[Congressional Record (Bound Edition), Volume 146 (2000), Part 2]
[Senate]
[Pages 1614-1617]
[From the U.S. Government Publishing Office, www.gpo.gov]



     NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT 
                           AMENDMENTS OF 1999

  Mr. COVERDELL. Madam President, I ask unanimous consent that the 
Senate now proceed to consideration of Calendar No. 374, S. 400.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 400) to provide technical corrections to the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996, to improve the delivery of housing assistance to 
     Indian tribes in a manner that recognizes the right of tribal 
     self-governance, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Indian Affairs, with an 
amendment in the nature of a substitute to strike all after the 
enacting clause and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Native 
     American Housing Assistance and Self-Determination Act 
     Amendments of 1999''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on waiver authority.
Sec. 3. Assistance to families that are not low-income.
Sec. 4. Elimination of waiver authority for small tribes.
Sec. 5. Labor standards.
Sec. 6. Environmental compliance.
Sec. 7. Oversight.
Sec. 8. Allocation formula.
Sec. 9. Hearing requirement.
Sec. 10. Performance agreement time limit.
Sec. 11. Technical and conforming amendments.

     SEC 2. RESTRICTION ON WAIVER AUTHORITY.

       (a) 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.''.
       (b) 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).''.

     SEC. 3. 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 by a recipient to Indian families that are not low-
     income families under section 201(b)(2), evidence that there 
     is a need for housing for each such family during that period 
     that cannot reasonably be met without such assistance.''.

     SEC. 4. 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).

     SEC. 5. LABOR STANDARDS.

       Section 104(b)(1) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4114(b)(1)) is 
     amended--
       (1) by inserting ``relating to 12 or more units of housing 
     assisted under this Act'' after ``lease''; and
       (2) 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') (46 Stat. 1494, chapter 411; 40 U.S.C. 
     276a et seq.)''.

     SEC. 6. 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.''.

     SEC. 7. OVERSIGHT.

       (a) 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).''.
       (b) 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

[[Page 1615]]

     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) Onsite visits.--To the extent practicable, the 
     reviews and audits conducted under this subsection shall 
     include onsite 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.''.

     SEC. 8. 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 
     2000 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 under subparagraph 
     (A) 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.''.

     SEC. 9. 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 indenting 
     each such subparagraph 2 ems to the right;
       (2) by striking ``Except as provided'' and inserting the 
     following:
       ``(1) In general.--Except as provided'';
       (3) by striking ``If the Secretary takes an action under 
     paragraph (1), (2), or (3)'' and inserting the following:
       ``(2) Continuance of actions.--If the Secretary takes an 
     action under subparagraph (A), (B), or (C) of paragraph 
     (1)''; and
       (4) by adding at the end the following:
       ``(3) Exception for certain actions.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, if the Secretary makes a determination that 
     the failure of a recipient of assistance under this Act to 
     comply substantially with any material provision (as that 
     term is defined by the Secretary) of this Act is resulting, 
     and would continue to result, in a continuing expenditure of 
     Federal funds in a manner that is not authorized by law, the 
     Secretary may take an action described in paragraph (1)(C) 
     before conducting a hearing.
       ``(B) Procedural requirement.--If the Secretary takes an 
     action described in subparagraph (A), the Secretary shall--
       ``(i) provide notice to the recipient at the time that the 
     Secretary takes that action; and
       ``(ii) conduct a hearing not later than 60 days after the 
     date on which the Secretary provides notice under clause (i).
       ``(C) Determination.--Upon completion of a hearing under 
     this paragraph, the Secretary shall make a determination 
     regarding whether to continue taking the action that is the 
     subject of the hearing, or take another action under this 
     subsection.''.

     SEC. 10. 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 section--
       (A) by adjusting the margin 2 ems to the right; 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).''.

     SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) 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--
       (1) by striking the item relating to section 206; and
       (2) by striking the item relating to section 209 and 
     inserting the following:

``209. Noncompliance with affordable housing requirement.''.
       (b) 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.
       (c) 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).''.


                           Amendment No. 2855

(Purpose: To ensure that laws or regulations relating to the payment of 
 prevailing wages that are adopted by Indian tribes are not superseded 
                 by certain provisions of Federal law)

  Mr. COVERDELL. Madam President, Senator Campbell has an amendment at 
the desk, and I ask for its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Georgia [Mr. Coverdell], for Mr. Campbell, 
     proposes an amendment numbered 2855.

  Mr. COVERDELL. Madam President, I ask unanimous consent that reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 19, strike lines 2 through 10 and insert the 
     following:
       Section 104(b) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4114(b)) is 
     amended--
       (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') (46 Stat. 1494, chapter 411; 40 U.S.C. 
     276a et seq.)''; and
       (2) by adding at the end the following:
       ``(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 1 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.''.

  Mr. COVERDELL. I ask unanimous consent that the amendment be agreed 
to.
  The PRESIDING OFFICER. Without objection, it is so ordered.

[[Page 1616]]

  The amendment (No. 2855) was agreed to.
  Mr. COVERDELL. Madam President, I ask unanimous consent that the 
substitute amendment, as amended, be agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment, as amended, was agreed to.
  Mr. COVERDELL. Madam President, I ask unanimous consent that the 
bill, as amended, be read the third time and passed, the motion to 
reconsider be laid upon the table, and that any statements relating to 
the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 400), as amended, was read the third time and passed, as 
follows:

                                 S. 400

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Native 
     American Housing Assistance and Self-Determination Act 
     Amendments of 2000''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on waiver authority.
Sec. 3. Assistance to families that are not low-income.
Sec. 4. Elimination of waiver authority for small tribes.
Sec. 5. Labor standards.
Sec. 6. Environmental compliance.
Sec. 7. Oversight.
Sec. 8. Allocation formula.
Sec. 9. Hearing requirement.
Sec. 10. Performance agreement time limit.
Sec. 11. Technical and conforming amendments.

     SEC 2. RESTRICTION ON WAIVER AUTHORITY.

       (a) 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.''.
       (b) 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).''.

     SEC. 3. 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 by a recipient to Indian families that are not low-
     income families under section 201(b)(2), evidence that there 
     is a need for housing for each such family during that period 
     that cannot reasonably be met without such assistance.''.

     SEC. 4. 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).

     SEC. 5. 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) 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') (46 Stat. 1494, chapter 411; 40 U.S.C. 
     276a et seq.)''; and
       (2) by adding at the end the following:
       ``(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 1 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.''.

     SEC. 6. 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.''.

     SEC. 7. OVERSIGHT.

       (a) 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).''.
       (b) 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) Onsite visits.--To the extent practicable, the 
     reviews and audits conducted under this subsection shall 
     include onsite 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.''.

     SEC. 8. 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 
     2000 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 under subparagraph 
     (A) 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.''.

[[Page 1617]]



     SEC. 9. 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 indenting 
     each such subparagraph 2 ems to the right;
       (2) by striking ``Except as provided'' and inserting the 
     following:
       ``(1) In general.--Except as provided'';
       (3) by striking ``If the Secretary takes an action under 
     paragraph (1), (2), or (3)'' and inserting the following:
       ``(2) Continuance of actions.--If the Secretary takes an 
     action under subparagraph (A), (B), or (C) of paragraph 
     (1)''; and
       (4) by adding at the end the following:
       ``(3) Exception for certain actions.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, if the Secretary makes a determination that 
     the failure of a recipient of assistance under this Act to 
     comply substantially with any material provision (as that 
     term is defined by the Secretary) of this Act is resulting, 
     and would continue to result, in a continuing expenditure of 
     Federal funds in a manner that is not authorized by law, the 
     Secretary may take an action described in paragraph (1)(C) 
     before conducting a hearing.
       ``(B) Procedural requirement.--If the Secretary takes an 
     action described in subparagraph (A), the Secretary shall--
       ``(i) provide notice to the recipient at the time that the 
     Secretary takes that action; and
       ``(ii) conduct a hearing not later than 60 days after the 
     date on which the Secretary provides notice under clause (i).
       ``(C) Determination.--Upon completion of a hearing under 
     this paragraph, the Secretary shall make a determination 
     regarding whether to continue taking the action that is the 
     subject of the hearing, or take another action under this 
     subsection.''.

     SEC. 10. 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 section--
       (A) by adjusting the margin 2 ems to the right; 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).''.

     SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) 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--
       (1) by striking the item relating to section 206; and
       (2) by striking the item relating to section 209 and 
     inserting the following:

``209. Noncompliance with affordable housing requirement.''.
       (b) 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.
       (c) 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).''.

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