I
106TH CONGRESS
1ST SESSION
H. R. 1776
To expand homeownership in the United States.
IN THE HOUSE OF REPRESENTATIVES
MAY 12, 1999
Mr. LAZIO (for himself and Mr. LEACH) introduced the following bill; which
was referred to the Committee on Banking and Financial Services
A BILL
To expand homeownership in the United States.
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 1999’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.
TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
Sec. 101. Short title.
Sec. 102. Housing impact analysis.
Sec. 103. Grants for regulatory barrier removal strategies.
Sec. 104. Eligibility for community development block grants.
Sec. 105. Regulatory barriers clearinghouse.
TITLE II—HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE
AND LOAN GUARANTEES
Sec. 201. Study of mandatory inspection requirement under single family hous-
ing mortgage insurance program.
Sec. 202. Extension of loan term for manufactured home lots.
Sec. 203. Neighborhood teacher program.
Sec. 204. Insurance for mortgages to refinance existing home equity conversion
mortgages.
Sec. 205. Report on title I home improvement loan program.
TITLE III—SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
TITLE IV—COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Homeownership for municipal employees.
Sec. 404. Technical amendment relating to brownfields.
Sec. 405. Housing opportunities for persons with AIDS.
TITLE V—HOME INVESTMENT PARTNERSHIPS PROGRAM
Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing associa-
tions.
Sec. 503. Leveraging affordable housing investment through local loan pools.
Sec. 504. Loan guarantees.
Sec. 505. Homeownership for municipal employees.
TITLE VI—LOCAL HOMEOWNERSHIP INITIATIVES
Sec. 601. Reauthorization of neighborhood reinvestment corporation.
Sec. 602. Homeownership zones.
Sec. 603. Lease-to-own.
Sec. 604. Local capacity building.
Sec. 605. Consolidated application and planning requirement and super-NOFA.
TITLE VII—MANUFACTURED HOUSING IMPROVEMENT
Sec. 701. Short title and references.
Sec. 702. Findings and purposes.
Sec. 703. Definitions.
Sec. 704. Federal manufactured home construction and safety standards.
Sec. 705. Abolishment of National Manufactured Home Advisory Council.
Sec. 706. Public information.
Sec. 707. Research, testing, development, and training.
Sec. 708. Fees.
Sec. 709. Elimination of annual report requirement.
Sec. 710. Effective date.
Sec. 711. Savings provision.
TITLE VIII—INDIAN HOUSING HOMEOWNERSHIP
Sec. 801. Lands Title Report Commission.
Sec. 802. Loan guarantees for Indian housing.
TITLE IX—TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-
HELD HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY
DEVELOPMENT CORPORATIONS
Sec. 901. Transfer of unoccupied and substandard HUD-held housing to local
governments and community development corporations.
Sec. 902. Technical corrections to the Multifamily Assisted Housing Reform
and Affordability Act of 1997.
TITLE X—PRIVATE MORTGAGE INSURANCE CANCELLATION AND
TERMINATION
Sec. 1001. Treatment of adjustable rate mortgages.
Sec. 1002. Treatment of certain modifications.
Sec. 1003. Residential mortgages and residential mortgage transactions.
Sec. 1004. Clarification of status of balloon mortgage financing.
Sec. 1005. Disclosure requirements.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the priorities of our Nation should include
expanding homeownership opportunities by providing
access to affordable housing that is safe, clean, and
healthy;
(2) our Nation has an abundance of conven-
tional capital sources available for homeownership fi-
nancing; and
(3) experience with local homeownership pro-
grams has shown that if flexible capital sources are
available, communities possess ample will and cre-
ativity to provide opportunities uniquely designed to
assist their citizens in realizing the American dream
of homeownership.
(b) PURPOSE.—It is the purpose of this Act—
(1) to encourage and facilitate homeownership
by families in the United States who are not other-
wise able to afford homeownership; and
(2) to expand homeownership through policies
that—
(A) promote the ability of the private sec-
tor to produce affordable housing without exces-
sive government regulation;
(B) encourage tax incentives, such as the
mortgage interest deduction, at all levels of gov-
ernment; and
(C) facilitate the availability of flexible
capital for homeownership opportunities and
provide local governments with increased flexi-
bility under existing Federal programs to facili-
tate homeownership.
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 1999’’.
SEC. 102. HOUSING IMPACT ANALYSIS.
(a) APPLICABILITY.—The requirements of this sec-
tion shall apply with respect to—
(1) any proposed rule, unless the agency pro-
mulgating the rule—
(A) has certified that the proposed rule
will not, if given force or effect as a final rule,
have a significant deleterious impact on housing
affordability; and
(B) has caused such certification to be
published in the Federal Register at the time of
publication of general notice of proposed rule-
making for the rule, together with a statement
providing the factual basis for the certification;
and
(2) any final rule, unless the agency promul-
gating the rule—
(A) has certified that the rule will not, if
given force or effect, have a significant delete-
rious impact on housing affordability; and
(B) has caused such certification to be
published in the Federal Register at the time of
publication of the final rule, together with a
statement providing the factual basis for the
certification.
Any agency making a certification under this subsection
shall provide a copy of such certification and the state-
ment providing the factual basis for the certification to
the Secretary of Housing and Urban Development.
(b) STATEMENT
OF
PROPOSED
RULEMAKING.—
Whenever an agency publishes general notice of proposed
rulemaking for any proposed rule, unless the agency has
made a certification under subsection (a), the agency
shall—
(1) in the notice of proposed rulemaking—
(A) state with particularity the text of the
proposed rule; and
(B) request any interested persons to sub-
mit to the agency any written analyses, data,
views, and arguments, and any specific alter-
natives to the proposed rule that—
(i) accomplish the stated objectives of
the applicable statutes, in a manner com-
parable to the proposed rule;
(ii) result in costs to the Federal Gov-
ernment equal to or less than the costs re-
sulting from the proposed rule; and
(iii) result in housing affordability
greater than the housing affordability re-
sulting from the proposed rule;
(2) provide an opportunity for interested per-
sons to take the actions specified under paragraph
(1)(B) before promulgation of the final rule; and
(3) prepare and make available for public com-
ment an initial housing impact analysis in accord-
ance with the requirements of subsection (c).
(c) INITIAL HOUSING IMPACT ANALYSIS.—
(1) REQUIREMENTS.—Each initial housing im-
pact analysis shall describe the impact of the pro-
posed rule on housing affordability. The initial hous-
ing impact analysis or a summary shall be published
in the Federal Register at the same time as, and to-
gether with, the publication of general notice of pro-
posed rulemaking for the rule. The agency shall
transmit a copy of the initial housing impact anal-
ysis to the Secretary of Housing and Urban Devel-
opment.
(2) MONTHLY
HUD
LISTING.—On a monthly
basis, the Secretary of Housing and Urban Develop-
ment shall cause to be published in the Federal Reg-
ister, and shall make available through a World
Wide Web site of the Department, a listing of all
proposed rules for which an initial housing impact
analysis was prepared during the preceding month.
(3) CONTENTS.—Each initial housing impact
analysis 
required 
under 
this 
subsection 
shall
contain—
(A) a description of the reasons why action
by the agency is being considered;
(B) a succinct statement of the objectives
of, and legal basis for, the proposed rule;
(C) a description of and, where feasible, an
estimate of the extent to which the proposed
rule would increase the cost or reduce the sup-
ply of housing or land for residential develop-
ment; and
(D) an identification, to the extent prac-
ticable, of all relevant Federal rules which may
duplicate, overlap, or conflict with the proposed
rule.
(d) PROPOSAL OF LESS DELETERIOUS ALTERNATIVE
RULE.—
(1) ANALYSIS.—The agency publishing a gen-
eral notice of proposed rulemaking shall review any
specific analyses and alternatives to the proposed
rule which have been submitted to the agency pursu-
ant to subsection (b)(2) to determine whether any
alternative to the proposed rule—
(A) accomplishes the stated objectives of
the applicable statutes, in a manner comparable
to the proposed rule;
(B) results in costs to the Federal Govern-
ment equal to or less than the costs resulting
from the proposed rule; and
(C) results in housing affordability greater
than the housing affordability resulting from
the proposed rule.
(2) 
NEW
NOTICE
OF
PROPOSED
RULE-
MAKING.—If the agency determines that an alter-
native to the proposed rule meets the requirements
under subparagraphs (A) through (C) of paragraph
(1), unless the agency provides an explanation on
the record for the proposed rule as to why the alter-
native should not be implemented, the agency shall
incorporate the alternative into the final rule or, at
the agency’s discretion, issue a new proposed rule
which incorporates the alternative.
(e) FINAL HOUSING IMPACT ANALYSIS.—
(1) REQUIREMENT.—Whenever an agency pro-
mulgates a final rule after publication of a general
notice of proposed rulemaking, unless the agency has
made the certification under subsection (a), the
agency shall prepare a final housing impact analysis.
(2) CONTENTS.—Each final housing impact
analysis shall contain—
(A) a succinct statement of the need for,
and objectives of, the rule;
(B) a summary of the significant issues
raised during the public comment period in re-
sponse to the initial housing impact analysis, a
summary of the assessment of the agency of
such issues, and a statement of any changes
made in the proposed rule as a result of such
comments; and
(C) a description of and an estimate of the
extent to which the rule will impact housing af-
fordability or an explanation of why no such es-
timate is available.
(3) AVAILABILITY.—The agency shall make
copies of the final housing impact analysis available
to members of the public and shall publish in the
Federal Register such analysis or a summary there-
of.
(f) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY
ANALYSES.—
(1) DUPLICATION.—Any Federal agency may
perform the analyses required by subsections (c) and
(e) in conjunction with or as a part of any other
agenda or analysis required by any other law, execu-
tive order, directive, or rule if such other analysis
satisfies the provisions of such subsections.
(2) JOINDER.—In order to avoid duplicative ac-
tion, an agency may consider a series of closely re-
lated rules as one rule for the purposes of sub-
sections (c) and (e).
(g) PREPARATION OF ANALYSES.—In complying with
the provisions of subsections (c) and (e), an agency may
provide either a quantifiable or numerical description of
the effects of a proposed rule or alternatives to the pro-
posed rule, or more general descriptive statements if quan-
tification is not practicable or reliable.
(h) EFFECT ON OTHER LAW.—The requirements of
subsections (c) and (e) do not alter in any manner stand-
ards otherwise applicable by law to agency action.
(i) PROCEDURE FOR WAIVER OR DELAY OF COMPLE-
TION.—
(1) INITIAL HOUSING IMPACT ANALYSIS.—An
agency head may waive or delay the completion of
some or all of the requirements of subsection (c) by
publishing in the Federal Register, not later than
the date of publication of the final rule, a written
finding, with reasons therefor, that the final rule is
being promulgated in response to an emergency that
makes compliance or timely compliance with the pro-
visions of subsection (a) impracticable.
(2) FINAL
HOUSING
IMPACT
ANALYSIS.—An
agency head may not waive the requirements of sub-
section (e). An agency head may delay the comple-
tion of the requirements of subsection (e) for a pe-
riod of not more than 180 days after the date of
publication in the Federal Register of a final rule by
publishing in the Federal Register, not later than
such date of publication, a written finding, with rea-
sons therefor, that the final rule is being promul-
gated in response to an emergency that makes time-
ly compliance with the provisions of subsection (e)
impracticable. If the agency has not prepared a final
housing impact analysis pursuant to subsection (e)
within 180 days from the date of publication of the
final rule, such rule shall lapse and have no force or
effect. Such rule shall not be repromulgated until a
final housing impact analysis has been completed by
the agency.
(j) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) 
HOUSING
AFFORDABILITY.—The 
term
‘‘housing affordability’’ means the quantity of hous-
ing that is affordable to families having incomes that
do not exceed 150 percent of the median income of
families in the area in which the housing is located,
with adjustments for smaller and larger families.
For purposes of this paragraph, area, median family
income for an area, and adjustments for family size
shall be determined in the same manner as such fac-
tors are determined for purposes of section 3(b)(2)
of the United States Housing Act of 1937.
(2) AGENCY.—The term ‘‘agency’’ means each
authority of the Government of the United States,
whether or not it is within or subject to review by
another agency, but does not include—
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or
possessions of the United States;
(D) the government of the District of Co-
lumbia;
(E) agencies composed of representatives
of the parties or of representatives of organiza-
tions of the parties to the disputes determined
by them;
(F) courts-martial and military commis-
sions;
(G) military authority exercised in the field
in time of war or in occupied territory; or
(H) functions conferred by—
(i) sections 1738, 1739, 1743, and
1744 of title 12, United States Code;
(ii) chapter 2 of title 41, United
States Code;
(iii) subchapter II of chapter 471 of
title 49, United States Code; or
(iv) sections 1884, 1891–1902, and
former section 1641(b)(2), of title 50, ap-
pendix, United States Code.
(3) FAMILIES.—The term ‘‘families’’ has the
meaning given such term in section 3 of the United
States Housing Act of 1937.
(4) RULE.—The term ‘‘rule’’ means any rule
for which the agency publishes a general notice of
proposed rulemaking pursuant to section 553(b) of
title 5, United States Code, or any other law, includ-
ing any rule of general applicability governing grants
by an agency to State and local governments for
which the agency provides an opportunity for notice
and public comment; except that such term does not
include a rule of particular applicability relating to
rates, wages, corporate or financial structures or re-
organizations thereof, prices, facilities, appliances,
services, or allowances therefor or to valuations,
costs or accounting, or practices relating to such
rates, wages, structures, prices, appliances, services,
or allowances.
(5) 
SIGNIFICANT.—The 
term 
‘‘significant’’
means increasing consumers’ cost of housing by
more than $100,000,000 per year.
(k) DEVELOPMENT.—Not later than 1 year after the
date of the enactment of this title, the Secretary of Hous-
ing and Urban Development shall develop model initial
and final housing impact analyses under this section and
shall cause such model analyses to be published in the
Federal Register. The model analyses shall define the pri-
mary elements of a housing impact analysis to instruct
other agencies on how to carry out and develop the anal-
yses required under subsections (a) and (c).
(l) JUDICIAL REVIEW.—
(1) DETERMINATION BY AGENCY.—Except as
otherwise provided in paragraph (2), any determina-
tion by an agency concerning the applicability of any
of the provisions of this title to any action of the
agency shall not be subject to judicial review.
(2) OTHER ACTIONS BY AGENCY.—Any housing
impact analysis prepared under subsection (c) or (e)
and the compliance or noncompliance of the agency
with the provisions of this title shall not be subject
to judicial review. When an action for judicial review
of a rule is instituted, any housing impact analysis
for such rule shall constitute part of the whole
record of agency action in connection with the re-
view.
(3) EXCEPTION.—Nothing in this subsection
bars judicial review of any other impact statement or
similar analysis required by any other law if judicial
review of such statement or analysis is otherwise
provided by law.
SEC. 103. 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)
$15,000,000 for fiscal year 2000 and such sums as may
be necessary for each of fiscal years 2001, 2002, 2003,
and 2004.’’.
(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-
fordability strategy for the jurisdiction pursuant to
section 105(b)(4) of the Cranston-Gonzalez National
Affordable Housing Act’’.
(e) SELECTION OF GRANTEES.—Subsection (f) of
section 1204 of the Housing and Community Development
Act of 1992 (42 U.S.C. 12705c(f)) is amended to read
as follows:
‘‘(f) SELECTION
OF GRANTEES.—To the extent
amounts are made available to carry out this section, the
Secretary shall provide grants on a competitive basis to
eligible grantees based on the proposed uses of such
amounts, as provided in applications under subsection
(e).’’.
(f) TECHNICAL AMENDMENTS.—Section 107(a)(1) of
the Housing and Community Development Act of 1974
(42 U.S.C. 5307(a)(1)) is amended—
(1) in subparagraph (G), by inserting ‘‘and’’
after the semicolon at the end;
(2) by striking subparagraph (H); and
(3) by redesignating subparagraph (I) as sub-
paragraph (H).
SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT
BLOCK GRANTS.
(a) IN GENERAL.—Section 104(c)(1) of the Housing
and Community Development Act of 1974 (42 U.S.C.
5304(c)(1)) is amended by inserting before the comma the
following: ‘‘, which shall include making a good faith effort
to carry out the strategy established under section
105(b)(4) of such Act by the unit of general local govern-
ment to remove barriers to affordable housing’’.
(b) RULE
OF
CONSTRUCTION.—The amendment
made by subsection (a) may not be construed to create
any new private right of action.
SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.
Section 1205 of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 12705d) is amended—
(1) in subsection (a)—
(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 105 of the Housing Affordability
Barrier Removal Act of 1999) 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