[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1776 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1776

             To expand homeownership in the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 1999

 Mr. Lazio (for himself and Mr. Leach) introduced the following bill; 
 which was referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
             To expand homeownership in the United States.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American 
Homeownership and Economic Opportunity Act of 1999''.
    (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. Study of mandatory inspection requirement under single family 
                            housing mortgage insurance program.
Sec. 202. Extension of loan term for manufactured home lots.
Sec. 203. Neighborhood teacher program.
Sec. 204. Insurance for mortgages to refinance existing home equity 
                            conversion mortgages.
Sec. 205. Report on title I home improvement loan program.
               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

Sec. 301. Downpayment assistance.
              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Homeownership for municipal employees.
Sec. 404. Technical amendment relating to brownfields.
Sec. 405. Housing opportunities for persons with AIDS.
             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing 
                            associations.
Sec. 503. Leveraging affordable housing investment through local loan 
                            pools.
Sec. 504. Loan guarantees.
Sec. 505. Homeownership for municipal employees.
               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.
              TITLE VII--MANUFACTURED HOUSING IMPROVEMENT

Sec. 701. Short title and references.
Sec. 702. Findings and purposes.
Sec. 703. Definitions.
Sec. 704. Federal manufactured home construction and safety standards.
Sec. 705. Abolishment of National Manufactured Home Advisory Council.
Sec. 706. Public information.
Sec. 707. Research, testing, development, and training.
Sec. 708. Fees.
Sec. 709. Elimination of annual report requirement.
Sec. 710. Effective date.
Sec. 711. Savings provision.
                TITLE VIII--INDIAN HOUSING HOMEOWNERSHIP

Sec. 801. Lands Title Report Commission.
Sec. 802. Loan guarantees for Indian housing.
 TITLE IX--TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO 
        LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORATIONS

Sec. 901. Transfer of unoccupied and substandard HUD-held housing to 
                            local governments and community development 
                            corporations.
Sec. 902. Technical corrections to the Multifamily Assisted Housing 
                            Reform and Affordability Act of 1997.
    TITLE X--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

Sec. 1001. Treatment of adjustable rate mortgages.
Sec. 1002. Treatment of certain modifications.
Sec. 1003. Residential mortgages and residential mortgage transactions.
Sec. 1004. Clarification of status of balloon mortgage financing.
Sec. 1005. Disclosure requirements.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the priorities of our Nation should include expanding 
        homeownership opportunities by providing access to affordable 
        housing that is safe, clean, and healthy;
            (2) our Nation has an abundance of conventional capital 
        sources available for homeownership financing; and
            (3) experience with local homeownership programs has shown 
        that if flexible capital sources are available, communities 
        possess ample will and creativity to provide opportunities 
        uniquely designed to assist their citizens in realizing the 
        American dream of homeownership.
    (b) Purpose.--It is the purpose of this Act--
            (1) to encourage and facilitate homeownership by families 
        in the United States who are not otherwise able to afford 
        homeownership; and
            (2) to expand homeownership through policies that--
                    (A) promote the ability of the private sector to 
                produce affordable housing without excessive government 
                regulation;
                    (B) encourage tax incentives, such as the mortgage 
                interest deduction, at all levels of government; and
                    (C) facilitate the availability of flexible capital 
                for homeownership opportunities 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 1999''.

SEC. 102. HOUSING IMPACT ANALYSIS.

    (a) Applicability.--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) 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 (c).
    (c) 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.
    (d) 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 (b)(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.
    (e) 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.
    (f) Avoidance of Duplicative or Unnecessary Analyses.--
            (1) Duplication.--Any Federal agency may perform the 
        analyses required by subsections (c) and (e) in conjunction 
        with or as a part of any other agenda or analysis required by 
        any other law, 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 (c) and (e).
    (g) Preparation of Analyses.--In complying with the provisions of 
subsections (c) and (e), an agency may provide either a quantifiable or 
numerical description of the effects of a proposed rule or alternatives 
to the proposed rule, or more general descriptive statements if 
quantification is not practicable or reliable.
    (h) Effect on Other Law.--The requirements of subsections (c) and 
(e) do not alter in any manner standards otherwise applicable by law to 
agency action.
    (i) Procedure for Waiver or Delay of Completion.--
            (1) Initial housing impact analysis.--An agency head may 
        waive or delay the completion of some or all of the 
        requirements of subsection (c) by publishing in the Federal 
        Register, not later than the date of publication of the final 
        rule, a written finding, with reasons therefor, that the final 
        rule is being promulgated in response to an emergency that 
        makes compliance or timely compliance with the provisions of 
        subsection (a) impracticable.
            (2) Final housing impact analysis.--An agency head may not 
        waive the requirements of subsection (e). An agency head may 
        delay the completion of the requirements of subsection (e) for 
        a period of not more than 180 days after the date of 
        publication in the Federal Register of a final rule by 
        publishing in the Federal Register, not later than such date of 
        publication, a written finding, with reasons therefor, that the 
        final rule is being promulgated in response to an emergency 
        that makes timely compliance with the provisions of subsection 
        (e) impracticable. If the agency has not prepared a final 
        housing impact analysis pursuant to subsection (e) within 180 
        days from the date of publication of the final rule, such rule 
        shall lapse and have no force or effect. Such rule shall not be 
        repromulgated until a final housing impact analysis has been 
        completed by the agency.
    (j) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) 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.
    (k) 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 (c).
    (l) 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 (c) or (e) 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 2000 and such 
sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 
2004.''.
    (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 1999) 
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. STUDY OF MANDATORY INSPECTION REQUIREMENT UNDER SINGLE FAMILY 
              HOUSING MORTGAGE INSURANCE PROGRAM.

    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.
    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. 202. 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. 203. NEIGHBORHOOD TEACHER PROGRAM.

    (a) Short Title.--This section may be cited as the ``Neighborhood 
Teachers Act''.
    (b) Congressional Findings.--The Congress finds that--
            (1) teachers are an integral part of our communities;
            (2) other than families, teachers are often the most 
        important mentors to children, providing them with the values 
        and skills for self-fulfillment in adult life; and
            (3) the Neighborhood Teachers Act recognizes the value 
        teachers bring to community and family life and is designed to 
        encourage and reward teachers that serve 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 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 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.
                    ``(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
                            ``(ii) directly to a purchaser who is a 
                        teacher.
                    ``(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 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 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) Awareness program.--From funds made available 
                for salaries and expenses for the Office of Policy 
                Support of the Department of Housing and Urban 
                Development, each field office of the Department shall 
                make available to elementary schools and secondary 
                schools within the jurisdiction of the field office and 
                to the public--
                            ``(i) a list of eligible properties located 
                        within the jurisdiction of the field office 
                        that are available for purchase by teachers 
                        under this paragraph; and
                            ``(ii) other information designed to make 
                        such teachers and the public aware of the 
                        discount and downpayment assistance available 
                        under this paragraph.
                    ``(H) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                            ``(i) The terms `elementary school' and 
                        `secondary school' have the meaning given such 
                        terms in section 14101 of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        8801).
                            ``(ii) The term `eligible property' means 
                        an eligible asset described in paragraph (2)(A) 
                        of this subsection.
                            ``(iii) The term `teacher' means an 
                        individual who is employed on a full-time basis 
                        as a teacher in an elementary or secondary 
                        school.''.
    (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. 204. INSURANCE FOR MORTGAGES TO REFINANCE EXISTING HOME EQUITY 
              CONVERSION MORTGAGES.

    (a) In General.--Section 255 of the National Housing Act (12 U.S.C. 
1715z-20) is amended--
            (1) by redesignating subsection (k) as subsection (l); and
            (2) 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) Applicability of requirements.--The provisions of 
        this section shall apply to the insurance of mortgages under 
        this subsection, except that the requirements under subsection 
        (d)(2)(B) (relating to third party counseling) shall not apply 
        to mortgages insured under this subsection.
            ``(3) Reduced up-front premium.--Notwithstanding section 
        203(c)(2)(A), the single premium payment collected at the time 
        of insurance of a mortgage under this subsection shall be an 
        amount not exceeding 2.0 percent of the difference between--
                    ``(A) the maximum amount of insurance benefits 
                payable under subsection (i)(1)(C) under the mortgage 
                insured under this subsection; and
                    ``(B) the maximum amount of insurance benefits 
                payable under subsection (i)(1)(C) under the home 
                equity conversion mortgage that is refinanced and 
                insured under this subsection.
            ``(4) Refund of original up-front premium.--If, in insuring 
        a mortgage under this subsection, the Secretary provides to the 
        mortgagor a refund of the full amount of any premium paid in 
        connection with the existing home equity mortgage refinanced 
        under the insured mortgage, paragraph (3) shall not apply and 
        the Secretary shall collect at the time of insurance a single 
        premium payment in accordance with the procedures otherwise 
        applicable to mortgage insurance under this section.''.
    (b) Regulations.--The Secretary shall issue any final regulations 
necessary to implement the amendments made by subsection (a), which 
shall take effect not later than the expiration of the 90-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).

SEC. 205. REPORT ON TITLE I HOME IMPROVEMENT LOAN PROGRAM.

    (a) In General.--Not later than 1 year 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 and consumer organizations.

               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.

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 401. REAUTHORIZATION.

    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 $4,750,000,000 for fiscal year 2000 and such sums as 
may be necessary for each of fiscal years 2001, 2002, 2003, and 
2004.''.

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. 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, 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 115 percent of the median income 
        of the area involved, as determined by the Secretary with 
        adjustments for smaller and larger families; and except that 
        such assistance shall be used only for acquiring principal 
        residences for such employees by--
                    ``(A) providing amounts for downpayments on 
                mortgages;
                    ``(B) paying reasonable closing costs normally 
                associated with the purchase of a residence;
                    ``(C) obtaining pre- or post-purchase counseling 
                relating to the financial and other obligations of 
                homeownership; or
                    ``(D) subsidizing mortgage interest rates;''.
    (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. 404. 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 403 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. 405. 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 
$215,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of fiscal years 2001, 2002, 2003, and 2004.''.

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 501. REAUTHORIZATION.

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

``SEC. 205. AUTHORIZATION.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $1,600,000,000 for fiscal year 2000 and such sums as may 
be necessary for each of fiscal years 2001, 2002, 2003, and 2004, of 
which--
            ``(1) not more than $25,000,000 in each such fiscal year 
        shall be for community housing partnership activities 
        authorized under section 233; and
            ``(2) not more than $15,000,000 in each such fiscal year 
        shall be for activities in support of State and local housing 
        strategies authorized under subtitle C.
    ``(b) Prohibition of Set-Asides.--Except as provided in subsection 
(a) of this section and section 217(a)(3), amounts appropriated 
pursuant to subsection (a) 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.''.

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. 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. 504. LOAN GUARANTEES.

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

``SEC. 227. LOAN GUARANTEES.

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

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;''.
    (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.''.

               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 new sentence: ``There is authorized to be 
appropriated to the corporation to carry out this title $90,000,000 for 
each of fiscal years 2000 through 2004.''.

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.
    ``(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 2000 and such sums 
as may be necessary for fiscal year 2001, to remain available until 
expended.''.

SEC. 603. LEASE-TO-OWN.

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

              TITLE VII--MANUFACTURED HOUSING IMPROVEMENT

SEC. 701. SHORT TITLE AND REFERENCES.

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

SEC. 702. FINDINGS AND PURPOSES.

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

                        ``findings and purposes

    ``Sec. 602. (a) Findings.--The Congress finds that--
            ``(1) manufactured housing plays a vital role in meeting 
        the housing needs of the Nation; and
            ``(2) manufactured homes provide a significant resource for 
        affordable homeownership and rental housing accessible to all 
        Americans.
    ``(b) Purposes.--The purposes of this title are--
            ``(1) to facilitate the acceptance of the quality, 
        durability, safety, and affordability of manufactured housing 
        within the Department of Housing and Urban Development;
            ``(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 owners of manufactured homes from 
        unreasonable risk of personal injury and property damage;
            ``(6) to establish a balanced consensus process for the 
        development, revision, and interpretation of Federal 
        construction and safety standards for manufactured homes and 
        related regulations for the enforcement of such standards;
            ``(7) to ensure uniform and effective enforcement of 
        Federal construction and safety standards for manufactured 
        homes; and
            ``(8) to ensure that the public interest in, and need for, 
        affordable manufactured housing is duly considered in all 
        determinations relating to the Federal standards and their 
        enforcement.''.

SEC. 703. DEFINITIONS.

    (a) In General.--Section 603 (42 U.S.C. 5402) is amended--
            (1) in paragraph (2), by striking ``dealer'' and inserting 
        ``retailer'';
            (2) in paragraph (12), by striking ``and'' at the end;
            (3) in paragraph (13), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(14) `administering organization' means the 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; 
        and
            ``(20) `monitoring'--
                    ``(A) 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 recommended 
                by the consensus committee and promulgated in 
                accordance with section 604(b), which process shall be 
                for the purpose of ensuring that the primary inspection 
                agencies are discharging their duties under this title; 
                and
                    ``(B) may include the periodic inspection of retail 
                locations for transit damage, label tampering, and 
                retailer compliance with this title.''.
    (b) Conforming Amendments.--The National Manufactured Housing 
Construction and Safety Standards Act of 1974 is amended--
            (1) in section 613 (42 U.S.C. 5412), by striking ``dealer'' 
        each place it appears and inserting ``retailer'';
            (2) in section 614(f) (42 U.S.C. 5413(f)), by striking 
        ``dealer'' each place it appears and inserting ``retailer'';
            (3) in section 615 (42 U.S.C. 5414)--
                    (A) in subsection (b)(1), by striking ``dealer'' 
                and inserting ``retailer'';
                    (B) in subsection (b)(3), by striking ``dealer or 
                dealers'' and inserting ``retailer or retailers''; and
                    (C) in subsections (d) and (f), by striking 
                ``dealers'' each place it appears and inserting 
                ``retailers'';
            (4) in section 616 (42 U.S.C. 5415), by striking ``dealer'' 
        and inserting ``retailer''; and
            (5) in section 623(c)(9), by striking ``dealers'' and 
        inserting ``retailers''.

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

    Section 604 (42 U.S.C. 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 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) appoint the initial members 
                                of the consensus committee under 
                                paragraph (3);
                                    ``(II) administer the consensus 
                                standards development process until the 
                                termination of that agreement; and
                                    ``(III) administer the consensus 
                                development and interpretation process 
                                for procedural and enforcement 
                                regulations and regulations specifying 
                                the permissible scope and conduct of 
                                monitoring until the termination of 
                                that agreement.
                    ``(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) 25 voting members appointed, subject 
                        to approval by the Secretary, by the 
                        administering organization from among 
                        individuals who are qualified by background and 
                        experience to participate in the work of the 
                        consensus committee; and
                            ``(ii) 1 member appointed by the Secretary 
                        to represent the Secretary on the consensus 
                        committee, who shall be a nonvoting member.
                    ``(C) Disapproval.--The Secretary may disapprove, 
                in writing with the reasons set forth, the appointment 
                of an individual under subparagraph (B)(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), except that the American National 
                Standards Institute interest categories shall be 
                modified for purposes of this paragraph to ensure equal 
                representation on the consensus committee of the 
                following interest categories:
                            ``(i) Home producers.--Five persons 
                        representing manufacturers of manufactured 
                        homes.
                            ``(ii) Other business interests.--Five 
                        persons representing other business interests 
                        involved in the manufactured housing industry 
                        such as retailers, installers, lenders, 
                        insurers, suppliers of products, and community 
                        owners. The business interests represented in 
                        this category shall not be owned or controlled 
                        by manufacturers represented under clause (i).
                            ``(iii) Consumers.--Five persons 
                        representing homeowners and consumer interests, 
                        such as consumer organizations, community 
                        organizations, recognized consumer leaders, and 
                        owners and occupants of manufactured homes.
                            ``(iv) Public officials.--Five persons who 
                        are State or local officials such as building 
                        code enforcement or inspection officials, fire 
                        marshals, and including representatives of 
                        State administrative agencies.
                            ``(v) General interest.--Five persons 
                        representing the public such as architects, 
                        engineers, homebuilders, academicians, and 
                        developers.
                    ``(E) Additional qualifications.--An individual 
                appointed under clause (iii), (iv), or (v) of 
                subparagraph (D) 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.
                    ``(F) 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.
                    ``(G) Inapplicability of other laws.--
                            ``(i) Advisory committee act.--The 
                        consensus committee shall not be considered to 
                        be an advisory committee for purposes of the 
                        Federal Advisory Committee Act.
                            ``(ii) Title 18.--The members of the 
                        consensus committee shall not be subject to 
                        section 203, 205, 207, or 208 of title 18, 
                        United States Code, to the extent of their 
                        proper participation as members of the 
                        consensus committee.
                            ``(iii) Ethics in government act of 1978.--
                        The Ethics in Government Act of 1978 shall not 
                        apply to members of the consensus committee to 
                        the extent of their proper participation as 
                        members of the consensus committee.
                    ``(H) Administration.--The consensus committee and 
                the administering organization shall--
                            ``(i) operate in conformance with the 
                        procedures established by the American National 
                        Standards Institute for the development and 
                        coordination of American National Standards; 
                        and
                            ``(ii) apply to the American National 
                        Standards Institute and take such other actions 
                        as may be necessary to obtain accreditation 
                        from the American National Standards Institute.
                    ``(I) Staff.--The administering organization shall, 
                upon the request of the consensus committee, provide 
                reasonable staff resources to the consensus committee. 
                Upon a showing of need, the Secretary shall furnish 
                technical support to any of the various interest 
                categories on the consensus committee.
                    ``(J) Date of initial appointments.--The initial 
                appointments of all of the members of the consensus 
                committee shall be completed not later than 90 days 
                after the date on which an administration agreement 
                under paragraph (2)(A) is completed with the 
                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 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. Unless clause (ii) applies, the 
                        Secretary shall provide an opportunity for 
                        public comment on such proposed revised 
                        standard 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 7 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 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) Emergency orders.--If the Secretary determines, in 
        writing, that such action is necessary in order to respond to 
        an emergency which jeopardizes the public health or safety, or 
        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, 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 emergency 
                action is necessary and all supporting documentation; 
                and
                    ``(B) issues 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 of 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 704(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.
            (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. 705. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL.

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

SEC. 706. PUBLIC INFORMATION.

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

SEC. 707. 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. 708. 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; and
                    ``(E) facilitating the acceptance of the quality, 
                durability, safety, and affordability of manufactured 
                housing within the Department; 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 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.
    ``(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 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.''.

SEC. 709. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

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

SEC. 710. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act, except that the amendments shall have no effect 
on any order or 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. 711. 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 pursuant to a Request for 
Proposal issued before the date of enactment of this Act shall remain 
in effect for a period of 2 years from the date of enactment of this 
Act or for the remainder of the contract term, whichever period is 
shorter.

                TITLE VIII--INDIAN HOUSING HOMEOWNERSHIP

SEC. 801. 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) 4 members shall be appointed by the President.
                    (B) 4 members shall be appointed by the Chairperson 
                of the Committee on Banking and Financial Services of 
                the House of Representatives.
                    (C) 4 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 
                8 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. 802. LOAN GUARANTEES FOR INDIAN HOUSING.

    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''.

 TITLE IX--TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO 
        LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORATIONS

SEC. 901. 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 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 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 property under section 
                        204(h) of the National Housing Act (12 U.S.C. 
                        1710(h)); or
                            ``(ii) is an eligible property 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 such units and 
                corporations, under which the Secretary shall accept an 
                offer to purchase such a property made by such a unit 
                or corporation during a period established by the 
                Secretary, but in the case of an offer made by a 
                community development corporation only if the offer 
                provides for purchase on a cost recovery basis; and
                    ``(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 
                1999, 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 or equal 
                to 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 3 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 3 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 1999, 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 1999, the Secretary shall 
                issue such final regulations as are necessary to carry 
                out this subsection.''.

SEC. 902. TECHNICAL CORRECTIONS TO THE MULTIFAMILY ASSISTED HOUSING 
              REFORM AND AFFORDABILITY ACT OF 1997.

    (a) Section 8 Contract Renewal Policy for Fiscal Year 2000 and 
Subsequent Years.--Section 524 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437 note; 111 Stat. 
1408-1409) is amended--
            (1) in subsection (a)(2), by inserting after 
        ``Notwithstanding paragraph (1)'' the following: ``and subject 
        to section 516 of this subtitle'';
            (2) in subsection (a)(2)(B), by striking ``and financing'' 
        and inserting ``and the primary financing''; and
            (3) by inserting at the end the following new subsections:
    ``(b) Inapplicability to Projects Subject to Restructuring.--This 
section shall not apply to projects restructured under this subtitle.
    ``(c) Savings Provisions.--Upon the repeal of this subtitle 
pursuant to section 579, the provisions of sections 512(2) and 516 (as 
in effect immediately before such repeal) shall apply with respect to 
this section.''.
    (b) Repeal of Contract Renewal Authority Under Section 405(a).--
Section 405(a) of the Balanced Budget Downpayment Act, I (42 U.S.C. 
1437f note; 110 Stat. 44-45), is hereby repealed.
    (c) Exemptions From Restructuring.--Section 514(h)(1) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437 note; 111 Stat. 1396) is amended to read as follows:
            ``(1) the primary financing for the project was provided by 
        a unit of State government or a unit of general local 
        government (or an agency or instrumentality of either) and the 
        primary financing involves mortgage insurance under the 
        National Housing Act, such that implementation of a mortgage 
        restructuring and rental assistance sufficiency plan under this 
        Act would be in conflict with applicable law or agreements 
        governing such financing;''.
    (d) Mandatory Renewal of Project-Based Assistance.--Section 
515(c)(1) of the Multifamily Assisted Housing Reform and Affordability 
Act of 1997 (42 U.S.C. 1437 note; 111 Stat. 1397) is amended by 
inserting ``or'' after the semicolon at the end of subparagraph (B).
    (e) Partial Payments of Claims.--Section 541 of the National 
Housing Act (12 U.S.C. 1735f-19) is amended--
            (1) by striking ``1978 or'' and inserting ``1978) or''; and
            (2) by striking ``)))'' and inserting ``))''.

    TITLE X--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

SEC. 1001. TREATMENT OF ADJUSTABLE RATE MORTGAGES.

    (a) Definitions.--Section 2 of the Homeowners Protection Act of 
1998 (12 U.S.C. 4901) is amended--
            (1) in paragraph (2)(B), by striking clause (i) and 
        inserting the following new clause:
                            ``(i) is scheduled to reach 80 percent of 
                        the original value of the property securing the 
                        loan, based solely on the amortization schedule 
                        then in effect and irrespective of the 
                        outstanding balance for that mortgage on that 
                        date; or'';
            (2) in paragraph (12), by striking ``primary'' and 
        inserting ``principal'';
            (3) in paragraph (13), by striking ``primary'' and 
        inserting ``principal'';
            (4) in paragraph (16), by striking subparagraph (B) and 
        inserting the following new subparagraph:
                    ``(B) with respect to an adjustable rate mortgage, 
                the date on which the principal balance of the mortgage 
                is scheduled to reach 78 percent of the original value 
                of the property securing the loan, based solely on the 
                amortization schedule then in effect and irrespective 
                of the outstanding balance for that mortgage on that 
                date.'';
            (5) by redesignating paragraphs (2) through (16), as 
        amended by the preceding provisions of this subsection, as 
        paragraphs (3) through (17), respectively; and
            (6) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Amortization schedule.--The term `amortization 
        schedule' means, with respect to an adjustable rate mortgage, 
        the schedule that is created at the time a residential mortgage 
        transaction is consummated and the schedule established with 
        respect to each subsequent change date, which the mortgagee 
        uses to determine the amount of principal and interest that is 
        due at regular intervals to retire the balance and accrued 
        interest over the remaining amortization period of the loan. 
        Such amortization schedules shall be prepared at such times as 
        the mortgagor's interest rate or payment is calculated or 
        recalculated under, and in accordance with, the calculation 
        methodology set forth in the credit terms to which the parties 
to the mortgage are legally bound, and taking into account, if 
applicable under such credit terms, the actual outstanding balance of 
the mortgage (including any prepayments of or additions to principal) 
at the time of the recalculation. The amortization schedule developed 
at the time of the most recent interest rate change or payment 
recalculation will be the only amortization schedule used to determine 
whether the loan will reach the cancellation date, termination date, or 
the date established in section 3(g)(1)(B)(ii) before the next payment 
recalculation or interest rate change date.''.
    (b) Exceptions for High Risk Loans.--Section 3(f)(1)(B) of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902(f)(1)(B)) is amended 
by striking clause (ii) and inserting the following new clause:
                            ``(ii) with respect to an adjustable rate 
                        mortgage, on the date on which the principal 
                        balance of the mortgage is scheduled to reach 
                        77 percent of the original value of the 
                        property securing the loan, based solely on the 
                        amortization schedule then in effect and 
                        irrespective of the outstanding balance for 
                        that mortgage on that date.''.

SEC. 1002. TREATMENT OF CERTAIN MODIFICATIONS.

    (a) In General.--Section 3 of the Homeowners Protection Act of 1998 
(12 U.S.C. 4902) is amended--
            (1) by redesignating subsections (d) through (f) as 
        subsections (e) through (g), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Treatment of Modifications.--The termination date, 
cancellation date, and date upon which final termination is reached 
with regard to residential mortgage transactions may be reset, at the 
option of the mortgagee, if the mortgagor and mortgagee agree to a 
modification to the terms of the note or mortgage. The mortgagee will 
reset the termination date, cancellation date, and final termination 
according to subsections (a), (b), and (c) using the modified terms of 
the note. A recording of the modified mortgage or note is not required 
under this subsection.''.
    (b) Conforming Amendments.--Section 4(a) of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``section 3(f)(1)'' and inserting ``section 
                3(g)(1)'';
                    (B) in subparagraph (A)(ii)(IV), by striking 
                ``section 3(f)'' and inserting ``section 3(g)''; and
                    (C) in subparagraph (B)(iii), by striking ``section 
                3(f)'' and inserting ``section 3(g)''; and
            (2) in paragraph (2), by striking ``section 3(f)(1)'' and 
        inserting ``section 3(g)(1)''.

SEC. 1003. RESIDENTIAL MORTGAGES AND RESIDENTIAL MORTGAGE TRANSACTIONS.

    (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 
        1002(a)(1) of this Act)--
                    (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(a) of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``mortgage or'' the first place it 
                appears; and
                    (B) by striking ``mortgage or'' the second place it 
                appears and inserting ``residential''; and
            (2) in paragraph (2), by striking ``mortgage or'' and 
        inserting ``residential''.
    (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'';
                    (B) in paragraph (1)(B), by inserting 
                ``transaction'' after ``residential mortgage'' each 
                place it appears; and
                    (C) in paragraph (2), by inserting ``transaction'' 
                after ``residential mortgage''; and
            (2) in subsection (d), by inserting ``transaction'' after 
        ``residential mortgage''.

SEC. 1004. CLARIFICATION OF STATUS OF BALLOON MORTGAGE FINANCING.

    Section 2(1) 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 does not fully amortize over the term of 
the obligation and contains a conditional right to refinance the 
unamortized principal at the end of the term shall be considered to be 
an adjustable rate mortgage for purposes of this Act on the basis of 
the rate change that may occur at the end of the term if the borrower 
exercises the conditional right to refinance.''.

SEC. 1005. DISCLOSURE REQUIREMENTS.

    (a) Inclusion in Other Annual Notices.--Section 4(c) of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4903(c)) is amended by 
striking ``subsection (b) and paragraphs (1)(B) and (3) of subsection 
(a)'' and inserting ``subsections (a)(3) and (b)''.
    (b) Standardized Forms.--Section 4(d) of the Homeowners Protection 
Act of 1998 (12 U.S.C. 4903(d)) is amended by inserting before the 
period at the end the following: ``, which disclosures shall relate to 
the mortgagor's rights under this Act''.
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