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‘‘(b) ELIGIBLE CONSORTIA.—A consortium of units
of general local government described in this subsection
is a consortium that—
‘‘(1) is eligible under section 216(2) to be
deemed a unit of general local government for pur-
poses of this title;
‘‘(2) consists of multiple units of general local
government; and
‘‘(3) contains only units of general local govern-
ment that are geographically contiguous.
‘‘(c) MULTI-STATE REQUIREMENT.—In each fiscal
year in which grants are made under this section, not less
than one of the consortia that receives a grant shall be
a consortium described in subsection (b) that includes
units of general local government from two or more
States.’’.
SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES
AND MUTUAL HOUSING ASSOCIATIONS.
(a) CONGRESSIONAL FINDINGS.—Section 202(10) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721(10)) is amended by inserting ‘‘mutual
housing associations,’’ after ‘‘limited equity cooperatives,’’.
(b) DEFINITIONS.—Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704) is amended—
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(1) by redesignating paragraph (23) as para-
graph (22);
(2) by redesignating paragraph (24) (relating to
the definition of ‘‘insular area’’) as paragraph (23);
and
(3) by adding at the end the following new
paragraphs:
‘‘(26) The term ‘limited equity cooperative’
means a cooperative housing corporation which, in a
manner determined by the Secretary to be accept-
able, restricts income eligibility of purchasers of
membership shares of stock in the cooperative cor-
poration or the initial and resale price of such
shares, or both, so that the shares remain available
and affordable to low-income families.
‘‘(27) The term ‘mutual housing association’
means a private entity that—
‘‘(A) is organized under State law;
‘‘(B) is described in section 501(c) of the
Internal Revenue Code of 1986 and exempt
from taxation under section 501(a) of such
Code;
‘‘(C) owns, manages, and continuously de-
velops affordable housing by providing long-
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term housing for low- and moderate-income
families;
‘‘(D) provides that eligible families who
purchase membership interests in the associa-
tion shall have a right to residence in a dwelling
unit in the housing during the period that they
hold such membership interest; and
‘‘(E) provides for the residents of such
housing to participate in the ongoing manage-
ment of the housing.’’.
(c) ELIGIBILITY.—Section 215 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12745)
is amended—
(1) in subsection (b), by adding after and below
paragraph (4) the following:
‘‘Housing that is owned by a limited equity cooperative
or a mutual housing association may be considered by a
participating jurisdiction to be housing for homeownership
for purposes of this title to the extent that ownership or
membership in such a cooperative or association, respec-
tively, constitutes homeownership under State or local
laws.’’; and
(2) in subsection (a), by adding at the end the
following new paragraph:
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‘‘(6) LIMITED EQUITY COOPERATIVES AND MU-
TUAL
HOUSING
ASSOCIATIONS.—Housing that is
owned by a limited equity cooperative or a mutual
housing association may be considered by a partici-
pating jurisdiction to be rental housing for purposes
of this title to the extent that ownership or member-
ship in such a cooperative or association, respec-
tively, constitutes rental of a dwelling under State or
local laws.’’.
SEC. 503. ADMINISTRATIVE COSTS.
Section 212(c) of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12742(c)) is amended
by adding at the end the following new sentence: ‘‘A par-
ticipating jurisdiction may use amounts made available
under this subsection for a fiscal year for administrative
and planning costs by amortizing the costs of administra-
tion and planning activities under this subtitle over the
entire duration of such activities.’’.
SEC. 504. LEVERAGING AFFORDABLE HOUSING INVEST-
MENT THROUGH LOCAL LOAN POOLS.
(a) ELIGIBLE INVESTMENTS.—Section 212(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(b)) is amended by inserting after ‘‘interest
subsidies’’ the following: ‘‘, advances to provide reserves
for loan pools or to provide partial loan guarantees,’’.
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(b) TIMELY INVESTMENT OF TRUST FUNDS.—Sec-
tion 218(e) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12748) is amended to read as
follows:
‘‘(e) INVESTMENT WITHIN 15 DAYS.—
‘‘(1) IN GENERAL.—The participating jurisdic-
tion shall, not later than 15 days after funds are
drawn from the jurisdiction’s HOME Investment
Trust Fund, invest such funds, together with any in-
terest earned thereon, in the affordable housing for
which the funds were withdrawn.
‘‘(2) LOAN POOLS.—In the case of a partici-
pating jurisdiction that withdraws Trust Fund
amounts for investment in the form of an advance
for reserves or partial loan guarantees under a pro-
gram providing such credit enhancement for loans
for affordable housing, the amounts shall be consid-
ered to be invested for purposes of paragraph (1)
upon the completion of both of the following actions:
‘‘(A) Control of the amounts is transferred
to the program.
‘‘(B) The jurisdiction and the entity oper-
ating the program enter into a written agree-
ment that—
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‘‘(i) provides that such funds may be
used only in connection with such program;
‘‘(ii) defines the terms and conditions
of the loan pool reserve or partial loan
guarantees; and
‘‘(iii) provides that such entity shall
ensure that amounts from non-Federal
sources have been contributed, or are com-
mitted for contribution, to the pool avail-
able for loans for affordable housing that
will be backed by such reserves or loan
guarantees in an amount equal to 10 times
the amount invested from Trust Fund
amounts.’’.
(c) EXPIRATION OF RIGHT TO WITHDRAW FUNDS.—
Section 218(g) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12748(g)) is amended to
read as follows:
‘‘(g) EXPIRATION OF RIGHT TO DRAW FUNDS.—
‘‘(1) IN
GENERAL.—If any funds becoming
available to a participating jurisdiction under this
title are not placed under binding commitment to af-
fordable housing within 24 months after the last day
of the month in which such funds are deposited in
the jurisdiction’s HOME Investment Trust Fund,
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the jurisdiction’s right to draw such funds from the
HOME Investment Trust Fund shall expire. The
Secretary shall reduce the line of credit in the par-
ticipating jurisdiction’s HOME Investment Trust
Fund by the expiring amount and shall reallocate
the funds by formula in accordance with section
217(d).
‘‘(2) LOAN POOLS.—In the case of a partici-
pating jurisdiction that withdraws Trust Fund
amounts for investment in the manner provided
under subsection (e)(2), the amounts shall be consid-
ered to be placed under binding commitment to af-
fordable housing for purposes of paragraph (1) of
this subsection at the time that the amounts are ob-
ligated for use under, and are subject to, a written
agreement described in subsection (e)(2)(B).’’.
(d) TREATMENT OF MIXED INCOME LOAN POOLS AS
AFFORDABLE HOUSING.—
(1) IN GENERAL.—Section 215 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745) is amended by adding at the end the
following new subsection:
‘‘(c) LOAN POOLS.—Notwithstanding subsections (a)
and (b), housing financed using amounts invested as pro-
vided in section 218(e)(2) shall qualify as affordable hous-
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ing only if the housing complies with the following require-
ments:
‘‘(1) In the case of housing that is for
homeownership—
‘‘(A) of the units financed with amounts so
invested—
‘‘(i) not less than 75 percent are prin-
cipal residences of owners whose families
qualify as low-income families—
‘‘(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
‘‘(II) in the case of a lease-pur-
chase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
‘‘(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed;
‘‘(ii) all are principal residences of
owners whose families qualify as moderate-
income families—
‘‘(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
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‘‘(II) in the case of a lease-pur-
chase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
‘‘(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed; and
‘‘(iii) all comply with paragraphs (3)
and (4) of subsection (b), except that para-
graph (3) shall be applied for purposes of
this clause by substituting ‘subsection
(c)(2)(B)’ and ‘low- and moderate-income
homebuyers’ for ‘paragraph (2)’ and ‘low-
income homebuyers’, respectively; and
‘‘(B) units made available for purchase
only by families who qualify as low-income fam-
ilies shall have an initial purchase price that
complies with the requirements of subsection
(b)(1).
‘‘(2) In the case of housing that is for rental,
the housing—
‘‘(A) complies with subparagraphs (D)
through (F) of subsection (a)(1);
‘‘(B)(i) has not less than 75 percent of the
units occupied by households that qualify as
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low-income families and is occupied only by
households that qualify as moderate-income
families; or
‘‘(ii) temporarily fails to comply with
clause (i) only because of increases in the in-
comes of existing tenants and actions satisfac-
tory to the Secretary are being taken to ensure
that all vacancies in the housing are being filled
in accordance with clause (i) until such non-
compliance is corrected; and
‘‘(C) bears rents, in the case of units made
available for occupancy only by households that
qualify as low-income families, that comply with
the requirements of subsection (a)(1)(A).
Paragraphs (4) and (5) of subsection (a) shall apply
to housing that is subject to this subsection.’’.
(2) DEFINITION.—Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12704), as amended by section 502 of this
Act, is further amended by adding at the end the
following new paragraph:
‘‘(28) The term ‘moderate income families’
means families whose incomes do not exceed the me-
dian income for the area, as determined by the Sec-
retary with adjustments for smaller and larger fami-
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lies, except that the Secretary may establish income
ceilings higher or lower than the median income for
the area on the basis of the Secretary’s findings that
such variations are necessary because of prevailing
levels of construction costs or fair market rents, or
unusually high or low family incomes.’’.
SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) ELIGIBLE ACTIVITIES.—Paragraph (2) of section
215(b) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)(2)) is amended to read
as follows:
‘‘(2) is the principal residence of an owner
who—
‘‘(A) is a member of a family that qualifies
as a low-income family—
‘‘(i) in the case of a contract to pur-
chase existing housing, at the time of pur-
chase;
‘‘(ii) in the case of a lease-purchase
agreement for existing housing or for hous-
ing to be constructed, at the time the
agreement is signed; or
‘‘(iii) in the case of a contract to pur-
chase housing to be constructed, at the
time the contract is signed; or
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‘‘(B)(i) is a uniformed employee (which
shall include policemen, firemen, and sanitation
and other maintenance workers) or a teacher
who is an employee, of the participating juris-
diction (or an agency or school district serving
such jurisdiction) that is investing funds made
available under this subtitle to support home-
ownership of the residence; and
‘‘(ii) is a member of a family whose in-
come, at the time referred to in clause (i), (ii),
or (iii) of subparagraph (A), as appropriate,
and as determined by the Secretary with ad-
justments for smaller and larger families, does
not exceed 115 percent of the median income of
the area, except that, with respect only to such
areas that the Secretary determines have high
housing costs, taking into consideration median
house prices and median family incomes for the
area, such income limitation shall be 150 per-
cent of the median income of the area, as deter-
mined by the Secretary with adjustments for
smaller and larger families;’’.
(b) INCOME TARGETING.—Section 214(2) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12744(2)) is amended by inserting before the semi-
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colon the following: ‘‘or families described in section
215(b)(2)(B)’’.
(c) ELIGIBLE INVESTMENTS.—Section 212(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(b)) is amended by adding at the end the
following new sentence: ‘‘Notwithstanding the preceding
sentence, in the case of homeownership assistance for resi-
dences of owners described in section 215(b)(2)(B), funds
made available under this subtitle may only be invested
(A) to provide amounts for downpayments on mortgages,
(B) to pay reasonable closing costs normally associated
with the purchase of a residence, (C) to obtain pre- or
post-purchase counseling relating to the financial and
other obligations of homeownership, or (D) to subsidize
mortgage interest rates.’’.
SEC. 506. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMI-
LIES’’ TO RENT DWELLING UNITS IN AS-
SISTED PROJECTS.
Section 215(a) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12745(a)), as amend-
ed by the preceding provisions of this Act, is further
amended by adding at the end the following new para-
graph:
‘‘(7) WAIVER OF QUALIFYING RENT.—
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‘‘(A) IN
GENERAL.—For the purpose of
providing affordable housing appropriate for
families described in subparagraph (B), the
Secretary may, upon the application of the
project owner, waive the applicability of sub-
paragraph (A) of paragraph (1) with respect to
a dwelling unit if—
‘‘(i) the unit is occupied by such a
family, on whose behalf tenant-based as-
sistance is provided under section 8 of the
United States Housing Act of 1937 (42
U.S.C. 1437f);
‘‘(ii) the rent for the unit is not great-
er than the existing fair market rent for
comparable units in the area, as estab-
lished by the Secretary under section 8 of
the United States Housing Act of 1937;
and
‘‘(iii) the Secretary determines that
the waiver, together with waivers under
this paragraph for other dwelling units in
the project, will result in the use of
amounts described in clause (iii) in an ef-
fective manner that will improve the provi-
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sion of affordable housing for such fami-
lies.
‘‘(B) ELIGIBLE FAMILIES.—A family de-
scribed in this subparagraph is a family that
consists of at least one elderly person (who is
the head of household) and one or more of such
person’s grand children, great grandchildren,
great nieces, great nephews, or great great
grandchildren (as defined by the Secretary), but
does not include any parent of such grand-
children, great grandchildren, great nieces,
great nephews, or great great grandchildren.
Such term includes any such grandchildren,
great grandchildren, great nieces, great neph-
ews, or great great grandchildren who have
been legally adopted by such elderly person.’’.
SEC. 507. LOAN GUARANTEES.
Subtitle A of title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12741 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 227. LOAN GUARANTEES.
‘‘(a) AUTHORITY.—The Secretary may, upon such
terms and conditions as the Secretary may prescribe,
guarantee and make commitments to guarantee, only to
such extent or in such amounts as provided in appropria-
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tions Acts, the notes or other obligations issued by eligible
participating jurisdictions or by public agencies designated
by and acting on behalf of eligible participating jurisdic-
tions for purposes of financing (including credit enhance-
ments and debt service reserves) the acquisition, new con-
struction, reconstruction, or moderate or substantial reha-
bilitation of affordable housing (including real property ac-
quisition, site improvement, conversion, and demolition),
and other related expenses (including financing costs and
relocation expenses of any displaced persons, families,
businesses, or organizations). Housing funded under this
section shall meet the requirements of this subtitle.
‘‘(b) REQUIREMENTS.—Notes or other obligations
guaranteed under this section shall be in such form and
denominations, have such maturities, and be subject to
such conditions as may be prescribed by the Secretary.
The Secretary may not deny a guarantee under this sec-
tion on the basis of the proposed repayment period for
the note or other obligation, unless the period is more than
20 years or the Secretary determines that the period oth-
erwise causes the guarantee to constitute an unacceptable
financial risk.
‘‘(c) LIMITATION ON TOTAL NOTES AND OBLIGA-
TIONS.—The Secretary may not guarantee or make a com-
mitment to guarantee any note or other obligation if the
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total outstanding notes or obligations guaranteed under
this section on behalf of the participating jurisdiction
issuing the note or obligation (excluding any amount
defeased under a contract entered into under subsection
(e)(1)) would thereby exceed an amount equal to five times
the amount of the participating jurisdiction’s latest alloca-
tion under section 217.
‘‘(d) USE OF PROGRAM FUNDS.—Notwithstanding
any other provision of this subtitle, funds allocated to the
participating jurisdiction under this subtitle (including
program income derived therefrom) are authorized for use
in the payment of principal and interest due on the notes
or other obligations guaranteed pursuant to this section
and the payment of such servicing, underwriting, or other
issuance or collection charges as may be specified by the
Secretary.
‘‘(e) SECURITY.—To assure the full repayment of
notes or other obligations guaranteed under this section,
and payment of the issuance or collection charges specified
by the Secretary under subsection (d), and as a prior con-
dition for receiving such guarantees, the Secretary shall
require the participating jurisdiction (and its designated
public agency issuer, if any) to—
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‘‘(1) enter into a contract, in a form acceptable
to the Secretary, for repayment of such notes or
other obligations and the other specified charges;
‘‘(2) pledge as security for such repayment any
allocation for which the participating jurisdiction
may become eligible under this subtitle; and
‘‘(3) furnish, at the discretion of the Secretary,
such other security as may be deemed appropriate
by the Secretary in making such guarantees, which
may include increments in local tax receipts gen-
erated by the housing assisted under this section or
disposition proceeds from the sale of land or hous-
ing.
‘‘(f) REPAYMENT AUTHORITY.—The Secretary may,
notwithstanding any other provision of this subtitle or any
other Federal, State, or local law, apply allocations
pledged pursuant to subsection (e) to any repayments due
the United States as a result of such guarantees.
‘‘(g) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence
of the eligibility of the notes or other obligations for such
guarantee with respect to principal and interest, and the
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‘‘(C) the Secretary’s ownership rights, as
applicable, in notes, certificates or other obliga-
tions guaranteed under this section, or consti-
tuting the trust or pool against which trust cer-
tificates or other obligations guaranteed under
this section are offered.
‘‘(k) AGGREGATE LIMITATION.—The total amount of
outstanding obligations guaranteed on a cumulative basis
by the Secretary under this section shall not at any time
exceed $2,000,000,000.’’.
SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAM-
ILY RESIDENCES.
(a) AUTHORITY.—The Secretary of Housing and
Urban Development shall carry out a pilot program under
this section under which covered jurisdictions may use
amounts described in subsection (b) to make loans to eligi-
ble homebuyers for use as downpayments on 2- and 3-
family residences.
(b) COVERED ASSISTANCE.—Notwithstanding sec-
tion 105 of the Housing and Community Development Act
of 1974 (42 U.S.C. 5305) and section 212 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742), a covered jurisdiction may use amounts
provided to the jurisdiction pursuant to section 106(b) of
the Housing and Community Development Act of 1974
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(42 U.S.C. 5406(b)) and amounts in the HOME Invest-
ment Trust Fund for the jurisdiction for downpayment
loans meeting the requirements of subsection (d) to home-
buyers meeting the requirements of subsection (c), but
only to the extent such jurisdictions agree to comply with
the requirements of this section, as the Secretary may re-
quire.
(c) ELIGIBLE HOMEBUYERS.—A homebuyer meets
the requirements of this subsection only if the homebuyer
is an individual or family—
(1) whose income does not exceed 80 percent of
the median family income for the area within which
the residence to be purchased with the downpayment
loan under subsection (d) is located; except that the
Secretary may, pursuant to a request by a covered
jurisdiction demonstrating that the jurisdiction has
high housing costs (taking into consideration median
home prices and median family incomes for the
area), increase the percentage limitation under this
paragraph to not more than 110 percent of the me-
dian family income for the area;
(2) who has successfully completed a program
regarding the responsibilities and financial manage-
ment involved in homeownership and ownership of
rental property that is approved by the Secretary;
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(3) has a satisfactory credit history and record
as a tenant of rental housing; and
(4) who, if such individual or family has an in-
come that exceeds 80 percent of the median income
for the area, enters into a binding agreement to
comply with the requirements under subsection (e)
(relating to affordability of other dwelling units in
the residence).
(d) NO-INTEREST DOWNPAYMENT LOANS.—A loan
meets the requirements of this subsection only if—
(1) the principal obligation of the loan—
(A) may be used only for a downpayment
for acquisition of a 2- or 3-family residence and
for closing costs and other costs payable at the
time of closing, as the Secretary shall provide;
and
(B) does not exceed the amount that is
equal to the sum of: (i) 7 percent of the pur-
chase price of the residence; and (ii) such clos-
ing and other costs;
(2) the borrower under the loan is paying, for
acquisition of the residence, at least 3 percent of the
cost of acquisition of the residence in cash or its
equivalent;
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(3) the borrower under the loan will occupy a
dwelling unit in the residence purchased using the
loan as the principal residence of the borrower;
(4) the loan terms—
(A) do not require the borrower to be pre-
qualified for a loan that finances the remainder
of the purchase price of a residence described in
paragraph (1)(A); and
(B) provide that the proceeds of the loan
are available for use (as provided in paragraph
(1)) only during the 4-month period beginning
upon the making of the loan to the borrower
and that such proceeds shall revert to the cov-
ered jurisdiction upon the conclusion of such
period if the borrower has not entered into a
contract for purchase of a residence meeting
the requirements of such paragraph before such
conclusion, except that the Secretary shall pro-
vide that covered jurisdictions may extend such
4-month period under such circumstances as
the Secretary shall prescribe;
(5) the loan terms provide for repayment of the
principal obligation of the loan, without interest, at
such time as the covered jurisdiction may provide,
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except that the principal obligation shall be imme-
diately repayable at the time that the borrower—
(A) transfers or sells the borrower’s owner-
ship interest in such residence or ceases to use
the residence purchased with the loan proceeds
as his or her principal residence; or
(B) obtains a subsequent loan secured by
such residence or any equity of the borrower in
such residence, the proceeds of which are not
used to prepay or pay off the entire balance due
on the existing loan secured by such residence;
or
(6) the loan terms provide that, upon sale of
the residence purchased with the proceeds of the
loan, the borrower shall repay to the covered juris-
diction (together with the principal obligation of the
loan repayable pursuant to paragraph (5)(A)) an ad-
ditional amount that bears the same ratio to any in-
crease in the price of the residence upon such sale
(compared to the price paid for the residence upon
purchase using such loan) as the amount of the loan
bears to the purchase price paid for the residence in
the purchase using such loan; and
(7) the loan complies with such other require-
ments as the Secretary may prescribe.
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(e) AFFORDABILITY OF RENTAL UNITS.—Any dwell-
ing units in the residence purchased using a loan provided
pursuant to the authority under this section to a borrower
described in subsection (c)(4) of this section shall be used
only as rental dwelling units and shall be made available
for rental only at a monthly rental price that does not
exceed the fair market rent under section 8(c)(2)(A) of
the United States Housing Act of 1937 (42 U.S.C.
1437f(c)(2)(A)), as periodically adjusted, for a unit of the
applicable size located in the area in which the residence
is located. Compliance with this subsection shall be mon-
itored and enforced by the covered jurisdiction providing
the amounts for the downpayment loan under this section
for the purchase of such residence.
(f) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) COVERED JURISDICTION.—The term ‘‘cov-
ered jurisdiction’’ means, with respect to a fiscal
year—
(A) a metropolitan city or urban county
that receives a grant for such fiscal year pursu-
ant to section 106(b) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C.
5306(b)); or
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(B) a jurisdiction that is a participating
jurisdiction for such fiscal year for purposes of
the HOME Investment Partnerships Act (42
U.S.C. 12721 et seq.).
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
TITLE VI—LOCAL
HOMEOWNERSHIP INITIATIVES
SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REIN-
VESTMENT CORPORATION.
Section 608(a)(1) of the Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8107(a)(1)) is amended by
striking the first sentence and inserting the following:
‘‘There is authorized to be appropriated to the corporation
to carry out this title $95,000,000 for fiscal year 2001
and such sums as may be necessary for each of fiscal years
2002 through 2005. Of the amounts appropriated to the
corporation for fiscal year 2001, $5,000,000 shall be avail-
able only for the corporation to provide assistance under
duplex homeownership programs established before the
date of the enactment of the American Homeownership
and Economic Opportunity Act of 2000 through
Neighborworks Homeownership Center pilot projects es-
tablished before such date of the enactment.’’.
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SEC. 602. HOMEOWNERSHIP ZONES.
Section 186 of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 12898a) is amended to read
as follows:
‘‘SEC. 186. HOMEOWNERSHIP ZONE GRANTS.
‘‘(a) AUTHORITY.—The Secretary of Housing and
Urban Development may make grants to units of general
local government to assist homeownership zones. Home-
ownership zones are contiguous, geographically defined
areas, primarily residential in nature, in which large-scale
development projects are designed to reclaim distressed
neighborhoods by creating homeownership opportunities
for low- and moderate-income families. Projects in home-
ownership zones are intended to serve as a catalyst for
private investment, business creation, and neighborhood
revitalization.
‘‘(b) ELIGIBLE ACTIVITIES.—Amounts made avail-
able under this section may be used for projects that in-
clude any of the following activities in the homeownership
zone:
‘‘(1) Acquisition, construction, and rehabilita-
tion of housing.
‘‘(2) Site acquisition and preparation, including
demolition, construction, reconstruction, or installa-
tion of public and other site improvements and utili-
ties directly related to the homeownership zone.
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‘‘(3) Direct financial assistance to homebuyers.
‘‘(4) Homeownership counseling.
‘‘(5) Relocation assistance.
‘‘(6) Marketing costs, including affirmative
marketing activities.
‘‘(7) Other project-related costs.
‘‘(8) Reasonable administrative costs (up to 5
percent of the grant amount).
‘‘(9) Other housing-related activities proposed
by the applicant as essential to the success of the
homeownership zone and approved by the Secretary.
‘‘(c) APPLICATION.—To be eligible for a grant under
this section, a unit of general local government shall sub-
mit an application for a homeownership zone grant in such
form and in accordance with such procedures as the Sec-
retary shall establish.
‘‘(d) SELECTION CRITERIA.—The Secretary shall se-
lect applications for funding under this section through
a national competition, using selection criteria established
by the Secretary, which shall include—
‘‘(1) the degree to which the proposed activities
will result in the improvement of the economic, so-
cial, and physical aspects of the neighborhood and
the lives of its residents through the creation of new
homeownership opportunities;
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‘‘(2) the levels of distress in the homeownership
zone as a whole, and in the immediate neighborhood
of the project for which assistance is requested;
‘‘(3) the financial soundness of the plan for fi-
nancing homeownership zone activities;
‘‘(4) the leveraging of other resources; and
‘‘(5) the capacity to successfully carry out the
plan.
The Secretary may not treat any application for a grant
under this section adversely in any manner solely on the
basis that the homeownership zone is located, in whole or
in part, within unincorporated areas.
‘‘(e) GRANT APPROVAL AMOUNTS.—The Secretary
may establish a maximum amount for any grant for any
funding round under this section. A grant may not be
made in an amount that exceeds the amount that the Sec-
retary determines is necessary to fund the project for
which the application is made.
‘‘(f) PROGRAM REQUIREMENTS.—A homeownership
zone proposal shall—
‘‘(1) provide for a significant number of new
homeownership opportunities that will make a visible
improvement in an immediate neighborhood;
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‘‘(2) not be inconsistent with such planning and
design principles as may be prescribed by the Sec-
retary;
‘‘(3) be designed to stimulate additional invest-
ment in that area;
‘‘(4) provide for partnerships with persons or
entities in the private and nonprofit sectors;
‘‘(5) incorporate a comprehensive approach to
revitalization of the neighborhood;
‘‘(6) establish a detailed time-line for com-
mencement and completion of construction activities;
and
‘‘(7) provide for affirmatively furthering fair
housing.
‘‘(g) INCOME TARGETING.—At least 51 percent of
the homebuyers assisted with funds under this section
shall have household incomes at or below 80 percent of
median income for the area, as determined by the Sec-
retary.
‘‘(h) ENVIRONMENTAL REVIEW.—For purposes of
environmental review, decisionmaking, and action pursu-
ant to the National Environmental Policy Act of 1969 and
other provisions of law that further the purposes of such
Act, a grant under this section shall be treated as assist-
ance under the HOME Investment Partnerships Act and
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shall be subject to the regulations issued by the Secretary
to implement section 288 of such Act.
‘‘(i) REVIEW, AUDIT, AND REPORTING.—The Sec-
retary shall make such reviews and audits and establish
such reporting requirements as may be necessary or ap-
propriate to determine whether the grantee has carried out
its activities in a timely manner and in accordance with
the requirements of this section. The Secretary may ad-
just, reduce, or withdraw amounts made available, or take
other action as appropriate, in accordance with the Sec-
retary’s performance reviews and audits under this sec-
tion.
‘‘(j) AUTHORIZATION.—There is authorized to be ap-
propriated to carry out this section $25,000,000 for fiscal
year 2001 and such sums as may be necessary for fiscal
year 2002, to remain available until expended.’’.
SEC. 603. LEASE-TO-OWN.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that residential tenancies under lease-to-own
provisions can facilitate homeownership by low- and mod-
erate-income families and provide opportunities for home-
ownership for such families who might not otherwise be
able to afford homeownership.
(b) REPORT.—Not later than the expiration of the
3-month period beginning on the date of the enactment
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of this Act, the Secretary of Housing and Urban Develop-
ment shall submit a report to the Congress—
(1) analyzing whether lease-to-own provisions
can be effectively incorporated within the HOME in-
vestment partnerships program, the public housing
program, the tenant-based rental assistance program
under section 8 of the United States Housing Act of
1937, or any other programs of the Department to
facilitate homeownership by low- or moderate-income
families; and
(2) any legislative or administrative changes
necessary to alter or amend such programs to allow
the use of lease-to-own options to provide home-
ownership opportunities.
SEC. 604. LOCAL CAPACITY BUILDING.
Section 4 of the HUD Demonstration Act of 1993
(42 U.S.C. 9816 note) is amended—
(1) in subsection (a), by inserting ‘‘National
Association of Housing Partnerships,’’ after ‘‘Hu-
manity,’’; and
(2) in subsection (e), by striking ‘‘$25,000,000’’
and all that follows and inserting ‘‘, for each fiscal
year, such sums as may be necessary to carry out
this section.’’.
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SEC. 605. CONSOLIDATED APPLICATION AND PLANNING
REQUIREMENT AND SUPER-NOFA.
(a) CONSOLIDATED APPLICATION.—Section 106 of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12706) is amended to read as follows:
‘‘SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY
PLANNING AND DEVELOPMENT PROGRAMS.
‘‘(a) REQUIREMENT.—The Secretary shall, by regula-
tion, provide for jurisdictions to comply with the planning
and application requirements under the covered programs
under subsection (b) by submitting to the Secretary, for
a program year, a single consolidated submission under
this section that complies with the requirements for plan-
ning and application submissions under the laws relating
to the covered programs and shall serve, for the jurisdic-
tion, as the planning document and an application for
funding under the covered programs.
‘‘(b) COVERED PROGRAMS.—The covered programs
under this subsection are the following programs:
‘‘(1) The HOME investment partnerships pro-
gram under title II of this Act (42 U.S.C. 12721 et
seq.).
‘‘(2) The community development block grant
program under title I of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5301 et
seq.).
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‘‘(3) The economic development initiative pro-
gram under section 108(q) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C.
5308(q)).
‘‘(4) The emergency shelter grants program
under subtitle B of title IV of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C.
11371 et seq.).
‘‘(5) The housing opportunities for persons with
AIDS program under subtitle D of title VIII of the
Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12901 et seq.).
‘‘(c) PROGRAM YEAR.—In establishing requirements
for a consolidated submission under this section, the Sec-
retary shall provide for a consolidated program year,
which shall comply with the various application and review
deadlines under the covered programs.
‘‘(d) ADEQUACY OF EXISTING REGULATIONS.—The
regulations of the Secretary relating to consolidated sub-
missions for community planning and development pro-
grams, part 91 of title 24, Code of Federal Regulations,
as in effect on March 1, 1999, shall be considered to be
sufficient to comply with this section, except to the extent
that the program referred to in paragraph (3) of sub-
section (b) is not covered by such regulations.
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‘‘(e) CONSISTENCY.—The Secretary shall, by regula-
tion or otherwise, as deemed by the Secretary to be appro-
priate, require any application for housing assistance
under title II of this Act, assistance under the Housing
and Community Development Act of 1974, or assistance
under the Stewart B. McKinney Homeless Assistance Act,
to contain or be accompanied by a certification by an ap-
propriate State or local public official that the proposed
housing activities are consistent with the housing strategy
of the jurisdiction to be served.’’.
(b) SUPER-NOFA.—The Department of Housing
and Urban Development Act is amended by inserting after
section 12 (42 U.S.C. 3537a) the following new section:
‘‘SEC. 13. NOTICE OF FUNDING AVAILABILITY.
‘‘(a) REQUIREMENT.—In making amounts for a fiscal
year under the covered programs under subsection (b)
available to applicants, the Secretary shall issue a consoli-
dated notice of funding availability that—
‘‘(1) applies to as many of the covered pro-
grams as the Secretary determines is practicable;
‘‘(2) simplifies the application process for fund-
ing under such programs by providing for applica-
tion under various covered programs through a sin-
gle, unified application;
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‘‘(3) promotes comprehensive approaches to
housing and community development by providing
for applicants to identify coordination of efforts
under various covered programs; and
‘‘(4) clearly informs prospective applicants of
the general and specific requirements under law for
applying for funding under such programs.
‘‘(b) COVERED PROGRAMS.—The covered programs
under this subsection are the programs that are adminis-
tered by the Secretary and identified by the Secretary for
purposes of this section, in the following areas:
‘‘(1) Housing and community development pro-
grams.
‘‘(2) Economic development and empowerment
programs.
‘‘(3) Targeted housing assistance and homeless
assistance programs.’’.
SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PRO-
VIDERS.
(a) REAUTHORIZATION.—Subsection (p) of section
11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended to read as
follows:
‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
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$25,000,000 for fiscal year 2001 and such sums as may
be necessary for each of fiscal years 2002 and 2003.’’.
(b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of
the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting before
the period at the end the following: ‘‘, which may include
reimbursing an organization, consortium, or affiliate, upon
approval of any required environmental review, for
nongrant amounts of the organization, consortium, or af-
filiate advanced before such review to acquire land’’.
(c) DEADLINE FOR RECAPTURE OF FUNDS.—Section
11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended—
(1) in subsection (i)(5)—
(A) by striking ‘‘if the organization or con-
sortia has not used any grant amounts’’ and in-
serting ‘‘the Secretary shall recapture any grant
amounts provided to the organization or con-
sortia that are not used’’;
(B) by striking ‘‘(or,’’ and inserting ‘‘, ex-
cept that such period shall be 36 months’’; and
(C) by striking ‘‘within 36 months), the
Secretary 
shall 
recapture 
such 
unused
amounts’’ and inserting ‘‘and in the case of a
grant amounts provided to a local affiliate of
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106(d)(12) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended
by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal
year 2005’’.
(b) COOPERATIVE OWNERSHIP HOUSING CORPORA-
TIONS.—Section 106 of the Housing and Urban Develop-
ment Act of 1968 (12 U.S.C. 1701x) is amended—
(1) in subsection (a)(1)(ii), by inserting ‘‘and
cooperative housing’’ before the semicolon at the
end; and
(2) in subsection (c)—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘and’’ at the end;
(ii) in subparagraph (B), by striking
the period at the end and inserting a semi-
colon; and
(iii) by adding at the end the fol-
lowing new subparagraph:
‘‘(C) to the National Cooperative Bank De-
velopment Corporation—
‘‘(i) to provide homeownership coun-
seling to eligible homeowners that is spe-
cifically designed to relate to ownership
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under cooperative housing arrangements;
and
‘‘(ii) to assist in the establishment
and operation of well-managed and viable
cooperative housing boards.’’;
(B) in paragraph (4)(A), by inserting be-
fore the semicolon at the end the following: ‘‘or,
in the case of a home loan made to finance the
purchase of stock or membership in a coopera-
tive ownership housing corporation, by the stock
or membership interest’’; and
(C) in paragraph (6)(C), by adding before
the period at the end the following: ‘‘and in-
cludes a loan that is secured by a first lien
given in accordance with the laws of the State
where the property is located and that is made
to finance the purchase of stock or membership
in a cooperative ownership housing corporation
the permanent occupancy of dwelling units of
which is restricted to members of such corpora-
tion, where the purchase of such stock or mem-
bership will entitle the purchaser to the perma-
nent occupancy of one of such units’’.
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SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND
LEAD-SAFE HOUSING.
Section 1011(e) of the Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42 U.S.C. 4852(e)) is
amended—
(1) in paragraph (7), by inserting ‘‘, which may
include leasing of lead-safe temporary housing’’ be-
fore the semicolon at the end;
(2) in paragraph (9), by striking ‘‘and’’ at the
end;
(3) by redesignating paragraph (10) as para-
graph (11); and
(4) by inserting after paragraph (9) the fol-
lowing new paragraph:
‘‘(10) provide accessible information through
centralized locations that provide a variety of resi-
dential lead-based paint poisoning prevention serv-
ices to the community that such services are in-
tended to benefit; and’’.
SEC. 609. GRANT ELIGIBILITY OF COMMUNITY ORGANIZA-
TIONS.
(a) ELIGIBILITY.—For any program administered by
the Secretary of Housing and Urban Development under
which financial assistance is provided by the Secretary to
nongovernmental organizations or to a State or local gov-
ernment for provision to nongovernmental organizations,
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religious organizations shall be eligible, on the same basis
as other nongovernmental organizations, to receive the fi-
nancial assistance under the program from the Secretary
or such State and local governments, as the case may be,
as long as the program is implemented in a manner con-
sistent with the Establishment Clause of the Free Exercise
Clause of the first amendment to the Constitution. Neither
the Secretary nor a State or local government to which
such financial assistance is provided shall discriminate
against an organization that receives financial assistance,
or applies to receive assistance, under a program adminis-
tered by the Secretary, on the basis that the organization
has a religious character.
(b) RELIGIOUS CHARACTER AND INDEPENDENCE.—
(1) IN GENERAL.—A religious organization that
receives assistance under a program described in
subsection (a) shall retain its religious character and
control over the definition, development, practice,
and expression of its religious beliefs.
(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State or local government
shall require a religious organization—
(A) to alter its form of internal govern-
ance; or
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(B) to remove religious art, icons, scrip-
ture, or other symbols,
in order to be eligible to provide assistance under a
program described in subsection (a).
(3) EMPLOYMENT PRACTICES.—A religious or-
ganization’s exemption provided under section 702
of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
1) regarding employment practices shall not be af-
fected by its participation in, or receipt of funds
from, programs described in subsection (a).
(c) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No funds provided directly to a religious or-
ganization to provide assistance under any program de-
scribed in subsection (a) shall be expended for sectarian
worship, instruction, or proselytization.
(d) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization providing as-
sistance under any program described in subsection
(a) shall be subject to the same regulations as other
nongovernmental organizations to account in accord
with generally accepted accounting principles for the
use of such funds provided under such program.
(2) LIMITED AUDIT.—Such organization shall
segregate government funds provided under such
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program into a separate account. Only the govern-
ment funds shall be subject to audit by the govern-
ment.
(e) TREATMENT OF ELIGIBLE ENTITIES AND OTHER
INTERMEDIATE ORGANIZATIONS.—If an eligible entity or
other organization (referred to in this subsection as an
‘‘intermediate organization’’), acting under a contract, or
grant or other agreement, with the Federal Government
or a State or local government, is given the authority
under the contract or agreement to select nongovern-
mental organizations to provide assistance under the pro-
grams described in subsection (a), the intermediate orga-
nization shall have the same duties under this section as
the government.
(f) DEFINITIONS.—For purposes of this section:
(1) FINANCIAL ASSISTANCE.—The term ‘‘finan-
cial assistance’’ means any grant, loan, subsidy,
guarantee, or other financial assistance, except that
such term does not include any mortgage insurance
provided under a program administered by the Sec-
retary.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
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TITLE VII—NATIVE AMERICAN
HOMEOWNERSHIP
Subtitle A—Native American
Housing
SEC. 701. LANDS TITLE REPORT COMMISSION.
(a) ESTABLISHMENT.—Subject to sums being pro-
vided in advance in appropriations Acts, there is estab-
lished a Commission to be known as the Lands Title Re-
port Commission (hereafter in this section referred to as
the ‘‘Commission’’) to facilitate home loan mortgages on
Indian trust lands. The Commission will be subject to
oversight by the Committee on Banking and Financial
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the
Senate.
(b) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be
composed of 12 members, appointed not later than
90 days after the date of the enactment of this Act
as follows:
(A) Four members shall be appointed by
the President.
(B) Four members shall be appointed by
the Chairperson of the Committee on Banking
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and Financial Services of the House of Rep-
resentatives.
(C) Four members shall be appointed by
the Chairperson of the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(2) QUALIFICATIONS.—
(A) MEMBERS OF TRIBES.—At all times,
not less than eight of the members of the Com-
mission shall be members of federally recog-
nized Indian tribes.
(B) EXPERIENCE
IN
LAND
TITLE
MAT-
TERS.—All members of the Commission shall
have experience in and knowledge of land title
matters relating to Indian trust lands.
(3) CHAIRPERSON.—The Chairperson of the
Commission shall be one of the members of the
Commission appointed under paragraph (1)(C), as
elected by the members of the Commission.
(4) VACANCIES.—Any vacancy on the Commis-
sion shall not affect its powers, but shall be filled in
the manner in which the original appointment was
made.
(5) TRAVEL EXPENSES.—Members of the Com-
mission shall serve without pay, but each member
shall receive travel expenses, including per diem in
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lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
(c) INITIAL MEETING.—The Chairperson of the Com-
mission shall call the initial meeting of the Commission.
Such meeting shall be held within 30 days after the Chair-
person of the Commission determines that sums sufficient
for the Commission to carry out its duties under this Act
have been appropriated for such purpose.
(d) DUTIES.—The Commission shall analyze the sys-
tem of the Bureau of Indian Affairs of the Department
of the Interior for maintaining land ownership records and
title documents and issuing certified title status reports
relating to Indian trust lands and, pursuant to such anal-
ysis, determine how best to improve or replace the
system—
(1) to ensure prompt and accurate responses to
requests for title status reports;
(2) to eliminate any backlog of requests for title
status reports; and
(3) to ensure that the administration of the sys-
tem will not in any way impair or restrict the ability
of Native Americans to obtain conventional loans for
purchase of residences located on Indian trust lands,
including any actions necessary to ensure that the
system will promptly be able to meet future demands
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for certified title status reports, taking into account
the anticipated complexity and volume of such re-
quests.
(e) REPORT.—Not later than the date of the termi-
nation of the Commission under subsection (h), the Com-
mission shall submit a report to the Committee on Bank-
ing and Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban
Affairs of the Senate describing the analysis and deter-
minations made pursuant to subsection (d).
(f) POWERS.—
(1) HEARINGS AND SESSIONS.—The Commis-
sion may, for the purpose of carrying out this sec-
tion, hold hearings, sit and act at times and places,
take testimony, and receive evidence as the Commis-
sion considers appropriate.
(2) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Commission, the head of any Federal
department or agency may detail, on a reimbursable
basis, any of the personnel of that department or
agency to the Commission to assist it in carrying out
its duties under this section.
(3) OBTAINING OFFICIAL DATA.—The Commis-
sion may secure directly from any department or
agency of the United States information necessary
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to enable it to carry out this section. Upon request
of the Chairperson of the Commission, the head of
that department or agency shall furnish that infor-
mation to the Commission.
(4) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other departments and agen-
cies of the United States.
(5) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Commission, the Adminis-
trator of General Services shall provide to the Com-
mission, on a reimbursable basis, the administrative
support services necessary for the Commission to
carry out its duties under this section.
(6) STAFF.—The Commission may appoint per-
sonnel as it considers appropriate, subject to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and shall
pay such personnel in accordance with the provisions
of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General
Schedule pay rates.
(g) AUTHORIZATION OF APPROPRIATIONS.—To carry
out this section, there is authorized to be appropriated
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$500,000. Such sums shall remain available until ex-
pended.
(h) TERMINATION.—The Commission shall terminate
1 year after the date of the initial meeting of the Commis-
sion.
SEC. 702. LOAN GUARANTEES.
Section 184(i) of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is
amended—
(1) in paragraph (5), by striking subparagraph
(C) and inserting the following new subparagraph:
‘‘(C) LIMITATION
ON
OUTSTANDING
AG-
GREGATE PRINCIPAL AMOUNT.—Subject to the
limitations in subparagraphs (A) and (B), the
Secretary may enter into commitments to guar-
antee loans under this section in each fiscal
year with an aggregate outstanding principal
amount not exceeding such amount as may be
provided in appropriation Acts for such fiscal
year.’’; and
(2) in paragraph (7), by striking ‘‘each of fiscal
years 1997, 1998, 1999, 2000, and 2001’’ and in-
serting ‘‘each fiscal year’’.
SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) RESTRICTION ON WAIVER AUTHORITY.—
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(1) IN GENERAL.—Section 101(b)(2) of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4111(b)(2)) is
amended by striking ‘‘if the Secretary’’ and all that
follows through the period at the end and inserting
the following: ‘‘for a period of not more than 90
days, if the Secretary determines that an Indian
tribe has not complied with, or is unable to comply
with, those requirements due to exigent cir-
cumstances beyond the control of the Indian tribe.’’.
(2) LOCAL
COOPERATION
AGREEMENT.—Sec-
tion 101(c) of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4111(c)) is amended by adding at the end the fol-
lowing: ‘‘The Secretary may waive the requirements
of this subsection and subsection (d) if the recipient
has made a good faith effort to fulfill the require-
ments of this subsection and subsection (d) and
agrees to make payments in lieu of taxes to the ap-
propriate taxing authority in an amount consistent
with the requirements of subsection (d)(2) until such
time as the matter of making such payments has
been resolved in accordance with subsection (d).’’.
(b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW-
INCOME.—Section 102(c) of the Native American Housing
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Assistance and Self-Determination Act of 1996 (25 U.S.C.
4112(c)) is amended by adding at the end the following:
‘‘(6) CERTAIN FAMILIES.—With respect to as-
sistance provided under section 201(b)(2) by a re-
cipient to Indian families that are not low-income
families, evidence that there is a need for housing
for each such family during that period that cannot
reasonably be met without such assistance.’’.
(c) ELIMINATION
OF
WAIVER
AUTHORITY
FOR
SMALL TRIBES.—Section 102 of the Native American
Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4112) is amended—
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as sub-
section (f).
(d) ENVIRONMENTAL COMPLIANCE.—Section 105 of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4115) is amended by
adding at the end the following:
‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary
may waive the requirements under this section if the Sec-
retary determines that a failure on the part of a recipient
to comply with provisions of this section—
‘‘(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331
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et seq.) or any other provision of law that furthers
the goals of that Act;
‘‘(2) does not threaten the health or safety of
the community involved by posing an immediate or
long-term hazard to residents of that community;
‘‘(3) is a result of inadvertent error, including
an incorrect or incomplete certification provided
under subsection (c)(1); and
‘‘(4) may be corrected through the sole action
of the recipient.’’.
(e) ELIGIBILITY OF LAW ENFORCEMENT OFFICERS
FOR HOUSING ASSISTANCE.—Section 201(b) of the Na-
tive American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4131(b)) is amended—
(1) in paragraph (1), by striking ‘‘paragraph
(2)’’ and inserting ‘‘paragraphs (2) and (4)’’;
(2) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(3) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) LAW ENFORCEMENT OFFICERS.—A recipi-
ent may provide housing or housing assistance pro-
vided through affordable housing activities assisted
with grant amounts under this Act for a law en-
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forcement officer on an Indian reservation or other
Indian area, if—
‘‘(A) the officer—
‘‘(i) is employed on a full-time basis
by the Federal Government or a State,
county, or tribal government; and
‘‘(ii) in implementing such full-time
employment, is sworn to uphold, and make
arrests for, violations of Federal, State,
county, or tribal law; and
‘‘(B) the recipient determines that the
presence of the law enforcement officer on the
Indian reservation or other Indian area may
deter crime.’’.
(f) OVERSIGHT.—
(1) REPAYMENT.—Section 209 of the Native
American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4139) is amended to
read as follows:
‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING
REQUIREMENT.
‘‘If a recipient uses grant amounts to provide afford-
able housing under this title, and at any time during the
useful life of the housing the recipient does not comply
with the requirement under section 205(a)(2), the Sec-
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retary shall take appropriate action under section
401(a).’’.
(2) AUDITS AND REVIEWS.—Section 405 of the
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4165) is amend-
ed to read as follows:
‘‘SEC. 405. REVIEW AND AUDIT BY SECRETARY.
‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE
31, UNITED STATES CODE.—An entity designated by an
Indian tribe as a housing entity shall be treated, for pur-
poses of chapter 75 of title 31, United States Code, as
a non-Federal entity that is subject to the audit require-
ments that apply to non-Federal entities under that chap-
ter.
‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—
‘‘(1) IN GENERAL.—In addition to any audit or
review under subsection (a), to the extent the Sec-
retary determines such action to be appropriate, the
Secretary may conduct an audit or review of a re-
cipient in order to—
‘‘(A) determine whether the recipient—
‘‘(i) has carried out—
‘‘(I) eligible activities in a timely
manner; and
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‘‘(II) eligible activities and cer-
tification in accordance with this Act
and other applicable law;
‘‘(ii) has a continuing capacity to
carry out eligible activities in a timely
manner; and
‘‘(iii) is in compliance with the Indian
housing plan of the recipient; and
‘‘(B) verify the accuracy of information
contained in any performance report submitted
by the recipient under section 404.
‘‘(2) ON-SITE
VISITS.—To the extent prac-
ticable, the reviews and audits conducted under this
subsection shall include on-site visits by the appro-
priate official of the Department of Housing and
Urban Development.
‘‘(c) REVIEW OF REPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall provide
each recipient that is the subject of a report made
by the Secretary under this section notice that the
recipient may review and comment on the report
during a period of not less than 30 days after the
date on which notice is issued under this paragraph.
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‘‘(2) PUBLIC AVAILABILITY.—After taking into
consideration any comments of the recipient under
paragraph (1), the Secretary—
‘‘(A) may revise the report; and
‘‘(B) not later than 30 days after the date
on which those comments are received, shall
make the comments and the report (with any
revisions made under subparagraph (A)) readily
available to the public.
‘‘(d) EFFECT
OF
REVIEWS.—Subject to section
401(a), after reviewing the reports and audits relating to
a recipient that are submitted to the Secretary under this
section, the Secretary may adjust the amount of a grant
made to a recipient under this Act in accordance with the
findings of the Secretary with respect to those reports and
audits.’’.
(g) ALLOCATION FORMULA.—Section 302(d)(1) of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4152(d)(1)) is
amended—
(1) by striking ‘‘The formula,’’ and inserting
the following:
‘‘(A) IN GENERAL.—Except with respect to
an Indian tribe described in subparagraph (B),
the formula’’; and
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(2) by adding at the end the following:
‘‘(B) CERTAIN INDIAN TRIBES.—With re-
spect to fiscal year 2001 and each fiscal year
thereafter, for any Indian tribe with an Indian
housing authority that owns or operates fewer
than 250 public housing units, the formula
shall provide that if the amount provided for a
fiscal year in which the total amount made
available for assistance under this Act is equal
to or greater than the amount made available
for fiscal year 1996 for assistance for the oper-
ation and modernization of the public housing
referred to in subparagraph (A), then the
amount provided to that Indian tribe as mod-
ernization assistance shall be equal to the aver-
age annual amount of funds provided to the In-
dian tribe (other than funds provided as emer-
gency assistance) under the assistance program
under section 14 of the United States Housing
Act of 1937 (42 U.S.C. 1437l) for the period
beginning with fiscal year 1992 and ending
with fiscal year 1997.’’.
(h) HEARING REQUIREMENT.—Section 401(a) of the
Native American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4161(a)) is amended—
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(1) by redesignating paragraphs (1) through
(4) as subparagraphs (A) through (D), respectively,
and realigning such subparagraphs (as so redesig-
nated) so as to be indented 4 ems from the left mar-
gin;
(2) by striking ‘‘Except as provided’’ and in-
serting the following:
‘‘(1) IN GENERAL.—Except as provided’’;
(3) by striking ‘‘If the Secretary takes an ac-
tion under paragraph (1), (2), or (3)’’ and inserting
the following:
‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec-
retary takes an action under subparagraph (A), (B),
or (C) of paragraph (1)’’; and
(4) by adding at the end the following:
‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this subsection, if the Sec-
retary makes a determination that the failure of
a recipient of assistance under this Act to com-
ply substantially with any material provision (as
that term is defined by the Secretary) of this
Act is resulting, and would continue to result,
in a continuing expenditure of Federal funds in
a manner that is not authorized by law, the
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Secretary may take an action described in para-
graph (1)(C) before conducting a hearing.
‘‘(B) PROCEDURAL REQUIREMENT.—If the
Secretary takes an action described in subpara-
graph (A), the Secretary shall—
‘‘(i) provide notice to the recipient at
the time that the Secretary takes that ac-
tion; and
‘‘(ii) conduct a hearing not later than
60 days after the date on which the Sec-
retary provides notice under clause (i).
‘‘(C) DETERMINATION.—Upon completion
of a hearing under this paragraph, the Sec-
retary shall make a determination regarding
whether to continue taking the action that is
the subject of the hearing, or take another ac-
tion under this subsection.’’.
(i) PERFORMANCE AGREEMENT TIME LIMIT.—Sec-
tion 401(b) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4161(b))
is amended—
(1) by striking ‘‘If the Secretary’’ and inserting
the following:
‘‘(1) IN GENERAL.—If the Secretary’’;
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(2) by striking ‘‘(1) is not’’ and inserting the
following:
‘‘(A) is not’’;
(3) by striking ‘‘(2) is a result’’ and inserting
the following:
‘‘(B) is a result’’;
(4) in the flush material following paragraph
(1)(B), as redesignated by paragraph (3) of this
subsection—
(A) by realigning such material so as to be
indented 2 ems from the left margin; and
(B) by inserting before the period at the
end the following: ‘‘, if the recipient enters into
a performance agreement with the Secretary
that specifies the compliance objectives that the
recipient will be required to achieve by the ter-
mination date of the performance agreement’’;
and
(5) by adding at the end the following:
‘‘(2) PERFORMANCE AGREEMENT.—The period
of a performance agreement described in paragraph
(1) shall be for 1 year.
‘‘(3) REVIEW.—Upon the termination of a per-
formance agreement entered into under paragraph
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(1), the Secretary shall review the performance of
the recipient that is a party to the agreement.
‘‘(4) EFFECT OF REVIEW.—If, on the basis of
a review under paragraph (3), the Secretary deter-
mines that the recipient—
‘‘(A) has made a good faith effort to meet
the compliance objectives specified in the agree-
ment, the Secretary may enter into an addi-
tional performance agreement for the period
specified in paragraph (2); and
‘‘(B) has failed to make a good faith effort
to meet applicable compliance objectives, the
Secretary shall determine the recipient to have
failed to comply substantially with this Act, and
the recipient shall be subject to an action under
subsection (a).’’.
(j) LABOR STANDARDS.—Section 104(b) of the Na-
tive American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4114(b) is amended—
(1) in paragraph (1), by striking ‘‘Davis-Bacon
Act (40 U.S.C. 276a–276a–5)’’ and inserting ‘‘Act
of March 3, 1931 (commonly known as the Davis-
Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C
276a et seq.)’’; and
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(2) by adding at the end the following new
paragraph:
‘‘(3) APPLICATION
OF
TRIBAL
LAWS.—Para-
graph (1) shall not apply to any contract or agree-
ment for assistance, sale, or lease pursuant to this
Act, if such contract or agreement is otherwise cov-
ered by one or more laws or regulations adopted by
an Indian tribe that requires the payment of not less
than prevailing wages, as determined by the Indian
tribe.’’.
(k) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TABLE OF CONTENTS.—Section 1(b) of the
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4101 note) is
amended in the table of contents—
(A) by striking the item relating to section
206; and
(B) by striking the item relating to section
209 and inserting the following:
‘‘209. Noncompliance with affordable housing requirement.’’.
(2) CERTIFICATION OF COMPLIANCE WITH SUB-
SIDY
LAYERING
REQUIREMENTS.—Section 206 of
the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4136) is re-
pealed.
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(3) TERMINATIONS.—Section 502(a) of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4181(a)) is amend-
ed by adding at the end the following: ‘‘Any housing
that is the subject of a contract for tenant-based as-
sistance between the Secretary and an Indian hous-
ing authority that is terminated under this section
shall, for the following fiscal year and each fiscal
year thereafter, be considered to be a dwelling unit
under section 302(b)(1).’’.
Subtitle B—Native Hawaiian
Housing
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ‘‘Hawaiian Home-
lands Homeownership Act of 2000’’.
SEC. 722. FINDINGS.
The Congress finds that—
(1) the United States has undertaken a respon-
sibility to promote the general welfare of the United
States by—
(A) employing its resources to remedy the
unsafe and unsanitary housing conditions and
the acute shortage of decent, safe, and sanitary
dwellings for families of lower income; and
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(B) developing effective partnerships with
governmental and private entities to accomplish
the objectives referred to in subparagraph (A);
(2) the United States has a special responsi-
bility for the welfare of the Native peoples of the
United States, including Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian
Homes Commission Act, 1920 (42 Stat. 108 et
seq.), the United States set aside 200,000 acres of
land in the Federal territory that later became the
State of Hawaii in order to establish a homeland for
the native people of Hawaii—Native Hawaiians;
(4) despite the intent of Congress in 1920 to
address the housing needs of Native Hawaiians
through the enactment of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), Native
Hawaiians eligible to reside on the Hawaiian home
lands have been foreclosed from participating in
Federal housing assistance programs available to all
other eligible families in the United States;
(5) although Federal housing assistance pro-
grams have been administered on a racially neutral
basis in the State of Hawaii, Native Hawaiians con-
tinue to have the greatest unmet need for housing
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and the highest rates of overcrowding in the United
States;
(6) among the Native American population of
the United States, Native Hawaiians experience the
highest percentage of housing problems in the
United States, as the percentage—
(A) of housing problems in the Native Ha-
waiian population is 49 percent, as compared
to—
(i) 44 percent for American Indian
and Alaska Native households in Indian
country; and
(ii) 27 percent for all other house-
holds in the United States; and
(B) overcrowding in the Native Hawaiian
population is 36 percent as compared to 3 per-
cent for all other households in the United
States;
(7) among the Native Hawaiian population, the
needs of Native Hawaiians, as that term is defined
in section 801 of the Native American Housing As-
sistance and Self-Determination Act of 1996, as
added by section 723 of this subtitle, eligible to re-
side on the Hawaiian Home Lands are the most se-
vere, as—
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(A) the percentage of overcrowding in Na-
tive Hawaiian households on the Hawaiian
Home Lands is 36 percent; and
(B) approximately 13,000 Native Hawai-
ians, which constitute 95 percent of the Native
Hawaiians who are eligible to reside on the Ha-
waiian Home Lands, are in need of housing;
(8) applying the Department of Housing and
Urban Development guidelines—
(A) 70.8 percent of Native Hawaiians who
either reside or who are eligible to reside on the
Hawaiian Home Lands have incomes that fall
below the median family income; and
(B) 50 percent of Native Hawaiians who
either reside or who are eligible to reside on the
Hawaiian Home Lands have incomes below 30
percent of the median family income;
(9) 1⁄3 of those Native Hawaiians who are eligi-
ble to reside on the Hawaiian Home Lands pay
more than 30 percent of their income for shelter,
and 1⁄2 of those Native Hawaiians face overcrowding;
(10) the extraordinarily severe housing needs of
Native Hawaiians demonstrate that Native Hawai-
ians who either reside on, or are eligible to reside on,
Hawaiian Home Lands have been denied equal ac-
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cess to Federal low-income housing assistance pro-
grams available to other qualified residents of the
United States, and that a more effective means of
addressing their housing needs must be authorized;
(11) consistent with the recommendations of
the National Commission on American Indian, Alas-
ka Native, and Native Hawaiian Housing, and in
order to address the continuing prevalence of ex-
traordinarily severe housing needs among Native
Hawaiians who either reside or are eligible to reside
on the Hawaiian Home Lands, Congress finds it
necessary to extend the Federal low-income housing
assistance available to American Indians and Alaska
Natives under the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4101 et seq.) to those Native Hawaiians;
(12) under the treatymaking power of the
United States, Congress had the constitutional au-
thority to confirm a treaty between the United
States and the government that represented the Ha-
waiian people, and from 1826 until 1893, the United
States recognized the independence of the Kingdom
of Hawaii, extended full diplomatic recognition to
the Hawaiian Government, and entered into treaties
and conventions with the Hawaiian monarchs to gov-
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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
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(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.);
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(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
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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;
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(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. 723. 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
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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
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‘‘(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—
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‘‘(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
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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.
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‘‘(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—
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‘‘(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-
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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—
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‘‘(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.
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‘‘(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
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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);
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‘‘(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;
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‘‘(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
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‘‘(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
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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.—
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‘‘(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
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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
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(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—
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‘‘(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
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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—
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‘‘(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
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‘‘(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—
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‘‘(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.
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‘‘(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
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‘‘(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.—
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‘‘(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.—
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‘‘(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
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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.
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‘‘(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).
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‘‘(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;
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‘‘(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—
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‘‘(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-
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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.
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‘‘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.
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‘‘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—
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‘‘(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;
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‘‘(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—
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‘‘(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
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‘‘(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.
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‘‘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
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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
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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.
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‘‘(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
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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.—
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‘‘(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
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‘‘(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
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‘‘(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.
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‘‘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.
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‘‘(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-
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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).
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‘‘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. 724. 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.
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‘‘(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.
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‘‘(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.—
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‘‘(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
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(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.).
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‘‘(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
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‘‘(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.—
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‘‘(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.—
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‘‘(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-
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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)
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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
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‘‘(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-
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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
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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
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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-
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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;
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‘‘(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
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