(C) 4 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 8 of the members of the Commis-
sion shall be members of federally recognized
Indian tribes.
(B) EXPERIENCE
IN
LAND
TITLE
MAT-
TERS.—All members of the Commission shall
have experience in and knowledge of land title
matters relating to Indian trust lands.
(3) CHAIRPERSON.—The Chairperson of the
Commission shall be one of the members of the
Commission appointed under paragraph (1)(C), as
elected by the members of the Commission.
(4) VACANCIES.—Any vacancy on the Commis-
sion shall not affect its powers, but shall be filled in
the manner in which the original appointment was
made.
(5) TRAVEL EXPENSES.—Members of the Com-
mission shall serve without pay, but each member
shall receive travel expenses, including per diem in
lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
100
(c) INITIAL MEETING.—The Chairperson of the Com-
mission shall call the initial meeting of the Commission.
Such meeting shall be held within 30 days after the Chair-
person of the Commission determines that sums sufficient
for the Commission to carry out its duties under this Act
have been appropriated for such purpose.
(d) DUTIES.—The Commission shall analyze the sys-
tem of the Bureau of Indian Affairs of the Department
of the Interior for maintaining land ownership records and
title documents and issuing certified title status reports
relating to Indian trust lands and, pursuant to such anal-
ysis, determine how best to improve or replace the
system—
(1) to ensure prompt and accurate responses to
requests for title status reports;
(2) to eliminate any backlog of requests for title
status reports; and
(3) to ensure that the administration of the sys-
tem will not in any way impair or restrict the ability
of Native Americans to obtain conventional loans for
purchase of residences located on Indian trust lands,
including any actions necessary to ensure that the
system will promptly be able to meet future demands
for certified title status reports, taking into account
101
the anticipated complexity and volume of such re-
quests.
(e) REPORT.—Not later than the date of the termi-
nation of the Commission under subsection (h), the Com-
mission shall submit a report to the Committee on Bank-
ing and Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban
Affairs of the Senate describing the analysis and deter-
minations made pursuant to subsection (d).
(f) POWERS.—
(1) HEARINGS AND SESSIONS.—The Commis-
sion may, for the purpose of carrying out this sec-
tion, hold hearings, sit and act at times and places,
take testimony, and receive evidence as the Commis-
sion considers appropriate.
(2) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Commission, the head of any Federal
department or agency may detail, on a reimbursable
basis, any of the personnel of that department or
agency to the Commission to assist it in carrying out
its duties under this section.
(3) OBTAINING OFFICIAL DATA.—The Commis-
sion may secure directly from any department or
agency of the United States information necessary
to enable it to carry out this section. Upon request
102
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
$500,000. Such sums shall remain available until ex-
pended.
103
(h) TERMINATION.—The Commission shall terminate
1 year after the date of the initial meeting of the Commis-
sion.
SEC. 802. LOAN GUARANTEES FOR INDIAN HOUSING.
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’’.
104
TITLE IX—TRANSFER OF UNOC-
CUPIED AND SUBSTANDARD
HUD-HELD 
HOUSING 
TO
LOCAL GOVERNMENTS AND
COMMUNITY 
DEVELOPMENT
CORPORATIONS
SEC. 901. TRANSFER OF UNOCCUPIED AND SUBSTANDARD
HUD-HELD HOUSING TO LOCAL GOVERN-
MENTS 
AND 
COMMUNITY 
DEVELOPMENT
CORPORATIONS.
Section 204 of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997 (12 U.S.C. 1715z–
11a) is amended—
(1) by striking ‘‘FLEXIBLE AUTHORITY’’ and
inserting ‘‘DISPOSITION
OF HUD-OWNED PROP-
ERTIES. (a) FLEXIBLE AUTHORITY
FOR MULTI-
FAMILY PROJECTS.—’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD
HOUSING
TO LOCAL GOVERNMENTS
AND COMMUNITY
DEVELOPMENT CORPORATIONS.—
‘‘(1) TRANSFER AUTHORITY.—Notwithstanding
the authority under subsection (a) and the last sen-
105
tence of section 204(g) of the National Housing Act
(12 U.S.C. 1710(g)), the Secretary of Housing and
Urban Development shall transfer ownership of any
qualified HUD property to a unit of general local
government having jurisdiction for the area in which
the property is located or to a community develop-
ment corporation which operates within such a unit
of general local government in accordance with this
subsection, but only to the extent that units of gen-
eral local government and community development
corporations consent to transfer and the Secretary
determines that such transfer is practicable.
‘‘(2) QUALIFIED HUD PROPERTIES.—For pur-
poses of this subsection, the term ‘qualified HUD
property’ means any property that is owned by the
Secretary and is—
‘‘(A) an unoccupied multifamily housing
project;
‘‘(B) a substandard multifamily housing
project; or
‘‘(C) an unoccupied single family property
that—
‘‘(i) has been determined by the Sec-
retary not to be an eligible property under
106
section 204(h) of the National Housing
Act (12 U.S.C. 1710(h)); or
‘‘(ii) is an eligible property under such
section 204(h), but—
‘‘(I) is not subject to a specific
sale agreement under such section;
and
‘‘(II) has been determined by the
Secretary to be inappropriate for con-
tinued inclusion in the program under
such section 204(h) pursuant to para-
graph (10) of such section.
‘‘(3) TIMING.—The Secretary shall establish
procedures that provide for—
‘‘(A) time deadlines for transfers under
this subsection;
‘‘(B) notification to units of general local
government and community development cor-
porations of qualified HUD properties in their
jurisdictions;
‘‘(C) such units and corporations to ex-
press interest in the transfer under this sub-
section of such properties;
‘‘(D) a right of first refusal for transfer of
qualified HUD properties to such units and cor-
107
porations, under which the Secretary shall ac-
cept an offer to purchase such a property made
by such a unit or corporation during a period
established by the Secretary, but in the case of
an offer made by a community development cor-
poration only if the offer provides for purchase
on a cost recovery basis; and
‘‘(E) a written explanation, to any unit of
general local government or community develop-
ment corporation making an offer to purchase
a qualified HUD property under this subsection
that is not accepted, of the reason that such
offer was not acceptable.
‘‘(4) OTHER
DISPOSITION.—With respect to
any qualified HUD property, if the Secretary does
not receive an acceptable offer to purchase the prop-
erty pursuant to the procedure established under
paragraph (3), the Secretary shall dispose of the
property to the unit of general local government in
which property is located or to community develop-
ment corporations located in such unit of general
local government on a negotiated, competitive bid, or
other basis, on such terms as the Secretary deems
appropriate.
108
‘‘(5) SATISFACTION
OF
INDEBTEDNESS.—Be-
fore transferring ownership of any qualified HUD
property pursuant to this subsection, the Secretary
shall satisfy any indebtedness incurred in connection
with the property to be transferred, by canceling the
indebtedness.
‘‘(6) DETERMINATION
OF
STATUS
OF
PROP-
ERTIES.—To ensure compliance with the require-
ments of this subsection, the Secretary shall take the
following actions:
‘‘(A) UPON ENACTMENT.—Upon the enact-
ment of the American Homeownership and Eco-
nomic Opportunity Act of 1999, the Secretary
shall promptly assess each residential property
owned by the Secretary to determine whether
such property is a qualified HUD property.
‘‘(B) UPON ACQUISITION.—Upon acquiring
any residential property, the Secretary shall
promptly determine whether the property is a
qualified HUD property.
‘‘(C) UPDATES.—The Secretary shall peri-
odically reassess the residential properties
owned by the Secretary to determine whether
any such properties have become qualified
HUD properties.
109
‘‘(7) TENANT LEASES.—This subsection shall
not affect the terms or the enforceability of any con-
tract or lease entered into with respect to any resi-
dential property before the date that such property
becomes a qualified HUD property.
‘‘(8) USE OF PROPERTY.—Property transferred
under this subsection shall be used only for appro-
priate neighborhood revitalization efforts, including
homeownership, rental units, commercial space, and
parks, consistent with local zoning regulations, local
building codes, and subdivision regulations and re-
strictions of record.
‘‘(9) INAPPLICABILITY
TO
PROPERTIES
MADE
AVAILABLE FOR HOMELESS.—Notwithstanding any
other provision of this subsection, this subsection
shall not apply to any properties that the Secretary
determines are to be made available for use by the
homeless pursuant to subpart E of part 291 of title
24, Code of Federal Regulations, during the period
that the properties are so available.
‘‘(10) PROTECTION OF EXISTING CONTRACTS.—
This subsection may not be construed to alter, af-
fect, or annul any legally binding obligations entered
into with respect to a qualified HUD property before
the property becomes a qualified HUD property.
110
‘‘(11) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) COMMUNITY
DEVELOPMENT
COR-
PORATION.—The term ‘community development
corporation’ means a nonprofit organization
whose primary purpose is to promote commu-
nity development by providing housing opportu-
nities for low-income families.
‘‘(B) COST RECOVERY BASIS.—The term
‘cost recovery basis’ means, with respect to any
sale of a residential property by the Secretary,
that the purchase price paid by the purchaser
is equal to or greater than or equal to the costs
incurred by the Secretary in connection with
such property during the period beginning on
the date on which the Secretary acquires title to
the property and ending on the date on which
the sale is consummated.
‘‘(C) MULTIFAMILY HOUSING PROJECT.—
The term ‘multifamily housing project’ has the
meaning given the term in section 203 of the
Housing and Community Development Amend-
ments of 1978.
‘‘(D) RESIDENTIAL PROPERTY.—The term
‘residential property’ means a property that is
111
a multifamily housing project or a single family
property.
‘‘(E) SECRETARY.—The term ‘Secretary’
means the Secretary of Housing and Urban De-
velopment.
‘‘(F) SEVERE PHYSICAL PROBLEMS.—The
term ‘severe physical problems’ means, with re-
spect to a dwelling unit, that the unit—
‘‘(i) lacks hot or cold piped water, a
flush toilet, or both a bathtub and a show-
er in the unit, for the exclusive use of that
unit;
‘‘(ii) on not less than 3 separate occa-
sions during the preceding winter months,
was uncomfortably cold for a period of
more than 6 consecutive hours due to a
malfunction of the heating system for the
unit;
‘‘(iii) has no functioning electrical
service, exposed wiring, any room in which
there is not a functioning electrical outlet,
or has experienced 3 or more blown fuses
or tripped circuit breakers during the pre-
ceding 90-day period;
112
‘‘(iv) is accessible through a public
hallway in which there are no working
light fixtures, loose or missing steps or
railings, and no elevator; or
‘‘(v) has severe maintenance problems,
including water leaks involving the roof,
windows, doors, basement, or pipes or
plumbing fixtures, holes or open cracks in
walls or ceilings, severe paint peeling or
broken plaster, and signs of rodent infesta-
tion.
‘‘(G) SINGLE
FAMILY
PROPERTY.—The
term ‘single family property’ means a 1- to 4-
family residence.
‘‘(H) SUBSTANDARD.—The term ‘sub-
standard’ means, with respect to a multifamily
housing project, that 25 percent or more of the
dwelling units in the project have severe phys-
ical problems.
‘‘(I) UNIT OF GENERAL LOCAL GOVERN-
MENT.—The term ‘unit of general local govern-
ment’ has the meaning given such term in sec-
tion 102(a) of the Housing and Community De-
velopment Act of 1974.
113
‘‘(J) UNOCCUPIED.—The term ‘unoccu-
pied’ means, with respect to a residential prop-
erty, that the unit of general local government
having jurisdiction over the area in which the
project is located has certified in writing that
the property is not inhabited.
‘‘(12) REGULATIONS.—
‘‘(A) INTERIM.—Not later than 30 days
after the date of the enactment of the American
Homeownership and Economic Opportunity Act
of 1999, the Secretary shall issue such interim
regulations as are necessary to carry out this
subsection.
‘‘(B) FINAL.—Not later than 60 days after
the date of the enactment of the American
Homeownership and Economic Opportunity Act
of 1999, the Secretary shall issue such final
regulations as are necessary to carry out this
subsection.’’.
SEC. 902. TECHNICAL CORRECTIONS TO THE MULTIFAMILY
ASSISTED HOUSING REFORM AND AFFORD-
ABILITY ACT OF 1997.
(a) SECTION 8 CONTRACT RENEWAL POLICY FOR
FISCAL YEAR 2000 AND SUBSEQUENT YEARS.—Section
524 of the Multifamily Assisted Housing Reform and Af-
114
fordability Act of 1997 (42 U.S.C. 1437 note; 111 Stat.
1408–1409) is amended—
(1) in subsection (a)(2), by inserting after
‘‘Notwithstanding paragraph (1)’’ the following:
‘‘and subject to section 516 of this subtitle’’;
(2) in subsection (a)(2)(B), by striking ‘‘and fi-
nancing’’ and inserting ‘‘and the primary financing’’;
and
(3) by inserting at the end the following new
subsections:
‘‘(b) INAPPLICABILITY TO PROJECTS SUBJECT TO
RESTRUCTURING.—This section shall not apply to
projects restructured under this subtitle.
‘‘(c) SAVINGS PROVISIONS.—Upon the repeal of this
subtitle pursuant to section 579, the provisions of sections
512(2) and 516 (as in effect immediately before such re-
peal) shall apply with respect to this section.’’.
(b) REPEAL OF CONTRACT RENEWAL AUTHORITY
UNDER SECTION 405(a).—Section 405(a) of the Balanced
Budget Downpayment Act, I (42 U.S.C. 1437f note; 110
Stat. 44–45), is hereby repealed.
(c) EXEMPTIONS FROM RESTRUCTURING.—Section
514(h)(1) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437 note; 111
Stat. 1396) is amended to read as follows:
115
‘‘(1) the primary financing for the project was
provided by a unit of State government or a unit of
general local government (or an agency or instru-
mentality of either) and the primary financing in-
volves mortgage insurance under the National Hous-
ing Act, such that implementation of a mortgage re-
structuring and rental assistance sufficiency plan
under this Act would be in conflict with applicable
law or agreements governing such financing;’’.
(d) MANDATORY RENEWAL OF PROJECT-BASED AS-
SISTANCE.—Section 515(c)(1) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437 note; 111 Stat. 1397) is amended by inserting ‘‘or’’
after the semicolon at the end of subparagraph (B).
(e) PARTIAL PAYMENTS OF CLAIMS.—Section 541 of
the National Housing Act (12 U.S.C. 1735f–19) is
amended—
(1) by striking ‘‘1978 or’’ and inserting ‘‘1978)
or’’; and
(2) by striking ‘‘)))’’ and inserting ‘‘))’’.
116
TITLE X—PRIVATE MORTGAGE
INSURANCE 
CANCELLATION
AND TERMINATION
SEC. 1001. TREATMENT OF ADJUSTABLE RATE MORT-
GAGES.
(a) DEFINITIONS.—Section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901) is amended—
(1) in paragraph (2)(B), by striking clause (i)
and inserting the following new clause:
‘‘(i) is scheduled to reach 80 percent
of the original value of the property secur-
ing the loan, based solely on the amortiza-
tion schedule then in effect and irrespec-
tive of the outstanding balance for that
mortgage on that date; or’’;
(2) in paragraph (12), by striking ‘‘primary’’
and inserting ‘‘principal’’;
(3) in paragraph (13), by striking ‘‘primary’’
and inserting ‘‘principal’’;
(4) in paragraph (16), by striking subpara-
graph (B) and inserting the following new subpara-
graph:
‘‘(B) with respect to an adjustable rate
mortgage, the date on which the principal bal-
ance of the mortgage is scheduled to reach 78
117
percent of the original value of the property se-
curing the loan, based solely on the amortiza-
tion schedule then in effect and irrespective of
the outstanding balance for that mortgage on
that date.’’;
(5) by redesignating paragraphs (2) through
(16), as amended by the preceding provisions of this
subsection, as paragraphs (3) through (17), respec-
tively; and
(6) by inserting after paragraph (1) the fol-
lowing new paragraph:
‘‘(2) AMORTIZATION
SCHEDULE.—The term
‘amortization schedule’ means, with respect to an
adjustable rate mortgage, the schedule that is cre-
ated at the time a residential mortgage transaction
is consummated and the schedule established with
respect to each subsequent change date, which the
mortgagee uses to determine the amount of principal
and interest that is due at regular intervals to retire
the balance and accrued interest over the remaining
amortization period of the loan. Such amortization
schedules shall be prepared at such times as the
mortgagor’s interest rate or payment is calculated or
recalculated under, and in accordance with, the cal-
culation methodology set forth in the credit terms to
118
which the parties to the mortgage are legally bound,
and taking into account, if applicable under such
credit terms, the actual outstanding balance of the
mortgage (including any prepayments of or additions
to principal) at the time of the recalculation. The
amortization schedule developed at the time of the
most recent interest rate change or payment recal-
culation will be the only amortization schedule used
to determine whether the loan will reach the can-
cellation date, termination date, or the date estab-
lished in section 3(g)(1)(B)(ii) before the next pay-
ment recalculation or interest rate change date.’’.
(b) EXCEPTIONS FOR HIGH RISK LOANS.—Section
3(f)(1)(B) of the Homeowners Protection Act of 1998 (12
U.S.C. 4902(f)(1)(B)) is amended by striking clause (ii)
and inserting the following new clause:
‘‘(ii) with respect to an adjustable
rate mortgage, on the date on which the
principal balance of the mortgage is sched-
uled to reach 77 percent of the original
value of the property securing the loan,
based solely on the amortization schedule
then in effect and irrespective of the out-
standing balance for that mortgage on that
date.’’.
119
SEC. 1002. TREATMENT OF CERTAIN MODIFICATIONS.
(a) IN GENERAL.—Section 3 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4902) is amended—
(1) by redesignating subsections (d) through (f)
as subsections (e) through (g), respectively; and
(2) by inserting after subsection (c) the fol-
lowing new subsection:
‘‘(d) TREATMENT OF MODIFICATIONS.—The termi-
nation date, cancellation date, and date upon which final
termination is reached with regard to residential mortgage
transactions may be reset, at the option of the mortgagee,
if the mortgagor and mortgagee agree to a modification
to the terms of the note or mortgage. The mortgagee will
reset the termination date, cancellation date, and final ter-
mination according to subsections (a), (b), and (c) using
the modified terms of the note. A recording of the modified
mortgage or note is not required under this subsection.’’.
(b) CONFORMING AMENDMENTS.—Section 4(a) of
the Homeowners Protection Act of 1998 (12 U.S.C.
4903(a)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘section 3(f)(1)’’ and inserting
‘‘section 3(g)(1)’’;
120
(B) in subparagraph (A)(ii)(IV), by strik-
ing ‘‘section 3(f)’’ and inserting ‘‘section 3(g)’’;
and
(C) in subparagraph (B)(iii), by striking
‘‘section 3(f)’’ and inserting ‘‘section 3(g)’’; and
(2) in paragraph (2), by striking ‘‘section
3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.
SEC. 1003. RESIDENTIAL MORTGAGES AND RESIDENTIAL
MORTGAGE TRANSACTIONS.
(a) TERMINATION OF PRIVATE MORTGAGE INSUR-
ANCE.—Section 3 of the Homeowners Protection Act of
1998 (12 U.S.C. 4902) is amended—
(1) in subsection (c), by inserting ‘‘on residen-
tial mortgage transactions’’ after ‘‘imposed’’; and
(2) in subsection (g) (as so redesignated by sec-
tion 1002(a)(1) of this Act)—
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘mort-
gage or’’;
(B) in paragraph (2), by striking ‘‘mort-
gage or’’; and
(C) in paragraph (3), by striking ‘‘mort-
gage or’’ and inserting ‘‘residential mortgage or
residential’’.