I
106TH CONGRESS
2D SESSION
H. R. 5640
To expand homeownership in the United States, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 5, 2000
Mr. LEACH (for himself and Mr. LAFALCE) introduced the following bill;
which was referred to the Committee on Banking and Financial Services
DECEMBER 5, 2000
Committee on Banking and Financial Services discharged; considered under
suspension of the rules and passed
A BILL
To expand homeownership in the United States, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘American Homeownership and Economic Opportunity
Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
Sec. 101. Short title.
Sec. 102. Grants for regulatory barrier removal strategies.
Sec. 103. Regulatory barriers clearinghouse.
TITLE II—HOMEOWNERSHIP FOR WORKING FAMILIES
Sec. 201. Home equity conversion mortgages.
Sec. 202. Assistance for self-help housing providers.
TITLE III—SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled families.
Sec. 303. Funding for pilot programs.
TITLE IV—PRIVATE MORTGAGE INSURANCE CANCELLATION AND
TERMINATION
Sec. 401. Short title.
Sec. 402. Changes in amortization schedule.
Sec. 403. Deletion of ambiguous references to residential mortgages.
Sec. 404. Cancellation rights after cancellation date.
Sec. 405. Clarification of cancellation and termination issues and lender paid
mortgage insurance disclosure requirements.
Sec. 406. Definitions.
TITLE V—NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A—Native American Housing
Sec. 501. Lands title report commission.
Sec. 502. Loan guarantees.
Sec. 503. Native American housing assistance.
Subtitle B—Native Hawaiian Housing
Sec. 511. Short title.
Sec. 512. Findings.
Sec. 513. Housing assistance.
Sec. 514. Loan guarantees.
TITLE VI—MANUFACTURED HOUSING IMPROVEMENT
Sec. 601. Short title; references.
Sec. 602. Findings and purposes.
Sec. 603. Definitions.
Sec. 604. Federal manufactured home construction and safety standards.
Sec. 605. Abolishment of National Manufactured Home Advisory Council; man-
ufactured home installation.
Sec. 606. Public information.
Sec. 607. Research, testing, development, and training.
Sec. 608. Prohibited acts.
Sec. 609. Fees.
Sec. 610. Dispute resolution.
Sec. 611. Elimination of annual reporting requirement.
Sec. 612. Effective date.
Sec. 613. Savings provisions.
TITLE VII—RURAL HOUSING HOMEOWNERSHIP
Sec. 701. Guarantees for refinancing of rural housing loans.
Sec. 702. Promissory note requirement under housing repair loan program.
Sec. 703. Limited partnership eligibility for farm labor housing loans.
Sec. 704. Project accounting records and practices.
Sec. 705. Definition of rural area.
Sec. 706. Operating assistance for migrant farmworkers projects.
Sec. 707. Multifamily rental housing loan guarantee program.
Sec. 708. Enforcement provisions.
Sec. 709. Amendments to title 18 of United States Code.
TITLE VIII—HOUSING FOR ELDERLY AND DISABLED FAMILIES
Sec. 801. Short title.
Sec. 802. Regulations.
Sec. 803. Effective date.
Subtitle A—Refinancing for Section 202 Supportive Housing for the Elderly
Sec. 811. Prepayment and refinancing.
Subtitle B—Authorization of Appropriations for Supportive Housing for the
Elderly and Persons With Disabilities
Sec. 821. Supportive housing for elderly persons.
Sec. 822. Supportive housing for persons with disabilities.
Sec. 823. Service coordinators and congregate services for elderly and disabled
housing.
Subtitle C—Expanding Housing Opportunities for the Elderly and Persons
With Disabilities
PART 1—HOUSING FOR THE ELDERLY
Sec. 831. Eligibility of for-profit limited partnerships.
Sec. 832. Mixed funding sources.
Sec. 833. Authority to acquire structures.
Sec. 834. Use of project reserves.
Sec. 835. Commercial activities.
PART 2—HOUSING FOR PERSONS WITH DISABILITIES
Sec. 841. Eligibility of for-profit limited partnerships.
Sec. 842. Mixed funding sources.
Sec. 843. Tenant-based assistance.
Sec. 844. Use of project reserves.
Sec. 845. Commercial activities.
PART 3—OTHER PROVISIONS
Sec. 851. Service coordinators.
Subtitle D—Preservation of Affordable Housing Stock
Sec. 861. Section 236 assistance.
TITLE IX—OTHER RELATED HOUSING PROVISIONS
Sec. 901. Extension of loan term for manufactured home lots.
Sec. 902. Use of section 8 vouchers for opt-outs.
Sec. 903. Maximum payment standard for enhanced vouchers.
Sec. 904. Use of section 8 assistance by ‘‘grand-families’’ to rent dwelling units
in assisted projects.
TITLE X—FEDERAL RESERVE BOARD PROVISIONS
Sec. 1001. Federal Reserve Board buildings.
Sec. 1002. Positions of Board of Governors of the Federal Reserve System on
the Executive schedule.
Sec. 1003. Amendments to the Federal Reserve Act.
TITLE XI—BANKING AND HOUSING AGENCY REPORTS
Sec. 1101. Short title.
Sec. 1102. Preservation of certain reporting requirements.
Sec. 1103. Coordination of reporting requirements.
Sec. 1104. Elimination of certain reporting requirements.
TITLE XII—FINANCIAL REGULATORY RELIEF
Sec. 1200. Short title.
Subtitle A—Improving Monetary Policy and Financial Institution Management
Practices
Sec. 1201. Repeal of savings association liquidity provision.
Sec. 1202. Noncontrolling investments by savings association holding compa-
nies.
Sec. 1203. Repeal of deposit broker notification and recordkeeping requirement.
Sec. 1204. Expedited procedures for certain reorganizations.
Sec. 1205. National bank directors.
Sec. 1206. Amendment to National Bank Consolidation and Merger Act.
Sec. 1207. Loans on or purchases by institutions of their own stock; affili-
ations.
Sec. 1208. Purchased mortgage servicing rights.
Subtitle B—Streamlining Activities of Institutions
Sec. 1211. Call report simplification.
Subtitle C—Streamlining Agency Actions
Sec. 1221. Elimination of duplicative disclosure of fair market value of assets
and liabilities.
Sec. 1222. Payment of interest in receiverships with surplus funds.
Sec. 1223. Repeal of reporting requirement on differences in accounting stand-
ards.
Sec. 1224. Extension of time.
Subtitle D—Technical Corrections
Sec. 1231. Technical correction relating to deposit insurance funds.
Sec. 1232. Rules for continuation of deposit insurance for member banks con-
verting charters.
Sec. 1233. Amendments to the Revised Statutes of the United States.
Sec. 1234. Conforming change to the International Banking Act of 1978.
TITLE 
I—REMOVAL 
OF 
BAR-
RIERS TO HOUSING AFFORD-
ABILITY
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Housing Affordability
Barrier Removal Act of 2000’’.
SEC. 102. GRANTS FOR REGULATORY BARRIER REMOVAL
STRATEGIES.
(a) AUTHORIZATION
OF
APPROPRIATIONS.—Sub-
section (a) of section 1204 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705c(a)) is
amended to read as follows:
‘‘(a) FUNDING.—There is authorized to be appro-
priated for grants under subsections (b) and (c) such sums
as may be necessary for each of fiscal years 2001, 2002,
2003, 2004, and 2005.’’.
(b) 
CONSOLIDATION
OF
STATE
AND
LOCAL
GRANTS.—Subsection (b) of section 1204 of the Housing
and Community Development Act of 1992 (42 U.S.C.
12705c(b)) is amended—
(1) in the subsection heading, by striking
‘‘STATE GRANTS’’ and inserting ‘‘GRANT AUTHOR-
ITY’’;
(2) in the matter preceding paragraph (1), by
inserting after ‘‘States’’ the following: ‘‘and units of
general local government (including consortia of
such governments)’’;
(3) in paragraph (3), by striking ‘‘a State pro-
gram to reduce State and local’’ and inserting
‘‘State, local, or regional programs to reduce’’;
(4) in paragraph (4), by inserting ‘‘or local’’
after ‘‘State’’; and
(5) in paragraph (5), by striking ‘‘State’’.
(c) REPEAL OF LOCAL GRANTS PROVISION.—Section
1204 of the Housing and Community Development Act
of 1992 (42 U.S.C. 12705c) is amended by striking sub-
section (c).
(d) APPLICATION AND SELECTION.—The last sen-
tence of section 1204(e) of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705c(e)) is
amended—
(1) by striking ‘‘and for the selection of units
of general local government to receive grants under
subsection (f)(2)’’; and
(2) by inserting before the period at the end the
following: ‘‘and such criteria shall require that grant
amounts be used in a manner consistent with the
strategy contained in the comprehensive housing af-
(A) in the matter preceding paragraph (1),
by striking ‘‘receive, collect, process, and assem-
ble’’ and inserting ‘‘serve as a national reposi-
tory to receive, collect, process, assemble, and
disseminate’’;
(B) in paragraph (1)—
(i) by striking ‘‘, including’’ and in-
serting ‘‘(including’’; and
(ii) by inserting before the semicolon
at the end the following: ‘‘), and the preva-
lence and effects on affordable housing of
such laws, regulations, and policies’’;
(C) in paragraph (2), by inserting before
the semicolon the following: ‘‘, including par-
ticularly innovative or successful activities,
strategies, and plans’’; and
(D) in paragraph (3), by inserting before
the period at the end the following: ‘‘, including
particularly innovative or successful strategies,
activities, and plans’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) by making available through a World Wide
Web site of the Department, by electronic mail, or
otherwise, provide to each housing agency of a unit
of general local government that serves an area hav-
ing a population greater than 100,000, an index of
all State and local strategies and plans submitted
under subsection (a) to the clearinghouse, which—
‘‘(A) shall describe the types of barriers to
affordable housing that the strategy or plan
was designed to ameliorate or remove; and
‘‘(B) shall, not later than 30 days after
submission to the clearinghouse of any new
strategy or plan, be updated to include the new
strategy or plan submitted.’’; and
(3) by adding at the end the following new sub-
sections:
‘‘(c) ORGANIZATION.—The clearinghouse under this
section shall be established within the Office of Policy De-
velopment of the Department of Housing and Urban De-
velopment and shall be under the direction of the Assist-
ant Secretary for Policy Development and Research.
‘‘(d) TIMING.—The clearinghouse under this section
(as amended by section 103 of the Housing Affordability
Barrier Removal Act of 2000) shall be established and
commence carrying out the functions of the clearinghouse
under this section not later than 1 year after the date of
the enactment of such Act. The Secretary of Housing and
Urban Development may comply with the requirements
under this section by reestablishing the clearinghouse that
was originally established to comply with this section and
updating and improving such clearinghouse to the extent
necessary to comply with the requirements of this section
as in effect pursuant to the enactment of such Act.’’.
TITLE II—HOMEOWNERSHIP
FOR WORKING FAMILIES
SEC. 201. HOME EQUITY CONVERSION MORTGAGES.
(a) INSURANCE FOR MORTGAGES TO REFINANCE EX-
ISTING HECMS.—
(1) IN GENERAL.—Section 255 of the National
Housing Act (12 U.S.C. 1715z–20) is amended—
(A) by redesignating subsection (k) as sub-
section (m); and
(B) by inserting after subsection (j) the
following new subsection:
‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—
‘‘(1) IN GENERAL.—The Secretary may, upon
application by a mortgagee, insure under this sub-
section any mortgage given to refinance an existing
home equity conversion mortgage insured under this
section.
‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec-
retary shall, by regulation, require that the mort-
gagee of a mortgage insured under this subsection,
provide to the mortgagor, within an appropriate time
period and in a manner established in such regula-
tions, a good faith estimate of: (A) the total cost of
the refinancing; and (B) the increase in the mortga-
gor’s principal limit as measured by the estimated
initial principal limit on the mortgage to be insured
under this subsection less the current principal limit
on the home equity conversion mortgage that is
being refinanced and insured under this subsection.
‘‘(3) 
WAIVER
OF
COUNSELING
REQUIRE-
MENT.—The mortgagor under a mortgage insured
under this subsection may waive the applicability,
with respect to such mortgage, of the requirements
under subsection (d)(2)(B) (relating to third party
counseling), but only if—
‘‘(A) the mortgagor has received the disclo-
sure required under paragraph (2);
‘‘(B) the increase in the principal limit de-
scribed in paragraph (2) exceeds the amount of
the total cost of refinancing (as described in
such paragraph) by an amount to be deter-
mined by the Secretary; and
‘‘(C) the time between the closing of the
original home equity conversion mortgage that
is refinanced through the mortgage insured
under this subsection and the application for a
refinancing mortgage insured under this sub-
section does not exceed 5 years.
‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith-
standing section 203(c)(2)(A), the Secretary may re-
duce the amount of the single premium payment
otherwise collected under such section at the time of
the insurance of a mortgage refinanced and insured
under this subsection. The amount of the single pre-
mium for mortgages refinanced under this sub-
section shall be determined by the Secretary based
on the actuarial study required under paragraph (5).
‘‘(5) ACTUARIAL STUDY.—Not later than 180
days after the date of the enactment of the Amer-
ican Homeownership and Economic Opportunity Act
of 2000, the Secretary shall conduct an actuarial
analysis to determine the adequacy of the insurance
premiums collected under the program under this
subsection with respect to—
‘‘(A) a reduction in the single premium
payment collected at the time of the insurance
of a mortgage refinanced and insured under
this subsection;
‘‘(B) the establishment of a single national
limit on the benefits of insurance under sub-
section (g) (relating to limitation on insurance
authority); and
‘‘(C) the combined effect of reduced insur-
ance premiums and a single national limitation
on insurance authority.
‘‘(6) FEES.—The Secretary may establish a
limit on the origination fee that may be charged to
a mortgagor under a mortgage insured under this
subsection, except that such limitation shall provide
that the origination fee may be fully financed with
the mortgage and shall include any fees paid to cor-
respondent mortgagees approved by the Secretary.’’.
(2) REGULATIONS.—The Secretary shall issue
any final regulations necessary to implement the
amendments made by paragraph (1) of this sub-
section, which shall take effect not later than the ex-
piration of the 180-day period beginning on the date
of the enactment of this Act. The regulations shall
be issued after notice and opportunity for public
comment in accordance with the procedure under
section 553 of title 5, United States Code, applicable
to substantive rules (notwithstanding subsections
(a)(2), (b)(B), and (d)(3) of such section).
(b) HOUSING COOPERATIVES.—Section 255(b) of the
National Housing Act (12 U.S.C. 1715z–20(b)) is
amended—
(1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’;
and
(2) by adding at the end the following new
paragraphs:
‘‘(4) MORTGAGE.—The term ‘mortgage’ means
a first mortgage or first lien on real estate, in fee
simple, on all stock allocated to a dwelling in a resi-
dential cooperative housing corporation, or on a
leasehold—
‘‘(A) under a lease for not less than 99
years that is renewable; or
‘‘(B) under a lease having a period of not
less than 10 years to run beyond the maturity
date of the mortgage.
‘‘(5) FIRST MORTGAGE.—The term ‘first mort-
gage’ means such classes of first liens as are com-
monly given to secure advances on, or the unpaid
purchase price of, real estate or all stock allocated
to a dwelling unit in a residential cooperative hous-
ing corporation, under the laws of the State in which
the real estate or dwelling unit is located, together
with the credit instruments, if any, secured there-
by.’’.
(c) WAIVER OF UP-FRONT PREMIUMS FOR MORT-
GAGES USED TO FUND LONG-TERM CARE INSURANCE.—
(1) IN GENERAL.—Section 255 of the National
Housing Act (12 U.S.C. 1715z–20) is amended by
inserting after subsection (k) (as added by sub-
section (a) of this section) the following new sub-
section:
‘‘(l) WAIVER OF UP-FRONT PREMIUMS FOR MORT-
GAGES TO FUND LONG-TERM CARE INSURANCE.—
‘‘(1) IN GENERAL.—In the case of any mort-
gage insured under this section under which the
total amount (except as provided in paragraph (2))
of all future payments described in subsection (b)(3)
will be used only for costs of a qualified long-term
care insurance contract that covers the mortgagor or
members of the household residing in the property
that is subject to the mortgage, notwithstanding sec-
tion 203(c)(2), the Secretary shall not charge or col-
lect the single premium payment otherwise required
under subparagraph (A) of such section to be paid
at the time of insurance.
‘‘(2) AUTHORITY
TO
REFINANCE
EXISTING
MORTGAGE
AND
FINANCE
CLOSING
COSTS.—A
mortgage described in paragraph (1) may provide fi-
nancing of amounts that are used to satisfy out-
standing mortgage obligations (in accordance with
such limitations as the Secretary shall prescribe)
and any amounts used for initial service charges, ap-
praisal, inspection, and other fees (as approved by
the Secretary) in connection with such mortgage,
and the amount of future payments described in
subsection (b)(3) under the mortgage shall be re-
duced accordingly.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘qualified long-term care insurance
contract’ has the meaning given such term in section
7702B of the Internal Revenue Code of 1986 (26
U.S.C. 7702B)), except that such contract shall also
meet the requirements of—
‘‘(A) sections 9 (relating to disclosure), 24
(relating to suitability), and 26 (relating to con-
tingent nonforfeiture) of the long-term care in-
surance model regulation promulgated by the
National Association of Insurance Commis-
sioners (as adopted as of September 2000); and
‘‘(B) section 8 (relating to contingent non-
forfeiture) of the long-term care insurance
model Act promulgated by the National Asso-
ciation of Insurance Commissioners (as adopted
as of September 2000).’’.
(2) APPLICABILITY.—The provisions of section
255(l) of the National Housing Act (as added by
paragraph (1) of this subsection) shall apply only to
mortgages closed on or after April 1, 2001.
(d) STUDY
OF
SINGLE
NATIONAL
MORTGAGE
LIMIT.—The Secretary of Housing and Urban Develop-
ment shall conduct an actuarially based study of the ef-
fects of establishing, for mortgages insured under section
255 of the National Housing Act (12 U.S.C. 1715z–20),
a single maximum mortgage amount limitation in lieu of
applicability of section 203(b)(2) of such Act (12 U.S.C.
1709(b)(2)). The study shall—
(1) examine the effects of establishing such lim-
itation at different dollar amounts; and
(2) examine the effects of such various limita-
tions on—
(A) the risks to the General Insurance
Fund established under section 519 of such
Act;
(B) the mortgage insurance premiums that
would be required to be charged to mortgagors
to ensure actuarial soundness of such Fund;
and
(C) take into consideration the various ap-
proaches to providing credit to borrowers who
refinance home equity conversion mortgages in-
sured under section 255 of such Act.
Not later than 180 days after the date of the enactment
of this Act, the Secretary shall complete the study under
this subsection and submit a report describing the study
and the results of the study to the Committee on Banking
and Financial Services of the House of Representatives
and to the Committee on Banking, Housing, and Urban
Affairs of the Senate.
SEC. 202. ASSISTANCE FOR SELF-HELP HOUSING PRO-
VIDERS.
(a) REAUTHORIZATION.—Subsection (p) of section
11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended to read as
follows:
‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
such sums as may be necessary for fiscal year 2001.’’.
(b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of
the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting before
the period at the end the following: ‘‘, which may include
reimbursing an organization, consortium, or affiliate, upon
approval of any required environmental review, for
nongrant amounts of the organization, consortium, or af-
filiate advanced before such review to acquire land’’.
(c) DEADLINE FOR RECAPTURE OF FUNDS.—Section
11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended—
(1) in subsection (i)(5)—
(A) by striking ‘‘if the organization or con-
sortia has not used any grant amounts’’ and in-
serting ‘‘the Secretary shall recapture any grant
amounts provided to the organization or con-
sortia that are not used’’;
(B) by striking ‘‘(or,’’ and inserting ‘‘, ex-
cept that such period shall be 36 months’’; and
(C) by striking ‘‘within 36 months), the
Secretary 
shall 
recapture 
such 
unused
amounts’’ and inserting ‘‘and in the case of a
grant amounts provided to a local affiliate of
the organization or consortia that is developing
five or more dwellings in connection with such
grant amounts’’; and
(2) in subsection (j), by inserting after ‘‘carry
out this section’’ the following: ‘‘and grant amounts
provided to a local affiliate of the organization or
consortia that is developing five or more dwellings in
connection with such grant amounts’’.
(d) TECHNICAL CORRECTIONS.—Section 11 of the
Housing Opportunity Program Extension Act of 1996 (42
U.S.C. 12805 note) is amended—
(1) in subsection (b)(4), by striking ‘‘Habitat
for Humanity International, its affiliates, and
other’’; and
(2) in subsection (e)(2), by striking ‘‘consoria’’
and inserting ‘‘consortia’’.
TITLE III—SECTION 8
HOMEOWNERSHIP OPTION
SEC. 301. DOWNPAYMENT ASSISTANCE.
(a) AMENDMENTS.—Section 8(y) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(y)) is
amended—
(1) by redesignating paragraph (7) as para-
graph (8); and
(2) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) DOWNPAYMENT ASSISTANCE.—
‘‘(A) AUTHORITY.—A public housing agen-
cy may, in lieu of providing monthly assistance
payments under this subsection on behalf of a
family eligible for such assistance and at the
discretion of the public housing agency, provide
assistance for the family in the form of a single
grant to be used only as a contribution toward
the downpayment required in connection with
the purchase of a dwelling for fiscal year 2000
and each fiscal year thereafter to the extent
provided in advance in appropriations Acts.
‘‘(B) AMOUNT.—The amount of a down-
payment grant on behalf of an assisted family
may not exceed the amount that is equal to the
sum of the assistance payments that would be
made during the first year of assistance on be-
half of the family, based upon the income of the
family at the time the grant is to be made.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect immediately after the
amendments made by section 555(c) of the Quality Hous-
ing and Work Responsibility Act of 1998 take effect pur-
suant to such section.
SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST-
ANCE FOR DISABLED FAMILIES.
(a) IN GENERAL.—A public housing agency providing
tenant-based assistance on behalf of an eligible family
under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) may provide assistance for a disabled
family that purchases a dwelling unit (including a dwelling
unit under a lease-purchase agreement) that will be owned
by one or more members of the disabled family and will
be occupied by the disabled family, if the disabled family—
(1) purchases the dwelling unit before the expi-
ration of the 3-year period beginning on the date
that the Secretary first implements the pilot pro-
gram under this section;
(2) demonstrates that the disabled family has
income from employment or other sources (including
public assistance), as determined in accordance with
requirements of the Secretary, that is not less than
twice the payment standard established by the public
housing agency (or such other amount as may be es-
tablished by the Secretary);
(3) except as provided by the Secretary, dem-
onstrates at the time the disabled family initially re-
ceives tenant-based assistance under this section
that one or more adult members of the disabled fam-
ily have achieved employment for the period as the
Secretary shall require;
(4) participates in a homeownership and hous-
ing counseling program provided by the agency; and
(5) meets any other initial or continuing re-
quirements established by the public housing agency
in accordance with requirements established by the
Secretary.
(b) DETERMINATION OF AMOUNT OF ASSISTANCE.—
(1) IN GENERAL.—
(A) MONTHLY EXPENSES NOT EXCEEDING
PAYMENT
STANDARD.—If the monthly home-
ownership expenses, as determined in accord-
ance with requirements established by the Sec-
retary, do not exceed the payment standard, the
monthly assistance payment shall be the
amount by which the homeownership expenses
exceed the highest of the following amounts,
rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted
income of the disabled family.
(ii) 10 percent of the monthly income
of the disabled family.
(iii) If the disabled family is receiving
payments for welfare assistance from a
public agency, and a portion of those pay-
ments, adjusted in accordance with the ac-
tual housing costs of the disabled family, is
specifically designated by that agency to
meet the housing costs of the disabled fam-
ily, the portion of those payments that is
so designated.
(B) MONTHLY
EXPENSES
EXCEED
PAY-
MENT STANDARD.—If the monthly homeowner-
ship expenses, as determined in accordance with
requirements established by the Secretary, ex-
ceed the payment standard, the monthly assist-
ance payment shall be the amount by which the
applicable payment standard exceeds the high-
est of the amounts under clauses (i), (ii), and
(iii) of subparagraph (A).
(2) CALCULATION OF AMOUNT.—
(A) LOW-INCOME
FAMILIES.—A disabled
family that is a low-income family shall be eligi-
ble to receive 100 percent of the amount cal-
culated under paragraph (1).
(B) INCOME BETWEEN 81 AND 89 PERCENT
OF MEDIAN.—A disabled family whose income
is between 81 and 89 percent of the median for
the area shall be eligible to receive 66 percent
of the amount calculated under paragraph (1).
(C) INCOME BETWEEN 90 AND 99 PERCENT
OF MEDIAN.—A disabled family whose income
is between 90 and 99 percent of the median for
the area shall be eligible to receive 33 percent
of the amount calculated under paragraph (1).
(D) INCOME MORE THAN 99 PERCENT OF
MEDIAN.—A disabled family whose income is
more than 99 percent of the median for the
area shall not be eligible to receive assistance
under this section.
(c) INSPECTIONS AND CONTRACT CONDITIONS.—
(1) IN GENERAL.—Each contract for the pur-
chase of a dwelling unit to be assisted under this
section shall—
(A) provide for pre-purchase inspection of
the dwelling unit by an independent profes-
sional; and
(B) require that any cost of necessary re-
pairs be paid by the seller.
(2) ANNUAL
INSPECTIONS
NOT
REQUIRED.—
The requirement under subsection (o)(8)(A)(ii) of
section 8 of the United States Housing Act of 1937
for annual inspections shall not apply to dwelling
units assisted under this section.
(d) OTHER AUTHORITY OF THE SECRETARY.—The
Secretary may—
(1) limit the term of assistance for a disabled
family assisted under this section;
(2) provide assistance for a disabled family for
the entire term of a mortgage for a dwelling unit if
the disabled family remains eligible for such assist-
ance for such term; and
(3) modify the requirements of this section as
the Secretary determines to be necessary to make
appropriate adaptations for lease-purchase agree-
ments.
(e) ASSISTANCE PAYMENTS SENT TO LENDER.—The
Secretary shall remit assistance payments under this sec-
tion directly to the mortgagee of the dwelling unit pur-
chased by the disabled family receiving such assistance
payments.
(f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As-
sistance under this section shall not be subject to the re-
quirements of the following provisions:
(1) Subsection (c)(3)(B) of section 8 of the
United States Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the
United States Housing Act of 1937.
(3) Any other provisions of section 8 of the
United States Housing Act of 1937 governing max-
imum amounts payable to owners and amounts pay-
able by assisted families.
(4) Any other provisions of section 8 of the
United States Housing Act of 1937 concerning con-
tracts between public housing agencies and owners.
(5) Any other provisions of the United States
Housing Act of 1937 that are inconsistent with the
provisions of this section.
(g) REVERSION TO RENTAL STATUS.—
(1) NON-FHA MORTGAGES.—If a disabled fam-
ily receiving assistance under this section defaults
under a mortgage not insured under the National
Housing Act, the disabled family may not continue
to receive rental assistance under section 8 of the
United States Housing Act of 1937 unless it com-
plies with requirements established by the Secretary.
(2) ALL MORTGAGES.—A disabled family receiv-
ing assistance under this section that defaults under
a mortgage may not receive assistance under this
section for occupancy of another dwelling unit owned
by 1 or more members of the disabled family.
(3) EXCEPTION.—This subsection shall not
apply if the Secretary determines that the disabled
family receiving assistance under this section de-
faulted under a mortgage due to catastrophic med-
ical reasons or due to the impact of a federally de-
clared major disaster or emergency.
(h) REGULATIONS.—Not later than 90 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement this section. Such regulations
may not prohibit any public housing agency providing ten-
ant-based assistance on behalf of an eligible family under
section 8 of the United States Housing Act of 1937 from
participating in the pilot program under this section.
(i) DEFINITION
OF DISABLED FAMILY.—For the
purposes of this section, the term ‘‘disabled family’’ has
the meaning given the term ‘‘person with disabilities’’ in
section 811(k)(2) of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 8013(k)(2)).
SEC. 303. FUNDING FOR PILOT PROGRAMS.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated such sums as may be nec-
essary for fiscal year 2001 for assistance in connection
with the existing homeownership pilot programs carried
out under the demonstration program authorized under to
section 555(b) of the Quality Housing and Work Respon-
sibility Act of 1998 (Public Law 105–276; 112 Stat.
2613).
(b) USE.—Subject to subsection (c), amounts made
available pursuant to this section shall be used only
through such homeownership pilot programs to provide,
on behalf of families participating in such programs,
amounts for downpayments in connection with dwellings
purchased by such families using assistance made avail-
able under section 8(y) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(y)). No such downpayment
grant may exceed 20 percent of the appraised value of the
dwelling purchased with assistance under such section
8(y).
(c) MATCHING REQUIREMENT.—The amount of as-
sistance made available under this section for any existing
homeownership pilot program may not exceed twice the
amount donated from sources other than this section for
use under the program for assistance described in sub-
section (b). Amounts donated from other sources may in-
clude amounts from State housing finance agencies and
Neighborhood Housing Services of America.
TITLE IV—PRIVATE MORTGAGE
INSURANCE 
CANCELLATION
AND TERMINATION
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Private Mortgage In-
surance Technical Corrections and Clarification Act’’.
SEC. 402. 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-
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.—
(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. 403. 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 the
preceding provisions 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—
(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
(2) in subsection (d), by inserting ‘‘transaction’’
after ‘‘residential mortgage’’.
SEC. 404. 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 the preceding provisions of this title), by striking
‘‘subsection 
(a)(3)’’ 
and 
inserting 
‘‘subsection
(a)(4)’’.
SEC. 405. 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-
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. 406. 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)
(as added by the preceding provisions of this title) 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 the preceding provisions of this title)
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.’’.
(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
the preceding provisions of this title) by striking
‘‘primary’’ and inserting ‘‘principal’’; and
(2) in paragraph (15) (as so redesignated by
the preceding provisions of this title) by striking
‘‘primary’’ and inserting ‘‘principal’’.
TITLE V—NATIVE AMERICAN
HOMEOWNERSHIP
Subtitle A—Native American
Housing
SEC. 501. LANDS TITLE REPORT COMMISSION.
(a) ESTABLISHMENT.—Subject to sums being pro-
vided in advance in appropriations Acts, there is estab-
lished a Commission to be known as the Lands Title Re-
port Commission (hereafter in this section referred to as
the ‘‘Commission’’) to facilitate home loan mortgages on
Indian trust lands. The Commission will be subject to
oversight by the Committee on Banking and Financial
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the
Senate.
(b) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be
composed of 12 members, appointed not later than
90 days after the date of the enactment of this Act
as follows:
(A) Four members shall be appointed by
the President.
(B) Four members shall be appointed by
the Chairperson of the Committee on Banking
and Financial Services of the House of Rep-
resentatives.
(C) Four members shall be appointed by
the Chairperson of the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(2) QUALIFICATIONS.—
(A) MEMBERS OF TRIBES.—At all times,
not less than eight of the members of the Com-
mission shall be members of federally recog-
nized Indian tribes.
(B) EXPERIENCE
IN
LAND
TITLE
MAT-
TERS.—All members of the Commission shall
have experience in and knowledge of land title
matters relating to Indian trust lands.
(3) CHAIRPERSON.—The Chairperson of the
Commission shall be one of the members of the
Commission appointed under paragraph (1)(C), as
elected by the members of the Commission.
(4) VACANCIES.—Any vacancy on the Commis-
sion shall not affect its powers, but shall be filled in
the manner in which the original appointment was
made.
(5) TRAVEL EXPENSES.—Members of the Com-
mission shall serve without pay, but each member
shall receive travel expenses, including per diem in
lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
(c) INITIAL MEETING.—The Chairperson of the Com-
mission shall call the initial meeting of the Commission.
Such meeting shall be held within 30 days after the Chair-
person of the Commission determines that sums sufficient
for the Commission to carry out its duties under this Act
have been appropriated for such purpose.
(d) DUTIES.—The Commission shall analyze the sys-
tem of the Bureau of Indian Affairs of the Department
of the Interior for maintaining land ownership records and
title documents and issuing certified title status reports
relating to Indian trust lands and, pursuant to such anal-
ysis, determine how best to improve or replace the
system—
(1) to ensure prompt and accurate responses to
requests for title status reports;
(2) to eliminate any backlog of requests for title
status reports; and
(3) to ensure that the administration of the sys-
tem will not in any way impair or restrict the ability
of Native Americans to obtain conventional loans for
purchase of residences located on Indian trust lands,
including any actions necessary to ensure that the
system will promptly be able to meet future demands
for certified title status reports, taking into account
the anticipated complexity and volume of such re-
quests.
(e) REPORT.—Not later than the date of the termi-
nation of the Commission under subsection (h), the Com-
mission shall submit a report to the Committee on Bank-
ing and Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban
Affairs of the Senate describing the analysis and deter-
minations made pursuant to subsection (d).
(f) POWERS.—
(1) HEARINGS AND SESSIONS.—The Commis-
sion may, for the purpose of carrying out this sec-
tion, hold hearings, sit and act at times and places,
(6) STAFF.—The Commission may appoint per-
sonnel as it considers appropriate, subject to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and shall
pay such personnel in accordance with the provisions
of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General
Schedule pay rates.
(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
such sums as may be necessary, and any amounts appro-
priated pursuant to this subsection shall remain available
until expended.
(h) TERMINATION.—The Commission shall terminate
1 year after the date of the initial meeting of the Commis-
sion.
SEC. 502. LOAN GUARANTEES.
Section 184(i) of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is
amended—
(1) in paragraph (5), by striking subparagraph
(C) and inserting the following new subparagraph:
‘‘(C) LIMITATION
ON
OUTSTANDING
AG-
GREGATE PRINCIPAL AMOUNT.—Subject to the
limitations in subparagraphs (A) and (B), the
Secretary may enter into commitments to guar-
antee loans under this section in each fiscal
year with an aggregate outstanding principal
amount not exceeding such amount as may be
provided in appropriation Acts for such fiscal
year.’’; and
(2) in paragraph (7), by striking ‘‘each of fiscal
years 1997, 1998, 1999, 2000, and 2001’’ and in-
serting ‘‘each fiscal year’’.
SEC. 503. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) RESTRICTION ON WAIVER AUTHORITY.—
(1) IN GENERAL.—Section 101(b)(2) of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4111(b)(2)) is
amended by striking ‘‘if the Secretary’’ and all that
follows through the period at the end and inserting
the following: ‘‘for a period of not more than 90
days, if the Secretary determines that an Indian
tribe has not complied with, or is unable to comply
with, those requirements due to exigent cir-
cumstances beyond the control of the Indian tribe.’’.
(2) LOCAL
COOPERATION
AGREEMENT.—Sec-
tion 101(c) of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4111(c)) is amended by adding at the end the fol-
lowing: ‘‘The Secretary may waive the requirements
of this subsection and subsection (d) if the recipient
has made a good faith effort to fulfill the require-
ments of this subsection and subsection (d) and
agrees to make payments in lieu of taxes to the ap-
propriate taxing authority in an amount consistent
with the requirements of subsection (d)(2) until such
time as the matter of making such payments has
been resolved in accordance with subsection (d).’’.
(b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW-
INCOME.—Section 102(c) of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4112(c)) is amended by adding at the end the following:
‘‘(6) CERTAIN FAMILIES.—With respect to as-
sistance provided under section 201(b)(2) by a re-
cipient to Indian families that are not low-income
families, evidence that there is a need for housing
for each such family during that period that cannot
reasonably be met without such assistance.’’.
(c) ELIMINATION
OF
WAIVER
AUTHORITY
FOR
SMALL TRIBES.—Section 102 of the Native American
Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4112) is amended—
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as sub-
section (f).
(d) ENVIRONMENTAL COMPLIANCE.—Section 105 of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4115) is amended by
adding at the end the following:
‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary
may waive the requirements under this section if the Sec-
retary determines that a failure on the part of a recipient
to comply with provisions of this section—
‘‘(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331
et seq.) or any other provision of law that furthers
the goals of that Act;
‘‘(2) does not threaten the health or safety of
the community involved by posing an immediate or
long-term hazard to residents of that community;
‘‘(3) is a result of inadvertent error, including
an incorrect or incomplete certification provided
under subsection (c)(1); and
‘‘(4) may be corrected through the sole action
of the recipient.’’.
(e) OVERSIGHT.—
(1) REPAYMENT.—Section 209 of the Native
American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4139) is amended to
read as follows:
‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING
REQUIREMENT.
‘‘If a recipient uses grant amounts to provide afford-
able housing under this title, and at any time during the
useful life of the housing the recipient does not comply
with the requirement under section 205(a)(2), the Sec-
retary shall take appropriate action under section
401(a).’’.
(2) AUDITS AND REVIEWS.—Section 405 of the
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4165) is amend-
ed to read as follows:
‘‘SEC. 405. REVIEW AND AUDIT BY SECRETARY.
‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE
31, UNITED STATES CODE.—An entity designated by an
Indian tribe as a housing entity shall be treated, for pur-
poses of chapter 75 of title 31, United States Code, as
a non-Federal entity that is subject to the audit require-
ments that apply to non-Federal entities under that chap-
ter.
‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—
‘‘(1) IN GENERAL.—In addition to any audit or
review under subsection (a), to the extent the Sec-
retary determines such action to be appropriate, the
Secretary may conduct an audit or review of a re-
cipient in order to—
‘‘(A) determine whether the recipient—
‘‘(i) has carried out—
‘‘(I) eligible activities in a timely
manner; and
‘‘(II) eligible activities and cer-
tification in accordance with this Act
and other applicable law;
‘‘(ii) has a continuing capacity to
carry out eligible activities in a timely
manner; and
‘‘(iii) is in compliance with the Indian
housing plan of the recipient; and
‘‘(B) verify the accuracy of information
contained in any performance report submitted
by the recipient under section 404.
‘‘(2) ON-SITE
VISITS.—To the extent prac-
ticable, the reviews and audits conducted under this
subsection shall include on-site visits by the appro-
priate official of the Department of Housing and
Urban Development.
‘‘(c) REVIEW OF REPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall provide
each recipient that is the subject of a report made
by the Secretary under this section notice that the
recipient may review and comment on the report
during a period of not less than 30 days after the
date on which notice is issued under this paragraph.
‘‘(2) PUBLIC AVAILABILITY.—After taking into
consideration any comments of the recipient under
paragraph (1), the Secretary—
‘‘(A) may revise the report; and
‘‘(B) not later than 30 days after the date
on which those comments are received, shall
make the comments and the report (with any
revisions made under subparagraph (A)) readily
available to the public.
‘‘(d) EFFECT
OF
REVIEWS.—Subject to section
401(a), after reviewing the reports and audits relating to
a recipient that are submitted to the Secretary under this
section, the Secretary may adjust the amount of a grant
made to a recipient under this Act in accordance with the
findings of the Secretary with respect to those reports and
audits.’’.
(f) ALLOCATION FORMULA.—Section 302(d)(1) of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4152(d)(1)) is
amended—
(1) by striking ‘‘The formula,’’ and inserting
the following:
‘‘(A) IN GENERAL.—Except with respect to
an Indian tribe described in subparagraph (B),
the formula’’; and
(2) by adding at the end the following:
‘‘(B) CERTAIN INDIAN TRIBES.—With re-
spect to fiscal year 2001 and each fiscal year
thereafter, for any Indian tribe with an Indian
housing authority that owns or operates fewer
than 250 public housing units, the formula
shall provide that if the amount provided for a
fiscal year in which the total amount made
available for assistance under this Act is equal
to or greater than the amount made available
for fiscal year 1996 for assistance for the oper-
ation and modernization of the public housing
referred to in subparagraph (A), then the
amount provided to that Indian tribe as mod-
ernization assistance shall be equal to the aver-
age annual amount of funds provided to the In-
dian tribe (other than funds provided as emer-
gency assistance) under the assistance program
under section 14 of the United States Housing
Act of 1937 (42 U.S.C. 1437l) for the period
beginning with fiscal year 1992 and ending
with fiscal year 1997.’’.
(g) HEARING REQUIREMENT.—Section 401(a) of the
Native American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4161(a)) is amended—
(1) by redesignating paragraphs (1) through
(4) as subparagraphs (A) through (D), respectively,
and realigning such subparagraphs (as so redesig-
nated) so as to be indented 4 ems from the left mar-
gin;
(2) by striking ‘‘Except as provided’’ and in-
serting the following:
‘‘(1) IN GENERAL.—Except as provided’’;
(3) by striking ‘‘If the Secretary takes an ac-
tion under paragraph (1), (2), or (3)’’ and inserting
the following:
‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec-
retary takes an action under subparagraph (A), (B),
or (C) of paragraph (1)’’; and
(4) by adding at the end the following:
‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this subsection, if the Sec-
retary makes a determination that the failure of
a recipient of assistance under this Act to com-
ply substantially with any material provision (as
that term is defined by the Secretary) of this
Act is resulting, and would continue to result,
in a continuing expenditure of Federal funds in
a manner that is not authorized by law, the
Secretary may take an action described in para-
graph (1)(C) before conducting a hearing.
‘‘(B) PROCEDURAL REQUIREMENT.—If the
Secretary takes an action described in subpara-
graph (A), the Secretary shall—
‘‘(i) provide notice to the recipient at
the time that the Secretary takes that ac-
tion; and
‘‘(ii) conduct a hearing not later than
60 days after the date on which the Sec-
retary provides notice under clause (i).
‘‘(C) DETERMINATION.—Upon completion
of a hearing under this paragraph, the Sec-
retary shall make a determination regarding
whether to continue taking the action that is
the subject of the hearing, or take another ac-
tion under this subsection.’’.
(h) PERFORMANCE AGREEMENT TIME LIMIT.—Sec-
tion 401(b) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4161(b))
is amended—
(1) by striking ‘‘If the Secretary’’ and inserting
the following:
‘‘(1) IN GENERAL.—If the Secretary’’;
(2) by striking ‘‘(1) is not’’ and inserting the
following:
‘‘(A) is not’’;
(3) by striking ‘‘(2) is a result’’ and inserting
the following:
‘‘(B) is a result’’;
(4) in the flush material following paragraph
(1)(B), as redesignated by paragraph (3) of this
subsection—
(A) by realigning such material so as to be
indented 2 ems from the left margin; and
(B) by inserting before the period at the
end the following: ‘‘, if the recipient enters into
a performance agreement with the Secretary
that specifies the compliance objectives that the
recipient will be required to achieve by the ter-
mination date of the performance agreement’’;
and
(5) by adding at the end the following:
‘‘(2) PERFORMANCE AGREEMENT.—The period
of a performance agreement described in paragraph
(1) shall be for 1 year.
‘‘(3) REVIEW.—Upon the termination of a per-
formance agreement entered into under paragraph
(1), the Secretary shall review the performance of
the recipient that is a party to the agreement.
‘‘(4) EFFECT OF REVIEW.—If, on the basis of
a review under paragraph (3), the Secretary deter-
mines that the recipient—
‘‘(A) has made a good faith effort to meet
the compliance objectives specified in the agree-
ment, the Secretary may enter into an addi-
tional performance agreement for the period
specified in paragraph (2); and
‘‘(B) has failed to make a good faith effort
to meet applicable compliance objectives, the
Secretary shall determine the recipient to have
failed to comply substantially with this Act, and
the recipient shall be subject to an action under
subsection (a).’’.
(i) LABOR STANDARDS.—Section 104(b) of the Na-
tive American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4114(b) is amended—
(1) in paragraph (1), by striking ‘‘Davis-Bacon
Act (40 U.S.C. 276a–276a–5)’’ and inserting ‘‘Act
of March 3, 1931 (commonly known as the Davis-
Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C
276a et seq.)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) APPLICATION
OF
TRIBAL
LAWS.—Para-
graph (1) shall not apply to any contract or agree-
ment for assistance, sale, or lease pursuant to this
Act, if such contract or agreement is otherwise cov-
ered by one or more laws or regulations adopted by
an Indian tribe that requires the payment of not less
than prevailing wages, as determined by the Indian
tribe.’’.
(j) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TABLE OF CONTENTS.—Section 1(b) of the
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4101 note) is
amended in the table of contents—
(A) by striking the item relating to section
206; and
(B) by striking the item relating to section
209 and inserting the following:
‘‘209. Noncompliance with affordable housing requirement.’’.
(2) CERTIFICATION OF COMPLIANCE WITH SUB-
SIDY
LAYERING
REQUIREMENTS.—Section 206 of
the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4136) is re-
pealed.
(3) TERMINATIONS.—Section 502(a) of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4181(a)) is amend-
ed by adding at the end the following: ‘‘Any housing
that is the subject of a contract for tenant-based as-
sistance between the Secretary and an Indian hous-
ing authority that is terminated under this section
shall, for the following fiscal year and each fiscal
year thereafter, be considered to be a dwelling unit
under section 302(b)(1).’’.
Subtitle B—Native Hawaiian
Housing
SEC. 511. SHORT TITLE.
This subtitle may be cited as the ‘‘Hawaiian Home-
lands Homeownership Act of 2000’’.
SEC. 512. FINDINGS.
The Congress finds that—
(1) the United States has undertaken a respon-
sibility to promote the general welfare of the United
States by—
(A) employing its resources to remedy the
unsafe and unsanitary housing conditions and
the acute shortage of decent, safe, and sanitary
dwellings for families of lower income; and
(B) developing effective partnerships with
governmental and private entities to accomplish
the objectives referred to in subparagraph (A);
(2) the United States has a special responsi-
bility for the welfare of the Native peoples of the
United States, including Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian
Homes Commission Act, 1920 (42 Stat. 108 et
seq.), the United States set aside 200,000 acres of
land in the Federal territory that later became the
State of Hawaii in order to establish a homeland for
the native people of Hawaii—Native Hawaiians;
(4) despite the intent of Congress in 1920 to
address the housing needs of Native Hawaiians
through the enactment of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), Native
Hawaiians eligible to reside on the Hawaiian home
lands have been foreclosed from participating in
Federal housing assistance programs available to all
other eligible families in the United States;
(5) although Federal housing assistance pro-
grams have been administered on a racially neutral
basis in the State of Hawaii, Native Hawaiians con-
tinue to have the greatest unmet need for housing
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 this subtitle), eligible to reside on the Ha-
waiian Home Lands are the most severe, as—
(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-
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