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
Hawaii into the Union’’, approved March 18,
1959 (73 Stat. 4)—
(i) by ceding to the State of Hawaii
title to the public lands formerly held by
the United States, and mandating that
those lands be held in public trust, for the
betterment of the conditions of Native Ha-
waiians, as that term is defined in section
201 of the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108 et seq.); and
(ii) by transferring the United States
responsibility for the administration of Ha-
waiian Home Lands to the State of Ha-
waii, but retaining the authority to enforce
the trust, including the exclusive right of
the United States to consent to any actions
affecting the lands which comprise the cor-
pus of the trust and any amendments to
the Hawaiian Homes Commission Act,
1920 (42 Stat. 108 et seq.), enacted by the
legislature of the State of Hawaii affecting
the rights of beneficiaries under the Act;
(C) the authorization of mortgage loans in-
sured by the Federal Housing Administration
for the purchase, construction, or refinancing 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
purposes of this title, to maximize participation by the pri-
vate sector, including nonprofit organizations and for-
profit entities, in implementing a housing plan that has
been approved by the Secretary under section 803.
‘‘SEC. 803. HOUSING PLAN.
‘‘(a) PLAN SUBMISSION.—The Secretary shall—
‘‘(1) require the Director to submit a housing
plan under this section for each fiscal year; and
‘‘(2) provide for the review of each plan sub-
mitted under paragraph (1).
‘‘(b) FIVE-YEAR PLAN.—Each housing plan under
this section shall—
‘‘(1) be in a form prescribed by the Secretary;
and
‘‘(2) contain, with respect to the 5-year period
beginning with the fiscal year for which the plan is
submitted, the following information:
‘‘(A) MISSION
STATEMENT.—A general
statement of the mission of the Department of
Hawaiian Home Lands to serve the needs of
the low-income families to be served by the De-
partment.
‘‘(B) GOAL
AND
OBJECTIVES.—A state-
ment of the goals and objectives of the Depart-
ment of Hawaiian Home Lands to enable 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
and maintenance of housing assisted with grant amounts
under this title.
100
‘‘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 enactment of
the Manufactured Housing Improvement Act of
147
2000, the Secretary shall enter into a contract
with an administering organization. The con-
tractual 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.