II

106TH CONGRESS

1ST SESSION S. 225

[Report No. 106–192]

To provide Federal housing assistance to Native Hawaiians.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

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

was read twice and referred to the Committee on Indian Affairs

OCTOBER 14, 1999

Reported by Mr. CAMPBELL, with an amendment

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

OCTOBER 27, 1999

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

1999, the Committee be discharged from further consideration thereof,

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

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’’.
2

S 225 RIS

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) pursuant to the provisions of the Hawaiian

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

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

16 land in the Federal territory that later became the

17 State of Hawaii in order to establish a homeland for

18 the native people of Hawaii—Native Hawaiians;

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

20 address the housing needs of Native Hawaiians

21 through the enactment of the Hawaiian Homes

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

23 agencies of the Federal Government have taken the

24 legal position that subsequently enacted Federal

25 housing laws designed to address the housing needs

26 of all eligible families in the United States could not
3

S 225 RIS

1 be extended to address the needs for housing and in2 frastructure development on Hawaiian home lands

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

4 American Housing Assistance and Self-Determina5 tion Act of 1996, as added by section 3 of this Act)

6 with the result that otherwise eligible Native Hawai7 ians residing on the Hawaiian home lands have been

8 foreclosed from participating in Federal housing as9 sistance programs available to all other eligible fami10 lies in the United States;

11 (4) although Federal housing assistance pro12 grams have been administered on a racially neutral

13 basis in the State of Hawaii, Native Hawaiians con14 tinue to have the greatest unmet need for housing

15 and the highest rates of overcrowding in the United

16 States;

17 (5) among the Native American population of

18 the United States, Native Hawaiians experience the

19 highest percentage of housing problems in the

20 United States, as the percentage—

21 (A) of housing problems in the Native Ha22 waiian population is 49 percent, as compared

23 to—
4

S 225 RIS

1 (i) 44 percent for American Indian

2 and Alaska Native households in Indian

3 country; and

4 (ii) 27 percent for all other house5 holds in the United States; and

6 (B) overcrowding in the Native Hawaiian

7 population is 36 percent as compared to 3 per8 cent for all other households in the United

9 States;

10 (6) among the Native Hawaiian population, the

11 needs of Native Hawaiians, as that term is defined

12 in section 801 of the Native American Housing As13 sistance and Self-Determination Act of 1996, as

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

15 the Hawaiian Home Lands are the most severe,

16 as—

17 (A) the percentage of overcrowding in Na18 tive Hawaiian households on the Hawaiian

19 Home Lands is 36 percent; and

20 (B) approximately 13,000 Native Hawai21 ians, which constitute 95 percent of the Native

22 Hawaiians who are eligible to reside on the Ha23 waiian Home Lands, are in need of housing;

24 (7) applying the Department of Housing and

25 Urban Development guidelines—
5

S 225 RIS

1 (A) 70.8 percent of Native Hawaiians who

2 either reside or who are eligible to reside on the

3 Hawaiian Home Lands have incomes that fall

4 below the median family income; and

5 (B) 50 percent of Native Hawaiians who

6 either reside or who are eligible to reside on the

7 Hawaiian Home Lands have incomes below 30

8 percent of the median family income; and

(8) 1 9 ⁄3 of those Native Hawaiians who are eligi10 ble to reside on the Hawaiian Home Lands pay

11 more than 30 percent of their income for shelter,

and 1 12 ⁄2 of those Native Hawaiians face overcrowding;

13 (9) the extraordinarily severe housing needs of

14 Native Hawaiians demonstrate that Native Hawai15 ians who either reside on, or are eligible to reside on,

16 Hawaiian Home Lands have been denied equal ac17 cess to Federal low-income housing assistance pro18 grams available to other qualified residents of the

19 United States, and that a more effective means of

20 addressing their housing needs must be authorized;

21 (10) consistent with the recommendations of

22 the National Commission on American Indian, Alas23 ka Native, and Native Hawaiian Housing, and in

24 order to address the continuing prevalence of ex25 traordinarily severe housing needs among Native
6

S 225 RIS

1 Hawaiians who either reside or are eligible to reside

2 on the Hawaiian Home Lands, Congress finds it

3 necessary to extend the Federal low-income housing

4 assistance available to American Indians and Alaska

5 Natives under the Native American Housing Assist6 ance and Self-Determination Act of 1996 (25 U.S.C.

7 4101 et seq.) to those Native Hawaiians;

8 (11) under the treatymaking power of the

9 United States, Congress had the authority to con10 firm a treaty between the United States and the

11 government that represented the Hawaiian people

12 under clause 3 of section 8 of article I of the Con13 stitution, the authority of Congress to address mat14 ters affecting the indigenous peoples of the United

15 States includes the authority to address matters af16 fecting Native Hawaiians;

17 (12) through treaties, Federal statutes, and rul18 ings of the Federal courts, the United States has

19 recognized and reaffirmed that—

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

22 and Alaska Natives; and

23 (B) the aboriginal, indigenous people of

24 the United States have—
7

S 225 RIS

1 (i) a continuing right to autonomy in

2 their internal affairs; and

3 (ii) an ongoing right of self-deter4 mination and self-governance that has

5 never been extinguished;

6 (13) the political relationship between the

7 United States and the Native Hawaiian people has

8 been recognized and reaffirmed by the United States

9 as evidenced by the inclusion of Native Hawaiians

10 in—

11 (A) the Native American Programs Act of

12 1974 (42 U.S.C. 2291 et seq.);

13 (B) the American Indian Religious Free14 dom Act (42 U.S.C. 1996 et seq.);

15 (C) the National Museum of the American

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

17 (D) the Native American Graves Protec18 tion and Repatriation Act (25 U.S.C. 3001 et

19 seq.);

20 (E) the National Historic Preservation Act

21 (16 U.S.C. 470 et seq.);

22 (F) the Native American Languages Act of

23 1992 (106 Stat. 3434);
8

S 225 RIS

1 (G) the American Indian, Alaska Native

2 and Native Hawaiian Culture and Arts Devel3 opment Act (20 U.S.C. 4401 et seq.);

4 (H) the Job Training Partnership Act (29

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

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

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

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

9 has recognized and reaffirmed the political relation10 ship with the Native Hawaiian people through—

11 (A) the enactment of the Hawaiian Homes

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

13 which set aside approximately 200,000 acres of

14 public lands that became known as Hawaiian

15 Home Lands in the Territory of Hawaii that

16 had been ceded to the United States for home17 steading by Native Hawaiians in order to reha18 bilitate a landless and dying people;

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

20 Act to provide for the admission of the State of

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

22 1959 (73 Stat. 4)—

23 (i) by ceding to the State of Hawaii

24 title to the public lands formerly held by

25 the United States, and mandating that
9

S 225 RIS

1 those lands be held in public trust, for the

2 betterment of the conditions of Native Ha3 waiians, as that term is defined in section

4 801(15) of the Native American Housing

5 Assistance and Self-Determination Act of

6 1996, as added by section 3 of this Act;

7 and

8 (ii) by transferring what the United

9 States considered to be a trust responsi10 bility for the administration of Hawaiian

11 Home Lands to the State of Hawaii, but

12 retaining the authority to enforce the

13 trust, including the exclusive right of the

14 United States to consent to any actions af15 fecting the lands which comprise the cor16 pus of the trust and any amendments to

17 the Hawaiian Homes Commission Act,

18 1920 (42 Stat. 108 et seq.), enacted by the

19 legislature of the State of Hawaii affecting

20 the rights of beneficiaries under the Act;

21 (C) the authorization of mortgage loans in22 sured by the Federal Housing Administration

23 for the purchase, construction, or refinancing of

24 homes on Hawaiian Home Lands under the Act

25 of June 27, 1934 (commonly referred to as the
10

S 225 RIS

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

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

3 (D) authorizing Native Hawaiian represen4 tation on the National Commission on Amer5 ican Indian, Alaska Native, and Native Hawai6 ian Housing under Public Law 101–235;

7 (E) the inclusion of Native Hawaiians in

8 the definition under section 3764 of title 38,

9 United States Code, applicable to subchapter V

10 of chapter 37 of title 38, United States Code

11 (relating to a housing loan program for Native

12 American veterans); and

13 (F) the enactment of the Hawaiian Home

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

15 491, note prec.) which establishes a process for

16 the conveyance of Federal lands to the Depart17 ment of Hawaiian Homes Lands that are equiv18 alent in value to lands acquired by the United

19 States from the Hawaiian Home Lands inven20 tory.

21 SEC. 3. HOUSING ASSISTANCE.

22 The Native American Housing Assistance and Self23 Determination Act of 1996 (25 U.S.C. 4101 et seq.) is

24 amended by adding at the end the following:
11

S 225 RIS

1 ‘‘TITLE VIII—HOUSING ASSIST2 ANCE FOR NATIVE HAWAI3 IANS

4 ‘‘SEC. 801. DEFINITIONS.

5 ‘‘In this title:

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

7 DEPARTMENT.—The term ‘Department of Hawaiian

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

9 department of the government of the State of Ha10 waii that is responsible for the administration of the

11 Hawaiian Homes Commission Act, 1920 (42 Stat.

12 108 et seq.).

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

14 the Director of the Department of Hawaiian Home

15 Lands.

16 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI17 LIES.—

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

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

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

21 member, is—

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

23 person; or

24 ‘‘(ii) for a near-elderly family, a near25 elderly person.
12

S 225 RIS

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

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

3 includes—

4 ‘‘(i) 2 or more elderly persons or near5 elderly persons, as the case may be, living

6 together; and

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

8 clause (i) living with 1 or more persons de9 termined under the housing plan to be es10 sential to their care or well-being.

11 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha12 waiian Home Lands’ means lands that—

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

14 lands under section 204 of the Hawaiian

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

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

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

18 means an area of Hawaiian Home Lands with re19 spect to which the Department of Hawaiian Home

20 Lands is authorized to provide assistance for afford21 able housing under this Act.

22 ‘‘(6) HOUSING ENTITY.—The term ‘housing en23 tity’ means the Department of Hawaiian Home

24 Lands.
13

S 225 RIS

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

2 means a plan developed by the Department of Ha3 waiian Home Lands.

4 ‘‘(8) MEDIAN INCOME.—The term ‘median in5 come’ means, with respect to an area that is a Ha6 waiian housing area, the greater of—

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

8 housing area, which shall be determined by the

9 Secretary; or

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

11 Hawaii.

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

13 Hawaiian’ has the meaning given the term ‘Native

14 Hawaiian’ in section 201 of the Hawaiian Homes

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

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

17 ACTIVITIES.

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

19 Secretary shall (to the extent amounts are made available

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

21 the Department of Hawaiian Home Lands to carry out

22 affordable housing activities for Native Hawaiian families

23 on or near Hawaiian Home Lands.

24 ‘‘(b) PLAN REQUIREMENT.—
14

S 225 RIS

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

2 grant under this title to the Department of Hawai3 ian Home Lands for a fiscal year only if—

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

5 Secretary a housing plan for that fiscal year;

6 and

7 ‘‘(B) the Secretary has determined under

8 section 804 that the housing plan complies with

9 the requirements of section 803.

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

11 applicability of the requirements under paragraph

12 (1), in part, if the Secretary finds that the Depart13 ment of Hawaiian Home Lands has not complied or

14 cannot comply with those requirements due to cir15 cumstances beyond the control of the Department of

16 Hawaiian Home Lands.

17 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

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

19 amounts provided under a grant under this section may

20 be used only for affordable housing activities under this

21 title that are consistent with a housing plan approved

22 under section 804.

23 ‘‘(d) ADMINISTRATIVE EXPENSES.—

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

25 regulation, authorize the Department of Hawaiian
15

S 225 RIS

1 Home Lands to use a percentage of any grant

2 amounts received under this title for any reasonable

3 administrative and planning expenses of the Depart4 ment relating to carrying out this title and activities

5 assisted with those amounts.

6 ‘‘(2) ADMINISTRATIVE AND PLANNING EX7 PENSES.—The administrative and planning expenses

8 referred to in paragraph (1) include—

9 ‘‘(A) costs for salaries of individuals en10 gaged in administering and managing afford11 able housing activities assisted with grant

12 amounts provided under this title; and

13 ‘‘(B) expenses incurred in preparing a

14 housing plan under section 803.

15 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc16 tor shall make all reasonable efforts, consistent with the

17 purposes of this title, to maximize participation by the pri18 vate sector, including nonprofit organizations and for19 profit entities, in implementing a housing plan that has

20 been approved by the Secretary under section 803.

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

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

23 guided by the relevant program requirements of ti24 tles I, II, and IV in the implementation of housing
16

S 225 RIS

1 assistance programs for Native Hawaiians under

2 this title.

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

4 exceptions to, or modifications of, program require5 ments for Native American housing assistance set

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

8 needs of Native Hawaiians.

9 ‘‘SEC. 803. HOUSING PLAN.

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

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

12 plan under this section for each fiscal year; and

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

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

16 section shall—

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

18 and

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

20 beginning with the fiscal year for which the plan is

21 submitted, the following information:

22 ‘‘(A) MISSION STATEMENT.—A general

23 statement of the mission of the Department of

24 Hawaiian Home Lands to serve the needs of
17

S 225 RIS

1 the low-income families to be served by the De2 partment.

3 ‘‘(B) GOAL AND OBJECTIVES.—A state4 ment of the goals and objectives of the Depart5 ment of Hawaiian Home Lands to enable the

6 Department to serve the needs identified in

7 subparagraph (A) during the period.

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

9 the activities planned during the period includ10 ing an analysis of the manner in which the ac11 tivities will enable the Department to meet its

12 mission, goals, and objectives.

13 ‘‘(c) 1-YEAR PLAN.—A housing plan under this sec14 tion shall—

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

16 and

17 ‘‘(2) contain the following information relating

18 to the fiscal year for which the assistance under this

19 title is to be made available:

20 ‘‘(A) GOALS AND OBJECTIVES.—A state21 ment of the goals and objectives to be accom22 plished during the period covered by the plan.

23 ‘‘(B) STATEMENT OF NEEDS.—A state24 ment of the housing needs of the low-income

25 families served by the Department and the
18

S 225 RIS

1 means by which those needs will be addressed

2 during the period covered by the plan,

3 including—

4 ‘‘(i) a description of the estimated

5 housing needs and the need for assistance

6 for the low-income families to be served by

7 the Department, including a description of

8 the manner in which the geographical dis9 tribution of assistance is consistent with—

10 ‘‘(I) the geographical needs of

11 those families; and

12 ‘‘(II) needs for various categories

13 of housing assistance; and

14 ‘‘(ii) a description of the estimated

15 housing needs for all families to be served

16 by the Department.

17 ‘‘(C) FINANCIAL RESOURCES.—An oper18 ating budget for the Department of Hawaiian

19 Home Lands, in a form prescribed by the Sec20 retary, that includes—

21 ‘‘(i) an identification and a descrip22 tion of the financial resources reasonably

23 available to the Department to carry out

24 the purposes of this title, including an ex25 planation of the manner in which amounts
19

S 225 RIS

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; and

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;
20

S 225 RIS

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);
21

S 225 RIS

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;
22

S 225 RIS

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—
23

S 225 RIS

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 Civil Rights

25 Act of 1968 (42 U.S.C. 3601 et seq.)
24

S 225 RIS

1 in carrying out this title, to the extent

2 that such title is applicable; and

3 ‘‘(II) other applicable Federal

4 statutes;

5 ‘‘(ii) a certification that the Depart6 ment will require adequate insurance cov7 erage for housing units that are owned and

8 operated or assisted with grant amounts

9 provided under this title, in compliance

10 with such requirements as may be estab11 lished by the Secretary;

12 ‘‘(iii) a certification that policies are

13 in effect and are available for review by the

14 Secretary and the public governing the eli15 gibility, admission, and occupancy of fami16 lies for housing assisted with grant

17 amounts provided under this title;

18 ‘‘(iv) a certification that policies are

19 in effect and are available for review by the

20 Secretary and the public governing rents

21 charged, including the methods by which

22 such rents or homebuyer payments are de23 termined, for housing assisted with grant

24 amounts provided under this title; and
25

S 225 RIS

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

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

13 nothing in the requirements concerning discrimina14 tion on the basis of race shall be construed to pre15 vent the provision of assistance under this title—

16 ‘‘(A) to the Department of Hawaiian

17 Home Lands on the basis that the Department

18 served Native Hawaiians; or

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

20 the family is a Native Hawaiian family.

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

22 this title may be restricted to Native Hawaiians.

23 Subject to the preceding sentence, no person may be

24 discriminated against on the basis of race, color, na-
26

S 225 RIS

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
27

S 225 RIS

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
28

S 225 RIS

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 head of the Department of Ha24 waiian Home Lands may comply with the provisions

25 of that section for any succeeding fiscal year (with
29

S 225 RIS

1 respect to information included for the 5-year period

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

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

4 regarding such changes as may be necessary to up5 date 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

S 225 RIS

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

S 225 RIS

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.—
32

S 225 RIS

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

S 225 RIS

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

S 225 RIS

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

S 225 RIS

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, 1999.
36

S 225 RIS

1 ‘‘SEC. 808. EFFECTIVE DATE.

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

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

4 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

5 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI6 LIES.—

7 ‘‘(1) PRIMARY OBJECTIVE.—The national objec8 tives of this title are—

9 ‘‘(A) to assist and promote affordable

10 housing activities to develop, maintain, and op11 erate affordable housing in safe and healthy en12 vironments for occupancy by low-income Native

13 Hawaiian families;

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

15 mortgage markets and to promote self-suffi16 ciency of low-income Native Hawaiian families;

17 ‘‘(C) to coordinate activities to provide

18 housing for low-income Native Hawaiian fami19 lies with Federal, State and local activities to

20 further economic and community development;

21 ‘‘(D) to plan for and integrate infrastruc22 ture resources on the Hawaiian Home Lands

23 with housing development; and

24 ‘‘(E) to—

25 ‘‘(i) promote the development of pri26 vate capital markets; and
37

S 225 RIS

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

2 clause (i) to operate and grow, thereby

3 benefiting Native Hawaiian communities.

4 ‘‘(2) ELIGIBLE FAMILIES.—

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

6 under subparagraph (B), assistance for eligible

7 housing activities under this title shall be lim8 ited to low-income Native Hawaiian families.

9 ‘‘(B) EXCEPTION TO LOW-INCOME RE10 QUIREMENT.—

11 ‘‘(i) IN GENERAL.—The Director may

12 provide assistance for homeownership ac13 tivities under—

14 ‘‘(I) section 810(b);

15 ‘‘(II) model activities under sec16 tion 810(f); or

17 ‘‘(III) loan guarantee activities

18 under section 184A of the Housing

19 and Community Development Act of

20 1992 to Native Hawaiian families who

21 are not low-income families, to the ex22 tent that the Secretary approves the

23 activities under that section to ad24 dress a need for housing for those
38

S 225 RIS

1 families that cannot be reasonably

2 met without that assistance.

3 ‘‘(ii) LIMITATIONS.—The Secretary

4 shall establish limitations on the amount of

5 assistance that may be provided under this

6 title for activities for families that are not

7 low-income families.

8 ‘‘(C) OTHER FAMILIES.—Notwithstanding

9 paragraph (1), the Director may provide hous10 ing or housing assistance provided through af11 fordable housing activities assisted with grant

12 amounts under this title to a family that is not

13 composed of Native Hawaiians if—

14 ‘‘(i) the Department determines that

15 the presence of the family in the housing

16 involved is essential to the well-being of

17 Native Hawaiian families; and

18 ‘‘(ii) the need for housing for the fam19 ily cannot be reasonably met without the

20 assistance.

21 ‘‘(D) PREFERENCE.—

22 ‘‘(i) IN GENERAL.—A housing plan

23 submitted under section 803 may authorize

24 a preference, for housing or housing assist25 ance provided through affordable housing
39

S 225 RIS

1 activities assisted with grant amounts pro2 vided under this title to be provided, to the

3 extent practicable, to families that are eli4 gible to reside on the Hawaiian Home

5 Lands.

6 ‘‘(ii) APPLICATION.—In any case in

7 which a housing plan provides for pref8 erence described in clause (i), the Director

9 shall ensure that housing activities that are

10 assisted with grant amounts under this

11 title are subject to that preference.

12 ‘‘(E) USE OF NONPROFIT ORGANIZA13 TIONS.—As a condition of receiving grant

14 amounts under this title, the Department of

15 Hawaiian Home Lands, shall to the extent

16 practicable, provide for private nonprofit orga17 nizations experienced in the planning and devel18 opment of affordable housing for Native Hawai19 ians to carry out affordable housing activities

20 with those grant amounts.

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

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

23 under this section are activities conducted in accordance

24 with the requirements of section 811 to—
40

S 225 RIS

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 RIS

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 RIS

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 RIS

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 RIS

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

S 225 RIS

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 RIS

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 RIS

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 RIS

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

S 225 RIS

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

S 225 RIS

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

S 225 RIS

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 RIS

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.—
53

S 225 RIS

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

S 225 RIS

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

S 225 RIS

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

S 225 RIS

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.—
57

S 225 RIS

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 RIS

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 RIS

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.
60

S 225 RIS

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.
61

S 225 RIS

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 RIS

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).
63

S 225 RIS

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.
64

S 225 RIS

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
65

S 225 RIS

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—
66

S 225 RIS

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.
67

S 225 RIS

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;
68

S 225 RIS

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.
69

S 225 RIS

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.
70

S 225 RIS

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 estab13 lishing 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—
71

S 225 RIS

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.—Notwith16 standing any other provision of law, any loan guaranteed

17 under this section, including the security given for the

18 loan, may be sold or assigned by the lender to any finan19 cial institution subject to examination and supervision by

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

21 the District of Columbia.

22 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

23 MONEY PENALTIES.—

24 ‘‘(1) IN GENERAL.—
72

S 225 RIS

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;
73

S 225 RIS

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-
74

S 225 RIS

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.—
75

S 225 RIS

1 ‘‘(aa) IN GENERAL.—The

2 holder of the certificate may ini3 tiate foreclosure proceedings

4 (after providing written notice of

5 that action to the Secretary).

6 ‘‘(bb) PAYMENT.—Upon a

7 final order by the court author8 izing foreclosure and submission

9 to the Secretary of a claim for

10 payment under the guarantee,

11 the Secretary shall pay to the

12 holder of the certificate the pro

13 rata portion of the amount guar14 anteed (as determined pursuant

15 to 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.—
76

S 225 RIS

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
77

S 225 RIS

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
78

S 225 RIS

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).
79

S 225 RIS

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.
80

S 225 RIS

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
81

S 225 RIS

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.
82

S 225 RIS

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
83

S 225 RIS

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
84

S 225 RIS

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.’’

8 SECTION 1. SHORT TITLE.

9 This Act may be cited as the ‘‘Native American Hous10 ing Assistance and Self-Determination Amendments of

11 1999’’.

12 SEC. 2. FINDINGS.

13 Congress finds that—

14 (1) the United States has undertaken a responsi15 bility to promote the general welfare of the United

16 States by—

17 (A) employing its resources to remedy the

18 unsafe and unsanitary housing conditions and

19 the acute shortage of decent, safe, and sanitary

20 dwellings for families of lower income; and

21 (B) developing effective partnerships with

22 governmental and private entities to accomplish

23 the objectives referred to in subparagraph (A);
85

S 225 RIS

1 (2) the United States has a special responsibility

2 for the welfare of the Native peoples of the United

3 States, including Native Hawaiians;

4 (3) pursuant to the provisions of the Hawaiian

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

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

7 the Federal territory that later became the State of

8 Hawaii in order to establish a homeland for the na9 tive people of Hawaii—Native Hawaiians;

10 (4) despite the intent of Congress in 1920 to ad11 dress the housing needs of Native Hawaiians through

12 the enactment of the Hawaiian Homes Commission

13 Act, 1920 (42 Stat. 108 et seq.), Native Hawaiians el14 igible to reside on the Hawaiian home lands have

15 been foreclosed from participating in Federal housing

16 assistance programs available to all other eligible

17 families in the United States;

18 (5) although Federal housing assistance pro19 grams have been administered on a racially neutral

20 basis in the State of Hawaii, Native Hawaiians con21 tinue to have the greatest unmet need for housing and

22 the highest rates of overcrowding in the United States;

23 (6) among the Native American population of

24 the United States, Native Hawaiians experience the
86

S 225 RIS

1 highest percentage of housing problems in the United

2 States, as the percentage—

3 (A) of housing problems in the Native Ha4 waiian population is 49 percent, as compared

5 to—

6 (i) 44 percent for American Indian

7 and Alaska Native households in Indian

8 country; and

9 (ii) 27 percent for all other households

10 in the United States; and

11 (B) overcrowding in the Native Hawaiian

12 population is 36 percent as compared to 3 per13 cent for all other households in the United

14 States;

15 (7) among the Native Hawaiian population, the

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

17 section 801 of the Native American Housing Assist18 ance and Self-Determination Act of 1996, as added by

19 section 3 of this Act, eligible to reside on the Hawai20 ian Home Lands are the most severe, as—

21 (A) the percentage of overcrowding in Na22 tive Hawaiian households on the Hawaiian

23 Home Lands is 36 percent; and

24 (B) approximately 13,000 Native Hawai25 ians, which constitute 95 percent of the Native
87

S 225 RIS

1 Hawaiians who are eligible to reside on the Ha2 waiian Home Lands, are in need of housing;

3 (8) applying the Department of Housing and

4 Urban Development guidelines—

5 (A) 70.8 percent of Native Hawaiians who

6 either reside or who are eligible to reside on the

7 Hawaiian Home Lands have incomes that fall

8 below the median family income; and

9 (B) 50 percent of Native Hawaiians who ei10 ther reside or who are eligible to reside on the

11 Hawaiian Home Lands have incomes below 30

12 percent of the median family income;

(9) 1 13 ⁄3 of those Native Hawaiians who are eligi14 ble to reside on the Hawaiian Home Lands pay more

than 30 percent of their income for shelter, and 1 15 ⁄2 of

16 those Native Hawaiians face overcrowding;

17 (10) the extraordinarily severe housing needs of

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

20 Hawaiian Home Lands have been denied equal access

21 to Federal low-income housing assistance programs

22 available to other qualified residents of the United

23 States, and that a more effective means of addressing

24 their housing needs must be authorized;
88

S 225 RIS

1 (11) consistent with the recommendations of the

2 National Commission on American Indian, Alaska

3 Native, and Native Hawaiian Housing, and in order

4 to address the continuing prevalence of extraor5 dinarily severe housing needs among Native Hawai6 ians who either reside or are eligible to reside on the

7 Hawaiian Home Lands, Congress finds it necessary

8 to extend the Federal low-income housing assistance

9 available to American Indians and Alaska Natives

10 under the Native American Housing Assistance and

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

12 seq.) to those Native Hawaiians;

13 (12) under the treatymaking power of the United

14 States, Congress had the constitutional authority to

15 confirm a treaty between the United States and the

16 government that represented the Hawaiian people,

17 and from 1826 until 1893, the United States recog18 nized the independence of the Kingdom of Hawaii, ex19 tended full diplomatic recognition to the Hawaiian

20 Government, and entered into treaties and conven21 tions with the Hawaiian monarchs to govern com22 merce and navigation in 1826, 1842, 1849, 1875, and

23 1887;

24 (13) the United States has recognized and re25 affirmed that—
89

S 225 RIS

1 (A) Native Hawaiians have a cultural, his2 toric, and land-based link to the indigenous peo3 ple who exercised sovereignty over the Hawaiian

4 Islands, and that group has never relinquished

5 its claims to sovereignty or its sovereign lands;

6 (B) Congress does not extend services to Na7 tive Hawaiians because of their race, but because

8 of their unique status as the indigenous people of

9 a once sovereign nation as to whom the United

10 States has established a trust relationship;

11 (C) Congress has also delegated broad au12 thority to administer a portion of the Federal

13 trust responsibility to the State of Hawaii;

14 (D) the political status of Native Hawai15 ians is comparable to that of American Indians

16 and Alaska Natives; and

17 (E) the aboriginal, indigenous people of the

18 United States have—

19 (i) a continuing right to autonomy in

20 their internal affairs; and

21 (ii) an ongoing right of self-determina22 tion and self-governance that has never been

23 extinguished;

24 (14) the political relationship between the United

25 States and the Native Hawaiian people has been rec-
90

S 225 RIS

1 ognized and reaffirmed by the United States as evi2 denced by the inclusion of Native Hawaiians in—

3 (A) the Native American Programs Act of

4 1974 (42 U.S.C. 2291 et seq.);

5 (B) the American Indian Religious Free6 dom Act (42 U.S.C. 1996 et seq.);

7 (C) the National Museum of the American

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

9 (D) the Native American Graves Protection

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

11 (E) the National Historic Preservation Act

12 (16 U.S.C. 470 et seq.);

13 (F) the Native American Languages Act of

14 1992 (106 Stat. 3434);

15 (G) the American Indian, Alaska Native

16 and Native Hawaiian Culture and Arts Develop17 ment Act (20 U.S.C. 4401 et seq.);

18 (H) the Job Training Partnership Act (29

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

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

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

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

23 has recognized and reaffirmed the political relation24 ship with the Native Hawaiian people through—
91

S 225 RIS

1 (A) the enactment of the Hawaiian Homes

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

3 which set aside approximately 200,000 acres of

4 public lands that became known as Hawaiian

5 Home Lands in the Territory of Hawaii that

6 had been ceded to the United States for home7 steading by Native Hawaiians in order to reha8 bilitate a landless and dying people;

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

10 Act to provide for the admission of the State of

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

12 1959 (73 Stat. 4)—

13 (i) by ceding to the State of Hawaii

14 title to the public lands formerly held by the

15 United States, and mandating that those

16 lands be held in public trust, for the better17 ment of the conditions of Native Hawaiians,

18 as that term is defined in section 201 of the

19 Hawaiian Homes Commission Act, 1920

20 (42 Stat. 108 et seq.); and

21 (ii) by transferring the United States

22 responsibility for the administration of Ha23 waiian Home Lands to the State of Ha24 waii, but retaining the authority to enforce

25 the trust, including the exclusive right of the
92

S 225 RIS

1 United States to consent to any actions af2 fecting the lands which comprise the corpus

3 of the trust and any amendments to the Ha4 waiian Homes Commission Act, 1920 (42

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

6 of the State of Hawaii affecting the rights

7 of beneficiaries under the Act;

8 (C) the authorization of mortgage loans in9 sured by the Federal Housing Administration for

10 the purchase, construction, or refinancing of

11 homes on Hawaiian Home Lands under the Act

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

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

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

15 (D) authorizing Native Hawaiian represen16 tation on the National Commission on American

17 Indian, Alaska Native, and Native Hawaiian

18 Housing under Public Law 101–235;

19 (E) the inclusion of Native Hawaiians in

20 the definition under section 3764 of title 38,

21 United States Code, applicable to subchapter V

22 of chapter 37 of title 38, United States Code (re23 lating to a housing loan program for Native

24 American veterans); and
93

S 225 RIS

1 (F) the enactment of the Hawaiian Home

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

3 491, note prec.) which establishes a process for

4 the conveyance of Federal lands to the Depart5 ment of Hawaiian Homes Lands that are equiv6 alent in value to lands acquired by the United

7 States from the Hawaiian Home Lands inven8 tory.

9 SEC. 3. HOUSING ASSISTANCE.

10 The Native American Housing Assistance and Self-De11 termination Act of 1996 (25 U.S.C. 4101 et seq.) is amend12 ed by adding at the end the following:

13 ‘‘TITLE VIII—HOUSING ASSIST14 ANCE FOR NATIVE HAWAI15 IANS

16 ‘‘SEC. 801. DEFINITIONS.

17 ‘‘In this title:

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

19 DEPARTMENT.—The term ‘Department of Hawaiian

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

21 department of the government of the State of Hawaii

22 that is responsible for the administration of the Ha23 waiian Homes Commission Act, 1920 (42 Stat. 108

24 et seq.).
94

S 225 RIS

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

2 Director of the Department of Hawaiian Home

3 Lands.

4 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI5 LIES.—

6 ‘‘(A) IN GENERAL.—The term ‘elderly fam7 ily’ or ‘near-elderly family’ means a family

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

9 member, is—

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

11 person; or

12 ‘‘(ii) for a near-elderly family, a near13 elderly person.

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

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

16 includes—

17 ‘‘(i) 2 or more elderly persons or near18 elderly persons, as the case may be, living

19 together; and

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

21 clause (i) living with 1 or more persons de22 termined under the housing plan to be es23 sential to their care or well-being.

24 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha25 waiian Home Lands’ means lands that—
95

S 225 RIS

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

2 lands under section 204 of the Hawaiian Homes

3 Commission Act (42 Stat. 110); or

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

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

6 means an area of Hawaiian Home Lands with re7 spect to which the Department of Hawaiian Home

8 Lands is authorized to provide assistance for afford9 able housing under this Act.

10 ‘‘(6) HOUSING ENTITY.—The term ‘housing enti11 ty’ means the Department of Hawaiian Home Lands.

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

13 means a plan developed by the Department of Hawai14 ian Home Lands.

15 ‘‘(8) MEDIAN INCOME.—The term ‘median in16 come’ means, with respect to an area that is a Ha17 waiian housing area, the greater of—

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

19 housing area, which shall be determined by the

20 Secretary; or

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

22 Hawaii.

23 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native Ha24 waiian’ means any individual who is—

25 ‘‘(A) a citizen of the United States; and
96

S 225 RIS

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

2 who, prior to 1778, occupied and exercised sov3 ereignty in the area that currently constitutes

4 the State of Hawaii, as evidenced by—

5 ‘‘(i) genealogical records;

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

7 kama’aina (long-term community resi8 dents); or

9 ‘‘(iii) birth records of the State of Ha10 waii.

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

12 ACTIVITIES.

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

14 Secretary shall (to the extent amounts are made available

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

16 Department of Hawaiian Home Lands to carry out afford17 able housing activities for Native Hawaiian families who

18 are eligible to reside on the Hawaiian Home Lands.

19 ‘‘(b) PLAN REQUIREMENT.—

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

21 grant under this title to the Department of Hawaiian

22 Home Lands for a fiscal year only if—

23 ‘‘(A) the Director has submitted to the Sec24 retary a housing plan for that fiscal year; and
97

S 225 RIS

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 ap5 plicability of the requirements under paragraph (1),

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

7 Hawaiian Home Lands has not complied or cannot

8 comply with those requirements due to circumstances

9 beyond the control of the Department of Hawaiian

10 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 title

15 that are consistent with a housing plan approved under sec16 tion 804.

17 ‘‘(d) ADMINISTRATIVE EXPENSES.—

18 ‘‘(1) IN GENERAL.—The Secretary shall, by regu19 lation, authorize the Department of Hawaiian Home

20 Lands to use a percentage of any grant amounts re21 ceived under this title for any reasonable administra22 tive and planning expenses of the Department relat23 ing to carrying out this title and activities assisted

24 with those amounts.
98

S 225 RIS

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 affordable

6 housing activities assisted with grant amounts

7 provided under this title; and

8 ‘‘(B) expenses incurred in preparing a

9 housing plan under section 803.

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

11 shall make all reasonable efforts, consistent with the pur12 poses of this title, to maximize participation by the private

13 sector, including nonprofit organizations and for-profit en14 tities, in implementing a housing plan that has been ap15 proved by the Secretary under section 803.

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

17 ‘‘(1) IN GENERAL.—The Secretary shall be guid18 ed by the relevant program requirements of titles I,

19 II, and IV in the implementation of housing assist20 ance programs for Native Hawaiians under this title.

21 ‘‘(2) EXCEPTION.—The Secretary may make ex22 ceptions to, or modifications of, program require23 ments for Native American housing assistance set

24 forth in titles I, II, and IV as necessary and appro-
99

S 225 RIS

1 priate to meet the unique situation and housing needs

2 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 sub8 mitted 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 the

19 low-income families to be served by the Depart20 ment.

21 ‘‘(B) GOAL AND OBJECTIVES.—A statement

22 of the goals and objectives of the Department of

23 Hawaiian Home Lands to enable the Depart24 ment to serve the needs identified in subpara25 graph (A) during the period.
100

S 225 RIS

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 section

7 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 statement

14 of the goals and objectives to be accomplished

15 during the period covered by the plan.

16 ‘‘(B) STATEMENT OF NEEDS.—A statement

17 of the housing needs of the low-income families

18 served by the Department and the means by

19 which those needs will be addressed during the

20 period covered by the plan, including—

21 ‘‘(i) a description of the estimated

22 housing needs and the need for assistance

23 for the low-income families to be served by

24 the Department, including a description of
101

S 225 RIS

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 oper11 ating 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 the

17 purposes of this title, including an expla18 nation 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 de22 scribed in clause (i) will be committed,

23 including—

24 ‘‘(I) eligible and required afford25 able housing activities; and
102

S 225 RIS

1 ‘‘(II) administrative expenses.

2 ‘‘(D) AFFORDABLE HOUSING RESOURCES.—

3 A statement of the affordable housing resources

4 currently available at the time of the submittal

5 of the plan and to be made available during the

6 period covered by the plan, including—

7 ‘‘(i) a description of the significant

8 characteristics of the housing market in the

9 State of Hawaii, including the availability

10 of housing from other public sources, private

11 market housing;

12 ‘‘(ii) the manner in which the charac13 teristics referred to in clause (i) influence

14 the decision of the Department of Hawaiian

15 Home Lands to use grant amounts to be

16 provided under this title for—

17 ‘‘(I) rental assistance;

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

19 ‘‘(III) the acquisition of existing

20 units; or

21 ‘‘(IV) the rehabilitation of units;

22 ‘‘(iii) a description of the structure, co23 ordination, and means of cooperation be24 tween the Department of Hawaiian Home

25 Lands and any other governmental entities
103

S 225 RIS

1 in the development, submission, or imple2 mentation of housing plans, including a de3 scription of—

4 ‘‘(I) the involvement of private,

5 public, and nonprofit organizations

6 and institutions;

7 ‘‘(II) the use of loan guarantees

8 under section 184A of the Housing and

9 Community Development Act of 1992;

10 and

11 ‘‘(III) other housing assistance

12 provided by the United States, includ13 ing loans, grants, and mortgage insur14 ance;

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

16 which the plan will address the needs iden17 tified pursuant to subparagraph (C);

18 ‘‘(v) a description of—

19 ‘‘(I) any existing or anticipated

20 homeownership programs and rental

21 programs to be carried out during the

22 period covered by the plan; and

23 ‘‘(II) the requirements and assist24 ance available under the programs re25 ferred to in subclause (I);
104

S 225 RIS

1 ‘‘(vi) a description of—

2 ‘‘(I) any existing or anticipated

3 housing rehabilitation programs nec4 essary to ensure the long-term viability

5 of the housing to be carried out during

6 the period covered by the plan; and

7 ‘‘(II) the requirements and assist8 ance available under the programs re9 ferred to in subclause (I);

10 ‘‘(vii) a description of—

11 ‘‘(I) all other existing or antici12 pated housing assistance provided by

13 the Department of Hawaiian Home

14 Lands during the period covered by the

15 plan, including—

16 ‘‘(aa) transitional housing;

17 ‘‘(bb) homeless housing;

18 ‘‘(cc) college housing; and

19 ‘‘(dd) supportive services

20 housing; and

21 ‘‘(II) the requirements and assist22 ance available under such programs;

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

24 to be demolished or disposed of;
105

S 225 RIS

1 ‘‘(II) a timetable for that demolition or

2 disposition; and

3 ‘‘(III) any other information required

4 by the Secretary with respect to that demo5 lition or disposition;

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

7 which the Department of Hawaiian Home

8 Lands will coordinate with welfare agencies

9 in the State of Hawaii to ensure that resi10 dents of the affordable housing will be pro11 vided with access to resources to assist in

12 obtaining employment and achieving self13 sufficiency;

14 ‘‘(x) a description of the requirements

15 established by the Department of Hawaiian

16 Home Lands to—

17 ‘‘(I) promote the safety of resi18 dents of the affordable housing;

19 ‘‘(II) facilitate the undertaking of

20 crime prevention measures;

21 ‘‘(III) allow resident input and

22 involvement, including the establish23 ment of resident organizations; and

24 ‘‘(IV) allow for the coordination of

25 crime prevention activities between the
106

S 225 RIS

1 Department and local law enforcement

2 officials; and

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

4 will carry out the activities under the plan,

5 including the organizational capacity and

6 key personnel of the entities.

7 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

8 Evidence of compliance that shall include, as

9 appropriate—

10 ‘‘(i) a certification that the Depart11 ment of Hawaiian Home Lands will com12 ply with—

13 ‘‘(I) title VI of the Civil Rights

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

15 or with title VIII of the Act popularly

16 known as the ‘Civil Rights Act of 1968’

17 (42 U.S.C. 3601 et seq.) in carrying

18 out this title, to the extent that such

19 title is applicable; and

20 ‘‘(II) other applicable Federal

21 statutes;

22 ‘‘(ii) a certification that the Depart23 ment will require adequate insurance cov24 erage for housing units that are owned and

25 operated or assisted with grant amounts
107

S 225 RIS

1 provided under this title, in compliance

2 with such requirements as may be estab3 lished by the Secretary;

4 ‘‘(iii) a certification that policies are

5 in effect and are available for review by the

6 Secretary and the public governing the eli7 gibility, admission, and occupancy of fami8 lies for housing assisted with grant amounts

9 provided under this title;

10 ‘‘(iv) a certification that policies are in

11 effect and are available for review by the

12 Secretary and the public governing rents

13 charged, including the methods by which

14 such rents or homebuyer payments are de15 termined, for housing assisted with grant

16 amounts provided under this title; and

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

18 effect and are available for review by the

19 Secretary and the public governing the

20 management and maintenance of housing

21 assisted with grant amounts provided under

22 this title.

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

24 ‘‘(1) IN GENERAL.—To the extent that the re25 quirements of title VI of the Civil Rights Act of 1964
108

S 225 RIS

1 (42 U.S.C. 2000d et seq.) or of title VIII of the Act

2 popularly known as the ‘Civil Rights Act of 1968’ (42

3 U.S.C. 3601 et seq.) apply to assistance provided

4 under this title, nothing in the requirements con5 cerning discrimination on the basis of race shall be

6 construed to prevent the provision of assistance under

7 this title—

8 ‘‘(A) to the Department of Hawaiian Home

9 Lands on the basis that the Department served

10 Native Hawaiians; or

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

12 the family is a Native Hawaiian family.

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

14 this title may be restricted to Native Hawaiians. Sub15 ject to the preceding sentence, no person may be dis16 criminated against on the basis of race, color, na17 tional origin, religion, sex, familial status, or dis18 ability.

19 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a con20 dition of receiving grant amounts under this title, the De21 partment of Hawaiian Home Lands shall, to the extent

22 practicable, provide for private nonprofit organizations ex23 perienced in the planning and development of affordable

24 housing for Native Hawaiians to carry out affordable hous25 ing activities with those grant amounts.
109

S 225 RIS

1 ‘‘SEC. 804. REVIEW OF PLANS.

2 ‘‘(a) REVIEW AND NOTICE.—

3 ‘‘(1) REVIEW.—

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

5 conduct a review of a housing plan submitted to

6 the Secretary under section 803 to ensure that

7 the plan complies with the requirements of that

8 section.

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

10 have the discretion to review a plan referred to

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

12 Secretary considers that the review is necessary.

13 ‘‘(2) NOTICE.—

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

15 after receiving a plan under section 803, the Sec16 retary shall notify the Director of the Depart17 ment of Hawaiian Home Lands whether the

18 plan complies with the requirements under that

19 section.

20 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

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

22 the Secretary does not notify the Director, as re23 quired under this subsection and subsection (b),

24 upon the expiration of the 60-day period de25 scribed in subparagraph (A)—
110

S 225 RIS

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

2 have been determined to comply with the re3 quirements under section 803; and

4 ‘‘(ii) the Director shall be considered to

5 have been notified of compliance.

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

7 NONCOMPLIANCE.—If the Secretary determines that a plan

8 submitted under section 803 does not comply with the re9 quirements of that section, the Secretary shall specify in

10 the notice under subsection (a)—

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

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

13 meet the requirements of section 803.

14 ‘‘(c) REVIEW.—

15 ‘‘(1) IN GENERAL.—After the Director of the De16 partment of Hawaiian Home Lands submits a hous17 ing plan under section 803, or any amendment or

18 modification to the plan to the Secretary, to the ex19 tent that the Secretary considers such action to be

20 necessary to make a determination under this sub21 section, the Secretary shall review the plan (including

22 any amendments or modifications thereto) to deter23 mine whether the contents of the plan—

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

25 section 803 to be contained in the housing plan;
111

S 225 RIS

1 ‘‘(B) are consistent with information and

2 data available to the Secretary; and

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

4 with any provision of this Act or any other ap5 plicable law.

6 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de7 termines under this subsection that any of the appro8 priate certifications required under section

9 803(c)(2)(E) are not included in a plan, the plan

10 shall be considered to be incomplete.

11 ‘‘(d) UPDATES TO PLAN.—

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

13 after a plan under section 803 has been submitted for

14 a fiscal year, the Director of the Department of Ha15 waiian Home Lands may comply with the provisions

16 of that section for any succeeding fiscal year (with re17 spect to information included for the 5-year period

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

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

20 regarding such changes as may be necessary to update

21 the plan previously submitted.

22 ‘‘(2) COMPLETE PLANS.—The Director shall sub23 mit a complete plan under section 803 not later than

24 4 years after submitting an initial plan under that
112

S 225 RIS

1 section, and not less frequently than every 4 years

2 thereafter.

3 ‘‘(e) EFFECTIVE DATE.—This section and section 803

4 shall take effect on the date provided by the Secretary pur5 suant to section 807(a) to provide for timely submission

6 and review of the housing plan as necessary for the provi7 sion of assistance under this title for fiscal year 2000.

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

9 STANDARDS.

10 ‘‘(a) PROGRAM INCOME.—

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

12 of Hawaiian Home Lands may retain any program

13 income that is realized from any grant amounts re14 ceived by the Department under this title if—

15 ‘‘(A) that income was realized after the ini16 tial disbursement of the grant amounts received

17 by the Department; and

18 ‘‘(B) the Director agrees to use the program

19 income for affordable housing activities in ac20 cordance with the provisions of this title.

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

22 The Secretary may not reduce the grant amount for

23 the Department of Hawaiian Home Lands based sole24 ly on—
113

S 225 RIS

1 ‘‘(A) whether the Department retains pro2 gram income under paragraph (1); or

3 ‘‘(B) the amount of any such program in4 come retained.

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

6 may, by regulation, exclude from consideration as

7 program income any amounts determined to be so

8 small that compliance with the requirements of this

9 subsection would create an unreasonable administra10 tive burden on the Department.

11 ‘‘(b) LABOR STANDARDS.—

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

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

14 shall contain—

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

16 not less than the wages prevailing in the locality,

17 as determined or adopted (subsequent to a deter18 mination under applicable State or local law) by

19 the Secretary, shall be paid to all architects,

20 technical engineers, draftsmen, technicians em21 ployed in the development and all maintenance,

22 and laborers and mechanics employed in the op23 eration, of the affordable housing project in24 volved; and
114

S 225 RIS

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

2 than the wages prevailing in the locality, as pre3 determined by the Secretary of Labor pursuant

4 to the Act commonly known as the ‘Davis-Bacon

5 Act’ (46 Stat. 1494, chapter 411; 40 U.S.C. 276a

6 et seq.) shall be paid to all laborers and mechan7 ics employed in the development of the affordable

8 housing involved.

9 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi10 sions relating to wages required under paragraph (1)

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

12 lease under this title, shall not apply to any indi13 vidual who performs the services for which the indi14 vidual volunteered and who is not otherwise employed

15 at any time in the construction work and received no

16 compensation or is paid expenses, reasonable benefits,

17 or a nominal fee for those services.

18 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

19 ‘‘(a) IN GENERAL.—

20 ‘‘(1) RELEASE OF FUNDS.—

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

22 carry out the alternative environmental protec23 tion procedures described in subparagraph (B)

24 in order to ensure—
115

S 225 RIS

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

2 Environmental Policy Act of 1969 (42

3 U.S.C. 4321 et seq.) and other provisions of

4 law that further the purposes of such Act

5 (as specified in regulations issued by the

6 Secretary) are most effectively implemented

7 in connection with the expenditure of grant

8 amounts provided under this title; and

9 ‘‘(ii) to the public undiminished pro10 tection of the environment.

11 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO12 TECTION PROCEDURE.—In lieu of applying envi13 ronmental protection procedures otherwise appli14 cable, the Secretary may by regulation provide

15 for the release of funds for specific projects to the

16 Department of Hawaiian Home Lands if the Di17 rector of the Department assumes all of the re18 sponsibilities for environmental review, decision19 making, and action under the National Environ20 mental Policy Act of 1969 (42 U.S.C. 4321 et

21 seq.), and such other provisions of law as the reg22 ulations of the Secretary specify, that would

23 apply to the Secretary were the Secretary to un24 dertake those projects as Federal projects.

25 ‘‘(2) REGULATIONS.—
116

S 225 RIS

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

2 issue regulations to carry out this section only

3 after consultation with the Council on Environ4 mental Quality.

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

6 under this paragraph shall—

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

8 environmental reviews performed under this

9 section;

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

11 facilitate training for the performance of

12 such reviews; and

13 ‘‘(iii) provide for the suspension or ter14 mination of the assumption of responsibil15 ities under this section.

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

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

18 shall not be construed to limit or reduce any responsi19 bility assumed by the Department of Hawaiian Home

20 Lands for grant amounts with respect to any specific

21 release of funds.

22 ‘‘(b) PROCEDURE.—

23 ‘‘(1) IN GENERAL.—The Secretary shall author24 ize the release of funds subject to the procedures under

25 this section only if, not less than 15 days before that
117

S 225 RIS

1 approval and before any commitment of funds to such

2 projects, the Director of the Department of Hawaiian

3 Home Lands submits to the Secretary a request for

4 such release accompanied by a certification that meets

5 the requirements of subsection (c).

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

7 the Secretary of a certification described in para8 graph (1) shall be deemed to satisfy the responsibil9 ities of the Secretary under the National Environ10 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

11 and such other provisions of law as the regulations of

12 the Secretary specify to the extent that those respon13 sibilities relate to the releases of funds for projects

14 that are covered by that certification.

15 ‘‘(c) CERTIFICATION.—A certification under the proce16 dures under this section shall—

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

18 ‘‘(2) be executed by the Director of the Depart19 ment of Hawaiian Home Lands;

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

21 Home Lands has fully carried out its responsibilities

22 as described under subsection (a); and

23 ‘‘(4) specify that the Director—

24 ‘‘(A) consents to assume the status of a re25 sponsible Federal official under the National En-
118

S 225 RIS

1 vironmental Policy Act of 1969 (42 U.S.C. 4321

2 et seq.) and each provision of law specified in

3 regulations issued by the Secretary to the extent

4 that those laws apply by reason of subsection (a);

5 and

6 ‘‘(B) is authorized and consents on behalf of

7 the Department of Hawaiian Home Lands and

8 the Director to accept the jurisdiction of the Fed9 eral courts for the purpose of enforcement of the

10 responsibilities of the Director of the Department

11 of Hawaiian Home Lands as such an official.

12 ‘‘SEC. 807. REGULATIONS.

13 ‘‘The Secretary shall issue final regulations necessary

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

15 ‘‘SEC. 808. EFFECTIVE DATE.

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

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

18 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

19 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI20 LIES.—

21 ‘‘(1) PRIMARY OBJECTIVE.—The national objec22 tives of this title are—

23 ‘‘(A) to assist and promote affordable hous24 ing activities to develop, maintain, and operate

25 affordable housing in safe and healthy environ-
119

S 225 RIS

1 ments for occupancy by low-income Native Ha2 waiian families;

3 ‘‘(B) to ensure better access to private mort4 gage markets and to promote self-sufficiency of

5 low-income Native Hawaiian families;

6 ‘‘(C) to coordinate activities to provide

7 housing for low-income Native Hawaiian fami8 lies with Federal, State and local activities to

9 further economic and community development;

10 ‘‘(D) to plan for and integrate infrastruc11 ture resources on the Hawaiian Home Lands

12 with housing development; and

13 ‘‘(E) to—

14 ‘‘(i) promote the development of private

15 capital markets; and

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

17 clause (i) to operate and grow, thereby bene18 fiting Native Hawaiian communities.

19 ‘‘(2) ELIGIBLE FAMILIES.—

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

21 under subparagraph (B), assistance for eligible

22 housing activities under this title shall be limited

23 to low-income Native Hawaiian families.

24 ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE25 MENT.—
120

S 225 RIS

1 ‘‘(i) IN GENERAL.—The Director may

2 provide assistance for homeownership ac3 tivities under—

4 ‘‘(I) section 810(b);

5 ‘‘(II) model activities under sec6 tion 810(f); or

7 ‘‘(III) loan guarantee activities

8 under section 184A of the Housing and

9 Community Development Act of 1992

10 to Native Hawaiian families who are

11 not low-income families, to the extent

12 that the Secretary approves the activi13 ties under that section to address a

14 need for housing for those families that

15 cannot be reasonably met without that

16 assistance.

17 ‘‘(ii) LIMITATIONS.—The Secretary

18 shall establish limitations on the amount of

19 assistance that may be provided under this

20 title for activities for families that are not

21 low-income families.

22 ‘‘(C) OTHER FAMILIES.—Notwithstanding

23 paragraph (1), the Director may provide housing

24 or housing assistance provided through affordable

25 housing activities assisted with grant amounts
121

S 225 RIS

1 under this title to a family that is not composed

2 of Native Hawaiians if—

3 ‘‘(i) the Department determines that

4 the presence of the family in the housing in5 volved is essential to the well-being of Na6 tive Hawaiian families; and

7 ‘‘(ii) the need for housing for the fam8 ily cannot be reasonably met without the

9 assistance.

10 ‘‘(D) PREFERENCE.—

11 ‘‘(i) IN GENERAL.—A housing plan

12 submitted under section 803 may authorize

13 a preference, for housing or housing assist14 ance provided through affordable housing

15 activities assisted with grant amounts pro16 vided under this title to be provided, to the

17 extent practicable, to families that are eligi18 ble to reside on the Hawaiian Home Lands.

19 ‘‘(ii) APPLICATION.—In any case in

20 which a housing plan provides for pref21 erence described in clause (i), the Director

22 shall ensure that housing activities that are

23 assisted with grant amounts under this title

24 are subject to that preference.
122

S 225 RIS

1 ‘‘(E) USE OF NONPROFIT ORGANIZA2 TIONS.—As a condition of receiving grant

3 amounts under this title, the Department of Ha4 waiian Home Lands, shall to the extent prac5 ticable, provide for private nonprofit organiza6 tions experienced in the planning and develop7 ment of affordable housing for Native Hawaiians

8 to carry out affordable housing activities with

9 those grant amounts.

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

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

12 under this section are activities conducted in accordance

13 with the requirements of section 811 to—

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

15 rental or homeownership; or

16 ‘‘(2) provide housing services with respect to af17 fordable housing, through the activities described in

18 subsection (b).

19 ‘‘(b) ACTIVITIES.—The activities described in this sub20 section are the following:

21 ‘‘(1) DEVELOPMENT.—The acquisition, new con22 struction, reconstruction, or moderate or substantial

23 rehabilitation of affordable housing, which may

24 include—

25 ‘‘(A) real property acquisition;
123

S 225 RIS

1 ‘‘(B) site improvement;

2 ‘‘(C) the development of utilities and utility

3 services;

4 ‘‘(D) conversion;

5 ‘‘(E) demolition;

6 ‘‘(F) financing;

7 ‘‘(G) administration and planning; and

8 ‘‘(H) other related activities.

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

10 housing-related services for affordable housing,

11 including—

12 ‘‘(A) housing counseling in connection with

13 rental or homeownership assistance;

14 ‘‘(B) the establishment and support of resi15 dent organizations and resident management

16 corporations;

17 ‘‘(C) energy auditing;

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

19 self-sufficiency and other services; and

20 ‘‘(E) other services related to assisting own21 ers, tenants, contractors, and other entities par22 ticipating or seeking to participate in other

23 housing activities assisted pursuant to this sec24 tion.
124

S 225 RIS

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

2 provision of management services for affordable hous3 ing, including—

4 ‘‘(A) the preparation of work specifications;

5 ‘‘(B) loan processing;

6 ‘‘(C) inspections;

7 ‘‘(D) tenant selection;

8 ‘‘(E) management of tenant-based rental as9 sistance; and

10 ‘‘(F) management of affordable housing

11 projects.

12 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI13 TIES.—The provision of safety, security, and law en14 forcement measures and activities appropriate to pro15 tect residents of affordable housing from crime.

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

17 under model programs that are—

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

19 this title; and

20 ‘‘(B) specifically approved by the Secretary

21 as appropriate for the purpose referred to in sub22 paragraph (A).

23 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

24 ‘‘(a) RENTS.—
125

S 225 RIS

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

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

3 this title, the Director shall develop written policies

4 governing rents and homebuyer payments charged for

5 dwelling units assisted under this title, including

6 methods by which such rents and homebuyer pay7 ments are determined.

8 ‘‘(2) MAXIMUM RENT.—In the case of any low9 income family residing in a dwelling unit assisted

10 with grant amounts under this title, the monthly rent

11 or homebuyer payment (as applicable) for that dwell12 ing unit may not exceed 30 percent of the monthly

13 adjusted income of that family.

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

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

16 amounts of any grants received under this title, re17 serve and use for operating under section 810 such

18 amounts as may be necessary to provide for the con19 tinued maintenance and efficient operation of such

20 housing.

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

22 subsection may not be construed to prevent the Direc23 tor, or any entity funded by the Department, from de24 molishing or disposing of housing, pursuant to regu25 lations established by the Secretary.
126

S 225 RIS

1 ‘‘(c) INSURANCE COVERAGE.—As a condition to receiv2 ing grant amounts under this title, the Director shall re3 quire adequate insurance coverage for housing units that

4 are owned or operated or assisted with grant amounts pro5 vided under this title.

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

7 receiving grant amounts under this title, the Director shall

8 develop written policies governing the eligibility, admission,

9 and occupancy of families for housing assisted with grant

10 amounts provided under this title.

11 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a condi12 tion to receiving grant amounts under this title, the Direc13 tor shall develop policies governing the management and

14 maintenance of housing assisted with grant amounts under

15 this title.

16 ‘‘SEC. 812. TYPES OF INVESTMENTS.

17 ‘‘(a) IN GENERAL.—Subject to section 811 and an ap18 plicable housing plan approved under section 803, the Di19 rector shall have—

20 ‘‘(1) the discretion to use grant amounts for af21 fordable housing activities through the use of—

22 ‘‘(A) equity investments;

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

24 ‘‘(C) noninterest-bearing loans or advances;

25 ‘‘(D) interest subsidies;
127

S 225 RIS

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

2 or

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

4 Secretary determines to be consistent with the

5 purposes of this title; and

6 ‘‘(2) the right to establish the terms of assistance

7 provided with funds referred to in paragraph (1).

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

9 amounts for the purposes of carrying out affordable housing

10 activities in investment securities and other obligations, as

11 approved by the Secretary.

12 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR13 GETING.

14 ‘‘(a) IN GENERAL.—Housing shall qualify for afford15 able housing for purposes of this title only if—

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

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

18 available for occupancy only by a family that is

19 a low-income family at the time of the initial oc20 cupancy of that family of that unit; and

21 ‘‘(B) in the case of housing for homeowner22 ship, is made available for purchase only by a

23 family that is a low-income family at the time

24 of purchase; and
128

S 225 RIS

1 ‘‘(2) each dwelling unit in the housing will re2 main affordable, according to binding commitments

3 satisfactory to the Secretary, for—

4 ‘‘(A) the remaining useful life of the prop5 erty (as determined by the Secretary) without re6 gard to the term of the mortgage or to transfer

7 of ownership; or

8 ‘‘(B) such other period as the Secretary de9 termines is the longest feasible period of time

10 consistent with sound economics and the pur11 poses of this title, except upon a foreclosure by

12 a lender (or upon other transfer in lieu of fore13 closure) if that action—

14 ‘‘(i) recognizes any contractual or legal

15 rights of any public agency, nonprofit spon16 sor, or other person or entity to take an ac17 tion that would—

18 ‘‘(I) avoid termination of low-in19 come affordability, in the case of fore20 closure; or

21 ‘‘(II) transfer ownership in lieu of

22 foreclosure; and

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

24 low-income affordability restrictions, as de25 termined by the Secretary.
129

S 225 RIS

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

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

3 considered affordable housing for purposes of this title.

4 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

5 ‘‘(a) LEASES.—Except to the extent otherwise provided

6 by or inconsistent with the laws of the State of Hawaii,

7 in renting dwelling units in affordable housing assisted

8 with grant amounts provided under this title, the Director,

9 owner, or manager shall use leases that—

10 ‘‘(1) do not contain unreasonable terms and con11 ditions;

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

13 maintain the housing in compliance with applicable

14 housing codes and quality standards;

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

16 give adequate written notice of termination of the

17 lease, which shall be the period of time required under

18 applicable State or local law;

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

20 eviction or termination, notwithstanding any State or

21 local law, a resident shall be informed of the oppor22 tunity, before any hearing or trial, to examine any

23 relevant documents, record, or regulations directly re24 lated to the eviction or termination;
130

S 225 RIS

1 ‘‘(5) require that the Director, owner, or man2 ager may not terminate the tenancy, during the term

3 of the lease, except for serious or repeated violation of

4 the terms and conditions of the lease, violation of ap5 plicable Federal, State, or local law, or for other good

6 cause; and

7 ‘‘(6) provide that the Director, owner, or man8 ager may terminate the tenancy of a resident for any

9 activity, engaged in by the resident, any member of

10 the household of the resident, or any guest or other

11 person under the control of the resident, that—

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

13 right to peaceful enjoyment of the premises by,

14 other residents or employees of the Department,

15 owner, or manager;

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

17 right to peaceful enjoyment of their premises by,

18 persons residing in the immediate vicinity of the

19 premises; or

20 ‘‘(C) is criminal activity (including drug21 related criminal activity) on or off the premises.

22 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a con23 dition to receiving grant amounts under this title, the Di24 rector shall adopt and use written tenant and homebuyer

25 selection policies and criteria that—
131

S 225 RIS

1 ‘‘(1) are consistent with the purpose of providing

2 housing for low-income families;

3 ‘‘(2) are reasonably related to program eligibility

4 and the ability of the applicant to perform the obliga5 tions of the lease; and

6 ‘‘(3) provide for—

7 ‘‘(A) the selection of tenants and home8 buyers from a written waiting list in accordance

9 with the policies and goals set forth in an appli10 cable housing plan approved under section 803;

11 and

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

13 any rejected applicant of the grounds for that re14 jection.

15 ‘‘SEC. 815. REPAYMENT.

16 ‘‘If the Department of Hawaiian Home Lands uses

17 grant amounts to provide affordable housing under activi18 ties under this title and, at any time during the useful life

19 of the housing, the housing does not comply with the re20 quirement under section 813(a)(2), the Secretary shall—

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

22 the Department by an amount equal to the grant

23 amounts used for that housing (under the authority

24 of section 819(a)(2)); or
132

S 225 RIS

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

2 amount equal to those grant amounts.

3 ‘‘SEC. 816. ANNUAL ALLOCATION.

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

5 amounts made available for assistance under this title for

6 the fiscal year, in accordance with the formula established

7 pursuant to section 817 to the Department of Hawaiian

8 Home Lands if the Department complies with the require9 ments under this title for a grant under this title.

10 ‘‘SEC. 817. ALLOCATION FORMULA.

11 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by regu12 lation issued not later than the expiration of the 6-month

13 period beginning on the date of enactment of the Native

14 American Housing Assistance and Self-Determination

15 Amendments of 1999, in the manner provided under section

16 807, establish a formula to provide for the allocation of

17 amounts available for a fiscal year for block grants under

18 this title in accordance with the requirements of this section.

19 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—The

20 formula under subsection (a) shall be based on factors that

21 reflect the needs for assistance for affordable housing activi22 ties, including—

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

24 owned or operated at the time pursuant to a contract

25 between the Director and the Secretary;
133

S 225 RIS

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

2 and the number of Native Hawaiian families eligible

3 to reside on the Hawaiian Home Lands; and

4 ‘‘(3) any other objectively measurable conditions

5 that the Secretary and the Director may specify.

6 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es7 tablishing the formula under subsection (a), the Secretary

8 shall consider the relative administrative capacities of the

9 Department of Hawaiian Home Lands and other challenges

10 faced by the Department, including—

11 ‘‘(1) geographic distribution within Hawaiian

12 Home Lands; and

13 ‘‘(2) technical capacity.

14 ‘‘(d) EFFECTIVE DATE.—This section shall take effect

15 on the date of enactment of the Native American Housing

16 Assistance and Self-Determination Amendments of 1999.

17 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

18 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

19 AMOUNTS.—

20 ‘‘(1) IN GENERAL.—Except as provided in sub21 section (b), if the Secretary finds after reasonable no22 tice and opportunity for a hearing that the Depart23 ment of Hawaiian Home Lands has failed to comply

24 substantially with any provision of this title, the Sec25 retary shall—
134

S 225 RIS

1 ‘‘(A) terminate payments under this title to

2 the Department;

3 ‘‘(B) reduce payments under this title to the

4 Department by an amount equal to the amount

5 of such payments that were not expended in ac6 cordance with this title; or

7 ‘‘(C) limit the availability of payments

8 under this title to programs, projects, or activi9 ties not affected by such failure to comply.

10 ‘‘(2) ACTIONS.—If the Secretary takes an action

11 under subparagraph (A), (B), or (C) of paragraph

12 (1), the Secretary shall continue that action until the

13 Secretary determines that the failure by the Depart14 ment to comply with the provision has been remedied

15 by the Department and the Department is in compli16 ance with that provision.

17 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL IN18 CAPACITY.—The Secretary may provide technical assistance

19 for the Department, either directly or indirectly, that is de20 signed to increase the capability and capacity of the Direc21 tor of the Department to administer assistance provided

22 under this title in compliance with the requirements under

23 this title if the Secretary makes a finding under subsection

24 (a), but determines that the failure of the Department to

25 comply substantially with the provisions of this title—
135

S 225 RIS

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

2 constituting willful noncompliance; and

3 ‘‘(2) is a result of the limited capability or ca4 pacity of the Department of Hawaiian Home Lands.

5 ‘‘(c) REFERRAL FOR CIVIL ACTION.—

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

7 any action that the Secretary may take under sub8 section (a), if the Secretary has reason to believe that

9 the Department of Hawaiian Home Lands has failed

10 to comply substantially with any provision of this

11 title, the Secretary may refer the matter to the Attor12 ney General of the United States with a recommenda13 tion that an appropriate civil action be instituted.

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

15 under paragraph (1), the Attorney General may bring

16 a civil action in any United States district court of

17 appropriate jurisdiction for such relief as may be ap18 propriate, including an action—

19 ‘‘(A) to recover the amount of the assistance

20 furnished under this title that was not expended

21 in accordance with this title; or

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

23 ‘‘(d) REVIEW.—

24 ‘‘(1) IN GENERAL.—If the Director receives no25 tice under subsection (a) of the termination, reduc-
136

S 225 RIS

1 tion, or limitation of payments under this Act, the

2 Director—

3 ‘‘(A) may, not later than 60 days after re4 ceiving such notice, file with the United States

5 Court of Appeals for the Ninth Circuit, or in the

6 United States Court of Appeals for the District

7 of Columbia, a petition for review of the action

8 of the Secretary; and

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

10 subparagraph (A), shall forthwith transmit cop11 ies of the petition to the Secretary and the Attor12 ney General of the United States, who shall rep13 resent the Secretary in the litigation.

14 ‘‘(2) PROCEDURE.—

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

16 in the court a record of the proceeding on which

17 the Secretary based the action, as provided in

18 section 2112 of title 28, United States Code.

19 ‘‘(B) OBJECTIONS.—No objection to the ac20 tion of the Secretary shall be considered by the

21 court unless the Department has registered the

22 objection before the Secretary.

23 ‘‘(3) DISPOSITION.—

24 ‘‘(A) COURT PROCEEDINGS.—
137

S 225 RIS

1 ‘‘(i) JURISDICTION OF COURT.—The

2 court shall have jurisdiction to affirm or

3 modify the action of the Secretary or to set

4 the action aside in whole or in part.

5 ‘‘(ii) FINDINGS OF FACT.—If supported

6 by substantial evidence on the record con7 sidered as a whole, the findings of fact by

8 the Secretary shall be conclusive.

9 ‘‘(iii) ADDITION.—The court may

10 order evidence, in addition to the evidence

11 submitted for review under this subsection,

12 to be taken by the Secretary, and to be

13 made part of the record.

14 ‘‘(B) SECRETARY.—

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

16 reason of the additional evidence referred to

17 in subparagraph (A) and filed with the

18 court—

19 ‘‘(I) may—

20 ‘‘(aa) modify the findings of

21 fact of the Secretary; or

22 ‘‘(bb) make new findings;

23 and

24 ‘‘(II) shall file—
138

S 225 RIS

1 ‘‘(aa) such modified or new

2 findings; and

3 ‘‘(bb) the recommendation of

4 the Secretary, if any, for the

5 modification or setting aside of

6 the original action of the Sec7 retary.

8 ‘‘(ii) FINDINGS.—The findings referred

9 to in clause (i)(II)(bb) shall, with respect to

10 a question of fact, be considered to be con11 clusive if those findings are—

12 ‘‘(I) supported by substantial evi13 dence on the record; and

14 ‘‘(II) considered as a whole.

15 ‘‘(4) FINALITY.—

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

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

18 under this subsection with the court—

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

20 be exclusive; and

21 ‘‘(ii) the judgment of the court shall be

22 final.

23 ‘‘(B) REVIEW BY SUPREME COURT.—A

24 judgment under subparagraph (A) shall be sub25 ject to review by the Supreme Court of the
139

S 225 RIS

1 United States upon writ of certiorari or certifi2 cation, as provided in section 1254 of title 28,

3 United States Code.

4 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

5 ‘‘(a) ENFORCEABLE AGREEMENTS.—

6 ‘‘(1) IN GENERAL.—The Director, through bind7 ing contractual agreements with owners or other au8 thorized entities, shall ensure long-term compliance

9 with the provisions of this title.

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

11 paragraph (1) shall provide for—

12 ‘‘(A) to the extent allowable by Federal and

13 State law, the enforcement of the provisions of

14 this title by the Department and the Secretary;

15 and

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

17 referred to in paragraph (1).

18 ‘‘(b) PERIODIC MONITORING.—

19 ‘‘(1) IN GENERAL.—Not less frequently than an20 nually, the Director shall review the activities con21 ducted and housing assisted under this title to assess

22 compliance with the requirements of this title.

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

24 (1) shall include onsite inspection of housing to deter25 mine compliance with applicable requirements.
140

S 225 RIS

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

2 paragraph (1) shall be—

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

4 the Director submitted to the Secretary under

5 section 820; and

6 ‘‘(B) made available to the public.

7 ‘‘(c) PERFORMANCE MEASURES.—The Secretary shall

8 establish such performance measures as may be necessary

9 to assess compliance with the requirements of this title.

10 ‘‘SEC. 820. PERFORMANCE REPORTS.

11 ‘‘(a) REQUIREMENT.—For each fiscal year, the Direc12 tor shall—

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

14 made during that fiscal year in carrying out the

15 housing plan submitted by the Department under sec16 tion 803; and

17 ‘‘(2) submit a report to the Secretary (in a form

18 acceptable to the Secretary) describing the conclusions

19 of the review.

20 ‘‘(b) CONTENT.—Each report submitted under this sec21 tion for a fiscal year shall—

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

23 to the Department of Hawaiian Home Lands for that

24 fiscal year;
141

S 225 RIS

1 ‘‘(2) assess the relationship of the use referred to

2 in paragraph (1) to the goals identified in the hous3 ing plan;

4 ‘‘(3) indicate the programmatic accomplishments

5 of the Department; and

6 ‘‘(4) describe the manner in which the Depart7 ment would change its housing plan submitted under

8 section 803 as a result of its experiences.

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

10 ‘‘(1) establish a date for submission of each re11 port under this section;

12 ‘‘(2) review each such report; and

13 ‘‘(3) with respect to each such report, make rec14 ommendations as the Secretary considers appropriate

15 to carry out the purposes of this title.

16 ‘‘(d) PUBLIC AVAILABILITY.—

17 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre18 paring a report under this section, the Director shall

19 make the report publicly available to the beneficiaries

20 of the Hawaiian Homes Commission Act, 1920 (42

21 Stat. 108 et seq.) and give a sufficient amount of time

22 to permit those beneficiaries to comment on that re23 port before it is submitted to the Secretary (in such

24 manner and at such time as the Director may deter25 mine).
142

S 225 RIS

1 ‘‘(2) SUMMARY OF COMMENTS.—The report shall

2 include a summary of any comments received by the

3 Director from beneficiaries under paragraph (1) re4 garding the program to carry out the housing plan.

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

6 ‘‘(a) ANNUAL REVIEW.—

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

8 frequently than on an annual basis, make such re9 views and audits as may be necessary or appropriate

10 to determine whether—

11 ‘‘(A) the Director has—

12 ‘‘(i) carried out eligible activities

13 under this title in a timely manner;

14 ‘‘(ii) carried out and made certifi15 cations in accordance with the requirements

16 and the primary objectives of this title and

17 with other applicable laws; and

18 ‘‘(iii) a continuing capacity to carry

19 out the eligible activities in a timely man20 ner;

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

22 housing plan submitted by the Director under

23 section 803; and

24 ‘‘(C) the performance reports of the Depart25 ment under section 821 are accurate.
143

S 225 RIS

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

2 under this section shall, to the extent practicable, in3 clude onsite visits by employees of the Department of

4 Housing and Urban Development.

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

6 give the Department of Hawaiian Home Lands not less

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

8 this subsection. After taking into consideration the com9 ments of the Department, the Secretary may revise the re10 port and shall make the comments of the Department and

11 the report with any revisions, readily available to the public

12 not later than 30 days after receipt of the comments of the

13 Department.

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

15 appropriate adjustments in the amount of annual grants

16 under this title in accordance with the findings of the Sec17 retary pursuant to reviews and audits under this section.

18 The Secretary may adjust, reduce, or withdraw grant

19 amounts, or take other action as appropriate in accordance

20 with the reviews and audits of the Secretary under this sec21 tion, except that grant amounts already expended on afford22 able housing activities may not be recaptured or deducted

23 from future assistance provided to the Department of Ha24 waiian Home Lands.
144

S 225 RIS

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

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

3 Department of Hawaiian Home Lands involving grant

4 amounts under this title relate to amounts provided under

5 this title, those transactions may be audited by the Comp6 troller General of the United States under such regulations

7 as may be prescribed by the Comptroller General. The

8 Comptroller General of the United States shall have access

9 to all books, accounts, records, reports, files, and other pa10 pers, things, or property belonging to or in use by the De11 partment of Hawaiian Home Lands pertaining to such fi12 nancial transactions and necessary to facilitate the audit.

13 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

15 conclusion of each fiscal year in which assistance under this

16 title is made available, the Secretary shall submit to Con17 gress a report that contains—

18 ‘‘(1) a description of the progress made in ac19 complishing the objectives of this title;

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

21 under this title during the preceding fiscal year; and

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

23 loan guarantees under section 184A of the Housing

24 and Community Development Act of 1992.

25 ‘‘(b) RELATED REPORTS.—The Secretary may require

26 the Director to submit to the Secretary such reports and
145

S 225 RIS

1 other information as may be necessary in order for the Sec2 retary to prepare the report required under subsection (a).

3 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There are authorized to be appropriated to the De5 partment of Housing and Urban Development for grants

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

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

8 SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUS9 ING.

10 Subtitle E of title I of the Housing and Community

11 Development Act of 1992 is amended by inserting after sec12 tion 184 (12 U.S.C. 1715z–13a) the following:

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

14 HOUSING.

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

16 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS.—

17 The term ‘Department of Hawaiian Home Lands’

18 means the agency or department of the government of

19 the State of Hawaii that is responsible for the admin20 istration of the Hawaiian Homes Commission Act,

21 1920 (42 Stat. 108 et seq.).

22 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti23 ty’ means a Native Hawaiian family, the Department

24 of Hawaiian Home Lands, the Office of Hawaiian

25 Affairs, and private nonprofit or private for-profit or-
146

S 225 RIS

1 ganizations experienced in the planning and develop2 ment of affordable housing for Native Hawaiians.

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

4 more persons maintaining a household, as the Sec5 retary shall by regulation provide.

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

7 Fund’ means the Native Hawaiian Housing Loan

8 Guarantee Fund established under subsection (i).

9 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha10 waiian Home Lands’ means lands that—

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

12 Lands under section 204 of the Hawaiian Homes

13 Commission Act (42 Stat. 110); or

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

15 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native Ha16 waiian’ 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
147

S 225 RIS

1 ‘‘(iii) birth records of the State of Ha2 waii.

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

4 ‘Office of Hawaiian Affairs’ means the entity of that

5 name established under the constitution of the State

6 of Hawaii.

7 ‘‘(b) AUTHORITY.—To provide access to sources of pri8 vate financing to Native Hawaiian families who otherwise

9 could not acquire housing financing because of the unique

10 legal status of the Hawaiian Home Lands or as a result

11 of a lack of access to private financial markets, the Sec12 retary may guarantee an amount not to exceed 100 percent

13 of the unpaid principal and interest that is due on an eligi14 ble loan under subsection (b).

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

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

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

19 only to a borrower who is—

20 ‘‘(A) a Native Hawaiian family;

21 ‘‘(B) the Department of Hawaiian Home

22 Lands;

23 ‘‘(C) the Office of Hawaiian Affairs; or
148

S 225 RIS

1 ‘‘(D) a private nonprofit organization expe2 rienced in the planning and development of af3 fordable housing for Native Hawaiians.

4 ‘‘(2) ELIGIBLE HOUSING.—

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

6 to construct, acquire, or rehabilitate not more

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

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

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

13 that—

14 ‘‘(i) has been submitted and approved

15 by the Secretary under section 803 of the

16 Native American Housing Assistance and

17 Self-Determination Amendments of 1999;

18 and

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

22 Home Lands.

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

24 any collateral authorized under applicable Federal or

25 State law.
149

S 225 RIS

1 ‘‘(4) LENDERS.—

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

3 only by a lender approved by, and meeting

4 qualifications established by, the Secretary, in5 cluding any lender described in subparagraph

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

7 guaranteed by an agency of the Federal Govern8 ment or made by the Department of Hawaiian

9 Home Lands from amounts borrowed from the

10 United States shall not be eligible for a guar11 antee under this section.

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

13 shall be considered to be lenders that have been

14 approved by the Secretary:

15 ‘‘(i) Any mortgagee approved by the

16 Secretary for participation in the single

17 family mortgage insurance program under

18 title II of the National Housing Act (12

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

20 ‘‘(ii) Any lender that makes housing

21 loans under chapter 37 of title 38, United

22 States Code, that are automatically guaran23 teed under section 3702(d) of title 38,

24 United States Code.
150

S 225 RIS

1 ‘‘(iii) Any lender approved by the Sec2 retary of Agriculture to make guaranteed

3 loans for single family housing under the

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

5 seq.).

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

8 any agency of the Federal Government.

9 ‘‘(5) TERMS.—The loan shall—

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

11 years;

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

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

15 borrower and the lender and determined by the

16 Secretary to be reasonable, but not to exceed the

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

19 not guaranteed or insured by any agency or in20 strumentality of the Federal Government;

21 ‘‘(C) involve a principal obligation not

22 exceeding—

23 ‘‘(i) 97.75 percent of the appraised

24 value of the property as of the date the loan

25 is accepted for guarantee (or 98.75 percent
151

S 225 RIS

1 if the value of the property is $50,000 or

2 less); or

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

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

6 property—

7 ‘‘(i) in cash or its equivalent; or

8 ‘‘(ii) through the value of any improve9 ments to the property made through the

10 skilled or unskilled labor of the borrower, as

11 the Secretary shall provide.

12 ‘‘(d) CERTIFICATE OF GUARANTEE.—

13 ‘‘(1) APPROVAL PROCESS.—

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

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

17 the loan to the Secretary for examination.

18 ‘‘(B) APPROVAL.—If the Secretary approves

19 the application submitted under subparagraph

20 (A), the Secretary shall issue a certificate under

21 this subsection as evidence of the loan guarantee

22 approved.

23 ‘‘(2) STANDARD FOR APPROVAL.—The Secretary

24 may approve a loan for guarantee under this section

25 and issue a certificate under this subsection only if
152

S 225 RIS

1 the Secretary determines that there is a reasonable

2 prospect of repayment of the loan.

3 ‘‘(3) EFFECT.—

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

8 and the amount of that guarantee.

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

10 in subparagraph (A) shall be incontestable in the

11 hands of the bearer.

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

13 faith and credit of the United States is pledged

14 to the payment of all amounts agreed to be paid

15 by the Secretary as security for the obligations

16 made by the Secretary under this section.

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

18 subsection may not be construed—

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

21 on fraud or material misrepresentation; or

22 ‘‘(B) to bar the Secretary from establishing

23 by regulations that are on the date of issuance

24 or disbursement, whichever is earlier, partial de25 fenses to the amount payable on the guarantee.
153

S 225 RIS

1 ‘‘(e) GUARANTEE FEE.—

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

3 collect a guarantee fee for the guarantee of a loan

4 under this section, which may not exceed the amount

5 equal to 1 percent of the principal obligation of the

6 loan.

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

8 shall—

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

10 issuance of the guarantee; and

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

12 the Secretary, to cover expenses and probable

13 losses.

14 ‘‘(3) DEPOSIT.—The Secretary shall deposit any

15 fees collected under this subsection in the Native Ha16 waiian Housing Loan Guarantee Fund established

17 under subsection (j).

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

19 under a guarantee provided under this section shall de20 crease or increase on a pro rata basis according to any de21 crease or increase in the amount of the unpaid obligation

22 under the provisions of the loan agreement involved.

23 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwithstanding

24 any other provision of law, any loan guaranteed under this

25 section, including the security given for the loan, may be
154

S 225 RIS

1 sold or assigned by the lender to any financial institution

2 subject to examination and supervision by an agency of the

3 Federal Government or of any State or the District of Co4 lumbia.

5 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

6 MONEY PENALTIES.—

7 ‘‘(1) IN GENERAL.—

8 ‘‘(A) GROUNDS FOR ACTION.—The Sec9 retary may take action under subparagraph (B)

10 if the Secretary determines that any lender or

11 holder of a guarantee certificate under subsection

12 (c)—

13 ‘‘(i) has failed—

14 ‘‘(I) to maintain adequate ac15 counting records;

16 ‘‘(II) to service adequately loans

17 guaranteed under this section; or

18 ‘‘(III) to exercise proper credit or

19 underwriting judgment; or

20 ‘‘(ii) has engaged in practices other21 wise detrimental to the interest of a bor22 rower or the United States.

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

24 the Secretary that a holder of a guarantee certifi25 cate under subsection (c) has failed to carry out
155

S 225 RIS

1 an activity described in subparagraph (A)(i) or

2 has engaged in practices described in subpara3 graph (A)(ii), the Secretary may—

4 ‘‘(i) refuse, either temporarily or per5 manently, to guarantee any further loans

6 made by such lender or holder;

7 ‘‘(ii) bar such lender or holder from ac8 quiring additional loans guaranteed under

9 this section; and

10 ‘‘(iii) require that such lender or holder

11 assume not less than 10 percent of any loss

12 on further loans made or held by the lender

13 or holder that are guaranteed under this

14 section.

15 ‘‘(2) CIVIL MONEY PENALTIES FOR INTENTIONAL

16 VIOLATIONS.—

17 ‘‘(A) IN GENERAL.—The Secretary may im18 pose a civil monetary penalty on a lender or

19 holder of a guarantee certificate under subsection

20 (d) if the Secretary determines that the holder or

21 lender has intentionally failed—

22 ‘‘(i) to maintain adequate accounting

23 records;

24 ‘‘(ii) to adequately service loans guar25 anteed under this section; or
156

S 225 RIS

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 Housing

7 Act (12 U.S.C.A. 1735f–1) with respect to mort8 gagees 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 not

12 refuse to pay a lender or holder of a valid guarantee

13 on that loan, without regard to whether the lender or

14 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 notice

22 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 entitled
157

S 225 RIS

1 to payment under the guarantee (subject to

2 the provisions of this section) and may pro3 ceed to obtain payment in 1 of the following

4 manners:

5 ‘‘(I) FORECLOSURE.—

6 ‘‘(aa) IN GENERAL.—The

7 holder of the certificate may ini8 tiate foreclosure proceedings (after

9 providing written notice of that

10 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, the

16 Secretary shall pay to the holder

17 of the certificate the pro rata por18 tion of the amount guaranteed (as

19 determined pursuant to subsection

20 (f)) plus reasonable fees and ex21 penses as approved by the Sec22 retary.

23 ‘‘(cc) SUBROGATION.—The

24 rights of the Secretary shall be

25 subrogated to the rights of the
158

S 225 RIS

1 holder of the guarantee. The hold2 er shall assign the obligation and

3 security to the Secretary.

4 ‘‘(II) NO FORECLOSURE.—

5 ‘‘(aa) IN GENERAL.—Without

6 seeking foreclosure (or in any case

7 in which a foreclosure proceeding

8 initiated under clause (i) con9 tinues for a period in excess of 1

10 year), the holder of the guarantee

11 may submit to the Secretary a re12 quest to assign the obligation and

13 security interest to the Secretary

14 in return for payment of the

15 claim under the guarantee. The

16 Secretary may accept assignment

17 of the loan if the Secretary deter18 mines that the assignment is in

19 the best interest of the United

20 States.

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

23 to the holder of the guarantee the

24 pro rata portion of the amount
159

S 225 RIS

1 guaranteed (as determined under

2 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 hold7 er shall assign the obligation and

8 security to the Secretary.

9 ‘‘(B) REQUIREMENTS.—Before any pay10 ment under a guarantee is made under subpara11 graph (A), the holder of the guarantee shall ex12 haust all reasonable possibilities of collection.

13 Upon payment, in whole or in part, to the hold14 er, the note or judgment evidencing the debt shall

15 be assigned to the United States and the holder

16 shall have no further claim against the borrower

17 or the United States. The Secretary shall then

18 take such action to collect as the Secretary deter19 mines 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 Sec25 retary shall only pursue liquidation after offer-
160

S 225 RIS

1 ing to transfer the account to another eligible

2 Hawaiian family or the Department of Hawai3 ian Home Lands.

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

5 under subparagraph (A), the mortgagee or the

6 Secretary subsequently proceeds to liquidate the

7 account, the mortgagee or the Secretary shall not

8 sell, transfer, or otherwise dispose of or alienate

9 the property described in subparagraph (A) ex10 cept to another eligible Hawaiian family or to

11 the Department of Hawaiian Home Lands.

12 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE FUND.—

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

14 the Treasury of the United States the Hawaiian

15 Housing Loan Guarantee Fund for the purpose of

16 providing loan guarantees under this section.

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

18 credited with—

19 ‘‘(A) any amount, claims, notes, mortgages,

20 contracts, and property acquired by the Sec21 retary under this section, and any collections

22 and proceeds therefrom;

23 ‘‘(B) any amounts appropriated pursuant

24 to paragraph (7);
161

S 225 RIS

1 ‘‘(C) any guarantee fees collected under sub2 section (d); and

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

4 invested under paragraph (4).

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

6 shall be available, to the extent provided in appro7 priations Acts, for—

8 ‘‘(A) fulfilling any obligations of the Sec9 retary with respect to loans guaranteed under

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

11 defined in section 502 of the Federal Credit Re12 form Act of 1990 (2 U.S.C. 661a)) of such loans;

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

14 expenses necessary to make fiscal adjustment in

15 connection with the application and transmittal

16 of collections, and other expenses and advances to

17 protect the Secretary for loans which are guaran18 teed under this section or held by the Secretary;

19 ‘‘(C) acquiring such security property at

20 foreclosure sales or otherwise;

21 ‘‘(D) paying administrative expenses in

22 connection with this section; and

23 ‘‘(E) reasonable and necessary costs of reha24 bilitation and repair to properties that the Sec25 retary holds or owns pursuant to this section.
162

S 225 RIS

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 APPROPRIATIONS.—

9 The authority of the Secretary to enter into com10 mitments to guarantee loans under this section

11 shall be effective for any fiscal year to the extent,

12 or in such amounts as are, or have been, pro13 vided in appropriations Acts, without regard to

14 the fiscal year for which such amounts were ap15 propriated.

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
163

S 225 RIS

1 amounts appropriated pursuant to this subpara2 graph shall remain available until expended.

3 ‘‘(C) LIMITATION ON OUTSTANDING AGGRE4 GATE PRINCIPAL AMOUNT.—Subject to the limi5 tations in subparagraphs (A) and (B), the Sec6 retary may enter into commitments to guarantee

7 loans under this section for each of fiscal years

8 2000, 2001, 2002, 2003, and 2004 with an ag9 gregate outstanding principal amount not ex10 ceeding $100,000,000 for each such fiscal year.

11 ‘‘(6) LIABILITIES.—All liabilities and obligations

12 of the assets credited to the Guarantee Fund under

13 paragraph (2)(A) shall be liabilities and obligations

14 of the Guarantee Fund.

15 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

16 There are authorized to be appropriated to the Guar17 antee Fund to carry out this section such sums as

18 may be necessary for each of fiscal years 2000, 2001,

19 2002, 2003, and 2004.

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

21 ‘‘(1) IN GENERAL.—The Secretary shall, by regu22 lation, establish housing safety and quality standards

23 to be applied for use under this section.

24 ‘‘(2) STANDARDS.—The standards referred to in

25 paragraph (1) shall—
164

S 225 RIS

1 ‘‘(A) provide sufficient flexibility to permit

2 the use of various designs and materials in hous3 ing acquired with loans guaranteed under this

4 section; and

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

6 housing acquired in the manner described in

7 subparagraph (A) to—

8 ‘‘(i) be decent, safe, sanitary, and mod9 est in size and design;

10 ‘‘(ii) conform with applicable general

11 construction standards for the region in

12 which the housing is located;

13 ‘‘(iii) contain a plumbing system

14 that—

15 ‘‘(I) uses a properly installed sys16 tem of piping;

17 ‘‘(II) includes a kitchen sink and

18 a partitional bathroom with lavatory,

19 toilet, and bath or shower; and

20 ‘‘(III) uses water supply, plumb21 ing, and sewage disposal systems that

22 conform to any minimum standards

23 established by the applicable county or

24 State;
165

S 225 RIS

1 ‘‘(iv) contain an electrical system

2 using wiring and equipment properly in3 stalled to safely supply electrical energy for

4 adequate lighting and for operation of ap5 pliances that conforms to any appropriate

6 county, State, or national code;

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

8 under the applicable locally adopted stand9 ards for size of dwelling units, except that

10 the Secretary, upon request of the Depart11 ment of Hawaiian Home Lands may waive

12 the size requirements under this paragraph;

13 and

14 ‘‘(vi) conform with the energy perform15 ance requirements for new construction es16 tablished by the Secretary under section

17 526(a) of the National Housing Act (12

18 U.S.C.A. 1735f–4), unless the Secretary de19 termines that the requirements are not ap20 plicable.

21 ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—To

22 the extent that the requirements of title VI of the Civil

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

24 of the Act popularly known as the ‘Civil Rights Act of 1968’

25 (42 U.S.C.A. 3601 et seq.) apply to a guarantee provided
166

S 225 RIS

1 under this subsection, nothing in the requirements con2 cerning discrimination on the basis of race shall be con3 strued to prevent the provision of the guarantee to an eligi4 ble entity on the basis that the entity serves Native Hawai5 ian families or is a Native Hawaiian family.’’.

Æ