[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2150 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2150

            To establish a Native Hawaiian housing program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 25 (legislative day, May 16), 1994

 Mr. Inouye (for himself and Mr. Akaka) introduced the following bill; 
  which was read twice and referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


 
            To establish a Native Hawaiian housing program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Native Hawaiian 
Housing Assistance Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Declaration of policy.
Sec. 4. Purposes.
                      TITLE I--HOUSING ASSISTANCE

Sec. 101. General provisions.
Sec. 102. Loan guarantees for Native Hawaiian housing.
                 TITLE II--HOME INVESTMENT PARTNERSHIPS

Sec. 201. Native Hawaiian eligibility for the HOME program.
             TITLE III--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 301. Native Hawaiian eligibility for CDBG.
Sec. 302. Native Hawaiian allocation.
Sec. 303. Definitions.
                      TITLE IV--HOUSING STANDARDS

Sec. 401. Housing subdivision development.
Sec. 402. Demonstration project to develop localized housing standards 
                            for Native Hawaiian communities.
                      TITLE V--GENERAL PROVISIONS

Sec. 501. Definitions.
Sec. 502. Legal obligations of the United States.
Sec. 503. Severability.
Sec. 504. Regulations.
Sec. 505. Authorization of appropriations.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Native Hawaiians are a distinct and unique indigenous 
        people with a historical continuity to the original inhabitants 
        of the Hawaiian archipelago whose society was organized as a 
        Nation and internationally recognized as such prior to the 
        arrival of the first nonindigenous people in 1778.
            (2) At the time of the arrival of the first nonindigenous 
        people in Hawaii in 1778, the Native Hawaiian people lived in a 
        highly organized, self-sufficient subsistence social system 
        based on a communal land tenure system with a sophisticated 
        language, culture, and religion.
            (3) It is estimated that there were 1,000,000 Native 
        Hawaiians inhabiting Hawaii at the time of the arrival of the 
        first nonindigenous people in 1778. Due to the devastating 
        physical, cultural, social, emotional, and spiritual effects of 
        western contact, however, the Native Hawaiian population was 
        nearly decimated. In 1826, the population had decreased to an 
        estimated 142,650 Hawaiians.
            (4) In 1893, the sovereign, independent, internationally 
        recognized, and indigenous government of Hawaii, the Kingdom of 
        Hawaii, was overthrown by a small group of non-Hawaiians, 
        including United States citizens, who were assisted in their 
        efforts by the United States Minister, a United States naval 
        representative, and armed naval forces of the United States. In 
        1993, because of the participation of United States agents and 
        citizens in the overthrow of the Kingdom of Hawaii, the 
        Congress, on behalf of the people of the United States, 
        apologized to Native Hawaiians for the overthrow and the 
        deprivation of the rights of Native Hawaiians to self 
        determination in the Joint Resolution entitled ``Joint 
        Resolution to acknowledge the 100th anniversary of the January 
        17, 1893 overthrow of the Kingdom of Hawaii, and to offer an 
        apology to Native Hawaiians on behalf of the United States for 
        the overthrow of the Kingdom of Hawaii,'' approved November 23, 
        1993 (107 Stat. 1510).
            (5) In 1898, the Joint Resolution entitled ``Joint 
        Resolution to provide for annexing the Hawaiian Islands to the 
        United States'', approved July 7, 1898 (30 Stat. 750), ceded 
        absolute title of all public lands held by the Republic of 
        Hawaii, including the government and crown lands of the former 
        Kingdom of Hawaii, to the United States, but mandated that 
        revenue generated from these lands be used ``solely for the 
        benefit of the inhabitants of the Hawaiian Islands for 
        educational and other public purposes''.
            (6) By 1919, the Native Hawaiian population had declined to 
        an alarming 22,600 people, and in recognition of this severe 
        decline, the Congress in 1921 enacted the Hawaiian Homes 
        Commission Act, 1920, which designated approximately 200,000 
        acres of the ceded public lands for homesteading by Native 
        Hawaiians.
            (7) Through the enactment of the Hawaiian Homes Commission 
        Act, 1920, the Congress affirmed the special relationship 
        between the United States and the Native Hawaiians. As then 
        Secretary of the Interior Franklin K. Lane was quoted in the 
        committee report for the Hawaiian Homes Commission Act, 1920: 
        ``One thing that impressed me . . . was the fact that the 
        natives of the islands who are our wards, I should say, and for 
        whom in a sense we are trustees, are falling off rapidly in 
        numbers and many are in poverty.
            (8) In 1959, under the Act entitled ``An Act to provide for 
        the admission of the State of Hawaii into the Union'', approved 
        March 18, 1959 (73 Stat. 4), the United States transferred 
        responsibility for the administration of the Hawaiian Home 
        Lands to the State of Hawaii but reaffirmed the special 
        relationship which existed between the United States and the 
        Hawaiian people by retaining the exclusive power to enforce the 
        trust, including the power to approve land exchanges and 
        legislative amendments affecting the rights of beneficiaries 
        under such Act.
            (9) In 1959, under the Act entitled ``An Act to provide for 
        the admission of the State of Hawaii into the Union'', approved 
        March 18, 1959 (73 Stat. 4), the United States ceded to the 
        State of Hawaii title to the public lands formerly held by the 
        United States, but mandated that such lands be held by the 
        State ``in public trust'' and reaffirmed the special 
        relationship which existed between the United States and the 
        Hawaiian people by retaining the legal responsibility to 
        enforce the public trust responsibility for the betterment of 
        the conditions of Native Hawaiians (as defined in the Hawaiian 
        Homes Commission Act, 1920).
            (10) The United States assumed special responsibilities for 
        Native Hawaiian lands and resources at the time of the 
        annexation of the Territory in 1898, upon adoption of the 
        Hawaiian Homes Commission Act, 1920, in 1921, and upon 
        admission of the State of Hawaii into the Union in 1959, and 
        has retained certain of those responsibilities.
            (11) In recognition of the special relationship which 
        exists between the United States and the Native Hawaiian 
        people, the United States has extended to Native Hawaiians the 
        same rights and privileges accorded to American Indian, Alaska 
        Native, Eskimo, and Aleut communities under the Native American 
        Programs Act of 1974, the American Indian Religious Freedom 
        Act, the National Museum of the American Indian Act, the Native 
        American Graves Protection and Repatriation Act, the National 
        Historic Preservation Act, and the Native American Languages 
        Act.
            (12) In recognition of the special relationship which 
        exists between the United States and the Native Hawaiian 
        people, the Congress has enacted numerous special provisions of 
        law for the benefit of Native Hawaiians in the areas of health, 
        education, and labor, including those found in the Older 
        Americans Act of 1965, the Developmental Disabilities 
        Assistance and Bill of Rights Act Amendments of 1987, the 
        Veterans' Benefits and Services Act of 1988, the Native 
        Hawaiian Health Care Act of 1988, and the Native Hawaiian 
        Education Act of 1988.
            (13) The special relationship which exists between the 
        United States and the Native Hawaiian people has also been 
        consistently recognized and affirmed by the Congress in the 
        area of housing--
                    (A) through the authorization of mortgage loans 
                insured by the Federal Housing Administration for the 
                purchase, construction, or refinancing of homes on 
                Hawaiian Home Lands under the National Housing Act;
                    (B) by mandating Native Hawaiian representation on 
                the National Commission on American Indian, Alaska 
                Native, and Native Hawaiian Housing (hereafter in this 
                Act referred to as the ``Commission''); and
                    (C) by the inclusion of Native Hawaiians in the 
                Native American Veterans' Home Loan Equity Act of 1993.
            (14) Despite the enactment of housing programs for Native 
        Hawaiians, the housing needs of Native Hawaiians continue to be 
        severe, and in 1991, the Congress acknowledged the seriousness 
        of the Native Hawaiian housing needs through the establishment 
        of the Commission.
            (15) In 1993, the Commission concluded in its report that 
        the unique circumstances of Native Hawaiians required that new 
        legislation be enacted to alleviate and address the severe 
        housing needs of the Native Hawaiians. Among the Commission's 
        findings were that--
                    (A) Native Hawaiians are seriously overrepresented 
                in the State's homeless population;
                    (B) of those applicants on the waiting list for 
                Hawaiian Home Lands, 19.5 percent of the applicants and 
                17.8 percent of their spouses are unemployed, a 
                substantially higher rate than the general State 
                population;
                    (C) the average Native Hawaiian household size is 
                4.25 persons, as compared to the statewide average of 
                2.97 persons; and
                    (D) the median Native Hawaiian family income is 
                substantially below the 1988 State average of $39,600.
            (16) The Commission further found that Native Hawaiians 
        have the worst housing conditions in the State of Hawaii and 
        the highest percentage of homelessness, representing over 30 
        percent of the State's homeless population and that Native 
        Hawaiians, like American Indians and Alaska Natives, suffer 
        lack of access to conventional financing due to the trust 
        status of their home lands and a frequent inability to meet 
        income requirements.
            (17) The Commission recommended that the Congress remedy 
        the housing problems facing Native Hawaiians by extending to 
        them the same Federal housing assistance available to American 
        Indians and Alaska Natives under the Low-Income Rental, Mutual 
        Help, Loan Guarantee, and Community Development Block Grant 
        programs of the Department of Housing and Urban Development.
            (18) Despite the creation of Federal housing programs 
        designed to benefit low- and moderate-income families, Native 
        Hawaiian families residing on Hawaiian Homelands have been 
        precluded from access to these programs because of the 
        exclusive nature of the trust lands, thus denying to Native 
        Hawaiians those same benefits available to all other qualified 
        Americans.
            (19) In 1993, the United States, in recognition of the 
        housing needs of all Native Hawaiian families, whether residing 
        on the Hawaiian homelands or off, included Native Hawaiians in 
        a study of American Indian and Alaska Native housing needs 
        being conducted by the Urban Institute of the Department of 
        Housing and Urban Development.
            (20) The utilization of ceded lands for the purpose of 
        developing housing for Native Hawaiians is consistent with 2 of 
        the 5 purposes set forth in section 5(f) of ``An Act to provide 
        for the admission of the State of Hawaii into the Union'', 
        approved March 18, 1959 (73 Stat. 4). Specifically, such 
        utilization is for the betterment of the conditions of Native 
        Hawaiians (as defined in the Hawaiian Homes Commission Act, 
        1920) and for the development of farm and home ownership on as 
        widespread a basis as possible.

SEC. 3. DECLARATION OF POLICY.

    The Congress declares that it is the policy of the United States--
            (1) to promote the general welfare of the Nation by 
        employing its funds and credit, as provided in this Act, to 
        remedy the unsafe and unsanitary housing conditions and the 
        acute shortage of decent, safe, and sanitary dwellings for 
        families of lower income and, consistent with the objectives of 
        this Act, to vest in local housing agencies the maximum amount 
        of responsibility in the administration of their housing 
        programs;
            (2) to remedy the severe housing crisis within the Native 
        Hawaiian community, consistent with the United States' special 
        responsibilities and legal obligations to the indigenous people 
        of Hawaii resulting from the unique and historical relationship 
        between the United States and the Native Hawaiian people; and
            (3) to encourage the maximum participation of Native 
        Hawaiian communities and community-based organizations in the 
        planning and development of housing programs established under 
        this Act.

SEC. 4. PURPOSES.

    The purposes of this Act are--
            (1) to amend the United States Housing Act of 1937 by 
        adding a new title to establish and implement a general program 
        of assisted housing for Native Hawaiians;
            (2) to amend the Housing and Community Development Act of 
        1992 to establish and implement a loan guarantee program for 
        Native Hawaiians;
            (3) to amend the Cranston-Gonzalez National Affordable 
        Housing Act to establish Native Hawaiian eligibility for the 
        HOME program; and
            (4) to amend the Housing and Community Development Act of 
        1974 to provide eligibility, allocation, and fund distribution 
        to Native Hawaiians for community development block grants.

                      TITLE I--HOUSING ASSISTANCE

SEC. 101. GENERAL PROVISIONS.

    The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is 
amended by adding at the end the following new title:

           ``TITLE IV--ASSISTED HOUSING FOR NATIVE HAWAIIANS

``SEC. 401. GENERAL AUTHORITY TO PROVIDE ASSISTED HOUSING FOR NATIVE 
              HAWAIIANS.

    ``(a) In General.--The Secretary shall carry out programs to 
provide low-income housing on Native Hawaiian lands in accordance with 
the provisions of this title.
    ``(b) Inapplicability of Titles I and II.--No provision of title I 
or title II shall apply to housing developed or operated pursuant to a 
contract between the Secretary and a Native Hawaiian Housing Authority 
under this title, unless the provision or a provision of this title 
explicitly provides for such applicability.

``SEC. 402. DEFINITIONS.

    ``For purposes of this title, the following definitions shall 
apply:
            ``(1) Adjusted income.--The term `adjusted income' means 
        the income which remains after excluding--
                    ``(A) $550 for each member of the family residing 
                in the household (other than the head of the household 
                or their spouse) who is under 18 years of age or who is 
                18 years of age or older and is disabled or handicapped 
                or a full-time student;
                    ``(B) $400 for any elderly family;
                    ``(C) the amount by which the aggregate of the 
                following expenses of the family exceeds 3 percent of 
                annual family income--
                            ``(i) medical expenses for any family; and
                            ``(ii) reasonable attendant care and 
                        auxiliary apparatus expenses for each 
                        handicapped member of any family, to the extent 
                        necessary to enable any member of such family 
                        (including such handicapped member) to be 
                        employed;
                    ``(D)(i) child care expenses to the extent 
                necessary to enable another member of the family to be 
                employed or to further such family member's education; 
                or
                    ``(ii) excessive travel expenses, not to exceed $25 
                per family per week, for employment or education 
                related travel, except that this clause shall apply 
                only to families assisted by Native Hawaiian Housing 
                Authorities;
                    ``(E) 10 percent of the earned income of the 
                family; and
                    ``(F) any payment made by a member of the family 
                for the support and maintenance of any child, spouse, 
                or former spouse who does not reside in the household, 
                except that the amount excluded under this subparagraph 
                shall not exceed the lesser of--
                            ``(i) the amount that such family member 
                        has a legal obligation to pay; or
                            ``(ii) $550 for each individual for whom 
                        such payment is made.
            ``(2) Community-based.--The term `community-based' means an 
        organization that--
                    ``(A) is exempt from taxation under section 
                501(c)(3) of the Internal Revenue Code of 1986;
                    ``(B) is not a governmental entity; and
                    ``(C) is representative of a community or a 
                significant segment of a community or is engaged in 
                providing services to the community.
            ``(3) Department of hawaiian home lands.--The term 
        `Department of Hawaiian Home Lands' means the department of the 
        State of Hawaii that is responsible for the administration of 
        the Hawaiian Homes Commission Act, 1920.
            ``(4) Family.--The term `family' means one or more persons 
        maintaining a household, as the Secretary shall by regulation 
        provide.
            ``(5) Hawaiian home lands.--The term `Hawaiian Home Lands' 
        means those lands set aside for homesteading by Native 
        Hawaiians under the Hawaiian Homes Commission Act, 1920, and 
        any other lands acquired pursuant to such Act.
            ``(6) Income.--The term `income' means income from all 
        sources of each member of a household, as determined in 
        accordance with criteria prescribed by the Secretary.
            ``(7) Low-income housing.--The term `low-income housing' 
        means decent, safe, and sanitary dwellings assisted under this 
        title.
            ``(8) Low-income families.--The term `low-income families' 
        means families whose incomes do not exceed 80 percent of the 
        median income for the area, as determined by the Secretary with 
        adjustments for smaller and larger families, except that the 
        Secretary may establish income ceilings higher or lower than 80 
        percent of the median for the area on the basis of the 
        Secretary's findings that such variations are necessary because 
        of prevailing levels of construction costs or unusually high or 
        low family incomes.
            ``(9) Native hawaiian.--The term `Native Hawaiian' means 
        any individual who is a descendant of the aboriginal people 
        who, prior to 1778, occupied and exercised sovereignty in the 
        area that now constitutes the State of Hawaii, as evidenced 
        by--
                    ``(A) genealogical records;
                    ``(B) Kupuna (elders) or Kama'aina (long-term 
                community residents) verification; or
                    ``(C) certified birth records.
            ``(10) Native hawaiian housing authority.--The term `Native 
        Hawaiian Housing Authority' means any public body (or agency or 
        instrumentality thereof) established under the laws of the 
        State of Hawaii, that is authorized to engage in or assist in 
        the development or operation of low-income housing for Native 
        Hawaiians.
            ``(11) Native hawaiian lands.--The term `Native Hawaiian 
        lands' means the area within which a Native Hawaiian Housing 
        Authority is authorized to provide low-income housing. The term 
        may include--
                    ``(A) Hawaiian Home Lands;
                    ``(B) ceded public lands; and
                    ``(C) other lands traditionally occupied by Native 
                Hawaiians.
            ``(12) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(13) Public housing terms.--As used in reference to 
        public housing, the following definitions shall apply:
                    ``(A) Development.--The term `development' means 
                any or all undertakings necessary for planning, land 
                acquisition, demolition, construction, or equipment, in 
                connection with a low-income housing project;
                    ``(B) Development cost.--The term `development 
                cost' comprises the costs incurred by a public housing 
                agency in development undertakings and their necessary 
                financing (including the payment of carrying charges), 
                and in otherwise carrying out the development of a 
                housing project. Construction activity in connection 
                with a low-income housing project may be confined to 
                the reconstruction, remodeling, or repair of existing 
                buildings.
                    ``(C) Operation.--
                            ``(i) In general.--The term `operation' 
                        means any or all undertakings appropriate for 
                        management, operation, services, maintenance, 
                        security (including the cost of security 
                        personnel), or financing in connection with a 
                        low-income housing project. The term also means 
                        the financing of tenant programs and services 
                        for families residing in low-income housing 
                        projects, particularly where there is maximum 
                        feasible participation of the tenants in the 
                        development and operation of such tenant 
                        programs and services. To the maximum extent 
                        available and appropriate, existing public and 
                        private agencies in the community shall be used 
                        for the provision of such tenant services.
                            ``(ii) Tenant programs and services.--For 
                        purposes of this subparagraph, the term `tenant 
                        programs and services' includes--
                                    ``(I) the development and 
                                maintenance of tenant organizations 
                                that participate in the management of 
                                low-income housing projects;
                                    ``(II) the training of tenants to 
                                manage and operate such projects and 
                                the utilization of their services in 
                                project management and operation;
                                    ``(III) counseling on household 
                                management, housekeeping, budgeting, 
                                money management, child care, and 
                                similar matters;
                                    ``(IV) advice as to resources for 
                                job training and placement, education, 
                                welfare, health, and other community 
                                services;
                                    ``(V) services that are directly 
                                related to meeting tenant needs and 
                                providing a wholesome living 
                                environment; and
                                    ``(VI) referral to appropriate 
                                agencies in the community when 
                                necessary for the provision of such 
                                services.

``SEC. 403. GRANTS FOR THE DEVELOPMENT OR ACQUISITION OF LOWER INCOME 
              HOUSING PROJECTS.

    ``(a) In General.--The Secretary shall make grants to help finance 
or refinance the development or acquisition of low-income housing 
projects by Native Hawaiian Housing Authorities.
    ``(b) Program Levels.--The Secretary shall, to the extent approved 
in appropriations Acts, reserve authority to enter into obligations 
aggregating such sums as may be necessary to carry out this title.
    ``(c) Recaptured Amounts.--Any amount available for Hawaiian 
housing under subsection (a) that is recaptured shall be used only for 
such housing.

``SEC. 404. ANNUAL CONTRIBUTIONS FOR THE OPERATION OF LOWER INCOME 
              HOUSING PROJECTS.

    ``(a) In General.--The Secretary may make annual contributions to 
Native Hawaiian Housing Authorities for the operation of low-income 
housing projects.
    ``(b) Contract Required.--The Secretary shall embody the provisions 
for each contribution made under this section in a contract which shall 
guarantee the payment of such contribution, subject to the availability 
of funds.
    ``(c) Maximum Contribution.--A contribution made under this section 
shall not exceed the amount which the Secretary determines is 
required--
            ``(1) to assure the lower income character of the projects 
        involved; and
            ``(2) to achieve and maintain adequate operating services 
        and reserve funds.
    ``(d) Regulations.--For purposes of making payments under this 
section, the Secretary shall determine operating deficits based on a 
projected budget on an annual basis and shall promulgate necessary 
regulations for such payments.

``SEC. 405. SECTION 8 LOWER INCOME HOUSING ASSISTANCE.

    ``The Secretary shall make the provisions of section 8 of this Act 
applicable to Native Hawaiian lands if the Secretary determines that 
such assistance is necessary and would be beneficial to Native 
Hawaiians.

``SEC. 406. RENTAL ASSISTANCE PAYMENTS.

    ``(a) Eligibility.--Rental units assisted under this title shall be 
rented only to families who are low-income families at the time of 
their initial occupancy of such units. Reviews of family income shall 
be made at least annually.
    ``(b) Rental Payments.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        family shall pay as rent for a dwelling unit assisted under 
        this title (other than a family assisted under subsection (o) 
        or (y) of section 8, or a family paying rent under section 
        8(c)(3)(B)) an amount (rounded to the nearest dollar) equal to 
        the greatest of the following:
                    ``(A) Twenty percent of the family's monthly 
                adjusted income.
                    ``(B) Ten percent of the family's monthly income.
                    ``(C) If the family is receiving payments for 
                welfare assistance from a public agency, and a part of 
                such payments, adjusted in accordance with the family's 
                actual housing costs, is specifically designated by 
                such agency to meet the family's housing costs, the 
                portion of such payments which is so designated.
            ``(2) Public housing projects.--With respect to families 
        residing in housing projects owned and operated by a Native 
        Hawaiian Housing Authority, the housing authority may charge 
        monthly rent in an amount determined by the housing authority 
        to be appropriate, which amount shall not exceed a maximum 
        amount established by the housing authority and approved by the 
        Secretary.

``SEC. 407. MUTUAL HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM FOR NATIVE 
              HAWAIIAN FAMILIES.

    ``(a) Establishment.--The Secretary shall carry out a mutual help 
homeownership opportunity program for Native Hawaiian families in 
accordance with this section. The program shall be designed to meet the 
homeownership needs of Native Hawaiian families, including families 
whose incomes exceed the levels established for low-income families.
    ``(b) Eligible Families.--
            ``(1) In general.--Except as provided in paragraph (2), 
        assistance under this section shall be limited to Native 
        Hawaiian low-income families.
            ``(2) Exception.--The Native Hawaiian Housing Authority may 
        provide assistance under this section to families whose incomes 
        exceed the levels established for low-income families, if the 
        Native Hawaiian Housing Authority demonstrates to the 
        satisfaction of the Secretary that there is a need for housing 
        for such families that cannot reasonably be met without such 
        assistance.
    ``(c) Mutual Help and Occupancy Agreement.--The Native Hawaiian 
Housing Authority shall require each family selected for housing under 
this section to enter into a mutual help and occupancy agreement. The 
agreement shall provide the following:
            ``(1) Family contribution.--The family shall agree to 
        contribute toward the development cost of a project in the form 
        of land, labor, cash, materials, or equipment.
            ``(2) Monthly payment.--The family shall agree to make a 
        monthly payment to the Native Hawaiian Housing Authority in an 
        amount equal to the greater of the following:
                    ``(A) Percentage of adjusted income.--An amount 
                computed by--
                            ``(i) multiplying the monthly adjusted 
                        income of the family by a percentage that is 
                        not less than 15 percent and not more than 30 
                        percent, as determined by the Native Hawaiian 
                        Housing Authority to be appropriate; and
                            ``(ii) subtracting the estimated monthly 
                        payments of the family for the reasonable use 
                        of utilities (excluding telephone service).
                    ``(B) Administration charge.--The amount budgeted 
                by the Native Hawaiian Housing Authority for monthly 
                operating expenses on the dwelling of the family, 
                excluding any operating cost for which operating 
                assistance is provided by the Secretary under section 
                9.
            ``(3) Maintenance and utilities.--The family shall be 
        responsible for the maintenance and monthly utility expenses of 
        the dwelling. The Native Hawaiian Housing Authority shall have 
        in effect procedures determined by the Secretary to be 
        sufficient for ensuring the timely periodic maintenance of the 
        dwelling by the family.
            ``(4) Homeownership opportunities.--The Native Hawaiian 
        Housing Authority shall afford the family an opportunity to 
        purchase the dwelling under a lease-purchase mortgage, or loan 
        agreement with the Native Hawaiian Housing Authority or any 
        other qualified entity, if the Native Hawaiian Housing 
        Authority determines (in accordance with objective standards 
        and procedures established by the Secretary after consultation 
        with the Native Hawaiian Housing Authority) that the family is 
        able to meet the obligations of homeownership.

``SEC. 408. HAWAIIAN HOUSING MODERNIZATION.

    ``The Secretary may make available and contract to make available 
financial assistance (in such amounts as are authorized pursuant to 
section 413 and as may be approved in appropriations Acts) to Native 
Hawaiian Housing Authorities in accordance with section 14 of this Act.

``SEC. 409. PUBLIC HOUSING MAXIMUM CONTRIBUTION.

    ``In determining the maximum contribution that may be made by the 
Secretary to a Native Hawaiian Housing Authority under this title for 
the development of a housing project (including a mutual help 
homeownership opportunity project under section 407), the Secretary 
shall consider all relevant factors, including--
            ``(1) the logistical problems associated with projects of 
        remote location, low density, or scattered sites; and
            ``(2) the availability of skilled labor and acceptable 
        materials.

``SEC. 410. CONTRACT PROVISIONS AND REQUIREMENTS.

    ``(a) In General.--The Secretary may include in any contract for 
loans or for the development, acquisition, or operation of public 
housing or any other agreement or instrument made pursuant to this 
title, such covenants, conditions, or provisions as the Secretary may 
determine to be necessary in order to insure the lower income character 
of the project involved.
    ``(b) Total Development Cost.--
            ``(1) In general.--Any contract described in subsection (a) 
        shall provide that the total development cost of the project on 
        which the computation of any annual contributions under this 
        title may be based may not exceed--
                    ``(A) the amount determined under paragraph (2) 
                (for the appropriate structure type), unless the 
                Secretary provides otherwise; or
                    ``(B) 110 percent of the amount determined under 
                paragraph (2), unless the Secretary for good cause 
                determines otherwise.
            ``(2) Computation.--For purposes of paragraph (1), the 
        Secretary shall determine the total development cost of a 
        housing project by multiplying the construction cost guideline 
        for the project (which shall be determined by averaging the 
        current construction costs, as listed by not less than 2 
        nationally recognized residential construction cost indices, 
        for publicly bid construction of a good and sound quality) by--
                    ``(A) in the case of elevator-type structures, 1.6; 
                and
                    ``(B) in the case of nonelevator-type structures, 
                1.75.

``SEC. 411. GENERAL PROVISIONS.

    ``(a) Duties of the Secretary.--Notwithstanding any other provision 
of law, the Secretary, in the performance of, and with respect to, the 
functions, powers, and duties vested in the Secretary by this title, 
shall--
            ``(1) prepare annually and submit a budget program as 
        provided for wholly owned Government corporations by chapter 91 
        of title 31, United States Code; and
            ``(2) maintain an integral set of accounts which shall be 
        audited annually by the General Accounting Office in accordance 
        with the principles and procedures applicable to commercial 
        transactions as provided by chapter 91 of title 31, United 
        States Code, and no other audit shall be required.
    ``(b) Receipts and Assets.--All receipts and assets of the 
Secretary under this title shall be available for the purposes of this 
title until expended.
    ``(c) Powers of Federal Reserve Banks.--The Federal Reserve banks 
are authorized and directed to act as depositories, custodians, and 
fiscal agents for the Secretary in the general exercise of the 
Secretary's powers under this title. The Secretary may reimburse any 
such bank for its services in any manner as may be agreed upon.
    ``(d) Related Facilities and Services.--The Secretary shall take 
such actions as may be necessary to ensure the timely and efficient 
provision, through agreements with the Native Hawaiian Housing 
Authority or other entities, of any roads, water supply and sewage 
facilities, and electrical and fuel distribution systems that are 
required for completion and occupancy of public housing projects 
assisted under this title, including mutual help homeownership 
opportunity projects assisted under section 407.
    ``(e) Contract Agency.--The Secretary shall grant the Native 
Hawaiian Housing Authority the authority to contract with any Federal, 
State, local, or nonprofit entity for the purposes outlined in 
subsection (d).

``SEC. 412. REGULATIONS.

    ``(a) Issuance.--The Secretary shall issue such regulations as may 
be necessary to carry out this title.
    ``(b) Consultation With Native Hawaiian Housing Authorities.--In 
formulating proposed regulations under this section, the Secretary 
shall consult with Native Hawaiian Housing Authorities.
    ``(c) Effective Date.--The regulations issued under this section 
shall become effective before the expiration of the 180-day period 
beginning on the date of enactment of the Native Hawaiian Housing 
Assistance Act of 1994.

``SEC. 413. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary to carry out this title.''.

SEC. 102. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

    Subtitle E of title I of the Housing and Community Development Act 
of 1992 (12 U.S.C. 1715z-13a) is amended by adding at the end the 
following new section:

``SEC. 187. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

    ``(a) Authority.--To provide access to sources of private financing 
to Native Hawaiian families and a Native Hawaiian Housing Authority 
that otherwise could not acquire housing financing because of the 
unique status of the Hawaiian Home Lands, the Secretary may guarantee 
not more than 100 percent of the unpaid principal and interest due on 
any loan eligible under subsection (b) made to a Native Hawaiian family 
or Native Hawaiian Housing Authority.
    ``(b) Eligible Loans.--Loans guaranteed pursuant to this section 
shall meet the following requirements:
            ``(1) Eligible borrowers.--The loans shall be made only to 
        borrowers who are Native Hawaiian families or a Native Hawaiian 
        Housing Authority.
            ``(2) Eligible housing.--The loans shall be used to 
        construct, acquire, or rehabilitate 1- to 4-family dwellings 
        that are standard housing and are located on Hawaiian Home 
        Lands or Native Hawaiian lands.
            ``(3) Security.--The loans may be secured by any collateral 
        authorized under existing Federal law or applicable State law.
            ``(4) Lenders.--The loans shall be made only by a lender 
        approved by and meeting qualifications established by the 
        Secretary, except that loans otherwise insured or guaranteed by 
        an agency of the Federal Government or made by an organization 
        of Native Hawaiians from amounts borrowed from the United 
        States shall not be eligible for guarantee under this section. 
        The following lenders are deemed to be approved under this 
        paragraph:
                    ``(A) Any mortgagee approved by the Secretary of 
                Housing and Urban Development for participation in the 
                single family mortgage insurance program under title II 
                of the National Housing Act.
                    ``(B) Any lender whose housing loans under chapter 
                37 of title 38, United States Code, are automatically 
                guaranteed pursuant to section 1802(d) of such title.
                    ``(C) Any lender approved by the Secretary of 
                Agriculture to make guaranteed loans for single family 
                housing under the Housing Act of 1949.
                    ``(D) Any other lender that is supervised, 
                approved, regulated, or insured by any agency of the 
                Federal Government.
            ``(5) Terms.--The loan shall--
                    ``(A) be made for a term not exceeding 30 years;
                    ``(B) bear interest (exclusive of the guarantee fee 
                under subsection (d) and service charges, if any) at a 
                rate agreed upon by the borrower and the lender and 
                determined by the Secretary to be reasonable, which may 
                not exceed the rate generally charged in the area (as 
                determined by the Secretary) for home mortgage loans 
                not guaranteed or insured by any agency or 
                instrumentality of the Federal Government;
                    ``(C) involve a principal obligation not 
                exceeding--
                            ``(i) an amount equal to the sum of--
                                    ``(I) 97 percent of $25,000 of the 
                                appraised value of the property, as of 
                                the date the loan is accepted for 
                                guarantee; and
                                    ``(II) 95 percent of such value in 
                                excess of $25,000; and
                            ``(ii) the amount approved by the Secretary 
                        under this section; and
                    ``(D) involve a payment on account of the 
                property--
                            ``(i) in cash or its equivalent; or
                            ``(ii) through the value of any 
                        improvements to the property made through the 
                        skilled or unskilled labor of the borrower;
                as the Secretary shall provide.
    ``(c) Certificate of Guarantee.--
            ``(1) Approval process.--The Secretary shall not approve 
        any loan for guarantee under this section until the lender 
        submits a completed application for the loan to the Secretary 
        for examination in accordance with this subsection. If the 
        Secretary approves the loan for guarantee, the Secretary shall 
        issue a certificate of guarantee in accordance with this 
        subsection.
            ``(2) Standard for approval.--The Secretary may approve a 
        loan for guarantee and issue a certificate of guarantee under 
        this subsection only if the Secretary determines there is a 
        reasonable prospect of repayment of the loan.
            ``(3) Effect.--A certificate of guarantee issued under this 
        subsection shall be conclusive evidence of the eligibility of 
        the loan for guarantee and the amount of such guarantee. Such 
        evidence shall be incontestable in the hands of the bearer and 
        the full faith and credit of the United States is pledged to 
        the payment of all amounts agreed to be paid by the Secretary 
        as security for such obligations.
            ``(4) Fraud and misrepresentation.--This subsection may not 
        be construed to preclude the Secretary from establishing 
        defenses against the original lender based on fraud or material 
        misrepresentation or to bar the Secretary from establishing by 
        regulations in effect on the date of issuance or disbursement, 
        whichever is earlier, partial defenses to the amount payable on 
        the guarantee.
    ``(d) Guarantee Fee.--The Secretary shall fix and collect a 
guarantee fee for the guarantee of loans under this section, which 
shall not exceed the amount equal to 1 percent of the principal 
obligation of the loan. The fee shall be paid by the lender at the time 
of issuance of the guarantee and shall be adequate, in the 
determination of the Secretary, to cover expenses and probable losses. 
The Secretary shall deposit any fees collected under this subsection in 
the Native Hawaiian Housing Loan Guarantee Fund established under 
subsection (i).
    ``(e) Liability Under Guarantee.--The liability under a guarantee 
provided under this section shall decrease or increase on a pro rata 
basis according to any decrease or increase in the amount of the unpaid 
obligation under the provisions of the loan agreement.
    ``(f) Transfer and Assumption.--Notwithstanding any other provision 
of law, any loan guaranteed under this section, including the security 
given for the loan, may be sold or assigned by the lender to any 
financial institution subject to examination and supervision by an 
agency of the Federal Government or of any State or the District of 
Columbia.
    ``(g) Disqualification of Lenders and Civil Money Penalties.--
            ``(1) In general.--If the Secretary determines that any 
        lender or holder of a guarantee certificate under subsection 
        (c) has failed to maintain adequate accounting records to 
        adequately service loans guaranteed under this section, to 
        exercise proper credit or underwriting judgment, or has engaged 
        in practices otherwise detrimental to the interest of a 
        borrower or the United States, the Secretary may--
                    ``(A) refuse, either temporarily or permanently, to 
                guarantee any additional loans made by such lender or 
                holder;
                    ``(B) bar such lender or holder from acquiring 
                additional loans guaranteed under this section; and
                    ``(C) require that such lender or holder assume not 
                less than 10 percent of any loss on additional loans 
                made or held by the lender or holder that are 
                guaranteed under this section.
            ``(2) Civil money penalties for intentional violations.--If 
        the Secretary determines that any lender or holder of a 
        guarantee certificate under this section has intentionally 
        failed to maintain adequate accounting records, to adequately 
        service loans guaranteed under this section, or to exercise 
        proper credit or underwriting judgment, the Secretary may 
        impose a civil money penalty on such lender or holder in the 
        manner and amount provided under section 536 of the National 
        Housing Act with respect to mortgagees and lenders under such 
        Act.
            ``(3) Payment on loans made in good faith.--Notwithstanding 
        paragraphs (1) and (2), the Secretary may not refuse to pay 
        pursuant to a valid guarantee on loans of a lender or holder 
        barred under this subsection if the loans were previously made 
        in good faith.
    ``(h) Payment Under Guarantee.--
            ``(1) Lender options.--
                    ``(A) In general.--In the event of default by the 
                borrower on a loan guarantee under this section, the 
                holder of the guarantee certificate shall provide 
                written notice of the default to the Secretary. Upon 
                providing such notice, the holder of the guarantee 
                certificate shall be entitled to payment under the 
                guarantee (subject to the provisions of this section) 
                and may proceed to obtain payment in one of the 
                following manners:
                            ``(i) Foreclosure.--The holder of the 
                        certificate may initiate foreclosure 
                        proceedings in a court of competent 
                        jurisdiction (after providing written notice of 
                        such action to the Secretary) and upon a final 
                        order by the court authorizing foreclosure and 
                        submission to the Secretary of a claim for 
                        payment under the guarantee, the Secretary 
                        shall pay to the holder of the certificate the 
                        pro rata portion of the amount guaranteed (as 
                        determined in accordance with subsection (e)) 
                        plus reasonable fees and expenses as approved 
                        by the Secretary. The Secretary shall be 
                        subrogated to the rights of the holder of the 
                        guarantee and the holder shall assign the 
                        obligation and security to the Secretary.
                            ``(ii) No foreclosure.--Without seeking a 
                        judicial foreclosure (or in any case in which a 
                        foreclosure proceeding initiated under clause 
                        (i) continues for a period in excess of 1 
                        year), the holder of the guarantee may submit 
                        to the Secretary a claim for payment under the 
                        guarantee and the Secretary shall only pay to 
                        such holder for a loss on any single loan an 
                        amount equal to 90 percent of the pro rata 
                        portion of the amount guaranteed (as determined 
                        in accordance with subsection (e)). The 
                        Secretary shall be subrogated to the rights of 
                        the holder of the guarantee and the holder 
                        shall assign the obligation and security to the 
                        Secretary.
                    ``(B) Requirements.--Before any payment under a 
                guarantee is made under subparagraph (A), the holder of 
                the guarantee shall exhaust all reasonable 
                possibilities of collection. Upon payment, in whole or 
                in part, to the holder, the note or judgment evidencing 
                the debt shall be assigned to the United States and the 
                holder shall have no further claim against the borrower 
                or the United States. The Secretary shall then take 
                such action to collect as the Secretary determines 
                appropriate.
            ``(2) Assignment by secretary.--Notwithstanding paragraph 
        (1), upon receiving notice of default on a loan guaranteed 
        under this section from the holder of the guarantee, the 
        Secretary may accept assignment of the loan if the Secretary 
        determines that the assignment is in the best interests of the 
        United States. Upon assignment the Secretary shall pay to the 
        holder of the guarantee the pro rata portion of the amount 
        guaranteed (as determined under subsection (e)). The Secretary 
        shall be subrogated to the rights of the holder of the 
        guarantee and the holder shall assign the obligation and 
        security to the Secretary.
            ``(3) Limitations on liquidation.--In the event of a 
        default by the borrower on a loan guaranteed under this section 
        involving a security interest in Hawaiian Home Lands or Native 
        Hawaiian lands, the Secretary shall only pursue liquidation 
        after offering to transfer the account to the Native Hawaiian 
        Housing Authority. If the Secretary subsequently proceeds to 
        liquidate the account, the Secretary shall not sell, transfer, 
        or otherwise dispose of or alienate the property except to the 
        Native Hawaiian Housing Authority.
    ``(i) Native Hawaiian Housing Loan Guarantee Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States the Native Hawaiian Housing Loan Guarantee 
        Fund for the purpose of providing loan guarantees under this 
        section.
            ``(2) Credits.--The Guarantee Fund shall be credited with--
                    ``(A) any amounts, claims, notes, mortgages, 
                contracts, and property acquired by the Secretary under 
                this section, and any collections and proceeds 
                therefrom;
                    ``(B) any amounts appropriated under paragraph (7);
                    ``(C) any guarantee fees collected under subsection 
                (d); and
                    ``(D) any interest or earnings on amounts invested 
                under paragraph (4).
            ``(3) Use.--Amounts in the Guarantee Fund shall be 
        available, to the extent provided in appropriation Acts, for--
                    ``(A) fulfilling any obligations of the Secretary 
                with respect to loans guaranteed under this section, 
                including the costs (as such term is defined in section 
                502 of the Congressional Budget Act of 1974) of such 
                loans;
                    ``(B) paying taxes, insurance, prior liens, 
                expenses necessary to make fiscal adjustment in 
                connection with the application and transmittal of 
                collections, and other expenses and advances to protect 
                the Secretary for loans which are guaranteed under this 
                section or held by the Secretary;
                    ``(C) acquiring such security property at 
                foreclosure sales or otherwise;
                    ``(D) paying administrative expenses in connection 
                with this section; and
                    ``(E) reasonable and necessary costs of 
                rehabilitation and repair to properties that the 
                Secretary holds or owns pursuant to this section.
            ``(4) Investment.--Any amounts in the Guarantee Fund 
        determined by the Secretary to be in excess of amounts 
        currently required to carry out this section may be invested in 
        obligations of the United States.
            ``(5) Limitation on commitments to guarantee loans and 
        mortgages.--
                    ``(A) Requirement of appropriations.--The authority 
                of the Secretary to enter into commitments to guarantee 
                loans under this section shall be effective for any 
                fiscal year only to the extent or in such amounts as 
                are or have been provided in appropriation Acts for 
                such fiscal year.
                    ``(B) Limitations on costs of guarantees.--The 
                authority of the Secretary to enter into commitments to 
                guarantee loans under this section shall be effective 
                for any fiscal year only to the extent that amounts in 
                the Guarantee Fund are or have been made available in 
                appropriation Acts to cover the costs (as such term is 
                defined in section 502 of the Congressional Budget Act 
                of 1974) of such loan guarantees for such fiscal year.
                    ``(C) Limitation on outstanding aggregate principal 
                amount.--Subject to the limitations in subparagraphs 
                (A) and (B), the Secretary may enter into commitments 
                to guarantee loans under this section in each of fiscal 
                years 1993 and 1994 with an aggregate outstanding 
                principal amount not exceeding such amount as may be 
                provided in appropriation Acts for each such year.
            ``(6) Liabilities.--All liabilities and obligations of the 
        assets credited to the Guarantee Fund under paragraph (2)(A) 
        shall be liabilities and obligations of the Guarantee Fund.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund such sums 
        as may be necessary to carry out this section.
    ``(j) Requirements for Standard Housing.--The Secretary shall, by 
regulation, establish housing safety and quality standards for use 
under this section. Such standards shall provide sufficient flexibility 
to permit the use of various designs and materials in housing acquired 
with loans guaranteed under this section. The standards shall require 
each dwelling unit in any housing so acquired to--
            ``(1) be decent, safe, sanitary, and modest in size and 
        design; and
            ``(2) conform with minimum standards established under any 
        applicable county, State, or national building code.
    ``(k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Family.--The term `family' means one or more persons 
        maintaining a household, as the Secretary shall by regulation 
        provide.
            ``(2) Guarantee fund.--The term `Guarantee Fund' means the 
        Native Hawaiian Housing Loan Guarantee Fund established under 
        subsection (i).
            ``(3) Hawaiian home lands.--The term `Hawaiian Home Lands' 
        means those lands set aside for homesteading by Native 
        Hawaiians under the Hawaiian Homes Commission Act, 1920.
            ``(4) Native hawaiian.--The term `Native Hawaiian' means 
        any individual who is a descendant of the aboriginal people 
        who, prior to 1778, occupied and exercised sovereignty in the 
        area that now constitutes the State of Hawaii, as evidenced 
        by--
                    ``(A) genealogical records;
                    ``(B) Kupuna (elders) or Kama'aina (long-term 
                community residents) verification; or
                    ``(C) certified birth records.
            ``(5) Native hawaiian housing authority.--The term `Native 
        Hawaiian Housing Authority' means any public body (or agency or 
        instrumentality thereof) established under the laws of the 
        State of Hawaii, that is authorized to engage in or assist in 
        the development or operation of low-income housing for Native 
        Hawaiians.
            ``(6) Native hawaiian lands.--The term `Native Hawaiian 
        lands' means the area within which a Native Hawaiian Housing 
        Authority is authorized to provide low-income housing.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(8) Standard housing.--The term `standard housing' means 
        a dwelling unit or housing that complies with the requirements 
        established under subsection (j).''.

                 TITLE II--HOME INVESTMENT PARTNERSHIPS

SEC. 201. NATIVE HAWAIIAN ELIGIBILITY FOR THE HOME PROGRAM.

    Section 217(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12747(a)) is amended--
            (1) in paragraph (1), by inserting ``, and after reserving 
        amounts under paragraph (4) for Native Hawaiian Housing 
        Authorities'' after ``insular areas,''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Native hawaiian allocation.--
                    ``(A) In general.--For each fiscal year, of the 
                amount approved in an appropriations Act to carry out 
                this title, the Secretary shall reserve for grants to 
                Native Hawaiian Housing Authorities 0.2 percent of the 
                amount appropriated under such section.
                    ``(B) Definition.--As used in this section, the 
                term `Native Hawaiian Housing Authority' has the same 
                meaning as in section 402 of the United States Housing 
                Act of 1937.''.

             TITLE III--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 301. NATIVE HAWAIIAN ELIGIBILITY FOR CDBG.

    Section 109(d) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5309(d)) is amended by inserting ``or to a Native Hawaiian 
Housing Authority'' before the period.

SEC. 302. NATIVE HAWAIIAN ALLOCATION.

    Section 106(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5306(a)) is amended--
            (1) in paragraph (1), in the first sentence, by inserting 
        ``, and shall reserve for grants to a Native Hawaiian Housing 
        Authority 0.2 percent of the amount appropriated under such 
        section'' before the period; and
            (2) in paragraph (2), by inserting ``and a Native Hawaiian 
        Housing Authority'' after ``Indian tribes''.

SEC. 303. DEFINITIONS.

    Section 102(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5302(a)) is amended by adding at the end the following new 
paragraph:
            ``(24) The terms `Hawaiian Home Lands' and `Native Hawaiian 
        Housing Authority' have the same meanings as in section 402 of 
        the United States Housing Act of 1937.''.

                      TITLE IV--HOUSING STANDARDS

SEC. 401. HOUSING SUBDIVISION DEVELOPMENT.

    The Secretary may, in the discretion of the Secretary, exempt 
housing developed by a Native Hawaiian Housing Authority from building 
codes and standards related to the development and construction of 
subdivisions.

SEC. 402. DEMONSTRATION PROJECT TO DEVELOP LOCALIZED HOUSING STANDARDS 
              FOR NATIVE HAWAIIAN COMMUNITIES.

    The Secretary shall award a grant to a Native Hawaiian Housing 
Authority for the purpose of establishing a demonstration project to 
develop localized housing standards for Native Hawaiian communities, 
including the consideration of modifications to the National Building 
Code and other applicable codes and standards. The purpose of the 
demonstration project shall be to develop housing standards reflective 
of Native Hawaiian community needs while simultaneously ensuring the 
availability of and access to private, State, and federally assisted 
housing, finance, mortgage, and insurance programs.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Native hawaiian housing authority.--The term ``Native 
        Hawaiian Housing Authority'' means any public body (or agency 
        or instrumentality thereof) established under the laws of the 
        State of Hawaii, that is authorized to engage in or assist in 
        the development or operation of low-income housing for Native 
        Hawaiians.
            (2) Native hawaiian.--The term ``Native Hawaiian'' means 
        any individual who is a descendant of the aboriginal people 
        who, prior to 1778, occupied and exercised sovereignty in the 
        area that now constitutes the State of Hawaii, as evidenced 
        by--
                    (A) genealogical records;
                    (B) Kupuna (elders) or Kama'aina (long-term 
                community residents) verification; or
                    (C) certified birth records.
            (3) Hawaiian home lands.--The term ``Hawaiian Home Lands'' 
        means those lands set aside for homesteading by Native 
        Hawaiians under the Hawaiian Homes Commission Act, 1920.

SEC. 502. LEGAL OBLIGATIONS OF THE UNITED STATES.

    Nothing in this Act shall be construed to diminish or expand the 
legal obligations of the United States toward the beneficiaries of the 
Hawaiian Homes Commission Act, 1920, or the Act entitled ``An Act to 
provide for the admission of the State of Hawaii into the Union'', 
approved March 18, 1959 (73 Stat. 4).

SEC. 503. SEVERABILITY.

    If any provision of this Act, or the application or any provision 
of this Act to any person or circumstance, is held invalid, the 
application of each provision or circumstance and the remainder of this 
Act shall not be affected thereby.

SEC. 504. REGULATIONS.

    (a) Issuance.--Except as otherwise provided in this title, the 
Secretary shall issue such regulations as may be necessary to carry out 
this title.
    (b) Consultation.--In formulating proposed regulations under this 
section, the Secretary shall consult with the Department of Hawaiian 
Homelands and a Native Hawaiian Housing Authority.
    (c) Effective Date.--The regulations issued under this section 
shall become effective not later than 18 months after the date of 
enactment of this Act.

SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this Act.

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