[Congressional Record Volume 143, Number 140 (Thursday, October 9, 1997)]
[Senate]
[Pages S10789-S10791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 1280. A bill to provide technical corrections to the Native 
American Housing Assistance and Self-Determination Act of 1996, to 
improve the delivery of housing assistance to Indian tribes in a manner 
that recognizes the right of tribal self-governance, and for other 
purposes; to the Committee on Indian Affairs.


   THE NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT 
                           AMENDMENTS OF 1997

  Mr. CAMPBELL. Mr. President, in 1996 the Congress enacted historic 
legislation involving the financing, construction, and maintenance of 
housing for Indian people. With the enactment of the Native American 
Housing Assistance and Self-Determination Act of 1996 (NAHASDA), Indian 
housing is no longer solely in the province of the Department of 
Housing and Urban Development (HUD).
  With NAHASDA tribes have the opportunity to develop and implement 
housing plans that meet their needs and values, and can do so in a way 
that is more efficient. I am hopeful that the success achieved by 
tribes participating in the Indian Self-Determination and Education Act 
and the Self- Governance Act programs can be duplicated in the housing 
arena with the implementation of NAHASDA.
  The Act requires that funds for Indian housing be provided to Indian 
tribes in block grants with monitoring and oversight appropriately 
provided by HUD. By empowering the tribes themselves and decreasing 
tribal reliance on the federal bureaucracy, this Act is consistent with 
principles of tribal self-determination and self-sufficiency that have 
been the hallmark of federal Indian policy for nearly thirty years.
  By the terms of the Act, NAHASDA becomes effective October 1, 1997. 
This will mean sweeping changes in the way housing is built and 
financed in Indian country. It is my hope that we can build on the 
NAHASDA model and encourage related initiatives such as banking, 
business development, and infrastructure construction.
  Even though NAHASDA has yet to be implemented, both HUD and the 
tribes agree that there are sections in the Act that need 
clarification. The bill I am introducing, the ``Native American Housing 
Assistance and Self-Determination Act Amendments of 1997'', provides 
the required clarification and changes that will help tribes and HUD in 
achieving a smoother transition from the old housing regime to the new 
framework of NAHASDA.
  The proposed amendments contained in this bill are partly the result 
of a hearing held by the Committee on Indian Affairs in March, 1997, 
which focused on the management of Indian housing under the old HUD-
dominated regime.
  Tribal leaders, Indian housing experts, and federal officials 
testified about funding problems and other matters, including the 
proper level of oversight and monitoring. The focus of the hearing was 
constructive and with an eye toward encouraging a better managed and 
more efficient Indian housing system.
  After auditing Indian housing programs from around the nation, and 
after reviewing HUD's monitoring and enforcement provisions, HUD's 
Inspector General testified as to perceived problems in the old housing 
regime and the NAHASDA framework. The IG's testimony included her 
opinion that clarifications were needed in the

[[Page S10790]]

NAHASDA including minor changes to the Act's enforcement provisions.
  My goal as Chairman of the Committee on Indian Affairs is to ensure 
that housing funds are used properly and within the bounds permitted by 
law. I also want to ensure that, consistent with federal obligations to 
Indian tribes, tribal members are properly housed and living in decent 
conditions.
  I am confident that with the implementation of NAHASDA, tribes will 
be able to better design and implement their own housing plans and in 
the process will be able to provide better housing to their members. In 
making the transition from dominating the housing realm to monitoring 
the activities of the tribes, HUD needs guidance from the Committee as 
to its proper role and responsibilities under the Act.
  The Act, and the amendments I am proposing today, will go a long way 
in making sure that the management problems that were associated with 
the old, HUD-dominated housing system will not be part of NAHASDA.
  I ask unanimous consent that a copy of the bill be printed in the 
Record, and urge my colleagues to join me in enacting these reasonable 
amendments.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1280

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Native 
     American Housing Assistance and Self-Determination Act 
     Amendments of 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on waiver authority.
Sec. 3. Organizational capacity; assistance to families that are not 
              low-income.
Sec. 4. Elimination of waiver authority for small tribes.
Sec. 5. Expanded authority to review Indian housing plans.
Sec. 6. Oversight.
Sec. 7. Allocation formula.
Sec. 8. Hearing requirement.
Sec. 9. Performance agreement time limit.
Sec. 10. Block grants and guarantees not Federal subsidies for low-
              income housing credit.
Sec. 11. Technical and conforming amendments.

     SEC 2. RESTRICTION ON WAIVER AUTHORITY.

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

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

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

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

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

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

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

     SEC. 6. OVERSIGHT.

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

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

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

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

       ``(a) Requirements Under Chapter 75 of Title 31, United 
     States Code.--
       ``(1) In general.--An entity designated by an Indian tribe 
     as a housing entity shall be treated, for purposes of chapter 
     75 of title 31, United States Code, as a non-Federal entity 
     that is subject to the audit requirements that apply to non-
     Federal entities under that chapter.
       ``(2) Payment of costs.--
       ``(A) In general.--The Secretary may arrange for, and pay 
     the cost of, any audit required under paragraph (1).
       ``(B) Withholding of amounts.--If the Secretary pays for 
     the cost of an audit under subparagraph (A), the Secretary 
     may withhold, from the assistance otherwise payable under 
     this Act, an amount sufficient to pay for the reasonable 
     costs of conducting an audit that meets the applicable 
     requirements of chapter 75 of title 31, United States Code, 
     including, if appropriate, the reasonable costs of accounting 
     services necessary to ensure that the books and records of 
     the entity referred to in paragraph (1) are in such condition 
     as is necessary to carry out the audit.
       ``(b) Additional Reviews and Audits.--
       ``(1) In general.--In addition to any audit under 
     subsection (a)(1), to the extent the Secretary determines 
     such action to be appropriate, the Secretary may conduct an 
     audit of a recipient in order to--
       ``(A) determine whether the recipient--
       ``(i) has carried out--

       ``(I) eligible activities in a timely manner; and
       ``(II) eligible activities and certification in accordance 
     with this Act and other applicable law;

       ``(ii) has a continuing capacity to carry out eligible 
     activities in a timely manner; and
       ``(iii) is in compliance with the Indian housing plan of 
     the recipient; and
       ``(B) verify the accuracy of information contained in any 
     performance report submitted by the recipient under section 
     404.
       ``(2) Onsite visits.--To the extent practicable, the 
     reviews and audits conducted under this subsection shall 
     include onsite visits by the appropriate official of the 
     Department of Housing and Human Development.
       ``(c) Review of Reports.--
       ``(1) In general.--The Secretary shall provide each 
     recipient that is the subject of a report made by the 
     Secretary under this section notice that the recipient may 
     review and comment on the report during a period of not less 
     than 30 days after the date on which notice is issued under 
     this paragraph.
       ``(2) Public availability.--After taking into consideration 
     any comments of the recipient under paragraph (1), the 
     Secretary--
       ``(A) may revise the report; and
       ``(B) not later than 30 days after the date on which those 
     comments are received, shall make the comments and the report 
     (with any revisions made under subparagraph (A)) readily 
     available to the public.
       ``(d) Effect of Reviews.--Subject to section 401(a), after 
     reviewing the reports and audits relating to a recipient that 
     are submitted to the Secretary under this section, the 
     Secretary may adjust the amount of a grant made to a 
     recipient under this Act in accordance with the findings of 
     the Secretary with respect to those reports and audits.''.

     SEC. 7. ALLOCATION FORMULA.

       Section 302(d)(1) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4152(d)(1)) is 
     amended--
       (1) by striking ``The formula,'' and inserting the 
     following:
       ``(A) In general.--Except with respect to an Indian tribe 
     described in subparagraph (B), the formula''; and
       (2) by adding at the end the following:
       ``(B) Certain indian tribes.--With respect to fiscal year 
     1998 and each fiscal year thereafter, with respect to any 
     Indian tribe having an Indian housing authority that owns or 
     operates fewer than 250 public housing units, the formula 
     under subparagraph (A) shall provide that the amount provided 
     for a fiscal year in which the total amount made available 
     for assistance under this Act is equal to or greater than the 
     amount made available for fiscal year 1996 for assistance for 
     the operation and modernization of the public housing 
     referred to in subparagraph (A), the amount provided to that 
     Indian tribe as modernization assistance shall be equal to 
     the average annual amount of funds provided to the Indian 
     tribe (other than funds provided as emergency assistance) 
     under the assistance program under section 14 of the

[[Page S10791]]

     United States Housing Act of 1937 (42 U.S.C. 1437l) for the 
     period beginning with fiscal year 1992 and ending with fiscal 
     year 1997.''.

     SEC. 8. HEARING REQUIREMENT.

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

     SEC. 9. PERFORMANCE AGREEMENT TIME LIMIT.

       Section 401(b) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4161(b)) is 
     amended--
       (1) by striking ``If the Secretary'' and inserting the 
     following:
       ``(1) In general.--If the Secretary'';
       (2) by striking ``(1) is not'' and inserting the following:
       ``(A) is not'';
       (3) by striking ``(2) is a result'' and inserting the 
     following:
       ``(B) is a result:
       (4) in the flush material following paragraph (1)(B), as 
     redesignated by paragraph (3) of this section--
       (A) by adjusting the margin 2 ems to the right; and
       (B) by inserting before the period at the end the 
     following: ``, if the recipient enters into a performance 
     agreement with the Secretary that specifies the compliance 
     objectives that the recipient will be required to achieve by 
     the termination date of the performance agreement''; and
       (5) by adding at the end the following:
       ``(2) Performance agreement.--The period of a performance 
     agreement described in paragraph (1) shall be for 1 year.
       ``(3) Review.--Upon the termination of a performance 
     agreement entered into under paragraph (1), the Secretary 
     shall review the performance of the recipient that is a party 
     to the agreement.
       ``(4) Effect of review.--If, on the basis of a review under 
     paragraph (3), the Secretary determines that the recipient--
       ``(A) has made a good faith effort to meet the compliance 
     objectives specified in the agreement, the Secretary may 
     enter into an additional performance agreement for the period 
     specified in paragraph (2); and
       ``(B) has failed to make a good faith effort to meet 
     applicable compliance objectives, the Secretary shall 
     determine the recipient to have failed to comply 
     substantially with this Act, and the recipient shall be 
     subject to an action under subsection (a).''.

     SEC. 10. BLOCK GRANTS AND GUARANTEES NOT FEDERAL SUBSIDIES 
                   FOR LOW-INCOME HOUSING CREDIT.

       (a) In General.--Subparagraph (E) of section 42(i)(2) of 
     the Internal Revenue Code of 1986 (relating to determination 
     of whether building is federally subsidized) is amended to 
     read as follows:
       ``(E) Buildings receiving home assistance or native 
     american housing assistance.--
       ``(i) In general.--

       ``(I) Inapplicability.--Assistance provided under the HOME 
     Investment Partnerships Act or the Native American Housing 
     Assistance and Self-Determination Act of 1996 as in effect on 
     the day before the date of enactment of the Native American 
     Housing Assistance and Self-Determination Act Amendments of 
     1997 with respect to any building shall not be taken into 
     account under subparagraph (D) if 40 percent or more of the 
     residential units in the building are occupied by individuals 
     whose income is 50 percent or less of the area median gross 
     income.
       ``(II) Applicability of other law.--Subsection (d)(5)(C) 
     does not apply to any building to which subclause (I) 
     applies.

       ``(ii) Special rule for certain high-cost housing areas.--
     In the case of a building located in a city described in 
     section 142(d)(6), clause (i) shall be applied by 
     substituting `25 percent' for `40 percent'.''.
       (b) Applicability.--The amendment made by this section 
     shall apply to determinations made under section 42(i)(2) of 
     the Internal Revenue Code after the date of enactment of this 
     Act.

     SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

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

``209. Noncompliance with affordable housing requirement.''.

       (b) Authorization of Appropriations.--Section 108 of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4117) is amended to read as follows:

     ``SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated for each of 
     fiscal years 1998 through 2001--
       ``(1) to provide assistance under this title for 
     emergencies and disasters, as determined by the Secretary, 
     $10,000,000; and
       ``(2) such sums as may be necessary to otherwise provide 
     grants under this title.''.
       (c) Certification of Compliance With Subsidy Layering 
     Requirements.--Section 206 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4136) is repealed.
       (d) Terminations.--Section 502(a) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4181(a)) is amended by adding at the end the 
     following: ``Any housing that is the subject of a contract 
     for tenant-based assistance between the Secretary and an 
     Indian housing authority that is terminated under this 
     section shall, for the following fiscal year and each fiscal 
     year thereafter be considered to be a dwelling unit under 
     section 302(b)(1).''.
                                 ______