[Congressional Record Volume 144, Number 148 (Friday, October 16, 1998)]
[Senate]
[Pages S12660-S12668]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             NATIVE HAWAIIAN HOUSING ASSISTANCE ACT OF 1998

  Mr. COCHRAN. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of calendar No. 713, S. 109.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 109) to provide Federal housing assistance to 
     Native Hawaiians.

  There being no objection, the Senate proceeded to consider the bill, 
which

[[Page S12661]]

had been reported from the Committee on Indian Affairs, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Native American Housing 
     Assistance and Self-Determination Amendments of 1998''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the United States has undertaken a responsibility to 
     promote the general welfare of the United States by--
       (A) employing its resources to remedy the unsafe and 
     unsanitary housing conditions and the acute shortage of 
     decent, safe, and sanitary dwellings for families of lower 
     income; and
       (B) developing effective partnerships with governmental and 
     private entities to accomplish the objectives referred to in 
     subparagraph (A);
       (2) pursuant to the provisions of the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108 et seq.), the United 
     States set aside 200,000 acres of land in the Federal 
     territory that later became the State of Hawaii in order to 
     establish a homeland for the native people of Hawaii--Native 
     Hawaiians;
       (3) despite the intent of Congress in 1920 to address the 
     housing needs of Native Hawaiians through the enactment of 
     the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et 
     seq.), some agencies of the Federal Government have taken the 
     legal position that subsequently enacted Federal housing laws 
     designed to address the housing needs of all eligible 
     families in the United States could not be extended to 
     address the needs for housing and infrastructure development 
     on Hawaiian home lands (as that term is defined in section 
     801 of the Native American Housing Assistance and Self-
     Determination Act of 1996, as added by section 3 of this Act) 
     with the result that otherwise eligible Native Hawaiians 
     residing on the Hawaiian home lands have been foreclosed from 
     participating in Federal housing assistance programs 
     available to all other eligible families in the United 
     States;
       (4) although Federal housing assistance programs have been 
     administered on a racially neutral basis in the State of 
     Hawaii, Native Hawaiians continue to have the greatest unmet 
     need for housing and the highest rates of overcrowding in the 
     United States;
       (5) among the Native American population of the United 
     States, Native Hawaiians experience the highest percentage of 
     housing problems in the United States, as the percentage--
       (A) of housing problems in the Native Hawaiian population 
     is 49 percent, as compared to--
       (i) 44 percent for American Indian and Alaska Native 
     households in Indian country; and
       (ii) 27 percent for all other households in the United 
     States; and
       (B) overcrowding in the Native Hawaiian population is 36 
     percent as compared to 3 percent for all other households in 
     the United States;
       (6) among the Native Hawaiian population, the needs of 
     Native Hawaiians, as that term is defined in section 801 of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996, as added by section 3 of this Act, eligible to 
     reside on the Hawaiian Home Lands are the most severe, as--
       (A) the percentage of overcrowding in Native Hawaiian 
     households on the Hawaiian Home Lands is 36 percent; and
       (B) approximately 13,000 Native Hawaiians, which constitute 
     95 percent of the Native Hawaiians who are eligible to reside 
     on the Hawaiian Home Lands, are in need of housing;
       (7) applying the Department of Housing and Urban 
     Development guidelines--
       (A) 70.8 percent of Native Hawaiians who either reside or 
     who are eligible to reside on the Hawaiian Home Lands have 
     incomes that fall below the median family income; and
       (B) 50 percent of Native Hawaiians who either reside or who 
     are eligible to reside on the Hawaiian Home Lands have 
     incomes below 30 percent of the median family income; and
       (8) \1/3\ of those Native Hawaiians who are eligible to 
     reside on the Hawaiian Home Lands pay more than 30 percent of 
     their income for shelter, and \1/2\ of those Native Hawaiians 
     face overcrowding;
       (9) the extraordinarily severe housing needs of Native 
     Hawaiians demonstrate that Native Hawaiians who either reside 
     on, or are eligible to reside on, Hawaiian Home Lands have 
     been denied equal access to Federal low-income housing 
     assistance programs available to other qualified residents of 
     the United States, and that a more effective means of 
     addressing their housing needs must be authorized;
       (10) consistent with the recommendations of the National 
     Commission on American Indian, Alaska Native, and Native 
     Hawaiian Housing, and in order to address the continuing 
     prevalence of extraordinarily severe housing needs among 
     Native Hawaiians who either reside or are eligible to reside 
     on the Hawaiian Home Lands, Congress finds it necessary to 
     extend the Federal low-income housing assistance available to 
     American Indians and Alaska Natives under the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 et seq.) to those Native Hawaiians;
       (11) under the treaty-making power of the United States, 
     Congress had the authority to confirm a treaty between the 
     United States and the government that represented the 
     Hawaiian people, and under clause 3 of section 8 of article I 
     of the Constitution, the authority of Congress to address 
     matters affecting the indigenous peoples of the United States 
     includes the authority to address matters affecting Native 
     Hawaiians;
       (12) through treaties, Federal statutes, and rulings of the 
     Federal courts, the United States has recognized and 
     reaffirmed that--
       (A) the political status of Native Hawaiians is comparable 
     to that of American Indians and Alaska Natives; and
       (B) the aboriginal, indigenous people of the United States 
     have--
       (i) a continuing right to autonomy in their internal 
     affairs; and
       (ii) an ongoing right of self-determination and self-
     governance that has never been extinguished;
       (13) the political relationship between the United States 
     and the Native Hawaiian people has been recognized and 
     reaffirmed by the United States as evidenced by the inclusion 
     of Native Hawaiians in--
       (A) the Native American Programs Act of 1974 (42 U.S.C. 
     2291 et seq.);
       (B) the American Indian Religious Freedom Act (42 U.S.C. 
     1996 et seq.);
       (C) the National Museum of the American Indian Act (20 
     U.S.C. 80q et seq.);
       (D) the Native American Graves Protection and Repatriation 
     Act (25 U.S.C. 3001 et seq.);
       (E) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       (F) the Native American Languages Act of 1992 (106 Stat. 
     3434);
       (G) the American Indian, Alaska Native and Native Hawaiian 
     Culture and Arts Development Act (20 U.S.C. 4401 et seq.);
       (H) the Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.); and
       (I) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.); and
       (14) in the area of housing, the United States has 
     recognized and reaffirmed the political relationship with the 
     Native Hawaiian people through--
       (A) the enactment of the Hawaiian Homes Commission Act, 
     1920 (42 Stat. 108 et seq.), which set aside approximately 
     200,000 acres of public lands that became known as Hawaiian 
     Home Lands in the Territory of Hawaii that had been ceded to 
     the United States for homesteading by Native Hawaiians in 
     order to rehabilitate a landless and dying people;
       (B) the enactment of the Act entitled ``An Act to provide 
     for the admission of the State of Hawaii into the Union'', 
     approved March 18, 1959 (73 Stat. 4)--
       (i) by ceding to the State of Hawaii title to the public 
     lands formerly held by the United States, and mandating that 
     those lands be held in public trust, for the betterment of 
     the conditions of Native Hawaiians, as that term is defined 
     in section 801(15) of the Native American Housing Assistance 
     and Self-Determination Act of 1996, as added by section 3 of 
     this Act; and
       (ii) by transferring what the United States considered to 
     be a trust responsibility for the administration of Hawaiian 
     Home Lands to the State of Hawaii, but retaining the 
     authority to enforce the trust, including the exclusive right 
     of the United States to consent to any actions affecting the 
     lands which comprise the corpus of the trust and any 
     amendments to the Hawaiian Homes Commission Act, 1920 (42 
     Stat. 108 et seq.), enacted by the legislature of the State 
     of Hawaii affecting the rights of beneficiaries under the 
     Act;
       (C) the authorization of mortgage loans insured by the 
     Federal Housing Administration for the purchase, 
     construction, or refinancing of homes on Hawaiian Home Lands 
     under the Act of June 27, 1934 (commonly referred to as the 
     ``National Housing Act'' (42 Stat. 1246 et seq., chapter 847; 
     12 U.S.C. 1701 et seq.));
       (D) authorizing Native Hawaiian representation on the 
     National Commission on American Indian, Alaska Native, and 
     Native Hawaiian Housing under Public Law 101-235;
       (E) the inclusion of Native Hawaiians in the definition 
     under section 3764 of title 38, United States Code, 
     applicable to subchapter V of chapter 37 of title 38, United 
     States Code (relating to a housing loan program for Native 
     American veterans); and
       (F) the enactment of the Hawaiian Home Lands Recovery Act 
     (109 Stat. 357; 48 U.S.C. 491, note prec.) which establishes 
     a process for the conveyance of Federal lands to the 
     Department of Hawaiian Homes Lands that are equivalent in 
     value to lands acquired by the United States from the 
     Hawaiian Home Lands inventory.

     SEC. 3. HOUSING ASSISTANCE.

       The Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4101 et seq.) is amended 
     by adding at the end the following:
         ``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

     ``SEC. 801. DEFINITIONS.

       ``In this title:
       ``(1) Department of hawaiian home lands; department.--The 
     term `Department of Hawaiian Home Lands' or `Department' 
     means the agency or department of the government of the State 
     of Hawaii that is responsible for the administration of the 
     Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).
       ``(2) Director.--The term `Director' means the Director of 
     the Department of Hawaiian Home Lands.
       ``(3) Elderly families; near-elderly families.--
       ``(A) In general.--The term `elderly family' or `near-
     elderly family' means a family whose head (or his or her 
     spouse), or whose sole member, is--
       ``(i) for an elderly family, an elderly person; or
       ``(ii) for a near-elderly family, a near-elderly person.
       ``(B) Certain families included.--The term `elderly family' 
     or `near-elderly family' includes--
       ``(i) 2 or more elderly persons or near-elderly persons, as 
     the case may be, living together; and
       ``(ii) 1 or more persons described in clause (i) living 
     with 1 or more persons determined under the housing plan to 
     be essential to their care or well-being.
       ``(4) Hawaiian home lands.--The term `Hawaiian Home Lands' 
     means lands that--
       ``(A) have the status as Hawaiian home lands under section 
     204 of the Hawaiian Homes Commission Act (42 Stat. 110); or

[[Page S12662]]

       ``(B) are acquired pursuant to that Act.
       ``(5) Housing area.--The term `housing area' means an area 
     of Hawaiian Home Lands with respect to which the Department 
     of Hawaiian Home Lands is authorized to provide assistance 
     for affordable housing under this Act.
       ``(6) Housing entity.--The term `housing entity' means the 
     Department of Hawaiian Home Lands.
       ``(7) Housing plan.--The term `housing plan' means a plan 
     developed by the Department of Hawaiian Home Lands.
       ``(8) Median income.--The term `median income' means, with 
     respect to an area that is a Hawaiian housing area, the 
     greater of--
       ``(A) the median income for the Hawaiian housing area, 
     which shall be determined by the Secretary; or
       ``(B) the median income for the State of Hawaii.
       ``(9) Native hawaiian.--The term `Native Hawaiian' has the 
     meaning given the term `Native Hawaiian' in section 201 of 
     the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et 
     seq.).

     ``SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING ACTIVITIES.

       ``(a) Grant Authority.--For each fiscal year, the Secretary 
     shall (to the extent amounts are made available to carry out 
     this title) make a grant under this title to the Department 
     of Hawaiian Home Lands to carry out affordable housing 
     activities for Native Hawaiian families on or near Hawaiian 
     Home Lands.
       ``(b) Plan Requirement.--
       ``(1) In general.--The Secretary may make a grant under 
     this title to the Department of Hawaiian Home Lands for a 
     fiscal year only if--
       ``(A) the Director has submitted to the Secretary a housing 
     plan for that fiscal year; and
       ``(B) the Secretary has determined under section 804 that 
     the housing plan complies with the requirements of section 
     803.
       ``(2) Waiver.--The Secretary may waive the applicability of 
     the requirements under paragraph (1), in part, if the 
     Secretary finds that the Department of Hawaiian Home Lands 
     has not complied or cannot comply with those requirements due 
     to circumstances beyond the control of the Department of 
     Hawaiian Home Lands.
       ``(c) Use of Affordable Housing Activities Under Plan.--
     Except as provided in subsection (e), amounts provided under 
     a grant under this section may be used only for affordable 
     housing activities under this title that are consistent with 
     a housing plan approved under section 804.
       ``(d) Administrative Expenses.--
       ``(1) In general.--The Secretary shall, by regulation, 
     authorize the Department of Hawaiian Home Lands to use a 
     percentage of any grant amounts received under this title for 
     any reasonable administrative and planning expenses of the 
     Department relating to carrying out this title and activities 
     assisted with those amounts.
       ``(2) Administrative and planning expenses.--The 
     administrative and planning expenses referred to in paragraph 
     (1) include--
       ``(A) costs for salaries of individuals engaged in 
     administering and managing affordable housing activities 
     assisted with grant amounts provided under this title; and
       ``(B) expenses incurred in preparing a housing plan under 
     section 803.
       ``(e) Public-Private Partnerships.--The Director shall make 
     all reasonable efforts, consistent with the purposes of this 
     title, to maximize participation by the private sector, 
     including nonprofit organizations and for-profit entities, in 
     implementing a housing plan that has been approved by the 
     Secretary under section 803.
       ``(f) Applicability of Other Provisions.--
       ``(1) In general.--The Secretary shall be guided by the 
     relevant program requirements of titles I, II, and IV in the 
     implementation of housing assistance programs for Native 
     Hawaiians under this title.
       ``(2) Exception.--The Secretary may make exceptions to, or 
     modifications of, program requirements for Native American 
     housing assistance set forth in titles I, II, and IV as 
     necessary and appropriate to meet the unique situation and 
     housing needs of Native Hawaiians.

     ``SEC. 803. HOUSING PLAN.

       ``(a) Plan Submission.--The Secretary shall--
       ``(1) require the Director to submit a housing plan under 
     this section for each fiscal year; and
       ``(2) provide for the review of each plan submitted under 
     paragraph (1).
       ``(b) 5-Year Plan.--Each housing plan under this section 
     shall--
       ``(1) be in a form prescribed by the Secretary; and
       ``(2) contain, with respect to the 5-year period beginning 
     with the fiscal year for which the plan is submitted, the 
     following information:
       ``(A) Mission statement.--A general statement of the 
     mission of the Department of Hawaiian Home Lands to serve the 
     needs of the low-income families to be served by the 
     Department.
       ``(B) Goal and objectives.--A statement of the goals and 
     objectives of the Department of Hawaiian Home Lands to enable 
     the Department to serve the needs identified in subparagraph 
     (A) during the period.
       ``(C) Activities plans.--An overview of the activities 
     planned during the period including an analysis of the manner 
     in which the activities will enable the Department to meet 
     its mission, goals, and objectives.
       ``(c) 1-Year Plan.--A housing plan under this section 
     shall--
       ``(1) be in a form prescribed by the Secretary; and
       ``(2) contain the following information relating to the 
     fiscal year for which the assistance under this title is to 
     be made available:
       ``(A) Goals and objectives.--A statement of the goals and 
     objectives to be accomplished during the period covered by 
     the plan.
       ``(B) Statement of needs.--A statement of the housing needs 
     of the low-income families served by the Department and the 
     means by which those needs will be addressed during the 
     period covered by the plan, including--
       ``(i) a description of the estimated housing needs and the 
     need for assistance for the low-income families to be served 
     by the Department, including a description of the manner in 
     which the geographical distribution of assistance is 
     consistent with--

       ``(I) the geographical needs of those families; and
       ``(II) needs for various categories of housing assistance; 
     and

       ``(ii) a description of the estimated housing needs for all 
     families to be served by the Department.
       ``(C) Financial resources.--An operating budget for the 
     Department of Hawaiian Home Lands, in a form prescribed by 
     the Secretary, that includes--
       ``(i) an identification and a description of the financial 
     resources reasonably available to the Department to carry out 
     the purposes of this title, including an explanation of the 
     manner in which amounts made available will be used to 
     leverage additional resources; and
       ``(ii) the uses to which the resources described in clause 
     (i) will be committed, including--

       ``(I) eligible and required affordable housing activities; 
     and
       ``(II) administrative expenses.

       ``(D) Affordable housing resources.--A statement of the 
     affordable housing resources currently available at the time 
     of the submittal of the plan and to be made available during 
     the period covered by the plan, including--
       ``(i) a description of the significant characteristics of 
     the housing market in the State of Hawaii, including the 
     availability of housing from other public sources, private 
     market housing; and
       ``(ii) the manner in which the characteristics referred to 
     in clause (i) influence the decision of the Department of 
     Hawaiian Home Lands to use grant amounts to be provided under 
     this title for--

       ``(I) rental assistance;
       ``(II) the production of new units;
       ``(III) the acquisition of existing units; or
       ``(IV) the rehabilitation of units;

       ``(iii) a description of the structure, coordination, and 
     means of cooperation between the Department of Hawaiian Home 
     Lands and any other governmental entities in the development, 
     submission, or implementation of housing plans, including a 
     description of--

       ``(I) the involvement of private, public, and nonprofit 
     organizations and institutions;
       ``(II) the use of loan guarantees under section 184A of the 
     Housing and Community Development Act of 1992; and
       ``(III) other housing assistance provided by the United 
     States, including loans, grants, and mortgage insurance;

       ``(iv) a description of the manner in which the plan will 
     address the needs identified pursuant to subparagraph (C);
       ``(v) a description of--

       ``(I) any existing or anticipated homeownership programs 
     and rental programs to be carried out during the period 
     covered by the plan; and

       ``(II) the requirements and assistance available under the 
     programs referred to in subclause (I);

       ``(vi) a description of--

       ``(I) any existing or anticipated housing rehabilitation 
     programs necessary to ensure the long-term viability of the 
     housing to be carried out during the period covered by the 
     plan; and
       ``(II) the requirements and assistance available under the 
     programs referred to in subclause (I);

       ``(vii) a description of--

       ``(I) all other existing or anticipated housing assistance 
     provided by the Department of Hawaiian Home Lands during the 
     period covered by the plan, including--

       ``(aa) transitional housing;
       ``(bb) homeless housing;
       ``(cc) college housing; and
       ``(dd) supportive services housing; and

       ``(II) the requirements and assistance available under such 
     programs;

       ``(viii)(I) a description of any housing to be demolished 
     or disposed of;
       ``(II) a timetable for that demolition or disposition; and
       ``(III) any other information required by the Secretary 
     with respect to that demolition or disposition;
       ``(ix) a description of the manner in which the Department 
     of Hawaiian Home Lands will coordinate with welfare agencies 
     in the State of Hawaii to ensure that residents of the 
     affordable housing will be provided with access to resources 
     to assist in obtaining employment and achieving self-
     sufficiency;
       ``(x) a description of the requirements established by the 
     Department of Hawaiian Home Lands to--

       ``(I) promote the safety of residents of the affordable 
     housing;
       ``(II) facilitate the undertaking of crime prevention 
     measures;
       ``(III) allow resident input and involvement, including the 
     establishment of resident organizations; and
       ``(IV) allow for the coordination of crime prevention 
     activities between the Department and local law enforcement 
     officials; and

       ``(xi) a description of the entities that will carry out 
     the activities under the plan, including the organizational 
     capacity and key personnel of the entities.
       ``(E) Certification of compliance.--Evidence of compliance 
     that shall include, as appropriate--
       ``(i) a certification that the Department of Hawaiian Home 
     Lands will comply with--

       ``(I) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.) or with title VIII of the Civil Rights Act of 
     1968 (42 U.S.C. 3601 et seq.)

[[Page S12663]]

     in carrying out this title, to the extent that such title is 
     applicable; and
       ``(II) other applicable Federal statutes;

       ``(ii) a certification that the Department will require 
     adequate insurance coverage for housing units that are owned 
     and operated or assisted with grant amounts provided under 
     this title, in compliance with such requirements as may be 
     established by the Secretary;
       ``(iii) a certification that policies are in effect and are 
     available for review by the Secretary and the public 
     governing the eligibility, admission, and occupancy of 
     families for housing assisted with grant amounts provided 
     under this title;
       ``(iv) a certification that policies are in effect and are 
     available for review by the Secretary and the public 
     governing rents charged, including the methods by which such 
     rents or homebuyer payments are determined, for housing 
     assisted with grant amounts provided under this title; and
       ``(v) a certification that policies are in effect and are 
     available for review by the Secretary and the public 
     governing the management and maintenance of housing assisted 
     with grant amounts provided under this title.
       ``(d) Applicability of Civil Rights Statutes.--
       ``(1) In general.--To the extent that the requirements of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) or of title VIII of the Civil Rights Act of 1968 (42 
     U.S.C. 3601 et seq.) apply to assistance provided under this 
     title, nothing in the requirements concerning discrimination 
     on the basis of race shall be construed to prevent the 
     provision of assistance under this title--
       ``(A) to the Department of Hawaiian Home Lands on the basis 
     that the Department served Native Hawaiians; or
       ``(B) to an eligible family on the basis that the family is 
     a Native Hawaiian family.
       ``(2) Civil rights.--Program eligibility under this title 
     may be restricted to Native Hawaiians. Subject to the 
     preceding sentence, no person may be discriminated against on 
     the basis of race, color, national origin, religion, sex, 
     familial status, or disability.
       ``(e) Use of Nonprofit Organizations.--As a condition of 
     receiving grant amounts under this title, the Department of 
     Hawaiian Home Lands shall, to the extent practicable, provide 
     for private nonprofit organizations experienced in the 
     planning and development of affordable housing for Native 
     Hawaiians to carry out affordable housing activities with 
     those grant amounts.

     ``SEC. 804. REVIEW OF PLANS.

       ``(a) Review and Notice.--
       ``(1) Review.--
       ``(A) In general.--The Secretary shall conduct a review of 
     a housing plan submitted to the Secretary under section 803 
     to ensure that the plan complies with the requirements of 
     that section.
       ``(B) Limitation.--The Secretary shall have the discretion 
     to review a plan referred to in subparagraph (A) only to the 
     extent that the Secretary considers that the review is 
     necessary.
       ``(2) Notice.--
       ``(A) In general.--Not later than 60 days after receiving a 
     plan under section 803, the Secretary shall notify the 
     Director of the Department of Hawaiian Home Lands whether the 
     plan complies with the requirements under that section.
       ``(B) Effect of failure of secretary to take action.--For 
     purposes of this title, if the Secretary does not notify the 
     Director, as required under this subsection and subsection 
     (b), upon the expiration of the 60-day period described in 
     subparagraph (A)--
       ``(i) the plan shall be considered to have been determined 
     to comply with the requirements under section 803; and
       ``(ii) the Director shall be considered to have been 
     notified of compliance.
       ``(b) Notice of Reasons for Determination of 
     Noncompliance.--If the Secretary determines that a plan 
     submitted under section 803 does not comply with the 
     requirements of that section, the Secretary shall specify in 
     the notice under subsection (a)--
       ``(1) the reasons for noncompliance; and
       ``(2) any modifications necessary for the plan to meet the 
     requirements of section 803.
       ``(c) Review.--
       ``(1) In general.--After the Director of the Department of 
     Hawaiian Home Lands submits a housing plan under section 803, 
     or any amendment or modification to the plan to the 
     Secretary, to the extent that the Secretary considers such 
     action to be necessary to make a determination under this 
     subsection, the Secretary shall review the plan (including 
     any amendments or modifications thereto) to determine whether 
     the contents of the plan--
       ``(A) set forth the information required by section 803 to 
     be contained in the housing plan;
       ``(B) are consistent with information and data available to 
     the Secretary; and
       ``(C) are not prohibited by or inconsistent with any 
     provision of this Act or any other applicable law.
       ``(2) Incomplete plans.--If the Secretary determines under 
     this subsection that any of the appropriate certifications 
     required under section 803(c)(2)(E) are not included in a 
     plan, the plan shall be considered to be incomplete.
       ``(d) Updates to Plan.--
       ``(1) In general.--Subject to paragraph (2), after a plan 
     under section 803 has been submitted for a fiscal year, the 
     Director of the Department of Hawaiian Home Lands may comply 
     with the provisions of that section for any succeeding fiscal 
     year (with respect to information included for the 5-year 
     period under section 803(b) or for the 1-year period under 
     section 803(c)) by submitting only such information regarding 
     such changes as may be necessary to update the plan 
     previously submitted.
       ``(2) Complete plans.--The Director shall submit a complete 
     plan under section 803 not later than 4 years after 
     submitting an initial plan under that section, and not less 
     frequently than every 4 years thereafter.
       ``(e) Effective Date.--This section and section 803 shall 
     take effect on the date provided by the Secretary pursuant to 
     section 807(a) to provide for timely submission and review of 
     the housing plan as necessary for the provision of assistance 
     under this title for fiscal year 2000.

     ``SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

       ``(a) Program Income.--
       ``(1) Authority to retain.--The Department of Hawaiian Home 
     Lands may retain any program income that is realized from any 
     grant amounts received by the Department under this title 
     if--
       ``(A) that income was realized after the initial 
     disbursement of the grant amounts received by the Department; 
     and
       ``(B) the Director agrees to use the program income for 
     affordable housing activities in accordance with the 
     provisions of this title.
       ``(2) Prohibition of reduction of grant.--The Secretary may 
     not reduce the grant amount for the Department of Hawaiian 
     Home Lands based solely on--
       ``(A) whether the Department retains program income under 
     paragraph (1); or
       ``(B) the amount of any such program income retained.
       ``(3) Exclusion of amounts.--The Secretary may, by 
     regulation, exclude from consideration as program income any 
     amounts determined to be so small that compliance with the 
     requirements of this subsection would create an unreasonable 
     administrative burden on the Department.
       ``(b) Labor Standards.--
       ``(1) In general.--Any contract or agreement for 
     assistance, sale, or lease pursuant to this title shall 
     contain--
       ``(A) a provision requiring that an amount not less than 
     the wages prevailing in the locality, as determined or 
     adopted (subsequent to a determination under applicable State 
     or local law) by the Secretary, shall be paid to all 
     architects, technical engineers, draftsmen, technicians 
     employed in the development and all maintenance, and laborers 
     and mechanics employed in the operation, of the affordable 
     housing project involved; and
       ``(B) a provision that an amount not less than the wages 
     prevailing in the locality, as predetermined by the Secretary 
     of Labor pursuant to the Act commonly known as the `Davis-
     Bacon Act' (46 Stat. 1494, chapter 411; 40 U.S.C. 276a et 
     seq.) shall be paid to all laborers and mechanics employed in 
     the development of the affordable housing involved.
       ``(2) Exceptions.--Paragraph (1) and provisions relating to 
     wages required under paragraph (1) in any contract or 
     agreement for assistance, sale, or lease under this title, 
     shall not apply to any individual who performs the services 
     for which the individual volunteered and who is not otherwise 
     employed at any time in the construction work and received no 
     compensation or is paid expenses, reasonable benefits, or a 
     nominal fee for those services.

     ``SEC. 806. ENVIRONMENTAL REVIEW.

       ``(a) In General.--
       ``(1) Release of funds.--
       ``(A) In general.--The Secretary may carry out the 
     alternative environmental protection procedures described in 
     subparagraph (B) in order to ensure--
       ``(i) that the policies of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other 
     provisions of law that further the purposes of such Act (as 
     specified in regulations issued by the Secretary) are most 
     effectively implemented in connection with the expenditure of 
     grant amounts provided under this title; and
       ``(ii) to the public undiminished protection of the 
     environment.
       ``(B) Alternative environmental protection procedure.--In 
     lieu of applying environmental protection procedures 
     otherwise applicable, the Secretary may by regulation provide 
     for the release of funds for specific projects to the 
     Department of Hawaiian Home Lands if the Director of the 
     Department assumes all of the responsibilities for 
     environmental review, decisionmaking, and action under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), and such other provisions of law as the regulations of 
     the Secretary specify, that would apply to the Secretary were 
     the Secretary to undertake those projects as Federal 
     projects.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall issue regulations to 
     carry out this section only after consultation with the 
     Council on Environmental Quality.
       ``(B) Contents.--The regulations issued under this 
     paragraph shall--
       ``(i) provide for the monitoring of the environmental 
     reviews performed under this section;
       ``(ii) in the discretion of the Secretary, facilitate 
     training for the performance of such reviews; and
       ``(iii) provide for the suspension or termination of the 
     assumption of responsibilities under this section.
       ``(3) Effect on assumed responsibility.--The duty of the 
     Secretary under paragraph (2)(B) shall not be construed to 
     limit or reduce any responsibility assumed by the Department 
     of Hawaiian Home Lands for grant amounts with respect to any 
     specific release of funds.
       ``(b) Procedure.--
       ``(1) In general.--The Secretary shall authorize the 
     release of funds subject to the procedures under this section 
     only if, not less than 15 days before that approval and 
     before any commitment of funds to such projects, the 
     Director of the Department of Hawaiian Home Lands submits 
     to the Secretary a request for such release accompanied by 
     a certification that meets the requirements of subsection 
     (c).

[[Page S12664]]

       ``(2) Effect of approval.--The approval of the Secretary of 
     a certification described in paragraph (1) shall be deemed to 
     satisfy the responsibilities of the Secretary under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) and such other provisions of law as the regulations of 
     the Secretary specify to the extent that those 
     responsibilities relate to the release of funds for projects 
     that are covered by that certification.
       ``(c) Certification.--A certification under the procedures 
     under this section shall--
       ``(1) be in a form acceptable to the Secretary;
       ``(2) be executed by the Director of the Department of 
     Hawaiian Home Lands;
       ``(3) specify that the Department of Hawaiian Home Lands 
     has fully carried out its responsibilities as described under 
     subsection (a); and
       ``(4) specify that the Director--
       ``(A) consents to assume the status of a responsible 
     Federal official under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.) and each provision of law 
     specified in regulations issued by the Secretary to the 
     extent that those laws apply by reason of subsection (a); and
       ``(B) is authorized and consents on behalf of the 
     Department of Hawaiian Home Lands and the Director accepts 
     the jurisdiction of the Federal courts for the purpose of 
     enforcement of the responsibilities of the Director of the 
     Department of Hawaiian Home Lands as such an official.

     ``SEC. 807. REGULATIONS.

       ``The Secretary shall issue final regulations necessary to 
     carry out this title not later than June 1, 1999.

     ``SEC. 808. EFFECTIVE DATE.

       ``Except as otherwise expressly provided in this title, 
     this title shall take effect on June 1, 1999.

     ``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

       ``(a) National Objectives and Eligible Families.--
       ``(1) Primary objective.--The national objectives of this 
     title are--
       ``(A) to assist and promote affordable housing activities 
     to develop, maintain, and operate affordable housing in safe 
     and healthy environments for occupancy by low-income Native 
     Hawaiian families;
       ``(B) to ensure better access to private mortgage markets 
     and to promote self-sufficiency of low-income Native Hawaiian 
     families;
       ``(C) to coordinate activities to provide housing for low-
     income Native Hawaiian families with Federal, State and local 
     activities to further economic and community development;
       ``(D) to plan for and integrate infrastructure resources on 
     the Hawaiian Home Lands with housing development; and
       ``(E) to--
       ``(i) promote the development of private capital markets; 
     and
       ``(ii) allow the markets referred to in clause (i) to 
     operate and grow, thereby benefiting Native Hawaiian 
     communities.
       ``(2) Eligible families.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), assistance for eligible housing activities under this 
     title shall be limited to low-income Native Hawaiian 
     families.
       ``(B) Exception to low-income requirement.--
       ``(i) In general.--The Director may provide assistance for 
     homeownership activities under--

       ``(I) section 810(b);
       ``(II) model activities under section 810(f); or
       ``(III) loan guarantee activities under section 184A of the 
     Housing and Community Development Act of 1992 to Native 
     Hawaiian families who are not low-income families, to the 
     extent that the Secretary approves the activities under that 
     section to address a need for housing for those families that 
     cannot be reasonably met without that assistance.

       ``(ii) Limitations.--The Secretary shall establish 
     limitations on the amount of assistance that may be provided 
     under this title for activities for families that are not 
     low-income families.
       ``(C) Other families.--Notwithstanding paragraph (1), the 
     Director may provide housing or housing assistance provided 
     through affordable housing activities assisted with grant 
     amounts under this title to a family that is not composed of 
     Native Hawaiians if--
       ``(i) the Department determines that the presence of the 
     family in the housing involved is essential to the well-being 
     of Native Hawaiian families; and
       ``(ii) the need for housing for the family cannot be 
     reasonably met without the assistance.
       ``(D) Preference.--
       ``(i) In general.--A housing plan submitted under section 
     803 may authorize a preference, for housing or housing 
     assistance provided through affordable housing activities 
     assisted with grant amounts provided under this title to be 
     provided, to the extent practicable, to families that are 
     eligible to reside on the Hawaiian Home Lands.
       ``(ii) Application.--In any case in which a housing plan 
     provides for preference described in clause (i), the Director 
     shall ensure that housing activities that are assisted with 
     grant amounts under this title are subject to that 
     preference.
       ``(E) Use of nonprofit organizations.--As a condition of 
     receiving grant amounts under this title, the Department of 
     Hawaiian Home Lands, shall to the extent practicable, provide 
     for private nonprofit organizations experienced in the 
     planning and development of affordable housing for Native 
     Hawaiians to carry out affordable housing activities with 
     those grant amounts.

     ``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

       ``(a) In General.--Affordable housing activities under this 
     section are activities conducted in accordance with the 
     requirements of section 811 to--
       ``(1) develop or to support affordable housing for rental 
     or homeownership; or
       ``(2) provide housing services with respect to affordable 
     housing, through the activities described in subsection (b).
       ``(b) Activities.--The activities described in this 
     subsection are the following:
       ``(1) Development.--The acquisition, new construction, 
     reconstruction, or moderate or substantial rehabilitation of 
     affordable housing, which may include--
       ``(A) real property acquisition;
       ``(B) site improvement;
       ``(C) the development of utilities and utility services;
       ``(D) conversion;
       ``(E) demolition;
       ``(F) financing;
       ``(G) administration and planning; and
       ``(H) other related activities.
       ``(2) Housing services.--The provision of housing-related 
     services for affordable housing, including--
       ``(A) housing counseling in connection with rental or 
     homeownership assistance;
       ``(B) the establishment and support of resident 
     organizations and resident management corporations;
       ``(C) energy auditing;
       ``(D) activities related to the provision of self-
     sufficiency and other services; and
       ``(E) other services related to assisting owners, tenants, 
     contractors, and other entities participating or seeking to 
     participate in other housing activities assisted pursuant to 
     this section.
       ``(3) Housing management services.--The provision of 
     management services for affordable housing, including--
       ``(A) the preparation of work specifications;
       ``(B) loan processing;
       ``(C) inspections;
       ``(D) tenant selection;
       ``(E) management of tenant-based rental assistance; and
       ``(F) management of affordable housing projects.
       ``(4) Crime prevention and safety activities.--The 
     provision of safety, security, and law enforcement measures 
     and activities appropriate to protect residents of affordable 
     housing from crime.
       ``(5) Model activities.--Housing activities under model 
     programs that are--
       ``(A) designed to carry out the purposes of this title; and
       ``(B) specifically approved by the Secretary as appropriate 
     for the purpose referred to in subparagraph (A).

     ``SEC. 811. PROGRAM REQUIREMENTS.

       ``(a) Rents.--
       ``(1) Establishment.--Subject to paragraph (2), as a 
     condition to receiving grant amounts under this title, the 
     Director shall develop written policies governing rents and 
     homebuyer payments charged for dwelling units assisted under 
     this title, including methods by which such rents and 
     homebuyer payments are determined.
       ``(2) Maximum rent.--In the case of any low-income family 
     residing in a dwelling unit assisted with grant amounts under 
     this title, the monthly rent or homebuyer payment (as 
     applicable) for that dwelling unit may not exceed 30 percent 
     of the monthly adjusted income of that family.
       ``(b) Maintenance and Efficient Operation.--
       ``(1) In general.--The Director shall, using amounts of any 
     grants received under this title, reserve and use for 
     operating under section 810 such amounts as may be necessary 
     to provide for the continued maintenance and efficient 
     operation of such housing.
       ``(2) Disposal of certain housing.--This subsection may not 
     be construed to prevent the Director, or any entity funded by 
     the Department, from demolishing or disposing of housing, 
     pursuant to regulations established by the Secretary.
       ``(c) Insurance Coverage.--As a condition to receiving 
     grant amounts under this title, the Director shall require 
     adequate insurance coverage for housing units that are owned 
     or operated or assisted with grant amounts provided under 
     this title.
       ``(d) Eligibility for Admission.--As a condition to 
     receiving grant amounts under this title, the Director shall 
     develop written policies governing the eligibility, 
     admission, and occupancy of families for housing assisted 
     with grant amounts provided under this title.
       ``(e) Management and Maintenance.--As a condition to 
     receiving grant amounts under this title, the Director shall 
     develop policies governing the management and maintenance of 
     housing assisted with grant amounts under this title.

     ``SEC. 812. TYPES OF INVESTMENTS.

       ``(a) In General.--Subject to section 811 and an applicable 
     housing plan approved under section 803, the Director shall 
     have--
       ``(1) the discretion to use grant amounts for affordable 
     housing activities through the use of--
       ``(A) equity investments;
       ``(B) interest-bearing loans or advances;
       ``(C) noninterest-bearing loans or advances;
       ``(D) interest subsidies;
       ``(E) the leveraging of private investments; or
       ``(F) any other form of assistance that the Secretary 
     determines to be consistent with the purposes of this title; 
     and
       ``(2) the right to establish the terms of assistance 
     provided with funds referred to in paragraph (1).
       ``(b) Investments.--The Director of the Department of 
     Hawaiian Home Lands may invest grant amounts for the purposes 
     of carrying out affordable housing activities in investment 
     securities and other obligations, as approved by the 
     Secretary.

     ``SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

       ``(a) In General.--Housing shall qualify for affordable 
     housing for purposes of this title only if--

[[Page S12665]]

       ``(1) each dwelling unit in the housing--
       ``(A) in the case of rental housing, is made available for 
     occupancy only by a family that is a low-income family at the 
     time of the initial occupancy of that family of that unit; 
     and
       ``(B) in the case of housing for homeownership, is made 
     available for purchase only by a family that is a low-income 
     family at the time of purchase; and
       ``(2) each dwelling unit in the housing will remain 
     affordable, according to binding commitments satisfactory to 
     the Secretary, for--
       ``(A) the remaining useful life of the property (as 
     determined by the Secretary) without regard to the term of 
     the mortgage or to transfer of ownership; or
       ``(B) such other period as the Secretary determines is the 
     longest feasible period of time consistent with sound 
     economics and the purposes of this title, except upon a 
     foreclosure by a lender (or upon other transfer in lieu of 
     foreclosure) if that action--
       ``(i) recognizes any contractual or legal rights of any 
     public agency, nonprofit sponsor, or other person or entity 
     to take an action that would--

       ``(I) avoid termination of low-income affordability, in the 
     case of foreclosure; or
       ``(II) transfer ownership in lieu of foreclosure; and

       ``(ii) is not for the purpose of avoiding low-income 
     affordability restrictions, as determined by the Secretary.
       ``(b) Exception.--Notwithstanding subsection (a), housing 
     assisted pursuant to section 809(a)(2)(B) shall be considered 
     affordable housing for purposes of this title.

      ``SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

       ``(a) Leases.--Except to the extent otherwise provided by 
     or inconsistent with the laws of the State of Hawaii, in 
     renting dwelling units in affordable housing assisted with 
     grant amounts provided under this title, the Director, owner, 
     or manager shall use leases that--
       ``(1) do not contain unreasonable terms and conditions;
       ``(2) require the Director, owner, or manager to maintain 
     the housing in compliance with applicable housing codes and 
     quality standards;
       ``(3) require the Director, owner, or manager to give 
     adequate written notice of termination of the lease, which 
     shall be the period of time required under applicable State 
     or local law;
       ``(4) specify that, with respect to any notice of eviction 
     or termination, notwithstanding any State or local law, a 
     resident shall be informed of the opportunity, before any 
     hearing or trial, to examine any relevant documents, record, 
     or regulations directly related to the eviction or 
     termination;
       ``(5) require that the Director, owner, or manager may not 
     terminate the tenancy, during the term of the lease, except 
     for serious or repeated violation of the terms and conditions 
     of the lease, violation of applicable Federal, State, or 
     local law, or for other good cause; and
       ``(6) provide that the Director, owner, and manager may 
     terminate the tenancy of a resident for any activity, engaged 
     in by the resident, any member of the household of the 
     resident, or any guest or other person under the control of 
     the resident, that--
       ``(A) threatens the health or safety of, or right to 
     peaceful enjoyment of the premises by, other residents or 
     employees of the Department, owner, or manager;
       ``(B) threatens the health or safety of, or right to 
     peaceful enjoyment of their premises by, persons residing in 
     the immediate vicinity of the premises; or
       ``(C) is criminal activity (including drug-related criminal 
     activity) on or off the premises.
       ``(b) Tenant or Homebuyer Selection.--As a condition to 
     receiving grant amounts under this title, the Director shall 
     adopt and use written tenant and homebuyer selection policies 
     and criteria that--
       ``(1) are consistent with the purpose of providing housing 
     for low-income families;
       ``(2) are reasonably related to program eligibility and the 
     ability of the applicant to perform the obligations of the 
     lease; and
       ``(3) provide for--
       ``(A) the selection of tenants and homebuyers from a 
     written waiting list in accordance with the policies and 
     goals set forth in an applicable housing plan approved under 
     section 803; and
       ``(B) the prompt notification in writing to any rejected 
     applicant of the grounds for that rejection.

     ``SEC. 815. REPAYMENT.

       ``If the Department of Hawaiian Home Lands uses grant 
     amounts to provide affordable housing under activities under 
     this title and, at any time during the useful life of the 
     housing, the housing does not comply with the requirement 
     under section 813(a)(2), the Secretary shall--
       ``(1) reduce future grant payments on behalf of the 
     Department by an amount equal to the grant amounts used for 
     that housing (under the authority of section 818(a)(1)(B)); 
     or
       ``(2) require repayment to the Secretary of any amount 
     equal to those grant amounts.

     ``SEC. 816. ANNUAL ALLOCATION.

       ``For each fiscal year, the Secretary shall allocate any 
     amounts made available for assistance under this title for 
     the fiscal year, in accordance with the formula established 
     pursuant to section 817 to the Department of Hawaiian Home 
     Lands if the Department complies with the requirements under 
     this title for a grant under this title.

     ``SEC. 817. ALLOCATION FORMULA.

       ``(a) Establishment.--The Secretary shall, by regulation 
     issued not later than the expiration of the 6-month period 
     beginning on the date of enactment of the Native American 
     Housing Assistance and Self-Determination Amendments of 1998, 
     in the manner provided under section 807, establish a formula 
     to provide for the allocation of amounts available for a 
     fiscal year for block grants under this title in accordance 
     with the requirements of this section.
       ``(b) Factors for Determination of Need.--The formula under 
     subsection (a) shall be based on factors that reflect the 
     needs for assistance for affordable housing activities, 
     including--
       ``(1) the number of low-income dwelling units owned or 
     operated at the time pursuant to a contract between the 
     Director and the Secretary;
       ``(2) the extent of poverty and economic distress and the 
     number of Native Hawaiian families eligible to reside on the 
     Hawaiian Home Lands; and
       ``(3) any other objectively measurable conditions that the 
     Secretary and the Director may specify.
       ``(c) Other Factors for Consideration.--In establishing the 
     formula under subsection (a), the Secretary shall consider 
     the relative administrative capacities of the Department of 
     Hawaiian Home Lands and other challenges faced by the 
     Department, including--
       ``(1) geographic distribution within Hawaiian Home Lands; 
     and
       ``(2) technical capacity.
       ``(d) Effective Date.--This section shall take effect on 
     the date of enactment of the Native American Housing 
     Assistance and Self-Determination Amendments of 1998.

     ``SEC. 818. REMEDIES FOR NONCOMPLIANCE.

       ``(a) Actions by Secretary Affecting Grant Amounts.--
       ``(1) In general.--Except as provided in subsection (b), if 
     the Secretary finds after reasonable notice and opportunity 
     for a hearing that the Department of Hawaiian Home Lands has 
     failed to comply substantially with any provision of this 
     title, the Secretary shall--
       ``(A) terminate payments under this title to the 
     Department;
       ``(B) reduce payments under this title to the Department by 
     an amount equal to the amount of such payments that were not 
     expended in accordance with this title; or
       ``(C) limit the availability of payments under this title 
     to programs, projects, or activities not affected by such 
     failure to comply.
       ``(2) Actions.--If the Secretary takes an action under 
     subparagraph (A), (B), or (C) of paragraph (1), the Secretary 
     shall continue that action until the Secretary determines 
     that the failure by the Department to comply with the 
     provision has been remedied by the Department and the 
     Department is in compliance with that provision.
       ``(b) Noncompliance Because of a Technical Incapacity.--The 
     Secretary may provide technical assistance for the 
     Department, either directly or indirectly, that is designed 
     to increase the capability and capacity of the Director of 
     the Department to administer assistance provided under this 
     title in compliance with the requirements under this title if 
     the Secretary makes a finding under subsection (a), but 
     determines that the failure of the Department to comply 
     substantially with the provisions of this title--
       ``(1) is not a pattern or practice of activities 
     constituting willful noncompliance; and
       ``(2) is a result of the limited capability or capacity of 
     the Department of Hawaiian Home Lands.
       ``(c) Referral for Civil Action.--
       ``(1) Authority.--In lieu of, or in addition to, any action 
     that the Secretary may take under subsection (a), if the 
     Secretary has reason to believe that the Department of 
     Hawaiian Home Lands has failed to comply substantially with 
     any provision of this title, the Secretary may refer the 
     matter to the Attorney General of the United States with a 
     recommendation that an appropriate civil action be 
     instituted.
       ``(2) Civil action.--Upon receiving a referral under 
     paragraph (1), the Attorney General may bring a civil action 
     in any United States district court of appropriate 
     jurisdiction for such relief as may be appropriate, including 
     an action--
       ``(A) to recover the amount of the assistance furnished 
     under this title that was not expended in accordance with 
     this title; or
       ``(B) for mandatory or injunctive relief.
       ``(d) Review.--
       ``(1) In general.--If the Director receives notice under 
     subsection (a) of the termination, reduction, or limitation 
     of payments under this Act, the Director--
       ``(A) may, not later than 60 days after receiving such 
     notice, file with the United States Court of Appeals for the 
     Ninth Circuit, or in the United States Court of Appeals for 
     the District of Columbia, a petition for review of the action 
     of the Secretary; and
       ``(B) upon the filing of any petition under subparagraph 
     (A), shall forthwith transmit copies of the petition to the 
     Secretary and the Attorney General of the United States, who 
     shall represent the Secretary in the litigation.
       ``(2) Procedure.--
       ``(A) In general.--The Secretary shall file in the court a 
     record of the proceeding on which the Secretary based the 
     action, as provided in section 2112 of title 28, United 
     States Code.
       ``(B) Objections.--No objection to the action of the 
     Secretary shall be considered by the court unless the 
     Department has registered the objection before the Secretary.
       ``(3) Disposition.--
       ``(A) Court proceedings.--
       ``(i) Jurisdiction of court.--The court shall have 
     jurisdiction to affirm or modify the action of the Secretary 
     or to set the action aside in whole or in part.
       ``(ii) Findings of fact.--If supported by substantial 
     evidence on the record considered as a whole, the findings of 
     fact by the Secretary shall be conclusive.
       ``(iii) Addition.--The court may order evidence, in 
     addition to the evidence submitted for review under this 
     subsection, to be taken by the Secretary, and to be made part 
     of the record.

[[Page S12666]]

       ``(B) Secretary.--
       ``(i) In general.--The Secretary, by reason of the 
     additional evidence referred to in subparagraph (A) and filed 
     with the court--

       ``(I) may--

       ``(aa) modify the findings of fact of the Secretary; or
       ``(bb) make new findings; and

       ``(II) shall file--

       ``(aa) such modified or new findings; and
       ``(bb) the recommendation of the Secretary, if any, for the 
     modification or setting aside of the original action of the 
     Secretary.
       ``(ii) Findings.--The findings referred to in clause 
     (i)(II)(bb) shall, with respect to a question of fact, be 
     considered to be conclusive if those findings are--

       ``(I) supported by substantial evidence on the record; and
       ``(II) considered as a whole.

       ``(4) Finality.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     upon the filing of the record under this subsection with the 
     court--
       ``(i) the jurisdiction of the court shall be exclusive; and
       ``(ii) the judgment of the court shall be final.
       ``(B) Review by supreme court.--A judgment under 
     subparagraph (A) shall be subject to review by the Supreme 
     Court of the United States upon writ of certiorari or 
     certification, as provided in section 1254 of title 28, 
     United States Code.

     ``SEC. 819. MONITORING OF COMPLIANCE.

       ``(a) Enforceable Agreements.--
       ``(1) In general.--The Director, through binding 
     contractual agreements with owners or other authorized 
     entities, shall ensure long-term compliance with the 
     provisions of this title.
       ``(2) Measures.--The measures referred to in paragraph (1) 
     shall provide for--
       ``(A) to the extent allowable by Federal and State law, the 
     enforcement of the provisions of this title by the Department 
     and the Secretary; and
       ``(B) remedies for breach of the provisions referred to in 
     paragraph (1).
       ``(b) Periodic Monitoring.--
       ``(1) In general.--Not less frequently than annually, the 
     Director shall review the activities conducted and housing 
     assisted under this title to assess compliance with the 
     requirements of this title.
       ``(2) Review.--Each review under paragraph (1) shall 
     include onsite inspection of housing to determine compliance 
     with applicable requirements.
       ``(3) Results.--The results of each review under paragraph 
     (1) shall be--
       ``(A) included in a performance report of the Director 
     submitted to the Secretary under section 820; and
       ``(B) made available to the public.
       ``(c) Performance Measures.--The Secretary shall establish 
     such performance measures as may be necessary to assess 
     compliance with the requirements of this title.

     ``SEC. 820. PERFORMANCE REPORTS.

       ``(a) Requirement.--For each fiscal year, the Director 
     shall--
       ``(1) review the progress the Department has made during 
     that fiscal year in carrying out the housing plan submitted 
     by the Department under section 803; and
       ``(2) submit a report to the Secretary (in a form 
     acceptable to the Secretary) describing the conclusions of 
     the review.
       ``(b) Content.--Each report submitted under this section 
     for a fiscal year shall--
       ``(1) describe the use of grant amounts provided to the 
     Department of Hawaiian Home Lands for that fiscal year;
       ``(2) assess the relationship of the use referred to in 
     paragraph (1) to the goals identified in the housing plan;
       ``(3) indicate the programmatic accomplishments of the 
     Department; and
       ``(4) describe the manner in which the Department would 
     change its housing plan submitted under section 803 as a 
     result of its experiences.
       ``(c) Submissions.--The Secretary shall--
       ``(1) establish a date for submission of each report under 
     this section;
       ``(2) review each such report; and
       ``(3) with respect to each such report, make 
     recommendations as the Secretary considers appropriate to 
     carry out the purposes of this title.
       ``(d) Public Availability.--
       ``(1) Comments by beneficiaries.--In preparing a report 
     under this section, the Director shall make the report 
     publicly available to the beneficiaries of the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108 et seq.) and give a 
     sufficient amount of time to permit those beneficiaries to 
     comment on that report before it is submitted to the 
     Secretary (in such manner and at such time as the Director 
     may determine).
       ``(2) Summary of comments.--The report shall include a 
     summary of any comments received by the Director from 
     beneficiaries under paragraph (1) regarding the program to 
     carry out the housing plan.

     ``SEC. 821. REVIEW AND AUDIT BY SECRETARY.

       ``(a) Annual Review.--
       ``(1) In general.--The Secretary shall, not less frequently 
     than on an annual basis, make such reviews and audits as may 
     be necessary or appropriate to determine whether--
       ``(A) the Director has--
       ``(i) carried out eligible activities under this title in a 
     timely manner;
       ``(ii) carried out and made certifications in accordance 
     with the requirements and the primary objectives of this 
     title and with other applicable laws; and
       ``(iii) a continuing capacity to carry out the eligible 
     activities in a timely manner;
       ``(B) the Director has complied with the housing plan 
     submitted by the Director under section 803; and
       ``(C) the performance reports of the Department under 
     section 821 are accurate.
       ``(2) Onsite visits.--Each review conducted under this 
     section shall, to the extent practicable, include onsite 
     visits by employees of the Department of Housing and Urban 
     Development.
       ``(b) Report by Secretary.--The Secretary shall give the 
     Department of Hawaiian Home Lands not less than 30 days to 
     review and comment on a report under this subsection. After 
     taking into consideration the comments of the Department, the 
     Secretary may revise the report and shall make the comments 
     of the Department and the report with any revisions, readily 
     available to the public not later than 30 days after receipt 
     of the comments of the Department.
       ``(c) Effect of Reviews.--The Secretary may make 
     appropriate adjustments in the amount of annual grants under 
     this title in accordance with the findings of the Secretary 
     pursuant to reviews and audits under this section. The 
     Secretary may adjust, reduce, or withdraw grant amounts, or 
     take other action as appropriate in accordance with the 
     reviews and audits of the Secretary under this section, 
     except that grant amounts already expended on affordable 
     housing activities may not be recaptured or deducted from 
     future assistance provided to the Department of Hawaiian Home 
     Lands.

     ``SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

       ``To the extent that the financial transactions of the 
     Department of Hawaiian Home Lands involving grant amounts 
     under this title relate to amounts provided under this title, 
     those transactions may be audited by the Comptroller General 
     of the United States under such regulations as may be 
     prescribed by the Comptroller General. The Comptroller 
     General of the United States shall have access to all books, 
     accounts, records, reports, files, and other papers, things, 
     or property belonging to or in use by the Department of 
     Hawaiian Home Lands pertaining to such financial transactions 
     and necessary to facilitate the audit.

     ``SEC. 823. REPORTS TO CONGRESS.

       ``(a) In General.--Not later than 90 days after the 
     conclusion of each fiscal year in which assistance under this 
     title is made available, the Secretary shall submit to the 
     Congress a report that contains--
       ``(1) a description of the progress made in accomplishing 
     the objectives of this title;
       ``(2) a summary of the use of funds available under this 
     title during the preceding fiscal year; and
       ``(3) a description of the aggregate outstanding loan 
     guarantees under section 184A of the Housing and Community 
     Development Act of 1992.
       ``(b) Related Reports.--The Secretary may require the 
     Director to submit to the Secretary such reports and other 
     information as may be necessary in order for the Secretary to 
     prepare the report required under subsection (a).

     ``SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Department 
     of Housing and Urban Development for grants under this title 
     such sums as may be necessary for each of fiscal years 1999, 
     2000, 2001, 2002 and 2003.''.

     SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

       Subtitle E of title I of the Housing and Community 
     Development Act of 1992 is amended by inserting after section 
     184 (12 U.S.C. 1715z-13a) the following:

     ``SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

       ``(a) Definitions.--In this section:
       ``(1) Department of hawaiian home lands.--The term 
     `Department of Hawaiian Home Lands' means the agency or 
     department of the government of the State of Hawaii that is 
     responsible for the administration of the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108 set seq.).
       ``(2) Eligible entity.--The term `eligible entity' means a 
     Native Hawaiian family, the Department of Hawaiian Home 
     Lands, the Office of Hawaiian Affairs, or private nonprofit 
     or for-profit organizations experienced in the planning and 
     development of affordable housing for Native Hawaiians.
       ``(3) Family.--The term `family' means 1 or more persons 
     maintaining a household, as the Secretary shall by regulation 
     provide.
       ``(4) Guarantee fund.--The term `Guarantee Fund' means the 
     Native Hawaiian Housing Loan Guarantee Fund established under 
     subsection (i) of this section.
       ``(5) Hawaiian home lands.--The term `Hawaiian Home Lands' 
     means lands that--
       ``(A) have the status of Hawaiian Home Lands under section 
     204 of the Hawaiian Homes Commission Act (42 Stat. 110); or
       ``(B) are acquired pursuant to that Act.
       ``(6) Native hawaiian.--The term `Native Hawaiian' has the 
     meaning given the term `native Hawaiian' in section 201 of 
     the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et 
     seq.).
       ``(7) Office of hawaiian affairs.--The term `Office of 
     Hawaiian Affairs' means the entity of that name established 
     under the constitution of the State of Hawaii.
       ``(b) Authority.--To provide access to sources of private 
     financing to Native Hawaiian families who otherwise could not 
     acquire housing financing because of the unique legal 
     status of the Hawaiian Home Lands or as a result of a lack 
     of access to private financial markets, the Secretary may 
     guarantee an amount not to exceed 100 percent of the 
     unpaid principal and interest that is due on an eligible 
     loan under subsection (b).
       ``(c) Eligible Loans.--Under this section, a loan is an 
     eligible loan if that loan meets the following requirements:
       ``(1) Eligible borrowers.--The loan is made only to a 
     borrower who--

[[Page S12667]]

       ``(A) is a Native Hawaiian family;
       ``(B) the Department of Hawaiian Home Lands;
       ``(C) the Office of Hawaiian Affairs; or
       ``(D) a private nonprofit organization experienced in the 
     planning and development of affordable housing for Native 
     Hawaiians.
       ``(2) Eligible housing.--
       ``(A) In general.--The loan will be used to construct, 
     acquire, or rehabilitate not more than 4-family dwellings 
     that are standard housing and are located on Hawaiian Home 
     Lands for which a housing plan described in subparagraph (B) 
     applies.
       ``(B) Housing plan.--A housing plan described in this 
     subparagraph is a housing plan that--
       ``(i) has been submitted and approved by the Secretary 
     under section 803 of the Native American Housing Assistance 
     and Self-Determination Amendments of 1998; and
       ``(ii) provides for the use of loan guarantees under this 
     section to provide affordable homeownership housing on 
     Hawaiian Home Lands.
       ``(3) Security.--The loan may be secured by any collateral 
     authorized under applicable Federal law or State law.
       ``(4) Lenders.--
       ``(A) In general.--The loan shall be made only by a lender 
     approved by, and meeting qualifications established by, the 
     Secretary, including any lender described in subparagraph 
     (B), except that a loan otherwise insured or guaranteed by an 
     agency of the Federal Government or made by the Department of 
     Hawaiian Home Lands from amounts borrowed from the United 
     States shall not be eligible for a guarantee under this 
     section.
       ``(B) Approval.--The following lenders shall be considered 
     to be lenders that have been approved by the Secretary:
       ``(i) Any mortgagee approved by the Secretary for 
     participation in the single family mortgage insurance program 
     under title II of the National Housing Act (12 U.S.C.A. 1707 
     et seq.).
       ``(ii) Any lender that makes housing loans under chapter 37 
     of title 38, United States Code, that are automatically 
     guaranteed under section 3702(d) of title 38, United States 
     Code.
       ``(iii) Any lender approved by the Secretary of Agriculture 
     to make guaranteed loans for single family housing under the 
     Housing Act of 1949 (42 U.S.C.A. 1441 et seq.).
       ``(iv) Any other lender that is supervised, approved, 
     regulated, or insured by any agency of the Federal 
     Government.
       ``(5) Terms.--The loan shall--
       ``(A) be made for a term not exceeding 30 years;
       ``(B) bear interest (exclusive of the guarantee fee under 
     subsection (d) and service charges, if any) at a rate agreed 
     upon by the borrower and the lender and determined by the 
     Secretary to be reasonable, but not to exceed the rate 
     generally charged in the area (as determined by the 
     Secretary) for home mortgage loans not guaranteed or insured 
     by any agency or instrumentality of the Federal Government;
       ``(C) involve a principal obligation not exceeding--
       ``(i) 97.75 percent of the appraised value of the property 
     as of the date the loan is accepted for guarantee (or 98.75 
     percent if the value of the property is $50,000 or less); or
       ``(ii) the amount approved by the Secretary under this 
     section; and
       ``(D) involve a payment on account of the property--
       ``(i) in cash or its equivalent; or
       ``(ii) through the value of any improvements to the 
     property made through the skilled or unskilled labor of the 
     borrower, as the Secretary shall provide.
       ``(d) Certificate of Guarantee.--
       ``(1) Approval process.--
       ``(A) In general.--Before the Secretary approves any loan 
     for guarantee under this section, the lender shall submit the 
     application for the loan to the Secretary for examination.
       ``(B) Approval.--If the Secretary approves the application 
     submitted under subparagraph (A), the Secretary shall issue a 
     certificate under this subsection as evidence of the loan 
     guarantee approved.
       ``(2) Standard for approval.--The Secretary may approve a 
     loan for guarantee under this section and issue a certificate 
     under this subsection only if the Secretary determines that 
     there is a reasonable prospect of repayment of the loan.
       ``(3) Effect.--
       ``(A) In general.--A certificate of guarantee issued under 
     this subsection by the Secretary shall be conclusive evidence 
     of the eligibility of the loan for guarantee under this 
     section and the amount of that guarantee.
       ``(B) Evidence.--The evidence referred to in subparagraph 
     (A) shall be incontestable in the hands of the bearer.
       ``(C) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all amounts 
     agreed to be paid by the Secretary as security for the 
     obligations made by the Secretary under this section.
       ``(4) Fraud and misrepresentation.--This subsection may not 
     be construed--
       ``(A) to preclude the Secretary from establishing defenses 
     against the original lender based on fraud or material 
     misrepresentation; or
       ``(B) to bar the Secretary from establishing by regulations 
     that are on the date of issuance or disbursement, whichever 
     is earlier, partial defenses to the amount payable on the 
     guarantee.
       ``(e) Guarantee Fee.--
       ``(1) In general.--The Secretary shall fix and collect a 
     guarantee fee for the guarantee of a loan under this section, 
     which may not exceed the amount equal to 1 percent of the 
     principal obligation of the loan.
       ``(2) Payment.--The fee under this subsection shall--
       ``(A) be paid by the lender at time of issuance of the 
     guarantee; and
       ``(B) be adequate, in the determination of the Secretary, 
     to cover expenses and probable losses.
       ``(3) Deposit.--The Secretary shall deposit any fees 
     collected under this subsection in the Native Hawaiian 
     Housing Loan Guarantee Fund established under subsection (j).
       ``(f) Liability Under Guarantee.--The liability under a 
     guarantee provided under this section shall decrease or 
     increase on a pro rata basis according to any decrease or 
     increase in the amount of the unpaid obligation under the 
     provisions of the loan agreement involved.
       ``(g) Transfer and Assumption.--Notwithstanding any other 
     provision of law, any loan guaranteed under this section, 
     including the security given for the loan, may be sold or 
     assigned by the lender to any financial institution subject 
     to examination and supervision by an agency of the Federal 
     Government or of any State or the District of Columbia.
       ``(h) Disqualification of Lenders and Civil Money 
     Penalties.--
       ``(1) In general.--
       ``(A) Grounds for action.--If the Secretary determines that 
     any lender or holder of a guarantee certificate under 
     subsection (c)--
       ``(i) has failed--

       ``(I) to maintain adequate accounting records;
       ``(II) to service adequately loans guaranteed under this 
     section; or
       ``(III) to exercise proper credit or underwriting judgment; 
     or

       ``(ii) has engaged in practices otherwise detrimental to 
     the interest of a borrower or the United States,

     the Secretary may take action under subparagraph (B).
       ``(B) Actions.--Upon a determination by the Secretary that 
     a holder of a guarantee certificate under subsection (c) has 
     failed to carry out an activity described in subparagraph 
     (A)(i) or has engaged in practices described in subparagraph 
     (A)(ii), the Secretary may--
       ``(i) refuse, either temporarily or permanently, to 
     guarantee any further loans made by such lender or holder;
       ``(ii) bar such lender or holder from acquiring additional 
     loans guaranteed under this section; and
       ``(iii) require that such lender or holder assume not less 
     than 10 percent of any loss on further loans made or held by 
     the lender or holder that are guaranteed under this section.
       ``(2) Civil money penalties for intentional violations.--
       ``(A) In general.--The Secretary may impose a civil 
     monetary penalty on a lender or holder of a guarantee 
     certificate under subsection (d) if the Secretary determines 
     that the holder or lender has intentionally failed--
       ``(i) to maintain adequate accounting records;
       ``(ii) to adequately service loans guaranteed under this 
     section; or
       ``(iii) to exercise proper credit or underwriting judgment.
       ``(B) Penalties.--A civil monetary penalty imposed under 
     this paragraph shall be imposed in the manner and be in an 
     amount provided under section 536 of the National Housing Act 
     (12 U.S.C.A. 1735f-1) with respect to mortgagees and lenders 
     under that Act.
       ``(3) Payment on loans made in good faith.--Notwithstanding 
     paragraphs (1) and (2), if a loan was made in good faith, the 
     Secretary may not refuse to pay a lender or holder of a valid 
     guarantee on that loan, without regard to whether the lender 
     or holder is barred under this subsection.
       ``(i) Payment Under Guarantee.--
       ``(1) Lender options.--
       ``(A) In general.--
       ``(i) Notification.--If a borrower on a loan guaranteed 
     under this section defaults on the loan, the holder of the 
     guarantee certificate shall provide written notice of the 
     default to the Secretary.
       ``(ii) Payment.--Upon providing the notice required under 
     clause (i), the holder of the guarantee certificate shall be 
     entitled to payment under the guarantee (subject to the 
     provisions of this section) and may proceed to obtain payment 
     in 1 of the following manners:

       ``(I) Foreclosure.--

       ``(aa) In general.--The holder of the certificate may 
     initiate foreclosure proceedings (after providing written 
     notice of that action to the Secretary).
       ``(bb) Payment.--Upon a final order by the court 
     authorizing foreclosure and submission to the Secretary of a 
     claim for payment under the guarantee, the Secretary shall 
     pay to the holder of the certificate the pro rata portion of 
     the amount guaranteed (as determined pursuant to subsection 
     (f)) plus reasonable fees and expenses as approved by the 
     Secretary.
       ``(cc) Subrogation.--The rights of the Secretary shall be 
     subrogated to the rights of the holder of the guarantee. The 
     holder shall assign the obligation and security to the 
     Secretary.

       ``(II) No foreclosure.--

       ``(aa) In general.--Without seeking foreclosure (or in any 
     case in which a foreclosure proceeding initiated under clause 
     (i) continues for a period in excess of 1 year), the holder 
     of the guarantee may submit to the Secretary a request to 
     assign the obligation and security interest to the Secretary 
     in return for payment of the claim under the guarantee. The 
     Secretary may accept assignment of the loan if the Secretary 
     determines that the assignment is in the best interest of the 
     United States.
       ``(bb) Payment.--Upon assignment, the Secretary shall pay 
     to the holder of the guarantee the pro rata portion of the 
     amount guaranteed (as determined under subsection (f)).
       ``(cc) Subrogation.--The rights of the Secretary shall be 
     subrogated to the rights of the holder of the guarantee. The 
     holder shall assign the obligation and security to the 
     Secretary.
       ``(B) Requirements.--Before any payment under a guarantee 
     is made under subparagraph

[[Page S12668]]

     (A), the holder of the guarantee shall exhaust all reasonable 
     possibilities of collection. Upon payment, in whole or in 
     part, to the holder, the note or judgment evidencing the debt 
     shall be assigned to the United States and the holder shall 
     have no further claim against the borrower or the United 
     States. The Secretary shall then take such action to collect 
     as the Secretary determines to be appropriate.
       ``(2) Limitations on liquidation.--
       ``(A) In general.--If a borrower defaults on a loan 
     guaranteed under this section that involves a security 
     interest in restricted Hawaiian Home Land property, the 
     mortgagee or the Secretary shall only pursue liquidation 
     after offering to transfer the account to another eligible 
     Hawaiian family or to the Department of Hawaiian Home Lands.
       ``(B) Limitation.--If, after action is taken under 
     subparagraph (A), the mortgagee or the Secretary subsequently 
     proceeds to liquidate the account, the mortgagee or the 
     Secretary shall not sell, transfer, or otherwise dispose of 
     or alienate the property described in subparagraph (A) except 
     to another eligible Hawaiian family or to the Department of 
     Hawaiian Home Lands.
       ``(j) Hawaiian Housing Loan Guarantee Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     of the United States the Hawaiian Housing Loan Guarantee Fund 
     for the purpose of providing loan guarantees under this 
     section.
       ``(2) Credits.--The Guarantee Fund shall be credited with--
       ``(A) any amount, claims, notes, mortgages, contracts, and 
     property acquired by the Secretary under this section, and 
     any collections and proceeds therefrom;
       ``(B) any amounts appropriated pursuant to paragraph (7);
       ``(C) any guarantee fees collected under subsection (d); 
     and
       ``(D) any interest or earnings on amounts invested under 
     paragraph (4).
       ``(3) Use.--Amounts in the Guarantee Fund shall be 
     available, to the extent provided in appropriations Acts, 
     for--
       ``(A) fulfilling any obligations of the Secretary with 
     respect to loans guaranteed under this section, including the 
     costs (as that term is defined in section 502 of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loans;
       ``(B) paying taxes, insurance, prior liens, expenses 
     necessary to make fiscal adjustment in connection with the 
     application and transmittal of collections, and other 
     expenses and advances to protect the Secretary for loans 
     which are guaranteed under this section or held by the 
     Secretary;
       ``(C) acquiring such security property at foreclosure sales 
     or otherwise;
       ``(D) paying administrative expenses in connection with 
     this section; and
       ``(E) reasonable and necessary costs of rehabilitation and 
     repair to properties that the Secretary holds or owns 
     pursuant to this section.
       ``(4) Investment.--Any amounts in the Guarantee Fund 
     determined by the Secretary to be in excess of amounts 
     currently required at the time of the determination to carry 
     out this section may be invested in obligations of the United 
     States.
       ``(5) Limitation on commitments to guarantee loans and 
     mortgages.--
       ``(A) Requirement of appropriations.--The authority of the 
     Secretary to enter into commitments to guarantee loans under 
     this section shall be effective for any fiscal year to the 
     extent, or in such amounts as, are or have been provided in 
     appropriations Acts, without regard to the fiscal year for 
     which such amounts were appropriated.
       ``(B) Limitations on costs of guarantees.--The authority of 
     the Secretary to enter into commitments to guarantee loans 
     under this section shall be effective for any fiscal year 
     only to the extent that amounts in the Guarantee Fund are or 
     have been made available in appropriations Acts to cover the 
     costs (as that term is defined in section 502 of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loan 
     guarantees for such fiscal year. Any amounts appropriated 
     pursuant to this subparagraph shall remain available until 
     expended.
       ``(C) Limitation on outstanding aggregate principal 
     amount.--Subject to the limitations in subparagraphs (A) and 
     (B), the Secretary may enter into commitments to guarantee 
     loans under this section for each of fiscal years 1999, 2000, 
     2001, 2002, and 2003 with an aggregate outstanding principal 
     amount not exceeding $100,000,000 for each such fiscal year.
       ``(6) Liabilities.--All liabilities and obligations of the 
     assets credited to the Guarantee Fund under paragraph (2)(A) 
     shall be liabilities and obligations of the Guarantee Fund.
       ``(7) Authorization of appropriations.--There are 
     authorized to be appropriated to the Guarantee Fund to carry 
     out this section such sums as may be necessary for each of 
     fiscal years 1999, 2000, 2001, 2002, and 2003.
       ``(k) Requirements for Standard Housing.--
       ``(1) In general.--The Secretary shall, by regulation, 
     establish housing safety and quality standards to be applied 
     for use under this section.
       ``(2) Standards.--The standards referred to in paragraph 
     (1) shall--
       ``(A) provide sufficient flexibility to permit the use of 
     various designs and materials in housing acquired with loans 
     guaranteed under this section; and
       ``(B) require each dwelling unit in any housing acquired in 
     the manner described in subparagraph (A) to--
       ``(i) be decent, safe, sanitary, and modest in size and 
     design;
       ``(ii) conform with applicable general construction 
     standards for the region in which the housing is located;
       ``(iii) contain a plumbing system that--

       ``(I) uses a properly installed system of piping;
       ``(II) includes a kitchen sink and a partitional bathroom 
     with lavatory, toilet, and bath or shower; and
       ``(III) uses water supply, plumbing, and sewage disposal 
     systems that conform to any minimum standards established by 
     the applicable county or State;

       ``(iv) contain an electrical system using wiring and 
     equipment properly installed to safely supply electrical 
     energy for adequate lighting and for operation of appliances 
     that conforms to any appropriate county, State, or national 
     code;
       ``(v) be not less than the size provided under the 
     applicable locally adopted standards for size of dwelling 
     units, except that the Secretary, upon request of the 
     Department of Hawaiian Home Lands may waive the size 
     requirements under this paragraph; and
       ``(vi) conform with the energy performance requirements for 
     new construction established by the Secretary under section 
     526(a) of the National Housing Act (12 U.S.C.A. 1735f-4), 
     unless the Secretary determines that the requirements are not 
     applicable.
       ``(l) Applicability of Civil Rights Statutes.--To the 
     extent that the requirements of title VI of the Civil Rights 
     Act of 1964 (42 U.S.C. 2000d et seq.) or of title VIII of the 
     Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.) apply to a 
     guarantee provided under this subsection, nothing in the 
     requirements concerning discrimination on the basis of race 
     shall be construed to prevent the provision of the guarantee 
     to an eligible entity on the basis that the entity serves 
     Native Hawaiian families or is a Native Hawaiian family.''.

  Mr. COCHRAN. Mr. President, I ask unanimous consent that the 
committee substitute be agreed to, the bill be considered read the 
third time and passed, the motion to reconsider be laid upon the table, 
and that any statements relating to the bill appear at this point in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee substitute was agreed to.
  The bill (S. 109), as amended, was considered read the third time and 
passed.

                          ____________________