(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. 103. 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 103 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
FOR WORKING FAMILIES
SEC. 201. 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.’’.
(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 TO FUND LONG-TERM CARE INSURANCE.—
(1) IN GENERAL.—Section 255 of the National
Housing Act (12 U.S.C. 1715z–20) is amended by
inserting after subsection (k) (as added by sub-
section (a) of this section) the following new sub-
section:
‘‘(l) WAIVER OF UP-FRONT PREMIUMS FOR MORT-
GAGES TO FUND LONG-TERM CARE INSURANCE.—
‘‘(1) IN GENERAL.—In the case of any mort-
gage insured under this section under which the
total amount (except as provided in paragraph (2))
of all future payments described in subsection (b)(3)
will be used only for costs of a qualified long-term
care insurance contract that covers the mortgagor or
members of the household residing in the property
that is subject to the mortgage, notwithstanding sec-
tion 203(c)(2), the Secretary shall not charge or col-
lect the single premium payment otherwise required
under subparagraph (A) of such section to be paid
at the time of insurance.
‘‘(2) AUTHORITY
TO
REFINANCE
EXISTING
MORTGAGE
AND
FINANCE
CLOSING
COSTS.—A
mortgage described in paragraph (1) may provide fi-
nancing of amounts that are used to satisfy out-
standing mortgage obligations (in accordance with
such limitations as the Secretary shall prescribe)
and any amounts used for initial service charges, ap-
praisal, inspection, and other fees (as approved by
the Secretary) in connection with such mortgage,
and the amount of future payments described in
subsection (b)(3) under the mortgage shall be re-
duced accordingly.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘qualified long-term care insurance
contract’ has the meaning given such term in section
7702B of the Internal Revenue Code of 1986 (26
U.S.C. 7702B)), except that such contract shall also
meet the requirements of—
‘‘(A) sections 9 (relating to disclosure), 24
(relating to suitability), and 26 (relating to con-
tingent nonforfeiture) of the long-term care in-
surance model regulation promulgated by the
National Association of Insurance Commis-
sioners (as adopted as of September 2000); and
‘‘(B) section 8 (relating to contingent non-
forfeiture) of the long-term care insurance
model Act promulgated by the National Asso-
ciation of Insurance Commissioners (as adopted
as of September 2000).’’.
(2) APPLICABILITY.—The provisions of section
255(l) of the National Housing Act (as added by
paragraph (1) of this subsection) shall apply only to
mortgages closed on or after April 1, 2001.
(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. 202. 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
are authorized to be appropriated to carry out this section
such sums as may be necessary for fiscal year 2001.’’.
(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
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’’.
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 such sums as may be nec-
essary for fiscal year 2001 for assistance in connection
with the existing homeownership pilot programs carried
out under the demonstration program authorized under to
section 555(b) of the Quality Housing and Work Respon-
sibility 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—PRIVATE MORTGAGE
INSURANCE 
CANCELLATION
AND TERMINATION
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Private Mortgage In-
surance Technical Corrections and Clarification Act’’.
SEC. 402. CHANGES IN AMORTIZATION SCHEDULE.
(a) TREATMENT
OF ADJUSTABLE RATE MORT-
GAGES.—The Homeowners Protection Act of 1998 (12
U.S.C. 4901 et seq.) is amended—
(1) in section 2—
(A) in paragraph (2)(B)(i), by striking
‘‘amortization schedules’’ and inserting ‘‘the
amortization schedule then in effect’’;
(B) in paragraph (16)(B), by striking
‘‘amortization schedules’’ and inserting ‘‘the
amortization schedule then in effect’’;
(C) 
by 
redesignating 
paragraphs 
(6)
through (16) (as amended by the preceding pro-
visions of this paragraph) as paragraphs (8)
through (18), respectively; and
(D) by inserting after paragraph (5) the
following new paragraph:
‘‘(6) AMORTIZATION SCHEDULE THEN IN EF-
FECT.—The term ‘amortization schedule then in ef-
fect’ means, with respect to an adjustable rate mort-
gage, a schedule established at the time at which the
residential mortgage transaction is consummated or,
if such schedule has been changed or recalculated, is
the most recent schedule under the terms of the note
or mortgage, which shows—
‘‘(A) the amount of principal and interest
that is due at regular intervals to retire the
principal balance and accrued interest over the
remaining amortization period of the loan; and
‘‘(B) the unpaid balance of the loan after
each such scheduled payment is made.’’; and
(2) in section 3(f)(1)(B)(ii), by striking ‘‘amor-
tization schedules’’ and inserting ‘‘the amortization
schedule then in effect’’.
(b) TREATMENT OF BALLOON MORTGAGES.—Para-
graph (1) of section 2 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4901(1)) is amended by adding at the
end the following new sentence: ‘‘A residential mortgage
that (A) does not fully amortize over the term of the obli-
gation, and (B) contains a conditional right to refinance
or modify the unamortized principal at the maturity date
of the term, shall be considered to be an adjustable rate
mortgage for purposes of this Act.’’.
(c) TREATMENT OF LOAN MODIFICATIONS.—
(1) IN
GENERAL.—Section 3 of the Home-
owners Protection Act of 1998 (12 U.S.C. 4902) is
amended—
(A) 
by 
redesignating 
subsections 
(d)
through (f) as subsections (e) through (g), re-
spectively; and
(B) by inserting after subsection (c) the
following new subsection:
‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a
mortgagor and mortgagee (or holder of the mortgage)
agree to a modification of the terms or conditions of a
loan pursuant to a residential mortgage transaction, the
cancellation date, termination date, or final termination
shall be recalculated to reflect the modified terms and con-
ditions of such loan.’’.
(2) CONFORMING AMENDMENTS.—Section 4(a)
of the Homeowners Protection Act of 1998 (12
U.S.C. 4903(a)) is amended—
(A) in paragraph (1)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘section 3(f)(1)’’
and inserting ‘‘section 3(g)(1)’’;
(ii) in subparagraph (A)(ii)(IV), by
striking ‘‘section 3(f)’’ and inserting ‘‘sec-
tion 3(g)’’; and
(iii) in subparagraph (B)(iii), by strik-
ing ‘‘section 3(f)’’ and inserting ‘‘section
3(g)’’; and
(B) in paragraph (2), by striking ‘‘section
3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.
SEC. 403. DELETION OF AMBIGUOUS REFERENCES TO RESI-
DENTIAL MORTGAGES.
(a) TERMINATION OF PRIVATE MORTGAGE INSUR-
ANCE.—Section 3 of the Homeowners Protection Act of
1998 (12 U.S.C. 4902) is amended—
(1) in subsection (c), by inserting ‘‘on residen-
tial mortgage transactions’’ after ‘‘imposed’’; and
(2) in subsection (g) (as so redesignated by the
preceding provisions of this title)—
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘mort-
gage or’’;
(B) in paragraph (2), by striking ‘‘mort-
gage or’’; and
(C) in paragraph (3), by striking ‘‘mort-
gage or’’ and inserting ‘‘residential mortgage or
residential’’.
(b) DISCLOSURE REQUIREMENTS.—Section 4 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4903(a))
is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘mortgage or’’ the first
place it appears; and
(ii) by striking ‘‘mortgage or’’ the sec-
ond place it appears and inserting ‘‘resi-
dential’’; and
(B) in paragraph (2), by striking ‘‘mort-
gage or’’ and inserting ‘‘residential’’;
(2) in subsection (c), by striking ‘‘paragraphs
(1)(B) and (3) of subsection (a)’’ and inserting
‘‘subsection (a)(3)’’; and
(3) in subsection (d), by inserting before the pe-
riod at the end the following: ‘‘, which disclosures
shall relate to the mortgagor’s rights under this
Act’’.
(c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID
MORTGAGE INSURANCE.—Section 6 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4905) is amended—
(1) in subsection (c)—
(A) in the matter preceding paragraph (1),
by striking ‘‘a residential mortgage or’’; and
(B) in paragraph (2), by inserting ‘‘trans-
action’’ after ‘‘residential mortgage’’; and
(2) in subsection (d), by inserting ‘‘transaction’’
after ‘‘residential mortgage’’.
SEC. 404. CANCELLATION RIGHTS AFTER CANCELLATION
DATE.
Section 3 of the Homeowners Protection Act of 1998
(12 U.S.C. 4902) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by inserting after ‘‘cancellation date’’ the fol-
lowing: ‘‘or any later date that the mortgagor
fulfills all of the requirements under paragraphs
(1) through (4)’’;
(B) in paragraph (2), by striking ‘‘and’’ at
the end;
(C) by redesignating paragraph (3) as
paragraph (4); and
(D) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) is current on the payments required by the
terms of the residential mortgage transaction; and’’;
and
(2) in subsection (e)(1)(B) (as so redesignated
by the preceding provisions of this title), by striking
‘‘subsection 
(a)(3)’’ 
and 
inserting 
‘‘subsection
(a)(4)’’.
SEC. 405. CLARIFICATION OF CANCELLATION AND TERMI-
NATION ISSUES AND LENDER PAID MORT-
GAGE INSURANCE DISCLOSURE REQUIRE-
MENTS.
(a) GOOD PAYMENT HISTORY.—Section 2(4) of the
Homeowners Protection Act of 1998 (12 U.S.C. 4901(4))
is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘the later of (i)’’ before
‘‘the date’’; and
(B) by inserting ‘‘, or (ii) the date that the
mortgagor submits a request for cancellation
under section 3(a)(1)’’ before the semicolon;
and
(2) in subparagraph (B)—
(A) by inserting ‘‘the later of (i)’’ before
‘‘the date’’; and
(B) by inserting ‘‘, or (ii) the date that the
mortgagor submits a request for cancellation
under section 3(a)(1)’’ before the period at the
end.
(b) AUTOMATIC TERMINATION.—Paragraph (2) of
section 3(b) of the Homeowners Protection Act of 1998
(12 U.S.C. 4902(b)(2)) is amended to read as follows:
‘‘(2) if the mortgagor is not current on the ter-
mination date, on the first day of the first month be-
ginning after the date that the mortgagor becomes
current on the payments required by the terms of
the residential mortgage transaction.’’
(c) PREMIUM PAYMENTS.—Section 3 of the Home-
owners Protection Act of 1998 (12 U.S.C. 4902) is
amended by adding at the end the following new sub-
section:
‘‘(h) ACCRUED OBLIGATION
FOR PREMIUM PAY-
MENTS.—The cancellation or termination under this sec-
tion of the private mortgage insurance of a mortgagor
shall not affect the rights of any mortgagee, servicer, or
mortgage insurer to enforce any obligation of such mort-
gagor for premium payments accrued prior to the date on
which such cancellation or termination occurred.’’.
SEC. 406. DEFINITIONS.
(a) REFINANCED.—Section 6(c)(1)(B)(ii) of the
Homeowners Protection Act of 1998 (12 U.S.C.
4905(c)(1)(B)(ii)) is amended by inserting after ‘‘refi-
nanced’’ the following: ‘‘(under the meaning given such
term in the regulations issued by the Board of Governors
of the Federal Reserve System to carry out the Truth in
Lending Act (15 U.S.C. 1601 et seq.))’’.
(b) MIDPOINT OF THE AMORTIZATION PERIOD.—
Section 2 of the Homeowners Protection Act of 1998 (12
U.S.C. 4901) is amended by inserting after paragraph (6)
(as added by the preceding provisions of this title) the fol-
lowing new paragraph:
‘‘(7) MIDPOINT
OF
THE
AMORTIZATION
PE-
RIOD.—The term ‘midpoint of the amortization pe-
riod’ means, with respect to a residential mortgage
transaction, the point in time that is halfway
through the period that begins upon the first day of
the amortization period established at the time a
residential mortgage transaction is consummated
and ends upon the completion of the entire period
over which the mortgage is scheduled to be amor-
tized.’’.
(c) ORIGINAL VALUE.—Section 2(12) of the Home-
owners Protection Act of 1998 (12 U.S.C. 4901(10)) (as
so redesignated by the preceding provisions of this title)
is amended—
(1) by inserting ‘‘transaction’’ after ‘‘a residen-
tial mortgage’’; and
(2) by adding at the end the following new sen-
tence: ‘‘In the case of a residential mortgage trans-
action for refinancing the principal residence of the
mortgagor, such term means only the appraised
value relied upon by the mortgagee to approve the
refinance transaction.’’.
(d) PRINCIPAL RESIDENCE.—Section 2 of the Home-
owners Protection Act of 1998 (12 U.S.C. 4901) is
amended—
(1) in paragraph (14) (as so redesignated by
the preceding provisions of this title) by striking
‘‘primary’’ and inserting ‘‘principal’’; and
(2) in paragraph (15) (as so redesignated by
the preceding provisions of this title) by striking
‘‘primary’’ and inserting ‘‘principal’’.
TITLE V—NATIVE AMERICAN
HOMEOWNERSHIP
Subtitle A—Native American
Housing
SEC. 501. 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
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
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
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
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.—There is
authorized to be appropriated to carry out this section
such sums as may be necessary, and any amounts appro-
priated pursuant to this subsection shall remain available
until expended.
(h) TERMINATION.—The Commission shall terminate
1 year after the date of the initial meeting of the Commis-
sion.
SEC. 502. 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. 503. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) RESTRICTION ON WAIVER AUTHORITY.—
(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.’’.
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
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) 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-
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
‘‘(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.
‘‘(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.’’.
(f) 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
(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.’’.
(g) 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—
(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
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.’’.
(h) 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’’;
(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
(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).’’.
(i) 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
(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.’’.
(j) 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.
(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. 511. SHORT TITLE.
This subtitle may be cited as the ‘‘Hawaiian Home-
lands Homeownership Act of 2000’’.
SEC. 512. 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
(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
and the highest rates of overcrowding in the United
States;
(6) among the Native American population of
the United States, Native Hawaiians experience the
highest percentage of housing problems in the
United States, as the percentage—
(A) of housing problems in the Native Ha-
waiian population is 49 percent, as compared
to—
(i) 44 percent for American Indian
and Alaska Native households in Indian
country; and
(ii) 27 percent for all other house-
holds in the United States; and
(B) overcrowding in the Native Hawaiian
population is 36 percent as compared to 3 per-
cent for all other households in the United
States;
(7) among the Native Hawaiian population, the
needs of Native Hawaiians, as that term is defined
in section 801 of the Native American Housing As-
sistance and Self-Determination Act of 1996 (as
added by this subtitle), eligible to reside on the Ha-
waiian Home Lands are the most severe, as—
(A) the percentage of overcrowding in Na-
tive Hawaiian households on the Hawaiian
Home Lands is 36 percent; and
(B) approximately 13,000 Native Hawai-
ians, which constitute 95 percent of the Native
Hawaiians who are eligible to reside on the Ha-
waiian Home Lands, are in need of housing;
(8) applying the Department of Housing and
Urban Development guidelines—
(A) 70.8 percent of Native Hawaiians who
either reside or who are eligible to reside on the
Hawaiian Home Lands have incomes that fall
below the median family income; and
(B) 50 percent of Native Hawaiians who
either reside or who are eligible to reside on the
Hawaiian Home Lands have incomes below 30
percent of the median family income;
(9) 1⁄3 of those Native Hawaiians who are eligi-
ble to reside on the Hawaiian Home Lands pay
more than 30 percent of their income for shelter,
and 1⁄2 of those Native Hawaiians face overcrowding;
(10) the extraordinarily severe housing needs of
Native Hawaiians demonstrate that Native Hawai-
ians who either reside on, or are eligible to reside on,
Hawaiian Home Lands have been denied equal ac-
cess to Federal low-income housing assistance pro-
grams available to other qualified residents of the
United States, and that a more effective means of
addressing their housing needs must be authorized;
(11) consistent with the recommendations of
the National Commission on American Indian, Alas-
ka Native, and Native Hawaiian Housing, and in
order to address the continuing prevalence of ex-
traordinarily severe housing needs among Native
Hawaiians who either reside or are eligible to reside
on the Hawaiian Home Lands, Congress finds it
necessary to extend the Federal low-income housing
assistance available to American Indians and Alaska
Natives under the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4101 et seq.) to those Native Hawaiians;
(12) under the treatymaking power of the
United States, Congress had the constitutional au-
thority to confirm a treaty between the United
States and the government that represented the Ha-
waiian people, and from 1826 until 1893, the United
States recognized the independence of the Kingdom
of Hawaii, extended full diplomatic recognition to
the Hawaiian Government, and entered into treaties
and conventions with the Hawaiian monarchs to gov-
ern commerce and navigation in 1826, 1842, 1849,
1875, and 1887;
(13) the United States has recognized and re-
affirmed that—
(A) Native Hawaiians have a cultural, his-
toric, and land-based link to the indigenous peo-
ple who exercised sovereignty over the Hawaiian
Islands, and that group has never relinquished
its claims to sovereignty or its sovereign lands;
(B) Congress does not extend services to
Native Hawaiians because of their race, but be-
cause of their unique status as the indigenous
people of a once sovereign nation as to whom
the United States has established a trust rela-
tionship;
(C) Congress has also delegated broad au-
thority to administer a portion of the Federal
trust responsibility to the State of Hawaii;
(D) the political status of Native Hawai-
ians is comparable to that of American Indians
and Alaska Natives; and
(E) the aboriginal, indigenous people of
the United States have—
(i) a continuing right to autonomy in
their internal affairs; and
(ii) an ongoing right of self-deter-
mination and self-governance that has
never been extinguished;
(14) the political relationship between the
United States and the Native Hawaiian people has
been recognized and reaffirmed by the United States
as evidenced by the inclusion of Native Hawaiians
in—
(A) the Native American Programs Act of
1974 (42 U.S.C. 2291 et seq.);
(B) the American Indian Religious Free-
dom Act (42 U.S.C. 1996 et seq.);
(C) the National Museum of the American
Indian Act (20 U.S.C. 80q et seq.);
(D) the Native American Graves Protec-
tion and Repatriation Act (25 U.S.C. 3001 et
seq.);
(E) the National Historic Preservation Act
(16 U.S.C. 470 et seq.);
(F) the Native American Languages Act of
1992 (106 Stat. 3434);
(G) the American Indian, Alaska Native
and Native Hawaiian Culture and Arts Devel-
opment Act (20 U.S.C. 4401 et seq.);
(H) the Job Training Partnership Act (29
U.S.C. 1501 et seq.); and
(I) the Older Americans Act of 1965 (42
U.S.C. 3001 et seq.); and
(15) in the area of housing, the United States
has recognized and reaffirmed the political relation-
ship with the Native Hawaiian people through—
(A) the enactment of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.),
which set aside approximately 200,000 acres of
public lands that became known as Hawaiian
Home Lands in the Territory of Hawaii that
had been ceded to the United States for home-
steading by Native Hawaiians in order to reha-
bilitate a landless and dying people;
(B) the enactment of the Act entitled ‘‘An
Act to provide for the admission of the State of
homes on Hawaiian Home Lands under the Na-
tional Housing Act (Public Law 479; 73d Con-
gress; 12 U.S.C. 1701 et seq.);
(D) authorizing Native Hawaiian represen-
tation on the National Commission on Amer-
ican Indian, Alaska Native, and Native Hawai-
ian Housing under Public Law 101–235;
(E) the inclusion of Native Hawaiians in
the definition under section 3764 of title 38,
United States Code, applicable to subchapter V
of chapter 37 of title 38, United States Code
(relating to a housing loan program for Native
American veterans); and
(F) the enactment of the Hawaiian Home
Lands Recovery Act (109 Stat. 357; 48 U.S.C.
491, note prec.) which establishes a process for
the conveyance of Federal lands to the Depart-
ment of Hawaiian Homes Lands that are equiv-
alent in value to lands acquired by the United
States from the Hawaiian Home Lands inven-
tory.
SEC. 513. HOUSING ASSISTANCE.
The Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.) is
amended by adding at the end the following:
‘‘TITLE VIII—HOUSING ASSIST-
ANCE FOR NATIVE HAWAI-
IANS
‘‘SEC. 801. DEFINITIONS.
‘‘In this title:
‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;
DEPARTMENT.—The term ‘Department of Hawaiian
Home Lands’ or ‘Department’ means the agency or
department of the government of the State of Ha-
waii that is responsible for the administration of the
Hawaiian Homes Commission Act, 1920 (42 Stat.
108 et seq.).
‘‘(2) DIRECTOR.—The term ‘Director’ means
the Director of the Department of Hawaiian Home
Lands.
‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI-
LIES.—
‘‘(A) IN
GENERAL.—The term ‘elderly
family’ or ‘near-elderly family’ means a family
whose head (or his or her spouse), or whose sole
member, is—
‘‘(i) for an elderly family, an elderly
person; or
‘‘(ii) for a near-elderly family, a near-
elderly person.
‘‘(B) CERTAIN FAMILIES INCLUDED.—The
term ‘elderly family’ or ‘near-elderly family’
includes—
‘‘(i) two or more elderly persons or
near-elderly persons, as the case may be,
living together; and
‘‘(ii) one or more persons described in
clause (i) living with one or more persons
determined under the housing plan to be
essential to their care or well-being.
‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha-
waiian Home Lands’ means lands that—
‘‘(A) have the status as Hawaiian home
lands under section 204 of the Hawaiian
Homes Commission Act, 1920(42 Stat. 110); or
‘‘(B) are acquired pursuant to that Act.
‘‘(5) HOUSING AREA.—The term ‘housing area’
means an area of Hawaiian Home Lands with re-
spect to which the Department of Hawaiian Home
Lands is authorized to provide assistance for afford-
able housing under this Act.
‘‘(6) HOUSING ENTITY.—The term ‘housing en-
tity’ means the Department of Hawaiian Home
Lands.
‘‘(7) HOUSING PLAN.—The term ‘housing plan’
means a plan developed by the Department of Ha-
waiian Home Lands.
‘‘(8) MEDIAN INCOME.—The term ‘median in-
come’ means, with respect to an area that is a Ha-
waiian housing area, the greater of—
‘‘(A) the median income for the Hawaiian
housing area, which shall be determined by the
Secretary; or
‘‘(B) the median income for the State of
Hawaii.
‘‘(9) NATIVE
HAWAIIAN.—The term ‘Native
Hawaiian’ means any individual who is—
‘‘(A) a citizen of the United States; and
‘‘(B) a descendant of the aboriginal people,
who, prior to 1778, occupied and exercised sov-
ereignty in the area that currently constitutes
the State of Hawaii, as evidenced by—
‘‘(i) genealogical records;
‘‘(ii) verification by kupuna (elders) or
kama’aina (long-term community resi-
dents); or
‘‘(iii) birth records of the State of Ha-
waii.
‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING
ACTIVITIES.
‘‘(a) GRANT AUTHORITY.—For each fiscal year, the
Secretary shall (to the extent amounts are made available
to carry out this title) make a grant under this title to
the Department of Hawaiian Home Lands to carry out
affordable housing activities for Native Hawaiian families
who are eligible to reside on the Hawaiian Home Lands.
‘‘(b) PLAN REQUIREMENT.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant under this title to the Department of Hawai-
ian Home Lands for a fiscal year only if—
‘‘(A) the Director has submitted to the
Secretary a housing plan for that fiscal year;
and
‘‘(B) the Secretary has determined under
section 804 that the housing plan complies with
the requirements of section 803.
‘‘(2) WAIVER.—The Secretary may waive the
applicability of the requirements under paragraph
(1), in part, if the Secretary finds that the Depart-
ment of Hawaiian Home Lands has not complied or
cannot comply with those requirements due to cir-
cumstances beyond the control of the Department of
Hawaiian Home Lands.
‘‘(c) USE
OF AFFORDABLE HOUSING ACTIVITIES
UNDER PLAN.—Except as provided in subsection (e),
amounts provided under a grant under this section may
be used only for affordable housing activities under this
title that are consistent with a housing plan approved
under section 804.
‘‘(d) ADMINISTRATIVE EXPENSES.—
‘‘(1) IN
GENERAL.—The Secretary shall, by
regulation, authorize the Department of Hawaiian
Home Lands to use a percentage of any grant
amounts received under this title for any reasonable
administrative and planning expenses of the Depart-
ment relating to carrying out this title and activities
assisted with those amounts.
‘‘(2) ADMINISTRATIVE
AND
PLANNING
EX-
PENSES.—The administrative and planning expenses
referred to in paragraph (1) include—
‘‘(A) costs for salaries of individuals en-
gaged in administering and managing afford-
able housing activities assisted with grant
amounts provided under this title; and
‘‘(B) expenses incurred in preparing a
housing plan under section 803.
‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc-
tor shall make all reasonable efforts, consistent with the
Department to serve the needs identified in
subparagraph (A) during the period.
‘‘(C) ACTIVITIES PLANS.—An overview of
the activities planned during the period includ-
ing an analysis of the manner in which the ac-
tivities will enable the Department to meet its
mission, goals, and objectives.
‘‘(c) ONE-YEAR PLAN.—A housing plan under this
section shall—
‘‘(1) be in a form prescribed by the Secretary;
and
‘‘(2) contain the following information relating
to the fiscal year for which the assistance under this
title is to be made available:
‘‘(A) GOALS AND OBJECTIVES.—A state-
ment of the goals and objectives to be accom-
plished during the period covered by the plan.
‘‘(B) STATEMENT
OF
NEEDS.—A state-
ment of the housing needs of the low-income
families served by the Department and the
means by which those needs will be addressed
during the period covered by the plan,
including—
‘‘(i) a description of the estimated
housing needs and the need for assistance
for the low-income families to be served by
the Department, including a description of
the manner in which the geographical dis-
tribution of assistance is consistent with—
‘‘(I) the geographical needs of
those families; and
‘‘(II) needs for various categories
of housing assistance; and
‘‘(ii) a description of the estimated
housing needs for all families to be served
by the Department.
‘‘(C) FINANCIAL
RESOURCES.—An oper-
ating budget for the Department of Hawaiian
Home Lands, in a form prescribed by the Sec-
retary, that includes—
‘‘(i) an identification and a descrip-
tion of the financial resources reasonably
available to the Department to carry out
the purposes of this title, including an ex-
planation of the manner in which amounts
made available will be used to leverage ad-
ditional resources; and
‘‘(ii) the uses to which the resources
described in clause (i) will be committed,
including—
‘‘(I) eligible and required afford-
able housing activities; and
‘‘(II) administrative expenses.
‘‘(D) 
AFFORDABLE
HOUSING
RE-
SOURCES.—A statement of the affordable hous-
ing resources currently available at the time of
the submittal of the plan and to be made avail-
able during the period covered by the plan,
including—
‘‘(i) a description of the significant
characteristics of the housing market in
the State of Hawaii, including the avail-
ability of housing from other public
sources, private market housing;
‘‘(ii) the manner in which the charac-
teristics referred to in clause (i) influence
the decision of the Department of Hawai-
ian Home Lands to use grant amounts to
be provided under this title for—
‘‘(I) rental assistance;
‘‘(II) the production of new units;
‘‘(III) the acquisition of existing
units; or
‘‘(IV) the rehabilitation of units;
‘‘(iii) a description of the structure,
coordination, and means of cooperation be-
tween the Department of Hawaiian Home
Lands and any other governmental entities
in the development, submission, or imple-
mentation of housing plans, including a de-
scription of—
‘‘(I) the involvement of private,
public, and nonprofit organizations
and institutions;
‘‘(II) the use of loan guarantees
under section 184A of the Housing
and Community Development Act of
1992; and
‘‘(III) other housing assistance
provided by the United States, includ-
ing loans, grants, and mortgage insur-
ance;
‘‘(iv) a description of the manner in
which the plan will address the needs iden-
tified pursuant to subparagraph (C);
‘‘(v) a description of—
‘‘(I) any existing or anticipated
homeownership programs and rental
programs to be carried out during the
period covered by the plan; and
‘‘(II) the requirements and as-
sistance available under the programs
referred to in subclause (I);
‘‘(vi) a description of—
‘‘(I) any existing or anticipated
housing rehabilitation programs nec-
essary to ensure the long-term viabil-
ity of the housing to be carried out
during the period covered by the plan;
and
‘‘(II) the requirements and as-
sistance available under the programs
referred to in subclause (I);
‘‘(vii) a description of—
‘‘(I) all other existing or antici-
pated housing assistance provided by
the Department of Hawaiian Home
Lands during the period covered by
the plan, including—
‘‘(aa) transitional housing;
‘‘(bb) homeless housing;
‘‘(cc) college housing; and
‘‘(dd) 
supportive 
services
housing; and
‘‘(II) the requirements and as-
sistance available under such pro-
grams;
‘‘(viii)(I) a description of any housing
to be demolished or disposed of;
‘‘(II) a timetable for that demolition
or disposition; and
‘‘(III) any other information required
by the Secretary with respect to that dem-
olition or disposition;
‘‘(ix) a description of the manner in
which the Department of Hawaiian Home
Lands will coordinate with welfare agencies
in the State of Hawaii to ensure that resi-
dents of the affordable housing will be pro-
vided with access to resources to assist in
obtaining employment and achieving self-
sufficiency;
‘‘(x) a description of the requirements
established by the Department of Hawai-
ian Home Lands to—
‘‘(I) promote the safety of resi-
dents of the affordable housing;
‘‘(II) facilitate the undertaking of
crime prevention measures;
‘‘(III) allow resident input and
involvement, including the establish-
ment of resident organizations; and
‘‘(IV) allow for the coordination
of crime prevention activities between
the Department and local law enforce-
ment officials; and
‘‘(xi) a description of the entities that
will carry out the activities under the plan,
including the organizational capacity and
key personnel of the entities.
‘‘(E) CERTIFICATION
OF
COMPLIANCE.—
Evidence of compliance that shall include, as
appropriate—
‘‘(i) a certification that the Depart-
ment of Hawaiian Home Lands will com-
ply with—
‘‘(I) title VI of the Civil Rights
Act of 1964 (42 U.S.C. 2000d et seq.)
or with the Fair Housing Act (42
U.S.C. 3601 et seq.) in carrying out
this title, to the extent that such title
is applicable; and
‘‘(II) other applicable Federal
statutes;
‘‘(ii) a certification that the Depart-
ment will require adequate insurance cov-
erage for housing units that are owned and
operated or assisted with grant amounts
provided under this title, in compliance
with such requirements as may be estab-
lished by the Secretary;
‘‘(iii) a certification that policies are
in effect and are available for review by the
Secretary and the public governing the eli-
gibility, admission, and occupancy of fami-
lies for housing assisted with grant
amounts provided under this title;
‘‘(iv) a certification that policies are
in effect and are available for review by the
Secretary and the public governing rents
charged, including the methods by which
such rents or homebuyer payments are de-
termined, for housing assisted with grant
amounts provided under this title; and
‘‘(v) a certification that policies are in
effect and are available for review by the
Secretary and the public governing the
management and maintenance of housing
assisted with grant amounts provided
under this title.
‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—
‘‘(1) IN GENERAL.—To the extent that the re-
quirements of title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.) or of the Fair Hous-
ing Act (42 U.S.C. 3601 et seq.) apply to assistance
provided under this title, nothing in the require-
ments concerning discrimination on the basis of race
shall be construed to prevent the provision of assist-
ance under this title—
‘‘(A) to the Department of Hawaiian
Home Lands on the basis that the Department
served Native Hawaiians; or
‘‘(B) to an eligible family on the basis that
the family is a Native Hawaiian family.
‘‘(2) CIVIL RIGHTS.—Program eligibility under
this title may be restricted to Native Hawaiians.
Subject to the preceding sentence, no person may be
discriminated against on the basis of race, color, na-
tional origin, religion, sex, familial status, or dis-
ability.
‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a
condition of receiving grant amounts under this title, the
Department of Hawaiian Home Lands shall, to the extent
practicable, provide for private nonprofit organizations ex-
perienced in the planning and development of affordable
housing for Native Hawaiians to carry out affordable
housing activities with those grant amounts.
‘‘SEC. 804. REVIEW OF PLANS.
‘‘(a) REVIEW AND NOTICE.—
‘‘(1) REVIEW.—
‘‘(A) IN
GENERAL.—The Secretary shall
conduct a review of a housing plan submitted to
the Secretary under section 803 to ensure that
the plan complies with the requirements of that
section.
‘‘(B) LIMITATION.—The Secretary shall
have the discretion to review a plan referred to
in subparagraph (A) only to the extent that the
Secretary considers that the review is necessary.
‘‘(2) NOTICE.—
‘‘(A) IN
GENERAL.—Not later than 60
days after receiving a plan under section 803,
the Secretary shall notify the Director of the
Department of Hawaiian Home Lands whether
the plan complies with the requirements under
that section.
‘‘(B) EFFECT OF FAILURE OF SECRETARY
TO TAKE ACTION.—For purposes of this title, if
the Secretary does not notify the Director, as
required under this subsection and subsection
(b), upon the expiration of the 60-day period
described in subparagraph (A)—
‘‘(i) the plan shall be considered to
have been determined to comply with the
requirements under section 803; and
‘‘(ii) the Director shall be considered
to have been notified of compliance.
‘‘(b) NOTICE OF REASONS FOR DETERMINATION OF
NONCOMPLIANCE.—If the Secretary determines that a
plan submitted under section 803 does not comply with
the requirements of that section, the Secretary shall speci-
fy in the notice under subsection (a)—
‘‘(1) the reasons for noncompliance; and
‘‘(2) any modifications necessary for the plan to
meet the requirements of section 803.
‘‘(c) REVIEW.—
‘‘(1) IN GENERAL.—After the Director of the
Department of Hawaiian Home Lands submits a
housing plan under section 803, or any amendment
or modification to the plan to the Secretary, to the
extent that the Secretary considers such action to be
necessary to make a determination under this sub-
section, the Secretary shall review the plan (includ-
ing any amendments or modifications thereto) to de-
termine whether the contents of the plan—
‘‘(A) set forth the information required by
section 803 to be contained in the housing plan;
‘‘(B) are consistent with information and
data available to the Secretary; and
‘‘(C) are not prohibited by or inconsistent
with any provision of this Act or any other ap-
plicable law.
‘‘(2) INCOMPLETE PLANS.—If the Secretary de-
termines under this subsection that any of the ap-
propriate 
certifications 
required 
under 
section
803(c)(2)(E) are not included in a plan, the plan
shall be considered to be incomplete.
‘‘(d) UPDATES TO PLAN.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
after a plan under section 803 has been submitted
for a fiscal year, the Director of the Department of
Hawaiian Home Lands may comply with the provi-
sions of that section for any succeeding fiscal year
(with respect to information included for the 5-year
period under section 803(b) or for the 1-year period
under section 803(c)) by submitting only such infor-
mation regarding such changes as may be necessary
to update the plan previously submitted.
‘‘(2) COMPLETE
PLANS.—The Director shall
submit a complete plan under section 803 not later
than 4 years after submitting an initial plan under
that section, and not less frequently than every 4
years thereafter.
‘‘(e) EFFECTIVE DATE.—This section and section
803 shall take effect on the date provided by the Secretary
pursuant to section 807(a) to provide for timely submis-
sion and review of the housing plan as necessary for the
provision of assistance under this title for fiscal year 2001.
‘‘SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR
STANDARDS.
‘‘(a) PROGRAM INCOME.—
‘‘(1) AUTHORITY TO RETAIN.—The Department
of Hawaiian Home Lands may retain any program
income that is realized from any grant amounts re-
ceived by the Department under this title if—
‘‘(A) that income was realized after the ini-
tial disbursement of the grant amounts received
by the Department; and
‘‘(B) the Director agrees to use the pro-
gram income for affordable housing activities in
accordance with the provisions of this title.
‘‘(2) PROHIBITION OF REDUCTION OF GRANT.—
The Secretary may not reduce the grant amount for
the Department of Hawaiian Home Lands based
solely on—
‘‘(A) whether the Department retains pro-
gram income under paragraph (1); or
‘‘(B) the amount of any such program in-
come retained.
‘‘(3) EXCLUSION OF AMOUNTS.—The Secretary
may, by regulation, exclude from consideration as
program income any amounts determined to be so
small that compliance with the requirements of this
subsection would create an unreasonable administra-
tive burden on the Department.
‘‘(b) LABOR STANDARDS.—
‘‘(1) IN GENERAL.—Any contract or agreement
for assistance, sale, or lease pursuant to this title
shall contain—
‘‘(A) a provision requiring that an amount
not less than the wages prevailing in the local-
ity, as determined or adopted (subsequent to a
determination under applicable State or local
law) by the Secretary, shall be paid to all archi-
tects, technical engineers, draftsmen, techni-
cians employed in the development and all
maintenance, and laborers and mechanics em-
ployed in the operation, of the affordable hous-
ing project involved; and
‘‘(B) a provision that an amount not less
than the wages prevailing in the locality, as pre-
determined by the Secretary of Labor pursuant
to the Act commonly known as the ‘Davis-
Bacon Act’ (46 Stat. 1494; chapter 411; 40
U.S.C. 276a et seq.) shall be paid to all labor-
ers and mechanics employed in the development
of the affordable housing involved.
‘‘(2) EXCEPTIONS.—Paragraph (1) and provi-
sions relating to wages required under paragraph (1)
in any contract or agreement for assistance, sale, or
lease under this title, shall not apply to any indi-
vidual who performs the services for which the indi-
vidual volunteered and who is not otherwise em-
ployed at any time in the construction work and re-
ceived no compensation or is paid expenses, reason-
able benefits, or a nominal fee for those services.
‘‘SEC. 806. ENVIRONMENTAL REVIEW.
‘‘(a) IN GENERAL.—
‘‘(1) RELEASE OF FUNDS.—
‘‘(A) IN
GENERAL.—The Secretary may
carry out the alternative environmental protec-
tion procedures described in subparagraph (B)
in order to ensure—
‘‘(i) that the policies of the National
Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) and other provisions
of law that further the purposes of such
Act (as specified in regulations issued by
the Secretary) are most effectively imple-
mented in connection with the expenditure
of grant amounts provided under this title;
and
‘‘(ii) to the public undiminished pro-
tection of the environment.
‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO-
TECTION PROCEDURE.—In lieu of applying en-
vironmental protection procedures otherwise ap-
plicable, the Secretary may by regulation pro-
vide for the release of funds for specific projects
to the Department of Hawaiian Home Lands if
the Director of the Department assumes all of
the responsibilities for environmental review,
decisionmaking, and action under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), and such other provisions of law
as the regulations of the Secretary specify, that
would apply to the Secretary were the Secretary
to undertake those projects as Federal projects.
‘‘(2) REGULATIONS.—
‘‘(A) IN
GENERAL.—The Secretary shall
issue regulations to carry out this section only
after consultation with the Council on Environ-
mental Quality.
‘‘(B) CONTENTS.—The regulations issued
under this paragraph shall—
‘‘(i) provide for the monitoring of the
environmental reviews performed under
this section;
‘‘(ii) in the discretion of the Secretary,
facilitate training for the performance of
such reviews; and
‘‘(iii) provide for the suspension or
termination of the assumption of respon-
sibilities under this section.
‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.—
The duty of the Secretary under paragraph (2)(B)
shall not be construed to limit or reduce any respon-
sibility assumed by the Department of Hawaiian
Home Lands for grant amounts with respect to any
specific release of funds.
‘‘(b) PROCEDURE.—
‘‘(1) IN GENERAL.—The Secretary shall author-
ize the release of funds subject to the procedures
under this section only if, not less than 15 days be-
fore that approval and before any commitment of
funds to such projects, the Director of the Depart-
ment of Hawaiian Home Lands submits to the Sec-
retary a request for such release accompanied by a
certification that meets the requirements of sub-
section (c).
‘‘(2) EFFECT OF APPROVAL.—The approval of
the Secretary of a certification described in para-
graph (1) shall be deemed to satisfy the responsibil-
ities of the Secretary under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
and such other provisions of law as the regulations
of the Secretary specify to the extent that those re-
sponsibilities relate to the releases of funds for
projects that are covered by that certification.
‘‘(c) CERTIFICATION.—A certification under the pro-
cedures under this section shall—
‘‘(1) be in a form acceptable to the Secretary;
‘‘(2) be executed by the Director of the Depart-
ment of Hawaiian Home Lands;
‘‘(3) specify that the Department of Hawaiian
Home Lands has fully carried out its responsibilities
as described under subsection (a); and
‘‘(4) specify that the Director—
‘‘(A) consents to assume the status of a re-
sponsible Federal official under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and each provision of law speci-
fied in regulations issued by the Secretary to
the extent that those laws apply by reason of
subsection (a); and
‘‘(B) is authorized and consents on behalf
of the Department of Hawaiian Home Lands
and the Director to accept the jurisdiction of
the Federal courts for the purpose of enforce-
ment of the responsibilities of the Director of
the Department of Hawaiian Home Lands as
such an official.
‘‘SEC. 807. REGULATIONS.
‘‘The Secretary shall issue final regulations necessary
to carry out this title not later than October 1, 2001.
‘‘SEC. 808. EFFECTIVE DATE.
‘‘Except as otherwise expressly provided in this title,
this title shall take effect on the date of the enactment
of the American Homeownership and Economic Oppor-
tunity Act of 2000.
‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.
‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI-
LIES.—
‘‘(1) PRIMARY OBJECTIVE.—The national objec-
tives of this title are—
‘‘(A) to assist and promote affordable
housing activities to develop, maintain, and op-
erate affordable housing in safe and healthy en-
vironments for occupancy by low-income Native
Hawaiian families;
‘‘(B) to ensure better access to private
mortgage markets and to promote self-suffi-
ciency of low-income Native Hawaiian families;
‘‘(C) to coordinate activities to provide
housing for low-income Native Hawaiian fami-
lies with Federal, State and local activities to
further economic and community development;
‘‘(D) to plan for and integrate infrastruc-
ture resources on the Hawaiian Home Lands
with housing development; and
‘‘(E) to—
‘‘(i) promote the development of pri-
vate capital markets; and
‘‘(ii) allow the markets referred to in
clause (i) to operate and grow, thereby
benefiting Native Hawaiian communities.
‘‘(2) ELIGIBLE FAMILIES.—
‘‘(A) IN
GENERAL.—Except as provided
under subparagraph (B), assistance for eligible
housing activities under this title shall be lim-
ited to low-income Native Hawaiian families.
‘‘(B) EXCEPTION
TO
LOW-INCOME
RE-
QUIREMENT.—
‘‘(i) IN GENERAL.—The Director may
provide assistance for homeownership ac-
tivities under—
‘‘(I) section 810(b);
‘‘(II) model activities under sec-
tion 810(f); or
‘‘(III) loan guarantee activities
under section 184A of the Housing
and Community Development Act of
1992 to Native Hawaiian families who
are not low-income families, to the ex-
tent that the Secretary approves the
activities under that section to ad-
dress a need for housing for those
families that cannot be reasonably
met without that assistance.
‘‘(ii) LIMITATIONS.—The Secretary
shall establish limitations on the amount of
assistance that may be provided under this
title for activities for families that are not
low-income families.
‘‘(C) OTHER FAMILIES.—Notwithstanding
paragraph (1), the Director may provide hous-
ing or housing assistance provided through af-
fordable housing activities assisted with grant
amounts under this title to a family that is not
composed of Native Hawaiians if—
‘‘(i) the Department determines that
the presence of the family in the housing
involved is essential to the well-being of
Native Hawaiian families; and
‘‘(ii) the need for housing for the fam-
ily cannot be reasonably met without the
assistance.
‘‘(D) PREFERENCE.—
‘‘(i) IN
GENERAL.—A housing plan
submitted under section 803 may authorize
a preference, for housing or housing assist-
ance provided through affordable housing
activities assisted with grant amounts pro-
vided under this title to be provided, to the
extent practicable, to families that are eli-
gible to reside on the Hawaiian Home
Lands.
‘‘(ii) APPLICATION.—In any case in
which a housing plan provides for pref-
erence described in clause (i), the Director
shall ensure that housing activities that are
assisted with grant amounts under this
title are subject to that preference.
‘‘(E) USE
OF
NONPROFIT
ORGANIZA-
TIONS.—As a condition of receiving grant
amounts under this title, the Department of
Hawaiian Home Lands, shall to the extent
practicable, provide for private nonprofit orga-
nizations experienced in the planning and devel-
opment of affordable housing for Native Hawai-
ians to carry out affordable housing activities
with those grant amounts.
‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
‘‘(a) IN GENERAL.—Affordable housing activities
under this section are activities conducted in accordance
with the requirements of section 811 to—
‘‘(1) develop or to support affordable housing
for rental or homeownership; or
‘‘(2) provide housing services with respect to af-
fordable housing, through the activities described in
subsection (b).
‘‘(b) ACTIVITIES.—The activities described in this
subsection are the following:
‘‘(1) DEVELOPMENT.—The acquisition, new
construction, reconstruction, or moderate or sub-
stantial rehabilitation of affordable housing, which
may include—
‘‘(A) real property acquisition;
‘‘(B) site improvement;
‘‘(C) the development of utilities and util-
ity services;
‘‘(D) conversion;
‘‘(E) demolition;
‘‘(F) financing;
‘‘(G) administration and planning; and
‘‘(H) other related activities.
‘‘(2) HOUSING
SERVICES.—The provision of
housing-related services for affordable housing,
including—
‘‘(A) housing counseling in connection with
rental or homeownership assistance;
‘‘(B) the establishment and support of
resident organizations and resident manage-
ment corporations;
‘‘(C) energy auditing;
‘‘(D) activities related to the provisions of
self-sufficiency and other services; and
‘‘(E) other services related to assisting
owners, tenants, contractors, and other entities
participating or seeking to participate in other
housing activities assisted pursuant to this sec-
tion.
‘‘(3) HOUSING MANAGEMENT SERVICES.—The
provision of management services for affordable
housing, including—
‘‘(A) the preparation of work specifica-
tions;
‘‘(B) loan processing;
‘‘(C) inspections;
‘‘(D) tenant selection;
‘‘(E) management of tenant-based rental
assistance; and
‘‘(F) management of affordable housing
projects.
‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI-
TIES.—The provision of safety, security, and law en-
forcement measures and activities appropriate to
protect residents of affordable housing from crime.
‘‘(5) MODEL
ACTIVITIES.—Housing activities
under model programs that are—
‘‘(A) designed to carry out the purposes of
this title; and
‘‘(B) specifically approved by the Secretary
as appropriate for the purpose referred to in
subparagraph (A).
‘‘SEC. 811. PROGRAM REQUIREMENTS.
‘‘(a) RENTS.—
‘‘(1) ESTABLISHMENT.—Subject to paragraph
(2), as a condition to receiving grant amounts under
this title, the Director shall develop written policies
governing rents and homebuyer payments charged
for dwelling units assisted under this title, including
methods by which such rents and homebuyer pay-
ments are determined.
‘‘(2) MAXIMUM RENT.—In the case of any low-
income family residing in a dwelling unit assisted
with grant amounts under this title, the monthly
rent or homebuyer payment (as applicable) for that
dwelling unit may not exceed 30 percent of the
monthly adjusted income of that family.
‘‘(b) MAINTENANCE AND EFFICIENT OPERATION.—
‘‘(1) IN GENERAL.—The Director shall, using
amounts of any grants received under this title, re-
serve and use for operating under section 810 such
amounts as may be necessary to provide for the con-
tinued maintenance and efficient operation of such
housing.
‘‘(2) DISPOSAL
OF
CERTAIN
HOUSING.—This
subsection may not be construed to prevent the Di-
rector, or any entity funded by the Department,
from demolishing or disposing of housing, pursuant
to regulations established by the Secretary.
‘‘(c) INSURANCE COVERAGE.—As a condition to re-
ceiving grant amounts under this title, the Director shall
require adequate insurance coverage for housing units that
are owned or operated or assisted with grant amounts pro-
vided under this title.
‘‘(d) ELIGIBILITY FOR ADMISSION.—As a condition
to receiving grant amounts under this title, the Director
shall develop written policies governing the eligibility, ad-
mission, and occupancy of families for housing assisted
with grant amounts provided under this title.
‘‘(e) MANAGEMENT AND MAINTENANCE.—As a con-
dition to receiving grant amounts under this title, the Di-
rector shall develop policies governing the management
100
and maintenance of housing assisted with grant amounts
under this title.
‘‘SEC. 812. TYPES OF INVESTMENTS.
‘‘(a) IN GENERAL.—Subject to section 811 and an
applicable housing plan approved under section 803, the
Director shall have—
‘‘(1) the discretion to use grant amounts for af-
fordable housing activities through the use of—
‘‘(A) equity investments;
‘‘(B) interest-bearing loans or advances;
‘‘(C) noninterest-bearing loans or ad-
vances;
‘‘(D) interest subsidies;
‘‘(E) the leveraging of private investments;
or
‘‘(F) any other form of assistance that the
Secretary determines to be consistent with the
purposes of this title; and
‘‘(2) the right to establish the terms of assist-
ance provided with funds referred to in paragraph
(1).
‘‘(b) INVESTMENTS.—The Director may invest grant
amounts for the purposes of carrying out affordable hous-
ing activities in investment securities and other obliga-
tions, as approved by the Secretary.
101
‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR-
GETING.
‘‘(a) IN GENERAL.—Housing shall qualify for afford-
able housing for purposes of this title only if—
‘‘(1) each dwelling unit in the housing—
‘‘(A) in the case of rental housing, is made
available for occupancy only by a family that is
a low-income family at the time of the initial
occupancy of that family of that unit; and
‘‘(B) in the case of housing for home-
ownership, is made available for purchase only
by a family that is a low-income family at the
time of purchase; and
‘‘(2) each dwelling unit in the housing will re-
main affordable, according to binding commitments
satisfactory to the Secretary, for—
‘‘(A) the remaining useful life of the prop-
erty (as determined by the Secretary) without
regard to the term of the mortgage or to trans-
fer of ownership; or
‘‘(B) such other period as the Secretary
determines is the longest feasible period of time
consistent with sound economics and the pur-
poses of this title, except upon a foreclosure by
a lender (or upon other transfer in lieu of fore-
closure) if that action—
102
‘‘(i) recognizes any contractual or
legal rights of any public agency, nonprofit
sponsor, or other person or entity to take
an action that would—
‘‘(I) avoid termination of low-in-
come affordability, in the case of fore-
closure; or
‘‘(II) transfer ownership in lieu
of foreclosure; and
‘‘(ii) is not for the purpose of avoiding
low-income affordability restrictions, as de-
termined by the Secretary.
‘‘(b) EXCEPTION.—Notwithstanding subsection (a),
housing assisted pursuant to section 809(a)(2)(B) shall be
considered affordable housing for purposes of this title.
‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELEC-
TION.
‘‘(a) LEASES.—Except to the extent otherwise pro-
vided by or inconsistent with the laws of the State of Ha-
waii, in renting dwelling units in affordable housing as-
sisted with grant amounts provided under this title, the
Director, owner, or manager shall use leases that—
‘‘(1) do not contain unreasonable terms and
conditions;
103
‘‘(2) require the Director, owner, or manager to
maintain the housing in compliance with applicable
housing codes and quality standards;
‘‘(3) require the Director, owner, or manager to
give adequate written notice of termination of the
lease, which shall be the period of time required
under applicable State or local law;
‘‘(4) specify that, with respect to any notice of
eviction or termination, notwithstanding any State
or local law, a resident shall be informed of the op-
portunity, before any hearing or trial, to examine
any relevant documents, record, or regulations di-
rectly related to the eviction or termination;
‘‘(5) require that the Director, owner, or man-
ager may not terminate the tenancy, during the
term of the lease, except for serious or repeated vio-
lation of the terms and conditions of the lease, viola-
tion of applicable Federal, State, or local law, or for
other good cause; and
‘‘(6) provide that the Director, owner, or man-
ager may terminate the tenancy of a resident for
any activity, engaged in by the resident, any member
of the household of the resident, or any guest or
other person under the control of the resident,
that—
104
‘‘(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other residents or employees of the Department,
owner, or manager;
‘‘(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises
by, persons residing in the immediate vicinity of
the premises; or
‘‘(C) is criminal activity (including drug-re-
lated criminal activity) on or off the premises.
‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a
condition to receiving grant amounts under this title, the
Director shall adopt and use written tenant and home-
buyer selection policies and criteria that—
‘‘(1) are consistent with the purpose of pro-
viding housing for low-income families;
‘‘(2) are reasonably related to program eligi-
bility and the ability of the applicant to perform the
obligations of the lease; and
‘‘(3) provide for—
‘‘(A) the selection of tenants and home-
buyers from a written waiting list in accordance
with the policies and goals set forth in an appli-
cable housing plan approved under section 803;
and
105
‘‘(B) the prompt notification in writing of
any rejected applicant of the grounds for that
rejection.
‘‘SEC. 815. REPAYMENT.
‘‘If the Department of Hawaiian Home Lands uses
grant amounts to provide affordable housing under activi-
ties under this title and, at any time during the useful
life of the housing, the housing does not comply with the
requirement under section 813(a)(2), the Secretary
shall—
‘‘(1) reduce future grant payments on behalf of
the Department by an amount equal to the grant
amounts used for that housing (under the authority
of section 819(a)(2)); or
‘‘(2) require repayment to the Secretary of any
amount equal to those grant amounts.
‘‘SEC. 816. ANNUAL ALLOCATION.
‘‘For each fiscal year, the Secretary shall allocate any
amounts made available for assistance under this title for
the fiscal year, in accordance with the formula established
pursuant to section 817 to the Department of Hawaiian
Home Lands if the Department complies with the require-
ments under this title for a grant under this title.
106
‘‘SEC. 817. ALLOCATION FORMULA.
‘‘(a) ESTABLISHMENT.—The Secretary shall, by reg-
ulation issued not later than the expiration of the 6-month
period beginning on the date of the enactment of the
American Homeownership and Economic Opportunity Act
of 2000, in the manner provided under section 807, estab-
lish a formula to provide for the allocation of amounts
available for a fiscal year for block grants under this title
in accordance with the requirements of this section.
‘‘(b) FACTORS FOR DETERMINATION OF NEED.—
The formula under subsection (a) shall be based on factors
that reflect the needs for assistance for affordable housing
activities, including—
‘‘(1) the number of low-income dwelling units
owned or operated at the time pursuant to a con-
tract between the Director and the Secretary;
‘‘(2) the extent of poverty and economic distress
and the number of Native Hawaiian families eligible
to reside on the Hawaiian Home Lands; and
‘‘(3) any other objectively measurable condi-
tions that the Secretary and the Director may speci-
fy.
‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es-
tablishing the formula under subsection (a), the Secretary
shall consider the relative administrative capacities of the
107
Department of Hawaiian Home Lands and other chal-
lenges faced by the Department, including—
‘‘(1) geographic distribution within Hawaiian
Home Lands; and
‘‘(2) technical capacity.
‘‘(d) EFFECTIVE DATE.—This section shall take ef-
fect on the date of the enactment of the American Home-
ownership and Economic Opportunity Act of 2000.
‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.
‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT
AMOUNTS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b), if the Secretary finds after reasonable
notice and opportunity for a hearing that the De-
partment of Hawaiian Home Lands has failed to
comply substantially with any provision of this title,
the Secretary shall—
‘‘(A) terminate payments under this title
to the Department;
‘‘(B) reduce payments under this title to
the Department by an amount equal to the
amount of such payments that were not ex-
pended in accordance with this title; or
108
‘‘(C) limit the availability of payments
under this title to programs, projects, or activi-
ties not affected by such failure to comply.
‘‘(2) ACTIONS.—If the Secretary takes an ac-
tion under subparagraph (A), (B), or (C) of para-
graph (1), the Secretary shall continue that action
until the Secretary determines that the failure by
the Department to comply with the provision has
been remedied by the Department and the Depart-
ment is in compliance with that provision.
‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL
INCAPACITY.—The Secretary may provide technical assist-
ance for the Department, either directly or indirectly, that
is designed to increase the capability and capacity of the
Director of the Department to administer assistance pro-
vided under this title in compliance with the requirements
under this title if the Secretary makes a finding under
subsection (a), but determines that the failure of the De-
partment to comply substantially with the provisions of
this title—
‘‘(1) is not a pattern or practice of activities
constituting willful noncompliance; and
‘‘(2) is a result of the limited capability or ca-
pacity of the Department of Hawaiian Home Lands.
‘‘(c) REFERRAL FOR CIVIL ACTION.—
109
‘‘(1) AUTHORITY.—In lieu of, or in addition to,
any action that the Secretary may take under sub-
section (a), if the Secretary has reason to believe
that the Department of Hawaiian Home Lands has
failed to comply substantially with any provision of
this title, the Secretary may refer the matter to the
Attorney General of the United States with a rec-
ommendation that an appropriate civil action be in-
stituted.
‘‘(2) CIVIL ACTION.—Upon receiving a referral
under paragraph (1), the Attorney General may
bring a civil action in any United States district
court of appropriate jurisdiction for such relief as
may be appropriate, including an action—
‘‘(A) to recover the amount of the assist-
ance furnished under this title that was not ex-
pended in accordance with this title; or
‘‘(B) for mandatory or injunctive relief.
‘‘(d) REVIEW.—
‘‘(1) IN GENERAL.—If the Director receives no-
tice under subsection (a) of the termination, reduc-
tion, or limitation of payments under this Act, the
Director—
‘‘(A) may, not later than 60 days after re-
ceiving such notice, file with the United States
110
Court of Appeals for the Ninth Circuit, or in
the United States Court of Appeals for the Dis-
trict of Columbia, a petition for review of the
action of the Secretary; and
‘‘(B) upon the filing of any petition under
subparagraph (A), shall forthwith transmit cop-
ies of the petition to the Secretary and the At-
torney General of the United States, who shall
represent the Secretary in the litigation.
‘‘(2) PROCEDURE.—
‘‘(A) IN
GENERAL.—The Secretary shall
file in the court a record of the proceeding on
which the Secretary based the action, as pro-
vided in section 2112 of title 28, United States
Code.
‘‘(B) OBJECTIONS.—No objection to the
action of the Secretary shall be considered by
the court unless the Department has registered
the objection before the Secretary.
‘‘(3) DISPOSITION.—
‘‘(A) COURT PROCEEDINGS.—
‘‘(i) JURISDICTION
OF
COURT.—The
court shall have jurisdiction to affirm or
modify the action of the Secretary or to set
the action aside in whole or in part.
111
‘‘(ii) FINDINGS
OF
FACT.—If sup-
ported by substantial evidence on the
record considered as a whole, the findings
of fact by the Secretary shall be conclusive.
‘‘(iii) ADDITION.—The court may
order evidence, in addition to the evidence
submitted for review under this subsection,
to be taken by the Secretary, and to be
made part of the record.
‘‘(B) SECRETARY.—
‘‘(i) IN GENERAL.—The Secretary, by
reason of the additional evidence referred
to in subparagraph (A) and filed with the
court—
‘‘(I) may—
‘‘(aa) modify the findings of
fact of the Secretary; or
‘‘(bb) make new findings;
and
‘‘(II) shall file—
‘‘(aa) such modified or new
findings; and
‘‘(bb) the recommendation
of the Secretary, if any, for the
modification or setting aside of
112
the original action of the Sec-
retary.
‘‘(ii) FINDINGS.—The findings re-
ferred to in clause (i)(II)(bb) shall, with
respect to a question of fact, be considered
to be conclusive if those findings are—
‘‘(I) supported by substantial evi-
dence on the record; and
‘‘(II) considered as a whole.
‘‘(4) FINALITY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), upon the filing of the record
under this subsection with the court—
‘‘(i) the jurisdiction of the court shall
be exclusive; and
‘‘(ii) the judgment of the court shall
be final.
‘‘(B) REVIEW
BY
SUPREME
COURT.—A
judgment under subparagraph (A) shall be sub-
ject to review by the Supreme Court of the
United States upon writ of certiorari or certifi-
cation, as provided in section 1254 of title 28,
United States Code.
‘‘SEC. 819. MONITORING OF COMPLIANCE.
‘‘(a) ENFORCEABLE AGREEMENTS.—
113
‘‘(1) IN
GENERAL.—The Director, through
binding contractual agreements with owners or other
authorized entities, shall ensure long-term compli-
ance with the provisions of this title.
‘‘(2) MEASURES.—The measures referred to in
paragraph (1) shall provide for—
‘‘(A) to the extent allowable by Federal
and State law, the enforcement of the provi-
sions of this title by the Department and the
Secretary; and
‘‘(B) remedies for breach of the provisions
referred to in paragraph (1).
‘‘(b) PERIODIC MONITORING.—
‘‘(1) IN GENERAL.—Not less frequently than
annually, the Director shall review the activities con-
ducted and housing assisted under this title to as-
sess compliance with the requirements of this title.
‘‘(2) REVIEW.—Each review under paragraph
(1) shall include onsite inspection of housing to de-
termine compliance with applicable requirements.
‘‘(3) RESULTS.—The results of each review
under paragraph (1) shall be—
‘‘(A) included in a performance report of
the Director submitted to the Secretary under
section 820; and
114
‘‘(B) made available to the public.
‘‘(c) PERFORMANCE
MEASURES.—The Secretary
shall establish such performance measures as may be nec-
essary to assess compliance with the requirements of this
title.
‘‘SEC. 820. PERFORMANCE REPORTS.
‘‘(a) REQUIREMENT.—For each fiscal year, the Di-
rector shall—
‘‘(1) review the progress the Department has
made during that fiscal year in carrying out the
housing plan submitted by the Department under
section 803; and
‘‘(2) submit a report to the Secretary (in a
form acceptable to the Secretary) describing the con-
clusions of the review.
‘‘(b) CONTENT.—Each report submitted under this
section for a fiscal year shall—
‘‘(1) describe the use of grant amounts provided
to the Department of Hawaiian Home Lands for
that fiscal year;
‘‘(2) assess the relationship of the use referred
to in paragraph (1) to the goals identified in the
housing plan;
‘‘(3) indicate the programmatic accomplish-
ments of the Department; and
115
‘‘(4) describe the manner in which the Depart-
ment would change its housing plan submitted under
section 803 as a result of its experiences.
‘‘(c) SUBMISSIONS.—The Secretary shall—
‘‘(1) establish a date for submission of each re-
port under this section;
‘‘(2) review each such report; and
‘‘(3) with respect to each such report, make rec-
ommendations as the Secretary considers appro-
priate to carry out the purposes of this title.
‘‘(d) PUBLIC AVAILABILITY.—
‘‘(1) COMMENTS BY BENEFICIARIES.—In pre-
paring a report under this section, the Director shall
make the report publicly available to the bene-
ficiaries of the Hawaiian Homes Commission Act,
1920 (42 Stat. 108 et seq.) and give a sufficient
amount of time to permit those beneficiaries to com-
ment on that report before it is submitted to the
Secretary (in such manner and at such time as the
Director may determine).
‘‘(2) SUMMARY
OF
COMMENTS.—The report
shall include a summary of any comments received
by the Director from beneficiaries under paragraph
(1) regarding the program to carry out the housing
plan.
116
‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.
‘‘(a) ANNUAL REVIEW.—
‘‘(1) IN
GENERAL.—The Secretary shall, not
less frequently than on an annual basis, make such
reviews and audits as may be necessary or appro-
priate to determine whether—
‘‘(A) the Director has—
‘‘(i) carried out eligible activities
under this title in a timely manner;
‘‘(ii) carried out and made certifi-
cations in accordance with the require-
ments and the primary objectives of this
title and with other applicable laws; and
‘‘(iii) a continuing capacity to carry
out the eligible activities in a timely man-
ner;
‘‘(B) the Director has complied with the
housing plan submitted by the Director under
section 803; and
‘‘(C) the performance reports of the De-
partment under section 821 are accurate.
‘‘(2) ONSITE VISITS.—Each review conducted
under this section shall, to the extent practicable, in-
clude onsite visits by employees of the Department
of Housing and Urban Development.
117
‘‘(b) REPORT BY SECRETARY.—The Secretary shall
give the Department of Hawaiian Home Lands not less
than 30 days to review and comment on a report under
this subsection. After taking into consideration the com-
ments of the Department, the Secretary may revise the
report and shall make the comments of the Department
and the report with any revisions, readily available to the
public not later than 30 days after receipt of the com-
ments of the Department.
‘‘(c) EFFECT
OF REVIEWS.—The Secretary may
make appropriate adjustments in the amount of annual
grants under this title in accordance with the findings of
the Secretary pursuant to reviews and audits under this
section. The Secretary may adjust, reduce, or withdraw
grant amounts, or take other action as appropriate in ac-
cordance with the reviews and audits of the Secretary
under this section, except that grant amounts already ex-
pended on affordable housing activities may not be recap-
tured or deducted from future assistance provided to the
Department of Hawaiian Home Lands.
‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.
‘‘To the extent that the financial transactions of the
Department of Hawaiian Home Lands involving grant
amounts under this title relate to amounts provided under
this title, those transactions may be audited by the Comp-
118
troller General of the United States under such regula-
tions as may be prescribed by the Comptroller General.
The Comptroller General of the United States shall have
access to all books, accounts, records, reports, files, and
other papers, things, or property belonging to or in use
by the Department of Hawaiian Home Lands pertaining
to such financial transactions and necessary to facilitate
the audit.
‘‘SEC. 823. REPORTS TO CONGRESS.
‘‘(a) IN GENERAL.—Not later than 90 days after the
conclusion of each fiscal year in which assistance under
this title is made available, the Secretary shall submit to
Congress a report that contains—
‘‘(1) a description of the progress made in ac-
complishing the objectives of this title;
‘‘(2) a summary of the use of funds available
under this title during the preceding fiscal year; and
‘‘(3) a description of the aggregate outstanding
loan guarantees under section 184A of the Housing
and Community Development Act of 1992.
‘‘(b) RELATED REPORTS.—The Secretary may re-
quire the Director to submit to the Secretary such reports
and other information as may be necessary in order for
the Secretary to prepare the report required under sub-
section (a).
119
‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to the De-
partment of Housing and Urban Development for grants
under this title such sums as may be necessary for each
of fiscal years 2001, 2002, 2003, 2004, and 2005.’’.
SEC. 514. LOAN GUARANTEES.
Subtitle E of title I of the Housing and Community
Development Act of 1992 is amended by inserting after
section 184 (12 U.S.C. 1715z–13a) the following:
‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN
HOUSING.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 
DEPARTMENT
OF
HAWAIIAN
HOME
LANDS.—The term ‘Department of Hawaiian Home
Lands’ means the agency or department of the gov-
ernment of the State of Hawaii that is responsible
for the administration of the Hawaiian Homes Com-
mission Act, 1920 (42 Stat. 108 et seq.).
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a Native Hawaiian family, the Depart-
ment of Hawaiian Home Lands, the Office of Ha-
waiian Affairs, and private nonprofit or private for-
profit organizations experienced in the planning and
development of affordable housing for Native Hawai-
ians.
120
‘‘(3) FAMILY.—The term ‘family’ means one or
more persons maintaining a household, as the Sec-
retary shall by regulation provide.
‘‘(4) GUARANTEE FUND.—The term ‘Guarantee
Fund’ means the Native Hawaiian Housing Loan
Guarantee Fund established under subsection (i).
‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha-
waiian Home Lands’ means lands that—
‘‘(A) have the status of Hawaiian Home
Lands under section 204 of the Hawaiian
Homes Commission Act (42 Stat. 110); or
‘‘(B) are acquired pursuant to that Act.
‘‘(6) NATIVE
HAWAIIAN.—The term ‘Native
Hawaiian’ means any individual who is—
‘‘(A) a citizen of the United States; and
‘‘(B) a descendant of the aboriginal people,
who, prior to 1778, occupied and exercised sov-
ereignty in the area that currently constitutes
the State of Hawaii, as evidenced by—
‘‘(i) genealogical records;
‘‘(ii) verification by kupuna (elders) or
kama’aina (long-term community resi-
dents); or
‘‘(iii) birth records of the State of Ha-
waii.
121
‘‘(7) OFFICE
OF
HAWAIIAN
AFFAIRS.—The
term ‘Office of Hawaiian Affairs’ means the entity
of that name established under the constitution of
the State of Hawaii.
‘‘(b) AUTHORITY.—To provide access to sources of
private financing to Native Hawaiian families who other-
wise could not acquire housing financing because of the
unique legal status of the Hawaiian Home Lands or as
a result of a lack of access to private financial markets,
the Secretary may guarantee an amount not to exceed 100
percent of the unpaid principal and interest that is due
on an eligible loan under subsection (b).
‘‘(c) ELIGIBLE LOANS.—Under this section, a loan
is an eligible loan if that loan meets the following require-
ments:
‘‘(1) ELIGIBLE BORROWERS.—The loan is made
only to a borrower who is—
‘‘(A) a Native Hawaiian family;
‘‘(B) the Department of Hawaiian Home
Lands;
‘‘(C) the Office of Hawaiian Affairs; or
‘‘(D) a private nonprofit organization expe-
rienced in the planning and development of af-
fordable housing for Native Hawaiians.
‘‘(2) ELIGIBLE HOUSING.—
122
‘‘(A) IN GENERAL.—The loan will be used
to construct, acquire, or rehabilitate not more
than 4-family dwellings that are standard hous-
ing and are located on Hawaiian Home Lands
for which a housing plan described in subpara-
graph (B) applies.
‘‘(B) HOUSING PLAN.—A housing plan de-
scribed in this subparagraph is a housing plan
that—
‘‘(i) has been submitted and approved
by the Secretary under section 803 of the
Native American Housing Assistance and
Self-Determination Act of 1996; and
‘‘(ii) provides for the use of loan guar-
antees under this section to provide afford-
able homeownership housing on Hawaiian
Home Lands.
‘‘(3) SECURITY.—The loan may be secured by
any collateral authorized under applicable Federal or
State law.
‘‘(4) LENDERS.—
‘‘(A) IN
GENERAL.—The loan shall be
made only by a lender approved by, and meet-
ing qualifications established by, the Secretary,
including any lender described in subparagraph
123
(B), except that a loan otherwise insured or
guaranteed by an agency of the Federal Gov-
ernment or made by the Department of Hawai-
ian Home Lands from amounts borrowed from
the United States shall not be eligible for a
guarantee under this section.
‘‘(B) APPROVAL.—The following lenders
shall be considered to be lenders that have been
approved by the Secretary:
‘‘(i) Any mortgagee approved by the
Secretary for participation in the single
family mortgage insurance program under
title II of the National Housing Act (12
U.S.C.A. 1707 et seq.).
‘‘(ii) Any lender that makes housing
loans under chapter 37 of title 38, United
States Code, that are automatically guar-
anteed under section 3702(d) of title 38,
United States Code.
‘‘(iii) Any lender approved by the Sec-
retary of Agriculture to make guaranteed
loans for single family housing under the
Housing Act of 1949 (42 U.S.C.A. 1441 et
seq.).
124
‘‘(iv) Any other lender that is super-
vised, approved, regulated, or insured by
any agency of the Federal Government.
‘‘(5) TERMS.—The loan shall—
‘‘(A) be made for a term not exceeding 30
years;
‘‘(B) bear interest (exclusive of the guar-
antee fee under subsection (d) and service
charges, if any) at a rate agreed upon by the
borrower and the lender and determined by the
Secretary to be reasonable, but not to exceed
the rate generally charged in the area (as deter-
mined by the Secretary) for home mortgage
loans not guaranteed or insured by any agency
or instrumentality of the Federal Government;
‘‘(C) involve a principal obligation not
exceeding—
‘‘(i) 97.75 percent of the appraised
value of the property as of the date the
loan is accepted for guarantee (or 98.75
percent if the value of the property is
$50,000 or less); or
‘‘(ii) the amount approved by the Sec-
retary under this section; and
125
‘‘(D) involve a payment on account of the
property—
‘‘(i) in cash or its equivalent; or
‘‘(ii) through the value of any im-
provements to the property made through
the skilled or unskilled labor of the bor-
rower, as the Secretary shall provide.
‘‘(d) CERTIFICATE OF GUARANTEE.—
‘‘(1) APPROVAL PROCESS.—
‘‘(A) IN GENERAL.—Before the Secretary
approves any loan for guarantee under this sec-
tion, the lender shall submit the application for
the loan to the Secretary for examination.
‘‘(B) APPROVAL.—If the Secretary ap-
proves the application submitted under sub-
paragraph (A), the Secretary shall issue a cer-
tificate under this subsection as evidence of the
loan guarantee approved.
‘‘(2) STANDARD
FOR
APPROVAL.—The Sec-
retary may approve a loan for guarantee under this
section and issue a certificate under this subsection
only if the Secretary determines that there is a rea-
sonable prospect of repayment of the loan.
‘‘(3) EFFECT.—
126
‘‘(A) IN GENERAL.—A certificate of guar-
antee issued under this subsection by the Sec-
retary shall be conclusive evidence of the eligi-
bility of the loan for guarantee under this sec-
tion and the amount of that guarantee.
‘‘(B) EVIDENCE.—The evidence referred to
in subparagraph (A) shall be incontestable in
the hands of the bearer.
‘‘(C) FULL FAITH AND CREDIT.—The full
faith and credit of the United States is pledged
to the payment of all amounts agreed to be paid
by the Secretary as security for the obligations
made by the Secretary under this section.
‘‘(4) FRAUD AND MISREPRESENTATION.—This
subsection may not be construed—
‘‘(A) to preclude the Secretary from estab-
lishing defenses against the original lender
based on fraud or material misrepresentation;
or
‘‘(B) to bar the Secretary from estab-
lishing by regulations that are on the date of
issuance or disbursement, whichever is earlier,
partial defenses to the amount payable on the
guarantee.
‘‘(e) GUARANTEE FEE.—
127
‘‘(1) IN GENERAL.—The Secretary shall fix and
collect a guarantee fee for the guarantee of a loan
under this section, which may not exceed the amount
equal to 1 percent of the principal obligation of the
loan.
‘‘(2) PAYMENT.—The fee under this subsection
shall—
‘‘(A) be paid by the lender at time of
issuance of the guarantee; and
‘‘(B) be adequate, in the determination of
the Secretary, to cover expenses and probable
losses.
‘‘(3) DEPOSIT.—The Secretary shall deposit
any fees collected under this subsection in the Na-
tive Hawaiian Housing Loan Guarantee Fund estab-
lished under subsection (j).
‘‘(f) LIABILITY UNDER GUARANTEE.—The liability
under a guarantee provided under this section shall de-
crease or increase on a pro rata basis according to any
decrease or increase in the amount of the unpaid obliga-
tion under the provisions of the loan agreement involved.
‘‘(g) 
TRANSFER
AND
ASSUMPTION.—Notwith-
standing any other provision of law, any loan guaranteed
under this section, including the security given for the
loan, may be sold or assigned by the lender to any finan-
128
cial institution subject to examination and supervision by
an agency of the Federal Government or of any State or
the District of Columbia.
‘‘(h) DISQUALIFICATION
OF LENDERS
AND CIVIL
MONEY PENALTIES.—
‘‘(1) IN GENERAL.—
‘‘(A) GROUNDS
FOR
ACTION.—The Sec-
retary may take action under subparagraph (B)
if the Secretary determines that any lender or
holder of a guarantee certificate under sub-
section (c)—
‘‘(i) has failed—
‘‘(I) to maintain adequate ac-
counting records;
‘‘(II) to service adequately loans
guaranteed under this section; or
‘‘(III) to exercise proper credit or
underwriting judgment; or
‘‘(ii) has engaged in practices other-
wise detrimental to the interest of a bor-
rower or the United States.
‘‘(B) ACTIONS.—Upon a determination by
the Secretary that a holder of a guarantee cer-
tificate under subsection (c) has failed to carry
out an activity described in subparagraph (A)(i)
129
or has engaged in practices described in sub-
paragraph (A)(ii), the Secretary may—
‘‘(i) refuse, either temporarily or per-
manently, to guarantee any further loans
made by such lender or holder;
‘‘(ii) bar such lender or holder from
acquiring 
additional 
loans 
guaranteed
under this section; and
‘‘(iii) require that such lender or hold-
er assume not less than 10 percent of any
loss on further loans made or held by the
lender or holder that are guaranteed under
this section.
‘‘(2) CIVIL
MONEY
PENALTIES
FOR
INTEN-
TIONAL VIOLATIONS.—
‘‘(A) IN
GENERAL.—The Secretary may
impose a civil monetary penalty on a lender or
holder of a guarantee certificate under sub-
section (d) if the Secretary determines that the
holder or lender has intentionally failed—
‘‘(i) to maintain adequate accounting
records;
‘‘(ii) to adequately service loans guar-
anteed under this section; or
130
‘‘(iii) to exercise proper credit or un-
derwriting judgment.
‘‘(B) PENALTIES.—A civil monetary pen-
alty imposed under this paragraph shall be im-
posed in the manner and be in an amount pro-
vided under section 536 of the National Hous-
ing Act (12 U.S.C.A. 1735f–1) with respect to
mortgagees and lenders under that Act.
‘‘(3) PAYMENT
ON
LOANS
MADE
IN
GOOD
FAITH.—Notwithstanding paragraphs (1) and (2), if
a loan was made in good faith, the Secretary may
not refuse to pay a lender or holder of a valid guar-
antee on that loan, without regard to whether the
lender or holder is barred under this subsection.
‘‘(i) PAYMENT UNDER GUARANTEE.—
‘‘(1) LENDER OPTIONS.—
‘‘(A) IN GENERAL.—
‘‘(i) NOTIFICATION.—If a borrower on
a loan guaranteed under this section de-
faults on the loan, the holder of the guar-
antee certificate shall provide written no-
tice of the default to the Secretary.
‘‘(ii) PAYMENT.—Upon providing the
notice required under clause (i), the holder
of the guarantee certificate shall be enti-
131
tled to payment under the guarantee (sub-
ject to the provisions of this section) and
may proceed to obtain payment in one of
the following manners:
‘‘(I) FORECLOSURE.—
‘‘(aa) IN
GENERAL.—The
holder of the certificate may ini-
tiate 
foreclosure 
proceedings
(after providing written notice of
that action to the Secretary).
‘‘(bb) PAYMENT.—Upon a
final order by the court author-
izing foreclosure and submission
to the Secretary of a claim for
payment under the guarantee,
the Secretary shall pay to the
holder of the certificate the pro
rata portion of the amount guar-
anteed (as determined pursuant
to subsection (f)) plus reasonable
fees and expenses as approved by
the Secretary.
‘‘(cc) 
SUBROGATION.—The
rights of the Secretary shall be
subrogated to the rights of the
132
holder of the guarantee. The
holder shall assign the obligation
and security to the Secretary.
‘‘(II) NO FORECLOSURE.—
‘‘(aa) IN
GENERAL.—With-
out seeking foreclosure (or in any
case in which a foreclosure pro-
ceeding initiated under clause (i)
continues for a period in excess
of 1 year), the holder of the
guarantee may submit to the
Secretary a request to assign the
obligation and security interest to
the Secretary in return for pay-
ment of the claim under the
guarantee. The Secretary may
accept assignment of the loan if
the Secretary determines that the
assignment is in the best interest
of the United States.
‘‘(bb) PAYMENT.—Upon as-
signment, the Secretary shall pay
to the holder of the guarantee
the pro rata portion of the
133
amount guaranteed (as deter-
mined under subsection (f)).
‘‘(cc) 
SUBROGATION.—The
rights of the Secretary shall be
subrogated to the rights of the
holder of the guarantee. The
holder shall assign the obligation
and security to the Secretary.
‘‘(B) REQUIREMENTS.—Before any pay-
ment under a guarantee is made under sub-
paragraph (A), the holder of the guarantee
shall exhaust all reasonable possibilities of col-
lection. Upon payment, in whole or in part, to
the holder, the note or judgment evidencing the
debt shall be assigned to the United States and
the holder shall have no further claim against
the borrower or the United States. The Sec-
retary shall then take such action to collect as
the Secretary determines to be appropriate.
‘‘(2) LIMITATIONS ON LIQUIDATION.—
‘‘(A) IN GENERAL.—If a borrower defaults
on a loan guaranteed under this section that in-
volves a security interest in restricted Hawaiian
Home Land property, the mortgagee or the
Secretary shall only pursue liquidation after of-
134
fering to transfer the account to another eligi-
ble Hawaiian family or the Department of Ha-
waiian Home Lands.
‘‘(B) LIMITATION.—If, after action is
taken under subparagraph (A), the mortgagee
or the Secretary subsequently proceeds to liq-
uidate the account, the mortgagee or the Sec-
retary shall not sell, transfer, or otherwise dis-
pose of or alienate the property described in
subparagraph (A) except to another eligible Ha-
waiian family or to the Department of Hawai-
ian Home Lands.
‘‘(j) 
HAWAIIAN
HOUSING
LOAN
GUARANTEE
FUND.—
‘‘(1) ESTABLISHMENT.—There is established in
the Treasury of the United States the Hawaiian
Housing Loan Guarantee Fund for the purpose of
providing loan guarantees under this section.
‘‘(2) CREDITS.—The Guarantee Fund shall be
credited with—
‘‘(A) any amount, claims, notes, mort-
gages, contracts, and property acquired by the
Secretary under this section, and any collections
and proceeds therefrom;
135
‘‘(B) any amounts appropriated pursuant
to paragraph (7);
‘‘(C) any guarantee fees collected under
subsection (d); and
‘‘(D) any interest or earnings on amounts
invested under paragraph (4).
‘‘(3) USE.—Amounts in the Guarantee Fund
shall be available, to the extent provided in appro-
priations Acts, for—
‘‘(A) fulfilling any obligations of the Sec-
retary with respect to loans guaranteed under
this section, including the costs (as that term is
defined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)) of such
loans;
‘‘(B) paying taxes, insurance, prior liens,
expenses necessary to make fiscal adjustment in
connection with the application and transmittal
of collections, and other expenses and advances
to protect the Secretary for loans which are
guaranteed under this section or held by the
Secretary;
‘‘(C) acquiring such security property at
foreclosure sales or otherwise;
136
‘‘(D) paying administrative expenses in
connection with this section; and
‘‘(E) reasonable and necessary costs of re-
habilitation and repair to properties that the
Secretary holds or owns pursuant to this sec-
tion.
‘‘(4) INVESTMENT.—Any amounts in the Guar-
antee Fund determined by the Secretary to be in ex-
cess of amounts currently required at the time of the
determination to carry out this section may be in-
vested in obligations of the United States.
‘‘(5) LIMITATION ON COMMITMENTS TO GUAR-
ANTEE LOANS AND MORTGAGES.—
‘‘(A) 
REQUIREMENT
OF
APPROPRIA-
TIONS.—The authority of the Secretary to enter
into commitments to guarantee loans under this
section shall be effective for any fiscal year to
the extent, or in such amounts as are, or have
been, provided in appropriations Acts, without
regard to the fiscal year for which such
amounts were appropriated.
‘‘(B) LIMITATIONS ON COSTS OF GUARAN-
TEES.—The authority of the Secretary to enter
into commitments to guarantee loans under this
section shall be effective for any fiscal year only
137
to the extent that amounts in the Guarantee
Fund are or have been made available in appro-
priations Acts to cover the costs (as that term
is defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of such
loan guarantees for such fiscal year. Any
amounts appropriated pursuant to this subpara-
graph shall remain available until expended.
‘‘(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 for each of fiscal
years 2001, 2002, 2003, 2004, and 2005 with
an aggregate outstanding principal amount not
exceeding $100,000,000 for each such fiscal
year.
‘‘(6) LIABILITIES.—All liabilities and obliga-
tions of the assets credited to the Guarantee Fund
under paragraph (2)(A) shall be liabilities and obli-
gations of the Guarantee Fund.
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the
Guarantee Fund to carry out this section such sums
138
as may be necessary for each of fiscal years 2001,
2002, 2003, 2004, and 2005.
‘‘(k) REQUIREMENTS FOR STANDARD HOUSING.—
‘‘(1) IN
GENERAL.—The Secretary shall, by
regulation, establish housing safety and quality
standards to be applied for use under this section.
‘‘(2) STANDARDS.—The standards referred to
in paragraph (1) shall—
‘‘(A) provide sufficient flexibility to permit
the use of various designs and materials in
housing acquired with loans guaranteed under
this section; and
‘‘(B) require each dwelling unit in any
housing acquired in the manner described in
subparagraph (A) to—
‘‘(i) be decent, safe, sanitary, and
modest in size and design;
‘‘(ii) conform with applicable general
construction standards for the region in
which the housing is located;
‘‘(iii) contain a plumbing system
that—
‘‘(I) uses a properly installed sys-
tem of piping;
139
‘‘(II) includes a kitchen sink and
a partitional bathroom with lavatory,
toilet, and bath or shower; and
‘‘(III) uses water supply, plumb-
ing, and sewage disposal systems that
conform to any minimum standards
established by the applicable county or
State;
‘‘(iv) contain an electrical system
using wiring and equipment properly in-
stalled to safely supply electrical energy for
adequate lighting and for operation of ap-
pliances that conforms to any appropriate
county, State, or national code;
‘‘(v) be not less than the size provided
under the applicable locally adopted stand-
ards for size of dwelling units, except that
the Secretary, upon request of the Depart-
ment of Hawaiian Home Lands may waive
the size requirements under this para-
graph; and
‘‘(vi) conform with the energy per-
formance requirements for new construc-
tion established by the Secretary under
section 526(a) of the National Housing
140
Act (12 U.S.C.A. 1735f–4), unless the Sec-
retary determines that the requirements
are not applicable.
‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—
To the extent that the requirements of title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of the
Fair Housing Act (42 U.S.C.A. 3601 et seq.) apply to a
guarantee provided under this subsection, nothing in the
requirements concerning discrimination on the basis of
race shall be construed to prevent the provision of the
guarantee to an eligible entity on the basis that the entity
serves Native Hawaiian families or is a Native Hawaiian
family.’’.
TITLE VI—MANUFACTURED
HOUSING IMPROVEMENT
SEC. 601. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Manufactured Housing Improvement Act of 2000’’.
(b) REFERENCES.—Whenever in this title an amend-
ment is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to that section or other provision of
the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
141
SEC. 602. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as
follows:
‘‘SEC. 602. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) manufactured housing plays a vital role in
meeting the housing needs of the Nation; and
‘‘(2) manufactured homes provide a significant
resource for affordable homeownership and rental
housing accessible to all Americans.
‘‘(b) PURPOSES.—The purposes of this title are—
‘‘(1) to protect the quality, durability, safety,
and affordability of manufactured homes;
‘‘(2) to facilitate the availability of affordable
manufactured homes and to increase homeownership
for all Americans;
‘‘(3) to provide for the establishment of prac-
tical, uniform, and, to the extent possible, perform-
ance-based Federal construction standards for man-
ufactured homes;
‘‘(4) to encourage innovative and cost-effective
construction techniques for manufactured homes;
‘‘(5) to protect residents of manufactured
homes with respect to personal injuries and the
amount of insurance costs and property damages in
142
manufactured housing, consistent with the other
purposes of this section;
‘‘(6) to establish a balanced consensus process
for the development, revision, and interpretation of
Federal construction and safety standards for manu-
factured homes and related regulations for the en-
forcement of such standards;
‘‘(7) to ensure uniform and effective enforce-
ment of Federal construction and safety standards
for manufactured homes; and
‘‘(8) to ensure that the public interest in, and
need for, affordable manufactured housing is duly
considered in all determinations relating to the Fed-
eral standards and their enforcement.’’.
SEC. 603. DEFINITIONS.
(a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is
amended—
(1) in paragraph (2), by striking ‘‘dealer’’ and
inserting ‘‘retailer’’;
(2) in paragraph (12), by striking ‘‘and’’ at the
end;
(3) in paragraph (13), by striking the period at
the end and inserting a semicolon; and
(4) by adding at the end the following:
143
‘‘(14) ‘administering organization’ means the
recognized, voluntary, private sector, consensus
standards body with specific experience in developing
model residential building codes and standards in-
volving all disciplines regarding construction and
safety that administers the consensus standards
through a development process;
‘‘(15) ‘consensus committee’ means the com-
mittee established under section 604(a)(3);
‘‘(16) ‘consensus standards development proc-
ess’ means the process by which additions, revisions,
and interpretations to the Federal manufactured
home construction and safety standards and enforce-
ment regulations shall be developed and rec-
ommended to the Secretary by the consensus com-
mittee;
‘‘(17) ‘primary inspection agency’ means a
State agency or private organization that has been
approved by the Secretary to act as a design ap-
proval primary inspection agency or a production in-
spection primary inspection agency, or both;
‘‘(18) ‘design approval primary inspection agen-
cy’ means a State agency or private organization
that has been approved by the Secretary to evaluate
144
and either approve or disapprove manufactured
home designs and quality control procedures;
‘‘(19) ‘installation standards’ means reasonable
specifications for the installation of a manufactured
home, at the place of occupancy, to ensure proper
siting, the joining of all sections of the home, and
the installation of stabilization, support, or anchor-
ing systems;
‘‘(20) ‘monitoring’ means the process of peri-
odic review of the primary inspection agencies, by
the Secretary or by a State agency under an ap-
proved State plan pursuant to section 623, in ac-
cordance with regulations promulgated under this
title, giving due consideration to the recommenda-
tions of the consensus committee under section
604(b), which process shall be for the purpose of en-
suring that the primary inspection agencies are dis-
charging their duties under this title; and
‘‘(21) ‘production inspection primary inspection
agency’ means a State agency or private organiza-
tion that has been approved by the Secretary to
evaluate the ability of manufactured home manufac-
turing plants to comply with approved quality con-
trol procedures and with the Federal manufactured
home construction and safety standards promulgated
145
hereunder, including the inspection of homes in the
plant.’’.
(b) CONFORMING
AMENDMENTS.—The National
Manufactured Housing Construction and Safety Stand-
ards Act of 1974 (42 U.S.C. 5401 et seq.) is amended—
(1) in section 613 (42 U.S.C. 5412), by striking
‘‘dealer’’ each place it appears and inserting ‘‘re-
tailer’’;
(2) in section 614(f) (42 U.S.C. 5413(f)), by
striking ‘‘dealer’’ each place it appears and inserting
‘‘retailer’’;
(3) in section 615 (42 U.S.C. 5414)—
(A) in subsection (b)(1), by striking ‘‘deal-
er’’ and inserting ‘‘retailer’’;
(B) in subsection (b)(3), by striking ‘‘deal-
er or dealers’’ and inserting ‘‘retailer or retail-
ers’’; and
(C) in subsections (d) and (f), by striking
‘‘dealers’’ each place it appears and inserting
‘‘retailers’’;
(4) in section 616 (42 U.S.C. 5415), by striking
‘‘dealer’’ and inserting ‘‘retailer’’; and
(5) in section 623(c)(9), by striking ‘‘dealers’’
and inserting ‘‘retailers’’.
146
SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUC-
TION AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5403) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) ESTABLISHMENT.—
‘‘(1) AUTHORITY.—The Secretary shall estab-
lish, by order, appropriate Federal manufactured
home construction and safety standards, each of
which—
‘‘(A) shall—
‘‘(i) be reasonable and practical;
‘‘(ii) meet high standards of protec-
tion consistent with the purposes of this
title; and
‘‘(iii) be performance-based and objec-
tively stated, unless clearly inappropriate;
and
‘‘(B) except as provided in subsection (b),
shall be established in accordance with the con-
sensus standards development process.
‘‘(2) CONSENSUS
STANDARDS
AND
REGU-
LATORY DEVELOPMENT PROCESS.—
‘‘(A) INITIAL
AGREEMENT.—Not later
than 180 days after the date of the enactment
of the Manufactured Housing Improvement Act
147
of 2000, the Secretary shall enter into a con-
tract with an administering organization. The
contractual agreement shall—
‘‘(i) terminate on the date on which a
contract is entered into under subpara-
graph (B); and
‘‘(ii) require the administering organi-
zation to—
‘‘(I) recommend the initial mem-
bers of the consensus committee
under paragraph (3);
‘‘(II) administer the consensus
standards development process until
the termination of that agreement;
and
‘‘(III) administer the consensus
development and interpretation proc-
ess for procedural and enforcement
regulations and regulations specifying
the permissible scope and conduct of
monitoring until the termination of
that agreement.
‘‘(B) COMPETITIVELY
PROCURED
CON-
TRACT.—Upon the expiration of the 4-year pe-
riod beginning on the date on which all mem-
148
bers of the consensus committee are appointed
under paragraph (3), the Secretary shall, using
competitive procedures (as such term is defined
in section 4 of the Office of Federal Procure-
ment Policy Act), enter into a competitively
awarded contract with an administering organi-
zation. The administering organization shall ad-
minister the consensus process for the develop-
ment and interpretation of the Federal stand-
ards, the procedural and enforcement regula-
tions, and regulations specifying the permissible
scope and conduct of monitoring, in accordance
with this title.
‘‘(C) 
PERFORMANCE
REVIEW.—The
Secretary—
‘‘(i) shall periodically review the per-
formance of the administering organiza-
tion; and
‘‘(ii) may replace the administering
organization with another qualified tech-
nical or building code organization, pursu-
ant to competitive procedures, if the Sec-
retary determines in writing that the ad-
ministering organization is not fulfilling
the terms of the agreement or contract to
149
which the administering organization is
subject or upon the expiration of the
agreement or contract.
‘‘(3) CONSENSUS COMMITTEE.—
‘‘(A) PURPOSE.—There is established a
committee to be known as the ‘consensus com-
mittee’, which shall, in accordance with this
title—
‘‘(i) provide periodic recommendations
to the Secretary to adopt, revise, and inter-
pret the Federal manufactured housing
construction and safety standards in ac-
cordance with this subsection;
‘‘(ii) provide periodic recommenda-
tions to the Secretary to adopt, revise, and
interpret the procedural and enforcement
regulations, including regulations speci-
fying the permissible scope and conduct of
monitoring in accordance with subsection
(b);
‘‘(iii) be organized and carry out its
business in a manner that guarantees a
fair opportunity for the expression and
consideration of various positions and for
public participation; and
150
‘‘(iv) be deemed to be an advisory
committee not composed of Federal em-
ployees.
‘‘(B) MEMBERSHIP.—The consensus com-
mittee shall be composed of—
‘‘(i) 21 voting members appointed by
the Secretary, after consideration of the
recommendations of the administering or-
ganization, from among individuals who
are qualified by background and experience
to participate in the work of the consensus
committee; and
‘‘(ii) 1 nonvoting member appointed
by the Secretary to represent the Secretary
on the consensus committee.
‘‘(C) DISAPPROVAL.—The Secretary shall
state, in writing, the reasons for failing to ap-
point any individual recommended under para-
graph (2)(A)(ii)(I).
‘‘(D) SELECTION
PROCEDURES
AND
RE-
QUIREMENTS.—Each member of the consensus
committee shall be appointed in accordance
with selection procedures, which shall be based
on the procedures for consensus committees
promulgated by the American National Stand-
151
ards Institute (or successor organization), ex-
cept that the American National Standards In-
stitute interest categories shall be modified for
purposes of this paragraph to ensure equal rep-
resentation on the consensus committee of the
following interest categories:
‘‘(i) PRODUCERS.—Seven producers or
retailers of manufactured housing.
‘‘(ii) USERS.—Seven persons rep-
resenting consumer interests, such as con-
sumer organizations, recognized consumer
leaders, and owners who are residents of
manufactured homes.
‘‘(iii) GENERAL INTEREST AND PUB-
LIC
OFFICIALS.—Seven general interest
and public official members.
‘‘(E) BALANCING OF INTERESTS.—
‘‘(i) 
IN
GENERAL.—In 
order 
to
achieve a proper balance of interests on
the consensus committee, the Secretary, in
appointing the members of the consensus
committee—
‘‘(I) shall ensure that all directly
and materially affected interests have
the opportunity for fair and equitable
152
participation without dominance by
any single interest; and
‘‘(II) may reject the appointment
of any 1 or more individuals in order
to ensure that there is not dominance
by any single interest.
‘‘(ii) DOMINANCE DEFINED.—In this
subparagraph, the term ‘dominance’ means
a position or exercise of dominant author-
ity, leadership, or influence by reason of
superior leverage, strength, or representa-
tion.
‘‘(F) ADDITIONAL QUALIFICATIONS.—
‘‘(i) FINANCIAL INDEPENDENCE.—No
individual appointed under subparagraph
(D)(ii) shall have, and 3 of the individuals
appointed under subparagraph (D)(iii)
shall not have—
‘‘(I) a significant financial inter-
est in any segment of the manufac-
tured housing industry; or
‘‘(II) a significant relationship to
any person engaged in the manufac-
tured housing industry.
153
‘‘(ii) POST-EMPLOYMENT BAN.—Each
individual described in clause (i) shall be
subject to a ban disallowing compensation
from the manufactured housing industry
during the period of, and during the 1-year
following, the membership of the individual
on the consensus committee.
‘‘(G) MEETINGS.—
‘‘(i) NOTICE; OPEN TO PUBLIC.—The
consensus committee shall provide advance
notice of each meeting of the consensus
committee to the Secretary and cause to be
published in the Federal Register advance
notice of each such meeting. All meetings
of the consensus committee shall be open
to the public.
‘‘(ii) REIMBURSEMENT.—Members of
the consensus committee in attendance at
meetings of the consensus committee shall
be reimbursed for their actual expenses as
authorized by section 5703 of title 5,
United States Code, for persons employed
intermittently in Government service.
154
‘‘(H) ADMINISTRATION.—The consensus
committee and the administering organization
shall—
‘‘(i) operate in conformance with the
procedures established by the American
National Standards Institute for the devel-
opment and coordination of American Na-
tional Standards; and
‘‘(ii) apply to the American National
Standards Institute and take such other
actions as may be necessary to obtain ac-
creditation from the American National
Standards Institute.
‘‘(I) STAFF AND TECHNICAL SUPPORT.—
The administering organization shall, upon the
request of the consensus committee—
‘‘(i) provide reasonable staff resources
to the consensus committee; and
‘‘(ii) furnish technical support in a
timely manner to any of the interest cat-
egories described in subparagraph (D) rep-
resented on the consensus committee, if—
‘‘(I) the support is necessary to
ensure the informed participation of
155
the consensus committee members;
and
‘‘(II) the costs of providing the
support are reasonable.
‘‘(J) DATE OF INITIAL APPOINTMENTS.—
The initial appointments of all of the members
of the consensus committee shall be completed
not later than 90 days after the date on which
a contractual agreement under paragraph
(2)(A) is entered into with the administering
organization.
‘‘(4) REVISIONS OF STANDARDS.—
‘‘(A) IN GENERAL.—Beginning on the date
on which all members of the consensus com-
mittee are appointed under paragraph (3), the
consensus committee shall, not less than once
during each 2-year period—
‘‘(i) consider revisions to the Federal
manufactured home construction and safe-
ty standards; and
‘‘(ii) submit proposed revised stand-
ards, if approved in a vote of the consensus
committee by 2⁄3 of the members, to the
Secretary in the form of a proposed rule,
including an economic analysis.
156
‘‘(B) PUBLICATION OF PROPOSED REVISED
STANDARDS.—
‘‘(i) PUBLICATION BY SECRETARY.—
The consensus committee shall provide a
proposed revised standard under subpara-
graph (A)(ii) to the Secretary who shall,
not later than 30 days after receipt, cause
such proposed revised standard to be pub-
lished in the Federal Register for notice
and comment in accordance with section
553 of title 5, United States Code. Unless
clause (ii) applies, the Secretary shall pro-
vide an opportunity for public comment on
such proposed revised standard in accord-
ance with such section 553 and any such
comments shall be submitted directly to
the consensus committee, without delay.
‘‘(ii) PUBLICATION
OF
REJECTED
PROPOSED
REVISED
STANDARDS.—If the
Secretary rejects the proposed revised
standard, the Secretary shall cause to be
published in the Federal Register the re-
jected proposed revised standard, the rea-
sons for rejection, and any recommended
modifications set forth.
157
‘‘(C) PRESENTATION
OF
PUBLIC
COM-
MENTS; PUBLICATION OF RECOMMENDED REVI-
SIONS.—
‘‘(i) 
PRESENTATION.—Any 
public
comments, views, and objections to a pro-
posed revised standard published under
subparagraph (B) shall be presented by
the Secretary to the consensus committee
upon their receipt and in the manner re-
ceived, in accordance with procedures es-
tablished by the American National Stand-
ards Institute.
‘‘(ii) PUBLICATION
BY
THE
SEC-
RETARY.—The consensus committee shall
provide to the Secretary any revision pro-
posed by the consensus committee, which
the Secretary shall, not later than 30 cal-
endar days after receipt, cause to be pub-
lished in the Federal Register a notice of
the recommended revisions of the con-
sensus committee to the standards, a no-
tice of the submission of the recommended
revisions to the Secretary, and a descrip-
tion of the circumstances under which the
158
proposed revised standards could become
effective.
‘‘(iii) PUBLICATION
OF
REJECTED
PROPOSED
REVISED
STANDARDS.—If the
Secretary rejects the proposed revised
standard, the Secretary shall cause to be
published in the Federal Register the re-
jected proposed revised standard, the rea-
sons for rejection, and any recommended
modifications set forth.
‘‘(5) REVIEW BY THE SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary shall
either adopt, modify, or reject a standard, as
submitted by the consensus committee under
paragraph (4)(A).
‘‘(B) TIMING.—Not later than 12 months
after the date on which a standard is submitted
to the Secretary by the consensus committee,
the Secretary shall take action regarding such
standard under subparagraph (C).
‘‘(C) PROCEDURES.—If the Secretary—
‘‘(i) adopts a standard recommended
by the consensus committee, the Secretary
shall—
159
‘‘(I) issue a final order without
further rulemaking; and
‘‘(II) cause the final order to be
published in the Federal Register;
‘‘(ii) determines that any standard
should be rejected, the Secretary shall—
‘‘(I) reject the standard; and
‘‘(II) cause to be published in the
Federal Register a notice to that ef-
fect, together with the reason or rea-
sons for rejecting the proposed stand-
ard; or
‘‘(iii) determines that a standard rec-
ommended by the consensus committee
should be modified, the Secretary shall—
‘‘(I) cause to be published in the
Federal Register the proposed modi-
fied standard, together with an expla-
nation of the reason or reasons for the
determination of the Secretary; and
‘‘(II) provide an opportunity for
public comment in accordance with
section 553 of title 5, United States
Code.
160
‘‘(D) FINAL ORDER.—Any final standard
under this paragraph shall become effective
pursuant to subsection (c).
‘‘(6) FAILURE TO ACT.—If the Secretary fails
to take final action under paragraph (5) and to
cause notice of the action to be published in the
Federal Register before the expiration of the 12-
month period beginning on the date on which the
proposed revised standard is submitted to the Sec-
retary under paragraph (4)(A)—
‘‘(A) the Secretary shall appear in person
before the appropriate housing and appropria-
tions subcommittees and committees of the
House of Representatives and the Senate (re-
ferred to in this paragraph as the ‘committees’)
on a date or dates to be specified by the com-
mittees, but in no event later than 30 days
after the expiration of that 12-month period,
and shall state before the committees the rea-
sons for failing to take final action as required
under paragraph (5); and
‘‘(B) if the Secretary does not appear in
person as required under subparagraph (A), the
Secretary shall thereafter, and until such time
as the Secretary does appear as required under
161
subparagraph (A), be prohibited from expend-
ing any funds collected under authority of this
title in an amount greater than that collected
and expended in the fiscal year immediately
preceding the date of the enactment of the
Manufactured Housing Improvement Act of
2000, indexed for inflation as determined by
the Congressional Budget Office.
‘‘(b) OTHER ORDERS.—
‘‘(1) REGULATIONS.—The Secretary may issue
procedural and enforcement regulations and revi-
sions to existing regulations as necessary to imple-
ment the provisions of this title. The consensus com-
mittee may submit to the Secretary proposed proce-
dural and enforcement regulations and recommenda-
tions for the revision of such regulations.
‘‘(2) INTERPRETATIVE BULLETINS.—The Sec-
retary may issue interpretative bulletins to clarify
the meaning of any Federal manufactured home
construction and safety standard or procedural and
enforcement regulation. The consensus committee
may submit to the Secretary proposed interpretative
bulletins to clarify the meaning of any Federal man-
ufactured home construction and safety standard or
procedural and enforcement regulation.
162
‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be-
fore issuing a procedural or enforcement regulation
or an interpretative bulletin—
‘‘(A) the Secretary shall—
‘‘(i) submit the proposed procedural
or enforcement regulation or interpretative
bulletin to the consensus committee; and
‘‘(ii) provide the consensus committee
with a period of 120 days to submit writ-
ten comments to the Secretary on the pro-
posed procedural or enforcement regulation
or the interpretative bulletin; and
‘‘(B) if the Secretary rejects any signifi-
cant comment provided by the consensus com-
mittee under subparagraph (A), the Secretary
shall provide a written explanation of the rea-
sons for the rejection to the consensus com-
mittee; and
‘‘(C) following compliance with subpara-
graphs (A) and (B), the Secretary shall—
‘‘(i) cause the proposed regulation or
interpretative bulletin and the consensus
committee’s written comments, along with
the Secretary’s response thereto, to be
published in the Federal Register; and
220
‘‘(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,