150
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—
151
(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-
152
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-
153
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
154
(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.);
155
(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
156
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;
157
(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
158
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
159
‘‘(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—
160
‘‘(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
161
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.
162
‘‘(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—
163
‘‘(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-
164
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—
165
‘‘(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.
166
‘‘(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
167
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);
168
‘‘(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;
169
‘‘(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
170
‘‘(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
171
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.—
172
‘‘(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
173
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
174
(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—
175
‘‘(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
176
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—
177
‘‘(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
178
‘‘(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—
179
‘‘(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.
180
‘‘(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
181
under this section only if, not less than 15 days be-
fore that approval and before any commitment of
funds to such projects, the Director of the Depart-
ment of Hawaiian Home Lands submits to the Sec-
retary a request for such release accompanied by a
certification that meets the requirements of sub-
section (c).
‘‘(2) EFFECT OF APPROVAL.—The approval of
the Secretary of a certification described in para-
graph (1) shall be deemed to satisfy the responsibil-
ities of the Secretary under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
and such other provisions of law as the regulations
of the Secretary specify to the extent that those re-
sponsibilities relate to the releases of funds for
projects that are covered by that certification.
‘‘(c) CERTIFICATION.—A certification under the pro-
cedures under this section shall—
‘‘(1) be in a form acceptable to the Secretary;
‘‘(2) be executed by the Director of the Depart-
ment of Hawaiian Home Lands;
‘‘(3) specify that the Department of Hawaiian
Home Lands has fully carried out its responsibilities
as described under subsection (a); and
‘‘(4) specify that the Director—
182
‘‘(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.—
183
‘‘(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.—
184
‘‘(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
185
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.
186
‘‘(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).
187
‘‘(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;
188
‘‘(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—
189
‘‘(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-
190
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.
191
‘‘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.
192
‘‘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—
193
‘‘(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;
194
‘‘(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—
195
‘‘(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
196
‘‘(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.
197
‘‘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
198
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
199
‘‘(C) limit the availability of payments
under this title to programs, projects, or activi-
ties not affected by such failure to comply.
‘‘(2) ACTIONS.—If the Secretary takes an ac-
tion under subparagraph (A), (B), or (C) of para-
graph (1), the Secretary shall continue that action
until the Secretary determines that the failure by
the Department to comply with the provision has
been remedied by the Department and the Depart-
ment is in compliance with that provision.
‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL
INCAPACITY.—The Secretary may provide technical assist-
ance for the Department, either directly or indirectly, that
is designed to increase the capability and capacity of the
Director of the Department to administer assistance pro-
vided under this title in compliance with the requirements
under this title if the Secretary makes a finding under
subsection (a), but determines that the failure of the De-
partment to comply substantially with the provisions of
this title—
‘‘(1) is not a pattern or practice of activities
constituting willful noncompliance; and
‘‘(2) is a result of the limited capability or ca-
pacity of the Department of Hawaiian Home Lands.
‘‘(c) REFERRAL FOR CIVIL ACTION.—
200
‘‘(1) AUTHORITY.—In lieu of, or in addition to,
any action that the Secretary may take under sub-
section (a), if the Secretary has reason to believe
that the Department of Hawaiian Home Lands has
failed to comply substantially with any provision of
this title, the Secretary may refer the matter to the
Attorney General of the United States with a rec-
ommendation that an appropriate civil action be in-
stituted.
‘‘(2) CIVIL ACTION.—Upon receiving a referral
under paragraph (1), the Attorney General may
bring a civil action in any United States district
court of appropriate jurisdiction for such relief as
may be appropriate, including an action—
‘‘(A) to recover the amount of the assist-
ance furnished under this title that was not ex-
pended in accordance with this title; or
‘‘(B) for mandatory or injunctive relief.
‘‘(d) REVIEW.—
‘‘(1) IN GENERAL.—If the Director receives no-
tice under subsection (a) of the termination, reduc-
tion, or limitation of payments under this Act, the
Director—
‘‘(A) may, not later than 60 days after re-
ceiving such notice, file with the United States
201
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.
202
‘‘(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
203
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.—
204
‘‘(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
205
‘‘(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
206
‘‘(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.
207
‘‘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.
208
‘‘(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-
209
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).
210
‘‘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.
211
‘‘(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.
212
‘‘(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.—
213
‘‘(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
214
(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.).
215
‘‘(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
216
‘‘(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.—
217
‘‘(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.—
218
‘‘(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-
219
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)
220
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
221
‘‘(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-
222
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
223
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
224
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-
225
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;
226
‘‘(B) any amounts appropriated pursuant
to paragraph (7);
‘‘(C) any guarantee fees collected under
subsection (d); and
‘‘(D) any interest or earnings on amounts
invested under paragraph (4).
‘‘(3) USE.—Amounts in the Guarantee Fund
shall be available, to the extent provided in appro-
priations Acts, for—
‘‘(A) fulfilling any obligations of the Sec-
retary with respect to loans guaranteed under
this section, including the costs (as that term is
defined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)) of such
loans;
‘‘(B) paying taxes, insurance, prior liens,
expenses necessary to make fiscal adjustment in
connection with the application and transmittal
of collections, and other expenses and advances
to protect the Secretary for loans which are
guaranteed under this section or held by the
Secretary;
‘‘(C) acquiring such security property at
foreclosure sales or otherwise;
227
‘‘(D) paying administrative expenses in
connection with this section; and
‘‘(E) reasonable and necessary costs of re-
habilitation and repair to properties that the
Secretary holds or owns pursuant to this sec-
tion.
‘‘(4) INVESTMENT.—Any amounts in the Guar-
antee Fund determined by the Secretary to be in ex-
cess of amounts currently required at the time of the
determination to carry out this section may be in-
vested in obligations of the United States.
‘‘(5) LIMITATION ON COMMITMENTS TO GUAR-
ANTEE LOANS AND MORTGAGES.—
‘‘(A) 
REQUIREMENT
OF
APPROPRIA-
TIONS.—The authority of the Secretary to enter
into commitments to guarantee loans under this
section shall be effective for any fiscal year to
the extent, or in such amounts as are, or have
been, provided in appropriations Acts, without
regard to the fiscal year for which such
amounts were appropriated.
‘‘(B) LIMITATIONS ON COSTS OF GUARAN-
TEES.—The authority of the Secretary to enter
into commitments to guarantee loans under this
section shall be effective for any fiscal year only
228
to the extent that amounts in the Guarantee
Fund are or have been made available in appro-
priations Acts to cover the costs (as that term
is defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of such
loan guarantees for such fiscal year. Any
amounts appropriated pursuant to this subpara-
graph shall remain available until expended.
‘‘(C) LIMITATION
ON
OUTSTANDING
AG-
GREGATE PRINCIPAL AMOUNT.—Subject to the
limitations in subparagraphs (A) and (B), the
Secretary may enter into commitments to guar-
antee loans under this section for each of fiscal
years 2001, 2002, 2003, 2004, and 2005 with
an aggregate outstanding principal amount not
exceeding $100,000,000 for each such fiscal
year.
‘‘(6) LIABILITIES.—All liabilities and obliga-
tions of the assets credited to the Guarantee Fund
under paragraph (2)(A) shall be liabilities and obli-
gations of the Guarantee Fund.
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the
Guarantee Fund to carry out this section such sums
229
as may be necessary for each of fiscal years 2001,
2002, 2003, 2004, and 2005.
‘‘(k) REQUIREMENTS FOR STANDARD HOUSING.—
‘‘(1) IN
GENERAL.—The Secretary shall, by
regulation, establish housing safety and quality
standards to be applied for use under this section.
‘‘(2) STANDARDS.—The standards referred to
in paragraph (1) shall—
‘‘(A) provide sufficient flexibility to permit
the use of various designs and materials in
housing acquired with loans guaranteed under
this section; and
‘‘(B) require each dwelling unit in any
housing acquired in the manner described in
subparagraph (A) to—
‘‘(i) be decent, safe, sanitary, and
modest in size and design;
‘‘(ii) conform with applicable general
construction standards for the region in
which the housing is located;
‘‘(iii) contain a plumbing system
that—
‘‘(I) uses a properly installed sys-
tem of piping;
230
‘‘(II) includes a kitchen sink and
a partitional bathroom with lavatory,
toilet, and bath or shower; and
‘‘(III) uses water supply, plumb-
ing, and sewage disposal systems that
conform to any minimum standards
established by the applicable county or
State;
‘‘(iv) contain an electrical system
using wiring and equipment properly in-
stalled to safely supply electrical energy for
adequate lighting and for operation of ap-
pliances that conforms to any appropriate
county, State, or national code;
‘‘(v) be not less than the size provided
under the applicable locally adopted stand-
ards for size of dwelling units, except that
the Secretary, upon request of the Depart-
ment of Hawaiian Home Lands may waive
the size requirements under this para-
graph; and
‘‘(vi) conform with the energy per-
formance requirements for new construc-
tion established by the Secretary under
section 526(a) of the National Housing
231
Act (12 U.S.C.A. 1735f–4), unless the Sec-
retary determines that the requirements
are not applicable.
‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—
To the extent that the requirements of title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of the
Fair Housing Act (42 U.S.C.A. 3601 et seq.) apply to a
guarantee provided under this subsection, nothing in the
requirements concerning discrimination on the basis of
race shall be construed to prevent the provision of the
guarantee to an eligible entity on the basis that the entity
serves Native Hawaiian families or is a Native Hawaiian
family.’’.
TITLE VIII—TRANSFER OF HUD-
HELD HOUSING TO LOCAL
GOVERNMENTS 
AND 
NON-
PROFIT ORGANIZATIONS
SEC. 801. 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—
232
(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-
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, subject to the requirements
of this section, to a unit of general local government
having jurisdiction for the area in which the prop-
erty is located or to a community development cor-
poration which operates within such a unit of gen-
eral local government in accordance with this sub-
section, but only to the extent that units of general
local government and community development cor-
porations consent to transfer and the Secretary de-
termines that such transfer is practicable.
233
‘‘(2) QUALIFIED HUD PROPERTIES.—For pur-
poses of this subsection, the term ‘qualified HUD
property’ means any property for which, as of the
date that notification of the property is first made
under paragraph (3)(B), not less than 6 months
have elapsed since the later of the date that the
property was acquired by the Secretary or the date
that the property was determined to be unoccupied
or substandard, 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 asset under sec-
tion 204(h) of the National Housing Act
(12 U.S.C. 1710(h)); or
‘‘(ii) is an eligible asset under such
section 204(h), but—
‘‘(I) is not subject to a specific
sale agreement under such section;
and
234
‘‘(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 units of general
local government and community development
corporations, under which—
‘‘(i) the Secretary shall establish a pe-
riod during which the Secretary may not
transfer such properties except to such
units and corporations;
235
‘‘(ii) the Secretary shall offer qualified
HUD properties that are single family
properties for purchase by units of general
local government at a cost of $1 for each
property, but only to the extent that the
costs to the Federal Government of dis-
posal at such price do not exceed the costs
to the Federal Government of disposing of
property subject to the procedures for sin-
gle family property established by the Sec-
retary pursuant to the authority under the
last sentence of section 204(g) of the Na-
tional Housing Act (12 U.S.C. 1710(g));
‘‘(iii) the Secretary may accept an
offer to purchase a property made by a
community development corporation only if
the offer provides for purchase on a cost
recovery basis; and
‘‘(iv) the Secretary shall accept an
offer to purchase such a property that is
made during such period by such a unit or
corporation and that complies with the re-
quirements of this paragraph;
‘‘(E) a written explanation, to any unit of
general local government or community develop-
236
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.
‘‘(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:
237
‘‘(A) UPON ENACTMENT.—Upon the enact-
ment of the American Homeownership and Eco-
nomic Opportunity Act of 2000, 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.
‘‘(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
238
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.
‘‘(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
239
sale of a residential property by the Secretary,
that the purchase price paid by the purchaser
is equal to or greater than the sum of (i) the
appraised value of the property, as determined
in accordance with such requirements as the
Secretary shall establish, and (ii) the costs in-
curred 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
a multifamily housing project or a single family
property.
‘‘(E) SECRETARY.—The term ‘Secretary’
means the Secretary of Housing and Urban De-
velopment.
240
‘‘(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 three separate
occasions during the preceding winter
months, was uncomfortably cold for a pe-
riod 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 three or more blown
fuses or tripped circuit breakers during the
preceding 90-day period;
‘‘(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,
241
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.
‘‘(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.—
242
‘‘(A) INTERIM.—Not later than 30 days
after the date of the enactment of the American
Homeownership and Economic Opportunity Act
of 2000, 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 2000, the Secretary shall issue such final
regulations as are necessary to carry out this
subsection.’’.
SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION
AREAS.
In carrying out the program under section 204(h) of
the National Housing Act (12 U.S.C. 1710(h)), upon the
request of the chief executive officer of a county or the
government of appropriate jurisdiction and not later than
60 days after such request is made, the Secretary of Hous-
ing and Urban Development shall designate as a revital-
ization area all portions of such county that meet the cri-
teria for such designation under paragraph (3) of such
section.
243
TITLE IX—PRIVATE MORTGAGE
INSURANCE 
CANCELLATION
AND TERMINATION
SEC. 901. SHORT TITLE.
This title may be cited as the ‘‘Private Mortgage In-
surance Technical Corrections and Clarification Act’’.
SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.
(a) TREATMENT
OF ADJUSTABLE RATE MORT-
GAGES.—The Homeowners Protection Act of 1998 (12
U.S.C. 4901 et seq.) is amended—
(1) in section 2—
(A) in paragraph (2)(B)(i), by striking
‘‘amortization schedules’’ and inserting ‘‘the
amortization schedule then in effect’’;
(B) in paragraph (16)(B), by striking
‘‘amortization schedules’’ and inserting ‘‘the
amortization schedule then in effect’’;
(C) 
by 
redesignating 
paragraphs 
(6)
through (16) (as amended by the preceding pro-
visions of this paragraph) as paragraphs (8)
through (18), respectively; and
(D) by inserting after paragraph (5) the
following new paragraph:
‘‘(6) AMORTIZATION SCHEDULE THEN IN EF-
FECT.—The term ‘amortization schedule then in ef-
244
fect’ means, with respect to an adjustable rate mort-
gage, a schedule established at the time at which the
residential mortgage transaction is consummated or,
if such schedule has been changed or recalculated, is
the most recent schedule under the terms of the note
or mortgage, which shows—
‘‘(A) the amount of principal and interest
that is due at regular intervals to retire the
principal balance and accrued interest over the
remaining amortization period of the loan; and
‘‘(B) the unpaid balance of the loan after
each such scheduled payment is made.’’; and
(2) in section 3(f)(1)(B)(ii), by striking ‘‘amor-
tization schedules’’ and inserting ‘‘the amortization
schedule then in effect’’.
(b) TREATMENT OF BALLOON MORTGAGES.—Para-
graph (1) of section 2 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4901(1)) is amended by adding at the
end the following new sentence: ‘‘A residential mortgage
that (A) does not fully amortize over the term of the obli-
gation, and (B) contains a conditional right to refinance
or modify the unamortized principal at the maturity date
of the term, shall be considered to be an adjustable rate
mortgage for purposes of this Act.’’.
(c) TREATMENT OF LOAN MODIFICATIONS.—
245
(1) IN
GENERAL.—Section 3 of the Home-
owners Protection Act of 1998 (12 U.S.C. 4902) is
amended—
(A) 
by 
redesignating 
subsections 
(d)
through (f) as subsections (e) through (g), re-
spectively; and
(B) by inserting after subsection (c) the
following new subsection:
‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a
mortgagor and mortgagee (or holder of the mortgage)
agree to a modification of the terms or conditions of a
loan pursuant to a residential mortgage transaction, the
cancellation date, termination date, or final termination
shall be recalculated to reflect the modified terms and con-
ditions of such loan.’’.
(2) CONFORMING AMENDMENTS.—Section 4(a)
of the Homeowners Protection Act of 1998 (12
U.S.C. 4903(a)) is amended—
(A) in paragraph (1)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘section 3(f)(1)’’
and inserting ‘‘section 3(g)(1)’’;
(ii) in subparagraph (A)(ii)(IV), by
striking ‘‘section 3(f)’’ and inserting ‘‘sec-
tion 3(g)’’; and
246
(iii) in subparagraph (B)(iii), by strik-
ing ‘‘section 3(f)’’ and inserting ‘‘section
3(g)’’; and
(B) in paragraph (2), by striking ‘‘section
3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.
SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESI-
DENTIAL MORTGAGES.
(a) TERMINATION OF PRIVATE MORTGAGE INSUR-
ANCE.—Section 3 of the Homeowners Protection Act of
1998 (12 U.S.C. 4902) is amended—
(1) in subsection (c), by inserting ‘‘on residen-
tial mortgage transactions’’ after ‘‘imposed’’; and
(2) in subsection (g) (as so redesignated by sec-
tion 902(c)(1)(A) of this title)—
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘mort-
gage or’’;
(B) in paragraph (2), by striking ‘‘mort-
gage or’’; and
(C) in paragraph (3), by striking ‘‘mort-
gage or’’ and inserting ‘‘residential mortgage or
residential’’.
(b) DISCLOSURE REQUIREMENTS.—Section 4 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4903(a))
is amended—
247
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘mortgage or’’ the first
place it appears; and
(ii) by striking ‘‘mortgage or’’ the sec-
ond place it appears and inserting ‘‘resi-
dential’’; and
(B) in paragraph (2), by striking ‘‘mort-
gage or’’ and inserting ‘‘residential’’;
(2) in subsection (c), by striking ‘‘paragraphs
(1)(B) and (3) of subsection (a)’’ and inserting
‘‘subsection (a)(3)’’; and
(3) in subsection (d), by inserting before the pe-
riod at the end the following: ‘‘, which disclosures
shall relate to the mortgagor’s rights under this
Act’’.
(c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID
MORTGAGE INSURANCE.—Section 6 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4905) is amended—
(1) in subsection (c)—
(A) in the matter preceding paragraph (1),
by striking ‘‘a residential mortgage or’’; and
(B) in paragraph (2), by inserting ‘‘trans-
action’’ after ‘‘residential mortgage’’; and
248
(2) in subsection (d), by inserting ‘‘transaction’’
after ‘‘residential mortgage’’.
SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION
DATE.
Section 3 of the Homeowners Protection Act of 1998
(12 U.S.C. 4902) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by inserting after ‘‘cancellation date’’ the fol-
lowing: ‘‘or any later date that the mortgagor
fulfills all of the requirements under paragraphs
(1) through (4)’’;
(B) in paragraph (2), by striking ‘‘and’’ at
the end;
(C) by redesignating paragraph (3) as
paragraph (4); and
(D) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) is current on the payments required by the
terms of the residential mortgage transaction; and’’;
and
(2) in subsection (e)(1)(B) (as so redesignated
by section 902(c)(1)(A) of this title), by striking
‘‘subsection 
(a)(3)’’ 
and 
inserting 
‘‘subsection
(a)(4)’’.
249
SEC. 905. CLARIFICATION OF CANCELLATION AND TERMI-
NATION ISSUES AND LENDER PAID MORT-
GAGE INSURANCE DISCLOSURE REQUIRE-
MENTS.
(a) GOOD PAYMENT HISTORY.—Section 2(4) of the
Homeowners Protection Act of 1998 (12 U.S.C. 4901(4))
is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘the later of (i)’’ before
‘‘the date’’; and
(B) by inserting ‘‘, or (ii) the date that the
mortgagor submits a request for cancellation
under section 3(a)(1)’’ before the semicolon;
and
(2) in subparagraph (B)—
(A) by inserting ‘‘the later of (i)’’ before
‘‘the date’’; and
(B) by inserting ‘‘, or (ii) the date that the
mortgagor submits a request for cancellation
under section 3(a)(1)’’ before the period at the
end.
(b) AUTOMATIC TERMINATION.—Paragraph (2) of
section 3(b) of the Homeowners Protection Act of 1998
(12 U.S.C. 4902(b)(2)) is amended to read as follows:
‘‘(2) if the mortgagor is not current on the ter-
mination date, on the first day of the first month be-
250
ginning after the date that the mortgagor becomes
current on the payments required by the terms of
the residential mortgage transaction.’’
(c) PREMIUM PAYMENTS.—Section 3 of the Home-
owners Protection Act of 1998 (12 U.S.C. 4902) is
amended by adding at the end the following new sub-
section:
‘‘(h) ACCRUED OBLIGATION
FOR PREMIUM PAY-
MENTS.—The cancellation or termination under this sec-
tion of the private mortgage insurance of a mortgagor
shall not affect the rights of any mortgagee, servicer, or
mortgage insurer to enforce any obligation of such mort-
gagor for premium payments accrued prior to the date on
which such cancellation or termination occurred.’’.
SEC. 906. DEFINITIONS.
(a) REFINANCED.—Section 6(c)(1)(B)(ii) of the
Homeowners Protection Act of 1998 (12 U.S.C.
4905(c)(1)(B)(ii)) is amended by inserting after ‘‘refi-
nanced’’ the following: ‘‘(under the meaning given such
term in the regulations issued by the Board of Governors
of the Federal Reserve System to carry out the Truth in
Lending Act (15 U.S.C. 1601 et seq.))’’.
(b) MIDPOINT OF THE AMORTIZATION PERIOD.—
Section 2 of the Homeowners Protection Act of 1998 (12
U.S.C. 4901) is amended by inserting after paragraph (6)
251
(as added by section 902(a)(1)(D) of this Act) the fol-
lowing new paragraph:
‘‘(7) MIDPOINT
OF
THE
AMORTIZATION
PE-
RIOD.—The term ‘midpoint of the amortization pe-
riod’ means, with respect to a residential mortgage
transaction, the point in time that is halfway
through the period that begins upon the first day of
the amortization period established at the time a
residential mortgage transaction is consummated
and ends upon the completion of the entire period
over which the mortgage is scheduled to be amor-
tized.’’.
(c) ORIGINAL VALUE.—Section 2(12) of the Home-
owners Protection Act of 1998 (12 U.S.C. 4901(10)) (as
so redesignated by section 902(a)(1)(C) of this Act) is
amended—
(1) by inserting ‘‘transaction’’ after ‘‘a residen-
tial mortgage’’; and
(2) by adding at the end the following new sen-
tence: ‘‘In the case of a residential mortgage trans-
action for refinancing the principal residence of the
mortgagor, such term means only the appraised
value relied upon by the mortgagee to approve the
refinance transaction.’’.
252
(d) PRINCIPAL RESIDENCE.—Section 2 of the Home-
owners Protection Act of 1998 (12 U.S.C. 4901) is
amended—
(1) in paragraph (14) (as so redesignated by
section 902(a)(1)(C) of this Act) by striking ‘‘pri-
mary’’ and inserting ‘‘principal’’; and
(2) in paragraph (15) (as so redesignated by
section 902(a)(1)(C) of this Act) by striking ‘‘pri-
mary’’ and inserting ‘‘principal’’;
TITLE X—RURAL HOUSING
HOMEOWNERSHIP
SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER
HOUSING REPAIR LOAN PROGRAM.
The fourth sentence of section 504(a) of the Housing
Act of 1949 (42 U.S.C. 1474(a)) is amended by striking
‘‘$2,500’’ and inserting ‘‘$7,500’’.
SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM
LABOR HOUSING LOANS.
The first sentence of section 514(a) of the Housing
Act of 1949 (42 U.S.C. 1484(a)) is amended by striking
‘‘nonprofit limited partnership’’ and inserting ‘‘limited
partnership’’.
253
SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRAC-
TICES.
Section 515 of the Housing Act of 1949 (42 U.S.C.
1485) is amended by striking subsection (z) and inserting
the following new subsections:
‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIRE-
MENTS.—
‘‘(1) ACCOUNTING STANDARDS.—The Secretary
shall require that borrowers in programs authorized
by this section maintain accounting records in ac-
cordance with generally accepted accounting prin-
ciples for all projects that receive funds from loans
made or guaranteed by the Secretary under this sec-
tion.
‘‘(2) RECORD
RETENTION
REQUIREMENTS.—
The Secretary shall require that borrowers in pro-
grams authorized by this section retain for a period
of not less than 6 years and make available to the
Secretary in a manner determined by the Secretary,
all records required to be maintained under this sub-
section and other records identified by the Secretary
in applicable regulations.
‘‘(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE
OF HOUSING PROJECTS ASSETS AND INCOME.—
‘‘(1) ACTION
TO
RECOVER
ASSETS
OR
IN-
COME.—
254
‘‘(A) IN GENERAL.—The Secretary may re-
quest the Attorney General to bring an action
in a United States district court to recover any
assets or income used by any person in violation
of the provisions of a loan made or guaranteed
by the Secretary under this section or in viola-
tion of any applicable statute or regulation.
‘‘(B) IMPROPER
DOCUMENTATION.—For
purposes of this subsection, a use of assets or
income in violation of the applicable loan, loan
guarantee, statute, or regulation shall include
any use for which the documentation in the
books and accounts does not establish that the
use was made for a reasonable operating ex-
pense or necessary repair of the project or for
which the documentation has not been main-
tained in accordance with the requirements of
the Secretary and in reasonable condition for
proper audit.
‘‘(C) DEFINITION.—For the purposes of
this subsection, the term ‘person’ means—
‘‘(i) any individual or entity that bor-
rows funds in accordance with programs
authorized by this section;
255
‘‘(ii) any individual or entity holding
25 percent or more interest of any entity
that borrows funds in accordance with pro-
grams authorized by this section; and
‘‘(iii) any officer, director, or partner
of an entity that borrows funds in accord-
ance with programs authorized by this sec-
tion.
‘‘(2) AMOUNT RECOVERABLE.—
‘‘(A) IN GENERAL.—In any judgment fa-
vorable to the United States entered under this
subsection, the Attorney General may recover
double the value of the assets and income of the
project that the court determines to have been
used in violation of the provisions of a loan
made or guaranteed by the Secretary under this
section or any applicable statute or regulation,
plus all costs related to the action, including
reasonable attorney and auditing fees.
‘‘(B) 
APPLICATION
OF
RECOVERED
FUNDS.—Notwithstanding any other provision
of law, the Secretary may use amounts recov-
ered under this subsection for activities author-
ized under this section and such funds shall re-
main available for such use until expended.
256
‘‘(3) TIME LIMITATION.—Notwithstanding any
other provision of law, an action under this sub-
section may be commenced at any time during the
6-year period beginning on the date that the Sec-
retary discovered or should have discovered the vio-
lation of the provisions of this section or any related
statutes or regulations.
‘‘(4) CONTINUED
AVAILABILITY
OF
OTHER
REMEDIES.—The remedy provided in this subsection
is in addition to and not in substitution of any other
remedies available to the Secretary or the United
States.’’.
SEC. 1004. DEFINITION OF RURAL AREA.
The second sentence of section 520 of the Housing
Act of 1949 (42 U.S.C. 1490) is amended by striking
‘‘year 2000’’ and inserting ‘‘year 2010’’.
SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARM-
WORKERS PROJECTS.
The last sentence of section 521(a)(5)(A) of the
Housing Act of 1949 (42 U.S.C. 1490a(a)(5)(A)) is
amended by striking ‘‘project’’ and inserting ‘‘tenant or
unit’’.
257
SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUAR-
ANTEE PROGRAM.
Section 538 of the Housing Act of 1949 (42 U.S.C.
1490p–2) is amended—
(1) in subsection (c), by inserting ‘‘an Indian
organization,’’ after ‘‘thereof,’’;
(2) in subsection (f), by striking paragraph (1)
and inserting the following new paragraph:
‘‘(1) be made for a period of not less than 25
nor greater than 40 years from the date the loan
was made and may provide for amortization of the
loan over a period of not to exceed 40 years with a
final payment of the balance due at the end of the
loan term;’’;
(3) in subsection (i)(2), by striking ‘‘(A) con-
veyance to the Secretary’’ and all that follows
through ‘‘(C) assignment’’ and inserting ‘‘(A) sub-
mission to the Secretary of a claim for payment
under the guarantee, and (B) assignment’’;
(4) in subsection (s), by adding at the end the
following new subsection:
‘‘(4) INDIAN ORGANIZATION.—The term ‘Indian
organization’ means the governing body of an Indian
tribe, band, group, pueblo, or community, including
native villages or native groups, as defined by the
Alaska Claims Settlement Act (43 U.S.C. 1601 et
258
seq.), (including corporations organized by the
Kenai, Juneau, Sitka, and Kodiak) which is eligible
for services from the Bureau of Indian Affairs or an
entity established or recognized by the governing
body for the purpose of financing economic develop-
ment.’’;
(5) in subsection (t), by inserting before the pe-
riod at the end the following: ‘‘to provide guarantees
under this section for eligible loans having an aggre-
gate principal amount of $500,000,000’’;
(6) by striking subsection (l);
(7) by redesignating subsections (m) through
(u) as subsections (l) through (t), respectively;
(8) by adding at the end the following new sub-
sections:
‘‘(u) FEE AUTHORITY.—Any amounts collected by
the Secretary pursuant to the fees charged to lenders for
loan guarantees issued under this section shall be used
to offset costs (as defined by section 502 of the Congres-
sional Budget Act of 1974 (2 U.S.C. 661a)) of loan guar-
antees made under this section.
‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVA-
TION LANDS.—In the event of a default involving a loan
to an Indian tribe or tribal corporation made under this
section which is secured by an interest in land within such
259
tribe’s reservation (as determined by the Secretary of the
Interior), including a community in Alaska incorporated
by the Secretary of the Interior pursuant to the Indian
Reorganization Act (25 U.S.C. 461 et seq.), the lender
shall only pursue liquidation after offering to transfer the
account to an eligible tribal member, the tribe, or the In-
dian housing authority serving the tribe. If the lender sub-
sequently proceeds to liquidate the account, the lender
shall not sell, transfer, or otherwise dispose of or alienate
the property except to one of the entities described in the
preceding sentence.’’.
SEC. 1007. ENFORCEMENT PROVISIONS.
(a) IN GENERAL.—Title V of the Housing Act of
1949 (42 U.S.C. 1471 et seq.) is amended by adding after
section 542 the following:
‘‘SEC. 543. ENFORCEMENT PROVISIONS.
‘‘(a) EQUITY SKIMMING.—
‘‘(1) CRIMINAL
PENALTY.—Whoever, as an
owner, agent, employee, or manager, or is otherwise
in custody, control, or possession of property that is
security for a loan made or guaranteed under this
title, willfully uses, or authorizes the use, of any part
of the rents, assets, proceeds, income, or other funds
derived from such property, for any purpose other
than to meet actual, reasonable, and necessary ex-
260
penses of the property, or for any other purpose not
authorized by this title or the regulations adopted
pursuant to this title, shall be fined under title 18,
United States Code, or imprisoned not more than 5
years, or both.
‘‘(2) CIVIL SANCTIONS.—An entity or individual
who as an owner, operator, employee, or manager, or
who acts as an agent for a property that is security
for a loan made or guaranteed under this title where
any part of the rents, assets, proceeds, income, or
other funds derived from such property are used for
any purpose other than to meet actual, reasonable,
and necessary expenses of the property, or for any
other purpose not authorized by this title or the reg-
ulations adopted pursuant to this title, shall be sub-
ject to a fine of not more than $25,000 per viola-
tion. The sanctions provided in this paragraph may
be imposed in addition to any other civil sanctions
or civil monetary penalties authorized by law.
‘‘(b) CIVIL MONETARY PENALTIES.—
‘‘(1) IN GENERAL.—The Secretary may, after
notice and opportunity for a hearing, impose a civil
monetary penalty in accordance with this subsection
against any individual or entity, including its own-
ers, officers, directors, general partners, limited
261
partners, or employees, who knowingly and materi-
ally violate, or participate in the violation of, the
provisions of this title, the regulations issued by the
Secretary pursuant to this title, or agreements made
in accordance with this title, by—
‘‘(A) submitting information to the Sec-
retary that is false;
‘‘(B) providing the Secretary with false
certifications;
‘‘(C) failing to submit information re-
quested by the Secretary in a timely manner;
‘‘(D) failing to maintain the property sub-
ject to loans made or guaranteed under this
title in good repair and condition, as deter-
mined by the Secretary;
‘‘(E) failing to provide management for a
project which received a loan made or guaran-
teed under this title that is acceptable to the
Secretary; or
‘‘(F) failing to comply with the provisions
of applicable civil rights statutes and regula-
tions.
‘‘(2) CONDITIONS
FOR
RENEWAL
OR
EXTEN-
SION.—The Secretary may require that expiring loan
or assistance agreements entered into under this
262
title shall not be renewed or extended unless the
owner executes an agreement to comply with addi-
tional conditions prescribed by the Secretary, or exe-
cutes a new loan or assistance agreement in the
form prescribed by the Secretary.
‘‘(3) AMOUNT.—
‘‘(A) IN GENERAL.—The amount of a civil
monetary penalty imposed under this subsection
shall not exceed the greater of—
‘‘(i) twice the damages the Depart-
ment of Agriculture, the guaranteed lend-
er, or the project that is secured for a loan
under this section suffered or would have
suffered as a result of the violation; or
‘‘(ii) $50,000 per violation.
‘‘(B) DETERMINATION.—In determining
the amount of a civil monetary penalty under
this subsection, the Secretary shall take into
consideration—
‘‘(i) the gravity of the offense;
‘‘(ii) any history of prior offenses by
the violator (including offenses occurring
prior to the enactment of this section);
‘‘(iii) the ability of the violator to pay
the penalty;
263
‘‘(iv) any injury to tenants;
‘‘(v) any injury to the public;
‘‘(vi) any benefits received by the vio-
lator as a result of the violation;
‘‘(vii) deterrence of future violations;
and
‘‘(viii) such other factors as the Sec-
retary may establish by regulation.
‘‘(4) PAYMENT OF PENALTIES.—No payment of
a penalty assessed under this section may be made
from funds provided under this title or from funds
of a project which serve as security for a loan made
or guaranteed under this title.
‘‘(5) REMEDIES FOR NONCOMPLIANCE.—
‘‘(A) JUDICIAL INTERVENTION.—If a per-
son or entity fails to comply with a final deter-
mination by the Secretary imposing a civil mon-
etary penalty under this subsection, the Sec-
retary may request the Attorney General of the
United States to bring an action in an appro-
priate United States district court to obtain a
monetary judgment against such individual or
entity and such other relief as may be available.
The monetary judgment may, in the court’s dis-
cretion, include the attorney’s fees and other
264
expenses incurred by the United States in con-
nection with the action.
‘‘(B) REVIEWABILITY
OF
DETERMINA-
TION.—In an action under this paragraph, the
validity and appropriateness of a determination
by the Secretary imposing the penalty shall not
be subject to review.’’.
(b) CONFORMING AMENDMENT.—Section 514 of the
Housing Act of 1949 (42 U.S.C. 1484) is amended by
striking subsection (j).
SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES
CODE.
(a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of
title 18, United States Code, is amended by inserting ‘‘any
violation of section 543(a)(1) of the Housing Act of 1949
(relating to equity skimming),’’ after ‘‘coupons having a
value of not less than $5,000,’’.
(b) OBSTRUCTION OF FEDERAL AUDITS.—Section
1516(a) of title 18, United States Code, is amended by
inserting ‘‘or relating to any property that is security for
a loan that is made or guaranteed under title V of the
Housing Act of 1949,’’ before ‘‘shall be fined under this
title’’.
265
TITLE XI—MANUFACTURED
HOUSING IMPROVEMENT
SEC. 1101. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Manufactured Housing Improvement Act’’.
(b) REFERENCES.—Whenever in this title an amend-
ment is expressed in terms of an amendment to, or repeal
of, an Act, a section, or any other provision, the reference
shall be considered to be made to that section or other
provision of the National Manufactured Housing Con-
struction and Safety Standards Act of 1974 (42 U.S.C.
5401 et seq.).
SEC. 1102. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as
follows:
‘‘FINDINGS AND PURPOSES
‘‘SEC. 602. (a) FINDINGS.—The Congress finds
that—
‘‘(1) manufactured housing plays a vital role in
meeting the housing needs of the Nation; and
‘‘(2) manufactured homes provide a significant
resource for affordable homeownership and rental
housing accessible to all Americans.
‘‘(b) PURPOSES.—The purposes of this title are—
266
‘‘(1) to protect the quality, durability, safety,
and affordability of manufactured homes;
‘‘(2) to facilitate the availability of affordable
manufactured homes and to increase homeownership
for all Americans;
‘‘(3) to provide for the establishment of prac-
tical, uniform, and, to the extent possible, perform-
ance-based Federal construction standards;
‘‘(4) to encourage innovative and cost-effective
construction techniques;
‘‘(5) to protect residents of manufactured
homes with respect to personal injuries and the
amount of insurance costs and property damages in
manufactured housing, consistent with the other
purposes of this section;
‘‘(6) to establish a balanced consensus process
for the development, revision, and interpretation of
Federal construction and safety standards for manu-
factured homes and related regulations for the en-
forcement of such standards;
‘‘(7) to ensure uniform and effective enforce-
ment of Federal construction and safety standards
for manufactured homes; and
‘‘(8) to ensure that the public interest in, and
need for, affordable manufactured housing is duly
267
considered in all determinations relating to the Fed-
eral standards and their enforcement.’’.
SEC. 1103. DEFINITIONS.
(a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is
amended—
(1) in paragraph (2), by striking ‘‘dealer’’ and
inserting ‘‘retailer’’;
(2) in paragraph (12), by striking ‘‘and’’ at the
end;
(3) in paragraph (13), by striking the period at
the end and inserting a semicolon; and
(4) by adding at the end the following new
paragraphs:
‘‘(14) ‘administering organization’ means the
recognized, voluntary, private sector, consensus
standards body with specific experience in developing
model residential building codes and standards in-
volving all disciplines regarding construction and
safety that administers the consensus standards de-
velopment process;
‘‘(15) ‘consensus committee’ means the com-
mittee established under section 604(a)(3);
‘‘(16) ‘consensus standards development proc-
ess’ means the process by which additions, revisions,
and interpretations to the Federal manufactured
268
home construction and safety standards and enforce-
ment regulations shall be developed and rec-
ommended to the Secretary by the consensus com-
mittee;
‘‘(17) ‘primary inspection agency’ means a
State agency or private organization that has been
approved by the Secretary to act as a design ap-
proval primary inspection agency or a production in-
spection primary inspection agency, or both;
‘‘(18) ‘design approval primary inspection agen-
cy’ means a State agency or private organization
that has been approved by the Secretary to evaluate
and either approve or disapprove manufactured
home designs and quality control procedures;
‘‘(19) ‘production inspection primary inspection
agency’ means a State agency or private organiza-
tion that has been approved by the Secretary to
evaluate the ability of manufactured home manufac-
turing plants to comply with approved quality con-
trol procedures and with the Federal manufactured
home construction and safety standards promulgated
hereunder, including the inspection of homes in the
plant;
‘‘(20) ‘installation standards’ means reasonable
specifications for the installation of a manufactured
269
home at the place of occupancy to ensure proper
siting, the joining of all sections of the home, and
the installation of stabilization, support, or anchor-
ing systems; and
‘‘(21) ‘monitoring’ means the process of peri-
odic review of the primary inspection agencies, by
the Secretary or by a State agency under an ap-
proved State plan pursuant to section 623, in ac-
cordance with regulations promulgated under this
title, giving due consideration to the recommenda-
tions of the consensus committee as provided in sec-
tion 604(b), which process shall be for the purpose
of ensuring that the primary inspection agencies are
discharging their duties under this title.’’.
(b) 
CONFORMING
AMENDMENTS.—The 
Act 
is
amended—
(1) in section 613 (42 U.S.C. 5412), by striking
‘‘dealer’’ each place it appears and inserting ‘‘re-
tailer’’;
(2) in section 614(f) (42 U.S.C. 5413(f)), by
striking ‘‘dealer’’ each place it appears and inserting
‘‘retailer’’;
(3) in section 615 (42 U.S.C. 5414)—
(A) in subsection (b)(1), by striking ‘‘deal-
er’’ and inserting ‘‘retailer’’;
270
(B) in subsection (b)(3), by striking ‘‘deal-
er or dealers’’ and inserting ‘‘retailer or retail-
ers’’; and
(C) in subsections (d) and (f), by striking
‘‘dealers’’ each place it appears and inserting
‘‘retailers’’;
(4) in section 616 (42 U.S.C. 5415), by striking
‘‘dealer’’ and inserting ‘‘retailer’’; and
(5) in section 623(c)(9), by striking ‘‘dealers’’
and inserting ‘‘retailers’’.
SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUC-
TION AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5403) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following new subsections:
‘‘(a) ESTABLISHMENT.—
‘‘(1) AUTHORITY.—The Secretary shall estab-
lish, by order, appropriate Federal manufactured
home construction and safety standards, each of
which—
‘‘(A) shall—
‘‘(i) be reasonable and practical;
‘‘(ii) meet high standards of protec-
tion consistent with the enumerated pur-
poses of this title; and
271
‘‘(iii) where appropriate, be perform-
ance-based and objectively stated; and
‘‘(B) except as provided in subsection (b),
shall be established in accordance with the con-
sensus standards development process.
‘‘(2) CONSENSUS
STANDARDS
AND
REGU-
LATORY DEVELOPMENT PROCESS.—
‘‘(A) INITIAL
AGREEMENT.—Not later
than 180 days after the date of the enactment
of the Manufactured Housing Improvement
Act, the Secretary shall enter into a contract
with an administering organization. The con-
tractual agreement shall—
‘‘(i) terminate on the date on which a
contract is entered into under subpara-
graph (B); and
‘‘(ii) require the administering organi-
zation to—
‘‘(I) recommend the initial mem-
bers of the consensus committee
under paragraph (3);
‘‘(II) administer the consensus
standards development process until
the termination of that agreement;
and
272
‘‘(III) administer the consensus
development and interpretation proc-
ess for procedural and enforcement
regulations and regulations specifying
the permissible scope and conduct of
monitoring until the termination of
that agreement.
‘‘(B) COMPETITIVELY
PROCURED
CON-
TRACT.—Upon the expiration of the 4-year pe-
riod beginning on the date on which all mem-
bers of the consensus committee are appointed
under paragraph (3), the Secretary shall, using
competitive procedures (as such term is defined
in section 4 of the Office of Federal Procure-
ment Policy Act), enter into a competitively
awarded contract with an administering organi-
zation. The administering organization shall ad-
minister the consensus process for the develop-
ment and interpretation of the Federal stand-
ards, the procedural and enforcement regula-
tions and regulations specifying the permissible
scope and conduct of monitoring in accordance
with this title.
‘‘(C) 
PERFORMANCE
REVIEW.—The
Secretary—
273
‘‘(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
274
interpret the procedural and enforcement
regulations, including regulations speci-
fying the permissible scope and conduct of
monitoring in accordance with this sub-
section; and
‘‘(iii) be organized and carry out its
business in a manner that guarantees a
fair opportunity for the expression and
consideration of various positions and for
public participation.
‘‘(B) MEMBERSHIP.—The consensus com-
mittee shall be composed of—
‘‘(i) 21 voting members appointed by
the Secretary, after consideration of the
recommendations made by the admin-
istering organization, from among individ-
uals who are qualified by background and
experience to participate in the work of the
consensus committee; and
‘‘(ii) one member appointed by the
Secretary to represent the Secretary on the
consensus committee, who shall be a non-
voting member.
‘‘(C) DISAPPROVAL.—The Secretary shall
state, in writing, the reasons for failing to ap-
275
point any individual recommended under para-
graph (2)(A)(ii)(I).
‘‘(D) SELECTION
PROCEDURES
AND
RE-
QUIREMENTS.—Each member shall be ap-
pointed in accordance with the selection proce-
dures, which shall be established by the Sec-
retary and which shall be based on the proce-
dures for consensus committees promulgated by
the American National Standards Institute (or
successor organization), to ensure equal rep-
resentation on the consensus committee of the
following interest categories:
‘‘(i) PRODUCERS.—Seven producers or
retailers of manufactured housing.
‘‘(ii) USERS.—Seven persons rep-
resenting consumer interests, such as con-
sumer organizations, recognized consumer
leaders, and owners who are residents of
manufactured homes.
‘‘(iii) GENERAL INTEREST AND PUB-
LIC
OFFICIALS.—Seven general interest
and public official members.
‘‘(E) BALANCING OF INTERESTS.—
276
‘‘(i) 
IN
GENERAL.—In 
order 
to
achieve a proper balance of interests on
the consensus committee—
‘‘(I) the Secretary shall ensure
that all directly and materially af-
fected interests have the opportunity
for fair and equitable participation
without dominance by any single in-
terest; and
‘‘(II) the Secretary may reject
the appointment of any one or more
individuals in order to ensure that
there is not dominance by any single
interest.
‘‘(ii) DOMINANCE DEFINED.—In this
subparagraph, the term ‘dominance’ means
a position or exercise of dominant author-
ity, leadership, or influence by reason of
superior leverage, strength, or representa-
tion.
‘‘(F) ADDITIONAL QUALIFICATIONS.—
‘‘(i) FINANCIAL INDEPENDENCE.—No
individual appointed under subparagraph
(D)(ii) shall have, and three of individuals
277
appointed under subparagraph (D)(iii)
shall not have—
‘‘(I) a significant financial inter-
est in any segment of the manufac-
tured housing industry; or
‘‘(II) a significant relationship to
any person engaged in the manufac-
tured housing industry.
‘‘(ii) POST-EMPLOYMENT
BAN.—An
individual appointed under clause (ii) or
(iii) of subparagraph (D) shall be subject
to a ban disallowing compensation from
the manufactured housing industry during
the period of, and for the 1-year period
after, membership of that individual on the
consensus committee.
‘‘(G) MEETINGS.—
‘‘(i) NOTICE; OPEN TO PUBLIC.—The
consensus committee shall provide advance
notice of each meeting of the consensus
committee to the Secretary and publish ad-
vance notice of each such meeting in the
Federal Register. All meetings of the con-
sensus committee shall be open to the pub-
lic.
278
‘‘(ii) REIMBURSEMENT.—Members of
the consensus committee in attendance at
the meetings shall be reimbursed for their
actual expenses as authorized by section
5703 of title 5, United States Code, for
persons employed intermittently in Govern-
ment service.
‘‘(H) INAPPLICABILITY OF OTHER LAWS.—
‘‘(i) ADVISORY COMMITTEE ACT.—The
consensus committee shall not be consid-
ered to be an advisory committee for pur-
poses of the Federal Advisory Committee
Act.
‘‘(ii) TITLE 18.—The members of the
consensus committee shall not be subject
to section 203, 205, 207, or 208 of title
18, United States Code, to the extent of
their proper participation as members of
the consensus committee.
‘‘(iii) ETHICS
IN
GOVERNMENT
ACT
OF 1978.—The Ethics in Government Act
of 1978 shall not apply to members of the
consensus committee to the extent of their
proper participation as members of the
consensus committee.
279
‘‘(I) 
ADMINISTRATION.—The 
consensus
committee and the administering organization
shall—
‘‘(i) operate in conformance with the
procedures established by the American
National Standards Institute for the devel-
opment and coordination of American Na-
tional Standards; and
‘‘(ii) apply to the American National
Standards Institute and take such other
actions as may be necessary to obtain ac-
creditation from the American National
Standards Institute.
‘‘(J) STAFF.—The administering organiza-
tion shall, upon the request of the consensus
committee, provide reasonable staff resources to
the consensus committee. Upon a showing of
need, the Secretary shall furnish technical sup-
port to any of the various interest categories on
the consensus committee.
‘‘(K) DATE OF INITIAL APPOINTMENTS.—
The initial appointments of all of the members
of the consensus committee shall be completed
not later than 90 days after the date on which
an administration agreement under paragraph
280
(2)(A) is completed with the administering or-
ganization.
‘‘(4) REVISIONS OF STANDARDS.—
‘‘(A) IN GENERAL.—Beginning on the date
on which all members of the consensus com-
mittee are appointed under paragraph (3), the
consensus committee shall, not less than once
during each 2-year period—
‘‘(i) consider revisions to the Federal
manufactured home construction and safe-
ty standards; and
‘‘(ii) submit proposed revised stand-
ards and regulations, if approved in a vote
of the consensus committee by two-thirds
of the members, to the Secretary in the
form of a proposed rule, including an eco-
nomic analysis.
‘‘(B) PUBLICATION OF PROPOSED REVISED
STANDARDS.—
‘‘(i) PUBLICATION BY SECRETARY.—
The consensus committee shall provide a
proposed revised standard under subpara-
graph (A)(ii) to the Secretary who shall,
not later than 30 days after receipt, pub-
lish such proposed revised standard in the
281
Federal Register for notice and comment
in accordance with section 553 of title 5,
United States Code. Unless clause (ii) ap-
plies, the Secretary shall provide an oppor-
tunity for public comment on such pro-
posed revised standard in accordance with
such section 553 and any such comments
shall be submitted directly to the con-
sensus committee without delay.
‘‘(ii) PUBLICATION
OF
REJECTED
PROPOSED
REVISED
STANDARD.—If the
Secretary rejects the proposed revised
standard, the Secretary shall publish the
rejected proposed revised standard in the
Federal Register with the reasons for re-
jection and any recommended modifica-
tions set forth.
‘‘(C) PRESENTATION
OF
PUBLIC
COM-
MENTS; PUBLICATION OF RECOMMENDED REVI-
SIONS.—
‘‘(i) 
PRESENTATION.—Any 
public
comments, views, and objections to a pro-
posed revised standard published under
subparagraph (B) shall be presented by
the Secretary to the consensus committee
282
upon their receipt and in the manner re-
ceived, in accordance with procedures es-
tablished by the American National Stand-
ards Institute.
‘‘(ii) PUBLICATION
BY
THE
SEC-
RETARY.—The consensus committee shall
provide to the Secretary any revisions pro-
posed by the consensus committee, which
the Secretary shall, not later than 30 cal-
endar days after receipt, cause to be pub-
lished in the Federal Register as a notice
of the recommended revisions of the con-
sensus committee to the standard, a notice
of the submission of the recommended re-
visions to the Secretary, and a description
of the circumstances under which the pro-
posed revised standards could become ef-
fective.
‘‘(iii) PUBLICATION
OF
REJECTED
PROPOSED
REVISED
STANDARD.—If the
Secretary rejects the proposed revised
standard, the Secretary shall publish the
rejected proposed revised standard in the
Federal Register with the reasons for re-
283
jection and any recommended modifica-
tions set forth.
‘‘(5) REVIEW BY THE SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary shall
either adopt, modify, or reject a standard, as
submitted by the consensus committee under
paragraph (4)(A).
‘‘(B) TIMING.—Not later than 12 months
after the date on which a standard is submitted
to the Secretary by the consensus committee,
the Secretary shall take action regarding such
standard under subparagraph (C).
‘‘(C) PROCEDURES.—If the Secretary—
‘‘(i) adopts a standard recommended
by the consensus committee, the Secretary
shall—
‘‘(I) issue a final order without
further rulemaking; and
‘‘(II) cause the final order to be
published in the Federal Register;
‘‘(ii) determines that any standard
should be rejected, the Secretary shall—
‘‘(I) reject the standard; and
‘‘(II) cause to be published in the
Federal Register a notice to that ef-
284
fect, together with the reason or rea-
sons for rejecting the proposed stand-
ard; or
‘‘(iii) determines that a standard rec-
ommended by the consensus committee
should be modified, the Secretary shall—
‘‘(I) cause the proposed modified
standard to be published in the Fed-
eral Register, together with an expla-
nation of the reason or reasons for the
determination of the Secretary; and
‘‘(II) provide an opportunity for
public comment in accordance with
section 553 of title 5, United States
Code.
‘‘(D) FINAL ORDER.—Any final standard
under this paragraph shall become effective
pursuant to subsection (c).
‘‘(6) FAILURE TO ACT.—If the Secretary fails
to take final action under paragraph (5) and to pub-
lish notice of the action in the Federal Register be-
fore the expiration of the 12-month period beginning
on the date on which the proposed standard is sub-
mitted to the Secretary under paragraph (4)(A)—
285
‘‘(A) the recommendations of the con-
sensus committee—
‘‘(i) shall be considered to have been
adopted by the Secretary; and
‘‘(ii) shall take effect upon the expira-
tion of the 180-day period that begins
upon the conclusion of such 12-month pe-
riod; and
‘‘(B) not later than 10 days after the expi-
ration of such 12-month period, the Secretary
shall cause to be published in the Federal Reg-
ister a notice of the failure of the Secretary to
act, the revised standard, and the effective date
of the revised standard, which notice shall be
deemed to be an order of the Secretary approv-
ing the revised standards proposed by the con-
sensus committee.
‘‘(b) OTHER ORDERS.—
‘‘(1) REGULATIONS.—The Secretary may issue
procedural and enforcement regulations and revision
to existing regulations as necessary to implement the
provisions of this title. The consensus committee
may submit to the Secretary proposed procedural
and enforcement regulations and recommendations
for the revision of such regulations.
286
‘‘(2) INTERPRETATIVE BULLETINS.—The Sec-
retary may issue interpretative bulletins to clarify
the meaning of any Federal manufactured home
construction and safety standard or procedural and
enforcement regulation. The consensus committee
may submit to the Secretary proposed interpretative
bulletins to clarify the meaning of any Federal man-
ufactured home construction and safety standard or
procedural and enforcement regulation.
‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be-
fore issuing a procedural or enforcement regulation
or an interpretative bulletin—
‘‘(A) the Secretary shall—
‘‘(i) submit the proposed procedural
or enforcement regulation or interpretative
bulletin to the consensus committee; and
‘‘(ii) provide the consensus committee
with a period of 120 days to submit writ-
ten comments to the Secretary on the pro-
posed procedural or enforcement regulation
or the interpretative bulletin; and
‘‘(B) if the Secretary rejects any signifi-
cant comment provided by the consensus com-
mittee under subparagraph (A), the Secretary
shall provide a written explanation of the rea-
287
sons for the rejection to the consensus com-
mittee; and
‘‘(C) following compliance with subpara-
graphs (A) and (B), the Secretary shall—
‘‘(i) cause the proposed regulation or
interpretative bulletin and the consensus
committee’s written comments along with
the Secretary’s response thereto to be pub-
lished in the Federal Register; and
‘‘(ii) provide an opportunity for public
comment in accordance with section 553 of
title 5, United States Code.
‘‘(4) REQUIRED ACTION.—The Secretary shall
act on any proposed regulation or interpretative bul-
letin submitted by the consensus committee by ap-
proving or rejecting the proposal within 120 days
from the date the proposal is received by the Sec-
retary. The Secretary shall either—
‘‘(A) approve the proposal and cause the
proposed regulation or interpretative bulletin to
be published for public comment in accordance
with section 553 of title 5, United States Code;
or
‘‘(B) reject the proposed regulation or in-
terpretative bulletin and—
288
‘‘(i) provide a written explanation of
the reasons for rejection to the consensus
committee; and
‘‘(ii) cause the proposed regulation
and the written explanation for the rejec-
tion to be published in the Federal Reg-
ister.
‘‘(5) AUTHORITY TO ACT AND EMERGENCY.—If
the Secretary determines, in writing, that such ac-
tion is necessary to address an issue on which the
Secretary determines that the consensus committee
has not made a timely recommendation following a
request by the Secretary, or in order to respond to
an emergency which jeopardizes the public health or
safety, the Secretary may issue an order that is not
developed under the procedures set forth in sub-
section (a) or in this subsection, if the Secretary—
‘‘(A) provides to the consensus committee
a written description and sets forth the reasons
why action is necessary and all supporting doc-
umentation; and
‘‘(B) issues the order after notice and an
opportunity for public comment in accordance
with section 553 of title 5, United States Code,
and publishes the order in the Federal Register.
289
‘‘(6) CHANGES.—Any statement of policies,
practices, or procedures relating to construction and
safety standards, inspections, monitoring, or other
enforcement activities which constitutes a statement
of general or particular applicability and future off-
set and decisions to implement, interpret, or pre-
scribe law or policy by the Secretary is subject to the
provisions of subsection (a) or (b) of this subsection.
Any change adopted in violation of the provisions of
subsection (a) or (b) of this subsection is void.
‘‘(7) TRANSITION.—Until the date that the con-
sensus committee is appointed pursuant to section
604(a)(3), the Secretary may issue proposed orders
that are not developed under the procedures set
forth in this section for new and revised standards.’’;
(2) in subsection (d), by adding at the end the
following: ‘‘Federal preemption under this subsection
shall be broadly and liberally construed to ensure
that disparate State or local requirements or stand-
ards do not affect the uniformity and comprehen-
siveness of the standards promulgated hereunder nor
the Federal superintendence of the manufactured
housing industry as established by this title. Subject
to section 605, there is reserved to each State the
right to establish standards for the stabilizing and
290
support systems of manufactured homes sited within
that State, and for the foundations on which manu-
factured homes sited within that State are installed,
and the right to enforce compliance with such stand-
ards, except that such standards shall be consistent
with the purposes of this title and shall be consistent
with the design of the manufacturer.’’;
(3) by striking subsection (e);
(4) in subsection (f), by striking the subsection
designation and all of the matter that precedes para-
graph (1) and inserting the following:
‘‘(e) CONSIDERATIONS IN ESTABLISHING AND IN-
TERPRETING STANDARDS AND REGULATIONS.—The con-
sensus committee, in recommending standards, regula-
tions, and interpretations, and the Secretary, in estab-
lishing standards or regulations, or issuing interpretations
under this section, shall—’’;
(5) by striking subsection (g);
(6) in the first sentence of subsection (j), by
striking ‘‘subsection (f)’’ and inserting ‘‘subsection
(e)’’; and
(7) by redesignating subsections (h), (i), and
(j), as subsections (f), (g), and (h), respectively.
291
SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED
HOME ADVISORY COUNCIL; MANUFACTURED
HOME INSTALLATION.
(a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is
amended to read as follows:
‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.
‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN-
STRUCTIONS.—A manufacturer shall provide with each
manufactured home, design and instructions for the in-
stallation of the manufactured home that have been ap-
proved by a design approval primary inspection agency.
After establishment of model standards under subsection
(b)(2), a design approval primary inspection agency may
not give such approval unless a design and instruction pro-
vides equal or greater protection than the protection pro-
vided under such model standards.
‘‘(b) MODEL MANUFACTURED HOME INSTALLATION
STANDARDS.—
‘‘(1) PROPOSED MODEL STANDARDS.—Not later
than 18 months after the date on which the initial
appointments of all of the members of the consensus
committee are completed, the consensus committee
shall develop and submit to the Secretary proposed
model manufactured home installation standards,
which shall, to the maximum extent possible, taking
292
into account the factors described in section 604(e),
be consistent with—
‘‘(A) the home designs that have been ap-
proved by a design approval primary inspection
agency; and
‘‘(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
‘‘(2) ESTABLISHMENT
OF
MODEL
STAND-
ARDS.—Not later than 12 months after receiving the
proposed model standards submitted under para-
graph (1), the Secretary shall develop and establish
model manufactured home installation standards,
which shall to the maximum extent possible, taking
into account the factors described in section 604(e),
be consistent with—
‘‘(A) the home designs that have been ap-
proved by a design approval primary inspection
agency; and
‘‘(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
‘‘(3) FACTORS FOR CONSIDERATION.—
‘‘(A) CONSENSUS COMMITTEE.—In devel-
oping the proposed model standards under
293
paragraph (1), the consensus committee shall
consider the factors described in section 604(e).
‘‘(B) SECRETARY.—In developing and es-
tablishing the model standards under paragraph
(2), the Secretary shall consider the factors de-
scribed in section 604(e).
‘‘(4) 
ISSUANCE.—The 
model 
manufactured
home installation standards shall be issued after no-
tice and an opportunity for public comment in ac-
cordance with section 553 of title 5, United States
Code.
‘‘(c) MANUFACTURED HOME INSTALLATION PRO-
GRAMS.—
‘‘(1) PROTECTION OF MANUFACTURED HOUS-
ING RESIDENTS DURING INITIAL PERIOD.—During
the 5-year period beginning on the date of the enact-
ment of the Manufactured Housing Improvement
Act, no State or manufacturer may establish or im-
plement any installation standards that, in the de-
termination of the Secretary, provide less protection
to the residents of manufactured homes than the
protection provided by the installation standards in
effect with respect to the State or manufacturer, as
applicable, on the date of the enactment of the Man-
ufactured Housing Improvement Act.
294
‘‘(2) INSTALLATION STANDARDS.—
‘‘(A) ESTABLISHMENT
OF
INSTALLATION
PROGRAM.—Not later than the expiration of the
5-year period described in paragraph (1), the
Secretary shall establish an installation pro-
gram that meets the requirements of paragraph
(3) for the enforcement of installation stand-
ards in each State described in subparagraph
(B).
‘‘(B) IMPLEMENTATION OF INSTALLATION
PROGRAM.—Beginning on the expiration of the
5-year period described in paragraph (1), the
Secretary shall implement the installation pro-
gram established under subparagraph (A) in
each State that does not have an installation
program established by State law that meets
the requirements of paragraph (3).
‘‘(C) CONTRACTING OUT OF IMPLEMENTA-
TION.—In carrying out subparagraph (B), the
Secretary may contract with an appropriate
agent to implement the installation program es-
tablished under that subparagraph.
‘‘(3) REQUIREMENTS.—An installation program
meets the requirements of this paragraph if it is a
295
program regulating the installation of manufactured
homes that includes—
‘‘(A) installation standards that, in the de-
termination of the Secretary, provide protection
to the residents of manufactured homes that
equals or exceeds the protection provided to
those residents by—
‘‘(i) the model manufactured home in-
stallation standards established under sub-
section (b); or
‘‘(ii) the designs and instructions pro-
vided by manufacturers under subsection
(a), if the Secretary determines that such
designs and instructions provide protection
to the residents of the manufactured home
that equals or exceeds the protection pro-
vided by the model manufactured home in-
stallation standards established under sub-
section (b);
‘‘(B) the training and licensing of manu-
factured home installers; and
‘‘(C) inspection of the installation of manu-
factured homes.’’.
(b) CONFORMING AMENDMENTS.—Section 623(c)
(42 U.S.C. 5422(c)) is amended—
296
(1) in paragraph (10), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (11) as para-
graph (13); and
(3) by inserting after paragraph (10) the fol-
lowing:
‘‘(11) with respect to any State plan submitted
on or after the expiration of the 5-year period begin-
ning on the date of the enactment of the Manufac-
tured Housing Improvement Act, provides for an in-
stallation program established by State law that
meets the requirements of section 605(c)(3);’’.
SEC. 1106. PUBLIC INFORMATION.
Section 607 (42 U.S.C. 5406) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘to the Secretary’’ after
‘‘submit’’; and
(B) by adding at the end the following:
‘‘The Secretary shall submit such cost and
other information to the consensus committee
for evaluation.’’;
(2) in subsection (d), by inserting ‘‘, the con-
sensus committee,’’ after ‘‘public’’; and
297
(3) by striking subsection (c) and redesignating
subsections (d) and (e) as subsections (c) and (d),
respectively.
SEC. 1107. RESEARCH, TESTING, DEVELOPMENT, AND
TRAINING.
(a) IN
GENERAL.—Section 608(a) (42 U.S.C.
5407(a)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following new
paragraphs:
‘‘(4) encouraging the government sponsored
housing entities to actively develop and implement
secondary market securitization programs for FHA
manufactured home loans and those of other loan
programs, as appropriate, thereby promoting the
availability of affordable manufactured homes to in-
crease homeownership for all people in the United
States; and
‘‘(5) reviewing the programs for FHA manufac-
tured home loans and developing any changes to
such programs to promote the affordability of manu-
298
factured homes, including changes in loan terms,
amortization periods, regulations, and procedures.’’.
(b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is
amended by adding at the end the following new sub-
section:
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) GOVERNMENT SPONSORED HOUSING ENTI-
TIES.—The term ‘government sponsored housing en-
tities’ means the Government National Mortgage As-
sociation of the Department of Housing and Urban
Development, the Federal National Mortgage Asso-
ciation, and the Federal Home Loan Mortgage Cor-
poration.
‘‘(2) FHA MANUFACTURED HOME LOANS.—The
term ‘FHA manufactured home loan’ means a loan
that—
‘‘(A) is insured under title I of the Na-
tional Housing Act and is made for the purpose
of financing alterations, repairs, or improve-
ments on or in connection with an existing
manufactured home, the purchase of a manu-
factured home, the purchase of a manufactured
home and a lot on which to place the home, or
299
the purchase only of a lot on which to place a
manufactured home; or
‘‘(B) otherwise insured under the National
Housing Act and made for or in connection
with a manufactured home.’’.
SEC. 1108. PROHIBITED ACTS.
Section 610(a) (42 U.S.C. 5409(a)) is amended—
(1) in paragraph (5), by striking ‘‘or’’ at the
end;
(2) in paragraph (6), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(7) after the expiration of the period specified
in section 605(c)(2)(B), fail to comply with the re-
quirements for the installation program required by
section 605 in any State that has not adopted and
implemented a State installation program.’’.
SEC. 1109. FEES.
Section 620 (42 U.S.C. 5419) is amended to read as
follows:
‘‘AUTHORITY TO ESTABLISH FEES
‘‘SEC. 620. (a) IN GENERAL.—In carrying out in-
spections under this title, in developing standards and reg-
ulations pursuant to section 604, and in facilitating the
acceptance of the affordability and availability of manufac-