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(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises
by, persons residing in the immediate vicinity of
the premises; or
(C) is criminal activity (including drug-re-
lated criminal activity) on or off the premises.
(b) TENANT SELECTION.—The owner or manager of
affordable rental housing assisted with grant amounts pro-
vided under this Act shall adopt and utilize written tenant
selection policies and criteria that—
(1) are consistent with the purpose of providing
housing for low-income families;
(2) are reasonably related to program eligibility
and the ability of the applicant to perform the obli-
gations of the lease; and
(3) provide for—
(A) the selection of tenants from a written
waiting list in accordance with the policies and
goals set forth in the Indian housing plan for
the tribe that is the grant beneficiary of such
grant amounts; and
(B) the prompt notification in writing of
any rejected applicant of the grounds for any
rejection.
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SEC. 208. AVAILABILITY OF RECORDS.
(a) PROVISION OF INFORMATION.—Notwithstanding
any other provision of law, except as provided in para-
graph (2), the National Crime Information Center, police
departments, and other law enforcement agencies shall,
upon request, provide information to Indian tribes or trib-
ally designated housing entities regarding the criminal
conviction records of adult applicants for, or tenants of,
housing assisted with grant amounts provided to such
tribe or entity under this Act for purposes of applicant
screening, lease enforcement, and eviction.
(b) EXCEPTION.—A law enforcement agency de-
scribed in paragraph (1) shall provide information under
this paragraph relating to any criminal conviction of a ju-
venile only to the extent that the release of such informa-
tion is authorized under the law of the applicable State,
tribe, or locality.
(c) CONFIDENTIALITY.—An Indian tribe or tribally
designated housing entity receiving information under this
section may use such information only for the purposes
provided in this section and such information may not be
disclosed to any person who is not an officer, employee,
or authorized representative of the tribe or entity or the
owner of housing assisted under this Act, and who has
a job-related need to have access to the information for
the purposes under this section. For judicial eviction pro-
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ceedings, disclosures may be made to the extent necessary.
The Secretary shall, by regulation, establish procedures
necessary to ensure that information provided under this
section to any tribe or entity is used, and confidentiality
is maintained, as required under this section.
SEC. 209. REPAYMENT.
If a recipient uses grant amounts to provide afford-
able housing under activities under this title and, at any
time during the useful life of the housing the housing does
not comply with the requirement under section 205(2), the
Secretary shall reduce future grant payments on behalf
of the grant beneficiary by an amount equal to the grant
amounts used for such housing (under the authority under
section 401(a)(2)) or require repayment to the Secretary
of an amount equal to such grant amounts.
SEC. 210. CONTINUED USE OF AMOUNTS FOR AFFORDABLE
HOUSING.
Any funds for programs for low-income housing
under the United States Housing Act of 1937 that, on
the date of the applicability of this Act to an Indian tribe,
are owned by, or in the possession or under the control
of, the Indian housing authority for the tribe, including
all reserves not otherwise obligated, shall be considered as-
sistance under this Act and subject to the provisions of
this Act relating to use of such assistance.
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TITLE III—ALLOCATION OF
GRANT AMOUNTS
SEC. 301. ANNUAL ALLOCATION.
For each fiscal year, the Secretary shall allocate any
amounts made available for assistance under this Act for
the fiscal year, in accordance with the formula established
pursuant to section 302, among Indian tribes that comply
with the requirements under this Act for a grant under
this Act.
SEC. 302. ALLOCATION FORMULA.
(a) ESTABLISHMENT.—The Secretary shall, by regu-
lations issued not later than the expiration of the 12-
month period beginning on the date of the enactment of
this Act, in the manner provided under section 106, estab-
lish a formula to provide for allocating amounts available
for a fiscal year for block grants under this Act among
Indian tribes in accordance with the requirements of this
section.
(b) FACTORS FOR DETERMINATION OF NEED.—The
formula shall be based on factors that reflect the need of
the Indian tribes and the Indian areas of the tribes for
assistance for affordable housing activities, including the
following factors:
(1) The number of low-income housing dwelling
units owned or operated at the time pursuant to a
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contract between an Indian housing authority for
the tribe and the Secretary.
(2) The extent of poverty and economic distress
and the number of Indian families within Indian
areas of the tribe.
(3) Other objectively measurable conditions as
the Secretary and the Indian tribes may specify.
(c) OTHER FACTORS FOR CONSIDERATION.—In es-
tablishing the formula, the Secretary shall consider—
(1) the relative administrative capacities and
other challenges faced by the recipient, including,
but not limited to geographic distribution within the
Indian area and technical capacity; and
(2) the extent to which terminations of assist-
ance under title V will affect funding available to
State recognized tribes.
(d) FUNDING
FOR PUBLIC HOUSING OPERATION
AND MODERNIZATION.—
(1) FULL FUNDING.—The formula shall provide
that, if, in any fiscal year, the total amount made
available for assistance under this Act is equal to or
greater than the total amount made available for fis-
cal year 1996 for assistance for the operation and
modernization of public housing developed or oper-
ated pursuant to a contract between the Secretary
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and an Indian housing authority pursuant to the
United States Housing Act of 1937, the amount
provided for such fiscal year for each Indian tribe
for which such operating or modernization assistance
was provided for fiscal year 1996 shall not be less
than the total amount of such operating and mod-
ernization assistance provided for fiscal year 1996
for such tribe.
(2) PARTIAL FUNDING.—The formula shall pro-
vide that, if, in any fiscal year, the total amount
made available for assistance under this Act is less
than the total amount made available for fiscal year
1996 for assistance for the operation and mod-
ernization of public housing developed or operated
pursuant to a contract between the Secretary and an
Indian housing authority pursuant to the United
States Housing Act of 1937, the amount provided
for such fiscal year for each Indian tribe for which
such operating or modernization assistance was pro-
vided for fiscal year 1996 shall not be less than the
amount that bears the same ratio to the total
amount available for assistance under this Act for
such fiscal year that the amount of operating and
modernization assistance provided for the tribe for
fiscal year 1996 bears to the total amount made
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available for fiscal year 1996 for assistance for the
operation and modernization of such public housing.
(e) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
TITLE IV—COMPLIANCE,
AUDITS, AND REPORTS
SEC. 401. REMEDIES FOR NONCOMPLIANCE.
(a) ACTIONS
BY SECRETARY AFFECTING GRANT
AMOUNTS.—Except as provided in subsection (b), if the
Secretary finds after reasonable notice and opportunity for
hearing that a recipient of assistance under this Act has
failed to comply substantially with any provision of this
Act, the Secretary shall—
(1) terminate payments under this Act to the
recipient;
(2) reduce payments under this Act to the re-
cipient by an amount equal to the amount of such
payments that were not expended in accordance with
this Act;
(3) limit the availability of payments under this
Act to programs, projects, or activities not affected
by such failure to comply; or
(4) in the case of noncompliance described in
section 402(b), provide a replacement tribally des-
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ignated housing entity for the recipient, under sec-
tion 402.
If the Secretary takes an action under paragraph (1), (2),
or (3), the Secretary shall continue such action until the
Secretary determines that the failure to comply has
ceased.
(b) NONCOMPLIANCE BECAUSE OF TECHNICAL INCA-
PACITY.—If the Secretary makes a finding under sub-
section (a), but determines that the failure to comply sub-
stantially with the provisions of this Act—
(1) is not a pattern or practice of activities con-
stituting willful noncompliance, and
(2) is a result of the limited capability or capac-
ity of the recipient,
the Secretary may provide technical assistance for the re-
cipient (directly or indirectly) that is designed to increase
the capability and capacity of the recipient to administer
assistance provided under this Act in compliance with the
requirements under this Act.
(c) REFERRAL FOR CIVIL ACTION.—
(1) AUTHORITY.—In lieu of, or in addition to,
any action authorized by subsection (a), if the Sec-
retary has reason to believe that a recipient has
failed to comply substantially with any provision of
this Act, the Secretary may refer the matter to the
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Attorney General of the United States with a rec-
ommendation that an appropriate civil action be in-
stituted.
(2) CIVIL ACTION.—Upon such a referral, the
Attorney General may bring a civil action in any
United States district court having venue thereof for
such relief as may be appropriate, including an ac-
tion to recover the amount of the assistance fur-
nished under this Act that was not expended in ac-
cordance with it, or for mandatory or injunctive re-
lief.
(d) REVIEW.—
(1) IN GENERAL.—Any recipient who receives
notice under subsection (a) of the termination, re-
duction, or limitation of payments under this Act—
(A) may, not later than 60 days after re-
ceiving such notice, file with the United States
Court of Appeals for the circuit in which such
State is located, or in the United States Court
of Appeals for the District of Columbia, a peti-
tion for review of the action of the Secretary;
and
(B) upon the filing of any petition under
subparagraph (A), shall forthwith transmit cop-
ies of the petition to the Secretary and the At-
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torney General of the United States, who shall
represent the Secretary in the litigation.
(2) PROCEDURE.—The Secretary shall file in
the court a record of the proceeding on which the
Secretary based the action, as provided in section
2112 of title 28, United States Code. No objection
to the action of the Secretary shall be considered by
the court unless such objection has been urged be-
fore the Secretary.
(3) DISPOSITION.—
(A) COURT
PROCEEDINGS.—The court
shall have jurisdiction to affirm or modify the
action of the Secretary or to set it aside in
whole or in part. The findings of fact by the
Secretary, if supported by substantial evidence
on the record considered as a whole, shall be
conclusive. The court may order additional evi-
dence to be taken by the Secretary, and to be
made part of the record.
(B) SECRETARY.—The Secretary—
(i) may modify the findings of fact of
the Secretary, or make new findings, by
reason of the new evidence so taken and
filed with the court; and
(ii) shall file—
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(I) such modified or new find-
ings, which findings with respect to
questions of fact shall be conclusive if
supported by substantial evidence on
the record considered as a whole; and
(II) the recommendation of the
Secretary, if any, for the modification
or setting aside of the original action
of the Secretary.
(4) FINALITY.—Upon the filing of the record
with the court, the jurisdiction of the court shall be
exclusive and its judgment shall be final, except that
such judgment shall be subject to review by the Su-
preme Court of the United States upon writ of cer-
tiorari or certification as provided in section 1254 of
title 28, United State Code.
SEC. 402. REPLACEMENT OF RECIPIENT.
(a) AUTHORITY.—As a condition of the Secretary
making a grant under this Act on behalf of an Indian
tribe, the tribe shall agree that, notwithstanding any other
provision of law, the Secretary may, only in the cir-
cumstances set forth in subsection (b), require that a re-
placement tribally designated housing entity serve as the
recipient for the tribe, in accordance with subsection (c).
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(b) CONDITIONS OF REMOVAL.—The Secretary may
require such replacement tribally designated housing en-
tity for a tribe only upon a determination by the Secretary
on the record after opportunity for a hearing that the re-
cipient for the tribe has engaged in a pattern or practice
of activities that constitutes substantial or willful non-
compliance with the requirements under this Act.
(c) CHOICE AND TERM OF REPLACEMENT.—If the
Secretary requires that a replacement tribally designated
housing entity serve as the recipient for a tribe (or
tribes)—
(1) the replacement entity shall be an entity
mutually agreed upon by the Secretary and the tribe
(or tribes) for which the recipient was authorized to
act, except that if no such entity is agreed upon be-
fore the expiration of the 60-day period beginning
upon the date that the Secretary makes the deter-
mination under subsection (b), the Secretary shall
act as the replacement entity until agreement is
reached upon a replacement entity; and
(2) the replacement entity (or the Secretary, as
provided in paragraph (1)) shall act as the tribally
designated housing entity for the tribe (or tribes) for
a period that expires upon—
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(c) PERFORMANCE MEASURES.—The Secretary shall
establish such performance measures as may be necessary
to assess compliance with the requirements of this Act.
SEC. 404. PERFORMANCE REPORTS.
(a) REQUIREMENT.—For each fiscal year, each recip-
ient shall—
(1) review the progress it has made during such
fiscal year in carrying out the Indian housing plan
(or plans) for the Indian tribes for which it admin-
isters grant amounts; and
(2) submit a report to the Secretary (in a form
acceptable to the Secretary) describing the conclu-
sions of the review.
(b) CONTENT.—Each report under this section for a
fiscal year shall—
(1) describe the use of grant amounts provided
to the recipient for such fiscal year;
(2) assess the relationship of such use to the
goals identified in the Indian housing plan of the
grant beneficiary;
(3) indicate the programmatic accomplishments
of the recipient; and
(4) describe the manner in which the recipient
would change its programs as a result of its experi-
ences.
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(c) SUBMISSION.—The Secretary shall establish dates
for submission of reports under this section, and review
such reports and make such recommendations as the Sec-
retary considers appropriate to carry out the purposes of
this Act.
(d) PUBLIC AVAILABILITY.—A recipient preparing a
report under this section shall make the report publicly
available to the citizens in the jurisdiction of the recipient
in sufficient time to permit such citizens to comment on
such report prior to its submission to the Secretary, and
in such manner and at such times as the recipient may
determine. The report shall include a summary of any
comments received by the grant beneficiary or recipient
from citizens in its jurisdiction regarding its program.
SEC. 405. REVIEW AND AUDIT BY SECRETARY.
(a) ANNUAL REVIEW.—The Secretary shall, not less
than on an annual basis, make such reviews and audits
as may be necessary or appropriate to determine—
(1) whether the recipient has carried out its eli-
gible activities in a timely manner, has carried out
its eligible activities and certifications in accordance
with the requirements and the primary objectives of
this Act and with other applicable laws, and has a
continuing capacity to carry out those activities in a
timely manner;
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(2) whether the recipient has complied with the
Indian housing plan of the grant beneficiary; and
(3) whether the performance reports under sec-
tion 404 of the recipient are accurate.
Reviews under this section shall include, insofar as prac-
ticable, onsite visits by employees of the Department of
Housing and Urban Development.
(b) REPORT BY SECRETARY.—The Secretary shall
give a recipient not less than 30 days to review and com-
ment on a report under this subsection. After taking into
consideration the comments of the recipient, the Secretary
may revise the report and shall make the comments of
the recipient and the report, with any revisions, readily
available to the public not later than 30 days after receipt
of the comments of the recipient.
(c) EFFECT OF REVIEWS.—The Secretary may make
appropriate adjustments in the amount of the annual
grants under this Act in accordance with the findings of
the Secretary pursuant to reviews and audits under this
section. The Secretary may adjust, reduce, or withdraw
grant amounts, or take other action as appropriate in ac-
cordance with the reviews and audits of the Secretary
under this section, except that grant amounts already ex-
pended on affordable housing activities may not be recap-
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tured or deducted from future assistance provided on be-
half of an Indian tribe.
SEC. 406. GAO AUDITS.
To the extent that the financial transactions of In-
dian tribes and recipients of grant amounts under this Act
relate to amounts provided under this Act, such trans-
actions may be audited by the Comptroller General of the
United States under such rules and regulations as may
be prescribed by the Comptroller General. The representa-
tives of the General Accounting Office shall have access
to all books, accounts, records, reports, files, and other
papers, things, or property belonging to or in use by such
tribes and recipients pertaining to such financial trans-
actions and necessary to facilitate the audit.
SEC. 407. REPORTS TO CONGRESS.
(a) IN GENERAL.—Not later than 90 days after the
conclusion of each fiscal year in which assistance under
this Act is made available, the Secretary shall submit to
the Congress a report that contains—
(1) a description of the progress made in ac-
complishing the objectives of this Act;
(2) a summary of the use of funds available
under this Act during the preceding fiscal year; and
(3) a description of the aggregate outstanding
loan guarantees under title VI.
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(b) RELATED REPORTS.—The Secretary may require
recipients of grant amounts under this Act to submit to
the Secretary such reports and other information as may
be necessary in order for the Secretary to make the report
required by subsection (a).
TITLE V—TERMINATION OF AS-
SISTANCE 
FOR 
INDIAN
TRIBES 
UNDER 
INCOR-
PORATED PROGRAMS
SEC. 501. REPEAL OF PROVISIONS RELATING TO INDIAN
HOUSING 
ASSISTANCE 
UNDER 
UNITED
STATES HOUSING ACT OF 1937.
(a) REPEAL OF TITLE II.—Title II of the United
States Housing Act of 1937 (42 U.S.C 1437aa et seq.)
is hereby repealed.
(b) AMENDMENTS TO TITLE I.—Title I of the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended—
(1) in section 3(b)—
(A)in paragraph (5)—
(i) in subparagraph (F) by inserting
‘‘and’’ after the semicolon at the end;
(ii) by striking subparagraph (G); and
(iii) by redesignating subparagraph
(H) as subparagraph (G);
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(B) in paragraph (6), by striking the last
sentence;
(C) in paragraph (7)—
(i) by inserting ‘‘and’’ before ‘‘the
Trust’’; and
(ii) by striking ‘‘, and Indian tribes’’;
and
(D) by striking paragraphs (9), (10), (11),
and (12);
(2) in section 5—
(A) in subsection (j)(1), by striking
‘‘(other than for Indian families)’’; and
(B) by striking subsection (l);
(3) in section 6(b)(1), by striking ‘‘and public
housing for Indians and Alaska Natives in accord-
ance with the Indian Housing Act of 1988’’;
(4) in subsection 7, by striking subsection (l);
(5) in section 9(a)(1)(A), in the second sen-
tence—
(A) by inserting ‘‘and’’ after the comma at
the end of clause (i); and
(B) by striking ‘‘, and (iii)’’ and all that
follows through ‘‘project is occupied’’;
(6) in section 14—