[Congressional Record Volume 146, Number 134 (Tuesday, October 24, 2000)]
[House]
[Pages H10655-H10690]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000
Mr. LEACH. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 1452) to modernize the requirements under the National
Manufactured Housing Construction and Safety Standards Act of 1974 and
to establish a balanced consensus process for the development,
revision, and interpretation of Federal construction and safety
standards for manufactured homes, as amended.
The Clerk read as follows:
S. 1452
SEC. 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. Grants for regulatory barrier removal strategies.
Sec. 103. Regulatory barriers clearinghouse.
TITLE II--HOMEOWNERSHIP FOR WORKING FAMILIES
Sec. 201. Reduced downpayment requirements for loans for teachers,
public safety officers, and other uniformed municipal
employees.
Sec. 202. Home equity conversion mortgages.
Sec. 203. Law enforcement officer homeownership pilot program.
Sec. 204. Assistance for self-help housing providers.
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--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
Sec. 401. Short title.
Sec. 402. Changes in amortization schedule.
Sec. 403. Deletion of ambiguous references to residential mortgages.
Sec. 404. Cancellation rights after cancellation date.
Sec. 405. Clarification of cancellation and termination issues and
lender paid mortgage insurance disclosure requirements.
Sec. 406. Definitions.
TITLE V--NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A--Native American Housing
Sec. 501. Lands title report commission.
Sec. 502. Loan guarantees.
Sec. 503. Native American housing assistance.
Subtitle B--Native Hawaiian Housing
Sec. 511. Short title.
Sec. 512. Findings.
Sec. 513. Housing assistance.
Sec. 514. Loan guarantees.
TITLE VI--MANUFACTURED HOUSING IMPROVEMENT
Sec. 601. Short title; references.
Sec. 602. Findings and purposes.
Sec. 603. Definitions.
Sec. 604. Federal manufactured home construction and safety standards.
Sec. 605. Abolishment of National Manufactured Home Advisory Council;
manufactured home installation.
Sec. 606. Public information.
Sec. 607. Research, testing, development, and training.
Sec. 608. Prohibited acts.
Sec. 609. Fees.
Sec. 610. Dispute resolution.
Sec. 611. Elimination of annual reporting requirement.
Sec. 612. Effective date.
Sec. 613. Savings provisions.
TITLE VII--RURAL HOUSING HOMEOWNERSHIP
Sec. 701. Guarantees for refinancing of rural housing loans.
Sec. 702. Promissory note requirement under housing repair loan
program.
Sec. 703. Limited partnership eligibility for farm labor housing loans.
Sec. 704. Project accounting records and practices.
Sec. 705. Definition of rural area.
Sec. 706. Operating assistance for migrant farmworkers projects.
Sec. 707. Multifamily rental housing loan guarantee program.
Sec. 708. Enforcement provisions.
Sec. 709. Amendments to title 18 of United States Code.
TITLE VIII--HOUSING FOR ELDERLY AND DISABLED FAMILIES
Sec. 801. Short title.
Sec. 802. Regulations.
Sec. 803. Effective date.
Subtitle A--Refinancing for Section 202 Supportive Housing for the
Elderly
Sec. 811. Prepayment and refinancing.
Subtitle B--Authorization of Appropriations for Supportive Housing for
the Elderly and Persons With Disabilities
Sec. 821. Supportive housing for elderly persons.
Sec. 822. Supportive housing for persons with disabilities.
Sec. 823. Service coordinators and congregate services for elderly and
disabled housing.
Subtitle C--Expanding Housing Opportunities for the Elderly and Persons
With Disabilities
Part 1--Housing for the Elderly
Sec. 831. Eligibility of for-profit limited partnerships.
Sec. 832. Mixed funding sources.
Sec. 833. Authority to acquire structures.
Sec. 834. Use of project reserves.
Sec. 835. Commercial activities.
Part 2--Housing for Persons With Disabilities
Sec. 841. Eligibility of for-profit limited partnerships.
Sec. 842. Mixed funding sources.
Sec. 843. Tenant-based assistance.
Sec. 844. Use of project reserves.
Sec. 845. Commercial activities.
Part 3--Other Provisions
Sec. 851. Service coordinators.
Subtitle D--Preservation of Affordable Housing Stock
Sec. 861. Section 236 assistance.
Subtitle E--Mortgage Insurance for Health Care Facilities
Sec. 871. Rehabilitation of existing hospitals, nursing homes, and
other facilities.
Sec. 872. New integrated service facilities.
Sec. 873. Hospitals and hospital-based integrated service facilities.
TITLE IX--OTHER RELATED HOUSING PROVISIONS
Sec. 901. Extension of loan term for manufactured home lots.
Sec. 902. Use of section 8 vouchers for opt-outs.
Sec. 903. Maximum payment standard for enhanced vouchers.
Sec. 904. Use of section 8 assistance by ``grand-families'' to rent
dwelling units in assisted projects.
TITLE X--BANKING AND HOUSING AGENCY REPORTS
Sec. 1001. Short title.
Sec. 1002. Amendments to the Federal Reserve Act.
Sec. 1003. Preservation of certain reporting requirements.
Sec. 1004. Coordination of reporting requirements.
Sec. 1005. Elimination of certain reporting requirements.
TITLE XI--NUMISMATIC COINS
Sec. 1101. Short title.
[[Page H10656]]
Sec. 1102. Clarification of Mint's authority.
Sec. 1103. Additional report requirement.
TITLE XII--FINANCIAL REGULATORY RELIEF
Sec. 1200. Short title.
Subtitle A--Improving Monetary Policy and Financial Institution
Management Practices
Sec. 1201. Repeal of savings association liquidity provision.
Sec. 1202. Noncontrolling investments by savings association holding
companies.
Sec. 1203. Repeal of deposit broker notification and recordkeeping
requirement.
Sec. 1204. Expedited procedures for certain reorganizations.
Sec. 1205. National bank directors.
Sec. 1206. Amendment to National Bank Consolidation and Merger Act.
Sec. 1207. Loans on or purchases by institutions of their own stock;
affiliations.
Sec. 1208. Purchased mortgage servicing rights.
Subtitle B--Streamlining Activities of Institutions
Sec. 1211. Call report simplification.
Subtitle C--Streamlining Agency Actions
Sec. 1221. Elimination of duplicative disclosure of fair market value
of assets and liabilities.
Sec. 1222. Payment of interest in receiverships with surplus funds.
Sec. 1223. Repeal of reporting requirement on differences in accounting
standards.
Sec. 1224. Agency review of competitive factors in Bank Merger Act
filings.
Subtitle D--Miscellaneous
Sec. 1231. Federal Reserve Board buildings.
Sec. 1232. Positions of Board of Governors of Federal Reserve System on
the Executive Schedule.
Sec. 1233. Extension of time.
Subtitle E--Technical Corrections
Sec. 1241. Technical correction relating to deposit insurance funds.
Sec. 1242. Rules for continuation of deposit insurance for member banks
converting charters.
Sec. 1243. Amendments to the Revised Statutes of the United States.
Sec. 1244. Conforming change to the International Banking Act of 1978.
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. 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) such sums as may be
necessary for each of fiscal years 2001, 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. 103. 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 __09 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 FOR WORKING FAMILIES
SEC. 201. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR
TEACHERS, PUBLIC SAFETY OFFICERS, AND OTHER
UNIFORMED MUNICIPAL EMPLOYEES.
(a) In General.--Section 203(b) of the National Housing Act
(12 U.S.C. 1709(b)) is amended by adding at the end the
following new paragraph:
``(11) Reduced downpayment requirements for teachers and
uniformed municipal employees.--
[[Page H10657]]
``(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 part- or full-time basis as: (aa) a
teacher or administrator in a public or private school that
provides elementary or secondary education, as determined
under State law, except that elementary education shall
include pre-Kindergarten education, and except that secondary
education shall not include any education beyond grade 12;
(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); or (cc) a uniformed employee of a unit
of general local government, including sanitation and other
maintenance workers; 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);
``(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);
``(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; or
``(III) in the case of a mortgage of a mortgagor described
in clause (i)(I)(cc), the unit of general local government
that employs the mortgagor; and
``(iii) that is closed on or before September 30, 2003.''.
(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)(11)(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)(11)(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. 202. 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.''.
(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 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 to Fund
Long-Term Care Insurance.--
(1) In general.--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 for Mortgages to Fund
Long-Term Care Insurance.--
``(1) In general.--In the case of any mortgage insured
under this section under which the total amount (except as
provided in paragraph (2)) of all future payments described
in subsection (b)(3) will be used only for costs of a
qualified long-term care insurance contract 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.
[[Page H10658]]
``(2) Authority to Refinance Existing Mortgage and Finance
Closing Costs.--A mortgage described in paragraph (1) may
provide financing of amounts that are used to satisfy
outstanding mortgage obligations (in accordance with such
limitations as the Secretary shall prescribe) and 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.
``(3) Definition.--For purposes of this subsection, the
term `qualified long-term care insurance contract' has the
meaning given such term in section 7702B of the Internal
Revenue Code of 1986 (26 U.S.C. 7702B)), except that such
contract shall also meet the requirements of--
``(A) sections 9 (relating to disclosure), 24 (relating to
suitability), and 26 (relating to contingent nonforfeiture)
of the long-term care insurance model regulation promulgated
by the National Association of Insurance Commissioners (as
adopted as of September 2000); and
``(B) section 8 (relating to contingent nonforfeiture) of
the long-term care insurance model Act promulgated by the
National Association of Insurance Commissioners (as adopted
as of September 2000).''.
(2) Applicability.--The provisions of section 255(l) of the
National Housing Act (as added by paragraph (1) of this
subsection) shall apply only to mortgages closed on or after
April 1, 2001.
(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. 203. 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 one
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. 204. 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 such sums as may
be necessary for each of fiscal years 2001, 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--
(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 five 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 five 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''.
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
[[Page H10659]]
family that purchases a dwelling unit (including a dwelling
unit under a lease-purchase agreement) that will be owned by
one 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 section 8 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 such sums as may be necessary 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.
TITLE IV--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
SEC. 401. SHORT TITLE.
This title may be cited as the ``Private Mortgage Insurance
Technical Corrections and Clarification Act''.
SEC. 402. 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
[[Page H10660]]
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. 403. 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 the preceding
provisions 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. 404. 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 the
preceding provisions of this title), by striking ``subsection
(a)(3)'' and inserting ``subsection (a)(4)''.
SEC. 405. 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
(B) by inserting ``, or (ii) the date that the mortgagor
submits a request for cancellation under section 3(a)(1)''
before the semicolon; and
(2) in subparagraph (B)--
(A) by inserting ``the later of (i)'' before ``the date'';
and
(B) 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. 406. 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 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 the preceding
provisions of this title) 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 the preceding provisions of this title) 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 the preceding
provisions of this title) by striking ``primary'' and
inserting ``principal''; and
(2) in paragraph (15) (as so redesignated by the preceding
provisions of this title) by striking ``primary'' and
inserting ``principal'';
TITLE V--NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A--Native American Housing
SEC. 501. 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) Four members shall be appointed by the President.
(B) Four members shall be appointed by the Chairperson of
the Committee on Banking and Financial Services of the House
of Representatives.
(C) Four 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 eight
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
[[Page H10661]]
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.--There is authorized
to be appropriated to carry out this section such sums as may
be necessary, and any amounts appropriated pursuant to this
subsection shall remain available until expended.
(h) Termination.--The Commission shall terminate 1 year
after the date of the initial meeting of the Commission.
SEC. 502. 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. 503. 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
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.
[[Page H10662]]
``(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--
``(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) 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.''.
(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).''.
Subtitle B--Native Hawaiian Housing
SEC. 511. SHORT TITLE.
This subtitle may be cited as the ``Hawaiian Homelands
Homeownership Act of 2000''.
SEC. 512. 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 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
[[Page H10663]]
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 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. 513. 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) two or more elderly persons or near-elderly persons,
as the case may be, living together; and
``(ii) one or more persons described in clause (i) living
with one 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 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.
[[Page H10664]]
``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) Five-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) One-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
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;
[[Page H10665]]
``(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.
``(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
[[Page H10666]]
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 the 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 this title, the Director shall
develop policies governing the management and maintenance of
housing assisted with grant amounts under this title.
[[Page H10667]]
``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 the 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 the 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 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
[[Page H10668]]
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 sums as may be necessary for each of fiscal years 2001,
2002, 2003, 2004, and 2005.''.
[[Page H10669]]
SEC. 514. 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 one 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;
``(ii) bar such lender or holder from acquiring additional
loans guaranteed under this section; and
[[Page H10670]]
``(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 one 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 of title VI of the Civil Rights
Act of 1964 (42 U.S.C. 2000d et seq.) or of the Fair Housing
[[Page H10671]]
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.''.
TITLE VI--MANUFACTURED HOUSING IMPROVEMENT
SEC. 601. SHORT TITLE; REFERENCES.
(a) Short Title.--This title may be cited as the
``Manufactured Housing Improvement Act of 2000''.
(b) References.--Whenever in this title an amendment is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to that section or other provision of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5401 et seq.).
SEC. 602. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as follows:
``SEC. 602. FINDINGS AND PURPOSES.
``(a) Findings.--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 protect the quality, durability, safety, and
affordability of manufactured homes;
``(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 for manufactured homes;
``(4) to encourage innovative and cost-effective
construction techniques for manufactured homes;
``(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;
``(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. 603. 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:
``(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 through a 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) `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;
``(20) `monitoring' 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 promulgated under this
title, giving due consideration to the recommendations of the
consensus committee under 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
``(21) `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, including the inspection of homes in
the plant.''.
(b) Conforming Amendments.--The National Manufactured
Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5401 et seq.) 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. 604. 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:
``(a) Establishment.--
``(1) Authority.--The Secretary shall establish, by order,
appropriate Federal manufactured home construction and safety
standards, each of which--
``(A) shall--
``(i) be reasonable and practical;
``(ii) meet high standards of protection consistent with
the purposes of this title; and
``(iii) be performance-based and objectively stated, unless
clearly inappropriate; 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
of 2000, 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) recommend 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 subsection
(b);
``(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; and
``(iv) be deemed to be an advisory committee not composed
of Federal employees.
``(B) Membership.--The consensus committee shall be
composed of--
[[Page H10672]]
``(i) 21 voting members appointed by the Secretary, after
consideration of the recommendations of 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 nonvoting member appointed by the Secretary to
represent the Secretary on the consensus committee.
``(C) Disapproval.--The Secretary shall state, in writing,
the reasons for failing to appoint any individual recommended
under paragraph (2)(A)(ii)(I).
``(D) Selection procedures and requirements.--Each member
of the consensus committee shall be appointed in accordance
with selection procedures, which shall be based on the
procedures for consensus committees promulgated by the
American National Standards Institute (or successor
organization), except that the American National Standards
Institute interest categories shall be modified for purposes
of this paragraph to ensure equal representation on the
consensus committee of the following interest categories:
``(i) Producers.--Seven producers or retailers of
manufactured housing.
``(ii) Users.--Seven 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.--Seven
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, the Secretary, in
appointing the members of the consensus committee--
``(I) 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) 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 the
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.--Each individual described in
clause (i) shall be subject to a ban disallowing compensation
from the manufactured housing industry during the period of,
and during the 1-year following, the membership of the
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 cause to be published in the
Federal Register advance notice of each such meeting. All
meetings of the consensus committee shall be open to the
public.
``(ii) Reimbursement.--Members of the consensus committee
in attendance at meetings of the consensus committee 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) Administration.--The consensus committee and the
administering organization shall--
``(i) operate in conformance with the procedures
established by the American National Standards Institute for
the development and coordination of American National
Standards; and
``(ii) apply to the American National Standards Institute
and take such other actions as may be necessary to obtain
accreditation from the American National Standards Institute.
``(I) Staff and technical support.--The administering
organization shall, upon the request of the consensus
committee--
``(i) provide reasonable staff resources to the consensus
committee; and
``(ii) furnish technical support in a timely manner to any
of the interest categories described in subparagraph (D)
represented on the consensus committee, if--
``(I) the support is necessary to ensure the informed
participation of the consensus committee members; and
``(II) the costs of providing the support are reasonable.
``(J) Date of initial appointments.--The initial
appointments of all of the members of the consensus committee
shall be completed not later than 90 days after the date on
which a contractual agreement under paragraph (2)(A) is
entered into 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, if approved in a
vote of the consensus committee by \2/3\ 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, cause such proposed revised standard to be
published in the Federal Register for notice and comment in
accordance with section 553 of title 5, United States Code.
Unless clause (ii) applies, the Secretary shall provide an
opportunity for public comment on such proposed revised
standard in accordance with such section 553 and any such
comments shall be submitted directly to the consensus
committee, without delay.
``(ii) Publication of rejected proposed revised
standards.--If the Secretary rejects the proposed revised
standard, the Secretary shall cause to be published in the
Federal Register the rejected proposed revised standard, 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 revision
proposed by the consensus committee, which the Secretary
shall, not later than 30 calendar days after receipt, cause
to be published in the Federal Register a notice of the
recommended revisions of the consensus committee to the
standards, 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
standards.--If the Secretary rejects the proposed revised
standard, the Secretary shall cause to be published in the
Federal Register the rejected proposed revised standard, the
reasons for rejection, and any recommended modifications set
forth.
``(5) Review by the secretary.--
``(A) In general.--The Secretary shall either adopt,
modify, or reject a standard, as submitted by the consensus
committee under paragraph (4)(A).
``(B) Timing.--Not later than 12 months after the date on
which a standard is submitted to the Secretary by the
consensus committee, the Secretary shall take action
regarding such standard under subparagraph (C).
``(C) Procedures.--If the Secretary--
``(i) adopts a standard recommended by the consensus
committee, the Secretary shall--
``(I) issue a final order without further rulemaking; and
``(II) cause the final order to be published in the Federal
Register;
``(ii) determines that any standard should be rejected, the
Secretary shall--
``(I) reject the standard; and
``(II) cause to be published in the Federal Register a
notice to that effect, together with the reason or reasons
for rejecting the proposed standard; or
``(iii) determines that a standard recommended by the
consensus committee should be modified, the Secretary shall--
``(I) cause to be published in the Federal Register the
proposed modified standard, 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 cause notice of the action
to be published in the Federal Register before the expiration
of the 12-month period beginning on the date on which the
proposed revised standard is submitted to the Secretary under
paragraph (4)(A)--
``(A) the Secretary shall appear in person before the
appropriate housing and appropriations subcommittees and
committees of the House of Representatives and the Senate
(referred to in this paragraph as the `committees') on a date
or dates to be specified by the committees, but in no event
later than 30 days after the expiration of that 12-month
period, and shall state before the committees the reasons for
failing to take final action as required under paragraph (5);
and
``(B) if the Secretary does not appear in person as
required under subparagraph (A), the Secretary shall
thereafter, and until such time as the Secretary does appear
as required under subparagraph (A), be prohibited from
expending any funds collected under authority of this title
in an amount greater than that collected and expended in the
fiscal year immediately preceding the date of enactment of
the Manufactured Housing Improvement Act of 2000, indexed for
inflation as determined by the Congressional Budget Office.
``(b) Other Orders.--
[[Page H10673]]
``(1) Regulations.--The Secretary may issue procedural and
enforcement regulations and revisions to existing 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.--Not later than 120 days after the
date on which the Secretary receives a proposed regulation or
interpretative bulletin submitted by the consensus committee,
the Secretary shall--
``(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 to the consensus committee a written
explanation of the reasons for rejection; and
``(ii) cause to be published in the Federal Register the
rejected proposed regulation or interpretive bulletin, the
reasons for rejection, and any recommended modifications set
forth.
``(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 that jeopardizes the public health or safety,
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 action is
necessary and all supporting documentation; and
``(B) issues the order after notice and an opportunity for
public comment in accordance with section 553 of title 5,
United States Code, and causes the order to be published in
the Federal Register.
``(6) Changes.--Any statement of policies, practices, or
procedures relating to construction and safety standards,
regulations, inspections, monitoring, or other enforcement
activities that constitutes a statement of general or
particular applicability to implement, interpret, or
prescribe law or policy by the Secretary is subject to
subsection (a) or this subsection. Any change adopted in
violation of subsection (a) or this subsection is void.
``(7) Transition.--Until the date on which the consensus
committee is appointed pursuant to section 604(a)(3), the
Secretary may issue proposed orders, pursuant to notice and
comment in accordance with section 553 of title 5, United
States Code, 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 under this
section 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. 605. 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 practicable, taking into
account the factors described in section 604(e), be
consistent with--
``(A) the manufactured 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, to the maximum extent practicable, taking into
account the factors described in section 604(e), be
consistent with--
``(A) the manufactured 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).
``(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.
``(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
of 2000, 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 of 2000.
``(2) Installation standards.--
``(A) Establishment of installation program.--Not later
than the expiration of the 5-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) of this paragraph.
``(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.
[[Page H10674]]
``(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 by the Secretary under subsection (b)(2); 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 manufactured homes that equals
or exceeds the protection provided by the model manufactured
home installation standards established by the Secretary
under subsection (b)(2);
``(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 of
2000, provides for an installation program established by
State law that meets the requirements of section
605(c)(3);''.
SEC. 606. 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. 607. 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:
``(4) encouraging the government-sponsored housing entities
to actively develop and implement secondary market
securitization programs for the 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:
``(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 loan.--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) is otherwise insured under the National Housing Act
and made for or in connection with a manufactured home.''.
SEC. 608. 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.''.
SEC. 609. FEES.
Section 620 (42 U.S.C. 5419) is amended to read as follows:
``SEC. 620. AUTHORITY TO COLLECT FEE.
``(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 a reasonable fee, 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, which 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
within the Department to administer the manufactured housing
program;
``(D) providing the funding for salaries and expenses of
employees of the Department to carry out the manufactured
housing program;
``(E) administering the consensus committee as set forth in
section 604;
``(F) facilitating the acceptance of the quality,
durability, safety, and affordability of manufactured housing
within the Department; and
``(G) the administration and enforcement of the
installation standards authorized by section 605 in States in
which the Secretary is required to implement an installation
program after the expiration of the 5-year period set forth
in section 605(c)(2)(B), and the administration and
enforcement of a dispute resolution program described in
section 623(c)(12) in States in which the Secretary is
required to implement such a program after the expiration of
the 5-year period set forth in section 623(g)(2); and
``(2) subject to subsection (e), use amounts from any fee
collected under paragraph (1) of this subsection to pay
expenses referred to in that paragraph, which shall be exempt
and separate from any limitations on the Department regarding
full-time equivalent positions and travel.
``(b) Contractors.--In using amounts from any fee collected
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.--No amount from any fee collected
under this section may 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 the Manufactured Housing Improvement Act
of 2000.
``(d) Modification.--Beginning on the date of enactment of
the Manufactured Housing Improvement Act of 2000, the amount
of any fee collected under this section may only be
modified--
``(1) as specifically authorized in advance in an annual
appropriations Act; and
``(2) 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 amounts from any fee
collected under this section. Such amounts shall be held in
trust for use only as provided in this title.
``(2) Appropriation.--Amounts from any fee collected under
this section shall be available for expenditure only to the
extent approved in advance in an annual appropriations Act.
Any change in the expenditure of such amounts shall be
specifically authorized in advance in an annual
appropriations Act.
``(3) Payments to states.--On and after the effective date
of the Manufactured Housing Improvement Act of 2000, the
Secretary shall continue to fund the States having approved
State plans in the amounts which are not less than the
allocated amounts, based on the fee distribution system in
effect on the day before such effective date.''.
SEC. 610. DISPUTE RESOLUTION.
Section 623(c) (42 U.S.C. 5422(c)) is amended--
(1) by inserting after paragraph (11) (as added by the
preceding provisions of this title) 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 of
2000, 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
[[Page H10675]]
enactment of the Manufactured Housing Improvement Act of
2000, 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)
of this subsection. The order establishing the dispute
resolution program shall be issued after notice and
opportunity for public comment in accordance with section 553
of title 5, United States Code.
``(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 paragraph (2), 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. 611. ELIMINATION OF ANNUAL REPORTING REQUIREMENT.
The National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5401 et seq.) 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. 612. 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 issued under the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5401
et seq.) and published as a proposed rule pursuant to section
553 of title 5, United States Code, on or before that date of
enactment.
SEC. 613. SAVINGS PROVISIONS.
(a) Standards and Regulations.--The Federal manufactured
home construction and safety standards (as such term is
defined in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974) and all
regulations pertaining thereto in effect on the day before
the date of enactment of this Act shall apply until the
effective date of a standard or regulation modifying or
superseding the existing standard or regulation that 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 until the earlier of--
(1) the expiration of the 2-year period beginning on the
date of enactment of this Act; or
(2) the expiration of the contract term.
TITLE VII--RURAL HOUSING HOMEOWNERSHIP
SEC. 701. GUARANTEES FOR REFINANCING OF RURAL HOUSING LOANS.
Section 502(h) of the Housing Act of 1949 (42 U.S.C.
1472(h)) is amended by adding at the end the following new
paragraph:
``(13) Guarantees for refinancing loans.--
``(A) In General.--Upon the request of the borrower, the
Secretary shall, to the extent provided in appropriation Acts
and subject to subparagraph (F), guarantee a loan that is
made to refinance an existing loan that is made under this
section or guaranteed under this subsection, and that the
Secretary determines complies with the requirements of this
paragraph.
``(B) Interest rate.--To be eligible for a guarantee under
this paragraph, the refinancing loan shall have a rate of
interest that is fixed over the term of the loan and does not
exceed the interest rate of the loan being refinanced.
``(C) Security.--To be eligible for a guarantee under this
paragraph, the refinancing loan shall be secured by the same
single-family residence as was the loan being refinanced,
which shall be owned by the borrower and occupied by the
borrower as the principal residence of the borrower.
``(D) Amount.--To be eligible for a guarantee under this
paragraph, the principal obligation under the refinancing
loan shall not exceed an amount equal to the sum of the
balance of the loan being refinanced and such closing costs
as may be authorized by the Secretary, which shall include a
discount not exceeding 2 basis points and an origination fee
not exceeding such amount as the Secretary shall prescribe.
``(E) Other requirements.--The provisions of the last
sentence of paragraph (1) and paragraphs (2), (5), (6)(A),
(7), and (9) shall apply to loans guaranteed under this
paragraph, and no other provisions of paragraphs (1) through
(12) shall apply to such loans.
``(F) Authority to establish limitation.--The Secretary may
establish limitations on the number of loans guaranteed under
this paragraph, which shall be based on market conditions and
other factors as the Secretary considers appropriate.''.
SEC. 702. 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. 703. 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. 704. 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. 705. DEFINITION OF RURAL AREA.
The second sentence of section 520 of the Housing Act of
1949 (42 U.S.C. 1490) is amended--
(1) by striking ``1990 decennial census'' and inserting
``1990 or 2000 decennial census''; and
(2) by striking ``year 2000'' and inserting ``year 2010''.
SEC. 706. 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. 707. 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 tribe,''
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
[[Page H10676]]
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 tribe.--The term `Indian tribe' means--
``(A) any Indian tribe, band, nation, or other organized
group or community of Indians, including any Alaska Native
village or regional or village corporation, as defined by or
established pursuant to the Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.), that is recognized as eligible
for the special programs and services provided by the United
States to Indians because of their status as Indians pursuant
to the Indian Self-Determination and Education Assistance Act
of 1975 (25 U.S.C. 450 et seq.); or
``(B) any entity established by the governing body of an
Indian tribe described in subparagraph (A) 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; and
(8) by adding at the end the following new subsections:
``(u) Fee Authority.--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.
``(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. 708. 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 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. 709. 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 VIII--HOUSING FOR ELDERLY AND DISABLED FAMILIES
SEC. 801. SHORT TITLE.
This title may be cited as the ``Affordable Housing for
Seniors and Families Act''.
SEC. 802. REGULATIONS.
The Secretary of Housing and Urban Development (referred to
in this title as the ``Secretary'') shall issue any
regulations to carry out this title and the amendments made
by this title that the Secretary determines may or will
affect tenants of federally assisted housing only after
notice and opportunity for public comment in accordance with
the procedure under section 553 of title 5, United States
Code, applicable to substantive rules (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).
Notice of such proposed rulemaking shall be provided by
publication in the Federal Register. In issuing such
regulations, the Secretary shall take such actions as may be
necessary to ensure that such tenants are notified of, and
provided an opportunity to participate in, the rulemaking, as
required by such section 553.
SEC. 803. EFFECTIVE DATE.
(a) In General.--The provisions of this title and the
amendments made by this title are effective as of the date of
enactment of this Act, unless such provisions or amendments
specifically provide for effectiveness or applicability upon
another date certain.
(b) Effect of Regulatory Authority.--Any authority in this
title or the amendments made by this title to issue
regulations, and any specific requirement to issue
regulations by a date certain, may not be construed to affect
the effectiveness or applicability of the provisions of this
title or the amendments made by this title under such
provisions and amendments and subsection (a) of this section.
Subtitle A--Refinancing for Section 202 Supportive Housing for the
Elderly
SEC. 811. PREPAYMENT AND REFINANCING.
(a) Approval of Prepayment of Debt.--Upon request of the
project sponsor of a
[[Page H10677]]
project assisted with a loan under section 202 of the Housing
Act of 1959 (as in effect before the enactment of the
Cranston-Gonzalez National Affordable Housing Act), the
Secretary shall approve the prepayment of any indebtedness to
the Secretary relating to any remaining principal and
interest under the loan as part of a prepayment plan under
which--
(1) the project sponsor agrees to operate the project until
the maturity date of the original loan under terms at least
as advantageous to existing and future tenants as the terms
required by the original loan agreement or any rental
assistance payments contract under section 8 of the United
States Housing Act of 1937 (or any other rental housing
assistance programs of the Department of Housing and Urban
Development, including the rent supplement program under
section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s)) relating to the project; and
(2) the prepayment may involve refinancing of the loan if
such refinancing results in a lower interest rate on the
principal of the loan for the project and in reductions in
debt service related to such loan.
(b) Sources of Refinancing.--In the case of prepayment
under this section involving refinancing, the project sponsor
may refinance the project through any third party source,
including financing by State and local housing finance
agencies, use of tax-exempt bonds, multi-family mortgage
insurance under the National Housing Act, reinsurance, or
other credit enhancements, including risk sharing as provided
under section 542 of the Housing and Community Development
Act of 1992 (12 U.S.C. 1707 note). For purposes of
underwriting a loan insured under the National Housing Act,
the Secretary may assume that any section 8 rental assistance
contract relating to a project will be renewed for the term
of such loan.
(c) Use of Unexpended Amounts.--Upon execution of the
refinancing for a project pursuant to this section, the
Secretary shall make available at least 50 percent of the
annual savings resulting from reduced section 8 or other
rental housing assistance contracts in a manner that is
advantageous to the tenants, including--
(1) not more than 15 percent of the cost of increasing the
availability or provision of supportive services, which may
include the financing of service coordinators and congregate
services;
(2) rehabilitation, modernization, or retrofitting of
structures, common areas, or individual dwelling units;
(3) construction of an addition or other facility in the
project, including assisted living facilities (or, upon the
approval of the Secretary, facilities located in the
community where the project sponsor refinances a project
under this section, or pools shared resources from more than
1 such project); or
(4) rent reduction of unassisted tenants residing in the
project according to a pro rata allocation of shared savings
resulting from the refinancing.
(d) Use of Certain Project Funds.--The Secretary shall
allow a project sponsor that is prepaying and refinancing a
project under this section--
(1) to use any residual receipts held for that project in
excess of $500 per individual dwelling unit for not more than
15 percent of the cost of activities designed to increase
the availability or provision of supportive services; and
(2) to use any reserves for replacement in excess of $1,000
per individual dwelling unit for activities described in
paragraphs (2) and (3) of subsection (c).
(e) Budget Act Compliance.--This section shall be effective
only to extent or in such amounts that are provided in
advance in appropriation Acts.
Subtitle B--Authorization of Appropriations for Supportive Housing for
the Elderly and Persons With Disabilities
SEC. 821. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.
Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is
amended by adding at the end the following:
``(m) Authorization of Appropriations.--There are
authorized to be appropriated for providing assistance under
this section such sums as may be necessary for each of fiscal
years 2001, 2002, and 2003. Of the amount provided in
appropriation Acts for assistance under this section in each
such fiscal year, 5 percent shall be available only for
providing assistance in accordance with the requirements
under subsection (c)(4) (relating to matching funds), except
that if there are insufficient eligible applicants for such
assistance, any amount remaining shall be used for assistance
under this section.''.
SEC. 822. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.
Section 811 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013) is amended by striking
subsection (m) and inserting the following:
``(m) Authorization of Appropriations.--There are
authorized to be appropriated for providing assistance under
this section such sums as may be necessary for each of fiscal
years 2001, 2002, and 2003. Of the amount provided in
appropriation Acts for assistance under this section in each
such fiscal year, 5 percent shall be available only for
providing assistance in accordance with the requirements
under subsection (d)(5) (relating to matching funds), except
that if there are insufficient eligible applicants for such
assistance, any amount remaining shall be used for assistance
under this section.''.
SEC. 823. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR
ELDERLY AND DISABLED HOUSING.
There are authorized to be appropriated to the Secretary
such sums as may be necessary for each of fiscal years 2001,
2002, and 2003, for the following purposes:
(1) Grants for service coordinators for certain federally
assisted multifamily housing.--For grants under section 676
of the Housing and Community Development Act of 1992 (42
U.S.C. 13632) for providing service coordinators.
(2) Congregate services for federally assisted housing.--
For contracts under section 802 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8011) to provide
congregate services programs for eligible residents of
eligible housing projects under subparagraphs (B) through (D)
of subsection (k)(6) of such section.
Subtitle C--Expanding Housing Opportunities for the Elderly and Persons
With Disabilities
PART 1--HOUSING FOR THE ELDERLY
SEC. 831. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.
Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended by inserting after subparagraph (C)
the following:
``Such term includes a for-profit limited partnership the
sole general partner of which is an organization meeting the
requirements under subparagraphs (A), (B), and (C), or a
corporation wholly owned and controlled by an organization
meeting the requirements under subparagraphs (A), (B), and
(C).''.
SEC. 832. MIXED FUNDING SOURCES.
Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(6)) is amended--
(1) by striking ``non-Federal sources'' and inserting
``sources other than this section''; and
(2) by adding at the end the following new sentence:
``Notwithstanding any other provision of law, assistance
amounts provided under this section may be treated as amounts
not derived from a Federal grant.''.
SEC. 833. AUTHORITY TO ACQUIRE STRUCTURES.
Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is
amended--
(1) in subsection (b), by striking ``from the Resolution
Trust Corporation''; and
(2) in subsection (h)(2)--
(A) in the paragraph heading, by striking ``RTC
properties'' and inserting ``Acquisition''; and
(B) by striking ``from the Resolution'' and all that
follows through ``Insurance Act''.
SEC. 834. USE OF PROJECT RESERVES.
Section 202(j) of the Housing Act of 1959 (12 U.S.C.
1701q(j)) is amended by adding at the end the following:
``(8) Use of project reserves.--Amounts for project
reserves for a project assisted under this section may be
used for costs, subject to reasonable limitations as the
Secretary determines appropriate, for reducing the number of
dwelling units in the project. Such use shall be subject to
the approval of the Secretary to ensure that the use is
designed to retrofit units that are currently obsolete or
unmarketable.''.
SEC. 835. COMMERCIAL ACTIVITIES.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended by adding at the end the following:
``Neither this section nor any other provision of law may be
construed as prohibiting or preventing the location and
operation, in a project assisted under this section, of
commercial facilities for the benefit of residents of the
project and the community in which the project is located,
except that assistance made available under this section may
not be used to subsidize any such commercial facility.''.
PART 2--HOUSING FOR PERSONS WITH DISABILITIES
SEC. 841. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.
Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C.
8013(k)(6)) is amended by inserting after subparagraph (D)
the following:
``Such term includes a for-profit limited partnership the
sole general partner of which is an organization meeting the
requirements under subparagraphs (A), (B), (C), and (D) or a
corporation wholly owned and controlled by an organization
meeting the requirements under subparagraphs (A), (B), (C),
and (D).''.
SEC. 842. MIXED FUNDING SOURCES.
Section 811(h)(5) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amended--
(1) by striking ``non-Federal sources'' and inserting
``sources other than this section''; and
(2) by adding at the end the following new sentence:
``Notwithstanding any other provision of law, assistance
amounts provided under this section may be treated as amounts
not derived from a Federal grant.''.
SEC. 843. TENANT-BASED ASSISTANCE.
Section 811 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013) is amended--
(1) in subsection (d), by striking paragraph (4) and
inserting the following:
``(4) Tenant-based rental assistance.--
``(A) Administering entities.--Tenant-based rental
assistance provided under subsection (b)(1) may be provided
only through a public housing agency that has submitted and
had approved an plan under section 7(d) of the United States
Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for
such assistance, or through a private nonprofit organization.
A public housing agency shall be eligible to apply under this
section only for the
[[Page H10678]]
purposes of providing such tenant-based rental assistance.
``(B) Program rules.--Tenant-based rental assistance under
subsection (b)(1) shall be made available to eligible persons
with disabilities and administered under the same rules that
govern tenant-based rental assistance made available under
section 8 of the United States Housing Act of 1937, except
that the Secretary may waive or modify such rules, but only
to the extent necessary to provide for administering such
assistance under subsection (b)(1) through private nonprofit
organizations rather than through public housing agencies.
``(C) Allocation of assistance.--In determining the amount
of assistance provided under subsection (b)(1) for a private
nonprofit organization or public housing agency, the
Secretary shall consider the needs and capabilities of the
organization or agency, in the case of a public housing
agency, as described in the plan for the agency under section
7 of the United States Housing Act of 1937.''; and
(2) in subsection (l)(1)--
(A) by striking ``subsection (b)'' and inserting
``subsection (b)(2)'';
(B) by striking the last comma and all that follows through
``subsection (n)''; and
(C) by adding at the end the following: ``Notwithstanding
any other provision of this section, the Secretary may use
not more than 25 percent of the total amounts made available
for assistance under this section for any fiscal year for
tenant-based rental assistance under subsection (b)(1) for
persons with disabilities, and no authority of the Secretary
to waive provisions of this section may be used to alter the
percentage limitation under this sentence.''.
SEC. 844. USE OF PROJECT RESERVES.
Section 811(j) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013(j)) is amended by adding at the
end the following:
``(7) Use of project reserves.--Amounts for project
reserves for a project assisted under this section may be
used for costs, subject to reasonable limitations as the
Secretary determines appropriate, for reducing the number of
dwelling units in the project. Such use shall be subject to
the approval of the Secretary to ensure that the use is
designed to retrofit units that are currently obsolete or
unmarketable.''.
SEC. 845. COMMERCIAL ACTIVITIES.
Section 811(h)(1) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended by
adding at the end the following: ``Neither this section nor
any other provision of law may be construed as prohibiting or
preventing the location and operation, in a project assisted
under this section, of commercial facilities for the benefit
of residents of the project and the community in which the
project is located, except that assistance made available
under this section may not be used to subsidize any such
commercial facility.''.
PART 3--OTHER PROVISIONS
SEC. 851. SERVICE COORDINATORS.
(a) Increased Flexibility for Use of Service Coordinators
in Certain Federally Assisted Housing.--Section 676 of the
Housing and Community Development Act of 1992 (42 U.S.C.
13632) is amended--
(1) in the section heading, by striking ``MULTIFAMILY
HOUSING ASSISTED UNDER NATIONAL HOUSING ACT'' and inserting
``CERTAIN FEDERALLY ASSISTED HOUSING'';
(2) in subsection (a)--
(A) in the first sentence, by striking ``(E) and (F)'' and
inserting ``(B), (C), (D), (E), (F), and (G)''; and
(B) in the last sentence--
(i) by striking ``section 661'' and inserting ``section
671''; and
(ii) by adding at the end the following: ``A service
coordinator funded with a grant under this section for a
project may provide services to low-income elderly or
disabled families living in the vicinity of such
project.'';
(3) in subsection (d)--
(A) by striking ``(E) or (F)'' and inserting ``(B), (C),
(D), (E), (F), or (G)''; and
(B) by striking ``section 661'' and inserting ``section
671''; and
(4) by striking subsection (c) and redesignating subsection
(d) (as amended by paragraph (3) of this subsection) as
subsection (c).
(b) Requirement To Provide Service Coordinators.--Section
671 of the Housing and Community Development Act of 1992 (42
U.S.C. 13631) is amended--
(1) in the first sentence of subsection (a), by striking
``to carry out this subtitle pursuant to the amendments made
by this subtitle'' and inserting the following: ``for
providing service coordinators under this section'';
(2) in subsection (d), by inserting ``)'' after ``section
683(2)''; and
(3) by adding at the end following:
``(e) Services for Low-Income Elderly or Disabled Families
Residing in Vicinity of Certain Projects.--To the extent only
that this section applies to service coordinators for covered
federally assisted housing described in subparagraphs (B),
(C), (D), (E), (F), and (G) of section 683(2), any reference
in this section to elderly or disabled residents of a project
shall be construed to include low-income elderly or disabled
families living in the vicinity of such project.''.
(c) Protection Against Telemarketing Fraud.--
(1) Supportive housing for the elderly.--The first sentence
of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(g)(1)) is amended by striking ``and (F)'' and inserting
the following: ``(F) providing education and outreach
regarding telemarketing fraud, in accordance with the
standards issued under section 671(f) of the Housing and
Community Development Act of 1992 (42 U.S.C. 13631(f)); and
(G)''.
(2) Other federally assisted housing.--Section 671 of the
Housing and Community Development Act of 1992 (42 U.S.C.
13631), as amended by subsection (b) of this section, is
further amended--
(A) in the first sentence of subsection (c), by inserting
after ``response,'' the following: ``education and outreach
regarding telemarketing fraud in accordance with the
standards issued under subsection (f),''; and
(B) by adding at the end the following:
``(f) Protection Against Telemarketing Fraud.--
``(1) In general.--The Secretary, in coordination with the
Secretary of Health and Human Services, shall establish
standards for service coordinators in federally assisted
housing who are providing education and outreach to elderly
persons residing in such housing regarding telemarketing
fraud. The standards shall be designed to ensure that such
education and outreach informs such elderly persons of the
dangers of telemarketing fraud and facilitates the
investigation and prosecution of telemarketers engaging in
fraud against such residents.
``(2) Contents.--The standards established under this
subsection shall require that any such education and outreach
be provided in a manner that--
``(A) informs such residents of--
``(i) the prevalence of telemarketing fraud targeted
against elderly persons;
``(ii) how telemarketing fraud works;
``(iii) how to identify telemarketing fraud;
``(iv) how to protect themselves against telemarketing
fraud, including an explanation of the dangers of providing
bank account, credit card, or other financial or personal
information over the telephone to unsolicited callers;
``(v) how to report suspected attempts at telemarketing
fraud; and
``(vi) their consumer protection rights under Federal law;
``(B) provides such other information as the Secretary
considers necessary to protect such residents against
fraudulent telemarketing; and
``(C) disseminates the information provided by appropriate
means, and in determining such appropriate means, the
Secretary shall consider on-site presentations at federally
assisted housing, public service announcements, a printed
manual or pamphlet, an Internet website, and telephone
outreach to residents whose names appear on `mooch lists'
confiscated from fraudulent telemarketers.''.
Subtitle D--Preservation of Affordable Housing Stock
SEC. 861. SECTION 236 ASSISTANCE.
(a) Extension of Authority To Retain Excess Charges.--
Section 236(g) of the National Housing Act (12 U.S.C. 1715z-
1(g)), as amended by the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 2001, is amended--
(1) in paragraph (2), by striking ``Subject to paragraph
(3) and notwithstanding'' and inserting ``Notwithstanding'';
and
(2) by striking paragraph (3) and redesignating paragraph
(4) as paragraph (3).
(b) Treatment of Excess Charges Previously Collected.--Any
excess charges that a project owner may retain pursuant to
the amendments made by subsections (b) and (c) of section 532
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
2000 (Public Law 106-74; 113 Stat. 1116) that have been
collected by such owner since the date of the enactment of
such Appropriations Act and that such owner has not remitted
to the Secretary of Housing and Urban Development may be
retained by such owner unless such Secretary otherwise
provides. To the extent that a project owner has remitted
such excess charges to the Secretary since such date of
enactment, the Secretary may return to the relevant project
owner any such excess charges remitted. Notwithstanding any
other provision of law, amounts in the Rental Housing
Assistance Fund, or heretofore or subsequently transferred
from the Rental Housing Assistance Fund to the Flexible
Subsidy Fund, shall be available to make such return of
excess charges previously remitted to the Secretary,
including the return of excess charges referred to in section
532(e) of such Appropriations Act.
Subtitle E--Mortgage Insurance for Health Care Facilities
SEC. 871. REHABILITATION OF EXISTING HOSPITALS, NURSING
HOMES, AND OTHER FACILITIES.
Section 223(f) of the National Housing Act (12 U.S.C.
1715n(f)) is amended--
(1) in paragraph (1)--
(A) by striking ``the refinancing of existing debt of an'';
and
(B) by inserting ``existing integrated service facility,''
after ``existing board and care home,'';
(2) in paragraph (4)--
(A) by inserting ``existing integrated service facility,''
after ``board and care home,'' each place it appears;
(B) in subparagraph (A), by inserting before the semicolon
at the end the following: ``, which refinancing, in the case
of a loan on a hospital, home, or facility that is within 2
[[Page H10679]]
years of maturity, shall include a mortgage made to prepay
such loan'';
(C) in subparagraph (B), by inserting after
``indebtedness'' the following: ``, pay any other costs
including repairs, maintenance, minor improvements, or
additional equipment which may be approved by the
Secretary,''; and
(D) in subparagraph (D)--
(i) by inserting ``existing'' before ``intermediate care
facility''; and
(ii) by inserting ``existing'' before ``board and care
home''; and
(3) by adding at the end the following:
``(6) In the case of purchase of an existing hospital (or
existing nursing home, existing assisted living facility,
existing intermediate care facility, existing board and care
home, existing integrated service facility or any combination
thereof) the Secretary shall prescribe such terms and
conditions as the Secretary deems necessary to assure that--
``(A) the proceeds of the insured mortgage loan will be
employed only for the purchase of the existing hospital (or
existing nursing home, existing assisted living facility,
existing intermediate care facility, existing board and care
home, existing integrated service facility or any combination
thereof) including the retirement of existing debt (if any),
necessary costs associated with the purchase and the insured
mortgage financing, and such other costs, including costs of
repairs, maintenance, improvements, and additional equipment,
as may be approved by the Secretary;
``(B) such existing hospital (or existing nursing home,
existing assisted living facility, existing intermediate care
facility, existing board and care home, existing integrated
service facility, or any combination thereof) is economically
viable; and
``(C) the applicable requirements for certificates,
studies, and statements of section 232 (for the existing
nursing home, existing assisted living facility, intermediate
care facility, board and care home, existing integrated
service facility or any combination thereof, proposed to be
purchased) or of section 242 (for the existing hospital
proposed to be purchased) have been met.''.
SEC. 872. NEW INTEGRATED SERVICE FACILITIES.
Section 232 of the National Housing Act (12 U.S.C. 1715w)
is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``are not acutely ill
and'';
(B) in paragraph (2), by striking ``nevertheless''; and
(C) by adding at the end the following:
``(4) The development of integrated service facilities for
the care and treatment of the elderly and other persons in
need of health care and related services, but who do not
require hospital care, and the support of health care
facilities which provide such health care and related
services (including those that support hospitals (as defined
in section 242(b))).'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``acutely ill and not'';
(B) in paragraph (4), by inserting after the second period
the following: ``Such term includes a parity first mortgage
or parity first deed of trust, subject to such terms and
conditions as the Secretary may provide.'';
(C) in paragraph (6)--
(i) by striking subparagraph (A) and inserting the
following:
``(A) meets all applicable licensing and regulatory
requirements of the State, or if there is no State law
providing for such licensing and regulation by the State,
meets all applicable licensing and regulatory requirements of
the municipality or other political subdivision in which the
facility is located, or, in the absence of any such
requirements, meets any underwriting requirements of the
Secretary for such purposes;''; and
(ii) in subparagraph (C), by striking ``and'' at the end;
(D) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(E) by adding at the end the following:
``(8) the term `integrated service facility' means a
facility--
``(A) providing integrated health care delivery services
designed and operated to provide medical, convalescent,
skilled and intermediate nursing, board and care services,
assisted living, rehabilitation, custodial, personal care
services, or any combination thereof, to sick,
injured, disabled, elderly, or infirm persons, or
providing services for the prevention of illness, or any
combination thereof;
``(B) designed, in whole or in part, to provide a continuum
of care, as determined by the Secretary, for the sick,
injured, disabled, elderly, or infirm;
``(C) providing clinical services, outpatient services,
including community health services and medical practice
facilities and group practice facilities, to sick, injured,
disabled, elderly, or infirm persons not in need of the
services rendered in other facilities insurable under this
title, or for the prevention of illness, or any combination
thereof; or
``(D)(i) designed, in whole or in part to provide
supportive or ancillary services to hospitals (as defined in
section 242(b)), which services may include services provided
by special use health care facilities, professional office
buildings, laboratories, administrative offices, and other
facilities supportive or ancillary to health care delivery by
such hospitals; and
``(ii) that meet standards acceptable to the Secretary,
which may include standards governing licensure or State or
local approval and regulation of a mortgagor; or
``(E) that provides any combination of the services under
subparagraphs (A) through (D).'';
(3) in subsection (d)--
(A) in the matter preceding paragraph (1)--
(i) by inserting ``board and care home,'' after
``rehabilitated nursing home,'';
(ii) by inserting ``integrated service facility,'' after
``assisted living facility,'' the first 2 places it appears;
(iii) by inserting ``board and care home,'' after
``existing nursing home,''; and
(iv) by striking ``or a board and care home'' and inserting
``, board and care home or integrated service facility'';
(B) in paragraph (2)--
(i) in the matter preceding subparagraph (A), by inserting
before ``, including'' the following: ``or a public body,
public agency, or public corporation eligible under this
section''; and
(ii) in subparagraph (B), by striking ``energy conservation
measures'' and all that follows through ``95-619)'' and
inserting ``energy conserving improvements (as defined in
section 2(a))''.
(C) in paragraph (4)(A)--
(i) in the first sentence--
(I) by inserting ``, and integrated service facilities that
include such nursing home and intermediate care facilities,''
before ``, the Secretary'';
(II) by striking ``or section 1521 of the Public Health
Service Act'' and inserting ``of the Public Health Service
Act, or other applicable Federal law (or, in the absence of
applicable Federal law, by the Secretary),'';
(III) by inserting ``, or the portion of an integrated
service facility providing such services,'' before ``covered
by the mortgage,''; and
(IV) by inserting ``or for such nursing or intermediate
care services within an integrated service facility'' before
``, and (ii)'';
(ii) in the second sentence, by inserting ``(which may be
within an integrated service facility)'' after ``home and
facility'';
(iii) in the third sentence--
(I) by striking ``mortgage under this section'' and all
that follows through ``feasibility'' and inserting the
following: ``such mortgage under this section unless (i) the
proposed mortgagor or applicant for the mortgage insurance
for the home or facility or combined home or facility, or the
integrated service facility containing such services, has
commissioned and paid for the preparation of an independent
study of market need for the project'';
(II) in clause (i)(II), by striking ``and its relationship
to, other health care facilities and'' and inserting ``or
such facilities within an integrated service facility, and
its relationship to, other facilities providing health
care'';
(III) in clause (i)(IV), by striking ``in the event the
State does not prepare the study,''; and
(IV) in clause (i)(IV), by striking ``the State or''; and
(V) in clause (ii), by striking ``or section 1521 of the
Public Health Service Act'' and inserting ``of the Public
Health Service Act, or other applicable Federal law (or, in
the absence of applicable Federal law, by the Secretary),'';
(iv) by striking the penultimate sentence and inserting the
following: ``A study commissioned or undertaken by the State
in which the facility will be located shall be considered to
satisfy such market study requirement. The proposed mortgagor
or applicant may reimburse the State for the cost of an
independent study referred to in the preceding sentence.'';
and
(v) in the last sentence--
(I) by inserting ``the proposed mortgagor or applicant for
mortgage insurance may obtain from'' after ``10
individuals,'';
(II) by striking ``may'' and inserting ``and''; and
(III) by inserting a comma before ``written support''; and
(D) in paragraph (4)(C)(iii), by striking ``the appropriate
State'' and inserting ``any appropriate''; and
(4) in subsection (i)(1), by inserting ``integrated service
facilities,'' after ``assisted living facilities,''.
SEC. 873. HOSPITALS AND HOSPITAL-BASED INTEGRATED SERVICE
FACILITIES.
Section 242 of the National Housing Act (12 U.S.C. 1715z-7)
is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by adding ``and'' at the end;
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraph (C) as subparagraph (B)
and striking ``and'' at the end;
(B) in paragraph (2), by striking ``respectfully'' and all
that follows through the period at the end and inserting
``given such terms in section 207(a), except that the term
`mortgage' shall include a parity first mortgage or parity
first deed of trust, subject to such terms and conditions as
the Secretary may provide; and''; and
(C) by adding at the end the following:
``(3) the term `integrated service facility' has the
meaning given the term in section 232(b).'';
(2) in subsection (c), by striking ``title VII of'' and
inserting ``title VI of'';
(3) in subsection (d)--
(A) in the matter preceding paragraph (1), by inserting
after ``operation,'' the following: ``or that covers an
integrated service
[[Page H10680]]
facility owned or to be owned by an applicant or proposed
mortgagor that also owns a hospital in the same market area,
including equipment to be used in its operation,'';
(B) in paragraph (1)--
(i) in the first sentence, by inserting before the period
at the end the following: ``and who, in the case of a
mortgage covering an integrated service facility, is also the
owner of a hospital facility''; and
(ii) by adding at the end the following: ``A mortgage
insured hereunder covering an integrated service facility may
only cover the real and personal property where the eligible
facility will be located.'';
(C) in paragraph (2)(A), by inserting ``or integrated
service facility'' before the comma; and
(D) in paragraph (2)(B), by striking ``energy conservation
measures'' and all that follows through ``95-619)'' and
inserting ``energy conserving improvements (as defined in
section 2(a))'';
(E) in paragraph (4)--
(i) in the first sentence--
(I) by inserting ``for a hospital'' after ``any mortgage'';
and
(II) by striking ``or section 1521 of the Public Health
Service Act'' and inserting ``of the Public Health Service
Act, or other applicable Federal law (or, in the absence of
applicable Federal law, by the Secretary),'';
(ii) by striking the third sentence and inserting the
following: ``If no such State agency exists, or if the State
agency exists but is not empowered to provide a certification
that there is a need for the hospital as set forth in
subparagraph (A) of the first sentence, the Secretary shall
not insure any such mortgage under this section unless: (A)
the proposed mortgagor or applicant for the hospital has
commissioned and paid for the preparation of an independent
study of market need for the proposed project that: (i) is
prepared in accordance with the principles established by the
Secretary, in consultation with the Secretary of Health and
Human Services (to the extent the Secretary of Housing and
Urban Development considers appropriate); (ii) assesses, on a
marketwide basis, the impact of the proposed hospital on, and
its relationship to, other facilities providing health care
services, the percentage of excess beds, demographic
projections, alternative health care delivery systems, and
the reimbursement structure of the hospital; (iii) is
addressed to and is acceptable to the Secretary in form and
substance; and (iv) is prepared by a financial consultant
selected by the proposed mortgagor or applicant and approved
by the Secretary; and (B) the State complies with the other
provisions of this paragraph that would otherwise be required
to be met by a State agency designated in accordance with
section 604(a)(1) of the Public Health Service Act, or other
applicable Federal law (or, in the absence of applicable
Federal law, by the Secretary). A study commissioned or
undertaken by the State in which the hospital will be located
shall be considered to satisfy such market study
requirement.''; and
(iii) in the last sentence, by striking ``feasibility'';
and
(4) in subsection (f), by inserting ``and public integrated
service facilities'' after ``public hospitals''.
TITLE IX--OTHER RELATED HOUSING PROVISIONS
SEC. 901. 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. 902. USE OF SECTION 8 VOUCHERS FOR OPT-OUTS.
(a) In General.--Section 8(t)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(t)(2)), as amended by
the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
2001, is amended by striking ``fiscal year 1996'' and
inserting ``fiscal year 1994''.
(b) Effective Date.--The amendment under subsection (a)
shall be made and shall apply--
(1) upon the enactment of this Act, if the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, is enacted
before the enactment of this Act; and
(2) immediately after the enactment of such appropriations
Act, if such appropriations Act is enacted after the
enactment of this Act.
SEC. 903. MAXIMUM PAYMENT STANDARD FOR ENHANCED VOUCHERS.
(a) In General.--Section 8(t)(1)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)), as amended by
the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
2001, is amended by inserting before the semicolon at the end
the following: ``, except that a limit shall not be
considered reasonable for purposes of this subparagraph if it
adversely affects such assisted families''.
(b) Effective Date.--The amendment under subsection (a)
shall be made and shall apply--
(1) upon the enactment of this Act, if the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, is enacted
before the enactment of this Act; and
(2) immediately after the enactment of such appropriations
Act, if such appropriations Act is enacted after the
enactment of this Act.
SEC. 904. 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)) is amended by adding at the
end the following new paragraph:
``(6) 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.''.
TITLE X--BANKING AND HOUSING AGENCY REPORTS
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Federal Reporting Act of
2000''.
SEC. 1002. AMENDMENTS TO THE FEDERAL RESERVE ACT.
(a) Repeal.--Section 2A of the Federal Reserve Act (12
U.S.C. 225a) is amended by striking all after the first
sentence.
(b) Appearances Before and Reports to the Congress.--
(1) In general.--The Federal Reserve Act (12 U.S.C. 221 et
seq.) is amended by inserting after section 2A the following
new section:
``SEC. 2B. APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.
``(a) Appearances Before the Congress.--
(1) In general.--The Chairman of the Board shall appear
before the Congress at semi-annual hearings, as specified in
paragraph (2), regarding--
``(A) the efforts, activities, objectives and plans of the
Board and the Federal Open Market Committee with respect to
the conduct of monetary policy; and
``(B) economic developments and prospects for the future
described in the report required in subsection (b).
``(2) Schedule.--The Chairman of the Board shall appear--
``(A) before the Committee on Banking and Financial
Services of the House of Representatives on or about February
20 of even numbered calendar years and on or about July 20 of
odd numbered calendar years;
``(B) before the Committee on Banking, Housing, and Urban
Affairs of the Senate on or about July 20 of even numbered
calendar years and on or about February 20 of odd numbered
calendar years; and
``(C) before either Committee referred to in subparagraph
(A) or (B), upon request, following the scheduled appearance
of the Chairman before the other Committee under subparagraph
(A) or (B).
``(b) Congressional Report.--The Board shall, concurrent
with each semi-annual hearing required by this section,
submit a written report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Banking
and Financial Services of the House of Representatives,
containing a discussion of the conduct of monetary policy and
economic developments and prospects for the future, taking
into account past and prospective developments in employment,
unemployment, production, investment, real income,
productivity, exchange rates, international trade and
payments, and prices.''.
SEC. 1003. PRESERVATION OF CERTAIN REPORTING REQUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination and
Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to
any report required to be submitted under any of the
following provisions of law:
(1) Section 3 of the Employment Act of 1946 (15 U.S.C.
1022).
(2) Section 309 of the Defense Production Act of 1950 (50
U.S.C. App. 2099).
(3) Section 603 of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3213).
(4) Section 7(o)(1) of the Department of Housing and Urban
Development Act (42 U.S.C. 3535(o)(1)).
(5) Section 540(c) of the National Housing Act (12 U.S.C.
1735f-18(c)).
(6) Paragraphs (2) and (6) of section 808(e) of the Civil
Rights Act of 1968 (42 U.S.C. 3608(e)).
(7) Section 1061 of the Housing and Community Development
Act of 1992 (42 U.S.C. 4856).
[[Page H10681]]
(8) Section 203(v) of the National Housing Act (12 U.S.C.
1709(v)), as added by section 504 of the Housing and
Community Development Act of 1992 (Public Law 102-550; 106
Stat. 3780).
(9) Section 802 of the Housing Act of 1954 (12 U.S.C.
1701o).
(10) Section 8 of the Department of Housing and Urban
Development Act (42 U.S.C. 3536).
(11) Section 1320 of the National Flood Insurance Act of
1968 (42 U.S.C. 4027).
(12) Section 4(e)(2) of the Department of Housing and Urban
Development Act (42 U.S.C. 3533(e)(2).
(13) Section 205(g) of the National Housing Act (12 U.S.C.
1711(g)).
(14) Section 701(c)(1) of the International Financial
Institutions Act (22 U.S.C. 262d(c)(1)).
(15) Paragraphs (1) and (2) of section 5302(c) of title 31,
United States Code.
(16) Section 18(f)(7) of the Federal Trade Commission Act.
(15 U.S.C. 57a(f)(7)).
(17) Section 333 of the Revised Statutes of the United
States (12 U.S.C. 14).
(18) Section 3(g) of the Home Owners' Loan Act (12 U.S.C.
1462a(g)).
(19) Section 304 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 304).
(20) Sections 2(b)(1)(A), 8(a), 8(c), 10(g)(1), and 11(c)
of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(A), 635g(a), 635g(c), 635i-3(g), and 635i-5(c)).
(21) Section 17(a) of the Federal Deposit Insurance Act (12
U.S.C. 1827(a)).
(22) Section 13 of the Federal Financing Bank Act of 1973
(12 U.S.C. 2292).
(23) Section 2B(d) of the Federal Home Loan Bank Act (12
U.S.C. 1422b(d)).
(24) Section 1002(b) of Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note).
(25) Section 8 of the Fair Credit and Charge Card
Disclosure Act of 1988 (15 U.S.C. 1637 note).
(26) Section 136(b)(4)(B) of the Truth in Lending Act (15
U.S.C. 1646(b)(4)(B)).
(27) Section 707 of the Equal Credit Opportunity Act (15
U.S.C. 1691f).
(28) Section 114 of the Truth in Lending Act (15 U.S.C.
1613).
(29) The seventh undesignated paragraph of section 10 of
the Federal Reserve Act (12 U.S.C. 247).
(30) The tenth undesignated paragraph of section 10 of the
Federal Reserve Act (12 U.S.C. 247a).
(31) Section 815 of the Fair Debt Collection Practices Act
(15 U.S.C. 1692m).
(32) Section 102(d) of the Federal Credit Union Act (12
U.S.C. 1752a(d)).
(33) Section 21B(i) of the Federal Home Loan Bank Act (12
U.S.C. 1441b(i)).
(34) Section 607(a) of the Housing and Community
Development Amendments of 1978 (42 U.S.C. 8106(a)).
(35) Section 708(l) of the Defense Production Act of 1950
(50 U.S.C. Ap. 2158(l)).
(36) Section 2546 of the Comprehensive Thrift and Bank
Fraud Prosecution and Taxpayer Recovery Act of 1990 (28
U.S.C. 522 note).
(37) Section 202(b)(8) of the National Housing Act (12
U.S.C. 1708(b)(8)).
SEC. 1004. COORDINATION OF REPORTING REQUIREMENTS.
(a) Federal Deposit Insurance Corporation.--Section 17(a)
of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is
amended by adding at the end the following new paragraph:
``(3) Coordination with other report requirements.--The
report required under this subsection shall include the
report required under section 18(f)(7) of the Federal Trade
Commission Act.''.
(b) Board of Governors of the Federal Reserve System.--The
7th undesignated paragraph of section 10 of the Federal
Reserve Act (12 U.S.C. 247) is amended by adding at the end
the following new sentence: ``The report required under this
paragraph shall include the reports required under section
707 of the Equal Credit Opportunity Act, section 18(f)(7) of
the Federal Trade Commission Act, section 114 of the Truth in
Lending Act, and the 10th undesignated paragraph of this
section.''.
(c) Comptroller of the Currency.--Section 333 of the
Revised Statutes of the United States (12 U.S.C. 14) is
amended by adding at the end the following new sentence:
``The report required under this section shall include the
report required under section 18(f)(7) of the Federal Trade
Commission Act.''.
(d) Export-Import Bank.--
(1) In general.-- Section 2(b)(1)(A) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)(1)(A)) is amended--
(A) by striking ``a annual'' and inserting ``an annual'';
and
(B) by adding at the end the following new sentence: ``The
annual report required under this subparagraph shall include
the report required under section 10(g).''.
(2) Technical and conforming amendment.--Section 10(g)(1)
of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-
3(g)(1)) is amended--
(A) by striking ``On or'' and all that follows through
``the Bank'' and inserting ``The Bank''; and
(B) by striking ``a report'' and inserting ``an annual
report''.
(e) Department of Housing and Urban Development.--Section 8
of the Department of Housing and Urban Development Act (42
U.S.C. 3536) is amended by adding at the end the following
new sentence: ``The report required under this section shall
include the reports required under paragraphs (2) and (6) of
section 808(e) of the Civil Rights Act of 1968, the reports
required under subsections (a) and (b) of section 1061 of the
Housing and Community Development Act of 1992, the report
required under section 802 of the Housing Act of 1954, and
the report required under section 4(e)(2) of this Act.''.
(f) Federal Housing Administration.--Section 203(v) of the
National Housing Act (12 U.S.C. 1709(v)), as added by section
504 of the Housing and Community Development Act of 1992, is
amended by adding at the end the following new sentence:
``The report required under this subsection shall include the
report required under section 540(c) and the report required
under section 205(g).''.
(g) International Financial Institutions Act.--Section
701(c)(1) of the International Financial Institutions Act (22
U.S.C. 262d(c)(1)) is amended by striking ``Not later'' and
all that follows through ``quarterly'' and inserting ``The
Secretary of the Treasury shall report annually''.
SEC. 1005. ELIMINATION OF CERTAIN REPORTING REQUIREMENTS.
(a) Export-Import Bank.--The Export-Import Bank Act of 1945
(12 U.S.C. 635 et seq.) is amended--
(1) in section 2(b)(1)(D)--
(A) by striking ``(i)''; and
(B) by striking clause (ii);
(2) in section 2(b)(8), by striking the last sentence;
(3) in section 6(b), by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2); and
(4) in section 8, by striking subsections (b) and (d) and
redesignating subsections (c) and (e) as subsections (b) and
(c), respectively.
(b) Federal Deposit Insurance Corporation.--Section 17 of
the Federal Deposit Insurance Act (12 U.S.C. 1827) is amended
by striking subsection (h).
TITLE XI--NUMISMATIC COINS
SEC. 1101. SHORT TITLE.
This title may be cited as the ``United States Mint
Numismatic Coin Clarification Act of 2000''.
SEC. 1102. CLARIFICATION OF MINT'S AUTHORITY.
(a) Silver Proof Coins.--Section 5132(a)(2)(B)(i) of title
31, United States Code, is amended by striking ``paragraphs
(1)'' and inserting ``paragraphs (2)''.
(b) Platinum Coins.--Section 5112(k) of title 31, United
States Code, is amended by striking ``bullion'' and inserting
``platinum bullion coins''.
SEC. 1103. ADDITIONAL REPORT REQUIREMENT.
Section 5134(e)(2) of title 31, United States Code, is
amended--
(1) in the matter preceding subparagraph (A), by striking
``reflect'' and inserting ``contain'';
(2) by striking ``and'' at the end of subparagraph (C);
(3) by striking the period at the end of subparagraph (D)
and inserting ``; and''; and
(4) by adding at the end the following new subparagraph:
``(E) a supplemental schedule detailing--
``(i) the costs and expenses for the production, for the
marketing, and for the distribution of each denomination of
circulating coins produced by the Mint during the fiscal year
and the per-unit cost of producing, of marketing, and of
distributing each denomination of such coins; and
``(ii) the gross revenue derived from the sales of each
such denomination of coins.''.
TITLE XII--FINANCIAL REGULATORY RELIEF
SEC. 1200. SHORT TITLE.
This title may be cited as the ``Financial Regulatory
Relief and Economic Efficiency Act of 2000''.
Subtitle A--Improving Monetary Policy and Financial Institution
Management Practices
SEC. 1201. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY PROVISION.
(a) Repeal of Liquidity Provision.--Section 6 of the Home
Owners' Loan Act (12 U.S.C. 1465) is repealed.
(b) Conforming Amendments.--
(1) Section 5.--Section 5(c)(1)(M) of the Home Owners' Loan
Act (12 U.S.C. 1464(c)(1)(M)) is amended to read as follows:
``(M) Liquidity investments.--Investments (other than
equity investments), identified by the Director, for
liquidity purposes, including cash, funds on deposit at a
Federal reserve bank or a Federal home loan bank, or bankers'
acceptances.''.
(2) Section 10.--Section 10(m)(4)(B)(iii) of the Home
Owners' Loan Act (12 U.S.C. 1467a(m)(4)(B)(iii)) is amended
by inserting ``as in effect on the day before the date of the
enactment of the Financial Regulatory Relief and Economic
Efficiency Act of 2000, after ``Loan Act,''.
SEC. 1202. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIATION
HOLDING COMPANIES.
Section 10(e)(1)(A)(iii) of the Home Owners' Loan Act (12
U.S.C. 1467a(e)(1)(A)(iii)) is amended--
(1) by inserting ``, except with the prior written approval
of the Director,'' after ``or to retain''; and
(2) by striking ``so acquire or retain'' and inserting
``acquire or retain, and the Director may not authorize
acquisition or retention of,''.
SEC. 1203. REPEAL OF DEPOSIT BROKER NOTIFICATION AND
RECORDKEEPING REQUIREMENT.
Section 29A of the Federal Deposit Insurance Act (12 U.S.C.
1831f-1) is hereby repealed.
[[Page H10682]]
SEC. 1204. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.
The National Bank Consolidation and Merger Act (12 U.S.C.
215 et seq.) is amended--
(1) by redesignating section 5 as section 7; and
(2) by inserting after section 4 the following new section:
``SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.
``(a) In General.--A national banking association may, with
the approval of the Comptroller, pursuant to rules and
regulations promulgated by the Comptroller, and upon the
affirmative vote of the shareholders of such association
owning at least two-thirds of its capital stock outstanding,
reorganize so as to become a subsidiary of a bank holding
company or of a company that will, upon consummation of such
reorganization, become a bank holding company.
``(b) Reorganization Plan.--A reorganization authorized
under subsection (a) shall be carried out in accordance with
a reorganization plan that--
``(1) specifies the manner in which the reorganization
shall be carried out;
``(2) is approved by a majority of the entire board of
directors of the association;
``(3) specifies--
``(A) the amount of cash or securities of the bank holding
company, or both, or other consideration to be paid to the
shareholders of the reorganizing association in exchange for
their shares of stock of the association;
``(B) the date as of which the rights of each shareholder
to participate in such exchange will be determined; and
``(C) the manner in which the exchange will be carried out;
and
``(4) is submitted to the shareholders of the reorganizing
association at a meeting to be held on the call of the
directors in accordance with the procedures prescribed in
connection with a merger of a national bank under section 3.
``(c) Rights of Dissenting Shareholders.--If, pursuant to
this section, a reorganization plan has been approved by the
shareholders and the Comptroller, any shareholder of the
association who has voted against the reorganization at the
meeting referred to in subsection (b)(4), or has given notice
in writing at or prior to that meeting to the presiding
officer that the shareholder dissents from the reorganization
plan, shall be entitled to receive the value of his or her
shares, as provided by section 3 for the merger of a national
bank.
``(d) Effect of Reorganization.--The corporate existence of
an association that reorganizes in accordance with this
section shall not be deemed to have been affected in any way
by reason of such reorganization.
``(e) Approval Under the Bank Holding Company Act.--This
section does not affect in any way the applicability of the
Bank Holding Company Act of 1956 to a transaction described
in subsection (a).''.
SEC. 1205. NATIONAL BANK DIRECTORS.
(a) Amendments to the Revised Statutes.--Section 5145 of
the Revised Statutes of the United States (12 U.S.C. 71) is
amended--
(1) by striking ``for one year'' and inserting ``for a
period of not more than 3 years''; and
(2) by adding at the end the following: ``In accordance
with regulations issued by the Comptroller of the Currency,
an association may adopt bylaws that provide for staggering
the terms of its directors.''.
(b) Amendment to the Banking Act of 1933.--Section 31 of
the Banking Act of 1933 (12 U.S.C. 71a) is amended in the
first sentence, by inserting before the period ``, except
that the Comptroller of the Currency may, by regulation or
order, exempt a national banking association from the 25-
member limit established by this section''.
SEC. 1206. AMENDMENT TO NATIONAL BANK CONSOLIDATION AND
MERGER ACT.
The National Bank Consolidation and Merger Act (12 U.S.C.
215 et seq.) is amended by inserting after section 5, as
added by this title, the following new section:
``SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDIARIES AND
NONBANK AFFILIATES.
``(a) In General.--Upon the approval of the Comptroller, a
national banking association may merge with 1 or more of its
nonbank subsidiaries or affiliates.
``(b) Scope.--Nothing in this section shall be construed--
``(1) to affect the applicability of section 18(c) of the
Federal Deposit Insurance Act; or
``(2) to grant a national banking association any power or
authority that is not permissible for a national banking
association under other applicable provisions of law.
``(c) Regulations.--The Comptroller shall promulgate
regulations to implement this section.''.
SEC. 1207. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR OWN
STOCK; AFFILIATIONS.
(a) Amendment to the Revised Statutes.--Section 5201 of the
Revised Statutes of the United States (12 U.S.C. 83) is
amended to read as follows:
``SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.
``(a) General Prohibition.--No national banking association
shall make any loan or discount on the security of the shares
of its own capital stock.
``(b) Exclusion.--For purposes of this section, an
association shall not be deemed to be making a loan or
discount on the security of the shares of its own capital
stock if it acquires the stock to prevent loss upon a debt
previously contracted for in good faith.''.
(b) Amendments to the Federal Deposit Insurance Act.--
Section 18 of the Federal Deposit Insurance Act (12 U.S.C.
1828) is amended--
(1) by redesignating subsection (t), as added by section
730 of the Gramm-Leach-Bliley Act (Public Law 106-102; 113
Stat. 1476), as subsection (u); and
(2) by adding at the end the following new subsection:
``(v) Loans by Insured Institutions on Their Own Stock.--
``(1) General prohibition.--No insured depository
institution may make any loan or discount on the security of
the shares of its own capital stock.
``(2) Exclusion.--For purposes of this subsection, an
insured depository institution shall not be deemed to be
making a loan or discount on the security of the shares of
its own capital stock if it acquires the stock to prevent
loss upon a debt previously contracted for in good faith.''.
SEC. 1208. PURCHASED MORTGAGE SERVICING RIGHTS.
Section 475 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
(1) in subsection (a)(1), by inserting ``(or such other
percentage exceeding 90 percent but not exceeding 100
percent, as may be determined under subsection (b))'' after
``90 percent'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively, and by inserting after subsection
(a) the following new subsection:
``(b) Authority To Determine Percentage by Which To
Discount Value of Servicing Rights.--The appropriate Federal
banking agencies may allow readily marketable purchased
mortgage servicing rights to be valued at more than 90
percent of their fair market value but at not more than 100
percent of such value, if such agencies jointly make a
finding that such valuation would not have an adverse effect
on the deposit insurance funds or the safety and soundness of
insured depository institutions.''; and
(3) in subsection (c), by striking ``and'' and inserting
``, `deposit insurance fund', and''.
Subtitle B--Streamlining Activities of Institutions
SEC. 1211. CALL REPORT SIMPLIFICATION.
(a) Modernization of Call Report Filing and Disclosure
System.--In order to reduce the administrative requirements
pertaining to bank reports of condition, savings association
financial reports, and bank holding company consolidated and
parent-only financial statements, and to improve the
timeliness of such reports and statements, the Federal
banking agencies shall--
(1) work jointly to develop a system under which--
(A) insured depository institutions and their affiliates
may file such reports and statements electronically; and
(B) the Federal banking agencies may make such reports and
statements available to the public electronically; and
(2) not later than 1 year after the date of enactment of
this Act, report to the Congress and make recommendations for
legislation that would enhance efficiency for filers and
users of such reports and statements.
(b) Uniform Reports and Simplification of Instructions.--
The Federal banking agencies shall, consistent with the
principles of safety and soundness, work jointly--
(1) to adopt a single form for the filing of core
information required to be submitted under Federal law to all
such agencies in the reports and statements referred to in
subsection (a); and
(2) to simplify instructions accompanying such reports and
statements and to provide an index to the instructions that
is adequate to meet the needs of both filers and users.
(c) Review of Call Report Schedule.--Each Federal banking
agency shall--
(1) review the information required by schedules
supplementing the core information referred to in subsection
(b); and
(2) eliminate requirements that are not warranted for
reasons of safety and soundness or other public purposes.
(d) Definition.--In this section, the term ``Federal
banking agency'' has the same meaning as in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
Subtitle C--Streamlining Agency Actions
SEC. 1221. ELIMINATION OF DUPLICATIVE DISCLOSURE OF FAIR
MARKET VALUE OF ASSETS AND LIABILITIES.
Section 37(a)(3) of the Federal Deposit Insurance Act (12
U.S.C. 1831n(a)(3)) is amended by striking subparagraph (D).
SEC. 1222. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH SURPLUS
FUNDS.
Section 11(d)(10) of the Federal Deposit Insurance Act (12
U.S.C. 1821(d)(10)) is amended by adding at the end the
following new subparagraph:
``(C) Rulemaking authority of corporation.--The Corporation
may prescribe such rules, including definitions of terms, as
it deems appropriate to establish a single uniform interest
rate for or to make payments of post insolvency interest to
creditors holding proven claims against the receivership
estates of insured Federal or State depository institutions
following satisfaction by the receiver of the principal
amount of all creditor claims.''.
SEC. 1223. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES IN
ACCOUNTING STANDARDS.
Section 37(c) of the Federal Deposit Insurance Act (12
U.S.C. 1831n(c)) is amended--
[[Page H10683]]
(1) in paragraph (1), by striking ``Each'' and all that
follows through ``a report'' and inserting ``The Federal
banking agencies shall jointly submit an annual report''; and
(2) by inserting ``any'' before ``such agency'' each place
that term appears.
SEC. 1224. AGENCY REVIEW OF COMPETITIVE FACTORS IN BANK
MERGER ACT FILINGS.
(a) Report Required.--Section 18(c)(4) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(c)(4)) is amended by
striking ``request reports'' and all that follows through the
period at the end and inserting the following: ``request a
report on the competitive factors involved from the Attorney
General. The report shall be furnished not later than 30
calendar days after the date on which it is requested, or not
later than 10 calendar days after such date if the requesting
agency advises the Attorney General that an emergency exists
requiring expeditious action.''.
(b) Timing of Transaction.--Section 18(c)(6) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended by
striking the third sentence and inserting the following: ``If
the agency has advised the Attorney General of the existence
of an emergency requiring expeditious action and has
requested a report on the competitive factors within 10 days,
the transaction may not be consummated before the fifth
calendar day after the date of approval by the agency.''.
(c) Evaluation of Competitive Effect.--
(1) Amendments to the bank holding company act of 1956.--
Section 3(c) of the Bank Holding Company Act of 1956 (12
U.S.C. 1842(c)) is amended--
(A) by adding at the end the following new paragraph:
``(6) Evaluation of competitive effect.--The Board may not
disapprove of a transaction pursuant to paragraph (1)(B)
unless the Board takes into account, to the extent that data
are readily available--
``(A) competition from institutions, other than depository
institutions (as defined in section 3 of the Federal Deposit
Insurance Act), that provide financial services;
``(B) efficiencies and cost savings that the transaction
may create;
``(C) deposits of the participants in the transaction that
are not derived from the relevant market;
``(D) the capacity of savings associations to make small
business loans;
``(E) lending by institutions other than depository
institutions to small businesses; and
``(F) such other factors as the Board deems relevant.'';
and
(B) in paragraph (1)(B), by striking ``restraint or trade''
and inserting ``restraint of trade''.
(2) Amendments to the federal deposit insurance act.--
Section 18(c)(5) of the Federal Deposit Insurance Act (12
U.S.C. 1828(c)(5)) is amended--
(A) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(B) by inserting ``(A)'' after ``(5)'';
(C) by striking ``In every case'' and inserting the
following:
``(B) In every case under this subsection''; and
(D) by adding at the end the following:
``(C) The responsible agency may not disapprove of a
transaction pursuant to subparagraph (A), unless the agency
takes into account, to the extent that data are readily
available--
``(i) competition from institutions that provide financial
services;
``(ii) efficiencies and cost savings that the transaction
may create;
``(iii) deposits of the participants in the transaction
that are not derived from the relevant markets;
``(iv) the capacity of the institutions to make small
business loans;
``(v) lending by institutions other than depository
institutions to small businesses; and
``(vi) such other factors as the responsible agency deems
relevant.''.
Subtitle D--Miscellaneous
SEC. 1231. FEDERAL RESERVE BOARD BUILDINGS.
The 3rd undesignated paragraph of section 10 of the Federal
Reserve Act (12 U.S.C. 243) is amended--
(1) by inserting after the 1st sentence the following new
sentence: ``After September 1, 2000, the Board may also use
such assessments to acquire, in its own name, a site or
building (in addition to the facilities existing on such
date) to provide for the performance of the functions of the
Board.''; and
(2) in the sentences following the sentence added by the
amendment made by paragraph (1) of this section--
(A) by striking ``the site'' and inserting ``any site'';
and
(B) by inserting ``or buildings'' after ``building'' each
place such term appears.
SEC. 1232. POSITIONS OF BOARD OF GOVERNORS OF FEDERAL RESERVE
SYSTEM ON THE EXECUTIVE SCHEDULE.
(a) In General.--
(1) Positions at level i of the executive schedule.--
Section 5312 of title 5, United States Code, is amended by
adding at the end the following:
``Chairman, Board of Governors of the Federal Reserve
System.''.
(2) Positions at level ii of the executive schedule.--
Section 5313 of title 5, United States Code, is amended--
(A) by striking ``Chairman, Board of Governors of the
Federal Reserve System.''; and
(B) by adding at the end the following:
``Members, Board of Governors of the Federal Reserve
System.''.
(3) Positions at level iii of the executive schedule.--
Section 5314 of title 5, United States Code, is amended by
striking ``Members, Board of Governors of the Federal Reserve
System.''.
(b) Effective Date.--This section and the amendments made
by this section shall take effect on the first day of the
first pay period for the Chairman and Members of the Board of
Governors of the Federal Reserve System beginning on or after
the date of enactment of this Act.
SEC. 1233. EXTENSION OF TIME.
Section 6(a)(1) of the Federal Home Loan Bank Act (12
U.S.C. 1426(a)(1)) is amended by striking ``1 year'' and
inserting ``18 months''.
Subtitle E--Technical Corrections
SEC. 1241. TECHNICAL CORRECTION RELATING TO DEPOSIT INSURANCE
FUNDS.
(a) In General.--Section 2707 of the Deposit Insurance
Funds Act of 1996 (Public Law 104-208; 110 Stat. 3009-496) is
amended--
(1) by striking ``7(b)(2)(C)'' and inserting
``7(b)(2)(E)''; and
(2) by striking ``, as redesignated by section 2704(d)(6)
of this subtitle''.
(b) Effective Date.--The amendments made by subsection (a)
shall be deemed to have the same effective date as section
2707 of the Deposit Insurance Funds Act of 1996 (Public Law
104-208; 110 Stat. 3009-496).
SEC. 1242. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR
MEMBER BANKS CONVERTING CHARTERS.
Section 8(o) of the Federal Deposit Insurance Act (12
U.S.C. 1818(o)) is amended in the second sentence, by
striking ``subsection (d) of section 4'' and inserting
``subsection (c) or (d) of section 4''.
SEC. 1243. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED
STATES.
(a) Waiver of Citizenship Requirement for National Bank
Directors.--Section 5146 of the Revised Statutes of the
United States (12 U.S.C. 72) is amended in the first
sentence, by inserting before the period ``, and waive the
requirement of citizenship in the case of not more than a
minority of the total number of directors''.
(b) Technical Amendment to the Revised Statutes.--Section
329 of the Revised Statutes of the United States (12 U.S.C.
11) is amended by striking ``to be interested in any
association issuing national currency under the laws of the
United States'' and inserting ``to hold an interest in any
national bank''.
(c) Repeal of Unnecessary Capital and Surplus
Requirement.--Section 5138 of the Revised Statutes of the
United States (12 U.S.C. 51) is repealed.
SEC. 1244. CONFORMING CHANGE TO THE INTERNATIONAL BANKING ACT
OF 1978.
Section 4(b) of the International Banking Act of 1978 (12
U.S.C. 3102(b)) is amended in the second sentence, by
striking paragraph (1) and by redesignating paragraphs (2)
through (4) as paragraphs (1) through (3), respectively.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Iowa (Mr. Leach) and the gentleman from New York (Mr. LaFalce) each
will control 20 minutes.
The Chair recognizes the gentleman from Iowa (Mr. Leach).
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
(Mr. LEACH asked and was given permission to revise and extend his
remarks and include extraneous material.)
Mr. LEACH. Mr. Speaker, the amendment being offered today, S. 1452,
the Manufactured Housing Improvement Act combines a number of important
banking and housing proposals that are supported in the House on a
bipartisan basis.
With regard to housing, the committee amendment takes from H.R. 1776,
the American Homeowners Act, which passed the House by a vote of 417 to
8 on April 6. There are also provisions drawn from H.R. 202, Preserving
Affordable Housing for Seniors and Vulnerable Families into the 21st
Century, another bipartisan bill designed to help the elderly and
disabled with their housing needs which passed the House on September
27 by a strong vote of 405 to 5.
Let me stress that the housing provisions in this bill are a
testament to the extraordinary work and thoughtfulness of the gentleman
from New York (Mr. Lazio), who is the chairman of the subcommittee, and
reflect substantial bipartisan input from the minority, particularly
the gentleman from New York (Mr. LaFalce) and the gentleman from
Massachusetts (Mr. Frank).
Affordable housing is increasingly out of the reach for many
Americans. A strong economy has created a situation where in many parts
of the country the price of housing is simply going up faster than
income levels.
Secondly, although interest rates are not as high as at other times
in our history, an unprecedented differential has nevertheless come
into being between inflation and long-term interest rates, making
financing of a home purchase extremely difficult.
[[Page H10684]]
Today more than 3 million working households spend half their income
on housing. Of these, more than 220,000 are educators, police and
public safety officers. In many cases, these public servants are
precluded, due to high housing costs, from living in the communities
they serve.
{time} 1715
These are the people who teach our children and protect our homes and
families. H.R. 1776, for the first time, creates unique housing
opportunities for these working families who have been unable to
achieve the dream of owning a home, particularly in the communities in
which they serve.
This bill provides access to low-interest rate loans and 1 percent
down payments on Federal Housing Administration, FHA, insured mortgages
for teachers and public safety officers. We also authorize a pilot
program to assist law enforcement officers, including correctional
officers, to purchase homes in locally designated high crime areas with
no down payment. In this way, we achieve not only a homeownership goal
but community development objectives as well.
The provisions included in this bill from H.R. 202 will help the
elderly and disabled immensely and facilitate the construction and
financing of more facilities for these populations. Included are
innovative homeownership programs to empower low-income and disabled
recipients of Section 8 housing assistance to apply that assistance
towards buying a home.
The bill also contains important provisions modernizing the Federal
manufacturing housing regulatory regime, helps Native Americans and
Native Hawaiians, and contains many more provisions that will improve
our Nation's housing and increase homeownership opportunities.
In legislation, there is never a perfect agreement. The manufactured
housing provisions, for example, while neither exactly what the
consumers nor industry have advocated, represent a middle ground that
both sides can support. Manufactured housing is an important part of
America's housing mosaic. Modernizing the reform and regulations
governing manufactured housing is long overdue. It is critical to the
economy to improve the quality and affordability of such housing in the
context of maintaining consumer protection and safety.
With regard to the banking provisions of the bill, the legislation
includes several provisions that the House has previously approved this
session in separate pieces of legislation, combined with
noncontroversial bipartisanly supported elements of the regulatory
relief package. Many of these regulatory provisions were contained in
H.R. 4364 of the 105th Congress, which the House approved by a voice
vote 2 years ago, and were carried over this session in legislation
introduced in the House by the gentlewoman from New Jersey (Mrs.
Roukema), the distinguished chair of our Subcommittee on Financial
Institutions and Consumer Credit, and to her I extend a great debt of
gratitude.
In this package, we are also renewing, some with slight changes,
reporting requirements by the executive branch and independent
regulators in some 45 instances, largely as provided for in legislation
passed by the House last year on a voice vote. Included is the
semiannual report to Congress and the Federal Reserve Board on the
conduct of monetary policy.
While the reports being renewed are deemed important for the
oversight work of the Committee on Banking and Financial Services, I
know of no more important oversight responsibility of the Congress than
the review of the Fed's conducted of monetary policy.
With regard to the Federal Reserve System, there is one other section
of the bill that deserves note. This is a section that provides pay
parity for Fed Governors and their cabinet and subcabinet counterparts.
Let me conclude by thanking all of those Members and staff on both
sides of the House who have participated in putting together this
legislation before us today and to thank, in particular, the ranking
member, the gentleman from New York (Mr. LaFalce), who has contributed
much to all aspects of this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
(Mr. LaFALCE asked and was given permission to revise and extend his
remarks and include extraneous material.)
Mr. LaFALCE. Mr. Speaker, the bill we are now considering includes
not only the Manufactured Housing Improvement Act, largely the House
version, but a number of other initiatives that have broad bipartisan
support, including other housing proposals; language reauthorizing the
Humphrey-Hawkins report and other key consumer and housing reports; and
also some technical changes of importance to the United States Mint and
to the banking and thrift regulators.
With respect to the housing provisions, this bill includes a number
of provisions with bipartisan support that have been pulled together
from various homeownership and elderly housing legislation that has
previously passed the House but been stymied in the Senate. This bill
addresses the challenge of meeting the affordable housing and health
care needs of our growing elderly population. In particular, I am
pleased that the House is again acting on my initiative to make FHA
reverse mortgages more affordable when used to buy long-term care
insurance. This provision has recently been enhanced by adding a
requirement that any long-term care insurance policy must comply with
disclosure, suitability and contingent nonforfeiture requirements
recently adopted under the National Association of Insurance
Commissioners model regulation in order to qualify for the lower
premium.
The bill also includes a number of provisions designed to encourage
mixed income, mixed finance elderly housing, and it increases
flexibility for federally funded service coordinators and provides more
resources to sponsors of existing elderly housing to make needed
capital repairs.
I am also pleased to see adoption of a bill I introduced to authorize
1 percent down FHA loans for teachers, policemen, and firemen buying a
home in their school district or employing local jurisdiction on a 3-
year demonstration basis. This strengthens the ties of our local public
servants to their local communities creating an important nexus between
where teachers and public safety officials work and where they live.
This bill also represents a balanced resolution of the 3-year efforts
to reform our manufactured housing legislation. I would point out that
the final product reflects a number of Democrat pro-consumer
initiatives. For the first time, we will be establishing a national
Federal installation standard and requiring that there be a dispute
resolution process in each State to adequately address consumer
complaints. With regard to the process of updating our construction and
safety standards, we have revised the initial legislation to put HUD
back in charge of setting standards and have balanced the consensus
committee process and eliminated its strong role in setting enforcement
regulations, as proposed in previous drafts of this bill.
The provisions in this bill dealing with manufactured housing
regulation reflect some 3 years of discussions and negotiations that,
in my opinion, have transformed the legislation from being strongly
tilted toward industry to being a balanced approach which includes two
new, critically important proconsumer initiatives.
In April 1998, the majority party in the House introduced
manufactured housing legislation with a worthy goal--that of
establishing a consensus committee to provide recommendations to HUD to
update manufactured housing construction and safety standards--but
drafted with an anticonsumer, pro-industry slant. Through negotiations
over the last 3 years, Democrats have won major concessions to address
concerns expressed by AARP and other consumer groups. I would like to
briefly compare the original draft to the revised bill before us today.
The original bill failed to address the fact that many states have
weak, and in some cases, no installation standards. As a result, even
well-built manufactured homes which are incorrectly installed can
create health and safety risks, and impose unnecessary costs to a
homeowner that must subsequently make repairs. At the urging of
Democrats, this bill has been revised to require HUD to develop and
impose model installation standards. States that wish to have their own
installation standards may continue to do so, as long as they provide
protections comparable to the
[[Page H10685]]
model standards. However, HUD is charged with enforcing the model
standards in those states that do not have comparable standards.
In addition, the original bill did not include provisions to address
the so-called ``ping pong'' effect, in which consumers have difficulty
getting defects repaired, as manufacturers and installers point fingers
at each other, each refusing to take responsibility. The revised bill
requires states to order correction of defects at no cost to the
homeowner.
With regard to the main text of the original bill, the major problem
was that it effectively ceded control of both construction and safety
standards, as well as enforcement regulations, to an industry-dominated
consensus committee. It did this by giving that committee authority to
promulgate regulations, which the HUD Secretary could reject or modify
only if ``implementation of such standard or regulation would
jeopardize public health or safety or is inconsistent with the purposes
of this title.''
The revised bill restores HUD control and autonomy over enforcement
regulations, limiting the consensus committee role to making
recommendations, which HUD can summarily reject. With regard to
construction and safety standards, the revised bill removes the
provision under which consensus committee recommendations could become
effective if HUD took no action on such recommendations within one
year.
With regard to the basic purposes of manufactured housing regulation,
the original bill replaced the decades old purposes of reducing
injuries, property damage, and insurance costs in favor of a mandate
``to promote availability of affordable manufactured homes.'' The
revised bill reinstates proconsumer purposes and deletes references to
the promotion of industry.
The original bill created a consensus committee whose composition of
membership was heavily tilted towards industry. Moreover, members would
have been appointed by a private administering organization, with
almost no HUD veto power over such appointments. In contrast, the
revised bill provides for a balanced committee, with one third of the
members to be from industry, one third from consumer organizations, and
one third from a public interest category. Moreover, the revised bill
gives HUD final authority over the appointment of individual members.
Finally, unlike the original bill, the revised bill directs the HUD
Secretary to furnish technical support to consumer representatives on
the consensus committee, upon a showing of need.
The result is that we have developed a balanced approach to the
worthy goal of updating our manufactured housing construction and
safety standards, while creating two new proconsumer initiatives
designed to make manufactured housing more safe and more affordable.
Mr. Speaker, I would also like to give special recognition to a
number of individuals who have been extremely helpful in promoting this
particular aspect of the legislation: the gentleman from Indiana (Mr.
Roemer), the gentleman from Iowa (Mr. Boswell), the gentleman from
North Carolina (Mr. Price), and the gentleman from Illinois (Mr.
Evans).
Finally, the legislation includes a number of noncontroversial but
important provisions in the housing area, including technical
corrections of the Private Mortgage Insurance Act, Native Hawaiian
housing legislation, Native American housing legislation, and a number
of rural housing provisions. The package also contains other important
initiatives that have had broad bipartisan support in our House,
including, as I said, legislation reauthorizing the critical Humphrey-
Hawkins report and a number of other important consumer and housing
reports that are essential in helping the authorizing committee shape
policy, technical corrections required by the U.S. Mint, and technical
changes intended to remove some inefficiencies in the bank and thrift
regulatory system.
Both Republicans and Democrats have played an important role in
developing provisions of the bill before us today. One might well
dispute whether this legislation should be expanded to include
additional provisions. I think it should. But I think we have done a
good job of selecting a limited number of critical noncontroversial
provisions that we ought to enact into law prior to adjournment.
Mr. Speaker, I reserve the balance of my time.
Mr. LEACH. Mr. Speaker, I yield 3\1/4\ minutes to the gentlewoman
from New Jersey (Mrs. Roukema), the distinguished chair of the
Subcommittee on Financial Institutions and Consumer Credit.
Mrs. ROUKEMA. Mr. Speaker, I thank the gentleman for yielding me this
time, and I rise in strong support of this legislation. It
comprehensively addresses so many banking issues, including important
housing provisions and regulatory burden reduction provisions, as have
been very well outlined by our chairman and by the ranking member, the
gentleman from New York (Mr. LaFalce).
I also specifically want to thank the chairman of the Committee on
Banking and Financial Services for his leadership in bringing these
bills to the floor, this one and the one to follow today. It is very
important.
But let me comment, Mr. Speaker, on the important regulatory burden
relief provisions of the bill. Congress has a responsibility and a duty
to assure that the Federal laws and regulations and the supervisory
system promote the safety and soundness of the banking system. We are
not undermining that in any way here. That is absolutely protected. But
there are unnecessary regulatory burdens on which we have agreed with
broad bipartisan support; and those regulatory burdens, by their very
nature, have had the proven effect of undermining the ability of banks
to operate efficiently and effectively. I think this bill addresses
those in a very meaningful way.
I am pleased that the bill we are considering today contains several
provisions that were part of the bill. The chairman recognized my
leadership on H.R. 158, the Depository Institution Regulatory
Streamlining Act, which I had introduced in Congress. It was similar to
the legislation that was passed in the 105th Congress but,
unfortunately, did not go anyplace. Fortunately, we have focused on
this, we are going to get this passed; and I am pleased to be here in
that regard.
But I also want to strongly support the issue of the Private Mortgage
Insurance Technical Corrections and Clarifications included in this
legislation. These provisions will eliminate the confusion that has
resulted from the implementation of the Homeowners Protection Act of
1998. In particular, the bill clarifies cancellation and termination
issues, known as the PMI, Private Mortgage Insurance, section, as
Congress intended. The clarification is absolutely necessary.
These provisions mirror legislation which I introduced, and it
mirrors legislation introduced by the gentleman from Utah (Mr. Hansen).
And I want to particularly mention this because I do not see the
gentleman from Utah (Mr. Hansen) here today. His leadership should be
commended and recognized by all of us in terms of this PMI component.
The bill passed the House on May 23 of 2000, and I am thankful that the
chairman has continued to recognize the importance of these provisions.
I will say, in conclusion, Mr. Speaker, that this bill will create a
new doorway to homeownership for millions of Americans, as the chairman
outlined, who, under present law, cannot qualify. I am pleased to be a
partner with the chairman and with the ranking member in seeing to it
that this legislation is passed.
Mr. Speaker, I rise in strong support of S. 1452 which
comprehensively addresses so many banking issues, including important
housing provisions and regulatory burden reduction provisions as have
been outlined by our chairman. I thank the chairman of the Banking
Committee for his leadership in bringing this bill to the floor. It is
necessary that Congress address these issues this year, and I urge
passage of this bill.
I have been very involved in several of this legislation's
provisions, and I want to comment on some of the significant parts of
this bill that will resolve many of these issues once and for all.
First, I want to comment on the important regulatory burden relief
provisions of the bill. Congress has a responsibility and duty to
assure that the Federal laws and regulations and the supervisory system
promote the safety and soundness of the banking system. Unnecessary
regulatory burdens by their very nature have the effect of undermining
the ability of banks to operate efficiently and effectively.
I am pleased that the bill we are considering today addresses several
provisions that were part of H.R. 1585, the Depository Institution
Regulatory Streamlining Act, which I introduced this Congress. Many of
these provisions were also a part of similar legislation I introduced
and which passed the House in the 105th Congress. These provisions
cover a wide variety of issues, such as removing restrictions on the
number and term of national
[[Page H10686]]
bank's board of directors, and permitting expedited processing for
certain corporate reorganizations. These issues are really too
technical to elaborate on here, but they are important and I am pleased
that the chairman has included them in this legislation.
Second, I strongly support the Private Mortgage Insurance Technical
Corrections and Clarifications included in this legislation. These
provisions will eliminate some confusion that has resulted from
implementation of the Homeowners Protection Act of 1998. In particular,
this bill will clarify cancellation and termination issues to ensure
that homeowners will be able to cancel private mortgage insurance
(``PMI'') as Congress intended in 1998. This clarification will
particularly be helpful to those with certain adjustable rate
mortgages. The bill also ensures that ``defined terms'' such as
``adjustable rate mortgage'' and ``balloon mortgages' are used
consistently and appropriately. These provisions mirror H.R. 3637,
which I introduced with the chairman and it mirrors legislation
introduced by Mr. Hansen of Utah. His leadership should be commended.
This bill passed the House May 23, 2000, and I am thankful that the
chairman has continued to recognize the importance of these provisions
and include them in this piece of legislation. This will create a new
doorway to homeownership for millions of Americans who under present
law can not qualify.
In summary, I want to express my strong support for this bill. Again,
I thank the chairman for his leadership on this legislation in
particular, as well as for his leadership throughout his term as
chairman of the Banking Committee.
Mr. LaFALCE. Mr. Speaker, I yield 5 minutes to the gentleman from
Massachusetts (Mr. Frank), the ranking member of the Subcommittee on
Housing and Community Opportunity.
Mr. FRANK of Massachusetts. Mr. Speaker, I would like to begin with a
colloquy with the chairman of the full committee.
Mr. Chairman, as I read this bill, the manufactured housing
legislation would require the Secretary to 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. While the goal of the legislation is to require HUD
Secretaries to use multiple contractors for various program functions,
would the gentleman agree that any HUD Secretary should not be
prevented from consolidating or reconfiguring contracts, in the event
insufficient or inadequate bids are received by HUD, in order to carry
out its regulatory functions?
Mr. LEACH. Mr. Speaker, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentleman from Iowa.
Mr. LEACH. I would advise the gentleman that I agree.
Mr. FRANK of Massachusetts. Mr. Speaker, reclaiming my time, I thank
the chairman. That would have been a terrible anticlimax had he not.
Mr. Speaker, I rise in support of this legislation. It is a product
of the legislative process, and it is a product of a legislative
process in a democracy, which means it is a good bill with some
imperfections. Personally, I would like to see some changes in the
manufactured housing section.
I want to talk about manufactured housing briefly. Manufactured
housing is a very important housing resource, particularly for people
of limited income. It has not been given the respect it deserves in our
law. This legislation, on the whole, with regard to the regulation of
manufactured housing, the ability of the manufactured housing industry
to produce the housing, and the rights of the people who live in it,
improves the law in this area. It does not improve it enough, in my
judgment; but I believe that taken overall, the provisions in this
legislation are better than existing law. It will be my intention to
work in the future to try to further improve it.
{time} 1730
But I do want to stress that this is, in part, a recognition of the
importance of manufactured housing as a housing resource, particularly
for people of moderate incomes; and it also improves the situation
insufficiently, but improvement is better than the alternative. And I,
therefore, support the bill.
I appreciate the chairman's acknowledging, particularly in this
colloquy, that we do intend to give HUD some flexibility in carrying
this out.
There are other important provisions in the bill. There are
provisions that do not on the whole commit new resources to housing.
Let me say, I regret that we were not able to work that out. There were
in many quarters, both here and in the other body, people willing to
add some funds for the production of housing. But in the constraints of
the legislative process, we did not get the unanimity that we needed
for that.
I want to express my appreciation to those on both sides of the aisle
and both sides of the building who were interested in that.
I hope that no matter who is in control of this place next year and
no matter who is the President, we will address the important issue of
housing production. We have a housing crisis in this country. We have
an economy that is booming and has helped many people. But it does not
help everybody equally, and some people are not helped at all.
There are many people in this country who are living in areas where
some have prospered in this new economy and they have not, and the
result has been an exacerbation of a housing crisis from which they
suffer. I think we have an obligation morally, and it makes sense
economically, to help with the production of housing.
Indeed, many parts of the country, including the one I represent, the
high cost of housing and lack of affordability becomes a problem in
trying to employ public employees. One of the things we have in this
bill is an effort to deal with the stress that has been placed
financially on public employees who are expected to live in a certain
community but cannot afford to live there because of these trends. It
also becomes a problem for employers. It becomes a problem in trying to
get a rational distribution of employees.
So I again note that this bill has some good things in it, but the
thing that it has in it involves flexibility in the use of existing
resources. Those are important, and I am glad to be supportive of the
bill that provides them, but they leave undone the important task of
getting into a production program. And I look forward to our being able
to do that next year.
I was pleased in the conversations that went on around the
appropriations bill and this bill to see a number of people agreeing
that it is time to get back into a flexible and thoughtful housing
production program to help with the affordability crisis, and I look
forward to us being able to work on that together next year.
There are provisions in this bill that also deal with the problems of
people who live in subsidized housing and whose owners use provisions
of the law that have been put in years ago that were pretty dumb
provisions, but none of us here voted for them and so we were stuck
with them. It allows people who owned housing and who benefited from
Federal subsidies, now as the economy has changed and as the areas that
they have their housing has changed, to throw out in effect the
subsidized tenants, to turn affordable housing into unaffordable
housing.
This bill has some provisions that further help the tenant.
Unfortunately, we will lose some of those units eventually when the
tenants move out or move on. But this bill does do something to help.
And, therefore, overall, despite the gaps, it is very much worth
supporting.
Mr. LEACH. Mr. Speaker, I yield 5 minutes to the distinguished
gentleman from Nebraska (Mr. Bereuter).
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, I thank the chairman for yielding me the
time.
Mr. Speaker, along with many of this Member's colleagues on the
committee, this Member has a long history of initiating and supporting
measures which promote homeownership. This bill is another substantial
step toward this and other worthy ends.
This Member would particularly like to express his appreciation to
the distinguished gentleman from Iowa (Mr. Leach), chairman of the
committee, and the distinguished gentleman from New York (Mr. LaFalce),
the ranking minority member, and the distinguished gentleman from New
York (Mr. Lazio) and the gentleman from Massachusetts (Mr. Frank).
[[Page H10687]]
The legislation contains many of the same provisions that were in the
American Homeownership and Economic Opportunity Act, H.R. 1776, which
passed the House by a vote of 417-8 on April 6 of this year with this
Member's support. Unfortunately, the other body has yet to act on that
legislation.
Now, for most Americans, the biggest and most important investment
they make is to purchase a home. Homeownership gives an individual or
family a sense of pride in themselves, their home, as well as their
community. This legislation advances the opportunity for homeownership
by Americans across the entire country.
Mr. Speaker, the following are, in this Member's opinion, among
others, six significant provisions of S. 1452, which this Member would
emphasize.
One, this legislation allows families to use their Federal monthly
assistance as resources for a housing down payment.
Two, this legislation would allow borrowers of the Rural Housing
Service single-family loans to refinance either an existing section 502
direct or guaranteed loan to a new section 502 guaranteed loan
providing the interest rate is at least equal or lower than the current
interest rate being refinanced and the same home is used as security.
This Member supports this legislation as it utilizes the RHS section
502 program. In particular, this loan guarantee program, which was
first authorized because of this Member's initiative but with the
energetic support of my colleagues and the chairman, has been very
effective in bringing homeownership opportunities for non-metropolitan
communities by guaranteeing loans made by approved lenders to low- and
moderate-income households.
In particular, since its inception as a pilot program in 1991, the
section 502 program has facilitated over $10.2 billion in lending in
non-metropolitan areas, with a very low default rate. This translates
into 151,000 loans to families thus far.
Third, this legislation extends the grandfather status until the 2010
census for similarly situated cities nationwide like Norfolk, Nebraska,
in my district, or several cities in Texas and a limited number of
other communities, to continue to be able to use the USDA Rural Housing
Service programs. The current grandfather clause until the 2000 census
needs to be extended.
Fourth, this legislation also includes a permanent authorization of
section 184, the Native American Loan Guarantee program, which again
this Member had something to do with along with his colleagues.
A very conservative estimate would suggest that the section 184
program should annually facilitate over $72 million in guaranteed loans
for privately financed homes for Indian families living on reservations
who in reality would have no other alternative due to the trust status
of Indian reservation land.
Fifth, a provision is included in the act which would create the
Indian Lands Title Report Commission to approve the procedure by which
the Bureau of Indian Affairs conducts title reviews in connection with
the sale of Indian lands. This provision is identical to a bill that
this Member introduced earlier in this Congress.
Moreover, this Commission should facilitate the section 184 program
to benefit additional Native Americans in purchasing homes.
I would say to the gentleman from New York (Mr. LaFalce) that I
learned just a few minutes ago that he had some concern about the way
the commission was appointed and recommended. I would just vouch and
pledge that I will work with the gentleman in finding an equitable
solution on that issue. I was unaware of the content in that particular
provision.
Mr. Speaker, I yield to the gentleman from New York (Mr. LaFalce).
Mr. LaFALCE. Mr. Speaker, I assure the gentleman that in the next
Congress I will consult with the minority before appointing Members.
Mr. BEREUTER. Mr. Speaker, reclaiming my time, whatever the case may
be, we will work on it together.
Sixth, this Member is pleased that, as a matter of equity, S. 1452
extends Native American housing assistance to Native Hawaiians. In
particular, it applies the Section 184 Loan Guarantee program to those
American citizens who would reside on the Hawaiian homelands.
Mr. Speaker, in closing, this Member, because of the many provisions
that relate to housing and many other reasons, would encourage his
colleagues to vote in support of S. 1452.
Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman from Texas (Mr. Bentsen) will be managing
the next banking bill. So this will be the last banking bill that the
chairman of the full committee and I will be managing together.
I want to take this opportunity to say that it has been my pleasure
to serve with the gentleman for 24 years. I have been in Congress 26
years. In all that time, I have never had a finer chairman, there is no
question about it, with respect to knowledge, dedication, integrity,
perseverance, tenacity. And the world should know it. He has been a
great chairman. It has been a pleasure and an honor to serve with him.
Mr. Speaker, I yield 3 minutes to the gentleman from Indiana (Mr.
Roemer).
Mr. ROEMER. Mr. Speaker, I thank my good friend, the gentleman from
Texas (Mr. Bentsen), for yielding me this time.
Mr. Speaker, first of all I want to join in praising the bipartisan
bill to help improve affordable housing opportunities in the American
dream for more and more Americans.
I have a number of employees and employers in the manufactured
housing industry in my State of Indiana, and one in four of every new
homes built in America is a manufactured home.
At the same time that we hear that very important statistic, we look
down this street, down Pennsylvania Avenue at HUD, and we have not
updated the code to treat those homes in a fair manner with consumer
and homeowner perspectives in mind in over 25 years. It is high time
that this body in a bipartisan way recognize the great quality homes
that are manufactured in this country, recognize that these homes have
changed dramatically over the last 20 years; many of them now two
stories with wrap-around decks and porches, basements. We cannot tell
by looking at them from the street that they are manufactured housing.
Still, we have not worked enough in a bipartisan way until the
gentleman from Iowa (Mr. Leach), the gentleman from Massachusetts (Mr.
Frank), and the gentleman from New York (Mr. LaFalce) have finally put
this bill together. So I strongly applaud those efforts to bring this
bill to the floor. I hope, Mr. Speaker, that this bill will be passed
by the Senate and that we do not go another year on top of the 25 and
26 years that we have waited for consumers and homeowners, for people
all across this country, to see a modernization and an updating in the
code for these houses to make sure that they are safe, to make sure
they reflect the needs and concerns of homeowners today.
So I want to again applaud the chairman for bringing this bill today,
in October, to the floor. We hope that the Senate will take this up and
pass it, and we hope that we will be able to see HUD develop these new
regulations and codes so that more and more Americans can achieve the
dream of homeownership.
Mr. Speaker, I rise today in support of S. 1452, the Manufactured
Housing Improvement Act. I want to commend Chairman Jim Leach, Ranking
Member John LaFalce, Representative Barney Frank and HUD Secretary
Andrew Cuomo, for their hard work in developing this bill.
This is a bipartisan bill which has the support of the manufactured
housing industry, the Administration, and major consumer groups,
including the AARP. It has taken a lot of time and effort to get to
this point. They deserve credit for their hard work.
This legislation is long overdue. It has been 25 years since the
federal regulations governing the manufactured housing industry have
been updated. Since that time, the industry has undergone tremendous
changes. It is important that the federal regulations be updated to
keep pace with these changes.
For example, there are more than 150 proposed changes to construction
and safety standards currently pending at HUD. Some of these are more
than five years old. This kind of backlog is not beneficial to either
the manufacturers or the purchasers of these homes. S. 1452 provides
for the creation of a consensus committee, made up of industry,
government and consumer representatives, to streamline
[[Page H10688]]
the review process and ensure that proper standards are in place and
effectively updated and enforced. This is a major step forward.
I would point out that manufactured housing is a key to home
ownership in America. Almost one of every four new homes in America is
a manufactured house. This is the preferred choice for a growing number
of Americans, including first-time homebuyers, young families and
senior citizens. At a time when more than 5.3 million Americans pay
over 50% of their income in rent, an affordable manufactured home is an
attractive option which we should be encouraging.
I am very proud to represent a district that is home to much of the
manufactured housing industry. In fact, this industry employs some
20,000 people in Indiana and has a total economic impact of nearly $3
billion per year.
Mr. Speaker, I have visited many of the factories in my district and
seen firsthand the remarkable progress which this industry has made
over the years in the design, layout and style of homes. Clearly, this
industry is committed to innovation, safety and affordability. We need
to do our share at the federal level to work with the manufactured
industry, and to support the growing number of Americans who desire to
purchase their own home. I urge my colleagues to support this bill.
Mr. LaFALCE. Mr. Speaker, I yield back the balance of my time.
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank my distinguished friend. And would I
reciprocate. I cannot think of a finer individual to work with on this
committee.
I would just like to conclude with two quick observations. One, this
bill, at the leadership of the gentleman from Nebraska (Mr. Bereuter),
includes some of the most important Native American housing initiatives
ever before the Congress.
It also includes a provision by the gentleman from Wisconsin (Mr.
Green) that will allow police officers who choose to live in high-crime
areas access to FHA, no-down-payment provisions for housing.
Mr. Speaker, I believe this is a very solid consensus bill, and I
would urge its adoption.
Mr. RILEY. Mr. Speaker, today I rise in praise of my colleagues on
the House Banking Committee, particularly Chairman Leach, and Mr.
Lazio, for their work on legislation to bring long-awaited reforms to
the overall housing industry. On the whole, I believe that S. 1452 is a
bill with which we can all be satisfied.
I am pleased to see that several components of H.R. 1776, the Housing
and Economic Opportunity Act, have been included in the Senate
legislation. My friends on both sides of the aisle may recall that
earlier this year we worked together in passing H.R. 1776 by a
resounding vote of 417 to 8.
I do, however, take issue with an omission that may ultimately effect
the number of families who are able to realize the American Dream of
homeownership. The provision omitted from S. 1452 is Section 102 of
H.R. 1776, requiring the Federal Government to perform a housing impact
analysis before issuing any new regulations. The impact analysis would
determine whether the proposed regulations would have a negative effect
on affordable housing. In the context of Section 102, ``significant''
is any increase in overall consumer housing costs by more than
$100,000,000 each year. This section of the bill would also permit the
private sector to offer an alternative plan to the proposed regulations
if such a plan would lessen any negative effect on homeownership cost.
The excluded section would have required a housing impact analysis be
performed to alert federal agencies and the general public as to the
impact that such regulations may have on housing affordability. Such
analysis would help bring down the cost of a home by minimizing those
regulations obstructing the purchase of a home. The housing impact
analysis addresses this issue by requiring the Federal government to
perform an ``internal check'' of sorts. This internal check would
effectively ensure that more people would have access to homeownership.
Mr. Speaker, I see this internal check as a positive step and I am
concerned that such a positive step--which was supported by 417 of my
colleagues here in the House--was not included in the legislation
before us today. I sincerely hope that this concept does not die with
the closing of the 106th Congress, but is reexamined next year, in the
formative months of the 107th.
Mr. SESSIONS. Mr. Speaker, I rise to voice my support for S. 1452.
This legislation contains many provisions that will have a positive
impact on homeownership and ensure that housing is affordable for more
Americans. As a former Member of the Housing Subcommittee, I know how
hard my friend Chairman Rick Lazio has worked with Members of the House
and Senate to bring this legislation to the floor today.
Mr. Speaker, S. 1452 contains many of the provisions of legislation
originally passed by the House, H.R. 1776, the ``Housing and Economic
Opportunity Act''. I was proud to manage the Rule that enabled the bill
to be passed by the House by an overwhelming margin.
One important provision of this legislation is the Law Enforcement
Officer Homeownership Pilot Program that assists law enforcement
officers in purchasing a home in a locally designated high-crime area.
Specifically, the program would enable law enforcement officers to
include the downpayment, closing costs and origination fee in the loan
amount. I strongly support this provision and believe that it will help
make our communities safer for our children.
I do regret, however, that Section 102 of H.R. 1776 was not included
in S. 1452. This section would require that the Federal Government
perform a housing impact analysis before it issues new regulations.
Such an analysis would make it more difficult to implement regulations
that would impose a significant cost to consumers who wish to buy
homes. Furthermore, the private sector would have the opportunity to
offer alternative regulations if the government-created regulations
exceeded a certain cost.
Although this section was not included in an attempt to reach
consensus on the overall legislation, the Republican-led Congress and
myself remain committed to stopping burdensome regulations as they are
proposed by government agencies.
Mr. KANJORSKI. Mr. Speaker, I rise today to commend Chairman Leach
and Ranking Member LaFalce for their tireless work on moving
legislation that brings some much-needed reforms to the housing and
banking industries. S. 1452, the American Homeownership and Economic
Opportunity Act, is for the most part valuable legislation that
deserves our support.
As you know, Mr. Speaker, our economy continues its record expansion,
and our nation has achieved its highest homeownership rate in its
history. The 1993 Budget Act helped to form the foundation on which
these accomplishments have been built. The budget policies outlined in
that law have contributed to record budget surpluses, lower interest
and mortgage rates, more than seven 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. S. 1452 addresses many of these
inequities.
Specifically, S. 1452 contains many provisions of H.R. 1776,
legislation previously passed by the House in April by an overwhelming,
bipartisan vote of 417 to 8. Like H.R. 1776, S. 1452 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. It will also help
schoolteachers, police officers, and firefighters to purchase homes in
the jurisdiction that employs them with reduced downpayments in
addition to restructuring and streamlining manufactured housing
standards. Furthermore, it will allow elderly homeowners to refinance
their reverse mortgages while establishing consumer protections to
shield them against fraud or abuse. Finally, S. 1452 contains language
to reauthorize numerous reports by federal banking regulators, some
regulatory relief for financial institutions, and provisions to improve
financial contract netting in bankruptcy cases.
Although S. 1452 is a good beginning, we still need to do more to
encourage economic investments in underserved communities. After all,
increased homeownership rates often flow from increased prosperity.
That is why I hope that before the 106th Congress completes its work we
will pass the Administration's New Markets Initiative and the Speaker's
Community Renewal proposal. This legislation passed the House in July
on a strong, overwhelming, and bipartisan vote of 394 to 27. This
program includes tax credits and guaranteed loans for private firms to
invest in targeted communities and small businesses.
When the House considers the Community Renewal and New Markets Act of
2000, I also hope that it will include the text of H.R. 4314,
Anthracite Region Redevelopment Act of 2000. This legislation, which
has the bipartisan support of the four Members of Congress
who represent the anthracite coal region in Eastern Pennsylvania, will
provide interest-free capital by authorizing a qualified entity to
issue special tax credit bonds. Proceeds from the sale of the bonds
will then be used to fund comprehensive environmental restoration and
economic development of the twelve counties making up the anthracite
coal region of Pennsylvania.
Additionally, while I am pleased that S. 1452 contains several
important components of H.R. 1776 as well as other needed reforms, one
particular omission concerns me. Unfortunately, this omission may
ultimately have an
[[Page H10689]]
effect on the number of families who will realize the dream of
homeownership.
One provision not included in S. 1452 is Section 102 of H.R. 1776.
Section 102, as my colleagues may recall, would require federal
agencies to perform a housing impact analysis before issuing new
regulations. The impact analysis would determine if a significant
negative impact on affordable housing would result from those new
regulations. We would define ``significant'' as increasing consumers'
housing costs by more than $100 million per year. Further, Mr. Speaker,
H.R. 1776 stipulates that the private sector would have an opportunity
to submit an alternative to the proposed regulation if it would have
less of a negative impact on the cost of homeownership.
As with the other provisions in Title I of H.R. 1776, the goal of the
housing impact analysis is to alert federal agencies and the general
public of the effects of a regulation on housing affordability.
Ultimately, the objective would help lower the cost of a home by
minimizing regulations that pose a barrier to homeownership. The
housing impact analysis addresses this issue by requiring the federal
government to perform an ``internal check'' of sorts in an attempt to
discern whether the agency might construct the rule in a better way
that would not lock some individuals out of homeownership.
Mr. Speaker, I view this internal check as a positive action, and I
am concerned that we excluded this worthy provision, a provision 417 of
my colleagues supported, from the bill that comes before us today.
although this legislative provision will die with the closing of the
106th Congress, I hope that we can revive this concept next year, with
the commencement of the 107th Congress.
In closing, Mr. Speaker, S. 1452 is a solid piece of legislation that
helps more people become homeowners in very innovative ways. Because
increased homeownership rates strengthen communities, I support S. 1452
and encourage my colleagues to vote for its passage.
Mr. EHRLICH. Mr. Speaker, I rise today to commend the hard work of
House Banking Committee Chairman Jim Leach and the Housing and
Community Opportunity Subcommittee Chairman Rick Lazio on moving
legislation (S. 1452) that will bring much-needed reform to the housing
industry in the United States.
I am particularly pleased that several provisions of H.R. 1776, the
Housing and Economic Opportunity Act, have been included in the
legislation we consider before us today. There is, however, one
provision of H.R. 1776 that is important to removing barriers to
homeownership which has been excluded.
The provision omitted from S. 1452, which was previously contained in
the bipartisan-supported H.R. 1776, requires the Federal government to
perform a housing impact analysis before it issues new regulations.
This commonsense provision is consistent with my philosophy of reducing
and avoiding excessive government regulations. In short, the housing
impact analysis determines if a significant negative impact on
affordable housing would result from the proposed housing regulation,
and provides the private sector an opportunity to submit an alternative
to the proposed regulation.
Mr. Speaker, I view this provision as a responsible and fair method
of minimizing the unnecessary impact of federal regulations and as an
opportunity for the private sector to provide more input to their
government regulators. Accordingly, I rise in strong support of S. 1452
with the hope that this provision to reduce government regulation and
prevent barriers to affordable housing is reconsidered during the 107th
Congress.
Mr. CAPUANO. Mr. Speaker, I rise in support of S. 1452, the American
Homeownership and Economic Opportunity Act of 2000. This important
legislation contains numerous provisions that will help low- and
moderate-income Americans purchase their own home.
Two provisions in this bill are particularly important to my
District. The first allows the Department of Housing and Urban
Development to provide enhanced Section 8 vouchers to tenants living in
buildings where the owner opted out of the program prior to 1995. There
are a number of these developments around the nation, including one in
my District, where tenants are at risk of being forced from their homes
because of large rent increases. This important step will allow these
residents to stay in their homes without the constant threat of
eviction.
The second provision has already passed this House as part of H.R.
1776 earlier this year, but I am especially pleased that it is included
in this legislation as well. It is estimated that more than 1.5 million
children are being raised by their grandparents or other relatives
because of divorce, death, or other circumstances. Many of these
families live in public or subsidized housing in both urban and rural
communities, although their unique needs may not be best served in
these situations.
A group in my District, Boston Aging Concerns/Young and Old United,
has developed the first affordable housing in the country designed
specifically for grandparents raising their grandchildren. This
innovative development, called the Grandfamilies House, has a
playground, computer learning center, and after-school programs to
serve the children, as well as service coordinators, and exercise
classes for the elderly residents.
The provision included in this bill will give non-profit groups
greater flexibility with HOME and Section 8 funds so that more of these
developments can be built. The staff of the Grandfamilies House has
already had inquiries from groups across the country interested in
developing similar projects. It is my hope that enactment of this
legislation will help create new housing opportunities for these
families.
Mr. ROEMER. Mr. Speaker, I rise today in support of S. 1452, the
Manufactured Housing Improvement Act. I want to commend Chairman Jim
Leach, Ranking Member John LaFalce, Representative Barney Frank and HUD
Secretary Andrew Cuomo, for their hard work in developing this bill.
This is a bipartisan bill which has the support of the manufactured
housing industry, the Administration, and major consumer groups,
including the AARP. It has taken a lot of time and effort to get to
this point. They deserve credit for their hard work.
This legislation is long overdue. It has been 25 years since the
federal regulations governing the manufactured housing industry have
been updated. Since that time, the industry has undergone tremendous
changes. It is important that the federal regulations be updated to
keep pace with these changes.
For example, there are more than 150 proposed changes to construction
and safety standards currently pending at HUD. Some of these are more
than five years old. This kind of backlog is not beneficial to either
the manufacturers or the purchasers of these homes. S. 1452 provides
for the creation of a consensus committee, made up of industry,
government and consumer representatives, to streamline the review
process and ensure that proper standards are in place and effectively
updated and enforced.
I would point out that manufactured housing is a key to homeownership
in America. Almost one of every four new homes in America is a
manufactured house. This is the preferred choice for a growing number
of Americans, including first-time homebuyers, young families and
senior citizens. At a time when more than 5.3 million Americans pay
over 50 percent of their income in rent, an affordable manufactured
home is an attractive option which we should be encouraging.
I am very proud to represent a District that is home to much of the
manufactured housing industry. In fact, this industry employs some
20,000 people in Indiana and has a total economic impact of nearly $3
billion per year.
Mr. Speaker, I have visited many of the factories in my district and
seen firsthand the remarkable progress which this industry has made
over the years in the design, layout and style of homes. Clearly, this
industry is committed to innovation, safety and affordability. We need
to do our share at the federal level to work with the manufactured
industry, and to support the growing number of Americans who desire to
purchase their own home. I urge my colleagues to support this bill.
Mr. GARY MILLER of California. Mr. Speaker, I rise because I am
concerned that we left an important provision out of S. 1452. The
provision that has been omitted from S. 1452 is Section 102 of H.R.
1776, which requires the Federal government to perform a ``housing
impact analysis'' before it issues new regulations.
My district has shortage of affordable housing, and housing prices
are only increasing to the point where less and less people can afford
a home. Supply is not keeping up with demand, and as a result, many of
the people in my district and throughout the nation suffer. This
problem hits my lower income constituents the hardest.
That is why I supported creating a ``housing impact analysis,'' which
would determine if a significant negative impact on affordable housing
would result from new government regulations. The purpose of the
``housing impact analysis'' would be to alert local and federal
decision makers to how federal regulations would impact the
affordability of housing. I strongly believe that an analysis on the
cost of regulation would be a critical tool to help control the rising
cost of housing in my district, and throughout the country.
I know affordable housing is a key issue for many of my colleagues. I
anticipate working on the concept of a ``housing impact analysis'' as
we look forward to the 107th Congress.
Mr. LEACH. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Thornberry). The question is on the
motion offered by the gentleman from Iowa (Mr. Leach) that the House
suspend the rules and pass the Senate bill, S. 1452, as amended.
[[Page H10690]]
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the Senate bill, as amended, was
passed.
A motion to reconsider was laid on the table.
The title of the Senate bill was amended so as to read:
``A bill to expand homeownership in the United States, and
for other purposes.''.
____________________