I
104TH CONGRESS
2D SESSION
H. R. 3219
To provide Federal assistance for Indian tribes in a manner that recognizes
the right of tribal self-governance, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 29, 1996
Mr. LAZIO of New York (for himself, Mr. BEREUTER, Mr. HAYWORTH, and
Mr. JOHNSON of South Dakota) introduced the following bill; which was
referred to the Committee on Banking and Financial Services
A BILL
To provide Federal assistance for Indian tribes in a manner
that recognizes the right of tribal self-governance, and
for other purposes.
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
‘‘Native American Housing Assistance and Self-Deter-
mination Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Congressional findings.
Sec. 3. Administration through Office of Native American Programs.
Sec. 4. Definitions.
TITLE I—BLOCK GRANTS AND GRANT REQUIREMENTS
Sec. 101. Block grants.
Sec. 102. Local housing management plans.
Sec. 103. Review of plans.
Sec. 104. Treatment of program income and labor standards.
Sec. 105. Environmental review.
Sec. 106. Regulations.
Sec. 107. Effective date.
Sec. 108. Authorization of appropriations.
TITLE II—AFFORDABLE HOUSING ACTIVITIES
Sec. 201. National objectives and occupancy by Indian families.
Sec. 202. Eligible affordable housing activities.
Sec. 203. Required affordable housing activities.
Sec. 204. Types of investments.
Sec. 205. Low-income requirement and income targeting.
Sec. 206. Certification of compliance with subsidy layering requirements.
Sec. 207. Lease requirements and tenant selection.
Sec. 208. Repayment.
TITLE III—ALLOCATION OF GRANT AMOUNTS
Sec. 301. Annual allocation.
Sec. 302. Allocation formula.
TITLE IV—COMPLIANCE, AUDITS, AND REPORTS
Sec. 401. Remedies for noncompliance.
Sec. 402. Replacement of recipient.
Sec. 403. Monitoring of compliance.
Sec. 404. Performance reports.
Sec. 405. Review and audit by Secretary.
Sec. 406. GAO audits.
Sec. 407. Reports to Congress.
TITLE V—TERMINATION OF ASSISTANCE FOR INDIAN TRIBES
UNDER INCORPORATED PROGRAMS
Sec. 501. Termination of Indian public housing assistance under United States
Housing Act of 1937.
Sec. 502. Termination of new commitments for rental assistance.
Sec. 503. Termination of youthbuild program assistance.
Sec. 504. Termination of HOME program assistance.
Sec. 505. Termination of housing assistance for the homeless.
Sec. 506. Savings provision.
Sec. 507. Effective date.
TITLE VI—LOAN GUARANTEES FOR AFFORDABLE HOUSING
ACTIVITIES
Sec. 601. Authority and requirements.
Sec. 602. Security and repayment.
Sec. 603. Interest.
Sec. 604. Treasury borrowing.
Sec. 605. Training and information.
Sec. 606. Limitations on amount of guarantees.
Sec. 607. Effective date.
TITLE VII—OTHER HOUSING ASSISTANCE FOR NATIVE
AMERICANS
Sec. 701. Loan guarantees for Indian housing.
Sec. 702. 40-year leasehold interest in trust or restricted lands for housing pur-
poses.
Sec. 703. National American Indian Housing Council.
Sec. 704. Effective date.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress hereby finds that—
(1) the Federal Government has a responsibility
to promote the general welfare of the Nation—
(A) by using Federal resources to aid fami-
lies and individuals seeking affordable homes
that are safe, clean, and healthy and, in par-
ticular, assisting responsible, deserving citizens
who cannot provide fully for themselves because
of temporary circumstances or factors beyond
their control;
(B) by working to ensure a thriving na-
tional economy and a strong private housing
market; and
(C) by developing effective partnerships
among the Federal Government, State and local
governments, and private entities that allow
government to accept responsibility for foster-
ing the development of a healthy marketplace
and allow families to prosper without govern-
ment involvement in their day-to-day activities;
(2) there exists a unique relationship between
the Government of the United States and the gov-
ernments of Indian tribes and a unique Federal re-
sponsibility to Indian people;
(3) clause 3 of section 8 of article I of the Con-
stitution of the United States provides that ‘‘The
Congress shall have Power . . . To regulate Com-
merce . . . with the Indian tribes’’ and pursuant to
this and other constitutional authority, the Congress
has plenary power over Indian affairs;
(4) the Congress, through treaties, statutes,
and the general course of dealing with Indian tribes,
has assumed the responsibility for the protection and
preservation of Indian tribes and for working with
tribes and their members to improve their socio-eco-
nomic status so that they are able to take greater
responsibility for their own economic condition;
(5) providing affordable and healthy homes is
an essential element in the Federal Government’s
role in helping tribes and their members to achieve
a socio-economic status comparable to their non-In-
dian neighbors;
(6) the need for affordable and healthy homes
on Indian reservations, in Indian communities, and
in Native Alaskan villages is acute and the Federal
Government should work not only to provide housing
assistance, but also, to the extent practicable, to as-
sist in the development of private housing finance
mechanisms on Indian lands to achieve the goals of
economic self-sufficiency and self-determination for
tribes and their members; and
(7) Federal assistance to meet these respon-
sibilities should be provided in a manner that recog-
nizes the right of tribal self-governance by making
such assistance available directly to the tribes or
tribally designated entities.
SEC. 3. ADMINISTRATION THROUGH OFFICE OF NATIVE
AMERICAN PROGRAMS.
The Secretary of Housing and Urban Development
shall carry out this Act through the Office of Native Amer-
ican Programs of the Department of Housing and Urban
Development.
SEC. 4. DEFINITIONS.
For purposes of this Act, the following definitions
shall apply:
(1) AFFORDABLE HOUSING.—The term ‘‘afford-
able housing’’ means housing that complies with the
requirements for affordable housing under title II.
The term includes permanent housing for homeless
persons who are persons with disabilities, transi-
tional housing, and single room occupancy housing.
(2) FAMILIES AND PERSONS.—
(A) SINGLE PERSONS.—The term ‘‘fami-
lies’’ includes families consisting of a single per-
son in the case of (i) an elderly person, (ii) a
disabled person, (iii) a displaced person, (iv) the
remaining member of a tenant family, and (v)
any other single persons.
(B) FAMILIES.—The term ‘‘families’’ in-
cludes families with children and, in the cases
of elderly families, near-elderly families, and
disabled families, means families whose heads
(or their spouses), or whose sole members, are
elderly, near-elderly, or persons with disabilities,
respectively. The term includes, in the cases of
elderly families, near-elderly families, and dis-
abled families, 2 or more elderly persons, near-
elderly persons, or persons with disabilities liv-
ing together, and 1 or more such persons living
with 1 or more persons determined under the
regulations of the Secretary to be essential to
their care or well-being.
(C) ABSENCE
OF
CHILDREN.—The tem-
porary absence of a child from the home due to
placement in foster care shall not be considered
in determining family composition and family
size for purposes of this Act.
(D) ELDERLY PERSON.—The term ‘‘elder-
ly person’’ means a person who is at least 62
years of age.
(E) PERSON
WITH
DISABILITIES.—The
term ‘‘person with disabilities’’ means a person
who—
(i) has a disability as defined in sec-
tion 223 of the Social Security Act,
(ii) is determined, pursuant to regula-
tions issued by the Secretary, to have a
physical, mental, or emotional impairment
which (I) is expected to be of long-contin-
ued and indefinite duration, (II) substan-
tially impedes his or her ability to live
independently, and (III) is of such a na-
ture that such ability could be improved by
more suitable housing conditions, or
(iii) has a developmental disability as
defined in section 102 of the Developmen-
tal Disabilities Assistance and Bill of
Rights Act.
Such term shall not exclude persons who have
the disease of acquired immunodeficiency syn-
drome or any conditions arising from the etio-
logic agent for acquired immunodeficiency syn-
drome.
(F) DISPLACED PERSON.—The term ‘‘dis-
placed person’’ means a person displaced by
governmental action, or a person whose dwell-
ing has been extensively damaged or destroyed
as a result of a disaster declared or otherwise
formally recognized pursuant to Federal disas-
ter relief laws.
(G) NEAR-ELDERLY
PERSON.—The term
‘‘near-elderly person’’ means a person who is at
least 50 years of age but below the age of 62.
(3) GRANT
BENEFICIARY.—The term ‘‘grant
beneficiary’’ means the Indian tribe or tribes on be-
half of which a grant is made under this Act to a
recipient.
(4) INDIAN.—The term ‘‘Indian’’ means any
person who is a member of an Indian tribe.
(5) INDIAN
AREA.—The term ‘‘Indian area’’
means the area within which a tribally designated
housing entity is authorized to provide assistance
under this Act for affordable housing.
(6) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means—
(A) any Indian or Alaska Native tribe,
band, nation, pueblo, village, or community that
the Secretary of the Interior acknowledges to
exist as an Indian tribe pursuant to the Feder-
ally Recognized Indian Tribe List Act of 1994;
and
(B) any tribe, band, nation, pueblo, village,
or community that—
(i) has been recognized as an Indian
tribe by any State; and
(ii) for which an Indian housing au-
thority is eligible, on the date of the enact-
ment of this Act, to enter into a contract
with the Secretary pursuant to the United
States Housing Act of 1937.
(7) LOCAL HOUSING MANAGEMENT PLAN.—The
term ‘‘local housing management plan’’ means a
plan under section 102.
(8) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ means a family whose income does not
exceed 80 percent of the median income for the
area, except that the Secretary may, for purposes of
this paragraph, establish income ceilings higher or
lower than 80 percent of the median for the area on
the basis of the authority’s findings that such vari-
ations are necessary because of unusually high or
low family incomes.
(9) MEDIAN INCOME.—The term ‘‘median in-
come’’ means, with respect to an area, the greater
of—
(A) the median income for such area; or
(B) the median income for the United
States.
(10) RECIPIENT.—The term ‘‘recipient’’ means
the entity for an Indian tribe that is authorized to
receive grant amounts under this Act on behalf of
the tribe, which may only be the tribe or the tribally
designated housing entity for the tribe.
(11) TRIBALLY
DESIGNATED
HOUSING
EN-
TITY.—The terms ‘‘tribally designated housing en-
tity’’ and ‘‘housing entity’’ mean—
(A) an entity other than the tribal govern-
ment that—
(i) is authorized to receive grant
amounts and provide assistance under this
Act for affordable housing for Indians; and
(ii) is established—
(I) by exercise of the power of
self-government of an Indian tribe
independent of State law; or
(II) by operation of State law
providing specifically for housing au-
thorities or housing entities for Indi-
ans, including regional housing au-
thorities in the State of Alaska; and
(B) any Indian housing authority that—
(i) was established for purposes of the
United States Housing Act of 1937 before
the date of the enactment of this Act and
meets the requirements under the United
States Housing Act of 1937; and
(ii) is not an Indian tribe for purposes
of this Act.
A tribally designated housing entity may be author-
ized or established by one or more Indian tribes to
act on behalf of each such tribe authorizing or estab-
lishing the housing entity. Nothing in this Act may
be construed to affect the existence, or the ability to
operate, of any Indian housing authority established
before the date of the enactment of this Act by a
State-recognized tribe, band, nation, pueblo, village,
or community of Indian or Alaska Natives that is
not an Indian tribe for purposes of this Act.
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Housing and Urban Develop-
ment, except as otherwise specified in this Act.
TITLE I—BLOCK GRANTS AND
GRANT REQUIREMENTS
SEC. 101. BLOCK GRANTS.
(a) AUTHORITY.—For each fiscal year, the Secretary
shall (to the extent amounts are made available to carry
out this Act) make grants under this section on behalf
of Indian tribes to carry out affordable housing activities.
Under such a grant on behalf of an Indian tribe, the Sec-
retary shall provide the grant amounts for the tribe di-
rectly to the recipient for the tribe.
(b) CONDITION
OF GRANT.—The Secretary may
make a grant under this Act on behalf of an Indian tribe
for a fiscal year only if—
(1) the Indian tribe has submitted to the Sec-
retary a local housing management plan for such fis-
cal year under section 102; and
(2) the plan has been determined under section
103 to comply with the requirements of section 102.
(c) AMOUNT.—Except as otherwise provided under
title II, the amount of a grant under this section to a re-
cipient for a fiscal year shall be—
(1) in the case of a recipient whose grant bene-
ficiary is a single Indian tribe, the amount of the al-
location under section 301 for the Indian tribe; and
(2) in the case of a recipient whose grant bene-
ficiary is more than 1 Indian tribe, the sum of the
amounts of the allocations under section 301 for
each such Indian tribe.
(d) USE FOR AFFORDABLE HOUSING ACTIVITIES.—
Except as provided in subsection (f), amounts provided
under a grant under this section may be used only for
affordable housing activities under title II.
(e) EFFECTUATION OF LHMP.—Except as provided
in subsection (f), amounts provided under a grant under
this section may be used only for affordable housing activi-
ties that are consistent with the approved local housing
management plan under section 103 for the grant bene-
ficiary on whose behalf the grant is made.
(f) ADMINISTRATIVE EXPENSES.—
(1) IN GENERAL.—The Secretary shall, by reg-
ulation, authorize each recipient to use a percentage
of any grant amounts received under this Act for
any administrative and planning expenses of the re-
cipient relating to carrying out this Act and activi-
ties assisted with such amounts, which may include
costs for salaries of individuals engaged in admin-
istering and managing affordable housing activities
assisted with grant amounts provided under this Act
and expenses of preparing a local housing manage-
ment plan under section 102.
(2) CONTENTS OF REGULATIONS.—The regula-
tions referred to in paragraph (1) shall provide
that—
(A) the Secretary shall, for each recipient,
establish a percentage referred to in paragraph
(1) based on the specific circumstances of the
recipient and the tribes served by the recipient;
and
(B) the Secretary may review the percent-
age for a recipient upon the written request of
the recipient specifying the need for such review
or the initiative of the Secretary and, pursuant
to such review, may revise the percentage estab-
lished for the recipient.
(3) DEVELOPMENT
OF
REGULATIONS
UNDER
NEGOTIATED
RULEMAKING
PROCEDURE.—Notwith-
standing sections 563(a) and 565(a) of title 5, Unit-
ed States Code, the regulations required under this
subsection shall be issued according to a negotiated
rulemaking procedure under subchapter III of chap-
ter 5 of title 5, United States Code. The Secretary
shall establish a negotiated rulemaking committee
for development of any such proposed regulations,
which shall include representatives of Indian tribes.
(g) PUBLIC-PRIVATE PARTNERSHIPS.—Each recipi-
ent shall make all reasonable efforts, consistent with the
purposes of this Act, to maximize participation by the pri-
vate sector, including nonprofit organizations and for-
profit entities, in implementing the approved local housing
management plan for the tribe that is the grant bene-
ficiary.
SEC. 102. LOCAL HOUSING MANAGEMENT PLANS.
(a) IN GENERAL.—
(1) SUBMISSION.—The Secretary shall provide
for an Indian tribe to submit to the Secretary, for
each fiscal year, a local housing management plan
under this section for the tribe (or for the tribally
designated housing entity for a tribe to submit the
plan under subsection (e) for the tribe) and for the
review of such plans.
(2) LOCALLY DRIVEN NATIONAL OBJECTIVES.—
A local housing management plan shall describe—
(A) the mission of the tribe with respect to
affordable housing or, in the case of a recipient
that is a tribally designated housing entity, the
mission of the housing entity;
(B) the goals, objectives, and policies of
the recipient to meet the housing needs of low-
income families in the jurisdiction of the hous-
ing entity, which shall be designed to achieve
the national objectives under section 201(a);
and
(C) how the locally established mission and
policies of the recipient are designed to achieve,
and are consistent with, the national objectives
under section 201(a).
(b) CONTENTS.—A local housing management plan
under this section for an Indian tribe shall contain the
following information relating to the upcoming fiscal year
for which the assistance under this Act is to be made avail-
able:
(1) FINANCIAL
RESOURCES.—An operating
budget for the recipient for the tribe that includes—
(A) identification and a description of the
financial resources reasonably available to the
recipient to carry out the purposes of this Act,
including an explanation of how amounts made
available will leverage such additional resources
and identification of any tribal or publicly
owned land or property that may be utilized to
carry out the purposes of this Act; and
(B) the uses to which such resources will
be committed, including eligible and required
affordable housing activities under title II to be
assisted and administrative expenses.
(2) AFFORDABLE HOUSING.—For the jurisdic-
tion within which the recipient is authorized to use
assistance under this Act—
(A) a description of the estimated housing
needs and the need for assistance for very low-
income and moderate-income families, specify-
ing such needs for different types of tenure and
for different categories of residents, such as
low-income and moderate-income families, el-
derly persons, persons with disabilities, single
persons, large families, families who are partici-
pating in an organized program to achieve eco-
nomic independence and self-sufficiency, per-
sons with acquired immunodeficiency syndrome,
and other categories of persons that the Sec-
retary determines to be appropriate;
(B) a description of the nature and extent
of homelessness, including an estimate of the
special needs of various categories of persons
who are homeless or threatened with homeless-
ness, and a description of the recipient’s strat-
egy for (i) helping low-income families avoid be-
coming homeless, (ii) addressing the emergency
shelter and transitional housing needs of home-
less persons (including a brief inventory of
available facilities and services that meet such
needs, and (iii) helping homeless persons make
the transition to permanent housing and inde-
pendent living;
(C) a description of the significant charac-
teristics of the housing market, indicating how
such characteristics will influence the use of
amounts made available under this Act for rent-
al assistance, production of new units, rehabili-
tation of old units, or acquisition of existing
units;
(D) an explanation of whether the cost of
housing or the incentives to develop, maintain,
or improve affordable housing are affected by
public policies (including policies of the recipi-
ent, tax policies affecting land and other prop-
erty, land use controls, zoning ordinances,
building codes, fees and charges, growth limits,
and policies that affect the return on residential
investment) and a description of the strategy to
remove or ameliorate negative effects, if any, of
such policies;
(E) an explanation of the institutional
structure, including private industry, nonprofit
organizations, and public institutions, through
which the recipient will carry out housing ac-
tivities under the local housing management
plan, assessing the strengths and gaps in the
delivery system and describing what the recipi-
ent will do to overcome any such gaps;
(F) a description of how the plan will ad-
dress the housing needs identified pursuant to
subparagraphs (A) and (B), describing the rea-
sons for allocation priorities, and identify any
obstacles to addressing underserved needs;
(G) a description of the means of coopera-
tion and coordination between the recipient and
any State or units of general local government
in the development, submission, and implemen-
tation of their housing plans;
(H) a description of the standards and
procedures under which the recipient will mon-
itor activities assisted under this Act and en-
sure long-term compliance with the provisions
of this Act;
(I) a certification that the recipient comply
with title II of the Civil Rights Act of 1968 in
carrying out this Act, to the extent that such
title is applicable;
(J) a statement of the number of families
for whom the recipient will provide affordable
housing using grant amounts provided under
this Act; and
(K) taking into consideration only factors
over which the recipient has control, a descrip-
tion of the goals, programs, and policies for re-
ducing the number of households with incomes
below the poverty line (as defined by the Office
of Management and Budget and revised annu-
ally) and, in consultation with other appropriate
public and private agencies, a statement of how
the goals, programs, and policies for producing
and preserving affordable housing will be co-
ordinated with other programs and services for
which the recipient is responsible and the extent
to which they will reduce (or assist in reducing)
the number of households with incomes below
the poverty line; and
(3) INDIAN
HOUSING
DEVELOPED
UNDER
UNITED STATES HOUSING ACT OF 1937.—A plan de-
scribing how the recipient for the tribe will comply
with the requirements under section 203 relating to
low-income housing owned or operated by the hous-
ing entity that was developed pursuant to a contract
between the Secretary and an Indian housing au-
thority pursuant to the United States Housing Act
of 1937, which shall include—
(A) an estimate of the market rent value
of any such housing owned or operated by the
housing entity;
(B) a statement of the policies of the recip-
ient governing eligibility, admissions, and occu-
pancy of families with respect to dwelling units
in such housing;
(C) a statement of the policies of the recip-
ient governing rents charged for dwelling units
in such housing, including—
(i) the methods by which such rents
are determined; and
(ii) an analysis of how such methods
affect—
(I) the ability of the recipient to
provide affordable housing for low-in-
come families having a broad range of
incomes;
(II) the affordability of housing
for families having incomes that do
not exceed 30 percent of the median
family income for the area; and
(III) the availability of other fi-
nancial resources to the recipient for
use for such housing;
(D) a statement of the standards and poli-
cies of the recipient governing maintenance and
management of such housing, and management
of the recipient with respect to administration
of such housing, including—
(i) housing quality standards;
(ii) routine and preventative mainte-
nance policies;
(iii) emergency and disaster plans;
(iv) rent collection and security poli-
cies;
(v) priorities and improvements for
management of the housing; and
(vi) priorities and improvements for
management of the recipient, including im-
provement of electronic information sys-
tems to facilitate managerial capacity and
efficiency;
(E) a plan describing—
(i) the capital improvements necessary
to ensure long-term physical and social via-
bility of such housing; and
(ii) the priorities of the recipient for
capital improvements of such housing
based on analysis of available financial re-
sources, consultation with residents, and
health and safety considerations;
(F) a description of any such housing to be
demolished or disposed of, a timetable for such
demolition or disposition, and any information
required under law with respect to such demoli-
tion or disposition;
(G) a description of any homeownership
programs of the recipient to be carried out with
respect to such housing and the requirements
and assistance available under such programs;
(H) a description of how the recipient will
coordinate with tribal and State welfare agen-
cies to ensure that residents of such housing
will be provided with access to resources to as-
sist in obtaining employment and achieving self-
sufficiency; and
(I) a description of the requirements estab-
lished by the recipient that promote the safety
of residents of such housing, facilitate the hous-
ing entity undertaking crime prevention meas-
ures (such as community policing, where appro-
priate), allow resident input and involvement,
and allow for creative methods to increase resi-
dent safety by coordinating crime prevention ef-
forts between the recipient and tribal or local
law enforcement officials.
(4) INDIAN HOUSING LOAN GUARANTEES.—A
description of the manner in which and extent to
which loan guarantees under section 184 of the
Housing and Community Development Act of 1992
and title VI of this Act will be used to help in meet-
ing the needs for affordable housing in the jurisdic-
tion of the recipient for the tribe.
(5) DISTRIBUTION OF ASSISTANCE.—A descrip-
tion of—
(A) the geographical distribution (within
the jurisdiction of the recipient for the tribe) of
the use of grant amounts and how such geo-
graphical distribution is consistent with the geo-
graphical distribution of housing need (within
such jurisdiction); and
(B) the distribution of the use of such as-
sistance for various categories of housing and
how use for such various categories is consist-
ent with the priorities of housing need (within
the jurisdiction of the recipient).
(c) 5-YEAR PLAN.—Each local housing management
plan under this section for an Indian tribe shall contain,
with respect to the 5-year period beginning with the fiscal
year for which the plan is submitted, the following infor-
mation:
(1) LOCALLY DRIVEN NATIONAL OBJECTIVES.—
The information described in subsection (a)(2).
(2) CAPITAL IMPROVEMENT OVERVIEW.—If the
recipient will provide capital improvements for hous-
ing described in subsection (b)(3) during such pe-
riod, an overview of such improvements, the ration-
ale for such improvements, and an analysis of how
such improvements will enable the recipient to meet
its goals, objectives, and mission.
(d) PARTICIPATION
OF
TRIBALLY
DESIGNATED
HOUSING ENTITY.—A plan under this section for an In-
dian tribe may be prepared and submitted on behalf of
the tribe by the tribally designated housing entity for the
tribe, but only if such plan contains a certification by the
recognized tribal government of the grant beneficiary that
such tribe has had an opportunity to review the plan and
has authorized the submission of the plan by the housing
entity.
(e) COORDINATION OF PLANS.—A plan under this
section may cover more than 1 Indian tribe, but only if
the certification requirements under subsection (d) are
complied with by each such grant beneficiary covered.
(f) PLANS FOR SMALL TRIBES.—
(1) SEPARATE REQUIREMENTS.—The Secretary
shall establish requirements for submission of plans
under this section and the information to be in-
cluded in such plans applicable to small Indian
tribes and small tribally designated housing entities.
Such requirements shall waive any requirements
under this section that the Secretary determines are
burdensome or unnecessary for such tribes and
housing entities.
(2) SMALL TRIBES.—The Secretary shall define
small Indian tribes and small tribally designated
housing entities based on the number of dwelling
units assisted under this title by the tribe or housing
entity or owned or operated pursuant to a contract
under the United States Housing Act of 1937 be-
tween the Secretary and the Indian housing author-
ity for the tribe.
(g) NEGOTIATED RULEMAKING.—The requirements
relating to the contents of plans under this section shall
be established by regulation. Notwithstanding sections
563(a) and 565(a) of title 5, United States Code, any pro-
posed regulation relating to the required contents of plans
under this section shall be issued pursuant to a negotiated
rulemaking procedure under subchapter III of chapter 5
of such title. The Secretary shall establish a negotiated
rulemaking committee for development of any such pro-
posed regulations, which shall include representatives of
Indian tribes.
SEC. 103. REVIEW OF PLANS.
(a) REVIEW AND NOTICE.—
(1) REVIEW.—The Secretary shall conduct a
limited review of each local housing management
plan submitted to the Secretary to ensure that the
plan complies with the requirements of section 102.
The Secretary shall have the discretion to review a
plan only to the extent that the Secretary considers
review is necessary.
(2) NOTICE.—The Secretary shall notify each
Indian tribe for which a plan is submitted and any
tribally designated housing entity for the tribe
whether the plan complies with such requirements
not later than 45 days after receiving the plan. If
the Secretary does not notify the Indian tribe, as re-
quired under this subsection and subsection (b), the
plan shall be considered, for purposes of this Act, to
have been determined to comply with the require-
ments under section 102 and the tribe shall be con-
sidered to have been notified of compliance upon the
expiration of such 45-day period.
(b) NOTICE OF REASONS FOR DETERMINATION OF
NONCOMPLIANCE.—If the Secretary determines that a
plan, as submitted, does not comply with the requirements
under section 102, the Secretary shall specify in the notice
under subsection (a) the reasons for the noncompliance
and any modifications necessary for the plan to meet the
requirements under section 102.
(c) STANDARDS
FOR DETERMINATION
OF NON-
COMPLIANCE.—The Secretary may determine that a plan
does not comply with the requirements under section 102
only if—
(1) the plan is not consistent with the national
objectives under section 201(a);
(2) the plan is incomplete in significant matters
required under such section;
(3) there is evidence available to the Secretary
that challenges, in a substantial manner, any infor-
mation provided in the plan; or
(4) the Secretary determines that the plan vio-
lates the purposes of this Act because it fails to pro-
vide affordable housing that will be viable on a long-
term basis at a reasonable cost.
(d) TREATMENT
OF EXISTING PLANS.—Notwith-
standing any other provision of this Act, a plan shall be
considered to have been submitted for an Indian tribe if
the appropriate Indian housing authority has submitted
to the Secretary a comprehensive plan under section 14(e)
of the United States Housing Act of 1937 (as in effect
immediately before the enactment of this Act) or under
the comprehensive improvement assistance program under
such section 14, and the Secretary has approved such
plan, before January 1, 1997. The Secretary shall provide
specific procedures and requirements for such tribes to
amend such plans by submitting only such additional in-
formation as is necessary to comply with the requirements
of section 102.
(e) ACTIONS TO CHANGE PLAN.—An Indian tribe for
which a plan under section 102 has been submitted may
change actions or policies described in the plan before sub-
mission and review of the plan for the next fiscal year only
if the tribe (or tribally designated housing entity author-
ized under section 102(d))—
(1) in the case of costly or nonroutine changes,
submits to the Secretary an amendment to the plan
under subsection (f) which is reviewed in accordance
with such subsection; or
(2) in the case of inexpensive or routine
changes, describes such changes in such local hous-
ing management plan for the next fiscal year.
(f) AMENDMENTS TO PLAN.—
(1) IN GENERAL.—During the annual or 5-year
period covered by the plan for an Indian tribe, the
tribe (or tribally designated housing entity for the
tribe authorized under section 102(e)) may submit
to the Secretary any amendments to the plan.
(2) REVIEW.—The Secretary shall conduct a
limited review of each proposed amendment submit-
ted under this subsection to determine whether the
plan, as amended by the amendment, complies with
the requirements of section 102 and notify the tribe
for which the amendment is submitted whether the
plan, as amended, complies with such requirements
not later than 30 days after receiving the amend-
ment. If the Secretary determines that a plan, as
amended, does not comply with the requirements
under section 102, such notice shall indicate the rea-
sons for the noncompliance and any modifications
necessary for the plan to meet the requirements
under section 102. If the Secretary does not notify
the Indian tribe as required under this paragraph,
the plan, as amended, shall be considered, for pur-
poses of this section, to comply with the require-
ments under section 102.
(3) STANDARDS FOR DETERMINATION OF NON-
COMPLIANCE.—The Secretary may determine that a
plan, as amended by a proposed amendment, does
not comply with the requirements under section 102
only if—
(A) the plan, as amended, would be subject
to a determination of noncompliance in accord-
ance with the provisions of subsection (c); or
(B) the Secretary determines that—
(i) the proposed amendment is plainly
inconsistent with the activities specified in
the plan; or
(ii) there is evidence that challenges,
in a substantial manner, any information
contained in the amendment; or
(C) the Secretary determines that the plan,
as amended, violates the purposes of this Act
because it fails to provide affordable housing
that will be viable on a long-term basis at a rea-
sonable cost.
(4) AMENDMENTS TO EXTEND TIME OF PER-
FORMANCE.—Notwithstanding any other provision of
this subsection, the Secretary may not determine
that any amendment to the plan for an Indian tribe
that extends the time for performance of activities
assisted with amounts provided under this Act fails
to comply with the requirements under section 102
if the Secretary has not provided the amount of as-
sistance set forth in the plan or has not provided the
assistance in a timely manner.
SEC. 104. TREATMENT OF PROGRAM INCOME AND LABOR
STANDARDS.
(a) PROGRAM INCOME.—
(1) AUTHORITY TO RETAIN.—Notwithstanding
any other provision of law, a recipient may retain
any program income that is realized from any grant
amounts under this Act if—
(A) such income was realized after the ini-
tial disbursement of the grant amounts received
by the recipient; and
(B) the recipient has agreed that it will
utilize the program income for affordable hous-
ing activities in accordance with the provisions
of this Act.
(2) PROHIBITION OF REDUCTION OF GRANT.—
The Secretary may not reduce the grant amount for
any Indian tribe based solely on (1) whether the re-
cipient for the tribe retains program income under
paragraph (1), or (2) the amount of any such pro-
gram income retained.
(3) EXCLUSION OF AMOUNTS.—The Secretary
may, by regulation, exclude from consideration as
program income any amounts determined to be so
small that compliance with the requirements of this
subsection would create an unreasonable administra-
tive burden on the recipient.
(b) TREATMENT OF LABOR STANDARDS.—The use of
amounts provided under this Act to finance (in whole or
in part) a contract for construction or rehabilitation work
shall not cause such contract to be subject to the require-
ments of the Act of March 3, 1931 (40 U.S.C. 276a–276a-
5; commonly known as the Davis-Bacon Act) or to any
other provision of law requiring payment of wages in ac-
cordance with such Act.
SEC. 105. ENVIRONMENTAL REVIEW.
(a) IN GENERAL.—In order to ensure that the poli-
cies of the National Environmental Policy Act of 1969 and
other provisions of law which further the purposes of such
Act (as specified in regulations issued by the Secretary)
are most effectively implemented in connection with the
expenditure of grant amounts provided under this Act,
and to ensure to the public undiminished protection of the
environment, the Secretary, in lieu of the environmental
protection procedures otherwise applicable, may under
regulations provide for the release of amounts for particu-
lar projects to recipients of assistance under this Act who
assume all of the responsibilities for environmental review,
decisionmaking, and action pursuant to such Act, and
such other provisions of law as the regulations of the Sec-
retary specify, that would apply to the Secretary were the
Secretary to undertake such projects as Federal projects.
The Secretary shall issue regulations to carry out this sec-
tion only after consultation with the Council on Environ-
mental Quality. The regulations shall provide—
(1) for the monitoring of the environmental re-
views performed under this section;
(2) in the discretion of the Secretary, to facili-
tate training for the performance of such reviews;
and
(3) for the suspension or termination of the as-
sumption of responsibilities under this section.
The Secretary’s duty under the preceding sentence shall
not be construed to limit or reduce any responsibility as-
sumed by a recipient of grant amounts with respect to any
particular release of funds.
(b) PROCEDURE.—The Secretary shall approve the
release of funds subject to the procedures authorized by
this section only if, at least 15 days prior to such approval
and prior to any commitment of funds to such projects
the recipient of grant amounts has submitted to the Sec-
retary a request for such release accompanied by a certifi-
cation which meets the requirements of subsection (c).
The Secretary’s approval of any such certification shall be
deemed to satisfy the Secretary’s responsibilities under the
National Environmental Policy Act of 1969 and such
other provisions of law as the regulations of the Secretary
specify insofar as those responsibilities relate to the re-
leases of funds for projects to be carried out pursuant
thereto which are covered by such certification.
(c) CERTIFICATION.—A certification under the proce-
dures authorized by this section shall—
(1) be in a form acceptable to the Secretary,
(2) be executed by the chief executive officer or
other officer of the recipient of assistance under this
Act qualified under regulations of the Secretary,
(3) specify that the recipient has fully carried
out its responsibilities as described under subsection
(a), and
(4) specify that the certifying officer (A) con-
sents to assume the status of a responsible Federal
official under the National Environmental Policy Act
of 1969 and each provision of law specified in regu-
lations issued by the Secretary insofar as the provi-
sions of such Act or such other provisions of law
apply pursuant to subsection (a), and (B) is author-
ized and consents on behalf of the recipient of as-
sistance and such officer to accept the jurisdiction of
the Federal courts for the purpose of enforcement of
the certifying officer’s responsibilities as such an of-
ficial.
SEC. 106. REGULATIONS.
Except as otherwise specifically provided in this Act,
the Secretary shall issue any requirements and regulations
necessary to carry out this Act as follows:
(1) INTERIM REQUIREMENTS.—Not later than
90 days after the date of the enactment of this Act,
the Secretary shall, by notice issued in the Federal
Register, establish any requirements necessary to
carry out this Act in the manner provided in section
107(b), which shall be effective only for fiscal year
1997. The notice shall invite public comments re-
garding such interim requirements and final regula-
tions to carry out this Act and shall include general
notice of proposed rulemaking (for purposes of sec-
tion 553(b) of title 5, United States Code) of the
final regulations under paragraph (2).
(2) FINAL REGULATIONS.—The Secretary shall
issue any final regulations necessary to carry out
this Act not later than September 1, 1997, and such
regulations shall take effect not later than the effec-
tive date under section 107(a). The regulations shall
be issued after notice and opportunity for public
comment in accordance with the procedure under
section 553 of title 5, United States Code, applicable
to substantive rules (notwithstanding subsections
(a)(2), (b)(B), and (d)(3) of such section).
SEC. 107. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b) and as otherwise specifically provided in this Act, this
Act shall take effect on October 1, 1997.
(b) INTERIM APPLICABILITY.—For fiscal year 1997,
this Act shall apply to any Indian tribe that requests the
Secretary to apply this Act to such tribe, subject to the
provisions of this subsection, but only if the Secretary de-
termines that the tribe has the capacity to carry out the
responsibilities under this Act during such fiscal year. For
fiscal year 1997, this Act shall apply to any such tribe
subject to the following limitations:
(1) USE OF ASSISTANCE AMOUNTS AS BLOCK
GRANT.—Amounts shall not be made available pur-
suant to this Act for grants under this Act for such
fiscal year, but any amounts made available for the
tribe under the United States Housing Act of 1937,
title II or subtitle D of title IV of the Cranston-Gon-
zalez National Affordable Housing Act, title IV of
the Stewart B. McKinney Homeless Assistance Act,
or section 2 of the HUD Demonstration Act of 1993
shall be considered grant amounts under this Act
and shall be used subject to the provisions of this
Act relating to such grant amounts.
(2) LOCAL
HOUSING
MANAGEMENT
PLAN.—
Notwithstanding section 103 of this Act, a local
housing management plan shall be considered to
have been submitted for the tribe for fiscal year
1997 for purposes of this Act only if—
(A) the appropriate Indian housing author-
ity has submitted to the Secretary a com-
prehensive plan under section 14(e) of the Unit-
ed States Housing Act of 1937 or under the
comprehensive improvement assistance program
under such section 14;
(B) the Secretary has approved such plan
before January 1, 1996; and
(C) the tribe complies with specific proce-
dures and requirements for amending such plan
as the Secretary may establish to carry out this
subsection.
SEC. 108. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for grants
under title I $650,000,000, for each of fiscal years 1998,
1999, 2000, and 2001.
TITLE II—AFFORDABLE
HOUSING ACTIVITIES
SEC. 201. NATIONAL OBJECTIVES AND OCCUPANCY BY IN-
DIAN FAMILIES.
(a) PRIMARY OBJECTIVE.—The national objectives of
this Act are—
(1) to assist and promote affordable housing ac-
tivities to develop, maintain, and operate safe, clean,
and healthy affordable housing on Indian reserva-
tions and in other Indian areas for occupancy by
low-income Indian families;
(2) to ensure better access to private mortgage
markets for Indian tribes and their members and to
promote self-sufficiency of Indian tribes and their
members;
(3) to coordinate activities to provide housing
for Indian tribes and their members with Federal,
State, and local activities to further economic and
community development for Indian tribes and their
members;
(4) to plan for and integrate infrastructure re-
sources for Indian tribes with housing development
for tribes; and
(5) to promote the development of private cap-
ital markets in Indian country and to allow such
markets to operate and grow, thereby benefiting In-
dian communities.
(b) OCCUPANCY BY INDIAN FAMILIES.—The local
housing management plan for an Indian tribe may require
preference, for housing or housing assistance provided
through affordable housing activities assisted with grant
amounts provided under this Act on behalf of such tribe,
to be given (to the extent practicable) to Indian families
who are members of such tribe. In any case in which the
applicable local housing management plan for an Indian
tribe provides for preference under this subsection, the re-
cipient for the tribe shall ensure that housing activities
that are assisted with grant amounts under this Act for
such tribe are subject to such preference.
SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
Affordable housing activities under this title are ac-
tivities, in accordance with the requirements of this title,
to develop or to support affordable housing for rental or
homeownership, or to provide housing services with re-
spect to affordable housing, through the following activi-
ties:
(1) INDIAN HOUSING ASSISTANCE.—The provi-
sion of modernization or operating assistance for
housing previously developed or operated pursuant
to a contract between the Secretary and an Indian
housing authority.
(2) DEVELOPMENT.—The acquisition, new con-
struction, reconstruction, or moderate or substantial
rehabilitation of affordable housing, which may in-
clude real property acquisition, site improvement,
development of utilities and utility services, conver-
sion, demolition, financing, administration and plan-
ning, and other related activities.
(3) HOUSING
SERVICES.—The provision of
housing-related services for affordable housing, such
as housing counseling in connection with rental or
homeownership assistance, energy auditing, and
other services related to assisting owners, tenants,
contractors, and other entities, participating or seek-
ing to participate in other housing activities assisted
pursuant to this section.
(4) HOUSING
MANAGEMENT
SERVICES.—The
provision of management services for affordable
housing, including preparation of work specifica-
tions, loan processing, inspections, tenant selection,
management of tenant-based rental assistance, and
management of affordable housing projects.
(5) CRIME PREVENTION AND SAFETY ACTIVI-
TIES.—The provision of safety, security, and law en-
forcement measures and activities appropriate to
protect residents of affordable housing from crime.
(6) MODEL
ACTIVITIES.—Housing activities
under model programs that are designed to carry
out the purposes of this Act and are approved by the
Secretary as appropriate for such purpose.
SEC. 203. REQUIRED AFFORDABLE HOUSING ACTIVITIES.
(a) MAINTENANCE OF OPERATING ASSISTANCE FOR
INDIAN HOUSING.—Any recipient who owns or operates
(or is responsible for funding any entity that owns or oper-
ates) housing developed or operated pursuant to a contract
between the Secretary and an Indian housing authority
pursuant to the United States Housing Act of 1937 shall,
using amounts of any grants received under this Act, re-
serve and use for operating assistance under section
202(1) such amounts as may be necessary to provide for
the continued maintenance and efficient operation of such
housing.
(b) DEMOLITION AND DISPOSITION.—This Act may
not be construed to prevent any recipient (or entity funded
by a recipient) from demolishing or disposing of Indian
housing referred to in such subsection. Any provision of
Federal law applicable to the demolition or disposition of
public housing assisted under the United States Housing
Act of 1937 (or any successor Act providing financial as-
sistance for the operation of public housing) shall apply
to the demolition or disposition of Indian housing referred
to in subsection (a).
SEC. 204. TYPES OF INVESTMENTS.
(a) IN GENERAL.—Subject to section 203 and the
local housing management plan for an Indian tribe, the
recipient for such tribe shall have—
(1) the discretion to use grant amounts for af-
fordable housing activities through equity invest-
ments, 
interest-bearing 
loans 
or 
advances,
noninterest-bearing loans or advances, interest sub-
sidies, leveraging of private investments under sub-
section (b), or any other form of assistance that the
Secretary has determined to be consistent with the
purposes of this Act; and
(2) the right to establish the terms of assist-
ance.
(b) LEVERAGING PRIVATE INVESTMENT.—A recipi-
ent may leverage private investments in affordable housing
activities by pledging existing or future grant amounts to
assure the repayment of notes and other obligations of the
recipient issued for purposes of carrying out affordable
housing activities.
SEC. 
205. 
LOW-INCOME 
REQUIREMENT 
AND 
INCOME
TARGETING.
Housing shall qualify as affordable housing for pur-
poses of this Act only if—
(1) each dwelling unit in the housing—
(A) in the case of rental housing, is made
available for occupancy only by a family that is
a low-income family at the time of their initial
occupancy of such unit; and
(B) in the case of housing for homeowner-
ship, is made available for purchase only by a
family that is a low-income family at the time
of purchase; and
(2) each dwelling unit in the housing will re-
main affordable, according to binding commitments
satisfactory to the Secretary, for the remaining use-
ful life of the property (as determined by the Sec-
retary) without regard to the term of the mortgage
or to transfer of ownership, or for such other period
that the Secretary determines is the longest feasible
period of time consistent with sound economics and
the purposes of this Act, except upon a foreclosure
by a lender (or upon other transfer in lieu of fore-
closure) if such action (A) recognizes any contrac-
tual or legal rights of public agencies, nonprofit
sponsors, or others to take actions that would avoid
termination of low-income affordability in the case of
foreclosure or transfer in lieu of foreclosure, and (B)
is not for the purpose of avoiding low-income afford-
ability restrictions, as determined by the Secretary.
SEC. 206. CERTIFICATION OF COMPLIANCE WITH SUBSIDY
LAYERING REQUIREMENTS.
With respect to housing assisted with grant amounts
provided under this Act, the requirements of section
102(d) of the Department of Housing and Urban Develop-
ment Reform Act of 1989 shall be considered to be satis-
fied upon certification by the recipient of the assistance
to the Secretary that the combination of Federal assist-
ance provided to any housing project is not any more than
is necessary to provide affordable housing.
SEC. 207. LEASE REQUIREMENTS AND TENANT SELECTION.
(a) LEASES.—In renting dwelling units in affordable
housing assisted with grant amounts provided under this
Act, the owner or manager of the housing shall utilize
leases that—
(1) do not contain unreasonable terms and con-
ditions;
(2) require the owner or manager to maintain
the housing in compliance with applicable housing
codes and quality standards;
(3) require the owner or manager to give ade-
quate written notice of termination of the lease,
which shall not be less than—
(A) the period provided under the applica-
ble law of the jurisdiction or 14 days, whichever
is less, in the case of nonpayment of rent;
(B) a reasonable period of time, but not to
exceed 14 days, when the health or safety of
other residents or employees of the owner or
manager is threatened; and
(C) the period of time provided under the
applicable law of the jurisdiction, in any other
case;
(4) require that the owner or manager may not
terminate the tenancy except for violation of the
terms or conditions of the lease, violation of applica-
ble Federal, tribal, State, or local law, or for other
good cause; and
(5) provide that the owner or manager may ter-
minate the tenancy of a resident for any activity, en-
gaged in by the resident, any member of the resi-
dent’s household, or any guest or other person under
the resident’s control, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other residents or employees of the owner or
manager of the housing;
(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises
by, persons residing in the immediate vicinity of
the premises; or
(C) is criminal activity (including drug-re-
lated criminal activity).
(b) TENANT SELECTION.—The owner or manager of
affordable rental housing assisted under with grant