Congressional Record, Volume 146 Issue 42 (Thursday, April 6, 2000)

[Congressional Record Volume 146, Number 42 (Thursday, April 6, 2000)]
[House]
[Pages H1855-H1916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000

Ms. PRYCE of Ohio. Mr. Speaker, by the direction of the Committee on
Rules, I call up House Resolution 460 and ask for its immediate
consideration.
The Clerk read the resolution, as follows:

H. Res. 460

Resolved, That at any time after the adoption of this
resolution the Speaker may, pursuant to clause 2(b) of rule
XVIII, declare the House resolved into the Committee of the
Whole House on the state of the Union for consideration of
the bill (H.R. 1776) to expand homeownership in the United
States. The first reading of the bill shall be dispensed
with. All points of order against consideration of the bill
are waived. General debate shall be confined to the bill and
shall not exceed one hour equally divided and controlled by
the chairman and ranking minority member of the Committee on
Banking and Financial Services. After general debate the bill
shall be considered for amendment under the five-minute rule.
It shall be in order to consider as an original bill for the
purpose of amendment under the five-minute rule the amendment
in the nature of a substitute recommended by the Committee on
Banking and Financial Services now printed in the bill. The
committee amendment in the nature of a substitute shall be
considered as read. All points of order against the committee
amendment in the nature of a substitute are waived. No
amendment to the committee amendment in the nature of a
substitute shall be in order except those printed in the
report of the Committee on Rules accompanying this
resolution. Each amendment may be offered only in the order
printed in the report, may be offered only by a Member
designated in the report, shall be considered as read, shall
be debatable for the time specified in the report equally
divided and controlled by the proponent and an opponent,
shall not be subject to amendment, and shall not be subject
to a demand for division of the question in the House or in
the Committee of the Whole. All points of order against the
amendments printed in the report are waived. The Chairman of
the Committee of the Whole may: (1) postpone until a time
during further consideration in the Committee of the Whole a
request for a recorded vote on any amendment; and (2) reduce
to five minutes the minimum time for electronic voting on any
postponed question that follows another electronic vote
without intervening business, provided that the minimum time
for electronic voting on the first in any series of questions
shall be 15 minutes. At the conclusion of consideration of
the bill for amendment the Committee shall rise and report
the bill to the House with such amendments as may have been
adopted. Any Member may demand a separate vote in the House
on any amendment adopted in the Committee of the Whole to the
bill or to the committee amendment in the nature of a
substitute. The previous question shall be considered as
ordered on the bill and amendments thereto to final passage
without intervening motion except one motion to recommit with
or without instructions.

The SPEAKER pro tempore (Mr. Ose). The Chair recognizes the
gentlewoman from Ohio (Ms. Pryce) for 1 hour.
Ms. PRYCE of Ohio. Mr. Speaker, for the purposes of debate only, I
yield the customary 30 minutes to the distinguished gentleman from
Massachusetts (Mr. Moakley), ranking member of the Committee on Rules;
pending which I yield myself such time as I may consume. During
consideration of this resolution, all time yielded is for the purpose
of debate only.
Mr. Speaker, House Resolution 460 is a structured rule providing for
the consideration of H.R. 1776, the American Homeownership and Economic
Opportunity Act of 2000.
The rule provides for 1 hour of general debate, after which the House
will consider a bipartisan manager's amendment, as well as 11 other
amendments that the Committee on Rules made in order. Of these
amendments, five will be offered by Democrats, four will be offered by
Republicans, and three are bipartisan. Additionally, the rule allows
the minority to offer the customary motion to recommit with or without
instructions.
So I think it is fair to describe this rule as carefully balanced and
fair. It gives Members on both sides of the aisle equal opportunity to
alter the legislation, and the House will have the opportunity to fully
debate the merits of the bill.
Mr. Speaker, the American Homeownership Act is the result of hard
work and negotiation, and I commend the gentleman from New York (Mr.
Lazio) for his continued commitment to updating and improving our
Nation's housing policies.
The goal of H.R. 1776 is simple. The bill seeks to help more
Americans realize the dream of owning their own home. While today's
economic prosperity has allowed our Nation's homeownership rate to peak
at 67 percent and nearly 70 million households own their homes, we all
know that not every American is enjoying today's economic boom. For too
many hard-working families, homeownership seems an unattainable dream.
H.R. 1776 takes a number of steps to reduce the barriers to
homeownership that low-income Americans face. For example, the bill
reduces unnecessary, excessive regulation that adds thousands of
dollars to the cost of a home.
Under this legislation, all proposed Federal regulations must include
a housing impact analysis so that the Government can determine if
policies will jeopardize the availability of affordable housing.
H.R. 1776 also empowers local communities to boost homeownership in
their neighborhoods. People who own their homes have a greater stake in
their neighborhoods; and by increasing homeownership, cities can look
forward to cleaner, safer neighborhoods.
Under the bill, localities will be able to leverage public funds with
private funds in order to increase homeownership opportunities. Through
the creation of a mixed-income loan pool and a home loan guaranteed
program, more Americans will have access to affordable housing.
Local flexibility is also enhanced by provisions that allow mayors
and local government officials to use Federal funds to assist first-
time home buyers who are municipal employees to purchase homes in the
communities where they serve.
It makes sense for those who are largely responsible for the safety
of our communities and who act as role models for our children, such as
police officers, fire fighters, teachers, to actually live in the
neighborhoods where they work.
This bill will grant localities the flexibility to establish smarter
urban planning policies and strengthen their communities by allowing
city workers to become our neighbors and keeping workers closer to
their jobs.
The American Homeownership Opportunity Act also helps families who

[[Page H1856]]

rely on section 8 rent assistance, by giving public housing authorities
the option of providing a single grant to a tenant as a down payment
assistance in lieu of the monthly assistance for rent.
Special assistance is also provided to the disabled, to Native
Americans, rural residents, and senior citizens through this bill.
Another housing policy that H.R. 1776 corrects is the existence of
HUD-foreclosed, vacant, and substandard properties that scar
neighborhoods and hamper economic vitality. This bill seeks to put
these properties into the hands of local governments and community
development corporations who can revitalize these neglected
neighborhoods.
Finally, the bill updates the antiquated provisions of the
Manufactured Housing Act to improve the quality, safety, and
affordability of manufactured homes and the Federal management of the
program. These changes are the result of cooperation and negotiation
among Congress, the industry, and consumer groups.
In fact, Mr. Speaker, on the whole, H.R. 1776 is the product of
cooperative efforts between Democrats and Republicans, and it enjoys
the support of numerous organizations, including the National Education
Association, the Homebuilders, the Mortgage Lenders, Community Bankers,
the Fraternal Order of Police, the National Association of Realtors, to
name just a few.
Still, for those who are not fully supportive of this bill, the rule
provides the House with an opportunity to consider a number of
amendments that may alter its provisions.
I hope that after today's full debate of this measure, its merits
will be very clear and that the House will preserve the good policy of
this long-awaited and carefully crafted bill.
I urge my colleagues to support the rule and the American
Homeownership and Economic Opportunity Act. Let us take this
opportunity to help more Americans know the pride and independence that
owning a home offers.
Mr. Speaker, I reserve the balance of my time.
Mr. MOAKLEY. Mr. Speaker, I thank the gentlewoman from Ohio (Ms.
Pryce), my dear friend, for yielding me the customary half hour; and I
yield myself such time as I may consume.
Mr. Speaker, I rise in support of this rule and in support of the
bill to help more Americans own their homes. My Democratic and
Republican colleagues on the Committee on Banking and Financial
Services have worked together to fashion a housing bill designed to
help working families to own homes, despite the rising home prices, as
well as to address other inequities in our housing market. This is an
excellent bipartisan bill, and I thank all Members on both sides of the
aisle for their hard work.
Thanks to the 1993 Budget Act passed by the Democrats in Congress,
the United States is now experiencing the highest rate of homeownership
in history. Sixty-seven percent of Americans own their own homes. The
1993 Budget Act lowered mortgage rates, created budget surpluses, and
sparked 7 years of economic growth, all of which have made it easier
for people to own their own homes.
But as people throughout Massachusetts can tell us, with this strong
economy, home prices continue to soar, making it harder and harder for
low-income and middle-income families to buy their own homes. So this
bill, Mr. Speaker, really responds by helping make sure that working-
class families are not priced out of the housing market by the strong
economy.
It also contains a provision called the teacher-next-door program,
which expands the cop-next-door program, to help teachers, to help fire
fighters, and police officers to buy homes.
That way, Mr. Speaker, public servants can stay near their important
jobs by coming up with just 1 percent of the down payment instead of
the usual 5 or 10 percent. Cities will be revitalized, and children
will really have positive role models living right next door.
The bill also will help families who receive section 8 housing
assistance also to buy homes. It will enable senior citizens who are
house rich, cash poor, to borrow against the value of their homes for
essentials like medication, food, and home repairs.
Mr. Speaker, last year, the Federal Housing Authority paid claims on
over 71,000 defaulted loans for houses that were discovered to have
major structural defects. This bill will help home buyers become aware
of these major structural defects in the homes they are considering
buying before it is too late.
My Republican colleagues on the Committee on Banking and Financial
Services included many Democratic suggestions to require companies that
manufacture homes to update their safety and construction standards.
For that, I thank them.
I am sorry the Committee on Rules did not make in order the amendment
of the gentleman from Massachusetts (Mr. Frank) to take the safety
standards for manufactured homes even a step further. My Republican
colleagues also agreed to other pro-consumer provisions to help
families, to protect families who buy these manufactured homes.
This bill contains a proposal to fight discrimination and a proposal
to virtually eliminate the capital gains tax on principal home sales.
The American Homeownership bill is a bipartisan collection of many
good ideas designed to strengthen and empower cities, reduce
discrimination, and make it easier for working-class families to own
their own homes. I commend my colleagues on the Committee on Banking
and Financial Services committee for their excellent work.
I urge my colleagues to support both the rule and support the bill.
Mr. Speaker, I reserve the balance of my time.
Ms. PRYCE of Ohio. Mr. Speaker, we have no requests for time, so I
reserve the balance of my time.
Mr. MOAKLEY. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Baca), who is the author of one of the amendments that
was adopted in the committee.
(Mr. BACA asked and was given permission to revise and extend his
remarks.)
Mr. BACA. Mr. Speaker, I support the rule, and I would like to
commend members of the Committee on Rules for including the manager's
amendment that I proposed. As amended, I support the legislation.
As previously discussed, this is an opportunity for homeownership
that presents an opportunity for pride for many individuals to own a
home.

{time} 1030

I know what it was like. I came from a family of 15, being the 15th
in the family and not owning a home, and I remember the very first time
that my parents could afford to buy a home. This opens an opportunity
for many other individuals who will have that same opportunity to take
pride and have dignity in a home. It is positive for our communities
throughout the Nation that individuals will be able to afford to buy
their home.
My amendment expresses the sense of the Congress that the Secretary
of Housing and Urban Development should consult with other agencies to
make additional properties available for law enforcement officers,
teachers, and fire fighters. As we expand HUD's existing programs to
cover fire fighters in this bill, it is essential that we encourage HUD
to work with other agencies to find additional properties. These
individuals have made great sacrifices for our communities, and that is
fire fighters, and that is the amendment that I propose. We should
recognize them for their unselfishness and their heroic actions. They
are a part of our community. They are role models in our communities.
My amendment is supported by 230,000 fire fighters of the
International Association of fire fighters. It is also supported by the
San Bernardino Community College District which trains fire fighters
through ongoing programs. I urge adoption of this rule and support of
the legislation.
Mr. MOAKLEY. Mr. Speaker, I yield back the balance of my time.
Ms. PRYCE of Ohio. Mr. Speaker, I yield myself such time as I may
consume.
Once again I would like to emphasize the fairness of this rule. Of
the 12 amendments made in order by the rule, five are Democrats'
amendments, four are Republicans' amendments and three are bipartisan.
I would say this is not only fair but generous since the

[[Page H1857]]

bill itself is not particularly controversial. Like the rule, the
underlying bill is a careful balance built on compromise which has
earned the support of 155 bipartisan cosponsors. It is also supported
by numerous organizations from the Fraternal Order of Police and the
Consortium for Citizens With Disabilities to the Homebuilders and
America's Community Bankers.
Mr. Speaker, as Congress grapples with budget surpluses and many
Americans bask in our Nation's economic prosperity, we cannot turn a
blind eye to those who have been left behind and who are still
struggling to know what the American dream is all about. We can give
these hardworking individuals a chance to experience the pride and
independence that is the heart of the American society by giving them a
chance to own their own home. The flexibility, local control and
personal empowerment that this bill offers to our housing policies is
the right way to lend a helping hand to those Americans who are honest,
hardworking citizens and who need a small boost to get ahead and
improve their lives for themselves and their families. I urge support
for this fair rule and for the American Homeownership and Economic
Opportunity Act.
Mr. Speaker, I yield back the balance of my time, and I move the
previous question on the resolution.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore (Mr. Ose). Pursuant to House Resolution 460
and rule XVIII, the Chair declares the House in the Committee of the
Whole House on the State of the Union for the consideration of the
bill, H.R. 1776.
The Chair designates the gentleman from Indiana (Mr. Pease) as
Chairman of the Committee of the Whole, and requests the gentleman from
Colorado (Mr. Hefley) to assume the chair temporarily.

{time} 1033

In the Committee of the Whole

Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 1776) to expand Homeownership in the United States, with Mr.
Hefley (Chairman pro tempore) in the chair.
The Clerk read the title of the bill.
The CHAIRMAN pro tempore. Pursuant to the rule, the bill is
considered as having been read the first time.
Under the rule, the gentleman from New York (Mr. Lazio) and the
gentleman from New York (Mr. LaFalce) each will control 30 minutes.
The Chair recognizes the gentleman from New York (Mr. Lazio).
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume. I
am going to begin, if I can, by noting the bipartisan nature of this
bill and the fact that we have had both Republicans and Democrats bring
this bill together. I want to thank the gentleman from New York (Mr.
LaFalce) and the gentleman from Massachusetts (Mr. Frank) on the
Democratic side and the gentleman from Iowa (Mr. Leach) as well as many
members of the committee for helping to contribute to this bill,
particularly the gentleman from California (Mr. Campbell). We would not
be here picking up the last piece of the housing puzzle if it were not
for the gentleman from Iowa (Mr. Leach).
Over these last 5 years, we have taken up homeless legislation and
passed it in the House, we have taken up section 8 and assisted housing
reforms, passed it in the House, seen it signed into law, we have taken
up Native American housing provisions in this House, had it passed and
signed into law, did a 50-year rewrite of public housing reforms, took
it up, passed it in this House, had it signed into law, and now we are
on the threshold of completing the continuum of housing by addressing
the American dream, homeownership. Again, we would not be here but for
the fact of the leadership of the chairman of the committee, the
gentleman from Iowa.
Mr. Chairman, I yield 3 minutes to the gentleman from Iowa (Mr.
Leach).
Mr. LEACH. Mr. Chairman, I thank the gentleman for yielding me this
time. Let me just stress that the litany of bills that the gentleman
from New York has just read off are testaments to the most
extraordinary subcommittee chairmanship in the House of
Representatives. They are all reflective of the work and the
thoughtfulness of the gentleman from New York and the complementary
bipartisan assistance of the minority, the gentleman from Massachusetts
(Mr. Frank) and the gentleman from New York (Mr. LaFalce) in
particular.
I would just like to mention two things about this bill. One is the
big picture, macroeconomics. That is, that housing is getting more
difficult for more Americans because of two phenomena.
One phenomenon is that the strong economy has made it more difficult
for many people to purchase higher-priced houses. Pricing of housing is
simply going up in some cases faster than income levels. Secondly,
interest rates are at a credible rate compared to some periods in
American history but an historically unprecedented differential has
come into being between inflation and long-term interest rates, with
inflation at 1\1/2\ percent, long-term interest at 8\1/2\ percent. That
is a 7 point differential which is truly extraordinary when you think
of mortgages being for 20- and 30-year time periods.
The second point I would like to make is that this bill has a number
of elements, very carefully crafted elements. The most ingenious is
that we are looking at particular professional classes of people,
teachers and uniformed municipal employees as well as handicapped
individuals, and giving them new rights and capacities that have never
existed in law before.
The possibility of buying a House under FHA with a 1 percent down
payment is an unprecedented new right that will give uniformed
municipal employees greater incentive to live in the communities in
which they save and serve the people and give teachers the greatest
benefit that they have ever been given by the Federal Government.
I am very proud under the leadership of the gentleman from New York
(Mr. Lazio) that this Congress is bringing out one of the most
extraordinary pro-education initiatives in the history of the House of
Representatives. In the circumstance in which teacher shortages are
mounting, there will be huge new incentives for young people to go into
the teaching profession and huge new opportunities for teachers to live
in the communities in which they actually teach.
And so I think this is something that this House can take great pride
in at this time. Let me just conclude again by thanking the gentleman
from New York, one of the most far sighted Members of this body and
again point out that this bill has terrific collegial bipartisan
support. I am particularly grateful to the gentleman from New York (Mr.
LaFalce) and the gentleman from Massachusetts (Mr. Frank).
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
I rise in support of this legislation.
I would first like to recognize the very hard work that has gone into
this legislation on both sides of the aisle. In particular, I would
like to thank the gentleman from Iowa (Mr. Leach), the committee
chairman; the gentleman from New York (Mr. Lazio), Housing and
Community Opportunity Subcommittee chairman; and the gentleman from
Massachusetts (Mr. Frank), the Housing and Community Opportunity
Subcommittee ranking member. I also want to express my appreciation to
the majority for the bipartisan manner in which this bill has been
considered, especially with respect to their receptivity to a number of
Democratic proposals and recommendations which have been incorporated
into this bill.
As we begin the debate on this housing bill, we should recognize that
when it comes to the areas of homeownership and economic opportunity,
we are doing remarkably well. Our Nation is enjoying a record
homeownership rate of 67 percent, and we are enjoying the 7th year of
strong economic growth.
While reasonable people can disagree, a strong case can be made that
it was the budget policies that we launched in 1993 that are largely
responsible for this record. A Federal budget deficit of $300 billion a
year has given way to huge surpluses. We have experienced lower
interest and mortgage rates, 7 years of robust economic growth and
record levels of consumer confidence. This has translated into higher
homeownership levels and obviously increased prosperity.
And so the question is, why even bring this bill up? The answer is
that

[[Page H1858]]

our strong economy can have a downside for some. Rising home prices
means that many young families still find themselves priced out of the
housing market. Rising home prices mean that working families may find
it hard to obtain housing anywhere near where they work or where good
jobs are. And schools, police departments, fire departments, especially
in high-cost areas find it increasingly difficult to recruit and retain
public servants.
This bill addresses these challenges by using the FHA single family
home loan program, CDBG, HOME and other Federal programs to increase
opportunities for low- and middle-income families. I am pleased to
report that many of the bill's provisions have come from our side of
the aisle. For example, section 203 of the bill incorporates the
provisions of legislation I introduced with a number of other
Democrats, the Homeownership Opportunities for Educators and Municipal
Employees Act.
This bill authorizes 1 percent cash down payment FHA loans for
teachers, policemen, and firemen buying a home in the school district
or jurisdiction that employs them. This provision has the strong
support of the National Education Association, the American Federation
of Teachers, the American Association of School Administrators and the
Fraternal Order of Police.
Further, the Congressional Budget Office has concluded that if this
provision is adopted, it would result in an additional 125,000 FHA
loans to teachers, policemen, and firemen over the next 5 years, a
significant increase in homeownership opportunities for our public
servants.
The CBO has also concluded that the provision would increase our
budget surplus by $162 million over that same period. This is a win-win
situation. Our bill, H.R. 1776, also includes important HUD proposals
for hybrid, ARM loans and down payment simplification to make FHA more
flexible and to make it work more like the private sector.
I am also very pleased that the bill includes the text of a bill I
recently introduced, the Affordable Long-term Care Insurance Act. Long-
term care insurance is growing in popularity, growing in need. It is
growing in popularity as a way to provide seniors with financial
security against the threat of staggering nursing home costs, to
preserve assets and to potentially reduce Medicaid expenditures.
The bill I introduced that is incorporated in H.R. 1776 would make it
easier for senior citizens to buy long-term care insurance by making it
more affordable through the FHA reverse mortgage loan program. This is
done by waiving the up-front fee that HUD charges for such loans by as
much as $4,400 when loan proceeds are used exclusively on an annual
basis to purchase long-term care insurance.
The attractiveness of reverse mortgages then with an FHA guarantee
which some 13 million Americans who own their home free and clear are
eligible for is that reverse mortgages allow seniors to borrow against
the equity in their own home without having to make monthly payments of
principal or interest.

{time} 1045

I would also like to acknowledge a number of provisions in the bill
authored by my colleagues on the Democratic side of the aisle. These
include the provision of the gentleman from Massachusetts (Mr. Frank)
to include financing opportunities for manufactured home lots, and to
make CDBG and HOME more effective in high-cost jurisdictions; the
provision of the gentleman from Massachusetts (Mr. Capuano) to create a
pilot program to allow CDBG and HOME funds to be used for home down-
payment assistance for two- and three-family residences and to allow
use of HOME funds in conjunction with section 8 assistance for ``grand-
families''; the amendment of the gentleman from Rhode Island (Mr.
Weygand) dealing with the problem of lead paint poisoning; the
provision of the gentlewoman from Oregon (Ms. Hooley) for funding for
consortia to use for planning money for housing affordability
strategies; the amendment of the gentleman from Texas (Mr. Bentsen) to
provide that unincorporated communities can fully participate in
homeownership zones; and the amendments of the gentleman from Vermont
(Mr. Sanders) to promote homeownership for low-income renters and for
those buying duplexes.
Finally, I would like to mention briefly Title XI, the manufactured
housing section. Everyone agrees that we need to jump start the process
of updating our manufactured housing construction and safety standards.
The bill seeks to do that through the establishment of a private sector
consensus committee to develop recommendations to make to HUD for the
revision of these standards. Democrats' problems with this approach
have been that earlier versions of these bills were tilted against the
consumer and in favor of industry. During hearings last year, AARP
testified that they were very concerned about this tilt, and we
concurred in this assessment. Therefore, over the last year, my
Democratic colleagues on the Committee on Banking and Financial
Services have offered a number of changes to the bill to restore HUD
control over the process of establishing standards and regulations to
provide more balance to the consensus committee deliberations and to
ensure that all existing regulatory activities are fully protected. I
have much appreciate the willingness of the majority to work together
with us and to accept these recommendations.
So in closing, this is a good bill. It has been considered in a
bipartisan fashion. I urge Members to support it in a bipartisan
fashion and the many important provisions included within it.
Mr. Chairman, I reserve the balance of my time.
Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from Ohio (Mr. Ney), who was a contributor to many aspects of
this bill. He is a Member of the Committee on Banking and Financial
Services, and I am happy to have him here in support of the bill.
Mr. NEY. Mr. Chairman, I want to thank the gentleman for yielding me
this time.
Mr. Chairman, H.R. 1776, the American Homeownership and Economic
Opportunity Act, opens the prospect of homeownership to many deserving
American families. It is good, sound legislation; and I rise today to
indicate my full support in its behalf and encourage my House
colleagues to support its passage as well.
Homeownership continues to be a strong personal and social priority,
occupying a preferred place in our Nation's system of values. Yet,
significant numbers of households are still precluded from sharing in
the benefits of homeownership, despite a strong economy and a record
percentage of Americans who own their own home. This measure addresses
those inequalities.
This bill contains several key provisions that expand homeownership
opportunities and improve access to affordable housing for low- and
moderate-income individuals. Additionally, the bill utilizes the
strength of the FHA and expands homeownership opportunities for many
deserving public employees and school personnel who can now find little
or nothing affordable in the communities in which they work.
Specifically, H.R. 1776 includes special provisions to help
schoolteachers, police officers, firefighters, municipal employees, and
corrections officers across America to purchase homes.
Mr. Chairman, this measure was approved by the House banking
committee in the spirit of strong bipartisanship, largely through the
perseverance and tireless efforts of my colleague, the gentleman from
New York (Mr. Lazio). I commend Members on both sides, especially the
gentleman from New York, and I urge support for the bill.
Mr. LaFALCE. Mr. Chairman, I yield 3 minutes to the distinguished
gentleman from Texas (Mr. Bentsen), a member of the Committee on
Banking and Financial Services.
(Mr. BENTSEN asked and was given permission to revise and extend his
remarks.)
Mr. BENTSEN. Mr. Chairman, I thank the gentleman for yielding me this
time.
I rise in strong support of this legislation. This is good bipartisan
legislation that the Committee on Banking and Financial Services on
which I have the honor of serving reported a couple of weeks ago. It is
important that it removes barriers to housing affordability and
encourages homeownership, particularly for low- and moderate-income
Americans.

[[Page H1859]]

It also creates for the first time a new type of adjustable rate
mortgage financing product for first-time homebuyers through the FHA
Guarantee program, and it authorizes the Section 203 program in this
bill for qualified teachers, police, firefighters and municipal
employees to apply for a 1 percent down FHA mortgage loan, making it
easier for them to buy homes in communities in which they work. It is a
program that has been utilized in my district in earlier incarnations
and one that I think will be quite successful.
It also enhances the FHA guarantee of reverse mortgages for senior
citizens. This is something I have worked on with my legislature in
Texas, in the State of Texas. The people of Texas recently adopted a
constitutional amendment providing for this, and this bill will make it
even easier.
I am particularly pleased that this legislation includes a section
dealing with the prevention of fraud in the HUD 203 K Title I program.
Over the last couple of years, I have worked with the chairman of the
housing subcommittee on abuse in this program. And in my district and
around my district in the greater Houston, Texas, area, we have seen
tremendous abuse of this program by contractors, unscrupulous
contractors who come and defraud primarily elderly folks on fixed
incomes and leave the taxpayers footing the bill.
Quite frankly, HUD had not done a sufficient job in monitoring this
program. The gentleman from New York (Mr. Lazio) and I had asked the
General Accounting Office for a study on this program; and we found
that there was a great deal of abuse, and this bill takes some steps to
try and correct that. I commend the gentleman from New York for his
work on that.
This bill also includes language which will, for the first time, have
HUD take a look at unincorporated areas in the ETJ, in some of their
homeownership grant programs; whereas before, that has not always
gotten, I think, a fair hearing. This affects a lot of areas in my
district and a lot of districts in Texas where we are at the perimeter
of city boundaries, but it is still an urban-like area. I appreciate
both the chairman and the ranking member for agreeing to include my
language in the manager's amendment.
The bottom line, Mr. Chairman and my colleagues, is that this is a
very good bill that I think both sides should support unanimously. It
enhances homeownership opportunities for all Americans and will help
build stronger communities. I commend the chairman and the ranking
member of the subcommittee and the full committee for their work on
this bill.
Mr. LAZIO. Mr. Chairman, I yield 3 minutes to the distinguished
gentlewoman from New York (Mrs. Kelly), a member of the Committee on
Banking and Financial Services.
Mrs. KELLY. Mr. Chairman, I thank my friend and fellow New Yorker for
yielding me this time.
Mr. Chairman, I rise today in strong support for H.R. 1776, the
American Homeownership and Economic Opportunity Act of 2000.
Today, we will consider this very important legislation which
addresses a problem too many Americans face: the lack of available,
affordable housing. The legislation enhances existing homeownership
opportunities, but it creates new homeownership opportunities for low-
and moderate-income Americans. It strengthens consumer protections for
the single largest and most important purchase the majority of most
Americans will make.
Homeownership is vital in any community and encourages homeowners to
become more involved in their community. When a family owns a home in a
community, they want that area to be clean and safe, and homeownership
gives them a vested interest in making sure this happens. The pride and
accomplishment of homeownership encourages owners to improve their
property, to work together with neighbors, to improve the community as
a whole. Homeownership and neighborhood improvements only enhance the
lives of people living within the community.
While it is easy to see how homeownership can be a cornerstone of a
community, it is unfortunately not available to all segments of the
population. We must take the necessary steps to ensure that all
Americans have an opportunity to achieve this part of the American
dream.
Mr. Chairman, in H.R. 1776 we take steps to see that homes are
available, strong, safe, and clean. Through flexibility granted by
Federal agencies, these goals can be reached. We promote more
available, affordable housing by establishing practical, uniform
performance-based Federal construction standards for manufactured
housing. We also reauthorize the Community Development Block Grant
program and improve it by adding homeownership assistance for municipal
employees and reauthorizing housing opportunities for people with the
AIDS program. The reauthorization of the Home Investment Partnership
programs makes affordable homes available to more people.
These are only a few of the many positive steps we take in H.R. 1776.
I want to in particular make it very clear that by making homeownership
assistance available to municipal employees, it makes it possible for
many employees to live in the cities and municipalities in which they
work.
I want to take a moment to thank my subcommittee chairman, the
gentleman from New York (Mr. Lazio), and our ranking member, the
gentleman from Massachusetts (Mr. Frank), for their strong cooperative
effort in crafting and refining this vital legislation. Let me also
note my appreciation for their openness to my efforts to help in this
work.
Mr. Chairman, I encourage my colleagues on both sides of the aisle to
join us in strong support for this necessary legislation.
Mr. LaFALCE. Mr. Chairman, I yield such time as he may consume to the
distinguished gentleman from Massachusetts (Mr. Frank), the ranking
member of the Subcommittee on Housing, who really has been responsible
for such a great bulk of the provisions of this bill.
Mr. FRANK of Massachusetts. Mr. Chairman, I thank the ranking member
of the full committee who has been very instrumental in our working
this out. I want to begin with more than a normal acknowledgment of the
staffs on both sides, Democratic and Republican, because this is a bill
in which a great deal of work has been done.
For example, the manufactured housing sections, there was an article
in the Washington Post recently raising some questions from the
consumer's standpoint about manufactured housing, and some of the
questions were legitimate questions. I was pleased on reading the
article to be able to say to myself, since I was alone when I read it,
but to say that we had, in fact, anticipated many of those questions
and had resolved them in a way that was mutually acceptable and
protected the consumer interest, while at the same time recognizing
that manufacturing continues to be a valuable housing resource for
people of limited incomes.
So I think Members will find that the manufactured housing section
there satisfies legitimate concerns raised by the American Association
of Retired Persons, by residents of the mobile homes, and also by those
in the States that have regulatory authority, as well as manufactured
housing. That is clearly the motif of this bill.
I have said this before; I said this last year when we debated
legislation to preserve existing section 8 tenancies. There is both a
partisan ideological and a nonpartisan, nonidealogical aspect to
housing. The partisan idealogical one is very legitimate, and we have a
responsibility to deal with it. We deal with it when we debate the
budget; we deal with it when we debate appropriations. That is, given
the wealth of this country, many of us believe that we are dedicating
insufficient resources to housing needs. Indeed, it is the very wealth
and the increase in wealth that to many of us demands greater Federal
funding to help with housing.
In many parts of the country, including the greater Boston area where
much of my district is located, in the northern part of California, in
other metropolitan areas, it is precisely the prosperity which we are
enjoying as a Nation which helps drive up housing costs so that people
who are not themselves direct participants in the new economy, people
who are not prospering from stock options, who are not getting higher
salaries because they bring skills that the global economy wants, these
people now find themselves priced out of neighborhoods where they used
to live.

[[Page H1860]]

{time} 1100

It is, it seems to me, the responsibility of this society to take
some small percentage of the wealth that is being generated and use it
to help protect people who are the victims of the unequal distribution
of that wealth. Those are efforts we will deal with.
We will get some aspects of that today. There will be legislation to
increase, for instance, the authorization, an amendment to increase the
authorization for housing with people with AIDS, bipartisan, and I
strongly will support it.
But on the whole, this bill comes within the constraints that have
been given to the Subcommittee on Housing and Community Opportunity and
the full Committee on Banking and Financial Services by the budget
process; that is, this is not an opportunity, and I wish it were,
greatly to expand what we do. If it were, we would have legitimate
ideological debates of the sort that a democracy ought to foster.
Today, however, we have the end product of negotiations within the
framework that we were given. How do we then use those resources best?
Those are less likely to be ideological. Once we have the resources,
once we confront the existing realities, then we do have a situation
where we have to figure out how best to make it work.
That is what this bill essentially does today. It makes some
improvements, some adjustments. It is the best we can do with where we
are.
There were a couple of pieces that I want to refer to involving
Community Development Block Grants, because I believe strongly that the
Community Development Block Grant should remain primarily a low-income
program. I was pleased that the House last week, when we debated the
supplemental appropriation bill, apparently to no purpose, since it
never made it past the Rotunda, but we and the gentleman from New York,
and the chairman of the subcommittee took a major role, the gentleman
from Florida of the Committee on Appropriations did a major job on it,
we said, yes, we want to make firefighting a CDBG-eligible activity,
but we do not want to dilute the commitment to low-income people in
that bill. That is what we did.
There are some amendments to this bill that some people say, are you
not diluting it? I want to explain one in particular. I am a cosponsor
of one that is in the manager's amendment that adds ten more areas
which are high-cost areas which will get a change.
Here is the change. Right now under CDBG we use the national median.
I represent some communities where, frankly, if you go by the national
median, given the higher income in some of these communities, nobody
would be eligible. So we are asking not that we ignore a low-income
requirement, but that the low-income requirement be defined in terms of
that particular metropolitan area.
There is another one that some people object to which says, we want
to be able to let firefighters, police officers, teachers, live in the
community. People have a paradox. In some cities we have passed laws
saying to municipal employees, you must live in the city. What happens
when we tell them they must live in the city because we think it is a
value, but it becomes too expensive? So there is language that tries to
deal with that.
On the whole, this is a bill which is inadequate in one sense,
because it represents a national decision to devote too little of our
wealth to this problem. But given that decision, which this
subcommittee and committee could not affect within the context of this
bill, I think we do an excellent job of adjusting within those
restraints the programs so we get the maximum out of them. For that
reason, I hope that the bill is passed.
On the amendments, I will myself be opposing any amendment which
tries to dilute the CDBG income guidelines. But otherwise, I think we
have a useful bill.
One other thing I would add. My colleague, the gentleman from Rhode
Island, has an amendment to increase the FHA limits to reflect
inflation and price increases. It is especially important, again, for
those of us in the high-cost areas. That, it seems to me, is a good
amendment. I will be strongly supporting it.
On the whole, this bill does the best we can with the limited
resources this subcommittee was given to work with.
At the heart of Title XI of HR 1776, the Manufactured Housing
Improvement Act is a consensus standards development process to update
federal standards on manufactured housing.
It is important to note that this process of modernizing the safety
standards has already begun. In June of 1998, the U.S. Department of
Housing and Urban Development designated the Massachusetts-based
National Fire Protection Association (NFPA) to make recommendations to
HUD. NFPA is fully accredited by the American National Standards
Institute (ANSI) to develop consensus American National Standards as
specified by this bill.
In fact, the NFPA has submitted to HUD recommendations to completely
revise and update the federal smoke detector requirements for
manufactured homes. This was deemed to be a priority by consumers, fire
safety experts, the manufactured housing industry and by HUD in that
there has been an alarmingly high incident of non-working or
disconnected smoke detectors when fires occur in these homes built to
old HUD standards. These recommendations were submitted by NFPA to HUD
over 14 months ago. We are still waiting for HUD to act on them. This
bill will correct this deficiency by requiring that the consensus
committee recommendations go into effect automatically within one year
unless HUD objects.
The NFPA Consensus Committee is working on a number of other issues
that concern consumers. One issue has to do with moisture and
condensation problems of manufactured housing located in humid areas of
our country.
In conclusion, the National Fire Protection Association has been
carrying out the intent of this bill for the past two years and is
ready to continue the process of updating the HUD standards, many of
which are over 25 years old. This bill will require these modernized
standards to go into effect on a much more expedited basis.
Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from Wisconsin (Mr. Green), vice chairman of the Subcommittee
on Housing and Community Opportunity. He has been particularly
effective in his leadership in promoting affordable housing tools, and
especially for persons with disabilities and law enforcement officers.
He has been an integral component of the entire process.
Mr. GREEN of Wisconsin. Mr. Chairman, I thank my friend and
colleague, the gentleman from New York, for yielding time to me.
Let me begin by congratulating the gentleman from New York (Mr.
Lazio) for all of his hard work in putting this together. To be honest,
I feel as good about this bill as I feel about anything we have done in
my brief tenure in Congress.
This legislation has something for everyone. It does not solve all
the problems of the world, obviously, but I do think it touches upon
some very important challenges that we are facing in modern society.
I am very proud of what it does in the area of removing regulatory
barriers. I do not think we spend enough time in this Congress looking
at regulatory areas for affordable housing.
As we all know, for every thousand dollars that the cost of a house
increases by, we are pricing 1 percent of the population out of the
market. This legislation creates a housing impact analysis. It also
creates grants for removing regulatory barriers, and creates a
regulatory barrier clearinghouse. That is important.
Secondly, empowerment. We often use that phrase to mean lots of
things, but this bill really is about empowerment. Those who I think
are most challenged in terms of getting affordable housing these days
are those people among us with disabilities. This legislation creates a
pilot project to help people with disabilities afford their own home.
Finally, in the area of crime, this even makes some important strides
in meeting some of our crime challenges. It contains a pilot project
which encourages law enforcement officers to live in those high crime
areas as described by local officials. So this legislation in my view
really makes some important strides in a number of important areas. I
think it is something we can all be very proud of across the aisle.
I would strongly encourage my colleagues to support this legislation,
vote for it today, and then, quite frankly, go home and talk about it,
talk to our constituents about what we have done.

[[Page H1861]]

I thank my colleague for yielding time to me, and again congratulate
him.
Mr. LaFALCE. Mr. Chairman, I ask unanimous consent to yield the
balance of my time to the gentleman from Massachusetts (Mr. Frank) to
control the time.
The CHAIRMAN. Is there objection to the request of the gentleman from
New York?
There was no objection.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield 3 minutes to the
gentleman from Vermont (Mr. Sanders).
Mr. SANDERS. Mr. Chairman, I thank the gentleman for yielding time to
me.
Mr. Chairman, I rise in strong support of H.R. 1776, the American
Homeownership and Economic Opportunity Act of 2000.
Mr. Chairman, the issue of affordable housing has rapidly reached the
level of a national crisis. From one end of this country to the other,
we have working people, elderly people, low-income people who are
scrambling hard to find peaceful and safe housing which they can
afford.
In this, the richest country in the history of the world, in my view
we should not be giving tax breaks to billionaires or spending money on
wasteful military projects while so many of our people are having a
hard time finding affordable housing.
This legislation is a step forward. I strongly support it. I would
like to thank the gentleman from New York (Mr. Lazio), the gentleman
from Iowa (Mr. Leach), the gentleman from New York (Mr. LaFalce), and
the gentleman from Massachusetts (Mr. Frank), for their leadership on
this legislation.
I especially want to thank them for their help in working with me on
three amendments which I offered as a member of the Committee on
Banking and Financial Services.
Let me briefly describe those amendments. The First Amendment would
create a $5 million Federal investment to help low- and moderate-income
homeowners buy duplexes. This funding would flow through the
Neighborworks homeownership centers throughout the country. This
amendment will make the dream of homeownership a reality for hundreds
of first-time homebuyers.
Mr. Chairman, the number one barrier to homeownership is the up-front
money needed to purchase a home, and this amendment helps address that
problem. This amendment would allow neighborhood homeownership centers
to provide some of that up-front money to hundreds of people throughout
the country for the purpose of buying a duplex.
According to the Neighborhood Reinvestment Corporation, the $5
million in that amendment would generate an additional investment of
$58 million, and create 285 units of duplex homeownership available to
first-time homebuyers throughout the country.
The Second Amendment would authorize $2 billion to make homeownership
a reality for recipients of Section 8 rental assistance. This funding
will allow HUD to provide downpayment grants of up to 20 percent of the
purchase price of a home in order to leverage 80 percent of the
remaining costs from other sources, including State housing finance
agencies and the Neighborhood Housing Services of America. A 50 percent
match requirement is needed for participation in the program.
Mr. Chairman, the final amendment that I have offered would allow
more nonprofits the ability to purchase single-family homes from HUD in
a 50 percent discount in areas of very low homeownership. These low
homeownership areas have been designated by HUD as revitalization
areas.
This amendment would require HUD to designate all areas in the United
States that meet the criteria for a revitalization area within 60 days
after a nonprofit has made such a request.
Mr. Chairman, the bottom line is that in this country we have a
housing crisis. This bill moves us a little bit closer to addressing
it.
Mr. LAZIO. Mr. Chairman, I yield such time as he may consume to the
gentleman from Iowa (Mr. Leach), the chairman of the Committee on
Banking and Financial Services.
Mr. LEACH. Mr. Chairman, I thank the gentleman for yielding time to
me.
I would like to enter in a brief colloquy with my distinguished
friend, the gentleman from New York (Mr. Lazio). As the gentleman
knows, this bill has a very important element that allows uniformed
municipal employees, police, fire, to have access to certain FHA
privileges, including 1 percent downpayment on mortgages.
Am I not right in believing that also this provision applies to the
volunteer fire departments that exist in so many parts of America?
Mr. LAZIO. Mr. Chairman, will the gentleman yield?
Mr. LEACH. I yield to the gentleman from New York.
Mr. LAZIO. The gentleman from Iowa is precisely correct. This
provision and the provisions affecting flexibility for homeownership
assistance are meant to incentivize homeownership for firefighters,
whether they are paid or whether they are volunteer.
As the gentleman also correctly states, in many parts of America,
including my communities, firefighting is done primarily by volunteer
firefighters. These provisions would be incentives for them, as well.
Mr. LEACH. I appreciate that. I would just like to make one modest
point. That is, there is probably no single professional element of
America that has been more unpersonally rewarded than volunteer
firemen. What this bill does is create the first substantive reward for
people that have served their communities so bravely for so long.
I think this is a very appropriate endeavor. I want to thank the
gentleman for insisting that this provision be designed in this
fashion.
Mr. LAZIO. I thank the gentleman for his comments.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield 3 minutes to the
gentleman from Pennsylvania (Mr. Kanjorski), a member of the
subcommittee.
Mr. KANJORSKI. Mr. Chairman, I rise today to support and speak for
the American Homeownership and Economic Opportunity Act. This bill will
increase homeownership opportunities for all Americans, enhance access
to affordable housing for low- and moderate-income individuals, and
expand economic opportunity for underserved communities.
As we know, Mr. Chairman, our economy continues its record expansion,
and our Nation has achieved its highest ownership rate in its history.
The 1993 Budget Act helped form the foundation on which these
accomplishments have been built.
The budget policies outlined in that law have contributed to a record
budget surplus, lower interest and mortgage rates, 7 years of robust
economic growth, and record levels of consumer confidence.
Despite our successes, significant numbers of households are still
precluded from sharing in the benefits of homeownership. H.R. 1776
addresses many of these inequities. Among its provisions, the
legislation helps schoolteachers, police officers, firefighters,
municipal employees, and correction officers to purchase homes in the
jurisdiction that employs them with reduced down payments and deferred
FHA loan insurance premiums, reauthorizes funding for Community
Development Block Grants, allows elderly homeowners to refinance their
reverse mortgages, while establishing consumer protections to shield
them against fraud and abuse.
Although H.R. 1776 is a good beginning, more still need to be done to
help encourage economic investments in underserved communities. That is
why I hope the House will pass the administration's New Markets
initiative.
We have in recent weeks been working and making progress and
negotiating a bipartisan plan that merges Democratic and Republican
ideas for helping underserved communities. Thus, I am hopeful that we
can pass legislation in this area in the upcoming months, and deliver
on an agreement reached between the Speaker and the President last
November to cooperate on economic development issues.
In closing, Mr. Chairman, H.R. 1776 is a solid piece of legislation
that helps more people become homeowners in very innovative ways.
Because increased ownership rates strengthen communities, I strongly
support H.R. 1776, and encourage my colleagues to support its passage.

[[Page H1862]]

Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from Florida (Mr. McCollum), the vice chairman of the
Committee on Banking and Financial Services, and thank him for his
efforts to make sure consumers are protected, particularly with respect
to with respect to low-income housing issues. That help has been
invaluable.
(Mr. McCOLLUM asked and was given permission to revise and extend his
remarks.)
Mr. McCOLLUM. Mr. Chairman, I thank the gentleman for yielding time
to me.
I want to commend the gentleman from New York (Mr. Lazio) for all the
work on this bill, and everybody else who participated in it. This is
one of the finest pieces of legislation dealing with housing that I
have seen in the years that I have been here in this Congress.
It is simple in some respects compared to some of the complicated
bills that have come to this floor, but it is something which does a
good deal for a lot of people. It provides, as some have said, the
opportunity for many more people to be able to get into a home and to
actually own a home. I think that is the extraordinary part of this.

{time} 1115

We need in America to have more homeownership. Those at the lower end
of the spectrum of earnings should have the opportunity to feel a part
of their community, to actually own their home. That is the beauty of
this bill.
As has been said, there are several groups within the municipalities
who may be employees, the firefighters, the police officers and others,
who are given opportunities in this bill to be first-time homeowners
that they might not otherwise have had, by the opening up of the
provisions that allow the use of community development block grant
monies and so forth for that purpose.
I think the central core of the bill is the portion of it that is
really exciting that allows the Section 8 program of HUD to use the
assistance that is provided now for rental assistance towards the
purchase of a home by a down payment or a monthly mortgage payment. It
is an extraordinary opportunity for many Americans under this
particular section of the bill to gain their opportunities to actually
own a home. A roof over one's head is a whole lot more than simply a
roof. It is a part of being the community, and that is what we are all
about.
Also in this bill, in H.R. 1776, there are provisions concerning
manufactured housing that I think are important. It actually extends
the amount of performance-based standards and enhances consumer
protections that are so important to manufactured housing. It
encourages the viability of that which is important to my home State
and, as the gentleman from New York (Mr. Lazio) knows, many of us have
worked a long time to try to make these provisions viable. I thank the
gentleman for including them in this bill.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield 3 minutes to the
gentlewoman from Oregon (Ms. Hooley), another member of the
subcommittee.
Ms. HOOLEY of Oregon. Mr. Chairman, I thank the gentleman from
Massachusetts (Mr. Frank) for yielding me this time.
Mr. Chairman, I would also like to thank the leadership, the
gentleman from New York (Mr. Lazio), the gentleman from Iowa (Mr.
Leach), the gentleman from New York (Mr. LaFalce), and the gentleman
from Massachusetts (Mr. Frank) for the hard work they did on a
bipartisan bill that helps increase affordability in housing for all
Americans, and it hopefully will bring a lot of Americans hopefully
closer to that dream of homeownership.
I just want to highlight a few provisions in the bill that I think
will help people in my district. With the help of the gentleman from
New York (Mr. Lazio), I was able to insert a provision that sets aside
money for a regional, affordable housing pilot project.
The Portland metropolitan area has provided the Nation with a model
in successful regional planning, and despite the area's growing
affluence and increase in overall housing production, poverty and the
need for affordable housing has not declined. The local governments of
the Portland metropolitan region have recognized that these problems
cut across county lines. They believe that housing and services for
low-income people are better addressed by regional cooperation and are
now working together to address these issues.

The regional affordable housing pilot project would provide funds to
encourage localities to reach across those boundaries, to work together
to plan for and build affordable housing.
I also want to commend the ranking member, the gentleman from
Massachusetts (Mr. Frank), and others for the hard work they did on
manufactured housing. Our current laws really do not protect our
consumers, and so what this bill does is inserts a protection for
consumer protection for dispute resolution, so if there is a problem
between the housing manufacturer and the installers this can go to
dispute resolution so that the consumer is not bounced back and forth.
I am also pleased with a provision that reflects H.R. 3884, the House
Act, introduced by the gentleman from New York (Mr. LaFalce), myself,
and others. This bill would give teachers, police officers, and other
municipal employees the opportunity to get a lower down payment FHA
loan for a home in the town or county where they work. This will help
address a tremendous problem in my district where city employees often
have long commutes to work because they cannot afford to live in a home
in the town that employs them.
Once again, I would like to congratulate the gentleman from New York
(Mr. Lazio) and the other ranking members on bringing a bill to the
floor that will not only break down barriers in affordable housing but
will create new housing opportunities for millions of Americans, and I
urge support.
The CHAIRMAN. The Chair advises the Committee that the gentleman from
Massachusetts (Mr. Frank) has 2\1/2\ minutes remaining, the gentleman
in New York (Mr. Lazio) has 15 minutes remaining.
Mr. LAZIO. Mr. Chairman, I yield 1 minute to the distinguished
gentleman from Alabama (Mr. Riley), a member of the committee.
Mr. RILEY. Mr. Chairman, I just want to commend the gentleman from
New York (Mr. Lazio) and the gentleman from New York (Mr. LaFalce) for
the hard work they have done on this.
Mr. Chairman, I want to proclaim my support of H.R. 1776. It seems to
me that the least my colleagues and I can do is help those who serve
our community and to help ease the financial burden they have in
purchasing a home. I personally know how hard that can be and that is
why, Mr. Chairman, it is high time that we here in Washington reach out
to those people to whom we owe so much.
Who amongst us has not had a teacher that we remember or taken for
granted the protection and security provided by police officers and
firefighters. Heroism must be recognized and rewarded.
To my way of thinking, this is a means to say thank you to those who
sacrifice so much for our protection and care. This bill would do just
that, Mr. Chairman. It would reward America's heroes. I encourage my
colleagues in the House to support this fine bipartisan legislation.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield our remaining 2\1/
2\ minutes to the gentleman from North Carolina (Mr. Price).
Mr. PRICE of North Carolina. Mr. Chairman, I rise in support of H.R.
1776, a bipartisan bill reauthorizing and improving programs that build
our communities and that make housing more accessible and affordable to
our citizens.
Mr. Chairman, I represent a district in North Carolina that, in most
respects, is an economic success story, with a lively market in rental
housing and in home building and sales. But we are in danger of pricing
people upon whom our community depends out of that housing market.
For example, to afford a two-bedroom apartment, a person making the
minimum wage in my district would have to work 96 hours a week. Working
a 40-hour week for that same two-bedroom apartment, that person would
have to make $12.40 an hour. And even with homeownership at
historically high levels, the American dream is still out of reach for
far too many people.

[[Page H1863]]

H.R. 1776 will help. It will make it easier for teachers and police
officers and firefighters to buy homes in neighborhoods that need
leaders as they rebuild. It will increase the ability of senior
citizens to use reverse mortgages, a program I helped initiate a few
years ago, to stay in their homes and to drawdown their equity for
living expenses.
It will expand Section 8 assistance to permit families with disabled
persons to purchase a home. It will establish workable construction,
safety, installation, and dispute resolution standards for manufactured
housing.
In these and many other respects, this bill will improve housing,
will improve housing policy, and will improve the quality of life for
thousands of Americans. I urge my colleagues to support this bill.
Mr. LAZIO. Mr. Chairman, I yield 3 minutes to the distinguished
gentleman from Nebraska (Mr. Bereuter), who has been of incredible help
on many parts of this homeownership bill and other housing initiatives,
particularly as they affect rural America.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Chairman, I want to thank the gentleman from New
York (Mr. Lazio) for his kind remarks and thank him and the chairman of
the full committee for bringing and expediting this legislation and
similarly express appreciation to their Democrat counterparts.
Of course, housing is one of the most important investments that
Americans make. Homeownership gives an individual or family a sense of
pride in themselves, their home, as well as in their community. It is
one of the reasons why this bill, H.R. 1776, is so important and I rise
in support of it.
I would like to focus on four general provisions of this legislation
which promote homeownership. First of all, the legislation goes to
great lengths to promote homeownership for Americans across the entire
country. First, families can use their Federal rental vouchers for
mortgage payments.
Two, mayors and local governing officials can be given increased
flexibility to use the Community Development Block Grant program and
HOME Federal housing block grant funds for homeownership assistance.
Three, a HOME loan guarantee program is created to allow communities
to tap into future HOME grants for affordable housing developments.
Four, all Federal agencies are required to include a housing impact
analysis to ensure that proposed regulations do not have a negative
impact on affordable housing.
Furthermore, I would like to focus on four specific provisions with
which this Member was involved. First, H.R. 1776 extends the
grandfather status until the 2010 census for similarly situated cities
nationwide like Norfolk, Nebraska, to continue to be able to use the
USDA Rural Housing Service programs.
Second, the American Homeownership and Economic Opportunity Act also
includes a permanent authorization for Section 184, the Native American
Home Loan Guarantee program, which this Member authored with the help
of many of my colleagues. Under current law, the Section 184 program is
authorized only through 2001.
Third, a provision is included in this legislation which would create
the Indian Lands Title Report Commission, with a sunset, to improve the
procedure by which the Bureau of Indian Affairs conducts title reviews
in connection with the status of Indian lands. This provision is
identical to a bill this Member introduced previously in this Congress.
Moreover, the Commission should facilitate the use of Section 184
program to benefit additional Native Americans in purchasing homes on
Indian reservations. This is the only program that effectively permits
Indians who live on reservations to actually purchase a home or, more
likely, to build a home.
Fourth and lastly, this Member is pleased that as a matter of equity
the manager's amendment includes a provision which I support. It
extends Native American housing assistance programs to native
Hawaiians. In particular, the manager's amendment applies the Section
184 loan guarantee program to the unique legal status of Hawaiian
homelands.
Mr. Chairman, for these and many other reasons, I urge support of the
legislation and thank my colleagues, particularly the gentleman from
New York (Mr. Lazio), for his exceptional work.
Mr. LAZIO. Mr. Chairman, I yield 1 minute to the distinguished
gentleman from California (Mr. Royce). Again I want to thank him for
his helping in bringing about a compromise among consumers, the
industry, and administration with regard to manufactured housing.
Mr. ROYCE. Mr. Chairman, I rise today in strong support of title II
of H.R. 1776, and specifically this title II contains H.R. 710 and that
is the Manufactured Housing Improvement Act of which I am a cosponsor.
Manufactured housing represents more than 20 percent of all new
single family homes sold in the United States. It is the fastest
growing segment of our housing industry and despite the significant
growth of that industry, the Federal manufactured housing program has
not been considered a mainstream regulatory activity within HUD. As a
consequence, it suffers from an outdated regulatory structure that
hinders both producers and it hinders consumers. The Manufactured
Housing Improvement Act addresses this problem by establishing a
private sector consensus committee to make recommendations to the HUD
Secretary for updating standards and regulations. This committee will
be self-funded with the costs covered by label fees that the industry
must pay on each home. This provision is long overdue, Mr. Chairman. I
urge my colleagues to support it.
Mr. LAZIO. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman
from Maryland (Mrs. Morella).
Mrs. MORELLA. Mr. Chairman, I rise in support of H.R. 1776, and I
want to thank the gentleman from Iowa (Mr. Leach), the gentleman from
New York (Mr. LaFalce), the gentleman from Massachusetts (Mr. Frank),
and especially the gentleman from New York (Mr. Lazio) for their hard
work on this legislation and their dedication to helping all families
achieve the American dream.
The Homeownership and Economic Opportunity Act will help low-income
families in the cycle of paying rent rather than a mortgage. One-third
of American families make under $25,000 a year, putting homeownership
out of reach for nearly 100 million Americans.
Increased flexibility to States within existing Federal programs will
empower partnerships between public and private sectors and strengthen
community-based nonprofit groups. In reducing regulatory barriers and
granting local housing authorities more flexibility in promoting
homeownership as this bill does will give families an alternative to
paying rent. Homeownership creates equity for families and makes future
investments possible.
Additionally, the impact of these regulations is clear when one
considers that the cost of a $200,000 home could be cut by 14 percent,
or $28,000, by streamlining the process governing land construction and
land development.
I also commend the authors of H.R. 1776 for including provisions that
enable teachers, firefighters, and police to live in the communities
where they work. Encouraging these individuals to purchase homes can
only strengthen communities. As a cosponsor of the American
Homeownership and Economic Opportunity Act, I urge all my colleagues to
vote for this bill.
Mr. LAZIO. Mr. Chairman, I yield 3 minutes to the distinguished
gentlewoman from New Jersey (Mrs. Roukema), a great champion of
homeowners across America.

{time} 1130

Mrs. ROUKEMA. Mr. Chairman, I thank the gentleman from New York (Mr.
Lazio) for that very nice introduction.
Mr. Chairman, I rise in strong support of this legislation. It is an
excellent bill. I certainly want to congratulate the gentleman from New
York (Chairman Lazio) for his leadership and his fine work. As far as I
can tell, I think we have a pretty good wide base of bipartisan support
for this legislation.
Now, I would like to make the point about the general subject of
homeownership which is the American

[[Page H1864]]

dream. Sixty-seven percent of all Americans, that is an all-time high,
have fulfilled that American dream and now own their own homes.
Anything we can do here to make it more fair and equitable, both
Republicans and Democrats, we should; and I think we are moving in that
direction. Both parties are entitled to feel proud about it.
But I would, however, like to discuss one portion of this bill, title
IX. This is entitled the Private Mortgage Insurance Technical
Corrections Clarification Act.
This title, which is identical to the bill, H.R. 3637, which I, the
gentleman from Iowa (Mr. Leach), and the gentleman from New York (Mr.
LaFalce) introduced earlier, the gentleman from New York (Mr. Lazio)
and other Members have made it an integral part of this landmark PMI
legislation. He has put it into this legislation.
PMI, as it is known, private mortgage insurance, is required on
mortgages when a borrower puts down less than 20 percent equity when
buying a home. Many consumers complain that it was hard, if not
impossible, to terminate the PMI requirement, even after they had well
over 20 percent of equity.
In 1998, Congress made it easier for homeowners to terminate the PMI
payments. But more was necessary. Title IX contains several important
and essential technical corrections to the 1998 law. I do not know that
we have time to go into all of them, but I think that it is important
for us to know that these changes, although they may seem only
technical in nature, are absolutely essential for us to implement
Congress's original intention in the 1998 law and to protect the
consumers.
They are the product of several months of meeting between the
industry, consumer groups, as well as the Republican, Democratic staff.
It is a bipartisan effort that demonstrates that we in the Congress can
work in the interest of the people.
In closing, Mr. Speaker, I think we should remember that PMI charges
for homeowners can be anywhere from several hundred to several thousand
dollars in payments annually. The PMI payments are a real cost of
homeownership to millions of Americans. Lenders can and should be
reasonably protected from these defaults, but there is no reason why
homeowners should pay PMI charges longer than necessary. We are going
to help them do the American dream and not charge them too much.
Mr. LAZIO. Mr. Chairman, may I inquire as to how much time is
remaining for both sides.
The CHAIRMAN. The gentleman from New York (Mr. Lazio) has 5\1/2\
minutes remaining. The gentleman from New York (Mr. LaFalce) has no
time remaining.
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, we have been laying out the debate about the underlying
principles of the bill that is before us. This bill is about
opportunity and empowerment, responsibility, and flexibility. It is
about the underlying premise of America, which is that we are a Nation
of achievers, we are a Nation that embraces opportunity, we cherish the
ideal of self-sufficiency and independence; and it is embodied in the
end in the family home.
For many of us, the most important financial investment that we ever
make in our lives is the purchase of a home. Homeownership creates a
sense of community. It binds neighbors together. It invests all in the
common good. The equity that one builds up in a home is often used to
help their children go to college or to tap into to start one's own
business.
Today, Mr. Chairman, two-thirds of all Americans own their own homes,
continuing a trend since the mid-1990s of historically high
homeownership rates. Much of this success can be attributed to a strong
American economy, the product of Federal fiscal restraint, a balanced
budget, and the enterprising spirit of working men and women across the
country.
Yet, paradoxically, it is the very strength of the economy that has
had a problematic impact on some segments of the home buying
population. In many of the regions of the country, particularly in
those places where economic growth is the most robust, rising home
prices have severely impacted homeownership affordability.
The Washington Post calls it a ``Quiet Crisis in Housing Prices.'' In
New York, for example, thousands of families pay more than half their
income toward rent, often for a small one-bedroom apartment. Over the
last 10 years, average prices for new single-family homes have risen
almost 50 percent.
For mayors and city managers trying to attract a quality workforce or
revitalize inner-city neighborhoods, a lack of affordable housing is a
significant barrier to community renewal. Without the right tools to
draw high-quality teachers and police officers, fire fighters, and
other civil servants, cities are limited in their ability to build
social capital and grow community prosperity.
People like Jean-Ann Bryant, an elementary schoolteacher in suburban
San Jose, California, whose $37,000 a year salary falls far, far short
of what was required in a region where the average cost of a home is an
unbelievable $631,000. In Austin, Texas, the price of real estate has
risen to the point where accountants earning about $45,000 a year find
it difficult to qualify for a mortgage.
Nor is the problem of qualifying for affordable housing to be found
solely a problem in the red-hot economies of our Nation's high-tech
meccas. We find similar stories in Richmond, Virginia; Denver,
Colorado; and St. Louis, Missouri.
There are specific segments of the American population that have been
hit particularly hard by rising home prices. Yes, it is true, when one
is in the African American and Hispanic communities, we are under 50
percent. Working families are priced out of the real estate market.
Despite our best effort to date, black and Hispanic homeownership rates
have remained stubbornly below 50 percent.
The shortage of affordable housing becomes more severe as one
descends the rungs of the socio-economic ladder. For those at the lower
end of the wage scales in America, the stakes of the housing
affordability issue are of a far greater weight. For the working poor
or the disabled, the rise in rents and home prices can quite literally
make the difference between having a roof over one's head or living on
the street or in a shelter.
Our challenge must be to do more. The American Homeownership and
Economic Opportunity Act is our effort to give more of these families
an opportunity to achieve the American dream of owning a home.
This proposal reauthorizes existing Federal housing block grant
programs under HUD, but adds additional flexibility for local
communities to create their own homeownership tools.
For example, mayors and community officials are given flexibility
when targeting teachers and law enforcement officials, fire fighters
for homeownership opportunities, including down payment assistance. It
allows 1 percent down payments for FHA-insured home loan mortgages to
help increase that social capital and provide incentives for people in
the community as for teachers and police officers and fire fighters
living in high-crime areas.
The bill modernizes HUD's regulatory regime overseeing the
manufactured housing industry, which is an increasingly lower-cost
alternatives for many Americans for affordability. The proposal allows
greater use of low-income rent subsidies for locally created
homeownership perhaps.
So instead of living in a basement apartment, instead of having one's
whole family huddled in a basement apartment, we are going to be able
to use the section 8 program to actually bring the promise of
homeownership to lower-income Americans.
Mr. Chairman, I am also proud, particularly proud of the provisions
of the bill that attack the blight of vacant HUD-foreclosed homes and
neighborhoods across the country. HUD's inventory of foreclosed
properties total almost 50,000 homes, and thousands fall into the
inventory every month. These vacant properties, the subject of
``Fleecing of America,'' the site of violent criminal and drug-related
activity, the cause of decreasing property values in neighborhoods
across the country is a national disgrace. These properties are taken
over by drug dealers, properties that children are raped in and
teenagers are killed in.
Every single thing we can do to ensure that these properties remain
in

[[Page H1865]]

HUD's inventory for the shortest period of time possible will mean
safer neighborhoods, safer streets, and safer families.
Mr. Chairman, I urge this body to embrace this bill.
Ms. HOOLEY of Oregon. Mr. Chairman, I would like to comment upon one
aspect of the changes to the manufactured housing language within H.R.
1776--and that is the composition of the Consensus Committee. First,
let me say that I applaud the diligence of all those who contributed to
the final provisions of title XI of H.R. 1776--both my colleagues on
the Banking Committee and those in the private sector. I believe it is
a product of which we should all be extremely proud.
In the midst of modifications to the language, however, there was one
change which I feel warrants brief comment during today's floor
discussion. One result of the discussions which transpired over the
last several months in order to reach the final version of Title XI,
has been to change the makeup of the Consensus Committee so that it is
in compliance with the American National Standards institute (ANSI)
guidelines. Specifically, the formerly five subgroups of the Consensus
Committee have been streamlined to three, with seven members serving on
each.
Mr. Chairman, as you know, it is important that the consensus
committee is comprised of a balance of consumers, industry experts, and
government officials who will advise HUD on safety standards and
regulation enforcement. I am aware that consumer groups felt they had
been underrepresented in the ``Users'' category. In the process of
increasing their representation in the ``Users'' category, however,
others--such as the home builders--fell out of the ``General Interest''
category. This industry's presence in this category in no way
undermines the additional representation of the consumer groups. In
fact, I believe they are a critical component of the consensus
committee and that such industry members should be members.
Mr. CALVERT. Mr. Chairman, I rise in support of H.R. 1776, the
American Homeownership and Economic Opportunity Act of 2000. This is an
important housing measure being debated before us today. My personal
background in the real estate industry, I believe, has given me an
insider's perspective on this issue and I am confident that this bill
will significantly increase the affordability and accessibility of
housing.
I understand the importance of affordable family housing to the
American dream. Every American family should be given the ability to
purchase and own a safe, well built home. I don't think anybody in the
chamber would disagree that homeownership is a fundamental component of
the American dream.
H.R. 1776 will make that American dream a reality for thousands of
families.
One issue of great importance to my constituents in southern
California, and others throughout the nation, is that alternative
affordable housing be made available. An excellent example of just that
has been manufactured housing. These factory-built homes are every bit
as reliable as site-built homes, and are becoming increasingly the
choice of many Americans.
As cochair of the Manufactured Housing Caucus, I am happy to see the
provisions in this bill that seek to update and improve the housing
regulations applied to manufactured homes. Particularly, the creation
of a consensus committee--comprised of consumers, manufacturers and
other housing industry partners--to make sure that the concerns of all
parties are addressed. H.R. 1776 will improve the installation
standards that protect consumers and provide a dispute resolution
program for consumers at no cost.
Mr. Chairman, these new regulations allow the manufactured housing
industry to compete fairly and continue to grow. I urge my colleagues
to support H.R. 1776 and homeownership.
Mr. FORBES. Mr. Chairman, as the newest Member of the House Committee
on Banking and Financial Services, I am very happy that the House is
now considering this important legislation, ``American Homeownership
and Economic Opportunity Act'' (H.R. 1776).
Homeownership is a pivotal building block for family security,
stability, and strong communities. All families deserve the opportunity
to achieve the American dream of owning a home.
Like other areas around our country, Suffolk County, NY, is plagued
with high property taxes and very expensive real estate prices.
According to a study by the National Low Income Housing Coalition,
housing costs in Long Island are the fourth highest in the country,
with only San Francisco, CA, San Jose, CA, and Stamford, CT, higher.
In order to be able to afford the average two-bedroom apartment on
Long Island, family needs to have an average household income of
$45,000 per year--which just happens to be Long Island average
household income.
Buying a home is an even greater challenge--even for middle-income
families. With such high rental costs, high utility costs, and high
taxes, the ability of an average family to also save for a down payment
is almost impossible.
Because of these exorbitant costs, young families, senior citizens
and our teachers, police officers, firefighters, and municipal civil
servants can barely afford to live on Long Island.
Provisions in this bill will help my neighbors in Long Island, who
work so hard just to make ends meet, finally buy their first home.
For example, this bill amends HUD program formulas so that they are
based on local area, median incomes, not on the national median income.
Tying the eligibility to the local median income is particularly
important on Long Island to enable home ownership.
I am also proud that the HOUSE act (H.R. 3884), of which I am an
original cosponsor with Mr. LaFalce, has been included into this bill.
The HOUSE act provides lower down payments and assistance with closing
costs to qualified K-12 teachers, policemen, and firemen. This new
program will assist some of our most honored citizens in becoming
homeowners.
Overall, in addition to helping those most in need in our
communities, this catchall bill will help moderate- and lower-income
families in Long Island, and around the country, to purchase homes. Mr.
Chairman, I am proud of this bill and urge its swift passage.
Mr. LARSON. Mr. Chairman, I rise today in support of the bill we have
before the House today, which seeks to broaden the path to
homeownership for our Nation's citizens and help foster the development
of healthy, economically vibrant neighborhoods.
The American Homeownership and Economic Opportunity Act of 2000
encourages the removal of unnecessary regulatory barriers that hinder
the production of affordable housing and drive up the costs of
homeownership.
I became a proud co-sponsor of this bill last year, and I am very
pleased that through the steady leadership of the gentleman from Iowa,
Mr. Leach, the gentleman from New York, Mr. LaFalce, the other
gentleman from New York, Mr. Lazio, and the gentleman from
Massachusetts, Mr. Frank, we were able to come together to bring this
important bipartisan legislation before the House today. I also want to
express my appreciation for the efforts of the gentleman from
Massachusetts, my good friend Mr. Capuano, who I know has worked very
diligently on the Banking and Financial Services Committee to support
this bill.
Currently, about 70 million Americans own their own homes. However,
in households with annual incomes under $25,000, which is about one-
third of total households in this country. Americans incur increasing
hardships when buying their own homes and generally cannot afford the
monthly mortgage payments. This is particularly true in African-
American and Hispanic communities where the ownership rates are even
lower.
This bill will help communities create homeownership programs
tailored to their needs, and would enable local governments to increase
the impact of their funding, thereby helping more of their citizens
achieve homeownership. Specifically, it will give localities added
flexibility when working with Federal housing and community development
block grant programs, in order to leverage public funds with private
sources of capital.
In addition, H.R. 1776 would give communities are also given the
tools needed to encourage increased homeownership opportunities for
working, middle class families whose occupations from the backbone of
communities, and who are in integral components of our neighborhoods:
teachers, police officers, fire fighters, including volunteer
firefighters who are such an essential part of many communities around
the country, and other municipal employees. A provision in the bill
will allow urban communities to apply for funds from the Community
Development Block Grant (CDBG) and Home Investment Partnership (HOME)
programs so homeownership assistance may be offered to municipal
employees for the purchase of homes within their communities.
Finally, H.R. 1776 modernizes the manufactured housing industry by
giving HUD the ability to enhance its monitoring of the industry and
its protection of consumers. The current framework for regulating the
manufactured housing industry is severely outdated and ill suited to
address the needs of consumers. I was particularly heartened to learn
that the provisions included in H.R. 1776 represent a carefully crafted
compromise between HUD, the industry, and consumers to ensure that
manufactured housing is a viable, affordable housing resource.
Mr. Chairman, this bill is not only about increasing homeownership
around the country, it is also about empowering our lower income and
minority households, rebuilding and revitalizing our communities,
allowing our teachers to remain involved and active in the communities
they serve, assisting police officers who are asked to remain close to
the people they

[[Page H1866]]

protect, and rewarding firefighters who keep our homes safe for
ourselves and our children. Helping all Americans, especially those who
serve the public and those with lower incomes, realize the dream of
homeownership must be a goal for this Congress and for this country to
achieve.
Again, Mr. Chairman, I am pleased to have my name attached to this
bipartisan bill as a cosponsor, and I urge all my colleagues to support
it.
Mr. MORAN of Virginia. Mr. Chairman, I rise today in support of H.R.
1776, the American Homeownership and Economic Opportunity Act.
Our nation is currently enjoying its highest homeownership rate--66.8
percent. A significant cause of this achievement is the Balanced Budget
Act of 1997 which has created record budget surpluses, lower interest
and mortgage rates, seven years of robust economic growth, and record
levels of consumer confidence.
Although great strides have been made to encourage homeownership, we
must do more to advance the availability of affordable housing. H.R.
1776 reauthorizes the Community Development Block Grant and the HOME
Investment Partnership Programs, both of which help localities provide
affordable housing. This bill provides local governments the
flexibility necessary to use federal funds to assist school teachers,
police officers, firefighters and municipal employees to buy homes in
the communities in which they work.
I have been a strong supporter of the creation of mixed-income
communities. I support passage of H.R. 1776 which will provide
localities the flexibility they need to use community development block
grant programs to leverage public funds with private sources of
capital. Local government officials must have access to the mechanisms
necessary to generate resources that will allow them to create
homeownership programs tailored to the specific needs of each locality.
Passage of this bill will only enhance existing efforts to create safe
and affordable housing for the citizens of Virginia's 8th district.
Other provisions of H.R. 1776 that I believe are crucial to improving
homeownership in our country include:
A pilot program will be established to give Public Housing
Authorities flexibility in allowing families to use Section 8 subsidies
toward the purchase of a home. An identical program will be created to
assist families with one or more members who are disabled.
Authorization of grants for ``homeownership zones,'' which are large
scale development projects in distressed neighborhoods.
Substantial strides have been made in providing the opportunity for
all Americans to achieve homeownership. While more people than ever
before own their homes, there is still much work to be done toward
ensuring that the opportunity to share the dream is equally available
to everyone. Passage of H.R. 1776 brings us one step closer to making
these dreams a reality.
Mr. UDALL of Colorado. Mr. Chairman, I rise in support of H.R. 1776,
the American Homeownership and Economic Opportunity Act and urge its
adoption.
While the current homeownership rate is at a record high of 66%, the
purchase of a first home remains out of reach for many young people and
low- and moderate-income families. I believe H.R. 1776, through a
number of unique programs, will enable more Americans to purchase their
first home.
A key provision in this bill would provide under the Community
Development Block Grant (CDBG) and HOME Investment Partnerships
programs, a targeted homeownership program for uniformed municipal
employees (policemen, firemen, city maintenance workers, and teachers).
Assistance could be in the form of downpayment assistance, help with
closing costs, housing counseling, or subsidized mortgage rates. I
applaud this innovative approach.
I would like to call my colleagues' attention to a valuable pilot
program in this bill, to encourage law enforcement agents to buy homes
in locally designated high-crime areas by making them eligible for FHA
mortgage loans with no downpayment.
H.R. 1776 also authorizes HUD to distribute $25 million in
competitive grants to local governments for homeownership programs in
``homeownership zones''. These zones will be locally designated
residential areas where large-scale development projects are designed
to provide housing for low- to moderate-income families.
In addition, this bill increases the ability of senior citizens to
use ``reverse mortgages'' for living expenses--particularly long-term
care--by allowing them to refinance these mortgages.
Environmental cleanup and economic development activities related to
``Brownfields'' stand to benefit as well, by being classified as a
permanent eligible activity for CDBG funds under this bill.
Mr. Chairman, H.R. 1776 will make substantial strides towards
insuring affordable housing is a reality in our country and the dream
of first-time homeownership is attainable. I urge my colleagues to vote
``yes'' on this bill.
Mrs. McCARTHY of New York. Mr. Chairman, I rise today in support of
H.R. 1776, the American Homeownership and Economic Opportunity Act.
This important bill increases the possibility of owning a home to many
deserving American families, particularly in my district on Long
Island, NY, where homeownership opportunities lag because of
affordability concerns.
Despite a strong economy and record percentages of Americans who own
their own homes, Long Islanders continue to experience gaps in
homeownership--especially among our middle-income professionals. Hard
working professionals such as teachers, police officers, firefighters
and corrections officers should not have to struggle to own a home.
H.R. 1776 addresses this concern. It contains numerous provisions
allowing deserving Long Island teachers and public employees to obtain
mortgages with just one percent downpayment requirement through the
Federal Housing Administration. Moreover, H.R. 1776 allows qualifying
homebuyers to defer the payment of the upfront mortgage insurance
premium--usually two percent of the mortgage amount. As a result of
these beneficial provisions, qualified Long Island borrowers can expect
to save thousands of dollars in upfront costs when they purchase a
home.
In addition to assisting aspiring homeowners, this legislation also
benefits the realtors and senior citizens in my district who also
suffer from the lack of affordable housing on Long Island.
Housing is the foundation upon which everything else is built. In my
district, homeownership holds many intangible benefits ranging from
increased educational attainment for children to homeowners maintaining
a more active interest and involvement in the communities they reside.
H.R. 1776 contributes to these important outcomes and I urge my
colleagues to vote in support of this measure.
Ms. SANCHEZ. Mr. Chairman, I rise today in disappointment that my
amendment was not made in order to H.R. 1776.
My amendment would empower shared housing placement organizations
with the authority to run background checks on potential shared housing
participants.
This amendment does not mandate any agency to run background checks--
they simply authorize the shared housing agencies to request FBI files
through local and state agencies.
And the cost of this program is fully supported by user fees, not
federal tax dollars.
It makes sense to bring this proposal during this debate of H.R.
1776.
Homeownership is said to be an important building block of strong
families and healthy communities.
What's astonishing and saddening to hear, is that each year, an
estimated 1 to 2 million Americans are victims of abuse in their own
homes, namely seniors and the disabled.
As many people grow older, remaining in their homes should increase
their level of comfort and security, rather than threaten their peace
of mind.
Many seniors seeking independence during the later years of their
lives enter into shared housing agreements where they can remain in
their own homes and still receive daily care.
These arrangements are made by non-fee, home-finder referral services
that match seniors or the disabled with others who wish to share a
house, apartment, or mobile home at affordable rates.
There are more than 350 referral programs throughout the country.
Unfortunately, senior citizens and the disabled are too often
manipulated and abused physically or financially, by their caretakers
within the privacy of their own homes. And this abuse is on the rise.
Currently, there is neither a national nor a statewide standard
procedure that is available to screen shared housing participants.
Similar laws already exist to allow for background checks of child
care providers, school bus drivers, and security guards--but not shared
housing applicants.
It is now only logical to extend this provision to protect seniors in
their own homes.
These checks will give referral agencies the ability to protect their
clients from abuse and threats by known criminals.
The International Union of Police Associations and local police
departments have endorsed this amendment.
The FBI, Agency on Aging, and the Southern California Shared Housing
Coalition have all endorsed the fundamental concepts behind the
amendment, and agree that fighting elder abuse is an important cause.
With the ever-expanding Baby Boom Generation and their growing need
for long term care, we must begin addressing the safety of their care.
It is essential to pass federal legislation in order to give these
shared housing agencies

[[Page H1867]]

access to FBI criminal background reports. I have worked closely with
the FBI on this legislation to ensure that the technical language
protects all privacy rights and investigative standards.
The potential for abuse in shared housing arrangements is
preventable.
This amendment gives shared housing agencies an important tool to
protect the elderly from scam artists and criminals, and at no cost to
the federal government.
This legislation is simple, yet it could save the life and fortunes
of our elderly.
I urge my colleagues to join me in attacking crime without spending
taxpayer dollars.
It is our responsibility to give the American people the tools to do
so.
Although we will not have the opportunity to debate this issue today,
I look forward to working with my colleagues to address this very
important matter.
Mr. DOYLE. Mr. Chairman, I rise today in strong support of making it
easier for more Americans to pursue the American dream. Owning a home
and building a good community, in which to raise children, will become
less difficult because of this bill.
Neighborhoods could possibly be the most important aspect of a
child's life. Neighborhoods dictate what quality of school the child
attends; the amount of crime and social decay with which child comes in
contact; and the services that are available to them in times of need.
This bill will accomplish the very important goal of creating a
financially vested interest in creating a good environment. Homeowners
are aware that the value of their homes will decrease if the schools
are not kept up. The value of their home will decrease if crime goes
up. This bill will give the local citizens the economic incentives to
be involved in mitigating social ills and increasing the quality of
life.
This bill contains a provision that will allow Section 8 rental
assistance vouchers to be used as down payment assistance. This support
can open the door to homeownership for many low-income citizens, and
allows them to partake in the American dream. As we all know, being a
home owner allows for housing tax credits and can be the only
investment that many low-income folks make. Owning a home is a benefit
to homeowners because they now have a significant asset. Their monthly
rent check is now going to pay for their mortgage. The house will pay
off in the end for them.
H.R. 1776 will also rebuild our local neighborhoods by allowing
teachers, police officers, and firefighters the opportunity to buy a
home in the jurisdiction in which they work. In this time of economic
prosperity, there is no reason why the very people who teach our
children and serve and protect our citizens should not be able to
afford homeownership in the town they work in. They have chosen a life
of service and are intrinsic to the well-being of the community. Making
it possible for them to live in the localities is good policy, because
it gives them a reason to be involved on a personal level. It is a
stronger motivation for them to help in the creation, the rebuilding,
or the upkeep of the community they serve.
I ask my colleagues to support this very important legislation that
will bring cohesion to some disjointed communities and acknowledge the
role that public servants can play in communities.
Mr. ACKERMAN. Mr. Chairman, I rise today to indicate my strong
support on behalf of H.R. 1776, The American Homeownership and Economic
Opportunity Act. This important bill opens the prospect of
homeownership to many deserving American families, particularly in my
area of Northeast Queens, northern Nassau County and Northwestern
Suffolk County, New York where homeownership opportunities have lagged
because of affordability concerns.
Despite a strong economy and record percentages of Americans who own
their own homes, in my district we continue to experience gaps in
homeownership especially among our middle-income professionals--
teachers, police officers, firefighters, and corrections officers.
These deserving individuals have the necessary income to make their
monthly mortgage payments but not enough cash for the downpayments
necessary to purchase the home in the communities where they work.
H.R. 1776 appropriately addresses this problem. The legislation
contains important provisions that will now permit deserving Queens and
Long Island teachers and public employees to obtain mortgages with just
one percent downpayment requirement through the Federal Housing
Administration. Plus, H.R. 1776 allows qualifying homebuyers to defer
the payment of the upfront mortgage insurance premium--customarily two
percent of the mortgage amount. As a result of these beneficial
provisions, qualified borrowers can expect to save thousands of dollars
in upfront costs when they purchase a home. I cannot begin to imagine
how valuable the savings will mean for ownership in the Queens and Long
Island areas as a result of H.R. 1776.
Mr. Chairman, housing is the foundation on which everything else is
built. In Queens and Long Island, homeownership holds many tangible
benefits that range from increased educational attainment for children
residing in an owned home to homeowners maintaining a more active
interest and involvement in the communities in which they reside. H.R.
1776 certainly contributes to these important positive outcomes and I
wholeheartedly urge my colleagues to vote in support of this important
legislation.
Mr. SWEENEY. Mr. Chairman, I rise today in strong support of H.R.
1776, ``The American Homeownership and Economic Opportunity Act of
2000'' and am proud to be a cosponsor of this legislation.
Many citizens in my district dream of owning their own home. Rising
costs of living and increased amounts of government regulation often
hinder the pursuit of this dream. Fulfillment of this ambition is
sometimes unattainable without some form of assistance. H.R. 1776
provides that required assistance.
The bill affords lower and moderate income families the opportunity
to buy rather than rent housing, thus allowing them to realize the
American dream. This legislation streamlines the regulatory regime to
make it easier for state and local officials to tailor housing for the
needy to local requirements.
This Act creates a HOME Loan Guarantee program to allow communities
within my district to tap into future HOME grants for affordable
housing development. HOME is one of the most successful Federal block
grant programs because it creates affordable housing for low-income
families in rural areas. The HOME program provides a flexible resource
to States and localities to increase the supply of affordable housing,
through both construction and rehabilitation.
I plan to hold a Housing and Economic Development Forum in my own
Congressional District later this month and am proud to trumpet H.R.
1776 as a positive achievement of this Congress. I will gather with
developers, non-profit housing organizations, community bankers, state
and local officials, and community development professionals to explore
how our communities can best develop affordable housing and stimulate
economic growth. Many of the programs established in The American
Homeownership and Economic Opportunity Act will aid us in accomplishing
that goal.
The citizens of my district eagerly anticipate enactment of H.R. 1776
and the joys of owning their own home. Investing in a home is the most
significant equity investment for families throughout the country. We
all know that housing needs to be more affordable and accessible for
homeowners and H.R. 1776 provides important tools to hard working
American families looking to achieve the dream of home ownership.
Mr. Chairman, please join me in voting for this bill.
Mr. DAVIS of Illinois. Mr. Chairman, I rise today in support of H.R.
1776 and specifically Title 3. Mr. Chairman, Title 3 of the
Homeownership and Economic Opportunity Act allows public housing
agencies in lieu of providing monthly assistance payments on behalf of
a family may provide a grant to be used as a contribution toward the
down payment required to purchase a home.
While this nation is enjoying its highest homeownership rate, for
millions of low and moderate income families housing remains far too
expensive, or is severely substandard. The absence of tools to make
home ownership affordable denies many families the opportunity to
contribute to the nation's economic and social well being. Just as
importantly, many reports conclude that increased home ownership by
those who traditionally have been restricted to neighborhoods with
significant rental property or with extremely low values, can improve
the family's educational attainment, health and may reduce residential
segregation.
Passage of this bill is vitally important to my district the 7th
district of Illinois, since I represent nearly 65% of all the public
housing in the city of Chicago. Homeownership for this population prior
to this bill was not available to them.
The Homeownership and Economic Opportunity Act will help my
constituents achieve what for many families, 3 generations could not
accomplish--homeownership. It is my view that for those individuals who
toil and strain to do the deed and create things to make life worth
living the opportunity of homeownership is priceless. This is an
excellent bill and I congratulate the Chairman, Ranking member and all
members who worked to put this bill before us today.
Therefore, I encourage my colleagues on both sides of the aisle to
strongly support passage of this bill.
The CHAIRMAN. All time for general debate has expired.

[[Page H1868]]

Pursuant to the rule, the committee amendment in the nature of a
substitute printed in the bill shall be considered as an original bill
for the purpose of amendment under the 5-minute rule and shall be
considered read.
The text of the committee amendment in the nature of a substitute is
as follows:

H.R. 1776

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``American
Homeownership and Economic Opportunity Act of 2000''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.

TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

Sec. 101. Short title.
Sec. 102. Housing impact analysis.
Sec. 103. Grants for regulatory barrier removal strategies.
Sec. 104. Eligibility for community development block grants.
Sec. 105. Regulatory barriers clearinghouse.

TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

Sec. 201. Extension of loan term for manufactured home lots.
Sec. 202. Downpayment simplification.
Sec. 203. Reduced downpayment requirements for loans for teachers and
uniformed municipal employees.
Sec. 204. Preventing fraud in rehabilitation loan program.
Sec. 205. Neighborhood teacher program.
Sec. 206. Community development financial institution risk-sharing
demonstration.
Sec. 207. Hybrid ARMs.
Sec. 208. Home equity conversion mortgages.
Sec. 209. Law enforcement officer homeownership pilot program.
Sec. 210. Study of mandatory inspection requirement under single family
housing mortgage insurance program.
Sec. 211. Report on title I home improvement loan program.

TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled
families.
Sec. 303. Funding for pilot programs.

TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Public services cap.
Sec. 404. Homeownership for municipal employees.
Sec. 405. Technical amendment relating to brownfields.
Sec. 406. Income eligibility.
Sec. 407. Housing opportunities for persons with AIDS.

TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing
associations.
Sec. 503. Administrative costs.
Sec. 504. Leveraging affordable housing investment through local loan
pools.
Sec. 505. Homeownership for municipal employees.
Sec. 506. Use of section 8 assistance by ``grand-families'' to rent
dwelling units in assisted projects.
Sec. 507. Loan guarantees.
Sec. 508. Downpayment assistance for 2- and 3-family residences.

TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.
Sec. 602. Homeownership zones.
Sec. 603. Lease-to-own.
Sec. 604. Local capacity building.
Sec. 605. Consolidated application and planning requirement and super-
NOFA.
Sec. 606. Assistance for self-help housing providers.
Sec. 607. Housing counseling organizations.
Sec. 608. Community lead information centers and lead-safe housing.

TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

Sec. 701. Lands Title Report Commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.

TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
NONPROFIT ORGANIZATIONS

Sec. 801. Transfer of unoccupied and substandard HUD-held housing to
local governments and community development corporations.
Sec. 802. Transfer of HUD assets in revitalization areas.

TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

Sec. 901. Short title.
Sec. 902. Changes in amortization schedule.
Sec. 903. Deletion of ambiguous references to residential mortgages.
Sec. 904. Cancellation rights after cancellation date.
Sec. 905. Clarification of cancellation and termination issues and
lender paid mortgage insurance disclosure requirements.
Sec. 906. Definitions.

TITLE X--RURAL HOUSING HOMEOWNERSHIP

Sec. 1001. Promissory note requirement under housing repair loan
program.
Sec. 1002. Limited partnership eligibility for farm labor housing
loans.
Sec. 1003. Project accounting records and practices.
Sec. 1004. Definition of rural area.
Sec. 1005. Operating assistance for migrant farmworkers projects.
Sec. 1006. Multifamily rental housing loan guarantee program.
Sec. 1007. Enforcement provisions.
Sec. 1008. Amendments to title 18 of United States Code.

TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

Sec. 1101. Short title and references.
Sec. 1102. Findings and purposes.
Sec. 1103. Definitions.
Sec. 1104. Federal manufactured home construction and safety standards.
Sec. 1105. Abolishment of National Manufactured Home Advisory Council;
manufactured home installation.
Sec. 1106. Public information.
Sec. 1107. Research, testing, development, and training.
Sec. 1108. Fees.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings.--The Congress finds that--
(1) the priorities of our Nation should include expanding
homeownership opportunities by providing access to affordable
housing that is safe, clean, and healthy;
(2) our Nation has an abundance of conventional capital
sources available for homeownership financing;
(3) experience with local homeownership programs has shown
that if flexible capital sources are available, communities
possess ample will and creativity to provide opportunities
uniquely designed to assist their citizens in realizing the
American dream of homeownership; and
(4) each consumer should be afforded every reasonable
opportunity to access mortgage credit, to obtain the lowest
cost mortgages for which the consumer can qualify, to know
the true cost of the mortgage, to be free of regulatory
burdens, and to know what factors underlie a lender's
decision regarding the consumer's mortgage.
(b) Purpose.--It is the purpose of this Act--
(1) to encourage and facilitate homeownership by families
in the United States who are not otherwise able to afford
homeownership; and
(2) to expand homeownership through policies that--
(A) promote the ability of the private sector to produce
affordable housing without excessive government regulation;
(B) encourage tax incentives, such as the mortgage interest
deduction, at all levels of government; and
(C) facilitate the availability of flexible capital for
homeownership opportunities and provide local governments
with increased flexibility under existing Federal programs to
facilitate homeownership.

TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

SEC. 101. SHORT TITLE.

This title may be cited as the ``Housing Affordability
Barrier Removal Act of 2000''.

SEC. 102. HOUSING IMPACT ANALYSIS.

(a) Applicability.--Except as provided in subsection (b),
the requirements of this section shall apply with respect
to--
(1) any proposed rule, unless the agency promulgating the
rule--
(A) has certified that the proposed rule will not, if given
force or effect as a final rule, have a significant
deleterious impact on housing affordability; and
(B) has caused such certification to be published in the
Federal Register at the time of publication of general notice
of proposed rulemaking for the rule, together with a
statement providing the factual basis for the certification;
and
(2) any final rule, unless the agency promulgating the
rule--
(A) has certified that the rule will not, if given force or
effect, have a significant deleterious impact on housing
affordability; and
(B) has caused such certification to be published in the
Federal Register at the time of publication of the final
rule, together with a statement providing the factual basis
for the certification.

Any agency making a certification under this subsection shall
provide a copy of such certification and the statement
providing the factual basis for the certification to the
Secretary of Housing and Urban Development.
(b) Exception for Certain Banking Rules.--The requirements
of this section shall not apply to any proposed or final rule
relating to--
(1) the operations, safety, or soundness of--
(A) federally insured depository institutions or any
affiliate of such an institution (as such term is defined in
section 2(k) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(k));
(B) credit unions;
(C) the Federal home loan banks;
(D) the enterprises (as such term is defined in section
1303 of the Housing and Community Development Act of 1992 (12
U.S.C. 4502);

[[Page H1869]]

(E) a Farm Credit System institution; or
(F) foreign banks or their branches, agencies, commercial
lending companies, or representative offices that operate in
the United States, or any affiliate of a foreign bank (as
such terms are defined in section 1 of the International
Banking Act of 1978 (12 U.S.C. 3101); or
(2) the payments system or the protection of deposit
insurance funds or the Farm Credit Insurance Fund.
(c) Statement of Proposed Rulemaking.--Whenever an agency
publishes general notice of proposed rulemaking for any
proposed rule, unless the agency has made a certification
under subsection (a), the agency shall--
(1) in the notice of proposed rulemaking--
(A) state with particularity the text of the proposed rule;
and
(B) request any interested persons to submit to the agency
any written analyses, data, views, and arguments, and any
specific alternatives to the proposed rule that--
(i) accomplish the stated objectives of the applicable
statutes, in a manner comparable to the proposed rule;
(ii) result in costs to the Federal Government equal to or
less than the costs resulting from the proposed rule; and
(iii) result in housing affordability greater than the
housing affordability resulting from the proposed rule;
(2) provide an opportunity for interested persons to take
the actions specified under paragraph (1)(B) before
promulgation of the final rule; and
(3) prepare and make available for public comment an
initial housing impact analysis in accordance with the
requirements of subsection (d).
(d) Initial Housing Impact Analysis.--
(1) Requirements.--Each initial housing impact analysis
shall describe the impact of the proposed rule on housing
affordability. The initial housing impact analysis or a
summary shall be published in the Federal Register at the
same time as, and together with, the publication of general
notice of proposed rulemaking for the rule. The agency shall
transmit a copy of the initial housing impact analysis to the
Secretary of Housing and Urban Development.
(2) Monthly hud listing.--On a monthly basis, the Secretary
of Housing and Urban Development shall cause to be published
in the Federal Register, and shall make available through a
World Wide Web site of the Department, a listing of all
proposed rules for which an initial housing impact analysis
was prepared during the preceding month.
(3) Contents.--Each initial housing impact analysis
required under this subsection shall contain--
(A) a description of the reasons why action by the agency
is being considered;
(B) a succinct statement of the objectives of, and legal
basis for, the proposed rule;
(C) a description of and, where feasible, an estimate of
the extent to which the proposed rule would increase the cost
or reduce the supply of housing or land for residential
development; and
(D) an identification, to the extent practicable, of all
relevant Federal rules which may duplicate, overlap, or
conflict with the proposed rule.
(e) Proposal of Less Deleterious Alternative Rule.--
(1) Analysis.--The agency publishing a general notice of
proposed rulemaking shall review any specific analyses and
alternatives to the proposed rule which have been submitted
to the agency pursuant to subsection (c)(2) to determine
whether any alternative to the proposed rule--
(A) accomplishes the stated objectives of the applicable
statutes, in a manner comparable to the proposed rule;
(B) results in costs to the Federal Government equal to or
less than the costs resulting from the proposed rule; and
(C) results in housing affordability greater than the
housing affordability resulting from the proposed rule.
(2) New notice of proposed rulemaking.--If the agency
determines that an alternative to the proposed rule meets the
requirements under subparagraphs (A) through (C) of paragraph
(1), unless the agency provides an explanation on the record
for the proposed rule as to why the alternative should not be
implemented, the agency shall incorporate the alternative
into the final rule or, at the agency's discretion, issue a
new proposed rule which incorporates the alternative.
(f) Final Housing Impact Analysis.--
(1) Requirement.--Whenever an agency promulgates a final
rule after publication of a general notice of proposed
rulemaking, unless the agency has made the certification
under subsection (a), the agency shall prepare a final
housing impact analysis.
(2) Contents.--Each final housing impact analysis shall
contain--
(A) a succinct statement of the need for, and objectives
of, the rule;
(B) a summary of the significant issues raised during the
public comment period in response to the initial housing
impact analysis, a summary of the assessment of the agency of
such issues, and a statement of any changes made in the
proposed rule as a result of such comments; and
(C) a description of and an estimate of the extent to which
the rule will impact housing affordability or an explanation
of why no such estimate is available.
(3) Availability.--The agency shall make copies of the
final housing impact analysis available to members of the
public and shall publish in the Federal Register such
analysis or a summary thereof.
(g) Avoidance of Duplicative or Unnecessary Analyses.--
(1) Duplication.--Any Federal agency may perform the
analyses required by subsections (d) and (f) in conjunction
with or as a part of any other agenda or analysis required by
any other law, executive order, directive, or rule if such
other analysis satisfies the provisions of such subsections.
(2) Joinder.--In order to avoid duplicative action, an
agency may consider a series of closely related rules as one
rule for the purposes of subsections (d) and (f).
(h) Preparation of Analyses.--In complying with the
provisions of subsections (d) and (f), an agency may provide
either a quantifiable or numerical description of the effects
of a proposed rule or alternatives to the proposed rule, or
more general descriptive statements if quantification is not
practicable or reliable.
(i) Effect on Other Law.--The requirements of subsections
(d) and (f) do not alter in any manner standards otherwise
applicable by law to agency action.
(j) Procedure for Waiver or Delay of Completion.--
(1) Initial housing impact analysis.--An agency head may
waive or delay the completion of some or all of the
requirements of subsection (d) by publishing in the Federal
Register, not later than the date of publication of the final
rule, a written finding, with reasons therefor, that the
final rule is being promulgated in response to an emergency
that makes compliance or timely compliance with the
provisions of subsection (a) impracticable.
(2) Final housing impact analysis.--An agency head may not
waive the requirements of subsection (f). An agency head may
delay the completion of the requirements of subsection (f)
for a period of not more than 180 days after the date of
publication in the Federal Register of a final rule by
publishing in the Federal Register, not later than such date
of publication, a written finding, with reasons therefor,
that the final rule is being promulgated in response to an
emergency that makes timely compliance with the provisions of
subsection (f) impracticable. If the agency has not prepared
a final housing impact analysis pursuant to subsection (f)
within 180 days from the date of publication of the final
rule, such rule shall lapse and have no force or effect. Such
rule shall not be repromulgated until a final housing impact
analysis has been completed by the agency.
(k) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Housing affordability.--The term ``housing
affordability'' means the quantity of housing that is
affordable to families having incomes that do not exceed 150
percent of the median income of families in the area in which
the housing is located, with adjustments for smaller and
larger families. For purposes of this paragraph, area, median
family income for an area, and adjustments for family size
shall be determined in the same manner as such factors are
determined for purposes of section 3(b)(2) of the United
States Housing Act of 1937.
(2) Agency.--The term ``agency'' means each authority of
the Government of the United States, whether or not it is
within or subject to review by another agency, but does not
include--
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or possessions of
the United States;
(D) the government of the District of Columbia;
(E) agencies composed of representatives of the parties or
of representatives of organizations of the parties to the
disputes determined by them;
(F) courts-martial and military commissions;
(G) military authority exercised in the field in time of
war or in occupied territory; or
(H) functions conferred by--
(i) sections 1738, 1739, 1743, and 1744 of title 12, United
States Code;
(ii) chapter 2 of title 41, United States Code;
(iii) subchapter II of chapter 471 of title 49, United
States Code; or
(iv) sections 1884, 1891-1902, and former section
1641(b)(2), of title 50, appendix, United States Code.
(3) Families.--The term ``families'' has the meaning given
such term in section 3 of the United States Housing Act of
1937.
(4) Rule.--The term ``rule'' means any rule for which the
agency publishes a general notice of proposed rulemaking
pursuant to section 553(b) of title 5, United States Code, or
any other law, including any rule of general applicability
governing grants by an agency to State and local governments
for which the agency provides an opportunity for notice and
public comment; except that such term does not include a rule
of particular applicability relating to rates, wages,
corporate or financial structures or reorganizations thereof,
prices, facilities, appliances, services, or allowances
therefor or to valuations, costs or accounting, or practices
relating to such rates, wages, structures, prices,
appliances, services, or allowances.
(5) Significant.--The term ``significant'' means increasing
consumers' cost of housing by more than $100,000,000 per
year.
(l) Development.--Not later than 1 year after the date of
the enactment of this title, the Secretary of Housing and
Urban Development shall develop model initial and final
housing impact analyses under this section and shall cause
such model analyses to be published in the Federal Register.
The model analyses shall define the primary elements of a
housing impact analysis to instruct other agencies on how to
carry out and develop the analyses required under subsections
(a) and (d).
(m) Judicial Review.--
(1) Determination by agency.--Except as otherwise provided
in paragraph (2), any determination by an agency concerning
the applicability of any of the provisions of this title to
any action of the agency shall not be subject to judicial
review.

[[Page H1870]]

(2) Other actions by agency.--Any housing impact analysis
prepared under subsection (d) or (f) and the compliance or
noncompliance of the agency with the provisions of this title
shall not be subject to judicial review. When an action for
judicial review of a rule is instituted, any housing impact
analysis for such rule shall constitute part of the whole
record of agency action in connection with the review.
(3) Exception.--Nothing in this subsection bars judicial
review of any other impact statement or similar analysis
required by any other law if judicial review of such
statement or analysis is otherwise provided by law.

SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.

(a) Authorization of Appropriations.--Subsection (a) of
section 1204 of the Housing and Community Development Act of
1992 (42 U.S.C. 12705c(a)) is amended to read as follows:
``(a) Funding.--There is authorized to be appropriated for
grants under subsections (b) and (c) $15,000,000 for fiscal
year 2001 and such sums as may be necessary for each of
fiscal years 2002, 2003, 2004, and 2005.''.
(b) Consolidation of State and Local Grants.--Subsection
(b) of section 1204 of the Housing and Community Development
Act of 1992 (42 U.S.C. 12705c(b)) is amended--
(1) in the subsection heading, by striking ``State Grants''
and inserting ``Grant Authority'';
(2) in the matter preceding paragraph (1), by inserting
after ``States'' the following: ``and units of general local
government (including consortia of such governments)'';
(3) in paragraph (3), by striking ``a State program to
reduce State and local'' and inserting ``State, local, or
regional programs to reduce'';
(4) in paragraph (4), by inserting ``or local'' after
``State''; and
(5) in paragraph (5), by striking ``State''.
(c) Repeal of Local Grants Provision.--Section 1204 of the
Housing and Community Development Act of 1992 (42 U.S.C.
12705c) is amended by striking subsection (c).
(d) Application and Selection.--The last sentence of
section 1204(e) of the Housing and Community Development Act
of 1992 (42 U.S.C. 12705c(e)) is amended--
(1) by striking ``and for the selection of units of general
local government to receive grants under subsection (f)(2)'';
and
(2) by inserting before the period at the end the
following: ``and such criteria shall require that grant
amounts be used in a manner consistent with the strategy
contained in the comprehensive housing affordability strategy
for the jurisdiction pursuant to section 105(b)(4) of the
Cranston-Gonzalez National Affordable Housing Act''.
(e) Selection of Grantees.--Subsection (f) of section 1204
of the Housing and Community Development Act of 1992 (42
U.S.C. 12705c(f)) is amended to read as follows:
``(f) Selection of Grantees.--To the extent amounts are
made available to carry out this section, the Secretary shall
provide grants on a competitive basis to eligible grantees
based on the proposed uses of such amounts, as provided in
applications under subsection (e).''.
(f) Technical Amendments.--Section 107(a)(1) of the Housing
and Community Development Act of 1974 (42 U.S.C. 5307(a)(1))
is amended--
(1) in subparagraph (G), by inserting ``and'' after the
semicolon at the end;
(2) by striking subparagraph (H); and
(3) by redesignating subparagraph (I) as subparagraph (H).

SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT BLOCK GRANTS.

(a) In General.--Section 104(c)(1) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304(c)(1)) is
amended by inserting before the comma the following: ``,
which shall include making a good faith effort to carry out
the strategy established under section 105(b)(4) of such Act
by the unit of general local government to remove barriers to
affordable housing''.
(b) Rule of Construction.--The amendment made by subsection
(a) may not be construed to create any new private right of
action.

SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

Section 1205 of the Housing and Community Development Act
of 1992 (42 U.S.C. 12705d) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking
``receive, collect, process, and assemble'' and inserting
``serve as a national repository to receive, collect,
process, assemble, and disseminate'';
(B) in paragraph (1)--
(i) by striking ``, including'' and inserting
``(including''; and
(ii) by inserting before the semicolon at the end the
following: ``), and the prevalence and effects on affordable
housing of such laws, regulations, and policies'';
(C) in paragraph (2), by inserting before the semicolon the
following: ``, including particularly innovative or
successful activities, strategies, and plans''; and
(D) in paragraph (3), by inserting before the period at the
end the following: ``, including particularly innovative or
successful strategies, activities, and plans'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(3) by making available through a World Wide Web site of
the Department, by electronic mail, or otherwise, provide to
each housing agency of a unit of general local government
that serves an area having a population greater than 100,000,
an index of all State and local strategies and plans
submitted under subsection (a) to the clearinghouse, which--
``(A) shall describe the types of barriers to affordable
housing that the strategy or plan was designed to ameliorate
or remove; and
``(B) shall, not later than 30 days after submission to the
clearinghouse of any new strategy or plan, be updated to
include the new strategy or plan submitted.''; and
(3) by adding at the end the following new subsections:
``(c) Organization.--The clearinghouse under this section
shall be established within the Office of Policy Development
of the Department of Housing and Urban Development and shall
be under the direction of the Assistant Secretary for Policy
Development and Research.
``(d) Timing.--The clearinghouse under this section (as
amended by section 105 of the Housing Affordability Barrier
Removal Act of 2000) shall be established and commence
carrying out the functions of the clearinghouse under this
section not later than 1 year after the date of the enactment
of such Act. The Secretary of Housing and Urban Development
may comply with the requirements under this section by
reestablishing the clearinghouse that was originally
established to comply with this section and updating and
improving such clearinghouse to the extent necessary to
comply with the requirements of this section as in effect
pursuant to the enactment of such Act.''.

TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME LOTS.

Section 2(b)(3)(E) of the National Housing Act (12 U.S.C.
1703(b)(3)(E)) is amended by striking ``fifteen'' and
inserting ``twenty''.

SEC. 202. DOWNPAYMENT SIMPLIFICATION.

(a) In General.--Section 203(b) of the National Housing Act
(12 U.S.C. 1709(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by realigning the matter that
precedes clause (ii) an additional 2 ems from the left
margin;
(B) in the matter that follows subparagraph (B)(iii)--
(i) by striking the 6th sentence (relating to the increases
for costs of solar energy systems) and all that follows
through the end of the penultimate undesignated paragraph;
and
(ii) by striking the 2d and 3rd sentences of such matter;
and
(C) by striking subparagraph (B);
(2) by transferring and inserting subparagraph (A) of
paragraph (10) after subparagraph (A) of paragraph (2) and
amending such subparagraph by striking all of the matter that
precedes clause (i) and inserting the following:
``(B) not to exceed an amount equal to the sum of--'';
(3) by transferring and inserting the last undesignated
paragraph of paragraph (2) (relating to disclosure notice)
after subsection (e), realigning such transferred paragraph
so as to be flush with the left margin, and amending such
transferred paragraph by inserting ``(f) Disclosure of Other
Mortgage Products.--'' before ``In conjunction'';
(4) by transferring and inserting the sentence that
constitutes the text of paragraph (10)(B) after the period at
the end of the first sentence that follows subparagraph (B)
(relating to the definition of ``area''); and
(5) by striking paragraph (10) (as amended by the preceding
provisions this section).
(b) Conforming Amendments.--Section 245 of the National
Housing Act (12 U.S.C. 1715z-10) is amended--
(1) in subsection (a), by striking ``, or if the
mortgagor'' and all that follows through ``case of
veterans''; and
(2) in subsection (b)(3), by striking ``, or, if the'' and
all that follows through ``for veterans,''.

SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR
TEACHERS AND UNIFORMED MUNICIPAL EMPLOYEES.

(a) In General.--Section 203(b) of the National Housing Act
(12 U.S.C. 1709(b)), as amended by section 202 of this Act,
is further amended by adding at the end the following new
paragraph:
``(10) Reduced downpayment requirements for teachers and
uniformed municipal employees.--
``(A) In general.--Notwithstanding paragraph (2), in the
case of a mortgage described in subparagraph (B)--
``(i) the mortgage shall involve a principal obligation in
an amount that does not exceed the sum of 99 percent of the
appraised value of the property and the total amount of
initial service charges, appraisal, inspection, and other
fees (as the Secretary shall approve) paid in connection with
the mortgage;
``(ii) no other provision of this subsection limiting the
principal obligation of the mortgage based upon a percentage
of the appraised value of the property subject to the
mortgage shall apply; and
``(iii) the matter in paragraph (9) that precedes the first
proviso shall not apply and the mortgage shall be executed by
a mortgagor who shall have paid on account of the property at
least 1 percent of the cost of acquisition (as determined by
the Secretary) in cash or its equivalent.
``(B) Mortgages covered.--A mortgage described in this
subparagraph is a mortgage--
``(i) under which the mortgagor is an individual who--

``(I) is employed on a full-time basis as (aa) a teacher or
administrator in a public or private

[[Page H1871]]

school that provides elementary or secondary education, as
determined under State law, except that secondary education
shall not include any education beyond grade 12, or (bb) a
public safety officer (as such term is defined in section
1204 of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3796b), except that such term shall not
include any officer serving a public agency of the Federal
Government); and
``(II) has not, during the 12-month period ending upon the
insurance of the mortgage, had any present ownership interest
in a principal residence located in the jurisdiction
described in clause (ii); and

``(ii) made for a property that is located within the
jurisdiction of--

``(I) in the case of a mortgage of a mortgagor described in
clause (i)(I)(aa), the local educational agency (as such term
is defined in section 14101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801)) for the school in
which the mortgagor is employed (or, in the case of a
mortgagor employed in a private school, the local educational
agency having jurisdiction for the area in which the private
school is located); or
``(II) in the case of a mortgage of a mortgagor described
in clause (i)(I)(bb), the jurisdiction served by the public
law enforcement agency, firefighting agency, or rescue or
ambulance agency that employs the mortgagor.''.

(b) Deferral and Reduction of Up-Front Premium.--Section
203(c) of the National Housing Act (12 U.S.C. 1709(c)(2)) is
amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``Notwithstanding'' and inserting ``Except
as provided in paragraph (3) and notwithstanding''; and
(2) by adding at the end the following new paragraph:
``(3) Deferral and reduction of up-front premium.--In the
case of any mortgage described in subsection (b)(10)(B):
``(A) Paragraph (2)(A) of this subsection (relating to
collection of up-front premium payments) shall not apply.
``(B) If, at any time during the 5-year period beginning on
the date of the insurance of the mortgage, the mortgagor
ceases to be employed as described in subsection
(b)(10)(B)(i)(I) or pays the principal obligation of the
mortgage in full, the Secretary shall at such time collect a
single premium payment in an amount equal to the amount of
the single premium payment that, but for this paragraph,
would have been required under paragraph (2)(A) of this
subsection with respect to the mortgage, as reduced by 20
percent of such amount for each successive 12-month period
completed during such 5-year period before such cessation or
prepayment occurs.''.

SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN PROGRAM.

(a) In General.--Section 203(k) of the National Housing Act
(12 U.S.C. 1709(k)) is amended by adding at the end the
following new paragraph:
``(7) Prevention of fraud.--To prevent fraud under the
program for loan insurance authorized under this subsection,
the Secretary shall, by regulation, take the following
actions:
``(A) Prohibition of identity of interest.--The Secretary
shall prohibit any identity-of-interest, as such term is
defined by the Secretary, between any of the following
parties involved in a loan insured under this subsection: the
borrower (including, in the case of a borrower that is a
nonprofit organization, any member of the board of directors
or the staff of the organization), the lender, any
consultant, any real estate agent, any property inspector,
and any appraiser. Nothing in this subparagraph may be
construed to prohibit or restrict, or authorize the Secretary
to prohibit or restrict, the functioning of a affiliated
business arrangement that complies with the requirements
under section 8(c)(4) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2607(c)(4)).
``(B) Nonprofit participation.--The Secretary shall
establish minimum standards for a nonprofit organization to
participate in the program, which shall include--
``(i) requiring such an organization to disclose to the
Secretary its taxpayer identification number and evidence
sufficient to indicate that the organization is an
organization described in section 501(c) of the Internal
Revenue Code of 1986 that is exempt from taxation under
subtitle A of such Code;
``(ii) requiring that the board of directors of such an
organization be comprised only of individuals who do not
receive any compensation or other thing of value by reason of
their service on the board and who have no personal financial
interest in the rehabilitation project of the organization
that is financed with the loan insured under this subsection;
``(iii) requiring such an organization to submit to the
Secretary financial statements of the organization for the
most recent 2 years, which have been prepared by a party that
is unaffiliated with the organization and is qualified to
prepare financial statements;
``(iv) limiting to 10 the number of loans that are insured
under this subsection, made to any single such organization,
and, at any one time, have an outstanding balance of
principal or interest, except that the Secretary may increase
such numerical limitation on a case-by-case basis for good
cause shown; and
``(v) requiring such an organization to have been certified
by the Secretary as meeting the requirements under this
subsection and otherwise eligible to participate in the
program not more than 2 years before obtaining a loan insured
under this section.
``(C) Completion of work.--The Secretary shall prohibit any
lender making a loan insured under this subsection from
disbursing the final payment of loan proceeds unless the
lender has received affirmation, from the borrower under the
loan, both in writing and pursuant to an interview in person
or over the telephone, that the rehabilitation activities
financed by the loan have been satisfactorily completed.
``(D) Consultant standards.--The Secretary shall require
that any consultant, as such term is defined by the
Secretary, who is involved in a home inspection, site visit,
or preparation of bids with respect to any loan insured under
this section shall meet such standards established by the
Secretary to ensure accurate inspections and preparation of
bids.
``(E) Contractor qualification.--The Secretary shall
require, in the case of any loan that is insured under this
subsection and involves rehabilitation with a cost of $25,000
or more, that the contractor or other person performing or
supervising the rehabilitation activities financed by the
loan shall--
``(i) be certified by a nationally recognized organization
as meeting industry standards for quality of workmanship,
training, and continuing education, including financial
management;
``(ii) be licensed to conduct such activities by the State
or unit of general local government in which the
rehabilitation activities are being completed; or
``(iii) be bonded or provide such equivalent protection, as
the Secretary may require.''.
(b) Report on Activity of Nonprofit Organizations Under
Program.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Housing and Urban
Development shall submit a report to the Congress regarding
the participation of nonprofit organizations under the
rehabilitation loan program under section 203(k) of the
National Housing Act (12 U.S.C. 1709(k)). The report shall--
(1) determine and describe the extent of participation in
the program by such organizations;
(2) identify and compare the default and claim rates for
loans made under the program to nonprofit organizations and
to owner-occupier participants;
(3) analyze the impact, on such organizations and the
program, of prohibiting such organizations from participating
in the program; and
(4) identify other opportunities for such organizations to
acquire financing or credit enhancement for rehabilitation
activities.
(c) Regulations.--The Secretary of Housing and Urban
Development shall issue final regulations and any other
administrative orders or notices necessary to carry out the
provisions of this section and the amendments made by this
section not later than 120 days after the date of the
enactment of this Act.

SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.

(a) Short Title.--This section may be cited as the
``Neighborhood Teachers Act''.
(b) Congressional Findings.--The Congress finds that--
(1) teachers are an integral part of our communities;
(2) other than families, teachers are often the most
important mentors to children, providing them with the values
and skills for self-fulfillment in adult life; and
(3) the Neighborhood Teachers Act recognizes the value
teachers bring to community and family life and is designed
to encourage and reward teachers that serve in our most needy
communities.
(c) Discount and Downpayment Assistance for Teachers.--
Section 204(h) of the National Housing Act (12 U.S.C.
1710(h)) is amended--
(1) by redesignating paragraphs (7) through (10) as
paragraphs (8) through (11), respectively; and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) 50 percent discount for teachers purchasing
properties that are eligible assets.--
``(A) Discount.--A property that is an eligible asset and
is sold, during fiscal years 2000 through 2004, to a teacher
for use in accordance with subparagraph (B) shall be sold at
a price that is equal to 50 percent of the appraised value of
the eligible property (as determined in accordance with
paragraph (6)(B)). In the case of a property eligible for
both a discount under this paragraph and a discount under
paragraph (6), the discount under paragraph (6) shall not
apply.
``(B) Primary residence.--An eligible property sold
pursuant to a discount under this paragraph shall be used,
for not less than the 3-year period beginning upon such sale,
as the primary residence of a teacher.
``(C) Sale methods.--The Secretary may sell an eligible
property pursuant to a discount under this paragraph--
``(i) to a unit of general local government or nonprofit
organization (pursuant to paragraph (4) or otherwise), for
resale or transfer to a teacher; or
``(ii) directly to a purchaser who is a teacher.
``(D) Resale.--In the case of any purchase by a unit of
general local government or nonprofit organization of an
eligible property sold at a discounted price under this
paragraph, the sale agreement under paragraph (8) shall--
``(i) require the purchasing unit of general local
government or nonprofit organization to provide the full
benefit of the discount to the teacher obtaining the
property; and
``(ii) in the case of a purchase involving multiple
eligible assets, any of which is such an eligible property,
designate the specific eligible property or properties to be
subject to the requirements of subparagraph (B).
``(E) Mortgage downpayment assistance.--If a teacher
purchases an eligible property pursuant to a discounted sale
price under this paragraph and finances such purchase through
a mortgage insured under this title, notwithstanding any
provision of section 203 the downpayment on such mortgage
shall be $100.
``(F) Prevention of undue profit.--The Secretary shall
issue regulations to prevent undue

[[Page H1872]]

profit from the resale of eligible properties in violation of
the requirement under subparagraph (B).
``(G) Awareness program.--From funds made available for
salaries and expenses for the Office of Policy Support of the
Department of Housing and Urban Development, each field
office of the Department shall make available to elementary
schools and secondary schools within the jurisdiction of the
field office and to the public--
``(i) a list of eligible properties located within the
jurisdiction of the field office that are available for
purchase by teachers under this paragraph; and
``(ii) other information designed to make such teachers and
the public aware of the discount and downpayment assistance
available under this paragraph.
``(H) Definitions.--For the purposes of this paragraph, the
following definitions shall apply:
``(i) The terms `elementary school' and `secondary school'
have the meanings given such terms in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801), except that, for purposes of this paragraph,
elementary education (as used in such section) shall include
pre-Kindergarten education.
``(ii) The term `eligible property' means an eligible asset
described in paragraph (2)(A) of this subsection.
``(iii) The term `teacher' means an individual who is
employed on a full-time basis, in an elementary or secondary
school, as a State-certified classroom teacher or
administrator.''.
(d) Conforming Amendments.--Section 204(h) of the National
Housing Act (12 U.S.C. 1710(h)) is amended--
(1) in paragraph (4)(B)(ii), by striking ``paragraph (7)''
and inserting ``paragraph (8)'';
(2) in paragraph (5)(B)(i), by striking ``paragraph (7)''
and inserting ``paragraph (8)''; and
(3) in paragraph (6)(A), by striking ``paragraph (8)'' and
inserting ``paragraph (9)''.
(e) Regulations.--Not later than 90 days after the date of
the enactment of this Act, the Secretary shall issue
regulations to implement the amendments made by this section.

SEC. 206. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION RISK-
SHARING DEMONSTRATION.

Section 249 of the National Housing Act (12 U.S.C. 1715z-
14) is amended--
(1) by striking the section heading and inserting the
following:

``risk-sharing demonstration'';

(2) by striking ``reinsurance'' each place such term
appears and insert ``risk-sharing'';
(3) in subsection (a)--
(A) in the first sentence, by striking ``private mortgage
insurers'' and inserting ``insured community development
financial institutions''; and
(B) in the second sentence--
(i) by striking ``two'' and inserting ``4''; and
(ii) by striking ``March 15, 1988'' and inserting ``the
expiration of the 5-year period beginning on the date of the
enactment of the American Homeownership and Economic
Opportunity Act of 2000'';
(4) in subsection (b)--
(A) by striking ``private mortgage insurance companies''
each place such term appears and inserting ``insured
community development financial institutions'';
(B) in the first sentence, by striking ``which have been
determined to be qualified insurers under section
302(b)(2)(C)'';
(C) by striking paragraph (1) and inserting the following
new paragraph:
``(1) assume the first loss on any mortgage insured
pursuant to section 203(b), 234, or 245 that covers a one- to
four-family dwelling and is included in the program under
this section, up to the percentage of loss that is set forth
in the risk-sharing contract;''; and
(D) in paragraph (2)--
(i) by striking ``carry out (under appropriate delegation)
such'' and inserting ``delegate underwriting,''; and
(ii) by striking ``function'' and inserting ``functions'';
(5) in subsection (c)--
(A) in the first sentence--
(i) by striking ``of'' the first place it appears and
insert ``for'';
(ii) by striking ``insurance reserves'' and inserting
``loss reserves''; and
(iii) by striking ``such insurance'' and inserting ``such
reserves''; and
(B) in the second sentence, by striking ``private mortgage
insurance company'' and inserting ``insured community
development financial institution'';
(6) in subsection (d), by striking ``private mortgage
insurance company'' and inserting ``insured community
development financial institution''; and
(7) by adding at the end the following new subsection:
``(e) Insured Community Development Financial
Institutions.--For purposes of this section, the term
`insured community development financial institution' means a
community development financial institution, as such term is
defined in section 103 of Reigle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4702) that is
an insured depository institution (as such term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)) or an insured credit union (as such term is defined in
section 101 of the Federal Credit Union Act (12 U.S.C.
1752)).''.

SEC. 207. HYBRID ARMS.

(a) In General.--Section 251 of the National Housing Act
(12 U.S.C. 1715z-16) is amended--
(1) in subsection (a), by inserting ``In General.--'' after
``(a)'';
(2) by striking subsection (b) and inserting the following
new subsection:
``(b) Disclosure.--In the case of any loan application for
a mortgage to be insured under any provision of this section,
the Secretary shall require that the prospective mortgagee
for the mortgage shall, at the time of loan application, make
available to the prospective mortgagor a written explanation
of the features of an adjustable rate mortgage consistent
with the disclosure requirements applicable to variable rate
mortgages secured by a principal dwelling under the Truth in
Lending Act (15 U.S.C. 1601 et seq.).'';
(3) in subsection (c), by inserting ``Limitation on
Insurance Authority.--'' after ``(c)''; and
(4) by adding at the end the following new subsection:
``(d) Hybrid ARMs.--The Secretary may insure under this
subsection a mortgage that--
``(1) has an effective rate of interest that shall be--
``(A) fixed for a period of not less than the first 3 years
of the mortgage term;
``(B) initially adjusted by the mortgagee upon the
expiration of such period and annually thereafter; and
``(C) in the case of the initial interest rate adjustment,
shall be subject to the limitation under clause (2) of the
last sentence of subsection (a) (relating to prohibiting
annual increases of more than 1 percent) only if the interest
rate remains fixed for 5 or fewer years; and
``(2) otherwise meets the requirements for insurance under
subsection (a) that are not inconsistent with the
requirements under paragraph (1) of this subsection.''.
(b) Implementation.--The Secretary of Housing and Urban
Development may implement section 251(d) of the National
Housing Act (12 U.S.C. 1715z-16(d)), as added by subsection
(a) of this section, in advance of rulemaking.

SEC. 208. HOME EQUITY CONVERSION MORTGAGES.

(a) Insurance for Mortgages to Refinance Existing HECMs.--
(1) In General.--Section 255 of the National Housing Act
(12 U.S.C. 1715z-20) is amended--
(A) by redesignating subsection (k) as subsection (m); and
(B) by inserting after subsection (j) the following new
subsection:
``(k) Insurance Authority for Refinancings.--
``(1) In general.--The Secretary may, upon application by a
mortgagee, insure under this subsection any mortgage given to
refinance an existing home equity conversion mortgage insured
under this section.
``(2) Anti-churning disclosure.--The Secretary shall, by
regulation, require that the mortgagee of a mortgage insured
under this subsection, provide to the mortgagor, within an
appropriate time period and in a manner established in such
regulations, a good faith estimate of: (A) the total cost of
the refinancing; and (B) the increase in the mortgagor's
principal limit as measured by the estimated initial
principal limit on the mortgage to be insured under this
subsection less the current principal limit on the home
equity conversion mortgage that is being refinanced and
insured under this subsection.
``(3) Waiver of counseling requirement.--The mortgagor
under a mortgage insured under this subsection may waive the
applicability, with respect to such mortgage, of the
requirements under subsection (d)(2)(B) (relating to third
party counseling), but only if--
``(A) the mortgagor has received the disclosure required
under paragraph (2);
``(B) the increase in the principal limit described in
paragraph (2) exceeds the amount of the total cost of
refinancing (as described in such paragraph) by an amount to
be determined by the Secretary; and
``(C) the time between the closing of the original home
equity conversion mortgage that is refinanced through the
mortgage insured under this subsection and the application
for a refinancing mortgage insured under this subsection does
not exceed 5 years.
``(4) Credit for premiums paid.--Notwithstanding section
203(c)(2)(A), the Secretary may reduce the amount of the
single premium payment otherwise collected under such section
at the time of the insurance of a mortgage refinanced and
insured under this subsection. The amount of the single
premium for mortgages refinanced under this subsection shall
be determined by the Secretary based on the actuarial study
required under paragraph (5).
``(5) Actuarial study.--Not later than 180 days after the
date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall conduct
an actuarial analysis to determine the adequacy of the
insurance premiums collected under the program under this
subsection with respect to--
``(A) a reduction in the single premium payment collected
at the time of the insurance of a mortgage refinanced and
insured under this subsection;
``(B) the establishment of a single national limit on the
benefits of insurance under subsection (g) (relating to
limitation on insurance authority); and
``(C) the combined effect of reduced insurance premiums and
a single national limitation on insurance authority.
``(6) Fees.--The Secretary may establish a limit on the
origination fee that may be charged to a mortgagor under a
mortgage insured under this subsection, except that such
limitation shall provide that the origination fee may be
fully financed with the mortgage and shall include any fees
paid to correspondent mortgagees approved by the Secretary.
The Secretary shall prohibit the charging of any broker fees
in connection with mortgages insured under this
subsection.''.
(2) Regulations.--The Secretary shall issue any final
regulations necessary to implement the amendments made by
paragraph (1) of this subsection, which shall take effect not
later than the expiration of the 180-day period beginning on
the date of the enactment of this Act. The regulations shall
be issued after notice and

[[Page H1873]]

opportunity for public comment in accordance with the
procedure under section 553 of title 5, United States Code,
applicable to substantive rules (notwithstanding subsections
(a)(2), (b)(B), and (d)(3) of such section).
(b) Housing Cooperatives.--Section 255(b) of the National
Housing Act (12 U.S.C. 1715z-20(b)) is amended--
(1) in paragraph (2), by striking `` `mortgage',''; and
(2) by adding at the end the following new paragraphs:
``(4) Mortgage.--The term `mortgage' means a first mortgage
or first lien on real estate, in fee simple, on all stock
allocated to a dwelling in a residential cooperative housing
corporation, or on a leasehold--
``(A) under a lease for not less than 99 years that is
renewable; or
``(B) under a lease having a period of not less than 10
years to run beyond the maturity date of the mortgage.
``(5) First mortgage.--The term `first mortgage' means such
classes of first liens as are commonly given to secure
advances on, or the unpaid purchase price of, real estate or
all stock allocated to a dwelling unit in a residential
cooperative housing corporation, under the laws of the State
in which the real estate or dwelling unit is located,
together with the credit instruments, if any, secured
thereby.''.
(c) Waiver of Up-Front Premiums for Mortgages Used for
Costs of Long-Term Care Insurance or Health Care.--Section
255 of the National Housing Act (12 U.S.C. 1715z-20) is
amended by inserting after subsection (k) (as added by
subsection (a) of this section) the following new subsection:
``(l) Waiver of Up-Front Premiums.--
``(1) Mortgages to fund long-term care insurance.--In the
case of any mortgage insured under this section under which
the total amount (except as provided in paragraph (3)) of all
future payments described in subsection (b)(3) will be used
only for costs of a qualified long-term care insurance
contract (as such term is defined in section 7702B of the
Internal Revenue Code of 1986 (26 U.S.C. 7702B)) that covers
the mortgagor or members of the household residing in the
property that is subject to the mortgage, notwithstanding
section 203(c)(2), the Secretary shall not charge or collect
the single premium payment otherwise required under
subparagraph (A) of such section to be paid at the time of
insurance.
``(2) Mortgages to fund health care costs.--In the case of
any mortgage insured under this section under which the
future payments described in subsection (b)(3) will be used
only for costs for health care services (as such term is
defined by the Secretary) for the mortgagor or members of the
household residing in the property that is subject to the
mortgage and comply with limitations on such payments, as
shall be established by the Secretary and based upon the
purposes of this subsection and the accumulated equity of the
mortgagor in the property, notwithstanding section 203(c)(2),
the Secretary shall not charge or collect the single premium
payment otherwise required under subparagraph (A) of such
section to be paid at the time of insurance.
``(3) Authority to refinance existing mortgage and finance
closing costs.--A mortgage described in paragraphs (1) or (2)
may provide financing of amounts that are used to satisfy
outstanding mortgage obligations (in accordance with such
limitations as the Secretary shall prescribe) any amounts
used for initial service charges, appraisal, inspection, and
other fees (as approved by the Secretary) in connection with
such mortgage, and the amount of future payments described in
subsection (b)(3) under the mortgage shall be reduced
accordingly.''.
(d) Study of Single National Mortgage Limit.--The Secretary
of Housing and Urban Development shall conduct an actuarially
based study of the effects of establishing, for mortgages
insured under section 255 of the National Housing Act (12
U.S.C. 1715z-20), a single maximum mortgage amount limitation
in lieu of applicability of section 203(b)(2) of such Act (12
U.S.C. 1709(b)(2)). The study shall--
(1) examine the effects of establishing such limitation at
different dollar amounts; and
(2) examine the effects of such various limitations on--
(A) the risks to the General Insurance Fund established
under section 519 of such Act;
(B) the mortgage insurance premiums that would be required
to be charged to mortgagors to ensure actuarial soundness of
such Fund; and
(C) take into consideration the various approaches to
providing credit to borrowers who refinance home equity
conversion mortgages insured under section 255 of such Act.

Not later than 180 days after the date of the enactment of
this Act, the Secretary shall complete the study under this
subsection and submit a report describing the study and the
results of the study to the Committee on Banking and
Financial Services of the House of Representatives and to the
Committee on Banking, Housing, and Urban Affairs of the
Senate.

SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT
PROGRAM.

(a) Assistance for Law Enforcement Officers.--The Secretary
of Housing and Urban Development shall carry out a pilot
program in accordance with this section to assist Federal,
State, and local law enforcement officers purchasing homes in
locally-designated high-crime areas.
(b) Eligibility.--To be eligible for assistance under this
section, a law enforcement officer shall--
(1) have completed not less than 6 months of service as a
law enforcement officer as of the date that the law
enforcement officer applies for such assistance; and
(2) agree, in writing, to use the residence purchased with
such assistance as the primary residence of the law
enforcement officer for not less than 3 years after the date
of purchase.
(c) Mortgage Assistance.--If a law enforcement officer
purchases a home in locally-designated high-crime area and
finances such purchase through a mortgage insured under title
II of the National Housing Act (12 U.S.C. 1707 et seq.),
notwithstanding any provision of section 203 or any other
provision of the National Housing Act, the following shall
apply:
(1) Downpayment.--
(A) In general.--There shall be no downpayment required if
the purchase price of the property is not more than the
reasonable value of the property, as determined by the
Secretary.
(B) Purchase price exceeds value.--If the purchase price of
the property exceeds the reasonable value of the property, as
determined by the Secretary, the required downpayment shall
be the difference between such reasonable value and the
purchase price.
(2) Closing costs.--The closing costs and origination fee
for such mortgage may be included in the loan amount.
(3) Insurance premium payment.--There shall be 1 insurance
premium payment due on the mortgage. Such insurance premium
payment--
(A) shall be equal to 1 percent of the loan amount;
(B) shall be due and considered earned by the Secretary at
the time of the loan closing; and
(C) may be included in the loan amount and paid from the
loan proceeds.
(d) Locally-Designated High-Crime Area.--
(1) In general.--Any unit of local government may request
that the Secretary designate any area within the jurisdiction
of that unit of local government as a locally-designated
high-crime area for purposes of this section if the proposed
area--
(A) has a crime rate that is significantly higher than the
crime rate of the non-designated area that is within the
jurisdiction of the unit of local government; and
(B) has a population that is not more than 25 percent of
the total population of area within the jurisdiction of the
unit of local government.
(2) Deadline for consideration of request.--Not later than
60 days after receiving a request under paragraph (1), the
Secretary shall approve or disapprove the request.
(e) Law Enforcement Officer.--For purposes of this section,
the term ``law enforcement officer'' has such meaning as the
Secretary shall provide, except that such term shall include
any individual who is employed as an officer in a
correctional institution.
(f) Sunset.--The Secretary shall not approve any
application for assistance under this section that is
received by the Secretary after the expiration of the 3-year
period beginning on the date that the Secretary first makes
available assistance under the pilot program under this
section.

SEC. 210. STUDY OF MANDATORY INSPECTION REQUIREMENT UNDER
SINGLE FAMILY HOUSING MORTGAGE INSURANCE
PROGRAM.

The Comptroller General of the United States shall conduct
a study regarding the inspection of properties purchased with
loans insured under section 203 of the National Housing Act.
The study shall evaluate the following issues:
(1) The feasibility of requiring inspections of all
properties purchased with loans insured under such section.
(2) The level of financial losses or savings to the Mutual
Mortgage Insurance Fund that are likely to occur if
inspections are required on properties purchased with loans
insured under such section.
(3) The potential impact on the process of buying a home if
inspections of properties purchased with loans insured under
such section are required, including the process of buying a
home in underserved areas where losses to the Mutual Mortgage
Insurance Fund are greatest.
(4) The difference, if any, in the quality of homes
purchased with loans insured under such section that are
inspected before purchase and such homes that are not
inspected before purchase.
(5) The cost to homebuyers of requiring inspections before
purchase of properties with loans insured under such section.
(6) The extent, if any, to which requiring inspections of
properties purchased with loans insured under such section
will result in adverse selection of loans insured under such
section.
(7) The extent of homebuyer knowledge regarding property
inspections and the extent to which such knowledge affects
the decision of homebuyers to opt for or against having a
property inspection before purchasing a home.
(8) The impact of the Homebuyer Protection Plan implemented
by the Department of Housing and Urban Development on the
number of appraisers authorized to appraise homes with
mortgages insured under section 203 of the National Housing
Act.
(9) The cost to homebuyers incurred as a result of the
Homebuyer Protection plan, taking into consideration, among
other factors, an increase in appraisal fees.
(10) The benefit or adverse impact of the Homebuyer
Protection Plan on minority homebuyers.
(11) The extent to which the appraisal requirements of the
Homebuyer Protection Plan conflict with State laws regarding
appraisals and home inspections.
Not later than the expiration of the 1-year period
beginning on the date of the enactment of this Act, the
Comptroller General shall submit to the Congress a report
containing the results of the study and any recommendations
with respect to the issues specified under this section.

[[Page H1874]]

SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN PROGRAM.

(a) In General.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Housing and Urban
Development shall submit a report to the Congress containing
recommendations for improvements to the property improvement
loan insurance program under title I of the National Housing
Act, including improvements designed to address problems
relating to home improvement contractors obtaining loans on
behalf of homeowners.
(b) Consultation.--In developing and determining
recommendations for inclusion in the report under this
section and in preparing the report, the Secretary shall
consult with interested persons, organizations, and entities,
including representatives of the lending industry, the home
improvement industry, and consumer organizations.

TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

SEC. 301. DOWNPAYMENT ASSISTANCE.

(a) Amendments.--Section 8(y) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(y)) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) Downpayment assistance.--
``(A) Authority.--A public housing agency may, in lieu of
providing monthly assistance payments under this subsection
on behalf of a family eligible for such assistance and at the
discretion of the public housing agency, provide assistance
for the family in the form of a single grant to be used only
as a contribution toward the downpayment required in
connection with the purchase of a dwelling for fiscal year
2000 and each fiscal year thereafter to the extent provided
in advance in appropriations Acts.
``(B) Amount.--The amount of a downpayment grant on behalf
of an assisted family may not exceed the amount that is equal
to the sum of the assistance payments that would be made
during the first year of assistance on behalf of the family,
based upon the income of the family at the time the grant is
to be made.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect immediately after the amendments made by
section 555(c) of the Quality Housing and Work Responsibility
Act of 1998 take effect pursuant to such section.

SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR
DISABLED FAMILIES.

(a) In General.--A public housing agency providing tenant-
based assistance on behalf of an eligible family under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) may provide assistance for a disabled family that
purchases a dwelling unit (including a dwelling unit under a
lease-purchase agreement) that will be owned by 1 or more
members of the disabled family and will be occupied by the
disabled family, if the disabled family--
(1) purchases the dwelling unit before the expiration of
the 3-year period beginning on the date that the Secretary
first implements the pilot program under this section;
(2) demonstrates that the disabled family has income from
employment or other sources (including public assistance), as
determined in accordance with requirements of the Secretary,
that is not less than twice the payment standard established
by the public housing agency (or such other amount as may be
established by the Secretary);
(3) except as provided by the Secretary, demonstrates at
the time the disabled family initially receives tenant-based
assistance under this section that one or more adult members
of the disabled family have achieved employment for the
period as the Secretary shall require;
(4) participates in a homeownership and housing counseling
program provided by the agency; and
(5) meets any other initial or continuing requirements
established by the public housing agency in accordance with
requirements established by the Secretary.
(b) Determination of Amount of Assistance.--
(1) In general.--
(A) Monthly expenses not exceeding payment standard.--If
the monthly homeownership expenses, as determined in
accordance with requirements established by the Secretary, do
not exceed the payment standard, the monthly assistance
payment shall be the amount by which the homeownership
expenses exceed the highest of the following amounts, rounded
to the nearest dollar:
(i) 30 percent of the monthly adjusted income of the
disabled family.
(ii) 10 percent of the monthly income of the disabled
family.
(iii) If the disabled family is receiving payments for
welfare assistance from a public agency, and a portion of
those payments, adjusted in accordance with the actual
housing costs of the disabled family, is specifically
designated by that agency to meet the housing costs of the
disabled family, the portion of those payments that is so
designated.
(B) Monthly expenses exceed payment standard.--If the
monthly homeownership expenses, as determined in accordance
with requirements established by the Secretary, exceed the
payment standard, the monthly assistance payment shall be the
amount by which the applicable payment standard exceeds the
highest of the amounts under clauses (i), (ii), and (iii) of
subparagraph (A).
(2) Calculation of amount.--
(A) Low-income families.--A disabled family that is a low-
income family shall be eligible to receive 100 percent of the
amount calculated under paragraph (1).
(B) Income between 81 and 89 percent of median.--A disabled
family whose income is between 81 and 89 percent of the
median for the area shall be eligible to receive 66 percent
of the amount calculated under paragraph (1).
(C) Income between 90 and 99 percent of median.--A disabled
family whose income is between 90 and 99 percent of the
median for the area shall be eligible to receive 33 percent
of the amount calculated under paragraph (1).
(D) Income more than 99 percent of median.--A disabled
family whose income is more than 99 percent of the median for
the area shall not be eligible to receive assistance under
this section.
(c) Inspections and Contract Conditions.--
(1) In general.--Each contract for the purchase of a
dwelling unit to be assisted under this section shall--
(A) provide for pre-purchase inspection of the dwelling
unit by an independent professional; and
(B) require that any cost of necessary repairs be paid by
the seller.
(2) Annual inspections not required.--The requirement under
subsection (o)(8)(A)(ii) of the United States Housing Act of
1937 for annual inspections shall not apply to dwelling units
assisted under this section.
(d) Other Authority of the Secretary.--The Secretary may--
(1) limit the term of assistance for a disabled family
assisted under this section;
(2) provide assistance for a disabled family for the entire
term of a mortgage for a dwelling unit if the disabled family
remains eligible for such assistance for such term; and
(3) modify the requirements of this section as the
Secretary determines to be necessary to make appropriate
adaptations for lease-purchase agreements.
(e) Assistance Payments Sent to Lender.--The Secretary
shall remit assistance payments under this section directly
to the mortgagee of the dwelling unit purchased by the
disabled family receiving such assistance payments.
(f) Inapplicability of Certain Provisions.--Assistance
under this section shall not be subject to the requirements
of the following provisions:
(1) Subsection (c)(3)(B) of section 8 of the United States
Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the United
States Housing Act of 1937.
(3) Any other provisions of section 8 of the United States
Housing Act of 1937 governing maximum amounts payable to
owners and amounts payable by assisted families.
(4) Any other provisions of section 8 of the United States
Housing Act of 1937 concerning contracts between public
housing agencies and owners.
(5) Any other provisions of the United States Housing Act
of 1937 that are inconsistent with the provisions of this
section.
(g) Reversion to Rental Status.--
(1) Non-fha mortgages.--If a disabled family receiving
assistance under this section defaults under a mortgage not
insured under the National Housing Act, the disabled family
may not continue to receive rental assistance under section 8
of the United States Housing Act of 1937 unless it complies
with requirements established by the Secretary.
(2) All mortgages.--A disabled family receiving assistance
under this section that defaults under a mortgage may not
receive assistance under this section for occupancy of
another dwelling unit owned by 1 or more members of the
disabled family.
(3) Exception.--This subsection shall not apply if the
Secretary determines that the disabled family receiving
assistance under this section defaulted under a mortgage due
to catastrophic medical reasons or due to the impact of a
federally declared major disaster or emergency.
(h) Regulations.--Not later than 90 days after the date of
the enactment of this Act, the Secretary shall issue
regulations to implement this section. Such regulations may
not prohibit any public housing agency providing tenant-based
assistance on behalf of an eligible family under section 8 of
the United States Housing Act of 1937 from participating in
the pilot program under this section.
(i) Definition of Disabled Family.--For the purposes of
this section, the term ``disabled family'' has the meaning
given the term ``person with disabilities'' in section
811(k)(2) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013(k)(2)).

SEC. 303. FUNDING FOR PILOT PROGRAMS.

(a) Authorization of Appropriations.--There is authorized
to be appropriated $2,000,000 for fiscal year 2001 for
assistance in connection with the existing homeownership
pilot programs carried out under the demonstration program
authorized under to section 555(b) of the Quality Housing and
Work Responsibility Act of 1998 (Public Law 105-276; 112
Stat. 2613).
(b) Use.--Subject to subsection (c), amounts made available
pursuant to this section shall be used only through such
homeownership pilot programs to provide, on behalf of
families participating in such programs, amounts for
downpayments in connection with dwellings purchased by such
families using assistance made available under section 8(y)
of the United States Housing Act of 1937 (42 U.S.C.
1437f(y)). No such downpayment grant may exceed 20 percent of
the appraised value of the dwelling purchased with assistance
under such section 8(y).
(c) Matching Requirement.--The amount of assistance made
available under this section for any existing homeownership
pilot program may not exceed twice the amount donated from
sources other than this section for use under the program for
assistance described in subsection (b). Amounts donated from
other sources may include amounts from State housing finance
agencies and Neighborhood Housing Services of America.

[[Page H1875]]

TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 401. REAUTHORIZATION.

(a) Authorization of Appropriations.--The last sentence of
section 103 of the Housing and Community Development Act of
1974 (42 U.S.C. 5303) is amended to read as follows: ``For
purposes of assistance under section 106, there is authorized
to be appropriated $4,900,000,000 for fiscal year 2001 and
such sums as may be necessary for each of fiscal years 2002,
2003, 2004, and 2005.''.
(b) Entitlement Grants.--
(1) In general.--Section 102(a)(5)(B) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a)(5)(B))
is amended--
(A) by inserting ``(I)'' after ``(iii)''; and
(B) by inserting before the period at the end the
following: ``, or (II) has a population in its unincorporated
areas of not less than 450,000, except that a town or
township which is designated as a city pursuant to this
subclause shall have only its unincorporated areas considered
as a city for purposes of this title''.
(2) Treatment as separate from urban counties.--Section
102(d) of the Housing and Community Development Act of 1974
(42 U.S.C. 5302(d)) is amended--
(A) by inserting ``(1)'' after ``(d)''; and
(B) by adding at the end the following new paragraph:
``(2) Notwithstanding paragraph (1), a town or township
that is classified as a city by reason of subclause (II) of
section 102(a)(5)(B)(iii) shall be treated, for purposes of
eligibility for a grant under section 106(b)(1) from amounts
made available for a fiscal year beginning after the date of
the enactment of the American Homeownership and Economic
Opportunity Act of 2000, as an entity separate from the urban
county in which it is located.''.
(3) Eligibility of certain urban counties.--Section
102(a)(6) of the Housing and Community Development Act of
1974 (42 U.S.C. 5302(a)(6)) is amended--
(1) in subparagraph (D)--
(A) in clause (v), by striking ``or'' at the end;
(B) in clause (vi), by striking the period at the end and
inserting ``; or''; and
(C) by adding at the end the following new clause:
``(vii)(I) has consolidated its government with one or more
municipal governments, such that within the county boundaries
there are no unincorporated areas, (II) has a population of
not less than 650,000, over which the consolidated government
has the authority to undertake essential community
development and housing assistance activities, (III) for more
than 10 years, has been classified as an entitlement area for
purposes of allocating and distributing funds under section
106, and (IV) as of the date of the enactment of this clause,
has over 90 percent of the county's population within the
jurisdiction of the consolidated government.''; and
(2) by adding at the end the following new subparagraph:
``(F) Notwithstanding any other provision of this
paragraph, any county that was classified as an urban county
pursuant to subparagraph (A) for fiscal year 1999, includes
10 cities each having a population of less than 50,000, and
has a population in its unincorporated areas of 190,000 or
more but less than 200,000, shall thereafter remain
classified as an urban county.''.

SEC. 402. PROHIBITION OF SET-ASIDES.

Section 103 of the Housing and Community Development Act of
1974 (42 U.S.C. 5303), as amended by section 401 of this Act,
is further amended--
(1) by inserting after ``Sec. 103.'' the following: ``(a)
In General.--''; and
(2) by adding at the end the following new subsection:
``(b) Prohibition of Set-Asides.--Except as provided in
paragraphs (1) and (2) of section 106(a) and section 107,
amounts appropriated pursuant to subsection (a) of this
section or otherwise to carry out this title (other than
section 108) shall be used only for formula-based grants
allocated pursuant to section 106 and may not be otherwise
used unless the provision of law providing for such other use
specifically refers to this subsection and specifically
states that such provision modifies or supersedes the
provisions of this subsection.''.

SEC. 403. PUBLIC SERVICES CAP.

Section 105(a)(8) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking
``fiscal years 1993'' and all that follows through ``unit of
general local government'' and inserting the following:
``fiscal years 1993 through 2006 to the City of Los Angeles,
the County of Los Angeles, or any other unit of general local
government located in the County of Los Angeles, such city,
such county, or each such unit of general local government,
respectively,''.

SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

(a) Eligible Activities.--Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)) is
amended--
(1) in paragraph (22)(C), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end
and inserting a semicolon; and
(3) by inserting after paragraph (23) the following new
paragraph:
``(24) provision of direct assistance to facilitate and
expand homeownership among uniformed employees (including
policemen, firemen, and sanitation and other maintenance
workers) of, and teachers who are employees of, the
metropolitan city or urban county (or an agency or school
district serving such city or county) receiving grant amounts
under this title pursuant to section 106(b) or the unit of
general local government (or an agency or school district
serving such unit) receiving such grant amounts pursuant to
section 106(d), except that--
``(A) such assistance may only be provided on behalf of
such employees who are first-time homebuyers under the
meaning given such term in section 104(14) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704(14)), except that, for purposes of this paragraph, such
section shall be applied by substituting `section 105(a)(24)
of the Housing and Community Development Act of 1974' for
`title II';
``(B) notwithstanding section 102(a)(20)(B) or any other
provision of this title, such assistance may be provided on
behalf of such employees whose family incomes do not exceed--
``(i) 115 percent of the median income of the area
involved, as determined by the Secretary with adjustments for
smaller and larger families; or
``(ii) with respect only to areas that the Secretary
determines have high housing costs, taking into consideration
median house prices and median family incomes for the area,
150 percent of the median income of the area involved, as
determined by the Secretary with adjustments for smaller and
larger families;
``(C) such assistance shall be used only for acquiring
principal residences for such employees, in a manner that
involves obligating amounts with respect to any particular
mortgage over a period of one year or less, by--
``(i) providing amounts for downpayments on mortgages;
``(ii) paying reasonable closing costs normally associated
with the purchase of a residence;
``(iii) obtaining pre- or post-purchase counseling relating
to the financial and other obligations of homeownership; or
``(iv) subsidizing mortgage interest rates; and
``(D) any residence purchased using assistance provided
under this paragraph shall be subject to restrictions on
resale that are--
``(i) established by the metropolitan city, urban county,
or unit of general local government providing such
assistance; and
``(ii) determined by the Secretary to be appropriate to
comply with subparagraphs (A) and (B) of section 215(b)(3) of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745(b)(3)), except that, for purposes of this
paragraph, such subparagraphs shall be applied by
substituting `section 105(a)(24) of the Housing and Community
Development Act of 1974' for `this title';''.
(b) Primary Objectives.--Section 105(c) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(c)) is
amended by adding at the end the following new paragraph:
``(5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any
assisted activity described in subsection (a)(24) of this
section shall be considered, for purposes of this title, to
benefit persons of low and moderate income and to be directed
toward the objective under section 101(c)(3).''.

SEC. 405. TECHNICAL AMENDMENT RELATING TO BROWNFIELDS.

Section 105(a) of the Housing and Community Development Act
of 1974 (42 U.S.C. 5305(a)), as amended by section 404 of
this Act, is further amended--
(1) in paragraph (25), by striking the period and inserting
``; and''; and
(2) by adding at the end the following new paragraph:
``(26) environmental cleanup and economic development
activities related to Brownfields projects in conjunction
with the appropriate environmental regulatory agencies.''.

SEC. 406. INCOME ELIGIBILITY.

(a) In General.--In addition to the exceptions granted
pursuant to section 590 of the Quality Housing and Work
Responsibility Act of 1998 (42 U.S.C. 5301 note), the
Secretary of Housing and Urban Development shall, for not
less than 10 other jurisdictions that are metropolitan cities
or urban counties for purposes of title I of the Housing and
Community Development Act of 1974, grant exceptions not later
than 90 days after the date of the enactment of this Act for
such jurisdictions that provide that--
(1) for purposes of the HOME investment partnerships
program under title II of the Cranston-Gonzalez National
Affordable Housing Act, the limitation based on percentage of
median income that is applicable under section 104(10),
214(1)(A), or 215(a)(1)(A) for any area of the jurisdiction
shall be the numerical percentage that is specified in such
section; and
(2) for purposes of the community development block grant
program under title I of the Housing and Community
Development Act of 1974, the limitation based on percentage
of median income that is applicable pursuant to section
102(a)(20) for any area within the State or unit of general
local government shall be the numerical percentage that is
specified in subparagraph (A) of such section.
(b) Selection.--In selecting the jurisdictions for which to
grant such exceptions, the Secretary shall consider the
relative median income of such jurisdictions and shall give
preference to jurisdictions with the highest housing costs.

SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

Section 863 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12912) is amended to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

``There is authorized to be appropriated to carry out this
subtitle $260,000,000 for fiscal year 2001 and such sums as
may be necessary for each of fiscal years 2002, 2003, 2004,
and 2005.''.

TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 501. REAUTHORIZATION.

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

[[Page H1876]]

``SEC. 205. AUTHORIZATION.

``(a) In General.--There is authorized to be appropriated
to carry out this title $1,650,000,000 for fiscal year 2001
and such sums as may be necessary for each of fiscal years
2002, 2003, 2004, and 2005, of which--
``(1) not more than $25,000,000 in each such fiscal year
shall be for community housing partnership activities
authorized under section 233; and
``(2) not more than $15,000,000 in each such fiscal year
shall be for activities in support of State and local housing
strategies authorized under subtitle C, of which, in each of
fiscal years 2001 and 2002, $3,000,000 shall be for funding
grants under section 246.
``(b) Prohibition of Set-Asides.--Except as provided in
subsection (a) of this section and section 217(a)(3), amounts
appropriated pursuant to subsection (a) of this section or
otherwise to carry out this title shall be used only for
formula-based grants allocated pursuant to section 217 and
may not be otherwise used unless the provision of law
providing for such other use specifically refers to this
subsection and specifically states that such provision
modifies or supersedes the provisions of this subsection.''.
(b) Allocations of Amounts.--Section 104(19) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704(19)) is amended by adding at the end the following:
``The term `city' shall have the meaning given such term in
section 102(a)(5)(B) of such Act. A town or township that is
classified as a city by reason of subclause (II) of section
102(a)(5)(A)(B)(iii) of such Act shall be treated,
notwithstanding section 102(d)(1) of such Act, as an entity
separate from the urban county in which it is located for
purposes of allocation of amounts under section 217 of this
Act to units of general local government from amounts made
available for any fiscal year beginning after the date of the
enactment of the American Homeownership and Economic
Opportunity Act of 2000.''.
(c) Pilot Program for Developing Regional Housing
Strategies.--Subtitle C of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12781 et seq.) is
amended by adding at the end the following new section:

``SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE
REGIONAL HOUSING AFFORDABILITY STRATEGIES.

``(a) Authority.--The Secretary may, using any amounts made
available for grants under this section, make not more than 3
grants for each of fiscal years 2001 and 2002 to consortia of
units of general local government described in subsection (b)
for costs of developing and implementing comprehensive
housing affordability strategies on a regional basis.
``(b) Eligible Consortia.--A consortium of units of general
local government described in this subsection is a consortium
that--
``(1) is eligible under section 216(2) to be deemed a unit
of general local government for purposes of this title; and
``(2) consists of multiple units of general local
government; and
``(3) contains only units of general local government that
are geographically contiguous.
``(c) Multi-State Requirement.--In each fiscal year in
which grants are made under this section, not less than one
of the consortia that receives a grant shall be a consortium
described in subsection (b) that includes units of general
local government from 2 or more States.''.

SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES AND
MUTUAL HOUSING ASSOCIATIONS.

(a) Congressional Findings.--Section 202(10) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721(10)) is amended by inserting ``mutual housing
associations,'' after ``limited equity cooperatives,''.
(b) Definitions.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) is
amended--
(1) by redesignating paragraph (23) as paragraph (22);
(2) by redesignating paragraph (24) (relating to the
definition of ``insular area'') as paragraph (23); and
(3) by adding at the end the following new paragraphs:
``(26) The term `limited equity cooperative' means a
cooperative housing corporation which, in a manner determined
by the Secretary to be acceptable, restricts income
eligibility of purchasers of membership shares of stock in
the cooperative corporation or the initial and resale price
of such shares, or both, so that the shares remain available
and affordable to low-income families.
``(27) The term `mutual housing association' means a
private entity that--
``(A) is organized under State law;
``(B) is described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code;
``(C) owns, manages, and continuously develops affordable
housing by providing long-term housing for low- and moderate-
income families;
``(D) provides that eligible families who purchase
membership interests in the association shall have a right to
residence in a dwelling unit in the housing during the period
that they hold such membership interest; and
``(E) provides for the residents of such housing to
participate in the ongoing management of the housing.''.
(c) Eligibility.--Section 215 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745) is
amended--
(1) in subsection (b), by adding after and below paragraph
(4) the following:

``Housing that is owned by a limited equity cooperative or a
mutual housing association may be considered by a
participating jurisdiction to be housing for homeownership
for purposes of this title to the extent that ownership or
membership in such a cooperative or association,
respectively, constitutes homeownership under State or local
laws.''; and
(2) in subsection (a), by adding at the end the following
new paragraph:
``(6) Limited equity cooperatives and mutual housing
associations.--Housing that is owned by a limited equity
cooperative or a mutual housing association may be considered
by a participating jurisdiction to be rental housing for
purposes of this title to the extent that ownership or
membership in such a cooperative or association,
respectively, constitutes rental of a dwelling under State or
local laws.''.

SEC. 503. ADMINISTRATIVE COSTS.

Section 212(c) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12742(c)) is amended by adding at the
end the following new sentence: ``A participating
jurisdiction may use amounts made available under this
subsection for a fiscal year for administrative and planning
costs by amortizing the costs of administration and planning
activities under this subtitle over the entire duration of
such activities.''.

SEC. 504. LEVERAGING AFFORDABLE HOUSING INVESTMENT THROUGH
LOCAL LOAN POOLS.

(a) Eligible Investments.--Section 212(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12742(b))
is amended by inserting after ``interest subsidies'' the
following: ``, advances to provide reserves for loan pools or
to provide partial loan guarantees,''.
(b) Timely Investment of Trust Funds.--Section 218(e) of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12748) is amended to read as follows:
``(e) Investment Within 15 Days.--
``(1) In general.--The participating jurisdiction shall,
not later than 15 days after funds are drawn from the
jurisdiction's HOME Investment Trust Fund, invest such funds,
together with any interest earned thereon, in the affordable
housing for which the funds were withdrawn.
``(2) Loan pools.--In the case of a participating
jurisdiction that withdraws Trust Fund amounts for investment
in the form of an advance for reserves or partial loan
guarantees under a program providing such credit enhancement
for loans for affordable housing, the amounts shall be
considered to be invested for purposes of paragraph (1) upon
the completion of both of the following actions:
``(A) Control of the amounts is transferred to the program.
``(B) The jurisdiction and the entity operating the program
enter into a written agreement that--
``(i) provides that such funds may be used only in
connection with such program;
``(ii) defines the terms and conditions of the loan pool
reserve or partial loan guarantees; and
``(iii) provides that such entity shall ensure that amounts
from non-Federal sources have been contributed, or are
committed for contribution, to the pool available for loans
for affordable housing that will be backed by such reserves
or loan guarantees in an amount equal to 10 times the amount
invested from Trust Fund amounts.''.
(c) Expiration of Right To Withdraw Funds.--Section 218(g)
of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12748(g)) is amended to read as follows:
``(g) Expiration of Right To Draw Funds.--
``(1) In general.--If any funds becoming available to a
participating jurisdiction under this title are not placed
under binding commitment to affordable housing within 24
months after the last day of the month in which such funds
are deposited in the jurisdiction's HOME Investment Trust
Fund, the jurisdiction's right to draw such funds from the
HOME Investment Trust Fund shall expire. The Secretary shall
reduce the line of credit in the participating jurisdiction's
HOME Investment Trust Fund by the expiring amount and shall
reallocate the funds by formula in accordance with section
217(d).
``(2) Loan pools.--In the case of a participating
jurisdiction that withdraws Trust Fund amounts for investment
in the manner provided under subsection (e)(2), the amounts
shall be considered to be placed under binding commitment to
affordable housing for purposes of paragraph (1) of this
subsection at the time that the amounts are obligated for use
under, and are subject to, a written agreement described in
subsection (e)(2)(B).''.
(d) Treatment of Mixed Income Loan Pools as Affordable
Housing.--
(1) In general.--Section 215 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745) is amended
by adding at the end the following new subsection:
``(c) Loan Pools.--Notwithstanding subsections (a) and (b),
housing financed using amounts invested as provided in
section 218(e)(2) shall qualify as affordable housing only if
the housing complies with the following requirements:
``(1) In the case of housing that is for homeownership--
``(A) of the units financed with amounts so invested--
``(i) not less than 75 percent are principal residences of
owners whose families qualify as low-income families--

``(I) in the case of a contract to purchase existing
housing, at the time of purchase;
``(II) in the case of a lease-purchase agreement for
existing housing or for housing to be constructed, at the
time the agreement is signed; or
``(III) in the case of a contract to purchase housing to be
constructed, at the time the contract is signed;

``(ii) all are principal residences of owners whose
families qualify as moderate-income families--

``(I) in the case of a contract to purchase existing
housing, at the time of purchase;

[[Page H1877]]

``(II) in the case of a lease-purchase agreement for
existing housing or for housing to be constructed, at the
time the agreement is signed; or
``(III) in the case of a contract to purchase housing to be
constructed, at the time the contract is signed; and

``(iii) all comply with paragraphs (3) and (4) of
subsection (b), except that paragraph (3) shall be applied
for purposes of this clause by substituting `subsection
(c)(2)(B)' and `low- and moderate-income homebuyers' for
`paragraph (2)' and `low-income homebuyers', respectively;
and
``(B) units made available for purchase only by families
who qualify as low-income families shall have an initial
purchase price that complies with the requirements of
subsection (b)(1).
``(2) In the case of housing that is for rental, the
housing--
``(A) complies with subparagraphs (D) through (F) of
subsection (a)(1);
``(B)(i) has not less than 75 percent of the units occupied
by households that qualify as low-income families and is
occupied only by households that qualify as moderate-income
families; or
``(ii) temporarily fails to comply with clause (i) only
because of increases in the incomes of existing tenants and
actions satisfactory to the Secretary are being taken to
ensure that all vacancies in the housing are being filled in
accordance with clause (i) until such noncompliance is
corrected; and
``(C) bears rents, in the case of units made available for
occupancy only by households that qualify as low-income
families, that comply with the requirements of subsection
(a)(1)(A).
Paragraphs (4) and (5) of subsection (a) shall apply to
housing that is subject to this subsection.''.
(2) Definition.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704), as amended
by section 502 of this Act, is further amended by adding at
the end the following new paragraph:
``(28) The term `moderate income families' means families
whose incomes do not exceed the median income for the area,
as determined by the Secretary with adjustments for smaller
and larger families, except that the Secretary may establish
income ceilings higher or lower than the median income for
the area on the basis of the Secretary's findings that such
variations are necessary because of prevailing levels of
construction costs or fair market rents, or unusually high or
low family incomes.''.

SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

(a) Eligible Activities.--Paragraph (2) of section 215(b)
of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745(b)(2)) is amended to read as follows:
``(2) is the principal residence of an owner who--
``(A) is a member of a family that qualifies as a low-
income family--
``(i) in the case of a contract to purchase existing
housing, at the time of purchase;
``(ii) in the case of a lease-purchase agreement for
existing housing or for housing to be constructed, at the
time the agreement is signed; or
``(iii) in the case of a contract to purchase housing to be
constructed, at the time the contract is signed; or
``(B)(i) is a uniformed employee (which shall include
policemen, firemen, and sanitation and other maintenance
workers) or a teacher who is an employee, of the
participating jurisdiction (or an agency or school district
serving such jurisdiction) that is investing funds made
available under this subtitle to support homeownership of the
residence; and
``(ii) is a member of a family whose income, at the time
referred to in clause (i), (ii), or (iii) of subparagraph
(A), as appropriate, and as determined by the Secretary with
adjustments for smaller and larger families, does not exceed
115 percent of the median income of the area, except that,
with respect only to such areas that the Secretary determines
have high housing costs, taking into consideration median
house prices and median family incomes for the area, such
income limitation shall be 150 percent of the median income
of the area, as determined by the Secretary with adjustments
for smaller and larger families;''.
(b) Income Targeting.--Section 214(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12744(2))
is amended by inserting before the semicolon the following:
``or families described in section 215(b)(2)(B)''.
(c) Eligible Investments.--Section 212(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12742(b))
is amended by adding at the end the following new sentence:
``Notwithstanding the preceding sentence, in the case of
homeownership assistance for residences of owners described
in section 215(b)(2)(B), funds made available under this
subtitle may only be invested (A) to provide amounts for
downpayments on mortgages, (B) to pay reasonable closing
costs normally associated with the purchase of a residence,
(C) to obtain pre- or post-purchase counseling relating to
the financial and other obligations of homeownership, or (D)
to subsidize mortgage interest rates.''.

SEC. 506. USE OF SECTION 8 ASSISTANCE BY ``GRAND-FAMILIES''
TO RENT DWELLING UNITS IN ASSISTED PROJECTS.

Section 215(a) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(a)), as amended by the preceding
provisions of this Act, is further amended by adding at the
end the following new paragraph:
``(7) Waiver of qualifying rent.--
``(A) In general.--For the purpose of providing affordable
housing appropriate for families described in subparagraph
(B), the Secretary may, upon the application of the project
owner, waive the applicability of subparagraph (A) of
paragraph (1) with respect to a dwelling unit if--
``(i) the unit is occupied by such a family, on whose
behalf tenant-based assistance is provided under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f);
``(ii) the rent for the unit is not greater than the
existing fair market rent for comparable units in the area,
as established by the Secretary under section 8 of the United
States Housing Act of 1937; and
``(iii) the Secretary determines that the waiver, together
with waivers under this paragraph for other dwelling units in
the project, will result in the use of amounts described in
clause (iii) in an effective manner that will improve the
provision of affordable housing for such families.
``(B) Eligible families.--A family described in this
subparagraph is a family that consists of at least one
elderly person (who is the head of household) and one or more
of such person's grand children, great grandchildren, great
nieces, great nephews, or great great grandchildren (as
defined by the Secretary), but does not include any parent of
such grandchildren, great grandchildren, great nieces, great
nephews, or great great grandchildren. Such term includes any
such grandchildren, great grandchildren, great nieces, great
nephews, or great great grandchildren who have been legally
adopted by such elderly person.''.

SEC. 507. LOAN GUARANTEES.

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

``SEC. 227. LOAN GUARANTEES.

``(a) Authority.--The Secretary may, upon such terms and
conditions as the Secretary may prescribe, guarantee and make
commitments to guarantee, only to such extent or in such
amounts as provided in appropriations Acts, the notes or
other obligations issued by eligible participating
jurisdictions or by public agencies designated by and
acting on behalf of eligible participating jurisdictions
for purposes of financing (including credit enhancements
and debt service reserves) the acquisition, new
construction, reconstruction, or moderate or substantial
rehabilitation of affordable housing (including real
property acquisition, site improvement, conversion, and
demolition), and other related expenses (including
financing costs and relocation expenses of any displaced
persons, families, businesses, or organizations). Housing
funded under this section shall meet the requirements of
this subtitle.
``(b) Requirements.--Notes or other obligations guaranteed
under this section shall be in such form and denominations,
have such maturities, and be subject to such conditions as
may be prescribed by the Secretary. The Secretary may not
deny a guarantee under this section on the basis of the
proposed repayment period for the note or other obligation,
unless the period is more than 20 years or the Secretary
determines that the period otherwise causes the guarantee to
constitute an unacceptable financial risk.
``(c) Limitation on Total Notes and Obligations.--The
Secretary may not guarantee or make a commitment to guarantee
any note or other obligation if the total outstanding notes
or obligations guaranteed under this section on behalf of the
participating jurisdiction issuing the note or obligation
(excluding any amount defeased under a contract entered into
under subsection (e)(1)) would thereby exceed an amount equal
to 5 times the amount of the participating jurisdiction's
latest allocation under section 217.
``(d) Use of Program Funds.--Notwithstanding any other
provision of this subtitle, funds allocated to the
participating jurisdiction under this subtitle (including
program income derived therefrom) are authorized for use in
the payment of principal and interest due on the notes or
other obligations guaranteed pursuant to this section and the
payment of such servicing, underwriting, or other issuance or
collection charges as may be specified by the Secretary.
``(e) Security.--To assure the full repayment of notes or
other obligations guaranteed under this section, and payment
of the issuance or collection charges specified by the
Secretary under subsection (d), and as a prior condition for
receiving such guarantees, the Secretary shall require the
participating jurisdiction (and its designated public agency
issuer, if any) to--
``(1) enter into a contract, in a form acceptable to the
Secretary, for repayment of such notes or other obligations
and the other specified charges;
``(2) pledge as security for such repayment any allocation
for which the participating jurisdiction may become eligible
under this subtitle; and
``(3) furnish, at the discretion of the Secretary, such
other security as may be deemed appropriate by the Secretary
in making such guarantees, which may include increments in
local tax receipts generated by the housing assisted under
this section or disposition proceeds from the sale of land or
housing.
``(f) Repayment Authority.--The Secretary may,
notwithstanding any other provision of this subtitle or any
other Federal, State, or local law, apply allocations pledged
pursuant to subsection (e) to any repayments due the United
States as a result of such guarantees.
``(g) Full Faith and Credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
made under this section. Any such guarantee made by the
Secretary shall be conclusive evidence of the eligibility of
the notes or other obligations for such guarantee with
respect to principal and interest, and the validity of any
such guarantee so made shall be incontestable in the hands of
a holder of the guaranteed obligations.
``(h) Tax Status.--With respect to any obligation
guaranteed pursuant to this section, the

[[Page H1878]]

guarantee and the obligation shall be designed in a manner
such that the interest paid on such obligation shall be
included in gross income for purposes of the Internal Revenue
Code of 1986.
``(i) Monitoring.--The Secretary shall monitor the use of
guarantees under this section by eligible participating
jurisdictions. If the Secretary finds that 50 percent of the
aggregate guarantee authority for any fiscal year has been
committed, the Secretary may impose limitations on the amount
of guarantees any 1 participating jurisdiction may receive
during that fiscal year.
``(j) Guarantee of Trust Certificates.--
``(1) Authority.--The Secretary may, upon such terms and
conditions as the Secretary deems appropriate, guarantee the
timely payment of the principal of and interest on such trust
certificates or other obligations as may--
``(A) be offered by the Secretary or by any other offeror
approved for purposes of this subsection by the Secretary;
and
``(B) be based on and backed by a trust or pool composed of
notes or other obligations guaranteed or eligible for
guarantee by the Secretary under this section.
``(2) Full faith and credit.--To the same extent as
provided in subsection (g), the full faith and credit of the
United States is pledged to the payment of all amounts which
may be required to be paid under any guarantee by the
Secretary under this subsection.
``(3) Subrogation.--In the event the Secretary pays a claim
under a guarantee issued under this section, the Secretary
shall be subrogated fully to the rights satisfied by such
payment.
``(4) Other powers and rights.--No State or local law, and
no Federal law, shall preclude or limit the exercise by the
Secretary of--
``(A) the power to contract with respect to public
offerings and other sales of notes, trust certificates, and
other obligations guaranteed under this section, upon such
terms and conditions as the Secretary deems appropriate;
``(B) the right to enforce, by any means deemed appropriate
by the Secretary, any such contract; and
``(C) the Secretary's ownership rights, as applicable, in
notes, certificates or other obligations guaranteed under
this section, or constituting the trust or pool against which
trust certificates or other obligations guaranteed under this
section are offered.
``(k) Aggregate Limitation.--The total amount of
outstanding obligations guaranteed on a cumulative basis by
the Secretary under this section shall not at any time exceed
$2,000,000,000.''.

SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAMILY
RESIDENCES.

(a) Authority.--The Secretary of Housing and Urban
Development shall carry out a pilot program under this
section under which covered jurisdictions may use amounts
described in subsection (b) to make loans to eligible
homebuyers for use as downpayments on 2- and 3-family
residences.
(b) Covered Assistance.--Notwithstanding section 105 of the
Housing and Community Development Act of 1974 (42 U.S.C.
5305) and section 212 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742), a covered
jurisdiction may use amounts provided to the jurisdiction
pursuant to section 106(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5406(b)) and amounts in
the HOME Investment Trust Fund for the jurisdiction for
downpayment loans meeting the requirements of subsection (d)
to homebuyers meeting the requirements of subsection (c), but
only to the extent such jurisdictions agree to comply with
the requirements of this section, as the Secretary may
require.
(c) Eligible Homebuyers.--A homebuyer meets the
requirements of this subsection only if the homebuyer is an
individual or family--
(1) whose income does not exceed 80 percent of the median
family income for the area within which the residence to be
purchased with the downpayment loan under subsection (d) is
located; except that the Secretary may, pursuant to a request
by a covered jurisdiction demonstrating that the jurisdiction
has high housing costs (taking into consideration median home
prices and median family incomes for the area), increase the
percentage limitation under this paragraph to not more than
110 percent of the median family income for the area;
(2) who has successfully completed a program regarding the
responsibilities and financial management involved in
homeownership and ownership of rental property that is
approved by the Secretary;
(3) has a satisfactory credit history and record as a
tenant of rental housing; and
(4) who, if such individual or family has an income that
exceeds 80 percent of the median income for the area, enters
into a binding agreement to comply with the requirements
under subsection (e) (relating to affordability of other
dwelling units in the residence).
(d) No-Interest Downpayment Loans.--A loan meets the
requirements of this subsection only if--
(1) the principal obligation of the loan--
(A) may be used only for a downpayment for acquisition of a
2- or 3-family residence and for closing costs and other
costs payable at the time of closing, as the Secretary shall
provide; and
(B) does not exceed the amount that is equal to the sum of
(i) 7 percent of the purchase price of the residence, and
(ii) such closing and other costs;
(2) the borrower under the loan is paying, for acquisition
of the residence, at least 3 percent of the cost of
acquisition of the residence in cash or its equivalent;
(3) the borrower under the loan will occupy a dwelling unit
in the residence purchased using the loan as the principal
residence of the borrower;
(4) the loan terms--
(A) do not require the borrower to be pre-qualified for a
loan that finances the remainder of the purchase price of a
residence described in paragraph (1)(A); and
(B) provide that the proceeds of the loan are available for
use (as provided in paragraph (1)) only during the 4-month
period beginning upon the making of the loan to the borrower
and that such proceeds shall revert to the covered
jurisdiction upon the conclusion of such period if the
borrower has not entered into a contract for purchase of a
residence meeting the requirements of such paragraph before
such conclusion, except that the Secretary shall provide that
covered jurisdictions may extend such 4-month period under
such circumstances as the Secretary shall prescribe;
(5) the loan terms provide for repayment of the principal
obligation of the loan, without interest, at such time as the
covered jurisdiction may provide, except that the principal
obligation shall be immediately repayable at the time that
the borrower--
(A) transfers or sells the borrower's ownership interest in
such residence or ceases to use the residence purchased with
the loan proceeds as his or her principal residence; or
(B) obtains a subsequent loan secured by such residence or
any equity of the borrower in such residence, the proceeds of
which are not used to prepay or pay off the entire balance
due on the existing loan secured by such residence; or
(6) the loan terms provide that, upon sale of the residence
purchased with the proceeds of the loan, the borrower shall
repay to the covered jurisdiction (together with the
principal obligation of the loan repayable pursuant to
paragraph (5)(A)) an additional amount that bears the same
ratio to any increase in the price of the residence upon such
sale (compared to the price paid for the residence upon
purchase using such loan) as the amount of the loan bears to
the purchase price paid for the residence in the purchase
using such loan; and
(7) the loan complies with such other requirements as the
Secretary may prescribe.
(e) Affordability of Rental Units.--Any dwelling units in
the residence purchased using a loan provided pursuant to the
authority under this section to a borrower described in
subsection (c)(4) of this section shall be used only as
rental dwelling units and shall be made available for rental
only at a monthly rental price that does not exceed the fair
market rent under section 8(c)(2)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as
periodically adjusted, for a unit of the applicable size
located in the area in which the residence is located.
Compliance with this subsection shall be monitored and
enforced by the covered jurisdiction providing the amounts
for the downpayment loan under this section for the purchase
of such residence.
(f) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Covered jurisdiction.--The term ``covered
jurisdiction'' means, with respect to a fiscal year--
(A) a metropolitan city or urban county that receives a
grant for such fiscal year pursuant to section 106(b) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5306(b)); or
(B) a jurisdiction that is a participating jurisdiction for
such fiscal year for purposes of the HOME Investment
Partnerships Act (42 U.S.C. 12721 et seq.).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.

TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT
CORPORATION.

Section 608(a)(1) of the Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8107(a)(1)) is amended by striking
the first sentence and inserting the following: ``There is
authorized to be appropriated to the corporation to carry out
this title $95,000,000 for fiscal year 2001 and such sums as
may be necessary for each of fiscal years 2002 through 2005.
Of the amounts appropriated to the corporation for fiscal
year 2001, $5,000,000 shall be available only for the
corporation to provide assistance under duplex homeownership
programs established before the date of the enactment of the
American Homeownership and Economic Opportunity Act of 2000
through Neighborworks Homeownership Center pilot projects
established before such date of enactment.''.

SEC. 602. HOMEOWNERSHIP ZONES.

Section 186 of the Housing and Community Development Act of
1992 (42 U.S.C. 12898a) is amended to read as follows:

``SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

``(a) Authority.--The Secretary of Housing and Urban
Development may make grants to units of general local
government to assist homeownership zones. Homeownership zones
are contiguous, geographically defined areas, primarily
residential in nature, in which large-scale development
projects are designed to reclaim distressed neighborhoods by
creating homeownership opportunities for low- and moderate-
income families. Projects in homeownership zones are intended
to serve as a catalyst for private investment, business
creation, and neighborhood revitalization.
``(b) Eligible Activities.--Amounts made available under
this section may be used for projects that include any of the
following activities in the homeownership zone:
``(1) Acquisition, construction, and rehabilitation of
housing.
``(2) Site acquisition and preparation, including
demolition, construction, reconstruction, or installation of
public and other site improvements and utilities directly
related to the homeownership zone.
``(3) Direct financial assistance to homebuyers.

[[Page H1879]]

``(4) Homeownership counseling.
``(5) Relocation assistance.
``(6) Marketing costs, including affirmative marketing
activities.
``(7) Other project-related costs.
``(8) Reasonable administrative costs (up to 5 percent of
the grant amount).
``(9) Other housing-related activities proposed by the
applicant as essential to the success of the homeownership
zone and approved by the Secretary.
``(c) Application.--To be eligible for a grant under this
section, a unit of general local government shall submit an
application for a homeownership zone grant in such form and
in accordance with such procedures as the Secretary shall
establish.
``(d) Selection Criteria.--The Secretary shall select
applications for funding under this section through a
national competition, using selection criteria established by
the Secretary, which shall include--
``(1) the degree to which the proposed activities will
result in the improvement of the economic, social, and
physical aspects of the neighborhood and the lives of its
residents through the creation of new homeownership
opportunities;
``(2) the levels of distress in the homeownership zone as a
whole, and in the immediate neighborhood of the project for
which assistance is requested;
``(3) the financial soundness of the plan for financing
homeownership zone activities;
``(4) the leveraging of other resources; and
``(5) the capacity to successfully carry out the plan.
``(e) Grant Approval Amounts.--The Secretary may establish
a maximum amount for any grant for any funding round under
this section. A grant may not be made in an amount that
exceeds the amount that the Secretary determines is necessary
to fund the project for which the application is made.
``(f) Program Requirements.--A homeownership zone proposal
shall--
``(1) provide for a significant number of new homeownership
opportunities that will make a visible improvement in an
immediate neighborhood;
``(2) not be inconsistent with such planning and design
principles as may be prescribed by the Secretary;
``(3) be designed to stimulate additional investment in
that area;
``(4) provide for partnerships with persons or entities in
the private and nonprofit sectors;
``(5) incorporate a comprehensive approach to
revitalization of the neighborhood;
``(6) establish a detailed time-line for commencement and
completion of construction activities; and
``(7) provide for affirmatively furthering fair housing.
``(g) Income Targeting.--At least 51 percent of the
homebuyers assisted with funds under this section shall have
household incomes at or below 80 percent of median income for
the area, as determined by the Secretary.
``(h) Environmental Review.--For purposes of environmental
review, decisionmaking, and action pursuant to the National
Environmental Policy Act of 1969 and other provisions of law
that further the purposes of such Act, a grant under this
section shall be treated as assistance under the HOME
Investment Partnerships Act and shall be subject to the
regulations issued by the Secretary to implement section 288
of such Act.
``(i) Review, Audit, and Reporting.--The Secretary shall
make such reviews and audits and establish such reporting
requirements as may be necessary or appropriate to determine
whether the grantee has carried out its activities in a
timely manner and in accordance with the requirements of this
section. The Secretary may adjust, reduce, or withdraw
amounts made available, or take other action as appropriate,
in accordance with the Secretary's performance reviews and
audits under this section.
``(j) Authorization.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal
year 2001 and such sums as may be necessary for fiscal year
2002, to remain available until expended.''.

SEC. 603. LEASE-TO-OWN.

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

SEC. 604. LOCAL CAPACITY BUILDING.

Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C.
9816 note) is amended--
(1) in subsection (a), by inserting ``National Association
of Housing Partnerships,'' after ``Humanity,''; and
(2) in subsection (e), by striking ``$25,000,000'' and all
that follows and inserting ``, for each fiscal year, such
sums as may be necessary to carry out this section.''.

SEC. 605. CONSOLIDATED APPLICATION AND PLANNING REQUIREMENT
AND SUPER-NOFA.

(a) Consolidated Application.--Section 106 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12706) is
amended to read as follows:

``SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING
AND DEVELOPMENT PROGRAMS.

``(a) Requirement.--The Secretary shall, by regulation,
provide for jurisdictions to comply with the planning and
application requirements under the covered programs under
subsection (b) by submitting to the Secretary, for a program
year, a single consolidated submission under this section
that complies with the requirements for planning and
application submissions under the laws relating to the
covered programs and shall serve, for the jurisdiction, as
the planning document and an application for funding under
the covered programs.
``(b) Covered programs.--The covered programs under this
subsection are the following programs:
``(1) The HOME investment partnerships program under title
II of this Act (42 U.S.C. 12721 et seq.).
``(2) The community development block grant program under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
``(3) The economic development initiative program under
section 108(q) of the Housing and Community Development Act
of 1974 (42 U.S.C. 5308(q)).
``(4) The emergency shelter grants program under subtitle B
of title IV of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11371 et seq.).
``(5) The housing opportunities for persons with AIDS
program under subtitle D of title VIII of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12901 et
seq.).
``(c) Program Year.--In establishing requirements for a
consolidated submission under this section, the Secretary
shall provide for a consolidated program year, which shall
comply with the various application and review deadlines
under the covered programs.
``(d) Adequacy of Existing Regulations.--The regulations of
the Secretary relating to consolidated submissions for
community planning and development programs, part 91 of title
24, Code of Federal Regulations, as in effect on March 1,
1999, shall be considered to be sufficient to comply with
this section, except to the extent that the program referred
to in paragraph (3) of subsection (b) is not covered by such
regulations.
``(e) Consistency.--The Secretary shall, by regulation or
otherwise, as deemed by the Secretary to be appropriate,
require any application for housing assistance under title II
of this Act, assistance under the Housing and Community
Development Act of 1974, or assistance under the Stewart B.
McKinney Homeless Assistance Act, to contain or be
accompanied by a certification by an appropriate State or
local public official that the proposed housing activities
are consistent with the housing strategy of the jurisdiction
to be served.''.
(b) Super-NOFA.--The Department of Housing and Urban
Development Act is amended by inserting after section 12 (42
U.S.C. 3537a) the following new section:

``SEC. 13. NOTICE OF FUNDING AVAILABILITY.

``(a) Requirement.--In making amounts for a fiscal year
under the covered programs under subsection (b) available to
applicants, the Secretary shall issue a consolidated notice
of funding availability that--
``(1) applies to as many of the covered programs as the
Secretary determines is practicable;
``(2) simplifies the application process for funding under
such programs by providing for application under various
covered programs through a single, unified application;
``(3) promotes comprehensive approaches to housing and
community development by providing for applicants to identify
coordination of efforts under various covered programs; and
``(4) clearly informs prospective applicants of the general
and specific requirements under law for applying for funding
under such programs.
``(b) Covered Programs.--The covered programs under this
subsection are the programs that are administered by the
Secretary and identified by the Secretary for purposes of
this section, in the following areas:
``(1) Housing and community development programs.
``(2) Economic development and empowerment programs.
``(3) Targeted housing assistance and homeless assistance
programs.''.

SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

(a) Reauthorization.--Subsection (p) of section 11 of the
Housing Opportunity Program Extension Act of 1996 (42 U.S.C.
12805 note) is amended to read as follows:
``(p) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
fiscal year 2001 and such sums as may be necessary for each
of fiscal years 2002 and 2003.''.
(b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805
note) is amended by inserting before the period at the end
the following: ``, which may include reimbursing an
organization, consortium, or affiliate, upon approval of any
required environmental review, for nongrant amounts of the
organization, consortium, or affiliate advanced before such
review to acquire land''.
(c) Deadline for Recapture of Funds.--Section 11 of the
Housing Opportunity Program Extension Act of 1996 (42 U.S.C.
12805 note) is amended--

[[Page H1880]]

(1) in subsection (i)(5)--
(A) by striking ``if the organization or consortia has not
used any grant amounts'' and inserting ``the Secretary shall
recapture any grant amounts provided to the organization or
consortia that are not used'';
(B) by striking ``(or,'' and inserting ``, except that such
period shall be 36 months''; and
(C) by striking ``within 36 months), the Secretary shall
recapture such unused amounts'' and inserting ``and in the
case of a grant amounts provided to a local affiliate of the
organization or consortia that is developing 5 or more
dwellings in connection with such grant amounts''; and
(2) in subsection (j), by inserting after ``carry out this
section'' the following: ``and grant amounts provided to a
local affiliate of the organization or consortia that is
developing 5 or more dwellings in connection with such grant
amounts''.
(d) Technical Corrections.--Section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805
note) is amended--
(1) in subsection (b)(4), by striking ``Habitat for
Humanity International, its affiliates, and other''; and
(2) in subsection (e)(2), by striking ``consoria'' and
inserting ``consortia''.

SEC. 607. HOUSING COUNSELING ORGANIZATIONS.

Section 106 of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701x) is amended--
(1) in subsection (a)(1)(ii), by inserting ``and
cooperative housing'' before the semicolon at the end; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and'' at the end;
(ii) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(iii) by adding at the end the following new subparagraph:
``(C) to the National Cooperative Bank Development
Corporation--
``(i) to provide homeownership counseling to eligible
homeowners that is specifically designed to relate to
ownership under cooperative housing arrangements; and
``(ii) to assist in the establishment and operation of
well-managed and viable cooperative housing boards.'';
(B) in paragraph (4)(A), by inserting before the semicolon
at the end the following: ``or, in the case of a home loan
made to finance the purchase of stock or membership in a
cooperative ownership housing corporation, by the stock or
membership interest''; and
(C) in paragraph (6)(C), by adding before the period at the
end the following: ``and includes a loan that is secured by a
first lien given in accordance with the laws of the State
where the property is located and that is made to finance the
purchase of stock or membership in a cooperative ownership
housing corporation the permanent occupancy of dwelling units
of which is restricted to members of such corporation, where
the purchase of such stock or membership will entitle the
purchaser to the permanent occupancy of 1 of such units''.

SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND LEAD-SAFE
HOUSING.

Section 1011(e) of the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4852(e)) is amended--
(1) in paragraph (7), by inserting ``, which may include
leasing of lead-safe temporary housing'' before the semicolon
at the end;
(2) in paragraph (9), by striking ``and'' at the end;
(3) by redesignating paragraph (10) as paragraph (11); and
(4) by inserting after paragraph (9) the following new
paragraph:
``(10) provide accessible information through centralized
locations that provide a variety of residential lead-based
paint poisoning prevention services to the community that
such services are intended to benefit; and''.

TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

SEC. 701. LANDS TITLE REPORT COMMISSION.

(a) Establishment.--Subject to sums being provided in
advance in appropriations Acts, there is established a
Commission to be known as the Lands Title Report Commission
(hereafter in this section referred to as the ``Commission'')
to facilitate home loan mortgages on Indian trust lands. The
Commission will be subject to oversight by the Committee on
Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(b) Membership.--
(1) Appointment.--The Commission shall be composed of 12
members, appointed not later than 90 days after the date of
the enactment of this Act as follows:
(A) 4 members shall be appointed by the President.
(B) 4 members shall be appointed by the Chairperson of the
Committee on Banking and Financial Services of the House of
Representatives.
(C) 4 members shall be appointed by the Chairperson of the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) Qualifications.--
(A) Members of tribes.--At all times, not less than 8 of
the members of the Commission shall be members of federally
recognized Indian tribes.
(B) Experience in land title matters.--All members of the
Commission shall have experience in and knowledge of land
title matters relating to Indian trust lands.
(3) Chairperson.--The Chairperson of the Commission shall
be one of the members of the Commission appointed under
paragraph (1)(C), as elected by the members of the
Commission.
(4) Vacancies.--Any vacancy on the Commission shall not
affect its powers, but shall be filled in the manner in which
the original appointment was made.
(5) Travel expenses.--Members of the Commission shall serve
without pay, but each member shall receive travel expenses,
including per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States Code.
(c) Initial Meeting.--The Chairperson of the Commission
shall call the initial meeting of the Commission. Such
meeting shall be held within 30 days after the Chairperson of
the Commission determines that sums sufficient for the
Commission to carry out its duties under this Act have been
appropriated for such purpose.
(d) Duties.--The Commission shall analyze the system of the
Bureau of Indian Affairs of the Department of the Interior
for maintaining land ownership records and title documents
and issuing certified title status reports relating to Indian
trust lands and, pursuant to such analysis, determine how
best to improve or replace the system--
(1) to ensure prompt and accurate responses to requests for
title status reports;
(2) to eliminate any backlog of requests for title status
reports; and
(3) to ensure that the administration of the system will
not in any way impair or restrict the ability of Native
Americans to obtain conventional loans for purchase of
residences located on Indian trust lands, including any
actions necessary to ensure that the system will promptly be
able to meet future demands for certified title status
reports, taking into account the anticipated complexity and
volume of such requests.
(e) Report.--Not later than the date of the termination of
the Commission under subsection (h), the Commission shall
submit a report to the Committee on Banking and Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate describing
the analysis and determinations made pursuant to subsection
(d).
(f) Powers.--
(1) Hearings and sessions.--The Commission may, for the
purpose of carrying out this section, hold hearings, sit and
act at times and places, take testimony, and receive evidence
as the Commission considers appropriate.
(2) Staff of federal agencies.--Upon request of the
Commission, the head of any Federal department or agency may
detail, on a reimbursable basis, any of the personnel of that
department or agency to the Commission to assist it in
carrying out its duties under this section.
(3) Obtaining official data.--The Commission may secure
directly from any department or agency of the United States
information necessary to enable it to carry out this section.
Upon request of the Chairperson of the Commission, the head
of that department or agency shall furnish that information
to the Commission.
(4) Mails.--The Commission may use the United States mails
in the same manner and under the same conditions as other
departments and agencies of the United States.
(5) Administrative support services.--Upon the request of
the Commission, the Administrator of General Services shall
provide to the Commission, on a reimbursable basis, the
administrative support services necessary for the Commission
to carry out its duties under this section.
(6) Staff.--The Commission may appoint personnel as it
considers appropriate, subject to the provisions of title 5,
United States Code, governing appointments in the competitive
service, and shall pay such personnel in accordance with the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule
pay rates.
(g) Authorization of Appropriations.--To carry out this
section, there is authorized to be appropriated $500,000.
Such sums shall remain available until expended.
(h) Termination.--The Commission shall terminate 1 year
after the date of the initial meeting of the Commission.

SEC. 702. LOAN GUARANTEES.

Section 184(i) of the Housing and Community Development Act
of 1992 (12 U.S.C. 1715z-13a(i)) is amended--
(1) in paragraph (5), by striking subparagraph (C) and
inserting the following new subparagraph:
``(C) Limitation on outstanding aggregate principal
amount.--Subject to the limitations in subparagraphs (A) and
(B), the Secretary may enter into commitments to guarantee
loans under this section in each fiscal year with an
aggregate outstanding principal amount not exceeding such
amount as may be provided in appropriation Acts for such
fiscal year.''; and
(2) in paragraph (7), by striking ``each of fiscal years
1997, 1998, 1999, 2000, and 2001'' and inserting ``each
fiscal year''.

SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.

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

[[Page H1881]]

the following: ``The Secretary may waive the requirements of
this subsection and subsection (d) if the recipient has made
a good faith effort to fulfill the requirements of this
subsection and subsection (d) and agrees to make payments in
lieu of taxes to the appropriate taxing authority in an
amount consistent with the requirements of subsection (d)(2)
until such time as the matter of making such payments has
been resolved in accordance with subsection (d).''.
(b) Assistance to Families That Are Not Low-Income.--
Section 102(c) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4112(c)) is amended
by adding at the end the following:
``(6) Certain families.--With respect to assistance
provided under section 201(b)(2) by a recipient to Indian
families that are not low-income families, evidence that
there is a need for housing for each such family during that
period that cannot reasonably be met without such
assistance.''.
(c) Elimination of Waiver Authority for Small Tribes.--
Section 102 of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4112) is amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
(d) Environmental Compliance.--Section 105 of the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4115) is amended by adding at the end the
following:
``(d) Environmental Compliance.--The Secretary may waive
the requirements under this section if the Secretary
determines that a failure on the part of a recipient to
comply with provisions of this section--
``(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or
any other provision of law that furthers the goals of that
Act;
``(2) does not threaten the health or safety of the
community involved by posing an immediate or long-term hazard
to residents of that community;
``(3) is a result of inadvertent error, including an
incorrect or incomplete certification provided under
subsection (c)(1); and
``(4) may be corrected through the sole action of the
recipient.''.
(e) Eligibility of Law Enforcement Officers for Housing
Assistance.--Section 201(b) of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4131(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) Law enforcement officers.--A recipient may provide
housing or housing assistance provided through affordable
housing activities assisted with grant amounts under this Act
for a law enforcement officer on an Indian reservation or
other Indian area, if--
``(A) the officer--
``(i) is employed on a full-time basis by the Federal
Government or a State, county, or tribal government; and
``(ii) in implementing such full-time employment, is sworn
to uphold, and make arrests for, violations of Federal,
State, county, or tribal law; and
``(B) the recipient determines that the presence of the law
enforcement officer on the Indian reservation or other Indian
area may deter crime.''.
(f) Oversight.--
(1) Repayment.--Section 209 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4139) is amended to read as follows:

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

``If a recipient uses grant amounts to provide affordable
housing under this title, and at any time during the useful
life of the housing the recipient does not comply with the
requirement under section 205(a)(2), the Secretary shall take
appropriate action under section 401(a).''.
(2) Audits and reviews.--Section 405 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4165) is amended to read as follows:

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

``(a) Requirements Under Chapter 75 of Title 31, United
States Code.--An entity designated by an Indian tribe as a
housing entity shall be treated, for purposes of chapter 75
of title 31, United States Code, as a non-Federal entity that
is subject to the audit requirements that apply to non-
Federal entities under that chapter.
``(b) Additional Reviews and Audits.--
``(1) In general.--In addition to any audit or review under
subsection (a), to the extent the Secretary determines such
action to be appropriate, the Secretary may conduct an audit
or review of a recipient in order to--
``(A) determine whether the recipient--
``(i) has carried out--

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

``(ii) has a continuing capacity to carry out eligible
activities in a timely manner; and
``(iii) is in compliance with the Indian housing plan of
the recipient; and
``(B) verify the accuracy of information contained in any
performance report submitted by the recipient under section
404.
``(2) On-site visits.--To the extent practicable, the
reviews and audits conducted under this subsection shall
include on-site visits by the appropriate official of the
Department of Housing and Urban Development.
``(c) Review of Reports.--
``(1) In general.--The Secretary shall provide each
recipient that is the subject of a report made by the
Secretary under this section notice that the recipient may
review and comment on the report during a period of not less
than 30 days after the date on which notice is issued under
this paragraph.
``(2) Public availability.--After taking into consideration
any comments of the recipient under paragraph (1), the
Secretary--
``(A) may revise the report; and
``(B) not later than 30 days after the date on which those
comments are received, shall make the comments and the report
(with any revisions made under subparagraph (A)) readily
available to the public.
``(d) Effect of Reviews.--Subject to section 401(a), after
reviewing the reports and audits relating to a recipient that
are submitted to the Secretary under this section, the
Secretary may adjust the amount of a grant made to a
recipient under this Act in accordance with the findings of
the Secretary with respect to those reports and audits.''.
(g) Allocation Formula.--Section 302(d)(1) of the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4152(d)(1)) is amended--
(1) by striking ``The formula,'' and inserting the
following:
``(A) In general.--Except with respect to an Indian tribe
described in subparagraph (B), the formula''; and
(2) by adding at the end the following:
``(B) Certain indian tribes.--With respect to fiscal year
2001 and each fiscal year thereafter, for any Indian tribe
with an Indian housing authority that owns or operates fewer
than 250 public housing units, the formula shall provide that
if the amount provided for a fiscal year in which the total
amount made available for assistance under this Act is equal
to or greater than the amount made available for fiscal year
1996 for assistance for the operation and modernization of
the public housing referred to in subparagraph (A), then the
amount provided to that Indian tribe as modernization
assistance shall be equal to the average annual amount of
funds provided to the Indian tribe (other than funds provided
as emergency assistance) under the assistance program under
section 14 of the United States Housing Act of 1937 (42
U.S.C. 1437l) for the period beginning with fiscal year 1992
and ending with fiscal year 1997.''.
(h) Hearing Requirement.--Section 401(a) of the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4161(a)) is amended--
(1) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and realigning
such subparagraphs (as so redesignated) so as to be indented
4 ems from the left margin;
(2) by striking ``Except as provided'' and inserting the
following:
``(1) In general.--Except as provided'';
(3) by striking ``If the Secretary takes an action under
paragraph (1), (2), or (3)'' and inserting the following:
``(2) Continuance of actions.--If the Secretary takes an
action under subparagraph (A), (B), or (C) of paragraph
(1)''; and
(4) by adding at the end the following:
``(3) Exception for certain actions.--
``(A) In general.--Notwithstanding any other provision of
this subsection, if the Secretary makes a determination that
the failure of a recipient of assistance under this Act to
comply substantially with any material provision (as that
term is defined by the Secretary) of this Act is resulting,
and would continue to result, in a continuing expenditure of
Federal funds in a manner that is not authorized by law, the
Secretary may take an action described in paragraph (1)(C)
before conducting a hearing.
``(B) Procedural requirement.--If the Secretary takes an
action described in subparagraph (A), the Secretary shall--
``(i) provide notice to the recipient at the time that the
Secretary takes that action; and
``(ii) conduct a hearing not later than 60 days after the
date on which the Secretary provides notice under clause (i).
``(C) Determination.--Upon completion of a hearing under
this paragraph, the Secretary shall make a determination
regarding whether to continue taking the action that is the
subject of the hearing, or take another action under this
subsection.''.
(i) Performance Agreement Time Limit.--Section 401(b) of
the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4161(b)) is amended--
(1) by striking ``If the Secretary'' and inserting the
following:
``(1) In general.--If the Secretary'';
(2) by striking ``(1) is not'' and inserting the following:
``(A) is not'';
(3) by striking ``(2) is a result'' and inserting the
following:
``(B) is a result'';
(4) in the flush material following paragraph (1)(B), as
redesignated by paragraph (3) of this subsection--
(A) by realigning such material so as to be indented 2 ems
from the left margin; and
(B) by inserting before the period at the end the
following: ``, if the recipient enters into a performance
agreement with the Secretary that specifies the compliance
objectives that the recipient will be required to achieve by
the termination date of the performance agreement''; and
(5) by adding at the end the following:
``(2) Performance agreement.--The period of a performance
agreement described in paragraph (1) shall be for 1 year.
``(3) Review.--Upon the termination of a performance
agreement entered into under paragraph (1), the Secretary
shall review the performance of the recipient that is a party
to the agreement.
``(4) Effect of review.--If, on the basis of a review under
paragraph (3), the Secretary determines that the recipient--

[[Page H1882]]

``(A) has made a good faith effort to meet the compliance
objectives specified in the agreement, the Secretary may
enter into an additional performance agreement for the period
specified in paragraph (2); and
``(B) has failed to make a good faith effort to meet
applicable compliance objectives, the Secretary shall
determine the recipient to have failed to comply
substantially with this Act, and the recipient shall be
subject to an action under subsection (a).''.
(j) Reference.--Section 104(b)(1) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4114(b)(1)) is amended by striking ``Davis-Bacon Act
(40 U.S.C. 276a-276a-5)'' and inserting ``Act of March 3,
1931 (commonly known as the Davis-Bacon Act; chapter 411; 46
Stat. 1494; 40 U.S.C 276a et seq.)''.
(k) Technical and Conforming Amendments.--
(1) Table of contents.--Section 1(b) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 note) is amended in the table of contents--
(A) by striking the item relating to section 206; and
(B) by striking the item relating to section 209 and
inserting the following:

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

(2) Certification of compliance with subsidy layering
requirements.--Section 206 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4136) is repealed.
(3) Terminations.--Section 502(a) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4181(a)) is amended by adding at the end the
following: ``Any housing that is the subject of a contract
for tenant-based assistance between the Secretary and an
Indian housing authority that is terminated under this
section shall, for the following fiscal year and each fiscal
year thereafter, be considered to be a dwelling unit under
section 302(b)(1).''.

TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
NONPROFIT ORGANIZATIONS

SEC. 801. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD
HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY
DEVELOPMENT CORPORATIONS.

Section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended--
(1) by striking ``Flexible Authority.--'' and inserting
``Disposition of HUD-Owned Properties. (a) Flexible Authority
for Multifamily Projects.--''; and
(2) by adding at the end the following new subsection:
``(b) Transfer of Unoccupied and Substandard Housing to
Local Governments and Community Development Corporations.--
``(1) Transfer authority.--Notwithstanding the authority
under subsection (a) and the last sentence of section 204(g)
of the National Housing Act (12 U.S.C. 1710(g)), the
Secretary of Housing and Urban Development shall transfer
ownership of any qualified HUD property, subject to the
requirements of this section, to a unit of general local
government having jurisdiction for the area in which the
property is located or to a community development corporation
which operates within such a unit of general local government
in accordance with this subsection, but only to the extent
that units of general local government and community
development corporations consent to transfer and the
Secretary determines that such transfer is practicable.
``(2) Qualified hud properties.--For purposes of this
subsection, the term `qualified HUD property' means any
property for which, as of the date that notification of the
property is first made under paragraph (3)(B), not less than
6 months have elapsed since the later of the date that the
property was acquired by the Secretary or the date that the
property was determined to be unoccupied or substandard, that
is owned by the Secretary and is--
``(A) an unoccupied multifamily housing project;
``(B) a substandard multifamily housing project; or
``(C) an unoccupied single family property that--
``(i) has been determined by the Secretary not to be an
eligible asset under section 204(h) of the National Housing
Act (12 U.S.C. 1710(h)); or
``(ii) is an eligible asset under such section 204(h),
but--

``(I) is not subject to a specific sale agreement under
such section; and
``(II) has been determined by the Secretary to be
inappropriate for continued inclusion in the program under
such section 204(h) pursuant to paragraph (10) of such
section.

``(3) Timing.--The Secretary shall establish procedures
that provide for--
``(A) time deadlines for transfers under this subsection;
``(B) notification to units of general local government and
community development corporations of qualified HUD
properties in their jurisdictions;
``(C) such units and corporations to express interest in
the transfer under this subsection of such properties;
``(D) a right of first refusal for transfer of qualified
HUD properties to units of general local government and
community development corporations, under which--
``(i) the Secretary shall establish a period during which
the Secretary may not transfer such properties except to such
units and corporations;
``(ii) the Secretary shall offer qualified HUD properties
that are single family properties for purchase by units of
general local government at a cost of $1 for each property,
but only to the extent that the costs to the Federal
Government of disposal at such price do not exceed the costs
to the Federal Government of disposing of property subject to
the procedures for single family property established by the
Secretary pursuant to the authority under the last sentence
of section 204(g) of the National Housing Act (12 U.S.C.
1710(g));
``(iii) the Secretary may accept an offer to purchase a
property made by a community development corporation only if
the offer provides for purchase on a cost recovery basis; and
``(iv) the Secretary shall accept an offer to purchase such
a property that is made during such period by such a unit or
corporation and that complies with the requirements of this
paragraph;
``(E) a written explanation, to any unit of general local
government or community development corporation making an
offer to purchase a qualified HUD property under this
subsection that is not accepted, of the reason that such
offer was not acceptable.
``(4) Other disposition.--With respect to any qualified HUD
property, if the Secretary does not receive an acceptable
offer to purchase the property pursuant to the procedure
established under paragraph (3), the Secretary shall dispose
of the property to the unit of general local government in
which property is located or to community development
corporations located in such unit of general local government
on a negotiated, competitive bid, or other basis, on such
terms as the Secretary deems appropriate.
``(5) Satisfaction of indebtedness.--Before transferring
ownership of any qualified HUD property pursuant to this
subsection, the Secretary shall satisfy any indebtedness
incurred in connection with the property to be transferred,
by canceling the indebtedness.
``(6) Determination of status of properties.--To ensure
compliance with the requirements of this subsection, the
Secretary shall take the following actions:
``(A) Upon enactment.--Upon the enactment of the American
Homeownership and Economic Opportunity Act of 2000, the
Secretary shall promptly assess each residential property
owned by the Secretary to determine whether such property is
a qualified HUD property.
``(B) Upon acquisition.--Upon acquiring any residential
property, the Secretary shall promptly determine whether the
property is a qualified HUD property.
``(C) Updates.--The Secretary shall periodically reassess
the residential properties owned by the Secretary to
determine whether any such properties have become qualified
HUD properties.
``(7) Tenant leases.--This subsection shall not affect the
terms or the enforceability of any contract or lease entered
into with respect to any residential property before the date
that such property becomes a qualified HUD property.
``(8) Use of property.--Property transferred under this
subsection shall be used only for appropriate neighborhood
revitalization efforts, including homeownership, rental
units, commercial space, and parks, consistent with local
zoning regulations, local building codes, and subdivision
regulations and restrictions of record.
``(9) Inapplicability to properties made available for
homeless.--Notwithstanding any other provision of this
subsection, this subsection shall not apply to any properties
that the Secretary determines are to be made available for
use by the homeless pursuant to subpart E of part 291 of
title 24, Code of Federal Regulations, during the period that
the properties are so available.
``(10) Protection of existing contracts.--This subsection
may not be construed to alter, affect, or annul any legally
binding obligations entered into with respect to a qualified
HUD property before the property becomes a qualified HUD
property.
``(11) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Community development corporation.--The term
`community development corporation' means a nonprofit
organization whose primary purpose is to promote community
development by providing housing opportunities for low-income
families.
``(B) Cost recovery basis.--The term `cost recovery basis'
means, with respect to any sale of a residential property by
the Secretary, that the purchase price paid by the purchaser
is equal to or greater than the sum of (i) the appraised
value of the property, as determined in accordance with such
requirements as the Secretary shall establish, and (ii) the
costs incurred by the Secretary in connection with such
property during the period beginning on the date on which the
Secretary acquires title to the property and ending on the
date on which the sale is consummated.
``(C) Multifamily housing project.--The term `multifamily
housing project' has the meaning given the term in section
203 of the Housing and Community Development Amendments of
1978.
``(D) Residential property.--The term `residential
property' means a property that is a multifamily housing
project or a single family property.
``(E) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development.
``(F) Severe physical problems.--The term `severe physical
problems' means, with respect to a dwelling unit, that the
unit--
``(i) lacks hot or cold piped water, a flush toilet, or
both a bathtub and a shower in the unit, for the exclusive
use of that unit;
``(ii) on not less than 3 separate occasions during the
preceding winter months, was uncomfortably cold for a period
of more than 6

[[Page H1883]]

consecutive hours due to a malfunction of the heating system
for the unit;
``(iii) has no functioning electrical service, exposed
wiring, any room in which there is not a functioning
electrical outlet, or has experienced 3 or more blown fuses
or tripped circuit breakers during the preceding 90-day
period;
``(iv) is accessible through a public hallway in which
there are no working light fixtures, loose or missing steps
or railings, and no elevator; or
``(v) has severe maintenance problems, including water
leaks involving the roof, windows, doors, basement, or pipes
or plumbing fixtures, holes or open cracks in walls or
ceilings, severe paint peeling or broken plaster, and signs
of rodent infestation.
``(G) Single family property.--The term `single family
property' means a 1- to 4-family residence.
``(H) Substandard.--The term `substandard' means, with
respect to a multifamily housing project, that 25 percent or
more of the dwelling units in the project have severe
physical problems.
``(I) Unit of general local government.--The term `unit of
general local government' has the meaning given such term in
section 102(a) of the Housing and Community Development Act
of 1974.
``(J) Unoccupied.--The term `unoccupied' means, with
respect to a residential property, that the unit of general
local government having jurisdiction over the area in which
the project is located has certified in writing that the
property is not inhabited.
``(12) Regulations.--
``(A) Interim.--Not later than 30 days after the date of
the enactment of the American Homeownership and Economic
Opportunity Act of 2000, the Secretary shall issue such
interim regulations as are necessary to carry out this
subsection.
``(B) Final.--Not later than 60 days after the date of the
enactment of the American Homeownership and Economic
Opportunity Act of 2000, the Secretary shall issue such final
regulations as are necessary to carry out this subsection.''.

SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

In carrying out the program under section 204(h) of the
National Housing Act (12 U.S.C. 1710(h)), upon the request of
the chief executive officer of a county or the government of
appropriate jurisdiction and not later than 60 days after
such request is made, the Secretary of Housing and Urban
Development shall designate as a revitalization area all
portions of such county that meet the criteria for such
designation under paragraph (3) of such section.

TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

SECTION 901. SHORT TITLE.

This title may be cited as the ``Private Mortgage Insurance
Technical Corrections and Clarification Act''.

SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.

(a) Treatment of Adjustable Rate Mortgages.--The Homeowners
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
(1) in section 2--
(A) in paragraph (2)(B)(i), by striking ``amortization
schedules'' and inserting ``the amortization schedule then in
effect'';
(B) in paragraph (16)(B), by striking ``amortization
schedules'' and inserting ``the amortization schedule then in
effect'';
(C) by redesignating paragraphs (6) through (16) (as
amended by the preceding provisions of this paragraph) as
paragraphs (8) through (18), respectively; and
(D) by inserting after paragraph (5) the following new
paragraph:
``(6) Amortization schedule then in effect.--The term
`amortization schedule then in effect' means, with respect to
an adjustable rate mortgage, a schedule established at the
time at which the residential mortgage transaction is
consummated or, if such schedule has been changed or
recalculated, is the most recent schedule under the terms of
the note or mortgage, which shows--
``(A) the amount of principal and interest that is due at
regular intervals to retire the principal balance and accrued
interest over the remaining amortization period of the loan;
and
``(B) the unpaid balance of the loan after each such
scheduled payment is made.''; and
(2) in section 3(f)(1)(B)(ii), by striking ``amortization
schedules'' and inserting ``the amortization schedule then in
effect''.
(b) Treatment of Balloon Mortgages.--Paragraph (1) of
section 2 of the Homeowners Protection Act of 1998 (12 U.S.C.
4901(1)) is amended by adding at the end the following new
sentence: ``A residential mortgage that (A) does not fully
amortize over the term of the obligation, and (B) contains a
conditional right to refinance or modify the unamortized
principal at the maturity date of the term, shall be
considered to be an adjustable rate mortgage for purposes of
this Act.''.
(c) Treatment of Loan Modifications.--
(1) In general.--Section 3 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4902) is amended--
(A) by redesignating subsections (d) through (f) as
subsections (e) through (g), respectively; and
(B) by inserting after subsection (c) the following new
subsection:
``(d) Treatment of Loan Modifications.--If a mortgagor and
mortgagee (or holder of the mortgage) agree to a modification
of the terms or conditions of a loan pursuant to a
residential mortgage transaction, the cancellation date,
termination date, or final termination shall be recalculated
to reflect the modified terms and conditions of such loan.''.
(2) Conforming amendments.--Section 4(a) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by striking
``section 3(f)(1)'' and inserting ``section 3(g)(1)'';
(ii) in subparagraph (A)(ii)(IV), by striking ``section
3(f)'' and inserting ``section 3(g)''; and
(iii) in subparagraph (B)(iii), by striking ``section
3(f)'' and inserting ``section 3(g)''; and
(B) in paragraph (2), by striking ``section 3(f)(1)'' and
inserting ``section 3(g)(1)''.

SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL
MORTGAGES.

(a) Termination of Private Mortgage Insurance.--Section 3
of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) is
amended--
(1) in subsection (c), by inserting ``on residential
mortgage transactions'' after ``imposed''; and
(2) in subsection (g) (as so redesignated by section
902(c)(1)(A) of this title)--
(A) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``mortgage or'';
(B) in paragraph (2), by striking ``mortgage or''; and
(C) in paragraph (3), by striking ``mortgage or'' and
inserting ``residential mortgage or residential''.
(b) Disclosure Requirements.--Section 4 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``mortgage or'' the first place it appears;
and
(ii) by striking ``mortgage or'' the second place it
appears and inserting ``residential''; and
(B) in paragraph (2), by striking ``mortgage or'' and
inserting ``residential'';
(2) in subsection (c), by striking ``paragraphs (1)(B) and
(3) of subsection (a)'' and inserting ``subsection (a)(3)'';
and
(3) in subsection (d), by inserting before the period at
the end the following: ``, which disclosures shall relate to
the mortgagor's rights under this Act''.
(c) Disclosure Requirements for Lender-Paid Mortgage
Insurance.--Section 6 of the Homeowners Protection Act of
1998 (12 U.S.C. 4905) is amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by striking ``a
residential mortgage or''; and
(B) in paragraph (2), by inserting ``transaction'' after
``residential mortgage''; and
(2) in subsection (d), by inserting ``transaction'' after
``residential mortgage''.

SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

Section 3 of the Homeowners Protection Act of 1998 (12
U.S.C. 4902) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by inserting
after ``cancellation date'' the following: ``or any later
date that the mortgagor fulfills all of the requirements
under paragraphs (1) through (4)'';
(B) in paragraph (2), by striking ``and'' at the end;
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following new
paragraph:
``(3) is current on the payments required by the terms of
the residential mortgage transaction; and''; and
(2) in subsection (e)(1)(B) (as so redesignated by section
902(c)(1)(A) of this title), by striking ``subsection
(a)(3)'' and inserting ``subsection (a)(4)''.

SEC. 905. CLARIFICATION OF CANCELLATION AND TERMINATION
ISSUES AND LENDER PAID MORTGAGE INSURANCE
DISCLOSURE REQUIREMENTS.

(a) Good Payment History.--Section 2(4) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901(4)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``the later of (i)'' before ``the date'';
and
(ii) by inserting ``, or (ii) the date that the mortgagor
submits a request for cancellation under section 3(a)(1)''
before the semicolon; and
(B) in subparagraph (B)--
(i) by inserting ``the later of (i)'' before ``the date'';
and
(ii) by inserting ``, or (ii) the date that the mortgagor
submits a request for cancellation under section 3(a)(1)''
before the period at the end.
(b) Automatic Termination.--Paragraph (2) of section 3(b)
of the Homeowners Protection Act of 1998 (12 U.S.C.
4902(b)(2)) is amended to read as follows:
``(2) if the mortgagor is not current on the termination
date, on the first day of the first month beginning after the
date that the mortgagor becomes current on the payments
required by the terms of the residential mortgage
transaction.''
(c) Premium Payments.--Section 3 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4902) is amended by adding
at the end the following new subsection:
``(h) Accrued Obligation for Premium Payments.--The
cancellation or termination under this section of the private
mortgage insurance of a mortgagor shall not affect the rights
of any mortgagee, servicer, or mortgage insurer to enforce
any obligation of such mortgagor for premium payments accrued
prior to the date on which such cancellation or termination
occurred.''.

SEC. 906. DEFINITIONS.

(a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is
amended by inserting after ``refinanced'' the following:
``(under the meaning given such term in the regulations
issued by

[[Page H1884]]

the Board of Governors of the Federal Reserve System to carry
out the Truth in Lending Act (15 U.S.C. 1601 et seq.))''.
(b) Midpoint of the Amortization Period.--Section 2 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended
by inserting after paragraph (6) (as added by section
902(a)(1)(D) of this Act) the following new paragraph:
``(7) Midpoint of the amortization period.--The term
`midpoint of the amortization period' means, with respect to
a residential mortgage transaction, the point in time that is
halfway through the period that begins upon the first day of
the amortization period established at the time a residential
mortgage transaction is consummated and ends upon the
completion of the entire period over which the mortgage is
scheduled to be amortized.''.
(c) Original Value.--Section 2(12) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901(10)) (as so
redesignated by section 902(a)(1)(C) of this Act) is
amended--
(1) by inserting ``transaction'' after ``a residential
mortgage''; and
(2) by adding at the end the following new sentence: ``In
the case of a residential mortgage transaction for
refinancing the principal residence of the mortgagor, such
term means only the appraised value relied upon by the
mortgagee to approve the refinance transaction.''.
(d) Principal Residence.--Section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901) is amended--
(1) in paragraph (14) (as so redesignated by section
902(a)(1)(C) of this Act) by striking ``primary'' and
inserting ``principal''; and
(2) in paragraph (15) (as so redesignated by section
902(a)(1)(C) of this Act) by striking ``primary'' and
inserting ``principal'';

TITLE X--RURAL HOUSING HOMEOWNERSHIP

SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR
LOAN PROGRAM.

The fourth sentence of section 504(a) of the Housing Act of
1949 (42 U.S.C. 1474(a)) is amended by striking ``$2,500''
and inserting ``$7,500''.

SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM LABOR
HOUSING LOANS.

The first sentence of section 514(a) of the Housing Act of
1949 (42 U.S.C. 1484(a)) is amended by striking ``nonprofit
limited partnership'' and inserting ``limited partnership''.

SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRACTICES.

Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is
amended by striking subsection (z) and inserting the
following new subsections:
``(z) Accounting and Recordkeeping Requirements.--
``(1) Accounting standards.--The Secretary shall require
that borrowers in programs authorized by this section
maintain accounting records in accordance with generally
accepted accounting principles for all projects that receive
funds from loans made or guaranteed by the Secretary under
this section.
``(2) Record retention requirements.--The Secretary shall
require that borrowers in programs authorized by this section
retain for a period of not less than 6 years and make
available to the Secretary in a manner determined by the
Secretary, all records required to be maintained under this
subsection and other records identified by the Secretary in
applicable regulations.
``(aa) Double Damages for Unauthorized Use of Housing
Projects Assets and Income.--
``(1) Action to recover assets or income.--
``(A) In general.--The Secretary may request the Attorney
General to bring an action in a United States district court
to recover any assets or income used by any person in
violation of the provisions of a loan made or guaranteed by
the Secretary under this section or in violation of any
applicable statute or regulation.
``(B) Improper documentation.--For purposes of this
subsection, a use of assets or income in violation of the
applicable loan, loan guarantee, statute, or regulation shall
include any use for which the documentation in the books and
accounts does not establish that the use was made for a
reasonable operating expense or necessary repair of the
project or for which the documentation has not been
maintained in accordance with the requirements of the
Secretary and in reasonable condition for proper audit.
``(C) Definition.--For the purposes of this subsection, the
term `person' means--
``(i) any individual or entity that borrows funds in
accordance with programs authorized by this section;
``(ii) any individual or entity holding 25 percent or more
interest of any entity that borrows funds in accordance with
programs authorized by this section; and
``(iii) any officer, director, or partner of an entity that
borrows funds in accordance with programs authorized by this
section.
``(2) Amount recoverable.--
``(A) In general.--In any judgment favorable to the United
States entered under this subsection, the Attorney General
may recover double the value of the assets and income of the
project that the court determines to have been used in
violation of the provisions of a loan made or guaranteed by
the Secretary under this section or any applicable statute or
regulation, plus all costs related to the action, including
reasonable attorney and auditing fees.
``(B) Application of recovered funds.--Notwithstanding any
other provision of law, the Secretary may use amounts
recovered under this subsection for activities authorized
under this section and such funds shall remain available for
such use until expended.
``(3) Time limitation.--Notwithstanding any other provision
of law, an action under this subsection may be commenced at
any time during the 6-year period beginning on the date that
the Secretary discovered or should have discovered the
violation of the provisions of this section or any related
statutes or regulations.
``(4) Continued availability of other remedies.--The remedy
provided in this subsection is in addition to and not in
substitution of any other remedies available to the Secretary
or the United States.''.

SEC. 1004. DEFINITION OF RURAL AREA.

The second sentence of section 520 of the Housing Act of
1949 (42 U.S.C. 1490) is amended by striking ``year 2000''
and inserting ``year 2010''.

SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS
PROJECTS.

The last sentence of section 521(a)(5)(A) of the Housing
Act of 1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by striking
``project'' and inserting ``tenant or unit''.

SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.

Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2)
is amended--
(1) in subsection (c), by inserting ``an Indian
organization,'' after ``thereof,'';
(2) in subsection (f), by striking paragraph (1) and
inserting the following new paragraph:
``(1) be made for a period of not less than 25 nor greater
than 40 years from the date the loan was made and may provide
for amortization of the loan over a period of not to exceed
40 years with a final payment of the balance due at the end
of the loan term;'';
(3) in subsection (i)(2), by striking ``(A) conveyance to
the Secretary'' and all that follows through ``(C)
assignment'' and inserting ``(A) submission to the Secretary
of a claim for payment under the guarantee, and (B)
assignment'';
(4) in subsection (s), by adding at the end the following
new subsection:
``(4) Indian organization.--The term `Indian organization'
means the governing body of an Indian tribe, band, group,
pueblo, or community, including native villages or native
groups, as defined by the Alaska Claims Settlement Act (43
U.S.C. 1601 et seq.), (including corporations organized by
the Kenai, Juneau, Sitka, and Kodiak) which is eligible for
services from the Bureau of Indian Affairs or an entity
established or recognized by the governing body for the
purpose of financing economic development.'';
(5) in subsection (t), by inserting before the period at
the end the following: ``to provide guarantees under this
section for eligible loans having an aggregate principal
amount of $500,000,000'';
(6) by striking subsection (l);
(7) by redesignating subsections (m) through (u) as
subsections (l) through (t), respectively;
(8) by adding at the end the following new subsections:
``(u) Fee Authority.--
``(1) In general.--Any amounts collected by the Secretary
pursuant to the fees charged to lenders for loan guarantees
issued under this section shall be used to offset costs (as
defined by section 502 of the Congressional Budget Act of
1974 (2 U.S.C. 661a)) of loan guarantees made under this
section.
``(2) Excess funds.--Any fees described in paragraph (1)
collected in excess of the amount required in paragraph (1)
during a fiscal year, shall be available to the Secretary,
without further appropriation and without fiscal year
limitation, for use by the Secretary for costs of
administering (including monitoring) program activities
authorized pursuant to this section and shall be in addition
to other funds made available for this purpose.
``(v) Defaults of Loans Secured by Reservation Lands.--In
the event of a default involving a loan to an Indian tribe or
tribal corporation made under this section which is secured
by an interest in land within such tribe's reservation (as
determined by the Secretary of the Interior), including a
community in Alaska incorporated by the Secretary of the
Interior pursuant to the Indian Reorganization Act (25 U.S.C.
461 et seq.), the lender shall only pursue liquidation after
offering to transfer the account to an eligible tribal
member, the tribe, or the Indian housing authority serving
the tribe. If the lender subsequently proceeds to liquidate
the account, the lender shall not sell, transfer, or
otherwise dispose of or alienate the property except to one
of the entities described in the preceding sentence.''.

SEC. 1007. ENFORCEMENT PROVISIONS.

(a) In General.--Title V of the Housing Act of 1949 (42
U.S.C. 1471 et seq.) is amended by adding after section 542
the following:

``SEC. 543. ENFORCEMENT PROVISIONS.

``(a) Equity Skimming.--
``(1) Criminal penalty.--Whoever, as an owner, agent,
employee, or manager, or is otherwise in custody, control, or
possession of property that is security for a loan made or
guaranteed under this title, willfully uses, or authorizes
the use, of any part of the rents, assets, proceeds, income,
or other funds derived from such property, for any purpose
other than to meet actual, reasonable, and necessary expenses
of the property, or for any other purpose not authorized by
this title or the regulations adopted pursuant to this title,
shall be fined under title 18, United States Code, or
imprisoned not more than 5 years, or both.
``(2) Civil sanctions.--An entity or individual who as an
owner, operator, employee, or manager, or who acts as an
agent for a property that is security for a loan made or
guaranteed under this title where any part of the rents,
assets, proceeds, income, or other funds derived from such
property are used for any purpose other than to meet actual,
reasonable, and necessary expenses of the property, or for
any other purpose not authorized by this title or the
regulations adopted pursuant to this title, shall be subject
to a fine of not more than $25,000 per

[[Page H1885]]

violation. The sanctions provided in this paragraph may be
imposed in addition to any other civil sanctions or civil
monetary penalties authorized by law.
``(b) Civil Monetary Penalties.--
``(1) In general.--The Secretary may, after notice and
opportunity for a hearing, impose a civil monetary penalty in
accordance with this subsection against any individual or
entity, including its owners, officers, directors, general
partners, limited partners, or employees, who knowingly and
materially violate, or participate in the violation of, the
provisions of this title, the regulations issued by the
Secretary pursuant to this title, or agreements made in
accordance with this title, by--
``(A) submitting information to the Secretary that is
false;
``(B) providing the Secretary with false certifications;
``(C) failing to submit information requested by the
Secretary in a timely manner;
``(D) failing to maintain the property subject to loans
made or guaranteed under this title in good repair and
condition, as determined by the Secretary;
``(E) failing to provide management for a project which
received a loan made or guaranteed under this title that is
acceptable to the Secretary; or
``(F) failing to comply with the provisions of applicable
civil rights statutes and regulations.
``(2) Conditions for renewal or extension.--The Secretary
may require that expiring loan or assistance agreements
entered into under this title shall not be renewed or
extended unless the owner executes an agreement to comply
with additional conditions prescribed by the Secretary, or
executes a new loan or assistance agreement in the form
prescribed by the Secretary.
``(3) Amount.--
``(A) In general.--The amount of a civil monetary penalty
imposed under this subsection shall not exceed the greater
of--
``(i) twice the damages the Department of Agriculture, the
guaranteed lender, or the project that is secured for a loan
under this section suffered or would have suffered as a
result of the violation; or
``(ii) $50,000 per violation.
``(B) Determination.--In determining the amount of a civil
monetary penalty under this subsection, the Secretary shall
take into consideration--
``(i) the gravity of the offense;
``(ii) any history of prior offenses by the violator
(including offenses occurring prior to the enactment of this
section);
``(iii) the ability of the violator to pay the penalty;
``(iv) any injury to tenants;
``(v) any injury to the public;
``(vi) any benefits received by the violator as a result of
the violation;
``(vii) deterrence of future violations; and
``(viii) such other factors as the Secretary may establish
by regulation.
``(4) Payment of penalties.--No payment of a penalty
assessed under this section may be made from funds provided
under this title or from funds of a project which serve as
security for a loan made or guaranteed under this title.
``(5) Remedies for noncompliance.--
``(A) Judicial intervention.--If a person or entity fails
to comply with a final determination by the Secretary
imposing a civil monetary penalty under this subsection, the
Secretary may request the Attorney General of the United
States to bring an action in an appropriate United States
district court to obtain a monetary judgment against such
individual or entity and such other relief as may be
available. The monetary judgment may, in the court's
discretion, include the attorney's fees and other expenses
incurred by the United States in connection with the action.
``(B) Reviewability of determination.--In an action under
this paragraph, the validity and appropriateness of a
determination by the Secretary imposing the penalty shall not
be subject to review.''.
(b) Conforming Amendment.--Section 514 of the Housing Act
of 1949 (42 U.S.C. 1484) is amended by striking subsection
(j).

SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.

(a) Money Laundering.--Section 1956(c)(7)(D) of title 18,
United States Code, is amended by inserting ``any violation
of section 543(a)(1) of the Housing Act of 1949 (relating to
equity skimming),'' after ``coupons having a value of not
less than $5,000,''.
(b) Obstruction of Federal Audits.--Section 1516(a) of
title 18, United States Code, is amended by inserting ``or
relating to any property that is security for a loan that is
made or guaranteed under title V of the Housing Act of
1949,'' before ``shall be fined under this title''.

TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

SEC. 1101. SHORT TITLE AND REFERENCES.

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

SEC. 1102. FINDINGS AND PURPOSES.

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

``findings and purposes

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

SEC. 1103. DEFINITIONS.

(a) In General.--Section 603 (42 U.S.C. 5402) is amended--
(1) in paragraph (2), by striking ``dealer'' and inserting
``retailer'';
(2) in paragraph (12), by striking ``and'' at the end;
(3) in paragraph (13), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following new paragraphs:
``(14) `administering organization' means the recognized,
voluntary, private sector, consensus standards body with
specific experience in developing model residential building
codes and standards involving all disciplines regarding
construction and safety that administers the consensus
standards development process;
``(15) `consensus committee' means the committee
established under section 604(a)(3);
``(16) `consensus standards development process' means the
process by which additions, revisions, and interpretations to
the Federal manufactured home construction and safety
standards and enforcement regulations shall be developed and
recommended to the Secretary by the consensus committee;
``(17) `primary inspection agency' means a State agency or
private organization that has been approved by the Secretary
to act as a design approval primary inspection agency or a
production inspection primary inspection agency, or both;
``(18) `design approval primary inspection agency' means a
State agency or private organization that has been approved
by the Secretary to evaluate and either approve or disapprove
manufactured home designs and quality control procedures;
``(19) `production inspection primary inspection agency'
means a State agency or private organization that has been
approved by the Secretary to evaluate the ability of
manufactured home manufacturing plants to comply with
approved quality control procedures and with the Federal
manufactured home construction and safety standards
promulgated hereunder;
``(20) `installation standards' means reasonable
specifications for the installation of a manufactured home,
at the place of occupancy, to ensure proper siting, the
joining of all sections of the home, and the installation of
stabilization, support, or anchoring systems; and
``(21) `monitoring'--
``(A) means the process of periodic review of the primary
inspection agencies, by the Secretary or by a State agency
under an approved State plan pursuant to section 623, in
accordance with regulations recommended by the consensus
committee and promulgated in accordance with section 604(b),
which process shall be for the purpose of ensuring that the
primary inspection agencies are discharging their duties
under this title; and
``(B) may include the periodic inspection of retail
locations for transit damage, label tampering, and retailer
compliance with this title.''.
(b) Conforming Amendments.--The Act is amended--
(1) in section 613 (42 U.S.C. 5412), by striking ``dealer''
each place it appears and inserting ``retailer'';
(2) in section 614(f) (42 U.S.C. 5413(f)), by striking
``dealer'' each place it appears and inserting ``retailer'';
(3) in section 615 (42 U.S.C. 5414)--
(A) in subsection (b)(1), by striking ``dealer'' and
inserting ``retailer'';
(B) in subsection (b)(3), by striking ``dealer or dealers''
and inserting ``retailer or retailers''; and
(C) in subsections (d) and (f), by striking ``dealers''
each place it appears and inserting ``retailers'';
(4) in section 616 (42 U.S.C. 5415), by striking ``dealer''
and inserting ``retailer''; and
(5) in section 623(c)(9), by striking ``dealers'' and
inserting ``retailers''.

SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY
STANDARDS.

Section 604 (42 U.S.C. 5403) is amended--
(1) by striking subsections (a) and (b) and inserting the
following new subsections:
``(a) Establishment.--
``(1) Authority.--The Secretary shall establish, by order,
appropriate Federal manufactured home construction and safety
standards, each of which--
``(A) shall--
``(i) be reasonable and practical;

[[Page H1886]]

``(ii) meet high standards of protection consistent with
the enumerated purposes of this title; and
``(iii) where appropriate, be performance-based and
objectively stated; and
``(B) except as provided in subsection (b), shall be
established in accordance with the consensus standards
development process.
``(2) Consensus standards and regulatory development
process.--
``(A) Initial agreement.--Not later than 180 days after the
date of enactment of the Manufactured Housing Improvement
Act, the Secretary shall enter into a contract with an
administering organization. The contractual agreement shall--
``(i) terminate on the date on which a contract is entered
into under subparagraph (B); and
``(ii) require the administering organization to--

``(I) appoint the initial members of the consensus
committee under paragraph (3);
``(II) administer the consensus standards development
process until the termination of that agreement; and
``(III) administer the consensus development and
interpretation process for procedural and enforcement
regulations and regulations specifying the permissible scope
and conduct of monitoring until the termination of that
agreement.

``(B) Competitively procured contract.--Upon the expiration
of the 4-year period beginning on the date on which all
members of the consensus committee are appointed under
paragraph (3), the Secretary shall, using competitive
procedures (as such term is defined in section 4 of the
Office of Federal Procurement Policy Act), enter into a
competitively awarded contract with an administering
organization. The administering organization shall administer
the consensus process for the development and interpretation
of the Federal standards, the procedural and enforcement
regulations and regulations specifying the permissible scope
and conduct of monitoring in accordance with this title.
``(C) Performance review.--The Secretary--
``(i) shall periodically review the performance of the
administering organization; and
``(ii) may replace the administering organization with
another qualified technical or building code organization,
pursuant to competitive procedures, if the Secretary
determines in writing that the administering organization is
not fulfilling the terms of the agreement or contract to
which the administering organization is subject or upon the
expiration of the agreement or contract.
``(3) Consensus committee.--
``(A) Purpose.--There is established a committee to be
known as the `consensus committee', which shall, in
accordance with this title--
``(i) provide periodic recommendations to the Secretary to
adopt, revise, and interpret the Federal manufactured
housing construction and safety standards in accordance
with this subsection;
``(ii) provide periodic recommendations to the Secretary to
adopt, revise, and interpret the procedural and enforcement
regulations, including regulations specifying the permissible
scope and conduct of monitoring in accordance with this
subsection; and
``(iii) be organized and carry out its business in a manner
that guarantees a fair opportunity for the expression and
consideration of various positions and for public
participation.
``(B) Membership.--The consensus committee shall be
composed of--
``(i) 21 voting members appointed, subject to approval by
the Secretary, by the administering organization from among
individuals who are qualified by background and experience to
participate in the work of the consensus committee; and
``(ii) 1 member appointed by the Secretary to represent the
Secretary on the consensus committee, who shall be a
nonvoting member.
``(C) Disapproval.--The Secretary may disapprove, in
writing with the reasons set forth, the appointment of an
individual under subparagraph (B)(i).
``(D) Selection procedures and requirements.--Each member
shall be appointed in accordance with the selection
procedures, which shall be established by the Secretary and
which shall be based on the procedures for consensus
committees promulgated by the American National Standards
Institute (or successor organization), to ensure equal
representation on the consensus committee of the following
interest categories:
``(i) Producers.--7 producers or retailers of manufactured
housing.
``(ii) Users.--7 persons representing consumer interests,
such as consumer organizations, recognized consumer leaders,
and owners who are residents of manufactured homes.
``(iii) General interest and public officials.--7 general
interest and public official members.
``(E) Balancing of interests.--
``(i) In general.--In order to achieve a proper balance of
interests on the consensus committee--

``(I) the administering organization in its appointments
shall ensure that all directly and materially affected
interests have the opportunity for fair and equitable
participation without dominance by any single interest; and
``(II) the Secretary may reject the appointment of any 1 or
more individuals in order to ensure that there is not
dominance by any single interest.

``(ii) Dominance defined.--In this subparagraph, the term
`dominance' means a position or exercise of dominant
authority, leadership, or influence by reason of superior
leverage, strength, or representation.
``(F) Additional qualifications.--
``(i) Financial independence.--No individual appointed
under subparagraph (D)(ii) shall have, and 3 of individuals
appointed under subparagraph (D)(iii) shall not have--

``(I) a significant financial interest in any segment of
the manufactured housing industry; or
``(II) a significant relationship to any person engaged in
the manufactured housing industry.

``(ii) Post-employment ban.--An individual appointed under
clause (ii) or (iii) of subparagraph (D) shall be subject to
a ban disallowing compensation from the manufactured housing
industry during the period of, and for the 1-year period
after, membership of that individual on the consensus
committee.
``(G) Meetings.--
``(i) Notice; open to public.--The consensus committee
shall provide advance notice of each meeting of the consensus
committee to the Secretary and publish advance notice of each
such meeting in the Federal Register. All meetings of the
consensus committee shall be open to the public.
``(ii) Reimbursement.--Members of the consensus committee
in attendance at the meetings shall be reimbursed for their
actual expenses as authorized by section 5703 of title 5,
United States Code, for persons employed intermittently in
Government service.
``(H) Inapplicability of other laws.--
``(i) Advisory committee act.--The consensus committee
shall not be considered to be an advisory committee for
purposes of the Federal Advisory Committee Act.
``(ii) Title 18.--The members of the consensus committee
shall not be subject to section 203, 205, 207, or 208 of
title 18, United States Code, to the extent of their proper
participation as members of the consensus committee.
``(iii) Ethics in government act of 1978.--The Ethics in
Government Act of 1978 shall not apply to members of the
consensus committee to the extent of their proper
participation as members of the consensus committee.
``(I) Administration.--The consensus committee and the
administering organization shall--
``(i) operate in conformance with the procedures
established by the American National Standards Institute for
the development and coordination of American National
Standards; and
``(ii) apply to the American National Standards Institute
and take such other actions as may be necessary to obtain
accreditation from the American National Standards Institute.
``(J) Staff.--The administering organization shall, upon
the request of the consensus committee, provide reasonable
staff resources to the consensus committee. Upon a showing of
need, the Secretary shall furnish technical support to any of
the various interest categories on the consensus committee.
``(K) Date of initial appointments.--The initial
appointments of all of the members of the consensus committee
shall be completed not later than 90 days after the date on
which an administration agreement under paragraph (2)(A) is
completed with the administering organization.
``(4) Revisions of standards.--
``(A) In general.--Beginning on the date on which all
members of the consensus committee are appointed under
paragraph (3), the consensus committee shall, not less than
once during each 2-year period--
``(i) consider revisions to the Federal manufactured home
construction and safety standards; and
``(ii) submit proposed revised standards and regulations,
if approved in a vote of the consensus committee by two-
thirds of the members, to the Secretary in the form of a
proposed rule, including an economic analysis.
``(B) Publication of proposed revised standards.--
``(i) Publication by secretary.--The consensus committee
shall provide a proposed revised standard under subparagraph
(A)(ii) to the Secretary who shall, not later than 30 days
after receipt, publish such proposed revised standard in the
Federal Register for notice and comment. Unless clause (ii)
applies, the Secretary shall provide an opportunity for
public comment on such proposed revised standard and any such
comments shall be submitted directly to the consensus
committee without delay.
``(ii) Publication of rejected proposed revised standard.--
If the Secretary rejects the proposed revised standard, the
Secretary shall publish the rejected proposed revised
standard in the Federal Register with the reasons for
rejection and any recommended modifications set forth.
``(C) Presentation of public comments; publication of
recommended revisions.--
``(i) Presentation.--Any public comments, views, and
objections to a proposed revised standard published under
subparagraph (B) shall be presented by the Secretary to the
consensus committee upon their receipt and in the manner
received, in accordance with procedures established by the
American National Standards Institute.
``(ii) Publication by the secretary.--The consensus
committee shall provide to the Secretary any revisions
proposed by the consensus committee, which the Secretary
shall, not later than 7 calendar days after receipt, cause to
be published in the Federal Register as a notice of the
recommended revisions of the consensus committee to the
standard, a notice of the submission of the recommended
revisions to the Secretary, and a description of the
circumstances under which the proposed revised standards
could become effective.
``(iii) Publication of rejected proposed revised
standard.--If the Secretary rejects the proposed revised
standard, the Secretary shall publish the rejected proposed
revised standard in the Federal Register with the reasons for
rejection and any recommended modifications set forth.
``(5) Review by the secretary.--
``(A) In general.--The Secretary shall either adopt,
modify, or reject a standard, as submitted

[[Page H1887]]

by the consensus committee under paragraph (4)(A).
``(B) Timing.--Not later than 12 months after the date on
which a standard is submitted to the Secretary by the
consensus committee, the Secretary shall take action
regarding such standard under subparagraph (C).
``(C) Procedures.--If the Secretary--
``(i) adopts a standard recommended by the consensus
committee, the Secretary shall--

``(I) issue a final order without further rulemaking; and
``(II) cause the final order to be published in the Federal
Register;

``(ii) determines that any standard should be rejected, the
Secretary shall--

``(I) reject the standard; and
``(II) cause to be published in the Federal Register a
notice to that effect, together with the reason or reasons
for rejecting the proposed standard; or

``(iii) determines that a standard recommended by the
consensus committee should be modified, the Secretary shall--

``(I) cause the proposed modified standard to be published
in the Federal Register, together with an explanation of the
reason or reasons for the determination of the Secretary; and
``(II) provide an opportunity for public comment in
accordance with section 553 of title 5, United States Code.

``(D) Final order.--Any final standard under this paragraph
shall become effective pursuant to subsection (c).
``(6) Failure to act.--If the Secretary fails to take final
action under paragraph (5) and to publish notice of the
action in the Federal Register before the expiration of the
12-month period beginning on the date on which the proposed
standard is submitted to the Secretary under paragraph
(4)(A)--
``(A) the recommendations of the consensus committee--
``(i) shall be considered to have been adopted by the
Secretary; and
``(ii) shall take effect upon the expiration of the 180-day
period that begins upon the conclusion of such 12-month
period; and
``(B) not later than 10 days after the expiration of such
12-month period, the Secretary shall cause to be published in
the Federal Register a notice of the failure of the Secretary
to act, the revised standard, and the effective date of the
revised standard, which notice shall be deemed to be an order
of the Secretary approving the revised standards proposed by
the consensus committee.
``(b) Other Orders.--
``(1) Regulations.--The Secretary may issue procedural and
enforcement regulations as necessary to implement the
provisions of this title. The consensus committee may submit
to the Secretary proposed procedural and enforcement
regulations and recommendations for the revision of such
regulations.
``(2) Interpretative bulletins.--The Secretary may issue
interpretative bulletins to clarify the meaning of any
Federal manufactured home construction and safety standard or
procedural and enforcement regulation. The consensus
committee may submit to the Secretary proposed interpretative
bulletins to clarify the meaning of any Federal manufactured
home construction and safety standard or procedural and
enforcement regulation.
``(3) Review by consensus committee.--Before issuing a
procedural or enforcement regulation or an interpretative
bulletin--
``(A) the Secretary shall--
``(i) submit the proposed procedural or enforcement
regulation or interpretative bulletin to the consensus
committee; and
``(ii) provide the consensus committee with a period of 120
days to submit written comments to the Secretary on the
proposed procedural or enforcement regulation or the
interpretative bulletin; and
``(B) if the Secretary rejects any significant comment
provided by the consensus committee under subparagraph (A),
the Secretary shall provide a written explanation of the
reasons for the rejection to the consensus committee; and
``(C) following compliance with subparagraphs (A) and (B),
the Secretary shall--
``(i) cause the proposed regulation or interpretative
bulletin and the consensus committee's written comments along
with the Secretary's response thereto to be published in the
Federal Register; and
``(ii) provide an opportunity for public comment in
accordance with section 553 of title 5, United States Code.
``(4) Required action.--The Secretary shall act on any
proposed regulation or interpretative bulletin submitted by
the consensus committee by approving or rejecting the
proposal within 120 days from the date the proposal is
received by the Secretary. The Secretary shall either--
``(A) approve the proposal and cause the proposed
regulation or interpretative bulletin to be published for
public comment in accordance with section 553 of title 5,
United States Code; or
``(B) reject the proposed regulation or interpretative
bulletin and--
``(i) provide a written explanation of the reasons for
rejection to the consensus committee; and
``(ii) cause the proposed regulation and the written
explanation for the rejection to be published in the Federal
Register.
``(5) Emergency orders.--If the Secretary determines, in
writing, that such action is necessary in order to respond to
an emergency which jeopardizes the public health or safety,
or to address an issue on which the Secretary determines that
the consensus committee has not made a timely recommendation,
following a request by the Secretary, the Secretary may issue
an order that is not developed under the procedures set forth
in subsection (a) or in this subsection, if the Secretary--
``(A) provides to the consensus committee a written
description and sets forth the reasons why emergency action
is necessary and all supporting documentation; and
``(B) issues and publishes the order in the Federal
Register.
``(6) Changes.--Any statement of policies, practices, or
procedures relating to construction and safety standards,
inspections, monitoring, or other enforcement activities
which constitutes a statement of general or particular
applicability and future offset and decisions to implement,
interpret, or prescribe law of policy by the Secretary is
subject to the provisions of subsection (a) or (b) of this
subsection. Any change adopted in violation of the provisions
of subsection (a) or (b) of this subsection is void.
``(7) Transition.--Until the date that the consensus
committee is appointed pursuant to section 1104(a)(3), the
Secretary may issue proposed orders that are not developed
under the procedures set forth in this section for new and
revised standards.'';
(2) in subsection (d), by adding at the end the following:
``Federal preemption under this subsection shall be broadly
and liberally construed to ensure that disparate State or
local requirements or standards do not affect the uniformity
and comprehensiveness of the standards promulgated hereunder
nor the Federal superintendence of the manufactured housing
industry as established by this title. Subject to section
605, there is reserved to each State the right to establish
standards for the stabilizing and support systems of
manufactured homes sited within that State, and for the
foundations on which manufactured homes sited within that
State are installed, and the right to enforce compliance with
such standards, except that such standards shall be
consistent with the purposes of this title and shall be
consistent with the design of the manufacturer.'';
(3) by striking subsection (e);
(4) in subsection (f), by striking the subsection
designation and all of the matter that precedes paragraph (1)
and inserting the following:
``(e) Considerations in Establishing and Interpreting
Standards and Regulations.--The consensus committee, in
recommending standards, regulations, and interpretations, and
the Secretary, in establishing standards or regulations, or
issuing interpretations under this section, shall--'';
(5) by striking subsection (g);
(6) in the first sentence of subsection (j), by striking
``subsection (f)'' and inserting ``subsection (e)''; and
(7) by redesignating subsections (h), (i), and (j), as
subsections (f), (g), and (h), respectively.

SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY
COUNCIL; MANUFACTURED HOME INSTALLATION.

(a) In General.--Section 605 (42 U.S.C. 5404) is amended to
read as follows:

``SEC. 605. MANUFACTURED HOME INSTALLATION.

``(a) Provision of Installation Design and Instructions.--A
manufacturer shall provide with each manufactured home,
design and instructions for the installation of the
manufactured home that have been approved by a design
approval primary inspection agency. After establishment of
model standards under subsection (b)(2), a design approval
primary inspection agency may not give such approval unless a
design and instruction provides equal or greater protection
than the protection provided under such model standards.
``(b) Model Manufactured Home Installation Standards.--
``(1) Proposed model standards.--Not later than 18 months
after the date on which the initial appointments of all of
the members of the consensus committee are completed, the
consensus committee shall develop and submit to the Secretary
proposed model manufactured home installation standards,
which shall, to the maximum extent possible, taking into
account the factors described in section 604(e), be
consistent with--
``(A) the home designs that have been approved by a design
approval primary inspection agency; and
``(B) the designs and instructions for the installation of
manufactured homes provided by manufacturers under subsection
(a).
``(2) Establishment of model standards.--Not later than 12
months after receiving the proposed model standards submitted
under paragraph (1), the Secretary shall develop and
establish model manufactured home installation standards,
which shall be consistent with--
``(A) the home designs that have been approved by a design
approval primary inspection agency; and
``(B) the designs and instructions for the installation of
manufactured homes provided by manufacturers under subsection
(a).
``(3) Factors for consideration.--
``(A) Consensus committee.--In developing the proposed
model standards under paragraph (1), the consensus committee
shall consider the factors described in section 604(e).
``(B) Secretary.--In developing and establishing the model
standards under paragraph (2), the Secretary shall consider
the factors described in section 604(e).
``(c) Manufactured Home Installation Programs.--
``(1) Protection of manufactured housing residents during
initial period.--During the 5-year period beginning on the
date of enactment of the Manufactured Housing Improvement
Act, no State or manufacturer may establish or implement any
installation standards that, in the determination of the
Secretary, provide less protection to the residents of
manufactured homes than the protection provided by the
installation standards in effect with respect to the State or
manufacturer, as applicable, on the date of enactment of the
Manufactured Housing Improvement Act.
``(2) Installation standards.--
``(A) Establishment of installation program.--Not later
than the expiration of the 5-

[[Page H1888]]

year period described in paragraph (1), the Secretary shall
establish an installation program that meets the requirements
of paragraph (3) for the enforcement of installation
standards in each State described in subparagraph (B).
``(B) Implementation of installation program.--Beginning on
the expiration of the 5-year period described in paragraph
(1), the Secretary shall implement the installation program
established under subparagraph (A) in each State that does
not have an installation program established by State law
that meets the requirements of paragraph (3).
``(C) Contracting out of implementation.--In carrying out
subparagraph (B), the Secretary may contract with an
appropriate agent to implement the installation program
established under that subparagraph, except that such agent
shall not be a person or entity other than a government, nor
an affiliate or subsidiary of such a person or entity, that
has entered into a contract with the Secretary to implement
any other regulatory program under this title.
``(3) Requirements.--An installation program meets the
requirements of this paragraph if it is a program regulating
the installation of manufactured homes that includes--
``(A) installation standards that, in the determination of
the Secretary, provide protection to the residents of
manufactured homes that equals or exceeds the protection
provided to those residents by--
``(i) the model manufactured home installation standards
established under subsection (b); or
``(ii) the designs and instructions provided by
manufacturers under subsection (a), if the Secretary
determines that such designs and instructions provide
protection to the residents of the manufactured home that
equals or exceeds the protection provided by the model
manufactured home installation standards established under
subsection (b);
``(B) the training and licensing of manufactured home
installers; and
``(C) inspection of the installation of manufactured
homes.''.
(b) Conforming Amendments.--Section 623(c) (42 U.S.C.
5422(c)) is amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) by redesignating paragraph (11) as paragraph (13); and
(3) by inserting after paragraph (10) the following:
``(11) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
enactment of the Manufactured Housing Improvement Act,
provides for an installation program established by State law
that meets the requirements of section 605(c)(3);''.

SEC. 1106. PUBLIC INFORMATION.

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

SEC. 1107. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.

(a) In General.--Section 608(a) (42 U.S.C. 5407(a)) is
amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(4) encouraging the government sponsored housing entities
to actively develop and implement secondary market
securitization programs for FHA manufactured home loans and
those of other loan programs, as appropriate, thereby
promoting the availability of affordable manufactured homes
to increase homeownership for all people in the United
States; and
``(5) reviewing the programs for FHA manufactured home
loans and developing any changes to such programs to promote
the affordability of manufactured homes, including changes in
loan terms, amortization periods, regulations, and
procedures.''.
(b) Definitions.--Section 608 (42 U.S.C. 5407) is amended
by adding at the end the following new subsection:
``(c) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Government sponsored housing entities.--The term
`government sponsored housing entities' means the Government
National Mortgage Association of the Department of Housing
and Urban Development, the Federal National Mortgage
Association, and the Federal Home Loan Mortgage Corporation.
``(2) FHA manufactured home loans.--The term `FHA
manufactured home loan' means a loan that--
``(A) is insured under title I of the National Housing Act
and is made for the purpose of financing alterations,
repairs, or improvements on or in connection with an existing
manufactured home, the purchase of a manufactured home, the
purchase of a manufactured home and a lot on which to place
the home, or the purchase only of a lot on which to place a
manufactured home; or
``(B) otherwise insured under the National Housing Act and
made for or in connection with a manufactured home.''.

SEC. 1108. FEES.

Section 620 (42 U.S.C. 5419) is amended to read as follows:

``authority to establish fees

``Sec. 620. (a) In General.--In carrying out inspections
under this title, in developing standards and regulations
pursuant to section 604, and in facilitating the acceptance
of the affordability and availability of manufactured housing
within the Department, the Secretary may--
``(1) establish and collect from manufactured home
manufacturers such reasonable fees as may be necessary to
offset the expenses incurred by the Secretary in connection
with carrying out the responsibilities of the Secretary under
this title, including--
``(A) conducting inspections and monitoring;
``(B) providing funding to States for the administration
and implementation of approved State plans under section 623,
including reasonable funding for cooperative educational and
training programs designed to facilitate uniform enforcement
under this title; these funds may be paid directly to the
States or may be paid or provided to any person or entity
designated to receive and disburse such funds by cooperative
agreements among participating States, provided that such
person or entity is not otherwise an agent of the Secretary
under this title;
``(C) providing the funding for a noncareer administrator
and Federal staff personnel for the manufactured housing
program;
``(D) administering the consensus committee as set forth in
section 604; and
``(E) facilitating the acceptance of the quality,
durability, safety, and affordability of manufactured housing
within the Department; and
``(2) use any fees collected under paragraph (1) to pay
expenses referred to in paragraph (1), which shall be exempt
and separate from any limitations on the Department of
Housing and Urban Development regarding full-time equivalent
positions and travel.
``(b) Contractors.--When using fees under this section, the
Secretary shall ensure that separate and independent
contractors are retained to carry out monitoring and
inspection work and any other work that may be delegated to a
contractor under this title.
``(c) Prohibited Use.--Fees collected under subsection (a)
shall not be used for any purpose or activity not
specifically authorized by this title unless such activity
was already engaged in by the Secretary prior to the date of
enactment of this title.
``(d) Modification.--Any fee established by the Secretary
under this section shall only be modified pursuant to
rulemaking in accordance with section 553 of title 5, United
States Code.
``(e) Appropriation and Deposit of Fees.--
``(1) In general.--There is established in the Treasury of
the United States a fund to be known as the `Manufactured
Housing Fees Trust Fund' for deposit of all fees collected
pursuant to subsection (a). These fees shall be held in trust
for use only as provided in this title.
``(2) Appropriation.--Such fees shall be available for
expenditure only to the extent approved in an annual
appropriation Act.''.

SEC. 1109. DISPUTE RESOLUTION.

Section 623(c) (42 U.S.C. 5422(c)), as amended by section
5(b) of this Act, is amended by inserting after paragraph
(11) (as added by section 5(b) of this Act) the following:
``(12) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
enactment of the Manufactured Housing Improvement Act,
provides for a dispute resolution program for the timely
resolution of disputes between manufacturers, retailers, and
installers of manufactured homes regarding responsibility,
and for the issuance of appropriate orders, for the
correction or repair of defects in manufactured homes that
are reported during the 1-year period beginning on the date
of installation; and''; and
(2) by adding at the end the following:
``(g) Enforcement of Dispute Resolution Standards.--
``(1) Establishment of dispute resolution program.--Not
later than the expiration of the 5-year period beginning on
the date of enactment of the Manufactured Housing Improvement
Act, the Secretary shall establish a dispute resolution
program that meets the requirements of subsection (c)(12) for
dispute resolution in each State described in paragraph (2).
``(2) Implementation of dispute resolution program.--
Beginning on the expiration of the 5-year period described in
paragraph (1), the Secretary shall implement the dispute
resolution program established under paragraph (1) in each
State that has not established a dispute resolution program
that meets the requirements of subsection (c)(12).
``(3) Contracting out of implementation.--In carrying out
paragraph (2), the Secretary may contract with an appropriate
agent to implement the dispute resolution program established
under that paragraph, except that such agent shall not be a
person or entity other than a government, nor an affiliate or
subsidiary of such a person or entity, that has entered into
a contract with the Secretary to implement any other
regulatory program under this title.''.

SEC. 1110. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

The Act is amended--
(1) by striking section 626 (42 U.S.C. 5425); and
(2) by redesignating sections 627 and 628 (42 U.S.C. 5426,
5401 note) as sections 626 and 627, respectively.

SEC. 1111. EFFECTIVE DATE.

The amendments made by this title shall take effect on the
date of enactment of this Act, except that the amendments
shall have no effect on any order or interpretative bulletin
that is published as a proposed rule pursuant to section 553
of title 5, United States Code, on or before such date.

SEC. 1112. SAVINGS PROVISION.

(a) Standards and Regulations.--The Federal manufactured
home construction and safety standards (as such term is
defined in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974) and

[[Page H1889]]

all regulations pertaining thereto in effect immediately
before the date of the enactment of this Act shall apply
until the effective date of a standard or regulation
modifying or superseding the existing standard or regulation
which is promulgated under subsection (a) or (b) of section
604 of the National Manufactured Housing Construction and
Safety Standards Act of 1974, as amended by this title.
(b) Contracts.--Any contract awarded pursuant to a Request
for Proposal issued before the date of enactment of this Act
shall remain in effect for a period of 2 years from the date
of enactment of this Act or for the remainder of the contract
term, whichever period is shorter.

The CHAIRMAN. No amendment to that amendment is in order except those
printed in House Report 106-562. Each amendment may be offered only in
the order printed in the report, by a Member designated in the report,
shall be considered read, shall be debatable for the time specified in
the report, equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be subject
to a demand for division of the question.
The Chairman of the Committee of the Whole may postpone a request for
a recorded vote on any amendment and may reduce to a minimum of 5
minutes the time for voting on any postponed question that immediately
follows another vote, provided that the time for voting on the first
question shall be a minimum of 15 minutes.
It is now in order to consider amendment No. 1 printed in House
Report 106-562.

Amendment No. 1 Offered By Mr. Lazio

Mr. LAZIO. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 1 offered by Mr. Lazio:
Page 28, line 24, after the comma insert ``except that
elementary education shall include pre-Kindergarten
education, and''.
Page 36, strike line 13, and all that follows through page
37, line 2, and insert the following:

SEC. 206. COMMUNITY PARTNERS NEXT DOOR PROGRAM.

(a) Short Title.--This section may be cited as the
``Community Partners Next Door Act''.
(b) Congressional Findings.--The Congress finds that--
(1) teachers, law enforcement officers, fire fighters, and
rescue personnel help form the backbones of communities and
are integral components in the social capital of
neighborhoods in the United States; and
(2) providing a discounted purchase price on HUD-owned
properties for teachers, law enforcement officers, fire
fighters, and rescue personnel recognizes the intrinsic value
of the services provided by such employees to their
communities and to family life and encourages and rewards
those who are dedicated to providing public service in our
most needy communities.
Page 37, line 10, after ``teachers'' insert ``and public
safety officers''.
Page 37, line 14, after ``teacher'' insert ``or public
safety officer''.
Page 38, line 2, after ``teacher'' insert ``or public
safety officer''.
Page 38, line 9, after ``teacher'' insert ``or public
safety officer''.
Page 38, line 11, after ``teacher'' insert ``or public
safety officer''.
Page 38, line 20, after ``teacher'' insert ``or public
safety officer''.
Page 39, line 4, after ``teacher'' insert ``or public
safety officer''.
Page 39, strike line 15, and all that follows through page
40, line 6.
Page 40, line 7, strike ``(H)'' and insert ``(G)''.
Page 40, after line 20, insert the following:
``(iii) The term `public safety officer' means an
individual who is employed on a full-time basis as a public
safety officer described in section 203(b)(10)(B)(i)(I)(bb).
Page 40, line 21, strike ``(iii)'' and insert ``(iv)''.
Page 40, line 24 after ``State-certified'' insert ``or
State-licensed''.
Page 40, line 24, before ``ad-'' insert ``or as an''.
Page 41, lines 14 and 15, strike ``COMMUNITY DEVELOPMENT
FINANCIAL INSTITUTION''.
Strike line 24 on page 41 and all that follows through page
42, line 1, and insert the following:
(A) in the first sentence, by inserting ``and insured
community development financial institutions'' after
``private mortgage insurers'';
Page 42, strike lines 12 through 15, and insert the
following:
(A) in the first sentence, by inserting ``and with insured
community development financial institutions'' before the
period at the end;
Page 42, after line 18, insert the following new
subparagraph:
(C) in the second sentence, by inserting ``and insured
community development financial institutions'' after
``private mortgage insurance companies'';
Page 42, line 19, strike ``(C)'' and insert ``(D)''.
Page 43, line 3, strike ``(D)'' and insert ``(E)''.
Page 43, strike lines 17 through 23 and insert the
following:
(B) in the second sentence, by inserting ``or insured
community development financial institution'' after ``private
mortgage insurance company'';
(6) in subsection (d), by inserting ``or insured community
development financial institution'' after ``private mortgage
insurance company''; and
Page 59, line 10, strike ``1 year'' and insert ``3
months''.
Page 59, after line 23, insert the following new section:

SEC. 212. SENSE OF CONGRESS REGARDING MAKING PROPERTIES
AVAILABLE FOR HOMEOWNERSHIP PROGRAMS.

It is the sense of the Congress that the Secretary of
Housing and Urban Development should consult with the heads
of other agencies of the Federal Government that own or hold
properties appropriate for use as housing to determine the
possibility and effectiveness of including such properties in
programs that make housing available for law enforcement
officers, teachers, or fire fighters.
Page 110, after line 2, insert the following:
The Secretary may not treat any application for a grant under
this section adversely in any manner solely on the basis that
the homeownership zone is located, in whole or in part,
within unincorporated areas.
Page 119, after line 1, insert the following new
subsection:
(a) Extension of Programs.--
(1) Emergency homeownership counseling.--Section 106(c)(9)
of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(c)(9)) is amended by striking ``September 30, 2000''
and inserting ``September 30, 2005''.
(2) Prepurchase and foreclosure prevention counseling
demonstration.--Section 106(d)(12) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended
by striking ``fiscal year 1994'' and inserting ``fiscal year
2005''.
Page 119, line 2, before ``Section'' insert ``(b)
Cooperative Ownership Housing Corporations.--
Page 121, strike lines 12 and 13 and insert the following:

TITLE VII--NATIVE AMERICAN HOMEOWNERSHIP

Subtitle A--Native American Housing

Page 138, strike lines 12 through 18 and insert the
following new subsection:
(j) Labor Standards.--Section 104(b) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4114(b) is amended--
(1) in paragraph (1), by striking ``Davis-Bacon Act (40
U.S.C. 276a-276a-5)'' and inserting ``Act of March 3, 1931
(commonly known as the Davis-Bacon Act; chapter 411; 46 Stat.
1494; 40 U.S.C 276a et seq.)''; and
(2) by adding at the end the following new paragraph:
``(3) Application of tribal laws.--Paragraph (1) shall not
apply to any contract or agreement for assistance, sale, or
lease pursuant to this Act, if such contract or agreement is
otherwise covered by one or more laws or regulations adopted
by an Indian tribe that requires the payment of not less than
prevailing wages, as determined by the Indian tribe.''.
Page 139, after line 16, insert the following new subtitle:

Subtitle B--Native Hawaiian Housing

SEC. 721. SHORT TITLE.

This subtitle may be cited as the ``Hawaiian Homelands
Homeownership Act of 2000''.

SEC. 722. FINDINGS.

The Congress finds that--
(1) the United States has undertaken a responsibility to
promote the general welfare of the United States by--
(A) employing its resources to remedy the unsafe and
unsanitary housing conditions and the acute shortage of
decent, safe, and sanitary dwellings for families of lower
income; and
(B) developing effective partnerships with governmental and
private entities to accomplish the objectives referred to in
subparagraph (A);
(2) the United States has a special responsibility for the
welfare of the Native peoples of the United States, including
Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), the United
States set aside 200,000 acres of land in the Federal
territory that later became the State of Hawaii in order to
establish a homeland for the native people of Hawaii--Native
Hawaiians;
(4) despite the intent of Congress in 1920 to address the
housing needs of Native Hawaiians through the enactment of
the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et
seq.), Native Hawaiians eligible to reside on the Hawaiian
home lands have been foreclosed from participating in Federal
housing assistance programs available to all other eligible
families in the United States;
(5) although Federal housing assistance programs have been
administered on a racially neutral basis in the State of
Hawaii, Native Hawaiians continue to have the greatest unmet
need for housing and the highest rates of overcrowding in the
United States;
(6) among the Native American population of the United
States, Native Hawaiians experience the highest percentage of
housing

[[Page H1890]]

problems in the United States, as the percentage--
(A) of housing problems in the Native Hawaiian population
is 49 percent, as compared to--
(i) 44 percent for American Indian and Alaska Native
households in Indian country; and
(ii) 27 percent for all other households in the United
States; and
(B) overcrowding in the Native Hawaiian population is 36
percent as compared to 3 percent for all other households in
the United States;
(7) among the Native Hawaiian population, the needs of
Native Hawaiians, as that term is defined in section 801 of
the Native American Housing Assistance and Self-Determination
Act of 1996, as added by section 723 of this subtitle,
eligible to reside on the Hawaiian Home Lands are the most
severe, as--
(A) the percentage of overcrowding in Native Hawaiian
households on the Hawaiian Home Lands is 36 percent; and
(B) approximately 13,000 Native Hawaiians, which constitute
95 percent of the Native Hawaiians who are eligible to reside
on the Hawaiian Home Lands, are in need of housing;
(8) applying the Department of Housing and Urban
Development guidelines--
(A) 70.8 percent of Native Hawaiians who either reside or
who are eligible to reside on the Hawaiian Home Lands have
incomes that fall below the median family income; and
(B) 50 percent of Native Hawaiians who either reside or who
are eligible to reside on the Hawaiian Home Lands have
incomes below 30 percent of the median family income;
(9) \1/3\ of those Native Hawaiians who are eligible to
reside on the Hawaiian Home Lands pay more than 30 percent of
their income for shelter, and \1/2\ of those Native Hawaiians
face overcrowding;
(10) the extraordinarily severe housing needs of Native
Hawaiians demonstrate that Native Hawaiians who either reside
on, or are eligible to reside on, Hawaiian Home Lands have
been denied equal access to Federal low-income housing
assistance programs available to other qualified residents of
the United States, and that a more effective means of
addressing their housing needs must be authorized;
(11) consistent with the recommendations of the National
Commission on American Indian, Alaska Native, and Native
Hawaiian Housing, and in order to address the continuing
prevalence of extraordinarily severe housing needs among
Native Hawaiians who either reside or are eligible to reside
on the Hawaiian Home Lands, Congress finds it necessary to
extend the Federal low-income housing assistance available to
American Indians and Alaska Natives under the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) to those Native Hawaiians;
(12) under the treatymaking power of the United States,
Congress had the constitutional authority to confirm a treaty
between the United States and the government that represented
the Hawaiian people, and from 1826 until 1893, the United
States recognized the independence of the Kingdom of Hawaii,
extended full diplomatic recognition to the Hawaiian
Government, and entered into treaties and conventions with
the Hawaiian monarchs to govern commerce and navigation in
1826, 1842, 1849, 1875, and 1887;
(13) the United States has recognized and reaffirmed that--
(A) Native Hawaiians have a cultural, historic, and land-
based link to the indigenous people who exercised sovereignty
over the Hawaiian Islands, and that group has never
relinquished its claims to sovereignty or its sovereign
lands;
(B) Congress does not extend services to Native Hawaiians
because of their race, but because of their unique status as
the indigenous people of a once sovereign nation as to whom
the United States has established a trust relationship;
(C) Congress has also delegated broad authority to
administer a portion of the Federal trust responsibility to
the State of Hawaii;
(D) the political status of Native Hawaiians is comparable
to that of American Indians and Alaska Natives; and
(E) the aboriginal, indigenous people of the United States
have--
(i) a continuing right to autonomy in their internal
affairs; and
(ii) an ongoing right of self-determination and self-
governance that has never been extinguished;
(14) the political relationship between the United States
and the Native Hawaiian people has been recognized and
reaffirmed by the United States as evidenced by the inclusion
of Native Hawaiians in--
(A) the Native American Programs Act of 1974 (42 U.S.C.
2291 et seq.);
(B) the American Indian Religious Freedom Act (42 U.S.C.
1996 et seq.);
(C) the National Museum of the American Indian Act (20
U.S.C. 80q et seq.);
(D) the Native American Graves Protection and Repatriation
Act (25 U.S.C. 3001 et seq.);
(E) the National Historic Preservation Act (16 U.S.C. 470
et seq.);
(F) the Native American Languages Act of 1992 (106 Stat.
3434);
(G) the American Indian, Alaska Native and Native Hawaiian
Culture and Arts Development Act (20 U.S.C. 4401 et seq.);
(H) the Job Training Partnership Act (29 U.S.C. 1501 et
seq.); and
(I) the Older Americans Act of 1965 (42 U.S.C. 3001 et
seq.); and
(15) in the area of housing, the United States has
recognized and reaffirmed the political relationship with the
Native Hawaiian people through--
(A) the enactment of the Hawaiian Homes Commission Act,
1920 (42 Stat. 108 et seq.), which set aside approximately
200,000 acres of public lands that became known as Hawaiian
Home Lands in the Territory of Hawaii that had been ceded to
the United States for homesteading by Native Hawaiians in
order to rehabilitate a landless and dying people;
(B) the enactment of the Act entitled ``An Act to provide
for the admission of the State of Hawaii into the Union'',
approved March 18, 1959 (73 Stat. 4)--
(i) by ceding to the State of Hawaii title to the public
lands formerly held by the United States, and mandating that
those lands be held in public trust, for the betterment of
the conditions of Native Hawaiians, as that term is defined
in section 201 of the Hawaiian Homes Commission Act, 1920 (42
Stat. 108 et seq.); and
(ii) by transferring the United States responsibility for
the administration of Hawaiian Home Lands to the State of
Hawaii, but retaining the authority to enforce the trust,
including the exclusive right of the United States to consent
to any actions affecting the lands which comprise the corpus
of the trust and any amendments to the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), enacted by the
legislature of the State of Hawaii affecting the rights of
beneficiaries under the Act;
(C) the authorization of mortgage loans insured by the
Federal Housing Administration for the purchase,
construction, or refinancing of homes on Hawaiian Home Lands
under the National Housing Act (Public Law 479, 73d Congress;
12 U.S.C. 1701 et seq.);
(D) authorizing Native Hawaiian representation on the
National Commission on American Indian, Alaska Native, and
Native Hawaiian Housing under Public Law 101-235;
(E) the inclusion of Native Hawaiians in the definition
under section 3764 of title 38, United States Code,
applicable to subchapter V of chapter 37 of title 38, United
States Code (relating to a housing loan program for Native
American veterans); and
(F) the enactment of the Hawaiian Home Lands Recovery Act
(109 Stat. 357; 48 U.S.C. 491, note prec.) which establishes
a process for the conveyance of Federal lands to the
Department of Hawaiian Homes Lands that are equivalent in
value to lands acquired by the United States from the
Hawaiian Home Lands inventory.

SEC. 723. HOUSING ASSISTANCE.

The Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.) is amended
by adding at the end the following:

``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

``SEC. 801. DEFINITIONS.

``In this title:
``(1) Department of hawaiian home lands; department.--The
term `Department of Hawaiian Home Lands' or `Department'
means the agency or department of the government of the State
of Hawaii that is responsible for the administration of the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).
``(2) Director.--The term `Director' means the Director of
the Department of Hawaiian Home Lands.
``(3) Elderly families; near-elderly families.--
``(A) In general.--The term `elderly family' or `near-
elderly family' means a family whose head (or his or her
spouse), or whose sole member, is--
``(i) for an elderly family, an elderly person; or
``(ii) for a near-elderly family, a near-elderly person.
``(B) Certain families included.--The term `elderly family'
or `near-elderly family' includes--
``(i) 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, 1920(42 Stat. 110);
or
``(B) are acquired pursuant to that Act.
``(5) Housing area.--The term `housing area' means an area
of Hawaiian Home Lands with respect to which the Department
of Hawaiian Home Lands is authorized to provide assistance
for affordable housing under this Act.
``(6) Housing entity.--The term `housing entity' means the
Department of Hawaiian Home Lands.
``(7) Housing plan.--The term `housing plan' means a plan
developed by the Department of Hawaiian Home Lands.
``(8) Median income.--The term `median income' means, with
respect to an area that is a Hawaiian housing area, the
greater of--
``(A) the median income for the Hawaiian housing area,
which shall be determined by the Secretary; or
``(B) the median income for the State of Hawaii.
``(9) Native hawaiian.--The term `Native Hawaiian' means
any individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people, who, prior to
1778, occupied and exercised

[[Page H1891]]

sovereignty in the area that currently constitutes the State
of Hawaii, as evidenced by--
``(i) genealogical records;
``(ii) verification by kupuna (elders) or kama'aina (long-
term community residents); or
``(iii) birth records of the State of Hawaii.

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

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

``SEC. 803. HOUSING PLAN.

``(a) Plan Submission.--The Secretary shall--
``(1) require the Director to submit a housing plan under
this section for each fiscal year; and
``(2) provide for the review of each plan submitted under
paragraph (1).
``(b) 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;
``(ii) the manner in which the characteristics referred to
in clause (i) influence the decision of the Department of
Hawaiian Home Lands to use grant amounts to be provided under
this title for--

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

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

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

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

``(I) any existing or anticipated homeownership programs
and rental programs to be carried out during the period
covered by the plan; and
``(II) the requirements and assistance available under the
programs referred to in subclause (I);

``(vi) a description of--

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

``(vii) a description of--

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

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

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

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

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

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

``(I) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.) or with the Fair Housing Act (42 U.S.C. 3601
et seq.) in carrying out this title, to the extent that such
title is applicable; and
``(II) other applicable Federal statutes;

``(ii) a certification that the Department will require
adequate insurance coverage for housing units that are owned
and operated or assisted with grant amounts provided under

[[Page H1892]]

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

``SEC. 804. REVIEW OF PLANS.

``(a) Review and Notice.--
``(1) Review.--
``(A) In general.--The Secretary shall conduct a review of
a housing plan submitted to the Secretary under section 803
to ensure that the plan complies with the requirements of
that section.
``(B) Limitation.--The Secretary shall have the discretion
to review a plan referred to in subparagraph (A) only to the
extent that the Secretary considers that the review is
necessary.
``(2) Notice.--
``(A) In general.--Not later than 60 days after receiving a
plan under section 803, the Secretary shall notify the
Director of the Department of Hawaiian Home Lands whether the
plan complies with the requirements under that section.
``(B) Effect of failure of secretary to take action.--For
purposes of this title, if the Secretary does not notify the
Director, as required under this subsection and subsection
(b), upon the expiration of the 60-day period described in
subparagraph (A)--
``(i) the plan shall be considered to have been determined
to comply with the requirements under section 803; and
``(ii) the Director shall be considered to have been
notified of compliance.
``(b) Notice of Reasons for Determination of
Noncompliance.--If the Secretary determines that a plan
submitted under section 803 does not comply with the
requirements of that section, the Secretary shall specify in
the notice under subsection (a)--
``(1) the reasons for noncompliance; and
``(2) any modifications necessary for the plan to meet the
requirements of section 803.
``(c) Review.--
``(1) In general.--After the Director of the Department of
Hawaiian Home Lands submits a housing plan under section 803,
or any amendment or modification to the plan to the
Secretary, to the extent that the Secretary considers such
action to be necessary to make a determination under this
subsection, the Secretary shall review the plan (including
any amendments or modifications thereto) to determine whether
the contents of the plan--
``(A) set forth the information required by section 803 to
be contained in the housing plan;
``(B) are consistent with information and data available to
the Secretary; and
``(C) are not prohibited by or inconsistent with any
provision of this Act or any other applicable law.
``(2) Incomplete plans.--If the Secretary determines under
this subsection that any of the appropriate certifications
required under section 803(c)(2)(E) are not included in a
plan, the plan shall be considered to be incomplete.
``(d) Updates to Plan.--
``(1) In general.--Subject to paragraph (2), after a plan
under section 803 has been submitted for a fiscal year, the
Director of the Department of Hawaiian Home Lands may comply
with the provisions of that section for any succeeding fiscal
year (with respect to information included for the 5-year
period under section 803(b) or for the 1-year period under
section 803(c)) by submitting only such information regarding
such changes as may be necessary to update the plan
previously submitted.
``(2) Complete plans.--The Director shall submit a complete
plan under section 803 not later than 4 years after
submitting an initial plan under that section, and not less
frequently than every 4 years thereafter.
``(e) Effective Date.--This section and section 803 shall
take effect on the date provided by the Secretary pursuant to
section 807(a) to provide for timely submission and review of
the housing plan as necessary for the provision of assistance
under this title for fiscal year 2001.

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

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

``SEC. 806. ENVIRONMENTAL REVIEW.

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

[[Page H1893]]

``(b) Procedure.--
``(1) In general.--The Secretary shall authorize the
release of funds subject to the procedures under this section
only if, not less than 15 days before that approval and
before any commitment of funds to such projects, the Director
of the Department of Hawaiian Home Lands submits to the
Secretary a request for such release accompanied by a
certification that meets the requirements of subsection (c).
``(2) Effect of approval.--The approval of the Secretary of
a certification described in paragraph (1) shall be deemed to
satisfy the responsibilities of the Secretary under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) and such other provisions of law as the regulations of
the Secretary specify to the extent that those
responsibilities relate to the releases of funds for projects
that are covered by that certification.
``(c) Certification.--A certification under the procedures
under this section shall--
``(1) be in a form acceptable to the Secretary;
``(2) be executed by the Director of the Department of
Hawaiian Home Lands;
``(3) specify that the Department of Hawaiian Home Lands
has fully carried out its responsibilities as described under
subsection (a); and
``(4) specify that the Director--
``(A) consents to assume the status of a responsible
Federal official under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) and each provision of law
specified in regulations issued by the Secretary to the
extent that those laws apply by reason of subsection (a); and
``(B) is authorized and consents on behalf of the
Department of Hawaiian Home Lands and the Director to accept
the jurisdiction of the Federal courts for the purpose of
enforcement of the responsibilities of the Director of the
Department of Hawaiian Home Lands as such an official.

``SEC. 807. REGULATIONS.

``The Secretary shall issue final regulations necessary to
carry out this title not later than October 1, 2001.

``SEC. 808. EFFECTIVE DATE.

``Except as otherwise expressly provided in this title,
this title shall take effect on the date of enactment of the
American Homeownership and Economic Opportunity Act of 2000.

``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

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

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

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

``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

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

``SEC. 811. PROGRAM REQUIREMENTS.

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

[[Page H1894]]

this title, the Director shall develop policies governing the
management and maintenance of housing assisted with grant
amounts under this title.

``SEC. 812. TYPES OF INVESTMENTS.

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

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

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

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

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

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

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

``SEC. 815. REPAYMENT.

``If the Department of Hawaiian Home Lands uses grant
amounts to provide affordable housing under activities under
this title and, at any time during the useful life of the
housing, the housing does not comply with the requirement
under section 813(a)(2), the Secretary shall--
``(1) reduce future grant payments on behalf of the
Department by an amount equal to the grant amounts used for
that housing (under the authority of section 819(a)(2)); or
``(2) require repayment to the Secretary of any amount
equal to those grant amounts.

``SEC. 816. ANNUAL ALLOCATION.

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

``SEC. 817. ALLOCATION FORMULA.

``(a) Establishment.--The Secretary shall, by regulation
issued not later than the expiration of the 6-month period
beginning on the date of enactment of the American
Homeownership and Economic Opportunity Act of 2000, in the
manner provided under section 807, establish a formula to
provide for the allocation of amounts available for a fiscal
year for block grants under this title in accordance with the
requirements of this section.
``(b) Factors for Determination of Need.--The formula under
subsection (a) shall be based on factors that reflect the
needs for assistance for affordable housing activities,
including--
``(1) the number of low-income dwelling units owned or
operated at the time pursuant to a contract between the
Director and the Secretary;
``(2) the extent of poverty and economic distress and the
number of Native Hawaiian families eligible to reside on the
Hawaiian Home Lands; and
``(3) any other objectively measurable conditions that the
Secretary and the Director may specify.
``(c) Other Factors for Consideration.--In establishing the
formula under subsection (a), the Secretary shall consider
the relative administrative capacities of the Department of
Hawaiian Home Lands and other challenges faced by the
Department, including--
``(1) geographic distribution within Hawaiian Home Lands;
and
``(2) technical capacity.
``(d) Effective Date.--This section shall take effect on
the date of enactment of the American Homeownership and
Economic Opportunity Act of 2000.

``SEC. 818. REMEDIES FOR NONCOMPLIANCE.

``(a) Actions by Secretary Affecting Grant Amounts.--
``(1) In general.--Except as provided in subsection (b), if
the Secretary finds after reasonable notice and opportunity
for a hearing that the Department of Hawaiian Home Lands has
failed to comply substantially with any provision of this
title, the Secretary shall--
``(A) terminate payments under this title to the
Department;
``(B) reduce payments under this title to the Department by
an amount equal to the amount of such payments that were not
expended in accordance with this title; or
``(C) limit the availability of payments under this title
to programs, projects, or activities not affected by such
failure to comply.
``(2) Actions.--If the Secretary takes an action under
subparagraph (A), (B), or (C) of paragraph (1), the Secretary
shall continue that action until the Secretary determines
that the failure by the Department to comply with the
provision has been remedied by the Department and the
Department is in compliance with that provision.
``(b) Noncompliance Because of a Technical Incapacity.--The
Secretary may provide technical assistance for the
Department, either directly or indirectly, that is designed
to increase the capability and capacity of the Director of
the Department to administer assistance provided under this
title in compliance with the requirements under this title if
the Secretary makes a finding under subsection (a), but
determines that the failure of the Department to comply
substantially with the provisions of this title--
``(1) is not a pattern or practice of activities
constituting willful noncompliance; and
``(2) is a result of the limited capability or capacity of
the Department of Hawaiian Home Lands.
``(c) Referral for Civil Action.--
``(1) Authority.--In lieu of, or in addition to, any action
that the Secretary may take under subsection (a), if the
Secretary has reason to believe that the Department of
Hawaiian Home Lands has failed to comply substantially with
any provision of this title, the Secretary may refer the
matter to the Attorney General of the United States with

[[Page H1895]]

a recommendation that an appropriate civil action be
instituted.
``(2) Civil action.--Upon receiving a referral under
paragraph (1), the Attorney General may bring a civil action
in any United States district court of appropriate
jurisdiction for such relief as may be appropriate, including
an action--
``(A) to recover the amount of the assistance furnished
under this title that was not expended in accordance with
this title; or
``(B) for mandatory or injunctive relief.
``(d) Review.--
``(1) In general.--If the Director receives notice under
subsection (a) of the termination, reduction, or limitation
of payments under this Act, the Director--
``(A) may, not later than 60 days after receiving such
notice, file with the United States Court of Appeals for the
Ninth Circuit, or in the United States Court of Appeals for
the District of Columbia, a petition for review of the action
of the Secretary; and
``(B) upon the filing of any petition under subparagraph
(A), shall forthwith transmit copies of the petition to the
Secretary and the Attorney General of the United States, who
shall represent the Secretary in the litigation.
``(2) Procedure.--
``(A) In general.--The Secretary shall file in the court a
record of the proceeding on which the Secretary based the
action, as provided in section 2112 of title 28, United
States Code.
``(B) Objections.--No objection to the action of the
Secretary shall be considered by the court unless the
Department has registered the objection before the Secretary.
``(3) Disposition.--
``(A) Court proceedings.--
``(i) Jurisdiction of court.--The court shall have
jurisdiction to affirm or modify the action of the Secretary
or to set the action aside in whole or in part.
``(ii) Findings of fact.--If supported by substantial
evidence on the record considered as a whole, the findings of
fact by the Secretary shall be conclusive.
``(iii) Addition.--The court may order evidence, in
addition to the evidence submitted for review under this
subsection, to be taken by the Secretary, and to be made part
of the record.
``(B) Secretary.--
``(i) In general.--The Secretary, by reason of the
additional evidence referred to in subparagraph (A) and filed
with the court--

``(I) may--

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

``(II) shall file--

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

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

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

``SEC. 819. MONITORING OF COMPLIANCE.

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

``SEC. 820. PERFORMANCE REPORTS.

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

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

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

``SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

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

``SEC. 823. REPORTS TO CONGRESS.

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

``SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to the Department
of Housing and Urban Development for grants under this title
such

[[Page H1896]]

sums as may be necessary for each of fiscal years 2001, 2002,
2003, 2004, and 2005.''.

SEC. 724. LOAN GUARANTEES.

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

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

``(a) Definitions.--In this section:
``(1) Department of hawaiian home lands.--The term
`Department of Hawaiian Home Lands' means the agency or
department of the government of the State of Hawaii that is
responsible for the administration of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.).
``(2) Eligible entity.--The term `eligible entity' means a
Native Hawaiian family, the Department of Hawaiian Home
Lands, the Office of Hawaiian Affairs, and private nonprofit
or private for-profit organizations experienced in the
planning and development of affordable housing for Native
Hawaiians.
``(3) Family.--The term `family' means 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).
``(5) Hawaiian home lands.--The term `Hawaiian Home Lands'
means lands that--
``(A) have the status of Hawaiian Home Lands under section
204 of the Hawaiian Homes Commission Act (42 Stat. 110); or
``(B) are acquired pursuant to that Act.
``(6) Native hawaiian.--The term `Native Hawaiian' means
any individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people, who, prior to
1778, occupied and exercised sovereignty in the area that
currently constitutes the State of Hawaii, as evidenced by--
``(i) genealogical records;
``(ii) verification by kupuna (elders) or kama'aina (long-
term community residents); or
``(iii) birth records of the State of Hawaii.
``(7) Office of hawaiian affairs.--The term `Office of
Hawaiian Affairs' means the entity of that name established
under the constitution of the State of Hawaii.
``(b) Authority.--To provide access to sources of private
financing to Native Hawaiian families who otherwise could not
acquire housing financing because of the unique legal status
of the Hawaiian Home Lands or as a result of a lack of access
to private financial markets, the Secretary may guarantee an
amount not to exceed 100 percent of the unpaid principal and
interest that is due on an eligible loan under subsection
(b).
``(c) Eligible Loans.--Under this section, a loan is an
eligible loan if that loan meets the following requirements:
``(1) Eligible borrowers.--The loan is made only to a
borrower who is--
``(A) a Native Hawaiian family;
``(B) the Department of Hawaiian Home Lands;
``(C) the Office of Hawaiian Affairs; or
``(D) a private nonprofit organization experienced in the
planning and development of affordable housing for Native
Hawaiians.
``(2) Eligible housing.--
``(A) In general.--The loan will be used to construct,
acquire, or rehabilitate not more than 4-family dwellings
that are standard housing and are located on Hawaiian Home
Lands for which a housing plan described in subparagraph (B)
applies.
``(B) Housing plan.--A housing plan described in this
subparagraph is a housing plan that--
``(i) has been submitted and approved by the Secretary
under section 803 of the Native American Housing Assistance
and Self-Determination Act of 1996; and
``(ii) provides for the use of loan guarantees under this
section to provide affordable homeownership housing on
Hawaiian Home Lands.
``(3) Security.--The loan may be secured by any collateral
authorized under applicable Federal or State law.
``(4) Lenders.--
``(A) In general.--The loan shall be made only by a lender
approved by, and meeting qualifications established by, the
Secretary, including any lender described in subparagraph
(B), except that a loan otherwise insured or guaranteed by an
agency of the Federal Government or made by the Department of
Hawaiian Home Lands from amounts borrowed from the United
States shall not be eligible for a guarantee under this
section.
``(B) Approval.--The following lenders shall be considered
to be lenders that have been approved by the Secretary:
``(i) Any mortgagee approved by the Secretary for
participation in the single family mortgage insurance program
under title II of the National Housing Act (12 U.S.C.A. 1707
et seq.).
``(ii) Any lender that makes housing loans under chapter 37
of title 38, United States Code, that are automatically
guaranteed under section 3702(d) of title 38, United States
Code.
``(iii) Any lender approved by the Secretary of Agriculture
to make guaranteed loans for single family housing under the
Housing Act of 1949 (42 U.S.C.A. 1441 et seq.).
``(iv) Any other lender that is supervised, approved,
regulated, or insured by any agency of the Federal
Government.
``(5) Terms.--The loan shall--
``(A) be made for a term not exceeding 30 years;
``(B) bear interest (exclusive of the guarantee fee under
subsection (d) and service charges, if any) at a rate agreed
upon by the borrower and the lender and determined by the
Secretary to be reasonable, but not to exceed the rate
generally charged in the area (as determined by the
Secretary) for home mortgage loans not guaranteed or insured
by any agency or instrumentality of the Federal Government;
``(C) involve a principal obligation not exceeding--
``(i) 97.75 percent of the appraised value of the property
as of the date the loan is accepted for guarantee (or 98.75
percent if the value of the property is $50,000 or less); or
``(ii) the amount approved by the Secretary under this
section; and
``(D) involve a payment on account of the property--
``(i) in cash or its equivalent; or
``(ii) through the value of any improvements to the
property made through the skilled or unskilled labor of the
borrower, as the Secretary shall provide.
``(d) Certificate of Guarantee.--
``(1) Approval process.--
``(A) In general.--Before the Secretary approves any loan
for guarantee under this section, the lender shall submit the
application for the loan to the Secretary for examination.
``(B) Approval.--If the Secretary approves the application
submitted under subparagraph (A), the Secretary shall issue a
certificate under this subsection as evidence of the loan
guarantee approved.
``(2) Standard for approval.--The Secretary may approve a
loan for guarantee under this section and issue a certificate
under this subsection only if the Secretary determines that
there is a reasonable prospect of repayment of the loan.
``(3) Effect.--
``(A) In general.--A certificate of guarantee issued under
this subsection by the Secretary shall be conclusive evidence
of the eligibility of the loan for guarantee under this
section and the amount of that guarantee.
``(B) Evidence.--The evidence referred to in subparagraph
(A) shall be incontestable in the hands of the bearer.
``(C) Full faith and credit.--The full faith and credit of
the United States is pledged to the payment of all amounts
agreed to be paid by the Secretary as security for the
obligations made by the Secretary under this section.
``(4) Fraud and misrepresentation.--This subsection may not
be construed--
``(A) to preclude the Secretary from establishing defenses
against the original lender based on fraud or material
misrepresentation; or
``(B) to bar the Secretary from establishing by regulations
that are on the date of issuance or disbursement, whichever
is earlier, partial defenses to the amount payable on the
guarantee.
``(e) Guarantee Fee.--
``(1) In general.--The Secretary shall fix and collect a
guarantee fee for the guarantee of a loan under this section,
which may not exceed the amount equal to 1 percent of the
principal obligation of the loan.
``(2) Payment.--The fee under this subsection shall--
``(A) be paid by the lender at time of issuance of the
guarantee; and
``(B) be adequate, in the determination of the Secretary,
to cover expenses and probable losses.
``(3) Deposit.--The Secretary shall deposit any fees
collected under this subsection in the Native Hawaiian
Housing Loan Guarantee Fund established under subsection (j).
``(f) Liability Under Guarantee.--The liability under a
guarantee provided under this section shall decrease or
increase on a pro rata basis according to any decrease or
increase in the amount of the unpaid obligation under the
provisions of the loan agreement involved.
``(g) Transfer and Assumption.--Notwithstanding any other
provision of law, any loan guaranteed under this section,
including the security given for the loan, may be sold or
assigned by the lender to any financial institution subject
to examination and supervision by an agency of the Federal
Government or of any State or the District of Columbia.
``(h) Disqualification of Lenders and Civil Money
Penalties.--
``(1) In general.--
``(A) Grounds for action.--The Secretary may take action
under subparagraph (B) if the Secretary determines that any
lender or holder of a guarantee certificate under subsection
(c)--
``(i) has failed--

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

``(ii) has engaged in practices otherwise detrimental to
the interest of a borrower or the United States.
``(B) Actions.--Upon a determination by the Secretary that
a holder of a guarantee certificate under subsection (c) has
failed to carry out an activity described in subparagraph
(A)(i) or has engaged in practices described in subparagraph
(A)(ii), the Secretary may--
``(i) refuse, either temporarily or permanently, to
guarantee any further loans made by such lender or holder;

[[Page H1897]]

``(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 (A), the holder of the guarantee
shall exhaust all reasonable possibilities of collection.
Upon payment, in whole or in part, to the holder, the note or
judgment evidencing the debt shall be assigned to the United
States and the holder shall have no further claim against the
borrower or the United States. The Secretary shall then take
such action to collect as the Secretary determines to be
appropriate.
``(2) Limitations on liquidation.--
``(A) In general.--If a borrower defaults on a loan
guaranteed under this section that involves a security
interest in restricted Hawaiian Home Land property, the
mortgagee or the Secretary shall only pursue liquidation
after offering to transfer the account to another eligible
Hawaiian family or the Department of Hawaiian Home Lands.
``(B) Limitation.--If, after action is taken under
subparagraph (A), the mortgagee or the Secretary subsequently
proceeds to liquidate the account, the mortgagee or the
Secretary shall not sell, transfer, or otherwise dispose of
or alienate the property described in subparagraph (A) except
to another eligible Hawaiian family or to the Department of
Hawaiian Home Lands.
``(j) Hawaiian Housing Loan Guarantee Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States the Hawaiian Housing Loan Guarantee Fund
for the purpose of providing loan guarantees under this
section.
``(2) Credits.--The Guarantee Fund shall be credited with--
``(A) any amount, claims, notes, mortgages, contracts, and
property acquired by the Secretary under this section, and
any collections and proceeds therefrom;
``(B) any amounts appropriated pursuant to paragraph (7);
``(C) any guarantee fees collected under subsection (d);
and
``(D) any interest or earnings on amounts invested under
paragraph (4).
``(3) Use.--Amounts in the Guarantee Fund shall be
available, to the extent provided in appropriations Acts,
for--
``(A) fulfilling any obligations of the Secretary with
respect to loans guaranteed under this section, including the
costs (as that term is defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loans;
``(B) paying taxes, insurance, prior liens, expenses
necessary to make fiscal adjustment in connection with the
application and transmittal of collections, and other
expenses and advances to protect the Secretary for loans
which are guaranteed under this section or held by the
Secretary;
``(C) acquiring such security property at foreclosure sales
or otherwise;
``(D) paying administrative expenses in connection with
this section; and
``(E) reasonable and necessary costs of rehabilitation and
repair to properties that the Secretary holds or owns
pursuant to this section.
``(4) Investment.--Any amounts in the Guarantee Fund
determined by the Secretary to be in excess of amounts
currently required at the time of the determination to carry
out this section may be invested in obligations of the United
States.
``(5) Limitation on commitments to guarantee loans and
mortgages.--
``(A) Requirement of appropriations.--The authority of the
Secretary to enter into commitments to guarantee loans under
this section shall be effective for any fiscal year to the
extent, or in such amounts as are, or have been, provided in
appropriations Acts, without regard to the fiscal year for
which such amounts were appropriated.
``(B) Limitations on costs of guarantees.--The authority of
the Secretary to enter into commitments to guarantee loans
under this section shall be effective for any fiscal year
only to the extent that amounts in the Guarantee Fund are or
have been made available in appropriations Acts to cover the
costs (as that term is defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loan
guarantees for such fiscal year. Any amounts appropriated
pursuant to this subparagraph shall remain available until
expended.
``(C) Limitation on outstanding aggregate principal
amount.--Subject to the limitations in subparagraphs (A) and
(B), the Secretary may enter into commitments to guarantee
loans under this section for each of fiscal years 2001, 2002,
2003, 2004, and 2005 with an aggregate outstanding principal
amount not exceeding $100,000,000 for each such fiscal year.
``(6) Liabilities.--All liabilities and obligations of the
assets credited to the Guarantee Fund under paragraph (2)(A)
shall be liabilities and obligations of the Guarantee Fund.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to the Guarantee Fund to carry
out this section such sums as may be necessary for each of
fiscal years 2001, 2002, 2003, 2004, and 2005.
``(k) Requirements for Standard Housing.--
``(1) In general.--The Secretary shall, by regulation,
establish housing safety and quality standards to be applied
for use under this section.
``(2) Standards.--The standards referred to in paragraph
(1) shall--
``(A) provide sufficient flexibility to permit the use of
various designs and materials in housing acquired with loans
guaranteed under this section; and
``(B) require each dwelling unit in any housing acquired in
the manner described in subparagraph (A) to--
``(i) be decent, safe, sanitary, and modest in size and
design;
``(ii) conform with applicable general construction
standards for the region in which the housing is located;
``(iii) contain a plumbing system that--

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

``(iv) contain an electrical system using wiring and
equipment properly installed to safely supply electrical
energy for adequate lighting and for operation of appliances
that conforms to any appropriate county, State, or national
code;
``(v) be not less than the size provided under the
applicable locally adopted standards for size of dwelling
units, except that the Secretary, upon request of the
Department of Hawaiian Home Lands may waive the size
requirements under this paragraph; and
``(vi) conform with the energy performance requirements for
new construction established by the Secretary under section
526(a) of the National Housing Act (12 U.S.C.A. 1735f-4),
unless the Secretary determines that the requirements are not
applicable.
``(l) Applicability of Civil Rights Statutes.--To the
extent that the requirements

[[Page H1898]]

of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d
et seq.) or of the Fair Housing Act (42 U.S.C.A. 3601 et
seq.) apply to a guarantee provided under this subsection,
nothing in the requirements concerning discrimination on the
basis of race shall be construed to prevent the provision of
the guarantee to an eligible entity on the basis that the
entity serves Native Hawaiian families or is a Native
Hawaiian family.''.
Page 166, in line 10, strike the dash and all that follows
through ``general.'' in line 11.
Page 166, strike lines 17 through 25.
Strike line 25 on page 173, and all that follows through
line 2 on page 174, and insert the following:
``(1) to protect the quality, durability, safety, and
affordability of manufactured homes;''
Page 174, strike lines 11 through 13 and insert the
following:
``(5) to protect residents of manufactured homes with
respect to personal injuries and the amount of insurance
costs and property damages in manufactured housing,
consistent with the other purposes of this section;''.
Page 176, line 18, before the semicolon insert ``,
including the inspection of homes in the plant''.
Page 176, line 21, strike both commas.
Strike line 25 on page 176 and all that follows through
``means'' in line 1 on page 177, and insert the following:
``(21) `monitoring' means
Page 177, lines 5 through 7, strike ``recommended by the
consensus committee and promulgated in accordance with'' and
insert ``promulgated under this title, giving due
consideration to the recommendations of the consensus
committee as provided in''.
Page 177, line 10, strike ``; and'' and insert ``.'.''.
Page 177, strike lines 11 through 13.
Page 179, line 19, strike ``appoint'' and insert
``recommend''.
Page 182, lines 12 and 13, strike ``, subject to approval
by the Secretary,'' and insert ``by the Secretary, after
consideration of the recommendations made''.
Page 182, line 14, insert a comma after ``organization''.
Page 182, strike lines 22 through 25 and insert the
following:
``(C) Disapproval.--The Secretary shall state, in writing,
the reasons for failing to appoint any individual recommended
under paragraph (2)(A)(ii)(I).
Page 184, lines 1 and 2, strike ``administering
organization in its appointments'' and insert ``Secretary''.
Page 188, line 20, before the period insert ``in accordance
with section 553 of title 5, United States Code''.
Page 188, line 23, after ``standard'' insert ``in
accordance with such section 553''.
Page 189, line 22, strike ``7'' and insert ``30''.
Page 193, line 5, after ``regulations'' insert ``and
revision to existing regulations''.
Page 195, strike lines 16 through 22 and insert the
following:
``(5) Authority to act and emergency.--If the Secretary
determines, in writing, that such action is necessary to
address an issue on which the Secretary determines that the
consensus committee has not made a timely recommendation
following a request by the Secretary, or in order to respond
to an emergency which jeopardizes the public health or
safety, the Secretary
Page 196, line 3, strike ``emergency''.
Page 196, line 5, after ``issues'' insert ``the order after
notice and an opportunity for public comment in accordance
with section 553 of title 5, United States Code,''.
Page 196, line 12, strike ``of'' and insert ``or''.
Page 196, line 19, strike ``1104(a)(3)'' and insert
``604(a)(3)''.
Page 199, line 18, after ``shall'' insert ``to the maximum
extent possible, taking into account the factors described in
section 604(e),''.
Page 200, after line 9, insert the following:
``(4) Issuance.--The model manufactured home installation
standards shall be issued after notice and an opportunity for
public comment in accordance with section 553 of title 5,
United States Code.
Strike ``, except that'' in line 20 on page 201, and all
that follows through line 2 on page 202, and insert a period.
Page 206, after line 3, insert the following new section:

SEC. 1108. PROHIBITED ACTS.

Section 610(a) (42 U.S.C. 5409(a)) is amended--
(1) in paragraph (5), by striking ``or'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(7) after the expiration of the period specified in
section 605(c)(2)(B), fail to comply with the requirements
for the installation program required by section 605 in any
State that has not adopted and implemented a State
installation program.''.
Page 207, line 10, strike ``and''.
Page 207, after line 13, insert the following:
``(F) implementing sections 605 and 623; and
Page 207, strike lines 19 through 23 and insert the
following:
``(b) Contractors.--When using fees under this section, the
Secretary shall ensure that no fewer than 3 separate
contracts and 3 separate and independent contractors are
retained to carry out monitoring and inspection work and any
other work that may be delegated to a contractor under this
title; except that the required minimum number of separate
contracts and separate and independent contractors shall
increase to 4 simultaneous with the latter of--
``(1) the issuance by the Secretary of a request for
proposals for the implementation of installation programs,
and
``(2) the issuance by the Secretary of a request for
proposals for the implementation of dispute resolution
program,
as provided in this title. The Secretary shall also ensure
that no conflict of interest arises from the award of any
such contracts.''.
Page 208, line 17, strike the quotation marks and the last
period.
Page 208, after line 17, insert the following:
``(3) Payments to states.--On and after the effective date
of the Manufactured Housing Improvement Act, the Secretary
shall continue to fund the States having approved State plans
in amounts which are not less than the allocated amounts
based on the fee distribution system in effect on the day
before the effective date of such Act.''.
Page 208, lines 20 and 21, strike ``5(b)'' each place such
term appears and insert ``1105(b)''.
Page 209, line 19, after the period insert the following:
``The order establishing the dispute resolution program shall
be issued after notice and an opportunity for public comment
in accordance with section 553 of title 5, United States
Code.''.
Page 210, strike lines 7 through 11 and insert
``paragraph.''.
Page 211, line 16, after ``awarded'' insert ``after April
6, 2000,''.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
New York (Mr. Lazio) and a Member opposed each will control 10 minutes.
The Chair recognizes the gentleman from New York (Mr. Lazio).
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this manager's amendment is the result of some hard
work that has been referenced by earlier remarks. The manager's
amendment was created in a bipartisan fashion, helping to improve an
already good bill, and refining some of the technical aspects of this
bill.
It further speaks to the underlying premise of this bill, which is
that it is about empowerment, it is about more consumer choice, it is
about lower homeownership costs, it is about stronger communities, and
it is about opportunity. This manager's amendment includes several
provisions that further perfect this bill.
I want to commend all the Members, and particularly the gentleman
from New York (Mr. LaFalce) and the gentleman from Massachusetts (Mr.
Frank), as well as the gentleman from Iowa (Mr. Leach) for their help.
It includes technical changes that affect the neighborhood teacher
program, the risk sharing demonstration program, and the rural housing
section of the legislation.
The amendment expands housing assistance for native Hawaiians by
extending to them the same types of Federal housing programs available
to Native Americans and to Alaska natives.
The amendment adopts changes to the manufactured housing title made
by HUD to clarify the Secretary's authority over appointments to the
consensus committee. This is, again, a model framework based on
discussions between AARP, the Manufactured Housing industry, consumers,
HUD, and members of the committee.
It addresses outstanding policy issues raised by the gentleman from
Massachusetts (Mr. Frank), ranking member, and the Manufactured Housing
industry concerning States' roles in monitoring manufactured homes and
the distribution systems of manufactured program fees to States.
It also adopts certain filed amendments to the legislation, which we
have been trying to work together with in a bipartisan fashion to meet
America's need for more homeownership opportunities.
These include amendments by the gentleman from Texas (Mr. Bentsen) as
they relate to the selection criteria for the Homeownership Zone Grant
program, providing that HUD may not reject an applicant who meets the
selection criteria basically only because the zone is located in an
unincorporated area.
The amendment of the gentleman from Ohio (Mr. Traficant) extends
homeownership counseling statutes through September 30, 2005 that
require a notice, within 45 days of delinquency, to homebuyers on their
payment status and provides information about housing counselors in the
area, a very important amendment.
The amendment of the gentleman from California (Mr. Baca) includes a

[[Page H1899]]

sense of Congress that the HUD Secretary should consult with other
agencies to make additional properties available for law enforcement
officers, teachers, and fire fighters.
The amendment of the gentlewoman from California (Ms. Pelosi) adds
pre-kindergarten teachers to be eligible for section 203 for reduced
down payment for loans for teachers and uniformed municipal employees,
consistent with similar other provisions in the bill.
I urge the House to adopt the manager's amendment.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. Is the gentleman from New York (Mr. LaFalce) opposed to
the amendment?
Mr. LaFALCE. Mr. Chairman, this manager's amendment has been
developed in a bipartisan fashion similarly to the main bill itself.
The CHAIRMAN. Without objection, there apparently being no one to
claim the time in opposition, the gentleman from New York (Mr. LaFalce)
is recognized to claim that time.
There was no objection.
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
I am very pleased that the manager's amendment includes a number of
important provisions, important especially to the Members on my side of
the aisle. These include a Pelosi amendment to ensure that pre-
kindergarten teachers are eligible in the same way as all other
teachers are for the section 203, 1 percent down payment FHA loans; an
amendment by the gentleman from Texas (Mr. Bentsen) to make sure that
unincorporated areas are eligible for homeownership zone grants; an
amendment by the gentleman from Ohio (Mr. Traficant) to extend
homeownership counseling programs; and an amendment from the gentleman
from California (Mr. Baca) directing HUD to work with other agencies to
identify other buildings suitable for homeownership resale.

{time} 1145

I also especially commend the gentleman from Hawaii (Mr. Abercrombie)
and the gentlewoman from Hawaii (Mrs. Mink) for their amendment, which
includes making native Hawaiians eligible for the same Federal housing
programs that Native Americans are currently eligible for; and, of
course, the gentleman from Massachusetts (Mr. Frank) and the gentleman
from Indiana (Mr. Roemer), who represents perhaps the headquarters of
the manufactured housing industry, for shepherding this bill through.
Even though the gentleman from Indiana (Mr. Roemer) is not a member of
the committee, his assistance in crafting the legislation was
invaluable.
Mr. Chairman, I reserve the balance of my time.
Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the gentleman from
Wisconsin (Mr. Green).
Mr. GREEN of Wisconsin. Mr. Chairman, I thank the gentleman for
yielding me this time, and I also would urge strong support for the
manager's amendment. As good as the underlying bill is, and I think the
bill is solid, I think the manager's amendment is better and makes some
important improvements.
Very quickly, two particular programs that are included in the
manager's amendment that this Member had something to do with. Number
one, this manager's amendment would create a 3-year pilot project to
help people with disabilities to use section 8 assistance towards home
ownership. It creates incentives for employment and home ownership for
the most underserved portion of the American public, those with
disabilities.
Unemployment rates for those with disabilities in America exceeds 70
percent, and home ownership for people with disabilities is below 5
percent. This bill takes an important step in breaking that cycle.
This manager's amendment also has an important pilot project, a 3-
year program, for law enforcement officers. It helps Federal, State and
local law enforcement officers purchase homes in locally designated,
locally defined high crime areas.
This is different than other law enforcement officer programs because
it turns to local leaders, local officials to designate those areas.
This will help deter crime. This will help stabilize neighborhoods.
In so many ways this manager's amendment makes the dream of home
ownership and stable, sound, solid communities a reality. And again, I
encourage my colleagues not only to support this amendment and support
the bill but to go home and talk about it.
Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentlewoman from
California (Ms. Lee), a member of the committee.
Ms. LEE. Mr. Chairman, I thank the gentleman for yielding me this
time and also for the bipartisan effort to bring this bill forward
today.
This is a modest measure. It is an excellent modest measure that
begins to address a national crisis of housing.
Moderate- and low-income families deserve the opportunity to realize
the American Dream of homeownership. And given the high cost of
housing, this dream is quickly becoming a nightmare in many regions of
our country. This crisis is so bad that in my district, around the Bay
Area of Northern California, professional households with incomes near
$100,000 even face difficult housing choices.
If these kinds of families are struggling, what does this mean for
moderate- and low-income families? It means that Congress must do
better.
Mr. Chairman, Americans dream of owning our own homes. It rightfully
gives us a stake in our society. Homeownership allows us to have a
solid place from which we can accumulate some wealth to care for our
families, to send our kids to college and to invest in small
businesses.
We still have a long way to go in this country. Even though there has
been an increase in homeownership, there is really an embarrassing gap
in this land of plenty when we realize that the homeownership rate for
African Americans is still 20 percent below the national average. The
rate for Hispanic Americans is over 20 percent below the national
average.
So this bill will really help us begin to correct the damage
resulting from our refusal to, I believe, invest in housing in past
years. Secretary Cuomo is doing the best that he can. But given the
severe constraints of the Balanced Budget Act, it is difficult to
imagine how HUD can just maintain, not to mention expand programs where
there are tight budget caps.
I urge support of the American Homeownership and Economic Opportunity
Act.
Mr. LAZIO. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman from
Delaware (Mr. Castle), the former governor of Delaware and my mentor
and friend.
Mr. CASTLE. Mr. Chairman, I thank the gentleman very much for
yielding me this time, and I thank him for his comments. I never knew I
was a mentor until just now, but that is a nice thought too.
This legislation, which both gentlemen from New York have worked on,
in my judgment, is as good a piece of legislation as we have had on the
floor this year for a variety of reasons.
One is it is bipartisan. It is a piece of legislation which I think
all of us are proud to be able to support and, hopefully, will get a
great vote.
Secondly, I think we all recognize that homeownership is the key
element to stability in most families, and beyond families, a lot of
individuals and a lot of others who want to live the American Dream.
In this day of plenty it is pretty simple to think well, gee,
homeownership is up, I think it is up to 67 percent now, and we do not
have to worry about legislation such as this. But when we get behind
the scenes and start to look at it, we start to see other problems.
For example in U.S. News and World Report there is an article here,
In an Age of Plenty a Search for Shelter, and this talks about
Minneapolis, as I recall, and they have all kinds of problems with
people in lower income circumstances being able to obtain housing. And
that is what this bill addresses, and that is what the manager's
amendment addresses as well.
So I really congratulate those who have worked on this because they
have really looked carefully at provisions which are essential to help
with these problems. And indeed, when we look at those who are on more
fixed-income circumstances, teachers, firefighters, or police officers,
these are desirable neighbors in any kind of neighborhood. They are the
kind of neighbors we want, but sometimes they do not have the means to
acquire a home, and under this bill they would be able to do it.

[[Page H1900]]

We have gone into various pockets of money which is available at the
Federal Government level and said we are going to allow that to help
with the acquisition of homes, which is something we should do. We have
looked at State and local governments, as well as the Federal
Government, and said there are barriers and regulations and we need to
deal with those.
So many good things have happened. We should support the manager's
amendment, we should support the underlying legislation, but we should
also continue, I think, the drive that we all have here now, that we
feel here today, which is moving ahead with all aspects of looking at
our public housing laws and other housing opportunities at the Federal
Government level and giving people the opportunity for homeownership.
With that, we will introduce all kinds of social improvement in this
country. It is for that reason that I am highly supportive of the
legislation, and I would encourage everybody to support the manager's
amendment and the legislation and, hopefully, we can send it to the
Senate and have it signed by the President.
Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentlewoman from
Illinois (Ms. Schakowsky), a member of the committee.
Ms. SCHAKOWSKY. Mr. Chairman, I rise in support of H.R. 1776. I am
very proud to be a cosponsor of this bipartisan bill, which authorizes
nearly $7 billion for affordable homeownership and job creation.
We ought to do this. We are in the midst of the longest economic
expansion in the history of the United States. Despite this wealth, we
are leaving too many families behind. Just recently, HUD reported that
5.4 million households do not have decent and affordable housing, and
this bill gives us some power to deal with these problems.
The reauthorized Community Development Block Grant will provide State
and local governments, like Chicago, funding for economic development
so we can encourage employers to create jobs in our district. The HOME
program will provide the city, as well as Chicago-based community
organizations, such as National People's Action and ACORN, with
necessary funds to increase homeownership. With this money they can
rehabilitate dilapidated homes and provide mortgage counseling.
In short, this bill empowers our neighbors and mayors with the means
to stabilize and improve our communities.
I am grateful that the full Committee on Banking and Financial
Services approved my amendment to assist families that desperately cry
out for housing and to help assist persons with disabilities who are
facing foreclosure. I urge support for this legislation.
Mr. LAZIO. Mr. Chairman, I reserve the balance of my time.
Mr. LaFALCE. Mr. Chairman, I yield 1\1/4\ minutes to the gentleman
from Indiana (Mr. Roemer), who has been so concerned about manufactured
housing.
(Mr. ROEMER asked and was given permission to revise and extend his
remarks.)
Mr. ROEMER. Mr. Chairman, I thank the gentleman for yielding me this
time, and I will be including for the Record a letter from the
governors regarding this legislation.
Mr. Chairman, first of all, I want to thank a lot of people who have
been working on this issue and who have showed a great deal of insight
and expertise. Certainly to the chairman, the gentleman from New York
(Mr. Lazio), who has shown great leadership on this bill. I also want
to extend my personal thanks to the gentleman from New York (Mr.
LaFalce) and the gentleman from Massachusetts (Mr. Frank), who have
shown real sensitivity in trying to increase the amount of people in
America who will own homes and, under title VII, the manufactured
housing title of this bill, we look at ways to update a 25-year-old
code that is not serving consumers, it is not serving regulators, it is
not serving homeownership, and we are updating that, and I want to
thank the gentleman from New York (Mr. LaFalce) for that.
We have heard we are a Nation of achievers and we are certainly a
Nation of dreamers, and nothing symbolizes the achievement of the
American Dream more than homeownership. And when we can work together
in a bipartisan way, with Secretary Cuomo, who has intervened a couple
of times to keep this discussion of updating title VII going, when we
have Republicans and Democrats working together, when the Senate has
passed a similar bill on their side, we are working toward legislation
that really will enhance consumer protection, will enhance making a
better product, and will enhance everybody's opportunity to have
homeownership.
I really do want to also thank the gentleman from New York (Mr.
Lazio) for his help on this bill, and the document I referred to
earlier, Mr. Chairman, I submit for the Record.

Office of the Governor,

Indianapolis, IN, April 4, 2000.
Hon. Jim Leach,
Chairman, Committee on Banking and Financial Services, House
of Representatives, Washington, DC.

Hon. John J. LaFalce,
Ranking Member, Committee on Banking and Financial Services,
House of Representatives, Washington, DC.
Dear Chairman Leach and Congressman LaFalce: I am writing
to express my strong support for enacting legislation to
streamline and improve the current Manufactured Housing
Program overseen by the Department of Housing and Urban
Development (HUD).
Almost one of every four new homes in America is a
manufactured house. In my state of Indiana, the manufactured
housing industry employs 20,000 Hoosiers and has a total
economic impact of nearly $3 billion per year.
The Manufactured Housing Program administered by HUD is
clearly not working as it should. Over the last several
years, staffing for this program has been greatly reduced. I
also understand that over 150 proposed changes to
construction and safety standards and regulations are
currently pending, with some languishing for as many as five
years. Meanwhile, the manufactured housing industry has grown
100 percent over the past decade. Both the general public and
the manufactured housing industry need assurances that proper
standards are in place and effectively enforced.
The two pending versions of legislation before Congress,
H.R. 1776 and S. 1452, include many similar provisions that
should produce a more efficient and workable system for
implementing construction and safety standards. I am hopeful
that the House and Senate will act on these bills quickly and
resolve any differences in a timely manner.
As you proceed with consideration of this important
legislation, I urge you to ensure a balanced approach to
federal-state regulations by making the ``quality,
durability, safety, and affordability of manufactured
housing'' a key purpose of the Manufactured Housing Program.
I also support both the proposed ``consensus committee''
process, which ensures representation for consumers, the
manufactured housing industry, and public officials, and the
vesting of authority in the Secretary of Housing and Urban
Development (HUD) to approve or reject committee
recommendations. I also believe it makes sense to introduce
more competition into the awarding of monitoring contracts.
The House and Senate legislation maintain authority for
states to carry out enforcement activities as they may
already do under current law. I urge that the final version
of the bill include provisions that will ensure continued
support for state enforcement efforts. Labeling fees
collected to help support state enforcement programs should
not be diverted for other purposes. If state enforcement is
not sufficiently funded, the integrity of the federal-state
partnership will be put at risk.
In sum, I support efforts by Congress to reform the current
federal Manufactured Housing Program to ensure that reliable
and enforceable construction and safety standards are
maintained and urge expeditious action on the pending
legislation.
Sincerely,
Frank O'Bannon.

Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the gentleman from
Oklahoma (Mr. Coburn).
Mr. COBURN. Mr. Chairman, I thank the gentlemen from New York for
yielding me this time, and for three or four specific provisions in
this bill that I think are great.
I think the removal of the barriers for housing affordability has
been great. The regulatory impact analysis, the grants for removing
regulatory barriers, these are things I see in my own community that
limit people's ability to achieve housing.
I think also the title III section 8 homeownership option is a great
step forward to allow people to get into a home that otherwise was not
there. The pilot program with that is great as well.
The transfer of unoccupied and substandard HUD housing is something
that has been long awaited because it needs to have that option if we
are in fact going to clean up some of the

[[Page H1901]]

neighborhoods that we have and clean up some of the homes.
The last thing I am appreciative of is the rural housing
opportunities that were made, and that is very important to my
district. I do have some concerns about it, and I would just take a
moment to say that the gentlewoman from California (Ms. Waters) has an
amendment, and if we combine her amendment with my second amendment,
what we do is to enlarge this pie to all Americans to in fact go into
these neighborhoods and create greater demand and greater assistance to
raise the level of the neighborhoods.
I am hopeful as we debate that that we can talk about fairness and
equal opportunity to all, not just municipal employees and not just
firefighters and not just policemen but the other significant members
of the community, including pastors. Because a spiritual component in
any community is just as important as any other aspect in terms of
crime, in terms of drug addiction, and in terms of some of the other
problems we face.
Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentleman from
Georgia (Mr. Bishop).
Mr. BISHOP. Mr. Chairman, I rise today in strong support of H.R.
1776, the American Homeownership and Economic Opportunity Act.
Today, we are making a monumental step toward supporting those who
serve our communities in various capacities for whom we are eternally
grateful. These include our firefighters, police, teachers, rescue
personnel, and municipal workers.
I have always been a supporter of the Community Development Block
Grant program and the Housing Opportunities program. Today, with the
passage of this bill, I become even a stronger supporter.
These are some of the worthwhile things that the CDBG programs
already does: Funding Meals on Wheels, senior citizen centers,
community centers where low-income children are able to have a safe and
stimulating environment in which to play.
Now, CDBG and HOME funds will help make homeownership possible for
those who are not fortunate enough to have stock options or 401(k)
programs and all the other perks of the private sector. Let us tell our
teachers, police officers, firefighters, rescue personnel, and
municipal workers that we are grateful for what they do, and this is
our tangible way of showing it.
This is a great bill, and I urge my colleagues to support it.

{time} 1200

Mr. LAZIO. Mr. Chairman, I reserve the balance of my time.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentlewoman from Hawaii (Mrs. Mink), who, along with her Hawaii
colleague, did a great deal to make sure the rights of native Hawaiians
were protected in this section, and it is in the manager's amendment.
(Mrs. MINK of Hawaii asked and was given permission to revise and
extend her remarks.)
Mrs. MINK of Hawaii. Mr. Chairman, I appreciate the opportunity to
just have a minute to express my appreciation to the gentleman from New
York (Mr. Lazio), the gentleman from Nebreska (Mr. Bereuter), the
gentleman from Massachusetts (Mr. Frank), and the gentleman from New
York (Mr. LaFalce) for all of their support in making sure that the
program for extension of housing assistance to native Hawaiians was
included in H.R. 1776.
Mr. Chairman, I rise in strong support of the bill and, most
particularly, because of the manager's amendment. The problem has
always been that there has been a housing program for native Indians,
native Americans, which native Hawaiians felt they should have been
included, and the Alaskan natives, but the native Hawaiians were not
included.
For the first time, because of the manager's amendment and its
inclusion in H.R. 1776, Native Hawaiian families will have the
opportunity for Federal assistance in loan guarantees and other forms
of grants. We have a very unique situation in Hawaii.
Mr. Chairman, I rise in support of H.R. 1776 and the manager's
amendment. The amendment has a provision in it that is very important
to my constituents. The amendment expands housing assistance for native
Hawaiians by extending to them the same types of federal housing
programs available to American Indians and Alaska natives. The
provision authorizes appropriations for block grants for affordable
housing activities and for loan guarantees for mortgages for owner- and
renter-occupied housing. It authorizes technical assistance in cases
where administrative capacity is lacking. The block grants would be
provided by the Department of Housing and Urban Development to the
Department of Hawaiian Home Lands of the government of the State of
Hawaii.
I thank the gentleman from New York [Mr. Lazio], the gentleman from
Nebraska [Mr. Bereuter] and the gentleman from Massachusetts [Mr.
Frank] and Mr. LaFalce of New York for their assistance in
incorporating the provisions for Native Hawaiian housing in the bill.
Passage of this bill is critical for the Native Hawaiian communities.
Within the last several years, three studies have documented the
housing needs that confront Native Hawaiians who are eligible to reside
on the Home Lands.
In 1992, the National Commission on American Indian, Alaska Native,
and Native Hawaiian Housing issued its final report to Congress,
``Building the Future: A Blueprint for Change.'' In its study, the
Commission found that Native Hawaiians had the worst housing conditions
in the State of Hawaii and the highest percentage of homelessness,
representing over 30% of the State's homeless population.
In 1995, the U.S. Department of Housing and Urban Development issued
a report entitled, ``Housing Problems and Needs of Native Hawaiians.''
This report contained the alarming conclusion that Native Hawaiians
experience the highest percentage of housing problems in the nation--
49%--higher than that of American Indians and Alaska Natives residing
on reservations (44%) and substantially higher than that of all U.S.
households (27%). The report also concluded that the percentage of
overcrowding within the Native Hawaiian population is 36% compared to
3% for all other U.S. households.
Also, in 1995, the Hawaii State Department of Hawaiian Home Lands
published a Beneficiary Needs Study as a result of research conducted
by an independent research group. This study found that among the
Native Hawaiian population, the needs of Native Hawaiians eligible to
reside on the Hawaiian home lands are the most severe. 95% of home
lands applicants (16,000) were in need of housing, with one-half of
those applicant households facing overcrowding and one-third paying
more than 30% of their income for shelter.
H.R. 1776 will provide eligible low-income Native Hawaiians access to
Federal housing programs that provide assistance to low-income
families. Currently, those Native Hawaiians who are eligible to reside
on Hawaiian home lands but who do not qualify for private mortgage
loans, are unable to access Federal assistance.
The provisions for Native Hawaiian housing assistance are identical
to those contained in S. 225, which passed the other body on November
5, 1999. S. 225 was introduced by the two Senators from Hawaii. That
legislation in turn is identical to S. 109 which passed the other body
in the 105th Congress. It is gratifying that the House will now pass
the same language. I look forward to the enactment of this legislation
that is so important to the native people of Hawaii.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentleman from California (Mr. Becerra).
Mr. BECERRA. Mr. Chairman, I thank the gentleman for yielding me the
minute.
Mr. Chairman, I rise in support of H.R. 1776, and I applaud the
gentleman from New York (Chairman Lazio) and the ranking member, the
gentleman from New York (Mr. LaFalce), and all the members of the
committee for the work they have done to increase homeownership for
American working families.
I am especially heartened to see that the manager's amendment expands
the eligibility for the Teacher Next Door program to include law
enforcement officers and fire fighters and other safety personnel; that
program which has been renamed the Community Partners Next Door
program, which offers HUD-foreclosed homes to these individuals at a 50
percent discount, will go a long way not only in increasing
homeownership, but also in helping these communities have professionals
and role models available and living in their communities.
I would like to work with the gentleman from New York (Chairman
Lazio) and the gentleman from New York (Mr. LaFalce) and the members of
the committee in trying to, perhaps, expand the program a bit more to
increase the pool of homes that would be made available. Only 4,000 of
the 45,000

[[Page H1902]]

HUD-foreclosed homes would be available at this point under the
program.
I think there is work that we can do to try to expand the pool of
homes beyond the 4,000 so that more than of the 4 million or so people
who qualify could be available. I look forward to working with the
committee. And I request a yes vote.
Mr. FRANK of Massachusetts. Mr. Chairman, how much time is remaining
on both sides?
The CHAIRMAN. The gentleman from Massachusetts (Mr. Frank) has 2\1/4\
minutes remaining. The gentleman from New York (Mr. Lazio) has 30
seconds remaining.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentleman from Rhode Island (Mr. Weygand).
Mr. WEYGAND. Mr. Chairman, I want to thank all Members, particularly,
the gentleman from New York (Mr. LaFalce), our ranking member, and the
gentleman from Massachusetts (Mr. Frank), and also the gentleman from
New York (Mr. Lazio), our chairman, for the work they have done on H.R.
1776.
I rise today in support of the bill and the manager's amendment, but
I also want to talk about one particular aspect that was really not
fully addressed in committee that I hope will be addressed during the
committees later on during this process.
Mr. Chairman, there is a composition of a consensus committee that is
set up within this bill which is dealing with manufactured housing. The
concept of this consensus committee is to put together consumers,
industry experts, and government officials who advise HUD on safety
standards and regulations. Unfortunately, there was one group of
individuals that was left out of this consensus committee that I hope
will be considered later on. They are the design professionals, the
builders and the building inspectors, who are so vital in making sure
there are safeguards and industry standards complied with during
manufactured housing.
We hope that as the bill moves through the process, they will be
considered and added to the bill. I thank the chairman for his
consideration.
Mr. FRANK of Massachusetts. Mr. Chairman, I yield the remaining time
to the gentlewoman from North Carolina (Mrs. Clayton).
Mrs. CLAYTON. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I rise in support of this timely and urgently needed
legislation. This bill promotes homeownership, the ultimate American
dream, and deserves our support.
Our economy is experiencing a historic boom; but for many, the rising
tide of prosperity has failed to lift their boats.
This bill can help to close a growing income and wealth gap that is
creating two Americas. Homeownership is the single most important asset
for wealth accommodation. Yet, in the past decade, the percentage of
homeownership relating to wealth accumulation has declined almost by 10
percent.
Recently, there have been record lows that the mortgage interest
rates have been going down; but actually, homeownership between lower-
income persons has been going down as well. It is not true that
affordability is there for low and moderate income. This bill makes it
possible.
Mr. Chairman, I am extremely pleased that the manager's provision has
a provision in there providing homeownership opportunity for those who
live in public housing, using section 8 as a part of the down payment
and mortgage assistance. This is a provision that the Congressional
Black Caucus has strongly supported, and I want to urge and thank you
for all of your consideration in this bill. I urge a yes vote.
Mr. Chairman, I rise in support of this timely and urgently needed
legislation. This bill promotes homeownership--the ultimate American
Dream--and deserves our support.
Our economy is experiencing an historic boom. But, for many, this
rising tide of prosperity has failed to lift their boats. This bill can
help to close the growing income and wealth gap that is creating Two
Americas.
Homeownership is the single most important asset for wealth. Yet, in
the past decade, the percentage of owner-occupied housing as it relates
to all assets has declined by close to ten percent.
Recently, there have been record lows in mortgage interest rates,
leaving many to believe that housing in the United States is more
affordable than ever. That is not true.
Despite lower mortgage rates, fewer people are able to afford to
purchase homes. That is principally because income growth for the poor
and working poor has been weak. This group of Americans are ``cost-
burdened'' under H.U.D. standards. That is, they spend more than thirty
percent of their income for housing. The poor and working poor thus
find themselves on a treadmill to nowhere when it comes to breaking
into home ownership.
This bill can help reverse that trend.
There are many good provisions in the bill--such as raising the loan
amount for Rural Housing; facilitating ownership opportunities for our
police, firefighters, teachers and other municipal employees; and
assisting our seniors and the disabled in becoming owners.
However, I would like to focus my remarks on one of its most
outstanding features. The bill improves the manner in which we spend
money for housing programs.
Under the Section 8 Program, we have had generations of families,
dislocated from society, isolated in public housing and, very often,
dependent upon the government to provide them with a relatively decent
place to live. This bill allows Public Housing Authorities to use
Section 8 funds to provide a suitable amount of cash assistance that
can be used to help finance homes. By doing this, these families can
begin the process of reducing their reliance on government and take the
first step toward accumulating equity and wealth.
Home ownership builds healthy communities. Home ownership instills
strength and pride in families. Home ownership provides dignity. When
one owns a home, they are more likely to take care of it, maintain it
and keep it clean and presentable.
This is a good bill, Mr. Chairman, with bi-partisan support. I urge
its passage.
Mr. LAZIO. Mr. Chairman, I yield 30 seconds to the distinguished
gentleman from Missouri (Mr. Blunt), the chief deputy whip.
Mr. BLUNT. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I wish I had more time to talk about this great bill
and the manager's amendment that perfects it in an even better way.
This is about homeownership. It is about choice. I served for a number
of years on the Missouri Housing Development Commission. There is no
higher point in a family's life than that moment when they own their
home.
We are building in the 7th Congressional District in Missouri this
year a Habitat for Humanity, a house that Congress built. There is no
better day for a family when they get to see their own efforts make
another step towards homeownership. This gives flexibility. It does the
thing that we need to do to allow families to have the dream that they
want to have.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from New York (Mr. Lazio).
The amendment was agreed to.
The CHAIRMAN. It is now in order to consider Amendment No. 2 printed
in House Report 106-562.

Amendment No. 2 Offered by Mr. Coburn

Mr. COBURN. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 2 offered by Mr. Coburn:
Strike line 6 on page 27 and all that follows through line
13 on page 31.
Strike line 3 on page 73 and all that follows through line
16 on page 76.
Strike line 13 on page 91 and all that follows through line
21 on page 93.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
Oklahoma (Mr. Coburn) and the gentleman from New York (Mr. LaFalce)
each will control 10 minutes.
The Chair recognizes the gentleman from Oklahoma (Mr. Coburn).
Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I have listened this morning as speaker after speaker
has come to this floor to discuss how important this bill is, to
provide the necessary assistance to allow city employees to live where
they work, and I would agree with that. I think that is an important
consideration.
I have a question for my colleagues. Is it not also equally important
that factory workers, union members, small businesses owners, Federal
employees, the clergy, and nonprofit employees live where they work?
The same help provided under this bill to municipal

[[Page H1903]]

employees is not provided to any of these individuals that I listed.
If we are facing the housing crisis that we described, which I
believe that we may be, then why help just some individuals? Why not
help them all? Why are some Americans more worthy of receiving Federal
housing assistance than others? This amendment is about fairness.
I want to walk through with my colleagues for a minute who benefits
under this law and who does not. Who qualifies for government-funded
down payment assistance? Closing costs, support mortgage? Anyone,
provided they make less than 80 percent, that is what the answer is.
Local government employees making up to 115 percent of area median
income or 150 percent in areas with high housing costs, what is the
lowest down payment an individual can make to qualify for an FHA loan
under the current law? Under H.R. 1776, 3 percent of the total purchase
price, that is the current law, or 1 percent for teachers, fire
fighters, rescue personnel, or law enforcement officers, under the new
bill.
At what price can you buy a HUD home? 100 percent of appraised value.
Under this new bill, 50 percent if you are a teacher, a fire fighter,
rescue personnel, or a law enforcement officer; but that is not applied
to you if you are the union worker building the home in that area or if
you are the preacher that has a community church in that area. That is
not forwarded to you.
I believe that this is a question about fairness. This amendment is
designed to strike all but the 50 percent discounts that are directed
in this bill.
Mr. Chairman, I reserve the balance of my time.
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in opposition to the Coburn amendment.
First, I would seek clarification. Is this Coburn Amendment No. 21
that strikes section 203 from the bill? It is.
This is not the amendment which would expand and extend it? Very
good.
The Coburn amendment before us, and the gentleman has two, but this
one would strike the provision which authorizes FHA 1 percent down
payment loans and deferred and ultimately forgivable upfront premiums
for teachers, policeman, and firemen buying a home in the school
district or jurisdiction that employs them.
Section 203 incorporates the provisions of H.R. 3884, the bill that I
had introduced, which is entitled the Homeownership Opportunities for
Uniform Services and Educators Act, also known as the HOUSE Act. This
bill, the provision that the Coburn amendment would strike, is
supported by the Fraternal Order of Police, the National Education
Association, the American Federation of Teachers, and the American
Association of School Administrators.
Let us listen to what the Congressional Budget Office, or CBO, has to
say about Section 203, which the Coburn amendment would strike. The CBO
has concluded that section 203 will result in 125,000 additional FHA
mortgages for teachers, policemen, and firemen over the next 5 years.
CBO also concludes that the provision will raise $162 million over
the next 5 years. If Members vote for the Coburn amendment, they would
vote to deny homeownership opportunities for 125,000 teachers,
policemen, and firemen; and you would vote to reduce the Federal budget
surplus by $162 million.
Is there any basis for supporting this amendment because of concerns
about FHA? Absolutely not. A recently completed independent audit of
FHA found that FHA makes billions of dollars a year in profits for the
Federal Government and that the net worth of the FHA increased by $5
billion in the last 12 months, to a record net worth of $16 billion,
many times the congressionally required capital standard for FHA.
Is there an argument that affordable low down payment loans for low-
and moderate-income public servants do not serve a worthwhile purpose?
No. I believe that the great majority of Members in this House believe
that the teachers who educate our children, the policemen who keep us
safe, the firemen who protect our homes from property damage, injury
and death, play a critical role in our local communities. And
especially high-cost areas, school districts, police departments, and
fire departments are finding it increasingly difficult to recruit and
retain qualified individuals; or when they can, these individuals may
not be able to live in the local community because of the barrier of
rising home prices and high down payment requirements.
Section 203 provides new opportunities to overcome this down payment
hurdle, opportunities that the CBO says will not hurt, but will, in
fact, help the taxpayer.
Mr. Chairman, I would strongly urge Members to vote no on the Coburn
amendment and preserve these critical provisions in the bill and
increase the surplus to the Federal Government.
Mr. COBURN. Mr. Chairman, I yield 2 minutes to the gentleman from
South Carolina (Mr. Sanford).
Mr. SANFORD. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I would say this is a well-intentioned bill; but
without the Coburn amendment which corrects a number of fatal flaws, I
think it is, in fact, fatally flawed. And I would say that for a couple
of different reasons. I would say, first of all, if we look at the way
the Coburn amendment corrects the bill, it helps us to focus, because
as it is now configured with 150 percent of median income the
threshold, what that means is we have a worker in Fairfax County,
Virginia, making $50,000 or $60,000 subsidized in the purchase of their
home by somebody making $12,000 or $18,000 in Yamasee, South Carolina,
which is in the neck of the woods where I grew up, where frankly there
is not a whole lot of money to go around. So it loses focus on helping
those in need.
Two, I think it encourages risk. It is very easy to spend somebody
else's money; but by moving from 3 percent down to 1 percent, in terms
of the amount of your own money you have to have in the deal, you
frankly encourage people to, in essence, go out and take options on
homes. These are not purchases but options. And I would say of most
concern for me is that this bill supposedly is about recruiting and
retaining EMS workers, firefighters, teachers, et cetera; but, in fact,
it will have the reverse effect.

{time} 1215

It is going to encourage job rotation. I can envision the day, if
this bill goes through without this correcting amendment, when we will
be watching a ``60 Minutes'' special about the policeman or the
firefighter who switched jobs every 2 months, bought himself a
different FHA house and because he could buy it for 50 percent of
appraised value, he was buying $100,000 houses for $50,000 and he was
making $300,000 flipping houses by moving jobs rather than making the
pay that he was supposed to be earning as a firefighter or an EMS
worker. It is going to have the reverse effect in terms of job rotation
and retaining of workforce.
Mr. LaFALCE. Mr. Chairman, I yield such time as he may consume to the
gentleman from New York (Mr. Lazio).
Mr. LAZIO. Mr. Chairman, let me just say I have had many discussions
with the gentleman from Oklahoma for whom I have respect. I know he
brings this amendment in all good faith in an attempt to strengthen the
bill. As he has already outlined, it has a number of very positive
aspects to it. I am going to regretfully oppose this amendment because
I think it dilutes one of the very important tools that we are
providing to local communities, to provide them with the flexibility of
meeting the needs of both attracting and retaining people who are
providing critical services.
The idea of making sure that we can offer incentives to teachers who
would otherwise not be able to own their own home to stay in the
community is a very positive thing to serve as a role model or a
mentor. The idea that we would provide an incentive for a police
officer who is patrolling the local area to actually live in the local
area and raise their family when they have a stake in it is a very
positive aspect of this bill.
What we are saying here is we are not forcing anybody to do it, we
are giving local communities the ability to control, the flexibility to
try and fashion their own programs. I would say the same is true as
well with firefighters and others who provide critical municipal
services.
What we are trying to do is two things here, Mr. Chairman: One is to

[[Page H1904]]

boost homeownership opportunities, to get more people into homes, to
have more Americans sharing the American dream, and also strengthening
America's communities by building that social capital.
But we have got to do that in a balanced way. We cannot undermine the
basic targeting provisions. We cannot fall victim to criticism that
somehow we are shifting our resources to the very high income. But we
have got to recognize that there are high cost areas where teachers and
police officers and firefighters cannot afford to live without a little
Federal help. We want to give them a little Federal help without
undermining the FHA program. This is exactly what the gentleman from
New York (Mr. LaFalce) has said.
I would add, in addition, to what my good friend from South Carolina
mentioned. It would be fraudulent, it would be against the law for
somebody to game this system. They would be subject to criminal
penalties to do that. That will not be permitted. That will not be
permitted for somebody to be able to buy a home every 3 months and turn
it over.
Mr. SANFORD. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentleman from South Carolina.
Mr. SANFORD. Mr. Chairman, I think we could debate whether or not an
individual would be gaming the system based on what the Secretary
eventually came out in terms of regulation behind this bill. But I
think there is a larger issue here which is quite simple and, that is,
if this bill goes through without this correcting amendment, you could
literally buy a house for 50 cents on the dollar, for half price. You
could buy it for half of appraised value. Is that not correct?
Mr. LAZIO. The only thing that the gentleman I think is addressing is
the 1 percent down payment option.
Mr. SANFORD. That is incorrect.
Mr. LAZIO. That is what is stricken in this amendment.
There is another part of the bill which is not affected by this
amendment which speaks to homes that are foreclosed homes, HUD-held
homes that might well be in distressed areas that would permit local
authorities to sell these homes in distressed areas. Some of these are
going to be, and this would be totally flexible. It is not mandatory.
Mr. SANFORD. It could be in the most distressed area or it could be
in the most affluent area.
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
Let me simply say that I believe the gentleman from South Carolina in
all his remarks was addressing an amendment and a provision that was
something other than the amendment and provision in question.
Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
This amendment does not delete the 50 percent benefit of purchasing a
HUD home at 50 percent. Let me clarify that.
Let me read what the American Federation of State, County and
Municipal Workers say about pay: ``It is clear that compensation
packages between the private sector and public sector at the State and
local level is highly competitive and does not favor one over the
other.''
By the union's own admission, they are competitive in their salaries.
I do not question the intention of both gentlemen from New York. Their
motives are pure in what they are trying to accomplish. What I say is
what they are accomplishing is entirely unfair to the people who are
paying the taxes that will make up for the 50 percent discount that
goes with that.
If this program is so good for teachers, so good for the FHA, so good
for improving the surplus, then I am sure that if they deny this
amendment, they would want to support the other one, that expands that
to clergy, that expands it to union members, expands it to the
carpenter who builds the house when the carpenter who works for the
city can buy the house. I am sure they would want to support that.
The next amendment that I am bringing up in terms of trying to
correct this, I do not disagree with their motivation, but would expand
this pie. And if we create 150,000 new mortgages with their amendment,
we would create 300,000 if we expand the pie. What we would do is we
would put it on an even basis. If we are going to pick winners, let us
pick everybody to be a winner. Let us allow everyone the same
opportunity.
Mr. Chairman, I reserve the balance of my time.
Mr. LaFALCE. Mr. Chairman, I yield the balance of my time to the
gentleman from Massachusetts (Mr. Frank).
The CHAIRMAN. The gentleman from Massachusetts is recognized for 1\3/
4\ minutes.
Mr. FRANK of Massachusetts. Mr. Chairman, the major reason for
differentiation is the nexus between municipal employment and the
municipality. We have in fact many municipalities which have decided to
impose residency requirements. They require that certain employees live
in the city. Part of the impetus for this legislation is the increasing
problem when people are faced with an inconsistent set of demands.
On the one hand they are legally ordered to live in the city, and on
the other hand they cannot afford it. It is not my understanding that
cities order other people to live there. The people who would be
covered if the gentleman from Oklahoma's expanded amendment were
adopted are not subject to a requirement of municipal residency nor has
anyone thought that there was a logical reason to do that.
Mr. COBURN. Mr. Chairman, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentleman from Oklahoma.
Mr. COBURN. Mr. Chairman, the only question I have is the Federal
Government did not set any mandates on any city that their employees be
a resident.
Mr. FRANK of Massachusetts. Right. I understand the gentleman's
question. That is true. Cities, however, have done that. The fact that
a mandate was not imposed by the Federal Government does not invalidate
it in my mind. I believe cities have the right to make these judgments.
Independent of this legislation, many cities decided in the
democratic process that governs those cities that it was helpful to
have municipal employees living there, that it was helpful to promote
the interaction, to have the police living there, the teachers living
there. It was helpful to have these people who perform those important
services living in the neighborhood.
This language facilitates that. It is not a general housing aid. It
is in facilitation of an important municipal policy that they find
useful to have their employees living in the communities. I am for
broadening housing aid in general, and I thank the gentleman. I will be
glad to be with him when the budget comes up so we can increase these
programs and accommodate the increases he wants to make. But this is
one with a particular nexus between the city and its employees.
Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
The gentleman's argument is that the city should not have to live
with the consequences of their own rules on their own citizens and,
therefore, the Federal Government should make up that difference. That
is what we are talking about.
The question that I would have for the gentleman from New York and
the gentleman from Massachusetts, if in fact that is true and they do
not want to support this amendment, then surely they will consider the
next amendment. The reason that that is, is because if in fact we are
going to take the premise that a city can require people to live within
their district and then say the housing costs are so high we cannot
afford to pay to fulfill this rule, that the Federal Government ought
to come along, is it not fair to create in that mix a broad spectrum of
people?
The gentleman from Illinois (Mr. Rush) is going to say it is equally
important to have a nurse there, a health care professional there. What
can be wrong with that? Why would we not want to advantage nurses?
Mr. FRANK of Massachusetts. Mr. Chairman, will the gentleman yield?
Mr. COBURN. I yield to the gentleman from Massachusetts.
Mr. FRANK of Massachusetts. What is wrong with it is that the budget
that has been adopted, over the objection of the gentleman who thought
it was too liberal, does not have enough money. I would be glad to join
with the gentleman from Oklahoma if he would be

[[Page H1905]]

willing to put his money where his mouth is, if in fact he would allow
the program----
Mr. COBURN. Reclaiming my time, the gentleman from New York (Mr.
LaFalce) just told us that this would enhance HUD by $5 billion. Would
enhance. Your own testimony from your side of the argument has already
said that you will enhance this program by $5 billion according to the
CBO. So why not allow the gentleman from Illinois' amendment?
Mr. Chairman, the gentlewoman from California (Ms. Waters) has an
amendment to bring this back to 80 percent. If we are really concerned
about fairness and spreading this money out, bring it back to 80
percent and expand the pot to everybody.
Expand the pot to the people that are paying the taxes who are not
going to get any advantage out of it. Let us expand it to the union
worker who actually builds a house, the union plumber who puts the
plumbing in the house. He is disadvantaged. It is interesting to note
that the American Homebuilders Association is opposed to these
amendments. They are up here lobbying for certain people to be
advantage when their own employees who are paying the taxes for it will
get no benefit other than a job.
Mr. FRANK of Massachusetts. If the gentleman will yield further, I
thank the gentleman for his strong endorsement of union workers. I am
sure when Davis-Bacon comes up there will be----
Mr. COBURN. My union record is not all that bad if the gentleman will
look at it.
Mr. FRANK of Massachusetts. The fact is that as you expand this
program, it is going to cost some more money. I support greater housing
aid. I would say to the gentleman I am all in favor of this. In fact I
do not think it should be limited at all by occupation.
Mr. COBURN. I guess the point is, the testimony is that it is going
to be enhanced by $5 billion just what we do. And if you really think
it ought to be broadened, then let us broaden it to everybody. We will
defeat my first amendment but you support the second one which does
broaden it and does create fairness in the housing market.
Mr. FRANK of Massachusetts. If the gentleman will yield further, I am
in partial agreement with the gentleman as to the first amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Oklahoma (Mr. Coburn).
The amendment was rejected.
The CHAIRMAN. It is now in order to consider amendment No. 3 printed
in House Report 106-562.

Amendment No. 3 Offered by Mr. Rush

Mr. RUSH. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 3 offered by Mr. Rush:
Page 27, line 14, after ``teachers'' insert ``, nurses,''.
Page 29, line 1, strike ``or (bb)'' and insert ``(bb) a
nurse (as such term is defined by the Secretary, except that
such term shall include nurses employed in hospitals and
nursing homes), or (cc)''.
Page 30, line 3, strike ``or''.
Page 30, after line 3, insert the following:

``(II) in the case of a mortgage of a mortgagor described
in clause (i)(I)(bb), the jurisdiction in which the hospital,
nursing home, or other place of work of the nurse is located;
or

Page 30, line 4, strike ``(II)'' and insert ``(III)''.
Page 30, line 6, strike ``(i)(I)(bb)'' and insert
``(i)(I)(cc)''.
Page 73, line 16, after ``of,'' insert ``and nurses (which
shall include nurses employed in hospitals and nursing
homes)''.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
Illinois (Mr. Rush) and the gentleman from New York (Mr. Lazio) each
will control 5 minutes.
The Chair recognizes the gentleman from Illinois (Mr. Rush).
Mr. RUSH. Mr. Chairman, I yield myself such time as I may consume.
First I want to commend the author of this particular bill, H.R. 1776.
I think that it is a fine bill. I want to commend both the subcommittee
chairman, the full committee chairman, the ranking member of the
subcommittee and the ranking member of the full chairman. I think that
this is a bill that is going to really solve a serious problem.

Request for Modification to Amendment No. 3 Offered by Mr. Rush

Mr. RUSH. Mr. Chairman, I ask unanimous consent that my amendment be
modified so that it applies to section 505 of H.R. 1776. Due to a
drafting error, it currently applies only to section 203 and 404 of the
bill.

{time} 1230

The CHAIRMAN. The Clerk will report the modification to the amendment
offered by the gentleman from Illinois (Mr. Rush).
The Clerk read as follows:

Modification to Amendment No. 3 offered by Mr. Rush:
The amendment as modified is as follows:
Page 27, line 14, after ``teachers'' insert ``, nurses,''.
Page 29, line 1, strike ``or (bb)'' and insert ``(bb) a
nurse (as such term is defined by the Secretary, except that
such term shall include nurses employed in hospitals and
nursing homes), or (cc)''.
Page 30, line 3, strike ``or''.
Page 30, after line 3, insert the following:

``(II) in the case of a mortgage of a mortgagor described
in clause (i)(I)(bb), the jurisdiction in which the hospital,
nursing home, or other place of work of the nurse is located;
or

Page 30, line 4, strike ``(II)'' and insert ``(III)''.
Page 30, line 6, strike ``(i)(I)(bb)'' and insert
``(i)(I)(cc)''.
Page 73, line 3, before the period insert ``AND NURSES''.
Page 73, line 16, after ``of,'' insert ``nurses (as such
term is defined by the Secretary for purposes of section
203(b)(10) of the National Housing Act (12 U.S.C.
1709(b)(10)) who are employed in a hospital, nursing home, or
other place of work that is located within the jurisdiction
of,''.
Page 91, line 13, before the period insert ``AND NURSES''.
Page 92, line 8, after ``(B)(i)'' insert ``(I)''.
Page 92, line 15, strike ``and'' and insert ``or''.
Page 92, after line 15, insert the following:
``(II) is a nurse (as such term is defined by the Secretary
for purposes of section 203(b)(10) of the National Housing
Act (12 U.S.C. 1709(b)(10)) who is employed in a hospital,
nursing home, or other place of work that is located within
the participating jurisdiction that is investing funds made
available under this title to support homeownership of the
residence; and

Mr. RUSH (during the reading). Mr. Chairman, I ask unanimous consent
that the modification to the amendment be considered as read and
printed in the Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
Illinois?
There was no objection.
The CHAIRMAN. Is there objection to the modification to the amendment
offered by the gentleman from Illinois (Mr. Rush)?
Mr. LAZIO. Mr. Chairman, I object.
The CHAIRMAN. Objection is heard.
The Chair recognizes the gentleman from Illinois (Mr. Rush) if he
wishes to proceed on the amendment as introduced.
Mr. RUSH. Mr. Chairman, I will proceed.
The CHAIRMAN. Does the gentleman from Illinois (Mr. Rush) wish to
reserve his time?
Mr. RUSH. Yes, Mr. Chairman, I will reserve my time.
Mr. LAZIO. Mr. Chairman, I rise in opposition.
The CHAIRMAN. The Chair recognizes the gentleman from New York (Mr.
Lazio).
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
I know that the gentleman from Illinois offers this amendment with
the best of intentions to try and expand homeownership opportunities
for nurses, and perhaps because my wife is a nurse and because I work
closely with nurses on a number of health-related issues, I like to
think of myself as not insensitive to the need to recruit and retain
high-quality nurses.
But we are trying to fashion a balanced approach in this bill, and we
are trying to speak to dual needs: one is boosting the promise of
homeownership for people who serve our community in dangerous
situations, quite often, fire fighters and police officers, people who
serve our community as mentors and as teachers. We are trying to deal
with the issue of recruitment, and we are trying to do this in a
relatively balanced way, which is to say we are not trying to open this
up to everyone.
Mr. Chairman, there are a number of different meritorious arguments
that can be made for different groups that ought to have the additional
flexibility to be helped to achieve homeownership. There is a lot in
this bill that does this that will speak to those people. There are a
lot of things in the bill that will allow nurses of modest income to
achieve the dream of homeownership.

[[Page H1906]]

However, by expanding the 1 percent provision in this section 203,
which allows 1 percent down payments beyond the balanced approach that
was crafted in a bipartisan way, I think we are diluting the support
that we will have to provide flexibility to local governments. We are
trying to give mayors and local leaders the tools that they need to
create magnets for people that serve in those very communities. While
some nurses may serve in those communities, some nurses may serve in
other communities. Regional hospitals or tertiary care hospitals are
different in terms of who they may attract relative to schools where
the people live in that area, or with respect to police departments
headquarters, which also deal with the people in that local vicinity.
Mr. COBURN. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentleman from Oklahoma.
Mr. COBURN. Mr. Chairman, I would ask the gentleman, what about the
school nurse?
Mr. LAZIO. Mr. Chairman, reclaiming my time, the provision in this
bill speaks to both administrators and teachers. That is where the
crisis is. That is where we are finding that we cannot, as we are
seeing the explosion in the amount of children coming into our school
system, fill the need to recruit and retain quality people. We are
dealing with a situation where, for example, in Atlanta, teachers,
starting teachers' salaries are $29,000. They cannot get any help for
homeownership. They can get no help for homeownership, because the
median income in Atlanta is $22,000; and the law says only the people
that are at 80 percent of that number or under $20,000 can qualify for
that. A policeman in Atlanta cannot qualify for homeownership
assistance.
So we are saying here that through the various programs, the 1
percent down payment program, through CDBG, through HOME, I know that
these are not all of the issues that the gentleman from Illinois is
raising, that we are trying to help provide social capital, a more
solid community, and an enticement for police officers and for teachers
and for fire fighters who serve that very community to achieve that
dream of homeownership.
So I think because of the overexpansion, I am unfortunately going to
oppose the gentleman's amendment.
Mr. RUSH. Mr. Chairman, I yield such time as he may consume to the
gentleman from New York (Mr. LaFalce), the ranking member of the
committee.
Mr. LaFALCE. Mr. Chairman, I would like to associate myself with the
remarks of the distinguished chairman of the Subcommittee on Housing
(Mr. Lazio). I would have to oppose this amendment too, but yet I think
the gentleman from Illinois (Mr. Rush) has a very, very worthy purpose
in mind; and I would like to work closely with him if this amendment
goes down in order to try to accomplish his goals and his purpose.
There are public nurses. There are nurses who work for publicly owned
hospitals, there are publicly run nursing homes, et cetera; and I do
not think that if there is such an amendment developed, that it would
be inconsistent with the purposes that are articulated in the bill.
Right now, I think that the amendment that is offered is just too
broadly based and would be inadequately targeted. I thank the
gentleman.
Mr. RUSH. Mr. Chairman, I yield 1 minute to the gentleman from
Oklahoma (Mr. Coburn).
Mr. COBURN. Mr. Chairman, I just want to point out that the
gentleman's intent is a good intent, because the gentleman from New
York just made the argument in Atlanta that if one is a school teacher
or fire fighter, but if one is a nurse making the same amount of money
living in the community, one does not have the opportunity.
We just rejected an amendment, two votes for it on a floor vote, we
did not ask for a recorded vote, that said this house is overwhelmingly
decided we are going to subsidize the purchase of homes for municipal
employees. That is what we have just said.
So if we are going to do that, why do we not share subsidization with
the people that are paying the taxes that also need help buying a home
who would also qualify for that? I believe that is the gentleman's
point, plus the fact that a nurse in these areas is a qualified health
professional that would also be of great advantage to the community. So
what we are saying is the base bill gives us a $5 billion plus up; and
we are saying, let us make it $300,000. Let us do the rest of the
homes.
Mr. RUSH. Mr. Chairman, I yield 1 minute to the gentleman from
Illinois (Mr. Davis).
Mr. DAVIS of Illinois. Mr. Chairman, I rise in support of the Rush
amendment. There are many economically distressed and medically
underserved communities that find it virtually impossible to recruit
nurses, virtually impossible. This amendment would provide nurses and
those communities the same opportunities that we are providing for
other individuals.
So I would associate myself with the remarks of the gentleman from
New York (Mr. LaFalce) that I would hope that we would be able to work
out an agreement where there can be the encompassing of the intent of
the gentleman's amendment in final passage of the bill, which is an
excellent bill; and I commend all of those who worked on it, and
especially do I commend the committee for the inclusion of the ability
for public aid, public assistance individuals on section 8 to move
towards homeownership.
Mr. RUSH. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I fully support this bill, and I believe that this bill
is a good bill. I believe this bill could become a better bill if, in
fact, my amendment was a part of the bill. I, too, represent a
disadvantaged community on the South Side of the City of Chicago, and I
know the problem that is caused by the scarcity of nurses in my
hospitals and in my nursing homes and in other health care facilities.
This amendment is meant to address this very, very serious problem that
we are facing, not only in the City of Chicago, but all across this
Nation. We need to give some incentives to nurses who are committed to
working in disadvantaged communities.
Mr. Chairman, I would just like to engage in a colloquy with the
gentleman from New York (Mr. Lazio), the chairman of the subcommittee,
and ask him if, in fact, this amendment does get voted down, would he
please assure me and other Members of the House that he will work with
the ranking member and myself to make sure that we try to work on this
particular amendment.
Today the House will be voting on a bill to increase homeownership
among low- and moderate-income families, including teachers, police
officers, firefighters.
My amendment would simply add nurses to the pool of people who are
able to benefit from the downpayment and closing costs abatement on
homes.
My amendment would allow the Secretary of Health and Human Services
to define the term nurse. It would also specify that under the bill,
nurses would be required to live in the jurisdiction where the
hospital, nursing home or other place of nursing employment is located.
Many of today's nurses do not want to work in disadvantaged and
underserved communities and this causes a critical shortage in these
areas.
Also, because of managed care cuts and the growing health needs of an
aging population there is a shortage of skilled nurses in many of our
communities.
When hospitals cut nursing jobs, many leave the profession and fewer
students pursue nursing degrees.
Another factor contributing to fewer skilled nurses is the aging
nursing population: the average age of all registered nurses nationally
was 44 years in 1996. More than 62 percent of RNs are age 40 or older.
In some communities starting salaries for nurses range from $14,000 to
$20,000.
Mr. Chairman, I urge my colleagues on both sides of the aisle to
support this amendment.
The CHAIRMAN. The time of the gentleman from Illinois (Mr. Rush) has
expired.
The gentleman from New York (Mr. Lazio) has 1\1/2\ minutes remaining.
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
In answer to the gentleman from Illinois's comments, I very much
appreciate the good faith in which the gentleman from Illinois has
brought this amendment. I would very much love to help nurses and other
people in health care service, especially those who are employed by
municipalities and are serving in that very same community.

[[Page H1907]]

I would say to the gentleman that I would be happy to work with the
gentleman and with the ranking member to see if we can identify some
means of providing the kind of support that the gentleman has raised,
whether it is a rental or homeownership, but to provide some support
for nurses and other people who are health care professionals as time
goes on. I do not think this is the right forum for it, but I would be
happy to work with the gentleman.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Illinois (Mr. Rush).
The amendment was rejected.
The CHAIRMAN. It is now in order to consider Amendment No. 4 printed
in House report 106-562.

Amendment No. 4 Offered by Mr. Coburn

Mr. COBURN. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 4 offered by Mr. Coburn:
Page 28, line 19, after ``(I)'' insert ``(aa)''.
Page 29, line 1, strike ``or (bb)'' and insert ``(bb) is
employed on a full-time basis as''.
Page 29, line 8, before the semicolon insert the following:

, (cc) is employed on a full-time basis by a tax-exempt
authority, (dd) is employed on a full-time basis by the
Federal Government, (ee) is a member of an organization under
the jurisdiction of the National Labor Relations Board, (ff)
is employed on a full-time basis by, or has a financial
interest in, a small business, or (gg) qualifies for the
child care tax credit under section 24 of the Internal
Revenue Code of 1986

Page 73, line 3, strike ``EMPLOYEES'' and insert
``RESIDENTS''.
Page 73, strike lines 13 through 23 and insert the
following:
``(24) provision of direct assistance to facilitate and
expand homeownership among residents of the metropolitan city
or urban county receiving grant amounts under this title
pursuant to section 106(b) or the unit of general local
government receiving such grant amounts pursuant to section
106(d), except that--
Page 73, line 25, strike ``employees'' and insert
``residents''.
Page 74, lines 11 and 12, strike ``employees'' and insert
``residents''.
Page 75, lines 2 and 3, strike ``employees'' and insert
``residents''.
Page 92, line 8, after ``(B)(i)'' insert ``(I)''.
Page 92, line 15, strike ``and'' and insert ``or''.
Page 92, after line 15, insert the following:
``(II)(aa) is employed on a full-time basis by a tax-exempt
authority, is employed on a full-time basis by the Federal
Government, is a member of an organization under the
jurisdiction of the National Labor Relations Board, is
employed on a full-time basis by, or has a financial interest
in, a small business, or is qualified for the child care tax
credit under section 24 of the Internal Revenue Code of 1986,
and (bb) is a resident of the participating jurisdiction that
is investing funds made available under this title to support
homeownership of the residence; and''.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
Oklahoma (Mr. Coburn) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Oklahoma (Mr. Coburn).
Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
This is the amendment that we spoke about. I just want to outline
basically for the Members of the body and those people at home what
this amendment does.
What we have already said is if we pass this bill, we are going to
subsidize middle-income America to buy homes at a cheap rate, certain
groups at a lower rate than others, and that the other people who are
making that same amount of money will not have the same opportunity as
the people that have been ferreted out through social engineering in
this bill.
So what this amendment does is it allows 1 percent down payments on
FHA homes, and it would allow HOME funds to be used for down payment
and closing cost assistance, as well as mortgage subsidies for the
following individuals: those employed on a full-time basis for a tax-
exempt authority. That means preachers, youth ministers, social
workers, members of an organization under the jurisdiction of the NLRB.
That means any union member would have exactly the same opportunity to
buy a home, especially those that are building the homes; they are
paying the taxes, they make the same amount of money; but if one
happens to be a carpenter for the city, you get to buy that home, but
if you happen to be the carpenter working to build that, you do not
have that advantage. Those employed on a full-time basis by the Federal
Government; those employed on a full-time basis by a small business,
the very heart of these communities that we are trying to enhance;
those who have a financial interest in a small business, as well as
those who would qualify for a child-care tax credit. In addition, the
amendment would allow CDBG funds to be used for down payment and
closing cost assistance as well as mortgage subsidies for any resident
of a community, provided that they meet the income restrictions.
This is about fairness. If, in fact, we are going to subsidize, and
that is the will of this Congress, we should not at the same time pick
winners and losers out of people who have exactly the same income
status in this country, and that is what we are doing, regardless of
our social goal.
What we are doing is saying, if one is not a fire fighter, then one
cannot have this advantage, even though one may do something just as
valuable in the community; or if one is not a policeman, if one is not
a teacher, if one is not a municipal employee, and what we are actually
saying when we do that is we are saying a municipal employee has more
value than any other employee in the city who makes the same income.
To me, I think that is unfair, and I think that is one of the great
flaws with this bill. I would hope that the gentleman from New York
would support the expansion of this.
Mr. Chairman, I reserve the balance of my time.

{time} 1245

The CHAIRMAN. Is the gentleman from New York (Mr. LaFalce) opposed to
the amendment?
Mr. LaFALCE. I am, Mr. Chairman.
The CHAIRMAN. The gentleman from New York (Mr. LaFalce) is recognized
for 5 minutes.
Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I regret that I must rise in opposition to the Coburn
amendment, because I do understand the arguments that are motivating
him. But I really believe, too, that his arguments are misguided.
First of all, what we attempted to do was create a nexus between a
municipal employer and a municipal employee. We said, well, maybe we
ought to be able to help municipalities keep their employees living
within the district that they work in.
So if they are a teacher, if they are a policeman, if they are a
fireman, and if they work in the city of Tonawanda and will live in the
city of Tonawanda, it will create this incentive. It is not really a
subsidy, either. It is an incentive, not a subsidy. We make money,
according to CBO.
What the gentleman's expansion would do is apply it virtually to the
world, and therefore, the gentleman eliminates the whole concept behind
it: a geographic nexus. So the gentleman would have an incentive
created for an individual who lives 3 hours away. It destroys the
purpose of the amendment. The gentleman does not expand the purpose of
the amendment, he destroys the purpose of the amendment.
Let me continue. I have already discussed some of the benefits of the
program. The Coburn amendment before us now says, why limit these
benefits? First, because he eliminates the geographic nexus that we
insist upon.
There are other reasons, too. There is a public purpose in helping
these public servants, a public purpose that does not apply to the
groups that the gentleman from Oklahoma (Mr. Coburn) would make
eligible. The teachers who educate our children, the policemen who keep
us safe, and the firemen who protect our home from property damage,
injury, and death, all play a critical public role in our local
communities.
People who work in small businesses, for example, or who qualify for
the child care tax credit, may be very worthy individuals, they simply
do not serve the same public function as our educators and our
essential public safety officers. In particular, Section 203 and
related provisions of the bill address the very real problem that
school districts, police departments, and fire departments are finding
it increasingly difficult to recruit and retain qualified individuals,
or when they can, these individuals may not be able to live in the

[[Page H1908]]

local community because of the barrier of rising home prices and high
downpayment requirements.
These considerations simply do not come into play in the case of the
categories that the Coburn amendment would expand eligibility to
include.
The other problem with this amendment is that it could have a very
negative impact on the health of the FHA fund. We had CBO score our
bill. They scored our bill as raising revenues, because it will provide
opportunities for a large number of people not currently using FHA.
Thus, the increased revenues from such added use will outweigh the cost
of foregoing premiums for those borrowers that would have used the
program anyway, and would just be getting more favorable treatment.
However, I do not believe the gentleman from Oklahoma (Mr. Coburn)
has a CBO estimate of his amendment. In my judgment, by opening up
eligibility to in effect virtually everyone in the Nation, the revenue
loss could be tremendous.
The gentleman from Oklahoma (Mr. Coburn) would like to piggyback. He
says, his provision makes money; therefore, mine would, too. Not at
all. They deal with totally different classes of people. The effect
most likely would be that the FHA, instead of generating millions of
dollars in profits each year, as it current is, could end up operating
at a significant loss.
Thus, the likelihood in my judgment is that this amendment, if
enacted, would be a budget-buster, threatening the very program that
last year provided mortgage loans to 1.3 million Americans.
Mr. COBURN. Mr. Chairman, I yield myself 30 seconds.
Mr. Chairman, what the gentleman just made a logical argument for is
to say that pastors and union members and small business owners are
going to default at a higher rate than the groups they have selectively
placed out, because in fact, earnings through this program are based on
default rates. The lower the default rate, the more increased the
earnings are. The assumption of his argument is that that is what would
happen.
The other part of his argument, which I find completely inaccurate,
is that a firefighter has more impact in a community than a pastor. I
think that is wrong.
Mr. Chairman, I yield 30 seconds to the gentlewoman from Florida
(Mrs. Meek).
Mrs. MEEK of Florida. Mr. Chairman, I am not speaking against anyone,
but it is extremely important that, for principle's sake, that I say
that if we want these new programs, worthy as they are, then we should
appropriate new funds for them. When we get into presently persistent
programs that are set aside for low- and minority-income people, then
we begin to find the kind of bifurcation we are finding here today:
other groups are going to be coming up and ask for the same thing.
I am compelled to say to the chairman that even though the gentleman
from Oklahoma (Mr. Coburn) and I never agree on anything, in terms of
the expansion of this program, he is right in that we must remember
these set-asides that we bring into the HOME program in the long run
will cause us problems.
Mr. COBURN. Mr. Chairman, I yield the balance of my time to the
gentleman from South Carolina (Mr. Sanford).
The CHAIRMAN. The gentleman from South Carolina (Mr. Sanford) is
recognized for 1\1/2\ minutes.
Mr. SANFORD. Mr. Chairman, I would just mention to Members that if
Members believe in a ruling class, then they will vote against the
amendment of the gentleman from the gentleman from Oklahoma (Mr.
Coburn). If Members believe in a government class, they will vote
against the gentleman's amendment.
What this is about is government making the choices. That is what he
has raised. We have gone from removing barriers, which is supposedly
what this original bill was all about, to subsidy, and Washington
getting to pick the winners and losers.
I think that is fundamentally against the idea of one man-one vote,
equality in this country. I would go back to a point that was talked
about earlier, which again, the gentleman's amendment, unfortunately,
cannot get at, but it is a very important point.
That is, if this bill goes through in its present form, then a number
of categories that Washington has chosen can buy a house for half
price, while the farmer in our home district cannot buy that house for
half price, while the McDonald's workers in our hometown cannot buy
that house for half price, while the person who cuts timber in our
backyard cannot buy a house for half price, or somebody working in a
grocery store, or somebody who works at the local nursery school, or
somebody who works in construction, they cannot buy houses at half
price.
All of those are important parts of what makes up a local community.
I think they have value, too. Without the gentleman's amendment, they
are excluded. I do not think that is fair.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Oklahoma (Mr. Coburn).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. COBURN. Mr. Chairman, I demand a recorded vote, and pending that,
I make the point of order that a quorum is not present.
The CHAIRMAN. Pursuant to House Resolution 460, further proceedings
on the amendment offered by the gentleman from Oklahoma (Mr. Coburn)
will be postponed.
The point of no quorum is considered withdrawn.
It is now in order to consider amendment No. 5 printed in House
Report 102-562.

Amendment No. 5 Offered by Mr. Andrews

Mr. ANDREWS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 5 offered by Mr. Andrews:
Page 53, after line 25, insert the following new section:

SEC. 209. ENERGY EFFICIENCY CERTIFICATIONS.

Section 526(a) of the National Housing Act (12 U.S.C.
1735f-4(a)) is amended--
(1) by inserting ``(1)'' after ``(a)''; and
(2) by adding at the end the following new paragraph:
``(2) The Secretary shall require, with respect to any
single- or multifamily residential housing subject to a
mortgage insured under this Act, that any approval or
certification of the housing for meeting any energy
efficiency or conservation criteria, standards, or
requirements pursuant to this title and any approval or
certification required pursuant to this title with respect to
energy conserving improvements or any solar energy system,
shall be conducted only by a home energy rating system
provider who has been accredited to conduct such ratings by
the Home Energy Ratings System Council, the Residential
Energy Services Network, or such other appropriate national
organization, as the Secretary may provide.''.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
New Jersey (Mr. Andrews) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from New Jersey (Mr. Andrews).
Mr. ANDREWS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I first want to express my enthusiastic support for the
work that the gentleman from Iowa (Mr. Leach) and the gentleman from
New York (Mr. Lazio) and the gentleman from New York (Mr. LaFalce) and
the gentleman from Massachusetts (Mr. Frank) have done, and thank them
for bringing to the floor a bill that will no doubt make more Americans
homeowners in high-quality homes. I congratulate them.
In 1973, the phrase ``oil embargo'' became known to the vocabulary of
most Americans for the first time. It was widely acknowledged that we
needed to do something to reduce our dependence upon foreign energy.
Here we are, 27 years later, and one of the major issues confronting
the country is our dependence upon foreign oil.
One of the long-term strategies to reduce that dependence is to
become more energy-efficient in every aspect of American life. It is to
the credit of the authors of this bill and their predecessors that we
are moving in that direction in the field of housing. Through various
tools available to the Federal government, we are creating a situation
in which more energy-efficient homes are being financed and purchased
by more people.
The purpose of my amendment is to be sure that when we say that
something is energy-efficient, that it really is; that the
certification of what is energy-efficient is a certification that

[[Page H1909]]

meets a high standard, as is presently the law, and that that standard
is carefully reviewed by a well-trained, well-prepared, and duly-
accredited appraisal agency.
I appreciate the work that both the majority and minority staffs have
done on this measure, and I appreciate the fact that there are some
very valid concerns about the scope of the issue that I have raised.
In particular, we are certainly of the intention that no duly
accredited organization be excluded from the provisions of this
amendment. I know that the gentleman from New York (Mr. Lazio) and the
gentleman from Massachusetts (Mr. Frank) want to be sure that the scope
of the amendment is broadened to include every such qualified
organization.
Secondly, I know there have been concerns raised about the
availability of such inspections in all areas of the country. It is
certainly not our intention, as sponsors of the amendment, to make it
more difficult for any American to own or finance or refinance a home.
With that in mind, I would ask the chairman of the subcommittee, the
gentleman from New York (Mr. Lazio), to discuss this matter. It is,
frankly, my intention, based upon representations that we could work on
this problem together in conference, to withdraw this amendment, but I
wanted to speak to him about that.
Mr. LAZIO. Mr. Chairman, will the gentleman yield?
Mr. ANDREWS. I yield to the gentleman from New York.
Mr. LAZIO. I thank the gentleman for yielding to me, Mr. Chairman.
I truly appreciate the gentleman's efforts to provide protection to
consumers and provide the best possible options for homeowners for
energy efficiency certification. The concern that I have, and I think I
have spoken to the gentleman about, is about whether or not we mandate
or limit options for consumers.
I would be very pleased to work with the gentleman from New Jersey as
the process moves forward to try and address some of the concerns
raised.
Again, I think there is a cost option and there is a choice option. I
think the gentleman's intention is not to undermine either of those. He
does not want to have a more expensive certification process, does not
want to eliminate important options for consumers.
I think if we work together, we may be able to try and find ways to
try and adjust that.
Mr. ANDREWS. Reclaiming my time, Mr. Chairman, the chairman has
accurately stated my intentions, and I appreciate his intentions.
Mr. Chairman, it is my intention that we have no additional energy
certification requirement than is presently in the law, that we simply
address the way one is certified as meeting that requirement in a way
that does not add significant cost to the consumer, and in a way that
does not limit the choices that a consumer would have in choosing a
qualified certifier. That certainly accurately states my intentions.
Mr. FRANK of Massachusetts. Mr. Chairman, will the gentleman yield?
Mr. ANDREWS. I yield to the gentleman from Massachusetts.
Mr. FRANK of Massachusetts. I thank the gentleman for yielding to me.
Mr. Chairman, the gentleman said it was his intention to acknowledge
that the gentleman from New York had accurately stated his intentions.
I certainly do not intentionally want to undo any of this harmony. I
simply say that I join with both gentlemen in our commitment to work
this out. I think they have made it very creative. We will be able to
do that.
Mr. ANDREWS. Mr. Chairman, the gentleman from Massachusetts has very
clearly stated everyone's intentions here, which I appreciate.
Mr. Chairman, I ask unanimous consent to withdraw the amendment.
The CHAIRMAN. Is there objection to the request of the gentleman from
New Jersey?
There was no objection.
The CHAIRMAN. The amendment is withdrawn.

{time} 1300

The CHAIRMAN. It is now in order to consider amendment No. 6 printed
in House Report 106-562.

Amendment No. 6 Offered by Mr. Weygand

Mr. WEYGAND. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 6 Offered by Mr. Weygand:
Page 59, after line 23, insert the following new section:

SEC. 212. PROPERTY IMPROVEMENT LOAN LIMIT FOR SINGLE-FAMILY
HOMES.

Section 2(b)(1)(A)(i) of the National Housing Act (12
U.S.C. 1703(b)(1)(A)(i)) is amended by striking ``$25,000''
and inserting ``$32,500''.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
Rhode Island (Mr. Weygand) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Rhode Island (Mr. Weygand).
Mr. WEYGAND. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this is a very simple amendment. It revises or amends
title I of the FHA home improvement section, which is actually the
oldest section of the FHA program. It was started back in 1934.
This program was intended, as it does today, to provide for mortgages
for home improvements. This is done through an FHA-approved lender who
makes the loans out of their own funds to eligible borrowers, through
HUD and through FHA.
These are for typical kinds of homeowner improvements, whether they
be for utilities, whether they be for renovations to rooms, bathrooms,
roofs, whatever it may be, but it is not for such things as luxury
items, swimming pools and other things like that. It is for core
essentials to make improvements to one's home.
As I said, this program was started in 1934 and over the years we
have had many changes with the original loan limit. Presently, the loan
limit is $25,000 per loan. This was established approximately 9 years
ago, and since that time construction costs and the rate of inflation
have certainly eaten into the purchasing power of that $25,000.
This amendment that we are offering today would simply move the limit
to $32,500, which would be equivalent to what the rate of inflation and
building costs would have been over the last 9 years. In fact, what we
are doing is allowing for the borrower to purchase the same amount of
construction improvements in 2000, 2001, as they would back in 1991. It
is not an expansion. It is just simply keeping pace with inflation.
As a matter of fact, such an index is also used in FHA 203(b),
single-family loan limits that they go through every year. So it is not
unusual for us to do this.
At the chairman's request, and I want to thank him for his indulgence
and his assistance in this, I have talked not only with FHA but also
with OMB and we have letters from both that will be coming to us by way
of myself to the chairman that they are in full agreement. They have no
opposition to this amendment whatsoever. They believe that it is
reasonable and they will not oppose it and the administration would not
oppose it.
I made that promise to the chairman because I believe that the
administration should be on board with this amendment if we are to move
forward with it.
Lastly, Mr. Chairman, this kind of an increase, again, has nothing to
do with the existing title I program in terms of modifying or changing
any of the criterion, the regulations or the oversight that would be
part of title I. This is a good improvement, would allow those people
who are really scratching, trying to get by to make major home
improvements allow them the opportunity to do that.
Mr. LAZIO. Mr. Chairman, will the gentleman yield?
Mr. WEYGAND. I yield to the gentleman from New York.
Mr. LAZIO. Mr. Chairman, I want to thank the gentleman from Rhode
Island (Mr. Weygand) for yielding.
Mr. Chairman, the gentleman is correct in referencing that we have
had numerous discussions about this issue. The title I home improvement
program is a valuable program for America. It helps some of our
neediest communities achieve the dollars that they need, homeowners
getting the dollars they need to put a new roof on their

[[Page H1910]]

house or rebuild their heating system, much the way other parts of this
bill deal with the reverse equity program, allowing seniors who are
house rich but cash poor tap into their equity, stay in their home,
rebuild their heating system, put a new walkway in or put a new roof on
without having to move out.
So these are very positive aspects of this proposal, and I support
the proposal, but as I said to the gentleman I am concerned. I am
concerned about the Department of Housing and Urban Development
ensuring that this program is properly enforced.
We have had continuing concerns, and the gentleman from Massachusetts
(Mr. Frank) has shared these concerns, about the ability of the
Department to properly enforce the law so that the worst players are
eliminated and people are still able to access these dollars.
I am concerned, based on a conversation I just had only minutes ago,
that HUD may not be willing to issue the kind of statement that the
gentleman from Rhode Island (Mr. Weygand) I know has been seeking. So I
would only say that I am going to support this amendment with the
understanding by all parties that I want to get the green light from
HUD that this will not undermine their ability for proper enforcement.
If that does not come before we are able to conference this bill, then
I am going to reevaluate my position.
Mr. WEYGAND. Mr. Chairman, reclaiming my time, I concur with the
gentleman from New York (Mr. Lazio), and I have said to him that we
will provide not only the letters but also the support from the
administration on this.
I would also like to add one last thing about the amendment. The
gentleman from New York (Mr. Lazio) is correct. We believe that there
must be stronger, more vigilant guidelines and regulation of the title
I program. This would not change that, and I thank the gentleman for
his cooperation.
Mr. FRANK of Massachusetts. Mr. Chairman, I claim the time in
opposition.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I would say at the outset that my opposition is quite
tentative, but under the rule there is no other way to get time. So in
the interest of making sure that everybody has a chance to offer
amendments, I am prepared to express, as I said, the mildest of
opposition to this amendment. I think I am capable of being persuaded
to the contrary. I am open minded. I guess one would say, Mr. Chairman,
I am claiming the time as leaning against, which I believe, as I look
at the parliamentarians, is acceptable under the rules.
Mr. LAZIO. Mr. Chairman, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentleman from New York.
Mr. LAZIO. Mr. Chairman, I just want to thank the gentleman from
Massachusetts (Mr. Frank) for the bipartisan nature of the concern to
ask HUD to address some of these problems that have been identified
without undermining the program. There is a rule that has been
proposed, as the gentleman knows, that could potentially undermine the
ability of this program to be properly implemented.
I know the gentleman shares my concerns, and I am just wondering if
he would like to express his concerns.
Mr. FRANK of Massachusetts. Mr. Chairman, I thank the gentleman for
that. One of the things that has been very heartening about this debate
and I mean this, with regard to this, with regard to the points that
were made by the gentleman from Oklahoma on the previous amendment and
joined by the gentleman from South Carolina, I think what we have seen
is a consensus that whatever criticisms we might have had of various
government housing programs in the past, sufficient improvements have
been made in the way in which they are operated so we can, with some
confidence now, increase funding for them.
We have come out of a period when there were two constraints on
funding for government housing programs. One was the concern that they
were not being well run; another, the severe deficit condition of the
Federal Government. We are making very substantial progress on both.
This bill is a recognition of that, and there are some initiatives
here. One of the things that we have done, we got out of the housing
production business. Section 8 became purely a rental program. One of
the things that was commented on, I believe by the gentleman from
Wisconsin earlier, was that this bill begins to put section 8 back into
a program that could help housing production because it puts it into a
homeownership situation.
Obviously, one cannot use section 8 for homeownership if it is on an
annualized basis. One cannot buy a home with a one-year certificate. So
we are recognizing that there is some value to lengthening it.
There are other parts of this bill that try to do that. Raising the
FHA limit, let me put it this way, we have a demand to raise the FHA
limit. Where does that come from? People who have had good experiences
with FHA. There were periods in our history when people heard FHA and
thought, oh, the program is not running well. It is now running well
enough so that there is considerable interest in expanding it.
The gentleman from Oklahoma made some very good points on his second
amendment about expanding some of these programs, but we need to have
funds with which to do that.
So I hope that the lesson of today will be, first, that we are trying
as prudently as possible to expend the funds made available to us but,
secondly, that we are making a very good case for an increase in
funding; that the allocations that go for housing programs ought
substantially to be increased and we are going to get some further
indications of that.
Mrs. MEEK of Florida. Mr. Chairman, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentlewoman from Florida.
Mrs. MEEK of Florida. Mr. Chairman, I agree with the gentleman, but
the gentleman said one significant thing. The gentleman mentioned that
these programs are good and worthy but a new appropriation is needed.
Therefore, the gentleman's subcommittee should have authorized these
new programs.
So if the gentleman authorizes them, then we could get them funded.
Mr. FRANK of Massachusetts. Mr. Chairman, I thank the gentlewoman
from Florida (Mrs. Meek), and would that it were my subcommittee. I
assure my friend, the gentlewoman from Florida (Mrs. Meek), that if it
were my subcommittee I would authorize in a way that would stretch even
her capacity to appropriate, considerable though that may be.
Mrs. MEEK of Florida. Mr. Chairman, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentlewoman from Florida.
Mrs. MEEK of Florida. Mr. Chairman, if that is the case then, then we
can continue to authorize on appropriation bills.
Mr. FRANK of Massachusetts. Well, I am all in favor of increasing the
authorization. I am not in favor of authorizing in appropriation bills.
I will say, we have made a very real effort here, to the gentleman from
Iowa (Mr. Leach) and the gentleman from New York (Mr. Lazio). In the
House Committee on Banking and Financial Services, we have made a very
real effort to authorize, whether it was in the debt relief area or in
the housing area, and I think if the gentlewoman from Florida (Mrs.
Meek) would look she will note that the Subcommittee on Housing and
Community Opportunity and the full Committee on Banking and Financial
Services has done its work in authorizing.
The levels have been too low. I would like to see the levels be
higher, but it certainly has been the case that we have done our
authorization.
Mr. LAZIO. Mr. Chairman, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentleman from New York.
Mr. LAZIO. Mr. Chairman, I want to thank the gentleman from
Massachusetts (Mr. Frank) for yielding and just remark that whenever we
have taken up the necessary changes in these programs, the reforms that
have been called upon, it has been my position, and I think the
position of the majority in the House, to move forward and try and
properly fund programs, as we did with the rental vouchers of the
section 8 program, to give people the choice of mobility of moving
closer to a better school or closer to a job.
I want to thank the gentleman from Rhode Island (Mr. Weygand) for
this

[[Page H1911]]

increase. Again, I think it helps empower people to stay in their own
homes.
Mr. FRANK of Massachusetts. Mr. Chairman, let me just say that I have
been persuaded, and I am no longer opposed to this.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Rhode Island (Mr. Weygand).
The amendment was agreed to.
The CHAIRMAN. It is now in order to consider amendment No. 7 printed
in House Report 106-562.

Amendment No. 7 Offered by Ms. Waters

Ms. WATERS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 7 offered by Ms. Waters:
Page 73, line 4, strike ``(a) Eligible Activities.--''.
Page 74, strike lines 9 through 24 and insert the
following:
``(B) such assistance may only be provided on behalf of
low- and moderate-income persons;''.
Page 76, strike lines 7 through 16.

The CHAIRMAN. Pursuant to House Resolution 460, the gentlewoman from
California (Ms. Waters) and a Member opposed each will control 10
minutes.
The Chair recognizes the gentlewoman from California (Ms. Waters).
Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, the Community Development Block Grant statutes are
found in the Housing and Community Development Act of 1974. When
Congress passed the Housing and Community Development Act, the primary
objective of the act was to provide decent housing and a suitable
living environment and expanding economic opportunities principally for
persons of low- and moderate-income.
Congress further declared that funds received under this act shall be
used for the support of activities and the benefit of persons of low-
and moderate-income. Unfortunately, the income requirements found in
section 404 of H.R. 1776 violate this intent of Congress.
My amendment strikes those provisions which undermine the Community
Development Block Grant.
Section 404 of the act titled Homeownership for Municipal Employees
would expand the CDBG eligibility criteria for municipal employees who
are first-time homebuyers.
Under the act, municipal employees who earn up to 115 percent of the
area median income would be eligible for CDBG funds. Also, municipal
employees in designated high cost areas who earn up to 150 percent of
the area median income would be eligible for CDBG funds. In an area
where the median income is $60,000, a police officer making up to
$69,000 or so, in a high cost area, $90,000, will now be eligible for
the same pool of CDBG funds as a cashier making $48,000 or less.
This bill allows more affluent persons to benefit from the CDBG
program without expanding the funding of CDBG. Thus, less funds will be
available to help the poorest communities that CDBG has intended to
help.
My amendment deletes these harmful provisions and brings this bill in
line with the true intent of Congress and the spirit of the Community
Development Block Grant.
Mr. Chairman, I have been in conversation with two of my colleagues
from the committee. The gentleman from Massachusetts (Mr. Capuano) will
be on the floor shortly, and I have been speaking with the gentleman
from Massachusetts (Mr. Frank), and we know that we have some issues
that we must address. Our communities have some different requirements,
and while I must always act on behalf of my constituents and make sure
that the opportunities that we have created here in government are
available to them I must also pay attention to the concerns of my
colleagues who serve on that committee with me who are only trying in
their best way to do what is best for their constituents.
While we are going to have some discussion on this amendment today, I
reserve the right to withdraw the amendment.
Mr. Chairman, I yield 2 minutes to the gentleman from Massachusetts
(Mr. Capuano).
Mr. CAPUANO. Mr. Chairman, I just need to give out some numbers as to
what prompted me to put this amendment in the committee in the first
place.
I think that most people in this country do not understand the
housing crisis we have in Boston. I cannot help it that Boston is one
of the most expensive housing markets in the country, and my average
median income is 25 percent above the national median income. That
sounds great as an individual statistic, but it then does not say what
housing costs.
The average apartment rent for a three-bedroom apartment, which is
necessary for any family of four, hopefully desirable, is almost $1,200
a month, and even then one is lucky if they can find one.
When we put that against the median income of the nation, it turns
into 28 percent.
My concern is people paying that kind of rent, that kind of
percentage of their income, could never ever put the money away for a
down payment. As a matter of fact, on those numbers it would take over
20 years, if one could save 10 percent of their net income every year
it would take 20 years to put enough money aside to put a down payment
together.

{time} 1315

That is what this amendment was intended to do. Nonetheless, I have
had discussions with the gentlewoman from California (Ms. Waters), and
she has been a fantastic advocate and great leader for me as a new
Member, relative to housing matters. I would never pretend to know more
about housing than she does.
With housing discussions, I think she understands my concerns. I
certainly understand hers. Because of that, we have had, I think, great
discussions to say, look, we have had different issues, but they are on
the same page. We are moving in the same way trying to help the same
type of people, with a little different constituency; and because of
that, we are going to work together as often as we can on this bill and
others to try to help out the people we represent.
Ms. WATERS. Mr. Chairman, I reserve the balance of my time.
Mr. LAZIO. Mr. Chairman, I rise in opposition to the amendment.
The CHAIRMAN. The gentleman from New York (Mr. Lazio) is recognized
for 10 minutes.
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I want to associate myself with the comments of the
gentleman from Massachusetts (Mr. Capuano). The intent of this section
and the effect of this section will be to try and help solidify the
social capital in areas that are high-cost areas, because housing in
Boston or in New York or in Chicago is very different than the housing
costs of Mississippi and Alabama and even in Nebraska.
The gentleman from Massachusetts raised some relative costs, and I
just want to add some for reference points. For example, a teacher with
a starting salary of $32,000 in Pittsburgh would never qualify for any
assistance under our Federal programs. The same would be true of
Chicago and Atlanta, Boston, Dallas, Oklahoma City, and Memphis. Police
officers and teachers would not qualify.
So the intent is it try and help those communities that are high-cost
areas where the relative high income is more than neutralized by the
even higher costs of housing.
So I want to associate myself with the comments of the gentleman from
Massachusetts.
I want to thank the gentlewoman from California (Ms. Waters) for her
advocacy. I would like to ask the gentlewoman if she would consider
withdrawing this amendment with the understanding that the principles
that she is articulating I think are still intact, both in this bill,
and they are ones that I share as we talk about how to strengthen and
preserve the Community Development Block Grant Program and the HOME
program.
Ms. WATERS. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentlewoman from California.
Ms. WATERS. Mr. Chairman, I think that I have already signaled my
intent, so that question is moot. But I would like to ask the gentleman
from New York, would he consider going with me to the Committee on
Appropriations to

[[Page H1912]]

expand the amount of CDBG money so that we can expand the population of
people who can be taken care of, taking in consideration those who are
above the limits that are allowed in CDBG. Would the gentleman do that?
Mr. LAZIO. Mr. Chairman, reclaiming my time, I would say to the
gentlewoman, I am a strong advocate of increasing the proportionate
share of dollars that go to housing and the Community Development Block
Grant program, because the flexibility of the program is a very
important part of housing. So I would say I am happy to advocate for
more dollars for housing for our neediest citizens.
Ms. WATERS. Mr. Chairman, if the gentleman will yield, then I take it
that the gentleman from New York and I will go together.
Mr. Chairman, I yield 1 minute to the gentlewoman from Florida (Mrs.
Meek).
(Mrs. MEEK of Florida asked and was given permission to revise and
extend her remarks.)
Mrs. MEEK of Florida. Mr. Chairman, I first applaud the Subcommittee
on Housing and Community Opportunity for having put this program
together. I have cautioned them. I have some concerns. It is a good
bill, and everybody is loving it to death. But there are some things in
the bill that I think my colleagues need to pay attention to, and the
gentlewoman from California (Ms. Waters) just finished talking about
them. My colleagues just cannot overlook them.
First of all, when one begins to fool around with income eligibility
in programs like CDBG and HOME, one opens oneself up for broad
parameters that one may not be able to fill. Remember, these programs
are block grant programs. They are supposed to be given to the local
areas. The decisions are not supposed to be made here in the Congress.
This block grant program goes into one's local areas, and they decide
what should be done with this block grant money. If we decide here in
Washington what Westchester should do with its CDBG monies, we are
wrong. That money should be left up to Westchester County what they do
with it.
So I caution my colleagues, even though I am going to work with the
gentlewoman from California (Ms. Waters) and the committee and everyone
else when the gentlewoman is withdrawing this, please understand that
my colleagues are treading on very, very weak ground.
Mr. Chairman, I thank the gentlewoman from California for bringing it
to our attention.
Mr. Chairman, I rise in strong support of the Waters amendment.
The Waters amendment strikes the provisions of the bill that allow
``higher income'' teachers and uniformed municipal employees to receive
homeownership assistance through the CDBG program.
Title IV of H.R. 1776 would allow this assistance to households with
incomes at 150 percent of the median in ``high housing cost areas''. In
1999 there were six metro areas with ``high housing costs''. So, for
example in the Westchester, NY, area, a household with $124,650 could
get CDBG money; or, in Nassau/Suffolk County, NY, a household with
$114,750 could get CDBG aid.
Another provision would also allow CDBG money to be used for
downpayment and closing costs for households with incomes up to 115
percent of the areawide median income. In Boston, that would be
$75,325. In LA that would be $59,915.
Currently, anyone, provided they make less than 80 percent of the
Area Median Income qualifies for government funded downpayment
assistance, closing support, and mortgage subsidies.
Why should Congress give preferential treatment to a specific class
of citizens?
Why should we dilute the CDBG program by offering homeownership
assistance to higher income Americans when it is clear that the CDBG
program exists to aid low and moderate income people?
The primary objective in the CDBG program is to: Principally benefit
low and moderate income people, and aid in the elimination and
prevention of slums and blight.
We should assist municipal employees, teachers, law enforcement
agents gain access to homeownership--in fact, we should assist all
Americans reach this important goal.
We should not do it at the expense of the low- and moderate-income
people that CDBG serves.
The Maxine Waters amendment would eliminate the language allowing
households with 115 percent or 150 percent of areawide median income to
benefit. The Waters amendment would allow households with incomes below
80 percent of the median (the traditional CDBG limit) to continue to
benefit.
I urge to vote in support of the Waters amendment.
Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentlewoman from
Ohio (Mrs. Jones).
(Mrs. JONES of Ohio asked and was given permission to revise and
extend her remarks.)
Mrs. JONES of Ohio. Mr. Chairman, I say to the gentlewoman from
California (Ms. Waters), I rise in support of her amendment.
Mr. Chairman, I would like to voice the same concerns that have been
voiced by the gentlewoman from Florida (Mrs. Meek). I recognize in the
communities like the gentleman from Massachusetts (Mr. Capuano) and
other communities where there are large urban centers where the cost of
housing is significant, that they find themselves in a dilemma.
I also am very supportive of law enforcement folks and uniform
persons and teachers. But, again, the purpose of the enactment of these
dollars was for low-income communities and low-income persons.
When one begins to work on or improve and increase the median
increase by some percentage to allow others to walk into this program,
then one decreases the opportunity for low-income people to be involved
in the program, especially when one provides no additional dollars for
this particular program.
It is important that, even though we want to encourage people to move
back into cities, like police officers and teachers, and be a part of
the community, we want the community people as well to be able to stay
in the district. If we do not allow the community people access to the
funds that were created for them, we create a problem.
Mr. Chairman, I rise today in support of the Waters amendment. I rise
in support of striking the language in section 404 that raises the CDBG
income eligibility to 115 percent and in high cost areas, to 150
percent.
Mr. Chairman, housing and expanding homeownership is of great concern
in the 11th Congressional District of Ohio as well as across this
Nation. We must continue to explore ways to provide affordable housing
for all.
Mr. Chairman, I want it also noted that I support teachers and
uniformed employees. I also support efforts to expand their
homeownership. While I applaud the efforts of this bill to provide
homeownership opportunities for uniformed employees, however, I believe
the bill as it is currently written is a reverse Robin Hood. Yes, it
robs neighborhoods all over this Nation. Since there is no additional
funding for this median income hike, communities that use CDBG funds
for childcare, social services, and development are robbed.
Mr. Chairman, the CDBG program was developed for those with low to
moderate incomes. Since, 1974, CDBG has been the backbone of
communities. CDBG provided a flexible source of grant funds for local
governments to devote to particular development projects and
priorities. There were some provisions, however, for this support. CDBG
offered grant funds, provided that these projects either (1) benefit
low- and moderate-income persons; (2) prevent or eliminate slums or
blight; or (3) meet other urgent community development needs. Let us
not move from that important purpose.
Mr. Chairman, in determining eligibility, low- and moderate-income
persons was generally defined as ``members of a family earning no more
than 80 percent of the area median income.'' This proposed bill allows
CDBG and HOME money to be used to help people with incomes up to 115
percent of the area median income buy homes. In addition, in areas the
Secretary deems ``high housing'' cost areas, this percentage shoots up
to 150 percent. This potentially means that a uniformed employee making
$94,000 could get CDBG help to buy a home.
Mr. Chairman, low-income households do not generally benefit from the
allocation of CDBG funds in proportion to the severity of their needs.
Then, let us not further diminish low-income households' access to CDBG
by allowing those with greater means to benefit in proportion to their
needs.
Moreover, under current law, low-and moderate-income people only
receive 50 percent assistance for downpayment assistance. This section
allows 100 percent downpayment aid for uniformed employees. We cannot
continue to take from the least of these.
If we want to expand homeownership opportunities for teachers and
uniformed employees, let us do it the right way. Let us draft
legislation to deal with this concern.

[[Page H1913]]

What is the reality here? There are but so many pieces of the pie to
be sliced. To continue providing slices without baking additional pies
only means one thing . . . someone gets left out. Who's that? Usually,
it is the folks who need help the most. We must change that.
Let us move back to the 80 percent level. Support the Waters
amendment.
Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Chairman, let me join in congratulating
the gentlewoman from California (Ms. Waters) for this particular
amendment. I wanted to particularly come and support this amendment,
but as well, associate my concerns with the overall impact of
legislation that may move decision-making on these funds to a broader
umbrella than the local community.
In particular, in this booming economy we must look at the question
of the economic divide. This whole legislative initiative from its very
beginning was to bring up those, was to lift the boats of those who
could least afford opportunities for housing.
In our communities today, there is still the great divide of
homeownership. The lack of homeownership falls upon those who have the
least amount of income. It would be terrible to take away this
umbrella, this boat, if you will, from these individuals, to give them
the opportunity, the working poor, to own homes.
Whenever one goes into communities, what they ask for most is I would
like to be a homeowner, to raise my family. So it is appropriate that
we keep the income level so that those people who suffer in the least
of the economic areas can as well provide, have the opportunity for
housing.
Ms. WATERS. Mr. Chairman, may I inquire how much time is remaining.
The CHAIRMAN. The gentlewoman from California (Ms. Waters) has 2\1/2\
minutes remaining. The gentleman from New York (Mr. Lazio) has 7\1/2\
minutes remaining.
Ms. WATERS. Mr. Chairman, do I have the right to close on this
debate?
The CHAIRMAN. No. The gentleman from New York (Mr. Lazio) has the
right to close.
Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, let me just then make my closing of this side of the
argument by saying that I really do understand the dilemma that my
colleagues find themselves in, particularly the gentleman from
Massachusetts (Mr. Capuano), who has spent some time helping me to
understand his dilemma.
I am very appreciative for the cost of housing and how it is
increasing. I also understand that this great economic boom that we
have has increased the cost of housing. There is less housing on the
market, and something must be done about that.
But I want to say to the gentleman from New York (Mr. Lazio), my good
friend, who is in the very privileged position of chairing the
Subcommittee on Housing and Community Opportunity of our Committee on
Banking and Financial Services that it is incumbent upon us, when we
recognize these problems, to take serious and substantial action to do
something about it.
I do believe we should have authorized additional funds in CDBG. We
should go to the Committee on Appropriations to expand the pot so that
we can take care of those who find themselves in this new situation.
What is very, very troubling is that we have still the masses of poor
people and people who are working for very low wages who need
desperately to have access to resources that are offered in some cities
only by CDBG and other very limited opportunities to have housing.
These people, many are homeless, many of them are living two, three,
four, and five families to a house. In California, we have people
living in garages without running water, and they are in desperate
need.
So it is very, very troubling to talk about taking this very limited
pot, this pot of money, and having to spread it even with those who may
need it, but who make substantially more money, and have the
opportunity to purchase something while we have so many people who do
not have, can never dream of having a down payment, who can never dream
of homeownership without some assistance from their government.
While I am certainly going to work with my colleagues in every way
that I possibly can to try and satisfy all of our concerns, I would say
to those who are in the leadership, who are in power now, let us do the
right thing and expand the amount of dollars that are available.
Mr. FRANK of Massachusetts. Mr. Chairman, will the gentlewoman yield?
Ms. WATERS. Yes, I yield to the gentleman from Massachusetts.
Mr. FRANK of Massachusetts. Mr. Chairman, I want to say some of these
programs, which are very important programs, CDBG, HOME, they have been
well run for years, they have been frozen, they have been level-funded,
the need has increased. I hope out of this comes an increased
recognition that we need to increase the funds.
Ms. WATERS. Mr. Chairman, I ask unanimous consent to withdraw my
amendment.
The CHAIRMAN. Is there objection to the request of the gentlewoman
from California?
Mr. COBURN. Mr. Chairman, reserving the right to object, I believe
the gentlewoman from California makes a great point. The reason that I
am going to object to her unanimous consent is I believe the House
ought to have a separate vote on moving the income requirement from 80
percent.
Mr. FRANK of Massachusetts. Mr. Chairman, I object to the unanimous
consent request. The gentleman from Oklahoma is going to object anyway,
so I object now.
The CHAIRMAN. Objection is heard.
The gentleman from New York (Mr. Lazio) has 7\1/2\ minutes remaining.
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I would address this now with this amendment obviously
going forward. I appreciate the gentlewoman from California for making
the request to withdraw this amendment. It would be better, I think, if
the House could move forward to the other amendments. But let me just
address this for a moment.
We are trying to give local communities the authority to rebuild
their own backyards. We are trying to give local mayors the ability to
use new housing tools to build social capital. Do we believe in that,
or do we not?
Do we think that police officers and fire fighters and teachers
should live in the communities that they serve in because, in many of
America's communities, they cannot own a home because they cannot
afford to get into a home because the cost of housing is too much.
In Oklahoma City, in Dallas, in Portland, in Boston, in Chicago and
Philadelphia and Pittsburgh, if one is a starting entry-level worker
who enters into the teaching profession or enters into the profession
of being a fire fighter or a police officer, one is going to get boxed
out. One will not be eligible for that little bit of help, not from
Washington, D.C., but from a mayor that wants to provide or a local
not-for-profit wants to provide, or the local community, in trying to
build a strategy for revitalization, for rebuilding that community, for
bringing in role models and mentors and folks that serve that
community.
That is what we are trying to do here, help those communities that,
from a distance, look like they are high-income communities; but when
one looks a little bit closer from a relative basis, they are also very
high-cost communities.
So if one is from a State that is a low-income State, one may or may
not want to do this. One may or may not need to do this. But there are
other communities, and the community of the gentleman from
Massachusetts (Mr. Capuano) is one of those, perhaps where their mayor
in their community wants to rebuild the infrastructure of their
community by getting police officers and getting fire fighters and
getting teachers and getting municipal workers to live in the community
that they are supposed to serve.

{time} 1330

And what is wrong with that?
Mrs. MEEK of Florida. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentlewoman from Florida.
Mrs. MEEK of Florida. Mr. Chairman, with great respect to the housing

[[Page H1914]]

chairperson, I would want to know, since the gentleman is the chairman
of the authorizing committee, and the gentleman from Massachusetts (Mr.
Capuano) and the gentlewoman from California (Ms. Waters) both have
very, very strong and valid arguments, why will the gentleman not lead
the effort to authorize a program to fit the needs of the people
everyone is trying to get under CDBG? In that way the gentleman will
authorize it, and he will get monies and resources to do it.
But if the gentleman rides on the back of other programs, he is going
to have problems.
Mr. LAZIO. Reclaiming my time, Mr. Chairman, I would say that is
exactly what this bill does. This bill allows local communities to
borrow against future revenue sources so they can rebuild not just one
house at a time but an entire block at a time.
This bill provides the flexibility to create loan pools so people can
borrow, so many, many more low-income Americans can borrow against that
money to overcome the transactional barriers of downpayment or of
closing costs. This bill does it. This bill does what the gentlewoman
is talking about.
Mr. COBURN. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentleman from Oklahoma.
Mr. COBURN. Mr. Chairman, I just want to continue the point related
to this amendment, which is that the vast majority of the people I
think in this House are going to want to increase this limit.
The point the gentlewoman from California made is there is not enough
money to go around if, in fact, we increase the limit. My reason for
objecting is we ought to have a vote of the House if we are going to do
that, and that was the purpose.
Mr. LAZIO. Reclaiming my time, I would just respond that I understand
the gentleman's point.
And, again, I would say if we believe that local communities ought to
have more control, more tools at their disposal, we will defeat this
amendment. If we understand and if we embrace the idea that different
parts of the country have different needs and we need to respect those
needs, we will defeat this amendment.
I want to again reiterate and thank the gentlewoman for trying to
withdraw this amendment.
Mr. CAPUANO. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentleman from Massachusetts.
Mr. CAPUANO. Mr. Chairman, I thank the gentleman for yielding.
I find this to be unfortunate. The people who are proposing the
amendment are working with us to try to come to a mutual agreement, and
the people who really do not do much about housing do not want us to.
I want to make two points. Number one, this amendment does not do
anything to take the decisions out of local control. It simply allows
the director of HUD to designate some communities, only some, that are
high cost areas. That is all it does. That is all it does. Nobody has
to do this. If a local community does not want to do it, they do not do
it.
I will tell my colleagues that not more than 15 months ago I was the
mayor of a city that is an entitlement community under a block grant. I
did this. This is what I did.
Mrs. MEEK of Florida. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentlewoman from Florida.
Mrs. MEEK of Florida. I would simply say to the gentleman from
Massachusetts that he does not need a Federal statute.
Mr. CAPUANO. Well, Mr. Chairman, if the gentleman will continue to
yield, I would just say to the gentlewoman, not with a 150 percent
income. We do need those standards.
Mr. GREEN of Wisconsin. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. I yield to the gentleman from Wisconsin.
Mr. GREEN of Wisconsin. Mr. Chairman, I thank the gentleman for
yielding to me.
Too much of this discussion, I think, is looking at the only benefit
derived from this bill and from this program as being the family that
is enrolled in it and actually utilizing the loan. It is ignoring the
fact that there is a public good in stabilizing neighborhoods.
Neighborhoods are stabilized by creating mixed-use, mixed-income
homeownership. That is how we stabilize deteriorating neighborhoods.
That is how we stop the core of deterioration from spreading outward.
The part of the goal here is to stabilize neighborhoods; to give
local officials the ability to stabilize and to protect and to solidify
the good that is going on in so many communities. It is a great idea
that I think the gentleman from Massachusetts (Mr. Capuano) has had. It
allows more local officials greater flexibility in the tools that they
need, that they need to manage the good that is going on in the
communities all across the Nation.
I strongly support it, and I do oppose the gentlewoman's amendment.
Mr. LAZIO. Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from California (Ms. Waters).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. COBURN. Mr. Chairman, I demand a recorded vote, and pending that,
I make the point of order that a quorum is not present.
The CHAIRMAN. Pursuant to House Resolution 460, further proceedings
on the amendment offered by the gentlewoman from California (Ms.
Waters) will be postponed.
The point of no quorum is considered withdrawn.
The CHAIRMAN. It is now in order to consider amendment No. 8, printed
in House Report 106-562.

Amendment No. 8 Offered by Mr. Shays

Mr. SHAYS. Mr. Chairman, I offer amendment No. 8, made in order under
the rule.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 8 offered by Mr. Shays:
Page 78, line 18, strike ``$260,000,000'' and insert
''$292,000,000''.

The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from
Connecticut (Mr. Shays) and a Member opposed each will control 10
minutes.
The Chair recognizes the gentleman from Connecticut (Mr. Shays).
Mr. SHAYS. Mr. Chairman, I yield myself such time as I may consume,
and since this amendment is sponsored by myself, as well as the
gentleman from New York (Mr. Nadler), the gentleman from New York (Mr.
Crowley), and the gentlewoman from Maryland (Mrs. Morella), I will be
yielding to those three colleagues as well.
What this amendment does is it increases the fiscal year 2001 funding
authorization for the Housing Opportunity for Persons With AIDS, HOPWA,
program from $260 million to $292 million, the minimum level determined
necessary by the HIV/AIDS community to meet the needs of people living
with HIV/AIDS. HOPWA is now funded at about $232 million.
There is a housing crisis for individuals living with AIDS. Many will
face a housing crisis at some point during their illness as a result of
the increased medical expenses and lost wages. HOPWA was created to
address this growing problem. It is one of the most cost-effective ways
to ensure that people living with HIV/AIDS have adequate and affordable
housing.
Mr. Chairman, I yield 2 minutes to the gentleman from New York (Mr.
Nadler).
Mr. NADLER. Mr. Chairman, I rise to urge the Members of this House to
vote for the Shays-Nadler-Crowley-Morella amendment, and I want to
commend the gentleman from Connecticut (Mr. Shays) for his leadership
on this amendment.
Mr. Chairman, at any given time, one-third to one-half of all
Americans with AIDS are either homeless or in imminent danger of losing
their homes. These are people who face discrimination or have lost
their jobs because of illness or, most cruelly, are placed in the
untenable position of choosing between expensive lifesaving medications
and other necessities, such as shelter.
This is where HOPWA comes in. HOPWA is the only Federal housing
programming that specifically provides cities and States with the
resources to address the housing crisis faced by people living with
AIDS. It is a locally controlled program that provides maximum
flexibility to States and communities to design and implement the

[[Page H1915]]

strategies that best respond to local housing needs.
Currently, fiscal year 2000 funds are serving people in over 67
cities across 34 States. This is a well-run, far-reaching, and
successful program. But as the success of HOPWA grows, so too does the
need for funding. Ironically, as a result of the recent advances in
medical science and in care and treatment, the people currently being
housed are living longer and the waiting list for these programs are
growing even longer.
On top of these strains on funding, new geographic areas join HOPWA
every year. Without a significant increase in funding, it will be
unable to serve those already in the program, not to mention those who
now seek to join it. Without proper funding for HOPWA, people with HIV
and AIDS will continue to die prematurely and perhaps unnecessarily in
hospital rooms, in shelters, and on the streets of our cities.
I urge the adoption of this amendment.
Mr. SHAYS. Mr. Chairman, I yield 2 minutes to the gentlewoman from
Maryland (Mrs. Morella).
Mrs. MORELLA. Mr. Chairman, I rise in strong support of the Shays-
Nadler-Crowley-Morella amendment, which would increase the fiscal year
2001 authorization for the Housing Opportunities for People with AIDS
program from $260 million to $292 million, which is the amount
identified by a number of national HIV/AIDS coalitions as the minimum
level needed to adequately meet the needs of those living with
HIV/AIDS.
I also want to thank the gentleman from Connecticut (Mr. Shays)
particularly for his leadership on this issue.
This HOPWA program has strong bipartisan support. It is the only
Federal housing program that specifically provides cities and States
hardest hit by the AIDS epidemic with the resources to address the
housing crisis felt by people who are faced by people who are living
with AIDS.
It is true that the number of AIDS-related deaths has begun to
decline, thanks to dramatic new treatments and improvements in care.
However, HIV/AIDS remains the major killer of young people and is the
leading cause of death for African and Hispanic Americans between the
ages of 25 and 44.
The high cost of new treatments has often forced people to decide
between essential medications and other necessities, such as housing.
Further, stable housing is critical to the success of the drug regimen.
The medication often must be refrigerated and taken on a rigid time
schedule. So without adequate housing, people with HIV/AIDS may not
only be unable to adhere to the strict regimen but also premature death
may result from poor nutrition, exposure to other diseases, and lack of
Medicare.
At any given time, one-third to one-half of all people with AIDS are
either homeless or on the verge of losing their homes. HOPWA addresses
this need by providing reasonably priced housing for thousands of
individuals, and yet the demand far outstrips the supply.
I just want to point out that at a daily cost of $1,085 per day under
Medicaid, acute care facilities are more expensive than HOPWA community
housing, which averages $55 to $110 per day.
This is a good amendment. I strongly support it.
Mr. SHAYS. Mr. Chairman, I yield 2 minutes to the gentleman from New
York (Mr. Crowley).
Mr. CROWLEY. Mr. Chairman, I am a strong supporter of H.R. 1776 and
commend my colleagues, the chairman of the committee, the gentleman
from Iowa (Mr. Leach); and my friend, the gentleman from New York (Mr.
LaFalce); along with my other good friend and colleague, the gentleman
from New York (Mr. Lazio) for their hard work on this bill which will
expand housing opportunities for all Americans.
While I support H.R. 1776 and its intentions to make affordable
homeownership available to more Americans, I think we can make this
bill a little better. I am pleased to join my colleagues, the gentleman
from Connecticut (Mr. Shays), the gentleman from New York (Mr. Nadler),
and the gentlewoman from Maryland (Mrs. Morella) in offering an
amendment to authorize the Housing Opportunities for People With AIDS,
also known as the HOPWA program, from $260 million to $292 million.
While new breakthrough drugs have extended the life of people living
with HIV and AIDS, there are still many affected by this disease who
are unable to work and who are too sick to provide for themselves.
These people have to make the decision to take life-extending and
lifesaving drugs or pay for a roof over their heads.
It is estimated that 60 percent of the people living with HIV/AIDS
require some sort of assistance during their course of illness. People
with HIV/AIDS have continually experienced housing discrimination, from
being thrown out of their current living situations to outright being
denied housing by some landlords. In my Congressional district, a group
called Steinway Child and Family Services provides what is one of the
largest confidential housing programs for people with AIDS that is
funded in part with HOPWA funding.
We cannot throw families out on the street, Mr. Chairman. HOPWA saves
taxpayers' money by allowing people to live in their own house or
apartment in a healthy, safe setting. We save money that would be spent
on acute care facilities to treat the same people.
This is what the gentlewoman from Maryland (Mrs. Morella) was talking
about. It costs the taxpayers over $1,000 a day to pay for Medicaid
treatment for homeless persons in a nursing home who are sick with
AIDS. That adds up to almost $400,000 a year. It costs the taxpayers
only $55 to a $110 a day to keep the same person in their own home or a
group care facility under the HOPWA program.
HOPWA makes sense. I urge my colleagues to support the Shays-Nadler-
Crowley-Morella amendment.
Mr. SHAYS. Mr. Chairman, I yield 30 seconds to the gentleman from
California (Mr. Cunningham), our distinguished Vietnam veteran.
Mr. CUNNINGHAM. Mr. Chairman, as a conservative Republican I rise in
strong support of the Shays-Nadler-Crowley-Morella amendment.
I am a member of the Subcommittee on Labor, Health and Human
Services, and Education of the Committee on Appropriations, and we
recently went to NIH. We saw a young man that had contracted HIV in
1989. Because of medicines, he has bought a home, he has hope in his
life, he has bought stocks and bonds, but he still has a difficult
time.
I think this is a noteworthy amendment, and I think fiscal
conservatives and people that care about people will realize this is a
well-intentioned amendment. I strongly support it.
Mr. SHAYS. Mr. Chairman, I yield 30 seconds to the gentlewoman from
Texas (Ms. Jackson-Lee).
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman for
yielding me this time, and I want to give my wholehearted support for
this outstanding amendment and to all those who have authored it.
There is nothing that lessens the lifetime of those with active HIV/
AIDS than not to have housing. In my own community of Houston, we know
there are at least 10,000 homeless persons on the streets every night.
Some of those, unfortunately, are suffering from HIV/AIDS.
To give clean, safe, secure housing in our communities and to provide
nonprofits who work with these individuals suffering from HIV/AIDS in
all of our communities, but particularly in the communities where it is
growing among our minority populations, Hispanics and Africans
Americans, this is a great opportunity. And I support the amendment,
and ask my colleagues to vote for it.
Mr. SHAYS. Mr. Chairman, may I ask how much time we have remaining?
The CHAIRMAN. The gentleman from Connecticut (Mr. Shays) has 2\1/2\
minutes left.
Mr. SHAYS. Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. Is there a Member in opposition?
Mr. LAZIO. Mr. Chairman, I rise in opposition to the amendment.
The CHAIRMAN. Is the gentleman opposed to the amendment?
Mr. LAZIO. Yes, I rise in opposition to the amendment.
The CHAIRMAN. The gentleman from New York (Mr. Lazio) is recognized
for 10 minutes.
Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.

[[Page H1916]]

Mr. Chairman, I do not think there is a Member of this House that is
a better or more sincere advocate for the homeless or for people who
have housing needs and who also suffer with AIDS than my good friend
from Connecticut (Mr. Shays), and I have enormous respect for him and
what he is trying to accomplish here.

{time} 1345

There is no doubt, there is no doubt that there is significant unmet
demand for housing opportunities for people who are living with AIDS,
and the need for supportive services, the need for those type of life-
sustaining supportive services, I think, for most of the folks who are
involved in the housing community without question.
I would say to the gentleman from Connecticut (Mr. Shays) that my
concern is only with the magnitude of the request in this amendment.
What I try to do and what I advocate for and what I think the House
generally does is to provide guidance in an authorization vehicle for
appropriators, but reasonable guidance, so that we will have the
credibility to actually get to where we want to go.
In this case, the authorization that is in the underlying bill is an
increase over existing dollars for HOPWA, meets the President's budget
request, and while there is a good case which has been made by the
gentleman from Connecticut (Mr. Shays) and others for increase, I am
concerned about the size of the increase, and the fact that we need to
live within our means.
I am wondering if I can enter into a colloquy with the gentleman from
Connecticut (Mr. Shays) on this because, again, while I have the utmost
respect not only for the gentleman, but what the gentleman is doing
here, I also am trying to keep in mind the fact that we have to offer
an authorization bill that is sustainable, not just this year or next
year, but over the years that follow through the appropriations
process.
I know the gentleman from Connecticut (Mr. Shays) has been a great
fiscal conservative, and the gentleman is also an advocate for this
program and for other housing programs.
I am wondering if there is some way that we can reach a reasonable
understanding that would meet our dual goals, if we can try and
compromise on this, which I do not think is a dirty word; I think it is
an honorable word.
Mr. SHAYS. Mr. Chairman, if the gentleman will yield, I would love to
respond by first saying the gentleman from New York (Chairman Lazio) is
very gracious in his words about me. This is an amendment truly offered
by the gentleman from New York (Mr. Nadler), the gentleman from New
York (Mr. Crowley) and the gentlewoman from Maryland (Mrs. Morella);
and they have been working on these issues for a number of years. I
know the gentleman from New York (Mr. Nadler), in particular, as well
as the gentlewoman from Maryland (Mrs. Morella), are aware of the
gentleman's concern that the appropriators may not provide the funds
necessary to meet the authorization.
Mr. Chairman, I would suggest that if my colleague thought that if we
were to reduce this amendment somewhat that the gentleman could be
supportive, the gentleman's support and obviously the support of the
gentleman from New York (Mr. Walsh) ultimately, while he cannot commit
to that now, would obviously be essential.
I am prepared without objection from my colleagues in this amendment
to offer a unanimous consent request.

Modification to Amendment No. 8 Offered by Mr. Shays

Mr. SHAYS. Mr. Chairman, I ask unanimous consent that our amendment
be modified in the form that I have placed at the desk.
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:

Modification to Amendment No. 8 offered by Mr. Shays:
In lieu of the matter proposed to be inserted, insert
``$275,000,000''.

The CHAIRMAN. Is there objection to the request of the gentleman from
Connecticut?
Mr. NADLER. Mr. Chairman, reserving the right to object, let me say
that we have worked with the gentleman from Connecticut (Mr. Shays) and
the gentlewoman from Maryland (Mrs. Morella); and they both have been
very active on this and very accommodating, and we on this side agree
with the modification. We have no objection.
Mr. Chairman, I withdraw my reservation of objection.
The CHAIRMAN. Is there objection to the request of the gentleman from
Connecticut?
Mr. LAZIO. Mr. Chairman, reserving the right to object, I would like
to yield to the gentleman from Connecticut (Mr. Shays), and I
appreciate the fact that he has made this unanimous consent request
which I support, and I think it is a very responsible and reasonable
suggestion that meets our dual imperatives of helping those most in
need, but also doing it in a fiscally responsible way.
I would support the amendment with the unanimous consent request.
Mr. SHAYS. Mr. Chairman, will the gentleman yield?
Mr. LAZIO. Further reserving the right to object, I yield to the
gentleman from Connecticut.
Mr. SHAYS. Mr. Chairman, I would feel out of place if I did not
mention my predecessor, Stuart B. McKinney, died of AIDS-related
pneumonia, and his wife, Lucy, has carried on his work as chairman of
the Stuart B. McKinney Foundation dedicated to helping people living
with AIDS.
In his memory, I feel very motivated to offer this amendment and
appreciate my colleague for accepting the modified version of the
amendment and, particularly, appreciate my colleagues, the gentleman
from New York (Mr. Nadler), the gentleman from New York (Mr. Crowley)
and the gentlewoman from Maryland (Mrs. Morella), for their
participation.
Mr. LAZIO. Mr. Chairman, I withdraw my reservation of objection.
The CHAIRMAN. Is there objection to the request of the gentleman from
Connecticut?
There was no objection.
The CHAIRMAN. The amendment is modified.
The Committee will rise informally.
The SPEAKER pro tempore (Mrs. Morella) assumed the chair.

____________________