105TH CONGRESS
2D SESSION
H. R. 3899
AN ACT
To expand homeownership in the United States.
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘American Homeownership Act of 1998’’.
(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 AFFORDABLE HOUSING
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. Adjustable rate mortgages.
Sec. 202. Housing inspection study.
Sec. 203. Definition of area.
Sec. 204. Extension of loan term for manufactured home lots.
Sec. 205. Repeal of requirements for approval for insurance prior to start of
construction.
Sec. 206. Rehabilitation demonstration grant program.
TITLE III—SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
TITLE IV—HOME INVESTMENT PARTNERSHIPS PROGRAM
Sec. 401. Reauthorization.
Sec. 402. Eligibility of limited equity cooperatives and mutual housing associa-
tions.
Sec. 403. Leveraging affordable housing investment through local loan pools.
Sec. 404. Loan guarantees.
TITLE V—LOCAL HOMEOWNERSHIP INITIATIVES
Sec. 501. Reauthorization of neighborhood reinvestment corporation.
Sec. 502. Homeownership zones.
Sec. 503. Lease-to-own.
Sec. 504. Local capacity building.
TITLE VI—MANUFACTURED HOUSING IMPROVEMENT
Sec. 601. Short title and 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.
Sec. 606. Public information.
Sec. 607. Research, testing, development, and training.
Sec. 608. Fees.
Sec. 609. Elimination of annual report requirement.
Sec. 610. Effective date.
Sec. 611. Savings provision.
TITLE VII—INDIAN HOUSING HOMEOWNERSHIP
Sec. 701. Indian lands title report commission.
TITLE VIII—TRANSFER OF UNOCCUPIED AND SUBSTANDARD
HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND COMMU-
NITY DEVELOPMENT CORPORATIONS
Sec. 801. Transfer of unoccupied and substandard HUD-held housing to local
governments and community development corporations.
Sec. 802. Amendment to revitalization area disposition program.
Sec. 803. Report on revitalization zones for HUD-owned single family prop-
erties.
Sec. 804. Technical correction to income targeting provisions for project-based
assistance.
Sec. 805. Technical corrections to the Multifamily Assisted Housing Reform
and Affordability Act of 1997.
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.
TITLE 
I—REMOVAL 
OF 
BAR-
RIERS 
TO 
AFFORDABLE
HOUSING
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Affordable Housing
Barrier Removal Act of 1998’’.
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 promulgat-
ing 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 analy-
sis to the Secretary of Housing and Urban Develop-
ment.
(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 con-
tain—
(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—
(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 analy-
ses 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 1999 and each fiscal year
thereafter through fiscal year 2003.’’.
(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-
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
THROUGH MORTGAGE INSUR-
ANCE AND LOAN GUARAN-
TEES
SEC. 201. ADJUSTABLE RATE MORTGAGES.
Section 251(c) of the National Housing Act (12
U.S.C. 1715z–16(c)) is amended—
(1) by striking ‘‘(c) The’’ and inserting ‘‘(c)(1)
Except as provided in paragraph (2), the’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2)(A) The Secretary may, not less than 30 days
after submitting to the Congress a written finding under
subparagraph (B), insure under this section in the fiscal
year for which the finding is submitted an aggregate num-
ber of mortgages and loans not exceeding 40 percent of
the aggregate number of mortgages and loans insured by
the Secretary under this title during the preceding fiscal
year.
‘‘(B) A finding under this subparagraph is a finding
that—
‘‘(I) the limitation under paragraph (1) on au-
thority to insure mortgages and loans during a fiscal
year will be reached before the end of that fiscal
year;
‘‘(II) an increase in such limitation is necessary
to meet the demand for insurance under this section
during the fiscal year;
‘‘(III) the Mutual Mortgage Insurance Fund is
actuarily sound; and
‘‘(IV) an increase in such limitation will not ad-
versely impact the actuarial soundness of the Mutual
Mortgage Insurance Fund.’’.
SEC. 202. HOUSING INSPECTION STUDY.
The Comptroller General of the United States shall
conduct a study regarding the inspection of properties
purchased with loans insured under section 203 of the Na-
tional Housing Act. The study shall evaluate—
(1) the feasibility of requiring inspections of
properties purchased with loans insured under such
section;
(2) the level of financial losses or savings to the
Mutual Mortgage Insurance Fund that are likely to
occur if inspections are required on properties pur-
chased with loans insured under such section;
(3) the potential impact on the process of buy-
ing a home if inspections of properties purchased
with loans insured under such section are required,
including the process of buying a home in under-
served areas where losses to the Mutual Mortgage
Insurance Fund are greatest;
(4) the difference, if any, in the quality of
homes purchased with loans insured under such sec-
tion that are inspected before purchase and such
homes that are not inspected before purchase;
(5) the cost to homebuyers of requiring inspec-
tions before purchase of properties with loans in-
sured under such section;
(6) the extent, if any, to which requiring inspec-
tions of properties purchased with loans insured
under such section will result in adverse selection of
loans insured under such section; and
(7) homebuyer knowledge regarding property
inspections and the extent to which such knowledge
affects the decision of homebuyers to opt for or
against having a property inspection before purchas-
ing a home.
SEC. 203. DEFINITION OF AREA.
(a) DISCRETION TO ENLARGE AREAS AND MEDIAN
PRICE
IN MSA’S.—Section 203(b)(2) of the National
Housing Act (12 U.S.C. 1709(b)(2)) is amended, the first
sentence after subparagraph (B), by inserting before the
period the following: ‘‘; except that the Secretary may pro-
vide that any county or statistical area, together with any
counties contiguous or proximate to such county or statis-
tical area, be treated as a single area for purposes of the
preceding sentence; and except that the median 1-family
housing price for any metropolitan statistical area shall
be equal to the median 1-family housing price of the coun-
ty within the area that has the highest such median
price’’.
(b) MEDIAN PRICE IN EXPANDED MSA’S.—The first
sentence after subparagraph (B) of section 203(b)(2) of
the National Housing Act (12 U.S.C. 1709(b)(2)), as
amended by subsection (a) of this section, is further
amended by inserting before the period at the end the fol-
lowing: ‘‘; and except that for fiscal year 1999 the median
1-family housing price for any area (for purposes of the
preceding sentence) that consists of a metropolitan statis-
tical area together with the counties contiguous or proxi-
mate to such metropolitan statistical area shall be equal
to the median 1-family housing price of the county within
such area (for purposes of the preceding sentence) that
has the highest such median price’’.
SEC. 204. EXTENSION OF LOAN TERM FOR MANUFACTURED
HOME LOTS.
Section 2(b)(3)(E) of the National Housing Act (12
U.S.C. 1703(b)(3)(E)) is amended by striking ‘‘fifteen’’
and inserting ‘‘twenty’’.
SEC. 205. REPEAL OF REQUIREMENTS FOR APPROVAL FOR
INSURANCE PRIOR TO START OF CONSTRUC-
TION.
The National Housing Act is amended—
(1) in section 203 (12 U.S.C. 1709)—
(A) in subsection (b)(2), by striking the
4th sentence in the first undesignated para-
graph following subparagraph (B); and
(B) in subsection (i), by striking ‘‘(or, in
any case’’ and all that follows through ‘‘90 cen-
tum)’’; and
(2) in section 220(d)(3)(A)(i) (12 U.S.C.
1715k(d)(3)(A)(i)), by striking ‘‘(but, in any case’’
and all that follows through ‘‘90 per centum)’’.
SEC. 206. REHABILITATION DEMONSTRATION GRANT PRO-
GRAM.
(a) SHORT TITLE.—Effective immediately after the
enactment of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agen-
cies Appropriations Act, 1999, section 599G of such Act
is amended—
(1) by redesignating subsections (a), (b), (c),
(d), (e), (f), and (g) as subsections (b), (c), (d), (e),
(f), (g), and (h), respectively; and
(2) by inserting before subsection (b) (as so re-
designated) the following new subsection:
‘‘(a) SHORT TITLE.—This section may be cited as the
‘Joseph P. Kennedy II Homeownership Rehabilitation
Demonstration Grant Act’.’’.
(b) AVAILABILITY OF MMIF.—Section 205 of the
National Housing Act (12 U.S.C. 1711) is amended by
adding at the end the following new subsection:
‘‘(i) AVAILABILITY
FOR
REHABILITATION
PRO-
GRAM.—Amounts in the Mutual Mortgage Insurance
Fund shall be available to the Secretary during fiscal year
1999 to carry out the program under section 599G of the
Quality Housing and Work Responsibility Act of 1998, ex-
cept that the Secretary may not use more than an aggre-
gate of $25,000,000 from the Mutual Mortgage Insurance
Fund for such purpose.’’.
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 follow-
ing 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.
TITLE IV—HOME INVESTMENT
PARTNERSHIPS PROGRAM
SEC. 401. REAUTHORIZATION.
Section 205 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12724) is amended to
read as follows:
‘‘SEC. 205. AUTHORIZATION.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this title $1,600,000,000 for fiscal
year 1999 and such sums as may be necessary for each
of fiscal years 2000 through 2003, of which—
‘‘(1) not more than $25,000,000 in each such
fiscal year shall be for community housing partner-
ship activities authorized under section 233; and
‘‘(2) not more than $15,000,000 in each such
fiscal year shall be for activities in support of State
and local housing strategies authorized under sub-
title C.
‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro-
vided in subsection (a) of this section and section
217(a)(3), amounts appropriated pursuant to subsection
(a) or otherwise to carry out this title shall be used only
for formula-based grants allocated pursuant to section 217
and may not be otherwise used unless the provision of law
providing for such other use specifically refers to this sub-
section and specifically states that such provision modifies
or supersedes the provisions of this subsection.’’.
SEC. 402. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES
AND MUTUAL HOUSING ASSOCIATIONS.
(a) CONGRESSIONAL FINDINGS.—Section 202(10) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721(10)) is amended by inserting ‘‘mutual
housing associations,’’ after ‘‘limited equity cooperatives,’’.
(b) DEFINITIONS.—Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704) is amended—
(1) by redesignating paragraph (23) as para-
graph (22);
(2) by redesignating paragraph (24) (relating to
the definition of ‘‘insular area’’) as paragraph (23);
and
(3) by adding at the end the following new
paragraphs:
‘‘(26) The term ‘limited equity cooperative’
means a cooperative housing corporation which, in a
manner determined by the Secretary to be accept-
able, restricts income eligibility of purchasers of
membership shares of stock in the cooperative cor-
poration or the initial and resale price of such
shares, or both, so that the shares remain available
and affordable to low-income families.
‘‘(27) The term ‘mutual housing association’
means a private entity that—
‘‘(A) is organized under State law;
‘‘(B) is described in section 501(c) of the
Internal Revenue Code of 1986 and exempt
from taxation under section 501(a) of such
Code;
‘‘(C) owns, manages, and continuously de-
velops affordable housing by providing long-
term housing for low- and moderate-income
families;
‘‘(D) provides that eligible families who
purchase membership interests in the associa-
tion shall have a right to residence in a dwelling
unit in the housing during the period that they
hold such membership interest; and
‘‘(E) provides for the residents of such
housing to participate in the ongoing manage-
ment of the housing.’’.
(c) ELIGIBILITY.—Section 215 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12745)
is amended—
(1) in subsection (b), by adding after and below
paragraph (4) the following:
‘‘Housing that is owned by a limited equity cooperative
or a mutual housing association may be considered by a
participating jurisdiction to be housing for homeownership
for purposes of this title to the extent that ownership or
membership in such a cooperative or association, respec-
tively, constitutes homeownership under State or local
laws.’’; and
(2) in subsection (a), by adding at the end the
following new paragraph:
‘‘(6) LIMITED EQUITY COOPERATIVES AND MU-
TUAL
HOUSING
ASSOCIATIONS.—Housing that is
owned by a limited equity cooperative or a mutual
housing association may be considered by a partici-
pating jurisdiction to be rental housing for purposes
of this title to the extent that ownership or member-
ship in such a cooperative or association, respec-
tively, constitutes rental of a dwelling under State or
local laws.’’.
SEC. 403. LEVERAGING AFFORDABLE HOUSING INVEST-
MENT THROUGH LOCAL LOAN POOLS.
(a) ELIGIBLE INVESTMENTS.—Section 212(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(b)) is amended by inserting after ‘‘interest
subsidies’’ the following: ‘‘, advances to provide reserves
for loan pools or to provide partial loan guarantees,’’.
(b) TIMELY INVESTMENT OF TRUST FUNDS.—Sec-
tion 218(e) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12748) is amended to read as
follows:
‘‘(e) INVESTMENT WITHIN 15 DAYS.——
‘‘(1) IN GENERAL.—The participating jurisdic-
tion shall, not later than 15 days after funds are
drawn from the jurisdiction’s HOME Investment
Trust Fund, invest such funds, together with any in-
terest earned thereon, in the affordable housing for
which the funds were withdrawn.
‘‘(2) LOAN POOLS.—In the case of a participat-
ing jurisdiction that withdraws Trust Fund amounts
for investment in the form of an advance for re-
serves or partial loan guarantees under a program
providing such credit enhancement for loans for af-
fordable housing, the amounts shall be considered to
be invested for purposes of paragraph (1) upon the
completion of both of the following actions:
‘‘(A) Control of the amounts is transferred
to the program.
‘‘(B) The jurisdiction and the entity oper-
ating the program enter into a written agree-
ment that—
‘‘(i) provides that such funds may be
used only in connection with such program;
‘‘(ii) defines the terms and conditions
of the loan pool reserve or partial loan
guarantees; and
‘‘(iii) provides that such entity shall
ensure that amounts from non-Federal
sources have been contributed, or are com-
mitted for contribution, to the pool avail-
able for loans for affordable housing that
will be backed by such reserves or loan
guarantees in an amount equal to 10 times
the amount invested from Trust Fund
amounts.’’.
(c) EXPIRATION OF RIGHT TO WITHDRAW FUNDS.—
Section 218(g) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12748(g)) is amended to
read as follows:
‘‘(g) EXPIRATION OF RIGHT TO DRAW FUNDS.—
‘‘(1) IN
GENERAL.—If any funds becoming
available to a participating jurisdiction under this
title are not placed under binding commitment to af-
fordable housing within 24 months after the last day
of the month in which such funds are deposited in
the jurisdiction’s HOME Investment Trust Fund,
the jurisdiction’s right to draw such funds from the
HOME Investment Trust Fund shall expire. The
Secretary shall reduce the line of credit in the par-
ticipating jurisdiction’s HOME Investment Trust
Fund by the expiring amount and shall reallocate
the funds by formula in accordance with section
217(d).
‘‘(2) LOAN POOLS.—In the case of a participat-
ing jurisdiction that withdraws Trust Fund amounts
for investment in the manner provided under sub-
section (e)(2), the amounts shall be considered to be
placed under binding commitment to affordable
housing for purposes of paragraph (1) of this sub-
section at the time that the amounts are obligated
for use under, and are subject to, a written agree-
ment described in subsection (e)(2)(B).’’.
(d) TREATMENT OF MIXED INCOME LOAN POOLS AS
AFFORDABLE HOUSING.—
(1) IN GENERAL.—Section 215 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745) is amended by adding at the end the
following new subsection:
‘‘(c) LOAN POOLS.—Notwithstanding subsections (a)
and (b), housing financed using amounts invested as pro-
vided in section 218(e)(2) shall qualify as affordable hous-
ing only if the housing complies with the following require-
ments:
‘‘(1) In the case of housing that is for home-
ownership—
‘‘(A) of the units financed with amounts so
invested—
‘‘(i) not less than 75 percent are prin-
cipal residences of owners whose families
qualify as low-income families—
‘‘(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
‘‘(II) in the case of a lease-pur-
chase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
‘‘(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed;
‘‘(ii) all are principal residences of
owners whose families qualify as moderate-
income families—
‘‘(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
‘‘(II) in the case of a lease-pur-
chase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
‘‘(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed; and
‘‘(iii) all comply with paragraphs (3)
and (4) of subsection (b), except that para-
graph (3) shall be applied for purposes of
this clause by substituting ‘subsection
(c)(2)(B)’ and ‘low- and moderate-income
homebuyers’ for ‘paragraph (2)’ and ‘low-
income homebuyers’, respectively; and
‘‘(B) units made available for purchase
only by families who qualify as low-income fam-
(2) DEFINITION.—Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12704), as amended by section 402 of this
Act, is further amended by adding at the end the
following new paragraph:
‘‘(28) The term ‘moderate income families’
means families whose incomes do not exceed the me-
dian income for the area, as determined by the Sec-
retary with adjustments for smaller and larger fami-
lies, except that the Secretary may establish income
ceilings higher or lower than the median income for
the area on the basis of the Secretary’s findings that
such variations are necessary because of prevailing
levels of construction costs or fair market rents, or
unusually high or low family incomes.’’.
SEC. 404. LOAN GUARANTEES.
Subtitle A of title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12741 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 227. LOAN GUARANTEES.
‘‘(a) AUTHORITY.—The Secretary may, upon such
terms and conditions as the Secretary may prescribe,
guarantee and make commitments to guarantee, only to
such extent or in such amounts as provided in appropria-
tions Acts, the notes or other obligations issued by eligible
participating jurisdictions or by public agencies designated
by and acting on behalf of eligible participating jurisdic-
tions for purposes of financing (including credit enhance-
ments and debt service reserves) the acquisition, new con-
struction, reconstruction, or moderate or substantial reha-
bilitation of affordable housing (including real property ac-
quisition, site improvement, conversion, and demolition),
and other related expenses (including financing costs and
relocation expenses of any displaced persons, families,
businesses, or organizations). Housing funded under this
section shall meet the requirements of this subtitle.
‘‘(b) REQUIREMENTS.—Notes or other obligations
guaranteed under this section shall be in such form and
denominations, have such maturities, and be subject to
such conditions as may be prescribed by the Secretary.
The Secretary may not deny a guarantee under this sec-
tion on the basis of the proposed repayment period for
the note or other obligation, unless the period is more than
20 years or the Secretary determines that the period oth-
erwise causes the guarantee to constitute an unacceptable
financial risk.
‘‘(c) LIMITATION ON TOTAL NOTES AND OBLIGA-
TIONS.—The Secretary may not guarantee or make a com-
mitment to guarantee any note or other obligation if the
total outstanding notes or obligations guaranteed under
this section on behalf of the participating jurisdiction
issuing the note or obligation (excluding any amount
defeased under a contract entered into under subsection
(e)(1)) would thereby exceed an amount equal to 5 times
the amount of the participating jurisdiction’s latest alloca-
tion under section 217.
‘‘(d) USE OF PROGRAM FUNDS.—Notwithstanding
any other provision of this subtitle, funds allocated to the
participating jurisdiction under this subtitle (including
program income derived therefrom) are authorized for use
in the payment of principal and interest due on the notes
or other obligations guaranteed pursuant to this section
and the payment of such servicing, underwriting, or other
issuance or collection charges as may be specified by the
Secretary.
‘‘(e) SECURITY.—To assure the full repayment of
notes or other obligations guaranteed under this section,
and payment of the issuance or collection charges specified
by the Secretary under subsection (d), and as a prior con-
dition for receiving such guarantees, the Secretary shall
require the participating jurisdiction (and its designated
public agency issuer, if any) to—
‘‘(1) enter into a contract, in a form acceptable
to the Secretary, for repayment of such notes or
other obligations and the other specified charges;
‘‘(2) pledge as security for such repayment any
allocation for which the participating jurisdiction
may become eligible under this subtitle; and
‘‘(3) furnish, at the discretion of the Secretary,
such other security as may be deemed appropriate
by the Secretary in making such guarantees, which
may include increments in local tax receipts gen-
erated by the housing assisted under this section or
disposition proceeds from the sale of land or hous-
ing.
‘‘(f) REPAYMENT AUTHORITY.—The Secretary may,
notwithstanding any other provision of this subtitle or any
other Federal, State, or local law, apply allocations
pledged pursuant to subsection (e) to any repayments due
the United States as a result of such guarantees.
‘‘(g) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this section. Any such guaran-
tee made by the Secretary shall be conclusive evidence of
the eligibility of the notes or other obligations for such
guarantee with respect to principal and interest, and the
validity of any such guarantee so made shall be incontest-
able in the hands of a holder of the guaranteed obligations.
‘‘(h) TAX STATUS.—With respect to any obligation
guaranteed pursuant to this section, the guarantee and
the obligation shall be designed in a manner such that the
interest paid on such obligation shall be included in gross
income for purposes of the Internal Revenue Code of
1986.
‘‘(i) MONITORING.—The Secretary shall monitor the
use of guarantees under this section by eligible participat-
ing jurisdictions. If the Secretary finds that 50 percent
of the aggregate guarantee authority for any fiscal year
has been committed, the Secretary may impose limitations
on the amount of guarantees any 1 participating jurisdic-
tion may receive during that fiscal year.
‘‘(j) GUARANTEE OF TRUST CERTIFICATES.—
‘‘(1) AUTHORITY.—The Secretary may, upon
such terms and conditions as the Secretary deems
appropriate, guarantee the timely payment of the
principal of and interest on such trust certificates or
other obligations as may—
‘‘(A) be offered by the Secretary or by any
other offeror approved for purposes of this sub-
section by the Secretary; and
‘‘(B) be based on and backed by a trust or
pool composed of notes or other obligations
guaranteed or eligible for guarantee by the Sec-
retary under this section.
‘‘(2) FULL FAITH AND CREDIT.—To the same
extent as provided in subsection (g), the full faith
and credit of the United States is pledged to the
payment of all amounts which may be required to be
paid under any guarantee by the Secretary under
this subsection.
‘‘(3) SUBROGATION.—In the event the Sec-
retary pays a claim under a guarantee issued under
this section, the Secretary shall be subrogated fully
to the rights satisfied by such payment.
‘‘(4) OTHER POWERS AND RIGHTS.—No State
or local law, and no Federal law, shall preclude or
limit the exercise by the Secretary of—
‘‘(A) the power to contract with respect to
public offerings and other sales of notes, trust
certificates, and other obligations guaranteed
under this section, upon such terms and condi-
tions as the Secretary deems appropriate;
‘‘(B) the right to enforce, by any means
deemed appropriate by the Secretary, any such
contract; and
‘‘(C) the Secretary’s ownership rights, as
applicable, in notes, certificates or other obliga-
tions guaranteed under this section, or con-
stituting the trust or pool against which trust
certificates or other obligations guaranteed
under this section are offered.
‘‘(k) AGGREGATE LIMITATION.—The total amount of
outstanding obligations guaranteed on a cumulative basis
by the Secretary under this section shall not at any time
exceed $2,000,000,000.’’.
TITLE V—LOCAL
HOMEOWNERSHIP INITIATIVES
SEC. 501. REAUTHORIZATION OF NEIGHBORHOOD REIN-
VESTMENT CORPORATION.
Section 608(a)(1) of the Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8107(a)(1)) is amended by
striking the first sentence and inserting the following:
‘‘There are authorized to be appropriated to the corpora-
tion to carry out this title $90,000,000 for each of fiscal
years 1999 through 2003. Of any amounts made available
pursuant to this subsection for fiscal year 1999,
$25,000,000 shall be for a pilot homeownership initiative,
including an evaluation by an independent third party to
determine its effectiveness.’’.
SEC. 502. HOMEOWNERSHIP ZONES.
Section 186 of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 12898a) is amended to read
as follows:
‘‘SEC. 186. HOMEOWNERSHIP ZONE GRANTS.
‘‘(a) AUTHORITY.—The Secretary of Housing and
Urban Development may make grants to units of general
local government to assist homeownership zones. Home-
ownership zones are contiguous, geographically defined
areas, primarily residential in nature, in which large-scale
development projects are designed to reclaim distressed
neighborhoods by creating homeownership opportunities
for low- and moderate-income families. Projects in home-
ownership zones are intended to serve as a catalyst for
private investment, business creation, and neighborhood
revitalization.
‘‘(b) ELIGIBLE ACTIVITIES.—Amounts made avail-
able under this section may be used for projects that in-
clude any of the following activities in the homeownership
zone:
‘‘(1) Acquisition, construction, and rehabilita-
tion of housing.
‘‘(2) Site acquisition and preparation, including
demolition, construction, reconstruction, or installa-
tion of public and other site improvements and utili-
ties directly related to the homeownership zone.
‘‘(3) Direct financial assistance to homebuyers.
‘‘(4) Homeownership counseling.
‘‘(5) Relocation assistance.
‘‘(6) Marketing costs, including affirmative
marketing activities.
‘‘(7) Other project-related costs.
‘‘(8) Reasonable administrative costs (up to 5
percent of the grant amount).
‘‘(9) Other housing-related activities proposed
by the applicant as essential to the success of the
homeownership zone and approved by the Secretary.
‘‘(c) APPLICATION.—To be eligible for a grant under
this section, a unit of general local government shall sub-
mit an application for a homeownership zone grant in such
form and in accordance with such procedures as the Sec-
retary shall establish.
‘‘(d) SELECTION CRITERIA.—The Secretary shall se-
lect applications for funding under this section through
a national competition, using selection criteria established
by the Secretary, which shall include—
‘‘(1) the degree to which the proposed activities
will result in the improvement of the economic, so-
cial, and physical aspects of the neighborhood and
the lives of its residents through the creation of new
homeownership opportunities;
‘‘(2) the levels of distress in the homeownership
zone as a whole, and in the immediate neighborhood
of the project for which assistance is requested;
‘‘(3) the financial soundness of the plan for fi-
nancing homeownership zone activities;
‘‘(4) the leveraging of other resources; and
‘‘(5) the capacity to successfully carry out the
plan.
‘‘(e) GRANT APPROVAL AMOUNTS.—The Secretary
may establish a maximum amount for any grant for any
funding round under this section. A grant may not be
made in an amount that exceeds the amount that the Sec-
retary determines is necessary to fund the project for
which the application is made.
‘‘(f) PROGRAM REQUIREMENTS.—A homeownership
zone proposal shall—
‘‘(1) provide for a significant number of new
homeownership opportunities that will make a visible
improvement in an immediate neighborhood;
‘‘(2) not be inconsistent with such planning and
design principles as may be prescribed by the Sec-
retary;
‘‘(3) be designed to stimulate additional invest-
ment in that area;
‘‘(4) provide for partnerships with persons or
entities in the private and nonprofit sectors;
‘‘(5) incorporate a comprehensive approach to
revitalization of the neighborhood;
‘‘(6) establish a detailed time-line for com-
mencement and completion of construction activities;
and
‘‘(7) provide for affirmatively furthering fair
housing.
‘‘(g) INCOME TARGETING.—At least 51 percent of
the homebuyers assisted with funds under this section
shall have household incomes at or below 80 percent of
median income for the area, as determined by the Sec-
retary.
‘‘(h) ENVIRONMENTAL REVIEW.—For purposes of
environmental review, decisionmaking, and action pursu-
ant to the National Environmental Policy Act of 1969 and
other provisions of law that further the purposes of such
Act, a grant under this section shall be treated as assist-
ance under the HOME Investment Partnerships Act and
shall be subject to the regulations issued by the Secretary
to implement section 288 of such Act.
‘‘(i) REVIEW, AUDIT, AND REPORTING.—The Sec-
retary shall make such reviews and audits and establish
such reporting requirements as may be necessary or ap-
propriate to determine whether the grantee has carried out
its activities in a timely manner and in accordance with
the requirements of this section. The Secretary may ad-
just, reduce, or withdraw amounts made available, or take
other action as appropriate, in accordance with the Sec-
retary’s performance reviews and audits under this sec-
tion.
‘‘(j) AUTHORIZATION.—There are authorized to be
appropriated to carry out this section $25,000,000 for fis-
cal year 1999 and such sums as may be necessary for fis-
cal year 2000, to remain available until expended.’’.
SEC. 503. LEASE-TO-OWN.
(a) SENSE OF CONGRESS.—It is the sense of the Con-
gress that residential tenancies under lease-to-own provi-
sions can facilitate homeownership by low- and moderate-
income families and provide opportunities for homeowner-
ship for such families who might not otherwise be able
to afford homeownership.
(b) REPORT.—Not later than the expiration of the
3-month period beginning on the date of the enactment
of this Act, the Secretary of Housing and Urban Develop-
ment shall submit a report to the Congress—
(1) analyzing whether lease-to-own provisions
can be effectively incorporated within the HOME in-
vestment partnerships program, the public housing
program, the tenant-based rental assistance program
under section 8 of the United States Housing Act of
1937, or any other programs of the Department to
facilitate homeownership by low- or moderate-income
families; and
(2) any legislative or administrative changes
necessary to alter or amend such programs to allow
the use of lease-to-own options to provide home-
ownership opportunities.
SEC. 504. LOCAL CAPACITY BUILDING.
Section 4 of the HUD Demonstration Act of 1993
(42 U.S.C. 9816 note) is amended—
(1) in subsection (a), by inserting ‘‘National
Association of Housing Partnerships,’’ after ‘‘Hu-
manity,’’; and
(2) in subsection (e), by striking ‘‘$25,000,000’’
and all that follows and inserting ‘‘, for each fiscal
year, such sums as may be necessary to carry out
this section.’’.
TITLE VI—MANUFACTURED
HOUSING IMPROVEMENT
SEC. 601. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Manufactured Housing Improvement Act’’.
(b) REFERENCES.—Whenever in this title an amend-
ment is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to that section or other provision of
the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
SEC. 602. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as
follows:
‘‘FINDINGS AND PURPOSES
‘‘SEC. 602. (a) FINDINGS.—The Congress finds
that—
‘‘(1) manufactured housing plays a vital role in
meeting the housing needs of the Nation; and
‘‘(2) manufactured homes provide a significant
resource for affordable homeownership and rental
housing accessible to all Americans.
‘‘(b) PURPOSES.—The purposes of this title are—
‘‘(1) to facilitate the acceptance of the quality,
durability, safety, and affordability of manufactured
housing within the Department of Housing and
Urban Development;
‘‘(2) to facilitate the availability of affordable
manufactured homes and to increase homeownership
for all Americans;
‘‘(3) to provide for the establishment of prac-
tical, uniform, and, to the extent possible, perform-
ance-based Federal construction standards;
‘‘(4) to encourage innovative and cost-effective
construction techniques;
(b) CONFORMING
AMENDMENTS.—The National
Manufactured Housing Construction and Safety Stand-
ards Act of 1974 is amended—
(1) in section 613 (42 U.S.C. 5412), by striking
‘‘dealer’’ each place it appears and inserting ‘‘re-
tailer’’;
(2) in section 614(f) (42 U.S.C. 5413(f)), by
striking ‘‘dealer’’ each place it appears and inserting
‘‘retailer’’;
(3) in section 615 (42 U.S.C. 5414)—
(A) in subsection (b)(1), by striking ‘‘deal-
er’’ and inserting ‘‘retailer’’;
(B) in subsection (b)(3), by striking ‘‘deal-
er or dealers’’ and inserting ‘‘retailer or retail-
ers’’; and
(C) in subsections (d) and (f), by striking
‘‘dealers’’ each place it appears and inserting
‘‘retailers’’;
(4) in section 616 (42 U.S.C. 5415), by striking
‘‘dealer’’ and inserting ‘‘retailer’’; and
(5) in section 623(c)(9), by striking ‘‘dealers’’
and inserting ‘‘retailers’’.
SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUC-
TION AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5304) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following new subsections:
‘‘(a) ESTABLISHMENT.—
‘‘(1) AUTHORITY.—The Secretary shall estab-
lish, by order, appropriate Federal manufactured
home construction and safety standards, each of
which—
‘‘(A) shall—
‘‘(i) be reasonable and practical;
‘‘(ii) meet high standards of protec-
tion consistent with the enumerated pur-
poses of this title; and
‘‘(iii) where appropriate, be perform-
ance-based and stated objectively; and
‘‘(B) except as provided in subsection (b),
shall be established in accordance with the con-
sensus standards development process.
‘‘(2) CONSENSUS
STANDARDS
AND
REGU-
LATORY DEVELOPMENT PROCESS.—
‘‘(A) INITIAL
AGREEMENT.—Not later
than 180 days after the date of enactment of
the Manufactured Housing Improvement Act,
the Secretary shall enter into a contract with
an administering organization. The contractual
agreement shall—
‘‘(i) terminate on the date on which a
contract is entered into under subpara-
graph (B); and
‘‘(ii) require the administering organi-
zation to—
‘‘(I) appoint the initial members
of the consensus committee under
paragraph (3);
‘‘(II) administer the consensus
standards development process until
the termination of that agreement;
and
‘‘(III) administer the consensus
development and interpretation proc-
ess for procedural and enforcement
regulations and regulations specifying
the permissible scope and conduct of
monitoring until the termination of
that agreement.
‘‘(B) COMPETITIVELY
PROCURED
CON-
TRACT.—Upon the expiration of the 4-year pe-
riod beginning on the date on which all mem-
bers of the consensus committee are appointed
under paragraph (3), the Secretary shall, using
competitive procedures (as such term is defined
in section 4 of the Office of Federal Procure-
ment Policy Act), enter into a competitively
awarded contract with an administering organi-
zation. The administering organization shall ad-
minister the consensus process for the develop-
ment and interpretation of the Federal stand-
ards, the procedural and enforcement regula-
tions and regulations specifying the permissible
scope and conduct of monitoring in accordance
with this title.
‘‘(C) PERFORMANCE
REVIEW.—The Sec-
retary—
‘‘(i) shall periodically review the per-
formance of the administering organiza-
tion; and
‘‘(ii) may replace the administering
organization with another qualified tech-
nical or building code organization, pursu-
ant to competitive procedures, if the Sec-
retary determines in writing that the ad-
ministering organization is not fulfilling
the terms of the agreement or contract to
which the administering organization is
subject or upon the expiration of the
agreement or contract.
‘‘(3) CONSENSUS COMMITTEE.—
‘‘(A) PURPOSE.—There is established a
committee to be known as the ‘consensus com-
mittee’, which shall, in accordance with this
title—
‘‘(i) provide periodic recommendations
to the Secretary to adopt, revise, and inter-
pret the Federal manufactured housing
construction and safety standards in ac-
cordance with this subsection;
‘‘(ii) provide periodic recommenda-
tions to the Secretary to adopt, revise, and
interpret the procedural and enforcement
regulations, including regulations specify-
ing the permissible scope and conduct of
monitoring in accordance with this sub-
section; and
‘‘(iii) be organized and carry out its
business in a manner that guarantees a
fair opportunity for the expression and
consideration of various positions and for
public participation.
‘‘(B) MEMBERSHIP.—The consensus com-
mittee shall be composed of—
‘‘(i) 25 voting members appointed,
subject to approval by the Secretary, by
the administering organization from among
individuals who are qualified by back-
ground and experience to participate in the
work of the consensus committee; and
‘‘(ii) 1 member appointed by the Sec-
retary to represent the Secretary on the
consensus committee, who shall be a non-
voting member.
‘‘(C) DISAPPROVAL.—The Secretary may
disapprove, in writing with the reasons set
forth, the appointment of an individual under
subparagraph (B)(i).
‘‘(D) SELECTION
PROCEDURES
AND
RE-
QUIREMENTS.—Each member shall be ap-
pointed in accordance with the selection proce-
dures, which shall be established by the Sec-
retary and which shall be based on the proce-
dures for consensus committees promulgated by
the American National Standards Institute (or
successor organization), except that the Amer-
ican National Standards Institute interest cat-
egories shall be modified for purposes of this
paragraph to ensure equal representation on
the consensus committee of the following inter-
est categories:
‘‘(i) HOME
PRODUCERS.—Five per-
sons representing manufacturers of manu-
factured homes.
‘‘(ii) OTHER BUSINESS INTERESTS.—
Five persons representing other business
interests involved in the manufactured
housing industry such as retailers, install-
ers, lenders, insurers, suppliers of prod-
ucts, and community owners. The business
interests represented in this category shall
not be owned or controlled by manufactur-
ers represented under clause (i).
‘‘(iii) CONSUMERS.—Five persons rep-
resenting homeowners and consumer inter-
ests, such as consumer organizations, com-
munity organizations, recognized consumer
leaders, and manufactured homeowners
owners and occupants.
‘‘(iv) PUBLIC
OFFICIALS.—Five per-
sons who are State or local officials such
as building code enforcement or inspection
officials, fire marshals, and including rep-
resentatives of State administrative agen-
cies.
‘‘(v) GENERAL INTEREST.—Five per-
sons representing the public such as archi-
tects, engineers, homebuilders, academi-
cians, and developers.
‘‘(E) ADDITIONAL
QUALIFICATIONS.—An
individual appointed under clause (iii), (iv), or
(v) of subparagraph (D) shall not have—
‘‘(i) a significant financial interest in
any segment of the manufactured housing
industry; or
‘‘(ii) a significant relationship to any
person engaged in the manufactured hous-
ing industry.
‘‘(F) MEETINGS.—
‘‘(i) NOTICE; OPEN TO PUBLIC.—The
consensus committee shall provide advance
notice of each meeting of the consensus
committee to the Secretary and publish ad-
vance notice of each such meeting in the
Federal Register. All meetings of the con-
sensus committee shall be open to the pub-
lic.
‘‘(ii) REIMBURSEMENT.—Members of
the consensus committee in attendance at
the meetings shall be reimbursed for their
actual expenses as authorized by section
5703 of title 5, United States Code, for
persons employed intermittently in Govern-
ment service.
‘‘(G) INAPPLICABILITY OF OTHER LAWS.—
‘‘(i) ADVISORY COMMITTEE ACT.—The
consensus committee shall not be consid-
ered to be an advisory committee for pur-
poses of the Federal Advisory Committee
Act.
‘‘(ii) TITLE 18.—The members of the
consensus committee shall not be subject
to section 203, 205, 207, or 208 of title
18, United States Code, to the extent of
their proper participation as members of
the consensus committee.
‘‘(iii) ETHICS
IN
GOVERNMENT
ACT
OF 1978.—The Ethics in Government Act
of 1978 shall not apply to members of the
consensus committee to the extent of their
proper participation as members of the
consensus committee.
‘‘(H) ADMINISTRATION.—The consensus
committee and the administering organization
shall—
‘‘(i) operate in conformance with the
procedures established by the American
National Standards Institute for the devel-
opment and coordination of American Na-
tional Standards; and
‘‘(ii) apply to the American National
Standards Institute and take such other
actions as may be necessary to obtain ac-
creditation from the American National
Standards Institute.
‘‘(I) STAFF.—The administering organiza-
tion shall, upon the request of the consensus
committee, provide reasonable staff resources to
the consensus committee. Upon a showing of
need, the Secretary shall furnish technical sup-
port to any of the various interest categories on
the consensus committee.
‘‘(J) DATE OF INITIAL APPOINTMENTS.—
The initial appointments of all of the members
of the consensus committee shall be completed
not later than 90 days after the date on which
an administration agreement under paragraph
(2)(A) is completed with the administering or-
ganization.
‘‘(4) REVISIONS OF STANDARDS.—
‘‘(A) IN GENERAL.—Beginning on the date
on which all members of the consensus commit-
tee are appointed under paragraph (3), the con-
sensus committee shall, not less than once dur-
ing each 2-year period—
‘‘(i) consider revisions to the Federal
manufactured home construction and safe-
ty standards; and
‘‘(ii) submit proposed revised stand-
ards and regulations to the Secretary in
the form of a proposed rule, including an
economic analysis.
‘‘(B) PUBLICATION OF PROPOSED REVISED
STANDARDS.—
‘‘(i) PUBLICATION BY SECRETARY.—
The consensus committee shall provide a
proposed revised standard under subpara-
graph (A)(ii) to the Secretary who shall,
not later than 30 days after receipt, pub-
lish such proposed revised standard in the
Federal Register for notice and comment.
Unless clause (ii) applies, the Secretary