IB
Union Calendar No. 300
106TH CONGRESS
2D SESSION
H. R. 1776
[Report No. 106–553]
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
MARCH 29, 2000
Additional sponsors: Mr. WEYGAND, Mrs. KELLY, Mr. HALL of Texas, Mr.
RAMSTAD, Mr. MCINTOSH, Mr. PICKERING, Mr. GILMAN, Mr. WELLER,
Mrs. MORELLA, Mr. BACHUS, Mrs. ROUKEMA, Mr. BALLENGER, Mr.
BOEHLERT, Mr. SCHAFFER, Mr. METCALF, Mr. GREEN of Texas, Mr.
DOYLE, Mr. COOK, Mr. GONZALEZ, Mr. DOOLITTLE, Mr. JONES of North
Carolina, Mr. ADERHOLT, Ms. PRYCE of Ohio, Mr. SANDLIN, Mr. NEY,
Mr. ENGLISH, Ms. HOOLEY of Oregon, Mr. EDWARDS, Mrs. MYRICK, Mr.
BALDACCI, Mr. GOODE, Mr. BISHOP, Ms. DANNER, Mr. YOUNG of Alas-
ka, Mr. RAHALL, Mr. HILL of Montana, Mr. UPTON, Ms. DUNN, Mr.
BAKER, Mr. MOORE, Mr. MINGE, Mr. CASTLE, Ms. BROWN OF FLORIDA,
Mr. CAMPBELL, Mr. REYES, Mr. PETERSON of Pennsylvania, Mr. DIAZ-
BALART, Mr. BARTLETT of Maryland, Mrs. NORTHUP, Mr. GREEN of
Wisconsin, Mr. HORN, Mr. LUCAS of Oklahoma, Mr. FRELINGHUYSEN,
Mrs. CLAYTON, Mr. CUNNINGHAM, Mr. TAYLOR of Mississippi, Mr.
MCHUGH, Mr. FLETCHER, Mr. SHOWS, Mr. WICKER, Mr. BEREUTER,
Mr. GARY MILLER of California, Mr. FROST, Mr. SHIMKUS, Mr. BOU-
CHER, Mr. ISAKSON, Mr. STENHOLM, Mr. LOBIONDO, Mr. HOYER, Mr.
MALONEY of Connecticut, Mr. RILEY, Mr. SWEENEY, Mr. GREENWOOD,
Mrs. MEEK of Florida, Mr. BARCIA, Mr. LUCAS of Kentucky, Mr.
LAMPSON, Mr. MASCARA, Mr. BARR of Georgia, Mr. PICKETT, Mr.
LATOURETTE, Mr. PITTS, Mr. SIMPSON, Mr. DEFAZIO, Mr. HAYWORTH,
Mr. HOLDEN, Mr. HOUGHTON, Mr. WAMP, Mr. HERGER, Mr. REY-
NOLDS, Mr. PASTOR, Mr. HAYES, Mr. DAVIS of Illinois, Mr. RYAN of
Wisconsin, Mr. PETRI, Mrs. JOHNSON of Connecticut, Mr. KUYKENDALL,
Mr. ETHERIDGE, Mr. PHELPS, Mr. GOODLATTE, Mr. SMITH of Wash-
ington, Mr. CALVERT, Mrs. BONO, Mr. MICA, Mr. BOSWELL, Mr. TERRY,
Mr. SKEEN, Mr. BILBRAY, Mr. PORTMAN, Mr. FRANKS of New Jersey,
Mr. THORNBERRY, Ms. BERKLEY, Mr. STEARNS, Mr. DAVIS of Florida,
Mrs. MCCARTHY of New York, Mr. KANJORSKI, Mr. GORDON, Ms.
SCHAKOWSKY, Mr. HOEFFEL, Mr. BLUMENAUER, Mr. NORWOOD, Mr.
JENKINS, Mr. WU, Mr. BASS, Ms. LEE, Mr. SHAYS, Mr. WELDON of
Pennsylvania, Mr. BONILLA, Mrs. FOWLER, Mr. CROWLEY, Mr. HILL of
Indiana, Mr. QUINN, Mr. MCKEON, Mrs. EMERSON, Mr. BORSKI, Mr.
JOHN, Mr. LARSON, Mr. KIND, Mr. FORBES, Mr. COMBEST, Mr. THOMP-
SON of California, Mr. RYUN of Kansas, Ms. GRANGER, Mr. MCCOLLUM,
Mr. BURTON of Indiana, Mr. LATHAM, Mr. GOODLING, Mr. GUTKNECHT,
Mr. HUTCHINSON, Mr. ROEMER, Mr. BENTSEN, Mr. SHERMAN, Mr.
BOEHNER, and Mr. PRICE OF NORTH CAROLINA
MARCH 29, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on May 12, 1999]
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 2000’’.
(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. Extension of loan term for manufactured home lots.
Sec. 202. Downpayment simplification.
Sec. 203. Reduced downpayment requirements for loans for teachers and uni-
formed municipal employees.
Sec. 204. Preventing fraud in rehabilitation loan program.
Sec. 205. Neighborhood teacher program.
Sec. 206. Community development financial institution risk-sharing demonstra-
tion.
Sec. 207. Hybrid ARMs.
Sec. 208. Home equity conversion mortgages.
Sec. 209. Law enforcement officer homeownership pilot program.
Sec. 210. Study of mandatory inspection requirement under single family hous-
ing mortgage insurance program.
Sec. 211. Report on title I home improvement loan program.
TITLE III—SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled families.
Sec. 303. Funding for pilot programs.
TITLE IV—COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Public services cap.
Sec. 404. Homeownership for municipal employees.
Sec. 405. Technical amendment relating to brownfields.
Sec. 406. Income eligibility.
Sec. 407. 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. Administrative costs.
Sec. 504. Leveraging affordable housing investment through local loan pools.
Sec. 505. Homeownership for municipal employees.
Sec. 506. Use of section 8 assistance by ‘‘grand-families’’ to rent dwelling units
in assisted projects.
Sec. 507. Loan guarantees.
Sec. 508. Downpayment assistance for 2- and 3-family residences.
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.
Sec. 606. Assistance for self-help housing providers.
Sec. 607. Housing counseling organizations.
Sec. 608. Community lead information centers and lead-safe housing.
TITLE VII—NATIVE AMERICAN HOUSING HOMEOWNERSHIP
Sec. 701. Lands Title Report Commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.
TITLE VIII—TRANSFER OF HUD-HELD HOUSING TO LOCAL
GOVERNMENTS AND NONPROFIT ORGANIZATIONS
Sec. 801. Transfer of unoccupied and substandard HUD-held housing to local
governments and community development corporations.
Sec. 802. Transfer of HUD assets in revitalization areas.
TITLE IX—PRIVATE MORTGAGE INSURANCE CANCELLATION AND
TERMINATION
Sec. 901. Short title.
Sec. 902. Changes in amortization schedule.
Sec. 903. Deletion of ambiguous references to residential mortgages.
Sec. 904. Cancellation rights after cancellation date.
Sec. 905. Clarification of cancellation and termination issues and lender paid
mortgage insurance disclosure requirements.
Sec. 906. Definitions.
TITLE X—RURAL HOUSING HOMEOWNERSHIP
Sec. 1001. Promissory note requirement under housing repair loan program.
Sec. 1002. Limited partnership eligibility for farm labor housing loans.
Sec. 1003. Project accounting records and practices.
Sec. 1004. Definition of rural area.
Sec. 1005. Operating assistance for migrant farmworkers projects.
Sec. 1006. Multifamily rental housing loan guarantee program.
Sec. 1007. Enforcement provisions.
Sec. 1008. Amendments to title 18 of United States Code.
TITLE XI—MANUFACTURED HOUSING IMPROVEMENT
Sec. 1101. Short title and references.
Sec. 1102. Findings and purposes.
Sec. 1103. Definitions.
Sec. 1104. Federal manufactured home construction and safety standards.
Sec. 1105. Abolishment of National Manufactured Home Advisory Council; man-
ufactured home installation.
Sec. 1106. Public information.
Sec. 1107. Research, testing, development, and training.
Sec. 1108. Fees.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.
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 conventional
capital sources available for homeownership financ-
ing;
(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; and
(4) each consumer should be afforded every rea-
sonable opportunity to access mortgage credit, to ob-
tain the lowest cost mortgages for which the consumer
can qualify, to know the true cost of the mortgage, to
be free of regulatory burdens, and to know what fac-
tors underlie a lender’s decision regarding the con-
sumer’s mortgage.
(b) PURPOSE.—It is the purpose of this Act—
(1) to encourage and facilitate homeownership by
families in the United States who are not otherwise
able to afford homeownership; and
(2) to expand homeownership through policies
that—
(A) promote the ability of the private sector
to produce affordable housing without excessive
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 cap-
ital for homeownership opportunities and pro-
vide local governments with increased flexibility
under existing Federal programs to facilitate
homeownership.
TITLE I—REMOVAL OF BARRIERS
TO HOUSING AFFORDABILITY
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Housing Affordability
Barrier Removal Act of 2000’’.
SEC. 102. HOUSING IMPACT ANALYSIS.
(a) APPLICABILITY.—Except as provided in subsection
(b), the requirements of this section shall apply with respect
to—
(1) any proposed rule, unless the agency promul-
gating 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 af-
fordability; and
(B) has caused such certification to be pub-
lished in the Federal Register at the time of pub-
lication of general notice of proposed rulemaking
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 pub-
lished in the Federal Register at the time of pub-
lication of the final rule, together with a state-
ment providing the factual basis for the certifi-
cation.
Any agency making a certification under this subsection
shall provide a copy of such certification and the statement
providing the factual basis for the certification to the Sec-
retary of Housing and Urban Development.
(b) EXCEPTION FOR CERTAIN BANKING RULES.—The
requirements of this section shall not apply to any proposed
or final rule relating to—
(1) the operations, safety, or soundness of—
(A) federally insured depository institutions
or any affiliate of such an institution (as such
term is defined in section 2(k) of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1841(k));
(B) credit unions;
(C) the Federal home loan banks;
(D) the enterprises (as such term is defined
in section 1303 of the Housing and Community
Development Act of 1992 (12 U.S.C. 4502);
(E) a Farm Credit System institution; or
(F) foreign banks or their branches, agen-
cies, commercial lending companies, or rep-
resentative offices that operate in the United
States, or any affiliate of a foreign bank (as such
terms are defined in section 1 of the Inter-
national Banking Act of 1978 (12 U.S.C. 3101);
or
(2) the payments system or the protection of de-
posit insurance funds or the Farm Credit Insurance
Fund.
(c) STATEMENT OF PROPOSED RULEMAKING.—When-
ever an agency publishes general notice of proposed rule-
making 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 submit
to the agency any written analyses, data, views,
and arguments, and any specific alternatives 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 persons
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 (d).
(d) 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 trans-
mit a copy of the initial housing impact analysis to
the Secretary of Housing and Urban Development.
(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 supply of
housing or land for residential development; and
(D) an identification, to the extent prac-
ticable, of all relevant Federal rules which may
duplicate, overlap, or conflict with the proposed
rule.
(e) PROPOSAL OF LESS DELETERIOUS ALTERNATIVE
RULE.—
(1) ANALYSIS.—The agency publishing a general
notice of proposed rulemaking shall review any spe-
cific analyses and alternatives to the proposed rule
which have been submitted to the agency pursuant to
subsection (c)(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 RULEMAKING.—
If the agency determines that an alternative to the
proposed rule meets the requirements under subpara-
graphs (A) through (C) of paragraph (1), unless the
agency provides an explanation on the record for the
proposed rule as to why the alternative should not be
implemented, the agency shall incorporate the alter-
native into the final rule or, at the agency’s discre-
tion, issue a new proposed rule which incorporates the
alternative.
(f) 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 agen-
cy 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 cop-
ies of the final housing impact analysis available to
members of the public and shall publish in the Fed-
eral Register such analysis or a summary thereof.
(g) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY
ANALYSES.—
(1) DUPLICATION.—Any Federal agency may
perform the analyses required by subsections (d) and
(f) 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 sat-
isfies 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 subsections
(d) and (f).
(h) PREPARATION OF ANALYSES.—In complying with
the provisions of subsections (d) and (f), an agency may
provide either a quantifiable or numerical description of
the effects of a proposed rule or alternatives to the proposed
rule, or more general descriptive statements if quantifica-
tion is not practicable or reliable.
(i) EFFECT ON OTHER LAW.—The requirements of
subsections (d) and (f) do not alter in any manner stand-
ards otherwise applicable by law to agency action.
(j) 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 (d) by
publishing in the Federal Register, not later than the
date of publication of the final rule, a written find-
ing, with reasons therefor, that the final rule is being
promulgated in response to an emergency that makes
compliance or timely compliance with the provisions
of subsection (a) impracticable.
(2) FINAL
HOUSING
IMPACT
ANALYSIS.—An
agency head may not waive the requirements of sub-
section (f). An agency head may delay the completion
of the requirements of subsection (f) for a period 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 reasons therefor,
that the final rule is being promulgated in response
to an emergency that makes timely compliance with
the provisions of subsection (f) impracticable. If the
agency has not prepared a final housing impact anal-
ysis pursuant to subsection (f) 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.
(k) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) HOUSING AFFORDABILITY.—The term ‘‘hous-
ing affordability’’ means the quantity of housing 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 ad-
justments for smaller and larger families. For pur-
poses of this paragraph, area, median family income
for an area, and adjustments for family size shall be
determined in the same manner as such factors 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 an-
other 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 organizations
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 pro-
posed rulemaking pursuant to section 553(b) of title
5, United States Code, or any other law, including
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 in-
clude a rule of particular applicability relating to
rates, wages, corporate or financial structures or reor-
ganizations thereof, prices, facilities, appliances, serv-
ices, 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.
(l) DEVELOPMENT.—Not later than 1 year after the
date of the enactment of this title, the Secretary of Housing
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 primary ele-
ments of a housing impact analysis to instruct other agen-
cies on how to carry out and develop the analyses required
under subsections (a) and (d).
(m) JUDICIAL REVIEW.—
(1) DETERMINATION BY AGENCY.—Except as oth-
erwise provided in paragraph (2), any determination
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 (d) or (f)
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 review.
(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 pro-
vided 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 2001 and such sums as may be necessary
for each of fiscal years 2002, 2003, 2004, and 2005.’’.
(b) CONSOLIDATION OF STATE AND LOCAL GRANTS.—
Subsection (b) of section 1204 of the Housing and Commu-
nity 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 subsection
(c).
(d) APPLICATION AND SELECTION.—The last sentence
of section 1204(e) of the Housing and Community Develop-
ment 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 sub-
section (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 sec-
tion 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 eli-
gible 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 government to re-
move 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 Develop-
ment 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 dis-
seminate’’;
(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 prevalence
and effects on affordable housing of such
laws, regulations, and policies’’;
(C) in paragraph (2), by inserting before
the semicolon the following: ‘‘, including particu-
larly innovative or successful activities, strate-
gies, 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 period
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 sub-
mission 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 Devel-
opment of the Department of Housing and Urban Develop-
ment and shall be under the direction of the Assistant Sec-
retary 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 2000) shall be established and com-
mence carrying out the functions of the clearinghouse under
this section not later than 1 year after the date of the enact-
ment of such Act. The Secretary of Housing and Urban De-
velopment may comply with the requirements under this
section by reestablishing the clearinghouse that was origi-
nally 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. 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. 202. DOWNPAYMENT SIMPLIFICATION.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by realigning the
matter that precedes clause (ii) an additional 2
ems from the left margin;
(B) in the matter that follows subparagraph
(B)(iii)—
(i) by striking the 6th sentence (relat-
ing to the increases for costs of solar energy
systems) and all that follows through the
end of the penultimate undesignated para-
graph; and
(ii) by striking the 2d and 3rd sen-
tences of such matter; and
(C) by striking subparagraph (B);
(2) by transferring and inserting subparagraph
(A) of paragraph (10) after subparagraph (A) of
paragraph (2) and amending such subparagraph by
striking all of the matter that precedes clause (i) and
inserting the following:
‘‘(B) not to exceed an amount equal to the
sum of—’’;
(3) by transferring and inserting the last undes-
ignated paragraph of paragraph (2) (relating to dis-
closure notice) after subsection (e), realigning such
transferred paragraph so as to be flush with the left
margin, and amending such transferred paragraph by
inserting ‘‘(f) DISCLOSURE
OF OTHER MORTGAGE
PRODUCTS.—’’ before ‘‘In conjunction’’;
(4) by transferring and inserting the sentence
that constitutes the text of paragraph (10)(B) after
the period at the end of the first sentence that follows
subparagraph (B) (relating to the definition of
‘‘area’’); and
(5) by striking paragraph (10) (as amended by
the preceding provisions this section).
(b) CONFORMING AMENDMENTS.—Section 245 of the
National Housing Act (12 U.S.C. 1715z–10) is amended—
(1) in subsection (a), by striking ‘‘, or if the
mortgagor’’ and all that follows through ‘‘case of vet-
erans’’; and
(2) in subsection (b)(3), by striking ‘‘, or, if the’’
and all that follows through ‘‘for veterans,’’.
SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR
LOANS FOR TEACHERS AND UNIFORMED MU-
NICIPAL EMPLOYEES.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)), as amended by section
202 of this Act, is further amended by adding at the end
the following new paragraph:
‘‘(10) REDUCED DOWNPAYMENT REQUIREMENTS
FOR TEACHERS AND UNIFORMED MUNICIPAL EMPLOY-
EES.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a mortgage described in
subparagraph (B)—
‘‘(i) the mortgage shall involve a prin-
cipal obligation in an amount that does not
exceed the sum of 99 percent of the ap-
praised value of the property and the total
amount of initial service charges, appraisal,
inspection, and other fees (as the Secretary
shall approve) paid in connection with the
mortgage;
‘‘(ii) no other provision of this sub-
section limiting the principal obligation of
the mortgage based upon a percentage of the
appraised value of the property subject to
the mortgage shall apply; and
‘‘(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply
and the mortgage shall be executed by a
mortgagor who shall have paid on account
of the property at least 1 percent of the cost
of acquisition (as determined by the Sec-
retary) in cash or its equivalent.
‘‘(B) MORTGAGES
COVERED.—A mortgage
described in this subparagraph is a mortgage—
‘‘(i) under which the mortgagor is an
individual who—
‘‘(I) is employed on a full-time
basis as (aa) a teacher or adminis-
trator in a public or private school
that provides elementary or secondary
education, as determined under State
law, except that secondary education
shall not include any education beyond
grade 12, or (bb) a public safety officer
(as such term is defined in section
1204 of the Omnibus Crime Control
and Safe Streets Act of 1968 (42
U.S.C. 3796b), except that such term
shall not include any officer serving a
public agency of the Federal Govern-
ment); and
‘‘(II) has not, during the 12-
month period ending upon the insur-
ance of the mortgage, had any present
ownership interest in a principal resi-
dence located in the jurisdiction de-
scribed in clause (ii); and
‘‘(ii) made for a property that is lo-
cated within the jurisdiction of—
‘‘(I) in the case of a mortgage of
a 
mortgagor 
described 
in 
clause
(i)(I)(aa), the local educational agency
(as such term is defined in section
14101 of the Elementary and Sec-
ondary Education Act of 1965 (20
U.S.C. 8801)) for the school in which
the mortgagor is employed (or, in the
case of a mortgagor employed in a pri-
vate school, the local educational agen-
cy having jurisdiction for the area in
which the private school is located); or
‘‘(II) in the case of a mortgage of
a 
mortgagor 
described 
in 
clause
(i)(I)(bb), the jurisdiction served by the
public law enforcement agency, fire-
fighting agency, or rescue or ambu-
lance agency that employs the mort-
gagor.’’.
(b) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—Section 203(c) of the National Housing Act (12
U.S.C. 1709(c)(2)) is amended—
(1) in paragraph (2), in the matter preceding
subparagraph (A), by striking ‘‘Notwithstanding’’
and inserting ‘‘Except as provided in paragraph (3)
and notwithstanding’’; and
(2) by adding at the end the following new para-
graph:
‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—In the case of any mortgage described in subsection
(b)(10)(B):
‘‘(A) Paragraph (2)(A) of this subsection (relat-
ing to collection of up-front premium payments) shall
not apply.
‘‘(B) If, at any time during the 5-year period be-
ginning on the date of the insurance of the mortgage,
the mortgagor ceases to be employed as described in
subsection (b)(10)(B)(i)(I) or pays the principal obli-
gation of the mortgage in full, the Secretary shall at
such time collect a single premium payment in an
amount equal to the amount of the single premium
payment that, but for this paragraph, would have
been required under paragraph (2)(A) of this sub-
section with respect to the mortgage, as reduced by 20
percent of such amount for each successive 12-month
period completed during such 5-year period before
such cessation or prepayment occurs.’’.
SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN
PROGRAM.
(a) IN GENERAL.—Section 203(k) of the National
Housing Act (12 U.S.C. 1709(k)) is amended by adding at
the end the following new paragraph:
‘‘(7) PREVENTION OF FRAUD.—To prevent fraud under
the program for loan insurance authorized under this sub-
section, the Secretary shall, by regulation, take the following
actions:
‘‘(A) PROHIBITION OF IDENTITY OF INTEREST.—
The Secretary shall prohibit any identity-of-interest,
as such term is defined by the Secretary, between any
of the following parties involved in a loan insured
under this subsection: the borrower (including, in the
case of a borrower that is a nonprofit organization,
any member of the board of directors or the staff of
the organization), the lender, any consultant, any real
estate agent, any property inspector, and any ap-
praiser. Nothing in this subparagraph may be con-
strued to prohibit or restrict, or authorize the Sec-
retary to prohibit or restrict, the functioning of a af-
filiated business arrangement that complies with the
requirements under section 8(c)(4) of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C.
2607(c)(4)).
‘‘(B) 
NONPROFIT
PARTICIPATION.—The 
Sec-
retary shall establish minimum standards for a non-
profit organization to participate in the program,
which shall include—
‘‘(i) requiring such an organization to dis-
close to the Secretary its taxpayer identification
number and evidence sufficient to indicate that
the organization is an organization described in
section 501(c) of the Internal Revenue Code of
1986 that is exempt from taxation under subtitle
A of such Code;
‘‘(ii) requiring that the board of directors of
such an organization be comprised only of indi-
viduals who do not receive any compensation or
other thing of value by reason of their service on
the board and who have no personal financial
interest in the rehabilitation project of the orga-
nization that is financed with the loan insured
under this subsection;
‘‘(iii) requiring such an organization to
submit to the Secretary financial statements of
the organization for the most recent 2 years,
which have been prepared by a party that is un-
affiliated with the organization and is qualified
to prepare financial statements;
‘‘(iv) limiting to 10 the number of loans
that are insured under this subsection, made to
any single such organization, and, at any one
time, have an outstanding balance of principal
or interest, except that the Secretary may in-
crease such numerical limitation on a case-by-
case basis for good cause shown; and
‘‘(v) requiring such an organization to have
been certified by the Secretary as meeting the re-
quirements under this subsection and otherwise
eligible to participate in the program not more
than 2 years before obtaining a loan insured
under this section.
‘‘(C) COMPLETION
OF
WORK.—The Secretary
shall prohibit any lender making a loan insured
under this subsection from disbursing the final pay-
ment of loan proceeds unless the lender has received
affirmation, from the borrower under the loan, both
in writing and pursuant to an interview in person
or over the telephone, that the rehabilitation activities
financed by the loan have been satisfactorily com-
pleted.
‘‘(D) CONSULTANT STANDARDS.—The Secretary
shall require that any consultant, as such term is de-
fined by the Secretary, who is involved in a home in-
spection, site visit, or preparation of bids with respect
to any loan insured under this section shall meet such
standards established by the Secretary to ensure accu-
rate inspections and preparation of bids.
‘‘(E) CONTRACTOR
QUALIFICATION.—The Sec-
retary shall require, in the case of any loan that is
insured under this subsection and involves rehabilita-
tion with a cost of $25,000 or more, that the con-
tractor or other person performing or supervising the
rehabilitation activities financed by the loan shall—
‘‘(i) be certified by a nationally recognized
organization as meeting industry standards for
quality of workmanship, training, and con-
tinuing education, including financial manage-
ment;
‘‘(ii) be licensed to conduct such activities
by the State or unit of general local government
in which the rehabilitation activities are being
completed; or
‘‘(iii) be bonded or provide such equivalent
protection, as the Secretary may require.’’.
(b) REPORT ON ACTIVITY OF NONPROFIT ORGANIZA-
TIONS UNDER PROGRAM.—Not later than 60 days after the
date of the enactment of this Act, the Secretary of Housing
and Urban Development shall submit a report to the Con-
gress regarding the participation of nonprofit organizations
under the rehabilitation loan program under section 203(k)
of the National Housing Act (12 U.S.C. 1709(k)). The re-
port shall—
(1) determine and describe the extent of partici-
pation in the program by such organizations;
(2) identify and compare the default and claim
rates for loans made under the program to nonprofit
organizations and to owner-occupier participants;
(3) analyze the impact, on such organizations
and the program, of prohibiting such organizations
from participating in the program; and
(4) identify other opportunities for such organi-
zations to acquire financing or credit enhancement
for rehabilitation activities.
(c) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue final regulations and any
other administrative orders or notices necessary to carry
out the provisions of this section and the amendments made
by this section not later than 120 days after the date of
the enactment of this Act.
SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Neighborhood Teachers Act’’.
(b) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) teachers are an integral part of our commu-
nities;
(2) other than families, teachers are often the
most important mentors to children, providing them
with the values and skills for self-fulfillment in adult
life; and
(3) the Neighborhood Teachers Act recognizes the
value teachers bring to community and family life
‘‘(4) CREDIT
FOR
PREMIUMS
PAID.—Notwith-
standing section 203(c)(2)(A), the Secretary may re-
duce the amount of the single premium payment oth-
erwise collected under such section at the time of the
insurance of a mortgage refinanced and insured
under this subsection. The amount of the single pre-
mium for mortgages refinanced under this subsection
shall be determined by the Secretary based on the ac-
tuarial study required under paragraph (5).
‘‘(5) ACTUARIAL
STUDY.—Not later than 180
days after the date of the enactment of the American
Homeownership and Economic Opportunity Act of
2000, the Secretary shall conduct an actuarial anal-
ysis to determine the adequacy of the insurance pre-
miums collected under the program under this sub-
section with respect to—
‘‘(A) a reduction in the single premium
payment collected at the time of the insurance of
a mortgage refinanced and insured under this
subsection;
‘‘(B) the establishment of a single national
limit on the benefits of insurance under sub-
section (g) (relating to limitation on insurance
authority); and