[Congressional Record Volume 146, Number 148 (Tuesday, December 5, 2000)]
[House]
[Pages H11960-H11996]
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 bill
(H.R. 5640) to expand homeownership in the United States, and for other
purposes.
The Clerk read as follows:
H.R. 5640
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
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.
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. Home equity conversion mortgages.
Sec. 202. 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.
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--FEDERAL RESERVE BOARD PROVISIONS
Sec. 1001. Federal Reserve Board buildings.
Sec. 1002. Positions of Board of Governors of the Federal Reserve
System on the Executive schedule.
Sec. 1003. Amendments to the Federal Reserve Act.
TITLE XI--BANKING AND HOUSING AGENCY REPORTS
Sec. 1101. Short title.
Sec. 1102. Preservation of certain reporting requirements.
Sec. 1103. Coordination of reporting requirements.
Sec. 1104. Elimination of certain reporting requirements.
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. Extension of time.
Subtitle D--Technical Corrections
Sec. 1231. Technical correction relating to deposit insurance funds.
Sec. 1232. Rules for continuation of deposit insurance for member banks
converting charters.
Sec. 1233. Amendments to the Revised Statutes of the United States.
Sec. 1234. Conforming change to the International Banking Act of 1978.
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
[[Page H11961]]
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 103 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. 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.
[[Page H11962]]
``(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.
``(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. 202. 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 are
authorized to be appropriated to carry out this section such
sums as may be necessary for fiscal year 2001.''.
(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 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.
[[Page H11963]]
(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 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
[[Page H11964]]
(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 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
[[Page H11965]]
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) Oversight.--
(1) Repayment.--Section 209 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4139) is amended to read as follows:
``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING
REQUIREMENT.
``If a recipient uses grant amounts to provide affordable
housing under this title, and at any time during the useful
life of the housing the recipient does not comply with the
requirement under section 205(a)(2), the Secretary shall take
appropriate action under section 401(a).''.
(2) Audits and reviews.--Section 405 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4165) is amended to read as follows:
``SEC. 405. REVIEW AND AUDIT BY SECRETARY.
``(a) Requirements Under Chapter 75 of Title 31, United
States Code.--An entity designated by an Indian tribe as a
housing entity shall be treated, for purposes of chapter 75
of title 31, United States Code, as a non-Federal entity that
is subject to the audit requirements that apply to non-
Federal entities under that chapter.
``(b) Additional Reviews and Audits.--
``(1) In general.--In addition to any audit or review under
subsection (a), to the extent the Secretary determines such
action to be appropriate, the Secretary may conduct an audit
or review of a recipient in order to--
``(A) determine whether the recipient--
``(i) has carried out--
``(I) eligible activities in a timely manner; and
``(II) eligible activities and certification in accordance
with this Act and other applicable law;
``(ii) has a continuing capacity to carry out eligible
activities in a timely manner; and
``(iii) is in compliance with the Indian housing plan of
the recipient; and
``(B) verify the accuracy of information contained in any
performance report submitted by the recipient under section
404.
``(2) On-site visits.--To the extent practicable, the
reviews and audits conducted under this subsection shall
include on-site visits by the appropriate official of the
Department of Housing and Urban Development.
``(c) Review of Reports.--
``(1) In general.--The Secretary shall provide each
recipient that is the subject of a report made by the
Secretary under this section notice that the recipient may
review and comment on the report during a period of not less
than 30 days after the date on which notice is issued under
this paragraph.
``(2) Public availability.--After taking into consideration
any comments of the recipient under paragraph (1), the
Secretary--
``(A) may revise the report; and
``(B) not later than 30 days after the date on which those
comments are received, shall make the comments and the report
(with any revisions made under subparagraph (A)) readily
available to the public.
``(d) Effect of Reviews.--Subject to section 401(a), after
reviewing the reports and audits relating to a recipient that
are submitted to the Secretary under this section, the
Secretary may adjust the amount of a grant made to a
recipient under this Act in accordance with the findings of
the Secretary with respect to those reports and audits.''.
(f) 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.''.
(g) 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
[[Page H11966]]
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.''.
(h) 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).''.
(i) 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.''.
(j) 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 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;
[[Page H11967]]
(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.
``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
[[Page H11968]]
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;
``(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.--
[[Page H11969]]
``(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 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.--
[[Page H11970]]
``(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.
``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;
[[Page H11971]]
``(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 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
[[Page H11972]]
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.''.
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
[[Page H11973]]
``(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
``(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
[[Page H11974]]
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
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);
[[Page H11975]]
``(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--
``(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.
[[Page H11976]]
``(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.--
``(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.
[[Page H11977]]
``(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.
``(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,
[[Page H11978]]
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 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
[[Page H11979]]
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 200 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 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
[[Page H11980]]
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 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.
[[Page H11981]]
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.''.
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.''.
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 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)''; and
(B) by striking the last comma and all that follows through
``subsection (n)''.
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
[[Page H11982]]
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.
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--FEDERAL RESERVE BOARD PROVISIONS
SEC. 1001. 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. 1002. POSITIONS OF BOARD OF GOVERNORS OF THE 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
[[Page H11983]]
(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. 1003. 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.''.
TITLE XI--BANKING AND HOUSING AGENCY REPORTS
SEC. 1101. SHORT TITLE.
This title may be cited as the ``Federal Reporting Act of
2000''.
SEC. 1102. 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).
(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. 1103. 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. 1104. 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--
[[Page H11984]]
(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 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 hereby 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.
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 bank 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 bank 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 national bank;
``(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 bank in exchange for their
shares of stock of the bank;
``(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
bank 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 bank
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
a national bank 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, a
national bank 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 bank 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 bank 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 bank any power or authority that
is not permissible for a national bank 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 bank shall make any
loan or discount on the security of the shares of its own
capital stock.
``(b) Exclusion.--For purposes of this section, a national
bank 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--
[[Page H11985]]
(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--
(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. 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 D--Technical Corrections
SEC. 1231. 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. 1232. 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. 1233. 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 hereby repealed.
SEC. 1234. 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 (Mr. LaHood). 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).
{time} 1045
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the bill before the House today, the American
Homeownership and Economic Opportunity Act, combines a number of
important banking and housing proposals that were approved by the House
on a bipartisan basis earlier in the session.
We are bringing this legislation back to the floor after a
consultation with the other body with the expectation that this bill
will eventually be enacted into law.
With regard to housing, the legislation draws substantially from H.R.
1776, the American Homeownership and Economic Opportunity Act, which
passed the House by a vote of 417 to 8 on April 6.
Mr. Speaker, there are also provisions drawn from H.R. 202, the
Preserving Affordable Housing for Seniors and Vulnerable Families into
the 21st Century Act, another bipartisan bill designed to help the
elderly and individuals with disabilities.
Let me stress that the housing provisions of this bill are a
testament to the extraordinary work of the gentleman from New York (Mr.
Lazio), the chairman of the Subcommittee on Housing and Community
Opportunity. During the last 6 years, the gentleman from New York
(Chairman Lazio) has been a recognized leader in Congress on affordable
housing and community renewal issues, and in particular, as the author
and champion of the historic Public and Assisted Housing Reform Act
enacted in the 105th Congress.
In my experience, there has been no greater subcommittee chairmanship
than that of the gentleman from New York, and his work will make a
great deal of difference in the everyday lives of low-income Americans
for generations to come.
There is an also great debt of gratitude owed in this act to the
gentlewoman from New Jersey (Mrs. Roukema), particularly for those
parts of the bill that deal with deregulation and certain aspects in
the banking industry.
Finally, let me just stress that this bill contains some very
important manufactured housing provisions. Manufactured housing is an
important part of the American housing mosaic, and modernizing the
reform and regulations governing manufactured housing is long overdue.
It is critical for the economy to improve the quality and affordability
of such housing in the context of maintaining consumer protection and
safety.
There are a number of other features in the bill that other Members
are going to address, but let me just conclude by thanking all Members
for their help and participation in this bill.
In particular, I want to thank the gentleman from New York (Mr.
LaFalce) for his graciousness and thoughtfulness, and the gentleman
from Massachusetts (Mr. Frank) for a number of very thoughtful
additions to this bill. I am very, very much in both of their debts.
Mr. Speaker, the bill before the House today, the American
Homeownership and Economic Opportunity Act, combines a number of
important banking and housing proposals that were approved by the House
on a bipartisan basis earlier in this session. We are bringing this
legislation back to the House after consultation with the other body,
with the expectation that this bill will eventually be enacted into
law.
With regard to housing, the legislation draws substantially from H.R.
1776, the ``American Homeownership and Economic Opportunity Act,''
which passed the House by a vote of 417 to 8 on April 6, 2000. There
are also provisions drawn from H.R. 202, the ``Preserving Affordable
Housing for Seniors and Vulnerable Families into the 21st Century
Act,'' another bipartisan bill designed to help the elderly and
individuals with disablilites with their housing needs which passed the
House on September 27, 1999 by a vote of 405 to 5.
Let me stress that the housing provisions in this bill are a
testament to the extraordinary work of the gentleman from New York,
Rick Lazio, the Chairman of the Housing Subcommittee. During the last 6
years, Chairman Lazio has been the recognized leader in Congress on
affordable housing and community renewal issues, in particular, as the
author and champion of the historic public and assisted housing reform
enacted in the 105th
[[Page H11986]]
Congress. In my experience, there has been no greater Subcommittee
chairmanship than that of Rick Lazio, and his work will make a real
difference in the everyday lives of low-income Americans for
generations to come.
Today, affordable housing continues to be out of the reach for many
Americans. A strong economy has created a dynamic where in many parts
of the country the cost of real estate is rising 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.
Included in our bill are innovative homeownership programs to empower
low-income recipients of Section 8 housing assistance to apply that
assistance towards buying a home. Provisions included in this bill from
H.R. 202 will help the elderly and individuals with disabilities
immensely, and assist the construction and financing of more facilities
for these populations. The legislation helps Native Americans and
Native Hawaiians, and contains many more provision that will improve
our Nation's housing and increase homeownership opportunities.
Finally, the bill also contains important provisions modernizing the
Federal manufacturing housing regulatory regime. 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 non-
controversial, bipartisanly-supported elements of a regulatory relief
package. Many of these regulatory provisions were contained in H.R.
4364 of the 105th Congress which the House approved by voice vote two
years ago, and were carried over this session in legislation introduced
in the House by the gentlelady from New Jersey (Mrs. Roukema), the
distinguished chair of our Financial Institutions Subcommittee.
In this package we are also renewing, some with slight changes,
reporting requirements by the Executive Branch and independent
regulators in some 45 instances, as provided for in legislation passed
by the House last year on a voice vote. Included is the semi-annual
report to Congress of the Federal Reserve Board on the conduct of
monetary policy.
While the reports being renewed are deemed important for the
oversight work of the Banking Committee, I know of no more important
oversight responsibility of the Congress than the review of the Fed's
conduct of monetary policy.
With regard to the Fed, 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 sub-cabinet counterparts.
Let me conclude by thanking all of those Members and staff on both
sides of the House who have participated in putting together the
legislation before us today, and to thank in particular Mrs. Roukema,
Mr. Bereuter, Mr. LaFalce and Mr. Frank who have contributed so much to
all aspects of this bill.
Mr. Speaker, I include for the Record the following material
regarding H.R. 5640.
The material referred to is as follows:
H.R. 5640--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.''
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
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. 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 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 202. Assistant for self-help providers.
Reauthorizes the self-help housing for FY 2001. Allows
projects within 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.
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 or other sources
(including public assistance), that is not less than twice
the Section 8 payment standard established by the PHA;
participation in a housing counseling program provided by the
PHA; and other requirements established by the PHA in
accordance with requirements established by the Secretary of
HUD.
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 form 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.
[[Page H11987]]
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.
Receipts of a certificate from BIA is a prerequisite to any
sale 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.
Premamently 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 now 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 a 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 certification
requirements; has an on going capacity to carry out eligible
activities in a timely manner; and, has complied with the
proposed housing plan.
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 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 organization experience in the planning and
development of affordable housing for Native Hawaiians.
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
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 reasons
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 federal standards. At the same time, the bill
would reinforce the proposition that installation standards
and regulations remain under the exclusive authority of each
state.
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.
[[Page H11988]]
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 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 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 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 guaranteed 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 principal is equal to or
lower than the refinanced amount plus costs, discount points
not exceeding 2 basis points and, an origination fee 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; allows 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 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 structure,
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 to 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 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 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. Mixing 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.
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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 with 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 and 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
somebody's income exceeds the base rent established by HUD),
but the authority had to be approved on an annual basis
through the appropriations process. This provision puts the
uninsured 236s on equal footing with the FHA insured
projects, which are already allowed to retain excess income.
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.
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--Federal Reserve Board Provisions
Section 1001. Federal Reserve Board Buildings.
Allows the Federal Reserve Board to have more than one
building.
Section 1002. 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 1003. 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 a 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.
Title XI--Banking and Housing Agency Reports
Section 1101. Short title.
The title is cited as the ``Federal Reporting Act of
2000.''
Section 1102. 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 the
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 a 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 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.)
[[Page H11990]]
(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 to 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 fiscal year. Due: Annually. (This report includes other
``sub-reports'' which would also be retained, i.e.
environmental exports and small business exports. Three other
sub-reports are listed for repeal under Section 1005.)
(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 the Mortgagee Review Board which
takes action against mortgagees in violation of the Fair
Housing Act or other statutory requirements.)
Section 1103. 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 Governor 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 1104. 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 agencies efforts to maximize the efficient
use of private sector contractors to manage assets held by
the agency. There is little need for
[[Page H11991]]
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 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.
subtitle B--Streamlining activities of institutions
Section 1211. Call Report Simplifications.
Provides for the modernization of the call report filing
and disclosure system.
subtitle streamlining agency actions
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 Reporting Capital Ratios
and Related Accounting Standards.'' Instead, this provision
directs the Federal banking agencies to jointly produce one
report.
Section 1224. Extension of Time.
Extends deadline for new FHLB capital rules from 12 months
to 28 months.
subtitle D--Technical Corrections
Section 1231. Technical Correction Relating to Deposit
Insurance Funds.
Makes technical correction to FDIA.
Section 1232. Rules for Continuation of Deposit Insurance For
Member Banks Converting Charters.
Makes technical changes with regard to a cross-reference
cite.
Section 1233. Amendments to the Revised Statutes of the
United States.
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 11 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 1234. 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.
Mr. Speaker, I reserve the balance of my time.
Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, in October of this year, our House passed S. 1452, a
bill that included a number of housing and banking provisions that had
been developed on a bipartisan basis. Unfortunately, the majority party
in the Senate took issue with a few provisions in that bill and refused
to take it up.
Therefore, in the interest of enacting the great number of positive,
noncontroversial provisions, in the interest of advancing legislation,
we are therefore back before this body without the excellent provisions
that the Senate refused to accept.
Most critically, I am extremely disappointed that today's bill drops
a provision that I authored to authorize 1 percent down FHA mortgage
loans for teachers, policemen, and firemen who would buy a home in the
school district or local employing jurisdiction where they work.
The purpose of my bill was to provide low downpayment loans to these
critical public servants to help them afford to buy a home in the
community they serve, and to help schools and localities recruit
teachers, policemen, and firemen.
The Congressional Budget Office had projected that this provision
would generate $125,000 new loans to teachers, policemen, and firemen
over the next 5 years. Moreover, CBO projects it would have increased
the Federal budget surplus by $162 billion over the same 5-year period.
It was a win-win situation. And, the provision was supported by the
Fraternal Order of Police, the American Federation of Teachers, the
National Education Association, the American Association of School
Administrators, et cetera.
In short, it is most unfortunate that today's bill omits that
critical provision. Be assured, the House will be back again next year
fighting for its enactment.
The bill we are now considering includes not only the Manufactured
Housing Improvement Act, largely the House version, for which both the
gentleman from New York (Mr. Lazio) and the gentleman from
Massachusetts (Mr. Frank) in particular deserve special credit, but a
number of other initiatives that have had broad bipartisan support,
including other housing proposals, language reauthorizing the Humphrey-
Hawkins report and other key consumer housing reports, and some
technical changes of importance to bank and thrift regulators.
With respect to housing provisions, today's bill includes a number of
provisions with bipartisan support that have been pulled together from
homeownership and elderly housing legislation that has previously
passed the House. The bill addresses the challenge of meeting the
affordable housing and health care needs of our growing elderly
population.
I am especially pleased 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 reg 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. This is something we need
to do much more of. And it increases flexibility for federally-funded
service coordinators, and provides more resources to sponsors of
existing elderly housing to make needed capital repairs.
Our bill also represents a balanced resolution of the 3-year effort
to reform our manufactured housing legislation. I would point out that
the final product reflects a number of democratic pro-consumer
initiatives.
[[Page H11992]]
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.
Should the present chairman of the Subcommittee on Housing and
Community Opportunity wind up being Secretary of HUD, I think he will
be especially happy that he conceded on those issues to us.
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 the House: 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 to shape policy; some largely technical changes
intended to remove some inefficiencies in the bank and thrift
regulatory system.
As we reach the end of this congressional session, we should pass
this very sound piece of banking and housing legislation.
Mr. Speaker, I would urge its adoption, and I reserve the balance of
my time.
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, first in response to something the gentleman from New
York (Mr. LaFalce) said, let me stress that the gentleman from New York
(Mr. Lazio) and I were deeply disappointed that the provision mentioned
was deleted from the bill, and I am hopeful in the next Congress we can
move forward with that kind of provision. I would be delighted to
assist the gentleman in that effort.
Mr. Speaker, I yield 5 minutes to the distinguished gentlewoman from
New Jersey (Mrs. Roukema), the subcommittee chairman.
(Mrs. ROUKEMA asked and was given permission to revise and extend her
remarks.)
Mrs. ROUKEMA. Mr. Speaker, certainly I rise in strong support of this
bill.
As has been outlined, it comprehensively addresses a range of banking
issues: as mentioned, the important housing provisions and regulatory
burden restrictions and regulation provisions.
Certainly I want to thank the chairman, the gentleman from Iowa (Mr.
Leach), for his outstanding leadership for bringing this bill in this
form back to the floor. As has been noted, it was passed in October,
but it did not get approved in the Senate.
In any case, I want to point out how deeply involved a number of us
have been on this legislation. I want to point out that it is very
important for us to resolve them hopefully once and for all.
The regulatory relief provisions of the bill I would like to focus on
because Congress has a defined responsibility, and we have recognized
that, to assure the Federal laws and regulations and the supervisory
system promote safety and soundness of the banking system. Unnecessary
regulatory burdens by their very nature, as we have learned over and
over again in these recent years, unnecessary regulatory burdens have
the effect of undermining the ability of banks to operate efficiently
and effectively.
I want to point out that I am pleased that this bill includes H.R.
1585, the Depository Institution Regulatory Streamlining Act, which I
introduced in Congress and have gotten broad support for. So I am very
pleased that this is included.
There are a number of technical provisions, but we widely agree on a
bipartisan basis that this is necessary. I am pleased that the bill
contains many of the provisions that we have worked together on in a
cooperative fashion, both on a bipartisan basis with the industry and
with the regulators and all the members of the Committee on Banking and
Financial Services.
I want to stress here something that has not been mentioned
specifically. That is the private mortgage insurance technical
corrections and clarifications that are included in this bill.
In particular, this bill will clarify the cancellation and
termination issues to ensure that homeowners will be able to cancel
private mortgage insurance, PMI, as it is noted. This is what Congress
intended in 1998 in the bills that we passed at that time.
This clarification will be particularly helpful to those with certain
adjustable rate mortgages. The bill also ensures that defined terms,
such as ``adjustable rate mortgage'' and ``balloon rate mortgages'',
are used consistently and appropriately. So this particular piece of
legislation is consistent also with what the gentleman from Utah (Mr.
Hansen), a leader on this issue, desires. His legislation and
leadership has been helpful, and we have put it into this bill.
Again I want to thank the gentleman from Iowa (Mr. Leach) and the
gentleman from New York (Mr. LaFalce), and look forward to clearing up
a lot of ambiguities in the law through this legislation for the good
of all people in housing, as well as regulatory relief.
Mr. FRANK of Massachusetts. Mr. Speaker, I ask unanimous consent that
I be allowed to control the time of the gentleman from New York (Mr.
LaFalce).
The SPEAKER pro tempore (Mr. LaHood). Is there objection to the
request of the gentleman from Massachusetts?
There was no objection.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, I am pleased that at this late date we are still able to
move this bill forward. I would like to make a point that sometimes
escapes our friends in the press and the rest of the press, which may
be the majority.
The House is continuing to function, as will the other body. We will
pass important legislation. There is this assumption among headline
writers and some others that when there are major differences of
opinion between the parties, somehow that means paralysis of the whole
institution.
{time} 1100
This is one further example of the fallacy of that viewpoint. We are
capable of strong disagreement on some important issues and at the same
time being able to work together on nonideological matters that advance
the public interest. This is an example.
There have probably been few times in our country's history when
there has been a greater partisan division over some important
subjects; that does not prevent this committee, and this House and,
ultimately, this Congress from moving forward with an important piece
of legislation that was more important than people will know, because
it is not controversial.
We do have a journalistic tendency to equate controversy with
importance, and if Members are not yelling at each other, nobody knows
about it. This is a very significant piece of legislation that will
advance important housing interests, and it will be done in this kind
of fashion.
There are some very important specifics. The manufactured housing
piece has been alluded to. I want to acknowledge that the gentleman
from Indiana (Mr. Roemer), who sits here and who will be speaking
later, did an enormous amount of work with me and others in persuading
us of the importance of sticking with it.
We had some disagreements. I do not think everything in this is
perfect.
Mr. Speaker, I yield to the gentleman from Iowa (Mr. Leach), chairman
of the Committee on Banking and Financial Services, because he and I
had a colloquy on the manufactured housing piece in the last discussion
of this bill. And I would just like to incorporate it by reference and
ask the gentleman if he agrees that our previous colloquy should stand
with regard to this bill.
Mr. LEACH. Mr. Speaker, I fully agree with the gentleman from
Massachusetts (Mr. Frank), and I believe it was a thoughtful expression
of concern on the gentleman's part in the last debate, and that
colloquy should stand exactly as in this debate.
Mr. FRANK of Massachusetts. Mr. Speaker, I thank the gentleman from
[[Page H11993]]
Iowa (Chairman Leach), and I hope we have set an example for our
colleagues by referring to something we both said before and not
repeating it.
The manufactured housing piece is important, because manufactured
housing is important. Manufactured housing is an undervalued housing
resource, particularly for people of moderate income, and to the extent
that we can advance the ability of the manufactured housing industry to
supply that important niche in the housing market, we should take it.
We advance it in this bill.
There are some gaps, as we have said, and I look forward to working
on them next year. We also took some steps to further protect those
tenants who are living in federally subsidized tendencies, not public
housing, but privately owned, federally subsidized tenancies, who would
otherwise have been victimized by a 20-year expiration date that was
put into the law that should not have been. This tweaks further
legislation, that we did in a favored way earlier, the gentleman from
New York (Mr. Lazio), chairman of the Subcommittee on Housing and
Community Opportunity, and I had worked on. We in this past Congress,
essentially protected virtually all of the tenants in those tenancies
from eviction.
I wish we could have also protected the tenancies. We could not. That
is, when the existing tenants leave, we will lose those subsidized
units. That is something I hope we will address next year, but we have
protected the tenancies.
I appreciate the ability to work with the gentleman from New York
(Mr. Lazio) on that, and we extend that somewhat here.
We do some other important things in this bill within the limits that
were set for us, and this is the final point I want to make, this is an
example of cooperation on a nonideological set of issues where we were
able to, within the framework of existing programs and law, improve
things.
There is one other specific thing I want to mention that is
important, and that was we make it easier to ease Federal housing
assistance supplied through HUD in conjunction with the low-income
housing tax credit, and we should again be doing more of that next
year. That is a very important piece that the gentleman from New York
(Mr. Lazio) and I have worked on, and I am very pleased that we have
been able to do that to improve the efficiency of both programs so they
can go further.
This leaves us, however, with an undone task. And I am grateful to
the gentleman from Iowa (Mr. Leach), the gentleman from New York (Mr.
Lazio), and the staffs of both committees who did an enormous amount of
important technical work on this bill, which is primarily a technical
bill. We did the best we could within the framework. Now is the time to
address the framework.
There is a housing crisis increasingly in this country caused,
ironically in some part, by prosperity because, as some people increase
their wealth, those who are not participants in that prosperity find
themselves squeezed. That is why we tried, as the gentleman from Iowa
(Mr. Leach) and the gentleman from New York (Mr. LaFalce) mentioned, to
extend some special help in cities to policeman and teachers, people
who serve our public interests and who are sometimes required by law to
live in the municipality where they work but find themselves by
economic trends priced out of an ability to live there.
We tried to help them. It is time for us to get back in the business
of increasing housing production. This bill and the previous bill that
we adopted goes as far as it is possible to go without getting back in
the housing production business, but the demands of this society are
such that now we have to get back in the housing production business,
and I hope we will be able to do that next year.
Mr. Speaker, I reserve the balance of my time.
Mr. LEACH. Mr. Speaker, I yield 2 minutes to the distinguished
gentleman from New York (Mr. Gilman), chairman of the Committee on
International Relations.
(Mr. GILMAN asked and was given permission to revise and extend his
remarks.)
Mr. GILMAN. Mr. Speaker, I am pleased to rise today in strong support
of the American Homeownership and Economic Opportunity Act of 2000,
legislation containing a number of housing measures which the House has
already approved throughout the 106th Congress.
Though our economy is strong, it imperative that Congress continue to
focus on the needs of those who are in need of clean, safe, and
affordable housing. Furthermore, we must recognize that often outdated
or poorly crafted regulations are the only barriers standing between
working families and homeownership.
Accordingly, I want to thank our good friend and colleague, the
gentleman from Iowa (Mr. Leach), our distinguished chairman of the
Committee on Banking and Financial Services for the introduction of
this legislation now before us.
In addition, I want to commend the gentleman from New York (Mr.
Lazio), chairman of the Subcommittee on Housing and Community
Opportunity, for his diligence and outstanding work in seeing these
measures through to a successful conclusion. The gentleman from New
York (Mr. Lazio) throughout his tenure in the Congress has been a
strong champion for affordable, accessible and quality housing for all
of our citizens.
The legislation before us today provides grants to States and local
governments to renew regulatory barriers against affordable housing. It
also provides for the refinancing of home equity conversion mortgages
for our elderly and provides authorization for public housing
authorities to provide down payment assistance and important
construction and safety standards for manufactured homes.
Moreover, this legislation provides numerous other worthy programs to
streamline and provide homeownership opportunities.
Accordingly, Mr. Speaker, I urge all of our colleagues to support
this important omnibus housing measure, and I thank the gentleman from
Iowa for yielding the time to me.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield 4 minutes to the
gentleman from Indiana (Mr. Roemer), who did so much to make sure that
we address the manufactured housing issues in this bill.
Mr. ROEMER. Mr. Speaker, I thank my good friend, the gentleman from
Massachusetts (Mr. Frank) for yielding time to me, and I would like to
start by talking about this bipartisan bill in a bipartisan way and
saying to my colleagues here, as the gentleman from Massachusetts (Mr.
Frank), my good colleague said, to the people hopefully watching on
television, that I hope this bill is a stepping stone for successes of
a future Congress, that we can work together in a bipartisan way to
help moderate- and low-income people get access to housing and help
their children and help their families and help engage in this economy
that has benefitted so many people but has also left some behind.
I want to especially thank the gentleman from Massachusetts (Mr.
Frank), my friend, and the gentleman from New York (Mr. LaFalce) for
never giving up on this bill at times when this process may have killed
this bill or put it in the Senate, where we had some tough sledding for
a while; and I want to thank the gentleman for your tenacity and your
determination.
I want to thank the gentleman from Iowa (Mr. Leach) and the gentleman
from New York (Mr. Lazio) for their hard work on this legislation.
In perspective, Mr. Speaker, roughly one out of every four new homes
in America is a manufactured home; and yet up until today, up until
this historic moment, we have waited almost 26 years to update the
regulatory infrastructure to say how we will produce and manufacture
these homes that are increasingly better quality and increasingly
places for people to start in the home equity ladder and moving up.
This is historic in meeting this challenge from the American people.
I am very happy we finally are there today passing this legislation.
Can we imagine if we were passing high-technology legislation that had
not been addressed for 25 years given the changes in that industry over
the last 8 years?
We have worked with President Bush and Secretary Kemp. We have worked
with President Clinton and Secretary Cisneros and Secretary Cuomo and
Mr.
[[Page H11994]]
Apgar on this legislation, and I want to thank them and the Clinton
administration for their hard work and their diligence and their
patience and their tenacity to get this legislation through today.
In a broader sense, S. 1452 promotes and expands modified section
202, elderly, and section 811, disabled housing programs. It allows
seniors to refinance federally insured reverse mortgages, and it
includes numerous bank regulatory relief provisions. All of these
provisions are very important in including people in the ladder of
homeownership.
As a longtime advocate of manufactured housing, I have been working
with the Department of Housing and Urban Development for successive
Presidential administrations and for 8 years to pass this important
regulatory change in the climate of how we address regulations for
consumer safety and for safe products coming from the industry.
I am currently one of the authors and cosponsors of this Manufactured
Housing Improvement Act, which has become title VII of this bill. It
seeks to reform and improve the Federal manufactured housing program by
modernizing 26-year-old statutory frameworks that have often been
characterized by ineffective allocation of resources within the agency
and a poor response to the needs and concerns of both manufacturers and
consumers.
Mr. Speaker, I again thank my colleagues for this bipartisan
legislation and hope this leads to bipartisanship in education and debt
reduction and electoral reform and campaign finance reform in the next
session of Congress.
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, first let me thank the gentleman from Indiana (Mr.
Roemer) for his thoughtful additions to this bill. Manufactured housing
is clearly one of the most important aspects of the American housing
mosaic and key to our future.
Mr. Speaker, I yield 2 minutes to the gentleman from Nebraska (Mr.
Bereuter).
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, I rise in strong support of this
legislation.
Mr. Speaker, this Member wants to express my appreciation and my
commendations to the gentleman from Iowa (Mr. Leach), Chairman of the
Committee on Banking and Financial Services; the gentleman from New
York (Mr. Lazio), Chairman of the Subcommittee on Housing and Community
Opportunity; the gentlewoman from New Jersey (Mrs. Roukema); as well as
the gentleman from New York (Mr. LaFalce); the gentleman from
Massachusetts (Mr. Frank); and to the gentleman from Indiana (Mr.
Roemer) and others who have made important contributions in this
legislation.
This legislation does, through a number of provisions, advance the
cause of homeownership across the United States, as well as improving
the housing opportunities for those Americans who rent their homes.
Mr. Speaker, I remind my colleagues that among the most poorly housed
Americans are those that live on Indian reservations. In most cases,
they live in housing that is public housing, but by the permanent
extension of a demonstration program, section 184, we provide for the
first time through this legislation a continuing opportunity for Native
Americans living on Indian reservations to own their own homes. This
Member believes that is a major contribution.
Additionally, as a part of that effort, through the establishment of
an Indian Lands Title Report Commission, with a sunset, we will see
direction and consistency given to the Bureau of Indian Affairs so that
their procedures are standard and have a positive effect across the
whole country for the use of section 184.
In the area of the housing programs of USDA, this legislation makes a
number of very important advances. Among other things, it makes it
possible for us to extend the provisions of the so-called ``Norfolk
amendment'' to those medium-sized cities that are nonmetropolitan for
the next decade.
These are important provisions of USDA's housing programs for those
of us Americans who live in smaller cities and villages and on farms.
Through this method and others, as we modernize and make it more likely
that these USDA programs will be beneficially used by the USDA's
clients across the country.
This legislation, H.R. 5640, contains many of the same provisions
included in the earlier American Homeownership and Economic Opportunity
Act, H.R. 1776, which passed the House by a vote of 417-8, on April 6,
2000, with this Member's support. Unfortunately, the Senate has yet to
act on H.R. 1776. In addition, many of these provisions also were
included in S. 1452, which passed the House on October 24, 2000, by a
voice vote. Unfortunately, the Senate failed to act on S. 1452.
For many Americans, the 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 in their community. This
legislation goes to great lengths to promote homeownership for
Americans across the entire country.
The following are, in this Member's opinion, six significant
provisions, among many others, of the American Homeownership and
Economic Opportunity Act of 2000.
First, this legislation allows families to use their Federal monthly
assistance for down payment assistance.
Second, this legislation amends Section 502(h) of the Housing Act of
1949 to allow borrowers of the Rural Housing Service (RHS) single-
family loans to refinance either an existing Section 502 direct or
guaranteed loan to a new Section 502 guaranteed loan, provided 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 Single Family Loan Guarantee Program. In particular, this loan
guarantee program, which was first authorized because of my initiative,
has been very effective in non-metropolitan communities by guaranteeing
loans made by approved lenders to low to moderate income households.
In particular, since its inception as a pilot program in 1991, the
Section 502 Single-Family Loan Guarantee Program has facilitated over
$10.2 billion in lending in non-metropolitan areas. This translates
into 151,000 loans to families who now own homes which they otherwise
may not have been able to purchase.
Third, this measure extends the grandfather status until the 2010
census for similarly situated cities nationwide like Norfolk, Nebraska,
to continue to be able to use the USDA Rural Housing Service program.
The current grandfather is until the 2000 census, which is currently
under way. This Member introduced a bill earlier in the 106th Congress
which would accomplish the furtherance of this grandfather provision
until 2010.
Fourth, this legislation also includes a permanent authorization of
Section 184, the Native American Loan Guarantee program, which this
Member authored. Under current law, the Section 184 program is
authorized through 2001. 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 who are otherwise unable to secure conventional financing due
to the trust status of Indian reservation land.
Fifth, a provision is included in this legislation which would create
a short term Indian Lands Title Report Commission to improve 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 previously in the
current 106th Congress. Moreover, this Commission should facilitate the
Section 184 program to benefit additional Native Americans in
purchasing homes.
Sixth, this Member is pleased that as a matter of equity, this
legislation extends Native American housing assistance to Native
Hawaiians. In particular, it applies the Section 184 Loan Guarantee
program to the unique legal status of the Hawaiian home lands.
Lastly, it is important to note that this bill no longer contains the
Federal Housing Administration (FHA) reduced downpayment provisions for
municipal employees. This provision resulted in opposition to the bill
by some in the Senate. Hopefully, the Senate will now finally act on
the American Homeownership and Economic Opportunity Act of 2000.
In closing, this Member, because of the above provisions, and for
other reasons, would encourage his colleagues to vote for H.R. 5640.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield 2\1/4\ minutes to
the gentlewoman from Ohio (Mrs. Jones), a very active member of the
Subcommittee on Housing and Community Opportunity.
(Mrs. JONES of Ohio asked and was given permission to revise and
extend her remarks.)
Mrs. JONES of Ohio. Mr. Speaker, I would like to thank the gentleman
from Iowa (Mr. Leach), the chairman
[[Page H11995]]
of the Committee on Banking and Financial Services, and the gentleman
from New York (Mr. LaFalce), my ranking member on the Committee on
Banking and Financial Services, and the gentleman from Massachusetts
(Mr. Frank), the ranking member on the Subcommittee on Housing and
Community Opportunity, for all the work that they do in this particular
area.
In my first term of Congress, serving on the Subcommittee on Housing
and Community Opportunity has been one of the most exciting
opportunities that I have had. I am glad to serve as the chair of the
Housing committee for the Congressional Black Caucus.
This piece of legislation will provide a number of incentives for
housing ownership in my congressional district.
{time} 1115
On December 1, I had the pleasure to have an opportunity to celebrate
World AIDS Day and went to a facility in my congressional district
funded as a result of some of the work that we have been doing on the
Subcommittee on Housing and Community Opportunity to visit a home, a
facility, where there are 14 apartments for people who are living with
AIDS just to see in place some legislation that was proposed and
passed. And actually seeing it in place was an exciting thing for me.
Let me point out two or three things that I think are particularly
significant about this piece of legislation. One of those is wherein
people can use section 8 dollars for down payment on a home. I believe
that if we can have families who have wonderful homes or have
comfortable homes where they can raise their families and live together
and enjoy one another, we can deal with many of the issues that we
address in our particular country.
One section, section 904, provides for section 8 housing assistance
for grand-families, meaning grandparents or great grandparents who are
raising their grandchildren. In my congressional district, that is a
significant issue; and I am constantly confronted by grandparents and
great grandparents saying ``I need help.'' So I am so happy to see this
in the legislation as well.
With regard to pilot programs for homeownership for disabled
families, that is an important issue as well.
So I just come here to say I am pleased that we in this Congress on
this date, December 5, are able to pass a significant piece of
legislation that is bipartisan so that the public can see we are moving
forward with the issues of the day and representing the American
people.
Mr. LEACH. Mr. Speaker, I yield 6 minutes to the gentleman from New
York (Mr. Lazio), this body's great friend and I guess the term is
``soon to be departed,'' but with our greatest, greatest esteem.
Mr. LAZIO. Mr. Speaker, let me thank the gentleman from Iowa (Mr.
Leach), the distinguished chairman of the Committee on Banking and
Financial Services, not just for his persistence and hard work, his
professionalism and dedication with respect to this bill, but as a
partner and as a friend, as an honest broker, as somebody who has
worked very hard over these last 6 years to enact sweeping housing
legislation. I am very, very appreciative for his extraordinary
efforts.
Mr. Speaker, I would also like to thank the members of the committee,
the gentleman from Massachusetts (Mr. Frank), who has been a terrific
partner as well in working through in a bipartisan fashion many of
these issues, the gentleman from New York (Mr. LaFalce), Members on
both sides of the aisle who have been tremendous advocates for housing.
Last, but certainly not least, I thank the people who staff the
committee on both sides of the aisle, a thankless job that should be
acknowledged; and, in my humble way, I hope I can right now.
Mr. FRANK of Massachusetts. Mr. Speaker, will the gentleman yield?
Mr. LAZIO. I am happy to yield to the gentleman from Massachusetts.
Mr. FRANK of Massachusetts. Mr. Speaker, I would just on behalf of
everyone on our side want to reciprocate, because the gentleman from
New York (Mr. Lazio) has been an exemplar of our ability to at the same
time have disagreements on major policy issues that are legitimately
debated and yet to be able to work in a very constructive fashion on a
broad range of common agreement.
I thank the gentleman from New York for helping us set that wonderful
example, and he can look back on a record of a very significant
accomplishment of protecting vulnerable tenants.
Mr. LAZIO. Mr. Speaker, I thank the gentleman very much.
More than ever in the impending political environment, comity and
bipartisan cooperation, as the gentleman from Massachusetts (Mr. Frank)
has just referred to, will be the overriding guiding principles that
will shape public policy.
Mr. Speaker, like no other country in the world, Americans cherish
the ideals of self-sufficiency and independence that is embodied in the
family home. For many of us, the most important financial investment
that we make in our lives is the purchase of a home. Homeownership
creates a sense of community, binding neighbors together, investing all
in the common good.
Today, two-thirds of Americans own their own homes, continuing a
trend since the mid-1990s of historically high homeownership rates.
Much of this success is attributed to the strong American economy, a
product of Federal fiscal restraint, and the enterprising spirit of
working men and women across the country.
Yet a paradox of the strong economy has been the rising real estate
prices unmatched by a similar rise in income for many working families.
For African American and Hispanic American populations, homeownership
rates continue to remain under 50 percent.
We are also confronting a demographic explosion as America's baby
boomers move into retirement years. Today, there are more than 33
million Americans age 65 years and older. By the year 2020, the number
will grow to almost 53 million, or one in every six Americans. Already
more than a million senior citizens across the country are experiencing
worst-case housing needs.
Our challenge is to do more. Our blueprint is before us. Today we
consider what in many ways is the final piece of the housing puzzle.
During my time as chairman of the Subcommittee on Housing and Community
Opportunity, we have enacted the most comprehensive public housing
reform in 60 years. We have reformed Native American housing, section 8
housing. We have provided the first major partnership with the Habitat
For Humanity, reverse mortgages for seniors. We have set in place
mechanisms to provide permanent housing solutions to homelessness. Most
recently, we have provided a means to preserve affordable housing for
seniors and individuals with disabilities incorporated right in this
bill.
Mr. Speaker, our proposal will build on these accomplishments and
help provide millions more Americans with greater opportunity for
affordable housing and homeownership. Let me mention just a few of the
provisions that will make a very real difference in the everyday lives
of Americans across the country.
Today, more than 3 million families receive annual rental assistance
through HUD section 8 voucher program. Many of these families would
rent for life, never being able to achieve a sense of homeownership,
never being able to achieve and build personal equity.
Our proposal builds on a successful nonprofit demonstration project
in my home district on Long Island to allow families receiving section
8 to aggregate up to 1 year's worth of assistance toward down payment
and closing costs. So instead of a perpetual cycle of rental
assistance, we are helping build personal wealth and a sense of pride.
Most importantly, we are helping families across the country achieve
the American dream of homeownership.
As we look to the future, for our parents and the generations to
come, the issue of affordable housing will be as critical as the future
of Social Security and Medicare. Without a roof over one's head, little
else seems to matter.
Our proposal today also includes a comprehensive set of initiatives
to give nonprofit housing providers greater flexibility and resources
to grow the inventory of affordable housing for seniors and individuals
with disabilities. If we do nothing else, we must provide security and
peace of mind for those who
[[Page H11996]]
have given so much for their families and to our country.
Mr. Speaker, our continuing challenge must be to recognize that the
family home serves as a foundation for all else, where we teach our
children right from wrong, our sanctuary from the rush of the outside
world, and where we draw strength for the other pursuits of life and
faith.
Today we take an important step toward an agenda for housing and the
renewal of the American dream.
This legislator is very proud to be closing out his career doing just
what he has always loved to do, legislating.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield the remaining time
to the gentlewoman from California (Ms. Lee), one of our most active
and dedicated supporters of the inadequate housing response.
Ms. LEE. Mr. Speaker, I want to thank the gentleman from
Massachusetts for yielding me this time and also for his steady and
committed work and focus on behalf of affordable housing initiatives
throughout our country.
I also want to thank the gentleman from New York (Mr. LaFalce), also
the gentleman from Iowa (Mr. Leach), our committee chair, and the
gentleman from New York (Mr. Lazio) for bringing this bill to the floor
in such a bipartisan manner.
I come from one of the areas in the country which is really quickly
becoming the least affordable area to live in, the Bay Area of
California. So as a Member of this subcommittee, I have been very
pleased to work with our leadership to develop this bill.
I want to just say a couple of things with regard to housing, because
we know that housing is really not just a roof over one's head. Having
a decent place to live can make all of the difference in the world in
terms of the quality of life.
Also, homeownership provides one with a stake in the American dream.
It provides the average, ordinary American with the ability to develop
equity so that he or she may develop a small business or send their
children to college. Not everyone has stock options. Not everyone can
accumulate wealth through mutual funds and through planning in the
stock market. So homeownership is so integral and so serious in terms
of the ability to realize the American dream.
In a time when our country is experiencing a time of unprecedented
economic growth, we must seize this opportunity to invest in those who
need it the most. In communities across our Nation, like, again, in my
district in Oakland, California, which, again, has been in the past
been a very affordable city but now is becoming one of the least
affordable cities, we have our nonprofits and developers and local
governments working together to develop strategies to find solutions to
our housing crisis. This bill will help us tremendously in our efforts.
Clearly, the Federal Government must always fight hard to maintain
what we believe is a very central part to the American dream, and that
is homeownership.
So I would like to thank both sides again for allowing us the
opportunity to bring this bill forward. It is one of the most important
pieces of legislation this year for my area. I want to thank my
colleagues again for the opportunity to make my presentation.
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, in conclusion, let me thank again the
gentleman from New York (Mr. LaFalce), the distinguished ranking
member, and the gentleman from Massachusetts (Mr. Frank), as well as
the gentleman from New York (Mr. Lazio) and the gentlewoman from New
Jersey (Mrs. Roukema), two extraordinary subcommittee chairmen, on this
bill.
This is a bill that has returned to the House with a very important
provision unfortunately deleted because it could not receive consensus
in the other body. But I am very hopeful that this bill in its current
form can be accepted by the other body and that we will have a change
in law that will be for the good of the country and particularly for
the good of those Americans that are on the cusp of being able to
afford a family home. I urge acceptance of this bill.
Ms. PELOSI. Mr. Speaker, I rise in support of the American
Homeownership and Economic Opportunity Act which would enhance
America's affordable housing and promote homeownership opportunities.
Far too many, an estimated 5.4 million Americans, suffer worst-case
housing needs, paying more than 50 percent of their income for housing,
and this bill takes important steps to address this and related housing
needs. The bill would enable tenants to use their section 8 rental
assistance as a downpayment toward homeownership, strengthen the
service delivery of elderly and disabled service coordinators, and
streamline manufactured housing standards.
I strongly support the important provisions in this bill that would
protect tenants of project based section 8 buildings, especially those
who have experienced conversion of their units to market rent levels,
through owner opt-outs or prepayments. Tenant protections are needed to
avoid displacing HUD tenants, to provide converted tenants with
enhanced vouchers, and to reduce other harmful effects. It is vital
that Congress enact all the needed legal steps and HUD take the needed
administrative steps to ensure project based tenants may continue to
reside in their units and are held harmless against conversion's
adverse consequences. This bill takes important steps and in the next
Congress, I will continue working toward this goal.
I strongly support this bill's reach back provision, ``Use of Section
8 Vouchers for Opt-Outs'', which would protect tenants whose properties
were converted in the years before Congress addressed the owner opt-out
problem. This provision would enable HUD to grant converted tenants
protective enhanced vouchers in opt-out situations extending back to
fiscal year 1994. This bill also contains an important provision,
``Maximum Payment Standard for Enhanced Vouchers'', which would grant
some HUD discretion to limit the enhanced voucher payment standard, yet
deny this discretion where it adversely affects HUD tenants. The House
passed Manufactured Housing Improvement Act includes these provisions
in sections 902 and 903. HUD also supports them.
It is disappointing that the Senate did not support, and this bill
does not include, the House passed provisions to promote homeownership
for public service employees, which would enable teachers and public
safety officers to obtain FHA loans with a 1-percent downpayment.
Earlier this year, in coordination with concerned constituents, I
authored a successful amendment to the House passed American
Homeownership and Economic Opportunity Act, H.R. 1776, to extend this
opportunity to prekindergarten teachers. Many cities and rural
communities, including the district I represent, San Francisco, suffer
a shortage of quality teachers and are experiencing problems recruiting
and retaining teachers. To alleviate this problem, we must take
additional steps to help teachers and public sector employees obtain
affordable housing in the communities they serve.
I urge my colleagues to support this bill and continue working to
increase affordable housing opportunities across the country.
Mr. LEACH. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. LaHood). The question is on the motion
offered by the gentleman from Iowa (Mr. Leach) that the House suspend
the rules and pass the bill, H.R. 5640.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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