(d) SELECTION CRITERIA.—The Secretary shall estab-
lish selection criteria for competitions under subsection (b),
which shall include the following criteria:
(1) CAPACITY.—
(A) MANAGEMENT.—The extent to which the
entity’s management has the quality, experience,
and expertise to make and manage successful in-
vestments for community and economic develop-
ment in low-income communities.
(B) STATE AND LOCAL COOPERATION.—The
extent to which the entity demonstrates a capac-
ity to cooperate with States or units of general
local government and with community-based or-
ganizations and residents of low-income commu-
nities.
(2) INVESTMENT STRATEGY.—The quality of the
entity’s investment strategy submitted in accordance
with subsection (a)(5) and the extent to which the in-
vestment strategy furthers the goals of this Act pursu-
ant to paragraph (3) of this subsection.
(3) PUBLIC PURPOSE GOALS.—With respect to
the statement of public purpose goals of the entity
submitted in accordance with subsection (a)(6), and
the strategy and measurements included therein—
(A) the extent to which such goals promote
community and economic development;
(B) the extent to which such goals provide
for making qualified investments in low-income
communities that further economic development
objectives, such as—
(i) creating, within 2 years of the com-
pletion of the initial such investment, job
opportunities, opportunities for ownership,
and other economic opportunities within a
low-income community, both short-term and
of a longer duration;
(ii) improving the economic vitality of
a low-income community, including stimu-
lating other business development;
(iii) bringing new income into a low-
income community and assisting in the re-
vitalization of such community;
(iv) converting real property for the
purpose of creating a site for business incu-
bation and location, or business district re-
vitalization;
(v) enhancing economic competition,
including the advancement of technology;
(vi) rural development;
(vii) mitigating, rehabilitating, and
reusing real property considered subject to
the Solid Waste Disposal Act (42 U.S.C.
6901 et seq.; commonly referred to as the
Resource Conservation and Recovery Act) or
restoring coal mine-scarred land;
(viii) creation of local wealth through
investments in employee stock ownership
companies or resident-owned ventures; and
(ix) any other objective that the Sec-
retary may establish to further the purposes
of this Act;
(C) the quality of jobs to be created for resi-
dents of low-income communities, taking into
consideration such factors as the payment of
higher wages, job security, employment benefits,
opportunity for advancement, and personal asset
building;
(D) the extent to which achievement of such
goals will involve community-based organiza-
tions and residents in community development
activities; and
(E) the extent to which the investments re-
ferred to in subparagraph (B) are likely to ben-
efit existing small business in low-income com-
munities or will encourage the growth of small
business in such communities.
(4) OTHER.—Any other criteria that the Sec-
retary may establish to carry out the purposes of this
Act.
(e) FIRST YEAR REQUIREMENTS.—
(1) NUMERICAL
LIMITATION.—The number of
APICs may not, at any time during the 1-year period
that begins upon the Secretary awarding the first li-
cense for an APIC under this Act, exceed 15.
(2) LIMITATION ON ALLOCATION OF AVAILABLE
CREDIT SUBSIDY.—Of the amount of budget authority
initially made available for allocation under this Act
for APICs, the amount allocated for any single APIC
may not exceed 20 percent.
(3) NATIVE
AMERICAN
PRIVATE
INVESTMENT
COMPANY.—Subject only to the absence of an approv-
able application from an entity, during the 1-year pe-
riod referred to in paragraph (1), of the entities se-
lected and licensed by the Secretary as APICs, at
least one shall be an entity that has as its primary
purpose the making of qualified low-income commu-
nity investments in areas that are within Indian
country (as such term is defined in section 1151 of
title 18, United States Code) or within lands that
have status as Hawaiian home land under section
204 of the Hawaiian Homes Commission Act, 1920
(42 Stat. 108) or are acquired pursuant to such Act.
The Secretary may establish specific selection criteria
for applicants under this paragraph.
(f) COMMUNICATIONS BETWEEN HUD AND APPLI-
CANTS.—
(1) IN GENERAL.—The Secretary shall set forth
in regulations the procedures under which HUD and
applicants for APIC licenses, and others, may com-
municate. Such regulations shall—
(A) specify by position the HUD officers
and employees who may communicate with such
applicants and others;
(B) permit HUD officers and employees to
request and discuss with the applicant and oth-
ers (such as banks or other credit or business ref-
erences, or potential investors, that the applicant
specifies in writing) any more detailed informa-
tion that may be desirable to facilitate HUD’s
review of the applicant’s application;
(C) restrict HUD officers and employees
from revealing to any applicant—
(i) the fact or chances of award of a li-
cense to such applicant, unless there has
been a public announcement of the results of
the competition; and
(ii) any information with respect to
any other applicant; and
(D) set forth requirements for making and
keeping records of any communications con-
ducted under this subsection, including require-
ments for making such records available to the
public after the award of licenses under an ini-
tial or subsequent notice, as appropriate, under
subsection (a).
(2) TIMING.—Regulations under this subsection
may be issued as interim rules for effect on or before
the date of publication of the first notice under sub-
section (a), and shall apply only with respect to ap-
plications under such notice. Regulations to imple-
ment this subsection with respect to any notice after
the first such notice shall be subject to notice and
comment rulemaking.
(3) INAPPLICABILITY OF DEPARTMENT OF HUD
ACT PROVISION.—Section 12(e)(2) of the Department
of Housing and Urban Development Act (42 U.S.C.
3537a(e)(2)) is amended by inserting before the pe-
riod at the end the following: ‘‘or any license provided
under the America’s Private Investment Companies
Act’’.
SEC. 6. OPERATIONS OF APICS.
(a) POWERS AND AUTHORITIES.—
(1) IN GENERAL.—An APIC shall have any pow-
ers or authorities that—
(A) the APIC derives from the jurisdiction
in which it is organized, or that the APIC other-
wise has;
(B) may be conferred by a license under
this Act; and
(C) the Secretary may prescribe by regula-
tion.
(2) NEW MARKET ASSISTANCE.—Nothing in this
Act shall preclude an APIC or its investors from re-
ceiving an allocation of New Market Tax Credits (to
the extent such credits are established under Federal
law) if the APIC satisfies any applicable terms and
conditions under the Internal Revenue Code of 1986.
(b) INVESTMENT LIMITATIONS.—
(1) QUALIFIED LOW-INCOME COMMUNITY INVEST-
MENTS.—Substantially all investments that an APIC
makes shall be qualified low-income community in-
vestments if the investments are financed with—
(A) amounts available from the proceeds of
the issuance of an APIC’s qualified debenture
guaranteed under this Act;
(B) proceeds of the sale of obligations de-
scribed under subsection (c)(3)(C)(iii); or
(C) the use of private equity capital, as de-
termined by the Secretary, in an amount speci-
fied in the APIC’s license.
(2) SINGLE BUSINESS INVESTMENTS.—An APIC
shall not, as a matter of sound financial practice, in-
vest in any one business an amount that exceeds an
amount equal to 35 percent of the sum of—
(A) the APIC’s private equity capital; plus
(B) an amount equal to the percentage limit
that the Secretary determines that an APIC may
have outstanding at any one time, under sub-
section (c)(2)(A).
(c) BORROWING POWERS; QUALIFIED DEBENTURES.—
(1) ISSUANCE.—An APIC may issue qualified
debentures. The Secretary shall, by regulation, specify
the terms and requirements for debentures to be con-
sidered qualified debentures for purposes of this Act,
except that the term to maturity of any qualified de-
benture may not exceed 21 years and each qualified
debenture shall bear interest during all or any part
of that time period at a rate or rates approved by the
Secretary.
(2) LEVERAGE LIMITS.—In general, as a matter
of sound financial management practices—
(A) the total amount of qualified debentures
that an APIC issues under this Act that an
APIC may have outstanding at any one time
shall not exceed an amount equal to 200 percent
of the private equity capital of the APIC, as de-
termined by the Secretary; and
(B) an APIC shall not have more than
$300,000,000 in face value of qualified deben-
tures issued under this Act outstanding at any
one time.
(3) REPAYMENT.—
(A) CONDITION OF BUSINESS WIND-UP.—An
APIC shall have repaid, or have otherwise been
relieved of indebtedness, with respect to any in-
terest or principal amounts of borrowings under
this subsection no less than 2 years before the
APIC may dissolve or otherwise complete the
wind-up of its business.
(B) TIMING.—An APIC may repay any in-
terest or principal amounts of borrowings under
this subsection at any time: Provided, That the
repayment of such amounts shall not relieve an
APIC of any duty otherwise applicable to the
APIC under this Act, unless the Secretary orders
such relief.
(C) USE
OF
INVESTMENT
PROCEEDS
BE-
FORE REPAYMENT.—Until an APIC has repaid
all interest and principal amounts on APIC bor-
rowings under this subsection, an APIC may use
the proceeds of investments, in accordance with
regulations issued by the Secretary, only to—
(i) pay for proper costs and expenses
the APIC incurs in connection with such
investments;
(ii) pay for the reasonable administra-
tive expenses of the APIC;
(iii) purchase Treasury securities;
(iv) repay interest and principal
amounts on APIC borrowings under this
subsection;
(v) make interest, dividend, or other
distributions to or on behalf of an investor;
or
(vi) undertake such other purposes as
the Secretary may approve.
(D) USE OF INVESTMENT PROCEEDS AFTER
REPAYMENT.—After an APIC has repaid all in-
terest and principal amounts on APIC bor-
rowings under this subsection, and subject to
continuing compliance with subsection (a), the
APIC may use the proceeds from investments to
make interest, dividend, or other distributions to
or on behalf of investors in the nature of returns
on capital, or the withdrawal of private equity
capital, without regard to subparagraph (C) but
in conformity with the APIC’s investment strat-
egy and statement of public purpose goals.
(d) REUSE OF QUALIFIED DEBENTURE PROCEEDS.—
An APIC may use the proceeds of sale of Treasury securities
purchased under subsection (c)(3)(C)(iii) to make qualified
low-income community investments, subject to the Sec-
retary’s approval. In making the request for the Secretary’s
approval, the APIC shall follow the procedures applicable
to an APIC’s request for HUD guarantee action, as the Sec-
retary may modify such procedures for implementation of
this subsection. Such procedures shall include the descrip-
tion and certifications that an APIC must include in all
requests for guarantee action, and the environmental certifi-
cation applicable to initial expenditures for a project or ac-
tivity.
(e) ANTIPIRATING.—Notwithstanding any other provi-
sion of law, an APIC may not use any private equity cap-
ital required to be contributed under this Act, or the pro-
ceeds from the sale of any qualified debenture under this
Act, to make an investment, as determined by the Secretary,
to assist directly in the relocation of any industrial or com-
mercial plant, facility, or operation, from 1 area to another
area, if the relocation is likely to result in a significant
loss of employment in the labor market area from which
the relocation occurs.
(f) EXCLUSION OF APIC FROM DEFINITION OF DEBT-
OR UNDER BANKRUPTCY PROVISIONS.—Section 109(b)(2)
of title 11, United States Code, is amended by inserting
before ‘‘credit union’’ the following: ‘‘America’s Private In-
vestment Company licensed under the America’s Private
Investment Companies Act,’’.
SEC. 7. CREDIT ENHANCEMENT BY THE FEDERAL GOVERN-
MENT.
(a) ISSUANCE AND GUARANTEE OF QUALIFIED DE-
BENTURES.—
(1) AUTHORITY.—To the extent consistent with
the Federal Credit Reform Act of 1990, the Secretary
is authorized to make commitments to guarantee and
guarantee the timely payment of all principal and
interest as scheduled on qualified debentures issued by
APICs. Such commitments and guarantees may only
be made in accordance with the terms and conditions
established under paragraph (2).
(2) TERMS
AND
CONDITIONS.—The Secretary
shall establish such terms and conditions as the Sec-
retary determines to be appropriate for commitments
and guarantees under this subsection, including terms
and conditions relating to amounts, expiration, num-
ber, priorities of repayment, security, collateral, am-
ortization, payment of interest (including the timing
thereof), and fees and charges. The terms and condi-
tions applicable to any particular commitment or
guarantee may be established in documents that the
Secretary approves for such commitment or guar-
antee.
(3) SENIORITY.—Notwithstanding any other pro-
vision of Federal law or any law or the constitution
of any State, qualified debentures guaranteed under
this subsection by the Secretary shall be senior to any
other debt obligation, equity contribution or earnings,
or the distribution of dividends, interest, or other
amounts, of an APIC.
(b) ISSUANCE OF TRUST CERTIFICATES.—The Sec-
retary, or an agent or entity selected by the Secretary, is
authorized to issue trust certificates representing ownership
of all or a fractional part of guaranteed qualified debentures
issued by APICs and held in trust.
(c) GUARANTEE OF TRUST CERTIFICATES.—
(1) IN GENERAL.—The Secretary is authorized,
upon such terms and conditions as the Secretary de-
termines to be appropriate, to guarantee the timely
payment of the principal of and interest on trust cer-
tificates issued by the Secretary, or an agent or other
entity, for purposes of this section. Such guarantee
shall be limited to the extent of principal and interest
on the guaranteed qualified debentures which compose
the trust.
(2) SUBSTITUTION OPTION.—The Secretary shall
have the option to replace in the corpus of the trust
any prepaid or defaulted qualified debenture with a
debenture, another full faith and credit instrument, or
any obligations of the United States, that may rea-
sonably substitute for such prepaid or defaulted quali-
fied debenture.
(3) PROPORTIONATE
REDUCTION
OPTION.—In
the event that the Secretary elects not to exercise the
option under paragraph (2), and a qualified deben-
ture in such trust is prepaid, or in the event of de-
fault of a qualified debenture, the guarantee of timely
payment of principal and interest on the trust certifi-
cate shall be reduced in proportion to the amount of
principal and interest that such prepaid qualified de-
benture represents in the trust. Interest on prepaid or
defaulted qualified debentures shall accrue and be
guaranteed by the Secretary only through the date of
payment of the guarantee. During the term of a trust
certificate, it may be called for redemption due to
prepayment or default of all qualified debentures that
are in the corpus of the trust.
(d) FULL FAITH AND CREDIT BACKING OF GUARAN-
TEES.—The full faith and credit of the United States is
pledged to the timely payment of all amounts which may
be required to be paid under any guarantee by the Secretary
pursuant to this section.
(e) SUBROGATION AND LIENS.—
(1) SUBROGATION.—In the event the Secretary
pays a claim under a guarantee issued under this sec-
tion, the Secretary shall be subrogated fully to the
rights satisfied by such payment.
(2) PRIORITY OF LIENS.—No State or local law,
and no Federal law, shall preclude or limit the exer-
cise by the Secretary of its ownership rights in the de-
bentures in the corpus of a trust under this section.
(f) REGISTRATION.—
(1) IN GENERAL.—The Secretary shall provide
for a central registration of all trust certificates
issued pursuant to this section.
(2) AGENTS.—The Secretary may contract with
an agent or agents to carry out on behalf of the Sec-
retary the pooling and the central registration func-
tions of this section notwithstanding any other provi-
sion of law, including maintenance on behalf of and
under the direction of the Secretary, such commercial
bank accounts or investments in obligations of the
United States as may be necessary to facilitate trusts
backed by qualified debentures guaranteed under this
Act and the issuance of trust certificates to facilitate
formation of the corpus of the trusts. The Secretary
may require such agent or agents to provide a fidelity
bond or insurance in such amounts as the Secretary
determines to be necessary to protect the interests of
the Government.
(3) FORM.—Book-entry or other electronic forms
of registration for trust certificates under this Act are
authorized.
(g) TIMING OF ISSUANCE OF GUARANTEES OF QUALI-
FIED DEBENTURES AND TRUST CERTIFICATES.—The Sec-
retary may, from time to time in the Secretary’s discretion,
exercise the authority to issue guarantees of qualified deben-
tures under this Act or trust certificates under this Act.
SEC. 8. APIC REQUESTS FOR GUARANTEE ACTIONS.
(a) IN GENERAL.—The Secretary may issue a guar-
antee under this Act for a qualified debenture that an APIC
intends to issue only pursuant to a request to the Secretary
by the APIC for such guarantee that is made in accordance
with regulations governing the content and procedures for
such requests, that the Secretary shall prescribe. Such regu-
lations shall provide that each such request shall include—
(1) a description of the manner in which the
APIC intends to use the proceeds from the qualified
debenture;
(2) a certification by the APIC that the APIC is
in substantial compliance with—
(A) this Act and other applicable laws, in-
cluding any requirements established under this
Act by the Secretary;
(B) all terms and conditions of its license,
any cease-and-desist order issued under section
10, and of any penalty or condition that may
have arisen from examination or monitoring by
the Secretary or otherwise, including the satis-
faction of any financial audit exception that
may have been outstanding; and
(C) all requirements relating to the alloca-
tion and use of New Markets Tax Credits, to the
extent such credits are established under Federal
law; and
(3) any other information or certification that
the Secretary considers appropriate.
(b) REQUESTS FOR GUARANTEE OF QUALIFIED DE-
BENTURES THAT INCLUDE FUNDING FOR INITIAL EXPEND-
ITURE FOR A PROJECT OR ACTIVITY.—In addition to the
description and certification that an APIC is required to
supply in all requests for guarantee action under subsection
(a), in the case of an APIC’s request for a guarantee that
includes a qualified debenture, the proceeds of which the
APIC expects to be used as its initial expenditure for a
project or activity in which the APIC intends to invest, and
the expenditure for which would require an environmental
assessment under the National Environmental Policy Act
of 1969 and other related laws that further the purposes
of such Act, such request for guarantee action shall include
evidence satisfactory to the Secretary of the certification of
the completion of environmental review of the project or ac-
tivity required of the cognizant State or local government
under subsection (c). If the environmental review responsi-
bility for the project or activity has not been assumed by
a State or local government under subsection (c), then the
Secretary shall be responsible for carrying out the applica-
ble responsibilities under the National Environmental Pol-
icy Act of 1969 and other provisions of law that further
the purposes of such Act that relate to the project or activity,
and the Secretary shall execute such responsibilities before
acting on the APIC’s request for the guarantee that is cov-
ered by this subsection.
(c) 
RESPONSIBILITY
FOR
ENVIRONMENTAL
RE-
VIEWS.—
(1) EXECUTION OF RESPONSIBILITY BY THE SEC-
RETARY.—This subsection shall apply to guarantees
by the Secretary of qualified debentures under this
Act, the proceeds of which would be used in connec-
tion with qualified low-income community invest-
ments of APICs under this Act.
(2) ASSUMPTION
OF
RESPONSIBILITY
BY
COG-
NIZANT UNIT OF GENERAL GOVERNMENT.—
(A) GUARANTEE
OF
QUALIFIED
DEBEN-
TURES.—In order to assure that the policies of
the National Environmental Policy Act of 1969
and other provisions of law that further the pur-
poses of such Act (as specified in regulations
issued by the Secretary) are most effectively im-
plemented in connection with the expenditure of
funds under this Act, and to assure to the public
undiminished protection of the environment, the
Secretary may, under such regulations, in lieu of
the environmental protection procedures other-
wise applicable, provide for the guarantee of
qualified debentures, any part of the proceeds of
which are to fund particular qualified low-in-
come community investments of APICs under
this Act, if a State or unit of general local gov-
ernment, as designated by the Secretary in ac-
cordance with regulations issued by the Sec-
retary, assumes all of the responsibilities for en-
vironmental review, decisionmaking, and action
pursuant to the National Environmental Policy
Act of 1969 and such other provisions of law
that further such Act as the regulations of the
Secretary specify, that would otherwise apply to
the Secretary were the Secretary to undertake the
funding of such investments as a Federal action.
(B) IMPLEMENTATION.—The Secretary shall
issue regulations to carry out this subsection
only after consultation with the Council on En-
vironmental Quality. Such regulations shall—
(i) specify any other provisions of law
which further the purposes of the National
Environmental Policy Act of 1969 and to
which the assumption of responsibility as
provided in this subsection applies;
(ii) provide eligibility criteria and
procedures for the designation of a State or
unit of general local government to assume
all of the responsibilities in this subsection;
(iii) specify the purposes for which
funds may be committed without regard to
the procedure established under paragraph
(3);
(iv) provide for monitoring of the per-
formance of environmental reviews under
this subsection;
(v) in the discretion of the Secretary,
provide for the provision or facilitation of
training for such performance; and
(vi) subject to the discretion of the Sec-
retary, provide for suspension or termi-
nation by the Secretary of the assumption
under subparagraph (A).
(C) RESPONSIBILITIES
OF
STATES
AND
UNITS OF GENERAL LOCAL GOVERNMENT.—The
Secretary’s duty under subparagraph (B) shall
not be construed to limit any responsibility as-
sumed by a State or unit of general local govern-
ment with respect to any particular request for
guarantee under subparagraph (A), or the use of
funds for a qualified investment.
(3) PROCEDURE.—Subject to compliance by the
APIC with the requirements of this title, the Sec-
retary shall approve the request for guarantee of a
qualified debenture, any part of the proceeds of which
is to fund particular qualified low-income community
investments of an APIC under this Act, that is subject
to the procedures authorized by this subsection only if,
not less than 15 days prior to such approval and
prior to any commitment of funds to such investment
(except for such purposes specified in the regulations
issued under paragraph (2)(B)), the APIC submits to
the Secretary a request for guarantee of a qualified
debenture that is accompanied by evidence of a cer-
tification of the State or unit of general local govern-
ment which meets the requirements of paragraph (4).
The approval by the Secretary of any such certifi-
cation shall be deemed to satisfy the Secretary’s re-
sponsibilities pursuant to paragraph (1) under the
National Environmental Policy Act of 1969 and such
other provisions of law as the regulations of the Sec-
retary specify insofar as those responsibilities relate
to the guarantees of qualified debentures, any parts of
the proceeds of which are to fund such investments,
which are covered by such certification.
(4) CERTIFICATION.—A certification under the
procedures authorized by this subsection shall—
(A) be in a form acceptable to the Secretary;
(B) be executed by the chief executive officer
or other officer of the State or unit of general
local government who qualifies under regulations
of the Secretary;
(C) specify that the State or unit of general
local government under this subsection has fully
carried out its responsibilities as described under
paragraph (2); and
(D) specify that the certifying officer—
(i) consents to assume the status of a
responsible Federal official under the Na-
tional Environmental Policy Act of 1969
and each provision of law specified in regu-
lations issued by the Secretary insofar as
the provisions of such Act or other such pro-
vision of law apply pursuant to paragraph
(2); and
(ii) is authorized and consents on be-
half of the State or unit of general local
government and himself or herself to accept
the jurisdiction of the Federal courts for the
purpose of enforcement of the responsibil-
ities as such an official.
SEC. 9. EXAMINATION AND MONITORING OF APICS.
(a) IN GENERAL.—The Secretary shall, under regula-
tions, through audits, performance agreements, license con-
ditions, or otherwise, examine and monitor the operations
and activities of APICs for compliance with sound finan-
cial management practices, and for satisfaction of the pro-
gram and procedural goals of this Act and other related
Acts. The Secretary may undertake any responsibility
under this section in cooperation with an APIC liaison
committee, or any agency that is a member of such a com-
mittee, or other agency.
(b) MONITORING, UPDATING, AND PROGRAM RE-
VIEW.—
(1) REPORTING AND UPDATING.—The Secretary
shall establish such annual or more frequent reporting
requirements for APICs, and such requirements for
the updating of the statement of public purpose goals,
investment strategy (including the benchmarks in
such strategy), and other documents that may have
been used in the license application process under this
Act, as the Secretary determines necessary to assist
the Secretary in monitoring the compliance and per-
formance of APICs.
(2) ANNUAL
AUDITS.—The Secretary shall re-
quire each APIC to have an independent audit con-
ducted annually of the operations of the APIC. The
Secretary, in consultation with the Administrator
and the Secretary of the Treasury, shall establish re-
quirements and standards for such audits, including
requirements that such audits be conducted in accord-
ance with generally accepted accounting principles,
that the APIC submit the results of the audit to Sec-
retary, and that specify the information to be sub-
mitted.
(3) EXAMINATIONS.—The Secretary shall, no less
often than once every 2 years, examine the operations
and portfolio of each APIC licensed under this Act for
compliance with sound financial management prac-
tices, and for compliance with this Act.
(4) EXAMINATION STANDARDS.—
(A) SOUND FINANCIAL MANAGEMENT PRAC-
TICES.—The Secretary shall examine each APIC
to ensure, as a matter of sound financial man-
agement practices, substantial compliance with
this and other applicable laws, including Federal
executive orders, Department of Treasury and
Office of Management and Budget guidance, cir-
culars, and application and licensing require-
ments on a continuing basis. The Secretary may,
by regulation, establish any additional standards
for sound financial management practices, in-
cluding standards that address solvency and fi-
nancial exposure.
(B) PERFORMANCE AND OTHER EXAMINA-
TIONS.—The 
Secretary 
shall 
monitor 
each
APIC’s progress in meeting the goals in the
APIC’s statement of public purpose goals, exe-
cuting the APIC’s investment strategy, and other
matters.
(c) INSPECTOR GENERAL RESPONSIBILITY.—In car-
rying out monitoring of HUD’s responsibilities under this
Act and for purposes of ensuring that the program under
this Act is operated in accordance with sound financial
management practices, the Inspector General of the Depart-
ment of Housing and Urban Development shall consult with
the Inspector General of the Department of the Treasury
and the Inspector General of the Small Business Adminis-
tration, as appropriate, and may enter into such agree-
ments and memoranda of understanding as may be nec-
essary to obtain the cooperation of the Inspectors General
of the Department of the Treasury and the Small Business
Administration in carrying out such function.
(d) ANNUAL REPORT BY SECRETARY.—The Secretary
shall submit a report to the Congress annually regarding
the operations, activities, financial health, and achieve-
ments of the APIC program under this Act. The report shall
list each investment made by an APIC and include a sum-
mary of the examinations conducted under subsection
(b)(3), the guarantee actions of HUD, and any regulatory
or policy actions taken by HUD. The report shall distin-
guish recently licensed APICs from APICs that have held
licenses for a longer period for purposes of indicating pro-
gram activities and performance.
(e) GAO REPORT.—
(1) REQUIREMENT.—Not later than 2 years after
the date of the enactment of this Act, the Comptroller
General of the United States shall submit a report to
the Congress regarding the operation of the program
under this Act for licensing and guarantees for
APICs.
(2) CONTENTS.—The report shall include—
(A) an analysis of the operations and moni-
toring by HUD of the APIC program under this
Act;
(B) the administrative and capacity needs
of HUD required to ensure the integrity of the
program;
(C) the extent and adequacy of any credit
subsidy appropriated for the program; and
(D) the management of financial risk and
liability of the Federal Government under the
program.
SEC. 10. PENALTIES.
(a) VIOLATIONS SUBJECT
TO PENALTY.—The Sec-
retary may impose a penalty under this subsection on any
APIC or manager of an APIC that, by any act, practice,
or failure to act, engages in fraud, mismanagement, or non-
compliance with this Act, the regulations under this Act,
or a condition of the APIC’s license under this Act. The
Secretary shall, by regulation, identify, by generic descrip-
tion of a role or responsibilities, any manager of an APIC
that is subject to a penalty under this section.
(b) PENALTIES REQUIRING NOTICE AND AN OPPOR-
TUNITY TO RESPOND.—If, after notice in writing to an
APIC or the manager of an APIC that the APIC or man-
ager has engaged in any action, practice, or failure to act
that, under subsection (a), is subject to a penalty, and after
an opportunity for the APIC or manager to respond to the
notice, the Secretary determines that the APIC or manager
engaged in such action or failure to act, the Secretary may,
in addition to other penalties imposed—
(1) assess a civil money penalty, except than any
civil money penalty under this subsection shall be in
an amount not exceeding $10,000;
(2) issue an order to cease and desist with re-
spect to such action, practice, or failure to act of the
APIC or manager;
(3) suspend, or condition the use of, the APIC’s
license, including deferring, for the period of the sus-
pension, any commitment to guarantee any new
qualified debenture of the APIC, except that any sus-
pension or condition under this paragraph may not
exceed 90 days; and
(4) impose any other penalty that the Secretary
determines to be less burdensome to the APIC than a
penalty under subsection (c).
(c) PENALTIES REQUIRING NOTICE AND HEARING.—
If, after notice in writing to an APIC or the manager of
an APIC that an APIC or manager has engaged in any
action, practice, or failure to act that, under subsection (a),
is subject to a penalty, and after an opportunity for admin-
istrative hearing, the Secretary determines that the APIC
or manager engaged in such action or failure to act, the
Secretary may—