[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3899 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3899

             To expand homeownership in the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 1998

Mr. Lazio of New York (for himself, Mr. Leach, Mr. Baker, Mr. Campbell, 
 Mrs. Kelly, Mr. Ney, Mr. Fox of Pennsylvania, Mr. Redmond, Mr. Ryun, 
Mr. Shays, Mr. Nussle, and Mr. Metcalf) introduced the following bill; 
 which was referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
             To expand homeownership in the United States.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American 
Homeownership Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Findings and purpose.
           TITLE I--REMOVAL OF BARRIERS TO AFFORDABLE HOUSING

Sec. 101. Short title.
Sec. 102. Housing impact analysis.
Sec. 103. Grants for regulatory barrier removal strategies.
Sec. 104. Eligibility for community development block grants.
Sec. 105. Regulatory barriers clearinghouse.
 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

Sec. 201. Adjustable rate mortgages.
Sec. 202. Home equity conversion mortgages.
Sec. 203. Inspections under single family housing mortgage insurance 
                            program.
Sec. 204. Definition of area.
Sec. 205. Rural housing guaranteed loans.
         TITLE III--ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS

Sec. 301. Extended period of use of funds.
Sec. 302. Authorization of appropriations.
                TITLE IV--SECTION 8 HOMEOWNERSHIP OPTION

Sec. 401. Program flexibility.
Sec. 402. Downpayment assistance.
             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 501. Reauthorization.
Sec. 502. Income eligibility to facilitate homeownership in high cost 
                            areas.
Sec. 503. Eligibility of limited equity cooperatives and mutual housing 
                            associations.
Sec. 504. Leveraging affordable housing investment through local loan 
                            pools.
Sec. 505. Loan guarantees.
               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.
Sec. 602. Income eligibility under CDBG to facilitate homeownership in 
                            high-cost areas.
Sec. 603. Homeownership zones.
Sec. 604. Lease-to-own.
Sec. 605. Housing counseling.
Sec. 606. Local capacity building.
              TITLE VII--MANUFACTURED HOUSING IMPROVEMENT

Sec. 701. Short title and references.
Sec. 702. Findings and purposes.
Sec. 703. Definitions.
Sec. 704. Federal manufactured home construction and safety standards.
Sec. 705. Abolishment of National Manufactured Home Advisory Council.
Sec. 706. Public information.
Sec. 707. Fees.
Sec. 708. Elimination of annual report requirement.
Sec. 709. Effective date.
Sec. 710. Savings provision.
                TITLE VIII--INDIAN HOUSING HOMEOWNERSHIP

Sec. 801. Indian Lands Status Commission.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the priorities of our Nation should include expanding 
        homeownership opportunities by providing access to affordable 
        housing that is safe, clean, and healthy;
            (2) our Nation has an abundance of conventional capital 
        sources available for homeownership financing; and
            (3) experience with local homeownership programs has shown 
        that if flexible capital sources are available, communities 
        possess ample will and creativity to provide opportunities 
        uniquely designed to assist their citizens in realizing the 
        American dream of homeownership.
    (b) Purpose.--It is the purpose of this Act--
            (1) to encourage and facilitate homeownership by families 
        in the United States who are not otherwise able to afford 
        homeownership; and
            (2) to expand homeownership through policies that--
                    (A) promote the ability of the private sector to 
                produce affordable housing without excessive government 
                regulation;
                    (B) encourage tax incentives, such as the mortgage 
                interest deduction, at all levels of government; and
                    (C) facilitate the availability of flexible capital 
                for homeownership opportunities.

           TITLE I--REMOVAL OF BARRIERS TO AFFORDABLE HOUSING

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Affordable Housing Barrier Removal 
Act of 1998''.

SEC. 102. HOUSING IMPACT ANALYSIS.

    (a) Applicability.--The requirements of this section shall apply 
with respect to--
            (1) any proposed rule, unless the head of the agency 
        promulgating the rule--
                    (A) has certified that the proposed rule will not, 
                if given force or effect as a final rule, have a 
                significant deleterious impact on the availability of 
                affordable housing; and
                    (B) has caused such certification to be published 
                in the Federal Register at the time of publication of 
                general notice of proposed rulemaking for the rule, 
                together with a statement providing the factual basis 
for the certification; and
            (2) any final rule, unless the head of the agency 
        promulgating the rule--
                    (A) has certified that the rule will not, if given 
                force or effect, have a significant deleterious impact 
                on the availability of affordable housing; and
                    (B) has caused such certification to be published 
                in the Federal Register at the time of publication of 
                the final rule, together with a statement providing the 
                factual basis for the certification.
Any agency making a certification under this subsection shall provide a 
copy of such certification and the statement providing the factual 
basis for the certification to the Secretary of Housing and Urban 
Development.
    (b) Statement of Proposed Rulemaking.--Whenever an agency publishes 
general notice of proposed rulemaking for any proposed rule, the agency 
shall--
            (1) in the notice of proposed rulemaking--
                    (A) state with particularity the text of the 
                proposed rule; and
                    (B) request any interested persons to submit to the 
                agency any written data, views, and arguments, and any 
                specific alternatives to the proposed rule that--
                            (i) accomplish the stated objectives of the 
                        applicable statutes;
                            (ii) result in costs to the Federal 
                        Government not more than 5 percent higher than 
                        such costs resulting from the proposed rule; 
                        and
                            (iii) result in a quantity of affordable 
                        housing that is 5 or more percent greater than 
                        the quantity resulting from the proposed rule;
            (2) provide an opportunity for interested persons to take 
        the actions specified under paragraph (1)(B) before 
        promulgation of the final rule; and
            (3) prepare and make available for public comment an 
        initial housing impact analysis in accordance with the 
        requirements of subsection (c).
    (c) Initial Housing Impact Analysis.--
            (1) Requirements.--Each initial housing impact analysis 
        shall describe the impact of the proposed rule on the 
        availability of affordable housing. The initial housing impact 
        analysis or a summary shall be published in the Federal 
        Register at the same time as, and together with, the 
        publication of general notice of proposed rulemaking for the 
        rule. The agency shall transmit a copy of the initial housing 
        impact analysis to the Secretary of Housing and Urban 
        Development.
            (2) Monthly hud listing.--On a monthly basis, the Secretary 
        of Housing and Urban Development shall cause to be published in 
        the Federal Register, and shall make available through a World 
        Wide Web site of the Department, a listing of all proposed 
        rules for which an initial housing impact analysis was prepared 
        during the preceding month.
            (3) Contents.--Each initial housing impact analysis 
        required under this subsection shall contain--
                    (A) a description of the reasons why action by the 
                agency is being considered;
                    (B) a succinct statement of the objectives of, and 
                legal basis for, the proposed rule;
                    (C) a description of and, where feasible, an 
                estimate of the extent to which the proposed rule would 
                impact the cost or supply of housing or land; and
                    (D) an identification, to the extent practicable, 
                of all relevant Federal rules which may duplicate, 
                overlap, or conflict with the proposed rule.
    (d) Proposal of Less Deleterious Alternative Rule.--
            (1) Analysis.--The agency publishing a general notice of 
        proposed rulemaking shall analyze any specific alternatives to 
the proposed rule which have been submitted to the agency pursuant to 
subsection (b)(2) to determine whether any alternative to the proposed 
rule--
                    (A) accomplishes the stated objectives of the 
                applicable statutes;
                    (B) results in costs to the Federal Government not 
                more than 5 percent higher than such costs resulting 
                from the proposed rule; and
                    (C) results in a quantity of affordable housing 
                that is 5 or more percent greater than the quantity 
                resulting from the proposed rule.
            (2) New notice of proposed rulemaking.--If the agency 
        determines that an alternative to the proposed rule meets the 
        requirements under subparagraphs (A) through (C) of paragraph 
        (1), the agency shall publish a general notice of proposed 
        rulemaking for a proposed rule that accomplishes the stated 
        objectives of the applicable statutes, the text of which is 
        based upon such alternative to the original proposed rule. In 
        any case in which the agency determines that more than one 
        alternative to the proposed rule meet such requirements, the 
        new proposed rule contained in the general notice of proposed 
        rulemaking shall be based upon the alternative that the agency 
        determines is most appropriate after considering the costs, 
        effects on affordable housing, and effectiveness in 
        accomplishing the objective of the rule, of each such 
        alternative. The rulemaking for the new proposed rule shall be 
        subject to the requirements under subsection (b).
    (e) Final Housing Impact Analysis.--
            (1) Requirement.--Whenever an agency promulgates a final 
        rule after publication of a general notice of proposed 
        rulemaking, the agency shall prepare a final housing impact 
        analysis.
            (2) Contents.--Each final housing impact analysis shall 
        contain--
                    (A) a succinct statement of the need for, and 
                objectives of, the rule;
                    (B) a summary of the significant issues raised 
                during the public comment period in response to the 
                initial housing impact analysis, a summary of the 
assessment of the agency of such issues, and a statement of any changes 
made in the proposed rule as a result of such comments; and
                    (C) a description of and an estimate of the extent 
                to which the rule will impact the availability of 
                affordable housing or an explanation of why no such 
                estimate is available.
            (3) Availability.--The agency shall make copies of the 
        final housing impact analysis available to members of the 
        public and shall publish in the Federal Register such analysis 
        or a summary thereof.
    (f) Avoidance of Duplicative or Unnecessary Analyses.--
            (1) Duplication.--Any Federal agency may perform the 
        analyses required by subsections (c) and (e) in conjunction 
        with or as a part of any other agenda or analysis required by 
        any other law if such other analysis satisfies the provisions 
        of such subsections.
            (2) Joinder.--In order to avoid duplicative action, an 
        agency may consider a series of closely related rules as one 
        rule for the purposes of subsections (c) and (e).
    (g) Preparation of Analyses.--In complying with the provisions of 
subsections (c) and (e), an agency may provide either a quantifiable or 
numerical description of the effects of a proposed rule or alternatives 
to the proposed rule, or more general descriptive statements if 
quantification is not practicable or reliable.
    (h) Effect on Other Law.--The requirements of subsections (c) and 
(e) do not alter in any manner standards otherwise applicable by law to 
agency action.
    (i) Procedure for Waiver or Delay of Completion.--
            (1) Initial housing impact analysis.--An agency head may 
        waive or delay the completion of some or all of the 
        requirements of subsection (c) by publishing in the Federal 
        Register, not later than the date of publication of the final 
        rule, a written finding, with reasons therefor, that the final 
        rule is being promulgated in response to an emergency that 
        makes compliance or timely compliance with the provisions of 
        subsection (a) impracticable.
            (2) Final housing impact analysis.--An agency head may not 
        waive the requirements of subsection (e). An agency head may 
        delay the completion of the requirements of subsection (e) for 
        a period of not more than 180 days after the date of 
        publication in the Federal Register of a final rule by 
        publishing in the Federal Register, not later than such date of 
        publication, a written finding, with reasons therefor, that the 
        final rule is being promulgated in response to an emergency 
        that makes timely compliance with the provisions of subsection 
        (e) impracticable. If the agency has not prepared a final 
housing impact analysis pursuant to subsection (e) within 180 days from 
the date of publication of the final rule, such rule shall lapse and 
have no force or effect. Such rule shall not be repromulgated until a 
final housing impact analysis has been completed by the agency.
    (j) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing that is affordable to families having incomes 
        that do not exceed 150 percent of the median income of families 
        in the area in which the housing is located, with adjustments 
        for smaller and larger families. For purposes of this 
        paragraph, area, median family income for an area, and 
        adjustments for family size shall be determined in the same 
        manner as such factors are determined for purposes of section 
        3(b)(2) of the United States Housing Act of 1937.
            (2) Agency.--The term ``agency'' means each authority of 
        the Government of the United States, whether or not it is 
        within or subject to review by another agency, but does not 
        include--
                    (A) the Congress;
                    (B) the courts of the United States;
                    (C) the governments of the territories or 
                possessions of the United States;
                    (D) the government of the District of Columbia;
                    (E) agencies composed of representatives of the 
                parties or of representatives of organizations of the 
                parties to the disputes determined by them;
                    (F) courts-martial and military commissions;
                    (G) military authority exercised in the field in 
                time of war or in occupied territory; or
                    (H) functions conferred by--
                            (i) sections 1738, 1739, 1743, and 1744 of 
                        title 12, United States Code;
                            (ii) chapter 2 of title 41, United States 
                        Code;
                            (iii) subchapter II of chapter 471 of title 
                        49, United States Code; or
                            (iv) sections 1884, 1891-1902, and former 
                        section 1641(b)(2), of title 50, appendix, 
                        United States Code.
            (3) Families.--The term ``families'' has the meaning given 
        such term in section 3 of the United States Housing Act of 
        1937.
            (4) Rule.--The term ``rule'' means any rule for which the 
        agency publishes a general notice of proposed rulemaking 
        pursuant to section 553(b) of title 5, United States Code, or 
        any other law, including any rule of general applicability 
        governing grants by an agency to State and local governments 
        for which the agency provides an opportunity for notice and 
        public comment; except that such term does not include a rule 
        of particular applicability relating to rates, wages, corporate 
        or financial structures or reorganizations thereof, prices, 
        facilities, appliances, services, or allowances therefor or to 
        valuations, costs or accounting, or practices relating to such 
        rates, wages, structures, prices, appliances, services, or 
        allowances.
            (5) Significant.--The term ``significant'' means, with 
        respect to an impact on the availability of affordable housing, 
        a difference in quantity of 5 percent or more.
    (k) Development.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall develop model initial and final housing impact analyses under 
this section and shall cause such model analyses to be published in the 
Federal Register. The model analyses shall be designed to provide 
examples to other agencies of how to carry out and develop the analyses 
required under subsections (a) and (c).

SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.

    (a) Authorization of Appropriations.--Subsection (a) of section 
1204 of the Housing and Community Development Act of 1992 (42 U.S.C. 
12705c(a)) is amended to read as follows:
    ``(a) Funding.--There is authorized to be appropriated for grants 
under subsections (b) and (c) $15,000,000 for fiscal year 1999 and each 
fiscal year thereafter through fiscal year 2003.''.
    (b) Application and Selection.--The last sentence of section 
1204(e) of the Housing and Community Development Act of 1992 (42 U.S.C. 
12705c(e)) is amended by inserting before the period at the end the 
following: ``and such criteria shall require that grant amounts be used 
in a manner consistent with the strategy contained in the comprehensive 
housing affordability strategy for the jurisdiction pursuant to section 
105(b)(4) of the Cranston-Gonzalez National Affordable Housing Act''.
    (c) Technical Amendments.--Section 107(a)(1) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(a)(1)) is amended--
            (1) in subparagraph (G), by inserting ``and'' after the 
        semicolon at the end;
            (2) by striking subparagraph (H); and
            (3) by redesignating subparagraph (I) as subparagraph (H).

SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT BLOCK GRANTS.

    Section 104(c)(1) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5304(c)(1)) is amended by inserting before the comma 
the following: ``, which shall include making a good faith effort to 
carry out the strategy established under section 105(b)(4) of such Act 
by the unit of general local government to remove barriers to 
affordable housing''.

SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

    Section 1205 of the Housing and Community Development Act of 1992 
(42 U.S.C. 12705d) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``receive, collect, process, and assemble'' 
                and inserting ``serve as a national repository to 
                receive, collect, process, assemble, and disseminate'';
                    (B) in paragraph (1)--
                            (i) by striking ``, including'' and 
                        inserting ``(including''; and
                            (ii) by inserting before the semicolon at 
                        the end the following: ``), and the prevalence 
                        and effects on affordable housing of such laws, 
                        regulations, and policies'';
                    (C) in paragraph (2), by inserting before the 
                semicolon the following: ``, including particularly 
                innovative or successful activities, strategies, and 
                plans''; and
                    (D) in paragraph (3), by inserting before the 
                period at the end the following: ``, including 
                particularly innovative or successful strategies, 
                activities, and plans'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) by making available through a World Wide Web site of 
        the Department, by electronic mail, or otherwise, provide to 
        each housing agency of a unit of general local government that 
        serves an area having a population greater than 100,000, an 
        index of all State and local strategies and plans submitted 
        under subsection (a) to the clearinghouse, which--
                    ``(A) shall describe the types of barriers to 
                affordable housing that the strategy or plan was 
                designed to ameliorate or remove; and
                    ``(B) shall, not later than 30 days after 
                submission to the clearinghouse of any new strategy or 
                plan, be updated to include the new strategy or plan 
                submitted.''; and
            (3) by adding at the end the following new subsections:
    ``(c) Organization.--The clearinghouse under this section shall be 
established within the Office of Policy Development of the Department 
of Housing and Urban Development and shall be under the direction of 
the Assistant Secretary for Policy Development and Research.
    ``(d) Timing.--The clearinghouse under this section (as amended by 
section 105 of the Affordable Housing Barrier Removal Act of 1998) 
shall be established and commence carrying out the functions of the 
clearinghouse under this section not later than 1 year after the date 
of the enactment of such Act. The Secretary of Housing and Urban 
Development may comply with the requirements under this section by 
reestablishing the clearinghouse that was originally established to 
comply with this section and updating and improving such clearinghouse 
to the extent necessary to comply with the requirements of this section 
as in effect pursuant to the enactment of such Act.''.

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

SEC. 201. ADJUSTABLE RATE MORTGAGES.

    Section 251(c) of the National Housing Act (12 U.S.C. 1715z-16(c)) 
is amended--
            (1) by striking ``(c) The'' and inserting ``(c)(1) Except 
        as provided in paragraph (2), the''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) The Secretary may, upon submitting to the Congress a 
written finding under subparagraph (B), insure under this section in 
the fiscal year for which the finding is submitted an aggregate number 
of mortgages and loans not exceeding 40 percent of the aggregate number 
of mortgages and loans insured by the Secretary under this title during 
the preceding fiscal year.
    ``(B) A finding under this subparagraph is a finding that the 
limitation under paragraph (1) on authority to insure mortgages and 
loans during a fiscal year will be reached before the end of that 
fiscal year and that an increase in such limitation is necessary to 
meet the demand for insurance under this section during the fiscal 
year.
    ``(C) Notwithstanding any other provision of this Act, the 
Secretary shall increase the mortgage insurance premiums otherwise 
chargeable under this Act for mortgages and loans insured pursuant to 
the authority under subparagraph (A) by the amount that the Secretary 
determines is necessary to cover any additional risk involved in 
providing such insurance.''.

SEC. 202. HOME EQUITY CONVERSION MORTGAGES.

    (a) Permanent Mortgage Insurance Authority.--Section 255(g) of the 
National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking the 
first 2 sentences.
    (b) Dollar Amount Limitation for Insurance Authority.--Section 
255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)), as amended 
by subsection (a), is amended by inserting before the first sentence 
the following new sentence: ``The aggregate principal balance of all 
mortgages insured under this section and outstanding at any one time 
shall not exceed $5,000,000,000.''.
    (c) Other Approaches to Consumer Education.--The Secretary of 
Housing and Urban Development shall consult with consumer groups, 
industry representatives, representatives of counseling organizations, 
and other interested parties to identify alternative approaches to 
providing consumer information required by section 255(f) of the 
National Housing Act that may be feasible and desirable for home equity 
conversion mortgages insured under such section 255 and other types of 
reverse mortgages. The Secretary may, in lieu of providing the consumer 
education required by such section 255(f), adopt alternative approaches 
to consumer education that may be developed as a result of such 
consultations, but only if the alternative approaches provide all of 
the information specified in section 255(f).
    (d) Funding for Counseling and Consumer Education and Outreach.--Of 
any amounts made available for any of fiscal years 1999 through 2003 
for housing counseling under section 106 of the Housing and Urban 
Development Act of 1968, up to a total of $1,000,000 shall be available 
to the Secretary in each such fiscal year, in such amounts as the 
Secretary determines appropriate, for the following purposes in 
connection with home equity conversion mortgages insured under section 
255 of the National Housing Act:
            (1) For housing counseling authorized by section 106 of the 
        Housing and Urban Development Act of 1968.
            (2) For transfer to the departmental salaries and expenses 
        account for consumer education and outreach activities.
    (e) Conforming Amendments.--Section 255 of the National Housing Act 
(12 U.S.C. 1715z-20) is amended--
            (1) in the section heading, by striking ``demonstration 
        program of'';
            (2) in subsections (a) and (i)(1) by striking 
        ``demonstration'' each place it appears;
            (3) in subsection (a)--
                    (A) in paragraph (1), by inserting ``and'' after 
                the semicolon at the end;
                    (B) in paragraph (2), by striking ``; and'' at the 
                end and inserting a period; and
                    (C) by striking paragraph (3); and
            (4) by striking subsection (k).
    (f) Disclosure Requirements and Prohibition of Funding of 
Unnecessary or Excessive Costs.--
            (1) In general.--Section 255(d) of the National Housing Act 
        (12 U.S.C. 1715z-20(d)) is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (D); and
                            (iii) by inserting after subparagraph (B) 
                        the following:
                    ``(C) has received full disclosure of all costs to 
                the mortgagor for obtaining the mortgage, including any 
                costs of estate planning, financial advice, or other 
                related services; and'';
                    (B) in paragraph (9)(F), by striking ``and'';
                    (C) in paragraph (10), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(11) have been made with such restrictions as the 
        Secretary determines to be appropriate to ensure that the 
        mortgagor does not fund any unnecessary or excessive costs for 
        obtaining the mortgage, including any costs of estate planning, 
        financial advice, or other related services.''.
            (2) Implementation.--
                    (A) Notice.--The Secretary of Housing and Urban 
                Development shall, by interim notice, implement the 
                amendments made by paragraph (1) in an expeditious 
                manner, as determined by the Secretary. Such notice 
                shall not be effective after the date of the 
                effectiveness of the final regulations issued under 
                subparagraph (B) of this paragraph.
                    (B) Regulations.--The Secretary shall, not later 
                than the expiration of the 90-day period beginning on 
                the date of the enactment of this Act, issue final 
                regulations to implement the amendments made by 
                paragraph (1). Such regulations shall be issued only 
                after notice and opportunity for public comment 
                pursuant to the provisions of section 553 of title 5, 
                United States Code (notwithstanding subsections (a)(2) 
                and (b)(3)(B) of such section).

SEC. 203. INSPECTIONS UNDER SINGLE FAMILY HOUSING MORTGAGE INSURANCE 
              PROGRAM.

    (a) Inspection Requirement.--Section 203 of the National Housing 
Act (12 U.S.C. 1709) is amended by inserting after subsection (k) the 
following new subsection:
    ``(l) Inspections and Repairs.--
            ``(1) In general.--The Secretary may not, under any 
        provision of this section, insure or enter into any commitment 
        to insure a mortgage covering a 1- to 4-family residence that 
        was constructed more than 1 year before the date of the 
        application for mortgage insurance unless the Secretary 
        determines that--
                    ``(A) the prospective mortgagor has obtained a 
                property inspection of the property that will be 
                subject to the mortgage, in accordance with paragraph 
                (2);
                    ``(B) the contract providing for sale or transfer 
                of the property created, on the part of the prospective 
                mortgagor, a unilateral right to rescind the contract 
                or condition the sale or offer upon the completion of 
                repairs to the property, for a period of not less than 
                72 hours beginning upon the completion of the 
                inspection; and
                    ``(C) the rights referred to in subparagraph (B) 
                were not waived, limited, or otherwise impaired in any 
                manner before the completion of the period referred to 
                in such subparagraph.
            ``(2) Property inspection.--A property inspection in 
        accordance with this subsection for a residence is an 
        inspection that--
                    ``(A) examines the condition of the physical 
                structure and systems of the residence, including any 
                heating, air conditioning, and interior plumbing 
                electrical systems, the roof, attic, visual insulation, 
                walls, ceilings, floors, windows, doors, foundation, 
                basement, and other visible structure;
                    ``(B) provides to the prospective mortgagor a 
                written report that describes the results of the 
                examination; and
                    ``(C) is conducted in accordance with the 
                guidelines established under paragraph (3) by an 
                inspector who is selected by the prospective mortgagor 
                from among inspectors certified in accordance with such 
                guidelines as qualified to conduct such inspections.
            ``(3) Guidelines.--The Secretary shall issue guidelines 
        providing for conducting of inspections under this subsection, 
        which shall provide--
                    ``(A) that inspections shall be performed in 
                accordance with the Standards of Practice and Code of 
                Ethics of the American Society of Home Inspectors or 
                such other generally accepted standards for home 
                inspections that the Secretary determines provide 
                equivalent or greater assurance to the homebuyer that 
                the inspections will be performed thoroughly and 
                impartially; and
                    ``(B) for the Secretary to certify inspectors as 
                qualified to conduct inspections under this subsection 
                based upon demonstrated competence and periodic reviews 
                of professional conduct, and to make widely publicly 
                available (including through posting on the World Wide 
                Web site of the Department) lists of certified 
                inspectors.''.
    (b) Financing Inspection Costs.--
            (1) The National Housing Act is amended by inserting ``, 
        except that the amount included because of a property 
        inspection pursuant to subsection (l) may not exceed the 
        maximum amount (not to exceed $300), which shall be established 
        by the Secretary'' in each of the following places:
                    (A) In section 203 (12 U.S.C. 1709)--
                            (i) in subsection (b)(2), in the matter 
                        preceding subparagraph (A), after ``approve'';
                            (ii) in subsection (b)(2), in the first 
                        sentence of the penultimate undesignated 
                        paragraph, after ``approve'';
                            (iii) in subsection (b)(2), in the first 
                        sentence of the last undesignated paragraph, 
                        after ``approve''; and
                            (iv) in subsection (k)(3)(A), after 
                        ``approve''.
                    (B) In section 220(d)(3)(A)(i) (12 U.S.C. 
                1715k(d)(3)(A)(i)), after ``approve''.
                    (C) In section 221(d)(2) (12 U.S.C. 1715l(d)(2)), 
                after ``approve''.
                    (D) In section 221(i)(2)(A)(ii) (12 U.S.C. 
                1715l(i)(2)(A)(ii)), after ``approve''.
                    (E) In section 237(c)(2) (12 U.S.C. 1715z-2(c)(2)), 
                after ``approve''.
            (2) The last sentence of the penultimate undesignated 
        paragraph of section 203(b)(2) of the National Housing Act (12 
        U.S.C. 1709(b)(2)) is amended by inserting ``, except to the 
        extent that this section specifically provides for limitation 
        by percentage or amount'' before the period at the end.
            (3) Section 203(b)(10)(B) of the National Housing Act (12 
        U.S.C. 1709(b)(10)(B)) is amended by inserting after 
        ``approve'' the following: ``, except that the amount approved 
        for property inspection pursuant to subsection (l) shall be the 
        maximum amount (not to exceed $300) for such inspection as 
        established by the Secretary''.
    (c) Inspection Requirement Under Various Single Family Programs.--
The National Housing Act is amended--
            (1) in section 222(b)(1) (12 U.S.C. 1715m(b)(1)), by 
        inserting before the semicolon the following: ``, and meet the 
        requirements of section 203(l)'';
            (2) in section 234(c) (12 U.S.C. 1715y(c)), by inserting 
        before ``and (2)'' the following: ``, and meets the 
        requirements of section 203(l)''; and
            (3) in section 809(c) (12 U.S.C. 1748h-1(c)), by striking 
        ``section 203(b)'' and inserting the following: ``subsections 
        (b) and (l) of section 203''.

SEC. 204. DEFINITION OF AREA.

    Section 203(b)(2) of the National Housing Act (12 U.S.C. 
1709(b)(2)) is amended, in the first sentence after subparagraph (B), 
by inserting before the period the following: ``; except that the 
Secretary may provide that any county or statistical area, together 
with any counties contiguous or proximate to such county or statistical 
area, be treated as a single area for purposes of the preceding 
sentence''.

SEC. 205. RURAL HOUSING GUARANTEED LOANS.

    Section 502(h)(6)(C) of the Housing Act of 1949 (42 U.S.C. 
1472(h)(6)(C)) is amended by striking ``, subject to the maximum dollar 
amount limitation of section 203(b)(2) of the National Housing Act'' 
each place it appears.

         TITLE III--ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS

SEC. 301. EXTENDED PERIOD OF USE OF FUNDS.

    Section 11 of the Housing Opportunity Program Extension Act of 1996 
(42 U.S.C. 12805 note) is amended by inserting ``(or, in the case of 
grant amounts from amounts made available for fiscal year 1996 to carry 
out this section, within 36 months)'' in each of the following places:
            (1) In subsection (i)(5), before the comma.
            (2) In subsection (j), before the second comma.

SEC. 302. AUTHORIZATION OF APPROPRIATIONS.

    Section 11 of the Housing Opportunity Program Extension Act of 1996 
(42 U.S.C. 12805 note) is amended by adding at the end the following 
new subsection:
    ``(q) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated for fiscal year 1999 such sums 
as may be necessary.''.

                TITLE IV--SECTION 8 HOMEOWNERSHIP OPTION

SEC. 401. PROGRAM FLEXIBILITY.

    Section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``A family receiving'' and all that 
                follows through ``if the family'' and inserting the 
                following: ``A public housing agency providing tenant-
                based assistance on behalf of an eligible family under 
                this section may provide assistance for an eligible 
                family that purchases a dwelling unit (including a unit 
                under a lease-purchase agreement) that will be owned by 
                1 or more members of the family, and will be occupied 
                by the family, if the family'';
                    (B) in subparagraph (A), by inserting before the 
                semicolon ``, or owns or is acquiring shares in a 
                cooperative''; and
                    (C) in subparagraph (B)--
                            (i) by striking ``(i) participates'' and 
                        all that follows through ``(ii)''; and
                            (ii) by inserting ``, except that the 
                        Secretary may provide for the consideration of 
                        public assistance in the case of an elderly 
                        family or a disabled family'' after ``other 
                        than public assistance'';
            (2) by striking paragraphs (2), (3), and (4) and inserting 
        the following new paragraphs:
            ``(2) Determination of amount of assistance.--
                    ``(A) Monthly expenses do not exceed payment 
                standard.--If the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, do not exceed the payment standard, 
                the monthly assistance payment shall be the amount by 
                which the homeownership expenses exceed the highest of 
                the following amounts, rounded to the nearest dollar:
                            ``(i) 30 percent of the monthly adjusted 
                        income of the family.
                            ``(ii) 10 percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency, 
                        and a portion of those payments, adjusted in 
                        accordance with the actual housing costs of the 
                        family, is specifically designated by that 
                        agency to meet the housing costs of the family, 
                        the portion of those payments that is so 
                        designated.
                    ``(B) Monthly expenses exceed payment standard.--If 
                the monthly homeownership expenses, as determined in 
                accordance with requirements established by the 
                Secretary, exceed the payment standard, the monthly 
                assistance payment shall be the amount by which the 
                applicable payment standard exceeds the highest of the 
                3 amounts, rounded to the nearest dollar, under clauses 
                (i), (ii), and (iii) of subparagraph (A).
            ``(3) Inspections and contract conditions.--
                    ``(A) In general.--Each contract for the purchase 
                of a unit to be assisted under this section shall--
                            ``(i) provide for pre-purchase inspection 
                        of the unit by an independent professional; and
                            ``(ii) require that any cost of necessary 
                        repairs be paid by the seller.
                    ``(B) Annual inspections not required.--The 
                requirement under subsection (o)(5)(B) for annual 
                inspections shall not apply to units assisted under 
                this section.
            ``(4) Other authority of the secretary.--The Secretary 
        may--
                    ``(A) limit the term of assistance for a family 
                assisted under this subsection; and
                    ``(B) modify the requirements of this subsection as 
                the Secretary determines to be necessary to make 
                appropriate adaptations for lease-purchase 
                agreements.'';
            (3) by striking paragraph (5); and
            (4) by redesignating paragraphs (6) and (7) as paragraphs 
        (5) and (6), respectively.

SEC. 402. DOWNPAYMENT ASSISTANCE.

    Section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)), as amended by section 401 of this Act, is amended by 
inserting after paragraph (6) the following new paragraph:
            ``(7) Downpayment assistance.--
                    ``(A) Authority.--A public housing agency may, in 
                lieu of providing monthly assistance payments under 
                this subsection on behalf of a family eligible for such 
                assistance and at the discretion of the public housing 
                agency, provide assistance for the family in the form 
                of a single grant to be used only as a contribution 
                toward the downpayment required in connection with the 
                purchase of a dwelling.
                    ``(B) Amount.--The amount of a downpayment grant on 
                behalf of an assisted family may not exceed the amount 
                that is equal to 3 times the sum of the assistance 
                payments that would be made during the first year of 
                assistance on behalf of the family, based upon the 
                income of the family at the time the grant is to be 
                made.''.

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 501. REAUTHORIZATION.

    Section 205 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12724) is amended to read as follows:

``SEC. 205. AUTHORIZATION.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title $1,500,000,000 for each of fiscal years 1999 through 
2003, of which--
            ``(1) not more than $25,000,000 in each such fiscal year 
        shall be for community housing partnership activities 
        authorized under section 233; and
            ``(2) not more than $15,000,000 in each such fiscal year 
        shall be for activities in support of State and local housing 
        strategies authorized under subtitle C.
    ``(b) Prohibition of Set-Asides.--Except as provided in subsection 
(a) of this section and section 217(a)(3), amounts appropriated 
pursuant to subsection (a) or otherwise to carry out this title shall 
be used only for formula-based grants allocated pursuant to section 217 
and may not be otherwise used unless the provision of law providing for 
such other use specifically refers to this subsection and specifically 
states that such provision modifies or supersedes the provisions of 
this subsection.''.

SEC. 502. INCOME ELIGIBILITY TO FACILITATE HOMEOWNERSHIP IN HIGH COST 
              AREAS.

    (a) Home Investment Partnerships.--The Cranston-Gonzalez National 
Affordable Housing Act is amended as follows:
            (1) Definitions.--In section 104(10) (42 U.S.C. 
        12704(10))--
                    (A) by striking ``income ceilings higher or lower'' 
                and inserting ``an income ceiling higher'';
                    (B) by striking ``variations are'' and inserting 
                ``variation is''; and
                    (C) by striking ``high or''.
            (2) Income targeting.--In section 214(1)(A) (42 U.S.C. 
        12744(1)(A))--
                    (A) by striking ``income ceilings higher or lower'' 
                and inserting ``an income ceiling higher'';
                    (B) by striking ``variations are'' and inserting 
                ``variation is''; and
                    (C) by striking ``high or''.
            (3) Limitations.--In section 215(a)(1)(A) (42 U.S.C. 
        12745(a)(1)(A))--
                    (A) by striking ``income ceilings higher or lower'' 
                and inserting ``an income ceiling higher'';
                    (B) by striking ``variations are'' and inserting 
                ``variation is''; and
                    (C) by striking ``high or''.

SEC. 503. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES AND MUTUAL HOUSING 
              ASSOCIATIONS.

    (a) Congressional Findings.--Section 202(10) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12721(10)) is 
amended by inserting ``mutual housing associations,'' after ``limited 
equity cooperatives,''.
    (b) Definitions.--Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended--
            (1) by redesignating paragraph (23) as paragraph (22);
            (2) by redesignating paragraph (24) (relating to the 
        definition of ``insular area'') as paragraph (23); and
            (3) by adding at the end the following new paragraphs:
            ``(26) The term `limited equity cooperative' means a 
        cooperative housing corporation which, in a manner determined 
        by the Secretary to be acceptable, restricts income eligibility 
        of purchasers of membership shares of stock in the cooperative 
        corporation or the initial and resale price of such shares, or 
        both, so that the shares remain available and affordable to 
        low-income families.
            ``(27) The term `mutual housing association' means a 
        private entity that--
                    ``(A) is organized under State law;
                    ``(B) is described in section 501(c) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under section 501(a) of such Code;
                    ``(C) owns, manages, and continuously develops 
                affordable housing by providing long-term housing for 
                low- and moderate-income families; and
                    ``(D) provides that eligible families who purchase 
                membership interests in the association shall have a 
                right to residence in a dwelling unit in the housing 
                during the period that they hold such membership 
                interest; and
                    ``(E) provides for the residents of such housing to 
                participate in the ongoing management of the 
                housing.''.
    (c) Eligibility.--Section 215 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12745) is amended--
            (1) in subsection (b), by adding after and below paragraph 
        (4) the following:
``Housing that is owned by a limited equity cooperative or a mutual 
housing association may be considered by a participating jurisdiction 
to be housing for homeownership for purposes of this title to the 
extent that ownership or membership in such a cooperative or 
association, respectively, constitutes homeownership under State or 
local laws.''; and
            (2) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(6) Limited equity cooperatives and mutual housing 
        associations.--Housing that is owned by a limited equity 
        cooperative or a mutual housing association may be considered 
        by a participating jurisdiction to be rental housing for 
        purposes of this title to the extent that ownership or 
        membership in such a cooperative or association, respectively, 
        constitutes rental of a dwelling under State or local laws.''.

SEC. 504. LEVERAGING AFFORDABLE HOUSING INVESTMENT THROUGH LOCAL LOAN 
              POOLS.

    (a) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
inserting after ``interest subsidies'' the following: ``, advances to 
provide reserves for loan pools or to provide partial loan 
guarantees,''.
    (b) Timely Investment of Trust Funds.--Section 218(e) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is 
amended to read as follows:
    ``(e) Investment Within 15 Days.----
            ``(1) In general.--The participating jurisdiction shall, 
        not later than 15 days after funds are drawn from the 
        jurisdiction's HOME Investment Trust Fund, invest such funds, 
        together with any interest earned thereon, in the affordable 
        housing for which the funds were withdrawn.
            ``(2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for investment 
        in the form of an advance for reserves or partial loan 
        guarantees under a program providing such credit enhancement 
        for loans for affordable housing, the amounts shall be 
        considered to be invested for purposes of paragraph (1) upon 
        the completion of both of the following actions:
                    ``(A) Control of the amounts is transferred to the 
                program.
                    ``(B) The jurisdiction and the entity operating the 
                program enter into a written agreement that--
                            ``(i) provides that such funds may be used 
                        only in connection with such program;
                            ``(ii) defines the terms and conditions of 
                        the loan pool reserve or partial loan 
                        guarantees; and
                            ``(iii) provides that such entity shall 
                        ensure that amounts from non-Federal sources 
                        have been contributed, or are committed for 
                        contribution, to the pool available for loans 
                        for affordable housing that will be backed by 
                        such reserves or loan guarantees in an amount 
                        equal to 10 times the amount invested from 
                        Trust Fund amounts.''.
    (c) Expiration of Right to Withdraw Funds.--Section 218(g) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748(g)) 
is amended to read as follows:
    ``(g) Expiration of Right To Draw Funds.--
            ``(1) In general.--If any funds becoming available to a 
        participating jurisdiction under this title are not placed 
        under binding commitment to affordable housing within 24 months 
        after the last day of the month in which such funds are 
        deposited in the jurisdiction's HOME Investment Trust Fund, the 
        jurisdiction's right to draw such funds from the HOME 
        Investment Trust Fund shall expire. The Secretary shall reduce 
        the line of credit in the participating jurisdiction's HOME 
        Investment Trust Fund by the expiring amount and shall 
        reallocate the funds by formula in accordance with section 
        217(d).
            ``(2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for investment 
        in the manner provided under subsection (e)(2), the amounts 
        shall be considered to be placed under binding commitment to 
        affordable housing for purposes of paragraph (1) of this 
        subsection at the time that the amounts are obligated for use 
        under, and are subject to, a written agreement described in 
        subsection (e)(2)(B).''.
    (d) Treatment of Mixed Income Loan Pools as Affordable Housing.--
            (1) In general.--Section 215 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12745) is amended by 
        adding at the end the following new subsection:
    ``(c) Loan Pools.--Notwithstanding subsections (a) and (b), housing 
financed using amounts invested as provided in subsection (e)(2) shall 
qualify as affordable housing only if the housing complies with the 
following requirements:
            ``(1) In the case of housing that is for homeownership--
                    ``(A) of the units financed with amounts so 
                invested--
                            ``(i) not less than 75 percent are 
                        principal residences of owners whose families 
                        qualify as low-income families at the time of 
                        purchase;
                            ``(ii) all are principal residences of 
                        owners whose families qualify as moderate-
                        income families at the time of purchase; and
                            ``(iii) all comply with paragraphs (3) and 
                        (4) of subsection (b), except that paragraph 
                        (3) shall be applied for purposes of this 
                        clause by substituting `subsection (c)(2)(B)' 
                        and `low- and moderate-income homebuyers' for 
                        `paragraph (2)' and `low-income homebuyers', 
                        respectively; and
                    ``(B) units made available for purchase only by 
                families who qualify as low-income families at the time 
                of purchase shall have an initial purchase price that 
                complies with the requirements of subsection (b)(1).
            ``(2) In the case of housing that is for rental, the 
        housing--
                    ``(A) complies with subparagraphs (D) through (F) 
                of subsection (a)(1);
                    ``(B)(i) has not less than 75 percent of the units 
                occupied by households that qualify as low-income 
                families and is occupied only by households that 
                qualify as moderate-income families; or
                    ``(ii) temporarily fails to comply with clause (i) 
                only because of increases in the incomes of existing 
                tenants and actions satisfactory to the Secretary are 
                being taken to ensure that all vacancies in the housing 
                are being filled in accordance with clause (i) until 
                such noncompliance is corrected; and
                    ``(C) bears rents, in the case of units made 
                available for occupancy only by households that qualify 
                as low-income families, that comply with the 
                requirements of subsection (a)(1)(A).
        Paragraphs (4) and (5) of subsection (a) shall apply to housing 
        that is subject to this subsection.''.
            (2) Definition.--Section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12704) is amended--
                    (A) by redesignating paragraph (25) as paragraph 
                (26);
                    (B) by redesignating paragraph (24) (relating to 
                the definition of energy efficient mortgage) as 
                paragraph (25);
                    (C) by redesignating paragraphs (11) through (21) 
                as paragraphs (12) through (22), respectively; and
                    (D) by inserting after paragraph (10) the following 
                new paragraph:
            ``(11) The term `moderate income families' means families 
        whose incomes do not exceed 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 the median income for the area on 
        the basis of the Secretary's findings that such variations are 
        necessary because of prevailing levels of construction costs or 
        fair market rents, or unusually high or low family incomes.''.

SEC. 505. LOAN GUARANTEES.

    Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end 
the following new section:

``SEC. 227. LOAN GUARANTEES.

    ``(a) Authority.--The Secretary may, upon such terms and conditions 
as the Secretary may prescribe, guarantee and make commitments to 
guarantee, only to such extent or in such amounts as provided in 
appropriations Acts, the notes or other obligations issued by eligible 
participating jurisdictions or by public agencies designated by and 
acting on behalf of eligible participating jurisdictions for purposes 
of financing (including credit enhancements and debt service reserves) 
the acquisition, new construction, reconstruction, or moderate or 
substantial rehabilitation of affordable housing (including real 
property acquisition, site improvement, conversion, and demolition), 
and other related expenses (including financing costs and relocation 
expenses of any displaced persons, families, businesses, or 
organizations). Housing funded under this section shall meet the 
requirements of this subtitle.
    ``(b) Requirements.--Notes or other obligations guaranteed under 
this section shall be in such form and denominations, have such 
maturities, and be subject to such conditions as may be prescribed by 
the Secretary. The Secretary may not deny a guarantee under this 
section on the basis of the proposed repayment period for the note or 
other obligation, unless the period is more than 20 years or the 
Secretary determines that the period otherwise causes the guarantee to 
constitute an unacceptable financial risk.
    ``(c) Limitation on Total Notes and Obligations.--The Secretary may 
not guarantee or make a commitment to guarantee any note or other 
obligation if the total outstanding notes or obligations guaranteed 
under this section on behalf of the participating jurisdiction issuing 
the note or obligation (excluding any amount defeased under a contract 
entered into under subsection (e)(1)) would thereby exceed an amount 
equal to 5 times the amount of the participating jurisdiction's latest 
allocation under section 217.
    ``(d) Use of Program Funds.--Notwithstanding any other provision of 
this subtitle, funds allocated to the participating jurisdiction under 
this subtitle (including program income derived therefrom) are 
authorized for use in the payment of principal and interest due on the 
notes or other obligations guaranteed pursuant to this section and the 
payment of such servicing, underwriting, or other issuance or 
collection charges as may be specified by the Secretary.
    ``(e) Security.--To assure the full repayment of notes or other 
obligations guaranteed under this section, and payment of the issuance 
or collection charges specified by the Secretary under subsection (d), 
and as a prior condition for receiving such guarantees, the Secretary 
shall require the participating jurisdiction (and its designated public 
agency issuer, if any) to--
            ``(1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of such notes or other obligations and 
        the other specified charges;
            ``(2) pledge as security for such repayment any allocation 
        for which the participating jurisdiction may become eligible 
        under this subtitle; and
            ``(3) furnish, at the discretion of the Secretary, such 
        other security as may be deemed appropriate by the Secretary in 
        making such guarantees, which may include increments in local 
        tax receipts generated by the housing assisted under this 
        section or disposition proceeds from the sale of land or 
        housing.
    ``(f) Repayment Authority.--The Secretary may, notwithstanding any 
other provision of this subtitle or any other Federal, State, or local 
law, apply allocations pledged pursuant to subsection (e) to any 
repayments due the United States as a result of such guarantees.
    ``(g) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all guarantees made under 
this section. Any such guarantee made by the Secretary shall be 
conclusive evidence of the eligibility of the notes or other 
obligations for such guarantee with respect to principal and interest, 
and the validity of any such guarantee so made shall be incontestable 
in the hands of a holder of the guaranteed obligations.
    ``(h) Tax Status.--With respect to any obligation guaranteed 
pursuant to this section, the interest paid on such obligation shall be 
included in gross income for purposes of the Internal Revenue Code of 
1986.
    ``(i) Monitoring.--The Secretary shall monitor the use of 
guarantees under this section by eligible participating jurisdictions. 
If the Secretary finds that 50 percent of the aggregate guarantee 
authority for any fiscal year has been committed, the Secretary may 
impose limitations on the amount of guarantees any 1 participating 
jurisdiction may receive during that fiscal year.
    ``(j) Guarantee of Trust Certificates.--
            ``(1) Authority.--The Secretary may, upon such terms and 
        conditions as the Secretary deems appropriate, guarantee the 
        timely payment of the principal of and interest on such trust 
        certificates or other obligations as may--
                    ``(A) be offered by the Secretary or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                    ``(B) be based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed or 
                eligible for guarantee by the Secretary under this 
                section.
            ``(2) Full faith and credit.--To the same extent as 
        provided in subsection (g), the full faith and credit of the 
        United States is pledged to the payment of all amounts which 
        may be required to be paid under any guarantee by the Secretary 
        under this subsection.
            ``(3) Subrogation.--In the event the Secretary pays a claim 
        under a guarantee issued under this section, the Secretary 
        shall be subrogated fully to the rights satisfied by such 
        payment.
            ``(4) Other powers and rights.--No State or local law, and 
        no Federal law, shall preclude or limit the exercise by the 
        Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section, 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                    ``(B) the right to enforce, by any means deemed 
                appropriate by the Secretary, any such contract; and
                    ``(C) the Secretary's ownership rights, as 
                applicable, in notes, certificates or other obligations 
                guaranteed under this section, or constituting the 
                trust or pool against which trust certificates or other 
                obligations guaranteed under this section are offered.
    ``(k) Aggregate Limitation.--The total amount of outstanding 
obligations guaranteed on a cumulative basis by the Secretary under 
this section shall not at any time exceed $2,000,000,000.''.

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT CORPORATION.

    Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act 
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and 
inserting the following: ``There are authorized to be appropriated to 
the corporation to carry out this title $90,000,000 for each of fiscal 
years 1999 through 2003. Of any amounts made available pursuant to this 
subsection for fiscal year 1999, $25,000,000 shall be for a pilot 
homeownership initiative, including an evaluation by an independent 
third party to determine its effectiveness.''.

SEC. 602. INCOME ELIGIBILITY UNDER CDBG TO FACILITATE HOMEOWNERSHIP IN 
              HIGH-COST AREAS.

    Section 102(a)(20) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5302(a)(20)) is amended by striking subparagraph (B) 
and inserting the following new subparagraph:
            ``(B) The Secretary may--
                    ``(i) with respect to any reference in subparagraph 
                (A) to 50 percent of the median income of the area 
                involved, establish percentages of median income for 
                any area that are higher or lower than 50 percent if 
                the Secretary finds such variations to be necessary 
                because of unusually high or low family incomes in such 
                area; and
                    ``(ii) with respect to any reference in 
                subparagraph (A) to 80 percent of the median income of 
                the area involved, establish a percentage of median 
                income for any area that is higher than 80 percent if 
                the Secretary finds such variation to be necessary 
                because of unusually low family incomes in such 
                area.''.

SEC. 603. HOMEOWNERSHIP ZONES.

    Section 186 of the Housing and Community Development Act of 1992 
(42 U.S.C. 12898a) is amended to read as follows:

``SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

    ``(a) Authority.--The Secretary of Housing and Urban Development 
may make grants to units of general local government to assist 
homeownership zones. Homeownership zones are contiguous, geographically 
defined areas, primarily residential in nature, in which large-scale 
development projects are designed to reclaim distressed neighborhoods 
by creating homeownership opportunities for low- and moderate-income 
families. Projects in homeownership zones are intended to serve as a 
catalyst for private investment, business creation, and neighborhood 
revitalization.
    ``(b) Eligible Activities.--Amounts made available under this 
section may be used for projects that include any of the following 
activities in the homeownership zone:
            ``(1) Acquisition, construction, and rehabilitation of 
        housing.
            ``(2) Site acquisition and preparation, including 
        demolition, construction, reconstruction, or installation of 
        public and other site improvements and utilities directly 
        related to the homeownership zone.
            ``(3) Direct financial assistance to homebuyers.
            ``(4) Homeownership counseling.
            ``(5) Relocation assistance.
            ``(6) Marketing costs, including affirmative marketing 
        activities.
            ``(7) Other project-related costs.
            ``(8) Reasonable administrative costs (up to 5 percent of 
        the grant amount).
            ``(9) Other housing-related activities proposed by the 
        applicant as essential to the success of the homeownership zone 
        and approved by the Secretary.
    ``(c) Application.--To be eligible for a grant under this section, 
a unit of general local government shall submit an application for a 
homeownership zone grant in such form and in accordance with such 
procedures as the Secretary shall establish.
    ``(d) Selection Criteria.--The Secretary shall select applications 
for funding under this section through a national competition, using 
selection criteria established by the Secretary, which shall include--
            ``(1) the degree to which the proposed activities will 
        result in the improvement of the economic, social, and physical 
        aspects of the neighborhood and the lives of its residents 
        through the creation of new homeownership opportunities;
            ``(2) the levels of distress in the homeownership zone as a 
        whole, and in the immediate neighborhood of the project for 
        which assistance is requested;
            ``(3) the financial soundness of the plan for financing 
        homeownership zone activities;
            ``(4) the leveraging of other resources; and
            ``(5) the capacity to successfully carry out the plan.
    ``(e) Grant Approval Amounts.--The Secretary may establish a 
maximum amount for any grant for any funding round under this section. 
A grant may not be made in an amount that exceeds the amount that the 
Secretary determines is necessary to fund the project for which the 
application is made.
    ``(f) Program Requirements.--A homeownership zone proposal shall--
            ``(1) provide for a significant number of new homeownership 
        opportunities that will make a visible improvement in an 
        immediate neighborhood;
            ``(2) not be inconsistent with such planning and design 
        principles as may be prescribed by the Secretary;
            ``(3) be designed to stimulate additional investment in 
        that area;
            ``(4) provide for partnerships with persons or entities in 
        the private and nonprofit sectors;
            ``(5) incorporate a comprehensive approach to 
        revitalization of the neighborhood;
            ``(6) establish a detailed time-line for commencement and 
        completion of construction activities; and
            ``(7) provide for affirmatively furthering fair housing.
    ``(g) Income Targeting.--At least 51 percent of the homebuyers 
assisted with funds under this section shall have household incomes at 
or below 80 percent of median income for the area, as determined by the 
Secretary.
    ``(h) Environmental Review.--For purposes of environmental review, 
decisionmaking, and action pursuant to the National Environmental 
Policy Act of 1969 and other provisions of law that further the 
purposes of such Act, a grant under this section shall be treated as 
assistance under the HOME Investment Partnerships Act and shall be 
subject to the regulations issued by the Secretary to implement section 
288 of such Act.
    ``(i) Review, Audit, and Reporting.--The Secretary shall make such 
reviews and audits and establish such reporting requirements as may be 
necessary or appropriate to determine whether the grantee has carried 
out its activities in a timely manner and in accordance with the 
requirements of this section. The Secretary may adjust, reduce, or 
withdraw amounts made available, or take other action as appropriate, 
in accordance with the Secretary's performance reviews and audits under 
this section.
    ``(j) Authorization.--There are authorized to be appropriated to 
carry out this section $25,000,000 for fiscal year 1999 and such sums 
as may be necessary for fiscal year 2000, to remain available until 
expended.''.

SEC. 604. LEASE-TO-OWN.

    (a) Sense of Congress.--It is the sense of the Congress that 
residential tenancies under lease-to-own provisions can facilitate 
homeownership by low- and moderate-income families and provide 
opportunities for homeownership for such families who might not 
otherwise be able to afford homeownership.
    (b) Report.--Not later than the expiration of the 3-month period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall submit a report to the Congress--
            (1) analyzing whether lease-to-own provisions can be 
        effectively incorporated within the HOME investment 
        partnerships program, the public housing program, the tenant-
        based rental assistance program under section 8 of the United 
        States Housing Act of 1937, or any other programs of the 
        Department to facilitate homeownership by low- or moderate-
        income families;
            (2) any legislative or administrative changes necessary to 
        alter or amend such programs to allow the use of lease-to-own 
        options to provide homeownership opportunities.

SEC. 605. HOUSING COUNSELING.

    (a) Extension of Emergency Homeownership Counseling.--Section 
106(c)(9) of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x(c)(9)) is amended by striking ``September 30, 1994'' and 
inserting ``September 30, 2003''.
    (b) Extension of Prepurchase and Foreclosure Prevention Counseling 
Demonstration.--Section 106(d)(13) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended by striking ``fiscal 
year 1994'' and inserting ``fiscal year 2003''.
    (c) Notification of Delinquency on Veterans Home Loans.--
Subparagraph (C) of section 106(c)(5) of the Housing and Urban 
Development Act of 1968 is amended to read as follows:
                    ``(C) Notification.--Notification under 
                subparagraph (A) shall not be required with respect to 
                any loan for which the eligible homeowner pays the 
                amount overdue before the expiration of the 45-day 
                period under subparagraph (B)(ii).''.

SEC. 606. LOCAL CAPACITY BUILDING.

    Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended--
            (1) in subsection (a), by inserting ``National Association 
        of Housing Partnerships,'' after ``Humanity,''; and
            (2) in subsection (e), by striking ``$25,000,000'' and all 
        that follows and inserting ``, for each fiscal year, such sums 
        as may be necessary to carry out this section.''.

              TITLE VII--MANUFACTURED HOUSING IMPROVEMENT

SEC. 701. SHORT TITLE AND REFERENCES.

    (a) Short Title.--This title may be cited as the ``Manufactured 
Housing Improvement Act''.
    (b) References.--Whenever in this title an amendment is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to that section 
or other provision of the National Manufactured Housing Construction 
and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).

SEC. 702. FINDINGS AND PURPOSES.

    Section 602 (42 U.S.C. 5401) is amended to read as follows:

                        ``findings and purposes

    ``Sec. 602. (a) Findings.--The Congress finds that--
            ``(1) manufactured housing plays a vital role in meeting 
        the housing needs of the Nation; and
            ``(2) manufactured homes provide a significant resource for 
        affordable homeownership and rental housing accessible to all 
        Americans.
    ``(b) Purposes.--The purposes of this title are--
            ``(1) to promote the quality, durability, safety, and 
        affordability of manufactured housing;
            ``(2) to promote the availability of affordable 
        manufactured homes and to increase homeownership for all 
        Americans;
            ``(3) to provide for the establishment of practical, 
        uniform, and, to the extent possible, performance-based Federal 
        construction standards;
            ``(4) to encourage innovative and cost-effective 
        construction techniques;
            ``(5) to protect owners of manufactured homes from 
        unreasonable risk of personal injury and property damage;
            ``(6) to establish a balanced consensus process for the 
        development, revision, and interpretation of Federal 
        construction and safety standards for manufactured homes and 
        related regulations for the enforcement of such standards;
            ``(7) to ensure uniform and effective enforcement of 
        Federal construction and safety standards for manufactured 
        homes; and
            ``(8) to ensure that the public interest in, and need for, 
        affordable manufactured housing is duly considered in all 
        determinations relating to the Federal standards and their 
        enforcement.''.

SEC. 703. DEFINITIONS.

    (a) In General.--Section 603 (42 U.S.C. 5402) is amended--
            (1) in paragraph (2), by striking ``dealer'' and inserting 
        ``retailer'';
            (2) in paragraph (12), by striking ``and'' at the end;
            (3) in paragraph (13), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(14) `administering organization' means the qualified 
        technical or building code organization that administers the 
        consensus development process, which--
                    ``(A) with respect to the period during which the 
                agreement under section 604(a)(2)(A) is in force, shall 
                be the Council of American Building Officials; and
                    ``(B) with respect to the period during which a 
                competitively procured contract under section 
                604(a)(2)(B) is in force, shall be the organization 
                selected by the Secretary;
            ``(15) `consensus committee' means the committee 
        established under section 604(a)(3);
            ``(16) `consensus standards development process' means the 
        process by which additions, revisions, and interpretations to 
        the Federal manufactured home construction and safety standards 
        and enforcement regulations shall be developed and recommended 
        to the Secretary by the consensus committee;
            ``(17) `primary inspection agency' means a State agency or 
        private organization that has been approved by the Secretary to 
        act as a design approval primary inspection agency or a 
        production inspection primary inspection agency, or both;
            ``(18) `design approval primary inspection agency' means a 
        State agency or private organization that has been approved by 
        the Secretary to evaluate and either approve or disapprove 
        manufactured home designs and quality control procedures;
            ``(19) `production inspection primary inspection agency' 
        means a State agency or private organization that has been 
        approved by the Secretary to evaluate the ability of 
        manufactured home manufacturing plants to comply with approved 
        quality control procedures and with the Federal manufactured 
        home construction and safety standards promulgated hereunder; 
        and
            ``(20) `monitoring' means the process of periodic review of 
        the primary inspection agencies, by the Secretary or by a State 
        agency under an approved State plan pursuant to section 623, in 
        accordance with regulations adopted by the consensus committee 
        and promulgated in accordance with section 604(a)(4)(B). Such 
        monitoring shall be for the purpose of ensuring that the 
        primary inspection agencies are discharging their duties as 
        defined herein.''.
    (b) Conforming Amendments.--The National Manufactured Housing 
Construction and Safety Standards Act of 1974 is amended--
            (1) in section 613 (42 U.S.C. 5412), by striking ``dealer'' 
        each place it appears and inserting ``retailer'';
            (2) in section 614(f) (42 U.S.C. 5413(f)), by striking 
        ``dealer'' each place it appears and inserting ``retailer'';
            (3) in section 615 (42 U.S.C. 5414)--
                    (A) in subsection (b)(1), by striking ``dealer'' 
                and inserting ``retailer'';
                    (B) in subsection (b)(3), by striking ``dealer or 
                dealers'' and inserting ``retailer or retailers''; and
                    (C) in subsections (d) and (f), by striking 
                ``dealers'' each place it appears and inserting 
                ``retailers'';
            (4) in section 616 (42 U.S.C. 5415), by striking ``dealer'' 
        and inserting ``retailer''; and
            (5) in section 623(c)(9), by striking ``dealers'' and 
        inserting ``retailers''.

 SEC. 704. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS.

    Section 604 (42 U.S.C. 5304) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsections:
    ``(a) Establishment.--
            ``(1) Authority.--The Secretary shall establish, by order, 
        appropriate Federal manufactured home construction and safety 
        standards, each of which--
                    ``(A) shall--
                            ``(i) be reasonable and practical;
                            ``(ii) meet high standards of protection 
                        consistent with the enumerated purposes of this 
                        title; and
                            ``(iii) where appropriate, be performance-
                        based and stated objectively; and
                    ``(B) except as provided in subsection (b), shall 
                be established in accordance with the consensus 
                standards development process.
            ``(2) Consensus standards and regulatory development 
        process.--
                    ``(A) Initial agreement.--Not later than 180 days 
                after the date of enactment of the Manufactured Housing 
                Improvement Act, the Secretary shall request the 
                Council of American Building Officials (or the 
                successor organization to such Council) to, and if such 
                organization consents, enter into an agreement, which 
                shall--
                            ``(i) terminate on the date on which a 
                        contract is entered into under subparagraph 
                        (B); and
                            ``(ii) require the Council of American 
                        Building Officials to--
                                    ``(I) appoint the initial members 
                                of the consensus committee under 
                                paragraph (3);
                                    ``(II) administer the consensus 
                                standards development process until the 
                                termination of that agreement; and
                                    ``(III) administer the consensus 
                                development and interpretation process 
                                for procedural and enforcement 
                                regulations and regulations specifying 
                                the permissible scope and conduct of 
                                monitoring until the termination of 
                                that agreement.
                If the Council of American Building Officials (or the 
                successor organization to such Council) declines to 
                enter into the agreement as provided in this 
                subparagraph, the Secretary shall enter into the 
                agreement under this subparagraph with an organization 
                described in subparagraph (B).
                    ``(B) Competitively procured contract.--Upon the 
                expiration of the 4-year period beginning on the date 
                on which all members of the consensus committee are 
                appointed under paragraph (3), the Secretary shall, 
                using competitive procedures (as such term is defined 
                in section 4 of the Office of Federal Procurement 
                Policy Act), enter into a competitively awarded 
                contract with a qualified technical or building code 
                organization (which may be the Council of American 
                Building Officials) under which the organization shall 
                administer the consensus process for the development 
                and interpretation of the Federal standards, the 
                procedural and enforcement regulations and regulations 
                specifying the permissible scope and conduct of 
                monitoring in accordance with this title.
                    ``(C) Performance review.--The Secretary--
                            ``(i) shall periodically review the 
                        performance of the administering organization; 
                        and
                            ``(ii) may replace the administering 
                        organization with another qualified technical 
                        or building code organization, pursuant to 
                        competitive procedures, if the Secretary 
                        determines in writing that the administering 
                        organization is not fulfilling the terms of the 
                        agreement or contract to which the 
                        administering organization is subject or upon 
                        the expiration of the agreement or contract.
            ``(3) Consensus committee.--
                    ``(A) Purpose.--There is established a committee to 
                be known as the `consensus committee', which shall, in 
                accordance with this title--
                            ``(i) provide periodic recommendations to 
                        the Secretary to adopt, revise, and interpret 
                        the Federal manufactured housing construction 
                        and safety standards in accordance with this 
                        subsection;
                            ``(ii) provide periodic recommendations to 
                        the Secretary to adopt, revise, and interpret 
                        the procedural and enforcement regulations, 
                        including regulations specifying the 
                        permissible scope and conduct of monitoring in 
                        accordance with this subsection; and
                            ``(iii) be organized and carry out its 
                        business in a manner that guarantees a fair 
                        opportunity for the expression and 
                        consideration of various positions and for 
                        public participation.
                    ``(B) Membership.--The consensus committee shall be 
                composed of--
                            ``(i) 25 voting members appointed, subject 
                        to approval by the Secretary, by the 
                        administering organization from among 
                        individuals who are qualified by background and 
                        experience to participate in the work of the 
                        consensus committee; and
                            ``(ii) 1 member appointed by the Secretary 
                        to represent the Secretary on the consensus 
                        committee, who shall be a nonvoting member.
                    ``(C) Disapproval.--The Secretary may disapprove 
                the appointment of an individual under subparagraph 
                (B)(i) only if the Secretary makes a finding, in 
                writing, that--
                            ``(i) the appointment was not made in 
                        accordance with subparagraph (D); or
                            ``(ii) the individual is not qualified to 
                        represent the interest category referred to in 
                        subparagraph (D) for which the individual has 
                        been appointed.
                    ``(D) Selection procedures and requirements.--Each 
                member shall be appointed in accordance with the 
                selection procedures, which shall be established by the 
                Secretary and which shall be based on the procedures 
                for consensus committees promulgated by the American 
                National Standards Institute (or successor 
                organization), except that the American National 
                Standards Institute interest categories shall be 
                modified for purposes of this paragraph to ensure equal 
                representation on the consensus committee of the 
                following interest categories:
                            ``(i) Manufacturers.
                            ``(ii) Retailers, insurers, suppliers, 
                        lenders, community owners, and private 
                        inspection agencies that have a financial 
                        interest in the manufactured housing industry.
                            ``(iii) Homeowners and consumer 
                        representatives.
                            ``(iv) Public officials, including those 
                        from State agencies or local building code 
                        enforcement and inspection agencies.
                            ``(v) General interest groups, including 
                        academicians, researchers, architects, 
                        engineers, private inspection agencies, and 
                        others.
                    ``(E) Additional qualifications.--
                            ``(i) Financial interest.--No member 
                        appointed under clause (iii), (iv), or (v) of 
                        subparagraph (D) may have a significant 
                        financial interest in the manufactured housing 
                        industry, unless--
                                    ``(I) such member is a private 
                                inspection agency; or
                                    ``(II) such bar to participation is 
                                waived by the Secretary in writing.
                            ``(ii) Limitation on private inspection 
                        agencies.--The number of members appointed 
                        under subparagraph (D)(v) who represent private 
                        inspection agencies shall not constitute more 
                        than 20 percent of the total number of members 
                        appointed under subparagraph (D)(v).
                    ``(F) Meetings.--The consensus committee shall 
                provide advance notice of each meeting of the consensus 
                committee to the Secretary and publish advance notice 
                of each such meeting in the Federal Register. All 
                meetings of the consensus committee shall be open to 
                the public.
                    ``(G) Inapplicability of other laws.--
                            ``(i) Advisory committee act.--The 
                        consensus committee shall not be considered to 
                        be an advisory committee for purposes of the 
                        Federal Advisory Committee Act.
                            ``(ii) Title 18.--The members of the 
                        consensus committee shall not be subject to 
                        section 203, 205, 207, or 208 of title 18, 
                        United States Code, to the extent of their 
                        proper participation as members of the 
                        consensus committee.
                            ``(iii) Ethics in government act of 1978.--
                        The Ethics in Government Act of 1978 shall not 
                        apply to members of the consensus committee to 
                        the extent of their proper participation as 
                        members of the consensus committee.
                    ``(H) Administration.--The consensus committee and 
                the administering organization shall--
                            ``(i) operate in conformance with the 
                        procedures established by the American National 
                        Standards Institute for the development and 
                        coordination of American National Standards; 
                        and
                            ``(ii) apply to the American National 
                        Standards Institute and take such other actions 
                        as may be necessary to obtain accreditation 
                        from the American National Standards Institute.
                    ``(I) Staff.--The administering organization shall, 
                upon the request of the consensus committee, provide 
                reasonable staff resources to the consensus committee.
                    ``(J) Date of initial appointments.--The initial 
                appointments of all of the members of the consensus 
                committee shall be completed not later than 90 days 
                after the date on which an administration agreement 
                under paragraph (2)(A) is completed with the Council of 
                American Building Officials.
            ``(4) Revisions.--
                    ``(A) In general.--Beginning on the date on which 
                all members of the consensus committee are appointed 
                under paragraph (3), the consensus committee shall, not 
                less than once during each 2-year period--
                            ``(i) consider revisions to the Federal 
                        manufactured home construction and safety 
                        standards and procedural and enforcement 
                        regulations (including the adoption of 
                        regulations specifying the permissible scope 
                        and conduct of monitoring); and
                            ``(ii) submit proposed revised standards 
                        and regulations to the Secretary.
                    ``(B) Publication of proposed revised standards and 
                regulations.--Before submitting any proposed revised 
                standard or regulation under subparagraph (A)(ii), the 
                consensus committee shall--
                            ``(i) cause to be published in the Federal 
                        Register a notice of the proposed revised 
                        standard or regulation and a description of the 
                        considerations and decisions of the consensus 
                        committee under subsection (e); and
                            ``(ii) provide an opportunity for public 
                        comment on such proposed revised standard or 
                        regulation.
                    ``(C) Presentation of public comments.--Any public 
                comments, views, and objections to a proposed revised 
                standard or regulation published under subparagraph (B) 
                shall be presented to the consensus committee in 
                accordance with procedures established by the American 
                National Standards Institute. The consensus committee 
                shall cause to be published in the Federal Register a 
                notice of the recommended revisions of the consensus 
                committee to the standard or regulation, a notice of 
                the submission of the recommended revisions to the 
Secretary, and a description of the circumstances under which the 
proposed revised standards or regulations could become effective.
            ``(5) Review by the secretary.--
                    ``(A) In general.--The Secretary shall either 
                adopt, modify, or reject a standard or regulation, as 
                submitted by the consensus committee under paragraph 
                (4)(A).
                    ``(B) Timing.--Not later than 12 months after the 
                date on which a standard or regulation is submitted to 
                the Secretary by the consensus committee, the Secretary 
                shall take action regarding such standard or regulation 
                under subparagraph (C).
                    ``(C) Procedures.--If the Secretary--
                            ``(i) adopts a standard or regulation 
                        recommended by the consensus committee, the 
                        Secretary shall--
                                    ``(I) issue a final order without 
                                further rulemaking; and
                                    ``(II) cause the final order to be 
                                published in the Federal Register;
                            ``(ii) determines that any standard or 
                        regulation should be rejected because the 
                        implementation of such standard or regulation 
                        would jeopardize public health or safety or is 
                        inconsistent with the purposes of this title, 
                        the Secretary shall--
                                    ``(I) reject the standard or 
                                regulation; and
                                    ``(II) cause to be published in the 
                                Federal Register a notice to that 
                                effect, together with the reason or 
                                reasons for rejecting the proposed 
                                standard or regulation; or
                            ``(iii) determines that a standard or 
                        regulation recommended by the consensus 
                        committee should be modified because the 
                        implementation of such standard or regulation 
                        would jeopardize public health or safety or is 
                        inconsistent with the purposes of this title, 
                        the Secretary shall--
                                    ``(I) cause the proposed modified 
                                standard or regulation to be published 
                                in the Federal Register, together with 
                                an explanation of the reason or reasons 
                                for the determination of the Secretary; 
                                and
                                    ``(II) provide an opportunity for 
                                public comment in accordance with 
                                section 553 of title 5, United States 
                                Code.
                    ``(D) Final order.--Any final standard or 
                regulation under this paragraph shall become effective 
                pursuant to subsection (c).
            ``(6) Failure to act.--If the Secretary fails to take final 
        action under paragraph (5) and to publish notice of the action 
        in the Federal Register before the expiration of the 12-month 
        period beginning on the date on which the proposed standard or 
        regulation is submitted to the Secretary under paragraph 
        (4)(A)--
                    ``(A) the recommendations of the consensus 
                committee--
                            ``(i) shall be considered to have been 
                        adopted by the Secretary; and
                            ``(ii) shall take effect upon the 
                        expiration of the 180-day period that begins 
                        upon the conclusion of such 12-month period; 
                        and
                    ``(B) not later than 10 days after the expiration 
                of such 12-month period, the Secretary shall cause to 
                be published in the Federal Register a notice of the 
                failure of the Secretary to act, the revised standard 
                or regulation, and the effective date of the revised 
                standard or regulation, which notice shall be deemed to 
                be an order of the Secretary approving the revised 
                standards or regulations proposed by the consensus 
                committee.
            ``(7) Interpretive bulletins.--The Secretary may issue 
        interpretive bulletins to clarify the meaning of any Federal 
        manufactured home construction and safety standard or 
        procedural and enforcement regulation, subject to the following 
        requirements:
                    ``(A) Review by consensus committee.--Before 
                issuing an interpretive bulletin--
                            ``(i) the Secretary shall--
                                    ``(I) submit the proposed bulletin 
                                to the consensus committee; and
                                    ``(II) provide the consensus 
                                committee with a period of 90 days to 
                                provide written comments on the 
                                proposed bulletin to the Secretary; and
                            ``(ii) if the Secretary rejects any 
                        significant comment provided by the consensus 
                        committee under clause (i), the Secretary 
                        shall--
                                    ``(I) provide a written explanation 
                                of the reasons for the rejection to the 
                                consensus committee;
                                    ``(II) cause the proposed bulletin 
                                and the consensus committee's written 
                                comments to be published in the Federal 
                                Register; and
                                    ``(III) provide an opportunity for 
                                public comment in accordance with 
                                section 553 of title 5, United States 
                                Code.
                    ``(B) Proposals.--
                            ``(i) In general.--The consensus committee 
                        may submit to the Secretary a proposed 
                        interpretive bulletin under this paragraph.
                            ``(ii) Automatic approval.--If the 
                        Secretary fails to issue or rejects a proposed 
                        interpretive bulletin submitted under clause 
                        (i) before the expiration of the 90-day period 
                        beginning on the date on which the bulletin is 
                        submitted to the Secretary under clause (i), 
                        the Secretary shall--
                                    ``(I) be considered to have 
                                approved the bulletin; and
                                    ``(II) immediately issue the 
                                bulletin.
    ``(b) Other Orders.--
            ``(1) In general.--If the Secretary determines, in writing, 
        that such action is necessary in order to respond to a public 
        health or safety emergency, or to address an issue on which the 
        Secretary determines the consensus committee will not make a 
        timely recommendation, the Secretary may issue an order that is 
        not developed under the procedures set forth in subsection (a), 
        if the Secretary--
                    ``(A) first submits the proposed order to the 
                consensus committee for review; and
                    ``(B) in the case of an order addressing an issue 
                on which the Secretary determines that the consensus 
                committee will not make a timely recommendation, 
                affords the consensus committee 90 days to provide the 
                views of the consensus committee on the proposed order 
                to the Secretary.
            ``(2) Explanation required.--If the consensus committee 
        fails to act before the expiration of the 90-day period 
        described in paragraph (1)(B) or if the Secretary rejects any 
        significant change recommended by the consensus committee under 
        such paragraph, the public notice of an order issued under 
        paragraph (1) shall include an explanation of the reasons for 
        such failure or rejection.
            ``(3) Rulemaking procedures.--The Secretary may issue an 
        order under this subsection only in accordance with section 553 
        of title 5, United States Code.'';
            (2) in subsection (d), by adding at the end the following: 
        ``Federal preemption under this subsection shall be broadly and 
        liberally construed. It shall be the duty of the Secretary to 
        ensure that disparate State or local requirements or standards 
        do not affect the uniformity and comprehensiveness of the 
        standards promulgated hereunder. Nothing in the preceding 
        sentence shall affect any person's right to enforce the 
        provisions of this subsection in any court of competent 
        jurisdiction. There is reserved to each State the right to 
        establish standards for the installation of manufactured homes 
        sited within that State and the right to enforce compliance 
        with such standards: Provided, That such standards shall be 
        consistent with the purposes of this title and with the 
        applicable manufacturers' installation instructions.'';
            (3) by striking subsection (e);
            (4) in subsection (f), by striking the matter preceding 
        paragraph (1) and inserting the following:
    ``(e) Considerations in Establishing and Interpreting Standards and 
Regulations.--The consensus committee, in recommending standards, 
regulations, and interpretations, and the Secretary, in establishing 
standards or regulations, or issuing interpretations under this 
section, shall--'';
            (5) by striking subsection (g);
            (6) in the first sentence of subsection (j), by striking 
        ``subsection (f)'' and inserting ``subsection (e)''; and
            (7) by redesignating subsections (h), (i), and (j), as 
        subsections (f), (g), and (h), respectively.

SEC. 705. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL.

    Section 605 (42 U.S.C. 5404) is hereby repealed.

SEC. 706. PUBLIC INFORMATION.

    Section 607 (42 U.S.C. 5406) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``to the Secretary'' after 
                ``submit''; and
                    (B) by adding at the end the following: ``The 
                Secretary shall submit such cost and other information 
                to the consensus committee for evaluation.'';
            (2) in subsection (d), by inserting ``, the consensus 
        committee,'' after ``public''; and
            (3) by striking subsection (c) and redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively.

SEC. 707. FEES.

    Section 620 (42 U.S.C. 5419) is amended to read as follows:

                     ``authority to establish fees

    ``Sec. 620. (a) In General.--In carrying out inspections under this 
title, in developing standards and regulations pursuant to section 604, 
and in promoting the affordability and availability of manufactured 
housing, the Secretary may--
            ``(1) establish and collect from manufactured home 
        manufacturers, distributors, and retailers such reasonable fees 
        as may be necessary to offset the expenses incurred by the 
        Secretary in connection with--
                    ``(A) conducting those inspections;
                    ``(B) administering the consensus committee as set 
                forth in section 604;
                    ``(C) providing the funding for a noncareer 
                administrator for the manufactured housing program; and
                    ``(D) promoting the availability of affordable 
                manufactured homes to increase homeownership for all 
                Americans; and
            ``(2) use any fees collected under paragraph (1) to pay 
        expenses referred to in subparagraphs (A), (B), (C), and (D) of 
        paragraph (1), which shall be exempt and separate from any 
        limitations on the Department of Housing and Urban Development 
        regarding full-time equivalent positions and travel.
    ``(b) Prohibited Use.--Neither the Secretary, an agent of the 
Secretary, nor the States under section 623 of this title may use any 
fees collected under subsection (a) for any purpose or activities not 
specifically authorized by this title.
    ``(c) Modification.--Any fee established by the Secretary under 
this section shall only be modified pursuant to rulemaking in 
accordance with section 553 of title 5, United States Code.
    ``(d) Appropriation and Deposit of Fees.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a fund to be known as the `Manufactured 
        Housing Fees Fund' for deposit of all fees collected pursuant 
        to subsection (a).
            ``(2) Appropriation.--Such fees shall be available for 
        expenditure only to the extent approved in an annual 
        appropriations Act.''.

SEC. 708. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

    The National Manufactured Housing Construction and Safety Standards 
Act of 1974 is amended--
            (1) by striking section 626 (42 U.S.C. 5425); and
            (2) by redesignating sections 627 and 628 (42 U.S.C. 5426, 
        5401 note) as sections 626 and 627, respectively.

SEC. 709. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act, except that the amendments shall have no effect 
on any order or interpretive bulletin that is published as a proposed 
rule pursuant to section 553 of title 5, United States Code, on or 
before such date.

SEC. 710. SAVINGS PROVISION.

    The Federal manufactured home construction and safety standards (as 
such term is defined in section 603 of the National Manufactured 
Housing Construction and Safety Standards Act of 1974) in effect 
immediately before the date of the enactment of this Act shall apply 
until the effective date of the Federal manufactured home construction 
and safety standards promulgated under subsection (a) or (b) of section 
604 of the National Manufactured Housing Construction and Safety 
Standards Act of 1974, as amended by this title.

                TITLE VIII--INDIAN HOUSING HOMEOWNERSHIP

SEC. 801. INDIAN LANDS STATUS COMMISSION.

    (a) Establishment.--There is hereby established a Commission to be 
known as the Indian Lands Status Commission (hereafter in this section 
referred to as the ``Commission'').
    (b) Membership.--
            (1) Appointment.--The Commission shall be composed of 12 
        members, appointed not later than 90 days after the date of the 
        enactment of this Act as follows:
                    (A) 4 members shall be appointed by the President.
                    (B) 4 members shall be appointed by the Chairman of 
                the Committee on Banking and Financial Services of the 
                House of Representatives.
                    (C) 4 members shall be appointed by the Chairman of 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate.
            (2) Qualifications.--At all times, not less than 7 of the 
        members of the Commission shall be members of federally 
        recognized Indian tribes.
            (3) Chairman.--The Chairman of the Commission shall be one 
        of the members of the Commission appointed under paragraph 
        (1)(C), as elected by the members of the Commission.
            (4) Vacancies.--Any vacancy on the Commission shall not 
        affect its powers, but shall be filled in the manner in which 
        the original appointment was made.
            (5) Travel expenses.--Members of the Commission shall serve 
        without pay, but each member shall receive travel expenses, 
        including per diem in lieu of subsistence, in accordance with 
        sections 5702 and 5703 of title 5, United States Code.
    (c) Functions.--The Commission shall analyze the system of the 
Bureau of Indian Affairs of the Department of the Interior for 
maintaining land ownership records and title documents and issuing 
certified title status reports relating to Indian trust lands and, 
pursuant to such analysis, determine how best to improve or replace the 
system--
            (1) to ensure prompt and accurate responses to requests for 
        title status reports;
            (2) to eliminate any backlog of requests for title status 
        reports; and
            (3) to ensure that the administration of the system will 
        not in any way impair or restrict the ability of Native 
        Americans to obtain conventional loans for purchase of 
        residences located on Indian trust lands, including any actions 
        necessary to ensure that the system will promptly be able to 
        meet future demands for certified title status reports, taking 
        into account the anticipated complexity and volume of such 
        requests.
    (d) Report.--Not later than the date of the termination of the 
Commission under subsection (g), the Commission shall submit a report 
to the Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate describing the analysis and determinations made 
under subsection (c).
    (e) Powers.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this section, hold hearings, sit and 
        act at times and places, take testimony, and receive evidence 
        as the Commission considers appropriate.
            (2) Staff of federal agencies.--Upon request of the 
        Commission, the head of any Federal department or agency may 
        detail, on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in carrying 
        out its duties under this section.
            (3) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this section. 
        Upon request of the Chairperson of the Commission, the head of 
        that department or agency shall furnish that information to the 
        Commission.
            (4) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (5) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its responsibilities under this section.
            (6) Staff.--The Commission may appoint personnel as it 
        considers appropriate, subject to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service, and shall pay such personnel in accordance with the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        that title relating to classification and General Schedule pay 
        rates.
    (f) Funding.--Of any amounts appropriated for grants under title I 
of the Native American Housing Assistance and Self-Determination Act of 
1996, $500,000 shall be available to carry out this section.
    (g) Termination.--The Commission shall terminate upon the 
expiration of the 1-year period beginning upon the completion of the 
appointment of all the members of the Commission under subsection 
(b)(1).
                                 <all>