[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[House]
[Pages H11603-H11622]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996

  Mr. LAZIO of New York. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3219) to provide Federal assistance for Indian 
tribes in a manner that recognizes the right of tribal self-governance, 
and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 3219

       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 ``Native 
     American Housing Assistance and Self-Determination Act of 
     1996''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Congressional findings.
Sec. 3. Administration through Office of Native American Programs.
Sec. 4. Definitions.

              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

Sec. 101. Block grants.
Sec. 102. Indian housing plans.
Sec. 103. Review of plans.
Sec. 104. Treatment of program income and labor standards.
Sec. 105. Environmental review.
Sec. 106. Regulations.
Sec. 107. Effective date.
Sec. 108. Authorization of appropriations.

                TITLE II--AFFORDABLE HOUSING ACTIVITIES

Sec. 201. National objectives and eligible families.
Sec. 202. Eligible affordable housing activities.
Sec. 203. Program requirements.
Sec. 204. Types of investments.
Sec. 205. Low-income requirement and income targeting.
Sec. 206. Certification of compliance with subsidy layering 
              requirements.
Sec. 207. Lease requirements and tenant selection.
Sec. 208. Availability of records.
Sec. 209. Repayment.
Sec. 210. Continued use of amounts for affordable housing.

                 TITLE III--ALLOCATION OF GRANT AMOUNTS

Sec. 301. Annual allocation.
Sec. 302. Allocation formula.

               TITLE IV--COMPLIANCE, AUDITS, AND REPORTS

Sec. 401. Remedies for noncompliance.
Sec. 402. Replacement of recipient.
Sec. 403. Monitoring of compliance.
Sec. 404. Performance reports.
Sec. 405. Review and audit by Secretary.
Sec. 406. GAO audits.
Sec. 407. Reports to Congress.

TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER INCORPORATED 
                                PROGRAMS

Sec. 501. Repeal of provisions relating to Indian housing assistance 
              under United States Housing Act of 1937.
Sec. 502. Termination of Indian housing assistance under United States 
              Housing Act of 1937.
Sec. 503. Termination of new commitments for rental assistance.
Sec. 504. Termination of youthbuild program assistance.
Sec. 505. Termination of HOME program assistance.
Sec. 506. Termination of housing assistance for the homeless.
Sec. 507. Savings provision.
Sec. 508. Effective date.

     TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
                               ACTIVITIES

Sec. 601. Authority and requirements.
Sec. 602. Security and repayment.
Sec. 603. Payment of interest.
Sec. 604. Training and information.
Sec. 605. Limitations on amount of guarantees.
Sec. 606. Effective date.

        TITLE VII--OTHER HOUSING ASSISTANCE FOR NATIVE AMERICANS

Sec. 701. Loan guarantees for Indian housing.
Sec. 702. 50-year leasehold interest in trust or restricted lands for 
              housing purposes.
Sec. 703. Training and technical assistance.
Sec. 704. Public and Assisted Housing Drug Elimination Act of 1990.
Sec. 705. Effective date.

     SEC. 2. CONGRESSIONAL FINDINGS.

       The Congress finds that--
       (1) the Federal Government has a responsibility to promote 
     the general welfare of the Nation--
       (A) by using Federal resources to aid families and 
     individuals seeking affordable homes in safe and healthy 
     environments and, in particular, assisting responsible, 
     deserving citizens who cannot provide fully for themselves 
     because of temporary circumstances or factors beyond their 
     control;
       (B) by working to ensure a thriving national economy and a 
     strong private housing market; and
       (C) by developing effective partnerships among the Federal 
     Government, State, tribal, and local governments, and private 
     entities that allow government to accept responsibility for 
     fostering the development of a healthy marketplace and allow 
     families to prosper without government involvement in their 
     day-to-day activities;
       (2) there exists a unique relationship between the 
     Government of the United States and the governments of Indian 
     tribes and a unique Federal responsibility to Indian people;
       (3) the Constitution of the United States invests the 
     Congress with plenary power over the field of Indian affairs, 
     and through treaties, statutes, and historical relations with 
     Indian tribes, the United States has undertaken a unique 
     trust responsibility to protect and support Indian tribes and 
     Indian people;
       (4) the Congress, through treaties, statutes, and the 
     general course of dealing with Indian tribes, has assumed a 
     trust responsibility for the protection and preservation

[[Page H11604]]

     of Indian tribes and for working with tribes and their 
     members to improve their housing conditions and socioeconomic 
     status so that they are able to take greater responsibility 
     for their own economic condition;
       (5) providing affordable homes in safe and healthy 
     environments is an essential element in the special role of 
     the United States in helping tribes and their members to 
     improve their housing conditions and socioeconomic status;
       (6) the need for affordable homes in safe and healthy 
     environments on Indian reservations, in Indian communities, 
     and in Native Alaskan villages is acute and the Federal 
     Government should work not only to provide housing 
     assistance, but also, to the extent practicable, to assist in 
     the development of private housing finance mechanisms on 
     Indian lands to achieve the goals of economic self-
     sufficiency and self-determination for tribes and their 
     members; and
       (7) Federal assistance to meet these responsibilities 
     should be provided in a manner that recognizes the right of 
     Indian self-determination and tribal self-governance by 
     making such assistance available directly to the Indian 
     tribes or tribally designated entities under authorities 
     similar to those accorded Indian tribes in Public Law 93-638 
     (25 U.S.C. 450 et seq.).

     SEC. 3. ADMINISTRATION THROUGH OFFICE OF NATIVE AMERICAN 
                   PROGRAMS.

       The Secretary of Housing and Urban Development shall carry 
     out this Act through the Office of Native American Programs 
     of the Department of Housing and Urban Development.

     SEC. 4. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) Adjusted income.--The term ``adjusted income'' means 
     the annual income that remains after excluding the following 
     amounts:
       (A) Youths, students, and persons with disabilities.--$480 
     for each member of the family residing in the household 
     (other than the head of the household or the spouse of the 
     head of the household)--
       (i) who is under 18 years of age; or
       (ii) who is--

       (I) 18 years of age or older; and
       (II) a person with disabilities or a full-time student.

       (B) Elderly and disabled families.--$400 for an elderly or 
     disabled family.
       (C) Medical and attendant expenses.--The amount by which 3 
     percent of the annual income of the family is exceeded by the 
     aggregate of--
       (i) medical expenses, in the case of an elderly or disabled 
     family; and
       (ii) reasonable attendant care and auxiliary apparatus 
     expenses for each family member who is a person with 
     disabilities, to the extent necessary to enable any member of 
     the family (including a member who is a person with 
     disabilities) to be employed.
       (D) Child care expenses.--Child care expenses, to the 
     extent necessary to enable another member of the family to be 
     employed or to further his or her education.
       (E) Earned income of minors.--The amount of any earned 
     income of any member of the family who is less than 18 years 
     of age.
       (F) Travel expenses.--Excessive travel expenses, not to 
     exceed $25 per family per week, for employment- or education-
     related travel.
       (G) Other amounts.--Such other amounts as may be provided 
     in the Indian housing plan for an Indian tribe.
       (2) Affordable housing.--The term ``affordable housing'' 
     means housing that complies with the requirements for 
     affordable housing under title II. The term includes 
     permanent housing for homeless persons who are persons with 
     disabilities, transitional housing, and single room occupancy 
     housing.
       (3) Drug-related criminal activity.--The term ``drug-
     related criminal activity'' means the illegal manufacture, 
     sale, distribution, use, or possession with intent to 
     manufacture, sell, distribute, or use, of a controlled 
     substance (as such term is defined in section 102 of the 
     Controlled Substances Act).
       (4) Elderly families and near-elderly families.--The terms 
     ``elderly family'' and ``near-elderly family'' mean a family 
     whose head (or his or her spouse), or whose sole member, is 
     an elderly person or a near-elderly person, respectively. 
     Such terms include 2 or more elderly persons or near-elderly 
     persons living together, and 1 or more such persons living 
     with 1 or more persons determined under the Indian housing 
     plan for the agency to be essential to their care or well-
     being.
       (5) Elderly person.--The term ``elderly person'' means a 
     person who is at least 62 years of age.
       (6) Family.--The term ``family'' includes a family with or 
     without children, an elderly family, a near-elderly family, a 
     disabled family, and a single person.
       (7) Grant beneficiary.--The term ``grant beneficiary'' 
     means the Indian tribe or tribes on behalf of which a grant 
     is made under this Act to a recipient.
       (8) Income.--The term ``income'' means income from all 
     sources of each member of the household, as determined in 
     accordance with criteria prescribed by the Secretary, except 
     that the following amounts may not be considered as income 
     under this paragraph:
       (A) Any amounts not actually received by the family.
       (B) Any amounts that would be eligible for exclusion under 
     section 1613(a)(7) of the Social Security Act.
       (9) Indian.--The term ``Indian'' means any person who is a 
     member of an Indian tribe.
       (10) Indian area.--The term ``Indian area'' means the area 
     within which a tribally designated housing entity is 
     authorized by one or more Indian tribes to provide assistance 
     under this Act for affordable housing.
       (11) Indian housing plan.--The term ``Indian housing plan'' 
     means a plan under section 102.
       (12) Indian tribe.--
       (A) In general.--The term ``Indian tribe'' means a tribe 
     that is a federally recognized tribe or a State recognized 
     tribe.
       (B) Federally recognized tribe.--The term ``federally 
     recognized tribe'' means any Indian tribe, band, nation, or 
     other organized group or community of Indians, including any 
     Alaska Native village or regional or village corporation as 
     defined in or established pursuant to the Alaska Native 
     Claims Settlement Act, that is recognized as eligible for the 
     special programs and services provided by the United States 
     to Indians because of their status as Indians pursuant to the 
     Indian Self-Determination and Education Assistance Act of 
     1975.
       (C) State recognized tribe.--
       (i) In general.--The term ``State recognized tribe'' means 
     any tribe, band, nation, pueblo, village, or community--

       (I) that has been recognized as an Indian tribe by any 
     State; and
       (II) for which an Indian Housing Authority has, before the 
     effective date under section 107, entered into a contract 
     with the Secretary pursuant to the United States Housing Act 
     of 1937 for housing for Indian families and has received 
     funding pursuant to such contract within the 5-year period 
     ending upon such effective date.

       (ii) Conditions.--Notwithstanding clause (i)--

       (I) the allocation formula under section 302 shall be 
     determined for a State recognized tribe under tribal 
     membership eligibility criteria in existence on the date of 
     the enactment of this Act; and
       (II) nothing in this paragraph shall be construed to confer 
     upon a State recognized tribe any rights, privileges, 
     responsibilities, or obligations otherwise accorded groups 
     recognized as Indian tribes by the United States for other 
     purposes.

       (13) Low-income family.--The term ``low-income family'' 
     means a family whose income does not exceed 80 percent of the 
     median income for the area, as determined by the Secretary 
     with adjustments for smaller and larger families, except that 
     the Secretary may, for purposes of this paragraph, establish 
     income ceilings higher or lower than 80 percent of the median 
     for the area on the basis of the findings of the Secretary or 
     the agency that such variations are necessary because of 
     prevailing levels of construction costs or unusually high or 
     low family incomes.
       (14) Median income.--The term ``median income'' means, with 
     respect to an area that is an Indian area, the greater of--
       (A) the median income for the Indian area, which the 
     Secretary shall determine; or
       (B) the median income for the United States.
       (15) Near-elderly person.--The term ``near-elderly person'' 
     means a person who is at least 55 years of age and less than 
     62 years of age.
       (16) Nonprofit.--The term ``nonprofit'' means, with respect 
     to an organization, association, corporation, or other 
     entity, that no part of the net earnings of the entity inures 
     to the benefit of any member, founder, contributor, or 
     individual.
       (17) Person with disabilities.--The term ``person with 
     disabilities'' means a person who--
       (A) has a disability as defined in section 223 of the 
     Social Security Act;
       (B) is determined, pursuant to regulations issued by the 
     Secretary, to have a physical, mental, or emotional 
     impairment which--
       (i) is expected to be of long-continued and indefinite 
     duration;
       (ii) substantially impedes his or her ability to live 
     independently; and
       (iii) is of such a nature that such ability could be 
     improved by more suitable housing conditions; or
       (C) has a developmental disability as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act.

     Such term shall not exclude persons who have the disease of 
     acquired immunodeficiency syndrome or any conditions arising 
     from the etiologic agent for acquired immunodeficiency 
     syndrome. Notwithstanding any other provision of law, no 
     individual shall be considered a person with disabilities, 
     for purposes of eligibility for housing assisted under this 
     Act, solely on the basis of any drug or alcohol dependence. 
     The Secretary shall consult with other appropriate Federal 
     agencies to implement the preceding sentence.
       (18) Recipient.--The term ``recipient'' means an Indian 
     tribe or the entity for one or more Indian tribes that is 
     authorized to receive grant amounts under this Act on behalf 
     of the tribe or tribes.
       (19) Secretary.--Except as otherwise specifically provided 
     in this Act, the term ``Secretary'' means the Secretary of 
     Housing and Urban Development.
       (20) State.--The term ``State'' means the States of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern

[[Page H11605]]

     Mariana Islands, Guam, the Virgin Islands, American Samoa, 
     and any other territory or possession of the United States 
     and Indian tribes.
       (21) Tribally designated housing entity.--The terms 
     ``tribally designated housing entity'' and ``housing entity'' 
     have the following meaning:
       (A) Existing iha's.--With respect to any Indian tribe that 
     has not taken action under subparagraph (B), and for which an 
     Indian housing authority--
       (i) was established for purposes of the United States 
     Housing Act of 1937 before the date of the enactment of this 
     Act that meets the requirements under the United States 
     Housing Act of 1937,
       (ii) is acting upon such date of enactment as the Indian 
     housing authority for the tribe, and
       (iii) is not an Indian tribe for purposes of this Act,

     the terms mean such Indian housing authority.
       (B) Other entities.--With respect to any Indian tribe that, 
     pursuant to this Act, authorizes an entity other than the 
     tribal government to receive grant amounts and provide 
     assistance under this Act for affordable housing for Indians, 
     which entity is established--
       (i) by exercise of the power of self-government of one or 
     more Indian tribes independent of State law, or
       (ii) by operation of State law providing specifically for 
     housing authorities or housing entities for Indians, 
     including regional housing authorities in the State of 
     Alaska,

     the terms mean such entity.
       (C) Establishment.--A tribally designated housing entity 
     may be authorized or established by one or more Indian tribes 
     to act on behalf of each such tribe authorizing or 
     establishing the housing entity.
              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

     SEC. 101. BLOCK GRANTS.

       (a) Authority.--For each fiscal year, the Secretary shall 
     (to the extent amounts are made available to carry out this 
     Act) make grants under this section on behalf of Indian 
     tribes to carry out affordable housing activities. Under such 
     a grant on behalf of an Indian tribe, the Secretary shall 
     provide the grant amounts for the tribe directly to the 
     recipient for the tribe.
       (b) Plan Requirement.--
       (1) In general.--The Secretary may make a grant under this 
     Act on behalf of an Indian tribe for a fiscal year only if--
       (A) the Indian tribe has submitted to the Secretary an 
     Indian housing plan for such fiscal year under section 102; 
     and
       (B) the plan has been determined under section 103 to 
     comply with the requirements of section 102.
       (2) Waiver.--The Secretary may waive the applicability of 
     the requirements under paragraph (1), in whole or in part, if 
     the Secretary finds that an Indian tribe has not complied or 
     cannot comply with such requirements due to circumstances 
     beyond the control of the tribe.
       (c) Local Cooperation Agreement.--The Secretary may not 
     make any grant under this Act on behalf of an Indian tribe 
     unless the governing body of the locality within which any 
     affordable housing to be assisted with the grant amounts will 
     be situated has entered into an agreement with the recipient 
     for the tribe providing for local cooperation required by the 
     Secretary pursuant to this Act.
       (d) Exemption From Taxation.--A grant recipient for an 
     Indian tribe may receive a block grant under this Act only 
     if--
       (1) the affordable housing assisted with grant amounts 
     received by the recipient (exclusive of any portions not 
     assisted with amounts provided under this Act) is exempt from 
     all real and personal property taxes levied or imposed by any 
     State, tribe, city, county, or other political subdivision; 
     and
       (2) the recipient makes annual payments of user fees to 
     compensate such governments for the costs of providing 
     governmental services, including police and fire protection, 
     roads, water and sewerage systems, utilities systems and 
     related facilities, or payments in lieu of taxes to such 
     taxing authority, in an amount equal to the greater of $150 
     per dwelling unit or 10 percent of the difference between the 
     shelter rent and the utility cost, or such lesser amount as--
       (A) is prescribed by State, tribal, or local law;
       (B) is agreed to by the local governing body in the 
     agreement under subsection (c); or
       (C) the recipient and the local governing body agree that 
     such user fees or payments in lieu of taxes shall not be 
     made.
       (e) Effect of Failure To Exempt From Taxation.--
     Notwithstanding subsection (d), a grant recipient that does 
     not comply with the requirements under such subsection may 
     receive a block grant under this Act, but only if the tribe, 
     State, city, county, or other political subdivision in which 
     the affordable housing development is located contributes, in 
     the form of cash or tax remission, the amount by which the 
     taxes paid with respect to the development exceed the amounts 
     prescribed in subsection (d)(2).
       (f) Amount.--Except as otherwise provided under this Act, 
     the amount of a grant under this section to a recipient for a 
     fiscal year shall be--
       (1) in the case of a recipient whose grant beneficiary is a 
     single Indian tribe, the amount of the allocation under 
     section 301 for the Indian tribe; and
       (2) in the case of a recipient whose grant beneficiary is 
     more than 1 Indian tribe, the sum of the amounts of the 
     allocations under section 301 for each such Indian tribe.
       (g) Use for Affordable Housing Activities Under Plan.--
     Except as provided in subsection (h), amounts provided under 
     a grant under this section may be used only for affordable 
     housing activities under title II that are consistent with an 
     Indian housing plan approved under section 103.
       (h) Administrative Expenses.--The Secretary shall, by 
     regulation, authorize each recipient to use a percentage of 
     any grant amounts received under this Act for any reasonable 
     administrative and planning expenses of the recipient 
     relating to carrying out this Act and activities assisted 
     with such amounts, which may include costs for salaries of 
     individuals engaged in administering and managing affordable 
     housing activities assisted with grant amounts provided under 
     this Act and expenses of preparing an Indian housing plan 
     under section 102.
       (i) Public-Private Partnerships.--Each recipient shall make 
     all reasonable efforts, consistent with the purposes of this 
     Act, to maximize participation by the private sector, 
     including nonprofit organizations and for-profit entities, in 
     implementing the approved Indian housing plan.

     SEC. 102. INDIAN HOUSING PLANS.

       (a) Plan Submission.--The Secretary shall provide--
       (1) for an Indian tribe to submit to the Secretary, for 
     each fiscal year, a housing plan under this section for the 
     tribe;
       (2) for the tribally designated housing entity for the 
     tribe to submit the plan as provided in subsection (d) for 
     the tribe; and
       (3) for the review of such plans.
       (b) 5-Year Plan.--Each housing plan under this section 
     shall be in a form prescribed by the Secretary and shall 
     contain, with respect to the 5-year period beginning with the 
     fiscal year for which the plan is submitted, the following 
     information:
       (1) Mission statement.--A general statement of the mission 
     of the Indian tribe to serve the needs of the low-income 
     families in the jurisdiction of the Indian tribe during the 
     period.
       (2) Goals and objectives.--A statement of the goals and 
     objectives of the Indian tribe to enable the tribe to serve 
     the needs identified in paragraph (1) during the period.
       (3) Activities plan.--An overview of the activities planned 
     during the period including an analysis of the manner in 
     which the activities will enable the tribe to meet its 
     mission, goals, and objectives.
       (c) 1-Year Plan.--A housing plan under this section for an 
     Indian tribe shall be in a form prescribed by the Secretary 
     and contain the following information relating to the 
     upcoming fiscal year for which the assistance under this Act 
     is to be made available:
       (1) Goals and objectives.--A statement of the goals and 
     objectives to be accomplished during that period.
       (2) Statement of needs.--A statement of the housing needs 
     of the low-income Indian families residing in the 
     jurisdiction of the Indian tribe and the means by which such 
     needs will be addressed during the period, including--
       (A) a description of the estimated housing needs and the 
     need for assistance for the low-income Indian families in the 
     jurisdiction, including a description of the manner in which 
     the geographical distribution of assistance is consistent 
     with the geographical needs and needs for various categories 
     of housing assistance; and
       (B) a description of the estimated housing needs for all 
     Indian families in the jurisdiction.
       (3) Financial resources.--An operating budget for the 
     recipient, in a form prescribed by the Secretary, that 
     includes--
       (A) an identification and a description of the financial 
     resources reasonably available to the recipient to carry out 
     the purposes of this Act, including an explanation of the 
     manner in which amounts made available will leverage 
     additional resources; and
       (B) the uses to which such resources will be committed, 
     including eligible and required affordable housing activities 
     under title II and administrative expenses.
       (4) Affordable housing resources.--A statement of the 
     affordable housing resources currently available and to be 
     made available during the period, including--
       (A) a description of the significant characteristics of the 
     housing market in the jurisdiction, including the 
     availability of housing from other public sources, private 
     market housing, and the manner in which such characteristics 
     influence the decision of the recipient to use grant amounts 
     to be provided under this Act for rental assistance, 
     production of new units, acquisition of existing units, or 
     rehabilitation of units;
       (B) a description of the structure, coordination, and means 
     of cooperation between the recipient and any other 
     governmental entities in the development, submission, or 
     implementation of housing plans, including a description of 
     the involvement of private, public, and nonprofit 
     organizations and institutions, and the use of loan 
     guarantees under section 184 of the Housing and Community 
     Development Act of 1992, and other housing assistance 
     provided by the Federal Government for Indian tribes, 
     including loans, grants, and mortgage insurance;

[[Page H11606]]

       (C) a description of the manner in which the plan will 
     address the needs identified pursuant to paragraph (2);
       (D) a description of the manner in which the recipient will 
     protect and maintain the viability of housing owned and 
     operated by the recipient that was developed under a contract 
     between the Secretary and an Indian housing authority 
     pursuant to the United States Housing Act of 1937;
       (E) a description of any existing and anticipated 
     homeownership programs and rental programs to be carried out 
     during the period, and the requirements and assistance 
     available under such programs;
       (F) a description of any existing and anticipated housing 
     rehabilitation programs necessary to ensure the long-term 
     viability of the housing to be carried out during the period, 
     and the requirements and assistance available under such 
     programs;
       (G) a description of all other existing or anticipated 
     housing assistance provided by the recipient during the 
     period, including transitional housing, homeless housing, 
     college housing, supportive services housing, and the 
     requirements and assistance available under such programs;
       (H) a description of any housing to be demolished or 
     disposed of, a timetable for such demolition or disposition, 
     and any other information required by the Secretary with 
     respect to such demolition or disposition;
       (I) a description of the manner in which the recipient will 
     coordinate with tribal and State welfare agencies to ensure 
     that residents of such housing will be provided with access 
     to resources to assist in obtaining employment and achieving 
     self-sufficiency;
       (J) a description of the requirements established by the 
     recipient to promote the safety of residents of such housing, 
     facilitate the undertaking of crime prevention measures, 
     allow resident input and involvement, including the 
     establishment of resident organizations, and allow for the 
     coordination of crime prevention activities between the 
     recipient and tribal and local law enforcement officials; and
       (K) a description of the entity that will carry out the 
     activities under the plan, including the organizational 
     capacity and key personnel of the entity.
       (5) Certification of compliance.--Evidence of compliance 
     which shall include, as appropriate--
       (A) a certification that the recipient will comply with 
     title II of the Civil Rights Act of 1968 in carrying out this 
     Act, to the extent that such title is applicable, and other 
     applicable Federal statutes;
       (B) a certification that the recipient will maintain 
     adequate insurance coverage for housing units that are owned 
     and operated or assisted with grant amounts provided under 
     this Act, in compliance with such requirements as may be 
     established by the Secretary;
       (C) a certification that policies are in effect and are 
     available for review by the Secretary and the public 
     governing the eligibility, admission, and occupancy of 
     families for housing assisted with grant amounts provided 
     under this Act;
       (D) a certification that policies are in effect and are 
     available for review by the Secretary and the public 
     governing rents charged, including the methods by which such 
     rents or homebuyer payments are determined, for housing 
     assisted with grant amounts provided under this Act; and
       (E) a certification that policies are in effect and are 
     available for review by the Secretary and the public 
     governing the management and maintenance of housing assisted 
     with grant amounts provided under this Act.
       (d) Participation of Tribally Designated Housing Entity.--A 
     plan under this section for an Indian tribe may be prepared 
     and submitted on behalf of the tribe by the tribally 
     designated housing entity for the tribe, but only if such 
     plan contains a certification by the recognized tribal 
     government of the grant beneficiary that such tribe--
       (1) has had an opportunity to review the plan and has 
     authorized the submission of the plan by the housing entity; 
     or
       (2) has delegated to such tribally designated housing 
     entity the authority to submit a plan on behalf of the tribe 
     without prior review by the tribe.
       (e) Coordination of Plans.--A plan under this section may 
     cover more than 1 Indian tribe, but only if the certification 
     requirements under subsection (d) are complied with by each 
     such grant beneficiary covered.
       (f) Plans for Small Tribes.--
       (1) Separate requirements.--The Secretary may--
       (A) establish requirements for submission of plans under 
     this section and the information to be included in such plans 
     applicable to small Indian tribes and small tribally 
     designated housing entities; and
       (B) waive any requirements under this section that the 
     Secretary determines are burdensome or unnecessary for such 
     tribes and housing entities.
       (2) Small tribes.--The Secretary may define small Indian 
     tribes and small tribally designated housing entities based 
     on the number of dwelling units assisted under this title by 
     the tribe or housing entity or owned or operated pursuant to 
     a contract under the United States Housing Act of 1937 
     between the Secretary and the Indian housing authority for 
     the tribe.
       (g) Regulations.--The requirements relating to the contents 
     of plans under this section shall be established by 
     regulation, pursuant to section 106.

     SEC. 103. REVIEW OF PLANS.

       (a) Review and Notice.--
       (1) Review.--The Secretary shall conduct a limited review 
     of each Indian housing plan submitted to the Secretary to 
     ensure that the plan complies with the requirements of 
     section 102. The Secretary shall have the discretion to 
     review a plan only to the extent that the Secretary considers 
     review is necessary.
       (2) Notice.--The Secretary shall notify each Indian tribe 
     for which a plan is submitted and any tribally designated 
     housing entity for the tribe whether the plan complies with 
     such requirements not later than 60 days after receiving the 
     plan. If the Secretary does not notify the Indian tribe, as 
     required under this subsection and subsection (b), the plan 
     shall be considered, for purposes of this Act, to have been 
     determined to comply with the requirements under section 102 
     and the tribe shall be considered to have been notified of 
     compliance upon the expiration of such 60-day period.
       (b) Notice of Reasons for Determination of Noncompliance.--
     If the Secretary determines that a plan, as submitted, does 
     not comply with the requirements under section 102, the 
     Secretary shall specify in the notice under subsection (a) 
     the reasons for the noncompliance and any modifications 
     necessary for the plan to meet the requirements under section 
     102.
       (c) Review.--After submission of the Indian housing plan or 
     any amendment or modification to the plan to the Secretary, 
     to the extent that the Secretary considers such action to be 
     necessary to make determinations under this subsection, the 
     Secretary shall review the plan (including any amendments or 
     modifications thereto) to determine whether the contents of 
     the plan--
       (1) set forth the information required by section 102 to be 
     contained in an Indian housing plan;
       (2) are consistent with information and data available to 
     the Secretary; and
       (3) are prohibited by or inconsistent with any provision of 
     this Act or other applicable law.

     If the Secretary determines that any of the appropriate 
     certifications required under section 102(c)(5) are not 
     included in the plan, the plan shall be deemed to be 
     incomplete.
       (d) Updates to Plan.--After a plan under section 102 has 
     been submitted for an Indian tribe for any fiscal year, the 
     tribe may comply with the provisions of such section for any 
     succeeding fiscal year (with respect to information included 
     for the 5-year period under section 102(b) or the 1-year 
     period under section 102(c)) by submitting only such 
     information regarding such changes as may be necessary to 
     update the plan previously submitted. Not less than once 
     every 5 years, the tribe shall submit a complete plan.
       (e) Effective Date.--This section and section 102 shall 
     take effect on the date provided by the Secretary pursuant to 
     section 106(a) to provide for timely submission and review of 
     Indian housing plans as necessary for the provision of 
     assistance under this Act in fiscal year 1998.

     SEC. 104. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

       (a) Program Income.--
       (1) Authority to retain.--A recipient may retain any 
     program income that is realized from any grant amounts under 
     this Act if--
       (A) such income was realized after the initial disbursement 
     of the grant amounts received by the recipient; and
       (B) the recipient has agreed that it will utilize the 
     program income for affordable housing activities in 
     accordance with the provisions of this Act.
       (2) Prohibition of reduction of grant.--The Secretary may 
     not reduce the grant amount for any Indian tribe based solely 
     on--
       (A) whether the recipient for the tribe retains program 
     income under paragraph (1);
       (B) the amount of any such program income retained; or
       (C) whether the recipient retains reserve amounts described 
     in section 210.
       (3) Exclusion of amounts.--The Secretary may, by 
     regulation, exclude from consideration as program income any 
     amounts determined to be so small that compliance with the 
     requirements of this subsection would create an unreasonable 
     administrative burden on the recipient.
       (b) Labor Standards.--
       (1) In general.--Any contract or agreement for assistance, 
     sale, or lease pursuant to this Act shall contain a provision 
     requiring that not less than the wages prevailing in the 
     locality, as determined or adopted (subsequent to a 
     determination under applicable State, tribal, or local law) 
     by the Secretary, shall be paid to all architects, technical 
     engineers, draftsmen, and technicians employed in the 
     development, and all maintenance laborers and mechanics 
     employed in the operation, of the affordable housing project 
     involved; and shall also contain a provision that not less 
     than the wages prevailing in the locality, as predetermined 
     by the Secretary of Labor pursuant to the Davis-Bacon Act (40 
     U.S.C. 276a-276a-5), shall be paid to all laborers and 
     mechanics employed in the development of the affordable 
     housing involved, and the Secretary shall require 
     certification as to compliance with the provisions of this 
     paragraph before making any payment under such contract or 
     agreement.
       (2) Exceptions.--Paragraph (1) and the provisions relating 
     to wages (pursuant to paragraph (1)) in any contract or 
     agreement for assistance, sale, or lease pursuant to this

[[Page H11607]]

     Act, shall not apply to any individual who receives no 
     compensation or is paid expenses, reasonable benefits, or a 
     nominal fee to perform the services for which the individual 
     volunteered and who is not otherwise employed at any time in 
     the construction work.

     SEC. 105. ENVIRONMENTAL REVIEW.

       (a) In General.--
       (1) Release of funds.--In order to ensure that the policies 
     of the National Environmental Policy Act of 1969 and other 
     provisions of law that further the purposes of such Act (as 
     specified in regulations issued by the Secretary) are most 
     effectively implemented in connection with the expenditure of 
     grant amounts provided under this Act, and to ensure to the 
     public undiminished protection of the environment, the 
     Secretary, in lieu of the environmental protection procedures 
     otherwise applicable, may by regulation provide for the 
     release of amounts for particular projects to tribes which 
     assume all of the responsibilities for environmental review, 
     decisionmaking, and action pursuant to such Act, and such 
     other provisions of law as the regulations of the Secretary 
     specify, that would apply to the Secretary were the Secretary 
     to undertake such projects as Federal projects.
       (2) Regulations.--
       (A) In general.--The Secretary shall issue regulations to 
     carry out this section only after consultation with the 
     Council on Environmental Quality.
       (B) Contents.--The regulations issued under this paragraph 
     shall--
       (i) provide for the monitoring of the environmental reviews 
     performed under this section;
       (ii) in the discretion of the Secretary, facilitate 
     training for the performance of such reviews; and
       (iii) provide for the suspension or termination of the 
     assumption of responsibilities under this section.
       (3) Effect on assumed responsibility.--The duty of the 
     Secretary under paragraph (2)(B) shall not be construed to 
     limit or reduce any responsibility assumed by a recipient of 
     grant amounts with respect to any particular release of 
     funds.
       (b) Procedure.--The Secretary shall approve the release of 
     funds subject to the procedures authorized by this section 
     only if, not less than 15 days prior to such approval and 
     prior to any commitment of funds to such projects, the tribe 
     has submitted to the Secretary a request for such release 
     accompanied by a certification that meets the requirements of 
     subsection (c). The approval of the Secretary of any such 
     certification shall be deemed to satisfy the responsibilities 
     of the Secretary under the National Environmental Policy Act 
     of 1969 and such other provisions of law as the regulations 
     of the Secretary specify insofar as those responsibilities 
     relate to the releases of funds for projects to be carried 
     out pursuant thereto that are covered by such certification.
       (c) Certification.--A certification under the procedures 
     authorized by this section shall--
       (1) be in a form acceptable to the Secretary;
       (2) be executed by the chief executive officer or other 
     officer of the tribe under this Act qualified under 
     regulations of the Secretary;
       (3) specify that the tribe has fully carried out its 
     responsibilities as described under subsection (a); and
       (4) specify that the certifying officer--
       (A) consents to assume the status of a responsible Federal 
     official under the National Environmental Policy Act of 1969 
     and each provision of law specified in regulations issued by 
     the Secretary insofar as the provisions of such Act or such 
     other provisions of law apply pursuant to subsection (a); and
       (B) is authorized and consents on behalf of the tribe and 
     such officer to accept the jurisdiction of the Federal courts 
     for the purpose of enforcement of the responsibilities of the 
     certifying officer as such an official.

     SEC. 106. REGULATIONS.

       (a) Transition Requirements.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall, by notice 
     issued in the Federal Register, establish any requirements 
     necessary to provide for the transition (upon the 
     effectiveness of this Act and the amendments made by this 
     Act) from the provision of assistance for Indian tribes and 
     Indian housing authorities under the United States Housing 
     Act of 1937 and other related provisions of law to the 
     provision of assistance in accordance with this Act and the 
     amendments made by this Act.
       (2) Public comments; general notice of proposed 
     rulemaking.--The notice issued under paragraph (1) shall--
       (A) invite public comments regarding such transition 
     requirements and final regulations to carry out this Act; and
       (B) include a general notice of proposed rulemaking (for 
     purposes of section 564(a) of title 5, United States Code) of 
     the final regulations under subsection (b).
       (b) Final Regulations.--
       (1) Timing.--The Secretary shall issue final regulations 
     necessary to carry out this Act not later than September 1, 
     1997, and such regulations shall take effect not later than 
     the effective date of this Act.
       (2) Negotiated rulemaking procedure.--
       (A) In general.--Notwithstanding sections 563(a) and 565(a) 
     of title 5, United States Code, all regulations required 
     under this Act shall be issued according to a negotiated 
     rulemaking procedure under subchapter III of chapter 5 of 
     title 5, United States Code.
       (B) Committee.--
       (i) In general.--The Secretary shall establish a negotiated 
     rulemaking committee, in accordance with the procedures under 
     that subchapter, for the development of proposed regulations 
     under subparagraph (A).
       (ii) Adaptation.--In establishing the negotiated rulemaking 
     committee, the Secretary shall--

       (I) adapt the procedures under the subchapter described in 
     clause (i) to the unique government-to-government 
     relationship between the Indian tribes and the United States, 
     and shall ensure that the membership of the committee include 
     only representatives of the Federal Government and of 
     geographically diverse small, medium, and large Indian 
     tribes; and
       (II) shall not preclude the participation of tribally 
     designated housing entities should tribes elect to be 
     represented by such entities.

       (c) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 107. EFFECTIVE DATE.

       Except as otherwise expressly provided in this Act, this 
     Act and the amendments made by this Act shall take effect on 
     October 1, 1997.

     SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for grants under 
     this title such sums as may be necessary for each of fiscal 
     years 1998, 1999, 2000, and 2001. This section shall take 
     effect on the date of the enactment of this Act.
                TITLE II--AFFORDABLE HOUSING ACTIVITIES

     SEC. 201. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.

       (a) Primary Objective.--The national objectives of this Act 
     are--
       (1) to assist and promote affordable housing activities to 
     develop, maintain, and operate affordable housing in safe and 
     healthy environments on Indian reservations and in other 
     Indian areas for occupancy by low-income Indian families;
       (2) to ensure better access to private mortgage markets for 
     Indian tribes and their members and to promote self-
     sufficiency of Indian tribes and their members;
       (3) to coordinate activities to provide housing for Indian 
     tribes and their members with Federal, State, and local 
     activities to further economic and community development for 
     Indian tribes and their members;
       (4) to plan for and integrate infrastructure resources for 
     Indian tribes with housing development for tribes; and
       (5) to promote the development of private capital markets 
     in Indian country and to allow such markets to operate and 
     grow, thereby benefiting Indian communities.
       (b) Eligible Families.--
       (1) In general.--Except as provided under paragraph (2), 
     assistance under eligible housing activities under this Act 
     shall be limited to low-income Indian families on Indian 
     reservations and other Indian areas.
       (2) Exception to low-income requirement.--A recipient may 
     provide assistance for homeownership activities under section 
     202(2), model activities under section 202(6), or loan 
     guarantee activities under title VI to Indian families who 
     are not low-income families, to the extent that the Secretary 
     approves the activities pursuant to such section or title 
     because there is a need for housing for such families that 
     cannot reasonably be met without such assistance. The 
     Secretary shall establish limits on the amount of assistance 
     that may be provided under this Act for activities for 
     families who are not low-income families.
       (3) Non-indian families.--Notwithstanding paragraph (1), a 
     recipient may provide housing or housing assistance provided 
     through affordable housing activities assisted with grant 
     amounts under this Act for a non-Indian family on an Indian 
     reservation or other Indian area if the recipient determines 
     that the presence of the family on the Indian reservation or 
     other Indian area is essential to the well-being of Indian 
     families and the need for housing for the family cannot 
     reasonably be met without such assistance.
       (4) Preference for tribal members and other indian 
     families.--The Indian housing plan for an Indian tribe may 
     require preference, for housing or housing assistance 
     provided through affordable housing activities assisted with 
     grant amounts provided under this Act on behalf of such 
     tribe, to be given (to the extent practicable) to Indian 
     families who are members of such tribe, or to other Indian 
     families. In any case in which the applicable Indian housing 
     plan for an Indian tribe provides for preference under this 
     paragraph, the recipient for the tribe shall ensure that 
     housing activities that are assisted with grant amounts under 
     this Act for such tribe are subject to such preference.
       (5) Exemption.--Title VI of the Civil Rights Act of 1964 
     and title VIII of the Civil Rights Act of 1968 shall not 
     apply to actions by Indian tribes under this subsection.

     SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

       Affordable housing activities under this title are 
     activities, in accordance with the requirements of this 
     title, to develop or to support affordable housing for rental 
     or homeownership, or to provide housing services with respect 
     to affordable housing, through the following activities:

[[Page H11608]]

       (1) Indian housing assistance.--The provision of 
     modernization or operating assistance for housing previously 
     developed or operated pursuant to a contract between the 
     Secretary and an Indian housing authority.
       (2) Development.--The acquisition, new construction, 
     reconstruction, or moderate or substantial rehabilitation of 
     affordable housing, which may include real property 
     acquisition, site improvement, development of utilities and 
     utility services, conversion, demolition, financing, 
     administration and planning, and other related activities.
       (3) Housing services.--The provision of housing-related 
     services for affordable housing, such as housing counseling 
     in connection with rental or homeownership assistance, 
     establishment and support of resident organizations and 
     resident management corporations, energy auditing, activities 
     related to the provision of self-sufficiency and other 
     services, and other services related to assisting owners, 
     tenants, contractors, and other entities, participating or 
     seeking to participate in other housing activities assisted 
     pursuant to this section.
       (4) Housing management services.--The provision of 
     management services for affordable housing, including 
     preparation of work specifications, loan processing, 
     inspections, tenant selection, management of tenant-based 
     rental assistance, and management of affordable housing 
     projects.
       (5) Crime prevention and safety activities.--The provision 
     of safety, security, and law enforcement measures and 
     activities appropriate to protect residents of affordable 
     housing from crime.
       (6) Model activities.--Housing activities under model 
     programs that are designed to carry out the purposes of this 
     Act and are specifically approved by the Secretary as 
     appropriate for such purpose.

     SEC. 203. PROGRAM REQUIREMENTS.

       (a) Rents.--
       (1) Establishment.--Subject to paragraph (2), each 
     recipient shall develop written policies governing rents and 
     homebuyer payments charged for dwelling units assisted under 
     this Act, including the methods by which such rents and 
     homebuyer payments are determined.
       (2) Maximum rent.--In the case of any low-income family 
     residing in a dwelling unit assisted with grant amounts under 
     this Act, the monthly rent or homebuyer payment (as 
     applicable) for such dwelling unit may not exceed 30 percent 
     of the monthly adjusted income of such family.
       (b) Maintenance and Efficient Operation.--Each recipient 
     who owns or operates (or is responsible for funding any 
     entity that owns or operates) housing developed or operated 
     pursuant to a contract between the Secretary and an Indian 
     housing authority pursuant to the United States Housing Act 
     of 1937 shall, using amounts of any grants received under 
     this Act, reserve and use for operating assistance under 
     section 202(1) such amounts as may be necessary to provide 
     for the continued maintenance and efficient operation of such 
     housing. This subsection may not be construed to prevent any 
     recipient (or entity funded by a recipient) from demolishing 
     or disposing of Indian housing referred to in this 
     subsection, pursuant to regulations established by the 
     Secretary.
       (c) Insurance Coverage.--Each recipient shall maintain 
     adequate insurance coverage for housing units that are owned 
     or operated or assisted with grant amounts provided under 
     this Act.
       (d) Eligibility for Admission.--Each recipient shall 
     develop written policies governing the eligibility, 
     admission, and occupancy of families for housing assisted 
     with grant amounts provided under this Act.
       (e) Management and Maintenance.--Each recipient shall 
     develop policies governing the management and maintenance of 
     housing assisted with grant amounts under this Act.

     SEC. 204. TYPES OF INVESTMENTS.

       (a) In General.--Subject to section 203 and the Indian 
     housing plan for an Indian tribe, the recipient for that 
     tribe shall have--
       (1) the discretion to use grant amounts for affordable 
     housing activities through equity investments, interest-
     bearing loans or advances, noninterest-bearing loans or 
     advances, interest subsidies, leveraging of private 
     investments, or any other form of assistance that the 
     Secretary has determined to be consistent with the purposes 
     of this Act; and
       (2) the right to establish the terms of assistance.
       (b) Investments.--A recipient may invest grant amounts for 
     the purposes of carrying out affordable housing activities in 
     investment securities and other obligations as approved by 
     the Secretary.

     SEC. 205. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

       (a) In General.--Housing shall qualify as affordable 
     housing for purposes of this Act only if--
       (1) each dwelling unit in the housing--
       (A) in the case of rental housing, is made available for 
     occupancy only by a family that is a low-income family at the 
     time of their initial occupancy of such unit; and
       (B) in the case of housing for homeownership, is made 
     available for purchase only by a family that is a low-income 
     family at the time of purchase; and
       (2) except for housing assisted under section 202 of the 
     United States Housing Act of 1937 (as in effect before the 
     date of the effectiveness of this Act), each dwelling unit in 
     the housing will remain affordable, according to binding 
     commitments satisfactory to the Secretary, for the remaining 
     useful life of the property (as determined by the Secretary) 
     without regard to the term of the mortgage or to transfer of 
     ownership, or for such other period that the Secretary 
     determines is the longest feasible period of time consistent 
     with sound economics and the purposes of this Act, except 
     upon a foreclosure by a lender (or upon other transfer in 
     lieu of foreclosure) if such action--
       (A) recognizes any contractual or legal rights of public 
     agencies, nonprofit sponsors, or others to take actions that 
     would avoid termination of low-income affordability in the 
     case of foreclosure or transfer in lieu of foreclosure; and
       (B) is not for the purpose of avoiding low-income 
     affordability restrictions, as determined by the Secretary.
       (b) Exception.--Notwithstanding subsection (a), housing 
     assisted pursuant to section 201(b)(2) shall be considered 
     affordable housing for purposes of this Act.

     SEC. 206. CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING 
                   REQUIREMENTS.

       With respect to housing assisted with grant amounts 
     provided under this Act, the requirements of section 102(d) 
     of the Department of Housing and Urban Development Reform Act 
     of 1989 shall be considered to be satisfied upon 
     certification by the Secretary that the combination of 
     Federal assistance provided to any housing project is not any 
     more than is necessary to provide affordable housing.

     SEC. 207. LEASE REQUIREMENTS AND TENANT SELECTION.

       (a) Leases.--Except to the extent otherwise provided by or 
     inconsistent with tribal law, in renting dwelling units in 
     affordable housing assisted with grant amounts provided under 
     this Act, the owner or manager of the housing shall utilize 
     leases that--
       (1) do not contain unreasonable terms and conditions;
       (2) require the owner or manager to maintain the housing in 
     compliance with applicable housing codes and quality 
     standards;
       (3) require the owner or manager to give adequate written 
     notice of termination of the lease, which shall be the period 
     of time required under State, tribal, or local law;
       (4) specify that, with respect to any notice of eviction or 
     termination, notwithstanding any State, tribal, or local law, 
     a resident shall be informed of the opportunity, prior to any 
     hearing or trial, to examine any relevant documents, records, 
     or regulations directly related to the eviction or 
     termination;
       (5) require that the owner or manager may not terminate the 
     tenancy, during the term of the lease, except for serious or 
     repeated violation of the terms or conditions of the lease, 
     violation of applicable Federal, State, tribal, or local law, 
     or for other good cause; and
       (6) provide that the owner or manager may terminate the 
     tenancy of a resident for any activity, engaged in by the 
     resident, any member of the household of the resident, or any 
     guest or other person under the control of the resident, 
     that--
       (A) threatens the health or safety of, or right to peaceful 
     enjoyment of the premises by, other residents or employees of 
     the owner or manager of the housing;
       (B) threatens the health or safety of, or right to peaceful 
     enjoyment of their premises by, persons residing in the 
     immediate vicinity of the premises; or
       (C) is criminal activity (including drug-related criminal 
     activity) on or off the premises.
       (b) Tenant Selection.--The owner or manager of affordable 
     rental housing assisted with grant amounts provided under 
     this Act shall adopt and utilize written tenant selection 
     policies and criteria that--
       (1) are consistent with the purpose of providing housing 
     for low-income families;
       (2) are reasonably related to program eligibility and the 
     ability of the applicant to perform the obligations of the 
     lease; and
       (3) provide for--
       (A) the selection of tenants from a written waiting list in 
     accordance with the policies and goals set forth in the 
     Indian housing plan for the tribe that is the grant 
     beneficiary of such grant amounts; and
       (B) the prompt notification in writing of any rejected 
     applicant of the grounds for any rejection.

     SEC. 208. AVAILABILITY OF RECORDS.

       (a) Provision of Information.--Notwithstanding any other 
     provision of law, except as provided in paragraph (2), the 
     National Crime Information Center, police departments, and 
     other law enforcement agencies shall, upon request, provide 
     information to Indian tribes or tribally designated housing 
     entities regarding the criminal conviction records of adult 
     applicants for, or tenants of, housing assisted with grant 
     amounts provided to such tribe or entity under this Act for 
     purposes of applicant screening, lease enforcement, and 
     eviction.
       (b) Exception.--A law enforcement agency described in 
     paragraph (1) shall provide information under this paragraph 
     relating to any criminal conviction of a juvenile only to the 
     extent that the release of such information is authorized 
     under the law of the applicable State, tribe, or locality.
       (c) Confidentiality.--An Indian tribe or tribally 
     designated housing entity receiving information under this 
     section may use such information only for the purposes 
     provided in this section and such information may not be 
     disclosed to any person who is not an officer, employee, or 
     authorized representative

[[Page H11609]]

     of the tribe or entity or the owner of housing assisted under 
     this Act, and who has a job-related need to have access to 
     the information for the purposes under this section. For 
     judicial eviction proceedings, disclosures may be made to the 
     extent necessary. The Secretary shall, by regulation, 
     establish procedures necessary to ensure that information 
     provided under this section to any tribe or entity is used, 
     and confidentiality is maintained, as required under this 
     section.

     SEC. 209. REPAYMENT.

       If a recipient uses grant amounts to provide affordable 
     housing under activities under this title and, at any time 
     during the useful life of the housing the housing does not 
     comply with the requirement under section 205(2), the 
     Secretary shall reduce future grant payments on behalf of the 
     grant beneficiary by an amount equal to the grant amounts 
     used for such housing (under the authority under section 
     401(a)(2)) or require repayment to the Secretary of an amount 
     equal to such grant amounts.

     SEC. 210. CONTINUED USE OF AMOUNTS FOR AFFORDABLE HOUSING.

       Any funds for programs for low-income housing under the 
     United States Housing Act of 1937 that, on the date of the 
     applicability of this Act to an Indian tribe, are owned by, 
     or in the possession or under the control of, the Indian 
     housing authority for the tribe, including all reserves not 
     otherwise obligated, shall be considered assistance under 
     this Act and subject to the provisions of this Act relating 
     to use of such assistance.
                 TITLE III--ALLOCATION OF GRANT AMOUNTS

     SEC. 301. ANNUAL ALLOCATION.

       For each fiscal year, the Secretary shall allocate any 
     amounts made available for assistance under this Act for the 
     fiscal year, in accordance with the formula established 
     pursuant to section 302, among Indian tribes that comply with 
     the requirements under this Act for a grant under this Act.

     SEC. 302. ALLOCATION FORMULA.

       (a) Establishment.--The Secretary shall, by regulations 
     issued not later than the expiration of the 12-month period 
     beginning on the date of the enactment of this Act, in the 
     manner provided under section 106, establish a formula to 
     provide for allocating amounts available for a fiscal year 
     for block grants under this Act among Indian tribes in 
     accordance with the requirements of this section.
       (b) Factors for Determination of Need.--The formula shall 
     be based on factors that reflect the need of the Indian 
     tribes and the Indian areas of the tribes for assistance for 
     affordable housing activities, including the following 
     factors:
       (1) The number of low-income housing dwelling units owned 
     or operated at the time pursuant to a contract between an 
     Indian housing authority for the tribe and the Secretary.
       (2) The extent of poverty and economic distress and the 
     number of Indian families within Indian areas of the tribe.
       (3) Other objectively measurable conditions as the 
     Secretary and the Indian tribes may specify.
       (c) Other Factors for Consideration.--In establishing the 
     formula, the Secretary shall consider--
       (1) the relative administrative capacities and other 
     challenges faced by the recipient, including, but not limited 
     to geographic distribution within the Indian area and 
     technical capacity; and
       (2) the extent to which terminations of assistance under 
     title V will affect funding available to State recognized 
     tribes.
       (d) Funding for Public Housing Operation and 
     Modernization.--
       (1) Full funding.--The formula shall provide that, if, in 
     any fiscal year, the total amount made available for 
     assistance under this Act is equal to or greater than the 
     total amount made available for fiscal year 1996 for 
     assistance for the operation and modernization of public 
     housing developed or operated pursuant to a contract between 
     the Secretary and an Indian housing authority pursuant to the 
     United States Housing Act of 1937, the amount provided for 
     such fiscal year for each Indian tribe for which such 
     operating or modernization assistance was provided for fiscal 
     year 1996 shall not be less than the total amount of such 
     operating and modernization assistance provided for fiscal 
     year 1996 for such tribe.
       (2) Partial funding.--The formula shall provide that, if, 
     in any fiscal year, the total amount made available for 
     assistance under this Act is less than the total amount made 
     available for fiscal year 1996 for assistance for the 
     operation and modernization of public housing developed or 
     operated pursuant to a contract between the Secretary and an 
     Indian housing authority pursuant to the United States 
     Housing Act of 1937, the amount provided for such fiscal year 
     for each Indian tribe for which such operating or 
     modernization assistance was provided for fiscal year 1996 
     shall not be less than the amount that bears the same ratio 
     to the total amount available for assistance under this Act 
     for such fiscal year that the amount of operating and 
     modernization assistance provided for the tribe for fiscal 
     year 1996 bears to the total amount made available for fiscal 
     year 1996 for assistance for the operation and modernization 
     of such public housing.
       (e) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.
               TITLE IV--COMPLIANCE, AUDITS, AND REPORTS

     SEC. 401. REMEDIES FOR NONCOMPLIANCE.

       (a) Actions by Secretary Affecting Grant Amounts.--Except 
     as provided in subsection (b), if the Secretary finds after 
     reasonable notice and opportunity for hearing that a 
     recipient of assistance under this Act has failed to comply 
     substantially with any provision of this Act, the Secretary 
     shall--
       (1) terminate payments under this Act to the recipient;
       (2) reduce payments under this Act to the recipient by an 
     amount equal to the amount of such payments that were not 
     expended in accordance with this Act;
       (3) limit the availability of payments under this Act to 
     programs, projects, or activities not affected by such 
     failure to comply; or
       (4) in the case of noncompliance described in section 
     402(b), provide a replacement tribally designated housing 
     entity for the recipient, under section 402.

     If the Secretary takes an action under paragraph (1), (2), or 
     (3), the Secretary shall continue such action until the 
     Secretary determines that the failure to comply has ceased.
       (b) Noncompliance Because of Technical Incapacity.--If the 
     Secretary makes a finding under subsection (a), but 
     determines that the failure to comply substantially with the 
     provisions of this Act--
       (1) is not a pattern or practice of activities constituting 
     willful noncompliance, and
       (2) is a result of the limited capability or capacity of 
     the recipient,

     the Secretary may provide technical assistance for the 
     recipient (directly or indirectly) that is designed to 
     increase the capability and capacity of the recipient to 
     administer assistance provided under this Act in compliance 
     with the requirements under this Act.
       (c) Referral for Civil Action.--
       (1) Authority.--In lieu of, or in addition to, any action 
     authorized by subsection (a), if the Secretary has reason to 
     believe that a recipient has failed to comply substantially 
     with any provision of this Act, the Secretary may refer the 
     matter to the Attorney General of the United States with a 
     recommendation that an appropriate civil action be 
     instituted.
       (2) Civil action.--Upon such a referral, the Attorney 
     General may bring a civil action in any United States 
     district court having venue thereof for such relief as may be 
     appropriate, including an action to recover the amount of the 
     assistance furnished under this Act that was not expended in 
     accordance with it, or for mandatory or injunctive relief.
       (d) Review.--
       (1) In general.--Any recipient who receives notice under 
     subsection (a) of the termination, reduction, or limitation 
     of payments under this Act--
       (A) may, not later than 60 days after receiving such 
     notice, file with the United States Court of Appeals for the 
     circuit in which such State is located, or in the United 
     States Court of Appeals for the District of Columbia, a 
     petition for review of the action of the Secretary; and
       (B) upon the filing of any petition under subparagraph (A), 
     shall forthwith transmit copies of the petition to the 
     Secretary and the Attorney General of the United States, who 
     shall represent the Secretary in the litigation.
       (2) Procedure.--The Secretary shall file in the court a 
     record of the proceeding on which the Secretary based the 
     action, as provided in section 2112 of title 28, United 
     States Code. No objection to the action of the Secretary 
     shall be considered by the court unless such objection has 
     been urged before the Secretary.
       (3) Disposition.--
       (A) Court proceedings.--The court shall have jurisdiction 
     to affirm or modify the action of the Secretary or to set it 
     aside in whole or in part. The findings of fact by the 
     Secretary, if supported by substantial evidence on the record 
     considered as a whole, shall be conclusive. The court may 
     order additional evidence to be taken by the Secretary, and 
     to be made part of the record.
       (B) Secretary.--The Secretary--
       (i) may modify the findings of fact of the Secretary, or 
     make new findings, by reason of the new evidence so taken and 
     filed with the court; and
       (ii) shall file--

       (I) such modified or new findings, which findings with 
     respect to questions of fact shall be conclusive if supported 
     by substantial evidence on the record considered as a whole; 
     and
       (II) the recommendation of the Secretary, if any, for the 
     modification or setting aside of the original action of the 
     Secretary.

       (4) Finality.--Upon the filing of the record with the 
     court, the jurisdiction of the court shall be exclusive and 
     its judgment shall be final, except that such judgment shall 
     be subject to review by the Supreme Court of the United 
     States upon writ of certiorari or certification as provided 
     in section 1254 of title 28, United State Code.

     SEC. 402. REPLACEMENT OF RECIPIENT.

       (a) Authority.--As a condition of the Secretary making a 
     grant under this Act on behalf of an Indian tribe, the tribe 
     shall agree that, notwithstanding any other provision of law, 
     the Secretary may, only in the circumstances set forth in 
     subsection (b), require that a replacement tribally 
     designated housing entity serve as the recipient for the 
     tribe, in accordance with subsection (c).

[[Page H11610]]

       (b) Conditions of Removal.--The Secretary may require such 
     replacement tribally designated housing entity for a tribe 
     only upon a determination by the Secretary on the record 
     after opportunity for a hearing that the recipient for the 
     tribe has engaged in a pattern or practice of activities that 
     constitutes substantial or willful noncompliance with the 
     requirements under this Act.
       (c) Choice and Term of Replacement.--If the Secretary 
     requires that a replacement tribally designated housing 
     entity serve as the recipient for a tribe (or tribes)--
       (1) the replacement entity shall be an entity mutually 
     agreed upon by the Secretary and the tribe (or tribes) for 
     which the recipient was authorized to act, except that if no 
     such entity is agreed upon before the expiration of the 60-
     day period beginning upon the date that the Secretary makes 
     the determination under subsection (b), the Secretary shall 
     act as the replacement entity until agreement is reached upon 
     a replacement entity; and
       (2) the replacement entity (or the Secretary, as provided 
     in paragraph (1)) shall act as the tribally designated 
     housing entity for the tribe (or tribes) for a period that 
     expires upon--
       (A) a date certain, which shall be specified by the 
     Secretary upon making the determination under subsection (b); 
     or
       (B) the occurrence of specific conditions, which conditions 
     shall be specified in written notice provided by the 
     Secretary to the tribe upon making the determination under 
     subsection (b).

     SEC. 403. MONITORING OF COMPLIANCE.

       (a) Enforceable Agreements.--Each recipient, through 
     binding contractual agreements with owners and otherwise, 
     shall ensure long-term compliance with the provisions of this 
     Act. Such measures shall provide for (1) enforcement of the 
     provisions of this Act by the grant beneficiary or by 
     recipients and other intended beneficiaries, and (2) remedies 
     for the breach of such provisions.
       (b) Periodic Monitoring.--Not less frequently than 
     annually, each recipient shall review the activities 
     conducted and housing assisted under this Act to assess 
     compliance with the requirements of this Act. Such review 
     shall include onsite inspection of housing to determine 
     compliance with applicable requirements. The results of each 
     review shall be included in the performance report of the 
     recipient submitted to the Secretary under section 404 and 
     made available to the public.
       (c) Performance Measures.--The Secretary shall establish 
     such performance measures as may be necessary to assess 
     compliance with the requirements of this Act.

     SEC. 404. PERFORMANCE REPORTS.

       (a) Requirement.--For each fiscal year, each recipient 
     shall--
       (1) review the progress it has made during such fiscal year 
     in carrying out the Indian housing plan (or plans) for the 
     Indian tribes for which it administers grant amounts; and
       (2) submit a report to the Secretary (in a form acceptable 
     to the Secretary) describing the conclusions of the review.
       (b) Content.--Each report under this section for a fiscal 
     year shall--
       (1) describe the use of grant amounts provided to the 
     recipient for such fiscal year;
       (2) assess the relationship of such use to the goals 
     identified in the Indian housing plan of the grant 
     beneficiary;
       (3) indicate the programmatic accomplishments of the 
     recipient; and
       (4) describe the manner in which the recipient would change 
     its programs as a result of its experiences.
       (c) Submission.--The Secretary shall establish dates for 
     submission of reports under this section, and review such 
     reports and make such recommendations as the Secretary 
     considers appropriate to carry out the purposes of this Act.
       (d) Public Availability.--A recipient preparing a report 
     under this section shall make the report publicly available 
     to the citizens in the jurisdiction of the recipient in 
     sufficient time to permit such citizens to comment on such 
     report prior to its submission to the Secretary, and in such 
     manner and at such times as the recipient may determine. The 
     report shall include a summary of any comments received by 
     the grant beneficiary or recipient from citizens in its 
     jurisdiction regarding its program.

     SEC. 405. REVIEW AND AUDIT BY SECRETARY.

       (a) Annual Review.--The Secretary shall, not less than on 
     an annual basis, make such reviews and audits as may be 
     necessary or appropriate to determine--
       (1) whether the recipient has carried out its eligible 
     activities in a timely manner, has carried out its eligible 
     activities and certifications in accordance with the 
     requirements and the primary objectives of this Act and with 
     other applicable laws, and has a continuing capacity to carry 
     out those activities in a timely manner;
       (2) whether the recipient has complied with the Indian 
     housing plan of the grant beneficiary; and
       (3) whether the performance reports under section 404 of 
     the recipient are accurate.

     Reviews under this section shall include, insofar as 
     practicable, onsite visits by employees of the Department of 
     Housing and Urban Development.
       (b) Report by Secretary.--The Secretary shall give a 
     recipient not less than 30 days to review and comment on a 
     report under this subsection. After taking into consideration 
     the comments of the recipient, the Secretary may revise the 
     report and shall make the comments of the recipient and the 
     report, with any revisions, readily available to the public 
     not later than 30 days after receipt of the comments of the 
     recipient.
       (c) Effect of Reviews.--The Secretary may make appropriate 
     adjustments in the amount of the annual grants under this Act 
     in accordance with the findings of the Secretary pursuant to 
     reviews and audits under this section. The Secretary may 
     adjust, reduce, or withdraw grant amounts, or take other 
     action as appropriate in accordance with the reviews and 
     audits of the Secretary under this section, except that grant 
     amounts already expended on affordable housing activities may 
     not be recaptured or deducted from future assistance provided 
     on behalf of an Indian tribe.

     SEC. 406. GAO AUDITS.

       To the extent that the financial transactions of Indian 
     tribes and recipients of grant amounts under this Act relate 
     to amounts provided under this Act, such transactions may be 
     audited by the Comptroller General of the United States under 
     such rules and regulations as may be prescribed by the 
     Comptroller General. The representatives of the General 
     Accounting Office shall have access to all books, accounts, 
     records, reports, files, and other papers, things, or 
     property belonging to or in use by such tribes and recipients 
     pertaining to such financial transactions and necessary to 
     facilitate the audit.

     SEC. 407. REPORTS TO CONGRESS.

       (a) In General.--Not later than 90 days after the 
     conclusion of each fiscal year in which assistance under this 
     Act is made available, the Secretary shall submit to the 
     Congress a report that contains--
       (1) a description of the progress made in accomplishing the 
     objectives of this Act;
       (2) a summary of the use of funds available under this Act 
     during the preceding fiscal year; and
       (3) a description of the aggregate outstanding loan 
     guarantees under title VI.
       (b) Related Reports.--The Secretary may require recipients 
     of grant amounts under this Act to submit to the Secretary 
     such reports and other information as may be necessary in 
     order for the Secretary to make the report required by 
     subsection (a).
TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER INCORPORATED 
                                PROGRAMS

     SEC. 501. REPEAL OF PROVISIONS RELATING TO INDIAN HOUSING 
                   ASSISTANCE UNDER UNITED STATES HOUSING ACT OF 
                   1937.

       (a) Repeal of Title II.--Title II of the United States 
     Housing Act of 1937 (42 U.S.C 1437aa et seq.) is hereby 
     repealed.
       (b) Amendments to Title I.--Title I of the United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) in section 3(b)--
       (A)in paragraph (5)--
       (i) in subparagraph (F) by inserting ``and'' after the 
     semicolon at the end;
       (ii) by striking subparagraph (G); and
       (iii) by redesignating subparagraph (H) as subparagraph 
     (G);
       (B) in paragraph (6), by striking the last sentence;
       (C) in paragraph (7)--
       (i) by inserting ``and'' before ``the Trust''; and
       (ii) by striking ``, and Indian tribes''; and
       (D) by striking paragraphs (9), (10), (11), and (12);
       (2) in section 5--
       (A) in subsection (j)(1), by striking ``(other than for 
     Indian families)''; and
       (B) by striking subsection (l);
       (3) in section 6(b)(1), by striking ``and public housing 
     for Indians and Alaska Natives in accordance with the Indian 
     Housing Act of 1988'';
       (4) in subsection 7, by striking subsection (l);
       (5) in section 9(a)(1)(A), in the second sentence--
       (A) by inserting ``and'' after the comma at the end of 
     clause (i); and
       (B) by striking ``, and (iii)'' and all that follows 
     through ``project is occupied'';
       (6) in section 14--
       (A) in the section heading, by striking ``and indian'';
       (B) in subsection (e)(1)(E)--
       (i) in the matter preceding clause (i), by striking ``(or 
     Indian tribal official, if appropriate)'';
       (ii) in clause (i)--

       (I) by striking ``(or Indian tribal officials)''; and
       (II) by striking ``(or tenants of the Indian housing 
     projects)''; and

       (iii) in clause (ii), by striking ``(or Indian tribe)'';
       (7) in section 16--
       (A) in subsection (d)--
       (i) by striking the paragraph designation for paragraph 
     (1); and
       (ii) by striking paragraph (2); and
       (B) in subsection (e), by striking paragraph (3);
       (8) in section 23(o), by striking paragraph (2);
       (9) in section 24(h)(3), by striking ``, except that it 
     does not include any Indian housing authority'';
       (10) in section 25(m)(4), by striking ``, except that it 
     does not include Indian housing authorities''; and
       (11) in section 26, in subsections (a)(1) and (b), by 
     striking ``(including an Indian housing authority)'' each 
     place it appears.

[[Page H11611]]

       (c) Amendments to Title III.--Title III of the United 
     States Housing Act of 1937 (42 U.S.C. 1437aaa et seq.) is 
     amended--
       (1) by striking the heading for the title and inserting the 
     following:
         ``TITLE III--HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP'';
       (2) in section 306--
       (A) in paragraph (1)(A), by striking ``(including an Indian 
     housing authority)''; and
       (B) in paragraph (2)(A), by striking ``or Indian''; and
       (3) in section 307, by striking ``and title II''.
       (d) Other Related Provisions.--
       (1) Indian housing child development.--Section 519 of the 
     Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 
     1701z-6 note) is hereby repealed.
       (2) Public housing youth sports.--Section 520 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     11903a) is amended--
       (A) in subsection (b)--
       (i) in paragraph (5), by inserting ``and'' after the 
     semicolon at the end;
       (ii) by striking paragraphs (6) and (7); and
       (iii) by redesignating paragraph (8) as paragraph (6);
       (B) in subsection (e)(2), by striking ``Indian tribes,'';
       (C) in subsection (i)--
       (i) by striking paragraph (1); and
       (ii) by redesignating paragraphs (2) through (7) as 
     paragraphs (1) through (6), respectively; and
       (D) in subsection (l)(5)(B), by striking ``units of general 
     local government, and Indian housing authorities'' and 
     inserting ``and Indian housing authorities''.
       (3) Allocation of funds.--Section 213(d)(1)(B)(ii) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     1439) is amended by striking ``and Indian''.

     SEC. 502. TERMINATION OF INDIAN HOUSING ASSISTANCE UNDER 
                   UNITED STATES HOUSING ACT OF 1937.

       (a) Termination of Assistance.--After September 30, 1997, 
     financial assistance may not be provided under the United 
     States Housing Act of 1937 or pursuant to any commitment 
     entered into under such Act, for Indian housing developed or 
     operated pursuant to a contract between the Secretary and an 
     Indian housing authority, unless such assistance is provided 
     from amounts made available for fiscal year 1997 and pursuant 
     to a commitment entered into before September 30, 1997.
       (b) Termination of Restrictions on Use of Indian Housing.--
     After September 30, 1997, any housing developed or operated 
     pursuant to a contract between the Secretary and an Indian 
     housing authority pursuant to the United States Housing Act 
     of 1937 shall not be subject to any provision of such Act or 
     any annual contributions contract or other agreement pursuant 
     to such Act, but shall be considered and maintained as 
     affordable housing for purposes of this Act.

     SEC. 503. TERMINATION OF NEW COMMITMENTS FOR RENTAL 
                   ASSISTANCE.

       After September 30, 1997, financial assistance for rental 
     housing assistance under the United States Housing Act of 
     1937 may not be provided to any Indian housing authority or 
     tribally designated housing entity, unless such assistance is 
     provided pursuant to a contract for such assistance entered 
     into by the Secretary and the Indian housing authority before 
     such date. Any such assistance provided pursuant to such a 
     contract shall be governed by the provisions of the United 
     States Housing Act of 1937 (as in effect before the date of 
     the effectiveness of this Act) and the provisions of such 
     contract.

     SEC. 504. TERMINATION OF YOUTHBUILD PROGRAM ASSISTANCE.

       (a) In General.--Subtitle D of title IV of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et 
     seq.) is amended--
       (1) by redesignating section 460 as section 461; and
       (2) by inserting after section 459 the following new 
     section:

     ``SEC. 460. INELIGIBILITY OF INDIAN TRIBES.

       ``Indian tribes, Indian housing authorities, and other 
     agencies primarily serving Indians or Indian areas shall not 
     be eligible applicants for amounts made available for 
     assistance under this subtitle for fiscal year 1997 and 
     fiscal years thereafter.''.
       (b) Applicability.--The amendments under subsection (a) 
     shall apply with respect to amounts made available for 
     assistance under subtitle D of title II of the Cranston-
     Gonzalez National Affordable Housing Act for fiscal year 1998 
     and fiscal years thereafter.

     SEC. 505. TERMINATION OF HOME PROGRAM ASSISTANCE.

       (a) In General.--Title II of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended--
       (1) in section 217(a)--
       (A) in paragraph (1), by striking ``reserving amounts under 
     paragraph (2) for Indian tribes and after''; and
       (B) by striking paragraph (2); and
       (2) in section 288--
       (A) in subsection (a), by striking ``, Indian tribes,'';
       (B) in subsection (b), by striking ``, Indian tribe,''; and
       (C) in subsection (c)(4), by striking ``, Indian tribe,''.
       (b) Applicability.--The amendments under subsection (a) 
     shall apply with respect to amounts made available for 
     assistance under title II of the Cranston-Gonzalez National 
     Affordable Housing Act for fiscal year 1998 and fiscal years 
     thereafter.

     SEC. 506. TERMINATION OF HOUSING ASSISTANCE FOR THE HOMELESS.

       (a) McKinney Act Programs.--Title IV of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11361 et seq.) is 
     amended--
       (1) in section 411, by striking paragraph (10);
       (2) in section 412, by striking ``, and for Indian 
     tribes,'';
       (3) in section 413--
       (A) in subsection (a)--
       (i) by striking ``, and to Indian tribes,''; and
       (ii) by striking ``, or for Indian tribes'' each place it 
     appears;
       (B) in subsection (c), by striking ``or Indian tribe''; and
       (C) in subsection (d)(3)--
       (i) by striking ``, or Indian tribe'' each place it 
     appears; and
       (ii) by striking ``, or other Indian tribes,'';
       (4) in section 414(a)--
       (A) by striking ``or Indian tribe'' each place it appears; 
     and
       (B) by striking ``, local government,'' each place it 
     appears and inserting ``or local government'';
       (5) in section 415(c)(4), by striking ``Indian tribes,'';
       (6) in section 416(b), by striking ``Indian tribe,'';
       (7) in section 422--
       (A) in by striking ``Indian tribe,''; and
       (B) by striking paragraph (3);
       (8) in section 441--
       (A) by striking subsection (g);
       (B) in subsection (h), by striking ``or Indian housing 
     authority''; and
       (C) in subsection (j)(1), by striking ``, Indian housing 
     authority'';
       (9) in section 462--
       (A) in paragraph (2), by striking ``, Indian tribe,''; and
       (B) by striking paragraph (4); and
       (10) in section 491(e), by striking ``, Indian tribes (as 
     such term is defined in section 102(a) of the Housing and 
     Community Development Act of 1974),''.
       (b) Innovative Homeless Demonstration.--Section 2(b) of the 
     HUD Demonstration Act of 1993 (42 U.S.C. 11301 note) is 
     amended--
       (1) in paragraph (3), by striking `` `unit of general local 
     government', and `Indian tribe' '' and inserting ``and `unit 
     of general local government' ''; and
       (2) in paragraph (4), by striking ``unit of general local 
     government (including units in rural areas), or Indian 
     tribe'' and inserting ``or unit of general local 
     government''.
       (c) Applicability.--The amendments under subsections (a) 
     and (b) shall apply with respect to amounts made available 
     for assistance under title IV of the Stewart B. McKinney 
     Homeless Assistance Act and section 2 of the HUD 
     Demonstration Act of 1993, respectively, for fiscal year 1998 
     and fiscal years thereafter.

     SEC. 507. SAVINGS PROVISION.

       (a) Existing Rights and Duties.--Except as provided in 
     sections 502 and 503, this Act may not be construed to affect 
     the validity of any right, duty, or obligation of the United 
     States or other person arising under or pursuant to any 
     commitment or agreement lawfully entered into before October 
     1, 1997, under the United States Housing Act of 1937, 
     subtitle D of title IV of the Cranston-Gonzalez National 
     Affordable Housing Act, title II of the Cranston-Gonzalez 
     National Affordable Housing Act, title IV of the Stewart B. 
     McKinney Homeless Assistance Act, or section 2 of the HUD 
     Demonstration Act of 1993.
       (b) Obligations Under Repealed Provisions.--Notwithstanding 
     the amendments made by this title, any obligation of the 
     Secretary made under or pursuant to subtitle D of title IV of 
     the Cranston-Gonzalez National Affordable Housing Act, title 
     II of the Cranston-Gonzalez National Affordable Housing Act, 
     title IV of the Stewart B. McKinney Homeless Assistance Act, 
     or section 2 of the HUD Demonstration Act of 1993 shall 
     continue to be governed by the provisions of such Acts (as in 
     effect before the date of the effectiveness of the amendments 
     made by this title).

     SEC. 508. EFFECTIVE DATE.

       Sections 502, 503, and 507 shall take effect on the date of 
     the enactment of this Act.
     TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
                               ACTIVITIES

     SEC. 601. AUTHORITY AND REQUIREMENTS.

       (a) Authority.--To such extent or in such amounts as 
     provided in appropriation Acts, the Secretary may, subject to 
     the limitations of this title (including limitations designed 
     to protect and maintain the viability of rental housing units 
     owned or operated by the recipient that were developed under 
     a contract between the Secretary and an Indian housing 
     authority pursuant to the United States Housing Act of 1937), 
     and upon such terms and conditions as the Secretary may 
     prescribe, guarantee and make commitments to guarantee, the 
     notes or other obligations issued by Indian tribes or 
     tribally designated housing entities with tribal approval, 
     for the purposes of financing affordable housing activities 
     described in section 202.
       (b) Lack of Financing Elsewhere.--A guarantee under this 
     title may be used to assist an Indian tribe or housing entity 
     in obtaining financing only if the Indian tribe or housing 
     entity has made efforts to obtain such financing without the 
     use of such guarantee and cannot complete such financing

[[Page H11612]]

     consistent with the timely execution of the program plans 
     without such guarantee.
       (c) Terms of Loans.--Notes or other obligations guaranteed 
     pursuant to this title shall be in such form and 
     denominations, have such maturities, and be subject to such 
     conditions as may be prescribed by regulations issued by the 
     Secretary. The Secretary may not deny a guarantee under this 
     title 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 causes the 
     guarantee to constitute an unacceptable financial risk.
       (d) Limitation on Outstanding Guarantees.--No guarantee or 
     commitment to guarantee shall be made with respect to any 
     note or other obligation if the total outstanding notes or 
     obligations of the issuer guaranteed under this title 
     (excluding any amount defeased under the contract entered 
     into under section 602(a)(1)) would thereby exceed an amount 
     equal to 5 times the amount of the grant approval for the 
     issuer pursuant to title III.

     SEC. 602. SECURITY AND REPAYMENT.

       (a) Requirements on Issuer.--To assure the repayment of 
     notes or other obligations and charges incurred under this 
     title and as a condition for receiving such guarantees, the 
     Secretary shall require the Indian tribe or housing entity 
     issuing such notes or obligations to--
       (1) enter into a contract, in a form acceptable to the 
     Secretary, for repayment of notes or other obligations 
     guaranteed under this title;
       (2) pledge any grant for which the issuer may become 
     eligible under this Act;
       (3) demonstrate that the extent of such issuance and 
     guarantee under this title is within the financial capacity 
     of the tribe and is not likely to impair the ability to use 
     grant amounts under title I, taking into consideration the 
     requirements under section 203(b); and
       (4) furnish, at the discretion of the Secretary, such other 
     security as may be deemed appropriate by the Secretary in 
     making such guarantees, including increments in local tax 
     receipts generated by the activities assisted under this Act 
     or disposition proceeds from the sale of land or 
     rehabilitated property.
       (b) Repayment From Grant Amounts.--Notwithstanding any 
     other provision of this Act--
       (1) the Secretary may apply grants pledged pursuant to 
     subsection (a)(2) to any repayments due the United States as 
     a result of such guarantees; and
       (2) grants allocated under this Act for an Indian tribe or 
     housing entity (including program income derived therefrom) 
     may be used to pay principal and interest due (including such 
     servicing, underwriting, and other costs as may be specified 
     in regulations issued by the Secretary) on notes or other 
     obligations guaranteed pursuant to this title.
       (c) Full Faith and Credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     made under this title. Any such guarantee made by the 
     Secretary shall be conclusive evidence of the eligibility of 
     the 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.

     SEC. 603. PAYMENT OF INTEREST.

       The Secretary may make, and contract to make, grants, in 
     such amounts as may be approved in appropriations Acts, to or 
     on behalf of an Indian tribe or housing entity issuing notes 
     or other obligations guaranteed under this title, to cover 
     not to exceed 30 percent of the net interest cost (including 
     such servicing, underwriting, or other costs as may be 
     specified in regulations of the Secretary) to the borrowing 
     entity or agency of such obligations. The Secretary may also, 
     to the extent approved in appropriation Acts, assist the 
     issuer of a note or other obligation guaranteed under this 
     title in the payment of all or a portion of the principal and 
     interest amount due under the note or other obligation, if 
     the Secretary determines that the issuer is unable to pay the 
     amount because of circumstances of extreme hardship beyond 
     the control of the issuer.

     SEC. 604. TRAINING AND INFORMATION.

       The Secretary, in cooperation with eligible public 
     entities, shall carry out training and information activities 
     with respect to the guarantee program under this title.

     SEC. 605. LIMITATIONS ON AMOUNT OF GUARANTEES.

       (a) Aggregate Fiscal Year Limitation.--Notwithstanding any 
     other provision of law and subject only to the absence of 
     qualified applicants or proposed activities and to the 
     authority provided in this title, to the extent approved or 
     provided in appropriation Acts, the Secretary may enter into 
     commitments to guarantee notes and obligations under this 
     title with an aggregate principal amount not to exceed 
     $400,000,000 for each of fiscal years 1997, 1998, 1999, 2000, 
     and 2001.
       (b) Authorization of Appropriations for Credit Subsidy.--
     There are authorized to be appropriated to cover the costs 
     (as such term is defined in section 502 of the Congressional 
     Budget Act of 1974) of guarantees under this title such sums 
     as may be necessary for each of fiscal years 1997, 1998, 
     1999, 2000, and 2001.
       (c) Aggregate Outstanding Limitation.--The total amount of 
     outstanding obligations guaranteed on a cumulative basis by 
     the Secretary pursuant to this title shall not at any time 
     exceed $2,000,000,000 or such higher amount as may be 
     authorized to be appropriated for this title for any fiscal 
     year.
       (d) Fiscal Year Limitations on Tribes.--The Secretary shall 
     monitor the use of guarantees under this title by Indian 
     tribes. If the Secretary finds that 50 percent of the 
     aggregate guarantee authority under subsection (c) has been 
     committed, the Secretary may--
       (1) impose limitations on the amount of guarantees any one 
     Indian tribe may receive in any fiscal year of $50,000,000; 
     or
       (2) request the enactment of legislation increasing the 
     aggregate outstanding limitation on guarantees under this 
     title.

     SEC. 606. EFFECTIVE DATE.

       This title shall take effect on the date of the enactment 
     of this Act.
        TITLE VII--OTHER HOUSING ASSISTANCE FOR NATIVE AMERICANS

     SEC. 701. LOAN GUARANTEES FOR INDIAN HOUSING.

       (a) Definition of Eligible Borrowers To Include Indian 
     Tribes.--Section 184 of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1515z-13a) is amended--
       (1) in subsection (a)--
       (A) by striking ``and Indian housing authorities'' and 
     inserting ``, Indian housing authorities, and Indian 
     tribes,''; and
       (B) by striking ``or Indian housing authority'' and 
     inserting ``, Indian housing authority, or Indian tribe''; 
     and
       (2) in subsection (b)(1), by striking ``or Indian housing 
     authorities'' and inserting ``, Indian housing authorities, 
     or Indian tribes''.
       (b) Need for Loan Guarantee.--Section 184(a) of the Housing 
     and Community Development Act of 1992 (12 U.S.C. 1715z-
     13a(a)) is amended by striking ``trust land'' and inserting 
     ``lands or as a result of a lack of access to private 
     financial markets''.
       (c) IHP Requirement.--Section 184(b)(2) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) 
     is amended by inserting before the period at the end the 
     following: ``that is under the jurisdiction of an Indian 
     tribe for which an Indian housing plan has been submitted and 
     approved pursuant to sections 102 and 103 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 that provides for the use of loan guarantees under this 
     section to provide affordable homeownership housing in such 
     areas''.
       (d) Lender Option To Obtain Payment Upon Default Without 
     Foreclosure.--Section 184(h) of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13a(h)) is amended--
       (1) in paragraph (1)(A)--
       (A) in the first sentence of clause (i), by striking ``in a 
     court of competent jurisdiction''; and
       (B) by striking clause (ii) and inserting the following:
       ``(ii) No foreclosure.--Without seeking foreclosure (or in 
     any case in which a foreclosure proceeding initiated under 
     clause (i) continues for a period in excess of 1 year), the 
     holder of the guarantee may submit to the Secretary a request 
     to assign the obligation and security interest to the 
     Secretary in return for payment of the claim under the 
     guarantee. The Secretary may accept assignment of the loan if 
     the Secretary determines that the assignment is in the best 
     interests of the United States. Upon assignment, the 
     Secretary shall pay to the holder of the guarantee the pro 
     rata portion of the amount guaranteed (as determined under 
     subsection (e)). The Secretary shall be subrogated to the 
     rights of the holder of the guarantee and the holder shall 
     assign the obligation and security to the Secretary.'';
       (2) by striking paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).
       (e) Limitation of Mortgagee Authority.--Section 184(h)(2) 
     of the Housing and Community Development Act of 1992 (12 
     U.S.C. 1715z-13a(h)(2)), as so redesignated by subsection 
     (e)(3) of this section, is amended--
       (1) in the first sentence, by striking ``tribal allotted or 
     trust land,'' and inserting ``restricted Indian land, the 
     mortgagee or''; and
       (2) in the second sentence, by striking ``Secretary'' each 
     place it appears, and inserting ``mortgagee or the 
     Secretary''.
       (f) Limitation on Outstanding Aggregate Principal Amount.--
     Section 184(i)(5)(C) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1715z-13a(i)(5)(C)) is amended by 
     striking ``1993'' and all that follows through ``such year'' 
     and inserting ``1997, 1998, 1999, 2000, and 2001 with an 
     aggregate outstanding principal amount note exceeding 
     $400,000,000 for each such fiscal year''.
       (g) Authorization of Appropriations for Guarantee Fund.--
     Section 184(i)(7) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1715z-13a(i)(7)) is amended by 
     striking ``such sums'' and all that follows through ``1994'' 
     and inserting ``such sums as may be necessary for each of 
     fiscal years 1997, 1998, 1999, 2000, and 2001''.
       (h) Definitions.--Section 184(k) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1715z-13a(k)) is 
     amended--
       (1) in paragraph (4), by inserting after ``authority'' the 
     following: ``or Indian tribe'';
       (2) in paragraph (5)--
       (A) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) is authorized to engage in or assist in the 
     development or operation of--
       ``(i) low-income housing for Indians; or
       ``(ii) housing subject to the provisions of this section; 
     and''; and

[[Page H11613]]

       (B) by adding at the end the following:
     ``The term includes tribally designated housing entities 
     under the Native American Housing Assistance and Self-
     Determination Act of 1996.''; and
       (3) by striking paragraph (8) and inserting the following 
     new paragraph:
       ``(8) Tribe; indian tribe.--The term `tribe' or `Indian 
     tribe' means any Indian tribe, band, nation, or other 
     organized group or community of Indians, including any Alaska 
     Native village or regional or village corporation as defined 
     in or established pursuant to the Alaska Native Claims 
     Settlement Act, that is recognized as eligible for the 
     special programs and services provided by the United States 
     to Indians because of their status as Indians pursuant to the 
     Indian Self-Determination and Education Assistance Act of 
     1975.''.
       (i) Principal Obligation Amounts.--Section 184(b)(5)(C) of 
     the Housing and Community Development Act of 1992 (12 U.S.C. 
     1715z-13a(b)(5)(C)) is amended by striking clause (i) and 
     inserting the following new clause:
       ``(i) 97.75 percent of the appraised value of the property 
     as of the date the loan is accepted for guarantee (or 98.75 
     percent if the value of the property is $50,000 or less); 
     and''.
       (j) Availability of Amounts.--
       (1) Requirement of appropriations.--Section 184(i)(5) of 
     the Housing and Community Development Act of 1992 (12 U.S.C. 
     1715z-13a(i)(5)) is amended by striking subparagraph (A) and 
     inserting the following:
       ``(A) Requirement of appropriations.--The authority of the 
     Secretary to enter into commitments to guarantee loans under 
     this section shall be effective for any fiscal year to the 
     extent or in such amounts as are or have been provided in 
     appropriations Acts, without regard to the fiscal year for 
     which such amounts were appropriated.''.
       (2) Costs.--Section 184(i)(5)(B) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1715z-
     13a(i)(5)(B)) is amended by adding at the end the following 
     new sentence: ``Any amounts appropriated pursuant to this 
     subparagraph shall remain available until expended.''.
       (k) GNMA Authority.--The first sentence of section 
     306(g)(1) of the Federal National Mortgage Association 
     Charter Act (12 U.S.C. 1721(g)(1)) is amended by inserting 
     before the period at the end the following: ``; or guaranteed 
     under section 184 of the Housing and Community Development 
     Act of 1992''.

     SEC. 702. 50-YEAR LEASEHOLD INTEREST IN TRUST OR RESTRICTED 
                   LANDS FOR HOUSING PURPOSES.

       (a) Authority To Lease.--Notwithstanding any other 
     provision of law, any trust or restricted Indian lands, 
     whether tribally or individually owned, may be leased by the 
     Indian owners, subject to the approval of the affected Indian 
     tribe and the Secretary of the Interior, for housing 
     development and residential purposes.
       (b) Term.--Each lease pursuant to subsection (a) shall be 
     for a term not exceeding 50 years.
       (c) Rule of Construction.--This section may not be 
     construed to repeal, limit, or affect any authority to lease 
     any trust or restricted Indian lands that--
       (1) is conferred by or pursuant to any other provision of 
     law; or
       (2) provides for leases for any period exceeding 50 years.
       (d) Self-Implementation.--This section is intended to be 
     self-implementing and shall not require the issuance of any 
     rule, regulation, or order to take effect as provided in 
     section 705.

     SEC. 703. TRAINING AND TECHNICAL ASSISTANCE.

       There are authorized to be appropriated for assistance for 
     a national organization representing Native American housing 
     interests for providing training and technical assistance to 
     Indian housing authorities and tribally designated housing 
     entities such sums as may be necessary for each of fiscal 
     years 1997, 1998, 1999, 2000, and 2001.

     SEC. 704. PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION ACT OF 
                   1990.

       The Public and Assisted Housing Drug Elimination Act of 
     1990 (42 U.S.C. 11901 et seq.) is amended--
       (1) in section 5123--
       (A) by striking ``(including Indian Housing Authorities)''; 
     and
       (B) by inserting ``tribally designated housing entities,'' 
     before ``and private''; and
       (2) in section 5124(a)(7)--
       (A) by inserting ``or tribally designated housing entity'' 
     after ``public housing agency''; and
       (B) by striking ``public housing'' after nonprofit;
       (3) in section 5125, by inserting ``a tribally designated 
     housing entity,'' after ``resident management corporation,''; 
     and
       (4) in section 5126--
       (A) in paragraph (4)--
       (i) in subparagraph (B), by striking ``or'' at the end;
       (ii) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following new subparagraph:
       ``(D) the Native American Housing Assistance and Self-
     Determination Act.''; and
       (B) by adding at the end the following new paragraph:
       ``(5) Tribally designated housing entity.--The term 
     `tribally designated housing entity' has the meaning given 
     such term in section 4 of the Native American Housing 
     Assistance and Self-Determination Act of 1996.''.

     SEC. 705. EFFECTIVE DATE.

       This title and the amendments made by this title (but not 
     including the amendments made by section 704) shall take 
     effect on the date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York [Mr. Lazio] and the gentleman from Massachusetts [Mr. Kennedy] 
each will control 20 minutes.
  The Chair recognizes the gentleman from New York [Mr. Lazio].
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
   Mr. Speaker, today I have the pleasure of bringing before this House 
the Native American Housing Assistance and Self-Determination Act of 
1996, and I begin with my thanks to my colleague and friend, the 
gentleman from Massachusetts [Mr. Kennedy], and certainly the gentleman 
from Minnesota [Mr. Vento] who also serves on the committee, for their 
help, as well as the help of the gentleman from Nebraska [Mr. Bereuter] 
and the gentleman from Arizona [Mr. Hayworth], members of the 
committee, and the help of many others who have, in a collaborative 
way, helped to bring this to the forefront of our institutional 
consciousness.
   Mr. Speaker, on March 28 of this year I came to this floor and 
introduced with my colleagues from both sides of the aisle a bill that 
didn't receive much fanfare. It was not front-page news for major 
national papers. It didn't make the evening news. Most Americans 
probably have never heard of the bill, but for native Americans, this 
may be the most important bill this Congress has considered.
  The Native American Housing Assistance and Self-Determination Act of 
1996 is a historic step to the promise we made to native Americans and 
that we make to every American, no matter the community or ethnic 
background that persons may come from. That promise is at the very 
foundation of our beliefs, in the Declaration of Independence: ``we 
hold these truths to be self-evident, that all Men are created equal, 
that they are endowed by their creator with certain unalienable Rights, 
that among these are life, liberty and the pursuit of happiness.''
  Being able to pursue your own dreams, owning a home, having a decent 
place live and a community that is empowered to heal itself when 
necessary, to succeed on its own and, ultimately, to be responsible for 
its own destiny--these are not gifts we grant to only a chosen few in 
this country. This promise is what America is about and it is this 
promise that leads us today to consider the Native American Housing 
Assistance and Self-Determination Act.
  Today, in voting for this bill, we stand up for native Americans and 
say clearly that these rights we enjoy are everyone's rights. This bill 
is truly historic. Indian housing programs are not the results of 
legislation, rather they represent a series of memos exchanged 30 years 
ago between the Bureau of Indian Affairs and one of the predecessor 
agencies to the Department of Housing and Urban Development. Indian 
housing is different than public housing, Indian communities are 
different than metropolitan communities, in fact Indian communities are 
often vastly different from one another.
  Indian communities suffer from some of the worst housing conditions 
in the country and without a major change in policies, even the best 
efforts of Federal and tribal governments will fall short. We need 
local responsibility and flexibility that lets tribes decide how to 
spend money rather than asking a bureaucrat in Washington to solve 
problems for them. No one wants that, not the tribe, not the families, 
not even the bureaucrat.
  We also must recognize that the Federal Government cannot be a 
paternalistic overseer and cannot provide the kind of broad resources 
that the private sector can. Already we are beginning to see 
possibilities for private sector involvement in Indian country. Inroads 
have been made with the section 184 program, efforts we will improve 
with this bill. More importantly, Fannie Mae has announced just this 
year that they will begin to purchase Indian mortgages that don't have 
any Federal association. This marks a sea-change in Indian finance.
  New partnerships between the Federal and tribal governments and the 
private sector will give local Indian

[[Page H11614]]

communities the tools they need--and have been asking for--to build a 
better life for themselves and their members.
  The new loan guaranty program that this bill provides to tribes--
modeled after the section 108 loan guarantees available to most 
American communities--will mean more capital to improve housing and 
build much-needed units. It also means there will be more involvement 
with private sector financial entities who are so crucial to long-term 
development in Indian country,
  This bill also makes a change to lease-hold provisions that are 
proving to be a stumbling block to families hoping to buy a home. Right 
now, a native American living on trust-held land can't get a lease long 
enough to get a regular 30-year mortgage, the same as someone in my 
neighborhood. By simply extending the length of the lease period to 50 
years, we enable mortgage companies and banks and even the secondary 
mortgage market to be more involved in mortgage finance. This means new 
home ownership opportunities for native Americans who otherwise 
wouldn't be able to get a mortgage and own a home.

  I would like to thank my colleagues, not only the more veteran 
members, but also one of the subcommittee's newest members, my good 
friend Mr. Hayworth, Mr. Bereuter, the distinguished vice chairman of 
the Housing Subcommittee, and our colleague from the other side of the 
aisle, Mr. Johnson of South Dakota who was also an original cosponsor 
of the bill. Their efforts have been crucial in bringing us this far 
and I offer my heartfelt thanks for all their work.
  In anticipation of what I assume will be the response from some of my 
colleagues from the other side of the aisle, I would like to talk a 
little bit about how this bill came to pass. This is not a Republican 
bill or a Democratic bill. This is a bill that comes from Indian 
country and has, for the last 6 months, been in conference and debate 
among Members and staffs on both sides of the aisle and in both Houses 
of Congress.
  In support of this process, HUD conducted meetings all across the 
country to discuss the proposals and elicit comments and suggestions 
from hundreds of tribal leaders, housing authorities, tenants and other 
interested parties in open forums.
  When the legislation was added to the larger public housing bill in 
May, it passed by a voice vote with the vocal support of Democrats as 
well as Republicans. Since that time there have been a number of 
significant concessions made to accommodate further concerns of the 
minority, including a maximum rent protection for tenants.
  In response to this process, tribes and Indian organizations from all 
over the country have come together and made clear their support for 
the bill. National organizations have voiced their support, like the 
National Congress of American Indians and the National American Indian 
Housing Council. Even private financial entities like Fannie Mae and 
Norwest have also spoken out have said that this will make their work 
in Indian country easier and more effective.
  But what has touched me the most has been the outpouring of support 
from the communities themselves. I have here letters from all over the 
country. From Douglas, AK; from the Oglala, Sioux in South Dakota and 
the Iowa Tribe in Oklahoma; from the Chippewa Housing Authority in 
Wisconsin; the Walker River Housing Authority in Nevada; the Red Lake 
Housing Authority in Minnesota.
  These are not powerful lobbyists or special interest groups in 
Washington. These are communities out in America who care about their 
own families and believe that this bill will make a difference.
  And I believe they are right.
  Mr. Speaker, I reserve the balance of my time.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, first, I want to thank the gentleman from New York [Mr. 
Lazio], my good friend, for all the efforts that he and his staff have 
made to try and incorporate some of the concerns that we have with 
regard to this bill. I want to thank him for his friendship and the 
efforts that he has made to work together over the course of the last 
couple of years on the committee.
  Mr. Speaker, we come here today to talk about an Indian housing bill 
which we will claim in the rhetoric that we will hear over the course 
of the next few minutes is going to take enormous steps forward in 
terms of the plight of Indian housing.
  The truth of the matter is, if any Member takes the time to look at 
Indian housing in America, it has one severe problem that is not 
addressed in any way, shape, or form in this legislation, and that is 
that it is terribly underfunded. We can do all sorts of things and make 
block grants and do all sorts of Band-Aid solutions to the problem, but 
until we start funding Indian housing to a point where we actually 
provide people with shelter that is decent, affordable, and works, then 
none of these Band-Aid solutions are going to make the slightest bit of 
real difference in terms of the day-to-day lives of tribe after tribe, 
Indian family after Indian family, across this country.
  So let us not pretend in any way that the legislation that we have 
today will significantly change the lives and the housing concerns of 
the vast majority of Indians. And I am sure that the gentleman from New 
York [Mr. Lazio] would agree that we need to put a much greater amount 
of money into Indian housing if we are truly going to fix the plight 
that Indians face in America.
  Mr. Speaker, this bill separates out the Indian housing from the 
standard public housing programs. It gives tribal housing authorities 
the additional flexibility that they need to meet the unique housing 
problems that many native Americans face.
  This is a goal that we all share, and I commend the gentleman from 
New York for working to address the concerns and problems that Indians 
in America do face. However, the bill has not gone through the normal 
legislative process so there are still some concerns that remain.
  For example, Mr. Speaker, the bill allows Indian housing authorities 
to demolish public housing without any input from the Secretary of HUD. 
The bill also allows Indian housing authorities to have access to the 
criminal records of tenants and applicants to Indian housing.

                              {time}  1230

  This is consistent with current law. However, the kinds of privacy 
protections that exist in current law with regard to the handling of 
criminal records are not included in this bill. There are also concerns 
about the grievance procedures which remain unclear and concerns about 
a new Government loan guarantee program which are also contained in the 
legislation.
  In addition, a number of eastern tribes, particularly I know of one 
in my own State, had been opposing the bill because they were concerned 
that the formula likely to result from it would greatly reduce the 
funding for their housing authorities. In fact, some tribes are worried 
that they may be forced to shut down existing public housing.
  I understand that the legislation has been changed to address this 
concern and that the bill will provide existing Indian housing with the 
funding necessary to maintain current operations and that existing 
Indian housing authorities would not lose funding as a result of this 
bill.
  I wondered if we could enter into a short colloquy to make sure that 
we understand that and that anyone who reads this legislation will 
understand that this is the intent.
  Mr. LAZIO of New York. Mr. Speaker, will the gentleman yield?
  Mr. KENNEDY of Massachusetts. I yield to the gentleman from New York.
  Mr. LAZIO of New York. Mr. Speaker, pursuant to the gentleman's 
concern, I had drafted into this version of the bill, included in the 
language of the bill a provision that specifically requires the 
allocation formula to provide for the continued operation and 
modernization needs of existing housing units. The consequence of that 
is that no tribe or Indian housing authority will suffer unanticipated 
consequences of a new formula while continuing to guarantee that tribes 
will play a large role in determining the funding allocation to the 
negotiated rulemaking process. It is essentially a hold harmless 
agreement for the tribes in the east.
  Mr. KENNEDY of Massachusetts. I very much appreciate the gentleman's

[[Page H11615]]

willingness to work with us on that issue. It makes an enormous 
difference to tribes that could potentially be detrimentally affected 
by this legislation.
  With that information, I would like to thank, again, Mr. Lazio and 
his staff for their willingness to respond to this and a number of 
concerns raised by the administration on behalf of Members on this side 
of the aisle. I look forward to working with him on this bill as it 
continues to go not only through this session but in all likelihood the 
next session as well.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LAZIO of New York. Mr. Speaker, I yield 5 minutes to the 
gentleman from Nebraska [Mr. Bereuter], vice chairman of the 
Subcommittee on Housing and Community Opportunity.
  (Mr. BEREUTER asked and was given permission to revise his remarks.)
  Mr. BEREUTER. Mr. Speaker, this Member rises in strong support of H.R 
3219, the Native American Housing Assistance and Self-Determination Act 
of 1996. This legislation was added by a bipartisan voice vote as an 
amendment to H.R. 2406, the U.S. Housing Act, which apparently and 
unfortunately will not be enacted this Congress.
  My understanding is that Secretary Cisneros was visiting one of the 
Arizona tribes and he asked them, what is the most important thing that 
could be done to assist you with your housing needs out here? And they 
surprised him by saying, Pass the legislation that has been reported 
out of the House subcommittee.
  It is true, as Mr. Kennedy suggests, that in fact Indian housing has 
been and continues to be underfunded in light of the needs that are 
there. But this legislation additionally will stretch the taxpayers 
money much further as a result of the loan guarantee programs. And I 
say without hesitation that this is the most important Indian housing 
legislation ever considered by this Congress or any other Congress.
  The concepts contained in this legislation are widely supported by 
Indian groups, including the National American Indian Housing Council. 
This revolutionary measure for the first time decouples predominantly 
rural Indian housing from the laws which were designed to govern urban 
public housing.
  Additionally, H.R. 3219 creates flexible block grants to tribes or 
their tribally-designated housing entity; recognizes and supports the 
unique government-to-government relationship between Indian tribes and 
the U.S. Government and restates the value of having local control by 
giving the tribes greater flexibility in providing housing; creates a 
consolidated Native American Housing Grant--HUD's Office of Native 
American Programs will be dedicated to helping Indian communities meet 
their housing needs, with a common goal of achieving economic self-
sufficiency, and involves private capital markets and private lenders 
in improving economic conditions by removing the legal barriers which 
have kept private investors from participating in Indian country.
  Also, this Member is pleased that reforms to the section 184 Indian 
housing loan guarantee program, which he originally authorized in the 
102d Congress, are included in this legislation. These reforms were 
drafted in cooperation with the administration, and make three very 
simple but important improvements to the section 184 Indian Housing 
Loan Guarantee Program, first authorized through the Housing and 
Community Development Act of 1992. This loan program, administered by 
the Department of Housing and Urban Development's Office of Native 
American Programs, has proven to be a highly popular and effective way 
to bring private market participation to meet the housing needs in 
Indian country.
  The current loan guarantee program allows Indians and Indian Housing 
Authorities [IHAs] access to private financing that otherwise would not 
be available to them because of the unique legal status of Indian trust 
land. The Indian Housing Loan Guarantee Fund is used to guarantee loans 
made to Indian families and IHAs for the construction, acquisition, and 
rehabilitation of 1-4 unit family dwellings. This must be standard 
housing and must be located on trust land or land located in an Indian 
or Alaskan native area.
  HUD works with tribes, lenders, and the Bureau of Indian Affairs to 
administer the loan program. HUD issues prequalification commitments 
based on information received from the lender. The lender completes 
property underwriting, and then submits the loan to HUD for firm 
commitment. After the commitment is issued, the loan is closed and 
serviced by the lender.
  As mentioned a moment ago, this legislation makes three simple 
changes to the section 184 program. First, the maximum loan amount is 
raised to bring it in line with the widely used FHA single-family loan 
program. Specifically, for loans with appraised values of $50,000 or 
less, the maximum loan amount will be 98.75 percent of the appraised 
value. For loan on properties valued above $50,000, the loan may be 
97.75 percent of the appraised value.
  The second change made by this amendment is simple yet very 
important. Because the construction process often does not conform to 
the congressional budget cycle, this amendment authorizes funds 
appropriated to remain available until expended.
  The final change made by this Member's amendment is an expansion of 
the authority of the Government National Mortgage Association, also 
known as Ginnie Mae, to purchase loans guaranteed under this program. 
Without this expansion, Ginnie Mae is not authorized to participate in 
Indian country. This Member would like to note that the Nation's 
largest housing secondary market, Fannie Mae, has been instrumental in 
the programs early success. However, now is not the time to limit the 
sources of capital for participating lenders. Rather, by adding Ginnie 
Mae as an additional source of funds, this amendment would expand the 
capital available in Indian country.
  Mr. Speaker, this Member again strongly urges his colleagues to 
support Native Americans and the American Taxpayers by voting in favor 
of this legislation.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield such time as he 
may consume to the gentleman from Minnesota [Mr. Vento], who has done 
yeoman work on this bill and has worked very hard in the last several 
days, in the addition to the months prior to it.
  Mr. VENTO. Mr. Speaker, I thank the chairman, the gentleman from New 
York, Congressman Lazio, for his work on this and other Members.
  Mr. Speaker, I think we have a serious problem with regard to housing 
policy and the housing quality of native Americans across the country. 
In fact, I think as we look at housing we find it to be some of the 
poorest quality housing in the Nation. It is an area that is important 
for us to focus on insofar as we can these remaining days to try and 
see if we can put in place a policy that will help.
  I especially appreciate the guidance and support that I have received 
from various native American groups in Minnesota, from the Red Lake 
group and Bobby Whitefeather and from the Mille Lacs group and Marge 
Anderson. We are very concerned in trying to come back with a policy 
that will give them greater flexibility.
  This piece, this legislation selects one element in the native 
American housing and tries to change it. I think we need to be 
cognizant of the fact that there are other programs in the Department 
of the Interior that provide for construction, that provide for 
infrastructure, that are absolutely elemental to deal with the quality 
of life and Indian housing across this Nation.
  But through this piece of work and the role of the Housing and Urban 
Development Department, the hope here is that the consolidation of 
these separate programs, the construction programs and section 8 
programs and assisted housing programs into a consolidated block grant 
will give greater flexibility and provide better quality housing.
  We remain concerned about how they will fit together with other 
programs in terms of the Farmers Home Administration, how they fitted 
together with other programs such as owner type of properties, and, of 
course, hopefully we can address them. The unique problem here, of 
course, is that very often these lands on which this housing is built 
is of course native American lands. So they do not always have the same 
warrants; they do not have the same legal status as other private 
properties across this country with regard to many of those programs.
  Some unique problems exist. After having a single hearing this year 
on

[[Page H11616]]

this subject, which was good to have had and not having acted on this 
in subcommittee or full committee of jurisdiction. We accepted an 
amendment on the floor with the hope that a lot of refinement could 
take place in the conference with regard to these measures.
  I regret that today I come here with many questions but fundamentally 
in support of this bill with the hope that some of those details will 
not hinder the implementation and the good intentions that are apparent 
on the part of the sponsors of this legislation and on the part of the 
native American groups that are so strongly in support of gaining this 
new flexibility. I am concerned, I guess it is probably a good thing we 
will maintain a Corrections Day Calendar next year because I think we 
will have a lot of candidates from this bill for that calendar. It may 
be just the complexity of the issue. It may be that we did not have the 
time, but nevertheless I stand in support of it today with the hope 
that it will provide the promise that is being extended here to native 
American groups and can move them from having the poorest quality 
housing in this Nation to, in fact, addressing the serious problems 
that occur across this Nation in native American areas.
  I support it and I offer a statement for the Record with regard to 
specifics:
  Mr. Speaker, I therefore rise in general support of this bill because 
I know that the measure is strongly supported by native Americans 
across this country who would like to move forward with critically 
needed reforms to their housing programs. A great deal of time and 
effort has been expended by the native American groups on this 
legislation and its many versions and I recognize the key 
accommodations Chairman Lazio has made on several issues of importance: 
Brooke, labor standards, and the hold-new harmless provisions. 
Therefore I'm pleased to leave unresolved questions unanswered and 
support this fundamental changes regards policy moving from specific 
housing construction and assistance to a block grant with great 
flexibility.
  My reservations about the bill surround a number of issues and 
overarching policy questions that today have no clear answers. These 
are fundamental questions: For example, questions such as the 
maintenance of rental housing is not mentioned in eligible activities. 
Neither is rental assistance. Are these eligible activities? What 
happens to section 8 rental assistance administered by an IHA when the 
1937 act is no longer in force? What is the impact on certain tenant 
protections such as grievance procedures? Why have we authorized yet 
another loan guarantee program that doesn't appear to have collateral 
to guarantee the repayment of borrowing? Without such funding the loan 
program will not exist in reality only on paper, hardly the answer that 
is promised.
  Other questions persist that while not fatal are important.
  During the one hearing held this session, allowable administrative 
fees were a major point of the few witnesses. What percentage is 
allowable for administrative fees? It appears left to secretarial 
discretion. Although access to McKinney funds will no longer be 
available, it is not apparent to me how the homeless, other than as 
low-income eligible, will receive assistance.
  Indian country is not the same in culture nor geography nor needs as 
other entitlement communities and entities that receive grants and 
housing assistance. This bill recognizes that and moves in the 
direction of appropriate changes. Nonetheless, the operation 
programmatic elements of the programs are important and it would appear 
that some of these need more refinement. There are technical as well as 
substantive problems with this bill. Much, in fact too much, appears 
left to secretarial discretion or regulation without adequate 
congressional direction and definition.
  As we come to the end of this session, in the rush to adjourn this 
important rewrite of a bill is going to receive too little attention, 
the provisions of which will not take effect until fiscal year 1998 at 
the earliest. The urgency to achieve a legislative accomplishment may 
well result in a full agenda for the 1997-98 Corrections Day Calendar. 
I will support the bill today to move this initiative forward because 
it is too late in the day for the technical fixes that are needed.
  I thank the gentleman from Massachusetts, and I thank the gentleman 
from New York for his accommodation on some of the measures that were 
so important to us both in terms of the labor provisions and some of 
the others. We will obviously have to address these as we move forward 
in terms of housing policy in the future.
  Mr. LAZIO of New York. Mr. Speaker, I want to thank the gentleman for 
his support.
  Mr. Speaker, I yield 2 minutes to the gentleman from Alaska [Mr. 
Young], my distinguished colleague.
  Mr. YOUNG of Alaska. Mr. Speaker, I want to compliment the gentleman 
and the gentleman from Massachusetts [Mr. Kennedy], for this 
legislation.
  I strongly support H.R. 3219. I can suggest as one who has lived, 
worked and loved with the American natives in Alaska, I have watched 
the present program in housing not work. We have had housings in Alaska 
that were under Government control that had such audacity as to say you 
could not put a storm porch in Nome, AK, on federally built housing 
because it did not meet their code or did not meet their design.
  I do not know how many have been to Nome, AK, but the wind blows 
about 84 miles an hour off the Bering Sea. It is an example to take 
into consideration of the native people up there and their needs or 
their designees and what should or should not be done.
  I think there is another example of what we can do with the 
diminishing dollars we have and get a better result of what we are 
trying to accomplish. That is provide housing to the American natives. 
I hope some of you have an opportunity to go into some of the areas 
with the American natives and see some of the poor housing that does 
exist today. Many of you have seen pictures on TV about the Third World 
countries. We have housing actually under Government control, probably 
some of the most deplorable housing that exists in the United States 
today on not only the reservations but off the reservations such as in 
Alaska and the Alaska Natives.

                              {time}  1245

  The need is well and overwhelming. I think this legislation, in fact 
I know this legislation, is an improvement, and I hope that it will 
solve many of the housing problems that the American natives have faced 
over the years. It is wrong in our Nation when we have a trust 
responsibility to American natives that they have not had the 
flexibility that this bill provides, so I want to compliment the 
authors and the people that have worked on this legislation, as I do 
think they have addressed the issues very well in this legislation. And 
this will work; we will have much better housing.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, will the gentleman yield?
  Mr. YOUNG of Alaska. I yield to the gentleman from Massachusetts.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I just would look forward 
to joining with my friend, the gentleman from Alaska [Mr. Young], in 
trying to find additional dollars next year for this and other housing 
programs because I think he has articulated the fact that we need to 
streamline the bureaucracy, but we also need more money for the housing 
program.
  Mr. Speaker, I yield 2 minutes to my good friend, the gentleman from 
American Samoa [Mr. Faleomavaega].
  (Mr. FALEOMAVAEGA asked and was given permission to revise and extend 
his remarks.)
  Mr. FALEOMAVAEGA. Mr. Speaker, I certainly would like to commend the 
gentleman from New York [Mr. Lazio] and our friend, the gentleman from 
Massachusetts [Mr. Kennedy], for bringing this piece of legislation up 
for consideration by this body. As the gentleman from Alaska, who is 
the chairman of the Committee on Resources, stated earlier it is his 
committee which has jurisdiction in dealing with the needs of our 
native Americans, Mr. Speaker, the first Americans, if I might say, 2 
million of them.
  I recall recently that here we have a situation where we need $5 
million to provide for sanitation facilities for these first Americans 
and we cannot even come up with $5 million. This is how difficult the 
problems are that we have. And yes, we all know about the budgetary 
constraints. I do not have to share with my colleagues the plight of 
the first Americans. It is well documented; everybody knows. I know 
with our good-faith efforts we know we have not met the expectations or 
the problems affecting the needs of native Americans, but perhaps it 
may be the provisions of this legislation are a good start. But we need 
to do more, my colleagues. We need to do more to provide for the needs 
of our first Americans.
  I thank the gentleman for giving me time to share these thoughts with 
them.

[[Page H11617]]

  Mr. LAZIO of New York. Mr. Speaker I yield 3 minutes to the 
distinguished gentleman from Arizona [Mr. Hayworth] who was so 
instrumental in having this bill drafted and moved to the floor.
  (Mr. HAYWORTH asked and was given permission to revise and extend his 
remarks.)
  Mr. HAYWORTH. Mr. Speaker, I would thank my good friend from New 
York, Mr. Lazio, for recognizing me and allowing me to take this time 
to discuss this legislation, and I would thank those on the minority 
side who have worked with us in this regard.
  Mr. Speaker, I come to the well of this House today to voice my 
strong support for H.R. 3219. Washington has changed in a great many 
ways since many of us came to the Congress of the United States in 
January 1995. Chief in those changes has been this recognition, that 
one size does not fit all. Nowhere do we have greater evidence of this 
truth than when it comes to the challenge of housing for native 
Americans.
  I represent the Sixth District of Arizona. More Indians live on 
reservation land in the Sixth District of Arizona than in any other 
district in the contiguous United States. We could use the bureaucratic 
euphemism that their housing is substandard, and yet that description 
in itself is sorely lacking; it indeed is substandard.
  But with this legislation today, we acknowledge the fact that Indian 
housing, based on the solemn and, dare I say, sacred trust obligations 
of the treaties, which my good friend from Alaska mentioned minutes 
ago, will be recognized to be profoundly different than the public 
housing programs in metropolitan areas.
  Moreover, Mr. Speaker, with this legislation we do something that 
almost all of Indian country has called for time and again on a variety 
of programs. We block-grant that money directly to the Indian tribes so 
they do not have to come through the Washington bureaucracy, so they do 
not have to wait for set-asides from respective State governments. We 
say to the first Americans in this instance, ``You are not the 
forgotten Americans, and moreover, you have the right to self-
determination, to self-governance, to decide how best to spend this 
money.''
  I would like to thank the chairman of the subcommittee, the gentleman 
from New York, not only for seeking the advice and the input of our 
colleagues in the minority in this body, but for traveling throughout 
this country, indeed for coming to the great State of Arizona and 
hearing directly from the people who will be most affected by this 
legislation, for if there is another lesson of this 104th Congress, it 
is this: The best solutions are not fashioned by those who reside here 
inside this Beltway. Ofttimes the best solutions come from the people 
directly affected who stand to have their own lives improved, who stand 
to make more of their lives, who must confront this problem every 
single day. So we provide the flexibility, we provide the funds 
directly to the tribes, and we recognize that in this country once 
again in solving problems one size does not fit all.
  Join us in supporting this legislation.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I have no other speakers 
and I yield back the balance of my time.
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, let me say then in conclusion, thanking my colleague, 
the gentleman from Massachusetts [Mr. Kennedy], for his cooperation and 
moving this bill through the process and bringing it to the floor right 
now, thanking him for working with our staff, and for his staff, 
particularly Jonathan Miller, working with ours to make sure that this 
day was possible. As the gentleman from Arizona [Mr. Hayworth] said, 
this is truly an historic day, not just because of the substance we 
bring before the House, but because of the process which made this day 
possible, the sense of consultation, of collaboration with those who 
are most affected by it, the native Americans.
  The major principles, Mr. Speaker, are clear. Separating Indian 
housing from urban public housing programs, not because one is right 
and one is wrong, but because they are different, taking responsibility 
for the local level, for their tribes and designees to decide on their 
own how to overcome their own problems with the partnership dollars 
that we are going to be providing, ending decades of overly 
prescriptive policies and bureaucratic entanglements and providing more 
flexibility so the people who want to provide housing can be focused on 
the mission of providing housing, not on networking with rules and 
regulations and performance standards irrelevant to the communities 
that they serve; replacing dozens of programs and set-asides and bigger 
programs and combining them into more efficient block grants, again so 
that the people who service the communities and native American Indian 
country can spend their time providing the services of economic 
development and providing decent, affordable and healthy housing 
without having to spend more and more time interfacing with bureaucrats 
in Washington; making sure that long term strategies are the basis for 
our work; recognizing the unique government-to-government relationship 
between tribes and the Federal Government; providing new tools for 
developing housing outside the cookie cutter approach of public 
housing, but protecting good existing housing; changing wrong-headed 
short-term lease provisions on trust land that can help make banks and 
secondary mortgage markets wary of private investment in Indian 
country, replacing it with a 50-year leasehold which will allow more 
liquidity and more money for native Americans to pursue their own 
dreams; performing the successful section 108 program that my 
colleague, the gentleman from Nebraska [Mr. Bereuter] helped pioneer in 
encouraging more lenders to be involved; and involving again hundreds 
of Indian leaders and Indian housing experts in an unprecedented 
process of inclusion in native American policy making.
  Mr. Speaker, this is a historic opportunity to do for native 
Americans something that is long overdue, to listen, to lead and to 
deliver. With this one sweep, Mr. Speaker, we will be able to put 
native Americans in a position where they can provide better and more 
decent housing for those who need it most.
  I urge my colleagues in a bipartisan way to support this measure, to 
vote aye to make this day possible for native Americans.
  I include for the Record a section-by-section description regarding 
H.R. 3219, as amended.

                     H.R. 3219--Section by Section

       Sec. 1. Short Title.
       ``Native American Housing Assistance and Self-Determination 
     Act of 1996.''
       Sec. 2. Congressional Findings.
       States 7 Congressional findings.
       Sec. 3. Administration through Office of Native American 
     Programs.
       Requires ONAP to administer program.
       Sec. 4. Definitions.
       Defines terms for title VII:
       (1) affordable housing;
       (2) families and persons (defining single persons, 
     families, absence of children, elderly person, person with 
     disabilities, displaced person, and near elderly person 
     (50+));
       (3) grant beneficiary (tribe or tribes);
       (4) Indian;
       (5) Indian area;
       (6) Indian tribe;
       (7) local housing plan;
       (8) LI family;
       (9) median income;
       (10) recipient (tribe or tribally designated housing entity 
     for the tribe);
       (11) tribally designated housing entity;
       (12) Secretary.


              title i--block grants and grant requirements

       Sec. 101. Block Grants.
       (a) Authority. Requires HUD (subject to funding) to make 
     grants on behalf of Indian tribes to carry out affordable 
     housing activities. Requires HUD to provide grants for the 
     tribe directly to the recipient for the tribe.
       (b) Plan Requirement. Permits HUD to make grants only if 
     tribe has submitted an Indian housing plan under Sec. 102 for 
     the fiscal year and HUD determines it complies with Sec. 102. 
     Permits HUD waiver if needed due to circumstances beyond 
     control of the tribe.
       (c) Local Cooperation Agreement. Secretary may not make a 
     grant under this Act unless the governing body of the 
     locality within which the housing will be situated in has 
     entered into an agreement with the recipient to provide local 
     cooperation as required by the Secretary pursuant to this 
     Act.
       (d) Exemption from Taxation. Provides that: (1) Affordable 
     housing assisted with grant amounts is exempt from all real 
     and personal property taxes levied and imposed by any 
     jurisdiction;
       (2) the recipient makes annual payments of user fees to 
     compensate such governments for the cost of providing 
     governmental services including police and fire protection,

[[Page H11618]]

     roads, water and sewer systems, utilities systems and related 
     facilities, or payments in lieu of taxes in an amount equal 
     to the greater of $150 per dwelling unit, 10% of the 
     difference between the shelter rent and utility cost or such 
     lesser amount as prescribed by law, is agreed to by the local 
     governing body in the agreement under subsection (c) or the 
     recipient and the local governing body agree that such 
     payments shall not be made;
       (e) Effect of Failure to Exempt from Taxation. Provides 
     that notwithstanding subsection (d), a recipient that does 
     not comply may receive a block grant, but only if the local 
     government within which the affordable housing development is 
     located contributes in cash or tax remission the amount by 
     which the taxes paid exceed the amounts prescribed in 
     subsection (d)(2).
       (f) Amount. For a recipient whose grant beneficiary is one 
     tribe, the grant is the amount for the tribe determined under 
     Sec. 301. For a recipient whose grant beneficiary is more 
     than one tribe, the grant is the amount for each tribe.
       (g) Use for Affordable Housing Activities. Except for 
     administrative expenses under (h), requires grants to be used 
     only for affordable housing activities consistent with the 
     housing plan approved under Sec. 103.
       (h) Administrative Expenses. Requires HUD, by regulation, 
     to authorize each recipient to use a percentage of any grant 
     for any administrative and planning expenses of the recipient 
     related to carrying out title VII and activities assisted 
     with such grants, including salaries and expenses of 
     preparing a local housing plan under Sec. 102. Requires 
     regulations to specify percentage caps for each recipient and 
     permits HUD to review the percentage and revise it.
       (i) Public-Private Partnerships. Provides that each 
     recipient shall make all reasonable efforts to maximize 
     participation by the private sector in implementing the plan.
       Sec. 102 Indian Housing Plans (IHPs).
       (a) Plan Submission. Requires the Secretary to provide for 
     an Indian tribe to submit a housing plan each fiscal year for 
     that tribe or tribally-designated housing entity and to 
     review such plans.
       (b) 5-Year Plan. Requires each IHP to contain, for the 5-
     year period beginning with the fiscal year for which the plan 
     is submitted, the mission statement for serving low-income 
     families, goals and objectives that will enable the tribe to 
     accomplish that mission and the activities planned.
       (c) 1-Year Plan. Provides that an IHP shall contain the 
     following information:
       (1) Goals and Objectives.
       (2) Statement of Needs, including a description of 
     estimated needs for low-income housing in the jurisdiction of 
     the recipient and the geographic distribution of those needs.
       (3) Financial Resources, including a description of how the 
     available funds will be used to leverage additional 
     resources.
       (4) Affordable Housing Resources:
       (A) a description of significant characteristics of the 
     housing market in the jurisdiction;
       (B) a description of the structure, coordination, means of 
     cooperation between the governmental entities in the 
     development, submission and implementation of housing plans, 
     including a description of the involvement of private, public 
     and nonprofit organizations and the use of Section 184 and 
     other loan guarantees;
       (C) a description of how the plan will address needs 
     identified under paragraph (2).
       (D) a description of how the recipient will protect and 
     maintain the viability of housing owned and operated by the 
     recipient under a contract between the Secretary and an 
     Indian housing authority pursuant to the United States 
     Housing Act of 1937;
       (E) a description of any existing or anticipated 
     homeownership programs;
       (F) a description of any existing or anticipated 
     rehabilitation programs;
       (G) a description of all other existing or anticipated 
     housing assistance provided by the recipient during the 
     period, including transitional housing, homeless housing, 
     college housing, and supportive services housing;
       (H) a description of any housing to be demolished or 
     disposed;
       (I) a description of how the recipient will coordinate with 
     tribal and State welfare agencies to ensure that residents of 
     such housing will be provided with access to resources to 
     assist in obtaining employment and achieving self-
     sufficiency;
       (J) a description of requirements established by the 
     recipient to promote the safety of residents of such housing 
     and facilitate crime-prevention measures;
       (K) a description of the entity that will carry out 
     activated under the plan, including the organizational 
     capacity and key personnel of the entity.
       (5) Certification of Compliance. Evidence of compliance 
     which shall include:
       (A) a certification that the recipient has complied with 
     title II of the Civil Rights Act of 1968;
       (B) a certification that the recipient will maintain 
     adequate insurance coverage for housing units owned or 
     operated or assisted with amounts provided under this Act;
       (C) a certification that policies are in effect and 
     available for review by the Secretary and the public 
     governing eligibility, admission and occupancy of families 
     for housing assisted with grant amounts under this act;
       (D) a certification that policies are in effect and 
     available for review by the Secretary and the public 
     governing rents charged, including methods by which rents or 
     homebuyer payments are determined;
       (E) a certification that policies are in effect and 
     available for review by the Secretary and the public 
     governing the management and maintenance of housing assisted 
     with grant amounts under this act.
       (d) Participation of Tribally Designated Housing Entity. 
     Permits housing entity to prepare and submit an LHP, but only 
     if it contains a certification by the recognized tribal 
     government of the grant beneficiary that the tribe has had an 
     opportunity to review the plan and has authorized its 
     submission by the housing entity.
       (e) Coordination of Plans. Permits plan to cover more than 
     one tribe if subsection (d) certification requirements are 
     complied with by each tribe.
       (f) Plans for Small Tribes. Requires HUD to establish 
     separate requirements for small tribes and small housing 
     entities. Requires the HUD requirements to waive any 
     requirements HUD determines are burdensome or unnecessary for 
     such small tribes and entities. Requires HUD to define small, 
     based on number of units assisted under this title or 1937 
     Act.
       (g) Regulations. Requires content requirements of IHPs be 
     established by regulation, pursuant to Sec. 106.
       Sec. 103 Review of Plans.
       (a) Review and Notice. Requires HUD to conduct a limited 
     review to ensure compliance with Sec. 102. Gives HUD 
     discretion to review a plan only to the extent HUD considers 
     necessary. Requires HUD to notify tribe and any housing 
     entity whether it complies within 60 days after receipt. If 
     notice not given, plan considered to comply.
       (b) Notice of Reasons for Determination of Noncompliance. 
     Where applicable, requires HUD to notify tribe and any 
     housing entity of reasons for noncompliance, and any 
     necessary modifications.
       (c) Review. Permits HUD to determine a plan does not comply 
     only if:
       i. set forth information required under Sec. 102;
       ii. plan is consistent with information and data available 
     to the Secretary and are prohibited by or inconsistent any 
     provision of the act or other applicable law;

     If the Secretary determines that any of the certifications 
     required in Sec. 102(c)(5) are not included in the plan, it 
     shall be deemed incomplete.
       (d) Updates to Plan. After submission under Sec. 102, 
     permits tribe to comply for future years (for one-year or 
     five-year plan) by submitting only information needed to 
     update the plan. Not less than once every 5 years, the tribe 
     shall submit a complete plan.
       (e) Effective Date. This section and Sec. 102 shall take 
     effect on the date provided by the Secretary pursuant to 
     Sec. 106(a).
       Sec. 104 Treatment of Program Income and Labor Standards.
       (a) Program Income. Permits a recipient to retain any 
     program income realized from any grant amounts if it was 
     realized after initial disbursement; and recipient has agreed 
     it will use program income for affordable housing activities. 
     Prohibits HUD from reducing grant amounts based solely on 
     whether the recipient retains program income; or the amount 
     of any program income retained or whether the recipient 
     retains reserve amounts described in Sec. 210. Permits HUD, 
     by regulation, to exclude from consideration as program 
     income amounts determined to be so small that compliance 
     would create an unreasonable administrative burden.
       (b) Labor Standards. Maintains existing law governing the 
     application of prevailing wage requirements to public housing 
     assisted under the United States Housing Act of 1937.
       Sec. 105. Environmental Review.
       Authorizes assumption of environmental review 
     responsibilities by tribes.
       Sec. 106. Regulations.
       (a) Transition Requirements.
       (1) In General. Not later than 90 days after the enactment 
     of this act, the Secretary shall, by Federal Register notice, 
     establish any requirements necessary to provide for the 
     transition from assistance under the U.S. Housing Act of 1937 
     and related provisions of law to the provisions of law to the 
     provision of assistance in accordance with this act.
       (2) Public Comments. In General notice of proposed 
     rulemaking. The Federal Register notice shall invite public 
     comments regarding the transition requirements and final 
     regulations to carry out this act and include a general 
     notice of proposed rulemaking (for purposes of Sec. 564(a) of 
     Title V of USC) of the final regulations under subsection 
     (b).
       (b) Final Regulations.
       (1) Timing. The Secretary shall issue final regulations to 
     carry out this act not later than September 1, 1997 and such 
     regulations shall take effect not later than October 1, 1997.
       (2) Negotiated Rulemaking Procedure. Requires final 
     regulations to be issued according to a negotiated rulemaking 
     procedure, and requires HUD to establish a negotiated 
     rulemaking committee, to include only representatives of the 
     Federal government and of geographically diverse small, 
     medium and large Indian tribes and shall not preclude the 
     participation of TDHE, should tribes elect to be represented 
     by such entities.
       (c) Effective Date. This section shall take effect on the 
     date of enactment of this act.
       Sec. 107. Effective Date.
       Except as otherwise expressly provided in this act, this 
     act and the amendments made by this act shall take effect on 
     October 1, 1997.

[[Page H11619]]

       Sec. 108. Authorization of Appropriations.
       Authorizes such sums as may be necessary for FYs 1998-2001.


                title ii--affordable housing activities

       Sec. 201. National Objectives and Eligible Families.
       (a) Primary Objective. Specifies 5 national objectives.
       (b) Eligible Families.
       (1) In General. Limits assistance to low-income Indian 
     families on Indian reservations and other Indian areas.
       (2) Exception to Low-Income Requirements. Permits 
     assistance for homeownership activities under Sec. 202(2), 
     model activities under Sec. 202(6), or loan guarantee 
     activities under Title VI to non-low-income families, if HUD 
     approves because there is a need for housing for such 
     families that cannot reasonably be met without such 
     assistance. Requires HUD to set limits on amount of 
     assistance that may be provided for non-low-income families.
       (3) Non-Indian Families. Notwithstanding paragraphs (1) 
     Permits recipients to provide housing or housing assistance 
     through affordable housing activities for a non-Indian family 
     on an Indian reservation or other Indian area if recipient 
     determines presence of the family is essential to well-being 
     of Indian families and the need for housing cannot reasonably 
     be met without such assistance.
       (4) Preference for Tribal Members or Other Indian Families. 
     Permits the IHP to require preference to be given, to the 
     extent practicable, to Indian families who are members of the 
     tribe or to other Indian families. Requires recipients to 
     ensure that housing activities assisted under this act are 
     subject to any such preference.
       (5) Exemption. Makes title VI of the 1964 CRA and the Fair 
     Housing Act inapplicable to actions by Indian tribes under 
     this subsection.
       Sec. 202. Eligible Affordable Housing Activities.
       Defines affordable housing activities to develop or support 
     affordable housing for rental or homeownership, or to provide 
     housing services with respect to affordable housing, through 
     the following activities:
       (1) Indian Housing Assistance: mod or operating assistance.
       (2) Development: acquisition, new construction, 
     reconstruction, or mod or sub rehab, which may include real 
     property acquisition, site improvement, development of 
     utilities or utilities services, conversion, demolition, 
     financing, administration and planning and other related 
     activities.
       (3) Housing Services: counseling, establishment and support 
     of resident organizations, energy auditing and other 
     specified examples.
       (4) Housing Management Services: preparation of work specs 
     and other specified examples.
       (5) Crime Prevention and Safety Activities: safety, 
     security, and law enforcement measures and activities 
     appropriate to protect residents.
       (6) Model Activities: activities under model programs 
     designed to carry out purposes of this act and specifically 
     approved by HUD as appropriate.
       Sec. 203. Program Requirements.
       (a) Rents.
       (1) Establishment. Subject to paragraph (2), each recipient 
     shall develop written policies governing rents and homebuyer 
     payments including the methods by which such payments are 
     determined.
       (2) Maximum Rent. For any low-income family assisted with 
     grant amounts under this act, the monthly rent or homebuyer 
     payment may not exceed 30% of the monthly adjusted income of 
     such family.
       (b) Maintenance and Efficient Operation. Requires any 
     recipient that owns or operates (or is responsible for 
     funding any entity that owns or operates) housing developed 
     or operated under a HUD/IHA contract under the 1937 Act to 
     use amounts under this act to reserve and use for operating 
     assistance under Sec. 202(1) necessary amounts to provide for 
     continued maintenance and efficient operation of such 
     housing.
       (c) Insurance Coverage. Requires each recipient to maintain 
     adequate insurance coverage for housing assisted under this 
     act.
       (d) Eligibility for Admissions. Each recipient shall 
     develop written policies governing the eligibility, admission 
     and occupancy of families assisted under this act.
       (e) Management and Maintenance. Each recipient shall 
     establish policies governing the management and maintenance 
     of housing assisted under this act.
       Sec. 204 Types of Investments.
       (a) In General. Subject to Sec. 203 and the IHP, the 
     recipient shall have (i) discretion to use grants for 
     affordable housing activities through equity investments, 
     interest-bearing or non-interest-bearing loans or advances, 
     interest subsidies, leveraging, or any other assistance HUD 
     determines is consistent with the purposes of this act and 
     the right to establish the terms of assistance.
       (b) Investments. Recipient may invest grant amounts for the 
     purposes of carrying out affordable housing activities in 
     investment securities and other obligation as approved by the 
     Secretary.
       Sec. 250. Low-Income Requirement and Income Targeting.
       Permits housing to qualify as affordable housing only if:
       (a) In General.
       (1) Each unit in the housing is made available for 
     occupancy only by a family that is a low-income family at 
     time of initial occupancy (rental housing) or purchase 
     (homeownership). Except for housing assisted under Sec. 202 
     of the United States Housing Act of 1937 (as in effect before 
     the date of effectiveness of this act), each dwelling unit 
     will remain affordable, according to binding commitments 
     satisfactory to the Secretary, for the remaining useful life 
     of the property (as determined by the Secretary) without 
     regard to the term of the mortgage or to transfer of 
     ownership, or for such other period that the Secretary 
     determines is the longest feasible period of time consistent 
     with sound economics and purposes of this act.
       (b) except for mutual help housing under the 1937 Act, each 
     unit will remain affordable for remaining useful life of the 
     property without regard to the term of the mortgage or 
     transfer of ownership, or for such other period HUD 
     determines is the longest feasible period of time consistent 
     with sound economics and the purposes of this act. However, 
     affordability requirement is lifted upon foreclosure (or 
     other transfer in lieu of foreclosure) if such action:
       (i) recognizes any contractual or legal rights of public 
     agencies, non-profit, or others to take actions that would 
     avoid termination of low-income affordability; and
       (ii) is not for purpose of avoiding low-income 
     affordability restrictions.
       Sec. 206. Certification of Compliance with Subsidy Layering 
     Requirements.
       Provides that the subsidy layering requirements of 
     Sec. 102(d) of the HUD Reform Act of 1989 shall be considered 
     to be satisfied upon certification by the Secretary that the 
     combination of Federal assistance provided to any project is 
     not more than necessary to provide affordable housing.
       Sec. 207. Lease Requirements and Tenant Selection.
       (a) Leases. Requires an owner or manager of rental housing 
     assisted under this act to utilize leases that:
       (1) do not contain unreasonable terms and conditions.
       (2) require the owner or manager to maintain the housing.
       (3) require the owner or manager to give adequate written 
     notice of termination, which shall be the period required 
     under applicable law.
       (4) specify that for any notice of eviction or termination, 
     nonwithstanding any other law, a resident shall be informed 
     of the opportunity, prior to any hearing or trial, to examine 
     any relevant documents, records or regulations directly 
     related.
       (5) require that the owner or manager may not terminate the 
     tenancy, during the term of the lease, except for serious or 
     repeated violations of the terms or conditions in the lease, 
     violations of applicable laws, or for other good cause.
       (6) provide that the owner or manager may terminate tenancy 
     for any activity, engaged in by the resident, any member of 
     the resident's household, or any guest or other person under 
     the control of the resident that--
       (A) threatens the health or safety of, or right to peaceful 
     enjoyment of the premises by, other residents or employees of 
     the owner or manager;
       (B) threatens the health or safety of, or right to peaceful 
     enjoyment of the premises by, persons residing in the 
     immediate vicinity of the premises; or
       (C) is criminal activity (including drug-related criminal 
     activity) on or off the premises.
       (b) Tenant Selection. Requires owners and managers to adopt 
     and use written tenant selection policies and criteria that:
       (1) are consistent with the purpose of providing housing 
     for low-income families:
       (2) are reasonably related to program eligibility and the 
     applicant's ability to perform obligations of the lease; and
       (3) provide for selection of tenants from a written waiting 
     list in accordance with the IHP, and prompt notification in 
     writing of the grounds for rejection.
       Sec. 208. Availability of Records.
       Provides access to National Crime Information Center data 
     for applicants or tenants of housing assisted with grant 
     amounts provided for under this act.
       Sec. 209. Repayment.
       If at any time during the useful life of the housing 
     assisted under this act the housing does not comply with 
     Sec. 205(2), requires HUD to reduce future grant payments by 
     an amount equal to the grant used for such housing (under 
     authority under Sec. 401(a)(2)) or require repayment to HUD 
     of such amount.
       Sec. 210. Continued Use of Amounts for Affordable Housing.
       Requires funds for low-income housing programs under the 
     1937 Act that, on the date this act begins to apply to an 
     Indian tribe, are owned by, or in the possession or under the 
     control of, the IHA for the tribe, including all reserves not 
     otherwise obligated, to be considered assistance under this 
     act and subject to this act regarding the use of such 
     assistance.


                 title iii--allocation of grant amounts

       Sec. 301. Annual Allocation.
       Requires HUD, for each fiscal year, to allocate amounts 
     made available for grants under this title by formula, 
     established under Sec. 302, among Indian tribes that comply 
     with grant requirements.
       Sec. 302. Allocation Formula.
       (a) Establishment. Requires HUD, by regulations issued in 
     accordance with Sec. 106, to establish a formula to allocate 
     amounts made available for grants under this title among 
     Indian tribes.
       (b) Factors for Determination of Need, Requires that 
     formula be based on factors that

[[Page H11620]]

     reflect affordable housing needs of Indian tribes, including 
     (1) number of LI units owned or operated pursuant to a HUD/
     IHA contract, (2) extent of poverty and economic distress 
     within Indian areas of the tribe, and (3) other objectively 
     measurable conditions specified by HUD.
       (c) Other Factors for Consideration. Requires the Secretary 
     to consider non-quantifiable factors such as the relative 
     administrative capacities of a recipient, geographic and the 
     funding streams available to a State recognized tribe and 
     whether terminations under title V will negatively impact 
     those funds equally with federally-recognized tribes.
       (d) Funding for Public Housing Operation and Modernization.
       (1) Full Funding. The formula shall provide that in any 
     fiscal year in which the total appropriated amount for the 
     block grant exceeds the total of public housing operation and 
     modernization assistance provided to tribes and/or IHAs in FY 
     1996, the formula shall apportion not less than the IHA or 
     tribe received in FY 1996 for those purposes.
       (2) Partial Funding. The formula shall provide that in any 
     fiscal year in which the total appropriated amount for the 
     block grant does not exceed the total of public housing 
     operation and modernization assistance provided to tribes or 
     IHAs in FY 1996, the formula shall apportion not less than 
     the ratio received by each individual IHA or tribe in FY 
     1996.
       (e) Effective Date. This section shall take effect on the 
     date of enactment of this act.


                title iv--compliance, audits and reports

       Sec. 401. Remedies for Noncompliance.
       (a) Actions by Secretary Affecting Grant Amounts. Requires 
     HUD, after reasonable notice and opportunity for hearing, to 
     take action against recipients for noncompliance, including:
       (1) terminating payments,
       (2) reducing payments commensurate with amount improperly 
     expended,
       (3) limiting payments to activities not affected by 
     noncompliance, and
       (4) replacing recipient with tribally designated housing 
     entity pursuant to Sec. 402(b) for substantial or willful 
     noncompliance. Requires continuation of action under (1), 
     (2), or (3) until Secretary determines that noncompliance has 
     ceased.
       (b) Noncompliance Because of Technical Incapacity. 
     Authorizes HUD to provide technical assistance (directly or 
     indirectly) to recipient to increase its capability and 
     capacity to administer grants under this title If HUD 
     determines that noncompliance of recipient is not willful and 
     is a result of limited capability and capacity.
       (c) Referral for Civil Action. Authorizes HUD to refer 
     substantial noncompliance to Attorney General for appropriate 
     civil action. Authorizes Attorney General to bring civil 
     action in appropriate Federal district court and to seek 
     appropriate relief, including recovery of amount improperly 
     expended, or for mandatory or injunctive relief.
       (d) Review. Authorizes recipient that receives notice of an 
     adverse action for noncompliance to petition appropriate 
     Federal Court of Appeals for review of such action. 
     Establishes procedural requirements for petitioner and HUD, 
     and the jurisdiction of the court.
       Sec. 402. Replacement of Recipient.
       a. Authority. As a condition of a grant, Indian tribe 
     agrees that HUD may, under limited circumstances, require 
     that a replacement tribally designated housing entity serve 
     as recipient for tribe.
       (b) Conditions of Removal. Authorizes such replacement only 
     if HUD determines, on record after opportunity for hearing, 
     that recipient has engaged in pattern or practice of 
     activities that constitutes substantial or willful 
     noncompliance with the requirements of this title.
       (c) Choice and Term of Replacement. Requires replacement 
     entity to be mutually agreed upon by HUD and tribe(s). If no 
     agreement is reached within 60 days of HUD's determination to 
     replace the recipient, requires HUD to act as replacement 
     entity until an agreement can be reached. Requires 
     replacement entity (or HUD) to act until date certain, or the 
     occurrence of specific conditions, as established by HUD.
       Sec. 403. Monitoring of Compliance.
       (a) Enforceable Agreements. Requires each recipient, 
     through binding contractual agreements with owners and 
     otherwise, to ensure long-term compliance with provisions of 
     title, including enforcement by grant beneficiary or 
     recipients and other beneficiaries, and remedies for breach.
       (b) Periodic Monitoring. Requires recipient, at least 
     annually, to review activities conducted and housing assisted 
     under this title to assess compliance with applicable 
     requirements, including on-site inspection of housing. 
     Requires results of review to be included in recipient's 
     performance report to HUD under Sec. 404 and made available 
     to public.
       Sec. 404. Performance Reports.
       Requires each recipient, for each FY to review its progress 
     in carrying out the Indian housing plan(s) for the Indian 
     tribes for which it administers grant amounts, and submit a 
     report to HUD describing conclusions of review. Specifies 
     content requirements. Requires HUD to establish submission 
     dates and appropriate review requirements. Requires that 
     recipients make report available to citizens within 
     jurisdiction prior to submission to HUD, and include summary 
     of citizen comments in report.
       Sec. 405. Review and Audit by Secretary.
       (a) Annual Review. Requires HUD to make necessary and 
     appropriate annual reviews and audits to assess each 
     recipient's performance, including, if practicable, on-
     site visits by HUD employees.
       (b) Report by HUD. Requires HUD to submit report to 
     Congress on each review. Requires HUD to give recipient at 
     least 30 days to review and comment on report. Authorizes HUD 
     to revise report to address recipient's comments. Requires 
     HUD to make recipient's comments and report, with any 
     revisions, available to public within 30 days of recipient's 
     comments.
       (c) Effect of Reviews. Authorizes HUD to make adjustments 
     to amount of annual grants pursuant to findings from reviews 
     and audits. Prohibits recapture or deduction of grant amounts 
     already expended on affordable housing activities from future 
     assistance provided on behalf of on Indian tribe.
       Sec. 406. GAO Audits.
       Authorizes GAO to audit financial transactions of Indian 
     tribes and recipients with respect to grant amounts provided 
     under this title.
       Sec. 407. Reports to Congress.
       Requires HUD to submit report to Congress within 90 days of 
     end of each FY which describes progress made in accomplishing 
     objectives of title, summarizes use of funds, and provides a 
     description of outstanding loan guarantees under title VI. 
     Authorizes HUD to require recipients to submit reports and 
     other information necessary for HUD to develop its report.


      title v--terminations of assistance for indian tribes under 
                         incorporated programs

       Sec. 501. Repeal of Provisions Relating to Indian Housing 
     Assistance under United States Housing Act of 1937.
       (a) Repeal of Title II. Repeals title II of the United 
     States Housing Act of 1937.
       (b) Amendments to Title I. Strikes references to ``Indian 
     housing,'' ``Indian tribes'' and other terms within title I 
     of the United States Housing Act of 1937.
       (c) Amendments to Title III. Strikes references to ``Indian 
     housing,'' ``Indian tribes'' and other terms within title III 
     of the United States Housing Act of 1937.
       Sec. 502. Termination of Indian Housing Assistance Under 
     United States Housing Act of 1937
       (a) Termination of Assistance. Provides that after 
     September 30, 1997, financial assistance may not be provided 
     under the United States Housing Act of 1937 or pursuant to 
     any commitment entered into under such Act, for Indian 
     housing developed or operated pursuant to a contract between 
     the Secretary and an Indian housing authority, unless such 
     assistance is provided from amounts made available for fiscal 
     year 1997.
       (b) Terminations of Restrictions on Use of Indian Housing. 
     Provides that after September 30, 1997, any housing developed 
     or operated pursuant to a contract between the Secretary and 
     an Indian housing authority pursuant to the United States 
     Housing Act of 1937 shall not be subject to any provision of 
     such Act or any annual contributions contract or other 
     agreement pursuant to such Act, but shall be considered and 
     maintained as affordable housing for purposes of this Act.
       Sec. 503. Termination of New Commitments for Rental 
     Assistance.
       Prohibits, after 9/30/97, financial assistance for rental 
     housing assistance under the 1937 Act to be provided to any 
     IHA or tribally designated housing entity, unless such 
     assistance is provided pursuant to a contract by HUD and the 
     IHA before such date.
       Sec. 504. Termination of Youthbuild Program Assistance.
       (a) In General. Prohibits Indian tribes, IHAs, and other 
     agencies primarily serving Indians or Indian areas from being 
     eligible for the Youthbuild program in FY 1997 and FYs 
     thereafter. Redesignates Sec. 460 as Sec. 461 and inserts a 
     new section Sec. 460 of NAHA.
       (b) Applicability. Provides that amendments under 
     subsection (a) shall apply with respect to amounts made 
     available for assistance under subtitle D of title II of NAHA 
     for fiscal years 1998 and after.
       Sec. 505. Termination of HOME Program Assistance.
       (a) In General. Terminates HOME program assistance to 
     Indian tribes, amending Sec. 217(a) and Sec. 288 of NAHA.
       (b) Applicability. Requires that this section apply to 
     amounts made available for the HOME program for FY 1998 and 
     FYs thereafter.
       Sec. 506. Termination of Housing Assistance for the 
     Homeless.
       (a) McKinney Act Programs. Terminates homeless assistance 
     for Indian tribes under the McKinney Act, amending title IV 
     of the McKinney Act.
       (b) Innovative Homeless Demonstration. Eliminates Indian 
     tribes as a jurisdiction eligible for funding under the 
     Innovative Homeless Initiatives Demonstration program, 
     amending Sec. 2(b) of the HUD Demonstration Act of 1993.
       (c) Applicability. Requires that this section apply to 
     amounts for McKinney Act homeless assistance and the 
     Innovative Homeless Initiatives Demonstration program, 
     respectively, for FY 1998 and FYs thereafter.
       Sec. 507. Savings Provision.
       Forbids, except as provided in Sec. 502 and Sec. 503, this 
     act to be construed to affect the validity of any right, 
     duty, or obligation of the U.S. or other person arising 
     pursuant to

[[Page H11621]]

     any lawful commitment or agreement before 10/1/97 under the 
     1937 Act, Youthbuild, HOME, McKinney, or the Innovative 
     Homeless Initiatives Demonstration program.
       Sec. 508. Effective Date.
       Requires that Sec. Sec. 502, 503, and 507 (termination of 
     1937 Act assistance and savings provision) take effect on the 
     date of enactment of this act.


     title vi--federal guarantees for financing for tribal housing 
                               activities

       Sec. 601. Authority and Requirements.
       (a) Authority. Authorizes HUD, subject to an appropriation 
     and limitations of this title (including those designed to 
     protect and maintain the viability of rental housing units 
     owned or operated developed under a contract between the 
     Secretary and an Indian housing authority pursuant to the 
     United States Housing Act of 1937), to guarantee (includes 
     commitments) notes or other obligations issued by Indian 
     tribes or tribally designated entities to finance affordable 
     housing activities described in Sec. 202.
       (b) Lack of Financing Elsewhere. Permits guarantees to be 
     used to assist a tribe or housing entity in obtaining 
     financing only if they have made efforts to obtain financing 
     without the guarantee and cannot complete such financing 
     consistent with the timely execution of program plans without 
     such guarantee.
       (c) Terms of Loans. Requires notes or obligations to be in 
     such form and denominations, have such maturities, and be 
     subject to such conditions as HUD may prescribe in 
     regulations. Prohibits HUD from denying a guarantee on the 
     proposed repayment period unless the period is more than 20 
     years or HUD determines that the period causes the guarantee 
     to constitute an unacceptable financial risk.
       (d) Limitation on Outstanding Guarantees. Prohibits a 
     guarantee on notes or if the issuer's total outstanding notes 
     or obligations guaranteed (excluding defeased amounts under 
     contract under Sec. 602(a)(1)) would exceed an amount equal 
     to 5 times the amount of the grant issuer under title III.
       Sec. 602. Security and Repayment.
       (a) Requirements on Issuer. Requires HUD to require the 
     Indian tribe or entity issuing notes or obligations to:
       (1) contract for repayment of guaranteed notes or 
     obligations:
       (2) pledge any grants that the issuer may become eligible 
     for under this act;
       ((3) demonstrate financial capacity of tribe to guarantee 
     and that it is not likely to impair ability to use grant 
     amounts under this title; and
       (4) furnish other appropriate security, at discretion of 
     HUD.
       (b) Repayment From Grant Amounts. Permits HUD to apply 
     grants pledged under subsection (a)(2) to any repayments due 
     from guarantees and permits grants provided under this act to 
     a tribe or housing entity to be used to pay principal and 
     interest due on guaranteed notes or obligations.
       (c) Full Faith and Credit. Pledges the full faith and 
     credit of U.S. to the payment of all guarantees under this 
     title and makes the validity of such guarantees made by HUD 
     incontestable.
       Sec. t603. Payment of Interest.
       Authorizes HUD, subject to an appropriation, to make grants 
     to a tribe or housing entity issuing guaranteed notes or 
     obligations to cover up to 30% of the net interest cost to 
     the borrowing entity or agency of such obligations. Also, 
     permits HUD, subject to an appropriation, to assist the 
     issuer in the payment of principal and interest due under the 
     note or obligation if HUD determines that the issuer is 
     unable to pay because of circumstances of extreme hardship 
     beyond the issuer's control.
       Sec. 604. Treasury Borrowing.
       Authorizes HUD to issue obligations to the Secretary of the 
     Treasury to carry out guarantees authorized under this title. 
     Requires obligations to have such maturities, and such 
     interest rates as determined by the Secretary of Treasury. 
     Requires the Secretary of Treasury to purchase any HUD 
     obligations, and for such purposes, may use as a public debt 
     transaction the proceeds from the sales of specified 
     securities.
       Sec. 605. Training and Information.
       Requires HUD, in cooperation with eligible public entities, 
     to carry out training and information activities on the 
     guarantee program under this title.
       Sec. 606. Limitation on Amount of Guarantees.
       (a) Aggregate Fiscal Year Limitation. Requires HUD, subject 
     to an appropriation and sufficient approvable applications, 
     to enter into commitments to guarantee notes and obligations 
     with an aggregate principal amount of $400M for each of FYs 
     1997-2001.
       (b) Authorization of Appropriations for Credit Subsidy. 
     Authorizes $40M for each of FYs 1997-2001 to be appropriated 
     to cover the cost of guarantees under this title.
       (c) Aggregate Outstanding Limitation. Requires that the 
     total amount of outstanding obligations guaranteed on an 
     cumulative basis by HUD under this title not at any time 
     exceed $2B or such higher amounts as may be authorized to be 
     appropriated for any FY.
       (d) Fiscal Year Limitations on Tribes. Requires HUD to 
     monitor the use of guarantees. Authorizes HUD, if 50% of 
     aggregate guarantee under subsection (c) has been committed, 
     to (1) impose a $50M limit on the amount that a tribe 
     receives in any FY, and (2) request legislation increasing 
     the aggregate limitation.
       Sec. 606. Effective Date.
       Makes this title take effect on the date of enactment of 
     this act.


        title vii--other housing assistance for native americans

       Sec. 701. Loan Guarantees for Indian Housing.
       (a) Definition of Eligible Borrower to Include Indian 
     Tribes. Expands current description of eligible borrowers 
     (Indian families or IHAs) to include Indian tribes, amending 
     Sec. Sec. 184(a) & (b)(1).
       (b) Need for Loan Guarantee. Expands the basis for need of 
     loan guarantees from the unique status of Indian trust lands 
     to the unique status of Indian lands or as a result of lack 
     of access to private financial markets, amending Sec. 184(a)
       (c) IHP Requirement. Adds a requirement that eligible 
     housing for loan guarantees be under the jurisdiction of an 
     Indian tribe for which an Indian housing plan has been 
     submitted and approved under Sec. Sec. 102 and 103 and that 
     provides for the use of loan guarantees, amending 
     Sec. 184(b)(2)
       (d) Lender Option to Obtain Payment Upon Default Without 
     Foreclosure. Simplifies the foreclosure/assignment option in 
     the case of a defaulted mortgage. HUD continues to determine 
     the eligibility of a defaulted mortgage for assignment, 
     amending Sec. 184(h)
       (e) Limitation on Mortgagee Authority. Adds mortgagee to 
     provisions on limitations on liquidation that currently apply 
     to the Secretary. Changes current reference to tribal 
     allotted or trust land to restricted Indian land, amending 
     Sec. 184(h)
       (f) Limitation on Outstanding Aggregate Principal Amount. 
     Authorizes HUD to enter into commitments to guarantee loans 
     under Sec. 184 for each of FYs 1997-2001 with an aggregate 
     outstanding principal note exceeding $400M for each such 
     fiscal year, amending Sec. 184(i)(5)(C)
       (g) Authorization of Appropriations for Guarantee Fund. 
     Authorizes $30M for each of FYs 1997-2001 to be appropriated 
     to the Guarantee Fund, amending Sec. 184(i)(7)
       (h) Definitions. Changes made to the following terms:
       (1) ``Indian area'': Expands the definition to include 
     areas within which an Indian tribe (current law covers only 
     an IHA) is authorized to provide housing.
       (2) ``Indian housing authority'': Expands definition to 
     include entities authorized to assist in the development or 
     operation of housing subject to Sec. 184 (current law covers 
     only low-income housing for Indians), and tribally designated 
     housing entities under this act.
       (3) ``tribe or Indian tribe'': Extensive differences from 
     current law including the addition of references to the 
     Alaska Native Claims Settlement Act, and the Indian Self-
     Determination and Education Assistance Act of 1975, amending 
     Sec. 184(k)
       (i) Principal Obligation Amounts. Provides that loans shall 
     involve a principal obligation not exceeding 97.75% of the 
     appraised value of the property as of the date the loan is 
     accepted for guarantee (or 98.75% if the value of the 
     property is $50,000 or less), amending Sec. 184(b)(5)(C)
       (j) Availability of Amounts. Eliminates the limitations on 
     the use of monies appropriated in any one fiscal year to that 
     specific year and instead provides that amounts are available 
     until expended, amending Sec. 184(i)(5)
       (k) GNMA Authority. Adds loans guaranteed under Sec. 184 to 
     the list of loans that GNMA may include under its mortgage-
     backed securities program, amending Sec. 306(g) of FNMA 
     Charter Act
       Sec. 702. 50-Year Leasehold Interest in Trust or Restricted 
     Lands for Housing Purposes.
       (a) Authority to Lease. Authorizes any restricted Indian 
     lands, whether tribally or individually owned, to be leased 
     by the Indian owners, with the approval of the DOI, for 
     residential purposes.
       (b) Term. Requires each lease to be for a term up to 50 
     years.
       (c) Rule of Construction. Provides that Sec. 702 may not be 
     construed to repeal, limit, or affect any authority to lease 
     any restricted Indian lands that is conferred by or pursuant 
     to any other provision of law or provides for leases 
     exceeding 50 years.
       (d) Self-Implementation. Clarifies that this section is 
     intended to be self-implementing and shall not require the 
     issuance of any rule, regulation, or order to take effect.
       Sec. 703. Training and Technical Assistance.
       Authorizes such sums as may be appropriated for each of FYs 
     1997-2001 for assistance for a national organization 
     representing Native American housing interests for providing 
     training and technical assistance to IHAs and tribally 
     designated housing entities.
       Sec. 704. Public and Assisted Housing Drug Elimination Act 
     of 1990.
       Amends the Public and Assisted Housing Drug Elimination Act 
     of 1990 to replace the term ``Indian Housing Authorities'' 
     with ``tribally designated housing entities'' and to make 
     other changes necessary to continue to provide funds through 
     this program.
       Sec. 704. Effective Date.
       Makes this title effective upon the enactment of this act.

  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. LaTourette). The question is on the 
motion offered by the gentleman from New York [Mr. Lazio] that the 
House suspend the rules and pass the bill, H.R. 3219, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof)

[[Page H11622]]

the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________