amounts provided under this Act shall adopt and utilize
written tenant selection policies and criteria that—
(1) are consistent with the purpose of providing
housing for low-income families;
(2) are reasonably related to program eligibility
and the applicant’s ability to perform the obligations
of the lease; and
(3) provide for (A) the selection of tenants from
a written waiting list in accordance with the policies
and goals set forth in the local housing management
plan for the tribe that is the grant beneficiary of
such grant amounts, and (B) the prompt notification
in writing of any rejected applicant of the grounds
for any rejection.
SEC. 208. REPAYMENT.
If a recipient uses grant amounts to provide afford-
able housing under activities under this title and, at any
time during the useful life of the housing the housing does
not comply with the requirement under section 205(a)(2),
the Secretary shall reduce future grant payments on be-
half of the grant beneficiary by an amount equal to the
grant amounts used for such housing (under the authority
under section 401(a)(2)) or require repayment to the Sec-
retary of an amount equal to such grant amounts.
TITLE III—ALLOCATION OF
GRANT AMOUNTS
SEC. 301. ANNUAL ALLOCATION.
For each fiscal year, the Secretary shall allocate any
amounts made available for assistance under this Act for
the fiscal year, in accordance with the formula established
pursuant to section 302, among Indian tribes that comply
with the requirements under this Act for a grant under
this Act.
SEC. 302. ALLOCATION FORMULA.
(a) REQUIREMENTS.—The Secretary shall, by regula-
tion under subsection (b), establish a formula to provide
for allocating amounts available for a fiscal year for block
grants under this Act among Indian tribes. The formula
shall be based on factors that reflect the need of the In-
dian tribes and the Indian areas of the tribes for assist-
ance for affordable housing activities, including the follow-
ing factors:
(1) The number of low-income housing dwelling
units owned or operated at the time pursuant to a
contract between an Indian housing authority for
the tribe and the Secretary.
(2) The extent of poverty and economic distress
within Indian areas of the tribe.
(3) Other objectively measurable conditions as
the Secretary may specify.
(b) DEVELOPMENT
UNDER
NEGOTIATED
RULE-
MAKING PROCEDURE.—Notwithstanding sections 563(a)
and 565(a) of title 5, United States Code, the regulations
required under subsection (a) of this section shall be is-
sued according to a negotiated rulemaking procedure
under subchapter III of chapter 5 of title 5, United States
Code, not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act. The
Secretary shall establish a negotiated rulemaking commit-
tee for development of any such proposed regulations,
which shall include representatives of Indian tribes.
TITLE IV—COMPLIANCE,
AUDITS, AND REPORTS
SEC. 401. REMEDIES FOR NONCOMPLIANCE.
(a) ACTIONS
BY SECRETARY AFFECTING GRANT
AMOUNTS.—Except as provided in subsection (b), if the
Secretary finds after reasonable notice and opportunity for
hearing that a recipient of assistance under this Act has
failed to comply substantially with any provision of this
Act, the Secretary shall—
(1) terminate payments under this Act to the
recipient;
(2) reduce payments under this Act to the re-
cipient by an amount equal to the amount of such
payments which were not expended in accordance
with this Act;
(3) limit the availability of payments under this
Act to programs, projects, or activities not affected
by such failure to comply; or
(4) in the case of noncompliance described in
section 402(b), provide a replacement tribally des-
ignated housing entity for the recipient, under sec-
tion 402.
If the Secretary takes an action under paragraph (1), (2),
or (3), the Secretary shall continue such action until the
Secretary determines that the failure to comply has
ceased.
(b) NONCOMPLIANCE BECAUSE OF TECHNICAL INCA-
PACITY.—If the Secretary makes a finding under sub-
section (a), but determines that the failure to comply sub-
stantially with the provisions of this Act—
(1) is not a pattern or practice of activities con-
stituting willful noncompliance, and
(2) is a result of the limited capability or capac-
ity of the recipient,
the Secretary may provide technical assistance for the re-
cipient (directly or indirectly) that is designed to increase
the capability and capacity of the recipient to administer
assistance provided under this Act in compliance with the
requirements under this Act.
(c) REFERRAL FOR CIVIL ACTION.—
(1) AUTHORITY.—In lieu of, or in addition to,
any action authorized by subsection (a), the Sec-
retary may, if the Secretary has reason to believe
that a recipient has failed to comply substantially
with any provision of this Act, refer the matter to
the Attorney General of the United States with a
recommendation that an appropriate civil action be
instituted.
(2) CIVIL ACTION.—Upon such a referral, the
Attorney General may bring a civil action in any
United States district court having venue thereof for
such relief as may be appropriate, including an ac-
tion to recover the amount of the assistance fur-
nished under this Act which was not expended in ac-
cordance with it, or for mandatory or injunctive re-
lief.
(d) REVIEW.—
(1) IN GENERAL.—Any recipient who receives
notice under subsection (a) of the termination, re-
duction, or limitation of payments under this Act
may, within 60 days after receiving such notice, file
with the United States Court of Appeals for the cir-
cuit in which such State is located, or in the United
States Court of Appeals for the District of Colum-
bia, a petition for review of the Secretary’s action.
The petitioner shall forthwith transmit copies of the
petition to the Secretary and the Attorney General
of the United States, who shall represent the Sec-
retary in the litigation.
(2) PROCEDURE.—The Secretary shall file in
the court record of the proceeding on which the Sec-
retary based the action, as provided in section 2112
of title 28, United States Code. No objection to the
action of the Secretary shall be considered by the
court unless such objection has been urged before
the Secretary.
(3) DISPOSITION.—The court shall have juris-
diction to affirm or modify the action of the Sec-
retary or to set it aside in whole or in part. The
findings of fact by the Secretary, if supported by
substantial evidence on the record considered as a
whole, shall be conclusive. The court may order addi-
tional evidence to be taken by the Secretary, and to
be made part of the record. The Secretary may mod-
ify the Secretary’s findings of fact, or make new
findings, by reason of the new evidence so taken and
filed with the court, and the Secretary shall also file
such modified or new findings, which findings with
respect to questions of fact shall be conclusive if
supported by substantial evidence on the record con-
sidered as a whole, and shall also file the Secretary’s
recommendation, if any, for the modification or set-
ting aside of the Secretary’s original action.
(4) FINALITY.—Upon the filing of the record
with the court, the jurisdiction of the court shall be
exclusive and its judgment shall be final, except that
such judgment shall be subject to review by the Su-
preme Court of the United States upon writ of cer-
tiorari or certification as provided in section 1254 of
title 28, United State Code.
SEC. 402. REPLACEMENT OF RECIPIENT.
(a) AUTHORITY.—As a condition of the Secretary
making a grant under this Act on behalf of an Indian
tribe, the tribe shall agree that, notwithstanding any other
provision of law, the Secretary may, only in the cir-
cumstances set forth in subsection (b), require that a re-
placement tribally designated housing entity serve as the
recipient for the tribe, in accordance with subsection (c).
(b) CONDITIONS OF REMOVAL.—The Secretary may
require such replacement tribally designated housing en-
tity for a tribe only upon a determination by the Secretary
(B) the occurrence of specific conditions,
which conditions shall be specified in written
notice provided by the Secretary to the tribe
upon making the determination under sub-
section (b).
SEC. 403. MONITORING OF COMPLIANCE.
(a) ENFORCEABLE AGREEMENTS.—Each recipient,
through binding contractual agreements with owners and
otherwise, shall ensure long-term compliance with the pro-
visions of this Act. Such measures shall provide for (1)
enforcement of the provisions of this Act by the grant ben-
eficiary or by recipients and other intended beneficiaries,
and (2) remedies for the breach of such provisions.
(b) PERIODIC MONITORING.—Not less frequently
than annually, each recipient shall review the activities
conducted and housing assisted under this Act to assess
compliance with the requirements of this Act. Such review
shall include on-site inspection of housing to determine
compliance with applicable requirements. The results of
each review shall be included in the performance report
of the recipient submitted to the Secretary under section
404 and made available to the public.
SEC. 404. PERFORMANCE REPORTS.
(a) REQUIREMENT.—For each fiscal year, each recip-
ient shall—
(1) review the progress it has made during such
fiscal year in carrying out the local housing manage-
ment plan (or plans) for the Indian tribes for which
it administers grant amounts; and
(2) submit a report to the Secretary (in a form
acceptable to the Secretary) describing the conclu-
sions of the review.
(b) CONTENT.—Each report under this section for a
fiscal year shall—
(1) describe the use of grant amounts provided
to the recipient for such fiscal year;
(2) assess the relationship of such use to the
goals identified in the local housing management
plan of the grant beneficiary;
(3) indicate the recipient’s programmatic ac-
complishments; and
(4) describe how the recipient would change its
programs as a result of its experiences.
(c) SUBMISSION.—The Secretary shall establish dates
for submission of reports under this section, and review
such reports and make such recommendations as the Sec-
retary considers appropriate to carry out the purposes of
this Act.
(d) PUBLIC AVAILABILITY.—A recipient preparing a
report under this section shall make the report publicly
available to the citizens in the recipient’s jurisdiction in
sufficient time to permit such citizens to comment on such
report prior to its submission to the Secretary, and in such
manner and at such times as the recipient may determine.
The report shall include a summary of any comments re-
ceived by the grant beneficiary or recipient from citizens
in its jurisdiction regarding its program.
SEC. 405. REVIEW AND AUDIT BY SECRETARY.
(a) ANNUAL REVIEW.—The Secretary shall, at least
on an annual basis, make such reviews and audits as may
be necessary or appropriate to determine—
(1) whether the recipient has carried out its eli-
gible activities in a timely manner, has carried out
its eligible activities and certifications in accordance
with the requirements and the primary objectives of
this Act and with other applicable laws, and has a
continuing capacity to carry out those activities in a
timely manner;
(2) whether the recipient has complied with the
local housing management plan of the grant bene-
ficiary; and
(3) whether the performance reports under sec-
tion 404 of the recipient are accurate.
Reviews under this section shall include, insofar as prac-
ticable, on-site visits by employees of the Department of
Housing and Urban Development.
(b) REPORT BY SECRETARY.—The Secretary shall
submit a written report to the Congress regarding each
review under subsection (a). The Secretary shall give a
recipient not less than 30 days to review and comment
on a report under this subsection. After taking into con-
sideration the comments of the recipient, the Secretary
may revise the report and shall make the recipient’s com-
ments and the report, with any revisions, readily available
to the public not later than 30 days after receipt of the
recipient’s comments.
(c) EFFECT OF REVIEWS.—The Secretary may make
appropriate adjustments in the amount of the annual
grants under this Act in accordance with the Secretary’s
findings pursuant to reviews and audits under this section.
The Secretary may adjust, reduce, or withdraw grant
amounts, or take other action as appropriate in accord-
ance with the Secretary’s reviews and audits under this
section, except that grant amounts already expended on
affordable housing activities may not be recaptured or de-
ducted from future assistance provided on behalf of an In-
dian tribe.
SEC. 406. GAO AUDITS.
To the extent that the financial transactions of In-
dian tribes and recipients of grant amounts under this Act
relate to amounts provided under this Act, such trans-
actions may be audited by the Comptroller General of the
United States under such rules and regulations as may
be prescribed by the Comptroller General. The representa-
tives of the General Accounting Office shall have access
to all books, accounts, records, reports, files, and other
papers, things, or property belonging to or in use by such
tribes and recipients pertaining to such financial trans-
actions and necessary to facilitate the audit.
SEC. 407. REPORTS TO CONGRESS.
(a) IN GENERAL.—Not later than 90 days after the
conclusion of each fiscal year in which assistance under
this Act is made available, the Secretary shall submit to
the Congress a report that contains—
(1) a description of the progress made in ac-
complishing the objectives of this Act; and
(2) a summary of the use of such funds during
the preceding fiscal year.
(b) RELATED REPORTS.—The Secretary may require
recipients of grant amounts under this Act to submit to
the Secretary such reports and other information as may
be necessary in order for the Secretary to make the report
required by subsection (a).
TITLE V—TERMINATION OF AS-
SISTANCE 
FOR 
INDIAN
TRIBES 
UNDER 
INCOR-
PORATED PROGRAMS
SEC. 501. TERMINATION OF INDIAN PUBLIC HOUSING AS-
SISTANCE UNDER UNITED STATES HOUSING
ACT OF 1937.
(a) IN GENERAL.—After September 30, 1997, finan-
cial assistance may not be provided under the United
States Housing Act of 1937 or pursuant to any commit-
ment entered into under such Act, for Indian housing de-
veloped or operated pursuant to a contract between the
Secretary and an Indian housing authority, unless such
assistance is provided from amounts made available for
fiscal year 1997 and pursuant to a commitment entered
into before September 30, 1997.
(b) TERMINATION OF RESTRICTIONS ON USE OF IN-
DIAN HOUSING.—Except as provided in section 203(b) of
this Act, any housing developed or operated pursuant to
a contract between the Secretary and an Indian housing
authority pursuant to the United States Housing Act of
1937 shall not be subject to any provision of such Act
or any annual contributions contract or other agreement
pursuant to such Act, but shall be considered and main-
tained as affordable housing for purposes of this Act.
SEC. 502. TERMINATION OF NEW COMMITMENTS FOR RENT-
AL ASSISTANCE.
After September 30, 1997, financial assistance for
rental housing assistance under the United States Hous-
ing Act of 1937 may not be provided to any Indian hous-
ing authority or tribally designated housing entity, unless
such assistance is provided pursuant to a contract for such
assistance entered into by the Secretary and the Indian
housing authority before such date.
SEC. 503. TERMINATION OF YOUTHBUILD PROGRAM AS-
SISTANCE.
(a) IN GENERAL.—Subtitle D of title IV of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12899 et seq.) is amended—
(1) by redesignating section 460 as section 461;
and
(2) by inserting after section 459 the following
new section:
‘‘SEC. 460. INELIGIBILITY OF INDIAN TRIBES.
‘‘Indian tribes, Indian housing authorities, and other
agencies primarily serving Indians or Indian areas shall
not be eligible applicants for amounts made available for
assistance under this subtitle for fiscal year 1997 and fis-
cal years thereafter.’’.
(b) EFFECTIVE DATE
AND APPLICABILITY.—The
amendments under subsection (a) shall be made on Octo-
ber 1, 1997, and shall apply with respect to amounts made
available for assistance under subtitle D of title II of the
Cranston-Gonzalez National Affordable Housing Act for
fiscal year 1998 and fiscal years thereafter.
SEC. 504. TERMINATION OF HOME PROGRAM ASSISTANCE.
(a) IN GENERAL.—Title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et
seq.) is amended—
(1) in section 217(a)—
(A) in paragraph (1), by striking ‘‘reserv-
ing amounts under paragraph (2) for Indian
tribes and after’’; and
(B) by striking paragraph (2); and
(2) in section 288—
(A) in subsection (a), by striking ‘‘, Indian
tribes,’’;
(B) in subsection (b), by striking ‘‘, Indian
tribe,’’; and
(C) in subsection (c)(4), by striking ‘‘, In-
dian tribe,’’.
(b) EFFECTIVE DATE
AND APPLICABILITY.—The
amendments under subsection (a) shall be made on Octo-
ber 1, 1997, and shall apply with respect to amounts made
available for assistance under title II of the Cranston-Gon-
zalez National Affordable Housing Act for fiscal year
1998 and fiscal years thereafter.
SEC. 505. TERMINATION OF HOUSING ASSISTANCE FOR THE
HOMELESS.
(a) MCKINNEY ACT PROGRAMS.—Title IV of the
Stewart B. McKinney Homeless Assistance Act (42 U.S.C.
11361 et seq.) is amended—
(1) in section 411, by striking paragraph (10);
(2) in section 412, by striking ‘‘, and for Indian
tribes,’’;
(3) in section 413—
(A) in subsection (a)—
(i) by striking ‘‘, and to Indian
tribes,’’; and
(ii) by striking ‘‘, or for Indian tribes’’
each place it appears;
(B) in subsection (c), by striking ‘‘or In-
dian tribe’’; and
(C) in subsection (d)(3)—
(i) by striking ‘‘, or Indian tribe’’ each
place it appears; and
(ii) by striking ‘‘, or other Indian
tribes,’’;
(4) in section 414(a)—
(A) by striking ‘or Indian tribe’’ each place
it appears; and
(B) by striking ‘‘, local government,’’ each
place it appears and inserting ‘‘or local govern-
ment’’;
(5) in section 415(c)(4), by striking ‘‘Indian
tribes,’’;
(6) in section 416(b), by striking ‘‘Indian
tribe,’’;
(7) in section 422—
(A) in by striking ‘‘Indian tribe,’’; and
(B) by striking paragraph (3);
(8) in section 441—
(A) by striking subsection (g);
(B) in subsection (h), by striking ‘‘or In-
dian housing authority’’; and
(C) in subsection (j)(1), by striking ‘‘, In-
dian housing authority’’;
(9) in section 462—
(A) in paragraph (2), by striking ‘‘, Indian
tribe,’’; and
(B) by striking paragraph (4); and
(10) in section 491(e), by striking ‘‘, Indian
tribes (as such term is defined in section 102(a) of
the Housing and Community Development Act of
1974),’’.
(b) INNOVATIVE HOMELESS DEMONSTRATION.—Sec-
tion 2(b) of the HUD Demonstration Act of 1993 (42
U.S.C. 11301 note) is amended—
(1) in paragraph (3), by striking ‘‘ ‘unit of gen-
eral local government’, and ‘Indian tribe’ ’’ and in-
serting ‘‘and ‘unit of general local government’ ’’;
and
(2) in paragraph (4), by striking ‘‘unit of gen-
eral local government (including units in rural
areas), or Indian tribe’’ and inserting ‘‘or unit of
general local government’’.
(c) EFFECTIVE DATE
AND APPLICABILITY.—The
amendments under subsections (a) and (b) shall be made
on October 1, 1997, and shall apply with respect to
amounts made available for assistance under title IV of
the Stewart B. McKinney Homeless Assistance Act and
section 2 of the HUD Demonstration Act of 1993, respec-
tively, for fiscal year 1998 and fiscal years thereafter.
SEC. 506. SAVINGS PROVISION.
Except as provided in sections 501 and 502, this Act
may not be construed to affect the validity of any right,
duty, or obligation of the United States or other person
arising under or pursuant to any commitment or agree-
ment lawfully entered into before October 1, 1997, under
the United States Housing Act of 1937, subtitle D of title
IV of the Cranston-Gonzalez National Affordable Housing
Act, title II of the Cranston-Gonzalez National Affordable
Housing Act, title IV of the Stewart B. McKinney Home-
less Assistance Act, or section 2 of the HUD Demonstra-
tion Act of 1993.
SEC. 507. EFFECTIVE DATE.
Sections 501, 502, and 506 shall take effect on the
date of the enactment of this Act.
TITLE 
VI—LOAN 
GUARANTEES
FOR AFFORDABLE HOUSING
ACTIVITIES
SEC. 601. AUTHORITY AND REQUIREMENTS.
(a) AUTHORITY.—To such extent or in such amounts
as provided in appropriation Acts, the Secretary may, sub-
ject to the limitations of this title and upon such terms
and conditions as the Secretary may prescribe, guarantee
and make commitments to guarantee, the notes or other
obligations issued by Indian tribes or tribally designated
housing entities, for the purposes of financing affordable
housing activities described in section 202.
(b) LACK OF FINANCING ELSEWHERE.—A guarantee
under this title may be used to assist an Indian tribe or
housing entity in obtaining financing only if the Indian