[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1776 Engrossed in House (EH)]
2d Session
H. R. 1776
_______________________________________________________________________
AN ACT
To expand homeownership in the United States.
106th CONGRESS
2d Session
H. R. 1776
_______________________________________________________________________
AN ACT
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 and Economic Opportunity Act of 2000''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.
TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
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. Extension of loan term for manufactured home lots.
Sec. 202. Downpayment simplification.
Sec. 203. Reduced downpayment requirements for loans for teachers and
uniformed municipal employees.
Sec. 204. Preventing fraud in rehabilitation loan program.
Sec. 205. Community partners next door program.
Sec. 206. Risk-sharing demonstration.
Sec. 207. Hybrid ARMs.
Sec. 208. Home equity conversion mortgages.
Sec. 209. Law enforcement officer homeownership pilot program.
Sec. 210. Study of mandatory inspection requirement under single family
housing mortgage insurance program.
Sec. 211. Report on title I home improvement loan program.
Sec. 212. Sense of the Congress regarding making properties available
for homeownership programs.
Sec. 213. Property improvement loan limit for single-family homes.
TITLE III--SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled
families.
Sec. 303. Funding for pilot programs.
TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Public services cap.
Sec. 404. Homeownership for municipal employees.
Sec. 405. Technical amendment relating to brownfields.
Sec. 406. Income eligibility.
Sec. 407. Housing opportunities for persons with AIDS.
Sec. 408. Prohibition on use of amounts to acquire church property.
Sec. 409. CDBG special purpose grants.
TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM
Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing
associations.
Sec. 503. Administrative costs.
Sec. 504. Leveraging affordable housing investment through local loan
pools.
Sec. 505. Homeownership for municipal employees.
Sec. 506. Use of section 8 assistance by ``grand-families'' to rent
dwelling units in assisted projects.
Sec. 507. Loan guarantees.
Sec. 508. Downpayment assistance for 2- and 3-family residences.
TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES
Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.
Sec. 602. Homeownership zones.
Sec. 603. Lease-to-own.
Sec. 604. Local capacity building.
Sec. 605. Consolidated application and planning requirement and super-
NOFA.
Sec. 606. Assistance for self-help housing providers.
Sec. 607. Housing counseling organizations.
Sec. 608. Community lead information centers and lead-safe housing.
Sec. 609. Grant eligibility of community organizations.
TITLE VII--NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A--Native American Housing
Sec. 701. Lands title report commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.
Subtitle B--Native Hawaiian Housing
Sec. 721. Short title.
Sec. 722. Findings.
Sec. 723. Housing assistance.
Sec. 724. Loan guarantees.
TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
NONPROFIT ORGANIZATIONS
Sec. 801. Transfer of unoccupied and substandard HUD-held housing to
local governments and community development
corporations.
Sec. 802. Transfer of HUD assets in revitalization areas.
TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
Sec. 901. Short title.
Sec. 902. Changes in amortization schedule.
Sec. 903. Deletion of ambiguous references to residential mortgages.
Sec. 904. Cancellation rights after cancellation date.
Sec. 905. Clarification of cancellation and termination issues and
lender paid mortgage insurance disclosure
requirements.
Sec. 906. Definitions.
TITLE X--RURAL HOUSING HOMEOWNERSHIP
Sec. 1001. Promissory note requirement under housing repair loan
program.
Sec. 1002. Limited partnership eligibility for farm labor housing
loans.
Sec. 1003. Project accounting records and practices.
Sec. 1004. Definition of rural area.
Sec. 1005. Operating assistance for migrant farmworkers projects.
Sec. 1006. Multifamily rental housing loan guarantee program.
Sec. 1007. Enforcement provisions.
Sec. 1008. Amendments to title 18 of United States Code.
TITLE XI--MANUFACTURED HOUSING IMPROVEMENT
Sec. 1101. Short title and references.
Sec. 1102. Findings and purposes.
Sec. 1103. Definitions.
Sec. 1104. Federal manufactured home construction and safety standards.
Sec. 1105. Abolishment of National Manufactured Home Advisory Council;
manufactured home installation.
Sec. 1106. Public information.
Sec. 1107. Research, testing, development, and training.
Sec. 1108. Prohibited acts.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.
TITLE XII--PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION PROGRAM
Sec. 1201. Eligible public housing agencies.
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;
(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; and
(4) each consumer should be afforded every reasonable
opportunity to access mortgage credit, to obtain the lowest
cost mortgages for which the consumer can qualify, to know the
true cost of the mortgage, to be free of regulatory burdens,
and to know what factors underlie a lender's decision regarding
the consumer's mortgage.
(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 and provide local
governments with increased flexibility under existing
Federal programs to facilitate homeownership.
TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
SEC. 101. SHORT TITLE.
This title may be cited as the ``Housing Affordability Barrier
Removal Act of 2000''.
SEC. 102. HOUSING IMPACT ANALYSIS.
(a) Applicability.--Except as provided in subsection (b), the
requirements of this section shall apply with respect to--
(1) any proposed rule, unless 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 housing
affordability; 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 agency promulgating the
rule--
(A) has certified that the rule will not, if given
force or effect, have a significant deleterious impact
on housing affordability; 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) Exception for Certain Banking Rules.--The requirements of this
section shall not apply to any proposed or final rule relating to--
(1) the operations, safety, or soundness of--
(A) federally insured depository institutions or
any affiliate of such an institution (as such term is
defined in section 2(k) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841(k));
(B) credit unions;
(C) the Federal home loan banks;
(D) the enterprises (as such term is defined in
section 1303 of the Housing and Community Development
Act of 1992 (12 U.S.C. 4502);
(E) a Farm Credit System institution; or
(F) foreign banks or their branches, agencies,
commercial lending companies, or representative offices
that operate in the United States, or any affiliate of
a foreign bank (as such terms are defined in section 1
of the International Banking Act of 1978 (12 U.S.C.
3101); or
(2) the payments system or the protection of deposit
insurance funds or the Farm Credit Insurance Fund.
(c) Statement of Proposed Rulemaking.--Whenever an agency publishes
general notice of proposed rulemaking for any proposed rule, unless the
agency has made a certification under subsection (a), 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 analyses, data, views, and
arguments, and any specific alternatives to the
proposed rule that--
(i) accomplish the stated objectives of the
applicable statutes, in a manner comparable to
the proposed rule;
(ii) result in costs to the Federal
Government equal to or less than the costs
resulting from the proposed rule; and
(iii) result in housing affordability
greater than the housing affordability
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 (d).
(d) Initial Housing Impact Analysis.--
(1) Requirements.--Each initial housing impact analysis
shall describe the impact of the proposed rule on housing
affordability. 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
increase the cost or reduce the supply of housing or
land for residential development; and
(D) an identification, to the extent practicable,
of all relevant Federal rules which may duplicate,
overlap, or conflict with the proposed rule.
(e) Proposal of Less Deleterious Alternative Rule.--
(1) Analysis.--The agency publishing a general notice of
proposed rulemaking shall review any specific analyses and
alternatives to the proposed rule which have been submitted to
the agency pursuant to subsection (c)(2) to determine whether
any alternative to the proposed rule--
(A) accomplishes the stated objectives of the
applicable statutes, in a manner comparable to the
proposed rule;
(B) results in costs to the Federal Government
equal to or less than the costs resulting from the
proposed rule; and
(C) results in housing affordability greater than
the housing affordability 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), unless the agency provides an explanation on the record
for the proposed rule as to why the alternative should not be
implemented, the agency shall incorporate the alternative into
the final rule or, at the agency's discretion, issue a new
proposed rule which incorporates the alternative.
(f) Final Housing Impact Analysis.--
(1) Requirement.--Whenever an agency promulgates a final
rule after publication of a general notice of proposed
rulemaking, unless the agency has made the certification under
subsection (a), 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 housing affordability 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.
(g) Avoidance of Duplicative or Unnecessary Analyses.--
(1) Duplication.--Any Federal agency may perform the
analyses required by subsections (d) and (f) in conjunction
with or as a part of any other agenda or analysis required by
any other law, executive order, directive, or rule 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 (d) and (f).
(h) Preparation of Analyses.--In complying with the provisions of
subsections (d) and (f), 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.
(i) Effect on Other Law.--The requirements of subsections (d) and
(f) do not alter in any manner standards otherwise applicable by law to
agency action.
(j) 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 (d) 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 (f). An agency head may
delay the completion of the requirements of subsection (f) 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
(f) impracticable. If the agency has not prepared a final
housing impact analysis pursuant to subsection (f) 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.
(k) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Housing affordability.--The term ``housing
affordability'' means the quantity of 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 increasing
consumers' cost of housing by more than $100,000,000 per year.
(l) Development.--Not later than 1 year after the date of the
enactment of this title, 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 define the primary elements
of a housing impact analysis to instruct other agencies on how to carry
out and develop the analyses required under subsections (a) and (d).
(m) Judicial Review.--
(1) Determination by agency.--Except as otherwise provided
in paragraph (2), any determination by an agency concerning the
applicability of any of the provisions of this title to any
action of the agency shall not be subject to judicial review.
(2) Other actions by agency.--Any housing impact analysis
prepared under subsection (d) or (f) and the compliance or
noncompliance of the agency with the provisions of this title
shall not be subject to judicial review. When an action for
judicial review of a rule is instituted, any housing impact
analysis for such rule shall constitute part of the whole
record of agency action in connection with the review.
(3) Exception.--Nothing in this subsection bars judicial
review of any other impact statement or similar analysis
required by any other law if judicial review of such statement
or analysis is otherwise provided by law.
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 2001 and such
sums as may be necessary for each of fiscal years 2002, 2003, 2004, and
2005.''.
(b) Consolidation of State and Local Grants.--Subsection (b) of
section 1204 of the Housing and Community Development Act of 1992 (42
U.S.C. 12705c(b)) is amended--
(1) in the subsection heading, by striking ``State Grants''
and inserting ``Grant Authority'';
(2) in the matter preceding paragraph (1), by inserting
after ``States'' the following: ``and units of general local
government (including consortia of such governments)'';
(3) in paragraph (3), by striking ``a State program to
reduce State and local'' and inserting ``State, local, or
regional programs to reduce'';
(4) in paragraph (4), by inserting ``or local'' after
``State''; and
(5) in paragraph (5), by striking ``State''.
(c) Repeal of Local Grants Provision.--Section 1204 of the Housing
and Community Development Act of 1992 (42 U.S.C. 12705c) is amended by
striking subsection (c).
(d) 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--
(1) by striking ``and for the selection of units of general
local government to receive grants under subsection (f)(2)'';
and
(2) 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''.
(e) Selection of Grantees.--Subsection (f) of section 1204 of the
Housing and Community Development Act of 1992 (42 U.S.C. 12705c(f)) is
amended to read as follows:
``(f) Selection of Grantees.--To the extent amounts are made
available to carry out this section, the Secretary shall provide grants
on a competitive basis to eligible grantees based on the proposed uses
of such amounts, as provided in applications under subsection (e).''.
(f) 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.
(a) In General.--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''.
(b) Rule of Construction.--The amendment made by subsection (a) may
not be construed to create any new private right of action.
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 Housing Affordability Barrier Removal Act of 2000)
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. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME LOTS.
Section 2(b)(3)(E) of the National Housing Act (12 U.S.C.
1703(b)(3)(E)) is amended by striking ``fifteen'' and inserting
``twenty''.
SEC. 202. DOWNPAYMENT SIMPLIFICATION.
(a) In General.--Section 203(b) of the National Housing Act (12
U.S.C. 1709(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by realigning the matter
that precedes clause (ii) an additional 2 ems from the
left margin;
(B) in the matter that follows subparagraph
(B)(iii)--
(i) by striking the sixth sentence
(relating to the increases for costs of solar
energy systems) and all that follows through
the end of the penultimate undesignated
paragraph; and
(ii) by striking the second and third
sentences of such matter; and
(C) by striking subparagraph (B);
(2) by transferring and inserting subparagraph (A) of
paragraph (10) after subparagraph (A) of paragraph (2) and
amending such subparagraph by striking all of the matter that
precedes clause (i) and inserting the following:
``(B) not to exceed an amount equal to the sum of--
'';
(3) by transferring and inserting the last undesignated
paragraph of paragraph (2) (relating to disclosure notice)
after subsection (e), realigning such transferred paragraph so
as to be flush with the left margin, and amending such
transferred paragraph by inserting ``(f) Disclosure of Other
Mortgage Products.--'' before ``In conjunction'';
(4) by transferring and inserting the sentence that
constitutes the text of paragraph (10)(B) after the period at
the end of the first sentence that follows subparagraph (B)
(relating to the definition of ``area''); and
(5) by striking paragraph (10) (as amended by the preceding
provisions this section).
(b) Conforming Amendments.--Section 245 of the National Housing Act
(12 U.S.C. 1715z-10) is amended--
(1) in subsection (a), by striking ``, or if the
mortgagor'' and all that follows through ``case of veterans'';
and
(2) in subsection (b)(3), by striking ``, or, if the'' and
all that follows through ``for veterans,''.
SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND
UNIFORMED MUNICIPAL EMPLOYEES.
(a) In General.--Section 203(b) of the National Housing Act (12
U.S.C. 1709(b)), as amended by section 202 of this Act, is further
amended by adding at the end the following new paragraph:
``(10) Reduced downpayment requirements for teachers and
uniformed municipal employees.--
``(A) In general.--Notwithstanding paragraph (2),
in the case of a mortgage described in subparagraph
(B)--
``(i) the mortgage shall involve a
principal obligation in an amount that does not
exceed the sum of 99 percent of the appraised
value of the property and the total amount of
initial service charges, appraisal, inspection,
and other fees (as the Secretary shall approve)
paid in connection with the mortgage;
``(ii) no other provision of this
subsection limiting the principal obligation of
the mortgage based upon a percentage of the
appraised value of the property subject to the
mortgage shall apply; and
``(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply and
the mortgage shall be executed by a mortgagor
who shall have paid on account of the property
at least 1 percent of the cost of acquisition
(as determined by the Secretary) in cash or its
equivalent.
``(B) Mortgages covered.--A mortgage described in
this subparagraph is a mortgage--
``(i) under which the mortgagor is an
individual who--
``(I) is employed on a full-time
basis as: (aa) a teacher or
administrator in a public or private
school that provides elementary or
secondary education, as determined
under State law, except that elementary
education shall include pre-
Kindergarten education, and except that
secondary education shall not include
any education beyond grade 12; or (bb)
a public safety officer (as such term
is defined in section 1204 of the
Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796b), except
that such term shall not include any
officer serving a public agency of the
Federal Government); and
``(II) has not, during the 12-month
period ending upon the insurance of the
mortgage, had any present ownership
interest in a principal residence
located in the jurisdiction described
in clause (ii); and
``(ii) made for a property that is located
within the jurisdiction of--
``(I) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(aa), the local educational
agency (as such term is defined in
section 14101 of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 8801)) for the school in which
the mortgagor is employed (or, in the
case of a mortgagor employed in a
private school, the local educational
agency having jurisdiction for the area
in which the private school is
located); or
``(II) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(bb), the jurisdiction served by
the public law enforcement agency,
firefighting agency, or rescue or
ambulance agency that employs the
mortgagor.''.
(b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of
the National Housing Act (12 U.S.C. 1709(c)(2)) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``Notwithstanding'' and inserting ``Except as
provided in paragraph (3) and notwithstanding''; and
(2) by adding at the end the following new paragraph:
``(3) Deferral and reduction of up-front premium.--In the case of
any mortgage described in subsection (b)(10)(B):
``(A) Paragraph (2)(A) of this subsection (relating to
collection of up-front premium payments) shall not apply.
``(B) If, at any time during the 5-year period beginning on
the date of the insurance of the mortgage, the mortgagor ceases
to be employed as described in subsection (b)(10)(B)(i)(I) or
pays the principal obligation of the mortgage in full, the
Secretary shall at such time collect a single premium payment
in an amount equal to the amount of the single premium payment
that, but for this paragraph, would have been required under
paragraph (2)(A) of this subsection with respect to the
mortgage, as reduced by 20 percent of such amount for each
successive 12-month period completed during such 5-year period
before such cessation or prepayment occurs.''.
SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN PROGRAM.
(a) In General.--Section 203(k) of the National Housing Act (12
U.S.C. 1709(k)) is amended by adding at the end the following new
paragraph:
``(7) Prevention of fraud.--To prevent fraud under the program for
loan insurance authorized under this subsection, the Secretary shall,
by regulation, take the following actions:
``(A) Prohibition of identity of interest.--The Secretary
shall prohibit any identity-of-interest, as such term is
defined by the Secretary, between any of the following parties
involved in a loan insured under this subsection: the borrower
(including, in the case of a borrower that is a nonprofit
organization, any member of the board of directors or the staff
of the organization), the lender, any consultant, any real
estate agent, any property inspector, and any appraiser.
Nothing in this subparagraph may be construed to prohibit or
restrict, or authorize the Secretary to prohibit or restrict,
the functioning of a affiliated business arrangement that
complies with the requirements under section 8(c)(4) of the
Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
2607(c)(4)).
``(B) Nonprofit participation.--The Secretary shall
establish minimum standards for a nonprofit organization to
participate in the program, which shall include--
``(i) requiring such an organization to disclose to
the Secretary its taxpayer identification number and
evidence sufficient to indicate that the organization
is an organization described in section 501(c) of the
Internal Revenue Code of 1986 that is exempt from
taxation under subtitle A of such Code;
``(ii) requiring that the board of directors of
such an organization be comprised only of individuals
who do not receive any compensation or other thing of
value by reason of their service on the board and who
have no personal financial interest in the
rehabilitation project of the organization that is
financed with the loan insured under this subsection;
``(iii) requiring such an organization to submit to
the Secretary financial statements of the organization
for the most recent 2 years, which have been prepared
by a party that is unaffiliated with the organization
and is qualified to prepare financial statements;
``(iv) limiting to 10 the number of loans that are
insured under this subsection, made to any single such
organization, and, at any one time, have an outstanding
balance of principal or interest, except that the
Secretary may increase such numerical limitation on a
case-by-case basis for good cause shown; and
``(v) requiring such an organization to have been
certified by the Secretary as meeting the requirements
under this subsection and otherwise eligible to
participate in the program not more than 2 years before
obtaining a loan insured under this section.
``(C) Completion of work.--The Secretary shall prohibit any
lender making a loan insured under this subsection from
disbursing the final payment of loan proceeds unless the lender
has received affirmation, from the borrower under the loan,
both in writing and pursuant to an interview in person or over
the telephone, that the rehabilitation activities financed by
the loan have been satisfactorily completed.
``(D) Consultant standards.--The Secretary shall require
that any consultant, as such term is defined by the Secretary,
who is involved in a home inspection, site visit, or
preparation of bids with respect to any loan insured under this
section shall meet such standards established by the Secretary
to ensure accurate inspections and preparation of bids.
``(E) Contractor qualification.--The Secretary shall
require, in the case of any loan that is insured under this
subsection and involves rehabilitation with a cost of $25,000
or more, that the contractor or other person performing or
supervising the rehabilitation activities financed by the loan
shall--
``(i) be certified by a nationally recognized
organization as meeting industry standards for quality
of workmanship, training, and continuing education,
including financial management;
``(ii) be licensed to conduct such activities by
the State or unit of general local government in which
the rehabilitation activities are being completed; or
``(iii) be bonded or provide such equivalent
protection, as the Secretary may require.''.
(b) Report on Activity of Nonprofit Organizations Under Program.--
Not later than 60 days after the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a report to the
Congress regarding the participation of nonprofit organizations under
the rehabilitation loan program under section 203(k) of the National
Housing Act (12 U.S.C. 1709(k)). The report shall--
(1) determine and describe the extent of participation in
the program by such organizations;
(2) identify and compare the default and claim rates for
loans made under the program to nonprofit organizations and to
owner-occupier participants;
(3) analyze the impact, on such organizations and the
program, of prohibiting such organizations from participating
in the program; and
(4) identify other opportunities for such organizations to
acquire financing or credit enhancement for rehabilitation
activities.
(c) Regulations.--The Secretary of Housing and Urban Development
shall issue final regulations and any other administrative orders or
notices necessary to carry out the provisions of this section and the
amendments made by this section not later than 120 days after the date
of the enactment of this Act.
SEC. 205. COMMUNITY PARTNERS NEXT DOOR PROGRAM.
(a) Short Title.--This section may be cited as the ``Community
Partners Next Door Act''.
(b) Congressional Findings.--The Congress finds that--
(1) teachers, law enforcement officers, fire fighters, and
rescue personnel help form the backbones of communities and are
integral components in the social capital of neighborhoods in
the United States; and
(2) providing a discounted purchase price on HUD-owned
properties for teachers, law enforcement officers, fire
fighters, and rescue personnel recognizes the intrinsic value
of the services provided by such employees to their communities
and to family life and encourages and rewards those who are
dedicated to providing public service in our most needy
communities.
(c) Discount and Downpayment Assistance for Teachers.--Section
204(h) of the National Housing Act (12 U.S.C. 1710(h)) is amended--
(1) by redesignating paragraphs (7) through (10) as
paragraphs (8) through (11), respectively; and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) 50 percent discount for teachers and public safety
officers purchasing properties that are eligible assets.--
``(A) Discount.--A property that is an eligible
asset and is sold, during fiscal years 2000 through
2004, to a teacher or public safety officer for use in
accordance with subparagraph (B) shall be sold at a
price that is equal to 50 percent of the appraised
value of the eligible property (as determined in
accordance with paragraph (6)(B)). In the case of a
property eligible for both a discount under this
paragraph and a discount under paragraph (6), the
discount under paragraph (6) shall not apply.
``(B) Primary residence.--An eligible property sold
pursuant to a discount under this paragraph shall be
used, for not less than the 3-year period beginning
upon such sale, as the primary residence of a teacher
or public safety officer.
``(C) Sale methods.--The Secretary may sell an
eligible property pursuant to a discount under this
paragraph--
``(i) to a unit of general local government
or nonprofit organization (pursuant to
paragraph (4) or otherwise), for resale or
transfer to a teacher or public safety officer;
or
``(ii) directly to a purchaser who is a
teacher or public safety officer.
``(D) Resale.--In the case of any purchase by a
unit of general local government or nonprofit
organization of an eligible property sold at a
discounted price under this paragraph, the sale
agreement under paragraph (8) shall--
``(i) require the purchasing unit of
general local government or nonprofit
organization to provide the full benefit of the
discount to the teacher or public safety
officer obtaining the property; and
``(ii) in the case of a purchase involving
multiple eligible assets, any of which is such
an eligible property, designate the specific
eligible property or properties to be subject
to the requirements of subparagraph (B).
``(E) Mortgage downpayment assistance.--If a
teacher or public safety officer purchases an eligible
property pursuant to a discounted sale price under this
paragraph and finances such purchase through a mortgage
insured under this title, notwithstanding any provision
of section 203 the downpayment on such mortgage shall
be $100.
``(F) Prevention of undue profit.--The Secretary
shall issue regulations to prevent undue profit from
the resale of eligible properties in violation of the
requirement under subparagraph (B).
``(G) Definitions.--For the purposes of this
paragraph, the following definitions shall apply:
``(i) The terms `elementary school' and
`secondary school' have the meanings given such
terms in section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
8801), except that, for purposes of this
paragraph, elementary education (as used in
such section) shall include pre-Kindergarten
education.
``(ii) The term `eligible property' means
an eligible asset described in paragraph (2)(A)
of this subsection.
``(iii) The term `public safety officer'
means an individual who is employed on a full-
time basis as a public safety officer described
in section 203(b)(10)(B)(i)(I)(bb).
``(iv) The term `teacher' means an
individual who is employed on a full-time
basis, in an elementary or secondary school, as
a State-certified or State-licensed classroom
teacher or as an administrator.''.
(d) Conforming Amendments.--Section 204(h) of the National Housing
Act (12 U.S.C. 1710(h)) is amended--
(1) in paragraph (4)(B)(ii), by striking ``paragraph (7)''
and inserting ``paragraph (8)'';
(2) in paragraph (5)(B)(i), by striking ``paragraph (7)''
and inserting ``paragraph (8)''; and
(3) in paragraph (6)(A), by striking ``paragraph (8)'' and
inserting ``paragraph (9)''.
(e) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary shall issue regulations to
implement the amendments made by this section.
SEC. 206. RISK-SHARING DEMONSTRATION.
Section 249 of the National Housing Act (12 U.S.C. 1715z-14) is
amended--
(1) by striking the section heading and inserting the
following:
``risk-sharing demonstration'';
(2) by striking ``reinsurance'' each place such term
appears and insert ``risk-sharing'';
(3) in subsection (a)--
(A) in the first sentence, by inserting ``and
insured community development financial institutions''
after ``private mortgage insurers''; and
(B) in the second sentence--
(i) by striking ``two'' and inserting
``4''; and
(ii) by striking ``March 15, 1988'' and
inserting ``the expiration of the 5-year period
beginning on the date of the enactment of the
American Homeownership and Economic Opportunity
Act of 2000'';
(4) in subsection (b)--
(A) in the first sentence, by inserting ``and with
insured community development financial institutions''
before the period at the end;
(B) in the first sentence, by striking ``which have
been determined to be qualified insurers under section
302(b)(2)(C)'';
(C) in the second sentence, by inserting ``and
insured community development financial institutions''
after ``private mortgage insurance companies'';
(D) by striking paragraph (1) and inserting the
following new paragraph:
``(1) assume the first loss on any mortgage insured
pursuant to section 203(b), 234, or 245 that covers a one- to
four-family dwelling and is included in the program under this
section, up to the percentage of loss that is set forth in the
risk-sharing contract;''; and
(E) in paragraph (2)--
(i) by striking ``carry out (under
appropriate delegation) such'' and inserting
``delegate underwriting,''; and
(ii) by striking ``function'' and inserting
``functions'';
(5) in subsection (c)--
(A) in the first sentence--
(i) by striking ``of'' the first place it
appears and insert ``for'';
(ii) by striking ``insurance reserves'' and
inserting ``loss reserves''; and
(iii) by striking ``such insurance'' and
inserting ``such reserves''; and
(B) in the second sentence, by inserting ``or
insured community development financial institution''
after ``private mortgage insurance company'';
(6) in subsection (d), by inserting ``or insured community
development financial institution'' after ``private mortgage
insurance company''; and
(7) by adding at the end the following new subsection:
``(e) Insured Community Development Financial Institutions.--For
purposes of this section, the term `insured community development
financial institution' means a community development financial
institution, as such term is defined in section 103 of Reigle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)
that is an insured depository institution (as such term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an
insured credit union (as such term is defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752)).''.
SEC. 207. HYBRID ARMS.
(a) In General.--Section 251 of the National Housing Act (12 U.S.C.
1715z-16) is amended--
(1) in subsection (a), by inserting ``In General.--'' after
``(a)'';
(2) by striking subsection (b) and inserting the following
new subsection:
``(b) Disclosure.--In the case of any loan application for a
mortgage to be insured under any provision of this section, the
Secretary shall require that the prospective mortgagee for the mortgage
shall, at the time of loan application, make available to the
prospective mortgagor a written explanation of the features of an
adjustable rate mortgage consistent with the disclosure requirements
applicable to variable rate mortgages secured by a principal dwelling
under the Truth in Lending Act (15 U.S.C. 1601 et seq.).'';
(3) in subsection (c), by inserting ``Limitation on
Insurance Authority.--'' after ``(c)''; and
(4) by adding at the end the following new subsection:
``(d) Hybrid ARMs.--The Secretary may insure under this subsection
a mortgage that--
``(1) has an effective rate of interest that shall be--
``(A) fixed for a period of not less than the first
3 years of the mortgage term;
``(B) initially adjusted by the mortgagee upon the
expiration of such period and annually thereafter; and
``(C) in the case of the initial interest rate
adjustment, shall be subject to the limitation under
clause (2) of the last sentence of subsection (a)
(relating to prohibiting annual increases of more than
1 percent) only if the interest rate remains fixed for
5 or fewer years; and
``(2) otherwise meets the requirements for insurance under
subsection (a) that are not inconsistent with the requirements
under paragraph (1) of this subsection.''.
(b) Implementation.--The Secretary of Housing and Urban Development
may implement section 251(d) of the National Housing Act (12 U.S.C.
1715z-16(d)), as added by subsection (a) of this section, in advance of
rulemaking.
SEC. 208. HOME EQUITY CONVERSION MORTGAGES.
(a) Insurance for Mortgages to Refinance Existing HECMs.--
(1) In General.--Section 255 of the National Housing Act
(12 U.S.C. 1715z-20) is amended--
(A) by redesignating subsection (k) as subsection
(m); and
(B) by inserting after subsection (j) the following
new subsection:
``(k) Insurance Authority for Refinancings.--
``(1) In general.--The Secretary may, upon application by a
mortgagee, insure under this subsection any mortgage given to
refinance an existing home equity conversion mortgage insured
under this section.
``(2) Anti-churning disclosure.--The Secretary shall, by
regulation, require that the mortgagee of a mortgage insured
under this subsection, provide to the mortgagor, within an
appropriate time period and in a manner established in such
regulations, a good faith estimate of: (A) the total cost of
the refinancing; and (B) the increase in the mortgagor's
principal limit as measured by the estimated initial principal
limit on the mortgage to be insured under this subsection less
the current principal limit on the home equity conversion
mortgage that is being refinanced and insured under this
subsection.
``(3) Waiver of counseling requirement.--The mortgagor
under a mortgage insured under this subsection may waive the
applicability, with respect to such mortgage, of the
requirements under subsection (d)(2)(B) (relating to third
party counseling), but only if--
``(A) the mortgagor has received the disclosure
required under paragraph (2);
``(B) the increase in the principal limit described
in paragraph (2) exceeds the amount of the total cost
of refinancing (as described in such paragraph) by an
amount to be determined by the Secretary; and
``(C) the time between the closing of the original
home equity conversion mortgage that is refinanced
through the mortgage insured under this subsection and
the application for a refinancing mortgage insured
under this subsection does not exceed 5 years.
``(4) Credit for premiums paid.--Notwithstanding section
203(c)(2)(A), the Secretary may reduce the amount of the single
premium payment otherwise collected under such section at the
time of the insurance of a mortgage refinanced and insured
under this subsection. The amount of the single premium for
mortgages refinanced under this subsection shall be determined
by the Secretary based on the actuarial study required under
paragraph (5).
``(5) Actuarial study.--Not later than 180 days after the
date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall conduct
an actuarial analysis to determine the adequacy of the
insurance premiums collected under the program under this
subsection with respect to--
``(A) a reduction in the single premium payment
collected at the time of the insurance of a mortgage
refinanced and insured under this subsection;
``(B) the establishment of a single national limit
on the benefits of insurance under subsection (g)
(relating to limitation on insurance authority); and
``(C) the combined effect of reduced insurance
premiums and a single national limitation on insurance
authority.
``(6) Fees.--The Secretary may establish a limit on the
origination fee that may be charged to a mortgagor under a
mortgage insured under this subsection, except that such
limitation shall provide that the origination fee may be fully
financed with the mortgage and shall include any fees paid to
correspondent mortgagees approved by the Secretary. The
Secretary shall prohibit the charging of any broker fees in
connection with mortgages insured under this subsection.''.
(2) Regulations.--The Secretary shall issue any final
regulations necessary to implement the amendments made by
paragraph (1) of this subsection, which shall take effect not
later than the expiration of the 180-day period beginning on
the date of the enactment of this Act. The regulations shall be
issued after notice and opportunity for public comment in
accordance with the procedure under section 553 of title 5,
United States Code, applicable to substantive rules
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
section).
(b) Housing Cooperatives.--Section 255(b) of the National Housing
Act (12 U.S.C. 1715z-20(b)) is amended--
(1) in paragraph (2), by striking ```mortgage',''; and
(2) by adding at the end the following new paragraphs:
``(4) Mortgage.--The term `mortgage' means a first mortgage
or first lien on real estate, in fee simple, on all stock
allocated to a dwelling in a residential cooperative housing
corporation, or on a leasehold--
``(A) under a lease for not less than 99 years that
is renewable; or
``(B) under a lease having a period of not less
than 10 years to run beyond the maturity date of the
mortgage.
``(5) First mortgage.--The term `first mortgage' means such
classes of first liens as are commonly given to secure advances
on, or the unpaid purchase price of, real estate or all stock
allocated to a dwelling unit in a residential cooperative
housing corporation, under the laws of the State in which the
real estate or dwelling unit is located, together with the
credit instruments, if any, secured thereby.''.
(c) Waiver of Up-Front Premiums for Mortgages Used for Costs of
Long-Term Care Insurance or Health Care.--Section 255 of the National
Housing Act (12 U.S.C. 1715z-20) is amended by inserting after
subsection (k) (as added by subsection (a) of this section) the
following new subsection:
``(l) Waiver of Up-Front Premiums.--
``(1) Mortgages to fund long-term care insurance.--In the
case of any mortgage insured under this section under which the
total amount (except as provided in paragraph (3)) of all
future payments described in subsection (b)(3) will be used
only for costs of a qualified long-term care insurance contract
(as such term is defined in section 7702B of the Internal
Revenue Code of 1986 (26 U.S.C. 7702B)) that covers the
mortgagor or members of the household residing in the property
that is subject to the mortgage, notwithstanding section
203(c)(2), the Secretary shall not charge or collect the single
premium payment otherwise required under subparagraph (A) of
such section to be paid at the time of insurance.
``(2) Mortgages to fund health care costs.--In the case of
any mortgage insured under this section under which the future
payments described in subsection (b)(3) will be used only for
costs for health care services (as such term is defined by the
Secretary) for the mortgagor or members of the household
residing in the property that is subject to the mortgage and
comply with limitations on such payments, as shall be
established by the Secretary and based upon the purposes of
this subsection and the accumulated equity of the mortgagor in
the property, notwithstanding section 203(c)(2), the Secretary
shall not charge or collect the single premium payment
otherwise required under subparagraph (A) of such section to be
paid at the time of insurance.
``(3) Authority to refinance existing mortgage and finance
closing costs.--A mortgage described in paragraph (1) or (2)
may provide financing of amounts that are used to satisfy
outstanding mortgage obligations (in accordance with such
limitations as the Secretary shall prescribe) any amounts used
for initial service charges, appraisal, inspection, and other
fees (as approved by the Secretary) in connection with such
mortgage, and the amount of future payments described in
subsection (b)(3) under the mortgage shall be reduced
accordingly.''.
(d) Study of Single National Mortgage Limit.--The Secretary of
Housing and Urban Development shall conduct an actuarially based study
of the effects of establishing, for mortgages insured under section 255
of the National Housing Act (12 U.S.C. 1715z-20), a single maximum
mortgage amount limitation in lieu of applicability of section
203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The study shall--
(1) examine the effects of establishing such limitation at
different dollar amounts; and
(2) examine the effects of such various limitations on--
(A) the risks to the General Insurance Fund
established under section 519 of such Act;
(B) the mortgage insurance premiums that would be
required to be charged to mortgagors to ensure
actuarial soundness of such Fund; and
(C) take into consideration the various approaches
to providing credit to borrowers who refinance home
equity conversion mortgages insured under section 255
of such Act.
Not later than 180 days after the date of the enactment of this Act,
the Secretary shall complete the study under this subsection and submit
a report describing the study and the results of the study to the
Committee on Banking and Financial Services of the House of
Representatives and to the Committee on Banking, Housing, and Urban
Affairs of the Senate.
SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT PROGRAM.
(a) Assistance for Law Enforcement Officers.--The Secretary of
Housing and Urban Development shall carry out a pilot program in
accordance with this section to assist Federal, State, and local law
enforcement officers purchasing homes in locally-designated high-crime
areas.
(b) Eligibility.--To be eligible for assistance under this section,
a law enforcement officer shall--
(1) have completed not less than 6 months of service as a
law enforcement officer as of the date that the law enforcement
officer applies for such assistance; and
(2) agree, in writing, to use the residence purchased with
such assistance as the primary residence of the law enforcement
officer for not less than 3 years after the date of purchase.
(c) Mortgage Assistance.--If a law enforcement officer purchases a
home in locally-designated high-crime area and finances such purchase
through a mortgage insured under title II of the National Housing Act
(12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203
or any other provision of the National Housing Act, the following shall
apply:
(1) Downpayment.--
(A) In general.--There shall be no downpayment
required if the purchase price of the property is not
more than the reasonable value of the property, as
determined by the Secretary.
(B) Purchase price exceeds value.--If the purchase
price of the property exceeds the reasonable value of
the property, as determined by the Secretary, the
required downpayment shall be the difference between
such reasonable value and the purchase price.
(2) Closing costs.--The closing costs and origination fee
for such mortgage may be included in the loan amount.
(3) Insurance premium payment.--There shall be one
insurance premium payment due on the mortgage. Such insurance
premium payment--
(A) shall be equal to 1 percent of the loan amount;
(B) shall be due and considered earned by the
Secretary at the time of the loan closing; and
(C) may be included in the loan amount and paid
from the loan proceeds.
(d) Locally-Designated High-Crime Area.--
(1) In general.--Any unit of local government may request
that the Secretary designate any area within the jurisdiction
of that unit of local government as a locally-designated high-
crime area for purposes of this section if the proposed area--
(A) has a crime rate that is significantly higher
than the crime rate of the non-designated area that is
within the jurisdiction of the unit of local
government; and
(B) has a population that is not more than 25
percent of the total population of area within the
jurisdiction of the unit of local government.
(2) Deadline for consideration of request.--Not later than
60 days after receiving a request under paragraph (1), the
Secretary shall approve or disapprove the request.
(e) Law Enforcement Officer.--For purposes of this section, the
term ``law enforcement officer'' has such meaning as the Secretary
shall provide, except that such term shall include any individual who
is employed as an officer in a correctional institution.
(f) Sunset.--The Secretary shall not approve any application for
assistance under this section that is received by the Secretary after
the expiration of the 3-year period beginning on the date that the
Secretary first makes available assistance under the pilot program
under this section.
SEC. 210. STUDY OF MANDATORY INSPECTION REQUIREMENT UNDER SINGLE FAMILY
HOUSING MORTGAGE INSURANCE PROGRAM.
(a) Study.--The Comptroller General of the United States shall
conduct a study regarding the inspection of properties purchased with
loans insured under section 203 of the National Housing Act. The study
shall evaluate the following issues:
(1) The feasibility of requiring inspections of all
properties purchased with loans insured under such section.
(2) The level of financial losses or savings to the Mutual
Mortgage Insurance Fund that are likely to occur if inspections
are required on properties purchased with loans insured under
such section.
(3) The potential impact on the process of buying a home if
inspections of properties purchased with loans insured under
such section are required, including the process of buying a
home in underserved areas where losses to the Mutual Mortgage
Insurance Fund are greatest.
(4) The difference, if any, in the quality of homes
purchased with loans insured under such section that are
inspected before purchase and such homes that are not inspected
before purchase.
(5) The cost to homebuyers of requiring inspections before
purchase of properties with loans insured under such section.
(6) The extent, if any, to which requiring inspections of
properties purchased with loans insured under such section will
result in adverse selection of loans insured under such
section.
(7) The extent of homebuyer knowledge regarding property
inspections and the extent to which such knowledge affects the
decision of homebuyers to opt for or against having a property
inspection before purchasing a home.
(8) The impact of the Homebuyer Protection Plan implemented
by the Department of Housing and Urban Development on the
number of appraisers authorized to appraise homes with
mortgages insured under section 203 of the National Housing
Act.
(9) The cost to homebuyers incurred as a result of the
Homebuyer Protection plan, taking into consideration, among
other factors, an increase in appraisal fees.
(10) The benefit or adverse impact of the Homebuyer
Protection Plan on minority homebuyers.
(11) The extent to which the appraisal requirements of the
Homebuyer Protection Plan conflict with State laws regarding
appraisals and home inspections.
(b) Report.--Not later than the expiration of the 1-year period
beginning on the date of the enactment of this Act, the Comptroller
General shall submit to the Congress a report containing the results of
the study and any recommendations with respect to the issues specified
under this section.
SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN PROGRAM.
(a) In General.--Not later than 3 months after the date of the
enactment of this Act, the Secretary of Housing and Urban Development
shall submit a report to the Congress containing recommendations for
improvements to the property improvement loan insurance program under
title I of the National Housing Act, including improvements designed to
address problems relating to home improvement contractors obtaining
loans on behalf of homeowners.
(b) Consultation.--In developing and determining recommendations
for inclusion in the report under this section and in preparing the
report, the Secretary shall consult with interested persons,
organizations, and entities, including representatives of the lending
industry, the home improvement industry, and consumer organizations.
SEC. 212. SENSE OF THE CONGRESS REGARDING MAKING PROPERTIES AVAILABLE
FOR HOMEOWNERSHIP PROGRAMS.
It is the sense of the Congress that the Secretary of Housing and
Urban Development should consult with the heads of other agencies of
the Federal Government that own or hold properties appropriate for use
as housing to determine the possibility and effectiveness of including
such properties in programs that make housing available for law
enforcement officers, teachers, or fire fighters.
SEC. 213. PROPERTY IMPROVEMENT LOAN LIMIT FOR SINGLE-FAMILY HOMES.
Section 2(b)(1)(A)(i) of the National Housing Act (12 U.S.C.
1703(b)(1)(A)(i)) is amended by striking ``$25,000'' and inserting
``$32,500''.
TITLE III--SECTION 8 HOMEOWNERSHIP OPTION
SEC. 301. DOWNPAYMENT ASSISTANCE.
(a) Amendments.--Section 8(y) of the United States Housing Act of
1937 (42 U.S.C. 1437f(y)) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) 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 for fiscal year 2000 and each
fiscal year thereafter to the extent provided in
advance in appropriations Acts.
``(B) Amount.--The amount of a downpayment grant on
behalf of an assisted family may not exceed the amount
that is equal to 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.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect immediately after the amendments made by section 555(c) of
the Quality Housing and Work Responsibility Act of 1998 take effect
pursuant to such section.
SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR DISABLED
FAMILIES.
(a) In General.--A public housing agency providing tenant-based
assistance on behalf of an eligible family under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) may provide
assistance for a disabled family that purchases a dwelling unit
(including a dwelling unit under a lease-purchase agreement) that will
be owned by one or more members of the disabled family and will be
occupied by the disabled family, if the disabled family--
(1) purchases the dwelling unit before the expiration of
the 3-year period beginning on the date that the Secretary
first implements the pilot program under this section;
(2) demonstrates that the disabled family has income from
employment or other sources (including public assistance), as
determined in accordance with requirements of the Secretary,
that is not less than twice the payment standard established by
the public housing agency (or such other amount as may be
established by the Secretary);
(3) except as provided by the Secretary, demonstrates at
the time the disabled family initially receives tenant-based
assistance under this section that one or more adult members of
the disabled family have achieved employment for the period as
the Secretary shall require;
(4) participates in a homeownership and housing counseling
program provided by the agency; and
(5) meets any other initial or continuing requirements
established by the public housing agency in accordance with
requirements established by the Secretary.
(b) Determination of Amount of Assistance.--
(1) In general.--
(A) Monthly expenses not exceeding 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 disabled family.
(ii) 10 percent of the monthly income of
the disabled family.
(iii) If the disabled 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 disabled family, is specifically
designated by that agency to meet the housing
costs of the disabled 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
amounts under clauses (i), (ii), and (iii) of
subparagraph (A).
(2) Calculation of amount.--
(A) Low-income families.--A disabled family that is
a low-income family shall be eligible to receive 100
percent of the amount calculated under paragraph (1).
(B) Income between 81 and 89 percent of median.--A
disabled family whose income is between 81 and 89
percent of the median for the area shall be eligible to
receive 66 percent of the amount calculated under
paragraph (1).
(C) Income between 90 and 99 percent of median.--A
disabled family whose income is between 90 and 99
percent of the median for the area shall be eligible to
receive 33 percent of the amount calculated under
paragraph (1).
(D) Income more than 99 percent of median.--A
disabled family whose income is more than 99 percent of
the median for the area shall not be eligible to
receive assistance under this section.
(c) Inspections and Contract Conditions.--
(1) In general.--Each contract for the purchase of a
dwelling unit to be assisted under this section shall--
(A) provide for pre-purchase inspection of the
dwelling unit by an independent professional; and
(B) require that any cost of necessary repairs be
paid by the seller.
(2) Annual inspections not required.--The requirement under
subsection (o)(8)(A)(ii) of section 8 of the United States
Housing Act of 1937 for annual inspections shall not apply to
dwelling units assisted under this section.
(d) Other Authority of the Secretary.--The Secretary may--
(1) limit the term of assistance for a disabled family
assisted under this section;
(2) provide assistance for a disabled family for the entire
term of a mortgage for a dwelling unit if the disabled family
remains eligible for such assistance for such term; and
(3) modify the requirements of this section as the
Secretary determines to be necessary to make appropriate
adaptations for lease-purchase agreements.
(e) Assistance Payments Sent to Lender.--The Secretary shall remit
assistance payments under this section directly to the mortgagee of the
dwelling unit purchased by the disabled family receiving such
assistance payments.
(f) Inapplicability of Certain Provisions.--Assistance under this
section shall not be subject to the requirements of the following
provisions:
(1) Subsection (c)(3)(B) of section 8 of the United States
Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the United
States Housing Act of 1937.
(3) Any other provisions of section 8 of the United States
Housing Act of 1937 governing maximum amounts payable to owners
and amounts payable by assisted families.
(4) Any other provisions of section 8 of the United States
Housing Act of 1937 concerning contracts between public housing
agencies and owners.
(5) Any other provisions of the United States Housing Act
of 1937 that are inconsistent with the provisions of this
section.
(g) Reversion to Rental Status.--
(1) Non-fha mortgages.--If a disabled family receiving
assistance under this section defaults under a mortgage not
insured under the National Housing Act, the disabled family may
not continue to receive rental assistance under section 8 of
the United States Housing Act of 1937 unless it complies with
requirements established by the Secretary.
(2) All mortgages.--A disabled family receiving assistance
under this section that defaults under a mortgage may not
receive assistance under this section for occupancy of another
dwelling unit owned by 1 or more members of the disabled
family.
(3) Exception.--This subsection shall not apply if the
Secretary determines that the disabled family receiving
assistance under this section defaulted under a mortgage due to
catastrophic medical reasons or due to the impact of a
federally declared major disaster or emergency.
(h) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary shall issue regulations to
implement this section. Such regulations may not prohibit any public
housing agency providing tenant-based assistance on behalf of an
eligible family under section 8 of the United States Housing Act of
1937 from participating in the pilot program under this section.
(i) Definition of Disabled Family.--For the purposes of this
section, the term ``disabled family'' has the meaning given the term
``person with disabilities'' in section 811(k)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2)).
SEC. 303. FUNDING FOR PILOT PROGRAMS.
(a) Authorization of Appropriations.--There is authorized to be
appropriated $2,000,000 for fiscal year 2001 for assistance in
connection with the existing homeownership pilot programs carried out
under the demonstration program authorized under to section 555(b) of
the Quality Housing and Work Responsibility Act of 1998 (Public Law
105-276; 112 Stat. 2613).
(b) Use.--Subject to subsection (c), amounts made available
pursuant to this section shall be used only through such homeownership
pilot programs to provide, on behalf of families participating in such
programs, amounts for downpayments in connection with dwellings
purchased by such families using assistance made available under
section 8(y) of the United States Housing Act of 1937 (42 U.S.C.
1437f(y)). No such downpayment grant may exceed 20 percent of the
appraised value of the dwelling purchased with assistance under such
section 8(y).
(c) Matching Requirement.--The amount of assistance made available
under this section for any existing homeownership pilot program may not
exceed twice the amount donated from sources other than this section
for use under the program for assistance described in subsection (b).
Amounts donated from other sources may include amounts from State
housing finance agencies and Neighborhood Housing Services of America.
TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS
SEC. 401. REAUTHORIZATION.
(a) Authorization of Appropriations.--The last sentence of section
103 of the Housing and Community Development Act of 1974 (42 U.S.C.
5303) is amended to read as follows: ``For purposes of assistance under
section 106, there is authorized to be appropriated $4,900,000,000 for
fiscal year 2001 and such sums as may be necessary for each of fiscal
years 2002, 2003, 2004, and 2005.''.
(b) Entitlement Grants.--
(1) In general.--Section 102(a)(5)(B) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a)(5)(B)) is
amended--
(A) by inserting ``(I)'' after ``(iii)''; and
(B) by inserting before the period at the end the
following: ``, or (II) has a population in its
unincorporated areas of not less than 450,000, except
that a town or township which is designated as a city
pursuant to this subclause shall have only its
unincorporated areas considered as a city for purposes
of this title''.
(2) Treatment as separate from urban counties.--Section
102(d) of the Housing and Community Development Act of 1974 (42
U.S.C. 5302(d)) is amended--
(A) by inserting ``(1)'' after ``(d)''; and
(B) by adding at the end the following new
paragraph:
``(2) Notwithstanding paragraph (1), a town or township that is
classified as a city by reason of subclause (II) of section
102(a)(5)(B)(iii) shall be treated, for purposes of eligibility for a
grant under section 106(b)(1) from amounts made available for a fiscal
year beginning after the date of the enactment of the American
Homeownership and Economic Opportunity Act of 2000, as an entity
separate from the urban county in which it is located.''.
(3) Eligibility of certain urban counties.--Section
102(a)(6) of the Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)(6)) is amended--
(1) in subparagraph (D)--
(A) in clause (v), by striking ``or'' at the end;
(B) in clause (vi), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following new clause:
``(vii)(I) has consolidated its government with one
or more municipal governments, such that within the
county boundaries there are no unincorporated areas,
(II) has a population of not less than 650,000, over
which the consolidated government has the authority to
undertake essential community development and housing
assistance activities, (III) for more than 10 years,
has been classified as an entitlement area for purposes
of allocating and distributing funds under section 106,
and (IV) as of the date of the enactment of this
clause, has over 90 percent of the county's population
within the jurisdiction of the consolidated
government.''; and
(2) by adding at the end the following new subparagraph:
``(F) Notwithstanding any other provision of this
paragraph, any county that was classified as an urban county
pursuant to subparagraph (A) for fiscal year 1999, includes 10
cities each having a population of less than 50,000, and has a
population in its unincorporated areas of 190,000 or more but
less than 200,000, shall thereafter remain classified as an
urban county.''.
SEC. 402. PROHIBITION OF SET-ASIDES.
Section 103 of the Housing and Community Development Act of 1974
(42 U.S.C. 5303), as amended by section 401 of this Act, is further
amended--
(1) by inserting after ``Sec. 103.'' the following: ``(a)
In General.--''; and
(2) by adding at the end the following new subsection:
``(b) Prohibition of Set-Asides.--Except as provided in paragraphs
(1) and (2) of section 106(a) and section 107, amounts appropriated
pursuant to subsection (a) of this section or otherwise to carry out
this title (other than section 108) shall be used only for formula-
based grants allocated pursuant to section 106 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. 403. PUBLIC SERVICES CAP.
Section 105(a)(8) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)(8)) is amended by striking ``fiscal years
1993'' and all that follows through ``unit of general local
government'' and inserting the following: ``fiscal years 1993 through
2006 to the City of Los Angeles, the County of Los Angeles, or any
other unit of general local government located in the County of Los
Angeles, such city, such county, or each such unit of general local
government, respectively,''.
SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) Eligible Activities.--Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
(1) in paragraph (22)(C), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end
and inserting a semicolon; and
(3) by inserting after paragraph (23) the following new
paragraph:
``(24) provision of direct assistance to facilitate and
expand homeownership among uniformed employees (including
policemen, firemen, and sanitation and other maintenance
workers) of, and teachers who are employees of, the
metropolitan city or urban county (or an agency or school
district serving such city or county) receiving grant amounts
under this title pursuant to section 106(b) or the unit of
general local government (or an agency or school district
serving such unit) receiving such grant amounts pursuant to
section 106(d), except that--
``(A) such assistance may only be provided on
behalf of such employees who are first-time homebuyers
under the meaning given such term in section 104(14) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12704(14)), except that, for purposes of
this paragraph, such section shall be applied by
substituting `section 105(a)(24) of the Housing and
Community Development Act of 1974' for `title II';
``(B) notwithstanding section 102(a)(20)(B) or any
other provision of this title, such assistance may be
provided on behalf of such employees whose family
incomes do not exceed--
``(i) 115 percent of the median income of
the area involved, as determined by the
Secretary with adjustments for smaller and
larger families; or
``(ii) with respect only to areas that the
Secretary determines have high housing costs,
taking into consideration median house prices
and median family incomes for the area, 150
percent of the median income of the area
involved, as determined by the Secretary with
adjustments for smaller and larger families;
``(C) such assistance shall be used only for
acquiring principal residences for such employees, in a
manner that involves obligating amounts with respect to
any particular mortgage over a period of 1 year or
less, by--
``(i) providing amounts for downpayments on
mortgages;
``(ii) paying reasonable closing costs
normally associated with the purchase of a
residence;
``(iii) obtaining pre- or post-purchase
counseling relating to the financial and other
obligations of homeownership; or
``(iv) subsidizing mortgage interest rates;
and
``(D) any residence purchased using assistance
provided under this paragraph shall be subject to
restrictions on resale that are--
``(i) established by the metropolitan city,
urban county, or unit of general local
government providing such assistance; and
``(ii) determined by the Secretary to be
appropriate to comply with subparagraphs (A)
and (B) of section 215(b)(3) of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12745(b)(3)), except that, for purposes
of this paragraph, such subparagraphs shall be
applied by substituting `section 105(a)(24) of
the Housing and Community Development Act of
1974' for `this title';''.
(b) Primary Objectives.--Section 105(c) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(c)) is amended by
adding at the end the following new paragraph:
``(5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any assisted
activity described in subsection (a)(24) of this section shall be
considered, for purposes of this title, to benefit persons of low and
moderate income and to be directed toward the objective under section
101(c)(3).''.
SEC. 405. TECHNICAL AMENDMENT RELATING TO BROWNFIELDS.
Section 105(a) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)), as amended by section 404 of this Act, is further
amended--
(1) in paragraph (25), by striking the period and inserting
``; and''; and
(2) by adding at the end the following new paragraph:
``(26) environmental cleanup and economic development
activities related to Brownfields projects in conjunction with
the appropriate environmental regulatory agencies.''.
SEC. 406. INCOME ELIGIBILITY.
(a) In General.--In addition to the exceptions granted pursuant to
section 590 of the Quality Housing and Work Responsibility Act of 1998
(42 U.S.C. 5301 note), the Secretary of Housing and Urban Development
shall, for not less than 10 other jurisdictions that are metropolitan
cities or urban counties for purposes of title I of the Housing and
Community Development Act of 1974, grant exceptions not later than 90
days after the date of the enactment of this Act for such jurisdictions
that provide that--
(1) for purposes of the HOME investment partnerships
program under title II of the Cranston-Gonzalez National
Affordable Housing Act, the limitation based on percentage of
median income that is applicable under section 104(10),
214(1)(A), or 215(a)(1)(A) for any area of the jurisdiction
shall be the numerical percentage that is specified in such
section; and
(2) for purposes of the community development block grant
program under title I of the Housing and Community Development
Act of 1974, the limitation based on percentage of median
income that is applicable pursuant to section 102(a)(20) for
any area within the State or unit of general local government
shall be the numerical percentage that is specified in
subparagraph (A) of such section.
(b) Selection.--In selecting the jurisdictions for which to grant
such exceptions, the Secretary shall consider the relative median
income of such jurisdictions and shall give preference to jurisdictions
with the highest housing costs.
SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.
Section 863 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12912) is amended to read as follows:
``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subtitle
$275,000,000 for fiscal year 2001 and such sums as may be necessary for
each of fiscal years 2002, 2003, 2004, and 2005.''.
SEC. 408. PROHIBITION ON USE OF AMOUNTS TO ACQUIRE CHURCH PROPERTY.
Section 105 of the Housing and Community Development Act of 1974
(42 U.S.C. 5305) is amended by adding at the end the following new
subsection:
``(i) Prohibition on Use of Assistance to Acquire Church
Property.--Notwithstanding any other provision of this section, no
amount from a grant under section 106 may be used to carry out or
assist any activity if such activity, or the project for which such
activity is to be conducted, involves acquisition of real property
owned by a church that is exempt from tax under section 501(a) of the
Internal Revenue Code of 1986 (26 U.S.C. 501(a)), unless the governing
body of the church has previously consented to such acquisition.''.
SEC. 409. CDBG SPECIAL PURPOSE GRANTS.
Section 107(a)(1) of the Housing and Community Development Act of
1974 (42 U.S.C. 5307(a)(1)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``$60,000,000'' and inserting
``$95,000,000''; and
(B) by striking ``subsection (b)'' and inserting
``this section''; and
(2) by striking subparagraph (G) and inserting the
following new subparagraph:
``(G) $35,000,000 shall be available in fiscal year
2001 for a grant to the City of Youngstown, Ohio, for
the site acquisition, planning, architectural design,
and construction of a convocation and community center
in such city;''.
TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM
SEC. 501. REAUTHORIZATION.
(a) Authorization of Appropriations.--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 is authorized to be appropriated to carry
out this title $1,650,000,000 for fiscal year 2001 and such sums as may
be necessary for each of fiscal years 2002, 2003, 2004, and 2005, 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, of which, in each of
fiscal years 2001 and 2002, $3,000,000 shall be for funding
grants under section 246.
``(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) of this section 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.''.
(b) Allocations of Amounts.--Section 104(19) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12704(19)) is
amended by adding at the end the following: ``The term `city' shall
have the meaning given such term in section 102(a)(5)(B) of such Act. A
town or township that is classified as a city by reason of subclause
(II) of section 102(a)(5)(A)(B)(iii) of such Act shall be treated,
notwithstanding section 102(d)(1) of such Act, as an entity separate
from the urban county in which it is located for purposes of allocation
of amounts under section 217 of this Act to units of general local
government from amounts made available for any fiscal year beginning
after the date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000.''.
(c) Pilot Program for Developing Regional Housing Strategies.--
Subtitle C of title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12781 et seq.) is amended by adding at the end
the following new section:
``SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE REGIONAL HOUSING
AFFORDABILITY STRATEGIES.
``(a) Authority.--The Secretary may, using any amounts made
available for grants under this section, make not more than three
grants for each of fiscal years 2001 and 2002 to consortia of units of
general local government described in subsection (b) for costs of
developing and implementing comprehensive housing affordability
strategies on a regional basis.
``(b) Eligible Consortia.--A consortium of units of general local
government described in this subsection is a consortium that--
``(1) is eligible under section 216(2) to be deemed a unit
of general local government for purposes of this title;
``(2) consists of multiple units of general local
government; and
``(3) contains only units of general local government that
are geographically contiguous.
``(c) Multi-State Requirement.--In each fiscal year in which grants
are made under this section, not less than one of the consortia that
receives a grant shall be a consortium described in subsection (b) that
includes units of general local government from two or more States.''.
SEC. 502. 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;
``(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. 503. ADMINISTRATIVE COSTS.
Section 212(c) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12742(c)) is amended by adding at the end the following
new sentence: ``A participating jurisdiction may use amounts made
available under this subsection for a fiscal year for administrative
and planning costs by amortizing the costs of administration and
planning activities under this subtitle over the entire duration of
such activities.''.
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 section 218(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--
``(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
``(II) in the case of a lease-
purchase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
``(III) in the case of a contract
to purchase housing to be constructed,
at the time the contract is signed;
``(ii) all are principal residences of
owners whose families qualify as moderate-
income families--
``(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
``(II) in the case of a lease-
purchase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
``(III) in the case of a contract
to purchase housing to be constructed,
at the time the contract is signed; 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 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), as amended
by section 502 of this Act, is further amended by adding at the
end the following new paragraph:
``(28) 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. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) Eligible Activities.--Paragraph (2) of section 215(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(b)(2)) is amended to read as follows:
``(2) is the principal residence of an owner who--
``(A) is a member of a family that qualifies as a
low-income family--
``(i) in the case of a contract to purchase
existing housing, at the time of purchase;
``(ii) in the case of a lease-purchase
agreement for existing housing or for housing
to be constructed, at the time the agreement is
signed; or
``(iii) in the case of a contract to
purchase housing to be constructed, at the time
the contract is signed; or
``(B)(i) is a uniformed employee (which shall
include policemen, firemen, and sanitation and other
maintenance workers) or a teacher who is an employee,
of the participating jurisdiction (or an agency or
school district serving such jurisdiction) that is
investing funds made available under this subtitle to
support homeownership of the residence; and
``(ii) is a member of a family whose income, at the
time referred to in clause (i), (ii), or (iii) of
subparagraph (A), as appropriate, and as determined by
the Secretary with adjustments for smaller and larger
families, does not exceed 115 percent of the median
income of the area, except that, with respect only to
such areas that the Secretary determines have high
housing costs, taking into consideration median house
prices and median family incomes for the area, such
income limitation shall be 150 percent of the median
income of the area, as determined by the Secretary with
adjustments for smaller and larger families;''.
(b) Income Targeting.--Section 214(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12744(2)) is amended by
inserting before the semicolon the following: ``or families described
in section 215(b)(2)(B)''.
(c) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by
adding at the end the following new sentence: ``Notwithstanding the
preceding sentence, in the case of homeownership assistance for
residences of owners described in section 215(b)(2)(B), funds made
available under this subtitle may only be invested (A) to provide
amounts for downpayments on mortgages, (B) to pay reasonable closing
costs normally associated with the purchase of a residence, (C) to
obtain pre- or post-purchase counseling relating to the financial and
other obligations of homeownership, or (D) to subsidize mortgage
interest rates.''.
SEC. 506. USE OF SECTION 8 ASSISTANCE BY ``GRAND-FAMILIES'' TO RENT
DWELLING UNITS IN ASSISTED PROJECTS.
Section 215(a) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12745(a)), as amended by the preceding provisions of
this Act, is further amended by adding at the end the following new
paragraph:
``(7) Waiver of qualifying rent.--
``(A) In general.--For the purpose of providing
affordable housing appropriate for families described
in subparagraph (B), the Secretary may, upon the
application of the project owner, waive the
applicability of subparagraph (A) of paragraph (1) with
respect to a dwelling unit if--
``(i) the unit is occupied by such a
family, on whose behalf tenant-based assistance
is provided under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f);
``(ii) the rent for the unit is not greater
than the existing fair market rent for
comparable units in the area, as established by
the Secretary under section 8 of the United
States Housing Act of 1937; and
``(iii) the Secretary determines that the
waiver, together with waivers under this
paragraph for other dwelling units in the
project, will result in the use of amounts
described in clause (iii) in an effective
manner that will improve the provision of
affordable housing for such families.
``(B) Eligible families.--A family described in
this subparagraph is a family that consists of at least
one elderly person (who is the head of household) and
one or more of such person's grand children, great
grandchildren, great nieces, great nephews, or great
great grandchildren (as defined by the Secretary), but
does not include any parent of such grandchildren,
great grandchildren, great nieces, great nephews, or
great great grandchildren. Such term includes any such
grandchildren, great grandchildren, great nieces, great
nephews, or great great grandchildren who have been
legally adopted by such elderly person.''.
SEC. 507. 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 five 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 guarantee and the obligation shall be
designed in a manner such that 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 one 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.''.
SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAMILY RESIDENCES.
(a) Authority.--The Secretary of Housing and Urban Development
shall carry out a pilot program under this section under which covered
jurisdictions may use amounts described in subsection (b) to make loans
to eligible homebuyers for use as downpayments on 2- and 3-family
residences.
(b) Covered Assistance.--Notwithstanding section 105 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5305) and section 212
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742), a covered jurisdiction may use amounts provided to the
jurisdiction pursuant to section 106(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5406(b)) and amounts in the HOME
Investment Trust Fund for the jurisdiction for downpayment loans
meeting the requirements of subsection (d) to homebuyers meeting the
requirements of subsection (c), but only to the extent such
jurisdictions agree to comply with the requirements of this section, as
the Secretary may require.
(c) Eligible Homebuyers.--A homebuyer meets the requirements of
this subsection only if the homebuyer is an individual or family--
(1) whose income does not exceed 80 percent of the median
family income for the area within which the residence to be
purchased with the downpayment loan under subsection (d) is
located; except that the Secretary may, pursuant to a request
by a covered jurisdiction demonstrating that the jurisdiction
has high housing costs (taking into consideration median home
prices and median family incomes for the area), increase the
percentage limitation under this paragraph to not more than 110
percent of the median family income for the area;
(2) who has successfully completed a program regarding the
responsibilities and financial management involved in
homeownership and ownership of rental property that is approved
by the Secretary;
(3) has a satisfactory credit history and record as a
tenant of rental housing; and
(4) who, if such individual or family has an income that
exceeds 80 percent of the median income for the area, enters
into a binding agreement to comply with the requirements under
subsection (e) (relating to affordability of other dwelling
units in the residence).
(d) No-Interest Downpayment Loans.--A loan meets the requirements
of this subsection only if--
(1) the principal obligation of the loan--
(A) may be used only for a downpayment for
acquisition of a 2- or 3-family residence and for
closing costs and other costs payable at the time of
closing, as the Secretary shall provide; and
(B) does not exceed the amount that is equal to the
sum of: (i) 7 percent of the purchase price of the
residence; and (ii) such closing and other costs;
(2) the borrower under the loan is paying, for acquisition
of the residence, at least 3 percent of the cost of acquisition
of the residence in cash or its equivalent;
(3) the borrower under the loan will occupy a dwelling unit
in the residence purchased using the loan as the principal
residence of the borrower;
(4) the loan terms--
(A) do not require the borrower to be pre-qualified
for a loan that finances the remainder of the purchase
price of a residence described in paragraph (1)(A); and
(B) provide that the proceeds of the loan are
available for use (as provided in paragraph (1)) only
during the 4-month period beginning upon the making of
the loan to the borrower and that such proceeds shall
revert to the covered jurisdiction upon the conclusion
of such period if the borrower has not entered into a
contract for purchase of a residence meeting the
requirements of such paragraph before such conclusion,
except that the Secretary shall provide that covered
jurisdictions may extend such 4-month period under such
circumstances as the Secretary shall prescribe;
(5) the loan terms provide for repayment of the principal
obligation of the loan, without interest, at such time as the
covered jurisdiction may provide, except that the principal
obligation shall be immediately repayable at the time that the
borrower--
(A) transfers or sells the borrower's ownership
interest in such residence or ceases to use the
residence purchased with the loan proceeds as his or
her principal residence; or
(B) obtains a subsequent loan secured by such
residence or any equity of the borrower in such
residence, the proceeds of which are not used to prepay
or pay off the entire balance due on the existing loan
secured by such residence; or
(6) the loan terms provide that, upon sale of the residence
purchased with the proceeds of the loan, the borrower shall
repay to the covered jurisdiction (together with the principal
obligation of the loan repayable pursuant to paragraph (5)(A))
an additional amount that bears the same ratio to any increase
in the price of the residence upon such sale (compared to the
price paid for the residence upon purchase using such loan) as
the amount of the loan bears to the purchase price paid for the
residence in the purchase using such loan; and
(7) the loan complies with such other requirements as the
Secretary may prescribe.
(e) Affordability of Rental Units.--Any dwelling units in the
residence purchased using a loan provided pursuant to the authority
under this section to a borrower described in subsection (c)(4) of this
section shall be used only as rental dwelling units and shall be made
available for rental only at a monthly rental price that does not
exceed the fair market rent under section 8(c)(2)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as periodically
adjusted, for a unit of the applicable size located in the area in
which the residence is located. Compliance with this subsection shall
be monitored and enforced by the covered jurisdiction providing the
amounts for the downpayment loan under this section for the purchase of
such residence.
(f) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Covered jurisdiction.--The term ``covered
jurisdiction'' means, with respect to a fiscal year--
(A) a metropolitan city or urban county that
receives a grant for such fiscal year pursuant to
section 106(b) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5306(b)); or
(B) a jurisdiction that is a participating
jurisdiction for such fiscal year for purposes of the
HOME Investment Partnerships Act (42 U.S.C. 12721 et
seq.).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
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 is authorized to be appropriated to
the corporation to carry out this title $95,000,000 for fiscal year
2001 and such sums as may be necessary for each of fiscal years 2002
through 2005. Of the amounts appropriated to the corporation for fiscal
year 2001, $5,000,000 shall be available only for the corporation to
provide assistance under duplex homeownership programs established
before the date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000 through Neighborworks Homeownership
Center pilot projects established before such date of the enactment.''.
SEC. 602. 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.
The Secretary may not treat any application for a grant under this
section adversely in any manner solely on the basis that the
homeownership zone is located, in whole or in part, within
unincorporated areas.
``(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 is authorized to be appropriated to
carry out this section $25,000,000 for fiscal year 2001 and such sums
as may be necessary for fiscal year 2002, to remain available until
expended.''.
SEC. 603. LEASE-TO-OWN.
(a) Sense of the 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; and
(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. 604. 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.''.
SEC. 605. CONSOLIDATED APPLICATION AND PLANNING REQUIREMENT AND SUPER-
NOFA.
(a) Consolidated Application.--Section 106 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12706) is amended to read as
follows:
``SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING AND
DEVELOPMENT PROGRAMS.
``(a) Requirement.--The Secretary shall, by regulation, provide for
jurisdictions to comply with the planning and application requirements
under the covered programs under subsection (b) by submitting to the
Secretary, for a program year, a single consolidated submission under
this section that complies with the requirements for planning and
application submissions under the laws relating to the covered programs
and shall serve, for the jurisdiction, as the planning document and an
application for funding under the covered programs.
``(b) Covered programs.--The covered programs under this subsection
are the following programs:
``(1) The HOME investment partnerships program under title
II of this Act (42 U.S.C. 12721 et seq.).
``(2) The community development block grant program under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
``(3) The economic development initiative program under
section 108(q) of the Housing and Community Development Act of
1974 (42 U.S.C. 5308(q)).
``(4) The emergency shelter grants program under subtitle B
of title IV of the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11371 et seq.).
``(5) The housing opportunities for persons with AIDS
program under subtitle D of title VIII of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12901 et seq.).
``(c) Program Year.--In establishing requirements for a
consolidated submission under this section, the Secretary shall provide
for a consolidated program year, which shall comply with the various
application and review deadlines under the covered programs.
``(d) Adequacy of Existing Regulations.--The regulations of the
Secretary relating to consolidated submissions for community planning
and development programs, part 91 of title 24, Code of Federal
Regulations, as in effect on March 1, 1999, shall be considered to be
sufficient to comply with this section, except to the extent that the
program referred to in paragraph (3) of subsection (b) is not covered
by such regulations.
``(e) Consistency.--The Secretary shall, by regulation or
otherwise, as deemed by the Secretary to be appropriate, require any
application for housing assistance under title II of this Act,
assistance under the Housing and Community Development Act of 1974, or
assistance under the Stewart B. McKinney Homeless Assistance Act, to
contain or be accompanied by a certification by an appropriate State or
local public official that the proposed housing activities are
consistent with the housing strategy of the jurisdiction to be
served.''.
(b) Super-NOFA.--The Department of Housing and Urban Development
Act is amended by inserting after section 12 (42 U.S.C. 3537a) the
following new section:
``SEC. 13. NOTICE OF FUNDING AVAILABILITY.
``(a) Requirement.--In making amounts for a fiscal year under the
covered programs under subsection (b) available to applicants, the
Secretary shall issue a consolidated notice of funding availability
that--
``(1) applies to as many of the covered programs as the
Secretary determines is practicable;
``(2) simplifies the application process for funding under
such programs by providing for application under various
covered programs through a single, unified application;
``(3) promotes comprehensive approaches to housing and
community development by providing for applicants to identify
coordination of efforts under various covered programs; and
``(4) clearly informs prospective applicants of the general
and specific requirements under law for applying for funding
under such programs.
``(b) Covered Programs.--The covered programs under this subsection
are the programs that are administered by the Secretary and identified
by the Secretary for purposes of this section, in the following areas:
``(1) Housing and community development programs.
``(2) Economic development and empowerment programs.
``(3) Targeted housing assistance and homeless assistance
programs.''.
SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.
(a) Reauthorization.--Subsection (p) of section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended to read as follows:
``(p) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal year 2001
and such sums as may be necessary for each of fiscal years 2002 and
2003.''.
(b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended by inserting before the period at the end the following: ``,
which may include reimbursing an organization, consortium, or
affiliate, upon approval of any required environmental review, for
nongrant amounts of the organization, consortium, or affiliate advanced
before such review to acquire land''.
(c) Deadline for Recapture of Funds.--Section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended--
(1) in subsection (i)(5)--
(A) by striking ``if the organization or consortia
has not used any grant amounts'' and inserting ``the
Secretary shall recapture any grant amounts provided to
the organization or consortia that are not used'';
(B) by striking ``(or,'' and inserting ``, except
that such period shall be 36 months''; and
(C) by striking ``within 36 months), the Secretary
shall recapture such unused amounts'' and inserting
``and in the case of a grant amounts provided to a
local affiliate of the organization or consortia that
is developing five or more dwellings in connection with
such grant amounts''; and
(2) in subsection (j), by inserting after ``carry out this
section'' the following: ``and grant amounts provided to a
local affiliate of the organization or consortia that is
developing five or more dwellings in connection with such grant
amounts''.
(d) Technical Corrections.--Section 11 of the Housing Opportunity
Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended--
(1) in subsection (b)(4), by striking ``Habitat for
Humanity International, its affiliates, and other''; and
(2) in subsection (e)(2), by striking ``consoria'' and
inserting ``consortia''.
SEC. 607. HOUSING COUNSELING ORGANIZATIONS.
(a) Extension of Programs.--
(1) 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, 2000'' and
inserting ``September 30, 2005''.
(2) Prepurchase and foreclosure prevention counseling
demonstration.--Section 106(d)(12) 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
2005''.
(b) Cooperative Ownership Housing Corporations.--Section 106 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701x) is
amended--
(1) in subsection (a)(1)(ii), by inserting ``and
cooperative housing'' before the semicolon at the end; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``and'' at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting a semicolon;
and
(iii) by adding at the end the following
new subparagraph:
``(C) to the National Cooperative Bank Development
Corporation--
``(i) to provide homeownership counseling
to eligible homeowners that is specifically
designed to relate to ownership under
cooperative housing arrangements; and
``(ii) to assist in the establishment and
operation of well-managed and viable
cooperative housing boards.'';
(B) in paragraph (4)(A), by inserting before the
semicolon at the end the following: ``or, in the case
of a home loan made to finance the purchase of stock or
membership in a cooperative ownership housing
corporation, by the stock or membership interest''; and
(C) in paragraph (6)(C), by adding before the
period at the end the following: ``and includes a loan
that is secured by a first lien given in accordance
with the laws of the State where the property is
located and that is made to finance the purchase of
stock or membership in a cooperative ownership housing
corporation the permanent occupancy of dwelling units
of which is restricted to members of such corporation,
where the purchase of such stock or membership will
entitle the purchaser to the permanent occupancy of one
of such units''.
SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND LEAD-SAFE HOUSING.
Section 1011(e) of the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4852(e)) is amended--
(1) in paragraph (7), by inserting ``, which may include
leasing of lead-safe temporary housing'' before the semicolon
at the end;
(2) in paragraph (9), by striking ``and'' at the end;
(3) by redesignating paragraph (10) as paragraph (11); and
(4) by inserting after paragraph (9) the following new
paragraph:
``(10) provide accessible information through centralized
locations that provide a variety of residential lead-based
paint poisoning prevention services to the community that such
services are intended to benefit; and''.
SEC. 609. GRANT ELIGIBILITY OF COMMUNITY ORGANIZATIONS.
(a) Eligibility.--For any program administered by the Secretary of
Housing and Urban Development under which financial assistance is
provided by the Secretary to nongovernmental organizations or to a
State or local government for provision to nongovernmental
organizations, religious organizations shall be eligible, on the same
basis as other nongovernmental organizations, to receive the financial
assistance under the program from the Secretary or such State and local
governments, as the case may be, as long as the program is implemented
in a manner consistent with the Establishment Clause of the Free
Exercise Clause of the first amendment to the Constitution. Neither the
Secretary nor a State or local government to which such financial
assistance is provided shall discriminate against an organization that
receives financial assistance, or applies to receive assistance, under
a program administered by the Secretary, on the basis that the
organization has a religious character.
(b) Religious Character and Independence.--
(1) In general.--A religious organization that receives
assistance under a program described in subsection (a) shall
retain its religious character and control over the definition,
development, practice, and expression of its religious beliefs.
(2) Additional safeguards.--Neither the Federal Government
nor a State or local government shall require a religious
organization--
(A) to alter its form of internal governance; or
(B) to remove religious art, icons, scripture, or
other symbols,
in order to be eligible to provide assistance under a program
described in subsection (a).
(3) Employment practices.--A religious organization's
exemption provided under section 702 of the Civil Rights Act of
1964 (42 U.S.C. 2000e-1) regarding employment practices shall
not be affected by its participation in, or receipt of funds
from, programs described in subsection (a).
(c) Limitations on Use of Funds for Certain Purposes.--No funds
provided directly to a religious organization to provide assistance
under any program described in subsection (a) shall be expended for
sectarian worship, instruction, or proselytization.
(d) Fiscal Accountability.--
(1) In general.--Except as provided in paragraph (2), any
religious organization providing assistance under any program
described in subsection (a) shall be subject to the same
regulations as other nongovernmental organizations to account
in accord with generally accepted accounting principles for the
use of such funds provided under such program.
(2) Limited audit.--Such organization shall segregate
government funds provided under such program into a separate
account. Only the government funds shall be subject to audit by
the government.
(e) Treatment of Eligible Entities and Other Intermediate
Organizations.--If an eligible entity or other organization (referred
to in this subsection as an ``intermediate organization''), acting
under a contract, or grant or other agreement, with the Federal
Government or a State or local government, is given the authority under
the contract or agreement to select nongovernmental organizations to
provide assistance under the programs described in subsection (a), the
intermediate organization shall have the same duties under this section
as the government.
(f) Definitions.--For purposes of this section:
(1) Financial assistance.--The term ``financial
assistance'' means any grant, loan, subsidy, guarantee, or
other financial assistance, except that such term does not
include any mortgage insurance provided under a program
administered by the Secretary.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
TITLE VII--NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A--Native American Housing
SEC. 701. LANDS TITLE REPORT COMMISSION.
(a) Establishment.--Subject to sums being provided in advance in
appropriations Acts, there is established a Commission to be known as
the Lands Title Report Commission (hereafter in this section referred
to as the ``Commission'') to facilitate home loan mortgages on Indian
trust lands. The Commission will be subject to oversight by the
Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate.
(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) Four members shall be appointed by the
President.
(B) Four members shall be appointed by the
Chairperson of the Committee on Banking and Financial
Services of the House of Representatives.
(C) Four members shall be appointed by the
Chairperson of the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) Qualifications.--
(A) Members of tribes.--At all times, not less than
eight of the members of the Commission shall be members
of federally recognized Indian tribes.
(B) Experience in land title matters.--All members
of the Commission shall have experience in and
knowledge of land title matters relating to Indian
trust lands.
(3) Chairperson.--The Chairperson 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) Initial Meeting.--The Chairperson of the Commission shall call
the initial meeting of the Commission. Such meeting shall be held
within 30 days after the Chairperson of the Commission determines that
sums sufficient for the Commission to carry out its duties under this
Act have been appropriated for such purpose.
(d) Duties.--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.
(e) Report.--Not later than the date of the termination of the
Commission under subsection (h), 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
pursuant to subsection (d).
(f) 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 duties 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.
(g) Authorization of Appropriations.--To carry out this section,
there is authorized to be appropriated $500,000. Such sums shall remain
available until expended.
(h) Termination.--The Commission shall terminate 1 year after the
date of the initial meeting of the Commission.
SEC. 702. LOAN GUARANTEES.
Section 184(i) of the Housing and Community Development Act of 1992
(12 U.S.C. 1715z-13a(i)) is amended--
(1) in paragraph (5), by striking subparagraph (C) and
inserting the following new subparagraph:
``(C) Limitation on outstanding aggregate principal
amount.--Subject to the limitations in subparagraphs
(A) and (B), the Secretary may enter into commitments
to guarantee loans under this section in each fiscal
year with an aggregate outstanding principal amount not
exceeding such amount as may be provided in
appropriation Acts for such fiscal year.''; and
(2) in paragraph (7), by striking ``each of fiscal years
1997, 1998, 1999, 2000, and 2001'' and inserting ``each fiscal
year''.
SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) Restriction on Waiver Authority.--
(1) In general.--Section 101(b)(2) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4111(b)(2)) is amended by striking ``if the Secretary''
and all that follows through the period at the end and
inserting the following: ``for a period of not more than 90
days, if the Secretary determines that an Indian tribe has not
complied with, or is unable to comply with, those requirements
due to exigent circumstances beyond the control of the Indian
tribe.''.
(2) Local cooperation agreement.--Section 101(c) of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4111(c)) is amended by adding at the end the
following: ``The Secretary may waive the requirements of this
subsection and subsection (d) if the recipient has made a good
faith effort to fulfill the requirements of this subsection and
subsection (d) and agrees to make payments in lieu of taxes to
the appropriate taxing authority in an amount consistent with
the requirements of subsection (d)(2) until such time as the
matter of making such payments has been resolved in accordance
with subsection (d).''.
(b) Assistance to Families That Are Not Low-Income.--Section 102(c)
of the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4112(c)) is amended by adding at the end the following:
``(6) Certain families.--With respect to assistance
provided under section 201(b)(2) by a recipient to Indian
families that are not low-income families, evidence that there
is a need for housing for each such family during that period
that cannot reasonably be met without such assistance.''.
(c) Elimination of Waiver Authority for Small Tribes.--Section 102
of the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4112) is amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
(d) Environmental Compliance.--Section 105 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4115)
is amended by adding at the end the following:
``(d) Environmental Compliance.--The Secretary may waive the
requirements under this section if the Secretary determines that a
failure on the part of a recipient to comply with provisions of this
section--
``(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or
any other provision of law that furthers the goals of that Act;
``(2) does not threaten the health or safety of the
community involved by posing an immediate or long-term hazard
to residents of that community;
``(3) is a result of inadvertent error, including an
incorrect or incomplete certification provided under subsection
(c)(1); and
``(4) may be corrected through the sole action of the
recipient.''.
(e) Eligibility of Law Enforcement Officers for Housing
Assistance.--Section 201(b) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4131(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) Law enforcement officers.--A recipient may provide
housing or housing assistance provided through affordable
housing activities assisted with grant amounts under this Act
for a law enforcement officer on an Indian reservation or other
Indian area, if--
``(A) the officer--
``(i) is employed on a full-time basis by
the Federal Government or a State, county, or
tribal government; and
``(ii) in implementing such full-time
employment, is sworn to uphold, and make
arrests for, violations of Federal, State,
county, or tribal law; and
``(B) the recipient determines that the presence of
the law enforcement officer on the Indian reservation
or other Indian area may deter crime.''.
(f) Oversight.--
(1) Repayment.--Section 209 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139)
is amended to read as follows:
``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.
``If a recipient uses grant amounts to provide affordable housing
under this title, and at any time during the useful life of the housing
the recipient does not comply with the requirement under section
205(a)(2), the Secretary shall take appropriate action under section
401(a).''.
(2) Audits and reviews.--Section 405 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4165) is amended to read as follows:
``SEC. 405. REVIEW AND AUDIT BY SECRETARY.
``(a) Requirements Under Chapter 75 of Title 31, United States
Code.--An entity designated by an Indian tribe as a housing entity
shall be treated, for purposes of chapter 75 of title 31, United States
Code, as a non-Federal entity that is subject to the audit requirements
that apply to non-Federal entities under that chapter.
``(b) Additional Reviews and Audits.--
``(1) In general.--In addition to any audit or review under
subsection (a), to the extent the Secretary determines such
action to be appropriate, the Secretary may conduct an audit or
review of a recipient in order to--
``(A) determine whether the recipient--
``(i) has carried out--
``(I) eligible activities in a
timely manner; and
``(II) eligible activities and
certification in accordance with this
Act and other applicable law;
``(ii) has a continuing capacity to carry
out eligible activities in a timely manner; and
``(iii) is in compliance with the Indian
housing plan of the recipient; and
``(B) verify the accuracy of information contained
in any performance report submitted by the recipient
under section 404.
``(2) On-site visits.--To the extent practicable, the
reviews and audits conducted under this subsection shall
include on-site visits by the appropriate official of the
Department of Housing and Urban Development.
``(c) Review of Reports.--
``(1) In general.--The Secretary shall provide each
recipient that is the subject of a report made by the Secretary
under this section notice that the recipient may review and
comment on the report during a period of not less than 30 days
after the date on which notice is issued under this paragraph.
``(2) Public availability.--After taking into consideration
any comments of the recipient under paragraph (1), the
Secretary--
``(A) may revise the report; and
``(B) not later than 30 days after the date on
which those comments are received, shall make the
comments and the report (with any revisions made under
subparagraph (A)) readily available to the public.
``(d) Effect of Reviews.--Subject to section 401(a), after
reviewing the reports and audits relating to a recipient that are
submitted to the Secretary under this section, the Secretary may adjust
the amount of a grant made to a recipient under this Act in accordance
with the findings of the Secretary with respect to those reports and
audits.''.
(g) Allocation Formula.--Section 302(d)(1) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4152(d)(1)) is amended--
(1) by striking ``The formula,'' and inserting the
following:
``(A) In general.--Except with respect to an Indian
tribe described in subparagraph (B), the formula''; and
(2) by adding at the end the following:
``(B) Certain indian tribes.--With respect to
fiscal year 2001 and each fiscal year thereafter, for
any Indian tribe with an Indian housing authority that
owns or operates fewer than 250 public housing units,
the formula shall provide that if the amount provided
for a fiscal year in which the total amount made
available for assistance under this Act is equal to or
greater than the amount made available for fiscal year
1996 for assistance for the operation and modernization
of the public housing referred to in subparagraph (A),
then the amount provided to that Indian tribe as
modernization assistance shall be equal to the average
annual amount of funds provided to the Indian tribe
(other than funds provided as emergency assistance)
under the assistance program under section 14 of the
United States Housing Act of 1937 (42 U.S.C. 1437l) for
the period beginning with fiscal year 1992 and ending
with fiscal year 1997.''.
(h) Hearing Requirement.--Section 401(a) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4161(a)) is amended--
(1) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and realigning
such subparagraphs (as so redesignated) so as to be indented 4
ems from the left margin;
(2) by striking ``Except as provided'' and inserting the
following:
``(1) In general.--Except as provided'';
(3) by striking ``If the Secretary takes an action under
paragraph (1), (2), or (3)'' and inserting the following:
``(2) Continuance of actions.--If the Secretary takes an
action under subparagraph (A), (B), or (C) of paragraph (1)'';
and
(4) by adding at the end the following:
``(3) Exception for certain actions.--
``(A) In general.--Notwithstanding any other
provision of this subsection, if the Secretary makes a
determination that the failure of a recipient of
assistance under this Act to comply substantially with
any material provision (as that term is defined by the
Secretary) of this Act is resulting, and would continue
to result, in a continuing expenditure of Federal funds
in a manner that is not authorized by law, the
Secretary may take an action described in paragraph
(1)(C) before conducting a hearing.
``(B) Procedural requirement.--If the Secretary
takes an action described in subparagraph (A), the
Secretary shall--
``(i) provide notice to the recipient at
the time that the Secretary takes that action;
and
``(ii) conduct a hearing not later than 60
days after the date on which the Secretary
provides notice under clause (i).
``(C) Determination.--Upon completion of a hearing
under this paragraph, the Secretary shall make a
determination regarding whether to continue taking the
action that is the subject of the hearing, or take
another action under this subsection.''.
(i) Performance Agreement Time Limit.--Section 401(b) of the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4161(b)) is amended--
(1) by striking ``If the Secretary'' and inserting the
following:
``(1) In general.--If the Secretary'';
(2) by striking ``(1) is not'' and inserting the following:
``(A) is not'';
(3) by striking ``(2) is a result'' and inserting the
following:
``(B) is a result'';
(4) in the flush material following paragraph (1)(B), as
redesignated by paragraph (3) of this subsection--
(A) by realigning such material so as to be
indented 2 ems from the left margin; and
(B) by inserting before the period at the end the
following: ``, if the recipient enters into a
performance agreement with the Secretary that specifies
the compliance objectives that the recipient will be
required to achieve by the termination date of the
performance agreement''; and
(5) by adding at the end the following:
``(2) Performance agreement.--The period of a performance
agreement described in paragraph (1) shall be for 1 year.
``(3) Review.--Upon the termination of a performance
agreement entered into under paragraph (1), the Secretary shall
review the performance of the recipient that is a party to the
agreement.
``(4) Effect of review.--If, on the basis of a review under
paragraph (3), the Secretary determines that the recipient--
``(A) has made a good faith effort to meet the
compliance objectives specified in the agreement, the
Secretary may enter into an additional performance
agreement for the period specified in paragraph (2);
and
``(B) has failed to make a good faith effort to
meet applicable compliance objectives, the Secretary
shall determine the recipient to have failed to comply
substantially with this Act, and the recipient shall be
subject to an action under subsection (a).''.
(j) Labor Standards.--Section 104(b) of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4114(b) is
amended--
(1) in paragraph (1), by striking ``Davis-Bacon Act (40
U.S.C. 276a-276a-5)'' and inserting ``Act of March 3, 1931
(commonly known as the Davis-Bacon Act; chapter 411; 46 Stat.
1494; 40 U.S.C 276a et seq.)''; and
(2) by adding at the end the following new paragraph:
``(3) Application of tribal laws.--Paragraph (1) shall not
apply to any contract or agreement for assistance, sale, or
lease pursuant to this Act, if such contract or agreement is
otherwise covered by one or more laws or regulations adopted by
an Indian tribe that requires the payment of not less than
prevailing wages, as determined by the Indian tribe.''.
(k) Technical and Conforming Amendments.--
(1) Table of contents.--Section 1(b) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 note) is amended in the table of contents--
(A) by striking the item relating to section 206;
and
(B) by striking the item relating to section 209
and inserting the following:
``209. Noncompliance with affordable housing requirement.''.
(2) Certification of compliance with subsidy layering
requirements.--Section 206 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136)
is repealed.
(3) Terminations.--Section 502(a) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4181(a)) is amended by adding at the end the following:
``Any housing that is the subject of a contract for tenant-
based assistance between the Secretary and an Indian housing
authority that is terminated under this section shall, for the
following fiscal year and each fiscal year thereafter, be
considered to be a dwelling unit under section 302(b)(1).''.
Subtitle B--Native Hawaiian Housing
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ``Hawaiian Homelands
Homeownership Act of 2000''.
SEC. 722. FINDINGS.
The Congress finds that--
(1) the United States has undertaken a responsibility to
promote the general welfare of the United States by--
(A) employing its resources to remedy the unsafe
and unsanitary housing conditions and the acute
shortage of decent, safe, and sanitary dwellings for
families of lower income; and
(B) developing effective partnerships with
governmental and private entities to accomplish the
objectives referred to in subparagraph (A);
(2) the United States has a special responsibility for the
welfare of the Native peoples of the United States, including
Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), the United States
set aside 200,000 acres of land in the Federal territory that
later became the State of Hawaii in order to establish a
homeland for the native people of Hawaii--Native Hawaiians;
(4) despite the intent of Congress in 1920 to address the
housing needs of Native Hawaiians through the enactment of the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.),
Native Hawaiians eligible to reside on the Hawaiian home lands
have been foreclosed from participating in Federal housing
assistance programs available to all other eligible families in
the United States;
(5) although Federal housing assistance programs have been
administered on a racially neutral basis in the State of
Hawaii, Native Hawaiians continue to have the greatest unmet
need for housing and the highest rates of overcrowding in the
United States;
(6) among the Native American population of the United
States, Native Hawaiians experience the highest percentage of
housing problems in the United States, as the percentage--
(A) of housing problems in the Native Hawaiian
population is 49 percent, as compared to--
(i) 44 percent for American Indian and
Alaska Native households in Indian country; and
(ii) 27 percent for all other households in
the United States; and
(B) overcrowding in the Native Hawaiian population
is 36 percent as compared to 3 percent for all other
households in the United States;
(7) among the Native Hawaiian population, the needs of
Native Hawaiians, as that term is defined in section 801 of the
Native American Housing Assistance and Self-Determination Act
of 1996, as added by section 723 of this subtitle, eligible to
reside on the Hawaiian Home Lands are the most severe, as--
(A) the percentage of overcrowding in Native
Hawaiian households on the Hawaiian Home Lands is 36
percent; and
(B) approximately 13,000 Native Hawaiians, which
constitute 95 percent of the Native Hawaiians who are
eligible to reside on the Hawaiian Home Lands, are in
need of housing;
(8) applying the Department of Housing and Urban
Development guidelines--
(A) 70.8 percent of Native Hawaiians who either
reside or who are eligible to reside on the Hawaiian
Home Lands have incomes that fall below the median
family income; and
(B) 50 percent of Native Hawaiians who either
reside or who are eligible to reside on the Hawaiian
Home Lands have incomes below 30 percent of the median
family income;
(9) \1/3\ of those Native Hawaiians who are eligible to
reside on the Hawaiian Home Lands pay more than 30 percent of
their income for shelter, and \1/2\ of those Native Hawaiians
face overcrowding;
(10) the extraordinarily severe housing needs of Native
Hawaiians demonstrate that Native Hawaiians who either reside
on, or are eligible to reside on, Hawaiian Home Lands have been
denied equal access to Federal low-income housing assistance
programs available to other qualified residents of the United
States, and that a more effective means of addressing their
housing needs must be authorized;
(11) consistent with the recommendations of the National
Commission on American Indian, Alaska Native, and Native
Hawaiian Housing, and in order to address the continuing
prevalence of extraordinarily severe housing needs among Native
Hawaiians who either reside or are eligible to reside on the
Hawaiian Home Lands, Congress finds it necessary to extend the
Federal low-income housing assistance available to American
Indians and Alaska Natives under the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101
et seq.) to those Native Hawaiians;
(12) under the treatymaking power of the United States,
Congress had the constitutional authority to confirm a treaty
between the United States and the government that represented
the Hawaiian people, and from 1826 until 1893, the United
States recognized the independence of the Kingdom of Hawaii,
extended full diplomatic recognition to the Hawaiian
Government, and entered into treaties and conventions with the
Hawaiian monarchs to govern commerce and navigation in 1826,
1842, 1849, 1875, and 1887;
(13) the United States has recognized and reaffirmed that--
(A) Native Hawaiians have a cultural, historic, and
land-based link to the indigenous people who exercised
sovereignty over the Hawaiian Islands, and that group
has never relinquished its claims to sovereignty or its
sovereign lands;
(B) Congress does not extend services to Native
Hawaiians because of their race, but because of their
unique status as the indigenous people of a once
sovereign nation as to whom the United States has
established a trust relationship;
(C) Congress has also delegated broad authority to
administer a portion of the Federal trust
responsibility to the State of Hawaii;
(D) the political status of Native Hawaiians is
comparable to that of American Indians and Alaska
Natives; and
(E) the aboriginal, indigenous people of the United
States have--
(i) a continuing right to autonomy in their
internal affairs; and
(ii) an ongoing right of self-determination
and self-governance that has never been
extinguished;
(14) the political relationship between the United States
and the Native Hawaiian people has been recognized and
reaffirmed by the United States as evidenced by the inclusion
of Native Hawaiians in--
(A) the Native American Programs Act of 1974 (42
U.S.C. 2291 et seq.);
(B) the American Indian Religious Freedom Act (42
U.S.C. 1996 et seq.);
(C) the National Museum of the American Indian Act
(20 U.S.C. 80q et seq.);
(D) the Native American Graves Protection and
Repatriation Act (25 U.S.C. 3001 et seq.);
(E) the National Historic Preservation Act (16
U.S.C. 470 et seq.);
(F) the Native American Languages Act of 1992 (106
Stat. 3434);
(G) the American Indian, Alaska Native and Native
Hawaiian Culture and Arts Development Act (20 U.S.C.
4401 et seq.);
(H) the Job Training Partnership Act (29 U.S.C.
1501 et seq.); and
(I) the Older Americans Act of 1965 (42 U.S.C. 3001
et seq.); and
(15) in the area of housing, the United States has
recognized and reaffirmed the political relationship with the
Native Hawaiian people through--
(A) the enactment of the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108 et seq.), which set aside
approximately 200,000 acres of public lands that became
known as Hawaiian Home Lands in the Territory of Hawaii
that had been ceded to the United States for
homesteading by Native Hawaiians in order to
rehabilitate a landless and dying people;
(B) the enactment of the Act entitled ``An Act to
provide for the admission of the State of Hawaii into
the Union'', approved March 18, 1959 (73 Stat. 4)--
(i) by ceding to the State of Hawaii title
to the public lands formerly held by the United
States, and mandating that those lands be held
in public trust, for the betterment of the
conditions of Native Hawaiians, as that term is
defined in section 201 of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.);
and
(ii) by transferring the United States
responsibility for the administration of
Hawaiian Home Lands to the State of Hawaii, but
retaining the authority to enforce the trust,
including the exclusive right of the United
States to consent to any actions affecting the
lands which comprise the corpus of the trust
and any amendments to the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.),
enacted by the legislature of the State of
Hawaii affecting the rights of beneficiaries
under the Act;
(C) the authorization of mortgage loans insured by
the Federal Housing Administration for the purchase,
construction, or refinancing of homes on Hawaiian Home
Lands under the National Housing Act (Public Law 479;
73d Congress; 12 U.S.C. 1701 et seq.);
(D) authorizing Native Hawaiian representation on
the National Commission on American Indian, Alaska
Native, and Native Hawaiian Housing under Public Law
101-235;
(E) the inclusion of Native Hawaiians in the
definition under section 3764 of title 38, United
States Code, applicable to subchapter V of chapter 37
of title 38, United States Code (relating to a housing
loan program for Native American veterans); and
(F) the enactment of the Hawaiian Home Lands
Recovery Act (109 Stat. 357; 48 U.S.C. 491, note prec.)
which establishes a process for the conveyance of
Federal lands to the Department of Hawaiian Homes Lands
that are equivalent in value to lands acquired by the
United States from the Hawaiian Home Lands inventory.
SEC. 723. HOUSING ASSISTANCE.
The Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4101 et seq.) is amended by adding at the end the
following:
``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS
``SEC. 801. DEFINITIONS.
``In this title:
``(1) Department of hawaiian home lands; department.--The
term `Department of Hawaiian Home Lands' or `Department' means
the agency or department of the government of the State of
Hawaii that is responsible for the administration of the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).
``(2) Director.--The term `Director' means the Director of
the Department of Hawaiian Home Lands.
``(3) Elderly families; near-elderly families.--
``(A) In general.--The term `elderly family' or
`near-elderly family' means a family whose head (or his
or her spouse), or whose sole member, is--
``(i) for an elderly family, an elderly
person; or
``(ii) for a near-elderly family, a near-
elderly person.
``(B) Certain families included.--The term `elderly
family' or `near-elderly family' includes--
``(i) two or more elderly persons or near-
elderly persons, as the case may be, living
together; and
``(ii) one or more persons described in
clause (i) living with one or more persons
determined under the housing plan to be
essential to their care or well-being.
``(4) Hawaiian home lands.--The term `Hawaiian Home Lands'
means lands that--
``(A) have the status as Hawaiian home lands under
section 204 of the Hawaiian Homes Commission Act,
1920(42 Stat. 110); or
``(B) are acquired pursuant to that Act.
``(5) Housing area.--The term `housing area' means an area
of Hawaiian Home Lands with respect to which the Department of
Hawaiian Home Lands is authorized to provide assistance for
affordable housing under this Act.
``(6) Housing entity.--The term `housing entity' means the
Department of Hawaiian Home Lands.
``(7) Housing plan.--The term `housing plan' means a plan
developed by the Department of Hawaiian Home Lands.
``(8) Median income.--The term `median income' means, with
respect to an area that is a Hawaiian housing area, the greater
of--
``(A) the median income for the Hawaiian housing
area, which shall be determined by the Secretary; or
``(B) the median income for the State of Hawaii.
``(9) Native hawaiian.--The term `Native Hawaiian' means
any individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people, who,
prior to 1778, occupied and exercised sovereignty in
the area that currently constitutes the State of
Hawaii, as evidenced by--
``(i) genealogical records;
``(ii) verification by kupuna (elders) or
kama'aina (long-term community residents); or
``(iii) birth records of the State of
Hawaii.
``SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING
ACTIVITIES.
``(a) Grant Authority.--For each fiscal year, the Secretary shall
(to the extent amounts are made available to carry out this title) make
a grant under this title to the Department of Hawaiian Home Lands to
carry out affordable housing activities for Native Hawaiian families
who are eligible to reside on the Hawaiian Home Lands.
``(b) Plan Requirement.--
``(1) In general.--The Secretary may make a grant under
this title to the Department of Hawaiian Home Lands for a
fiscal year only if--
``(A) the Director has submitted to the Secretary a
housing plan for that fiscal year; and
``(B) the Secretary has determined under section
804 that the housing plan complies with the
requirements of section 803.
``(2) Waiver.--The Secretary may waive the applicability of
the requirements under paragraph (1), in part, if the Secretary
finds that the Department of Hawaiian Home Lands has not
complied or cannot comply with those requirements due to
circumstances beyond the control of the Department of Hawaiian
Home Lands.
``(c) Use of Affordable Housing Activities Under Plan.--Except as
provided in subsection (e), amounts provided under a grant under this
section may be used only for affordable housing activities under this
title that are consistent with a housing plan approved under section
804.
``(d) Administrative Expenses.--
``(1) In general.--The Secretary shall, by regulation,
authorize the Department of Hawaiian Home Lands to use a
percentage of any grant amounts received under this title for
any reasonable administrative and planning expenses of the
Department relating to carrying out this title and activities
assisted with those amounts.
``(2) Administrative and planning expenses.--The
administrative and planning expenses referred to in paragraph
(1) include--
``(A) costs for salaries of individuals engaged in
administering and managing affordable housing
activities assisted with grant amounts provided under
this title; and
``(B) expenses incurred in preparing a housing plan
under section 803.
``(e) Public-Private Partnerships.--The Director shall make all
reasonable efforts, consistent with the purposes of this title, to
maximize participation by the private sector, including nonprofit
organizations and for-profit entities, in implementing a housing plan
that has been approved by the Secretary under section 803.
``SEC. 803. HOUSING PLAN.
``(a) Plan Submission.--The Secretary shall--
``(1) require the Director to submit a housing plan under
this section for each fiscal year; and
``(2) provide for the review of each plan submitted under
paragraph (1).
``(b) Five-Year Plan.--Each housing plan under this section shall--
``(1) be in a form prescribed by the Secretary; and
``(2) contain, with respect to the 5-year period beginning
with the fiscal year for which the plan is submitted, the
following information:
``(A) Mission statement.--A general statement of
the mission of the Department of Hawaiian Home Lands to
serve the needs of the low-income families to be served
by the Department.
``(B) Goal and objectives.--A statement of the
goals and objectives of the Department of Hawaiian Home
Lands to enable the Department to serve the needs
identified in subparagraph (A) during the period.
``(C) Activities plans.--An overview of the
activities planned during the period including an
analysis of the manner in which the activities will
enable the Department to meet its mission, goals, and
objectives.
``(c) One-Year Plan.--A housing plan under this section shall--
``(1) be in a form prescribed by the Secretary; and
``(2) contain the following information relating to the
fiscal year for which the assistance under this title is to be
made available:
``(A) Goals and objectives.--A statement of the
goals and objectives to be accomplished during the
period covered by the plan.
``(B) Statement of needs.--A statement of the
housing needs of the low-income families served by the
Department and the means by which those needs will be
addressed during the period covered by the plan,
including--
``(i) a description of the estimated
housing needs and the need for assistance for
the low-income families to be served by the
Department, including a description of the
manner in which the geographical distribution
of assistance is consistent with--
``(I) the geographical needs of
those families; and
``(II) needs for various categories
of housing assistance; and
``(ii) a description of the estimated
housing needs for all families to be served by
the Department.
``(C) Financial resources.--An operating budget for
the Department of Hawaiian Home Lands, in a form
prescribed by the Secretary, that includes--
``(i) an identification and a description
of the financial resources reasonably available
to the Department to carry out the purposes of
this title, including an explanation of the
manner in which amounts made available will be
used to leverage additional resources; and
``(ii) the uses to which the resources
described in clause (i) will be committed,
including--
``(I) eligible and required
affordable housing activities; and
``(II) administrative expenses.
``(D) Affordable housing resources.--A statement of
the affordable housing resources currently available at
the time of the submittal of the plan and to be made
available during the period covered by the plan,
including--
``(i) a description of the significant
characteristics of the housing market in the
State of Hawaii, including the availability of
housing from other public sources, private
market housing;
``(ii) the manner in which the
characteristics referred to in clause (i)
influence the decision of the Department of
Hawaiian Home Lands to use grant amounts to be
provided under this title for--
``(I) rental assistance;
``(II) the production of new units;
``(III) the acquisition of existing
units; or
``(IV) the rehabilitation of units;
``(iii) a description of the structure,
coordination, and means of cooperation between
the Department of Hawaiian Home Lands and any
other governmental entities in the development,
submission, or implementation of housing plans,
including a description of--
``(I) the involvement of private,
public, and nonprofit organizations and
institutions;
``(II) the use of loan guarantees
under section 184A of the Housing and
Community Development Act of 1992; and
``(III) other housing assistance
provided by the United States,
including loans, grants, and mortgage
insurance;
``(iv) a description of the manner in which
the plan will address the needs identified
pursuant to subparagraph (C);
``(v) a description of--
``(I) any existing or anticipated
homeownership programs and rental
programs to be carried out during the
period covered by the plan; and
``(II) the requirements and
assistance available under the programs
referred to in subclause (I);
``(vi) a description of--
``(I) any existing or anticipated
housing rehabilitation programs
necessary to ensure the long-term
viability of the housing to be carried
out during the period covered by the
plan; and
``(II) the requirements and
assistance available under the programs
referred to in subclause (I);
``(vii) a description of--
``(I) all other existing or
anticipated housing assistance provided
by the Department of Hawaiian Home
Lands during the period covered by the
plan, including--
``(aa) transitional
housing;
``(bb) homeless housing;
``(cc) college housing; and
``(dd) supportive services
housing; and
``(II) the requirements and
assistance available under such
programs;
``(viii)(I) a description of any housing to
be demolished or disposed of;
``(II) a timetable for that demolition or
disposition; and
``(III) any other information required by
the Secretary with respect to that demolition
or disposition;
``(ix) a description of the manner in which
the Department of Hawaiian Home Lands will
coordinate with welfare agencies in the State
of Hawaii to ensure that residents of the
affordable housing will be provided with access
to resources to assist in obtaining employment
and achieving self-sufficiency;
``(x) a description of the requirements
established by the Department of Hawaiian Home
Lands to--
``(I) promote the safety of
residents of the affordable housing;
``(II) facilitate the undertaking
of crime prevention measures;
``(III) allow resident input and
involvement, including the
establishment of resident
organizations; and
``(IV) allow for the coordination
of crime prevention activities between
the Department and local law
enforcement officials; and
``(xi) a description of the entities that
will carry out the activities under the plan,
including the organizational capacity and key
personnel of the entities.
``(E) Certification of compliance.--Evidence of
compliance that shall include, as appropriate--
``(i) a certification that the Department
of Hawaiian Home Lands will comply with--
``(I) title VI of the Civil Rights
Act of 1964 (42 U.S.C. 2000d et seq.)
or with the Fair Housing Act (42 U.S.C.
3601 et seq.) in carrying out this
title, to the extent that such title is
applicable; and
``(II) other applicable Federal
statutes;
``(ii) a certification that the Department
will require adequate insurance coverage for
housing units that are owned and operated or
assisted with grant amounts provided under this
title, in compliance with such requirements as
may be established by the Secretary;
``(iii) a certification that policies are
in effect and are available for review by the
Secretary and the public governing the
eligibility, admission, and occupancy of
families for housing assisted with grant
amounts provided under this title;
``(iv) a certification that policies are in
effect and are available for review by the
Secretary and the public governing rents
charged, including the methods by which such
rents or homebuyer payments are determined, for
housing assisted with grant amounts provided
under this title; and
``(v) a certification that policies are in
effect and are available for review by the
Secretary and the public governing the
management and maintenance of housing assisted
with grant amounts provided under this title.
``(d) Applicability of Civil Rights Statutes.--
``(1) In general.--To the extent that the requirements of
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.) or of the Fair Housing Act (42 U.S.C. 3601 et seq.) apply
to assistance provided under this title, nothing in the
requirements concerning discrimination on the basis of race
shall be construed to prevent the provision of assistance under
this title--
``(A) to the Department of Hawaiian Home Lands on
the basis that the Department served Native Hawaiians;
or
``(B) to an eligible family on the basis that the
family is a Native Hawaiian family.
``(2) Civil rights.--Program eligibility under this title
may be restricted to Native Hawaiians. Subject to the preceding
sentence, no person may be discriminated against on the basis
of race, color, national origin, religion, sex, familial
status, or disability.
``(e) Use of Nonprofit Organizations.--As a condition of receiving
grant amounts under this title, the Department of Hawaiian Home Lands
shall, to the extent practicable, provide for private nonprofit
organizations experienced in the planning and development of affordable
housing for Native Hawaiians to carry out affordable housing activities
with those grant amounts.
``SEC. 804. REVIEW OF PLANS.
``(a) Review and Notice.--
``(1) Review.--
``(A) In general.--The Secretary shall conduct a
review of a housing plan submitted to the Secretary
under section 803 to ensure that the plan complies with
the requirements of that section.
``(B) Limitation.--The Secretary shall have the
discretion to review a plan referred to in subparagraph
(A) only to the extent that the Secretary considers
that the review is necessary.
``(2) Notice.--
``(A) In general.--Not later than 60 days after
receiving a plan under section 803, the Secretary shall
notify the Director of the Department of Hawaiian Home
Lands whether the plan complies with the requirements
under that section.
``(B) Effect of failure of secretary to take
action.--For purposes of this title, if the Secretary
does not notify the Director, as required under this
subsection and subsection (b), upon the expiration of
the 60-day period described in subparagraph (A)--
``(i) the plan shall be considered to have
been determined to comply with the requirements
under section 803; and
``(ii) the Director shall be considered to
have been notified of compliance.
``(b) Notice of Reasons for Determination of Noncompliance.--If the
Secretary determines that a plan submitted under section 803 does not
comply with the requirements of that section, the Secretary shall
specify in the notice under subsection (a)--
``(1) the reasons for noncompliance; and
``(2) any modifications necessary for the plan to meet the
requirements of section 803.
``(c) Review.--
``(1) In general.--After the Director of the Department of
Hawaiian Home Lands submits a housing plan under section 803,
or any amendment or modification to the plan to the Secretary,
to the extent that the Secretary considers such action to be
necessary to make a determination under this subsection, the
Secretary shall review the plan (including any amendments or
modifications thereto) to determine whether the contents of the
plan--
``(A) set forth the information required by section
803 to be contained in the housing plan;
``(B) are consistent with information and data
available to the Secretary; and
``(C) are not prohibited by or inconsistent with
any provision of this Act or any other applicable law.
``(2) Incomplete plans.--If the Secretary determines under
this subsection that any of the appropriate certifications
required under section 803(c)(2)(E) are not included in a plan,
the plan shall be considered to be incomplete.
``(d) Updates to Plan.--
``(1) In general.--Subject to paragraph (2), after a plan
under section 803 has been submitted for a fiscal year, the
Director of the Department of Hawaiian Home Lands may comply
with the provisions of that section for any succeeding fiscal
year (with respect to information included for the 5-year
period under section 803(b) or for the 1-year period under
section 803(c)) by submitting only such information regarding
such changes as may be necessary to update the plan previously
submitted.
``(2) Complete plans.--The Director shall submit a complete
plan under section 803 not later than 4 years after submitting
an initial plan under that section, and not less frequently
than every 4 years thereafter.
``(e) Effective Date.--This section and section 803 shall take
effect on the date provided by the Secretary pursuant to section 807(a)
to provide for timely submission and review of the housing plan as
necessary for the provision of assistance under this title for fiscal
year 2001.
``SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.
``(a) Program Income.--
``(1) Authority to retain.--The Department of Hawaiian Home
Lands may retain any program income that is realized from any
grant amounts received by the Department under this title if--
``(A) that income was realized after the initial
disbursement of the grant amounts received by the
Department; and
``(B) the Director agrees to use the program income
for affordable housing activities in accordance with
the provisions of this title.
``(2) Prohibition of reduction of grant.--The Secretary may
not reduce the grant amount for the Department of Hawaiian Home
Lands based solely on--
``(A) whether the Department retains program income
under paragraph (1); or
``(B) the amount of any such program income
retained.
``(3) Exclusion of amounts.--The Secretary may, by
regulation, exclude from consideration as program income any
amounts determined to be so small that compliance with the
requirements of this subsection would create an unreasonable
administrative burden on the Department.
``(b) Labor Standards.--
``(1) In general.--Any contract or agreement for
assistance, sale, or lease pursuant to this title shall
contain--
``(A) a provision requiring that an amount not less
than the wages prevailing in the locality, as
determined or adopted (subsequent to a determination
under applicable State or local law) by the Secretary,
shall be paid to all architects, technical engineers,
draftsmen, technicians employed in the development and
all maintenance, and laborers and mechanics employed in
the operation, of the affordable housing project
involved; and
``(B) a provision that an amount not less than the
wages prevailing in the locality, as predetermined by
the Secretary of Labor pursuant to the Act commonly
known as the `Davis-Bacon Act' (46 Stat. 1494; chapter
411; 40 U.S.C. 276a et seq.) shall be paid to all
laborers and mechanics employed in the development of
the affordable housing involved.
``(2) Exceptions.--Paragraph (1) and provisions relating to
wages required under paragraph (1) in any contract or agreement
for assistance, sale, or lease under this title, shall not
apply to any individual who performs the services for which the
individual volunteered and who is not otherwise employed at any
time in the construction work and received no compensation or
is paid expenses, reasonable benefits, or a nominal fee for
those services.
``SEC. 806. ENVIRONMENTAL REVIEW.
``(a) In General.--
``(1) Release of funds.--
``(A) In general.--The Secretary may carry out the
alternative environmental protection procedures
described in subparagraph (B) in order to ensure--
``(i) that the policies of the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and other provisions of law that
further the purposes of such Act (as specified
in regulations issued by the Secretary) are
most effectively implemented in connection with
the expenditure of grant amounts provided under
this title; and
``(ii) to the public undiminished
protection of the environment.
``(B) Alternative environmental protection
procedure.--In lieu of applying environmental
protection procedures otherwise applicable, the
Secretary may by regulation provide for the release of
funds for specific projects to the Department of
Hawaiian Home Lands if the Director of the Department
assumes all of the responsibilities for environmental
review, decisionmaking, and action under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), and such other provisions of law as the
regulations of the Secretary specify, that would apply
to the Secretary were the Secretary to undertake those
projects as Federal projects.
``(2) Regulations.--
``(A) In general.--The Secretary shall issue
regulations to carry out this section only after
consultation with the Council on Environmental Quality.
``(B) Contents.--The regulations issued under this
paragraph shall--
``(i) provide for the monitoring of the
environmental reviews performed under this
section;
``(ii) in the discretion of the Secretary,
facilitate training for the performance of such
reviews; and
``(iii) provide for the suspension or
termination of the assumption of
responsibilities under this section.
``(3) Effect on assumed responsibility.--The duty of the
Secretary under paragraph (2)(B) shall not be construed to
limit or reduce any responsibility assumed by the Department of
Hawaiian Home Lands for grant amounts with respect to any
specific release of funds.
``(b) Procedure.--
``(1) In general.--The Secretary shall authorize the
release of funds subject to the procedures under this section
only if, not less than 15 days before that approval and before
any commitment of funds to such projects, the Director of the
Department of Hawaiian Home Lands submits to the Secretary a
request for such release accompanied by a certification that
meets the requirements of subsection (c).
``(2) Effect of approval.--The approval of the Secretary of
a certification described in paragraph (1) shall be deemed to
satisfy the responsibilities of the Secretary under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) and such other provisions of law as the regulations of
the Secretary specify to the extent that those responsibilities
relate to the releases of funds for projects that are covered
by that certification.
``(c) Certification.--A certification under the procedures under
this section shall--
``(1) be in a form acceptable to the Secretary;
``(2) be executed by the Director of the Department of
Hawaiian Home Lands;
``(3) specify that the Department of Hawaiian Home Lands
has fully carried out its responsibilities as described under
subsection (a); and
``(4) specify that the Director--
``(A) consents to assume the status of a
responsible Federal official under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) and each provision of law specified in
regulations issued by the Secretary to the extent that
those laws apply by reason of subsection (a); and
``(B) is authorized and consents on behalf of the
Department of Hawaiian Home Lands and the Director to
accept the jurisdiction of the Federal courts for the
purpose of enforcement of the responsibilities of the
Director of the Department of Hawaiian Home Lands as
such an official.
``SEC. 807. REGULATIONS.
``The Secretary shall issue final regulations necessary to carry
out this title not later than October 1, 2001.
``SEC. 808. EFFECTIVE DATE.
``Except as otherwise expressly provided in this title, this title
shall take effect on the date of the enactment of the American
Homeownership and Economic Opportunity Act of 2000.
``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.
``(a) National Objectives and Eligible Families.--
``(1) Primary objective.--The national objectives of this
title are--
``(A) to assist and promote affordable housing
activities to develop, maintain, and operate affordable
housing in safe and healthy environments for occupancy
by low-income Native Hawaiian families;
``(B) to ensure better access to private mortgage
markets and to promote self-sufficiency of low-income
Native Hawaiian families;
``(C) to coordinate activities to provide housing
for low-income Native Hawaiian families with Federal,
State and local activities to further economic and
community development;
``(D) to plan for and integrate infrastructure
resources on the Hawaiian Home Lands with housing
development; and
``(E) to--
``(i) promote the development of private
capital markets; and
``(ii) allow the markets referred to in
clause (i) to operate and grow, thereby
benefiting Native Hawaiian communities.
``(2) Eligible families.--
``(A) In general.--Except as provided under
subparagraph (B), assistance for eligible housing
activities under this title shall be limited to low-
income Native Hawaiian families.
``(B) Exception to low-income requirement.--
``(i) In general.--The Director may provide
assistance for homeownership activities under--
``(I) section 810(b);
``(II) model activities under
section 810(f); or
``(III) loan guarantee activities
under section 184A of the Housing and
Community Development Act of 1992 to
Native Hawaiian families who are not
low-income families, to the extent that
the Secretary approves the activities
under that section to address a need
for housing for those families that
cannot be reasonably met without that
assistance.
``(ii) Limitations.--The Secretary shall
establish limitations on the amount of
assistance that may be provided under this
title for activities for families that are not
low-income families.
``(C) Other families.--Notwithstanding paragraph
(1), the Director may provide housing or housing
assistance provided through affordable housing
activities assisted with grant amounts under this title
to a family that is not composed of Native Hawaiians
if--
``(i) the Department determines that the
presence of the family in the housing involved
is essential to the well-being of Native
Hawaiian families; and
``(ii) the need for housing for the family
cannot be reasonably met without the
assistance.
``(D) Preference.--
``(i) In general.--A housing plan submitted
under section 803 may authorize a preference,
for housing or housing assistance provided
through affordable housing activities assisted
with grant amounts provided under this title to
be provided, to the extent practicable, to
families that are eligible to reside on the
Hawaiian Home Lands.
``(ii) Application.--In any case in which a
housing plan provides for preference described
in clause (i), the Director shall ensure that
housing activities that are assisted with grant
amounts under this title are subject to that
preference.
``(E) Use of nonprofit organizations.--As a
condition of receiving grant amounts under this title,
the Department of Hawaiian Home Lands, shall to the
extent practicable, provide for private nonprofit
organizations experienced in the planning and
development of affordable housing for Native Hawaiians
to carry out affordable housing activities with those
grant amounts.
``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
``(a) In General.--Affordable housing activities under this section
are activities conducted in accordance with the requirements of section
811 to--
``(1) develop or to support affordable housing for rental
or homeownership; or
``(2) provide housing services with respect to affordable
housing, through the activities described in subsection (b).
``(b) Activities.--The activities described in this subsection are
the following:
``(1) Development.--The acquisition, new construction,
reconstruction, or moderate or substantial rehabilitation of
affordable housing, which may include--
``(A) real property acquisition;
``(B) site improvement;
``(C) the development of utilities and utility
services;
``(D) conversion;
``(E) demolition;
``(F) financing;
``(G) administration and planning; and
``(H) other related activities.
``(2) Housing services.--The provision of housing-related
services for affordable housing, including--
``(A) housing counseling in connection with rental
or homeownership assistance;
``(B) the establishment and support of resident
organizations and resident management corporations;
``(C) energy auditing;
``(D) activities related to the provisions of self-
sufficiency and other services; and
``(E) other services related to assisting owners,
tenants, contractors, and other entities participating
or seeking to participate in other housing activities
assisted pursuant to this section.
``(3) Housing management services.--The provision of
management services for affordable housing, including--
``(A) the preparation of work specifications;
``(B) loan processing;
``(C) inspections;
``(D) tenant selection;
``(E) management of tenant-based rental assistance;
and
``(F) management of affordable housing projects.
``(4) Crime prevention and safety activities.--The
provision of safety, security, and law enforcement measures and
activities appropriate to protect residents of affordable
housing from crime.
``(5) Model activities.--Housing activities under model
programs that are--
``(A) designed to carry out the purposes of this
title; and
``(B) specifically approved by the Secretary as
appropriate for the purpose referred to in subparagraph
(A).
``SEC. 811. PROGRAM REQUIREMENTS.
``(a) Rents.--
``(1) Establishment.--Subject to paragraph (2), as a
condition to receiving grant amounts under this title, the
Director shall develop written policies governing rents and
homebuyer payments charged for dwelling units assisted under
this title, including methods by which such rents and homebuyer
payments are determined.
``(2) Maximum rent.--In the case of any low-income family
residing in a dwelling unit assisted with grant amounts under
this title, the monthly rent or homebuyer payment (as
applicable) for that dwelling unit may not exceed 30 percent of
the monthly adjusted income of that family.
``(b) Maintenance and Efficient Operation.--
``(1) In general.--The Director shall, using amounts of any
grants received under this title, reserve and use for operating
under section 810 such amounts as may be necessary to provide
for the continued maintenance and efficient operation of such
housing.
``(2) Disposal of certain housing.--This subsection may not
be construed to prevent the Director, or any entity funded by
the Department, from demolishing or disposing of housing,
pursuant to regulations established by the Secretary.
``(c) Insurance Coverage.--As a condition to receiving grant
amounts under this title, the Director shall require adequate insurance
coverage for housing units that are owned or operated or assisted with
grant amounts provided under this title.
``(d) Eligibility for Admission.--As a condition to receiving grant
amounts under this title, the Director shall develop written policies
governing the eligibility, admission, and occupancy of families for
housing assisted with grant amounts provided under this title.
``(e) Management and Maintenance.--As a condition to receiving
grant amounts under this title, the Director shall develop policies
governing the management and maintenance of housing assisted with grant
amounts under this title.
``SEC. 812. TYPES OF INVESTMENTS.
``(a) In General.--Subject to section 811 and an applicable housing
plan approved under section 803, the Director shall have--
``(1) the discretion to use grant amounts for affordable
housing activities through the use of--
``(A) equity investments;
``(B) interest-bearing loans or advances;
``(C) noninterest-bearing loans or advances;
``(D) interest subsidies;
``(E) the leveraging of private investments; or
``(F) any other form of assistance that the
Secretary determines to be consistent with the purposes
of this title; and
``(2) the right to establish the terms of assistance
provided with funds referred to in paragraph (1).
``(b) Investments.--The Director may invest grant amounts for the
purposes of carrying out affordable housing activities in investment
securities and other obligations, as approved by the Secretary.
``SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.
``(a) In General.--Housing shall qualify for affordable housing for
purposes of this title only if--
``(1) each dwelling unit in the housing--
``(A) in the case of rental housing, is made
available for occupancy only by a family that is a low-
income family at the time of the initial occupancy of
that family of that unit; and
``(B) in the case of housing for homeownership, is
made available for purchase only by a family that is a
low-income family at the time of purchase; and
``(2) each dwelling unit in the housing will remain
affordable, according to binding commitments satisfactory to
the Secretary, for--
``(A) the remaining useful life of the property (as
determined by the Secretary) without regard to the term
of the mortgage or to transfer of ownership; or
``(B) such other period as the Secretary determines
is the longest feasible period of time consistent with
sound economics and the purposes of this title, except
upon a foreclosure by a lender (or upon other transfer
in lieu of foreclosure) if that action--
``(i) recognizes any contractual or legal
rights of any public agency, nonprofit sponsor,
or other person or entity to take an action
that would--
``(I) avoid termination of low-
income affordability, in the case of
foreclosure; or
``(II) transfer ownership in lieu
of foreclosure; and
``(ii) is not for the purpose of avoiding
low-income affordability restrictions, as
determined by the Secretary.
``(b) Exception.--Notwithstanding subsection (a), housing assisted
pursuant to section 809(a)(2)(B) shall be considered affordable housing
for purposes of this title.
``SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.
``(a) Leases.--Except to the extent otherwise provided by or
inconsistent with the laws of the State of Hawaii, in renting dwelling
units in affordable housing assisted with grant amounts provided under
this title, the Director, owner, or manager shall use leases that--
``(1) do not contain unreasonable terms and conditions;
``(2) require the Director, owner, or manager to maintain
the housing in compliance with applicable housing codes and
quality standards;
``(3) require the Director, owner, or manager to give
adequate written notice of termination of the lease, which
shall be the period of time required under applicable State or
local law;
``(4) specify that, with respect to any notice of eviction
or termination, notwithstanding any State or local law, a
resident shall be informed of the opportunity, before any
hearing or trial, to examine any relevant documents, record, or
regulations directly related to the eviction or termination;
``(5) require that the Director, owner, or manager may not
terminate the tenancy, during the term of the lease, except for
serious or repeated violation of the terms and conditions of
the lease, violation of applicable Federal, State, or local
law, or for other good cause; and
``(6) provide that the Director, owner, or manager may
terminate the tenancy of a resident for any activity, engaged
in by the resident, any member of the household of the
resident, or any guest or other person under the control of the
resident, that--
``(A) threatens the health or safety of, or right
to peaceful enjoyment of the premises by, other
residents or employees of the Department, owner, or
manager;
``(B) threatens the health or safety of, or right
to peaceful enjoyment of their premises by, persons
residing in the immediate vicinity of the premises; or
``(C) is criminal activity (including drug-related
criminal activity) on or off the premises.
``(b) Tenant or Homebuyer Selection.--As a condition to receiving
grant amounts under this title, the Director shall adopt and use
written tenant and homebuyer selection policies and criteria that--
``(1) are consistent with the purpose of providing housing
for low-income families;
``(2) are reasonably related to program eligibility and the
ability of the applicant to perform the obligations of the
lease; and
``(3) provide for--
``(A) the selection of tenants and homebuyers from
a written waiting list in accordance with the policies
and goals set forth in an applicable housing plan
approved under section 803; and
``(B) the prompt notification in writing of any
rejected applicant of the grounds for that rejection.
``SEC. 815. REPAYMENT.
``If the Department of Hawaiian Home Lands uses grant amounts to
provide affordable housing under activities under this title and, at
any time during the useful life of the housing, the housing does not
comply with the requirement under section 813(a)(2), the Secretary
shall--
``(1) reduce future grant payments on behalf of the
Department by an amount equal to the grant amounts used for
that housing (under the authority of section 819(a)(2)); or
``(2) require repayment to the Secretary of any amount
equal to those grant amounts.
``SEC. 816. ANNUAL ALLOCATION.
``For each fiscal year, the Secretary shall allocate any amounts
made available for assistance under this title for the fiscal year, in
accordance with the formula established pursuant to section 817 to the
Department of Hawaiian Home Lands if the Department complies with the
requirements under this title for a grant under this title.
``SEC. 817. ALLOCATION FORMULA.
``(a) Establishment.--The Secretary shall, by regulation issued not
later than the expiration of the 6-month period beginning on the date
of the enactment of the American Homeownership and Economic Opportunity
Act of 2000, in the manner provided under section 807, establish a
formula to provide for the allocation of amounts available for a fiscal
year for block grants under this title in accordance with the
requirements of this section.
``(b) Factors for Determination of Need.--The formula under
subsection (a) shall be based on factors that reflect the needs for
assistance for affordable housing activities, including--
``(1) the number of low-income dwelling units owned or
operated at the time pursuant to a contract between the
Director and the Secretary;
``(2) the extent of poverty and economic distress and the
number of Native Hawaiian families eligible to reside on the
Hawaiian Home Lands; and
``(3) any other objectively measurable conditions that the
Secretary and the Director may specify.
``(c) Other Factors for Consideration.--In establishing the formula
under subsection (a), the Secretary shall consider the relative
administrative capacities of the Department of Hawaiian Home Lands and
other challenges faced by the Department, including--
``(1) geographic distribution within Hawaiian Home Lands;
and
``(2) technical capacity.
``(d) Effective Date.--This section shall take effect on the date
of the enactment of the American Homeownership and Economic Opportunity
Act of 2000.
``SEC. 818. REMEDIES FOR NONCOMPLIANCE.
``(a) Actions by Secretary Affecting Grant Amounts.--
``(1) In general.--Except as provided in subsection (b), if
the Secretary finds after reasonable notice and opportunity for
a hearing that the Department of Hawaiian Home Lands has failed
to comply substantially with any provision of this title, the
Secretary shall--
``(A) terminate payments under this title to the
Department;
``(B) reduce payments under this title to the
Department by an amount equal to the amount of such
payments that were not expended in accordance with this
title; or
``(C) limit the availability of payments under this
title to programs, projects, or activities not affected
by such failure to comply.
``(2) Actions.--If the Secretary takes an action under
subparagraph (A), (B), or (C) of paragraph (1), the Secretary
shall continue that action until the Secretary determines that
the failure by the Department to comply with the provision has
been remedied by the Department and the Department is in
compliance with that provision.
``(b) Noncompliance Because of a Technical Incapacity.--The
Secretary may provide technical assistance for the Department, either
directly or indirectly, that is designed to increase the capability and
capacity of the Director of the Department to administer assistance
provided under this title in compliance with the requirements under
this title if the Secretary makes a finding under subsection (a), but
determines that the failure of the Department to comply substantially
with the provisions of this title--
``(1) is not a pattern or practice of activities
constituting willful noncompliance; and
``(2) is a result of the limited capability or capacity of
the Department of Hawaiian Home Lands.
``(c) Referral for Civil Action.--
``(1) Authority.--In lieu of, or in addition to, any action
that the Secretary may take under subsection (a), if the
Secretary has reason to believe that the Department of Hawaiian
Home Lands has failed to comply substantially with any
provision of this title, the Secretary may refer the matter to
the Attorney General of the United States with a recommendation
that an appropriate civil action be instituted.
``(2) Civil action.--Upon receiving a referral under
paragraph (1), the Attorney General may bring a civil action in
any United States district court of appropriate jurisdiction
for such relief as may be appropriate, including an action--
``(A) to recover the amount of the assistance
furnished under this title that was not expended in
accordance with this title; or
``(B) for mandatory or injunctive relief.
``(d) Review.--
``(1) In general.--If the Director receives notice under
subsection (a) of the termination, reduction, or limitation of
payments under this Act, the Director--
``(A) may, not later than 60 days after receiving
such notice, file with the United States Court of
Appeals for the Ninth Circuit, or in the United States
Court of Appeals for the District of Columbia, a
petition for review of the action of the Secretary; and
``(B) upon the filing of any petition under
subparagraph (A), shall forthwith transmit copies of
the petition to the Secretary and the Attorney General
of the United States, who shall represent the Secretary
in the litigation.
``(2) Procedure.--
``(A) In general.--The Secretary shall file in the
court a record of the proceeding on which the Secretary
based the action, as provided in section 2112 of title
28, United States Code.
``(B) Objections.--No objection to the action of
the Secretary shall be considered by the court unless
the Department has registered the objection before the
Secretary.
``(3) Disposition.--
``(A) Court proceedings.--
``(i) Jurisdiction of court.--The court
shall have jurisdiction to affirm or modify the
action of the Secretary or to set the action
aside in whole or in part.
``(ii) Findings of fact.--If supported by
substantial evidence on the record considered
as a whole, the findings of fact by the
Secretary shall be conclusive.
``(iii) Addition.--The court may order
evidence, in addition to the evidence submitted
for review under this subsection, to be taken
by the Secretary, and to be made part of the
record.
``(B) Secretary.--
``(i) In general.--The Secretary, by reason
of the additional evidence referred to in
subparagraph (A) and filed with the court--
``(I) may--
``(aa) modify the findings
of fact of the Secretary; or
``(bb) make new findings;
and
``(II) shall file--
``(aa) such modified or new
findings; and
``(bb) the recommendation
of the Secretary, if any, for
the modification or setting
aside of the original action of
the Secretary.
``(ii) Findings.--The findings referred to
in clause (i)(II)(bb) shall, with respect to a
question of fact, be considered to be
conclusive if those findings are--
``(I) supported by substantial
evidence on the record; and
``(II) considered as a whole.
``(4) Finality.--
``(A) In general.--Except as provided in
subparagraph (B), upon the filing of the record under
this subsection with the court--
``(i) the jurisdiction of the court shall
be exclusive; and
``(ii) the judgment of the court shall be
final.
``(B) Review by supreme court.--A judgment under
subparagraph (A) shall be subject to review by the
Supreme Court of the United States upon writ of
certiorari or certification, as provided in section
1254 of title 28, United States Code.
``SEC. 819. MONITORING OF COMPLIANCE.
``(a) Enforceable Agreements.--
``(1) In general.--The Director, through binding
contractual agreements with owners or other authorized
entities, shall ensure long-term compliance with the provisions
of this title.
``(2) Measures.--The measures referred to in paragraph (1)
shall provide for--
``(A) to the extent allowable by Federal and State
law, the enforcement of the provisions of this title by
the Department and the Secretary; and
``(B) remedies for breach of the provisions
referred to in paragraph (1).
``(b) Periodic Monitoring.--
``(1) In general.--Not less frequently than annually, the
Director shall review the activities conducted and housing
assisted under this title to assess compliance with the
requirements of this title.
``(2) Review.--Each review under paragraph (1) shall
include onsite inspection of housing to determine compliance
with applicable requirements.
``(3) Results.--The results of each review under paragraph
(1) shall be--
``(A) included in a performance report of the
Director submitted to the Secretary under section 820;
and
``(B) made available to the public.
``(c) Performance Measures.--The Secretary shall establish such
performance measures as may be necessary to assess compliance with the
requirements of this title.
``SEC. 820. PERFORMANCE REPORTS.
``(a) Requirement.--For each fiscal year, the Director shall--
``(1) review the progress the Department has made during
that fiscal year in carrying out the housing plan submitted by
the Department under section 803; and
``(2) submit a report to the Secretary (in a form
acceptable to the Secretary) describing the conclusions of the
review.
``(b) Content.--Each report submitted under this section for a
fiscal year shall--
``(1) describe the use of grant amounts provided to the
Department of Hawaiian Home Lands for that fiscal year;
``(2) assess the relationship of the use referred to in
paragraph (1) to the goals identified in the housing plan;
``(3) indicate the programmatic accomplishments of the
Department; and
``(4) describe the manner in which the Department would
change its housing plan submitted under section 803 as a result
of its experiences.
``(c) Submissions.--The Secretary shall--
``(1) establish a date for submission of each report under
this section;
``(2) review each such report; and
``(3) with respect to each such report, make
recommendations as the Secretary considers appropriate to carry
out the purposes of this title.
``(d) Public Availability.--
``(1) Comments by beneficiaries.--In preparing a report
under this section, the Director shall make the report publicly
available to the beneficiaries of the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108 et seq.) and give a sufficient amount
of time to permit those beneficiaries to comment on that report
before it is submitted to the Secretary (in such manner and at
such time as the Director may determine).
``(2) Summary of comments.--The report shall include a
summary of any comments received by the Director from
beneficiaries under paragraph (1) regarding the program to
carry out the housing plan.
``SEC. 821. REVIEW AND AUDIT BY SECRETARY.
``(a) Annual Review.--
``(1) In general.--The Secretary shall, not less frequently
than on an annual basis, make such reviews and audits as may be
necessary or appropriate to determine whether--
``(A) the Director has--
``(i) carried out eligible activities under
this title in a timely manner;
``(ii) carried out and made certifications
in accordance with the requirements and the
primary objectives of this title and with other
applicable laws; and
``(iii) a continuing capacity to carry out
the eligible activities in a timely manner;
``(B) the Director has complied with the housing
plan submitted by the Director under section 803; and
``(C) the performance reports of the Department
under section 821 are accurate.
``(2) Onsite visits.--Each review conducted under this
section shall, to the extent practicable, include onsite visits
by employees of the Department of Housing and Urban
Development.
``(b) Report by Secretary.--The Secretary shall give the Department
of Hawaiian Home Lands not less than 30 days to review and comment on a
report under this subsection. After taking into consideration the
comments of the Department, the Secretary may revise the report and
shall make the comments of the Department and the report with any
revisions, readily available to the public not later than 30 days after
receipt of the comments of the Department.
``(c) Effect of Reviews.--The Secretary may make appropriate
adjustments in the amount of annual grants under this title in
accordance with the findings of the Secretary pursuant to reviews and
audits under this section. The Secretary may adjust, reduce, or
withdraw grant amounts, or take other action as appropriate in
accordance with the reviews and audits of the Secretary under this
section, except that grant amounts already expended on affordable
housing activities may not be recaptured or deducted from future
assistance provided to the Department of Hawaiian Home Lands.
``SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.
``To the extent that the financial transactions of the Department
of Hawaiian Home Lands involving grant amounts under this title relate
to amounts provided under this title, those transactions may be audited
by the Comptroller General of the United States under such regulations
as may be prescribed by the Comptroller General. The Comptroller
General of the United States shall have access to all books, accounts,
records, reports, files, and other papers, things, or property
belonging to or in use by the Department of Hawaiian Home Lands
pertaining to such financial transactions and necessary to facilitate
the audit.
``SEC. 823. REPORTS TO CONGRESS.
``(a) In General.--Not later than 90 days after the conclusion of
each fiscal year in which assistance under this title is made
available, the Secretary shall submit to Congress a report that
contains--
``(1) a description of the progress made in accomplishing
the objectives of this title;
``(2) a summary of the use of funds available under this
title during the preceding fiscal year; and
``(3) a description of the aggregate outstanding loan
guarantees under section 184A of the Housing and Community
Development Act of 1992.
``(b) Related Reports.--The Secretary may require the Director to
submit to the Secretary such reports and other information as may be
necessary in order for the Secretary to prepare the report required
under subsection (a).
``SEC. 824. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Department of
Housing and Urban Development for grants under this title such sums as
may be necessary for each of fiscal years 2001, 2002, 2003, 2004, and
2005.''.
SEC. 724. LOAN GUARANTEES.
Subtitle E of title I of the Housing and Community Development Act
of 1992 is amended by inserting after section 184 (12 U.S.C. 1715z-13a)
the following:
``SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.
``(a) Definitions.--In this section:
``(1) Department of hawaiian home lands.--The term
`Department of Hawaiian Home Lands' means the agency or
department of the government of the State of Hawaii that is
responsible for the administration of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.).
``(2) Eligible entity.--The term `eligible entity' means a
Native Hawaiian family, the Department of Hawaiian Home Lands,
the Office of Hawaiian Affairs, and private nonprofit or
private for-profit organizations experienced in the planning
and development of affordable housing for Native Hawaiians.
``(3) Family.--The term `family' means one or more persons
maintaining a household, as the Secretary shall by regulation
provide.
``(4) Guarantee fund.--The term `Guarantee Fund' means the
Native Hawaiian Housing Loan Guarantee Fund established under
subsection (i).
``(5) Hawaiian home lands.--The term `Hawaiian Home Lands'
means lands that--
``(A) have the status of Hawaiian Home Lands under
section 204 of the Hawaiian Homes Commission Act (42
Stat. 110); or
``(B) are acquired pursuant to that Act.
``(6) Native hawaiian.--The term `Native Hawaiian' means
any individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people, who,
prior to 1778, occupied and exercised sovereignty in
the area that currently constitutes the State of
Hawaii, as evidenced by--
``(i) genealogical records;
``(ii) verification by kupuna (elders) or
kama'aina (long-term community residents); or
``(iii) birth records of the State of
Hawaii.
``(7) Office of hawaiian affairs.--The term `Office of
Hawaiian Affairs' means the entity of that name established
under the constitution of the State of Hawaii.
``(b) Authority.--To provide access to sources of private financing
to Native Hawaiian families who otherwise could not acquire housing
financing because of the unique legal status of the Hawaiian Home Lands
or as a result of a lack of access to private financial markets, the
Secretary may guarantee an amount not to exceed 100 percent of the
unpaid principal and interest that is due on an eligible loan under
subsection (b).
``(c) Eligible Loans.--Under this section, a loan is an eligible
loan if that loan meets the following requirements:
``(1) Eligible borrowers.--The loan is made only to a
borrower who is--
``(A) a Native Hawaiian family;
``(B) the Department of Hawaiian Home Lands;
``(C) the Office of Hawaiian Affairs; or
``(D) a private nonprofit organization experienced
in the planning and development of affordable housing
for Native Hawaiians.
``(2) Eligible housing.--
``(A) In general.--The loan will be used to
construct, acquire, or rehabilitate not more than 4-
family dwellings that are standard housing and are
located on Hawaiian Home Lands for which a housing plan
described in subparagraph (B) applies.
``(B) Housing plan.--A housing plan described in
this subparagraph is a housing plan that--
``(i) has been submitted and approved by
the Secretary under section 803 of the Native
American Housing Assistance and Self-
Determination Act of 1996; and
``(ii) provides for the use of loan
guarantees under this section to provide
affordable homeownership housing on Hawaiian
Home Lands.
``(3) Security.--The loan may be secured by any collateral
authorized under applicable Federal or State law.
``(4) Lenders.--
``(A) In general.--The loan shall be made only by a
lender approved by, and meeting qualifications
established by, the Secretary, including any lender
described in subparagraph (B), except that a loan
otherwise insured or guaranteed by an agency of the
Federal Government or made by the Department of
Hawaiian Home Lands from amounts borrowed from the
United States shall not be eligible for a guarantee
under this section.
``(B) Approval.--The following lenders shall be
considered to be lenders that have been approved by the
Secretary:
``(i) Any mortgagee approved by the
Secretary for participation in the single
family mortgage insurance program under title
II of the National Housing Act (12 U.S.C.A.
1707 et seq.).
``(ii) Any lender that makes housing loans
under chapter 37 of title 38, United States
Code, that are automatically guaranteed under
section 3702(d) of title 38, United States
Code.
``(iii) Any lender approved by the
Secretary of Agriculture to make guaranteed
loans for single family housing under the
Housing Act of 1949 (42 U.S.C.A. 1441 et seq.).
``(iv) Any other lender that is supervised,
approved, regulated, or insured by any agency
of the Federal Government.
``(5) Terms.--The loan shall--
``(A) be made for a term not exceeding 30 years;
``(B) bear interest (exclusive of the guarantee fee
under subsection (d) and service charges, if any) at a
rate agreed upon by the borrower and the lender and
determined by the Secretary to be reasonable, but not
to exceed the rate generally charged in the area (as
determined by the Secretary) for home mortgage loans
not guaranteed or insured by any agency or
instrumentality of the Federal Government;
``(C) involve a principal obligation not
exceeding--
``(i) 97.75 percent of the appraised value
of the property as of the date the loan is
accepted for guarantee (or 98.75 percent if the
value of the property is $50,000 or less); or
``(ii) the amount approved by the Secretary
under this section; and
``(D) involve a payment on account of the
property--
``(i) in cash or its equivalent; or
``(ii) through the value of any
improvements to the property made through the
skilled or unskilled labor of the borrower, as
the Secretary shall provide.
``(d) Certificate of Guarantee.--
``(1) Approval process.--
``(A) In general.--Before the Secretary approves
any loan for guarantee under this section, the lender
shall submit the application for the loan to the
Secretary for examination.
``(B) Approval.--If the Secretary approves the
application submitted under subparagraph (A), the
Secretary shall issue a certificate under this
subsection as evidence of the loan guarantee approved.
``(2) Standard for approval.--The Secretary may approve a
loan for guarantee under this section and issue a certificate
under this subsection only if the Secretary determines that
there is a reasonable prospect of repayment of the loan.
``(3) Effect.--
``(A) In general.--A certificate of guarantee
issued under this subsection by the Secretary shall be
conclusive evidence of the eligibility of the loan for
guarantee under this section and the amount of that
guarantee.
``(B) Evidence.--The evidence referred to in
subparagraph (A) shall be incontestable in the hands of
the bearer.
``(C) Full faith and credit.--The full faith and
credit of the United States is pledged to the payment
of all amounts agreed to be paid by the Secretary as
security for the obligations made by the Secretary
under this section.
``(4) Fraud and misrepresentation.--This subsection may not
be construed--
``(A) to preclude the Secretary from establishing
defenses against the original lender based on fraud or
material misrepresentation; or
``(B) to bar the Secretary from establishing by
regulations that are on the date of issuance or
disbursement, whichever is earlier, partial defenses to
the amount payable on the guarantee.
``(e) Guarantee Fee.--
``(1) In general.--The Secretary shall fix and collect a
guarantee fee for the guarantee of a loan under this section,
which may not exceed the amount equal to 1 percent of the
principal obligation of the loan.
``(2) Payment.--The fee under this subsection shall--
``(A) be paid by the lender at time of issuance of
the guarantee; and
``(B) be adequate, in the determination of the
Secretary, to cover expenses and probable losses.
``(3) Deposit.--The Secretary shall deposit any fees
collected under this subsection in the Native Hawaiian Housing
Loan Guarantee Fund established under subsection (j).
``(f) Liability Under Guarantee.--The liability under a guarantee
provided under this section shall decrease or increase on a pro rata
basis according to any decrease or increase in the amount of the unpaid
obligation under the provisions of the loan agreement involved.
``(g) Transfer and Assumption.--Notwithstanding any other provision
of law, any loan guaranteed under this section, including the security
given for the loan, may be sold or assigned by the lender to any
financial institution subject to examination and supervision by an
agency of the Federal Government or of any State or the District of
Columbia.
``(h) Disqualification of Lenders and Civil Money Penalties.--
``(1) In general.--
``(A) Grounds for action.--The Secretary may take
action under subparagraph (B) if the Secretary
determines that any lender or holder of a guarantee
certificate under subsection (c)--
``(i) has failed--
``(I) to maintain adequate
accounting records;
``(II) to service adequately loans
guaranteed under this section; or
``(III) to exercise proper credit
or underwriting judgment; or
``(ii) has engaged in practices otherwise
detrimental to the interest of a borrower or
the United States.
``(B) Actions.--Upon a determination by the
Secretary that a holder of a guarantee certificate
under subsection (c) has failed to carry out an
activity described in subparagraph (A)(i) or has
engaged in practices described in subparagraph (A)(ii),
the Secretary may--
``(i) refuse, either temporarily or
permanently, to guarantee any further loans
made by such lender or holder;
``(ii) bar such lender or holder from
acquiring additional loans guaranteed under
this section; and
``(iii) require that such lender or holder
assume not less than 10 percent of any loss on
further loans made or held by the lender or
holder that are guaranteed under this section.
``(2) Civil money penalties for intentional violations.--
``(A) In general.--The Secretary may impose a civil
monetary penalty on a lender or holder of a guarantee
certificate under subsection (d) if the Secretary
determines that the holder or lender has intentionally
failed--
``(i) to maintain adequate accounting
records;
``(ii) to adequately service loans
guaranteed under this section; or
``(iii) to exercise proper credit or
underwriting judgment.
``(B) Penalties.--A civil monetary penalty imposed
under this paragraph shall be imposed in the manner and
be in an amount provided under section 536 of the
National Housing Act (12 U.S.C.A. 1735f-1) with respect
to mortgagees and lenders under that Act.
``(3) Payment on loans made in good faith.--Notwithstanding
paragraphs (1) and (2), if a loan was made in good faith, the
Secretary may not refuse to pay a lender or holder of a valid
guarantee on that loan, without regard to whether the lender or
holder is barred under this subsection.
``(i) Payment Under Guarantee.--
``(1) Lender options.--
``(A) In general.--
``(i) Notification.--If a borrower on a
loan guaranteed under this section defaults on
the loan, the holder of the guarantee
certificate shall provide written notice of the
default to the Secretary.
``(ii) Payment.--Upon providing the notice
required under clause (i), the holder of the
guarantee certificate shall be entitled to
payment under the guarantee (subject to the
provisions of this section) and may proceed to
obtain payment in one of the following manners:
``(I) Foreclosure.--
``(aa) In general.--The
holder of the certificate may
initiate foreclosure
proceedings (after providing
written notice of that action
to the Secretary).
``(bb) Payment.--Upon a
final order by the court
authorizing foreclosure and
submission to the Secretary of
a claim for payment under the
guarantee, the Secretary shall
pay to the holder of the
certificate the pro rata
portion of the amount
guaranteed (as determined
pursuant to subsection (f))
plus reasonable fees and
expenses as approved by the
Secretary.
``(cc) Subrogation.--The
rights of the Secretary shall
be subrogated to the rights of
the holder of the guarantee.
The holder shall assign the
obligation and security to the
Secretary.
``(II) No foreclosure.--
``(aa) In general.--Without
seeking foreclosure (or in any
case in which a foreclosure
proceeding initiated under
clause (i) continues for a
period in excess of 1 year),
the holder of the guarantee may
submit to the Secretary a
request to assign the
obligation and security
interest to the Secretary in
return for payment of the claim
under the guarantee. The
Secretary may accept assignment
of the loan if the Secretary
determines that the assignment
is in the best interest of the
United States.
``(bb) Payment.--Upon
assignment, the Secretary shall
pay to the holder of the
guarantee the pro rata portion
of the amount guaranteed (as
determined under subsection
(f)).
``(cc) Subrogation.--The
rights of the Secretary shall
be subrogated to the rights of
the holder of the guarantee.
The holder shall assign the
obligation and security to the
Secretary.
``(B) Requirements.--Before any payment under a
guarantee is made under subparagraph (A), the holder of
the guarantee shall exhaust all reasonable
possibilities of collection. Upon payment, in whole or
in part, to the holder, the note or judgment evidencing
the debt shall be assigned to the United States and the
holder shall have no further claim against the borrower
or the United States. The Secretary shall then take
such action to collect as the Secretary determines to
be appropriate.
``(2) Limitations on liquidation.--
``(A) In general.--If a borrower defaults on a loan
guaranteed under this section that involves a security
interest in restricted Hawaiian Home Land property, the
mortgagee or the Secretary shall only pursue
liquidation after offering to transfer the account to
another eligible Hawaiian family or the Department of
Hawaiian Home Lands.
``(B) Limitation.--If, after action is taken under
subparagraph (A), the mortgagee or the Secretary
subsequently proceeds to liquidate the account, the
mortgagee or the Secretary shall not sell, transfer, or
otherwise dispose of or alienate the property described
in subparagraph (A) except to another eligible Hawaiian
family or to the Department of Hawaiian Home Lands.
``(j) Hawaiian Housing Loan Guarantee Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States the Hawaiian Housing Loan Guarantee Fund
for the purpose of providing loan guarantees under this
section.
``(2) Credits.--The Guarantee Fund shall be credited with--
``(A) any amount, claims, notes, mortgages,
contracts, and property acquired by the Secretary under
this section, and any collections and proceeds
therefrom;
``(B) any amounts appropriated pursuant to
paragraph (7);
``(C) any guarantee fees collected under subsection
(d); and
``(D) any interest or earnings on amounts invested
under paragraph (4).
``(3) Use.--Amounts in the Guarantee Fund shall be
available, to the extent provided in appropriations Acts, for--
``(A) fulfilling any obligations of the Secretary
with respect to loans guaranteed under this section,
including the costs (as that term is defined in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a)) of such loans;
``(B) paying taxes, insurance, prior liens,
expenses necessary to make fiscal adjustment in
connection with the application and transmittal of
collections, and other expenses and advances to protect
the Secretary for loans which are guaranteed under this
section or held by the Secretary;
``(C) acquiring such security property at
foreclosure sales or otherwise;
``(D) paying administrative expenses in connection
with this section; and
``(E) reasonable and necessary costs of
rehabilitation and repair to properties that the
Secretary holds or owns pursuant to this section.
``(4) Investment.--Any amounts in the Guarantee Fund
determined by the Secretary to be in excess of amounts
currently required at the time of the determination to carry
out this section may be invested in obligations of the United
States.
``(5) Limitation on commitments to guarantee loans and
mortgages.--
``(A) Requirement of appropriations.--The authority
of the Secretary to enter into commitments to guarantee
loans under this section shall be effective for any
fiscal year to the extent, or in such amounts as are,
or have been, provided in appropriations Acts, without
regard to the fiscal year for which such amounts were
appropriated.
``(B) Limitations on costs of guarantees.--The
authority of the Secretary to enter into commitments to
guarantee loans under this section shall be effective
for any fiscal year only to the extent that amounts in
the Guarantee Fund are or have been made available in
appropriations Acts to cover the costs (as that term is
defined in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a)) of such loan guarantees for
such fiscal year. Any amounts appropriated pursuant to
this subparagraph shall remain available until
expended.
``(C) Limitation on outstanding aggregate principal
amount.--Subject to the limitations in subparagraphs
(A) and (B), the Secretary may enter into commitments
to guarantee loans under this section for each of
fiscal years 2001, 2002, 2003, 2004, and 2005 with an
aggregate outstanding principal amount not exceeding
$100,000,000 for each such fiscal year.
``(6) Liabilities.--All liabilities and obligations of the
assets credited to the Guarantee Fund under paragraph (2)(A)
shall be liabilities and obligations of the Guarantee Fund.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to the Guarantee Fund to carry
out this section such sums as may be necessary for each of
fiscal years 2001, 2002, 2003, 2004, and 2005.
``(k) Requirements for Standard Housing.--
``(1) In general.--The Secretary shall, by regulation,
establish housing safety and quality standards to be applied
for use under this section.
``(2) Standards.--The standards referred to in paragraph
(1) shall--
``(A) provide sufficient flexibility to permit the
use of various designs and materials in housing
acquired with loans guaranteed under this section; and
``(B) require each dwelling unit in any housing
acquired in the manner described in subparagraph (A)
to--
``(i) be decent, safe, sanitary, and modest
in size and design;
``(ii) conform with applicable general
construction standards for the region in which
the housing is located;
``(iii) contain a plumbing system that--
``(I) uses a properly installed
system of piping;
``(II) includes a kitchen sink and
a partitional bathroom with lavatory,
toilet, and bath or shower; and
``(III) uses water supply,
plumbing, and sewage disposal systems
that conform to any minimum standards
established by the applicable county or
State;
``(iv) contain an electrical system using
wiring and equipment properly installed to
safely supply electrical energy for adequate
lighting and for operation of appliances that
conforms to any appropriate county, State, or
national code;
``(v) be not less than the size provided
under the applicable locally adopted standards
for size of dwelling units, except that the
Secretary, upon request of the Department of
Hawaiian Home Lands may waive the size
requirements under this paragraph; and
``(vi) conform with the energy performance
requirements for new construction established
by the Secretary under section 526(a) of the
National Housing Act (12 U.S.C.A. 1735f-4),
unless the Secretary determines that the
requirements are not applicable.
``(l) Applicability of Civil Rights Statutes.--To the extent that
the requirements of title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.) or of the Fair Housing Act (42 U.S.C.A. 3601 et seq.)
apply to a guarantee provided under this subsection, nothing in the
requirements concerning discrimination on the basis of race shall be
construed to prevent the provision of the guarantee to an eligible
entity on the basis that the entity serves Native Hawaiian families or
is a Native Hawaiian family.''.
TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
NONPROFIT ORGANIZATIONS
SEC. 801. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO
LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORATIONS.
Section 204 of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1997
(12 U.S.C. 1715z-11a) is amended--
(1) by striking ``Flexible Authority.--'' and inserting
``Disposition of HUD-Owned Properties. (a) Flexible Authority
for Multifamily Projects.--''; and
(2) by adding at the end the following new subsection:
``(b) Transfer of Unoccupied and Substandard Housing to Local
Governments and Community Development Corporations.--
``(1) Transfer authority.--Notwithstanding the authority
under subsection (a) and the last sentence of section 204(g) of
the National Housing Act (12 U.S.C. 1710(g)), the Secretary of
Housing and Urban Development shall transfer ownership of any
qualified HUD property, subject to the requirements of this
section, to a unit of general local government having
jurisdiction for the area in which the property is located or
to a community development corporation which operates within
such a unit of general local government in accordance with this
subsection, but only to the extent that units of general local
government and community development corporations consent to
transfer and the Secretary determines that such transfer is
practicable.
``(2) Qualified hud properties.--For purposes of this
subsection, the term `qualified HUD property' means any
property for which, as of the date that notification of the
property is first made under paragraph (3)(B), not less than 6
months have elapsed since the later of the date that the
property was acquired by the Secretary or the date that the
property was determined to be unoccupied or substandard, that
is owned by the Secretary and is--
``(A) an unoccupied multifamily housing project;
``(B) a substandard multifamily housing project; or
``(C) an unoccupied single family property that--
``(i) has been determined by the Secretary
not to be an eligible asset under section
204(h) of the National Housing Act (12 U.S.C.
1710(h)); or
``(ii) is an eligible asset under such
section 204(h), but--
``(I) is not subject to a specific
sale agreement under such section; and
``(II) has been determined by the
Secretary to be inappropriate for
continued inclusion in the program
under such section 204(h) pursuant to
paragraph (10) of such section.
``(3) Timing.--The Secretary shall establish procedures
that provide for--
``(A) time deadlines for transfers under this
subsection;
``(B) notification to units of general local
government and community development corporations of
qualified HUD properties in their jurisdictions;
``(C) such units and corporations to express
interest in the transfer under this subsection of such
properties;
``(D) a right of first refusal for transfer of
qualified HUD properties to units of general local
government and community development corporations,
under which--
``(i) the Secretary shall establish a
period during which the Secretary may not
transfer such properties except to such units
and corporations;
``(ii) the Secretary shall offer qualified
HUD properties that are single family
properties for purchase by units of general
local government at a cost of $1 for each
property, but only to the extent that the costs
to the Federal Government of disposal at such
price do not exceed the costs to the Federal
Government of disposing of property subject to
the procedures for single family property
established by the Secretary pursuant to the
authority under the last sentence of section
204(g) of the National Housing Act (12 U.S.C.
1710(g));
``(iii) the Secretary may accept an offer
to purchase a property made by a community
development corporation only if the offer
provides for purchase on a cost recovery basis;
and
``(iv) the Secretary shall accept an offer
to purchase such a property that is made during
such period by such a unit or corporation and
that complies with the requirements of this
paragraph;
``(E) a written explanation, to any unit of general
local government or community development corporation
making an offer to purchase a qualified HUD property
under this subsection that is not accepted, of the
reason that such offer was not acceptable.
``(4) Other disposition.--With respect to any qualified HUD
property, if the Secretary does not receive an acceptable offer
to purchase the property pursuant to the procedure established
under paragraph (3), the Secretary shall dispose of the
property to the unit of general local government in which
property is located or to community development corporations
located in such unit of general local government on a
negotiated, competitive bid, or other basis, on such terms as
the Secretary deems appropriate.
``(5) Satisfaction of indebtedness.--Before transferring
ownership of any qualified HUD property pursuant to this
subsection, the Secretary shall satisfy any indebtedness
incurred in connection with the property to be transferred, by
canceling the indebtedness.
``(6) Determination of status of properties.--To ensure
compliance with the requirements of this subsection, the
Secretary shall take the following actions:
``(A) Upon enactment.--Upon the enactment of the
American Homeownership and Economic Opportunity Act of
2000, the Secretary shall promptly assess each
residential property owned by the Secretary to
determine whether such property is a qualified HUD
property.
``(B) Upon acquisition.--Upon acquiring any
residential property, the Secretary shall promptly
determine whether the property is a qualified HUD
property.
``(C) Updates.--The Secretary shall periodically
reassess the residential properties owned by the
Secretary to determine whether any such properties have
become qualified HUD properties.
``(7) Tenant leases.--This subsection shall not affect the
terms or the enforceability of any contract or lease entered
into with respect to any residential property before the date
that such property becomes a qualified HUD property.
``(8) Use of property.--Property transferred under this
subsection shall be used only for appropriate neighborhood
revitalization efforts, including homeownership, rental units,
commercial space, and parks, consistent with local zoning
regulations, local building codes, and subdivision regulations
and restrictions of record.
``(9) Inapplicability to properties made available for
homeless.--Notwithstanding any other provision of this
subsection, this subsection shall not apply to any properties
that the Secretary determines are to be made available for use
by the homeless pursuant to subpart E of part 291 of title 24,
Code of Federal Regulations, during the period that the
properties are so available.
``(10) Protection of existing contracts.--This subsection
may not be construed to alter, affect, or annul any legally
binding obligations entered into with respect to a qualified
HUD property before the property becomes a qualified HUD
property.
``(11) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Community development corporation.--The term
`community development corporation' means a nonprofit
organization whose primary purpose is to promote
community development by providing housing
opportunities for low-income families.
``(B) Cost recovery basis.--The term `cost recovery
basis' means, with respect to any sale of a residential
property by the Secretary, that the purchase price paid
by the purchaser is equal to or greater than the sum of
(i) the appraised value of the property, as determined
in accordance with such requirements as the Secretary
shall establish, and (ii) the costs incurred by the
Secretary in connection with such property during the
period beginning on the date on which the Secretary
acquires title to the property and ending on the date
on which the sale is consummated.
``(C) Multifamily housing project.--The term
`multifamily housing project' has the meaning given the
term in section 203 of the Housing and Community
Development Amendments of 1978.
``(D) Residential property.--The term `residential
property' means a property that is a multifamily
housing project or a single family property.
``(E) Secretary.--The term `Secretary' means the
Secretary of Housing and Urban Development.
``(F) Severe physical problems.--The term `severe
physical problems' means, with respect to a dwelling
unit, that the unit--
``(i) lacks hot or cold piped water, a
flush toilet, or both a bathtub and a shower in
the unit, for the exclusive use of that unit;
``(ii) on not less than three separate
occasions during the preceding winter months,
was uncomfortably cold for a period of more
than 6 consecutive hours due to a malfunction
of the heating system for the unit;
``(iii) has no functioning electrical
service, exposed wiring, any room in which
there is not a functioning electrical outlet,
or has experienced three or more blown fuses or
tripped circuit breakers during the preceding
90-day period;
``(iv) is accessible through a public
hallway in which there are no working light
fixtures, loose or missing steps or railings,
and no elevator; or
``(v) has severe maintenance problems,
including water leaks involving the roof,
windows, doors, basement, or pipes or plumbing
fixtures, holes or open cracks in walls or
ceilings, severe paint peeling or broken
plaster, and signs of rodent infestation.
``(G) Single family property.--The term `single
family property' means a 1- to 4-family residence.
``(H) Substandard.--The term `substandard' means,
with respect to a multifamily housing project, that 25
percent or more of the dwelling units in the project
have severe physical problems.
``(I) Unit of general local government.--The term
`unit of general local government' has the meaning
given such term in section 102(a) of the Housing and
Community Development Act of 1974.
``(J) Unoccupied.--The term `unoccupied' means,
with respect to a residential property, that the unit
of general local government having jurisdiction over
the area in which the project is located has certified
in writing that the property is not inhabited.
``(12) Regulations.--
``(A) Interim.--Not later than 30 days after the
date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall
issue such interim regulations as are necessary to
carry out this subsection.
``(B) Final.--Not later than 60 days after the date
of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall
issue such final regulations as are necessary to carry
out this subsection.''.
SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.
In carrying out the program under section 204(h) of the National
Housing Act (12 U.S.C. 1710(h)), upon the request of the chief
executive officer of a county or the government of appropriate
jurisdiction and not later than 60 days after such request is made, the
Secretary of Housing and Urban Development shall designate as a
revitalization area all portions of such county that meet the criteria
for such designation under paragraph (3) of such section.
TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
SEC. 901. SHORT TITLE.
This title may be cited as the ``Private Mortgage Insurance
Technical Corrections and Clarification Act''.
SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.
(a) Treatment of Adjustable Rate Mortgages.--The Homeowners
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
(1) in section 2--
(A) in paragraph (2)(B)(i), by striking
``amortization schedules'' and inserting ``the
amortization schedule then in effect'';
(B) in paragraph (16)(B), by striking
``amortization schedules'' and inserting ``the
amortization schedule then in effect'';
(C) by redesignating paragraphs (6) through (16)
(as amended by the preceding provisions of this
paragraph) as paragraphs (8) through (18),
respectively; and
(D) by inserting after paragraph (5) the following
new paragraph:
``(6) Amortization schedule then in effect.--The term
`amortization schedule then in effect' means, with respect to
an adjustable rate mortgage, a schedule established at the time
at which the residential mortgage transaction is consummated
or, if such schedule has been changed or recalculated, is the
most recent schedule under the terms of the note or mortgage,
which shows--
``(A) the amount of principal and interest that is
due at regular intervals to retire the principal
balance and accrued interest over the remaining
amortization period of the loan; and
``(B) the unpaid balance of the loan after each
such scheduled payment is made.''; and
(2) in section 3(f)(1)(B)(ii), by striking ``amortization
schedules'' and inserting ``the amortization schedule then in
effect''.
(b) Treatment of Balloon Mortgages.--Paragraph (1) of section 2 of
the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by
adding at the end the following new sentence: ``A residential mortgage
that (A) does not fully amortize over the term of the obligation, and
(B) contains a conditional right to refinance or modify the unamortized
principal at the maturity date of the term, shall be considered to be
an adjustable rate mortgage for purposes of this Act.''.
(c) Treatment of Loan Modifications.--
(1) In general.--Section 3 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4902) is amended--
(A) by redesignating subsections (d) through (f) as
subsections (e) through (g), respectively; and
(B) by inserting after subsection (c) the following
new subsection:
``(d) Treatment of Loan Modifications.--If a mortgagor and
mortgagee (or holder of the mortgage) agree to a modification of the
terms or conditions of a loan pursuant to a residential mortgage
transaction, the cancellation date, termination date, or final
termination shall be recalculated to reflect the modified terms and
conditions of such loan.''.
(2) Conforming amendments.--Section 4(a) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``section 3(f)(1)'' and
inserting ``section 3(g)(1)'';
(ii) in subparagraph (A)(ii)(IV), by
striking ``section 3(f)'' and inserting
``section 3(g)''; and
(iii) in subparagraph (B)(iii), by striking
``section 3(f)'' and inserting ``section
3(g)''; and
(B) in paragraph (2), by striking ``section
3(f)(1)'' and inserting ``section 3(g)(1)''.
SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL MORTGAGES.
(a) Termination of Private Mortgage Insurance.--Section 3 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended--
(1) in subsection (c), by inserting ``on residential
mortgage transactions'' after ``imposed''; and
(2) in subsection (g) (as so redesignated by section
902(c)(1)(A) of this title)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``mortgage or'';
(B) in paragraph (2), by striking ``mortgage or'';
and
(C) in paragraph (3), by striking ``mortgage or''
and inserting ``residential mortgage or residential''.
(b) Disclosure Requirements.--Section 4 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``mortgage or'' the first
place it appears; and
(ii) by striking ``mortgage or'' the second
place it appears and inserting ``residential'';
and
(B) in paragraph (2), by striking ``mortgage or''
and inserting ``residential'';
(2) in subsection (c), by striking ``paragraphs (1)(B) and
(3) of subsection (a)'' and inserting ``subsection (a)(3)'';
and
(3) in subsection (d), by inserting before the period at
the end the following: ``, which disclosures shall relate to
the mortgagor's rights under this Act''.
(c) Disclosure Requirements for Lender-Paid Mortgage Insurance.--
Section 6 of the Homeowners Protection Act of 1998 (12 U.S.C. 4905) is
amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``a residential mortgage or''; and
(B) in paragraph (2), by inserting ``transaction''
after ``residential mortgage''; and
(2) in subsection (d), by inserting ``transaction'' after
``residential mortgage''.
SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION DATE.
Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902)
is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
inserting after ``cancellation date'' the following:
``or any later date that the mortgagor fulfills all of
the requirements under paragraphs (1) through (4)'';
(B) in paragraph (2), by striking ``and'' at the
end;
(C) by redesignating paragraph (3) as paragraph
(4); and
(D) by inserting after paragraph (2) the following
new paragraph:
``(3) is current on the payments required by the terms of
the residential mortgage transaction; and''; and
(2) in subsection (e)(1)(B) (as so redesignated by section
902(c)(1)(A) of this title), by striking ``subsection (a)(3)''
and inserting ``subsection (a)(4)''.
SEC. 905. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND
LENDER PAID MORTGAGE INSURANCE DISCLOSURE REQUIREMENTS.
(a) Good Payment History.--Section 2(4) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901(4)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``the later of (i)'' before ``the
date''; and
(B) by inserting ``, or (ii) the date that the
mortgagor submits a request for cancellation under
section 3(a)(1)'' before the semicolon; and
(2) in subparagraph (B)--
(A) by inserting ``the later of (i)'' before ``the
date''; and
(B) by inserting ``, or (ii) the date that the
mortgagor submits a request for cancellation under
section 3(a)(1)'' before the period at the end.
(b) Automatic Termination.--Paragraph (2) of section 3(b) of the
Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to
read as follows:
``(2) if the mortgagor is not current on the termination
date, on the first day of the first month beginning after the
date that the mortgagor becomes current on the payments
required by the terms of the residential mortgage
transaction.''
(c) Premium Payments.--Section 3 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4902) is amended by adding at the end the following
new subsection:
``(h) Accrued Obligation for Premium Payments.--The cancellation or
termination under this section of the private mortgage insurance of a
mortgagor shall not affect the rights of any mortgagee, servicer, or
mortgage insurer to enforce any obligation of such mortgagor for
premium payments accrued prior to the date on which such cancellation
or termination occurred.''.
SEC. 906. DEFINITIONS.
(a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by
inserting after ``refinanced'' the following: ``(under the meaning
given such term in the regulations issued by the Board of Governors of
the Federal Reserve System to carry out the Truth in Lending Act (15
U.S.C. 1601 et seq.))''.
(b) Midpoint of the Amortization Period.--Section 2 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended by
inserting after paragraph (6) (as added by section 902(a)(1)(D) of this
Act) the following new paragraph:
``(7) Midpoint of the amortization period.--The term
`midpoint of the amortization period' means, with respect to a
residential mortgage transaction, the point in time that is
halfway through the period that begins upon the first day of
the amortization period established at the time a residential
mortgage transaction is consummated and ends upon the
completion of the entire period over which the mortgage is
scheduled to be amortized.''.
(c) Original Value.--Section 2(12) of the Homeowners Protection Act
of 1998 (12 U.S.C. 4901(10)) (as so redesignated by section
902(a)(1)(C) of this Act) is amended--
(1) by inserting ``transaction'' after ``a residential
mortgage''; and
(2) by adding at the end the following new sentence: ``In
the case of a residential mortgage transaction for refinancing
the principal residence of the mortgagor, such term means only
the appraised value relied upon by the mortgagee to approve the
refinance transaction.''.
(d) Principal Residence.--Section 2 of the Homeowners Protection
Act of 1998 (12 U.S.C. 4901) is amended--
(1) in paragraph (14) (as so redesignated by section
902(a)(1)(C) of this Act) by striking ``primary'' and inserting
``principal''; and
(2) in paragraph (15) (as so redesignated by section
902(a)(1)(C) of this Act) by striking ``primary'' and inserting
``principal'';
TITLE X--RURAL HOUSING HOMEOWNERSHIP
SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR LOAN
PROGRAM.
The fourth sentence of section 504(a) of the Housing Act of 1949
(42 U.S.C. 1474(a)) is amended by striking ``$2,500'' and inserting
``$7,500''.
SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM LABOR HOUSING
LOANS.
The first sentence of section 514(a) of the Housing Act of 1949 (42
U.S.C. 1484(a)) is amended by striking ``nonprofit limited
partnership'' and inserting ``limited partnership''.
SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRACTICES.
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended
by striking subsection (z) and inserting the following new subsections:
``(z) Accounting and Recordkeeping Requirements.--
``(1) Accounting standards.--The Secretary shall require
that borrowers in programs authorized by this section maintain
accounting records in accordance with generally accepted
accounting principles for all projects that receive funds from
loans made or guaranteed by the Secretary under this section.
``(2) Record retention requirements.--The Secretary shall
require that borrowers in programs authorized by this section
retain for a period of not less than 6 years and make available
to the Secretary in a manner determined by the Secretary, all
records required to be maintained under this subsection and
other records identified by the Secretary in applicable
regulations.
``(aa) Double Damages for Unauthorized Use of Housing Projects
Assets and Income.--
``(1) Action to recover assets or income.--
``(A) In general.--The Secretary may request the
Attorney General to bring an action in a United States
district court to recover any assets or income used by
any person in violation of the provisions of a loan
made or guaranteed by the Secretary under this section
or in violation of any applicable statute or
regulation.
``(B) Improper documentation.--For purposes of this
subsection, a use of assets or income in violation of
the applicable loan, loan guarantee, statute, or
regulation shall include any use for which the
documentation in the books and accounts does not
establish that the use was made for a reasonable
operating expense or necessary repair of the project or
for which the documentation has not been maintained in
accordance with the requirements of the Secretary and
in reasonable condition for proper audit.
``(C) Definition.--For the purposes of this
subsection, the term `person' means--
``(i) any individual or entity that borrows
funds in accordance with programs authorized by
this section;
``(ii) any individual or entity holding 25
percent or more interest of any entity that
borrows funds in accordance with programs
authorized by this section; and
``(iii) any officer, director, or partner
of an entity that borrows funds in accordance
with programs authorized by this section.
``(2) Amount recoverable.--
``(A) In general.--In any judgment favorable to the
United States entered under this subsection, the
Attorney General may recover double the value of the
assets and income of the project that the court
determines to have been used in violation of the
provisions of a loan made or guaranteed by the
Secretary under this section or any applicable statute
or regulation, plus all costs related to the action,
including reasonable attorney and auditing fees.
``(B) Application of recovered funds.--
Notwithstanding any other provision of law, the
Secretary may use amounts recovered under this
subsection for activities authorized under this section
and such funds shall remain available for such use
until expended.
``(3) Time limitation.--Notwithstanding any other provision
of law, an action under this subsection may be commenced at any
time during the 6-year period beginning on the date that the
Secretary discovered or should have discovered the violation of
the provisions of this section or any related statutes or
regulations.
``(4) Continued availability of other remedies.--The remedy
provided in this subsection is in addition to and not in
substitution of any other remedies available to the Secretary
or the United States.''.
SEC. 1004. DEFINITION OF RURAL AREA.
The second sentence of section 520 of the Housing Act of 1949 (42
U.S.C. 1490) is amended by striking ``year 2000'' and inserting ``year
2010''.
SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS PROJECTS.
The last sentence of section 521(a)(5)(A) of the Housing Act of
1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by striking ``project'' and
inserting ``tenant or unit''.
SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.
Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is
amended--
(1) in subsection (c), by inserting ``an Indian
organization,'' after ``thereof,'';
(2) in subsection (f), by striking paragraph (1) and
inserting the following new paragraph:
``(1) be made for a period of not less than 25 nor greater
than 40 years from the date the loan was made and may provide
for amortization of the loan over a period of not to exceed 40
years with a final payment of the balance due at the end of the
loan term;'';
(3) in subsection (i)(2), by striking ``(A) conveyance to
the Secretary'' and all that follows through ``(C) assignment''
and inserting ``(A) submission to the Secretary of a claim for
payment under the guarantee, and (B) assignment'';
(4) in subsection (s), by adding at the end the following
new subsection:
``(4) Indian organization.--The term `Indian organization'
means the governing body of an Indian tribe, band, group,
pueblo, or community, including native villages or native
groups, as defined by the Alaska Claims Settlement Act (43
U.S.C. 1601 et seq.), (including corporations organized by the
Kenai, Juneau, Sitka, and Kodiak) which is eligible for
services from the Bureau of Indian Affairs or an entity
established or recognized by the governing body for the purpose
of financing economic development.'';
(5) in subsection (t), by inserting before the period at
the end the following: ``to provide guarantees under this
section for eligible loans having an aggregate principal amount
of $500,000,000'';
(6) by striking subsection (l);
(7) by redesignating subsections (m) through (u) as
subsections (l) through (t), respectively;
(8) by adding at the end the following new subsections:
``(u) Fee Authority.--Any amounts collected by the Secretary
pursuant to the fees charged to lenders for loan guarantees issued
under this section shall be used to offset costs (as defined by section
502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of loan
guarantees made under this section.
``(v) Defaults of Loans Secured by Reservation Lands.--In the event
of a default involving a loan to an Indian tribe or tribal corporation
made under this section which is secured by an interest in land within
such tribe's reservation (as determined by the Secretary of the
Interior), including a community in Alaska incorporated by the
Secretary of the Interior pursuant to the Indian Reorganization Act (25
U.S.C. 461 et seq.), the lender shall only pursue liquidation after
offering to transfer the account to an eligible tribal member, the
tribe, or the Indian housing authority serving the tribe. If the lender
subsequently proceeds to liquidate the account, the lender shall not
sell, transfer, or otherwise dispose of or alienate the property except
to one of the entities described in the preceding sentence.''.
SEC. 1007. ENFORCEMENT PROVISIONS.
(a) In General.--Title V of the Housing Act of 1949 (42 U.S.C. 1471
et seq.) is amended by adding after section 542 the following:
``SEC. 543. ENFORCEMENT PROVISIONS.
``(a) Equity Skimming.--
``(1) Criminal penalty.--Whoever, as an owner, agent,
employee, or manager, or is otherwise in custody, control, or
possession of property that is security for a loan made or
guaranteed under this title, willfully uses, or authorizes the
use, of any part of the rents, assets, proceeds, income, or
other funds derived from such property, for any purpose other
than to meet actual, reasonable, and necessary expenses of the
property, or for any other purpose not authorized by this title
or the regulations adopted pursuant to this title, shall be
fined under title 18, United States Code, or imprisoned not
more than 5 years, or both.
``(2) Civil sanctions.--An entity or individual who as an
owner, operator, employee, or manager, or who acts as an agent
for a property that is security for a loan made or guaranteed
under this title where any part of the rents, assets, proceeds,
income, or other funds derived from such property are used for
any purpose other than to meet actual, reasonable, and
necessary expenses of the property, or for any other purpose
not authorized by this title or the regulations adopted
pursuant to this title, shall be subject to a fine of not more
than $25,000 per violation. The sanctions provided in this
paragraph may be imposed in addition to any other civil
sanctions or civil monetary penalties authorized by law.
``(b) Civil Monetary Penalties.--
``(1) In general.--The Secretary may, after notice and
opportunity for a hearing, impose a civil monetary penalty in
accordance with this subsection against any individual or
entity, including its owners, officers, directors, general
partners, limited partners, or employees, who knowingly and
materially violate, or participate in the violation of, the
provisions of this title, the regulations issued by the
Secretary pursuant to this title, or agreements made in
accordance with this title, by--
``(A) submitting information to the Secretary that
is false;
``(B) providing the Secretary with false
certifications;
``(C) failing to submit information requested by
the Secretary in a timely manner;
``(D) failing to maintain the property subject to
loans made or guaranteed under this title in good
repair and condition, as determined by the Secretary;
``(E) failing to provide management for a project
which received a loan made or guaranteed under this
title that is acceptable to the Secretary; or
``(F) failing to comply with the provisions of
applicable civil rights statutes and regulations.
``(2) Conditions for renewal or extension.--The Secretary
may require that expiring loan or assistance agreements entered
into under this title shall not be renewed or extended unless
the owner executes an agreement to comply with additional
conditions prescribed by the Secretary, or executes a new loan
or assistance agreement in the form prescribed by the
Secretary.
``(3) Amount.--
``(A) In general.--The amount of a civil monetary
penalty imposed under this subsection shall not exceed
the greater of--
``(i) twice the damages the Department of
Agriculture, the guaranteed lender, or the
project that is secured for a loan under this
section suffered or would have suffered as a
result of the violation; or
``(ii) $50,000 per violation.
``(B) Determination.--In determining the amount of
a civil monetary penalty under this subsection, the
Secretary shall take into consideration--
``(i) the gravity of the offense;
``(ii) any history of prior offenses by the
violator (including offenses occurring prior to
the enactment of this section);
``(iii) the ability of the violator to pay
the penalty;
``(iv) any injury to tenants;
``(v) any injury to the public;
``(vi) any benefits received by the
violator as a result of the violation;
``(vii) deterrence of future violations;
and
``(viii) such other factors as the
Secretary may establish by regulation.
``(4) Payment of penalties.--No payment of a penalty
assessed under this section may be made from funds provided
under this title or from funds of a project which serve as
security for a loan made or guaranteed under this title.
``(5) Remedies for noncompliance.--
``(A) Judicial intervention.--If a person or entity
fails to comply with a final determination by the
Secretary imposing a civil monetary penalty under this
subsection, the Secretary may request the Attorney
General of the United States to bring an action in an
appropriate United States district court to obtain a
monetary judgment against such individual or entity and
such other relief as may be available. The monetary
judgment may, in the court's discretion, include the
attorney's fees and other expenses incurred by the
United States in connection with the action.
``(B) Reviewability of determination.--In an action
under this paragraph, the validity and appropriateness
of a determination by the Secretary imposing the
penalty shall not be subject to review.''.
(b) Conforming Amendment.--Section 514 of the Housing Act of 1949
(42 U.S.C. 1484) is amended by striking subsection (j).
SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.
(a) Money Laundering.--Section 1956(c)(7)(D) of title 18, United
States Code, is amended by inserting ``any violation of section
543(a)(1) of the Housing Act of 1949 (relating to equity skimming),''
after ``coupons having a value of not less than $5,000,''.
(b) Obstruction of Federal Audits.--Section 1516(a) of title 18,
United States Code, is amended by inserting ``or relating to any
property that is security for a loan that is made or guaranteed under
title V of the Housing Act of 1949,'' before ``shall be fined under
this title''.
TITLE XI--MANUFACTURED HOUSING IMPROVEMENT
SEC. 1101. 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, an Act, a section, or any
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. 1102. 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 protect the quality, durability, safety, and
affordability of manufactured homes;
``(2) to facilitate 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 residents of manufactured homes with
respect to personal injuries and the amount of insurance costs
and property damages in manufactured housing, consistent with
the other purposes of this section;
``(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. 1103. 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 recognized,
voluntary, private sector, consensus standards body with
specific experience in developing model residential building
codes and standards involving all disciplines regarding
construction and safety that administers the consensus
standards development process;
``(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,
including the inspection of homes in the plant;
``(20) `installation standards' means reasonable
specifications for the installation of a manufactured home at
the place of occupancy to ensure proper siting, the joining of
all sections of the home, and the installation of
stabilization, support, or anchoring systems; and
``(21) `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 promulgated under this title,
giving due consideration to the recommendations of the
consensus committee as provided in section 604(b), which
process shall be for the purpose of ensuring that the primary
inspection agencies are discharging their duties under this
title.''.
(b) Conforming Amendments.--The Act 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. 1104. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5403) 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 objectively stated; 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 the enactment of the Manufactured
Housing Improvement Act, the Secretary shall enter into
a contract with an administering organization. The
contractual agreement shall--
``(i) terminate on the date on which a
contract is entered into under subparagraph
(B); and
``(ii) require the administering
organization to--
``(I) recommend 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.
``(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 an administering organization. The
administering 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) 21 voting members appointed by the
Secretary, after consideration of the
recommendations made 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) one member appointed by the
Secretary to represent the Secretary on the
consensus committee, who shall be a nonvoting
member.
``(C) Disapproval.--The Secretary shall state, in
writing, the reasons for failing to appoint any
individual recommended under paragraph (2)(A)(ii)(I).
``(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), to ensure equal representation on the
consensus committee of the following interest
categories:
``(i) Producers.--Seven producers or
retailers of manufactured housing.
``(ii) Users.--Seven persons representing
consumer interests, such as consumer
organizations, recognized consumer leaders, and
owners who are residents of manufactured homes.
``(iii) General interest and public
officials.--Seven general interest and public
official members.
``(E) Balancing of interests.--
``(i) In general.--In order to achieve a
proper balance of interests on the consensus
committee--
``(I) the Secretary shall ensure
that all directly and materially
affected interests have the opportunity
for fair and equitable participation
without dominance by any single
interest; and
``(II) the Secretary may reject the
appointment of any one or more
individuals in order to ensure that
there is not dominance by any single
interest.
``(ii) Dominance defined.--In this
subparagraph, the term `dominance' means a
position or exercise of dominant authority,
leadership, or influence by reason of superior
leverage, strength, or representation.
``(F) Additional qualifications.--
``(i) Financial independence.--No
individual appointed under subparagraph (D)(ii)
shall have, and three of individuals appointed
under subparagraph (D)(iii) shall not have--
``(I) a significant financial
interest in any segment of the
manufactured housing industry; or
``(II) a significant relationship
to any person engaged in the
manufactured housing industry.
``(ii) Post-employment ban.--An individual
appointed under clause (ii) or (iii) of
subparagraph (D) shall be subject to a ban
disallowing compensation from the manufactured
housing industry during the period of, and for
the 1-year period after, membership of that
individual on the consensus committee.
``(G) Meetings.--
``(i) Notice; open to public.--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.
``(ii) Reimbursement.--Members of the
consensus committee in attendance at the
meetings shall be reimbursed for their actual
expenses as authorized by section 5703 of title
5, United States Code, for persons employed
intermittently in Government service.
``(H) 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.
``(I) 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.
``(J) Staff.--The administering organization shall,
upon the request of the consensus committee, provide
reasonable staff resources to the consensus committee.
Upon a showing of need, the Secretary shall furnish
technical support to any of the various interest
categories on the consensus committee.
``(K) 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
administering organization.
``(4) Revisions of standards.--
``(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
``(ii) submit proposed revised standards
and regulations, if approved in a vote of the
consensus committee by two-thirds of the
members, to the Secretary in the form of a
proposed rule, including an economic analysis.
``(B) Publication of proposed revised standards.--
``(i) Publication by secretary.--The
consensus committee shall provide a proposed
revised standard under subparagraph (A)(ii) to
the Secretary who shall, not later than 30 days
after receipt, publish such proposed revised
standard in the Federal Register for notice and
comment in accordance with section 553 of title
5, United States Code. Unless clause (ii)
applies, the Secretary shall provide an
opportunity for public comment on such proposed
revised standard in accordance with such
section 553 and any such comments shall be
submitted directly to the consensus committee
without delay.
``(ii) Publication of rejected proposed
revised standard.--If the Secretary rejects the
proposed revised standard, the Secretary shall
publish the rejected proposed revised standard
in the Federal Register with the reasons for
rejection and any recommended modifications set
forth.
``(C) Presentation of public comments; publication
of recommended revisions.--
``(i) Presentation.--Any public comments,
views, and objections to a proposed revised
standard published under subparagraph (B) shall
be presented by the Secretary to the consensus
committee upon their receipt and in the manner
received, in accordance with procedures
established by the American National Standards
Institute.
``(ii) Publication by the secretary.--The
consensus committee shall provide to the
Secretary any revisions proposed by the
consensus committee, which the Secretary shall,
not later than 30 calendar days after receipt,
cause to be published in the Federal Register
as a notice of the recommended revisions of the
consensus committee to the standard, a notice
of the submission of the recommended revisions
to the Secretary, and a description of the
circumstances under which the proposed revised
standards could become effective.
``(iii) Publication of rejected proposed
revised standard.--If the Secretary rejects the
proposed revised standard, the Secretary shall
publish the rejected proposed revised standard
in the Federal Register with the reasons for
rejection and any recommended modifications set
forth.
``(5) Review by the secretary.--
``(A) In general.--The Secretary shall either
adopt, modify, or reject a standard, as submitted by
the consensus committee under paragraph (4)(A).
``(B) Timing.--Not later than 12 months after the
date on which a standard is submitted to the Secretary
by the consensus committee, the Secretary shall take
action regarding such standard under subparagraph (C).
``(C) Procedures.--If the Secretary--
``(i) adopts a standard 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 should
be rejected, the Secretary shall--
``(I) reject the standard; 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
``(iii) determines that a standard
recommended by the consensus committee should
be modified, the Secretary shall--
``(I) cause the proposed modified
standard 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 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 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,
and the effective date of the revised standard, which
notice shall be deemed to be an order of the Secretary
approving the revised standards proposed by the
consensus committee.
``(b) Other Orders.--
``(1) Regulations.--The Secretary may issue procedural and
enforcement regulations and revision to existing regulations as
necessary to implement the provisions of this title. The
consensus committee may submit to the Secretary proposed
procedural and enforcement regulations and recommendations for
the revision of such regulations.
``(2) Interpretative bulletins.--The Secretary may issue
interpretative bulletins to clarify the meaning of any Federal
manufactured home construction and safety standard or
procedural and enforcement regulation. The consensus committee
may submit to the Secretary proposed interpretative bulletins
to clarify the meaning of any Federal manufactured home
construction and safety standard or procedural and enforcement
regulation.
``(3) Review by consensus committee.--Before issuing a
procedural or enforcement regulation or an interpretative
bulletin--
``(A) the Secretary shall--
``(i) submit the proposed procedural or
enforcement regulation or interpretative
bulletin to the consensus committee; and
``(ii) provide the consensus committee with
a period of 120 days to submit written comments
to the Secretary on the proposed procedural or
enforcement regulation or the interpretative
bulletin; and
``(B) if the Secretary rejects any significant
comment provided by the consensus committee under
subparagraph (A), the Secretary shall provide a written
explanation of the reasons for the rejection to the
consensus committee; and
``(C) following compliance with subparagraphs (A)
and (B), the Secretary shall--
``(i) cause the proposed regulation or
interpretative bulletin and the consensus
committee's written comments along with the
Secretary's response thereto to be published in
the Federal Register; and
``(ii) provide an opportunity for public
comment in accordance with section 553 of title
5, United States Code.
``(4) Required action.--The Secretary shall act on any
proposed regulation or interpretative bulletin submitted by the
consensus committee by approving or rejecting the proposal
within 120 days from the date the proposal is received by the
Secretary. The Secretary shall either--
``(A) approve the proposal and cause the proposed
regulation or interpretative bulletin to be published
for public comment in accordance with section 553 of
title 5, United States Code; or
``(B) reject the proposed regulation or
interpretative bulletin and--
``(i) provide a written explanation of the
reasons for rejection to the consensus
committee; and
``(ii) cause the proposed regulation and
the written explanation for the rejection to be
published in the Federal Register.
``(5) Authority to act and emergency.--If the Secretary
determines, in writing, that such action is necessary to
address an issue on which the Secretary determines that the
consensus committee has not made a timely recommendation
following a request by the Secretary, or in order to respond to
an emergency which jeopardizes the public health or safety, the
Secretary may issue an order that is not developed under the
procedures set forth in subsection (a) or in this subsection,
if the Secretary--
``(A) provides to the consensus committee a written
description and sets forth the reasons why action is
necessary and all supporting documentation; and
``(B) issues the order after notice and an
opportunity for public comment in accordance with
section 553 of title 5, United States Code, and
publishes the order in the Federal Register.
``(6) Changes.--Any statement of policies, practices, or
procedures relating to construction and safety standards,
inspections, monitoring, or other enforcement activities which
constitutes a statement of general or particular applicability
and future offset and decisions to implement, interpret, or
prescribe law or policy by the Secretary is subject to the
provisions of subsection (a) or (b) of this subsection. Any
change adopted in violation of the provisions of subsection (a)
or (b) of this subsection is void.
``(7) Transition.--Until the date that the consensus
committee is appointed pursuant to section 604(a)(3), the
Secretary may issue proposed orders that are not developed
under the procedures set forth in this section for new and
revised standards.'';
(2) in subsection (d), by adding at the end the following:
``Federal preemption under this subsection shall be broadly and
liberally construed to ensure that disparate State or local
requirements or standards do not affect the uniformity and
comprehensiveness of the standards promulgated hereunder nor
the Federal superintendence of the manufactured housing
industry as established by this title. Subject to section 605,
there is reserved to each State the right to establish
standards for the stabilizing and support systems of
manufactured homes sited within that State, and for the
foundations on which manufactured homes sited within that State
are installed, and the right to enforce compliance with such
standards, except that such standards shall be consistent with
the purposes of this title and shall be consistent with the
design of the manufacturer.'';
(3) by striking subsection (e);
(4) in subsection (f), by striking the subsection
designation and all of the matter that precedes 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. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL;
MANUFACTURED HOME INSTALLATION.
(a) In General.--Section 605 (42 U.S.C. 5404) is amended to read as
follows:
``SEC. 605. MANUFACTURED HOME INSTALLATION.
``(a) Provision of Installation Design and Instructions.--A
manufacturer shall provide with each manufactured home, design and
instructions for the installation of the manufactured home that have
been approved by a design approval primary inspection agency. After
establishment of model standards under subsection (b)(2), a design
approval primary inspection agency may not give such approval unless a
design and instruction provides equal or greater protection than the
protection provided under such model standards.
``(b) Model Manufactured Home Installation Standards.--
``(1) Proposed model standards.--Not later than 18 months
after the date on which the initial appointments of all of the
members of the consensus committee are completed, the consensus
committee shall develop and submit to the Secretary proposed
model manufactured home installation standards, which shall, to
the maximum extent possible, taking into account the factors
described in section 604(e), be consistent with--
``(A) the home designs that have been approved by a
design approval primary inspection agency; and
``(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
``(2) Establishment of model standards.--Not later than 12
months after receiving the proposed model standards submitted
under paragraph (1), the Secretary shall develop and establish
model manufactured home installation standards, which shall to
the maximum extent possible, taking into account the factors
described in section 604(e), be consistent with--
``(A) the home designs that have been approved by a
design approval primary inspection agency; and
``(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
``(3) Factors for consideration.--
``(A) Consensus committee.--In developing the
proposed model standards under paragraph (1), the
consensus committee shall consider the factors
described in section 604(e).
``(B) Secretary.--In developing and establishing
the model standards under paragraph (2), the Secretary
shall consider the factors described in section 604(e).
``(4) Issuance.--The model manufactured home installation
standards shall be issued after notice and an opportunity for
public comment in accordance with section 553 of title 5,
United States Code.
``(c) Manufactured Home Installation Programs.--
``(1) Protection of manufactured housing residents during
initial period.--During the 5-year period beginning on the date
of the enactment of the Manufactured Housing Improvement Act,
no State or manufacturer may establish or implement any
installation standards that, in the determination of the
Secretary, provide less protection to the residents of
manufactured homes than the protection provided by the
installation standards in effect with respect to the State or
manufacturer, as applicable, on the date of the enactment of
the Manufactured Housing Improvement Act.
``(2) Installation standards.--
``(A) Establishment of installation program.--Not
later than the expiration of the 5-year period
described in paragraph (1), the Secretary shall
establish an installation program that meets the
requirements of paragraph (3) for the enforcement of
installation standards in each State described in
subparagraph (B).
``(B) Implementation of installation program.--
Beginning on the expiration of the 5-year period
described in paragraph (1), the Secretary shall
implement the installation program established under
subparagraph (A) in each State that does not have an
installation program established by State law that
meets the requirements of paragraph (3).
``(C) Contracting out of implementation.--In
carrying out subparagraph (B), the Secretary may
contract with an appropriate agent to implement the
installation program established under that
subparagraph.
``(3) Requirements.--An installation program meets the
requirements of this paragraph if it is a program regulating
the installation of manufactured homes that includes--
``(A) installation standards that, in the
determination of the Secretary, provide protection to
the residents of manufactured homes that equals or
exceeds the protection provided to those residents by--
``(i) the model manufactured home
installation standards established under
subsection (b); or
``(ii) the designs and instructions
provided by manufacturers under subsection (a),
if the Secretary determines that such designs
and instructions provide protection to the
residents of the manufactured home that equals
or exceeds the protection provided by the model
manufactured home installation standards
established under subsection (b);
``(B) the training and licensing of manufactured
home installers; and
``(C) inspection of the installation of
manufactured homes.''.
(b) Conforming Amendments.--Section 623(c) (42 U.S.C. 5422(c)) is
amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) by redesignating paragraph (11) as paragraph (13); and
(3) by inserting after paragraph (10) the following:
``(11) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
the enactment of the Manufactured Housing Improvement Act,
provides for an installation program established by State law
that meets the requirements of section 605(c)(3);''.
SEC. 1106. 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. 1107. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.
(a) In General.--Section 608(a) (42 U.S.C. 5407(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(4) encouraging the government sponsored housing entities
to actively develop and implement secondary market
securitization programs for FHA manufactured home loans and
those of other loan programs, as appropriate, thereby promoting
the availability of affordable manufactured homes to increase
homeownership for all people in the United States; and
``(5) reviewing the programs for FHA manufactured home
loans and developing any changes to such programs to promote
the affordability of manufactured homes, including changes in
loan terms, amortization periods, regulations, and
procedures.''.
(b) Definitions.--Section 608 (42 U.S.C. 5407) is amended by adding
at the end the following new subsection:
``(c) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Government sponsored housing entities.--The term
`government sponsored housing entities' means the Government
National Mortgage Association of the Department of Housing and
Urban Development, the Federal National Mortgage Association,
and the Federal Home Loan Mortgage Corporation.
``(2) FHA manufactured home loans.--The term `FHA
manufactured home loan' means a loan that--
``(A) is insured under title I of the National
Housing Act and is made for the purpose of financing
alterations, repairs, or improvements on or in
connection with an existing manufactured home, the
purchase of a manufactured home, the purchase of a
manufactured home and a lot on which to place the home,
or the purchase only of a lot on which to place a
manufactured home; or
``(B) otherwise insured under the National Housing
Act and made for or in connection with a manufactured
home.''.
SEC. 1108. PROHIBITED ACTS.
Section 610(a) (42 U.S.C. 5409(a)) is amended--
(1) in paragraph (5), by striking ``or'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(7) after the expiration of the period specified in
section 605(c)(2)(B), fail to comply with the requirements for
the installation program required by section 605 in any State
that has not adopted and implemented a State installation
program.''.
SEC. 1109. 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 facilitating the acceptance of the affordability and
availability of manufactured housing within the Department, the
Secretary may--
``(1) establish and collect from manufactured home
manufacturers such reasonable fees as may be necessary to
offset the expenses incurred by the Secretary in connection
with carrying out the responsibilities of the Secretary under
this title, including--
``(A) conducting inspections and monitoring;
``(B) providing funding to States for the
administration and implementation of approved State
plans under section 623, including reasonable funding
for cooperative educational and training programs
designed to facilitate uniform enforcement under this
title; these funds may be paid directly to the States
or may be paid or provided to any person or entity
designated to receive and disburse such funds by
cooperative agreements among participating States,
provided that such person or entity is not otherwise an
agent of the Secretary under this title;
``(C) providing the funding for a noncareer
administrator and Federal staff personnel for the
manufactured housing program;
``(D) administering the consensus committee as set
forth in section 604;
``(E) facilitating the acceptance of the quality,
durability, safety, and affordability of manufactured
housing within the Department; and
``(F) implementing sections 605 and 623; and
``(2) use any fees collected under paragraph (1) to pay
expenses referred to in 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) Contractors.--When using fees under this section, the
Secretary shall ensure that no fewer than three separate contracts and
three separate and independent contractors are retained to carry out
monitoring and inspection work and any other work that may be delegated
to a contractor under this title; except that the required minimum
number of separate contracts and separate and independent contractors
shall increase to four simultaneous with the latter of--
``(1) the issuance by the Secretary of a request for
proposals for the implementation of installation programs; and
``(2) the issuance by the Secretary of a request for
proposals for the implementation of dispute resolution program,
as provided in this title. The Secretary shall also ensure that no
conflict of interest arises from the award of any such contracts.
``(c) Prohibited Use.--Fees collected under subsection (a) shall
not be used for any purpose or activity not specifically authorized by
this title unless such activity was already engaged in by the Secretary
prior to the date of the enactment of this title.
``(d) 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.
``(e) 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 Trust Fund' for deposit of all fees collected
pursuant to subsection (a). These fees shall be held in trust
for use only as provided in this title.
``(2) Appropriation.--Such fees shall be available for
expenditure only to the extent approved in an annual
appropriation Act.
``(3) Payments to states.--On and after the effective date
of the Manufactured Housing Improvement Act, the Secretary
shall continue to fund the States having approved State plans
in amounts which are not less than the allocated amounts based
on the fee distribution system in effect on the day before the
effective date of such Act.''.
SEC. 1110. DISPUTE RESOLUTION.
Section 623(c) (42 U.S.C. 5422(c)), as amended by section 1105(b)
of this Act, is amended by inserting after paragraph (11) (as added by
section 1105(b) of this Act) the following:
``(12) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
the enactment of the Manufactured Housing Improvement Act,
provides for a dispute resolution program for the timely
resolution of disputes between manufacturers, retailers, and
installers of manufactured homes regarding responsibility, and
for the issuance of appropriate orders, for the correction or
repair of defects in manufactured homes that are reported
during the 1-year period beginning on the date of installation;
and''; and by adding at the end the following:
``(g) Enforcement of Dispute Resolution Standards.--
``(1) Establishment of dispute resolution program.--Not
later than the expiration of the 5-year period beginning on the
date of the enactment of the Manufactured Housing Improvement
Act, the Secretary shall establish a dispute resolution program
that meets the requirements of subsection (c)(12) for dispute
resolution in each State described in paragraph (2). The order
establishing the dispute resolution program shall be issued
after notice and an opportunity for public comment in
accordance with section 553 of title 5, United States Code.
``(2) Implementation of dispute resolution program.--
Beginning on the expiration of the 5-year period described in
paragraph (1), the Secretary shall implement the dispute
resolution program established under paragraph (1) in each
State that has not established a dispute resolution program
that meets the requirements of subsection (c)(12).
``(3) Contracting out of implementation.--In carrying out
paragraph (2), the Secretary may contract with an appropriate
agent to implement the dispute resolution program established
under that paragraph.
SEC. 1111. ELIMINATION OF ANNUAL REPORT REQUIREMENT.
The Act 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. 1112. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date of
the enactment of this Act, except that the amendments shall have no
effect on any order or interpretative bulletin that is published as a
proposed rule pursuant to section 553 of title 5, United States Code,
on or before such date.
SEC. 1113. SAVINGS PROVISION.
(a) Standards and Regulations.--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) and all regulations pertaining thereto in effect
immediately before the date of the enactment of this Act shall apply
until the effective date of a standard or regulation modifying or
superseding the existing standard or regulation which is 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.
(b) Contracts.--Any contract awarded after April 6, 2000, pursuant
to a Request for Proposal issued before the date of the enactment of
this Act shall remain in effect for a period of 2 years from the date
of the enactment of this Act or for the remainder of the contract term,
whichever period is shorter.
TITLE XII--PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION PROGRAM
SEC. 1201. ELIGIBLE PUBLIC HOUSING AGENCIES.
Section 5125 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11904)
is amended--
(1) in subsection (b)--
(A) in paragraph (2)(B), by inserting ``or (4)''
before the period at the end;
(B) by redesignating paragraph (4) as paragraph
(5); and
(C) by inserting after paragraph (3) the following
new paragraph:
``(4) Effective pha's.--The class established under this
paragraph is the class of public housing agencies that
demonstrate, to the satisfaction of the Secretary, that--
``(A) the agency received grants under this chapter
to carry out eligible activities under this chapter, as
in effect immediately before the effective date under
section 503(a) of the Quality Housing and Work
Responsibility Act of 1998;
``(B) the agency, in cooperation with local law
enforcement agencies, has largely eliminated drug and
crime problems in the public housing project or
projects for which the assistance will be used;
``(C) the agency needs to maintain or expand police
services in and around such public housing to sustain
the low incidence of crime and drug problems in and
around such public housing; and
``(D) the agency needs, and will use, assistance
under this chapter to maintain or expand such police
services,
except that such agencies shall be eligible under this
paragraph only during the 5-year period beginning upon initial
eligibility under this paragraph.''; and
(2) in subsection (c)(1), by inserting before the semicolon
the following: ``except that this paragraph shall not apply in
the case of agencies eligible for assistance under this chapter
pursuant to subsection (b)(4)''.
Passed the House of Representatives April 6, 2000.
Attest:
Clerk.