[Congressional Record Volume 146, Number 135 (Wednesday, October 25, 2000)]
[Extensions of Remarks]
[Pages E1924-E1929]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000

                                 ______
                                 

                               speech of

                          HON. JAMES A. LEACH

                                of idaho

                    in the house of representatives

                       Tuesday, October 24, 2000

  Mr. LEACH. Mr. Speaker, following is a section-by-section analysis of 
S. 1452.

 S. 1452, Manufactured Housing Improvement Act of 2000 with Amendments


                           SECTION-BY-SECTION

       Section 1. Short Title and Table of Contents. States that 
     the act may be cited as the ``American Homeownership and 
     Economic Opportunity Act of 2000.''
       Section 2. Findings and purpose. Congressional findings are 
     that expanding homeownership opportunities should be a 
     national priority, that there is an abundance of conventional 
     capital available, that communities possess ample will and 
     creativity to provide opportunities uniquely designed to 
     assist their citizens to achieve homeownership, and that 
     consumers should have access to lending opportunities at 
     reasonable costs with knowledge behind lending decisions. 
     Purposes of the act are to encourage homeownership by 
     families not otherwise able to afford homeownership, to 
     promote the ability of the private sector to produce 
     affordable housing without excessive government regulation, 
     to expand homeownership through tax incentives such as the 
     home mortgage-interest deduction, and to facilitate the 
     availability of capital for homeownership opportunities.

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

       Section 101. Short title. This title may be referred to as 
     the ``Housing Affordability Barrier Removal Act of 2000.''
       Section 102. Grants for regulatory barrier removal 
     strategies. Authorizes $15 million for FY 2001 through FY 
     2005 for grants to States, local governments, and eligible 
     consortia for regulatory barrier removal strategies. This is 
     a reauthorization of the same amount under an already 
     existing CDBG setaside (Section 107(a)(1)(H)). Grants 
     provided for these purposes must be used in coordination with 
     the local comprehensive housing affordability strategy 
     (``CHAS'').
       Section 103. Regulatory barriers clearinghouse. Creates 
     within HUD's Office of Policy Development and Research a 
     ``Regulatory Barriers Clearinghouse'' to collect and 
     disseminate information on, among other things, the 
     prevalence of regulatory barriers and their effects on 
     availability of affordable housing, and successful barrier 
     removal strategies.

              TITLE II--HOMEOWNERSHIP FOR WORKING FAMILIES

       Section 201. Reduced downpayment requirements for loans for 
     teachers and uniformed municipal employees. Allows reduced 
     downpayment requirements for FHA-insured loans for teachers 
     and uniformed municipal employees. Authority for the 
     provision expires September 30, 2003.
       Section 202. Home equity conversion mortgages. Allows for 
     the refinancing of home equity conversion mortgages (HECMs) 
     for elderly homeowners. Gives the Secretary discretion to 
     reduce the single premium payment to an amount as determined 
     by an actuarial study, to be conducted by the Secretary 
     within 180 days of enactment, and to credit the premium paid 
     on the original loan. Authorizes the Secretary to establish a 
     limit on origination fees that may be charged (which fees may 
     be fully financed). Waives counseling requirements if the 
     borrower has received counseling in the prior five years and 
     the increase in the principal limit exceeds refinancing costs 
     by an amount set by the Department; provides a disclosure 
     under a refinanced mortgage of the total cost of refinancing 
     and the principal limit increase.
       In cases where the reverse mortgage proceeds are used for 
     long-term care insurance contracts, a portion of those 
     proceeds may be used for up-front costs, such as initial 
     service, appraisal and inspection fees. Requires HUD to waive 
     the up-front mortgage insurance premium in cases where 
     reverse mortgage proceeds are used for costs of a qualified 
     long-term care insurance contract.
       Directs the Department to conduct an actuarial study within 
     180 days of enactment of the effect creating a single 
     national loan limit for HECM reverse mortgages.
       Section 203. Law enforcement officer homeownership pilot 
     program. Requires the HUD Secretary to develop a pilot 
     program designed to assist law enforcement officers, 
     including correctional officers, to purchase homes in locally 
     designated high crime areas. No downpayment is required. The 
     borrower must have served as police officer for at least 6 
     months. The provision is primarily targeted for high-crime 
     areas. Provides that the Secretary shall not approve any 
     application for assistance received under this section that 
     is received after expiration of the 3-year period beginning 
     when the Secretary first makes assistance available.
       Section 204. Assistance for self-help housing providers. 
     Reauthorizes the self-help housing providers through FY 2003, 
     at such sums for FY 2001 and such sums as may be necessary 
     for each of FY 2002 and 2003. Allows projects with 5 or more 
     units to use their funds over a 3-year period. Allows 
     entities to advance themselves funds prior to completion of 
     environmental reviews for purposes of land acquisition.

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

       Section 301. Downpayment assistance. Public Housing 
     Authorities (PHAs) are authorized to provide down-payment 
     assistance in the form of a single grant, in lieu of monthly 
     assistance. Such down-payment assistance shall not exceed the 
     total amount of monthly assistance received by the tenant for 
     the first year of assistance. For FY 2000 and thereafter, 
     assistance under this section shall be available to the 
     extent that sums are appropriated.

[[Page E1925]]

       Section 302. Pilot program for homeownership assistance for 
     disabled families. Adds a pilot program to demonstrate the 
     use of tenant-based section 8 assistance (section 8 vouchers) 
     for the purchase of a home that will be owned by 1 or more 
     members of the disabled family and will be occupied by that 
     family and meets certain requirements. Requirements include 
     purchase of the property within three years of enactment of 
     this Act; demonstrated income level from employment
       Section 303. Funding for pilot program. Authorizes such 
     sums as may be appropriated for a grant program to supplement 
     demonstration programs approved under the Section 8 
     homeownership demonstration program. The program has a 50% 
     match requirement.

   TITLE IV--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

       Section 401. Short title. Provides that this title may be 
     cited as the ``Private Mortgage Insurance Technical 
     Corrections and Clarification Act''.
       Section 402. Changes in amortization schedule. Clarifies 
     that private mortgage insurance (PMI) termination/
     cancellation rights for adjustable rate mortgages (ARMs) are 
     based on the amortization schedule then in effect (the most 
     recent calculation); treats a balloon mortgage like an ARM 
     (uses most recent amortization schedule); bases cancellation/
     termination rights on modified terms if loan modification 
     occurs.
       Section 403. Deletion of ambiguous references to 
     residential mortgages. Clarifies that borrowers' PMI 
     cancellation and termination rights apply only to mortgages 
     created after the effective date of the legislation (one-year 
     after the date of enactment).
       Section 404. Cancellation rights after cancellation date. 
     Clarifies that the good payment history requirement in the 
     bill is calculated as of the later of the cancellation date 
     or, the date on which a borrower requests cancellation. 
     Provides that if a borrower is not current on payments as of 
     the termination date, but later becomes current, termination 
     shall not take place until the first day of the following 
     month (eliminates lender need to check and cancel PMI every 
     day of the month). Clarifies that PMI cancellation or 
     termination does not eliminate requirement to make PMI 
     payments legitimately accrued prior to any cancellation or 
     termination of PMI.
       Section 405. Clarification of cancellation and termination 
     issues and lender paid mortgage insurance disclosure 
     requirements. Adds provision clarifying cancellation and 
     termination issues related to terms ambiguous in law, 
     including ``good payment history'', ``automatic termination'' 
     and ``accrued obligation for premium payments''. Clarifies 
     that PMI cancellation rights exist on the cancellation date, 
     or any later date, as long as the borrower complies with all 
     cancellation requirements. Clarifies that borrower must be 
     current on loan payments to exercise cancellation.
       Section 406. Definitions. Sets forth definitions of: a) 
     refinanced; b) midpoint of the amortization period; d) 
     original value; and e) principal residence.

                 TITLE V--NATIVE AMERICAN HOMEOWNERSHIP


                  Subtitle A--Native American Housing

       Section 501. Lands Title Report Commission. Subject to 
     amounts appropriated, creates an Indian Lands Title Report 
     Commission to develop recommended approaches to improving how 
     the Bureau of Indian Affairs (BIA) conducts title reviews in 
     connection with the sale of Indian lands. Receipt of a 
     certificate from BIA is a prerequisite to any sales 
     transaction on Indian lands, and the current procedure is 
     overly burdensome and presents a regulatory barrier to 
     increasing homeownership on Indian lands.
       The Commission is composed of 12 members with knowledge of 
     Indian land title issues (4 appointed by the President, 4 by 
     the President from recommendations made by the Chairman of 
     the Senate Committee on Banking, Housing and Urban Affairs 
     Committee, and 4 by President from recommendations made by 
     the Chairman of the House Committee on Banking and Financial 
     Services). Authorized at $500,000.
       Section 502. Loan guarantees. Permanently authorizes the 
     section 184 Loan Guarantee Program for Indian housing.
       Section 503. Native American housing assistance. Makes the 
     following amendments to the Native American Housing and Self-
     Determination Act of 1996 (NAHASDA):
       Restricts Secretary's authority to grant waiver of Indian 
     housing plan requirements, upon noncompliance due to 
     circumstances beyond the control of the Indian tribe, to a 
     period of 90 days. Allows Secretary to waive requirement for 
     a local cooperation agreement provided the recipient has made 
     a good faith effort to comply and agrees to make payments in 
     lieu of taxes to the jurisdiction.
       Sets forth requirement for assistance to Indian families 
     that are not low-income upon a showing of need. Eliminates 
     separate Indian housing plan requirements for small Indian 
     tribes.
       Provides Secretary with authority to waive statutory 
     requirements of environmental reviews upon a determination 
     that failure to comply does not undermine goals of the 
     National Environmental Policy Act, will not threaten the 
     health or safety of the community, is the result of 
     inadvertent error and can be corrected by the recipient of 
     funding. The intent is to address problems resulting from 
     procedural, rather than substantive, noncompliance.
       Authorizes tribal housing entities to provide housing on 
     Indian reservations to full-time law enforcement officers, 
     sworn to implement the Federal, State, county, or tribal law.
       Revises provisions regarding audits and reviews by the 
     Secretary by making applicable the requirements of the Single 
     Audit Act to tribal housing entities; allowing these housing 
     entities to be treated as non-Federal entities; and, 
     permitting the Secretary to conduct audits. The audits will 
     determine whether the grant recipient has carried out 
     eligible activities in a timely manner; has met
       Prescribes formula allocation for Indian housing 
     authorities operating fewer than 250 units by requiring the 
     amount of assistance provided to these tribes to be based on 
     an average of their allocations from the prior five (5) 
     fiscal years (fiscal years 1992 through 1997).
       Amends hearing requirements to allow the Secretary to take 
     immediate remedial action if the Secretary determines that 
     the recipient has failed to comply substantially with any 
     material provision of NAHASDA resulting in continued federal 
     expenditures not authorized by law.
       Upon noncompliance with the law due to technical 
     incapacity, requires a recipient to enter into a 
     ``performance agreement'' with the Secretary before the 
     Secretary can provide technical assistance.
       For section 8 vouchers currently being used by an Indian 
     tribe, requires counting such vouchers under the NAHASDA 
     block grant allocation formula to ensure that families 
     currently participating in the Section 8 voucher program will 
     continue to be funded.
       Repeals requirement regarding the certification of 
     compliance with subsidy layering requirements with respect to 
     housing assisted with grant amounts provided under the Act.


                  Subtitle B--Native Hawaiian Housing

       Section 511. Short title. Provides that the subtitle may be 
     cited as the ``Hawaiian Homelands Homeownership Act of 
     2000.''
       Section 512. Findings. Finds that Native Hawaiians continue 
     to have the greatest unmet need for housing and the highest 
     rates of overcrowding in the United States, and that Congress 
     finds it necessary to extend the Federal low-income housing 
     assistance available under the Native American Housing and 
     Self Determination Act of 1996 to those Native Hawaiians.
       Section 513. Housing assistance. Provides the Secretary of 
     HUD with authority to establish a program for the provision 
     of block grants for affordable housing activities for Native 
     Hawaiians, within the Native American Housing Assistance and 
     Self Determination Act of 1996. The Secretary is to be guided 
     by the program requirements of titles I, II and IV of the 
     Native American Housing Assistance and Self-Determination Act 
     in the implementation of housing assistance programs for 
     Native Hawaiians under this title. The Secretary may make 
     exceptions to, or modifications of, program requirements as 
     necessary and appropriate to meet the unique situation and 
     housing needs of Native Hawaiians. Sets forth s definitions, 
     the requirements associated with housing plans, and other 
     program requirements.
       Section 514. Loan guarantees. Provides for loan guarantees 
     for Native Hawaiian Housing. Loans guaranteed by the 
     Secretary pursuant to this title shall be in amounts not to 
     exceed one hundred percent of the unpaid principal and 
     interest that is due on an eligible loan. A loan is an 
     eligible loan if that loan is made only to a borrower who is 
     a Native Hawaiian family, the Department of Hawaiian Home 
     Lands, the Office of Hawaiian Affairs, or a private nonprofit

               TITLE VI--MANUFACTURED HOUSING IMPROVEMENT

       Section 601. Short Title References. States that this title 
     may be cited as the ``Manufactured Housing Improvement Act of 
     2000.''
       Section 602. Findings and purposes. Current law provisions 
     are replaced with a more detailed statement of the original 
     intent of Congress when it enacted the Federal Manufactured 
     Home Construction and Safety Standards Act. Adds a consensus 
     standards development process to the purpose of the act. 
     Expresses the continuing need for affordability and the need 
     for objective, performance-based standards, while emphasizing 
     the need for consumer protection.
       Section 603. Definitions. Adds several definitions to 
     Section 603 of current law concerning the consensus committee 
     and the consensus standards development process (Section --
     4). Adds a definition for the monitoring function and related 
     definitions for primary inspection agency, design approval 
     inspection agency, and production inspection primary 
     inspection agency duties, which had not been previously 
     defined. The term ``dealer'' has been replaced throughout 
     with the term ``retailer.''
       Section 604. Federal manufactured home construction and 
     safety standards. Section 604 of current law (P.L. 93-383) is 
     revised to

[[Page E1926]]

     establish a consensus committee that would submit 
     recommendations to the Secretary of HUD for developing, 
     amending and revising both the Federal Manufactured Home 
     Construction and Safety Standards and the enforcement 
     regulations. These recommendations would be published in the 
     Federal Register for notice and comment prior to final 
     adoption by the Secretary. The committee shall be composed of 
     21 voting members, appointed by the Secretary, based on 
     recommendations of administering organizations, who shall be 
     qualified individuals (7 producers of manufactured housing, 7 
     users of manufactured housing, and 7 general interest groups 
     and/or public officials), and one additional non-voting 
     member to represent the Secretary on the consensus committee. 
     The committee would function in accordance with the American 
     National Standards Institute (ANSI) procedures for the 
     development and coordination of American National Standards.
       If the Secretary fails to take final action on a proposed 
     revised standard, the Secretary shall appear before the 
     housing and appropriation subcommittees and committees of the 
     House of Representatives and the Senate and state the reason 
     for failure.
       Further, if the Secretary does not appear in person as 
     required, the Secretary will be prohibited from expending 
     funds collected under authority of this title in any amount 
     greater than that collected and expended in the fiscal year 
     preceding enactment of the Manufactured Housing Improvement 
     Act of 2000.
       The revisions to section 604 would also clarify the scope 
     of federal preemption to ensure that disparate state or local 
     requirements do not affect the uniformity and comprehensive 
     nature of the
       Section 605. Abolishment of the National Manufactured Home 
     Advisory Council; manufactured home installation. Section 605 
     of existing law (P.L. 93-383) would be repealed, abolishing 
     the National Manufactured Home Advisory Council, which is 
     replaced by the consensus committee formed under Section --
     04. A new section 605 is added, entitled ``Section 605. 
     Manufactured Home Installation,'' which give states five 
     years to adopt an installation program. During this five-year 
     period, the Secretary of the Department of Housing and Urban 
     Development (HUD) and the Consensus Committee are charged 
     with constructing a ``model'' manufactured housing 
     installation program. In states that choose not to adopt an 
     installation program, HUD may contract with an appropriate 
     agent in those states to implement the ``model'' installation 
     program.
       Section 606. Public information. Amends current 
     requirements governing cost information of any new standards 
     submitted by manufacturers to the Secretary by requiring the 
     Secretary to submit such cost information to the consensus 
     committee for evaluation.
       Section 607. Research, Testing, Development, and Training. 
     Requires HUD Secretary to conduct research, testing, 
     development and training necessary to carry out the purposes 
     of facilitating manufactured housing, including encouraging 
     GSE's to develop and implement secondary market 
     securitization programs for FHA manufactured home loans, and 
     reviewing the programs for FHA manufactured home loans and 
     developing any changes to such programs to promote the 
     affordability of manufactured homes.
       Section 608. Prohibited Acts. Requires continued compliance 
     with the requirements for the installation program required 
     by Section 605 in any State that has not adopted and 
     implemented a State installation program.
       Section 609. Fees. Amends current section 620 by allowing 
     the Secretary to use industry label fees for the 
     administration of the consensus committee, hiring additional 
     program staff, for additional travel funding, funding of a 
     non-career administrator to oversee the program, and for 
     HUD's efforts to promote the availability and affordability 
     of manufactured housing. Prohibits the use of label fees to 
     fund any activity not expressly authorized by the act, unless 
     already engaged in by the Secretary, makes expenditure of 
     label fees subject to annual Congressional appropriations 
     review. Requires HUD to be accountable for any fee increase 
     by requiring notice and comment rulemaking.
       Section 610. Dispute Resolution. In order to address 
     problems that may arise with manufactured homes, Section 610 
     gives the states five years to adopt a dispute resolution 
     program for the timely resolution of disputes between 
     manufacturers, retailers, and installers regarding the 
     responsibility for the correction or repair of defects in 
     manufactured homes that are reported during the one year 
     period beginning on the date of installation. This also 
     requires state issuance of appropriate orders for the 
     correction or repair of defects in the manufactured homes 
     that are reported during the 1-year period beginning on the 
     date of installation under the dispute resolution program. In 
     states that choose not to adopt their own dispute resolution 
     program, HUD may contract with an appropriate agent in those 
     states to implement a dispute resolution program.
       Section 611. Elimination of annual report requirement. 
     Eliminates existing annual reporting by the Secretary to 
     Congress on manufactured housing standards.
       Section 612. Effective date. Effective date of the 
     legislation is the date of enactment, except that 
     interpretive bulletins or orders published as a proposed rule 
     prior to the date of enactment shall be unaffected.
       Section 613. Savings provision. Existing manufactured 
     housing standards are maintained in effect until the 
     effective date of the Federal manufactured home construction 
     and safety standards pursuant to the amendments made by this 
     act.

                 TITLE VII--RURAL HOUSING HOMEOWNERSHIP

       Section 701. Guarantees for refinancing of rural housing 
     loans. Amends Section 502(h) of the Housing Act of 1949 to 
     allow borrowers of Rural Housing Service single-family loans 
     to refinance an existing direct or guarantee loan with a new 
     guarantee loan, provided the interest rate is at least equal 
     or lower than the current interest rate being refinanced; the 
     same home is used as security; the principle is equal or 
     lower than the refinanced amount plus closing costs, discount 
     points not exceeding 2 basis points and, an origination fee 
     prescribed by the Agriculture Secretary [HR 3834 (Andrews) 
     Homeowners Financing Protection Act (passed the House under 
     suspension on September 19, 2000).]
       Section 702. Promissory note requirement under housing 
     repair loan program. Increases amount of promissory note 
     (instead of use of liens on property) amounts from $2,500 to 
     $7,500 (adjusted from late 1970's amount to account for home 
     repairs, e.g. roofing, heating systems, windows, etc.) 
     without going through the formal loan process.
       Section 703. Limited partnership eligibility for farm labor 
     housing loans. Technical amendment that clarifies that 
     limited partnerships are eligible for loans under Section 514 
     (Farm Labor Housing) in cases where the general partner is a 
     nonprofit entity.
       Section 704. Project accounting records and practices. Sets 
     forth accounting and record keeping requirements, including 
     maintaining accounting records in accordance with generally 
     accepted accounting principles for all projects that receive 
     funds under this program; retaining records available for 
     inspection by the USDA Secretary for not less than six years, 
     and other requirements.
       Section 705. Definition of rural area. Extends designation 
     of rural areas, for purposes of the Rural Housing Service 
     housing programs, for a narrow category of communities until 
     the 2010 census.
       Section 706. Operating assistance for migrant farmworkers 
     projects. Allows Section 521 operating assistance for farm 
     labor housing complexes where ``mixed'' migrant and annual 
     workers will live.
       Section 707. Multifamily rental housing loan guarantee 
     program. Allows Native Americans to become eligible borrowers 
     under the multifamily loan guarantee program; authorizes a 
     ``balloon payment'' as a financing option; allow fees from 
     lenders to be used to help offset program costs; and repeals 
     existing prohibition against the transfer of property title 
     from the lender to the federal government as well as the 
     prohibition against the transfer of liability from one 
     borrower to another.
       Section 708. Enforcement provisions. Provides criminal 
     penalties and civil sanctions for violations of program 
     requirements.
       Section 709. Amendments to title 18 of the United States 
     Code. Amends Title 18 of the U.S. Code--Money Laundering--to 
     strengthen enforcement and prosecution of program fraud and 
     abuse.

         TITLE VIII--HOUSING FOR ELDERLY AND DISABLED FAMILIES

       Section 801. Short Title. This title may be cited as the 
     ``Affordable Housing for Seniors and Families Act.''
       Section 802. Regulations. Provides that the Secretary of 
     HUD shall issue regulations implementing the provisions of 
     this title only after notice and opportunity for public 
     comment.
       Section 803. Effective Date. Provides that the provisions 
     of the title are effective upon enactment unless such 
     provisions specifically provide for effectiveness or 
     applicability upon another date certain.


  Subtitle A--Refinancing for Section 202 Supportive Housing for the 
                                Elderly

       Section 811. Prepayment and refinancing. Requires the 
     Secretary to approve prepayment of mortgages for Section 202 
     properties if the sponsor (owner) continues the low-income 
     use restrictions. Requires that upon refinancing, the 
     Secretary make available at least 50% of annual savings 
     resulting from reduced Section 8 or other rental housing 
     assistance in a manner that is advantageous to tenants, which 
     may include increasing supportive services, rehabilitation, 
     modernization, and retrofitting of structures, and other 
     specified purposes.
       This allows sponsors to build equity in their project that 
     can be used to refinance at lower interest rates. The 
     refinancing may result in lower project based Section 8 if 
     the sponsor elects lower debt service in addition to the 
     lower interest rate. The savings can then be used for 
     improvements to the facility or services for residents.


Subtitle B--Authorization of Appropriations for Supportive Housing for 
               the Elderly and Persons with Disabilities

       Section 821. Supportive housing for elderly persons. 
     Authorizes such sums for the existing program of supportive 
     housing for the elderly (section 202 housing) for FY 01 and 
     ``such sums as may be necessary'' for FY 02, and FY 03.
       Section 822. Supportive housing for persons with 
     disabilities. Authorizes such sums for

[[Page E1927]]

     the existing program of supportive housing for the disabled 
     (section 811 housing) for FY 01 and ``such sums as may be 
     necessary'' for FY 02, and FY 03.
       Section 823. Service coordinators and congregate services 
     for elderly and disabled housing. Authorizes such sums for 
     grants for service coordinators, who link residents with 
     supportive or medical services in the community, for certain 
     federally assisted multifamily housing projects for FY 01 and 
     ``such sums as may be necessary'' for FY 02, and FY 03.


Subtitle C--Expanding Housing Opportunities for the Elderly and Persons 
                           with Disabilities

                    Part 1--Housing for the Elderly

       Section 831. Eligibility of for-profit limited 
     partnerships. Allows 202 sponsors to form limited 
     partnerships with for-profits, but the nonprofits must be the 
     controlling partner. Through this partnership, the sponsors 
     could compete for the low income housing tax credit. With 
     this change, owners could build bigger developments and 
     achieve scale economies. The units financed under Section 202 
     would be governed by those rules, and the tax credit units 
     would be governed under those rules. States would still be 
     making the decision who gets the LIHTC, and the limited 
     partnerships would have to compete like everybody else.
       Section 832. Mixed funding sources. Allows private non-
     profit housing providers to use all sources of financing, 
     including Federal funds, for amenities, relevant design 
     features and construction of affordable housing for seniors.
       Section 833. Authority to acquire structures. Removes 
     limitation allowing private non-profit housing providers to 
     acquire only RTC-held properties. RTC went out of business. 
     This provision allows 202 projects to acquire properties.
       Section 834. Use of project reserves. Project reserves, a 
     set-aside account funded through rent receipts for repairs to 
     the building's structure or infrastructure over the years 
     (roof, elevator, etc.), may be used to reduce the number of 
     dwelling units in the 202 project. The use of these funds is 
     subject to the Secretary's approval to ensure the use is 
     designed to retrofit obsolete or unmarketable units.
       During the cost containment phase of the Section 202 
     program, many efficiencies were built. In many cases, it is 
     preferable to convert efficiencies to 1 or 2 bedroom 
     apartments. In other instances, the project may want to 
     reduce units to make room for a clinic or community space.
       Section 835. Commercial activities. Makes clear that 
     commercial facilities may be located and operated, in Section 
     202 projects, as long as the business is not subsidized with 
     202 funds. These facilities can benefit residents and bring 
     some additional revenue (rent) to the project.


             Part 2--Housing for Persons with Disabilities

       Section 841. Eligibility of for-profit limited 
     partnerships. Provides that for-profit limited partnerships 
     are eligible to participate in the 811 program established 
     under this Act. The nonprofit will be the controlling 
     partner, and the limited partnership may compete for the 
     LIHTC.
       Section 842. Mixed funding sources. Allows private non-
     profit housing providers to use all sources of financing, 
     including Federal funds, for amenities, relevant design 
     features and construction of affordable housing for the 
     disabled.
       Section 843. Tenant-based assistance for persons with 
     disabilities. Provides that tenant-based rental assistance 
     provided under Section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act may be provided by a private nonprofit 
     organization as well as by a public housing agency as under 
     current law. Caps the amount of tenant-based assistance under 
     Section 811 at 25% of the yearly appropriation for Section 
     811 housing to ensure that money remains available for 
     construction of affordable housing stock for the disabled.
       Section 844. Use of project reserves. Project reserves may 
     be used to reduce the number of dwelling units in an 811 
     project to retrofit obsolete or unmarketable units. Allows 
     flexibility to design the project in a way that makes it more 
     comfortable & appealing for the residents.
       Section 845. Commercial Activities. Clarifies that 
     commercial facilities may be located and operated in Section 
     811 projects, as long as the business is not subsidized with 
     811 funds.


                        Part 3--Other Provisions

       Section 851. Service coordinators. Allows service 
     coordinators to assist low-income elderly or disabled 
     families living in the vicinity of an eligible federally 
     assisted project. Requires HUD and HHS to develop standards 
     for service coordinators in federally assisted housing to 
     educate seniors about telemarketing fraud and facilitating 
     prosecution of such fraud. This change will make the project 
     a focal point of the community, address the isolation many 
     seniors feel particularly in rural areas--and help seniors 
     protect themselves against fraud.


          Subtitle D--Preservation of Affordable Housing Stock

       Section 861. Section 236 Assistance. Allows owners of 
     uninsured Section 236 projects to retain excess income. This 
     money is needed for repairs to the aging projects. The FY 00 
     VA-HUD bill allowed uninsured Section 236 owners to retain 
     excess income (which results when 30% of
       To the extent a project owner has remitted excess income 
     charges to HUD since the date of enactment of the FY 1999 
     appropriations Act, the Department may return to the relevant 
     project owner any such excess charges remitted. This would 
     put these owners on an equal footing with those owners who 
     had retained these excess charges and whom HUD has, through 
     notice, permitted to retain such excess income.


       Subtitle E--Mortgage Insurance for Health Care Facilities

       Section 871. Rehabilitation of existing hospitals, nursing 
     homes, and other facilities.
       Currently, Section 223(f) of National Housing Act (NHA) 
     provides mortgage insurance for purchase or refinancing of 
     non-FHA multifamily housing projects and for refinancing of 
     existing debt on non-FHA hospitals. Section 223(f) insurance 
     is also broadly used for nursing homes, assisted living 
     facilities, etc. Amends current law to allow for purchase as 
     well as refinancing of such hospitals and includes integrated 
     service facilities, which are defined in Section 872. Allows 
     repairs and minor improvements to be included in financings, 
     consistent with protocols in non-FHA financings. Clarifies 
     program ambiguities such that savings include refinancing of 
     short-term balloon loans.
       Section 872. New integrated service facilities. Currently, 
     Section 232 of NHA authorizes FHA insurance for nursing 
     homes, intermediate care, board and care, and assisted living 
     facilities. This section introduces a concept of an 
     integrated service facility, and then makes these facilities 
     eligible for mortgage insurance. An integrated service 
     facility is defined as providing health care to sick, 
     injured, disabled, elderly or infirm persons or services for 
     the treatment and prevention of illness, or any combination 
     thereof. It also removes a barrier to use of FHA insurance 
     for some assisted living facilities by allowing the FHA to 
     establish alternative underwriting standards when states lack 
     licensing requirements. Another barrier to FHA insurance is 
     removed by making the alternative Certificate of Need (CON) 
     test for nursing homes, intermediate care facilities, and 
     integrated service facilities more workable. Currently, FHA 
     insurance is conditional upon the CON; however, several 
     states have sunset CON programs or the agencies which would 
     issue CONS. Moreover, an existing, but no longer appropriate, 
     requirement that residents of nursing homes A are not acutely 
     ill is stricken.
       Section 873. Hospitals and Hospital-Based Health Care 
     Facilities. Currently, Section 242 authorizes FHA insurance 
     for hospitals and associated facilities. This section changes 
     the definition of an eligible hospital to eliminate the test 
     that denies eligibility where more than 50% of patient days 
     are non-acute in nature. The 50% rule, especially in a 
     continuum of care environment, creates a financing void for 
     hospitals providing significant non-acute and other essential 
     services now subject to the 50% rule. Modifies eligibility 
     test used as an alternative to the CON requirement under the 
     statute so that a sponsor applicant may commission an 
     independent study in defined circumstances. Allows integrated 
     service facilities to be Section 242 eligible when owned by a 
     hospital sponsor.

               TITLE IX--OTHER RELATED HOUSING PROVISIONS

       Section 901. Extension of Loan Term for Manufactured Home 
     Lots. Extends the loan terms for manufactured home lots 
     financed by insured financial institutions from 15 years, 32 
     days to 20 years, 32 days.
       Section 902. Use of Section 8 Vouchers for Opt--Outs. 
     Amends the VA, HUD and Independent Agencies Appropriations 
     Act of FY 2001 by changing the effective date when Section 8 
     vouchers may be used in situations where owners opt out of 
     the program from 1996 to 1994.
       Section 903. Maximum payment standard for enhanced 
     vouchers. Amends the VA, HUD and Independent Agencies 
     Appropriations Act of FY 2001 to require that HUD may not 
     limit the value of enhanced vouchers as provided under the 
     statute if such limit would adversely affect the assisted 
     families to which enhanced vouchers are provided.
       Section 904. Use of section 8 assistance by ``grand-
     families'' to rent dwelling units in assisted projects. 
     Allows HOME funds (in rental units otherwise not eligible for 
     HOME funds) to be used for facilities with units with low-
     income families having a grandparent residing with a 
     grandchild, or in some cases, where great- and great-great 
     grandchildren are residing in the unit, with neither of the 
     child's parents residing in the household.

              TITLE X--BANKING AND HOUSING AGENCY REPORTS

       Section 1001. Short title. The title is cited as the 
     ``Federal Reporting Act of 2000.''
       Section 1002. Amendments to the Federal Reserve Act. 
     Provides a new reporting requirement to replace the expired 
     provisions relating to the semi-annual ``Humphrey-Hawkins'' 
     reports requirements. Section 1002 requires the Chairman of 
     the Federal Reserve Board to appear before Congress at

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     semi-annual hearings to discuss monetary policy as well as 
     economic developments and prospects for the future. The 
     Chairman will appear before the House Banking Committee 
     around February 20 of even numbered years and July 20 of odd 
     numbered years, and before the Senate Banking Committee on 
     February 20 of odd numbered years and July 20 of even 
     numbered years. Either Committee may request the Chairman to 
     appear after his scheduled appearance before the other.
       Requires the Federal Reserve Board to submit, concurrent 
     with each semi-annual hearing, a written report to both 
     Committees discussing the same subjects, taking into account 
     developments in employment, unemployment, production, 
     investment, real income, productivity, exchange rates, 
     international trade and payments, and prices.
       Section 1003. Preservation of certain reporting 
     requirements. This Section reinstates certain reports which 
     expired in May 2000 pursuant to the Federal Reports 
     Elimination and Sunset Act of 1995.
       (1) President's economic report, together with the annual 
     report of the Council of Economic Advisors. Due: During first 
     20 days of each regular session.
       (2) President's report on impact of offsets on the defense 
     preparedness, industrial competitiveness, employment, and 
     trade of the US. Due: Annually (to Banking and Armed Services 
     Committees) (This report discloses impact on the U.S. economy 
     in cases where foreign governments, to justify the purchase 
     of U.S.-made defense systems, require technology transfers or 
     direct in-country investments. Such concessions ensure the 
     sale but may impair future sales or enhance the production 
     capacity of a potential foreign competitor to the U.S.)
       (3) Commerce Department report on operations under the 
     Public Works and Economic Development Act of 1965 (by the 
     Economic Development Administration) Due: Annually. (The EDA 
     provides grants for public works and other assistance to 
     alleviate unemployment in economically distressed areas.)
       (4) HUD's agenda of all rules and regulations under 
     development or review. Due: Semiannually (to Banking 
     Committee).
       (5) HUD report on early defaults on FHA-insured loans. Due: 
     Annually. (The report includes data on lenders and the 
     numbers of loans they make--and defaults and foreclosures 
     thereon--by census tract.)
       (6) Two HUD Reports related to civil rights: (a) Progress 
     in eliminating discriminatory housing practices. Due: 
     Annually. (The report reviews the nature and extent of 
     progress in eliminating housing discrimination practices, 
     obstacles remaining, and recommendations for legislation or 
     executive action.) and (b) Data on applicants, participants, 
     and beneficiaries of the programs administered by HUD. Due: 
     Annually. (The report provides data on race, color, religion, 
     sex, national origin, age, handicap, and family 
     characteristics of applicants or participants in HUD 
     programs.)
       (7) Two HUD reports related to lead-based paint hazards: 
     (a) Assessment of the progress made in implementing the 
     various programs authorized by the Act. Due: Annually. (This 
     report covers research/studies into lead poisoning and 
     recommendations for legislative or other action to improve 
     HUD's performance in combating such hazards.); and (b) 
     Progress of the Department in implementing expanded lead-
     based paint hazard evaluation and reduction activities. Due: 
     Biennially. (This report is related to the one above and 
     provides an assessment of HUD's progress in various lead-
     based paint abatement programs.)
       (8) FHA annual report. Due: Annually. (The report provides 
     an analysis of income demographic borrower information, 
     specifically related to incomes not exceeding 100% of area 
     median income (AMI), 80% of AMI, 60% of AMI; minority, 
     central city and rural borrowers; and, HUD activities to 
     ensure participation by these groups.)
       (9) HUD annual report. Due: Annually. (This is an annual 
     report by the Secretary to the President for submission to 
     the Congress on all operations and programs under HUD's 
     jurisdiction during the previous year.)
       (10) HUD annual report. Due: Annually. (This is a general 
     requirement for an annual report from the Secretary to the 
     President on the activities of HUD for submission to 
     Congress.)
       (11) FEMA report on operations under the National Flood 
     Insurance Act of 1968. Due: Biennially. (This report covers 
     operations of the national flood insurance program offered to 
     communities which enforce flood plain management measures.)
       (12) HUD report on Indians and Alaska Native housing and 
     community development. Due: Annually. (The report covers the 
     housing needs of Indian tribes in the U.S. and HUD's 
     activities in meeting such needs. It includes estimates of 
     the costs of projected activities for succeeding fiscal 
     years, statistics on the conditions of Indian and Alaska 
     Native housing, and recommendations for new legislation.)
       (13) HUD report on actuarial soundness of the Mutual 
     Mortgage Insurance Fund. Due: Annually. (The report describes 
     HUD actions to ensure the Fund maintains a capital ratio of 
     at least 1.25 percent.)
       (14) Treasury Department report on progress in enhancing 
     human rights through U.S. participation in international 
     financial institutions. Due: Quarterly (to Banking and 
     International Relations Committees).
       (15) Treasury Department reports: (a) Financial statement 
     and report of transactions of the Exchange Stabilization Fund 
     (ESF). Due: Monthly (to Banking Committee); and (b) 
     Operations of the ESF. Due: Annually.
       (16) OCC, FDIC, and Federal Reserve Board reports on 
     activities of the consumer affairs division. Due: Annually. 
     (These reports describe actions taken by the agencies to 
     prevent unfair or deceptive acts or practices by banks and to 
     address consumer complaints.)
       (17) OCC Annual Report. Due: Annually.
       (18) OTS report on minority institutions. Due: Annually. 
     (This report relates to OTS actions to preserve minority 
     ownership of minority financial institutions many of which 
     serve lower income and minority communities.)
       (19) Appalachian Regional Commission report of activities. 
     Due: Annually. (The report covers Federal-State activities to 
     support economic development in the 13 Appalachian states.)
       (20) Export-Import Bank reports: (a) Export financing 
     competition. Due: Annually. (This report reviews how well 
     Exim's programs compete with those of other export credit 
     agencies, and includes other ``sub-reports'' which will also 
     continue, i.e. the Trade Promotion Coordinating Committee 
     (TPCC) Strategic Plan, Advisory Committee comments on Exim's 
     competitiveness, and Competitive Insurance Opportunities 
     report on Exim deals with respect to countries that deny 
     opportunities to US insurance companies.); (b) Tied aid 
     credits. Due: Biannually. (This report covers the tied aid 
     credit program under which grants are made to supplement 
     financing for a US export when it appears predatory financing 
     will be available from another country for a competitor's 
     product.); and (c) Operations as of the close of business 
     each
       (21) FDIC report on operations of the Corporation. Due: 
     Annually. (The report also includes information on the BIF 
     and SAIF.)
       (22) Federal Financing Bank report on activities of the 
     Bank. Due: Annually. (The FFB lends to federal agencies to 
     reduce the cost of borrowing, ensure coordination of 
     borrowings with federal fiscal and debt management, and 
     assure minimal disruption of private markets and 
     institutions.)
       (23) Federal Housing Finance Board Annual Report. Due: 
     Annually.
       (24) Federal Reserve survey of bank fees and services. Due: 
     Annually. (The report covers discernible changes in cost and 
     availability of bank services.)
       (25) Federal Reserve assessment of the profitability of 
     credit card operations of depository institutions. 15 U.S.C. 
     1637 Due: Annually. (The report also discusses trends in 
     credit card interest rates.)
       (26) Federal Reserve report on credit card price and 
     availability information. Due: Semiannually. (The Board 
     provides information on a sample of 150 card issuers twice a 
     year.)
       (27) Federal Reserve activities under the Equal Credit 
     Opportunity Act. Due: Annually. (This information is included 
     in the Board's annual report.)
       (28) Federal Reserve report on administration of and 
     recommendations as to changes in the Truth in Lending Act. 
     Due: Annually. (The report provides information on compliance 
     with TILA regulations.)
       (29) Federal Reserve Board of Governors report of 
     activities. Due: Annually.
       (30) Federal Reserve report on policy actions of the 
     Federal Open Market Committee and the Board. Due: Annually. 
     (This is included in the Fed's annual report.)
       (31) Federal Trade Commission's reports on administration 
     of the Fair Debt Collection Practices Act. Due: Annually. 
     (The report covers elimination of abusive debt collection 
     practices.)
       (32) National Credit Union Administration's report on 
     operations and financial information. Due: Annually.
       (33) Treasury Department report on activities and audit of 
     financial statement of the Resolution Funding Corporation. 
     Due: Annually. (REFCORP was established by FIRREA to raise 
     funding for RTC resolution of insolvent S&Ls. Funds are 
     appropriated to Treasury to pay interest on obligations 
     issued by REFCORP.)
       (34) Neighborhood Reinvestment Corporation's annual report. 
     Due: Annually. (The corporation was set up to continue the 
     work of the Urban Reinvestment Task Force in establishing 
     neighborhood housing services and providing grants and 
     technical assistance to facilitate reinvestment.)
       (35) Voluntary agreements under the Defense Production Act. 
     Due: At least annually. (This report is due to the Congress 
     and the President from any individual(s) designated by the 
     President, describing voluntary agreements and plans of 
     action in effect for preparedness programs and expansion of 
     production capacity and supply.)
       (36) Justice Department report on data collection re banks 
     and banking. Due: Quarterly. (This report details civil and 
     criminal investigations and prosecutions relating to banking 
     law offenses.)
       (37) Federal Housing Administration Advisory Board report 
     on assessment of the activities of the Federal Housing 
     Administration; effectiveness of the Mortgagee Review Board. 
     Due: Annually. (This report covers the soundness of FHA's 
     underwriting procedures and other activities relating to the 
     FHA's ability to serve nation's homebuyers and renters, as 
     well as the effectiveness of

[[Page E1929]]

     the Mortgagee Review Board which takes action against 
     mortgagees in violation of the Fair Housing Act or other 
     statutory requirements.)
       Section 1004. Coordination of Reporting Requirements. 
     Subsection (a) requires the FDIC's annual report to include 
     the agency's annual consumer affairs report.
       Subsection (b) requires the annual report of the Federal 
     Reserve Board of Governors to include the Fed's annual report 
     of activities under the Equal Credit Opportunity Act, the 
     Board's annual consumer affairs report, the annual report on 
     administration of the Truth in Lending Act, and the Fed's 
     annual report on policy actions of the Federal Open Market 
     Committee and the Board.
       Subsection (c) requires the OCC annual report to include 
     the agency's annual consumer affairs report.
       Subsection (d) requires the Exim Bank's annual report on 
     export financing competition to include the tied aid report, 
     and makes the latter an annual rather than semi-annual 
     report.
       Subsection (e) requires HUD's annual report to include the 
     Department's two annual reports required under the Civil 
     Rights Act relating to progress in eliminating housing 
     discrimination and data on applicants and participants in HUD 
     programs, the Department's annual and biennial reports on 
     lead based paint, the Department's annual report on all HUD 
     programs and operations, and HUD's annual report on housing 
     programs related to Indians and Alaskan Natives.
       Subsection (f) requires the annual report of the Federal 
     Housing Administration to include the annual report on early 
     defaults on FHA-insured loans and the annual report on the 
     actuarial soundness of the Mutual Mortgage Insurance Fund.
       Subsection (g) amends the International Financial 
     Institutions Act to change Treasury's report on promoting 
     human rights through international financial institutions 
     from a quarterly report to an annual report.
       Section 1005. Elimination of certain reporting 
     requirements. Provides for the repeal of certain Export-
     Import Bank reports. One is a report from the President 
     requesting legislation if the amount of direct loan authority 
     or guarantee authority available to the Export-Import Bank 
     for the fiscal year involved exceeds the amount necessary. 
     This report is being repealed because it is a corollary to 
     the President's annual report on sufficiency of Exim 
     authority which expired pursuant to the sunset. There are 
     four ``sub-reports'' to Exim's annual report that are also to 
     be repealed: (1) a report on specific Exim's programs and 
     activities to promote nonnuclear renewable energy resources 
     and description of Exim's actions to assist small business 
     which is being repealed because this information is already 
     included in other reports; (2) a report on Exim's actions on 
     maintaining ``key linkage industries'' which is unnecessary 
     because Exim's annual report covers exports for various 
     industries; (3) a report on Exim's measures to supplement 
     financing for agricultural commodities which was enacted 20 
     years ago but which is no longer needed with Exim continuing 
     to be involved in this area; and (4) a report on Exim's 
     programs on the export of services which is also covered in 
     the annual report since it is part of Exim's activities.
       This section also provides for the repeal of a semi-annual 
     FDIC report on the agency's efforts to maximize the efficient 
     use of private sector contractors to manage assets held by 
     the agency. There is little need for the report today since 
     assets have declined significantly since 1991. The 1999 
     report showed the agency had only about 3% of the assets in 
     liquidation it had 7 years earlier.

                       TITLE XI--NUMISMATIC COINS

       Section 1101. Short Title. Specifies that the Section be 
     known as the ``United States Mint Numismatic Coin 
     Clarification Act of 2000.''
       Section 1102. Clarification of Mint's Authority. Specifies 
     that the United States Mint (``Mint'') need not issue silver 
     ``proof'' collector versions of the new golden-colored one-
     dollar coin, and adds the word ``platinum'' before the word 
     ``bullion'' in law elaborating Mint authority to strike 
     platinum bullion coins.
       Section 1103. Additional Report Requirements. Adds a 
     supplemental requirement to the Mint's annual audited 
     financial statements to show the actual cost of producing and 
     distributing circulating coins.

                 TITLE XII--FINANCIAL REGULATORY RELIEF

       Section 1200. Short Title. This title may be cited as the 
     ``Financial Regulatory Relief and Economic Efficiency Act of 
     2000.
       Section 1201. Repeal of Savings Association Liquidity 
     Provision. Repeals unnecessary provisions relating to savings 
     association liquidity requirements.
       Section 1202. Non-controlling Investments by Savings 
     Association Holding Companies. Allows a savings and loan 
     holding company to acquire a five to twenty-five percent non-
     controlling interest of another SLHC or savings association, 
     subject to the approval of the Director of the OTS.
       Section 1203. Repeal of Deposit Broker Notification and 
     Record Keeping Requirement. Repeals requirement that brokers 
     file a written notice with the FDIC before soliciting or 
     placing deposits with an insured depository institution.
       Section 1204. Expedited Procedures for Certain 
     Reorganizations. Simplifies procedures for a national bank 
     reorganizing into a bank holding company.
       Section 1205. National Bank Directors. Permits national 
     banks to elect directors to terms of up to 3 years on a 
     staggered basis. Permits Comptroller to remove the limitation 
     on the number of board members.
       Section 1206. Amendment to Bank Consolidation and Merger 
     Act. Permits national bank, upon approval of Comptroller, to 
     merge or consolidate with its subsidiaries or nonbank 
     affiliates with no increase in powers for the national bank.
       Section 1207. Loans on or Purchases by Institutions of 
     their own Stock. Repeals prohibition on a bank owning or 
     holding its stock, but retains prohibition on making loans or 
     discounts on the security of its own stock.
       Section 1208. Purchased Mortgage Servicing Rights. 
     Authorizes the appropriate Federal banking agencies to 
     jointly simplify capital calculations by not requiring banks 
     or thrifts to distinguish between types of mortgage servicing 
     rights. This would allow regulators to value marketable 
     mortgage servicing assets in capital determinations up to 
     100% of their fair market value rather than the current level 
     which is limited to 90% of fair market value.
       Section 1211. Call Report Simplifications. Provides for the 
     modernization of the call report filing and disclosure 
     system.
       Section 1221. Elimination of Duplicative Disclosure of Fair 
     Market Value of Assets and Liabilities. Clarifies that 
     banking agencies need no longer pursue further development of 
     the supplemental disclosure method. Even so, Section 36 of 
     FDIA and its supporting regulations provide agencies with 
     discretion to seek additional information in regulatory 
     reports and annual reports regarding fair market value.
       Section 1222. Payment of Interest in Receiverships With 
     Surplus Funds. Gives the FDIC the authority to establish a 
     uniform interest rate with regard to receiverships.
       Section 1223. Repeal of Reporting Requirement on 
     Differences in Accounting standards. Amends the requirement 
     for each agency to produce an Annual Report on ``Agency 
     Differences in
       Section 1224. Agency Review of Competitive Factors in Bank 
     Mergers Act Filings. Eliminates the requirement that each 
     federal banking agency request a competitive factors report 
     from the other three federal banking agencies as well as the 
     Attorney General. The proposed provision would decrease that 
     number to two, with the AG continuing to be required to 
     consider the competitive factors of each merger transaction. 
     The provision also requires the responsible banking agency to 
     take into account appropriate competitive measures when 
     considering the competitive effect of mergers.
       Section 1231. Federal Reserve Board Buildings. Allows the 
     Federal Reserve Board to have more than one building.
       Section 1232. Positions of Board of Governors of Federal 
     Reserve System on the Executive Schedule. Raises the pay of 
     the Chairman of the Federal Reserve Board from Level II of 
     the Executive Schedule to Level I (approx. $14,800) and the 
     Board Members from Level III to Level II (approx. $10,500).
       Section 1233. Extension of Time. Extends deadline for new 
     FHLB capital rules from 12 months to 18 months.
       Section 1241. Technical Correction Relating to Deposit 
     Insurance Funds. Makes technical correction to FDIA.
       Section 1242. Rules For Continuation of Deposit Insurance 
     For Member Banks Converting Charters. Makes technical changes 
     with regard to a cross-reference cite.
       Section 1243. Amendments to the Revised Statutes.
       503(a) Provides that the Comptroller may waive the U.S. 
     citizenship requirement for up to a minority of a national 
     bank's directors. The Economic Growth and Regulatory 
     Paperwork Reduction Act (EGRPRA) inadvertently deleted the 
     long-standing authority of the Comptroller to waive the 
     citizenship requirement for up to a minority of directors of 
     national banks that are subsidiaries or affiliates of foreign 
     banks.
       503(b) Updates Section II to reflect that national banks no 
     longer issue national currency, while maintaining the 
     provision that prohibits the Comptroller from owning interest 
     in the national banks they regulate.
       503(c) Repeals Section 5138 of the Revised Statutes (first 
     enacted in 1864), which imposes minimum capital requirements 
     for national banks. This minimum capital requirement (ranging 
     from $50,000 to $200,000) is obsolete, since Congress granted 
     the Federal banking agencies the regulatory authority to 
     establish minimum capital requirements in 1983.
       Section 1244. Conforming Change to the International 
     Banking Act of 1978. Allows branches and agencies of foreign 
     banks that satisfy the asset test imposed on domestic banks 
     to be examined on an 18-month cycle instead of the 12-month 
     cycle.

     

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