[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2663 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2663

    To provide technical corrections to the Native American Housing 
Assistance and Self-Determination Act of 1996, to improve the delivery 
of housing assistance to Indian tribes in a manner that recognizes the 
        right of tribal self-governance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 9, 1997

 Mr. Metcalf introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
    To provide technical corrections to the Native American Housing 
Assistance and Self-Determination Act of 1996, to improve the delivery 
of housing assistance to Indian tribes in a manner that recognizes the 
        right of tribal self-governance, and for other purposes.

    Be it enacted by the Senate and House of 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 American 
Housing Assistance and Self-Determination Act Amendments of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on waiver authority.
Sec. 3. Organizational capacity; assistance to families that are not 
                            low-income.
Sec. 4. Elimination of waiver authority for small tribes.
Sec. 5. Expanded authority to review Indian housing plans.
Sec. 6. Inclusion of homebuyer selection policies and criteria.
Sec. 7. Oversight.
Sec. 8. Allocation formula.
Sec. 9. Hearing requirement.
Sec. 10. Performance agreements.
Sec. 11. Public availability of Indian housing plans.
Sec. 12. Technical and conforming amendments.

SEC. 2. RESTRICTION ON WAIVER AUTHORITY.

    Section 101(b)(2) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4111(b)(2)) is amended by 
striking ``if the Secretary'' and all that follows before the period at 
the end and inserting the following: ``for a period of not more than 90 
days, if the Secretary determines that an Indian tribe has not complied 
with, or is unable to comply with, those requirements due to extreme 
circumstances beyond the control of the Indian tribe''.

SEC. 3. ORGANIZATIONAL CAPACITY; ASSISTANCE TO FAMILIES THAT ARE NOT 
              LOW-INCOME.

    (a) Organizational Capacity.--Section 102(c)(4) of the Native 
American Housing Assistance and Self-Determination Act (25 U.S.C. 
4112(c)(4)) is amended--
            (1) by redesignating subparagraphs (A) through (K) as 
        subparagraphs (B) through (L), respectively; and
            (2) by inserting before subparagraph (B), as redesignated 
        by paragraph (1) of this subsection, the following:
                    ``(A) a description of the entity that is 
                responsible for carrying out the activities under the 
                plan, including a description of--
                            ``(i) the relevant personnel of the entity; 
                        and
                            ``(ii) the organizational capacity of the 
                        entity, including--
                                    ``(I) the management structure of 
                                the entity; and
                                    ``(II) the financial control 
                                mechanisms of the entity;''.
    (b) Assistance to Families That Are Not Low-Income.--Section 102(c) 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4112(c)) is amended by adding at the end the following:
            ``(6) Certain families.--With respect to assistance 
        provided by a recipient to Indian families that are not low-
        income families under section 201(b)(2), evidence that there is 
        a need for housing for each such family during that period that 
        cannot reasonably be met without such assistance.''.

SEC. 4. ELIMINATION OF WAIVER AUTHORITY FOR SMALL TRIBES.

    Section 102 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4112) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

SEC. 5. EXPANDED AUTHORITY TO REVIEW INDIAN HOUSING PLANS.

    Section 103(a)(1) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4113(a)(1)) is amended--
            (1) in the first sentence, by striking ``limited''; and
            (2) by striking the second sentence.

SEC. 6. INCLUSION OF HOMEBUYER SELECTION POLICIES AND CRITERIA.

    Section 207(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4137(b)) is amended--
            (1) by striking ``Tenant Selection.--'' and inserting 
        ``Tenant and Homebuyer Selec- tion.--'';
            (2) in the matter preceding paragraph (1), by inserting 
        ``and homebuyer'' after ``tenant''; and
            (3) in paragraph (3)(A), by inserting ``and homebuyers'' 
        after ``tenants''.

SEC. 7. OVERSIGHT.

    (a) Repayment.--Section 209 of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139) is 
amended to read as follows:

``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.

    ``If a recipient uses grant amounts to provide affordable housing 
under this title, and at any time during the useful life of the housing 
such recipient does not comply with the requirement under section 
205(a)(2), the Secretary shall take appropriate action under section 
401(a).''.
    (b) Audits and Reviews.--Section 405 of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 1465) is 
amended to read as follows:

``SEC. 405. REVIEW AND AUDIT BY SECRETARY.

    ``(a) Requirements Under Chapter 75 of Title 31, United States 
Code.--
            ``(1) In general.--An entity designated by an Indian tribe 
        as a housing entity shall be treated, for purposes of chapter 
        75 of title 31, United States Code, as a non-Federal entity 
        that is subject to the audit requirements that apply to non-
        Federal entities under that chapter.
            ``(2) Payment of costs.--
                    ``(A) In general.--The Secretary may arrange and 
                pay for any audit required under paragraph (1).
                    ``(B) Withholding of amounts.--If the Secretary 
                pays for an audit under subparagraph (A), the Secretary 
                may withhold, from the assistance otherwise payable 
                under this Act, an amount sufficient to pay for the 
                reasonable costs of conducting an audit that meets the 
                applicable requirements of chapter 75 of title 31, 
                United States Code, including, if appropriate, the 
                reasonable costs of accounting services necessary to 
                ensure that the books and records of the entity 
                referred to in paragraph (1) are in such condition as 
                is necessary to carry out the audit.
    ``(b) Additional Reviews and Audits.--
            ``(1) In general.--In addition to any audit under 
        subsection (a)(1), to the extent the Secretary determines such 
        action to be appropriate, the Secretary may conduct an audit of 
        a recipient in order to--
                    ``(A) determine whether the recipient--
                            ``(i) has carried out--
                                    ``(I) eligible activities in a 
                                timely manner; and
                                    ``(II) eligible activities and 
                                certification in accordance with this 
                                Act and other applicable law;
                            ``(ii) has a continuing capacity to carry 
                        out eligible activities in a timely manner; and
                            ``(iii) is in compliance with the Indian 
                        housing plan of the recipient; and
                    ``(B) verify the accuracy of information contained 
                in any performance report submitted by the recipient 
                under section 404.
            ``(2) Onsite visits.--To the extent practicable, the 
        reviews and audits conducted under this subsection shall 
        include onsite visits by the appropriate official of the 
        Department of Housing and Urban Development.
            ``(3) Cost of additional audits.--Additional audits and 
        reviews conducted under this subsection shall be paid for by 
        the Secretary.
    ``(c) Review of Reports.--
            ``(1) In general.--The Secretary shall provide each 
        recipient that is the subject of a report made by the Secretary 
        under this section notice that the recipient may review and 
        comment on the report during a period of not less than 30 days 
        after the date on which notice is issued under this paragraph.
            ``(2) Public availability.--After taking into consideration 
        any comments of the recipient under paragraph (1), the 
        Secretary--
                    ``(A) may revise the report; and
                    ``(B) not later than 30 days after the date on 
                which those comments are received, shall make the 
                comments and the report (with any revisions made under 
                subparagraph (A)) readily available to the public.
    ``(d) Effect of Reviews.--Subject to section 401(a), after 
reviewing the reports and audits relating to a recipient that are 
submitted to the Secretary under this section, the Secretary may adjust 
the amount of a grant made to a recipient under this Act in accordance 
with the findings of the Secretary with respect to those reports and 
audits.''.

SEC. 8. ALLOCATION FORMULA.

    Section 302(d) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4152(d)) is amended by adding at 
the end the following:
            ``(3) Adjustment to allocation formula.--If any housing 
        authority received no modernization funding and partial or no 
        operating assistance during fiscal year 1996, the allocation 
        formula under paragraphs (1) and (2) shall be adjusted to 
        provide funding to allow such housing authorities to operate 
        properly.''.

SEC. 9. HEARING REQUIREMENT.

    Section 401(a) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4161(a)) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and indenting each 
        such subparagraph 2 ems to the right;
            (2) by striking ``Except as provided'' and inserting the 
        following:
            ``(1) In general.--Except as provided'';
            (3) by amending subparagraph (B), as redesignated by 
        paragraph (1) of this subsection, to read as follows:
                    ``(B) reduce payments under this Act to the 
                recipient by an amount equal to the sum of the amount 
                of such payments that were not expended in accordance 
                with this Act and the cost of additional audits and 
                reviews requested by and paid for by the Secretary.'';
            (4) by striking ``If the Secretary takes an action under 
        paragraph (1), (2), or (3)'' and inserting the following:
            ``(2) Continuance of actions.--If the Secretary takes an 
        action under subparagraph (A), (B), or (C) of paragraph (1)''; 
        and
            (5) by adding at the end the following:
            ``(3) Exception for certain actions.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, if the Secretary makes a 
                determination that the failure of a recipient of 
                assistance under this Act to comply with any provision 
                of this Act is resulting, and would continue to result, 
                in an expenditure of Federal funds in a manner that is 
                not authorized by law, the Secretary may take an action 
                described in paragraph (1)(C) before conducting a 
                hearing.
                    ``(B) Procedural requirement.--If the Secretary 
                takes an action described in subparagraph (A), the 
                Secretary shall--
                            ``(i) provide notice to the recipient at 
                        the time that the Secretary takes that action; 
                        and
                            ``(ii) conduct a hearing not later than 60 
                        days after the date on which the Secretary 
                        provides notice under clause (i).
                    ``(C) Determination.--Upon completion of a hearing 
                under this paragraph, the Secretary shall make a 
                determination regarding whether to continue taking the 
                action that is the subject of the hearing, or take 
                another action under this subsection.''.

SEC. 10. PERFORMANCE AGREEMENTS.

    Section 401(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4162(b)) is amended to read as 
follows:
    ``(b) Performance Agreements in Cases of Noncompliance due to 
Technical Incapacity.--
            ``(1) In general.--If the Secretary find, pursuant to 
        subsection (a), that a recipient has failed to comply 
        substantially with this Act, the Secretary may provide 
        technical assistance for that recipient (directly or 
        indirectly) that is designed to increase the capability and 
        capacity of the recipient to administer assistance in 
        compliance with this Act.
            ``(2) Conditions for assistance.--The Secretary may provide 
        assistance under paragraph (1) only if--
                    ``(A) the failure to comply is not a practice or 
                pattern of activities constituting willful 
                noncompliance;
                    ``(B) the failure to comply is a result of the 
                limited capability or capacity of the recipient; and
                    ``(C) the recipient enters into a performance 
                agreement with the Secretary that specifies the 
                compliance objectives the recipient will be required to 
                achieve not later than 1 year after the commencement of 
                the performance agreement.
            ``(3) Time period for assistance.--If a recipient enters 
        into a performance agreement under paragraph (2) and is unable, 
        despite good faith efforts, to achieve the compliance objective 
        of that performance agreement within 1 year after the 
        commencement of the performance agreement, the Secretary may 
        enter into a new performance agreement with that recipient. The 
Secretary shall not enter into more than 3 consecutive performance 
agreements with a recipient.
            ``(4) Continued failure to comply.--If, after 3 consecutive 
        performance agreements, a recipient has failed to meet 
        applicable compliance objectives, the Secretary shall determine 
        the recipient to have failed to comply substantially with this 
        Act and the recipient shall be subject to an action under 
        subsection (a).''.

SEC. 11. PUBLIC AVAILABILITY OF INDIAN HOUSING PLANS.

    Title IV of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4161 et seq.) is amended by adding 
at the end the following:

``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

    ``Each recipient shall make available to the general public any 
housing plan, policy, waiting list, or annual report prepared by the 
recipient.''.

SEC. 12. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Table of Contents.--Section 1(b) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 note) is 
amended in the table of contents--
            (1) by striking the item relating to section 206;
            (2) by striking the item relating to section 209 and 
        inserting the following:

``209. Noncompliance with affordable housing requirement.'';
        and
            (3) by inserting after the item relating to section 407 the 
        following:

``408. Public availability of information.''.
    (b) Definition of Indian Areas.--Section 4(10) of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103(10)) is amended by inserting ``an Indian tribe or'' after 
``within which''.
    (c) Cross-Reference.--Section 4(12)(C)(i)(II) of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103(12)(C)(i)(II)) is amended by striking ``section 107'' and 
inserting ``section 108''.
    (d) Elimination of Tax Exemption.--Section 101 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4111) is amended--
            (1) by striking subsections (c), (d) and (e); and
            (2) by inserting the following after subsection (b):
    ``(c) Tax Exemption Permitted.--Housing owned and operated by the 
recipient and developed under a contract between the Secretary and an 
Indian Housing Authority pursuant to the United States Housing Act of 
1937 may be tax-exempt and subject to a payment in lieu of taxes 
pursuant to or as recited by a cooperation agreement between the 
recipient and the local governing body. Unless abrogated, changed, or 
modified with the consent of the housing authority or any successor, 
existing cooperation agreements shall remain in full force and effect 
for so long as the beneficial title to such a project is held by the 
housing authority or any successor.
    ``(d) Fee in Lieu of Tax Required.--If one or more local governing 
bodies are providing services to housing assisted under this Act and, 
because of Federal, tribal, or State law, or the restricted nature or 
trust status of the land, the property is exempt from real property 
taxes, personal property taxes, or special assessment a recipient may 
not request and the Secretary shall not provide a block grant under 
this Act unless a user fee is paid to the local governing body or 
bodies, as compensation for nonfee services normally provided by that 
entity to offset its costs or unless receipt of such user fees is 
waived by a local governing body. The amount of the user fee shall be 
determined by the recipient and the local governing body, but it must 
be based on the reasonable value of the services provided by the local 
governing body or bodies.
    ``(e) Requirements Related to Fee.--Notwithstanding subsection 
(d)--
            ``(1) total user fee payments to all local governing bodies 
        for a single housing unit shall be reasonable and comparable as 
        determined by the Secretary using local factors;
            ``(2) any projects placed under a new or existing 
        cooperation agreement that requires a payment in lieu of taxes 
        shall be exempt from the requirements of subsection (c);
            ``(3) user fee payments shall be required for all units;
            ``(4) housing whose total assistance under this Act is less 
        than $10,000 shall be exempt from the requirements of 
        subsection (c); and
            ``(5) all housing shall be exempt from the requirements of 
        subsection (c) if such housing is owned by the occupant at the 
        inception of the assistance or if conveyance of the beneficial 
        title is subsequently made to the occupant.''.
    (e) Submission of Indian Housing Plan.--Section 102(a) of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4112(a)) is amended--
            (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
            (2) in paragraph (1)(A), as so designated by paragraph (1) 
        of this subsection, by adding ``or'' at the end;
            (3) by striking ``(2)'' and inserting ``(B)''; and
            (4) by striking ``(3)'' and inserting ``(2)''.
    (f) Clarification.--Section 103(c)(3) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4113(c)(3)) is amended by inserting ``not'' before ``prohibited''.
    (g) Applicability of Provisions of Civil Rights.--Section 201(b)(5) 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4131(b)(5)) is amended--
            (1) by inserting ``federally recognized'' before ``Indian 
        tribes''; and
            (2) by striking ``under this subsection'' and inserting 
        ``under this Act''.
    (h) Eligible Affordable Housing Activities.--Section 202(2) of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4132(2)) is amended by inserting ``modest'' before 
``affordable housing''.
    (i) Eligibility.--Section 205(a)(1) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4135(a)(1)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end; 
        and
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) in the case of housing for homeownership, is 
                made available only for a family that is a low-income 
                family;
                    ``(C) in the case of a lease-purchase agreement, is 
                made available at the time that the agreement for that 
                lease-purchase is signed; and
                    ``(D) in the case of a contract to purchase housing 
                to be acquired or constructed, is made available at the 
                time the contract for that housing is entered into.''.
    (j) Certification of Compliance With Subsidy Layering 
Requirements.--Section 206 of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4136) is repealed.
    (k) Tenant Selection.--Section 207(b)(3)(B) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4137(b)(3)(B)) is amended by striking ``the grounds for any rejection'' 
and inserting ``such rejection and the grounds for the rejection''.
    (l) Availability of Records.--Section 208 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4138) 
is amended--
            (1) in subsection (a), by striking ``paragraph (2)'' and 
        inserting ``subsection (b)''; and
            (2) in subsection (b), by striking ``paragraph (1)'' an 
        inserting ``subsection (a)''.
    (m) IHP Requirement.--Section 184(b)(2) of the Housing and 
Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) is 
amended by striking ``that is under the jurisdiction of an Indian 
tribe'' and all that follows before the period at the end.
    (n) Authorization of Appropriations.--Section 184(i)(5)(C) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
13a(i)(5)(C)) is amended by striking ``note'' and inserting ``not''.
    (o) Non-Federal Funds.--Section 520(l)(5)(B) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 11903a(l)(5)(B)) is 
amended by striking ``and Indian housing authorities''.
    (p) Ineligibility of Indian Tribes.--Section 460 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12899h-1) is 
amended by striking ``fiscal year 1997'' and inserting ``fiscal year 
1998''.
    (q) Terminations.--Section 502(a) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181(a)) is 
amended by adding at the end the following: ``Any housing that is the 
subject of a contract for tenant-based assistance between the Secretary 
and an Indian housing authority that is terminated under this section 
shall, for the following fiscal year and each fiscal year thereafter, 
be considered to be a dwelling unit under section 302(b)(1).''.
    (r) Amendments to the Public and Assisted Housing Drug Elimination 
Act of 1990.--The Public and Assisted Housing Drug Elimination Act of 
1990 (42 U.S.C. 11901 et seq.) is amended--
            (1) in section 5123 by inserting ``Indian tribes,'' before 
        ``and private'';
            (2) in section 5124 (a)(7) by inserting ``, an Indian 
        tribe,'' before ``or tribally designated'';
            (3) in section 5125 by inserting ``an Indian tribe,'' 
        before ``or tribally designated''; and
            (4) by adding at the end the following new paragraph:
            ``(6) Indian tribe.--The term `Indian tribe' has the 
        meaning given that term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996.''.
                                 <all>