paragraph before making any payment under such
contract or agreement.
(2) EXCEPTIONS.—Paragraph (1) and the pro-
visions relating to wages (pursuant to paragraph
(1)) in any contract or agreement for assistance,
sale, or lease pursuant to this Act, shall not apply
to any individual who receives no compensation or is
paid expenses, reasonable benefits, or a nominal fee
to perform the services for which the individual vol-
unteered and who is not otherwise employed at any
time in the construction work.
SEC. 105. ENVIRONMENTAL REVIEW.
(a) IN GENERAL.—
(1) RELEASE OF FUNDS.—In order to ensure
that the policies of the National Environmental Pol-
icy Act of 1969 and other provisions of law that fur-
ther the purposes of such Act (as specified in regula-
tions issued by the Secretary) are most effectively
implemented in connection with the expenditure of
grant amounts provided under this Act, and to en-
sure to the public undiminished protection of the en-
vironment, the Secretary, in lieu of the environ-
mental protection procedures otherwise applicable,
may by regulation provide for the release of amounts
for particular projects to tribes which assume all of
the responsibilities for environmental review, deci-
sionmaking, and action pursuant to such Act, and
such other provisions of law as the regulations of the
Secretary specify, that would apply to the Secretary
were the Secretary to undertake such projects as
Federal projects.
(2) REGULATIONS.—
(A) IN
GENERAL.—The Secretary shall
issue regulations to carry out this section only
after consultation with the Council on Environ-
mental Quality.
(B) CONTENTS.—The regulations issued
under this paragraph shall—
(i) provide for the monitoring of the
environmental reviews performed under
this section;
(ii) in the discretion of the Secretary,
facilitate training for the performance of
such reviews; and
(iii) provide for the suspension or ter-
mination of the assumption of responsibil-
ities 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 a recipient of grant amounts
with respect to any particular release of funds.
(b) PROCEDURE.—The Secretary shall approve the
release of funds subject to the procedures authorized by
this section only if, not less than 15 days prior to such
approval and prior to any commitment of funds to such
projects, the tribe has submitted to the Secretary a re-
quest for such release accompanied by a certification that
meets the requirements of subsection (c). The approval of
the Secretary of any such certification shall be deemed to
satisfy the responsibilities of the Secretary under the Na-
tional Environmental Policy Act of 1969 and such other
provisions of law as the regulations of the Secretary speci-
fy insofar as those responsibilities relate to the releases
of funds for projects to be carried out pursuant thereto
that are covered by such certification.
(c) CERTIFICATION.—A certification under the proce-
dures authorized by this section shall—
(1) be in a form acceptable to the Secretary;
(2) be executed by the chief executive officer or
other officer of the tribe under this Act qualified
under regulations of the Secretary;
(3) specify that the tribe has fully carried out
its responsibilities as described under subsection (a);
and
(4) specify that the certifying officer—
(A) consents to assume the status of a re-
sponsible Federal official under the National
Environmental Policy Act of 1969 and each
provision of law specified in regulations issued
by the Secretary insofar as the provisions of
such Act or such other provisions of law apply
pursuant to subsection (a); and
(B) is authorized and consents on behalf of
the tribe and such officer to accept the jurisdic-
tion of the Federal courts for the purpose of en-
forcement of the responsibilities of the certify-
ing officer as such an official.
SEC. 106. REGULATIONS.
(a) TRANSITION REQUIREMENTS.—
(1) IN GENERAL.—Not later than 90 days after
the date of the enactment of this Act, the Secretary
shall, by notice issued in the Federal Register, estab-
lish any requirements necessary to provide for the
transition (upon the effectiveness of this Act and the
amendments made by this Act) from the provision of
assistance for Indian tribes and Indian housing au-
thorities under the United States Housing Act of
1937 and other related provisions of law to the pro-
vision of assistance in accordance with this Act and
the amendments made by this Act.
(2) PUBLIC COMMENTS; GENERAL NOTICE OF
PROPOSED RULEMAKING.—The notice issued under
paragraph (1) shall—
(A) invite public comments regarding such
transition requirements and final regulations to
carry out this Act; and
(B) include a general notice of proposed
rulemaking (for purposes of section 564(a) of
title 5, United States Code) of the final regula-
tions under subsection (b).
(b) FINAL REGULATIONS.—
(1) TIMING.—The Secretary shall issue final
regulations necessary to carry out this Act not later
than September 1, 1997, and such regulations shall
take effect not later than the effective date of this
Act.
(2) NEGOTIATED RULEMAKING PROCEDURE.—
(A) IN
GENERAL.—Notwithstanding sec-
tions 563(a) and 565(a) of title 5, United
States Code, all regulations required under this
Act shall be issued according to a negotiated
rulemaking procedure under subchapter III of
chapter 5 of title 5, United States Code.
(B) COMMITTEE.—
(i) IN GENERAL.—The Secretary shall
establish a negotiated rulemaking commit-
tee, in accordance with the procedures
under that subchapter, for the development
of proposed regulations under subpara-
graph (A).
(ii) ADAPTATION.—In establishing the
negotiated rulemaking committee, the Sec-
retary shall—
(I) adapt the procedures under
the subchapter described in clause (i)
to the unique government-to-govern-
ment relationship between the Indian
tribes and the United States, and
shall ensure that the membership of
the committee include only represent-
atives of the Federal Government and
of geographically diverse small, me-
dium, and large Indian tribes; and
(II) shall not preclude the par-
ticipation of tribally designated hous-
ing entities should tribes elect to be
represented by such entities.
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 107. EFFECTIVE DATE.
Except as otherwise expressly provided in this Act,
this Act and the amendments made by this Act shall take
effect on October 1, 1997.
SEC. 108. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grants
under this title such sums as may be necessary for each
of fiscal years 1998, 1999, 2000, and 2001. This section
shall take effect on the date of the enactment of this Act.
TITLE II—AFFORDABLE
HOUSING ACTIVITIES
SEC. 201. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.
(a) PRIMARY OBJECTIVE.—The national objectives of
this Act are—
(1) to assist and promote affordable housing ac-
tivities to develop, maintain, and operate affordable
housing in safe and healthy environments on Indian
reservations and in other Indian areas for occupancy
by low-income Indian families;
(2) to ensure better access to private mortgage
markets for Indian tribes and their members and to
promote self-sufficiency of Indian tribes and their
members;
(3) to coordinate activities to provide housing
for Indian tribes and their members with Federal,
State, and local activities to further economic and
community development for Indian tribes and their
members;
(4) to plan for and integrate infrastructure re-
sources for Indian tribes with housing development
for tribes; and
(5) to promote the development of private cap-
ital markets in Indian country and to allow such
markets to operate and grow, thereby benefiting In-
dian communities.
(b) ELIGIBLE FAMILIES.—
(1) IN GENERAL.—Except as provided under
paragraph (2), assistance under eligible housing ac-
tivities under this Act shall be limited to low-income
Indian families on Indian reservations and other In-
dian areas.
(2) EXCEPTION
TO
LOW-INCOME
REQUIRE-
MENT.—A recipient may provide assistance for
homeownership activities under section 202(2),
model activities under section 202(6), or loan guar-
antee activities under title VI to Indian families who
are not low-income families, to the extent that the
Secretary approves the activities pursuant to such
section or title because there is a need for housing
for such families that cannot reasonably be met
without such assistance. The Secretary shall estab-
lish limits on the amount of assistance that may be
provided under this Act for activities for families
who are not low-income families.
(3) NON-INDIAN
FAMILIES.—Notwithstanding
paragraph (1), a recipient may provide housing or
housing assistance provided through affordable hous-
ing activities assisted with grant amounts under this
Act for a non-Indian family on an Indian reservation
or other Indian area if the recipient determines that
the presence of the family on the Indian reservation
or other Indian area is essential to the well-being of
Indian families and the need for housing for the
family cannot reasonably be met without such assist-
ance.
(4) PREFERENCE FOR TRIBAL MEMBERS AND
OTHER INDIAN FAMILIES.—The Indian housing plan
for an Indian tribe may require preference, for hous-
ing or housing assistance provided through afford-
able housing activities assisted with grant amounts
provided under this Act on behalf of such tribe, to
be given (to the extent practicable) to Indian fami-
lies who are members of such tribe, or to other In-
dian families. In any case in which the applicable In-
dian housing plan for an Indian tribe provides for
preference under this paragraph, the recipient for
the tribe shall ensure that housing activities that are
assisted with grant amounts under this Act for such
tribe are subject to such preference.
(5) EXEMPTION.—Title VI of the Civil Rights
Act of 1964 and title VIII of the Civil Rights Act
of 1968 shall not apply to actions by Indian tribes
under this subsection.
SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
Affordable housing activities under this title are ac-
tivities, in accordance with the requirements of this title,
to develop or to support affordable housing for rental or
homeownership, or to provide housing services with re-
spect to affordable housing, through the following activi-
ties:
(1) INDIAN HOUSING ASSISTANCE.—The provi-
sion of modernization or operating assistance for
housing previously developed or operated pursuant
to a contract between the Secretary and an Indian
housing authority.
(2) DEVELOPMENT.—The acquisition, new con-
struction, reconstruction, or moderate or substantial
rehabilitation of affordable housing, which may in-
clude real property acquisition, site improvement,
development of utilities and utility services, conver-
sion, demolition, financing, administration and plan-
ning, and other related activities.
(3) HOUSING
SERVICES.—The provision of
housing-related services for affordable housing, such
as housing counseling in connection with rental or
homeownership assistance, establishment and sup-
port of resident organizations and resident manage-
ment corporations, energy auditing, activities related
to the provision of self-sufficiency and other services,
and other services related to assisting owners, ten-
ants, contractors, and other entities, participating or
seeking to participate in other housing activities as-
sisted pursuant to this section.
(4) HOUSING
MANAGEMENT
SERVICES.—The
provision of management services for affordable
housing, including preparation of work specifica-
tions, loan processing, inspections, tenant selection,
management of tenant-based rental assistance, and
management of affordable housing projects.
(5) 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.
(6) MODEL
ACTIVITIES.—Housing activities
under model programs that are designed to carry
out the purposes of this Act and are specifically ap-
proved by the Secretary as appropriate for such pur-
pose.
SEC. 203. PROGRAM REQUIREMENTS.
(a) RENTS.—
(1) ESTABLISHMENT.—Subject to paragraph
(2), each recipient shall develop written policies gov-
erning rents and homebuyer payments charged for
dwelling units assisted under this Act, including the
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 Act, the monthly rent
or homebuyer payment (as applicable) for such
dwelling unit may not exceed 30 percent of the
monthly adjusted income of such family.
(b) MAINTENANCE AND EFFICIENT OPERATION.—
Each recipient who owns or operates (or is responsible for
funding any entity that owns or operates) housing devel-
oped or operated pursuant to a contract between the Sec-
retary and an Indian housing authority pursuant to the
United States Housing Act of 1937 shall, using amounts
of any grants received under this Act, reserve and use for
operating assistance under section 202(1) such amounts
as may be necessary to provide for the continued mainte-
nance and efficient operation of such housing. This sub-
section may not be construed to prevent any recipient (or
entity funded by a recipient) from demolishing or dispos-
ing of Indian housing referred to in this subsection, pursu-
ant to regulations established by the Secretary.
(c) INSURANCE COVERAGE.—Each recipient shall
maintain adequate insurance coverage for housing units
that are owned or operated or assisted with grant amounts
provided under this Act.
(d) ELIGIBILITY FOR ADMISSION.—Each recipient
shall develop written policies governing the eligibility, ad-
mission, and occupancy of families for housing assisted
with grant amounts provided under this Act.
(e) MANAGEMENT AND MAINTENANCE.—Each recipi-
ent shall develop policies governing the management and
maintenance of housing assisted with grant amounts
under this Act.
SEC. 204. TYPES OF INVESTMENTS.
(a) IN GENERAL.—Subject to section 203 and the In-
dian housing plan for an Indian tribe, the recipient for
that tribe shall have—
(1) the discretion to use grant amounts for af-
fordable housing activities through equity invest-
ments, interest-bearing loans or advances, non-
interest-bearing loans or advances, interest sub-
sidies, leveraging of private investments, or any
other form of assistance that the Secretary has de-
termined to be consistent with the purposes of this
Act; and
(2) the right to establish the terms of assist-
ance.
(b) INVESTMENTS.—A recipient may invest grant
amounts for the purposes of carrying out affordable hous-
ing activities in investment securities and other obligations
as approved by the Secretary.
SEC. 
205. 
LOW-INCOME 
REQUIREMENT 
AND 
INCOME
TARGETING.
(a) IN GENERAL.—Housing shall qualify as afford-
able housing for purposes of this Act 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 their initial
occupancy of such unit; and
(B) in the case of housing for homeowner-
ship, is made available for purchase only by a
family that is a low-income family at the time
of purchase; and
(2) except for housing assisted under section
202 of the United States Housing Act of 1937 (as
in effect before the date of the effectiveness of this
Act), each dwelling unit in the housing will remain
affordable, according to binding commitments satis-
factory to the Secretary, for the remaining useful
life of the property (as determined by the Secretary)
without regard to the term of the mortgage or to
transfer of ownership, or for such other period that
the Secretary determines is the longest feasible pe-
riod of time consistent with sound economics and the
purposes of this Act, except upon a foreclosure by a
lender (or upon other transfer in lieu of foreclosure)
if such action—
(A) recognizes any contractual or legal
rights of public agencies, nonprofit sponsors, or
others to take actions that would avoid termi-
nation of low-income affordability in the case of
foreclosure or transfer in lieu of foreclosure;
and
(B) is not for the purpose of avoiding low-
income affordability restrictions, as determined
by the Secretary.
(b) EXCEPTION.—Notwithstanding subsection (a),
housing assisted pursuant to section 201(b)(2) shall be
considered affordable housing for purposes of this Act.
SEC. 206. CERTIFICATION OF COMPLIANCE WITH SUBSIDY
LAYERING REQUIREMENTS.
With respect to housing assisted with grant amounts
provided under this Act, the requirements of section
102(d) of the Department of Housing and Urban Develop-
ment Reform Act of 1989 shall be considered to be satis-
fied upon certification by the Secretary that the combina-
tion of Federal assistance provided to any housing project
is not any more than is necessary to provide affordable
housing.
SEC. 207. LEASE REQUIREMENTS AND TENANT SELECTION.
(a) LEASES.—Except to the extent otherwise pro-
vided by or inconsistent with tribal law, in renting dwelling
units in affordable housing assisted with grant amounts
provided under this Act, the owner or manager of the
housing shall utilize leases that—
(1) do not contain unreasonable terms and con-
ditions;
(2) require the owner or manager to maintain
the housing in compliance with applicable housing
codes and quality standards;
(3) require the owner or manager to give ade-
quate written notice of termination of the lease,
which shall be the period of time required under
State, tribal, or local law;
(4) specify that, with respect to any notice of
eviction or termination, notwithstanding any State,
tribal, or local law, a resident shall be informed of
the opportunity, prior to any hearing or trial, to ex-
amine any relevant documents, records, or regula-
tions directly related to the eviction or termination;
(5) require that the owner or manager may not
terminate the tenancy, during the term of the lease,
except for serious or repeated violation of the terms
or conditions of the lease, violation of applicable
Federal, State, tribal, or local law, or for other good
cause; and
(6) provide that the owner or manager may ter-
minate the tenancy of a resident for any activity, en-
gaged in by the resident, any member of the house-
hold of the resident, or any guest or other person
under the control of the resident, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other residents or employees of the owner or
manager of the housing;
(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 SELECTION.—The owner or manager of
affordable rental housing assisted with grant amounts pro-
vided under this Act shall adopt and utilize written tenant
selection policies and criteria that—
(1) are consistent with the purpose of providing
housing for low-income families;
(2) are reasonably related to program eligibility
and the ability of the applicant to perform the obli-
gations of the lease; and
(3) provide for—
(A) the selection of tenants from a written
waiting list in accordance with the policies and
goals set forth in the Indian housing plan for
the tribe that is the grant beneficiary of such
grant amounts; and
(B) the prompt notification in writing of
any rejected applicant of the grounds for any
rejection.
SEC. 208. AVAILABILITY OF RECORDS.
(a) PROVISION OF INFORMATION.—Notwithstanding
any other provision of law, except as provided in para-
graph (2), the National Crime Information Center, police
departments, and other law enforcement agencies shall,
upon request, provide information to Indian tribes or trib-
ally designated housing entities regarding the criminal
conviction records of adult applicants for, or tenants of,
housing assisted with grant amounts provided to such
tribe or entity under this Act for purposes of applicant
screening, lease enforcement, and eviction.
(b) EXCEPTION.—A law enforcement agency de-
scribed in paragraph (1) shall provide information under
this paragraph relating to any criminal conviction of a ju-
venile only to the extent that the release of such informa-
tion is authorized under the law of the applicable State,
tribe, or locality.
(c) CONFIDENTIALITY.—An Indian tribe or tribally
designated housing entity receiving information under this
section may use such information only for the purposes
provided in this section and such information may not be
disclosed to any person who is not an officer, employee,
or authorized representative of the tribe or entity or the
owner of housing assisted under this Act, and who has
a job-related need to have access to the information for
the purposes under this section. For judicial eviction pro-
ceedings, disclosures may be made to the extent necessary.
The Secretary shall, by regulation, establish procedures
necessary to ensure that information provided under this
section to any tribe or entity is used, and confidentiality
is maintained, as required under this section.
SEC. 209. REPAYMENT.
If a recipient uses grant amounts to provide afford-
able housing under activities under this title and, at any
time during the useful life of the housing the housing does
not comply with the requirement under section 205(2), the
Secretary shall reduce future grant payments on behalf
of the grant beneficiary by an amount equal to the grant
amounts used for such housing (under the authority under
section 401(a)(2)) or require repayment to the Secretary
of an amount equal to such grant amounts.
SEC. 210. CONTINUED USE OF AMOUNTS FOR AFFORDABLE
HOUSING.
Any funds for programs for low-income housing
under the United States Housing Act of 1937 that, on
the date of the applicability of this Act to an Indian tribe,
are owned by, or in the possession or under the control
of, the Indian housing authority for the tribe, including
all reserves not otherwise obligated, shall be considered as-
sistance under this Act and subject to the provisions of
this Act relating to use of such assistance.
TITLE III—ALLOCATION OF
GRANT AMOUNTS
SEC. 301. ANNUAL ALLOCATION.
For each fiscal year, the Secretary shall allocate any
amounts made available for assistance under this Act for
the fiscal year, in accordance with the formula established
pursuant to section 302, among Indian tribes that comply
with the requirements under this Act for a grant under
this Act.
SEC. 302. ALLOCATION FORMULA.
(a) ESTABLISHMENT.—The Secretary shall, by regu-
lations issued not later than the expiration of the 12-
month period beginning on the date of the enactment of
this Act, in the manner provided under section 106, estab-
lish a formula to provide for allocating amounts available
for a fiscal year for block grants under this Act among
Indian tribes in accordance with the requirements of this
section.
(b) FACTORS FOR DETERMINATION OF NEED.—The
formula shall be based on factors that reflect the need of
the Indian tribes and the Indian areas of the tribes for
assistance for affordable housing activities, including the
following factors:
(1) The number of low-income housing dwelling
units owned or operated at the time pursuant to a
contract between an Indian housing authority for
the tribe and the Secretary.
(2) The extent of poverty and economic distress
and the number of Indian families within Indian
areas of the tribe.
(3) Other objectively measurable conditions as
the Secretary and the Indian tribes may specify.
(c) OTHER FACTORS FOR CONSIDERATION.—In es-
tablishing the formula, the Secretary shall consider—
(1) the relative administrative capacities and
other challenges faced by the recipient, including,
but not limited to geographic distribution within the
Indian area and technical capacity; and
(2) the extent to which terminations of assist-
ance under title V will affect funding available to
State recognized tribes.
(d) FUNDING
FOR PUBLIC HOUSING OPERATION
AND MODERNIZATION.—
(1) FULL FUNDING.—The formula shall provide
that, if, in any fiscal year, the total amount made
available for assistance under this Act is equal to or
greater than the total amount made available for fis-
cal year 1996 for assistance for the operation and
modernization of public housing developed or oper-
ated pursuant to a contract between the Secretary
and an Indian housing authority pursuant to the
United States Housing Act of 1937, the amount
provided for such fiscal year for each Indian tribe
for which such operating or modernization assistance
was provided for fiscal year 1996 shall not be less
than the total amount of such operating and mod-
ernization assistance provided for fiscal year 1996
for such tribe.
(2) PARTIAL FUNDING.—The formula shall pro-
vide that, if, in any fiscal year, the total amount
made available for assistance under this Act is less
than the total amount made available for fiscal year
1996 for assistance for the operation and mod-
ernization of public housing developed or operated
pursuant to a contract between the Secretary and an
Indian housing authority pursuant to the United
States Housing Act of 1937, the amount provided
for such fiscal year for each Indian tribe for which
such operating or modernization assistance was pro-
vided for fiscal year 1996 shall not be less than the
amount that bears the same ratio to the total
amount available for assistance under this Act for
such fiscal year that the amount of operating and
modernization assistance provided for the tribe for
fiscal year 1996 bears to the total amount made
available for fiscal year 1996 for assistance for the
operation and modernization of such public housing.
(e) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
TITLE IV—COMPLIANCE,
AUDITS, AND REPORTS
SEC. 401. REMEDIES FOR NONCOMPLIANCE.
(a) ACTIONS
BY SECRETARY AFFECTING GRANT
AMOUNTS.—Except as provided in subsection (b), if the
Secretary finds after reasonable notice and opportunity for
hearing that a recipient of assistance under this Act has
failed to comply substantially with any provision of this
Act, the Secretary shall—
(1) terminate payments under this Act to the
recipient;
(2) reduce payments under this Act to the re-
cipient by an amount equal to the amount of such
payments that were not expended in accordance with
this Act;
(3) limit the availability of payments under this
Act to programs, projects, or activities not affected
by such failure to comply; or
(4) in the case of noncompliance described in
section 402(b), provide a replacement tribally des-
ignated housing entity for the recipient, under sec-
tion 402.
If the Secretary takes an action under paragraph (1), (2),
or (3), the Secretary shall continue such action until the
Secretary determines that the failure to comply has
ceased.
(b) NONCOMPLIANCE BECAUSE OF TECHNICAL INCA-
PACITY.—If the Secretary makes a finding under sub-
section (a), but determines that the failure to comply sub-
stantially with the provisions of this Act—
(1) is not a pattern or practice of activities con-
stituting willful noncompliance, and
(2) is a result of the limited capability or capac-
ity of the recipient,
the Secretary may provide technical assistance for the re-
cipient (directly or indirectly) that is designed to increase
the capability and capacity of the recipient to administer
assistance provided under this Act in compliance with the
requirements under this Act.
(c) REFERRAL FOR CIVIL ACTION.—
(1) AUTHORITY.—In lieu of, or in addition to,
any action authorized by subsection (a), if the Sec-
retary has reason to believe that a recipient has
failed to comply substantially with any provision of
this Act, the Secretary may refer the matter to the
Attorney General of the United States with a rec-
ommendation that an appropriate civil action be in-
stituted.
(2) CIVIL ACTION.—Upon such a referral, the
Attorney General may bring a civil action in any
United States district court having venue thereof for
such relief as may be appropriate, including an ac-
tion to recover the amount of the assistance fur-
nished under this Act that was not expended in ac-
cordance with it, or for mandatory or injunctive re-
lief.
(d) REVIEW.—
(1) IN GENERAL.—Any recipient who receives
notice under subsection (a) of the termination, re-
duction, or limitation of payments under this Act—
(A) may, not later than 60 days after re-
ceiving such notice, file with the United States
Court of Appeals for the circuit in which such
State is located, or in the United States Court
of Appeals for the District of Columbia, a peti-
tion 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.—The Secretary shall file in
the court a record of the proceeding on which the
Secretary based the action, as provided in section
2112 of title 28, United States Code. No objection
to the action of the Secretary shall be considered by
the court unless such objection has been urged be-
fore the Secretary.
(3) DISPOSITION.—
(A) COURT
PROCEEDINGS.—The court
shall have jurisdiction to affirm or modify the
action of the Secretary or to set it aside in
whole or in part. The findings of fact by the
Secretary, if supported by substantial evidence
on the record considered as a whole, shall be
conclusive. The court may order additional evi-
dence to be taken by the Secretary, and to be
made part of the record.
(B) SECRETARY.—The Secretary—
(i) may modify the findings of fact of
the Secretary, or make new findings, by
reason of the new evidence so taken and
filed with the court; and
(ii) shall file—
(I) such modified or new find-
ings, which findings with respect to
questions of fact shall be conclusive if
supported by substantial evidence on
the record considered as a whole; and
(II) the recommendation of the
Secretary, if any, for the modification
or setting aside of the original action
of the Secretary.
(4) FINALITY.—Upon the filing of the record
with the court, the jurisdiction of the court shall be
exclusive and its judgment shall be final, except that
such judgment shall be subject to review by the Su-
preme Court of the United States upon writ of cer-
tiorari or certification as provided in section 1254 of
title 28, United State Code.
SEC. 402. REPLACEMENT OF RECIPIENT.
(a) AUTHORITY.—As a condition of the Secretary
making a grant under this Act on behalf of an Indian
tribe, the tribe shall agree that, notwithstanding any other
provision of law, the Secretary may, only in the cir-
cumstances set forth in subsection (b), require that a re-
placement tribally designated housing entity serve as the
recipient for the tribe, in accordance with subsection (c).
(b) CONDITIONS OF REMOVAL.—The Secretary may
require such replacement tribally designated housing en-
tity for a tribe only upon a determination by the Secretary
on the record after opportunity for a hearing that the re-
cipient for the tribe has engaged in a pattern or practice
of activities that constitutes substantial or willful non-
compliance with the requirements under this Act.
(c) CHOICE AND TERM OF REPLACEMENT.—If the
Secretary requires that a replacement tribally designated
housing entity serve as the recipient for a tribe (or
tribes)—
(1) the replacement entity shall be an entity
mutually agreed upon by the Secretary and the tribe
(or tribes) for which the recipient was authorized to
act, except that if no such entity is agreed upon be-
fore the expiration of the 60-day period beginning
upon the date that the Secretary makes the deter-
mination under subsection (b), the Secretary shall
act as the replacement entity until agreement is
reached upon a replacement entity; and
(2) the replacement entity (or the Secretary, as
provided in paragraph (1)) shall act as the tribally
designated housing entity for the tribe (or tribes) for
a period that expires upon—
(A) a date certain, which shall be specified
by the Secretary upon making the determina-
tion under subsection (b); or
(B) the occurrence of specific conditions,
which conditions shall be specified in written
notice provided by the Secretary to the tribe
upon making the determination under sub-
section (b).
SEC. 403. MONITORING OF COMPLIANCE.
(a) ENFORCEABLE AGREEMENTS.—Each recipient,
through binding contractual agreements with owners and
otherwise, shall ensure long-term compliance with the pro-
visions of this Act. Such measures shall provide for (1)
enforcement of the provisions of this Act by the grant ben-
eficiary or by recipients and other intended beneficiaries,
and (2) remedies for the breach of such provisions.
(b) PERIODIC MONITORING.—Not less frequently
than annually, each recipient shall review the activities
conducted and housing assisted under this Act to assess
compliance with the requirements of this Act. Such review
shall include onsite inspection of housing to determine
compliance with applicable requirements. The results of
each review shall be included in the performance report
of the recipient submitted to the Secretary under section
404 and made available to the public.
(c) PERFORMANCE MEASURES.—The Secretary shall
establish such performance measures as may be necessary
to assess compliance with the requirements of this Act.
SEC. 404. PERFORMANCE REPORTS.
(a) REQUIREMENT.—For each fiscal year, each recip-
ient shall—
(1) review the progress it has made during such
fiscal year in carrying out the Indian housing plan
(or plans) for the Indian tribes for which it admin-
isters grant amounts; and
(2) submit a report to the Secretary (in a form
acceptable to the Secretary) describing the conclu-
sions of the review.
(b) CONTENT.—Each report under this section for a
fiscal year shall—
(1) describe the use of grant amounts provided
to the recipient for such fiscal year;
(2) assess the relationship of such use to the
goals identified in the Indian housing plan of the
grant beneficiary;
(3) indicate the programmatic accomplishments
of the recipient; and
(4) describe the manner in which the recipient
would change its programs as a result of its experi-
ences.
(c) SUBMISSION.—The Secretary shall establish dates
for submission of reports under this section, and review
such reports and make such recommendations as the Sec-
retary considers appropriate to carry out the purposes of
this Act.
(d) PUBLIC AVAILABILITY.—A recipient preparing a
report under this section shall make the report publicly
available to the citizens in the jurisdiction of the recipient
in sufficient time to permit such citizens to comment on
such report prior to its submission to the Secretary, and
in such manner and at such times as the recipient may
determine. The report shall include a summary of any
comments received by the grant beneficiary or recipient
from citizens in its jurisdiction regarding its program.
SEC. 405. REVIEW AND AUDIT BY SECRETARY.
(a) ANNUAL REVIEW.—The Secretary shall, not less
than on an annual basis, make such reviews and audits
as may be necessary or appropriate to determine—
(1) whether the recipient has carried out its eli-
gible activities in a timely manner, has carried out
its eligible activities and certifications in accordance
with the requirements and the primary objectives of
this Act and with other applicable laws, and has a
continuing capacity to carry out those activities in a
timely manner;
(2) whether the recipient has complied with the
Indian housing plan of the grant beneficiary; and
(3) whether the performance reports under sec-
tion 404 of the recipient are accurate.
Reviews under this section shall include, insofar as prac-
ticable, onsite visits by employees of the Department of
Housing and Urban Development.
(b) REPORT BY SECRETARY.—The Secretary shall
give a recipient not less than 30 days to review and com-
ment on a report under this subsection. After taking into
consideration the comments of the recipient, the Secretary
may revise the report and shall make the comments of
the recipient and the report, with any revisions, readily
available to the public not later than 30 days after receipt
of the comments of the recipient.
(c) EFFECT OF REVIEWS.—The Secretary may make
appropriate adjustments in the amount of the annual
grants under this Act 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 on be-
half of an Indian tribe.
SEC. 406. GAO AUDITS.
To the extent that the financial transactions of In-
dian tribes and recipients of grant amounts under this Act
relate to amounts provided under this Act, such trans-
actions may be audited by the Comptroller General of the
United States under such rules and regulations as may
be prescribed by the Comptroller General. The representa-
tives of the General Accounting Office shall have access
to all books, accounts, records, reports, files, and other
papers, things, or property belonging to or in use by such
tribes and recipients pertaining to such financial trans-
actions and necessary to facilitate the audit.
SEC. 407. REPORTS TO CONGRESS.
(a) IN GENERAL.—Not later than 90 days after the
conclusion of each fiscal year in which assistance under
this Act is made available, the Secretary shall submit to
the Congress a report that contains—
(1) a description of the progress made in ac-
complishing the objectives of this Act;
(2) a summary of the use of funds available
under this Act during the preceding fiscal year; and
(3) a description of the aggregate outstanding
loan guarantees under title VI.
(b) RELATED REPORTS.—The Secretary may require
recipients of grant amounts under this Act to submit to
the Secretary such reports and other information as may
be necessary in order for the Secretary to make the report
required by subsection (a).
TITLE V—TERMINATION OF AS-
SISTANCE 
FOR 
INDIAN
TRIBES 
UNDER 
INCOR-
PORATED PROGRAMS
SEC. 501. REPEAL OF PROVISIONS RELATING TO INDIAN
HOUSING 
ASSISTANCE 
UNDER 
UNITED
STATES HOUSING ACT OF 1937.
(a) REPEAL OF TITLE II.—Title II of the United
States Housing Act of 1937 (42 U.S.C 1437aa et seq.)
is hereby repealed.
(b) AMENDMENTS TO TITLE I.—Title I of the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended—
(1) in section 3(b)—
(A)in paragraph (5)—
(i) in subparagraph (F) by inserting
‘‘and’’ after the semicolon at the end;
(ii) by striking subparagraph (G); and
(iii) by redesignating subparagraph
(H) as subparagraph (G);
(B) in paragraph (6), by striking the last
sentence;
(C) in paragraph (7)—
(i) by inserting ‘‘and’’ before ‘‘the
Trust’’; and
(ii) by striking ‘‘, and Indian tribes’’;
and
(D) by striking paragraphs (9), (10), (11),
and (12);
(2) in section 5—
(A) in subsection (j)(1), by striking
‘‘(other than for Indian families)’’; and
(B) by striking subsection (l);
(3) in section 6(b)(1), by striking ‘‘and public
housing for Indians and Alaska Natives in accord-
ance with the Indian Housing Act of 1988’’;
(4) in subsection 7, by striking subsection (l);
(5) in section 9(a)(1)(A), in the second sen-
tence—
(A) by inserting ‘‘and’’ after the comma at
the end of clause (i); and
(B) by striking ‘‘, and (iii)’’ and all that
follows through ‘‘project is occupied’’;
(6) in section 14—
(A) in the section heading, by striking
‘‘AND INDIAN’’;
(B) in subsection (e)(1)(E)—
(i) in the matter preceding clause (i),
by striking ‘‘(or Indian tribal official, if ap-
propriate)’’;
(ii) in clause (i)—
(I) by striking ‘‘(or Indian tribal
officials)’’; and
(II) by striking ‘‘(or tenants of
the Indian housing projects)’’; and
(iii) in clause (ii), by striking ‘‘(or In-
dian tribe)’’;
(7) in section 16—
(A) in subsection (d)—
(i) by striking the paragraph designa-
tion for paragraph (1); and
(ii) by striking paragraph (2); and
(B) in subsection (e), by striking para-
graph (3);
(8) in section 23(o), by striking paragraph (2);
(9) in section 24(h)(3), by striking ‘‘, except
that it does not include any Indian housing author-
ity’’;
(10) in section 25(m)(4), by striking ‘‘, except
that it does not include Indian housing authorities’’;
and
(11) in section 26, in subsections (a)(1) and
(b), by striking ‘‘(including an Indian housing au-
thority)’’ each place it appears.
(c) AMENDMENTS TO TITLE III.—Title III of the
United States Housing Act of 1937 (42 U.S.C. 1437aaa
et seq.) is amended—
(1) by striking the heading for the title and in-
serting the following:
‘‘TITLE III—HOPE FOR PUBLIC
HOUSING HOMEOWNERSHIP’’;
(2) in section 306—
(A) in paragraph (1)(A), by striking ‘‘(in-
cluding an Indian housing authority)’’; and
(B) in paragraph (2)(A), by striking ‘‘or
Indian’’; and
(3) in section 307, by striking ‘‘and title II’’.
(d) OTHER RELATED PROVISIONS.—
(1) INDIAN HOUSING CHILD DEVELOPMENT.—
Section 519 of the Cranston-Gonzalez National Af-
fordable Housing Act (12 U.S.C. 1701z–6 note) is
hereby repealed.
(2) PUBLIC HOUSING YOUTH SPORTS.—Section
520 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 11903a) is amended—
(A) in subsection (b)—
(i) in paragraph (5), by inserting
‘‘and’’ after the semicolon at the end;
(ii) by striking paragraphs (6) and
(7); and
(iii) by redesignating paragraph (8) as
paragraph (6);
(B) in subsection (e)(2), by striking ‘‘In-
dian tribes,’’;
(C) in subsection (i)—
(i) by striking paragraph (1); and
(ii) by redesignating paragraphs (2)
through (7) as paragraphs (1) through (6),
respectively; and
(D) in subsection (l)(5)(B), by striking
‘‘units of general local government, and Indian
housing authorities’’ and inserting ‘‘and Indian
housing authorities’’.
(3) 
ALLOCATION
OF
FUNDS.—Section
213(d)(1)(B)(ii) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 1439) is amended
by striking ‘‘and Indian’’.
SEC. 502. TERMINATION OF INDIAN HOUSING ASSISTANCE
UNDER UNITED STATES HOUSING ACT OF
1937.
(a) TERMINATION OF ASSISTANCE.—After Septem-
ber 30, 1997, financial assistance may not be provided
under the United States Housing Act of 1937 or pursuant
to any commitment entered into under such Act, for In-
dian housing developed or operated pursuant to a contract
between the Secretary and an Indian housing authority,
unless such assistance is provided from amounts made
available for fiscal year 1997 and pursuant to a commit-
ment entered into before September 30, 1997.
(b) TERMINATION OF RESTRICTIONS ON USE OF IN-
DIAN HOUSING.—After September 30, 1997, any housing
developed or operated pursuant to a contract between the
Secretary and an Indian housing authority pursuant to
the United States Housing Act of 1937 shall not be sub-
ject to any provision of such Act or any annual contribu-
tions contract or other agreement pursuant to such Act,
but shall be considered and maintained as affordable hous-
ing for purposes of this Act.
SEC. 503. TERMINATION OF NEW COMMITMENTS FOR RENT-
AL ASSISTANCE.
After September 30, 1997, financial assistance for
rental housing assistance under the United States Hous-
ing Act of 1937 may not be provided to any Indian hous-
ing authority or tribally designated housing entity, unless
such assistance is provided pursuant to a contract for such
assistance entered into by the Secretary and the Indian
housing authority before such date. Any such assistance
provided pursuant to such a contract shall be governed
by the provisions of the United States Housing Act of
1937 (as in effect before the date of the effectiveness of
this Act) and the provisions of such contract.
SEC. 504. TERMINATION OF YOUTHBUILD PROGRAM AS-
SISTANCE.
(a) IN GENERAL.—Subtitle D of title IV of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12899 et seq.) is amended—
(1) by redesignating section 460 as section 461;
and
(2) by inserting after section 459 the following
new section:
‘‘SEC. 460. INELIGIBILITY OF INDIAN TRIBES.
‘‘Indian tribes, Indian housing authorities, and other
agencies primarily serving Indians or Indian areas shall
not be eligible applicants for amounts made available for
assistance under this subtitle for fiscal year 1997 and fis-
cal years thereafter.’’.
(b) APPLICABILITY.—The amendments under sub-
section (a) shall apply with respect to amounts made avail-
able for assistance under subtitle D of title II of the Cran-
ston-Gonzalez National Affordable Housing Act for fiscal
year 1998 and fiscal years thereafter.
SEC. 505. TERMINATION OF HOME PROGRAM ASSISTANCE.
(a) IN GENERAL.—Title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et
seq.) is amended—
(1) in section 217(a)—
(A) in paragraph (1), by striking ‘‘reserv-
ing amounts under paragraph (2) for Indian
tribes and after’’; and
(B) by striking paragraph (2); and
(2) in section 288—
(A) in subsection (a), by striking ‘‘, Indian
tribes,’’;
(B) in subsection (b), by striking ‘‘, Indian
tribe,’’; and
(C) in subsection (c)(4), by striking ‘‘, In-
dian tribe,’’.
(b) APPLICABILITY.—The amendments under sub-
section (a) shall apply with respect to amounts made avail-
able for assistance under title II of the Cranston-Gonzalez
National Affordable Housing Act for fiscal year 1998 and
fiscal years thereafter.
SEC. 506. TERMINATION OF HOUSING ASSISTANCE FOR THE
HOMELESS.
(a) MCKINNEY ACT PROGRAMS.—Title IV of the
Stewart B. McKinney Homeless Assistance Act (42 U.S.C.
11361 et seq.) is amended—
(1) in section 411, by striking paragraph (10);
(2) in section 412, by striking ‘‘, and for Indian
tribes,’’;
(3) in section 413—
(A) in subsection (a)—
(i) by striking ‘‘, and to Indian
tribes,’’; and
(ii) by striking ‘‘, or for Indian tribes’’
each place it appears;
(B) in subsection (c), by striking ‘‘or In-
dian tribe’’; and
(C) in subsection (d)(3)—
(i) by striking ‘‘, or Indian tribe’’ each
place it appears; and
(ii) by striking ‘‘, or other Indian
tribes,’’;
(4) in section 414(a)—
(A) by striking ‘‘or Indian tribe’’ each
place it appears; and
(B) by striking ‘‘, local government,’’ each
place it appears and inserting ‘‘or local govern-
ment’’;
(5) in section 415(c)(4), by striking ‘‘Indian
tribes,’’;
(6) in section 416(b), by striking ‘‘Indian
tribe,’’;
(7) in section 422—
(A) in by striking ‘‘Indian tribe,’’; and
(B) by striking paragraph (3);
(8) in section 441—
(A) by striking subsection (g);
(B) in subsection (h), by striking ‘‘or In-
dian housing authority’’; and
(C) in subsection (j)(1), by striking ‘‘, In-
dian housing authority’’;
(9) in section 462—
(A) in paragraph (2), by striking ‘‘, Indian
tribe,’’; and
(B) by striking paragraph (4); and
(10) in section 491(e), by striking ‘‘, Indian
tribes (as such term is defined in section 102(a) of
the Housing and Community Development Act of
1974),’’.
(b) INNOVATIVE HOMELESS DEMONSTRATION.—Sec-
tion 2(b) of the HUD Demonstration Act of 1993 (42
U.S.C. 11301 note) is amended—
(1) in paragraph (3), by striking ‘‘ ‘unit of gen-
eral local government’, and ‘Indian tribe’ ’’ and in-
serting ‘‘and ‘unit of general local government’ ’’;
and
(2) in paragraph (4), by striking ‘‘unit of gen-
eral local government (including units in rural
areas), or Indian tribe’’ and inserting ‘‘or unit of
general local government’’.
(c) APPLICABILITY.—The amendments under sub-
sections (a) and (b) shall apply with respect to amounts
made available for assistance under title IV of the Stewart
B. McKinney Homeless Assistance Act and section 2 of
the HUD Demonstration Act of 1993, respectively, for fis-
cal year 1998 and fiscal years thereafter.
SEC. 507. SAVINGS PROVISION.
(a) EXISTING RIGHTS AND DUTIES.—Except as pro-
vided in sections 502 and 503, this Act may not be con-
strued to affect the validity of any right, duty, or obliga-
tion of the United States or other person arising under
or pursuant to any commitment or agreement lawfully en-
tered into before October 1, 1997, under the United States
Housing Act of 1937, subtitle D of title IV of the Cran-
ston-Gonzalez National Affordable Housing Act, title II
of the Cranston-Gonzalez National Affordable Housing
Act, title IV of the Stewart B. McKinney Homeless Assist-
ance Act, or section 2 of the HUD Demonstration Act
of 1993.
(b) OBLIGATIONS UNDER REPEALED PROVISIONS.—
Notwithstanding the amendments made by this title, any
obligation of the Secretary made under or pursuant to
subtitle D of title IV of the Cranston-Gonzalez National
Affordable Housing Act, title II of the Cranston-Gonzalez
National Affordable Housing Act, title IV of the Stewart
B. McKinney Homeless Assistance Act, or section 2 of the
HUD Demonstration Act of 1993 shall continue to be gov-
erned by the provisions of such Acts (as in effect before
the date of the effectiveness of the amendments made by
this title).
SEC. 508. EFFECTIVE DATE.
Sections 502, 503, and 507 shall take effect on the
date of the enactment of this Act.
TITLE 
VI—FEDERAL 
GUARAN-
TEES FOR FINANCING FOR
TRIBAL HOUSING ACTIVITIES
SEC. 601. AUTHORITY AND REQUIREMENTS.
(a) AUTHORITY.—To such extent or in such amounts
as provided in appropriation Acts, the Secretary may, sub-
ject to the limitations of this title (including limitations
designed to protect and maintain the viability of rental
housing units owned or operated by the recipient that were
developed under a contract between the Secretary and an
Indian housing authority pursuant to the United States
Housing Act of 1937), and upon such terms and condi-
tions as the Secretary may prescribe, guarantee and make
commitments to guarantee, the notes or other obligations
issued by Indian tribes or tribally designated housing enti-
ties with tribal approval, for the purposes of financing af-
fordable housing activities described in section 202.
(b) LACK OF FINANCING ELSEWHERE.—A guarantee
under this title may be used to assist an Indian tribe or
housing entity in obtaining financing only if the Indian
tribe or housing entity has made efforts to obtain such
financing without the use of such guarantee and cannot
complete such financing consistent with the timely execu-
tion of the program plans without such guarantee.
(c) TERMS OF LOANS.—Notes or other obligations
guaranteed pursuant to this title shall be in such form
and denominations, have such maturities, and be subject
to such conditions as may be prescribed by regulations is-
sued by the Secretary. The Secretary may not deny a
guarantee under this title 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 deter-
mines that the period causes the guarantee to constitute
an unacceptable financial risk.
(d) LIMITATION ON OUTSTANDING GUARANTEES.—
No guarantee or commitment to guarantee shall be made
with respect to any note or other obligation if the total
outstanding notes or obligations of the issuer guaranteed
under this title (excluding any amount defeased under the
contract entered into under section 602(a)(1)) would
thereby exceed an amount equal to 5 times the amount
of the grant approval for the issuer pursuant to title III.
SEC. 602. SECURITY AND REPAYMENT.
(a) REQUIREMENTS ON ISSUER.—To assure the re-
payment of notes or other obligations and charges in-
curred under this title and as a condition for receiving
such guarantees, the Secretary shall require the Indian
tribe or housing entity issuing such notes or obligations
to—
(1) enter into a contract, in a form acceptable
to the Secretary, for repayment of notes or other ob-
ligations guaranteed under this title;
(2) pledge any grant for which the issuer may
become eligible under this Act;
(3) demonstrate that the extent of such issu-
ance and guarantee under this title is within the fi-
nancial capacity of the tribe and is not likely to im-
pair the ability to use grant amounts under title I,
taking into consideration the requirements under
section 203(b); and
(4) furnish, at the discretion of the Secretary,
such other security as may be deemed appropriate
by the Secretary in making such guarantees, includ-
ing increments in local tax receipts generated by the
activities assisted under this Act or disposition pro-
ceeds from the sale of land or rehabilitated property.
(b) REPAYMENT FROM GRANT AMOUNTS.—Notwith-
standing any other provision of this Act—
(1) the Secretary may apply grants pledged
pursuant to subsection (a)(2) to any repayments due
the United States as a result of such guarantees;
and
(2) grants allocated under this Act for an In-
dian tribe or housing entity (including program in-
come derived therefrom) may be used to pay prin-
cipal and interest due (including such servicing, un-
derwriting, and other costs as may be specified in
regulations issued by the Secretary) on notes or
other obligations guaranteed pursuant to this title.
(c) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this title. Any such guarantee
made by the Secretary shall be conclusive evidence of the
eligibility of the obligations for such guarantee with re-
spect to principal and interest, and the validity of any such
guarantee so made shall be incontestable in the hands of
a holder of the guaranteed obligations.
SEC. 603. PAYMENT OF INTEREST.
The Secretary may make, and contract to make,
grants, in such amounts as may be approved in appropria-
tions Acts, to or on behalf of an Indian tribe or housing
entity issuing notes or other obligations guaranteed under
this title, to cover not to exceed 30 percent of the net in-
terest cost (including such servicing, underwriting, or
other costs as may be specified in regulations of the Sec-
retary) to the borrowing entity or agency of such obliga-
tions. The Secretary may also, to the extent approved in
appropriation Acts, assist the issuer of a note or other
obligation guaranteed under this title in the payment of
all or a portion of the principal and interest amount due
under the note or other obligation, if the Secretary deter-
mines that the issuer is unable to pay the amount because
of circumstances of extreme hardship beyond the control
of the issuer.
SEC. 604. TRAINING AND INFORMATION.
The Secretary, in cooperation with eligible public en-
tities, shall carry out training and information activities
with respect to the guarantee program under this title.
SEC. 605. LIMITATIONS ON AMOUNT OF GUARANTEES.
(a) AGGREGATE FISCAL YEAR LIMITATION.—Not-
withstanding any other provision of law and subject only
to the absence of qualified applicants or proposed activities
and to the authority provided in this title, to the extent
approved or provided in appropriation Acts, the Secretary
may enter into commitments to guarantee notes and obli-
gations under this title with an aggregate principal
amount not to exceed $400,000,000 for each of fiscal
years 1997, 1998, 1999, 2000, and 2001.
(b) AUTHORIZATION OF APPROPRIATIONS FOR CRED-
IT SUBSIDY.—There are authorized to be appropriated to
cover the costs (as such term is defined in section 502
of the Congressional Budget Act of 1974) of guarantees
under this title such sums as may be necessary for each
of fiscal years 1997, 1998, 1999, 2000, and 2001.
(c) AGGREGATE OUTSTANDING LIMITATION.—The
total amount of outstanding obligations guaranteed on a
cumulative basis by the Secretary pursuant to this title
shall not at any time exceed $2,000,000,000 or such high-
er amount as may be authorized to be appropriated for
this title for any fiscal year.
(d) FISCAL YEAR LIMITATIONS ON TRIBES.—The
Secretary shall monitor the use of guarantees under this
title by Indian tribes. If the Secretary finds that 50 per-
cent of the aggregate guarantee authority under sub-
section (c) has been committed, the Secretary may—
(1) impose limitations on the amount of guar-
antees any one Indian tribe may receive in any fiscal
year of $50,000,000; or
(2) request the enactment of legislation increas-
ing the aggregate outstanding limitation on guaran-
tees under this title.
SEC. 606. EFFECTIVE DATE.
This title shall take effect on the date of the enact-
ment of this Act.
TITLE VII—OTHER HOUSING AS-
SISTANCE FOR NATIVE AMER-
ICANS
SEC. 701. LOAN GUARANTEES FOR INDIAN HOUSING.
(a) DEFINITION OF ELIGIBLE BORROWERS TO IN-
CLUDE INDIAN TRIBES.—Section 184 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1515z–
13a) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and Indian housing au-
thorities’’ and inserting ‘‘, Indian housing au-
thorities, and Indian tribes,’’; and
(B) by striking ‘‘or Indian housing author-
ity’’ and inserting ‘‘, Indian housing authority,
or Indian tribe’’; and
(2) in subsection (b)(1), by striking ‘‘or Indian
housing authorities’’ and inserting ‘‘, Indian housing
authorities, or Indian tribes’’.
(b) NEED FOR LOAN GUARANTEE.—Section 184(a)
of the Housing and Community Development Act of 1992
(12 U.S.C. 1715z–13a(a)) is amended by striking ‘‘trust
land’’ and inserting ‘‘lands or as a result of a lack of ac-
cess to private financial markets’’.
(c) IHP REQUIREMENT.—Section 184(b)(2) of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z–13a(b)(2)) is amended by inserting before
the period at the end the following: ‘‘that is under the
jurisdiction of an Indian tribe for which an Indian housing
plan has been submitted and approved pursuant to sec-
tions 102 and 103 of the Native American Housing Assist-
ance and Self-Determination Act of 1996 that provides for
the use of loan guarantees under this section to provide
affordable homeownership housing in such areas’’.
(d) LENDER OPTION TO OBTAIN PAYMENT UPON
DEFAULT WITHOUT FORECLOSURE.—Section 184(h) of
the Housing and Community Development Act of 1992
(12 U.S.C. 1715z–13a(h)) is amended—
(1) in paragraph (1)(A)—
(A) in the first sentence of clause (i), by
striking ‘‘in a court of competent jurisdiction’’;
and
(B) by striking clause (ii) and inserting the
following:
‘‘(ii) 
NO
FORECLOSURE.—Without
seeking foreclosure (or in any case in
which a foreclosure proceeding initiated
under clause (i) continues for a period in
excess of 1 year), the holder of the guaran-
tee may submit to the Secretary a request
to assign the obligation and security inter-
est to the Secretary in return for payment
of the claim under the guarantee. The Sec-
retary may accept assignment of the loan
if the Secretary determines that the as-
signment is in the best interests of the
United States. Upon assignment, the Sec-
retary shall pay to the holder of the guar-
antee the pro rata portion of the amount
guaranteed (as determined under sub-
section (e)). The Secretary shall be sub-
rogated to the rights of the holder of the
guarantee and the holder shall assign the
obligation and security to the Secretary.’’;
(2) by striking paragraph (2); and
(3) by redesignating paragraph (3) as para-
graph (2).
(e) LIMITATION OF MORTGAGEE AUTHORITY.—Sec-
tion 184(h)(2) of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1715z–13a(h)(2)), as so re-
designated by subsection (e)(3) of this section, is amend-
ed—
(1) in the first sentence, by striking ‘‘tribal al-
lotted or trust land,’’ and inserting ‘‘restricted In-
dian land, the mortgagee or’’; and
(2) in the second sentence, by striking ‘‘Sec-
retary’’ each place it appears, and inserting ‘‘mort-
gagee or the Secretary’’.
(f) LIMITATION
ON
OUTSTANDING
AGGREGATE
PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1715z–13a(i)(5)(C)) is amended by striking ‘‘1993’’ and
all that follows through ‘‘such year’’ and inserting ‘‘1997,
1998, 1999, 2000, and 2001 with an aggregate outstand-
ing principal amount note exceeding $400,000,000 for
each such fiscal year’’.
(g) AUTHORIZATION OF APPROPRIATIONS FOR GUAR-
ANTEE FUND.—Section 184(i)(7) of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z–
13a(i)(7)) is amended by striking ‘‘such sums’’ and all
that follows through ‘‘1994’’ and inserting ‘‘such sums as
may be necessary for each of fiscal years 1997, 1998,
1999, 2000, and 2001’’.
(h) DEFINITIONS.—Section 184(k) of the Housing
and Community Development Act of 1992 (12 U.S.C.
1715z–13a(k)) is amended—
(1) in paragraph (4), by inserting after ‘‘au-
thority’’ the following: ‘‘or Indian tribe’’;
(2) in paragraph (5)—
(A) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) is authorized to engage in or assist in
the development or operation of—
‘‘(i) low-income housing for Indians;
or
‘‘(ii) housing subject to the provisions
of this section; and’’; and
(B) by adding at the end the following:
‘‘The term includes tribally designated housing enti-
ties under the Native American Housing Assistance
and Self-Determination Act of 1996.’’; and
(3) by striking paragraph (8) and inserting the
following new paragraph:
‘‘(8) TRIBE; INDIAN TRIBE.—The term ‘tribe’
or ‘Indian tribe’ means any Indian tribe, band, na-
tion, or other organized group or community of Indi-
ans, including any Alaska Native village or regional
or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement
Act, that is recognized as eligible for the special pro-
grams and services provided by the United States to
Indians because of their status as Indians pursuant
to the Indian Self-Determination and Education As-
sistance Act of 1975.’’.
(i) PRINCIPAL
OBLIGATION
AMOUNTS.—Section
184(b)(5)(C) of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1715z–13a(b)(5)(C)) is
amended by striking clause (i) and inserting the following
new clause:
‘‘(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); and’’.
(j) AVAILABILITY OF AMOUNTS.—
(1) REQUIREMENT OF APPROPRIATIONS.—Sec-
tion 184(i)(5) of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 1715z–13a(i)(5))
is amended by striking subparagraph (A) and insert-
ing the following:
‘‘(A) 
REQUIREMENT
OF
APPROPRIA-
TIONS.—The authority of the Secretary to enter
into commitments to guarantee loans under this
section shall be effective for any fiscal year to
the extent or in such amounts as are or have
been provided in appropriations Acts, without
regard to the fiscal year for which such
amounts were appropriated.’’.
(2) COSTS.—Section 184(i)(5)(B) of the Hous-
ing and Community Development Act of 1992 (12
U.S.C. 1715z–13a(i)(5)(B)) is amended by adding
at the end the following new sentence: ‘‘Any
amounts appropriated pursuant to this subpara-
graph shall remain available until expended.’’.
(k) GNMA AUTHORITY.—The first sentence of sec-
tion 306(g)(1) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1721(g)(1)) is amended by
inserting before the period at the end the following: ‘‘; or
guaranteed under section 184 of the Housing and Com-
munity Development Act of 1992’’.
SEC. 702. 50-YEAR LEASEHOLD INTEREST IN TRUST OR RE-
STRICTED LANDS FOR HOUSING PURPOSES.
(a) AUTHORITY TO LEASE.—Notwithstanding any
other provision of law, any trust or restricted Indian lands,
whether tribally or individually owned, may be leased by
the Indian owners, subject to the approval of the affected
Indian tribe and the Secretary of the Interior, for housing
development and residential purposes.
(b) TERM.—Each lease pursuant to subsection (a)
shall be for a term not exceeding 50 years.
(c) RULE OF CONSTRUCTION.—This section may not
be construed to repeal, limit, or affect any authority to
lease any trust or restricted Indian lands that—
(1) is conferred by or pursuant to any other
provision of law; or
(2) provides for leases for any period exceeding
50 years.
(d) SELF-IMPLEMENTATION.—This section is in-
tended to be self-implementing and shall not require the
issuance of any rule, regulation, or order to take effect
as provided in section 705.
SEC. 703. TRAINING AND TECHNICAL ASSISTANCE.
There are authorized to be appropriated for assist-
ance for a national organization representing Native
American housing interests for providing training and
technical assistance to Indian housing authorities and
tribally designated housing entities such sums as may be
necessary for each of fiscal years 1997, 1998, 1999, 2000,
and 2001.
SEC. 704. PUBLIC AND ASSISTED HOUSING DRUG ELIMI-
NATION ACT OF 1990.
The Public and Assisted Housing Drug Elimination
Act of 1990 (42 U.S.C. 11901 et seq.) is amended—
(1) in section 5123—
(A) by striking ‘‘(including Indian Housing
Authorities)’’; and
(B) by inserting ‘‘tribally designated hous-
ing entities,’’ before ‘‘and private’’; and
(2) in section 5124(a)(7)—
(A) by inserting ‘‘or tribally designated
housing entity’’ after ‘‘public housing agency’’;
and
(B) by striking ‘‘public housing’’ after non-
profit;
(3) in section 5125, by inserting ‘‘a tribally des-
ignated housing entity,’’ after ‘‘resident management
corporation,’’; and
(4) in section 5126—
(A) in paragraph (4)—
(i) in subparagraph (B), by striking
‘‘or’’ at the end;
(ii) in subparagraph (C), by striking
the period at the end and inserting ‘‘; or’’;
and
(iii) by adding at the end the follow-
ing new subparagraph:
‘‘(D) the Native American Housing Assist-
ance and Self-Determination Act.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) TRIBALLY
DESIGNATED
HOUSING
EN-
TITY.—The term ‘tribally designated housing entity’
has the meaning given such term in section 4 of the
Native American Housing Assistance and Self-De-
termination Act of 1996.’’.
SEC. 705. EFFECTIVE DATE.
This title and the amendments made by this title (but
not including the amendments made by section 704) shall
take effect on the date of the enactment of this Act.
Passed the House of Representatives September 28,
1996.
Attest:
Clerk.