106TH CONGRESS
2D SESSION
H. R. 1776
AN ACT
To expand homeownership in the United States.
106TH CONGRESS
2D SESSION
H. R. 1776
AN ACT
To expand homeownership in the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘American Homeownership and Economic Opportunity
Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.
TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
Sec. 101. Short title.
Sec. 102. Housing impact analysis.
Sec. 103. Grants for regulatory barrier removal strategies.
Sec. 104. Eligibility for community development block grants.
Sec. 105. Regulatory barriers clearinghouse.
TITLE II—HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE
AND LOAN GUARANTEES
Sec. 201. Extension of loan term for manufactured home lots.
Sec. 202. Downpayment simplification.
Sec. 203. Reduced downpayment requirements for loans for teachers and uni-
formed municipal employees.
Sec. 204. Preventing fraud in rehabilitation loan program.
Sec. 205. Community partners next door program.
Sec. 206. Risk-sharing demonstration.
Sec. 207. Hybrid ARMs.
Sec. 208. Home equity conversion mortgages.
Sec. 209. Law enforcement officer homeownership pilot program.
Sec. 210. Study of mandatory inspection requirement under single family hous-
ing mortgage insurance program.
Sec. 211. Report on title I home improvement loan program.
Sec. 212. Sense of the Congress regarding making properties available for
homeownership programs.
Sec. 213. Property improvement loan limit for single-family homes.
TITLE III—SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled families.
Sec. 303. Funding for pilot programs.
TITLE IV—COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Public services cap.
Sec. 404. Homeownership for municipal employees.
Sec. 405. Technical amendment relating to brownfields.
Sec. 406. Income eligibility.
Sec. 407. Housing opportunities for persons with AIDS.
Sec. 408. Prohibition on use of amounts to acquire church property.
Sec. 409. CDBG special purpose grants.
TITLE V—HOME INVESTMENT PARTNERSHIPS PROGRAM
Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing associa-
tions.
Sec. 503. Administrative costs.
Sec. 504. Leveraging affordable housing investment through local loan pools.
Sec. 505. Homeownership for municipal employees.
Sec. 506. Use of section 8 assistance by ‘‘grand-families’’ to rent dwelling units
in assisted projects.
Sec. 507. Loan guarantees.
Sec. 508. Downpayment assistance for 2- and 3-family residences.
TITLE VI—LOCAL HOMEOWNERSHIP INITIATIVES
Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.
Sec. 602. Homeownership zones.
Sec. 603. Lease-to-own.
Sec. 604. Local capacity building.
Sec. 605. Consolidated application and planning requirement and super-NOFA.
Sec. 606. Assistance for self-help housing providers.
Sec. 607. Housing counseling organizations.
Sec. 608. Community lead information centers and lead-safe housing.
Sec. 609. Grant eligibility of community organizations.
TITLE VII—NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A—Native American Housing
Sec. 701. Lands title report commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.
Subtitle B—Native Hawaiian Housing
Sec. 721. Short title.
Sec. 722. Findings.
Sec. 723. Housing assistance.
Sec. 724. Loan guarantees.
TITLE VIII—TRANSFER OF HUD-HELD HOUSING TO LOCAL
GOVERNMENTS AND NONPROFIT ORGANIZATIONS
Sec. 801. Transfer of unoccupied and substandard HUD-held housing to local
governments and community development corporations.
Sec. 802. Transfer of HUD assets in revitalization areas.
TITLE IX—PRIVATE MORTGAGE INSURANCE CANCELLATION AND
TERMINATION
Sec. 901. Short title.
Sec. 902. Changes in amortization schedule.
Sec. 903. Deletion of ambiguous references to residential mortgages.
Sec. 904. Cancellation rights after cancellation date.
Sec. 905. Clarification of cancellation and termination issues and lender paid
mortgage insurance disclosure requirements.
Sec. 906. Definitions.
TITLE X—RURAL HOUSING HOMEOWNERSHIP
Sec. 1001. Promissory note requirement under housing repair loan program.
Sec. 1002. Limited partnership eligibility for farm labor housing loans.
Sec. 1003. Project accounting records and practices.
Sec. 1004. Definition of rural area.
Sec. 1005. Operating assistance for migrant farmworkers projects.
Sec. 1006. Multifamily rental housing loan guarantee program.
Sec. 1007. Enforcement provisions.
Sec. 1008. Amendments to title 18 of United States Code.
TITLE XI—MANUFACTURED HOUSING IMPROVEMENT
Sec. 1101. Short title and references.
Sec. 1102. Findings and purposes.
Sec. 1103. Definitions.
Sec. 1104. Federal manufactured home construction and safety standards.
Sec. 1105. Abolishment of National Manufactured Home Advisory Council;
manufactured home installation.
Sec. 1106. Public information.
Sec. 1107. Research, testing, development, and training.
Sec. 1108. Prohibited acts.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.
TITLE XII—PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION
PROGRAM
Sec. 1201. Eligible public housing agencies.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the priorities of our Nation should include
expanding homeownership opportunities by providing
access to affordable housing that is safe, clean, and
healthy;
(2) our Nation has an abundance of conven-
tional capital sources available for homeownership fi-
nancing;
(3) experience with local homeownership pro-
grams has shown that if flexible capital sources are
available, communities possess ample will and cre-
ativity to provide opportunities uniquely designed to
assist their citizens in realizing the American dream
of homeownership; and
(4) each consumer should be afforded every rea-
sonable opportunity to access mortgage credit, to ob-
tain the lowest cost mortgages for which the con-
sumer can qualify, to know the true cost of the
mortgage, to be free of regulatory burdens, and to
know what factors underlie a lender’s decision re-
garding the consumer’s mortgage.
(b) PURPOSE.—It is the purpose of this Act—
(1) to encourage and facilitate homeownership
by families in the United States who are not other-
wise able to afford homeownership; and
(2) to expand homeownership through policies
that—
(A) promote the ability of the private sec-
tor to produce affordable housing without exces-
sive government regulation;
(B) encourage tax incentives, such as the
mortgage interest deduction, at all levels of gov-
ernment; and
(C) facilitate the availability of flexible
capital for homeownership opportunities and
provide local governments with increased flexi-
bility under existing Federal programs to facili-
tate homeownership.
TITLE 
I—REMOVAL 
OF 
BAR-
RIERS TO HOUSING AFFORD-
ABILITY
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Housing Affordability
Barrier Removal Act of 2000’’.
SEC. 102. HOUSING IMPACT ANALYSIS.
(a) APPLICABILITY.—Except as provided in sub-
section (b), the requirements of this section shall apply
with respect to—
(1) any proposed rule, unless the agency pro-
mulgating the rule—
(A) has certified that the proposed rule
will not, if given force or effect as a final rule,
have a significant deleterious impact on housing
affordability; and
(B) has caused such certification to be
published in the Federal Register at the time of
publication of general notice of proposed rule-
making for the rule, together with a statement
providing the factual basis for the certification;
and
(2) any final rule, unless the agency promul-
gating the rule—
(A) has certified that the rule will not, if
given force or effect, have a significant delete-
rious impact on housing affordability; and
(B) has caused such certification to be
published in the Federal Register at the time of
publication of the final rule, together with a
statement providing the factual basis for the
certification.
Any agency making a certification under this subsection
shall provide a copy of such certification and the state-
ment providing the factual basis for the certification to
the Secretary of Housing and Urban Development.
(b) EXCEPTION FOR CERTAIN BANKING RULES.—
The requirements of this section shall not apply to any
proposed or final rule relating to—
(1) the operations, safety, or soundness of—
(A) federally insured depository institu-
tions or any affiliate of such an institution (as
such term is defined in section 2(k) of the Bank
Holding Company Act of 1956 (12 U.S.C.
1841(k));
(B) credit unions;
(C) the Federal home loan banks;
(D) the enterprises (as such term is de-
fined in section 1303 of the Housing and Com-
munity Development Act of 1992 (12 U.S.C.
4502);
(E) a Farm Credit System institution; or
(F) foreign banks or their branches, agen-
cies, commercial lending companies, or rep-
resentative offices that operate in the United
States, or any affiliate of a foreign bank (as
such terms are defined in section 1 of the Inter-
national Banking Act of 1978 (12 U.S.C.
3101); or
(2) the payments system or the protection of
deposit insurance funds or the Farm Credit Insur-
ance Fund.
(c) STATEMENT
OF
PROPOSED
RULEMAKING.—
Whenever an agency publishes general notice of proposed
rulemaking for any proposed rule, unless the agency has
made a certification under subsection (a), the agency
shall—
(1) in the notice of proposed rulemaking—
(A) state with particularity the text of the
proposed rule; and
(B) request any interested persons to sub-
mit to the agency any written analyses, data,
views, and arguments, and any specific alter-
natives to the proposed rule that—
(i) accomplish the stated objectives of
the applicable statutes, in a manner com-
parable to the proposed rule;
(ii) result in costs to the Federal Gov-
ernment equal to or less than the costs re-
sulting from the proposed rule; and
(iii) result in housing affordability
greater than the housing affordability re-
sulting from the proposed rule;
(2) provide an opportunity for interested per-
sons to take the actions specified under paragraph
(1)(B) before promulgation of the final rule; and
(3) prepare and make available for public com-
ment an initial housing impact analysis in accord-
ance with the requirements of subsection (d).
(d) INITIAL HOUSING IMPACT ANALYSIS.—
(1) REQUIREMENTS.—Each initial housing im-
pact analysis shall describe the impact of the pro-
posed rule on housing affordability. The initial hous-
ing impact analysis or a summary shall be published
in the Federal Register at the same time as, and to-
gether with, the publication of general notice of pro-
posed rulemaking for the rule. The agency shall
transmit a copy of the initial housing impact anal-
ysis to the Secretary of Housing and Urban Devel-
opment.
(2) MONTHLY
HUD
LISTING.—On a monthly
basis, the Secretary of Housing and Urban Develop-
ment shall cause to be published in the Federal Reg-
ister, and shall make available through a World
Wide Web site of the Department, a listing of all
proposed rules for which an initial housing impact
analysis was prepared during the preceding month.
(3) CONTENTS.—Each initial housing impact
analysis 
required 
under 
this 
subsection 
shall
contain—
(A) a description of the reasons why action
by the agency is being considered;
(B) a succinct statement of the objectives
of, and legal basis for, the proposed rule;
(C) a description of and, where feasible, an
estimate of the extent to which the proposed
rule would increase the cost or reduce the sup-
ply of housing or land for residential develop-
ment; and
(D) an identification, to the extent prac-
ticable, of all relevant Federal rules which may
duplicate, overlap, or conflict with the proposed
rule.
(e) PROPOSAL OF LESS DELETERIOUS ALTERNATIVE
RULE.—
(1) ANALYSIS.—The agency publishing a gen-
eral notice of proposed rulemaking shall review any
specific analyses and alternatives to the proposed
rule which have been submitted to the agency pursu-
ant to subsection (c)(2) to determine whether any al-
ternative to the proposed rule—
(A) accomplishes the stated objectives of
the applicable statutes, in a manner comparable
to the proposed rule;
(B) results in costs to the Federal Govern-
ment equal to or less than the costs resulting
from the proposed rule; and
(C) results in housing affordability greater
than the housing affordability resulting from
the proposed rule.
(2) 
NEW
NOTICE
OF
PROPOSED
RULE-
MAKING.—If the agency determines that an alter-
native to the proposed rule meets the requirements
under subparagraphs (A) through (C) of paragraph
(1), unless the agency provides an explanation on
the record for the proposed rule as to why the alter-
native should not be implemented, the agency shall
incorporate the alternative into the final rule or, at
the agency’s discretion, issue a new proposed rule
which incorporates the alternative.
(f) FINAL HOUSING IMPACT ANALYSIS.—
(1) REQUIREMENT.—Whenever an agency pro-
mulgates a final rule after publication of a general
notice of proposed rulemaking, unless the agency has
made the certification under subsection (a), the
agency shall prepare a final housing impact analysis.
(2) CONTENTS.—Each final housing impact
analysis shall contain—
(A) a succinct statement of the need for,
and objectives of, the rule;
(B) a summary of the significant issues
raised during the public comment period in re-
sponse to the initial housing impact analysis, a
summary of the assessment of the agency of
such issues, and a statement of any changes
made in the proposed rule as a result of such
comments; and
(C) a description of and an estimate of the
extent to which the rule will impact housing af-
fordability or an explanation of why no such es-
timate is available.
(3) AVAILABILITY.—The agency shall make
copies of the final housing impact analysis available
to members of the public and shall publish in the
Federal Register such analysis or a summary there-
of.
(g) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY
ANALYSES.—
(1) DUPLICATION.—Any Federal agency may
perform the analyses required by subsections (d) and
(f) in conjunction with or as a part of any other
agenda or analysis required by any other law, execu-
tive order, directive, or rule if such other analysis
satisfies the provisions of such subsections.
(2) JOINDER.—In order to avoid duplicative ac-
tion, an agency may consider a series of closely re-
lated rules as one rule for the purposes of sub-
sections (d) and (f).
(h) PREPARATION OF ANALYSES.—In complying with
the provisions of subsections (d) and (f), an agency may
provide either a quantifiable or numerical description of
the effects of a proposed rule or alternatives to the pro-
posed rule, or more general descriptive statements if quan-
tification is not practicable or reliable.
(i) EFFECT ON OTHER LAW.—The requirements of
subsections (d) and (f) do not alter in any manner stand-
ards otherwise applicable by law to agency action.
(j) PROCEDURE FOR WAIVER OR DELAY OF COMPLE-
TION.—
(1) INITIAL HOUSING IMPACT ANALYSIS.—An
agency head may waive or delay the completion of
some or all of the requirements of subsection (d) by
publishing in the Federal Register, not later than
the date of publication of the final rule, a written
finding, with reasons therefor, that the final rule is
being promulgated in response to an emergency that
makes compliance or timely compliance with the pro-
visions of subsection (a) impracticable.
(2) FINAL
HOUSING
IMPACT
ANALYSIS.—An
agency head may not waive the requirements of sub-
section (f). An agency head may delay the comple-
tion of the requirements of subsection (f) for a pe-
riod of not more than 180 days after the date of
publication in the Federal Register of a final rule by
publishing in the Federal Register, not later than
such date of publication, a written finding, with rea-
sons therefor, that the final rule is being promul-
gated in response to an emergency that makes time-
ly compliance with the provisions of subsection (f)
impracticable. If the agency has not prepared a final
housing impact analysis pursuant to subsection (f)
within 180 days from the date of publication of the
final rule, such rule shall lapse and have no force or
effect. Such rule shall not be repromulgated until a
final housing impact analysis has been completed by
the agency.
(k) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) 
HOUSING
AFFORDABILITY.—The 
term
‘‘housing affordability’’ means the quantity of hous-
ing that is affordable to families having incomes that
do not exceed 150 percent of the median income of
families in the area in which the housing is located,
with adjustments for smaller and larger families.
For purposes of this paragraph, area, median family
income for an area, and adjustments for family size
shall be determined in the same manner as such fac-
tors are determined for purposes of section 3(b)(2)
of the United States Housing Act of 1937.
(2) AGENCY.—The term ‘‘agency’’ means each
authority of the Government of the United States,
whether or not it is within or subject to review by
another agency, but does not include—
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or
possessions of the United States;
(D) the government of the District of Co-
lumbia;
(E) agencies composed of representatives
of the parties or of representatives of organiza-
tions of the parties to the disputes determined
by them;
(F) courts-martial and military commis-
sions;
(G) military authority exercised in the field
in time of war or in occupied territory; or
(H) functions conferred by—
(i) sections 1738, 1739, 1743, and
1744 of title 12, United States Code;
(ii) chapter 2 of title 41, United
States Code;
(iii) subchapter II of chapter 471 of
title 49, United States Code; or
(iv) sections 1884, 1891–1902, and
former section 1641(b)(2), of title 50, ap-
pendix, United States Code.
(3) FAMILIES.—The term ‘‘families’’ has the
meaning given such term in section 3 of the United
States Housing Act of 1937.
(4) RULE.—The term ‘‘rule’’ means any rule
for which the agency publishes a general notice of
proposed rulemaking pursuant to section 553(b) of
title 5, United States Code, or any other law, includ-
ing any rule of general applicability governing grants
by an agency to State and local governments for
which the agency provides an opportunity for notice
and public comment; except that such term does not
include a rule of particular applicability relating to
rates, wages, corporate or financial structures or re-
organizations thereof, prices, facilities, appliances,
services, or allowances therefor or to valuations,
costs or accounting, or practices relating to such
rates, wages, structures, prices, appliances, services,
or allowances.
(5) 
SIGNIFICANT.—The 
term 
‘‘significant’’
means increasing consumers’ cost of housing by
more than $100,000,000 per year.
(l) DEVELOPMENT.—Not later than 1 year after the
date of the enactment of this title, the Secretary of Hous-
ing and Urban Development shall develop model initial
and final housing impact analyses under this section and
shall cause such model analyses to be published in the
Federal Register. The model analyses shall define the pri-
mary elements of a housing impact analysis to instruct
other agencies on how to carry out and develop the anal-
yses required under subsections (a) and (d).
(m) JUDICIAL REVIEW.—
(1) DETERMINATION BY AGENCY.—Except as
otherwise provided in paragraph (2), any determina-
tion by an agency concerning the applicability of any
of the provisions of this title to any action of the
agency shall not be subject to judicial review.
(2) OTHER ACTIONS BY AGENCY.—Any housing
impact analysis prepared under subsection (d) or (f)
and the compliance or noncompliance of the agency
with the provisions of this title shall not be subject
to judicial review. When an action for judicial review
of a rule is instituted, any housing impact analysis
for such rule shall constitute part of the whole
record of agency action in connection with the re-
view.
(3) EXCEPTION.—Nothing in this subsection
bars judicial review of any other impact statement or
similar analysis required by any other law if judicial
review of such statement or analysis is otherwise
provided by law.
SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL
STRATEGIES.
(a) AUTHORIZATION
OF
APPROPRIATIONS.—Sub-
section (a) of section 1204 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705c(a)) is
amended to read as follows:
‘‘(a) FUNDING.—There is authorized to be appro-
priated for grants under subsections (b) and (c)
$15,000,000 for fiscal year 2001 and such sums as may
be necessary for each of fiscal years 2002, 2003, 2004,
and 2005.’’.
(b) 
CONSOLIDATION
OF
STATE
AND
LOCAL
GRANTS.—Subsection (b) of section 1204 of the Housing
and Community Development Act of 1992 (42 U.S.C.
12705c(b)) is amended—
(1) in the subsection heading, by striking
‘‘STATE GRANTS’’ and inserting ‘‘GRANT AUTHOR-
ITY’’;
(2) in the matter preceding paragraph (1), by
inserting after ‘‘States’’ the following: ‘‘and units of
general local government (including consortia of
such governments)’’;
(3) in paragraph (3), by striking ‘‘a State pro-
gram to reduce State and local’’ and inserting
‘‘State, local, or regional programs to reduce’’;
(4) in paragraph (4), by inserting ‘‘or local’’
after ‘‘State’’; and
(5) in paragraph (5), by striking ‘‘State’’.
(c) REPEAL OF LOCAL GRANTS PROVISION.—Section
1204 of the Housing and Community Development Act
of 1992 (42 U.S.C. 12705c) is amended by striking sub-
section (c).
(d) APPLICATION AND SELECTION.—The last sen-
tence of section 1204(e) of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705c(e)) is
amended—
(1) by striking ‘‘and for the selection of units
of general local government to receive grants under
subsection (f)(2)’’; and
(2) by inserting before the period at the end the
following: ‘‘and such criteria shall require that grant
amounts be used in a manner consistent with the
strategy contained in the comprehensive housing af-
fordability strategy for the jurisdiction pursuant to
section 105(b)(4) of the Cranston-Gonzalez National
Affordable Housing Act’’.
(e) SELECTION OF GRANTEES.—Subsection (f) of
section 1204 of the Housing and Community Development
Act of 1992 (42 U.S.C. 12705c(f)) is amended to read
as follows:
‘‘(f) SELECTION
OF GRANTEES.—To the extent
amounts are made available to carry out this section, the
Secretary shall provide grants on a competitive basis to
eligible grantees based on the proposed uses of such
amounts, as provided in applications under subsection
(e).’’.
(f) TECHNICAL AMENDMENTS.—Section 107(a)(1) of
the Housing and Community Development Act of 1974
(42 U.S.C. 5307(a)(1)) is amended—
(1) in subparagraph (G), by inserting ‘‘and’’
after the semicolon at the end;
(2) by striking subparagraph (H); and
(3) by redesignating subparagraph (I) as sub-
paragraph (H).
SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT
BLOCK GRANTS.
(a) IN GENERAL.—Section 104(c)(1) of the Housing
and Community Development Act of 1974 (42 U.S.C.
5304(c)(1)) is amended by inserting before the comma the
following: ‘‘, which shall include making a good faith effort
to carry out the strategy established under section
105(b)(4) of such Act by the unit of general local govern-
ment to remove barriers to affordable housing’’.
(b) RULE
OF
CONSTRUCTION.—The amendment
made by subsection (a) may not be construed to create
any new private right of action.
SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.
Section 1205 of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 12705d) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by striking ‘‘receive, collect, process, and assem-
ble’’ and inserting ‘‘serve as a national reposi-
tory to receive, collect, process, assemble, and
disseminate’’;
(B) in paragraph (1)—
(i) by striking ‘‘, including’’ and in-
serting ‘‘(including’’; and
(ii) by inserting before the semicolon
at the end the following: ‘‘), and the preva-
lence and effects on affordable housing of
such laws, regulations, and policies’’;
(C) in paragraph (2), by inserting before
the semicolon the following: ‘‘, including par-
ticularly innovative or successful activities,
strategies, and plans’’; and
(D) in paragraph (3), by inserting before
the period at the end the following: ‘‘, including
particularly innovative or successful strategies,
activities, and plans’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) by making available through a World Wide
Web site of the Department, by electronic mail, or
otherwise, provide to each housing agency of a unit
of general local government that serves an area hav-
ing a population greater than 100,000, an index of
all State and local strategies and plans submitted
under subsection (a) to the clearinghouse, which—
‘‘(A) shall describe the types of barriers to
affordable housing that the strategy or plan
was designed to ameliorate or remove; and
‘‘(B) shall, not later than 30 days after
submission to the clearinghouse of any new
strategy or plan, be updated to include the new
strategy or plan submitted.’’; and
(3) by adding at the end the following new sub-
sections:
‘‘(c) ORGANIZATION.—The clearinghouse under this
section shall be established within the Office of Policy De-
velopment of the Department of Housing and Urban De-
velopment and shall be under the direction of the Assist-
ant Secretary for Policy Development and Research.
‘‘(d) TIMING.—The clearinghouse under this section
(as amended by section 105 of the Housing Affordability
Barrier Removal Act of 2000) shall be established and
commence carrying out the functions of the clearinghouse
under this section not later than 1 year after the date of
the enactment of such Act. The Secretary of Housing and
Urban Development may comply with the requirements
under this section by reestablishing the clearinghouse that
was originally established to comply with this section and
updating and improving such clearinghouse to the extent
necessary to comply with the requirements of this section
as in effect pursuant to the enactment of such Act.’’.
TITLE 
II—HOMEOWNERSHIP
THROUGH MORTGAGE INSUR-
ANCE AND LOAN GUARAN-
TEES
SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED
HOME LOTS.
Section 2(b)(3)(E) of the National Housing Act (12
U.S.C. 1703(b)(3)(E)) is amended by striking ‘‘fifteen’’
and inserting ‘‘twenty’’.
SEC. 202. DOWNPAYMENT SIMPLIFICATION.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by realigning the
matter that precedes clause (ii) an additional 2
ems from the left margin;
(B) in the matter that follows subpara-
graph (B)(iii)—
(i) by striking the sixth sentence (re-
lating to the increases for costs of solar en-
ergy systems) and all that follows through
the end of the penultimate undesignated
paragraph; and
(ii) by striking the second and third
sentences of such matter; and
(C) by striking subparagraph (B);
(2) by transferring and inserting subparagraph
(A) of paragraph (10) after subparagraph (A) of
paragraph (2) and amending such subparagraph by
striking all of the matter that precedes clause (i)
and inserting the following:
‘‘(B) not to exceed an amount equal to the
sum of—’’;
(3) by transferring and inserting the last undes-
ignated paragraph of paragraph (2) (relating to dis-
closure notice) after subsection (e), realigning such
transferred paragraph so as to be flush with the left
margin, and amending such transferred paragraph
by inserting ‘‘(f) DISCLOSURE
OF OTHER MORT-
GAGE PRODUCTS.—’’ before ‘‘In conjunction’’;
(4) by transferring and inserting the sentence
that constitutes the text of paragraph (10)(B) after
the period at the end of the first sentence that fol-
lows subparagraph (B) (relating to the definition of
‘‘area’’); and
(5) by striking paragraph (10) (as amended by
the preceding provisions this section).
(b) CONFORMING AMENDMENTS.—Section 245 of the
National 
Housing 
Act 
(12 
U.S.C. 
1715z–10) 
is
amended—
(1) in subsection (a), by striking ‘‘, or if the
mortgagor’’ and all that follows through ‘‘case of
veterans’’; and
(2) in subsection (b)(3), by striking ‘‘, or, if
the’’ and all that follows through ‘‘for veterans,’’.
SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR
LOANS FOR TEACHERS AND UNIFORMED MU-
NICIPAL EMPLOYEES.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)), as amended by section
202 of this Act, is further amended by adding at the end
the following new paragraph:
‘‘(10) 
REDUCED
DOWNPAYMENT
REQUIRE-
MENTS FOR TEACHERS AND UNIFORMED MUNICIPAL
EMPLOYEES.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a mortgage described
in subparagraph (B)—
‘‘(i) the mortgage shall involve a prin-
cipal obligation in an amount that does not
exceed the sum of 99 percent of the ap-
praised value of the property and the total
amount of initial service charges, ap-
praisal, inspection, and other fees (as the
Secretary shall approve) paid in connection
with the mortgage;
‘‘(ii) no other provision of this sub-
section limiting the principal obligation of
the mortgage based upon a percentage of
the appraised value of the property subject
to the mortgage shall apply; and
‘‘(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply
and the mortgage shall be executed by a
mortgagor who shall have paid on account
of the property at least 1 percent of the
cost of acquisition (as determined by the
Secretary) in cash or its equivalent.
‘‘(B) MORTGAGES COVERED.—A mortgage
described in this subparagraph is a mortgage—
‘‘(i) under which the mortgagor is an
individual who—
‘‘(I) is employed on a full-time
basis as: (aa) a teacher or adminis-
trator in a public or private school
that provides elementary or secondary
education, as determined under State
law, except that elementary education
shall include pre-Kindergarten edu-
cation, and except that secondary edu-
cation shall not include any education
beyond grade 12; or (bb) a public
safety officer (as such term is defined
in section 1204 of the Omnibus Crime
Control and Safe Streets Act of 1968
(42 U.S.C. 3796b), except that such
term shall not include any officer
serving a public agency of the Federal
Government); and
‘‘(II) has not, during the 12-
month period ending upon the insur-
ance of the mortgage, had any present
ownership interest in a principal resi-
dence located in the jurisdiction de-
scribed in clause (ii); and
‘‘(ii) made for a property that is lo-
cated within the jurisdiction of—
‘‘(I) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(aa), the local educational agency
(as such term is defined in section
14101 of the Elementary and Sec-
ondary Education Act of 1965 (20
U.S.C. 8801)) for the school in which
the mortgagor is employed (or, in the
case of a mortgagor employed in a
private school, the local educational
agency having jurisdiction for the area
in which the private school is located);
or
‘‘(II) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(bb), the jurisdiction served by
the public law enforcement agency,
firefighting agency, or rescue or am-
bulance agency that employs the
mortgagor.’’.
(b) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—Section 203(c) of the National Housing Act (12
U.S.C. 1709(c)(2)) is amended—
(1) in paragraph (2), in the matter preceding
subparagraph (A), by striking ‘‘Notwithstanding’’
and inserting ‘‘Except as provided in paragraph (3)
and notwithstanding’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—In the case of any mortgage described in sub-
section (b)(10)(B):
‘‘(A) Paragraph (2)(A) of this subsection (relat-
ing to collection of up-front premium payments)
shall not apply.
‘‘(B) If, at any time during the 5-year period
beginning on the date of the insurance of the mort-
gage, the mortgagor ceases to be employed as de-
scribed in subsection (b)(10)(B)(i)(I) or pays the
principal obligation of the mortgage in full, the Sec-
retary shall at such time collect a single premium
payment in an amount equal to the amount of the
single premium payment that, but for this para-
graph, would have been required under paragraph
(2)(A) of this subsection with respect to the mort-
gage, as reduced by 20 percent of such amount for
each successive 12-month period completed during
such 5-year period before such cessation or prepay-
ment occurs.’’.
SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN
PROGRAM.
(a) IN GENERAL.—Section 203(k) of the National
Housing Act (12 U.S.C. 1709(k)) is amended by adding
at the end the following new paragraph:
‘‘(7) PREVENTION
OF
FRAUD.—To prevent fraud
under the program for loan insurance authorized under
this subsection, the Secretary shall, by regulation, take the
following actions:
‘‘(A) PROHIBITION
OF
IDENTITY
OF
INTER-
EST.—The Secretary shall prohibit any identity-of-
interest, as such term is defined by the Secretary,
between any of the following parties involved in a
loan insured under this subsection: the borrower (in-
cluding, in the case of a borrower that is a nonprofit
organization, any member of the board of directors
or the staff of the organization), the lender, any con-
sultant, any real estate agent, any property inspec-
tor, and any appraiser. Nothing in this subpara-
graph may be construed to prohibit or restrict, or
authorize the Secretary to prohibit or restrict, the
functioning of a affiliated business arrangement that
complies with the requirements under section 8(c)(4)
of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2607(c)(4)).
‘‘(B) NONPROFIT
PARTICIPATION.—The Sec-
retary shall establish minimum standards for a non-
profit organization to participate in the program,
which shall include—
‘‘(i) requiring such an organization to dis-
close to the Secretary its taxpayer identification
number and evidence sufficient to indicate that
the organization is an organization described in
section 501(c) of the Internal Revenue Code of
1986 that is exempt from taxation under sub-
title A of such Code;
‘‘(ii) requiring that the board of directors
of such an organization be comprised only of in-
dividuals who do not receive any compensation
or other thing of value by reason of their serv-
ice on the board and who have no personal fi-
nancial interest in the rehabilitation project of
the organization that is financed with the loan
insured under this subsection;
‘‘(iii) requiring such an organization to
submit to the Secretary financial statements of
the organization for the most recent 2 years,
which have been prepared by a party that is un-
affiliated with the organization and is qualified
to prepare financial statements;
‘‘(iv) limiting to 10 the number of loans
that are insured under this subsection, made to
any single such organization, and, at any one
time, have an outstanding balance of principal
or interest, except that the Secretary may in-
crease such numerical limitation on a case-by-
case basis for good cause shown; and
‘‘(v) requiring such an organization to have
been certified by the Secretary as meeting the
requirements under this subsection and other-
wise eligible to participate in the program not
more than 2 years before obtaining a loan in-
sured under this section.
‘‘(C) COMPLETION OF WORK.—The Secretary
shall prohibit any lender making a loan insured
under this subsection from disbursing the final pay-
ment of loan proceeds unless the lender has received
affirmation, from the borrower under the loan, both
in writing and pursuant to an interview in person or
over the telephone, that the rehabilitation activities
financed by the loan have been satisfactorily com-
pleted.
‘‘(D) CONSULTANT
STANDARDS.—The Sec-
retary shall require that any consultant, as such
term is defined by the Secretary, who is involved in
a home inspection, site visit, or preparation of bids
with respect to any loan insured under this section
shall meet such standards established by the Sec-
retary to ensure accurate inspections and prepara-
tion of bids.
‘‘(E) CONTRACTOR QUALIFICATION.—The Sec-
retary shall require, in the case of any loan that is
insured under this subsection and involves rehabili-
tation with a cost of $25,000 or more, that the con-
tractor or other person performing or supervising
the rehabilitation activities financed by the loan
shall—
‘‘(i) be certified by a nationally recognized
organization as meeting industry standards for
quality of workmanship, training, and con-
tinuing education, including financial manage-
ment;
‘‘(ii) be licensed to conduct such activities
by the State or unit of general local government
in which the rehabilitation activities are being
completed; or
‘‘(iii) be bonded or provide such equivalent
protection, as the Secretary may require.’’.
(b) REPORT ON ACTIVITY OF NONPROFIT ORGANIZA-
TIONS UNDER PROGRAM.—Not later than 60 days after
the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall submit a report
to the Congress regarding the participation of nonprofit
organizations under the rehabilitation loan program under
section 203(k) of the National Housing Act (12 U.S.C.
1709(k)). The report shall—
(1) determine and describe the extent of partici-
pation in the program by such organizations;
(2) identify and compare the default and claim
rates for loans made under the program to nonprofit
organizations and to owner-occupier participants;
(3) analyze the impact, on such organizations
and the program, of prohibiting such organizations
from participating in the program; and
(4) identify other opportunities for such organi-
zations to acquire financing or credit enhancement
for rehabilitation activities.
(c) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue final regulations and any
other administrative orders or notices necessary to carry
out the provisions of this section and the amendments
made by this section not later than 120 days after the
date of the enactment of this Act.
SEC. 205. COMMUNITY PARTNERS NEXT DOOR PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Community Partners Next Door Act’’.
(b) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) teachers, law enforcement officers, fire
fighters, and rescue personnel help form the back-
bones of communities and are integral components
in the social capital of neighborhoods in the United
States; and
(2) providing a discounted purchase price on
HUD-owned properties for teachers, law enforce-
ment officers, fire fighters, and rescue personnel rec-
ognizes the intrinsic value of the services provided by
such employees to their communities and to family
life and encourages and rewards those who are dedi-
cated to providing public service in our most needy
communities.
(c) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR
TEACHERS.—Section 204(h) of the National Housing Act
(12 U.S.C. 1710(h)) is amended—
(1) by redesignating paragraphs (7) through
(10) as paragraphs (8) through (11), respectively;
and
(2) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) 50 PERCENT
DISCOUNT
FOR
TEACHERS
AND PUBLIC SAFETY OFFICERS PURCHASING PROP-
ERTIES THAT ARE ELIGIBLE ASSETS.—
‘‘(A) DISCOUNT.—A property that is an el-
igible asset and is sold, during fiscal years 2000
through 2004, to a teacher or public safety offi-
cer for use in accordance with subparagraph
(B) shall be sold at a price that is equal to 50
percent of the appraised value of the eligible
property (as determined in accordance with
paragraph (6)(B)). In the case of a property el-
igible for both a discount under this paragraph
and a discount under paragraph (6), the dis-
count under paragraph (6) shall not apply.
‘‘(B) PRIMARY
RESIDENCE.—An eligible
property sold pursuant to a discount under this
paragraph shall be used, for not less than the
3-year period beginning upon such sale, as the
primary residence of a teacher or public safety
officer.
‘‘(C) SALE METHODS.—The Secretary may
sell an eligible property pursuant to a discount
under this paragraph—
‘‘(i) to a unit of general local govern-
ment or nonprofit organization (pursuant
to paragraph (4) or otherwise), for resale
or transfer to a teacher or public safety of-
ficer; or
‘‘(ii) directly to a purchaser who is a
teacher or public safety officer.
‘‘(D) RESALE.—In the case of any pur-
chase by a unit of general local government or
nonprofit organization of an eligible property
sold at a discounted price under this paragraph,
the sale agreement under paragraph (8) shall—
‘‘(i) require the purchasing unit of
general local government or nonprofit or-
ganization to provide the full benefit of the
discount to the teacher or public safety of-
ficer obtaining the property; and
‘‘(ii) in the case of a purchase involv-
ing multiple eligible assets, any of which is
such an eligible property, designate the
specific eligible property or properties to be
subject to the requirements of subpara-
graph (B).
‘‘(E) MORTGAGE
DOWNPAYMENT
ASSIST-
ANCE.—If a teacher or public safety officer pur-
chases an eligible property pursuant to a dis-
counted sale price under this paragraph and fi-
nances such purchase through a mortgage in-
sured under this title, notwithstanding any pro-
vision of section 203 the downpayment on such
mortgage shall be $100.
‘‘(F) PREVENTION OF UNDUE PROFIT.—
The Secretary shall issue regulations to prevent
undue profit from the resale of eligible prop-
erties in violation of the requirement under sub-
paragraph (B).
‘‘(G) DEFINITIONS.—For the purposes of
this paragraph, the following definitions shall
apply:
‘‘(i) The terms ‘elementary school’
and ‘secondary school’ have the meanings
given such terms in section 14101 of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 8801), except that, for
purposes of this paragraph, elementary
education (as used in such section) shall
include pre-Kindergarten education.
‘‘(ii) The term ‘eligible property’
means an eligible asset described in para-
graph (2)(A) of this subsection.
‘‘(iii) The term ‘public safety officer’
means an individual who is employed on a
full-time basis as a public safety officer de-
scribed in section 203(b)(10)(B)(i)(I)(bb).
‘‘(iv) The term ‘teacher’ means an in-
dividual who is employed on a full-time
basis, in an elementary or secondary
school, as a State-certified or State-li-
censed classroom teacher or as an adminis-
trator.’’.
(d) CONFORMING AMENDMENTS.—Section 204(h) of
the National Housing Act (12 U.S.C. 1710(h)) is
amended—
(1) in paragraph (4)(B)(ii), by striking ‘‘para-
graph (7)’’ and inserting ‘‘paragraph (8)’’;
(2) in paragraph (5)(B)(i), by striking ‘‘para-
graph (7)’’ and inserting ‘‘paragraph (8)’’; and
(3) in paragraph (6)(A), by striking ‘‘paragraph
(8)’’ and inserting ‘‘paragraph (9)’’.
(e) REGULATIONS.—Not later than 90 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement the amendments made by this
section.
SEC. 206. RISK-SHARING DEMONSTRATION.
Section 249 of the National Housing Act (12 U.S.C.
1715z–14) is amended—
(1) by striking the section heading and insert-
ing the following:
‘‘RISK-SHARING DEMONSTRATION’’;
(2) by striking ‘‘reinsurance’’ each place such
term appears and insert ‘‘risk-sharing’’;
(3) in subsection (a)—
(A) in the first sentence, by inserting ‘‘and
insured community development financial insti-
tutions’’ after ‘‘private mortgage insurers’’; and
(B) in the second sentence—
(i) by striking ‘‘two’’ and inserting
‘‘4’’; and
(ii) by striking ‘‘March 15, 1988’’ and
inserting ‘‘the expiration of the 5-year pe-
riod beginning on the date of the enact-
ment of the American Homeownership and
Economic Opportunity Act of 2000’’;
(4) in subsection (b)—
(A) in the first sentence, by inserting ‘‘and
with insured community development financial
institutions’’ before the period at the end;
(B) in the first sentence, by striking
‘‘which have been determined to be qualified in-
surers under section 302(b)(2)(C)’’;
(C) in the second sentence, by inserting
‘‘and insured community development financial
institutions’’ after ‘‘private mortgage insurance
companies’’;
(D) by striking paragraph (1) and insert-
ing the following new paragraph:
‘‘(1) assume the first loss on any mortgage in-
sured pursuant to section 203(b), 234, or 245 that
covers a one- to four-family dwelling and is included
in the program under this section, up to the percent-
age of loss that is set forth in the risk-sharing con-
tract;’’; and
(E) in paragraph (2)—
(i) by striking ‘‘carry out (under ap-
propriate delegation) such’’ and inserting
‘‘delegate underwriting,’’; and
(ii) by striking ‘‘function’’ and insert-
ing ‘‘functions’’;
(5) in subsection (c)—
(A) in the first sentence—
(i) by striking ‘‘of’’ the first place it
appears and insert ‘‘for’’;
(ii) by striking ‘‘insurance reserves’’
and inserting ‘‘loss reserves’’; and
(iii) by striking ‘‘such insurance’’ and
inserting ‘‘such reserves’’; and
(B) in the second sentence, by inserting
‘‘or insured community development financial
institution’’ after ‘‘private mortgage insurance
company’’;
(6) in subsection (d), by inserting ‘‘or insured
community development financial institution’’ after
‘‘private mortgage insurance company’’; and
(7) by adding at the end the following new sub-
section:
‘‘(e) INSURED COMMUNITY DEVELOPMENT FINAN-
CIAL INSTITUTIONS.—For purposes of this section, the
term ‘insured community development financial institu-
tion’ means a community development financial institu-
tion, as such term is defined in section 103 of Reigle Com-
munity Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4702) that is an insured depository insti-
tution (as such term is defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813)) or an insured
credit union (as such term is defined in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752)).’’.
SEC. 207. HYBRID ARMS.
(a) IN GENERAL.—Section 251 of the National
Housing Act (12 U.S.C. 1715z–16) is amended—
(1) in subsection (a), by inserting ‘‘IN GEN-
ERAL.—’’ after ‘‘(a)’’;
(2) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) DISCLOSURE.—In the case of any loan applica-
tion for a mortgage to be insured under any provision of
this section, the Secretary shall require that the prospec-
tive mortgagee for the mortgage shall, at the time of loan
application, make available to the prospective mortgagor
a written explanation of the features of an adjustable rate
mortgage consistent with the disclosure requirements ap-
plicable to variable rate mortgages secured by a principal
dwelling under the Truth in Lending Act (15 U.S.C. 1601
et seq.).’’;
(3) in subsection (c), by inserting ‘‘LIMITATION
ON INSURANCE AUTHORITY.—’’ after ‘‘(c)’’; and
(4) by adding at the end the following new sub-
section:
‘‘(d) HYBRID ARMS.—The Secretary may insure
under this subsection a mortgage that—
‘‘(1) has an effective rate of interest that shall
be—
‘‘(A) fixed for a period of not less than the
first 3 years of the mortgage term;
‘‘(B) initially adjusted by the mortgagee
upon the expiration of such period and annually
thereafter; and
‘‘(C) in the case of the initial interest rate
adjustment, shall be subject to the limitation
under clause (2) of the last sentence of sub-
section (a) (relating to prohibiting annual in-
creases of more than 1 percent) only if the in-
terest rate remains fixed for 5 or fewer years;
and
‘‘(2) otherwise meets the requirements for in-
surance under subsection (a) that are not incon-
sistent with the requirements under paragraph (1)
of this subsection.’’.
(b) IMPLEMENTATION.—The Secretary of Housing
and Urban Development may implement section 251(d) of
the National Housing Act (12 U.S.C. 1715z–16(d)), as
added by subsection (a) of this section, in advance of rule-
making.
SEC. 208. HOME EQUITY CONVERSION MORTGAGES.
(a) INSURANCE FOR MORTGAGES TO REFINANCE EX-
ISTING HECMS.—
(1) IN GENERAL.—Section 255 of the National
Housing Act (12 U.S.C. 1715z–20) is amended—
(A) by redesignating subsection (k) as sub-
section (m); and
(B) by inserting after subsection (j) the
following new subsection:
‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—
‘‘(1) IN GENERAL.—The Secretary may, upon
application by a mortgagee, insure under this sub-
section any mortgage given to refinance an existing
home equity conversion mortgage insured under this
section.
‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec-
retary shall, by regulation, require that the mort-
gagee of a mortgage insured under this subsection,
provide to the mortgagor, within an appropriate time
period and in a manner established in such regula-
tions, a good faith estimate of: (A) the total cost of
the refinancing; and (B) the increase in the mortga-
gor’s principal limit as measured by the estimated
initial principal limit on the mortgage to be insured
under this subsection less the current principal limit
on the home equity conversion mortgage that is
being refinanced and insured under this subsection.
‘‘(3) 
WAIVER
OF
COUNSELING
REQUIRE-
MENT.—The mortgagor under a mortgage insured
under this subsection may waive the applicability,
with respect to such mortgage, of the requirements
under subsection (d)(2)(B) (relating to third party
counseling), but only if—
‘‘(A) the mortgagor has received the disclo-
sure required under paragraph (2);
‘‘(B) the increase in the principal limit de-
scribed in paragraph (2) exceeds the amount of
the total cost of refinancing (as described in
such paragraph) by an amount to be deter-
mined by the Secretary; and
‘‘(C) the time between the closing of the
original home equity conversion mortgage that
is refinanced through the mortgage insured
under this subsection and the application for a
refinancing mortgage insured under this sub-
section does not exceed 5 years.
‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith-
standing section 203(c)(2)(A), the Secretary may re-
duce the amount of the single premium payment
otherwise collected under such section at the time of
the insurance of a mortgage refinanced and insured
under this subsection. The amount of the single pre-
mium for mortgages refinanced under this sub-
section shall be determined by the Secretary based
on the actuarial study required under paragraph (5).
‘‘(5) ACTUARIAL STUDY.—Not later than 180
days after the date of the enactment of the Amer-
ican Homeownership and Economic Opportunity Act
of 2000, the Secretary shall conduct an actuarial
analysis to determine the adequacy of the insurance
premiums collected under the program under this
subsection with respect to—
‘‘(A) a reduction in the single premium
payment collected at the time of the insurance
of a mortgage refinanced and insured under
this subsection;
‘‘(B) the establishment of a single national
limit on the benefits of insurance under sub-
section (g) (relating to limitation on insurance
authority); and
‘‘(C) the combined effect of reduced insur-
ance premiums and a single national limitation
on insurance authority.
‘‘(6) FEES.—The Secretary may establish a
limit on the origination fee that may be charged to
a mortgagor under a mortgage insured under this
subsection, except that such limitation shall provide
that the origination fee may be fully financed with
the mortgage and shall include any fees paid to cor-
respondent mortgagees approved by the Secretary.
The Secretary shall prohibit the charging of any
broker fees in connection with mortgages insured
under this subsection.’’.
(2) REGULATIONS.—The Secretary shall issue
any final regulations necessary to implement the
amendments made by paragraph (1) of this sub-
section, which shall take effect not later than the ex-
piration of the 180-day period beginning on the date
of the enactment of this Act. The regulations shall
be issued after notice and opportunity for public
comment in accordance with the procedure under
section 553 of title 5, United States Code, applicable
to substantive rules (notwithstanding subsections
(a)(2), (b)(B), and (d)(3) of such section).
(b) HOUSING COOPERATIVES.—Section 255(b) of the
National Housing Act (12 U.S.C. 1715z–20(b)) is
amended—
(1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’;
and
(2) by adding at the end the following new
paragraphs:
‘‘(4) MORTGAGE.—The term ‘mortgage’ means
a first mortgage or first lien on real estate, in fee
simple, on all stock allocated to a dwelling in a resi-
dential cooperative housing corporation, or on a
leasehold—
‘‘(A) under a lease for not less than 99
years that is renewable; or
‘‘(B) under a lease having a period of not
less than 10 years to run beyond the maturity
date of the mortgage.
‘‘(5) FIRST MORTGAGE.—The term ‘first mort-
gage’ means such classes of first liens as are com-
monly given to secure advances on, or the unpaid
purchase price of, real estate or all stock allocated
to a dwelling unit in a residential cooperative hous-
ing corporation, under the laws of the State in which
the real estate or dwelling unit is located, together
with the credit instruments, if any, secured there-
by.’’.
(c) WAIVER OF UP-FRONT PREMIUMS FOR MORT-
GAGES USED FOR COSTS OF LONG-TERM CARE INSUR-
ANCE OR HEALTH CARE.—Section 255 of the National
Housing Act (12 U.S.C. 1715z–20) is amended by insert-
ing after subsection (k) (as added by subsection (a) of this
section) the following new subsection:
‘‘(l) WAIVER OF UP-FRONT PREMIUMS.—
‘‘(1) MORTGAGES TO FUND LONG-TERM CARE
INSURANCE.—In the case of any mortgage insured
under this section under which the total amount (ex-
cept as provided in paragraph (3)) of all future pay-
ments described in subsection (b)(3) will be used
only for costs of a qualified long-term care insurance
contract (as such term is defined in section 7702B
of the Internal Revenue Code of 1986 (26 U.S.C.
7702B)) that covers the mortgagor or members of
the household residing in the property that is subject
to the mortgage, notwithstanding section 203(c)(2),
the Secretary shall not charge or collect the single
premium payment otherwise required under subpara-
graph (A) of such section to be paid at the time of
insurance.
‘‘(2) MORTGAGES
TO
FUND
HEALTH
CARE
COSTS.—In the case of any mortgage insured under
this section under which the future payments de-
scribed in subsection (b)(3) will be used only for
costs for health care services (as such term is de-
fined by the Secretary) for the mortgagor or mem-
bers of the household residing in the property that
is subject to the mortgage and comply with limita-
tions on such payments, as shall be established by
the Secretary and based upon the purposes of this
subsection and the accumulated equity of the mort-
gagor in the property, notwithstanding section
203(c)(2), the Secretary shall not charge or collect
the single premium payment otherwise required
under subparagraph (A) of such section to be paid
at the time of insurance.
‘‘(3) AUTHORITY
TO
REFINANCE
EXISTING
MORTGAGE AND FINANCE CLOSING COSTS.—A mort-
gage described in paragraph (1) or (2) may provide
financing of amounts that are used to satisfy out-
standing mortgage obligations (in accordance with
such limitations as the Secretary shall prescribe) any
amounts used for initial service charges, appraisal,
inspection, and other fees (as approved by the Sec-
retary) in connection with such mortgage, and the
amount of future payments described in subsection
(b)(3) under the mortgage shall be reduced accord-
ingly.’’.
(d) STUDY
OF
SINGLE
NATIONAL
MORTGAGE
LIMIT.—The Secretary of Housing and Urban Develop-
ment shall conduct an actuarially based study of the ef-
fects of establishing, for mortgages insured under section
255 of the National Housing Act (12 U.S.C. 1715z–20),
a single maximum mortgage amount limitation in lieu of
applicability of section 203(b)(2) of such Act (12 U.S.C.
1709(b)(2)). The study shall—
(1) examine the effects of establishing such lim-
itation at different dollar amounts; and
(2) examine the effects of such various limita-
tions on—
(A) the risks to the General Insurance
Fund established under section 519 of such
Act;
(B) the mortgage insurance premiums that
would be required to be charged to mortgagors
to ensure actuarial soundness of such Fund;
and
(C) take into consideration the various ap-
proaches to providing credit to borrowers who
refinance home equity conversion mortgages in-
sured under section 255 of such Act.
Not later than 180 days after the date of the enactment
of this Act, the Secretary shall complete the study under
this subsection and submit a report describing the study
and the results of the study to the Committee on Banking
and Financial Services of the House of Representatives
and to the Committee on Banking, Housing, and Urban
Affairs of the Senate.
SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP
PILOT PROGRAM.
(a) ASSISTANCE
FOR LAW ENFORCEMENT OFFI-
CERS.—The Secretary of Housing and Urban Develop-
ment shall carry out a pilot program in accordance with
this section to assist Federal, State, and local law enforce-
ment officers purchasing homes in locally-designated high-
crime areas.
(b) ELIGIBILITY.—To be eligible for assistance under
this section, a law enforcement officer shall—
(1) have completed not less than 6 months of
service as a law enforcement officer as of the date
that the law enforcement officer applies for such as-
sistance; and
(2) agree, in writing, to use the residence pur-
chased with such assistance as the primary residence
of the law enforcement officer for not less than 3
years after the date of purchase.
(c) MORTGAGE ASSISTANCE.—If a law enforcement
officer purchases a home in locally-designated high-crime
area and finances such purchase through a mortgage in-
sured under title II of the National Housing Act (12
U.S.C. 1707 et seq.), notwithstanding any provision of
section 203 or any other provision of the National Hous-
ing Act, the following shall apply:
(1) DOWNPAYMENT.—
(A) IN
GENERAL.—There shall be no
downpayment required if the purchase price of
the property is not more than the reasonable
value of the property, as determined by the Sec-
retary.
(B) PURCHASE PRICE EXCEEDS VALUE.—
If the purchase price of the property exceeds
the reasonable value of the property, as deter-
mined by the Secretary, the required downpay-
ment shall be the difference between such rea-
sonable value and the purchase price.
(2) CLOSING
COSTS.—The closing costs and
origination fee for such mortgage may be included in
the loan amount.
(3) INSURANCE
PREMIUM
PAYMENT.—There
shall be one insurance premium payment due on the
mortgage. Such insurance premium payment—
(A) shall be equal to 1 percent of the loan
amount;
(B) shall be due and considered earned by
the Secretary at the time of the loan closing;
and
(C) may be included in the loan amount
and paid from the loan proceeds.
(d) LOCALLY-DESIGNATED HIGH-CRIME AREA.—
(1) IN GENERAL.—Any unit of local govern-
ment may request that the Secretary designate any
area within the jurisdiction of that unit of local gov-
ernment as a locally-designated high-crime area for
purposes of this section if the proposed area—
(A) has a crime rate that is significantly
higher than the crime rate of the non-des-
ignated area that is within the jurisdiction of
the unit of local government; and
(B) has a population that is not more than
25 percent of the total population of area with-
in the jurisdiction of the unit of local govern-
ment.
(2) DEADLINE
FOR
CONSIDERATION
OF
RE-
QUEST.—Not later than 60 days after receiving a re-
quest under paragraph (1), the Secretary shall ap-
prove or disapprove the request.
(e) LAW ENFORCEMENT OFFICER.—For purposes of
this section, the term ‘‘law enforcement officer’’ has such
meaning as the Secretary shall provide, except that such
term shall include any individual who is employed as an
officer in a correctional institution.
(f) SUNSET.—The Secretary shall not approve any
application for assistance under this section that is re-
ceived by the Secretary after the expiration of the 3-year
period beginning on the date that the Secretary first
makes available assistance under the pilot program under
this section.
SEC. 210. STUDY OF MANDATORY INSPECTION REQUIRE-
MENT 
UNDER 
SINGLE 
FAMILY 
HOUSING
MORTGAGE INSURANCE PROGRAM.
(a) STUDY.—The Comptroller General of the United
States shall conduct a study regarding the inspection of
properties purchased with loans insured under section 203
of the National Housing Act. The study shall evaluate the
following issues:
(1) The feasibility of requiring inspections of all
properties purchased with loans insured under such
section.
(2) The level of financial losses or savings to
the Mutual Mortgage Insurance Fund that are likely
to occur if inspections are required on properties
purchased with loans insured under such section.
(3) The potential impact on the process of buy-
ing a home if inspections of properties purchased
with loans insured under such section are required,
including the process of buying a home in under-
served areas where losses to the Mutual Mortgage
Insurance Fund are greatest.
(4) The difference, if any, in the quality of
homes purchased with loans insured under such sec-
tion that are inspected before purchase and such
homes that are not inspected before purchase.
(5) The cost to homebuyers of requiring inspec-
tions before purchase of properties with loans in-
sured under such section.
(6) The extent, if any, to which requiring in-
spections of properties purchased with loans insured
under such section will result in adverse selection of
loans insured under such section.
(7) The extent of homebuyer knowledge regard-
ing property inspections and the extent to which
such knowledge affects the decision of homebuyers
to opt for or against having a property inspection
before purchasing a home.
(8) The impact of the Homebuyer Protection
Plan implemented by the Department of Housing
and Urban Development on the number of apprais-
ers authorized to appraise homes with mortgages in-
sured under section 203 of the National Housing
Act.
(9) The cost to homebuyers incurred as a result
of the Homebuyer Protection plan, taking into con-
sideration, among other factors, an increase in ap-
praisal fees.
(10) The benefit or adverse impact of the
Homebuyer Protection Plan on minority home-
buyers.
(11) The extent to which the appraisal require-
ments of the Homebuyer Protection Plan conflict
with State laws regarding appraisals and home in-
spections.
(b) REPORT.—Not later than the expiration of the
1-year period beginning on the date of the enactment of
this Act, the Comptroller General shall submit to the Con-
gress a report containing the results of the study and any
recommendations with respect to the issues specified
under this section.
SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN
PROGRAM.
(a) IN GENERAL.—Not later than 3 months after the
date of the enactment of this Act, the Secretary of Hous-
ing and Urban Development shall submit a report to the
Congress containing recommendations for improvements
to the property improvement loan insurance program
under title I of the National Housing Act, including im-
provements designed to address problems relating to home
improvement contractors obtaining loans on behalf of
homeowners.
(b) CONSULTATION.—In developing and determining
recommendations for inclusion in the report under this
section and in preparing the report, the Secretary shall
consult with interested persons, organizations, and enti-
ties, including representatives of the lending industry, the
home improvement industry, and consumer organizations.
SEC. 212. SENSE OF THE CONGRESS REGARDING MAKING
PROPERTIES AVAILABLE FOR HOMEOWNER-
SHIP PROGRAMS.
It is the sense of the Congress that the Secretary of
Housing and Urban Development should consult with the
heads of other agencies of the Federal Government that
own or hold properties appropriate for use as housing to
determine the possibility and effectiveness of including
such properties in programs that make housing available
for law enforcement officers, teachers, or fire fighters.
SEC. 213. PROPERTY IMPROVEMENT LOAN LIMIT FOR SIN-
GLE-FAMILY HOMES.
Section 2(b)(1)(A)(i) of the National Housing Act
(12 U.S.C. 1703(b)(1)(A)(i)) is amended by striking
‘‘$25,000’’ and inserting ‘‘$32,500’’.
TITLE III—SECTION 8
HOMEOWNERSHIP OPTION
SEC. 301. DOWNPAYMENT ASSISTANCE.
(a) AMENDMENTS.—Section 8(y) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(y)) is
amended—
(1) by redesignating paragraph (7) as para-
graph (8); and
(2) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) DOWNPAYMENT ASSISTANCE.—
‘‘(A) AUTHORITY.—A public housing agen-
cy may, in lieu of providing monthly assistance
payments under this subsection on behalf of a
family eligible for such assistance and at the
discretion of the public housing agency, provide
assistance for the family in the form of a single
grant to be used only as a contribution toward
the downpayment required in connection with
the purchase of a dwelling for fiscal year 2000
and each fiscal year thereafter to the extent
provided in advance in appropriations Acts.
‘‘(B) AMOUNT.—The amount of a down-
payment grant on behalf of an assisted family
may not exceed the amount that is equal to the
sum of the assistance payments that would be
made during the first year of assistance on be-
half of the family, based upon the income of the
family at the time the grant is to be made.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect immediately after the
amendments made by section 555(c) of the Quality Hous-
ing and Work Responsibility Act of 1998 take effect pur-
suant to such section.
SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST-
ANCE FOR DISABLED FAMILIES.
(a) IN GENERAL.—A public housing agency providing
tenant-based assistance on behalf of an eligible family
under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) may provide assistance for a disabled
family that purchases a dwelling unit (including a dwelling
unit under a lease-purchase agreement) that will be owned
by one or more members of the disabled family and will
be occupied by the disabled family, if the disabled family—
(1) purchases the dwelling unit before the expi-
ration of the 3-year period beginning on the date
that the Secretary first implements the pilot pro-
gram under this section;
(2) demonstrates that the disabled family has
income from employment or other sources (including
public assistance), as determined in accordance with
requirements of the Secretary, that is not less than
twice the payment standard established by the public
housing agency (or such other amount as may be es-
tablished by the Secretary);
(3) except as provided by the Secretary, dem-
onstrates at the time the disabled family initially re-
ceives tenant-based assistance under this section
that one or more adult members of the disabled fam-
ily have achieved employment for the period as the
Secretary shall require;
(4) participates in a homeownership and hous-
ing counseling program provided by the agency; and
(5) meets any other initial or continuing re-
quirements established by the public housing agency
in accordance with requirements established by the
Secretary.
(b) DETERMINATION OF AMOUNT OF ASSISTANCE.—
(1) IN GENERAL.—
(A) MONTHLY EXPENSES NOT EXCEEDING
PAYMENT
STANDARD.—If the monthly home-
ownership expenses, as determined in accord-
ance with requirements established by the Sec-
retary, do not exceed the payment standard, the
monthly assistance payment shall be the
amount by which the homeownership expenses
exceed the highest of the following amounts,
rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted
income of the disabled family.
(ii) 10 percent of the monthly income
of the disabled family.
(iii) If the disabled family is receiving
payments for welfare assistance from a
public agency, and a portion of those pay-
ments, adjusted in accordance with the ac-
tual housing costs of the disabled family, is
specifically designated by that agency to
meet the housing costs of the disabled fam-
ily, the portion of those payments that is
so designated.
(B) MONTHLY
EXPENSES
EXCEED
PAY-
MENT STANDARD.—If the monthly homeowner-
ship expenses, as determined in accordance with
requirements established by the Secretary, ex-
ceed the payment standard, the monthly assist-
ance payment shall be the amount by which the
applicable payment standard exceeds the high-
est of the amounts under clauses (i), (ii), and
(iii) of subparagraph (A).
(2) CALCULATION OF AMOUNT.—
(A) LOW-INCOME
FAMILIES.—A disabled
family that is a low-income family shall be eligi-
ble to receive 100 percent of the amount cal-
culated under paragraph (1).
(B) INCOME BETWEEN 81 AND 89 PERCENT
OF MEDIAN.—A disabled family whose income
is between 81 and 89 percent of the median for
the area shall be eligible to receive 66 percent
of the amount calculated under paragraph (1).
(C) INCOME BETWEEN 90 AND 99 PERCENT
OF MEDIAN.—A disabled family whose income
is between 90 and 99 percent of the median for
the area shall be eligible to receive 33 percent
of the amount calculated under paragraph (1).
(D) INCOME MORE THAN 99 PERCENT OF
MEDIAN.—A disabled family whose income is
more than 99 percent of the median for the
area shall not be eligible to receive assistance
under this section.
(c) INSPECTIONS AND CONTRACT CONDITIONS.—
(1) IN GENERAL.—Each contract for the pur-
chase of a dwelling unit to be assisted under this
section shall—
(A) provide for pre-purchase inspection of
the dwelling unit by an independent profes-
sional; and
(B) require that any cost of necessary re-
pairs be paid by the seller.
(2) ANNUAL
INSPECTIONS
NOT
REQUIRED.—
The requirement under subsection (o)(8)(A)(ii) of
section 8 of the United States Housing Act of 1937
for annual inspections shall not apply to dwelling
units assisted under this section.
(d) OTHER AUTHORITY OF THE SECRETARY.—The
Secretary may—
(1) limit the term of assistance for a disabled
family assisted under this section;
(2) provide assistance for a disabled family for
the entire term of a mortgage for a dwelling unit if
the disabled family remains eligible for such assist-
ance for such term; and
(3) modify the requirements of this section as
the Secretary determines to be necessary to make
appropriate adaptations for lease-purchase agree-
ments.
(e) ASSISTANCE PAYMENTS SENT TO LENDER.—The
Secretary shall remit assistance payments under this sec-
tion directly to the mortgagee of the dwelling unit pur-
chased by the disabled family receiving such assistance
payments.
(f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As-
sistance under this section shall not be subject to the re-
quirements of the following provisions:
(1) Subsection (c)(3)(B) of section 8 of the
United States Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the
United States Housing Act of 1937.
(3) Any other provisions of section 8 of the
United States Housing Act of 1937 governing max-
imum amounts payable to owners and amounts pay-
able by assisted families.
(4) Any other provisions of section 8 of the
United States Housing Act of 1937 concerning con-
tracts between public housing agencies and owners.
(5) Any other provisions of the United States
Housing Act of 1937 that are inconsistent with the
provisions of this section.
(g) REVERSION TO RENTAL STATUS.—
(1) NON-FHA MORTGAGES.—If a disabled fam-
ily receiving assistance under this section defaults
under a mortgage not insured under the National
Housing Act, the disabled family may not continue
to receive rental assistance under section 8 of the
United States Housing Act of 1937 unless it com-
plies with requirements established by the Secretary.
(2) ALL MORTGAGES.—A disabled family receiv-
ing assistance under this section that defaults under
a mortgage may not receive assistance under this
section for occupancy of another dwelling unit owned
by 1 or more members of the disabled family.
(3) EXCEPTION.—This subsection shall not
apply if the Secretary determines that the disabled
family receiving assistance under this section de-
faulted under a mortgage due to catastrophic med-
ical reasons or due to the impact of a federally de-
clared major disaster or emergency.
(h) REGULATIONS.—Not later than 90 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement this section. Such regulations
may not prohibit any public housing agency providing ten-
ant-based assistance on behalf of an eligible family under
section 8 of the United States Housing Act of 1937 from
participating in the pilot program under this section.
(i) DEFINITION
OF DISABLED FAMILY.—For the
purposes of this section, the term ‘‘disabled family’’ has
the meaning given the term ‘‘person with disabilities’’ in
section 811(k)(2) of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 8013(k)(2)).
SEC. 303. FUNDING FOR PILOT PROGRAMS.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $2,000,000 for fiscal year
2001 for assistance in connection with the existing home-
ownership pilot programs carried out under the dem-
onstration program authorized under to section 555(b) of
the Quality Housing and Work Responsibility Act of 1998
(Public Law 105–276; 112 Stat. 2613).
(b) USE.—Subject to subsection (c), amounts made
available pursuant to this section shall be used only
through such homeownership pilot programs to provide,
on behalf of families participating in such programs,
amounts for downpayments in connection with dwellings
purchased by such families using assistance made avail-
able under section 8(y) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(y)). No such downpayment
grant may exceed 20 percent of the appraised value of the
dwelling purchased with assistance under such section
8(y).
(c) MATCHING REQUIREMENT.—The amount of as-
sistance made available under this section for any existing
homeownership pilot program may not exceed twice the
amount donated from sources other than this section for
use under the program for assistance described in sub-
section (b). Amounts donated from other sources may in-
clude amounts from State housing finance agencies and
Neighborhood Housing Services of America.
TITLE IV—COMMUNITY
DEVELOPMENT BLOCK GRANTS
SEC. 401. REAUTHORIZATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—The last
sentence of section 103 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5303) is amended
to read as follows: ‘‘For purposes of assistance under sec-
tion 106, there is authorized to be appropriated
$4,900,000,000 for fiscal year 2001 and such sums as
may be necessary for each of fiscal years 2002, 2003,
2004, and 2005.’’.
(b) ENTITLEMENT GRANTS.—
(1) IN GENERAL.—Section 102(a)(5)(B) of the
Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)(5)(B)) is amended—
(A) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and
(B) by inserting before the period at the
end the following: ‘‘, or (II) has a population in
its unincorporated areas of not less than
450,000, except that a town or township which
is designated as a city pursuant to this sub-
clause shall have only its unincorporated areas
considered as a city for purposes of this title’’.
(2) TREATMENT
AS
SEPARATE
FROM
URBAN
COUNTIES.—Section 102(d) of the Housing and
Community Development Act of 1974 (42 U.S.C.
5302(d)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) Notwithstanding paragraph (1), a town or town-
ship that is classified as a city by reason of subclause (II)
of section 102(a)(5)(B)(iii) shall be treated, for purposes
of eligibility for a grant under section 106(b)(1) from
amounts made available for a fiscal year beginning after
the date of the enactment of the American Homeowner-
ship and Economic Opportunity Act of 2000, as an entity
separate from the urban county in which it is located.’’.
(3) ELIGIBILITY
OF
CERTAIN
URBAN
COUN-
TIES.—Section 102(a)(6) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C.
5302(a)(6)) is amended—
(1) in subparagraph (D)—
(A) in clause (v), by striking ‘‘or’’ at the
end;
(B) in clause (vi), by striking the period at
the end and inserting ‘‘; or’’; and
(C) by adding at the end the following new
clause:
‘‘(vii)(I) has consolidated its government
with one or more municipal governments, such
that within the county boundaries there are no
unincorporated areas, (II) has a population of
not less than 650,000, over which the consoli-
dated government has the authority to under-
take essential community development and
housing assistance activities, (III) for more
than 10 years, has been classified as an entitle-
ment area for purposes of allocating and dis-
tributing funds under section 106, and (IV) as
of the date of the enactment of this clause, has
over 90 percent of the county’s population with-
in the jurisdiction of the consolidated govern-
ment.’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(F) Notwithstanding any other provision of
this paragraph, any county that was classified as an
urban county pursuant to subparagraph (A) for fis-
cal year 1999, includes 10 cities each having a popu-
lation of less than 50,000, and has a population in
its unincorporated areas of 190,000 or more but less
than 200,000, shall thereafter remain classified as
an urban county.’’.
SEC. 402. PROHIBITION OF SET-ASIDES.
Section 103 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5303), as amended by sec-
tion 401 of this Act, is further amended—
(1) by inserting after ‘‘SEC. 103.’’ the fol-
lowing: ‘‘(a) IN GENERAL.—’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro-
vided in paragraphs (1) and (2) of section 106(a) and sec-
tion 107, amounts appropriated pursuant to subsection (a)
of this section or otherwise to carry out this title (other
than section 108) shall be used only for formula-based
grants allocated pursuant to section 106 and may not be
otherwise used unless the provision of law providing for
such other use specifically refers to this subsection and
specifically states that such provision modifies or super-
sedes the provisions of this subsection.’’.
SEC. 403. PUBLIC SERVICES CAP.
Section 105(a)(8) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is
amended by striking ‘‘fiscal years 1993’’ and all that fol-
lows through ‘‘unit of general local government’’ and in-
serting the following: ‘‘fiscal years 1993 through 2006 to
the City of Los Angeles, the County of Los Angeles, or
any other unit of general local government located in the
County of Los Angeles, such city, such county, or each
such unit of general local government, respectively,’’.
SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) ELIGIBLE ACTIVITIES.—Section 105(a) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)) is amended—
(1) in paragraph (22)(C), by striking ‘‘and’’ at
the end;
(2) in paragraph (23), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (23) the fol-
lowing new paragraph:
‘‘(24) provision of direct assistance to facilitate
and expand homeownership among uniformed em-
ployees (including policemen, firemen, and sanitation
and other maintenance workers) of, and teachers
who are employees of, the metropolitan city or urban
county (or an agency or school district serving such
city or county) receiving grant amounts under this
title pursuant to section 106(b) or the unit of gen-
eral local government (or an agency or school dis-
trict serving such unit) receiving such grant
amounts pursuant to section 106(d), except that—
‘‘(A) such assistance may only be provided
on behalf of such employees who are first-time
homebuyers under the meaning given such term
in section 104(14) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
12704(14)), except that, for purposes of this
paragraph, such section shall be applied by sub-
stituting ‘section 105(a)(24) of the Housing
and Community Development Act of 1974’ for
‘title II’;
‘‘(B) 
notwithstanding 
section
102(a)(20)(B) or any other provision of this
title, such assistance may be provided on behalf
of such employees whose family incomes do not
exceed—
‘‘(i) 115 percent of the median income
of the area involved, as determined by the
Secretary with adjustments for smaller and
larger families; or
‘‘(ii) with respect only to areas that
the Secretary determines have high hous-
ing costs, taking into consideration median
house prices and median family incomes
for the area, 150 percent of the median in-
come of the area involved, as determined
by the Secretary with adjustments for
smaller and larger families;
‘‘(C) such assistance shall be used only for
acquiring principal residences for such employ-
ees, in a manner that involves obligating
amounts with respect to any particular mort-
gage over a period of 1 year or less, by—
‘‘(i) 
providing 
amounts 
for
downpayments on mortgages;
‘‘(ii) paying reasonable closing costs
normally associated with the purchase of a
residence;
‘‘(iii) obtaining pre- or post-purchase
counseling relating to the financial and
other obligations of homeownership; or
‘‘(iv) subsidizing mortgage interest
rates; and
‘‘(D) any residence purchased using assist-
ance provided under this paragraph shall be
subject to restrictions on resale that are—
‘‘(i) established by the metropolitan
city, urban county, or unit of general local
government providing such assistance; and
‘‘(ii) determined by the Secretary to
be appropriate to comply with subpara-
graphs (A) and (B) of section 215(b)(3) of
the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)(3)), ex-
cept that, for purposes of this paragraph,
such subparagraphs shall be applied by
substituting ‘section 105(a)(24) of the
Housing and Community Development Act
of 1974’ for ‘this title’;’’.
(b) PRIMARY OBJECTIVES.—Section 105(c) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(c)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) HOMEOWNERSHIP ASSISTANCE FOR MUNICIPAL
EMPLOYEES.—Notwithstanding any other provision of this
title, any assisted activity described in subsection (a)(24)
of this section shall be considered, for purposes of this
title, to benefit persons of low and moderate income and
to be directed toward the objective under section
101(c)(3).’’.
SEC. 
405. 
TECHNICAL 
AMENDMENT 
RELATING 
TO
BROWNFIELDS.
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)), as amended
by section 404 of this Act, is further amended—
(1) in paragraph (25), by striking the period
and inserting ‘‘; and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(26) environmental cleanup and economic de-
velopment activities related to Brownfields projects
in conjunction with the appropriate environmental
regulatory agencies.’’.
SEC. 406. INCOME ELIGIBILITY.
(a) IN GENERAL.—In addition to the exceptions
granted pursuant to section 590 of the Quality Housing
and Work Responsibility Act of 1998 (42 U.S.C. 5301
note), the Secretary of Housing and Urban Development
shall, for not less than 10 other jurisdictions that are met-
ropolitan cities or urban counties for purposes of title I
of the Housing and Community Development Act of 1974,
grant exceptions not later than 90 days after the date of
the enactment of this Act for such jurisdictions that pro-
vide that—
(1) for purposes of the HOME investment part-
nerships program under title II of the Cranston-
Gonzalez National Affordable Housing Act, the limi-
tation based on percentage of median income that is
applicable under section 104(10), 214(1)(A), or
215(a)(1)(A) for any area of the jurisdiction shall be
the numerical percentage that is specified in such
section; and
(2) for purposes of the community development
block grant program under title I of the Housing
and Community Development Act of 1974, the limi-
tation based on percentage of median income that is
applicable pursuant to section 102(a)(20) for any
area within the State or unit of general local govern-
ment shall be the numerical percentage that is speci-
fied in subparagraph (A) of such section.
(b) SELECTION.—In selecting the jurisdictions for
which to grant such exceptions, the Secretary shall con-
sider the relative median income of such jurisdictions and
shall give preference to jurisdictions with the highest hous-
ing costs.
SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH
AIDS.
Section 863 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12912) is amended to
read as follows:
‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subtitle $275,000,000 for fiscal year 2001 and such
sums as may be necessary for each of fiscal years 2002,
2003, 2004, and 2005.’’.
SEC. 408. PROHIBITION ON USE OF AMOUNTS TO ACQUIRE
CHURCH PROPERTY.
Section 105 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5305) is amended by adding
at the end the following new subsection:
‘‘(i) PROHIBITION ON USE OF ASSISTANCE TO AC-
QUIRE CHURCH PROPERTY.—Notwithstanding any other
provision of this section, no amount from a grant under
section 106 may be used to carry out or assist any activity
if such activity, or the project for which such activity is
to be conducted, involves acquisition of real property
owned by a church that is exempt from tax under section
501(a) of the Internal Revenue Code of 1986 (26 U.S.C.
501(a)), unless the governing body of the church has pre-
viously consented to such acquisition.’’.
SEC. 409. CDBG SPECIAL PURPOSE GRANTS.
Section 107(a)(1) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5307(a)(1)) is
amended—
(1) in the matter preceding subparagraph (A)—
(A) by striking ‘‘$60,000,000’’ and insert-
ing ‘‘$95,000,000’’; and
(B) by striking ‘‘subsection (b)’’ and in-
serting ‘‘this section’’; and
(2) by striking subparagraph (G) and inserting
the following new subparagraph:
‘‘(G) $35,000,000 shall be available in fis-
cal year 2001 for a grant to the City of
Youngstown, Ohio, for the site acquisition,
planning, architectural design, and construction
of a convocation and community center in such
city;’’.
TITLE V—HOME INVESTMENT
PARTNERSHIPS PROGRAM
SEC. 501. REAUTHORIZATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
205 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12724) is amended to read as follows:
‘‘SEC. 205. AUTHORIZATION.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $1,650,000,000 for fiscal
year 2001 and such sums as may be necessary for each
of fiscal years 2002, 2003, 2004, and 2005, of which—
‘‘(1) not more than $25,000,000 in each such
fiscal year shall be for community housing partner-
ship activities authorized under section 233; and
‘‘(2) not more than $15,000,000 in each such
fiscal year shall be for activities in support of State
and local housing strategies authorized under sub-
title C, of which, in each of fiscal years 2001 and
2002, $3,000,000 shall be for funding grants under
section 246.
‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro-
vided in subsection (a) of this section and section
217(a)(3), amounts appropriated pursuant to subsection
(a) of this section or otherwise to carry out this title shall
be used only for formula-based grants allocated pursuant
to section 217 and may not be otherwise used unless the
provision of law providing for such other use specifically
refers to this subsection and specifically states that such
provision modifies or supersedes the provisions of this sub-
section.’’.
(b) ALLOCATIONS OF AMOUNTS.—Section 104(19) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12704(19)) is amended by adding at the end
the following: ‘‘The term ‘city’ shall have the meaning
given such term in section 102(a)(5)(B) of such Act. A
town or township that is classified as a city by reason of
subclause (II) of section 102(a)(5)(A)(B)(iii) of such Act
shall be treated, notwithstanding section 102(d)(1) of such
Act, as an entity separate from the urban county in which
it is located for purposes of allocation of amounts under
section 217 of this Act to units of general local govern-
ment from amounts made available for any fiscal year be-
ginning after the date of the enactment of the American
Homeownership and Economic Opportunity Act of
2000.’’.
(c) PILOT PROGRAM FOR DEVELOPING REGIONAL
HOUSING STRATEGIES.—Subtitle C of title II of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12781 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 
246. 
PILOT 
PROGRAM 
FOR 
DEVELOPING 
COM-
PREHENSIVE REGIONAL HOUSING AFFORD-
ABILITY STRATEGIES.
‘‘(a) AUTHORITY.—The Secretary may, using any
amounts made available for grants under this section,
make not more than three grants for each of fiscal years
2001 and 2002 to consortia of units of general local gov-
ernment described in subsection (b) for costs of developing
and implementing comprehensive housing affordability
strategies on a regional basis.
‘‘(b) ELIGIBLE CONSORTIA.—A consortium of units
of general local government described in this subsection
is a consortium that—
‘‘(1) is eligible under section 216(2) to be
deemed a unit of general local government for pur-
poses of this title;
‘‘(2) consists of multiple units of general local
government; and
‘‘(3) contains only units of general local govern-
ment that are geographically contiguous.
‘‘(c) MULTI-STATE REQUIREMENT.—In each fiscal
year in which grants are made under this section, not less
than one of the consortia that receives a grant shall be
a consortium described in subsection (b) that includes
units of general local government from two or more
States.’’.
SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES
AND MUTUAL HOUSING ASSOCIATIONS.
(a) CONGRESSIONAL FINDINGS.—Section 202(10) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721(10)) is amended by inserting ‘‘mutual
housing associations,’’ after ‘‘limited equity cooperatives,’’.
(b) DEFINITIONS.—Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704) is amended—
(1) by redesignating paragraph (23) as para-
graph (22);
(2) by redesignating paragraph (24) (relating to
the definition of ‘‘insular area’’) as paragraph (23);
and
(3) by adding at the end the following new
paragraphs:
‘‘(26) The term ‘limited equity cooperative’
means a cooperative housing corporation which, in a
manner determined by the Secretary to be accept-
able, restricts income eligibility of purchasers of
membership shares of stock in the cooperative cor-
poration or the initial and resale price of such
shares, or both, so that the shares remain available
and affordable to low-income families.
‘‘(27) The term ‘mutual housing association’
means a private entity that—
‘‘(A) is organized under State law;
‘‘(B) is described in section 501(c) of the
Internal Revenue Code of 1986 and exempt
from taxation under section 501(a) of such
Code;
‘‘(C) owns, manages, and continuously de-
velops affordable housing by providing long-
term housing for low- and moderate-income
families;
‘‘(D) provides that eligible families who
purchase membership interests in the associa-
tion shall have a right to residence in a dwelling
unit in the housing during the period that they
hold such membership interest; and
‘‘(E) provides for the residents of such
housing to participate in the ongoing manage-
ment of the housing.’’.
(c) ELIGIBILITY.—Section 215 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12745)
is amended—
(1) in subsection (b), by adding after and below
paragraph (4) the following:
‘‘Housing that is owned by a limited equity cooperative
or a mutual housing association may be considered by a
participating jurisdiction to be housing for homeownership
for purposes of this title to the extent that ownership or
membership in such a cooperative or association, respec-
tively, constitutes homeownership under State or local
laws.’’; and
(2) in subsection (a), by adding at the end the
following new paragraph:
‘‘(6) LIMITED EQUITY COOPERATIVES AND MU-
TUAL
HOUSING
ASSOCIATIONS.—Housing that is
owned by a limited equity cooperative or a mutual
housing association may be considered by a partici-
pating jurisdiction to be rental housing for purposes
of this title to the extent that ownership or member-
ship in such a cooperative or association, respec-
tively, constitutes rental of a dwelling under State or
local laws.’’.
SEC. 503. ADMINISTRATIVE COSTS.
Section 212(c) of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12742(c)) is amended
by adding at the end the following new sentence: ‘‘A par-
ticipating jurisdiction may use amounts made available
under this subsection for a fiscal year for administrative
and planning costs by amortizing the costs of administra-
tion and planning activities under this subtitle over the
entire duration of such activities.’’.
SEC. 504. LEVERAGING AFFORDABLE HOUSING INVEST-
MENT THROUGH LOCAL LOAN POOLS.
(a) ELIGIBLE INVESTMENTS.—Section 212(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(b)) is amended by inserting after ‘‘interest
subsidies’’ the following: ‘‘, advances to provide reserves
for loan pools or to provide partial loan guarantees,’’.
(b) TIMELY INVESTMENT OF TRUST FUNDS.—Sec-
tion 218(e) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12748) is amended to read as
follows:
‘‘(e) INVESTMENT WITHIN 15 DAYS.—
‘‘(1) IN GENERAL.—The participating jurisdic-
tion shall, not later than 15 days after funds are
drawn from the jurisdiction’s HOME Investment
Trust Fund, invest such funds, together with any in-
terest earned thereon, in the affordable housing for
which the funds were withdrawn.
‘‘(2) LOAN POOLS.—In the case of a partici-
pating jurisdiction that withdraws Trust Fund
amounts for investment in the form of an advance
for reserves or partial loan guarantees under a pro-
gram providing such credit enhancement for loans
for affordable housing, the amounts shall be consid-
ered to be invested for purposes of paragraph (1)
upon the completion of both of the following actions:
‘‘(A) Control of the amounts is transferred
to the program.
‘‘(B) The jurisdiction and the entity oper-
ating the program enter into a written agree-
ment that—
‘‘(i) provides that such funds may be
used only in connection with such program;
‘‘(ii) defines the terms and conditions
of the loan pool reserve or partial loan
guarantees; and
‘‘(iii) provides that such entity shall
ensure that amounts from non-Federal
sources have been contributed, or are com-
mitted for contribution, to the pool avail-
able for loans for affordable housing that
will be backed by such reserves or loan
guarantees in an amount equal to 10 times
the amount invested from Trust Fund
amounts.’’.
(c) EXPIRATION OF RIGHT TO WITHDRAW FUNDS.—
Section 218(g) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12748(g)) is amended to
read as follows:
‘‘(g) EXPIRATION OF RIGHT TO DRAW FUNDS.—
‘‘(1) IN
GENERAL.—If any funds becoming
available to a participating jurisdiction under this
title are not placed under binding commitment to af-
fordable housing within 24 months after the last day
of the month in which such funds are deposited in
the jurisdiction’s HOME Investment Trust Fund,
the jurisdiction’s right to draw such funds from the
HOME Investment Trust Fund shall expire. The
Secretary shall reduce the line of credit in the par-
ticipating jurisdiction’s HOME Investment Trust
Fund by the expiring amount and shall reallocate
the funds by formula in accordance with section
217(d).
‘‘(2) LOAN POOLS.—In the case of a partici-
pating jurisdiction that withdraws Trust Fund
amounts for investment in the manner provided
under subsection (e)(2), the amounts shall be consid-
ered to be placed under binding commitment to af-
fordable housing for purposes of paragraph (1) of
this subsection at the time that the amounts are ob-
ligated for use under, and are subject to, a written
agreement described in subsection (e)(2)(B).’’.
(d) TREATMENT OF MIXED INCOME LOAN POOLS AS
AFFORDABLE HOUSING.—
(1) IN GENERAL.—Section 215 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745) is amended by adding at the end the
following new subsection:
‘‘(c) LOAN POOLS.—Notwithstanding subsections (a)
and (b), housing financed using amounts invested as pro-
vided in section 218(e)(2) shall qualify as affordable hous-
ing only if the housing complies with the following require-
ments:
‘‘(1) In the case of housing that is for
homeownership—
‘‘(A) of the units financed with amounts so
invested—
‘‘(i) not less than 75 percent are prin-
cipal residences of owners whose families
qualify as low-income families—
‘‘(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
‘‘(II) in the case of a lease-pur-
chase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
‘‘(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed;
‘‘(ii) all are principal residences of
owners whose families qualify as moderate-
income families—
‘‘(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
‘‘(II) in the case of a lease-pur-
chase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
‘‘(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed; and
‘‘(iii) all comply with paragraphs (3)
and (4) of subsection (b), except that para-
graph (3) shall be applied for purposes of
this clause by substituting ‘subsection
(c)(2)(B)’ and ‘low- and moderate-income
homebuyers’ for ‘paragraph (2)’ and ‘low-
income homebuyers’, respectively; and
‘‘(B) units made available for purchase
only by families who qualify as low-income fam-
ilies shall have an initial purchase price that
complies with the requirements of subsection
(b)(1).
‘‘(2) In the case of housing that is for rental,
the housing—
‘‘(A) complies with subparagraphs (D)
through (F) of subsection (a)(1);
‘‘(B)(i) has not less than 75 percent of the
units occupied by households that qualify as
low-income families and is occupied only by
households that qualify as moderate-income
families; or
‘‘(ii) temporarily fails to comply with
clause (i) only because of increases in the in-
comes of existing tenants and actions satisfac-
tory to the Secretary are being taken to ensure
that all vacancies in the housing are being filled
in accordance with clause (i) until such non-
compliance is corrected; and
‘‘(C) bears rents, in the case of units made
available for occupancy only by households that
qualify as low-income families, that comply with
the requirements of subsection (a)(1)(A).
Paragraphs (4) and (5) of subsection (a) shall apply
to housing that is subject to this subsection.’’.
(2) DEFINITION.—Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12704), as amended by section 502 of this
Act, is further amended by adding at the end the
following new paragraph:
‘‘(28) The term ‘moderate income families’
means families whose incomes do not exceed the me-
dian income for the area, as determined by the Sec-
retary with adjustments for smaller and larger fami-
lies, except that the Secretary may establish income
ceilings higher or lower than the median income for
the area on the basis of the Secretary’s findings that
such variations are necessary because of prevailing
levels of construction costs or fair market rents, or
unusually high or low family incomes.’’.
SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) ELIGIBLE ACTIVITIES.—Paragraph (2) of section
215(b) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)(2)) is amended to read
as follows:
‘‘(2) is the principal residence of an owner
who—
‘‘(A) is a member of a family that qualifies
as a low-income family—
‘‘(i) in the case of a contract to pur-
chase existing housing, at the time of pur-
chase;
‘‘(ii) in the case of a lease-purchase
agreement for existing housing or for hous-
ing to be constructed, at the time the
agreement is signed; or
‘‘(iii) in the case of a contract to pur-
chase housing to be constructed, at the
time the contract is signed; or
‘‘(B)(i) is a uniformed employee (which
shall include policemen, firemen, and sanitation
and other maintenance workers) or a teacher
who is an employee, of the participating juris-
diction (or an agency or school district serving
such jurisdiction) that is investing funds made
available under this subtitle to support home-
ownership of the residence; and
‘‘(ii) is a member of a family whose in-
come, at the time referred to in clause (i), (ii),
or (iii) of subparagraph (A), as appropriate,
and as determined by the Secretary with ad-
justments for smaller and larger families, does
not exceed 115 percent of the median income of
the area, except that, with respect only to such
areas that the Secretary determines have high
housing costs, taking into consideration median
house prices and median family incomes for the
area, such income limitation shall be 150 per-
cent of the median income of the area, as deter-
mined by the Secretary with adjustments for
smaller and larger families;’’.
(b) INCOME TARGETING.—Section 214(2) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12744(2)) is amended by inserting before the semi-
colon the following: ‘‘or families described in section
215(b)(2)(B)’’.
(c) ELIGIBLE INVESTMENTS.—Section 212(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(b)) is amended by adding at the end the
following new sentence: ‘‘Notwithstanding the preceding
sentence, in the case of homeownership assistance for resi-
dences of owners described in section 215(b)(2)(B), funds
made available under this subtitle may only be invested
(A) to provide amounts for downpayments on mortgages,
(B) to pay reasonable closing costs normally associated
with the purchase of a residence, (C) to obtain pre- or
post-purchase counseling relating to the financial and
other obligations of homeownership, or (D) to subsidize
mortgage interest rates.’’.
SEC. 506. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMI-
LIES’’ TO RENT DWELLING UNITS IN AS-
SISTED PROJECTS.
Section 215(a) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12745(a)), as amend-
ed by the preceding provisions of this Act, is further
amended by adding at the end the following new para-
graph:
‘‘(7) WAIVER OF QUALIFYING RENT.—
‘‘(A) IN
GENERAL.—For the purpose of
providing affordable housing appropriate for
families described in subparagraph (B), the
Secretary may, upon the application of the
project owner, waive the applicability of sub-
paragraph (A) of paragraph (1) with respect to
a dwelling unit if—
‘‘(i) the unit is occupied by such a
family, on whose behalf tenant-based as-
sistance is provided under section 8 of the
United States Housing Act of 1937 (42
U.S.C. 1437f);
‘‘(ii) the rent for the unit is not great-
er than the existing fair market rent for
comparable units in the area, as estab-
lished by the Secretary under section 8 of
the United States Housing Act of 1937;
and
‘‘(iii) the Secretary determines that
the waiver, together with waivers under
this paragraph for other dwelling units in
the project, will result in the use of
amounts described in clause (iii) in an ef-
fective manner that will improve the provi-
sion of affordable housing for such fami-
lies.
‘‘(B) ELIGIBLE FAMILIES.—A family de-
scribed in this subparagraph is a family that
consists of at least one elderly person (who is
the head of household) and one or more of such
person’s grand children, great grandchildren,
great nieces, great nephews, or great great
grandchildren (as defined by the Secretary), but
does not include any parent of such grand-
children, great grandchildren, great nieces,
great nephews, or great great grandchildren.
Such term includes any such grandchildren,
great grandchildren, great nieces, great neph-
ews, or great great grandchildren who have
been legally adopted by such elderly person.’’.
SEC. 507. LOAN GUARANTEES.
Subtitle A of title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12741 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 227. LOAN GUARANTEES.
‘‘(a) AUTHORITY.—The Secretary may, upon such
terms and conditions as the Secretary may prescribe,
guarantee and make commitments to guarantee, only to
such extent or in such amounts as provided in appropria-
tions Acts, the notes or other obligations issued by eligible
participating jurisdictions or by public agencies designated
by and acting on behalf of eligible participating jurisdic-
tions for purposes of financing (including credit enhance-
ments and debt service reserves) the acquisition, new con-
struction, reconstruction, or moderate or substantial reha-
bilitation of affordable housing (including real property ac-
quisition, site improvement, conversion, and demolition),
and other related expenses (including financing costs and
relocation expenses of any displaced persons, families,
businesses, or organizations). Housing funded under this
section shall meet the requirements of this subtitle.
‘‘(b) REQUIREMENTS.—Notes or other obligations
guaranteed under this section shall be in such form and
denominations, have such maturities, and be subject to
such conditions as may be prescribed by the Secretary.
The Secretary may not deny a guarantee under this sec-
tion on the basis of the proposed repayment period for
the note or other obligation, unless the period is more than
20 years or the Secretary determines that the period oth-
erwise causes the guarantee to constitute an unacceptable
financial risk.
‘‘(c) LIMITATION ON TOTAL NOTES AND OBLIGA-
TIONS.—The Secretary may not guarantee or make a com-
mitment to guarantee any note or other obligation if the
100
total outstanding notes or obligations guaranteed under
this section on behalf of the participating jurisdiction
issuing the note or obligation (excluding any amount
defeased under a contract entered into under subsection
(e)(1)) would thereby exceed an amount equal to five times
the amount of the participating jurisdiction’s latest alloca-
tion under section 217.
‘‘(d) USE OF PROGRAM FUNDS.—Notwithstanding
any other provision of this subtitle, funds allocated to the
participating jurisdiction under this subtitle (including
program income derived therefrom) are authorized for use
in the payment of principal and interest due on the notes
or other obligations guaranteed pursuant to this section
and the payment of such servicing, underwriting, or other
issuance or collection charges as may be specified by the
Secretary.
‘‘(e) SECURITY.—To assure the full repayment of
notes or other obligations guaranteed under this section,
and payment of the issuance or collection charges specified
by the Secretary under subsection (d), and as a prior con-
dition for receiving such guarantees, the Secretary shall
require the participating jurisdiction (and its designated
public agency issuer, if any) to—
101
‘‘(1) enter into a contract, in a form acceptable
to the Secretary, for repayment of such notes or
other obligations and the other specified charges;
‘‘(2) pledge as security for such repayment any
allocation for which the participating jurisdiction
may become eligible under this subtitle; and
‘‘(3) furnish, at the discretion of the Secretary,
such other security as may be deemed appropriate
by the Secretary in making such guarantees, which
may include increments in local tax receipts gen-
erated by the housing assisted under this section or
disposition proceeds from the sale of land or hous-
ing.
‘‘(f) REPAYMENT AUTHORITY.—The Secretary may,
notwithstanding any other provision of this subtitle or any
other Federal, State, or local law, apply allocations
pledged pursuant to subsection (e) to any repayments due
the United States as a result of such guarantees.
‘‘(g) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence
of the eligibility of the notes or other obligations for such
guarantee with respect to principal and interest, and the
102
validity of any such guarantee so made shall be incontest-
able in the hands of a holder of the guaranteed obligations.
‘‘(h) TAX STATUS.—With respect to any obligation
guaranteed pursuant to this section, the guarantee and
the obligation shall be designed in a manner such that the
interest paid on such obligation shall be included in gross
income for purposes of the Internal Revenue Code of
1986.
‘‘(i) MONITORING.—The Secretary shall monitor the
use of guarantees under this section by eligible partici-
pating jurisdictions. If the Secretary finds that 50 percent
of the aggregate guarantee authority for any fiscal year
has been committed, the Secretary may impose limitations
on the amount of guarantees any one participating juris-
diction may receive during that fiscal year.
‘‘(j) GUARANTEE OF TRUST CERTIFICATES.—
‘‘(1) AUTHORITY.—The Secretary may, upon
such terms and conditions as the Secretary deems
appropriate, guarantee the timely payment of the
principal of and interest on such trust certificates or
other obligations as may—
‘‘(A) be offered by the Secretary or by any
other offeror approved for purposes of this sub-
section by the Secretary; and
103
‘‘(B) be based on and backed by a trust or
pool composed of notes or other obligations
guaranteed or eligible for guarantee by the Sec-
retary under this section.
‘‘(2) FULL FAITH AND CREDIT.—To the same
extent as provided in subsection (g), the full faith
and credit of the United States is pledged to the
payment of all amounts which may be required to be
paid under any guarantee by the Secretary under
this subsection.
‘‘(3) SUBROGATION.—In the event the Sec-
retary pays a claim under a guarantee issued under
this section, the Secretary shall be subrogated fully
to the rights satisfied by such payment.
‘‘(4) OTHER POWERS AND RIGHTS.—No State
or local law, and no Federal law, shall preclude or
limit the exercise by the Secretary of—
‘‘(A) the power to contract with respect to
public offerings and other sales of notes, trust
certificates, and other obligations guaranteed
under this section, upon such terms and condi-
tions as the Secretary deems appropriate;
‘‘(B) the right to enforce, by any means
deemed appropriate by the Secretary, any such
contract; and
104
‘‘(C) the Secretary’s ownership rights, as
applicable, in notes, certificates or other obliga-
tions guaranteed under this section, or consti-
tuting the trust or pool against which trust cer-
tificates or other obligations guaranteed under
this section are offered.
‘‘(k) AGGREGATE LIMITATION.—The total amount of
outstanding obligations guaranteed on a cumulative basis
by the Secretary under this section shall not at any time
exceed $2,000,000,000.’’.
SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAM-
ILY RESIDENCES.
(a) AUTHORITY.—The Secretary of Housing and
Urban Development shall carry out a pilot program under
this section under which covered jurisdictions may use
amounts described in subsection (b) to make loans to eligi-
ble homebuyers for use as downpayments on 2- and 3-
family residences.
(b) COVERED ASSISTANCE.—Notwithstanding sec-
tion 105 of the Housing and Community Development Act
of 1974 (42 U.S.C. 5305) and section 212 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742), a covered jurisdiction may use amounts
provided to the jurisdiction pursuant to section 106(b) of
the Housing and Community Development Act of 1974
105
(42 U.S.C. 5406(b)) and amounts in the HOME Invest-
ment Trust Fund for the jurisdiction for downpayment
loans meeting the requirements of subsection (d) to home-
buyers meeting the requirements of subsection (c), but
only to the extent such jurisdictions agree to comply with
the requirements of this section, as the Secretary may re-
quire.
(c) ELIGIBLE HOMEBUYERS.—A homebuyer meets
the requirements of this subsection only if the homebuyer
is an individual or family—
(1) whose income does not exceed 80 percent of
the median family income for the area within which
the residence to be purchased with the downpayment
loan under subsection (d) is located; except that the
Secretary may, pursuant to a request by a covered
jurisdiction demonstrating that the jurisdiction has
high housing costs (taking into consideration median
home prices and median family incomes for the
area), increase the percentage limitation under this
paragraph to not more than 110 percent of the me-
dian family income for the area;
(2) who has successfully completed a program
regarding the responsibilities and financial manage-
ment involved in homeownership and ownership of
rental property that is approved by the Secretary;
106
(3) has a satisfactory credit history and record
as a tenant of rental housing; and
(4) who, if such individual or family has an in-
come that exceeds 80 percent of the median income
for the area, enters into a binding agreement to
comply with the requirements under subsection (e)
(relating to affordability of other dwelling units in
the residence).
(d) NO-INTEREST DOWNPAYMENT LOANS.—A loan
meets the requirements of this subsection only if—
(1) the principal obligation of the loan—
(A) may be used only for a downpayment
for acquisition of a 2- or 3-family residence and
for closing costs and other costs payable at the
time of closing, as the Secretary shall provide;
and
(B) does not exceed the amount that is
equal to the sum of: (i) 7 percent of the pur-
chase price of the residence; and (ii) such clos-
ing and other costs;
(2) the borrower under the loan is paying, for
acquisition of the residence, at least 3 percent of the
cost of acquisition of the residence in cash or its
equivalent;
107
(3) the borrower under the loan will occupy a
dwelling unit in the residence purchased using the
loan as the principal residence of the borrower;
(4) the loan terms—
(A) do not require the borrower to be pre-
qualified for a loan that finances the remainder
of the purchase price of a residence described in
paragraph (1)(A); and
(B) provide that the proceeds of the loan
are available for use (as provided in paragraph
(1)) only during the 4-month period beginning
upon the making of the loan to the borrower
and that such proceeds shall revert to the cov-
ered jurisdiction upon the conclusion of such
period if the borrower has not entered into a
contract for purchase of a residence meeting
the requirements of such paragraph before such
conclusion, except that the Secretary shall pro-
vide that covered jurisdictions may extend such
4-month period under such circumstances as
the Secretary shall prescribe;
(5) the loan terms provide for repayment of the
principal obligation of the loan, without interest, at
such time as the covered jurisdiction may provide,
108
except that the principal obligation shall be imme-
diately repayable at the time that the borrower—
(A) transfers or sells the borrower’s owner-
ship interest in such residence or ceases to use
the residence purchased with the loan proceeds
as his or her principal residence; or
(B) obtains a subsequent loan secured by
such residence or any equity of the borrower in
such residence, the proceeds of which are not
used to prepay or pay off the entire balance due
on the existing loan secured by such residence;
or
(6) the loan terms provide that, upon sale of
the residence purchased with the proceeds of the
loan, the borrower shall repay to the covered juris-
diction (together with the principal obligation of the
loan repayable pursuant to paragraph (5)(A)) an ad-
ditional amount that bears the same ratio to any in-
crease in the price of the residence upon such sale
(compared to the price paid for the residence upon
purchase using such loan) as the amount of the loan
bears to the purchase price paid for the residence in
the purchase using such loan; and
(7) the loan complies with such other require-
ments as the Secretary may prescribe.
109
(e) AFFORDABILITY OF RENTAL UNITS.—Any dwell-
ing units in the residence purchased using a loan provided
pursuant to the authority under this section to a borrower
described in subsection (c)(4) of this section shall be used
only as rental dwelling units and shall be made available
for rental only at a monthly rental price that does not
exceed the fair market rent under section 8(c)(2)(A) of
the United States Housing Act of 1937 (42 U.S.C.
1437f(c)(2)(A)), as periodically adjusted, for a unit of the
applicable size located in the area in which the residence
is located. Compliance with this subsection shall be mon-
itored and enforced by the covered jurisdiction providing
the amounts for the downpayment loan under this section
for the purchase of such residence.
(f) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) COVERED JURISDICTION.—The term ‘‘cov-
ered jurisdiction’’ means, with respect to a fiscal
year—
(A) a metropolitan city or urban county
that receives a grant for such fiscal year pursu-
ant to section 106(b) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C.
5306(b)); or
110
(B) a jurisdiction that is a participating
jurisdiction for such fiscal year for purposes of
the HOME Investment Partnerships Act (42
U.S.C. 12721 et seq.).
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
TITLE VI—LOCAL
HOMEOWNERSHIP INITIATIVES
SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REIN-
VESTMENT CORPORATION.
Section 608(a)(1) of the Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8107(a)(1)) is amended by
striking the first sentence and inserting the following:
‘‘There is authorized to be appropriated to the corporation
to carry out this title $95,000,000 for fiscal year 2001
and such sums as may be necessary for each of fiscal years
2002 through 2005. Of the amounts appropriated to the
corporation for fiscal year 2001, $5,000,000 shall be avail-
able only for the corporation to provide assistance under
duplex homeownership programs established before the
date of the enactment of the American Homeownership
and Economic Opportunity Act of 2000 through
Neighborworks Homeownership Center pilot projects es-
tablished before such date of the enactment.’’.
111
SEC. 602. HOMEOWNERSHIP ZONES.
Section 186 of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 12898a) is amended to read
as follows:
‘‘SEC. 186. HOMEOWNERSHIP ZONE GRANTS.
‘‘(a) AUTHORITY.—The Secretary of Housing and
Urban Development may make grants to units of general
local government to assist homeownership zones. Home-
ownership zones are contiguous, geographically defined
areas, primarily residential in nature, in which large-scale
development projects are designed to reclaim distressed
neighborhoods by creating homeownership opportunities
for low- and moderate-income families. Projects in home-
ownership zones are intended to serve as a catalyst for
private investment, business creation, and neighborhood
revitalization.
‘‘(b) ELIGIBLE ACTIVITIES.—Amounts made avail-
able under this section may be used for projects that in-
clude any of the following activities in the homeownership
zone:
‘‘(1) Acquisition, construction, and rehabilita-
tion of housing.
‘‘(2) Site acquisition and preparation, including
demolition, construction, reconstruction, or installa-
tion of public and other site improvements and utili-
ties directly related to the homeownership zone.
112
‘‘(3) Direct financial assistance to homebuyers.
‘‘(4) Homeownership counseling.
‘‘(5) Relocation assistance.
‘‘(6) Marketing costs, including affirmative
marketing activities.
‘‘(7) Other project-related costs.
‘‘(8) Reasonable administrative costs (up to 5
percent of the grant amount).
‘‘(9) Other housing-related activities proposed
by the applicant as essential to the success of the
homeownership zone and approved by the Secretary.
‘‘(c) APPLICATION.—To be eligible for a grant under
this section, a unit of general local government shall sub-
mit an application for a homeownership zone grant in such
form and in accordance with such procedures as the Sec-
retary shall establish.
‘‘(d) SELECTION CRITERIA.—The Secretary shall se-
lect applications for funding under this section through
a national competition, using selection criteria established
by the Secretary, which shall include—
‘‘(1) the degree to which the proposed activities
will result in the improvement of the economic, so-
cial, and physical aspects of the neighborhood and
the lives of its residents through the creation of new
homeownership opportunities;
113
‘‘(2) the levels of distress in the homeownership
zone as a whole, and in the immediate neighborhood
of the project for which assistance is requested;
‘‘(3) the financial soundness of the plan for fi-
nancing homeownership zone activities;
‘‘(4) the leveraging of other resources; and
‘‘(5) the capacity to successfully carry out the
plan.
The Secretary may not treat any application for a grant
under this section adversely in any manner solely on the
basis that the homeownership zone is located, in whole or
in part, within unincorporated areas.
‘‘(e) GRANT APPROVAL AMOUNTS.—The Secretary
may establish a maximum amount for any grant for any
funding round under this section. A grant may not be
made in an amount that exceeds the amount that the Sec-
retary determines is necessary to fund the project for
which the application is made.
‘‘(f) PROGRAM REQUIREMENTS.—A homeownership
zone proposal shall—
‘‘(1) provide for a significant number of new
homeownership opportunities that will make a visible
improvement in an immediate neighborhood;
114
‘‘(2) not be inconsistent with such planning and
design principles as may be prescribed by the Sec-
retary;
‘‘(3) be designed to stimulate additional invest-
ment in that area;
‘‘(4) provide for partnerships with persons or
entities in the private and nonprofit sectors;
‘‘(5) incorporate a comprehensive approach to
revitalization of the neighborhood;
‘‘(6) establish a detailed time-line for com-
mencement and completion of construction activities;
and
‘‘(7) provide for affirmatively furthering fair
housing.
‘‘(g) INCOME TARGETING.—At least 51 percent of
the homebuyers assisted with funds under this section
shall have household incomes at or below 80 percent of
median income for the area, as determined by the Sec-
retary.
‘‘(h) ENVIRONMENTAL REVIEW.—For purposes of
environmental review, decisionmaking, and action pursu-
ant to the National Environmental Policy Act of 1969 and
other provisions of law that further the purposes of such
Act, a grant under this section shall be treated as assist-
ance under the HOME Investment Partnerships Act and
115
shall be subject to the regulations issued by the Secretary
to implement section 288 of such Act.
‘‘(i) REVIEW, AUDIT, AND REPORTING.—The Sec-
retary shall make such reviews and audits and establish
such reporting requirements as may be necessary or ap-
propriate to determine whether the grantee has carried out
its activities in a timely manner and in accordance with
the requirements of this section. The Secretary may ad-
just, reduce, or withdraw amounts made available, or take
other action as appropriate, in accordance with the Sec-
retary’s performance reviews and audits under this sec-
tion.
‘‘(j) AUTHORIZATION.—There is authorized to be ap-
propriated to carry out this section $25,000,000 for fiscal
year 2001 and such sums as may be necessary for fiscal
year 2002, to remain available until expended.’’.
SEC. 603. LEASE-TO-OWN.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that residential tenancies under lease-to-own
provisions can facilitate homeownership by low- and mod-
erate-income families and provide opportunities for home-
ownership for such families who might not otherwise be
able to afford homeownership.
(b) REPORT.—Not later than the expiration of the
3-month period beginning on the date of the enactment
116
of this Act, the Secretary of Housing and Urban Develop-
ment shall submit a report to the Congress—
(1) analyzing whether lease-to-own provisions
can be effectively incorporated within the HOME in-
vestment partnerships program, the public housing
program, the tenant-based rental assistance program
under section 8 of the United States Housing Act of
1937, or any other programs of the Department to
facilitate homeownership by low- or moderate-income
families; and
(2) any legislative or administrative changes
necessary to alter or amend such programs to allow
the use of lease-to-own options to provide home-
ownership opportunities.
SEC. 604. LOCAL CAPACITY BUILDING.
Section 4 of the HUD Demonstration Act of 1993
(42 U.S.C. 9816 note) is amended—
(1) in subsection (a), by inserting ‘‘National
Association of Housing Partnerships,’’ after ‘‘Hu-
manity,’’; and
(2) in subsection (e), by striking ‘‘$25,000,000’’
and all that follows and inserting ‘‘, for each fiscal
year, such sums as may be necessary to carry out
this section.’’.
117
SEC. 605. CONSOLIDATED APPLICATION AND PLANNING
REQUIREMENT AND SUPER-NOFA.
(a) CONSOLIDATED APPLICATION.—Section 106 of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12706) is amended to read as follows:
‘‘SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY
PLANNING AND DEVELOPMENT PROGRAMS.
‘‘(a) REQUIREMENT.—The Secretary shall, by regula-
tion, provide for jurisdictions to comply with the planning
and application requirements under the covered programs
under subsection (b) by submitting to the Secretary, for
a program year, a single consolidated submission under
this section that complies with the requirements for plan-
ning and application submissions under the laws relating
to the covered programs and shall serve, for the jurisdic-
tion, as the planning document and an application for
funding under the covered programs.
‘‘(b) COVERED PROGRAMS.—The covered programs
under this subsection are the following programs:
‘‘(1) The HOME investment partnerships pro-
gram under title II of this Act (42 U.S.C. 12721 et
seq.).
‘‘(2) The community development block grant
program under title I of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5301 et
seq.).
118
‘‘(3) The economic development initiative pro-
gram under section 108(q) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C.
5308(q)).
‘‘(4) The emergency shelter grants program
under subtitle B of title IV of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C.
11371 et seq.).
‘‘(5) The housing opportunities for persons with
AIDS program under subtitle D of title VIII of the
Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12901 et seq.).
‘‘(c) PROGRAM YEAR.—In establishing requirements
for a consolidated submission under this section, the Sec-
retary shall provide for a consolidated program year,
which shall comply with the various application and review
deadlines under the covered programs.
‘‘(d) ADEQUACY OF EXISTING REGULATIONS.—The
regulations of the Secretary relating to consolidated sub-
missions for community planning and development pro-
grams, part 91 of title 24, Code of Federal Regulations,
as in effect on March 1, 1999, shall be considered to be
sufficient to comply with this section, except to the extent
that the program referred to in paragraph (3) of sub-
section (b) is not covered by such regulations.
119
‘‘(e) CONSISTENCY.—The Secretary shall, by regula-
tion or otherwise, as deemed by the Secretary to be appro-
priate, require any application for housing assistance
under title II of this Act, assistance under the Housing
and Community Development Act of 1974, or assistance
under the Stewart B. McKinney Homeless Assistance Act,
to contain or be accompanied by a certification by an ap-
propriate State or local public official that the proposed
housing activities are consistent with the housing strategy
of the jurisdiction to be served.’’.
(b) SUPER-NOFA.—The Department of Housing
and Urban Development Act is amended by inserting after
section 12 (42 U.S.C. 3537a) the following new section:
‘‘SEC. 13. NOTICE OF FUNDING AVAILABILITY.
‘‘(a) REQUIREMENT.—In making amounts for a fiscal
year under the covered programs under subsection (b)
available to applicants, the Secretary shall issue a consoli-
dated notice of funding availability that—
‘‘(1) applies to as many of the covered pro-
grams as the Secretary determines is practicable;
‘‘(2) simplifies the application process for fund-
ing under such programs by providing for applica-
tion under various covered programs through a sin-
gle, unified application;
120
‘‘(3) promotes comprehensive approaches to
housing and community development by providing
for applicants to identify coordination of efforts
under various covered programs; and
‘‘(4) clearly informs prospective applicants of
the general and specific requirements under law for
applying for funding under such programs.
‘‘(b) COVERED PROGRAMS.—The covered programs
under this subsection are the programs that are adminis-
tered by the Secretary and identified by the Secretary for
purposes of this section, in the following areas:
‘‘(1) Housing and community development pro-
grams.
‘‘(2) Economic development and empowerment
programs.
‘‘(3) Targeted housing assistance and homeless
assistance programs.’’.
SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PRO-
VIDERS.
(a) REAUTHORIZATION.—Subsection (p) of section
11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended to read as
follows:
‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
121
$25,000,000 for fiscal year 2001 and such sums as may
be necessary for each of fiscal years 2002 and 2003.’’.
(b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of
the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting before
the period at the end the following: ‘‘, which may include
reimbursing an organization, consortium, or affiliate, upon
approval of any required environmental review, for
nongrant amounts of the organization, consortium, or af-
filiate advanced before such review to acquire land’’.
(c) DEADLINE FOR RECAPTURE OF FUNDS.—Section
11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended—
(1) in subsection (i)(5)—
(A) by striking ‘‘if the organization or con-
sortia has not used any grant amounts’’ and in-
serting ‘‘the Secretary shall recapture any grant
amounts provided to the organization or con-
sortia that are not used’’;
(B) by striking ‘‘(or,’’ and inserting ‘‘, ex-
cept that such period shall be 36 months’’; and
(C) by striking ‘‘within 36 months), the
Secretary 
shall 
recapture 
such 
unused
amounts’’ and inserting ‘‘and in the case of a
grant amounts provided to a local affiliate of
122
the organization or consortia that is developing
five or more dwellings in connection with such
grant amounts’’; and
(2) in subsection (j), by inserting after ‘‘carry
out this section’’ the following: ‘‘and grant amounts
provided to a local affiliate of the organization or
consortia that is developing five or more dwellings in
connection with such grant amounts’’.
(d) TECHNICAL CORRECTIONS.—Section 11 of the
Housing Opportunity Program Extension Act of 1996 (42
U.S.C. 12805 note) is amended—
(1) in subsection (b)(4), by striking ‘‘Habitat
for Humanity International, its affiliates, and
other’’; and
(2) in subsection (e)(2), by striking ‘‘consoria’’
and inserting ‘‘consortia’’.
SEC. 607. HOUSING COUNSELING ORGANIZATIONS.
(a) EXTENSION OF PROGRAMS.—
(1) 
EMERGENCY
HOMEOWNERSHIP
COUN-
SELING.—Section 106(c)(9) of the Housing and
Urban Development Act of 1968 (12 U.S.C.
1701x(c)(9)) is amended by striking ‘‘September 30,
2000’’ and inserting ‘‘September 30, 2005’’.
(2) PREPURCHASE AND FORECLOSURE PREVEN-
TION
COUNSELING
DEMONSTRATION.—Section
123
106(d)(12) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended
by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal
year 2005’’.
(b) COOPERATIVE OWNERSHIP HOUSING CORPORA-
TIONS.—Section 106 of the Housing and Urban Develop-
ment Act of 1968 (12 U.S.C. 1701x) is amended—
(1) in subsection (a)(1)(ii), by inserting ‘‘and
cooperative housing’’ before the semicolon at the
end; and
(2) in subsection (c)—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘and’’ at the end;
(ii) in subparagraph (B), by striking
the period at the end and inserting a semi-
colon; and
(iii) by adding at the end the fol-
lowing new subparagraph:
‘‘(C) to the National Cooperative Bank De-
velopment Corporation—
‘‘(i) to provide homeownership coun-
seling to eligible homeowners that is spe-
cifically designed to relate to ownership
124
under cooperative housing arrangements;
and
‘‘(ii) to assist in the establishment
and operation of well-managed and viable
cooperative housing boards.’’;
(B) in paragraph (4)(A), by inserting be-
fore the semicolon at the end the following: ‘‘or,
in the case of a home loan made to finance the
purchase of stock or membership in a coopera-
tive ownership housing corporation, by the stock
or membership interest’’; and
(C) in paragraph (6)(C), by adding before
the period at the end the following: ‘‘and in-
cludes a loan that is secured by a first lien
given in accordance with the laws of the State
where the property is located and that is made
to finance the purchase of stock or membership
in a cooperative ownership housing corporation
the permanent occupancy of dwelling units of
which is restricted to members of such corpora-
tion, where the purchase of such stock or mem-
bership will entitle the purchaser to the perma-
nent occupancy of one of such units’’.
125
SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND
LEAD-SAFE HOUSING.
Section 1011(e) of the Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42 U.S.C. 4852(e)) is
amended—
(1) in paragraph (7), by inserting ‘‘, which may
include leasing of lead-safe temporary housing’’ be-
fore the semicolon at the end;
(2) in paragraph (9), by striking ‘‘and’’ at the
end;
(3) by redesignating paragraph (10) as para-
graph (11); and
(4) by inserting after paragraph (9) the fol-
lowing new paragraph:
‘‘(10) provide accessible information through
centralized locations that provide a variety of resi-
dential lead-based paint poisoning prevention serv-
ices to the community that such services are in-
tended to benefit; and’’.
SEC. 609. GRANT ELIGIBILITY OF COMMUNITY ORGANIZA-
TIONS.
(a) ELIGIBILITY.—For any program administered by
the Secretary of Housing and Urban Development under
which financial assistance is provided by the Secretary to
nongovernmental organizations or to a State or local gov-
ernment for provision to nongovernmental organizations,
126
religious organizations shall be eligible, on the same basis
as other nongovernmental organizations, to receive the fi-
nancial assistance under the program from the Secretary
or such State and local governments, as the case may be,
as long as the program is implemented in a manner con-
sistent with the Establishment Clause of the Free Exercise
Clause of the first amendment to the Constitution. Neither
the Secretary nor a State or local government to which
such financial assistance is provided shall discriminate
against an organization that receives financial assistance,
or applies to receive assistance, under a program adminis-
tered by the Secretary, on the basis that the organization
has a religious character.
(b) RELIGIOUS CHARACTER AND INDEPENDENCE.—
(1) IN GENERAL.—A religious organization that
receives assistance under a program described in
subsection (a) shall retain its religious character and
control over the definition, development, practice,
and expression of its religious beliefs.
(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State or local government
shall require a religious organization—
(A) to alter its form of internal govern-
ance; or
127
(B) to remove religious art, icons, scrip-
ture, or other symbols,
in order to be eligible to provide assistance under a
program described in subsection (a).
(3) EMPLOYMENT PRACTICES.—A religious or-
ganization’s exemption provided under section 702
of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
1) regarding employment practices shall not be af-
fected by its participation in, or receipt of funds
from, programs described in subsection (a).
(c) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No funds provided directly to a religious or-
ganization to provide assistance under any program de-
scribed in subsection (a) shall be expended for sectarian
worship, instruction, or proselytization.
(d) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization providing as-
sistance under any program described in subsection
(a) shall be subject to the same regulations as other
nongovernmental organizations to account in accord
with generally accepted accounting principles for the
use of such funds provided under such program.
(2) LIMITED AUDIT.—Such organization shall
segregate government funds provided under such
128
program into a separate account. Only the govern-
ment funds shall be subject to audit by the govern-
ment.
(e) TREATMENT OF ELIGIBLE ENTITIES AND OTHER
INTERMEDIATE ORGANIZATIONS.—If an eligible entity or
other organization (referred to in this subsection as an
‘‘intermediate organization’’), acting under a contract, or
grant or other agreement, with the Federal Government
or a State or local government, is given the authority
under the contract or agreement to select nongovern-
mental organizations to provide assistance under the pro-
grams described in subsection (a), the intermediate orga-
nization shall have the same duties under this section as
the government.
(f) DEFINITIONS.—For purposes of this section:
(1) FINANCIAL ASSISTANCE.—The term ‘‘finan-
cial assistance’’ means any grant, loan, subsidy,
guarantee, or other financial assistance, except that
such term does not include any mortgage insurance
provided under a program administered by the Sec-
retary.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
129
TITLE VII—NATIVE AMERICAN
HOMEOWNERSHIP
Subtitle A—Native American
Housing
SEC. 701. LANDS TITLE REPORT COMMISSION.
(a) ESTABLISHMENT.—Subject to sums being pro-
vided in advance in appropriations Acts, there is estab-
lished a Commission to be known as the Lands Title Re-
port Commission (hereafter in this section referred to as
the ‘‘Commission’’) to facilitate home loan mortgages on
Indian trust lands. The Commission will be subject to
oversight by the Committee on Banking and Financial
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the
Senate.
(b) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be
composed of 12 members, appointed not later than
90 days after the date of the enactment of this Act
as follows:
(A) Four members shall be appointed by
the President.
(B) Four members shall be appointed by
the Chairperson of the Committee on Banking
130
and Financial Services of the House of Rep-
resentatives.
(C) Four members shall be appointed by
the Chairperson of the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(2) QUALIFICATIONS.—
(A) MEMBERS OF TRIBES.—At all times,
not less than eight of the members of the Com-
mission shall be members of federally recog-
nized Indian tribes.
(B) EXPERIENCE
IN
LAND
TITLE
MAT-
TERS.—All members of the Commission shall
have experience in and knowledge of land title
matters relating to Indian trust lands.
(3) CHAIRPERSON.—The Chairperson of the
Commission shall be one of the members of the
Commission appointed under paragraph (1)(C), as
elected by the members of the Commission.
(4) VACANCIES.—Any vacancy on the Commis-
sion shall not affect its powers, but shall be filled in
the manner in which the original appointment was
made.
(5) TRAVEL EXPENSES.—Members of the Com-
mission shall serve without pay, but each member
shall receive travel expenses, including per diem in
131
lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
(c) INITIAL MEETING.—The Chairperson of the Com-
mission shall call the initial meeting of the Commission.
Such meeting shall be held within 30 days after the Chair-
person of the Commission determines that sums sufficient
for the Commission to carry out its duties under this Act
have been appropriated for such purpose.
(d) DUTIES.—The Commission shall analyze the sys-
tem of the Bureau of Indian Affairs of the Department
of the Interior for maintaining land ownership records and
title documents and issuing certified title status reports
relating to Indian trust lands and, pursuant to such anal-
ysis, determine how best to improve or replace the
system—
(1) to ensure prompt and accurate responses to
requests for title status reports;
(2) to eliminate any backlog of requests for title
status reports; and
(3) to ensure that the administration of the sys-
tem will not in any way impair or restrict the ability
of Native Americans to obtain conventional loans for
purchase of residences located on Indian trust lands,
including any actions necessary to ensure that the
system will promptly be able to meet future demands
132
for certified title status reports, taking into account
the anticipated complexity and volume of such re-
quests.
(e) REPORT.—Not later than the date of the termi-
nation of the Commission under subsection (h), the Com-
mission shall submit a report to the Committee on Bank-
ing and Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban
Affairs of the Senate describing the analysis and deter-
minations made pursuant to subsection (d).
(f) POWERS.—
(1) HEARINGS AND SESSIONS.—The Commis-
sion may, for the purpose of carrying out this sec-
tion, hold hearings, sit and act at times and places,
take testimony, and receive evidence as the Commis-
sion considers appropriate.
(2) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Commission, the head of any Federal
department or agency may detail, on a reimbursable
basis, any of the personnel of that department or
agency to the Commission to assist it in carrying out
its duties under this section.
(3) OBTAINING OFFICIAL DATA.—The Commis-
sion may secure directly from any department or
agency of the United States information necessary
133
to enable it to carry out this section. Upon request
of the Chairperson of the Commission, the head of
that department or agency shall furnish that infor-
mation to the Commission.
(4) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other departments and agen-
cies of the United States.
(5) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Commission, the Adminis-
trator of General Services shall provide to the Com-
mission, on a reimbursable basis, the administrative
support services necessary for the Commission to
carry out its duties under this section.
(6) STAFF.—The Commission may appoint per-
sonnel as it considers appropriate, subject to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and shall
pay such personnel in accordance with the provisions
of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General
Schedule pay rates.
(g) AUTHORIZATION OF APPROPRIATIONS.—To carry
out this section, there is authorized to be appropriated
134
$500,000. Such sums shall remain available until ex-
pended.
(h) TERMINATION.—The Commission shall terminate
1 year after the date of the initial meeting of the Commis-
sion.
SEC. 702. LOAN GUARANTEES.
Section 184(i) of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is
amended—
(1) in paragraph (5), by striking subparagraph
(C) and inserting the following new subparagraph:
‘‘(C) LIMITATION
ON
OUTSTANDING
AG-
GREGATE PRINCIPAL AMOUNT.—Subject to the
limitations in subparagraphs (A) and (B), the
Secretary may enter into commitments to guar-
antee loans under this section in each fiscal
year with an aggregate outstanding principal
amount not exceeding such amount as may be
provided in appropriation Acts for such fiscal
year.’’; and
(2) in paragraph (7), by striking ‘‘each of fiscal
years 1997, 1998, 1999, 2000, and 2001’’ and in-
serting ‘‘each fiscal year’’.
SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) RESTRICTION ON WAIVER AUTHORITY.—
135
(1) IN GENERAL.—Section 101(b)(2) of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4111(b)(2)) is
amended by striking ‘‘if the Secretary’’ and all that
follows through the period at the end and inserting
the following: ‘‘for a period of not more than 90
days, if the Secretary determines that an Indian
tribe has not complied with, or is unable to comply
with, those requirements due to exigent cir-
cumstances beyond the control of the Indian tribe.’’.
(2) LOCAL
COOPERATION
AGREEMENT.—Sec-
tion 101(c) of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4111(c)) is amended by adding at the end the fol-
lowing: ‘‘The Secretary may waive the requirements
of this subsection and subsection (d) if the recipient
has made a good faith effort to fulfill the require-
ments of this subsection and subsection (d) and
agrees to make payments in lieu of taxes to the ap-
propriate taxing authority in an amount consistent
with the requirements of subsection (d)(2) until such
time as the matter of making such payments has
been resolved in accordance with subsection (d).’’.
(b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW-
INCOME.—Section 102(c) of the Native American Housing
136
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4112(c)) is amended by adding at the end the following:
‘‘(6) CERTAIN FAMILIES.—With respect to as-
sistance provided under section 201(b)(2) by a re-
cipient to Indian families that are not low-income
families, evidence that there is a need for housing
for each such family during that period that cannot
reasonably be met without such assistance.’’.
(c) ELIMINATION
OF
WAIVER
AUTHORITY
FOR
SMALL TRIBES.—Section 102 of the Native American
Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4112) is amended—
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as sub-
section (f).
(d) ENVIRONMENTAL COMPLIANCE.—Section 105 of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4115) is amended by
adding at the end the following:
‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary
may waive the requirements under this section if the Sec-
retary determines that a failure on the part of a recipient
to comply with provisions of this section—
‘‘(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331
137
et seq.) or any other provision of law that furthers
the goals of that Act;
‘‘(2) does not threaten the health or safety of
the community involved by posing an immediate or
long-term hazard to residents of that community;
‘‘(3) is a result of inadvertent error, including
an incorrect or incomplete certification provided
under subsection (c)(1); and
‘‘(4) may be corrected through the sole action
of the recipient.’’.
(e) ELIGIBILITY OF LAW ENFORCEMENT OFFICERS
FOR HOUSING ASSISTANCE.—Section 201(b) of the Na-
tive American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4131(b)) is amended—
(1) in paragraph (1), by striking ‘‘paragraph
(2)’’ and inserting ‘‘paragraphs (2) and (4)’’;
(2) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(3) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) LAW ENFORCEMENT OFFICERS.—A recipi-
ent may provide housing or housing assistance pro-
vided through affordable housing activities assisted
with grant amounts under this Act for a law en-
138
forcement officer on an Indian reservation or other
Indian area, if—
‘‘(A) the officer—
‘‘(i) is employed on a full-time basis
by the Federal Government or a State,
county, or tribal government; and
‘‘(ii) in implementing such full-time
employment, is sworn to uphold, and make
arrests for, violations of Federal, State,
county, or tribal law; and
‘‘(B) the recipient determines that the
presence of the law enforcement officer on the
Indian reservation or other Indian area may
deter crime.’’.
(f) OVERSIGHT.—
(1) REPAYMENT.—Section 209 of the Native
American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4139) is amended to
read as follows:
‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING
REQUIREMENT.
‘‘If a recipient uses grant amounts to provide afford-
able housing under this title, and at any time during the
useful life of the housing the recipient does not comply
with the requirement under section 205(a)(2), the Sec-
139
retary shall take appropriate action under section
401(a).’’.
(2) AUDITS AND REVIEWS.—Section 405 of the
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4165) is amend-
ed to read as follows:
‘‘SEC. 405. REVIEW AND AUDIT BY SECRETARY.
‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE
31, UNITED STATES CODE.—An entity designated by an
Indian tribe as a housing entity shall be treated, for pur-
poses of chapter 75 of title 31, United States Code, as
a non-Federal entity that is subject to the audit require-
ments that apply to non-Federal entities under that chap-
ter.
‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—
‘‘(1) IN GENERAL.—In addition to any audit or
review under subsection (a), to the extent the Sec-
retary determines such action to be appropriate, the
Secretary may conduct an audit or review of a re-
cipient in order to—
‘‘(A) determine whether the recipient—
‘‘(i) has carried out—
‘‘(I) eligible activities in a timely
manner; and
140
‘‘(II) eligible activities and cer-
tification in accordance with this Act
and other applicable law;
‘‘(ii) has a continuing capacity to
carry out eligible activities in a timely
manner; and
‘‘(iii) is in compliance with the Indian
housing plan of the recipient; and
‘‘(B) verify the accuracy of information
contained in any performance report submitted
by the recipient under section 404.
‘‘(2) ON-SITE
VISITS.—To the extent prac-
ticable, the reviews and audits conducted under this
subsection shall include on-site visits by the appro-
priate official of the Department of Housing and
Urban Development.
‘‘(c) REVIEW OF REPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall provide
each recipient that is the subject of a report made
by the Secretary under this section notice that the
recipient may review and comment on the report
during a period of not less than 30 days after the
date on which notice is issued under this paragraph.
141
‘‘(2) PUBLIC AVAILABILITY.—After taking into
consideration any comments of the recipient under
paragraph (1), the Secretary—
‘‘(A) may revise the report; and
‘‘(B) not later than 30 days after the date
on which those comments are received, shall
make the comments and the report (with any
revisions made under subparagraph (A)) readily
available to the public.
‘‘(d) EFFECT
OF
REVIEWS.—Subject to section
401(a), after reviewing the reports and audits relating to
a recipient that are submitted to the Secretary under this
section, the Secretary may adjust the amount of a grant
made to a recipient under this Act in accordance with the
findings of the Secretary with respect to those reports and
audits.’’.
(g) ALLOCATION FORMULA.—Section 302(d)(1) of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4152(d)(1)) is
amended—
(1) by striking ‘‘The formula,’’ and inserting
the following:
‘‘(A) IN GENERAL.—Except with respect to
an Indian tribe described in subparagraph (B),
the formula’’; and
142
(2) by adding at the end the following:
‘‘(B) CERTAIN INDIAN TRIBES.—With re-
spect to fiscal year 2001 and each fiscal year
thereafter, for any Indian tribe with an Indian
housing authority that owns or operates fewer
than 250 public housing units, the formula
shall provide that if the amount provided for a
fiscal year in which the total amount made
available for assistance under this Act is equal
to or greater than the amount made available
for fiscal year 1996 for assistance for the oper-
ation and modernization of the public housing
referred to in subparagraph (A), then the
amount provided to that Indian tribe as mod-
ernization assistance shall be equal to the aver-
age annual amount of funds provided to the In-
dian tribe (other than funds provided as emer-
gency assistance) under the assistance program
under section 14 of the United States Housing
Act of 1937 (42 U.S.C. 1437l) for the period
beginning with fiscal year 1992 and ending
with fiscal year 1997.’’.
(h) HEARING REQUIREMENT.—Section 401(a) of the
Native American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4161(a)) is amended—
143
(1) by redesignating paragraphs (1) through
(4) as subparagraphs (A) through (D), respectively,
and realigning such subparagraphs (as so redesig-
nated) so as to be indented 4 ems from the left mar-
gin;
(2) by striking ‘‘Except as provided’’ and in-
serting the following:
‘‘(1) IN GENERAL.—Except as provided’’;
(3) by striking ‘‘If the Secretary takes an ac-
tion under paragraph (1), (2), or (3)’’ and inserting
the following:
‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec-
retary takes an action under subparagraph (A), (B),
or (C) of paragraph (1)’’; and
(4) by adding at the end the following:
‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this subsection, if the Sec-
retary makes a determination that the failure of
a recipient of assistance under this Act to com-
ply substantially with any material provision (as
that term is defined by the Secretary) of this
Act is resulting, and would continue to result,
in a continuing expenditure of Federal funds in
a manner that is not authorized by law, the
144
Secretary may take an action described in para-
graph (1)(C) before conducting a hearing.
‘‘(B) PROCEDURAL REQUIREMENT.—If the
Secretary takes an action described in subpara-
graph (A), the Secretary shall—
‘‘(i) provide notice to the recipient at
the time that the Secretary takes that ac-
tion; and
‘‘(ii) conduct a hearing not later than
60 days after the date on which the Sec-
retary provides notice under clause (i).
‘‘(C) DETERMINATION.—Upon completion
of a hearing under this paragraph, the Sec-
retary shall make a determination regarding
whether to continue taking the action that is
the subject of the hearing, or take another ac-
tion under this subsection.’’.
(i) PERFORMANCE AGREEMENT TIME LIMIT.—Sec-
tion 401(b) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4161(b))
is amended—
(1) by striking ‘‘If the Secretary’’ and inserting
the following:
‘‘(1) IN GENERAL.—If the Secretary’’;
145
(2) by striking ‘‘(1) is not’’ and inserting the
following:
‘‘(A) is not’’;
(3) by striking ‘‘(2) is a result’’ and inserting
the following:
‘‘(B) is a result’’;
(4) in the flush material following paragraph
(1)(B), as redesignated by paragraph (3) of this
subsection—
(A) by realigning such material so as to be
indented 2 ems from the left margin; and
(B) by inserting before the period at the
end the following: ‘‘, if the recipient enters into
a performance agreement with the Secretary
that specifies the compliance objectives that the
recipient will be required to achieve by the ter-
mination date of the performance agreement’’;
and
(5) by adding at the end the following:
‘‘(2) PERFORMANCE AGREEMENT.—The period
of a performance agreement described in paragraph
(1) shall be for 1 year.
‘‘(3) REVIEW.—Upon the termination of a per-
formance agreement entered into under paragraph
146
(1), the Secretary shall review the performance of
the recipient that is a party to the agreement.
‘‘(4) EFFECT OF REVIEW.—If, on the basis of
a review under paragraph (3), the Secretary deter-
mines that the recipient—
‘‘(A) has made a good faith effort to meet
the compliance objectives specified in the agree-
ment, the Secretary may enter into an addi-
tional performance agreement for the period
specified in paragraph (2); and
‘‘(B) has failed to make a good faith effort
to meet applicable compliance objectives, the
Secretary shall determine the recipient to have
failed to comply substantially with this Act, and
the recipient shall be subject to an action under
subsection (a).’’.
(j) LABOR STANDARDS.—Section 104(b) of the Na-
tive American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4114(b) is amended—
(1) in paragraph (1), by striking ‘‘Davis-Bacon
Act (40 U.S.C. 276a–276a–5)’’ and inserting ‘‘Act
of March 3, 1931 (commonly known as the Davis-
Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C
276a et seq.)’’; and
147
(2) by adding at the end the following new
paragraph:
‘‘(3) APPLICATION
OF
TRIBAL
LAWS.—Para-
graph (1) shall not apply to any contract or agree-
ment for assistance, sale, or lease pursuant to this
Act, if such contract or agreement is otherwise cov-
ered by one or more laws or regulations adopted by
an Indian tribe that requires the payment of not less
than prevailing wages, as determined by the Indian
tribe.’’.
(k) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TABLE OF CONTENTS.—Section 1(b) of the
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4101 note) is
amended in the table of contents—
(A) by striking the item relating to section
206; and
(B) by striking the item relating to section
209 and inserting the following:
‘‘209. Noncompliance with affordable housing requirement.’’.
(2) CERTIFICATION OF COMPLIANCE WITH SUB-
SIDY
LAYERING
REQUIREMENTS.—Section 206 of
the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4136) is re-
pealed.
148
(3) TERMINATIONS.—Section 502(a) of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4181(a)) is amend-
ed by adding at the end the following: ‘‘Any housing
that is the subject of a contract for tenant-based as-
sistance between the Secretary and an Indian hous-
ing authority that is terminated under this section
shall, for the following fiscal year and each fiscal
year thereafter, be considered to be a dwelling unit
under section 302(b)(1).’’.
Subtitle B—Native Hawaiian
Housing
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ‘‘Hawaiian Home-
lands Homeownership Act of 2000’’.
SEC. 722. FINDINGS.
The Congress finds that—
(1) the United States has undertaken a respon-
sibility to promote the general welfare of the United
States by—
(A) employing its resources to remedy the
unsafe and unsanitary housing conditions and
the acute shortage of decent, safe, and sanitary
dwellings for families of lower income; and
149
(B) developing effective partnerships with
governmental and private entities to accomplish
the objectives referred to in subparagraph (A);
(2) the United States has a special responsi-
bility for the welfare of the Native peoples of the
United States, including Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian
Homes Commission Act, 1920 (42 Stat. 108 et
seq.), the United States set aside 200,000 acres of
land in the Federal territory that later became the
State of Hawaii in order to establish a homeland for
the native people of Hawaii—Native Hawaiians;
(4) despite the intent of Congress in 1920 to
address the housing needs of Native Hawaiians
through the enactment of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), Native
Hawaiians eligible to reside on the Hawaiian home
lands have been foreclosed from participating in
Federal housing assistance programs available to all
other eligible families in the United States;
(5) although Federal housing assistance pro-
grams have been administered on a racially neutral
basis in the State of Hawaii, Native Hawaiians con-
tinue to have the greatest unmet need for housing