a de4 scription of—

5 ‘‘(I) the involvement of private,

6 public, and nonprofit organizations

7 and institutions;

8 ‘‘(II) the use of loan guarantees

9 under section 184A of the Housing

10 and Community Development Act of

11 1992; and

12 ‘‘(III) other housing assistance

13 provided by the United States, includ14 ing loans, grants, and mortgage insur15 ance;

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

17 which the plan will address the needs iden18 tified pursuant to subparagraph (C);

19 ‘‘(v) a description of—

20 ‘‘(I) any existing or anticipated

21 homeownership programs and rental

22 programs to be carried out during the

23 period covered by the plan; and
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1 ‘‘(II) the requirements and as2 sistance available under the programs

3 referred to in subclause (I);

4 ‘‘(vi) a description of—

5 ‘‘(I) any existing or anticipated

6 housing rehabilitation programs nec7 essary to ensure the long-term viabil8 ity of the housing to be carried out

9 during the period covered by the plan;

10 and

11 ‘‘(II) the requirements and as12 sistance available under the programs

13 referred to in subclause (I);

14 ‘‘(vii) a description of—

15 ‘‘(I) all other existing or antici16 pated housing assistance provided by

17 the Department of Hawaiian Home

18 Lands during the period covered by

19 the plan, including—

20 ‘‘(aa) transitional housing;

21 ‘‘(bb) homeless housing;

22 ‘‘(cc) college housing; and

23 ‘‘(dd) supportive services

24 housing; and
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1 ‘‘(II) the requirements and as2 sistance available under such pro3 grams;

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

5 to be demolished or disposed of;

6 ‘‘(II) a timetable for that demolition

7 or disposition; and

8 ‘‘(III) any other information required

9 by the Secretary with respect to that dem10 olition or disposition;

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

12 which the Department of Hawaiian Home

13 Lands will coordinate with welfare agencies

14 in the State of Hawaii to ensure that resi15 dents of the affordable housing will be pro16 vided with access to resources to assist in

17 obtaining employment and achieving self18 sufficiency;

19 ‘‘(x) a description of the requirements

20 established by the Department of Hawai21 ian Home Lands to—

22 ‘‘(I) promote the safety of resi23 dents of the affordable housing;

24 ‘‘(II) facilitate the undertaking of

25 crime prevention measures;
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1 ‘‘(III) allow resident input and

2 involvement, including the establish3 ment of resident organizations; and

4 ‘‘(IV) allow for the coordination

5 of crime prevention activities between

6 the Department and local law enforce7 ment officials; and

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

9 will carry out the activities under the plan,

10 including the organizational capacity and

11 key personnel of the entities.

12 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

13 Evidence of compliance that shall include, as

14 appropriate—

15 ‘‘(i) a certification that the Depart16 ment of Hawaiian Home Lands will com17 ply with—

18 ‘‘(I) title VI of the Civil Rights

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

20 or with title VIII of the Civil Rights

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

22 in carrying out this title, to the extent

23 that such title is applicable; and

24 ‘‘(II) other applicable Federal

25 statutes;
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1 ‘‘(ii) a certification that the Depart2 ment will require adequate insurance cov3 erage for housing units that are owned and

4 operated or assisted with grant amounts

5 provided under this title, in compliance

6 with such requirements as may be estab7 lished by the Secretary;

8 ‘‘(iii) a certification that policies are

9 in effect and are available for review by the

10 Secretary and the public governing the eli11 gibility, admission, and occupancy of fami12 lies for housing assisted with grant

13 amounts provided under this title;

14 ‘‘(iv) a certification that policies are

15 in effect and are available for review by the

16 Secretary and the public governing rents

17 charged, including the methods by which

18 such rents or homebuyer payments are de19 termined, for housing assisted with grant

20 amounts provided under this title; and

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

22 effect and are available for review by the

23 Secretary and the public governing the

24 management and maintenance of housing
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1 assisted with grant amounts provided

2 under this title.

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

4 ‘‘(1) IN GENERAL.—To the extent that the re5 quirements of title VI of the Civil Rights Act of

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

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

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

9 nothing in the requirements concerning discrimina10 tion on the basis of race shall be construed to pre11 vent the provision of assistance under this title—

12 ‘‘(A) to the Department of Hawaiian

13 Home Lands on the basis that the Department

14 served Native Hawaiians; or

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

16 the family is a Native Hawaiian family.

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

18 this title may be restricted to Native Hawaiians.

19 Subject to the preceding sentence, no person may be

20 discriminated against on the basis of race, color, na21 tional origin, religion, sex, familial status, or disabil22 ity.

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

24 condition of receiving grant amounts under this title, the

25 Department of Hawaiian Home Lands shall, to the extent
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1 practicable, provide for private nonprofit organizations ex2 perienced in the planning and development of affordable

3 housing for Native Hawaiians to carry out affordable

4 housing activities with those grant amounts.

5 ‘‘SEC. 804. REVIEW OF PLANS.

6 ‘‘(a) REVIEW AND NOTICE.—

7 ‘‘(1) REVIEW.—

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

9 conduct a review of a housing plan submitted to

10 the Secretary under section 803 to ensure that

11 the plan complies with the requirements of that

12 section.

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

14 have the discretion to review a plan referred to

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

16 Secretary considers that the review is necessary.

17 ‘‘(2) NOTICE.—

18 ‘‘(A) IN GENERAL.—Not later than 60

19 days after receiving a plan under section 803,

20 the Secretary shall notify the Director of the

21 Department of Hawaiian Home Lands whether

22 the plan complies with the requirements under

23 that section.

24 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

25 TO TAKE ACTION.—For purposes of this title, if
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1 the Secretary does not notify the Director, as

2 required under this subsection and subsection

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

4 described in subparagraph (A)—

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

6 have been determined to comply with the

7 requirements under section 803; and

8 ‘‘(ii) the Director shall be considered

9 to have been notified of compliance.

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

11 NONCOMPLIANCE.—If the Secretary determines that a

12 plan submitted under section 803 does not comply with

13 the requirements of that section, the Secretary shall speci14 fy in the notice under subsection (a)—

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

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

17 meet the requirements of section 803.

18 ‘‘(c) REVIEW.—

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

20 Department of Hawaiian Home Lands submits a

21 housing plan under section 803, or any amendment

22 or modification to the plan to the Secretary, to the

23 extent that the Secretary considers such action to be

24 necessary to make a determination under this sub25 section, the Secretary shall review the plan (includ-
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1 ing any amendments or modifications thereto) to de2 termine whether the contents of the plan—

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

4 section 803 to be contained in the housing plan;

5 ‘‘(B) are consistent with information and

6 data available to the Secretary; and

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

8 with any provision of this Act or any other ap9 plicable law.

10 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de11 termines under this subsection that any of the ap12 propriate certifications required under section

13 803(c)(2)(E) are not included in a plan, the plan

14 shall be considered to be incomplete.

15 ‘‘(d) UPDATES TO PLAN.—

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

17 after a plan under section 803 has been submitted

18 for a fiscal year, the head of the Department of Ha19 waiian Home Lands may comply with the provisions

20 of that section for any succeeding fiscal year (with

21 respect to information included for the 5-year period

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

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

24 regarding such changes as may be necessary to up25 date the plan previously submitted.
29

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

2 submit a complete plan under section 803 not later

3 than 4 years after submitting an initial plan under

4 that section, and not less frequently than every 4

5 years thereafter.

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

7 803 shall take effect on the date provided by the Secretary

8 pursuant to section 807(a) to provide for timely submis9 sion and review of the housing plan as necessary for the

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

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

12 STANDARDS.

13 ‘‘(a) PROGRAM INCOME.—

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

15 of Hawaiian Home Lands may retain any program

16 income that is realized from any grant amounts re17 ceived by the Department under this title if—

18 ‘‘(A) that income was realized after the ini19 tial disbursement of the grant amounts received

20 by the Department; and

21 ‘‘(B) the Director agrees to use the pro22 gram income for affordable housing activities in

23 accordance with the provisions of this title.

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

25 The Secretary may not reduce the grant amount for
30

•S 225 IS

1 the Department of Hawaiian Home Lands based

2 solely on—

3 ‘‘(A) whether the Department retains pro4 gram income under paragraph (1); or

5 ‘‘(B) the amount of any such program in6 come retained.

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

8 may, by regulation, exclude from consideration as

9 program income any amounts determined to be so

10 small that compliance with the requirements of this

11 subsection would create an unreasonable administra12 tive burden on the Department.

13 ‘‘(b) LABOR STANDARDS.—

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

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

16 shall contain—

17 ‘‘(A) a provision requiring that an amount

18 not less than the wages prevailing in the local19 ity, as determined or adopted (subsequent to a

20 determination under applicable State or local

21 law) by the Secretary, shall be paid to all archi22 tects, technical engineers, draftsmen, techni23 cians employed in the development and all

24 maintenance, and laborers and mechanics em-
31

•S 225 IS

1 ployed in the operation, of the affordable hous2 ing project involved; and

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

4 than the wages prevailing in the locality, as pre5 determined by the Secretary of Labor pursuant

6 to the Act commonly known as the ‘Davis7 Bacon Act’ (46 Stat. 1494, chapter 411; 40

8 U.S.C. 276a et seq.) shall be paid to all labor9 ers and mechanics employed in the development

10 of the affordable housing involved.

11 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi12 sions relating to wages required under paragraph (1)

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

14 lease under this title, shall not apply to any individ15 ual who performs the services for which the individ16 ual volunteered and who is not otherwise employed

17 at any time in the construction work and received no

18 compensation or is paid expenses, reasonable bene19 fits, or a nominal fee for those services.

20 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

21 ‘‘(a) IN GENERAL.—

22 ‘‘(1) RELEASE OF FUNDS.—

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

24 carry out the alternative environmental protec-
32

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1 tion procedures described in subparagraph (B)

2 in order to ensure—

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

4 Environmental Policy Act of 1969 (42

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

6 of law that further the purposes of such

7 Act (as specified in regulations issued by

8 the Secretary) are most effectively imple9 mented in connection with the expenditure

10 of grant amounts provided under this title;

11 and

12 ‘‘(ii) to the public undiminished pro13 tection of the environment.

14 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO15 TECTION PROCEDURE.—In lieu of applying en16 vironmental protection procedures otherwise ap17 plicable, the Secretary may by regulation pro18 vide for the release of funds for specific projects

19 to the Department of Hawaiian Home Lands if

20 the Director of the Department assumes all of

21 the responsibilities for environmental review,

22 decisionmaking, and action under the National

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

24 4321 et seq.), and such other provisions of law

25 as the regulations of the Secretary specify, that
33

•S 225 IS

1 would apply to the Secretary were the Secretary

2 to undertake those projects as Federal projects.

3 ‘‘(2) REGULATIONS.—

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

5 issue regulations to carry out this section only

6 after consultation with the Council on Environ7 mental Quality.

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

9 under this paragraph shall—

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

11 environmental reviews performed under

12 this section;

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

14 facilitate training for the performance of

15 such reviews; and

16 ‘‘(iii) provide for the suspension or

17 termination of the assumption of respon18 sibilities under this section.

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

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

21 shall not be construed to limit or reduce any respon22 sibility assumed by the Department of Hawaiian

23 Home Lands for grant amounts with respect to any

24 specific release of funds.

25 ‘‘(b) PROCEDURE.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall author2 ize the release of funds subject to the procedures

3 under this section only if, not less than 15 days be4 fore that approval and before any commitment of

5 funds to such projects, the Director of the Depart6 ment of Hawaiian Home Lands submits to the Sec7 retary a request for such release accompanied by a

8 certification that meets the requirements of sub9 section (c).

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

11 the Secretary of a certification described in para12 graph (1) shall be deemed to satisfy the responsibil13 ities of the Secretary under the National Environ14 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

15 and such other provisions of law as the regulations

16 of the Secretary specify to the extent that those re17 sponsibilities relate to the releases of funds for

18 projects that are covered by that certification.

19 ‘‘(c) CERTIFICATION.—A certification under the pro20 cedures under this section shall—

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

22 ‘‘(2) be executed by the Director of the Depart23 ment of Hawaiian Home Lands;
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•S 225 IS

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

2 Home Lands has fully carried out its responsibilities

3 as described under subsection (a); and

4 ‘‘(4) specify that the Director—

5 ‘‘(A) consents to assume the status of a re6 sponsible Federal official under the National

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

8 4321 et seq.) and each provision of law speci9 fied in regulations issued by the Secretary to

10 the extent that those laws apply by reason of

11 subsection (a); and

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

13 of the Department of Hawaiian Home Lands

14 and the Director to accept the jurisdiction of

15 the Federal courts for the purpose of enforce16 ment of the responsibilities of the Director of

17 the Department of Hawaiian Home Lands as

18 such an official.

19 ‘‘SEC. 807. REGULATIONS.

20 ‘‘The Secretary shall issue final regulations necessary

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

22 ‘‘SEC. 808. EFFECTIVE DATE.

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

24 this title shall take effect on October 1, 1999.
36

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1 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

2 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI3 LIES.—

4 ‘‘(1) PRIMARY OBJECTIVE.—The national objec5 tives of this title are—

6 ‘‘(A) to assist and promote affordable

7 housing activities to develop, maintain, and op8 erate affordable housing in safe and healthy en9 vironments for occupancy by low-income Native

10 Hawaiian families;

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

12 mortgage markets and to promote self-suffi13 ciency of low-income Native Hawaiian families;

14 ‘‘(C) to coordinate activities to provide

15 housing for low-income Native Hawaiian fami16 lies with Federal, State and local activities to

17 further economic and community development;

18 ‘‘(D) to plan for and integrate infrastruc19 ture resources on the Hawaiian Home Lands

20 with housing development; and

21 ‘‘(E) to—

22 ‘‘(i) promote the development of pri23 vate capital markets; and

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

25 clause (i) to operate and grow, thereby

26 benefiting Native Hawaiian communities.
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1 ‘‘(2) ELIGIBLE FAMILIES.—

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

3 under subparagraph (B), assistance for eligible

4 housing activities under this title shall be lim5 ited to low-income Native Hawaiian families.

6 ‘‘(B) EXCEPTION TO LOW-INCOME RE7 QUIREMENT.—

8 ‘‘(i) IN GENERAL.—The Director may

9 provide assistance for homeownership ac10 tivities under—

11 ‘‘(I) section 810(b);

12 ‘‘(II) model activities under sec13 tion 810(f); or

14 ‘‘(III) loan guarantee activities

15 under section 184A of the Housing

16 and Community Development Act of

17 1992 to Native Hawaiian families who

18 are not low-income families, to the ex19 tent that the Secretary approves the

20 activities under that section to ad21 dress a need for housing for those

22 families that cannot be reasonably

23 met without that assistance.

24 ‘‘(ii) LIMITATIONS.—The Secretary

25 shall establish limitations on the amount of
38

•S 225 IS

1 assistance that may be provided under this

2 title for activities for families that are not

3 low-income families.

4 ‘‘(C) OTHER FAMILIES.—Notwithstanding

5 paragraph (1), the Director may provide hous6 ing or housing assistance provided through af7 fordable housing activities assisted with grant

8 amounts under this title to a family that is not

9 composed of Native Hawaiians if—

10 ‘‘(i) the Department determines that

11 the presence of the family in the housing

12 involved is essential to the well-being of

13 Native Hawaiian families; and

14 ‘‘(ii) the need for housing for the fam15 ily cannot be reasonably met without the

16 assistance.

17 ‘‘(D) PREFERENCE.—

18 ‘‘(i) IN GENERAL.—A housing plan

19 submitted under section 803 may authorize

20 a preference, for housing or housing assist21 ance provided through affordable housing

22 activities assisted with grant amounts pro23 vided under this title to be provided, to the

24 extent practicable, to families that are eli-
39

•S 225 IS

1 gible to reside on the Hawaiian Home

2 Lands.

3 ‘‘(ii) APPLICATION.—In any case in

4 which a housing plan provides for pref5 erence described in clause (i), the Director

6 shall ensure that housing activities that are

7 assisted with grant amounts under this

8 title are subject to that preference.

9 ‘‘(E) USE OF NONPROFIT ORGANIZA10 TIONS.—As a condition of receiving grant

11 amounts under this title, the Department of

12 Hawaiian Home Lands, shall to the extent

13 practicable, provide for private nonprofit orga14 nizations experienced in the planning and devel15 opment of affordable housing for Native Hawai16 ians to carry out affordable housing activities

17 with those grant amounts.

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

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

20 under this section are activities conducted in accordance

21 with the requirements of section 811 to—

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

23 for rental or homeownership; or
40

•S 225 IS

1 ‘‘(2) provide housing services with respect to af2 fordable housing, through the activities described in

3 subsection (b).

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

5 subsection are the following:

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

7 construction, reconstruction, or moderate or sub8 stantial rehabilitation of affordable housing, which

9 may include—

10 ‘‘(A) real property acquisition;

11 ‘‘(B) site improvement;

12 ‘‘(C) the development of utilities and util13 ity services;

14 ‘‘(D) conversion;

15 ‘‘(E) demolition;

16 ‘‘(F) financing;

17 ‘‘(G) administration and planning; and

18 ‘‘(H) other related activities.

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

20 housing-related services for affordable housing,

21 including—

22 ‘‘(A) housing counseling in connection with

23 rental or homeownership assistance;
41

•S 225 IS

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

•S 225 IS

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

•S 225 IS

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

•S 225 IS

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 IS

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

•S 225 IS

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, and 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

•S 225 IS

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 provid16 ing 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

•S 225 IS

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
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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

•S 225 IS

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
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1 the original action of the Sec2 retary.

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

5 respect to a question of fact, be considered

6 to be conclusive if those findings are—

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

9 ‘‘(II) considered as a whole.

10 ‘‘(4) FINALITY.—

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

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

13 under this subsection with the court—

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

15 be exclusive; and

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

17 be final.

18 ‘‘(B) REVIEW BY SUPREME COURT.—A

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

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

23 United States Code.

24 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

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

2 binding contractual agreements with owners or other

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

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

6 paragraph (1) shall provide for—

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

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

10 Secretary; and

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

12 referred to in paragraph (1).

13 ‘‘(b) PERIODIC MONITORING.—

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

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

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

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

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

22 under paragraph (1) shall be—

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

24 the Director submitted to the Secretary under

25 section 820; and
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1 ‘‘(B) made available to the public.

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

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

5 title.

6 ‘‘SEC. 820. PERFORMANCE REPORTS.

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

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

10 made during that fiscal year in carrying out the

11 housing plan submitted by the Department under

12 section 803; and

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

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

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

17 section for a fiscal year shall—

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

19 to the Department of Hawaiian Home Lands for

20 that fiscal year;

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

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

23 housing plan;

24 ‘‘(3) indicate the programmatic accomplish25 ments of the Department; and
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1 ‘‘(4) describe the manner in which the Depart2 ment would change its housing plan submitted under

3 section 803 as a result of its experiences.

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

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

7 ‘‘(2) review each such report; and

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

11 ‘‘(d) PUBLIC AVAILABILITY.—

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

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

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

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

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

20 Director may determine).

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

22 shall include a summary of any comments received

23 by the Director from beneficiaries under paragraph

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

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

2 ‘‘(a) ANNUAL REVIEW.—

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

4 less frequently than on an annual basis, make such

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

7 ‘‘(A) the Director has—

8 ‘‘(i) carried out eligible activities

9 under this title in a timely manner;

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

13 title and with other applicable laws; and

14 ‘‘(iii) a continuing capacity to carry

15 out the eligible activities in a timely man16 ner;

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

18 housing plan submitted by the Director under

19 section 803; and

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

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

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

25 of Housing and Urban Development.
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1 ‘‘(b) REPORT BY SECRETARY.—The Secretary shall

2 give the Department of Hawaiian Home Lands not less

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

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

6 report and shall make the comments of the Department

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

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

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

11 make appropriate adjustments in the amount of annual

12 grants under this title in accordance with the findings of

13 the Secretary pursuant to reviews and audits under this

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

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

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

20 Department of Hawaiian Home Lands.

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

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

23 Department of Hawaiian Home Lands involving grant

24 amounts under this title relate to amounts provided under

25 this title, those transactions may be audited by the Comp-
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1 troller General of the United States under such regula2 tions as may be prescribed by the Comptroller General.

3 The Comptroller General of the United States shall have

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

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

6 by the Department of Hawaiian Home Lands pertaining

7 to such financial transactions and necessary to facilitate

8 the audit.

9 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

11 conclusion of each fiscal year in which assistance under

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

13 the 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, private nonprofit or for profit organi24 zations experienced in the planning and development

25 of affordable housing for Native Hawaiians.
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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’ has the meaning given the term ‘native

15 Hawaiian’ in section 201 of the Hawaiian Homes

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

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

18 term ‘Office of Hawaiian Affairs’ means the entity

19 of that name established under the constitution of

20 the State of Hawaii.

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

22 private financing to Native Hawaiian families who other23 wise could not acquire housing financing because of the

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

25 result of a lack of access to private financial markets, the
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1 Secretary may guarantee an amount not to exceed 100

2 percent of the unpaid principal and interest that is due

3 on an eligible loan under subsection (b).

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

5 is an eligible loan if that loan meets the following require6 ments:

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

8 only to a borrower who—

9 ‘‘(A) is a Native Hawaiian family;

10 ‘‘(B) the Department of Hawaiian Home

11 Lands;

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

13 ‘‘(D) a private nonprofit organization expe14 rienced in the planning and development of af15 fordable housing for Native Hawaiians.

16 ‘‘(2) ELIGIBLE HOUSING.—

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

18 to construct, acquire, or rehabilitate not more

19 than 4-family dwellings that are standard hous20 ing and are located on Hawaiian Home Lands

21 for which a housing plan described in subpara22 graph (B) applies.

23 ‘‘(B) HOUSING PLAN.—A housing plan de24 scribed in this subparagraph is a housing plan

25 that—
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1 ‘‘(i) has been submitted and approved

2 by the Secretary under section 803 of the

3 Native American Housing Assistance and

4 Self-Determination Amendments of 1999;

5 and

6 ‘‘(ii) provides for the use of loan guar7 antees under this section to provide afford8 able homeownership housing on Hawaiian

9 Home Lands.

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

11 any collateral authorized under applicable Federal

12 law or State law.

13 ‘‘(4) LENDERS.—

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

15 made only by a lender approved by, and meet16 ing qualifications established by, the Secretary,

17 including any lender described in subparagraph

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

19 guaranteed by an agency of the Federal Gov20 ernment or made by the Department of Hawai21 ian Home Lands from amounts borrowed from

22 the United Sates shall not be eligible for a

23 guarantee under this section.
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1 ‘‘(B) APPROVAL.—The following lenders

2 shall be considered to be lenders that have been

3 approved by the Secretary:

4 ‘‘(i) Any mortgagee approved by the

5 Secretary for participation in the single

6 family mortgage insurance program under

7 title II of the National Housing Act (12

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

9 ‘‘(ii) Any lender that makes housing

10 loans under chapter 37 of title 38, United

11 States Code, that are automatically guar12 anteed under section 3702(d) of title 38,

13 United States Code.

14 ‘‘(iii) Any lender approved by the Sec15 retary of Agriculture to make guaranteed

16 loans for single family housing under the

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

18 seq.).

19 ‘‘(iv) Any other lender that is super20 vised, approved, regulated, or insured by

21 any agency of the Federal Government.

22 ‘‘(5) TERMS.—The loan shall—

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

24 years;
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1 ‘‘(B) bear interest (exclusive of the guar2 antee fee under subsection (d) and service

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

4 borrower and the lender and determined by the

5 Secretary to be reasonable, but not to exceed

6 the rate generally charged in the area (as deter7 mined by the Secretary) for home mortgage

8 loans not guaranteed or insured by any agency

9 or instrumentality of the Federal Government;

10 ‘‘(C) involve a principal obligation not

11 exceeding—

12 ‘‘(i) 97.75 percent of the appraised

13 value of the property as of the date the

14 loan is accepted for guarantee (or 98.75

15 percent if the value of the property is

16 $50,000 or less); or

17 ‘‘(ii) the amount approved by the Sec18 retary under this section; and

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

20 property—

21 ‘‘(i) in cash or its equivalent; or

22 ‘‘(ii) through the value of any im23 provements to the property made through

24 the skilled or unskilled labor of the bor25 rower, as the Secretary shall provide.
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1 ‘‘(d) CERTIFICATE OF GUARANTEE.—

2 ‘‘(1) APPROVAL PROCESS.—

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

4 approves any loan for guarantee under this sec5 tion, the lender shall submit the application for

6 the loan to the Secretary for examination.

7 ‘‘(B) APPROVAL.—If the Secretary ap8 proves the application submitted under sub9 paragraph (A), the Secretary shall issue a cer10 tificate under this subsection as evidence of the

11 loan guarantee approved.

12 ‘‘(2) STANDARD FOR APPROVAL.—The Sec13 retary may approve a loan for guarantee under this

14 section and issue a certificate under this subsection

15 only if the Secretary determines that there is a rea16 sonable prospect of repayment of the loan.

17 ‘‘(3) EFFECT.—

18 ‘‘(A) IN GENERAL.—A certificate of guar19 antee issued under this subsection by the Sec20 retary shall be conclusive evidence of the eligi21 bility of the loan for guarantee under this sec22 tion and the amount of that guarantee.

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

24 in subparagraph (A) shall be incontestable in

25 the hands of the bearer.
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1 ‘‘(C) FULL FAITH AND CREDIT.—The full

2 faith and credit of the United States is pledged

3 to the payment of all amounts agreed to be paid

4 by the Secretary as security for the obligations

5 made by the Secretary under this section.

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

7 subsection may not be construed—

8 ‘‘(A) to preclude the Secretary from estab9 lishing defenses against the original lender

10 based on fraud or material misrepresentation;

11 or

12 ‘‘(B) to bar the Secretary from establish13 ing by regulations that are on the date of

14 issuance or disbursement, whichever is earlier,

15 partial defenses to the amount payable on the

16 guarantee.

17 ‘‘(e) GUARANTEE FEE.—

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

19 collect a guarantee fee for the guarantee of a loan

20 under this section, which may not exceed the amount

21 equal to 1 percent of the principal obligation of the

22 loan.

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

24 shall—
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1 ‘‘(A) be paid by the lender at time of

2 issuance of the guarantee; and

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

4 the Secretary, to cover expenses and probable

5 losses.

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

7 any fees collected under this subsection in the Na8 tive Hawaiian Housing Loan Guarantee Fund estab9 lished under subsection (j).

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

11 under a guarantee provided under this section shall de12 crease or increase on a pro rata basis according to any

13 decrease or increase in the amount of the unpaid obliga14 tion under the provisions of the loan agreement involved.

15 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwithstand16 ing any other provision of law, any loan guaranteed under

17 this section, including the security given for the loan, may

18 be sold or assigned by the lender to any financial institu19 tion subject to examination and supervision by an agency

20 of the Federal Government or of any State or the District

21 of Columbia.

22 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

23 MONEY PENALTIES.—

24 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) GROUNDS FOR ACTION.—The Sec2 retary may take action under subparagraph (B)

3 if the Secretary determines that any lender or

4 holder of a guarantee certificate under sub5 section (c)—

6 ‘‘(i) has failed—

7 ‘‘(I) to maintain adequate ac8 counting records;

9 ‘‘(II) to service adequately loans

10 guaranteed under this section; or

11 ‘‘(III) to exercise proper credit or

12 underwriting judgment; or

13 ‘‘(ii) has engaged in practices other14 wise detrimental to the interest of a bor15 rower or the United States.

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

17 the Secretary that a holder of a guarantee cer18 tificate under subsection (c) has failed to carry

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

20 or has engaged in practices described in sub21 paragraph (A)(ii), the Secretary may—

22 ‘‘(i) refuse, either temporarily or per23 manently, to guarantee any further loans

24 made by such lender or holder;
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•S 225 IS

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

2 acquiring additional loans guaranteed

3 under this section; and

4 ‘‘(iii) require that such lender or hold5 er assume not less than 10 percent of any

6 loss on further loans made or held by the

7 lender or holder that are guaranteed under

8 this section.

9 ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN10 TIONAL VIOLATIONS.—

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

12 impose a civil monetary penalty on a lender or

13 holder of a guarantee certificate under sub14 section (d) if the Secretary determines that the

15 holder or lender has intentionally failed—

16 ‘‘(i) to maintain adequate accounting

17 records;

18 ‘‘(ii) to adequately service loans guar19 anteed under this section; or

20 ‘‘(iii) to exercise proper credit or un21 derwriting judgment.

22 ‘‘(B) PENALTIES.—A civil monetary pen23 alty imposed under this paragraph shall be im24 posed in the manner and be in an amount pro25 vided under section 536 of the National Hous-
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1 ing Act (12 U.S.C.A. 1735f–1) with respect to

2 mortgagees and lenders under that Act.

3 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

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

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

6 not refuse to pay a lender or holder of a valid guar7 antee on that loan, without regard to whether the

8 lender or holder is barred under this subsection.

9 ‘‘(i) PAYMENT UNDER GUARANTEE.—

10 ‘‘(1) LENDER OPTIONS.—

11 ‘‘(A) IN GENERAL.—

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

13 loan guaranteed under this section defaults

14 on the loan, the holder of the guarantee

15 certificate shall provide written notice of

16 the default to the Secretary.

17 ‘‘(ii) PAYMENT.—Upon providing the

18 notice required under clause (i), the holder

19 of the guarantee certificate shall be enti20 tled to payment under the guarantee (sub21 ject to the provisions of this section) and

22 may proceed to obtain payment in 1 of the

23 following manners:

24 ‘‘(I) FORECLOSURE.—
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1 ‘‘(aa) IN GENERAL.—The

2 holder of the certificate may initi3 ate foreclosure proceedings (after

4 providing written notice of that

5 action to the Secretary).

6 ‘‘(bb) PAYMENT.—Upon a

7 final order by the court authoriz8 ing foreclosure and submission to

9 the Secretary of a claim for pay10 ment under the guarantee, the

11 Secretary shall pay to the holder

12 of the certificate the pro rata

13 portion of the amount guaran14 teed (as determined pursuant to

15 subsection (f)) plus reasonable

16 fees and expenses as approved by

17 the Secretary.

18 ‘‘(cc) SUBROGATION.—The

19 rights of the Secretary shall be

20 subrogated to the rights of the

21 holder of the guarantee. The

22 holder shall assign the obligation

23 and security to the Secretary.

24 ‘‘(II) NO FORECLOSURE.—
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1 ‘‘(aa) IN GENERAL.—With2 out seeking foreclosure (or in any

3 case in which a foreclosure pro4 ceeding initiated under clause (i)

5 continues for a period in excess

6 of 1 year), the holder of the

7 guarantee may submit to the

8 Secretary a request to assign the

9 obligation and security interest to

10 the Secretary in return for pay11 ment of the claim under the

12 guarantee. The Secretary may

13 accept assignment of the loan if

14 the Secretary determines that the

15 assignment is in the best interest

16 of the United States.

17 ‘‘(bb) PAYMENT.—Upon as18 signment, the Secretary shall pay

19 to the holder of the guarantee

20 the pro rata portion of the

21 amount guaranteed (as deter22 mined under subsection (f)).

23 ‘‘(cc) SUBROGATION.—The

24 rights of the Secretary shall be

25 subrogated to the rights of the
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1 holder of the guarantee. The

2 holder shall assign the obligation

3 and security to the Secretary.

4 ‘‘(B) REQUIREMENTS.—Before any pay5 ment under a guarantee is made under sub6 paragraph (A), the holder of the guarantee

7 shall exhaust all reasonable possibilities of col8 lection. Upon payment, in whole or in part, to

9 the holder, the note or judgment evidencing the

10 debt shall be assigned to the United States and

11 the holder shall have no further claim against

12 the borrower or the United States. The Sec13 retary shall then take such action to collect as

14 the Secretary determines to be appropriate.

15 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

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

17 on a loan guaranteed under this section that in18 volves a security interest in restricted Hawaiian

19 Home Land property, the mortgagee or the

20 Secretary shall only pursue liquidation after of21 fering to transfer the account to another eligi22 ble Hawaiian family or the Department of Ha23 waiian Home Lands.

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

25 taken under subparagraph (A), the mortgagee
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1 or the Secretary subsequently proceeds to liq2 uidate the account, the mortgagee or the Sec3 retary shall not sell, transfer, or otherwise dis4 pose of or alienate the property described in

5 subparagraph (A) except to another eligible Ha6 waiian family or to the Department of Hawai7 ian Home Lands.

8 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE

9 FUND.—

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

11 the Treasury of the United States the Hawaiian

12 Housing Loan Guarantee Fund for the purpose of

13 providing loan guarantees under this section.

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

15 credited with—

16 ‘‘(A) any amount, claims, notes, mort17 gages, contracts, and property acquired by the

18 Secretary under this section, and any collections

19 and proceeds therefrom;

20 ‘‘(B) any amounts appropriated pursuant

21 to paragraph (7);

22 ‘‘(C) any guarantee fees collected under

23 subsection (d); and

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

25 invested under paragraph (4).
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1 ‘‘(3) USE.—Amounts in the Guarantee Fund

2 shall be available, to the extent provided in appro3 priations Acts, for—

4 ‘‘(A) fulfilling any obligations of the Sec5 retary with respect to loans guaranteed under

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

7 defined in section 502 of the Federal Credit Re8 form Act of 1990 (2 U.S.C. 661a)) of such

9 loans;

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

11 expenses necessary to make fiscal adjustment in

12 connection with the application and transmittal

13 of collections, and other expenses and advances

14 to protect the Secretary for loans which are

15 guaranteed under this section or held by the

16 Secretary;

17 ‘‘(C) acquiring such security property at

18 foreclosure sales or otherwise;

19 ‘‘(D) paying administrative expenses in

20 connection with this section; and

21 ‘‘(E) reasonable and necessary costs of re22 habilitation and repair to properties that the

23 Secretary holds or owns pursuant to this sec24 tion.
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1 ‘‘(4) INVESTMENT.—Any amounts in the Guar2 antee Fund determined by the Secretary to be in ex3 cess of amounts currently required at the time of the

4 determination to carry out this section may be in5 vested in obligations of the United States.

6 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR7 ANTEE LOANS AND MORTGAGES.—

8 ‘‘(A) REQUIREMENT OF APPROPRIA9 TIONS.—The authority of the Secretary to enter

10 into commitments to guarantee loans under this

11 section shall be effective for any fiscal year to

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

13 been provided in appropriations Acts, without

14 regard to the fiscal year for which such

15 amounts were appropriated.

16 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN17 TEES.—The authority of the Secretary to enter

18 into commitments to guarantee loans under this

19 section shall be effective for any fiscal year only

20 to the extent that amounts in the Guarantee

21 Fund are or have been made available in appro22 priations Acts to cover the costs (as that term

23 is defined in section 502 of the Federal Credit

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

25 loan guarantees for such fiscal year. Any
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1 amounts appropriated pursuant to this subpara2 graph shall remain available until expended.

3 ‘‘(C) LIMITATION ON OUTSTANDING AG4 GREGATE PRINCIPAL AMOUNT.—Subject to the

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

6 Secretary may enter into commitments to guar7 antee loans under this section for each of fiscal

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

9 an aggregate outstanding principal amount not

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

11 year.

12 ‘‘(6) LIABILITIES.—All liabilities and obliga13 tions of the assets credited to the Guarantee Fund

14 under paragraph (2)(A) shall be liabilities and obli15 gations of the Guarantee Fund.

16 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

17 There are authorized to be appropriated to the

18 Guarantee Fund to carry out this section such sums

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

20 2001, 2002, 2003, and 2004.

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

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

23 regulation, establish housing safety and quality

24 standards to be applied for use under this section.
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1 ‘‘(2) STANDARDS.—The standards referred to

2 in paragraph (1) shall—

3 ‘‘(A) provide sufficient flexibility to permit

4 the use of various designs and materials in

5 housing acquired with loans guaranteed under

6 this section; and

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

8 housing acquired in the manner described in

9 subparagraph (A) to—

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

11 modest in size and design;

12 ‘‘(ii) conform with applicable general

13 construction standards for the region in

14 which the housing is located;

15 ‘‘(iii) contain a plumbing system

16 that—

17 ‘‘(I) uses a properly installed sys18 tem of piping;

19 ‘‘(II) includes a kitchen sink and

20 a partitional bathroom with lavatory,

21 toilet, and bath or shower; and

22 ‘‘(III) uses water supply, plumb23 ing, and sewage disposal systems that

24 conform to any minimum standards
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1 established by the applicable county or

2 State;

3 ‘‘(iv) contain an electrical system

4 using wiring and equipment properly in5 stalled to safely supply electrical energy for

6 adequate lighting and for operation of ap7 pliances that conforms to any appropriate

8 county, State, or national code;

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

10 under the applicable locally adopted stand11 ards for size of dwelling units, except that

12 the Secretary, upon request of the Depart13 ment of Hawaiian Home Lands may waive

14 the size requirements under this para15 graph; and

16 ‘‘(vi) conform with the energy per17 formance requirements for new construc18 tion established by the Secretary under

19 section 526(a) of the National Housing

20 Act (12 U.S.C.A. 1735f–4), unless the Sec21 retary determines that the requirements

22 are not applicable.

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

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

25 Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of title
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1 VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et

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

3 nothing in the requirements concerning discrimination on

4 the basis of race shall be construed to prevent the provi5 sion of the guarantee to an eligible entity on the basis

6 that the entity serves Native Hawaiian families or is a Na7 tive Hawaiian family.’’.

Æ