[Congressional Record (Bound Edition), Volume 146 (2000), Part 4]
[House]
[Pages 4715-4778]
[From the U.S. Government Publishing Office, www.gpo.gov]



      AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000

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

                              H. Res. 460

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

  The SPEAKER pro tempore (Mr. Ose). The Chair recognizes the 
gentlewoman from Ohio (Ms. Pryce) for 1 hour.
  Ms. PRYCE of Ohio. Mr. Speaker, for the purposes of debate only, I 
yield the customary 30 minutes to the distinguished gentleman from 
Massachusetts (Mr. Moakley), ranking member of the Committee on Rules; 
pending which I yield myself such time as I may consume. During 
consideration of this resolution, all time yielded is for the purpose 
of debate only.
  Mr. Speaker, House Resolution 460 is a structured rule providing for 
the consideration of H.R. 1776, the American Homeownership and Economic 
Opportunity Act of 2000.
  The rule provides for 1 hour of general debate, after which the House 
will consider a bipartisan manager's amendment, as well as 11 other 
amendments that the Committee on Rules made in order. Of these 
amendments, five will be offered by Democrats, four will be offered by 
Republicans, and three are bipartisan. Additionally, the rule allows 
the minority to offer the customary motion to recommit with or without 
instructions.
  So I think it is fair to describe this rule as carefully balanced and 
fair. It gives Members on both sides of the aisle equal opportunity to 
alter the legislation, and the House will have the opportunity to fully 
debate the merits of the bill.
  Mr. Speaker, the American Homeownership Act is the result of hard 
work and negotiation, and I commend the gentleman from New York (Mr. 
Lazio) for his continued commitment to updating and improving our 
Nation's housing policies.
  The goal of H.R. 1776 is simple. The bill seeks to help more 
Americans realize the dream of owning their own home. While today's 
economic prosperity has allowed our Nation's homeownership rate to peak 
at 67 percent and nearly 70 million households own their homes, we all 
know that not every American is enjoying today's economic boom. For too 
many hard-working families, homeownership seems an unattainable dream.
  H.R. 1776 takes a number of steps to reduce the barriers to 
homeownership that low-income Americans face. For example, the bill 
reduces unnecessary, excessive regulation that adds thousands of 
dollars to the cost of a home.
  Under this legislation, all proposed Federal regulations must include 
a housing impact analysis so that the Government can determine if 
policies will jeopardize the availability of affordable housing.
  H.R. 1776 also empowers local communities to boost homeownership in 
their neighborhoods. People who own their homes have a greater stake in 
their neighborhoods; and by increasing homeownership, cities can look 
forward to cleaner, safer neighborhoods.
  Under the bill, localities will be able to leverage public funds with 
private funds in order to increase homeownership opportunities. Through 
the creation of a mixed-income loan pool and a home loan guaranteed 
program, more Americans will have access to affordable housing.
  Local flexibility is also enhanced by provisions that allow mayors 
and local government officials to use Federal funds to assist first-
time home buyers who are municipal employees to purchase homes in the 
communities where they serve.
  It makes sense for those who are largely responsible for the safety 
of our communities and who act as role models for our children, such as 
police officers, fire fighters, teachers, to actually live in the 
neighborhoods where they work.
  This bill will grant localities the flexibility to establish smarter 
urban planning policies and strengthen their communities by allowing 
city workers to become our neighbors and keeping workers closer to 
their jobs.
  The American Homeownership Opportunity Act also helps families who 
rely on section 8 rent assistance, by giving public housing authorities 
the option of providing a single grant to a tenant as a down payment 
assistance in lieu of the monthly assistance for rent.
  Special assistance is also provided to the disabled, to Native 
Americans, rural residents, and senior citizens through this bill.
  Another housing policy that H.R. 1776 corrects is the existence of 
HUD-foreclosed, vacant, and substandard properties that scar 
neighborhoods and hamper economic vitality. This bill seeks to put 
these properties into the hands of local governments and community 
development corporations who can revitalize these neglected 
neighborhoods.
  Finally, the bill updates the antiquated provisions of the 
Manufactured Housing Act to improve the quality, safety, and 
affordability of manufactured homes and the Federal management of the 
program. These changes

[[Page 4716]]

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

                              {time}  1030

  I know what it was like. I came from a family of 15, being the 15th 
in the family and not owning a home, and I remember the very first time 
that my parents could afford to buy a home. This opens an opportunity 
for many other individuals who will have that same opportunity to take 
pride and have dignity in a home. It is positive for our communities 
throughout the Nation that individuals will be able to afford to buy 
their home.
  My amendment expresses the sense of the Congress that the Secretary 
of Housing and Urban Development should consult with other agencies to 
make additional properties available for law enforcement officers, 
teachers, and fire fighters. As we expand HUD's existing programs to 
cover fire fighters in this bill, it is essential that we encourage HUD 
to work with other agencies to find additional properties. These 
individuals have made great sacrifices for our communities, and that is 
fire fighters, and that is the amendment that I propose. We should 
recognize them for their unselfishness and their heroic actions. They 
are a part of our community. They are role models in our communities.
  My amendment is supported by 230,000 fire fighters of the 
International Association of fire fighters. It is also supported by the 
San Bernardino Community College District which trains fire fighters 
through ongoing programs. I urge adoption of this rule and support of 
the legislation.
  Mr. MOAKLEY. Mr. Speaker, I yield back the balance of my time.
  Ms. PRYCE of Ohio. Mr. Speaker, I yield myself such time as I may 
consume.
  Once again I would like to emphasize the fairness of this rule. Of 
the 12 amendments made in order by the rule, five are Democrats' 
amendments, four are Republicans' amendments and three are bipartisan. 
I would say this is not only fair but generous since the bill itself is 
not particularly controversial. Like the rule, the underlying bill is a 
careful balance built on compromise which has earned the support of 155 
bipartisan cosponsors. It is also supported by numerous organizations 
from the Fraternal Order of Police and the Consortium for Citizens With 
Disabilities to the Homebuilders and America's Community Bankers.
  Mr. Speaker, as Congress grapples with budget surpluses and many 
Americans bask in our Nation's economic prosperity, we cannot turn a 
blind eye to those who have been left behind and who are still 
struggling to know what the American dream is all about. We can give 
these hardworking individuals a chance to experience the pride and 
independence that is the heart of the American society by giving them a 
chance to own their own home. The flexibility, local control and 
personal

[[Page 4717]]

empowerment that this bill offers to our housing policies is the right 
way to lend a helping hand to those Americans who are honest, 
hardworking citizens and who need a small boost to get ahead and 
improve their lives for themselves and their families. I urge support 
for this fair rule and for the American Homeownership and Economic 
Opportunity Act.
  Mr. Speaker, I yield back the balance of my time, and I move the 
previous question on the resolution.
  The previous question was ordered.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.
  The SPEAKER pro tempore (Mr. Ose). Pursuant to House Resolution 460 
and rule XVIII, the Chair declares the House in the Committee of the 
Whole House on the State of the Union for the consideration of the 
bill, H.R. 1776.
  The Chair designates the gentleman from Indiana (Mr. Pease) as 
Chairman of the Committee of the Whole, and requests the gentleman from 
Colorado (Mr. Hefley) to assume the chair temporarily.

                              {time}  1033


                     In the Committee of the Whole

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

[[Page 4718]]

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

                              {time}  1045

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

[[Page 4719]]

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

[[Page 4720]]

getting higher salaries because they bring skills that the global 
economy wants, these people now find themselves priced out of 
neighborhoods where they used to live.

                              {time}  1100

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

[[Page 4721]]

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

[[Page 4722]]

  Although H.R. 1776 is a good beginning, more still need to be done to 
help encourage economic investments in underserved communities. That is 
why I hope the House will pass the administration's New Markets 
initiative.
  We have in recent weeks been working and making progress and 
negotiating a bipartisan plan that merges Democratic and Republican 
ideas for helping underserved communities. Thus, I am hopeful that we 
can pass legislation in this area in the upcoming months, and deliver 
on an agreement reached between the Speaker and the President last 
November to cooperate on economic development issues.
  In closing, Mr. Chairman, H.R. 1776 is a solid piece of legislation 
that helps more people become homeowners in very innovative ways. 
Because increased ownership rates strengthen communities, I strongly 
support H.R. 1776, and encourage my colleagues to support its passage.
  Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Florida (Mr. McCollum), the vice chairman of the 
Committee on Banking and Financial Services, and thank him for his 
efforts to make sure consumers are protected, particularly with respect 
to with respect to low-income housing issues. That help has been 
invaluable.
  Mr. McCOLLUM. Mr. Chairman, I thank the gentleman for yielding time 
to me.
  I want to commend the gentleman from New York (Mr. Lazio) for all the 
work on this bill, and everybody else who participated in it. This is 
one of the finest pieces of legislation dealing with housing that I 
have seen in the years that I have been here in this Congress.
  It is simple in some respects compared to some of the complicated 
bills that have come to this floor, but it is something which does a 
good deal for a lot of people. It provides, as some have said, the 
opportunity for many more people to be able to get into a home and to 
actually own a home. I think that is the extraordinary part of this.

                              {time}  1115

  We need in America to have more homeownership. Those at the lower end 
of the spectrum of earnings should have the opportunity to feel a part 
of their community, to actually own their home. That is the beauty of 
this bill.
  As has been said, there are several groups within the municipalities 
who may be employees, the firefighters, the police officers and others, 
who are given opportunities in this bill to be first-time homeowners 
that they might not otherwise have had, by the opening up of the 
provisions that allow the use of community development block grant 
monies and so forth for that purpose.
  I think the central core of the bill is the portion of it that is 
really exciting that allows the Section 8 program of HUD to use the 
assistance that is provided now for rental assistance towards the 
purchase of a home by a down payment or a monthly mortgage payment. It 
is an extraordinary opportunity for many Americans under this 
particular section of the bill to gain their opportunities to actually 
own a home. A roof over one's head is a whole lot more than simply a 
roof. It is a part of being the community, and that is what we are all 
about.
  Also in this bill, in H.R. 1776, there are provisions concerning 
manufactured housing that I think are important. It actually extends 
the amount of performance-based standards and enhances consumer 
protections that are so important to manufactured housing. It 
encourages the viability of that which is important to my home State 
and, as the gentleman from New York (Mr. Lazio) knows, many of us have 
worked a long time to try to make these provisions viable. I thank the 
gentleman for including them in this bill.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield 3 minutes to the 
gentlewoman from Oregon (Ms. Hooley), another member of the 
subcommittee.
  Ms. HOOLEY of Oregon. Mr. Chairman, I thank the gentleman from 
Massachusetts (Mr. Frank) for yielding me this time.
  Mr. Chairman, I would also like to thank the leadership, the 
gentleman from New York (Mr. Lazio), the gentleman from Iowa (Mr. 
Leach), the gentleman from New York (Mr. LaFalce), and the gentleman 
from Massachusetts (Mr. Frank) for the hard work they did on a 
bipartisan bill that helps increase affordability in housing for all 
Americans, and it hopefully will bring a lot of Americans hopefully 
closer to that dream of homeownership.
  I just want to highlight a few provisions in the bill that I think 
will help people in my district. With the help of the gentleman from 
New York (Mr. Lazio), I was able to insert a provision that sets aside 
money for a regional, affordable housing pilot project.
  The Portland metropolitan area has provided the Nation with a model 
in successful regional planning, and despite the area's growing 
affluence and increase in overall housing production, poverty and the 
need for affordable housing has not declined. The local governments of 
the Portland metropolitan region have recognized that these problems 
cut across county lines. They believe that housing and services for 
low-income people are better addressed by regional cooperation and are 
now working together to address these issues.
  The regional affordable housing pilot project would provide funds to 
encourage localities to reach across those boundaries, to work together 
to plan for and build affordable housing.
  I also want to commend the ranking member, the gentleman from 
Massachusetts (Mr. Frank), and others for the hard work they did on 
manufactured housing. Our current laws really do not protect our 
consumers, and so what this bill does is inserts a protection for 
consumer protection for dispute resolution, so if there is a problem 
between the housing manufacturer and the installers this can go to 
dispute resolution so that the consumer is not bounced back and forth.
  I am also pleased with a provision that reflects H.R. 3884, the House 
Act, introduced by the gentleman from New York (Mr. LaFalce), myself, 
and others. This bill would give teachers, police officers, and other 
municipal employees the opportunity to get a lower down payment FHA 
loan for a home in the town or county where they work. This will help 
address a tremendous problem in my district where city employees often 
have long commutes to work because they cannot afford to live in a home 
in the town that employs them.
  Once again, I would like to congratulate the gentleman from New York 
(Mr. Lazio) and the other ranking members on bringing a bill to the 
floor that will not only break down barriers in affordable housing but 
will create new housing opportunities for millions of Americans, and I 
urge support.
  The CHAIRMAN. The Chair advises the Committee that the gentleman from 
Massachusetts (Mr. Frank) has 2\1/2\ minutes remaining, the gentleman 
in New York (Mr. Lazio) has 15 minutes remaining.
  Mr. LAZIO. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from Alabama (Mr. Riley), a member of the committee.
  Mr. RILEY. Mr. Chairman, I just want to commend the gentleman from 
New York (Mr. Lazio) and the gentleman from New York (Mr. LaFalce) for 
the hard work they have done on this.
  Mr. Chairman, I want to proclaim my support of H.R. 1776. It seems to 
me that the least my colleagues and I can do is help those who serve 
our community and to help ease the financial burden they have in 
purchasing a home. I personally know how hard that can be and that is 
why, Mr. Chairman, it is high time that we here in Washington reach out 
to those people to whom we owe so much.
  Who amongst us has not had a teacher that we remember or taken for 
granted the protection and security provided by police officers and 
firefighters. Heroism must be recognized and rewarded.
  To my way of thinking, this is a means to say thank you to those who 
sacrifice so much for our protection and care. This bill would do just 
that, Mr. Chairman. It would reward America's heroes. I encourage my 
colleagues

[[Page 4723]]

in the House to support this fine bipartisan legislation.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield our remaining 2\1/
2\ minutes to the gentleman from North Carolina (Mr. Price).
  Mr. PRICE of North Carolina. Mr. Chairman, I rise in support of H.R. 
1776, a bipartisan bill reauthorizing and improving programs that build 
our communities and that make housing more accessible and affordable to 
our citizens.
  Mr. Chairman, I represent a district in North Carolina that, in most 
respects, is an economic success story, with a lively market in rental 
housing and in home building and sales. But we are in danger of pricing 
people upon whom our community depends out of that housing market.
  For example, to afford a two-bedroom apartment, a person making the 
minimum wage in my district would have to work 96 hours a week. Working 
a 40-hour week for that same two-bedroom apartment, that person would 
have to make $12.40 an hour. And even with homeownership at 
historically high levels, the American dream is still out of reach for 
far too many people.
  H.R. 1776 will help. It will make it easier for teachers and police 
officers and firefighters to buy homes in neighborhoods that need 
leaders as they rebuild. It will increase the ability of senior 
citizens to use reverse mortgages, a program I helped initiate a few 
years ago, to stay in their homes and to drawdown their equity for 
living expenses.
  It will expand Section 8 assistance to permit families with disabled 
persons to purchase a home. It will establish workable construction, 
safety, installation, and dispute resolution standards for manufactured 
housing.
  In these and many other respects, this bill will improve housing, 
will improve housing policy, and will improve the quality of life for 
thousands of Americans. I urge my colleagues to support this bill.
  Mr. LAZIO. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Nebraska (Mr. Bereuter), who has been of incredible help 
on many parts of this homeownership bill and other housing initiatives, 
particularly as they affect rural America.
  Mr. BEREUTER. Mr. Chairman, I want to thank the gentleman from New 
York (Mr. Lazio) for his kind remarks and thank him and the chairman of 
the full committee for bringing and expediting this legislation and 
similarly express appreciation to their Democrat counterparts.
  Of course, housing is one of the most important investments that 
Americans make. Homeownership gives an individual or family a sense of 
pride in themselves, their home, as well as in their community. It is 
one of the reasons why this bill, H.R. 1776, is so important and I rise 
in support of it.
  I would like to focus on four general provisions of this legislation 
which promote homeownership. First of all, the legislation goes to 
great lengths to promote homeownership for Americans across the entire 
country. First, families can use their Federal rental vouchers for 
mortgage payments.
  Two, mayors and local governing officials can be given increased 
flexibility to use the Community Development Block Grant program and 
HOME Federal housing block grant funds for homeownership assistance.
  Three, a HOME loan guarantee program is created to allow communities 
to tap into future HOME grants for affordable housing developments.
  Four, all Federal agencies are required to include a housing impact 
analysis to ensure that proposed regulations do not have a negative 
impact on affordable housing.
  Furthermore, I would like to focus on four specific provisions with 
which this Member was involved. First, H.R. 1776 extends the 
grandfather status until the 2010 census for similarly situated cities 
nationwide like Norfolk, Nebraska, to continue to be able to use the 
USDA Rural Housing Service programs.
  Second, the American Homeownership and Economic Opportunity Act also 
includes a permanent authorization for Section 184, the Native American 
Home Loan Guarantee program, which this Member authored with the help 
of many of my colleagues. Under current law, the Section 184 program is 
authorized only through 2001.
  Third, a provision is included in this legislation which would create 
the Indian Lands Title Report Commission, with a sunset, to improve the 
procedure by which the Bureau of Indian Affairs conducts title reviews 
in connection with the status of Indian lands. This provision is 
identical to a bill this Member introduced previously in this Congress. 
Moreover, the Commission should facilitate the use of Section 184 
program to benefit additional Native Americans in purchasing homes on 
Indian reservations. This is the only program that effectively permits 
Indians who live on reservations to actually purchase a home or, more 
likely, to build a home.
  Fourth and lastly, this Member is pleased that as a matter of equity 
the manager's amendment includes a provision which I support. It 
extends Native American housing assistance programs to native 
Hawaiians. In particular, the manager's amendment applies the Section 
184 loan guarantee program to the unique legal status of Hawaiian 
homelands.
  Mr. Chairman, for these and many other reasons, I urge support of the 
legislation and thank my colleagues, particularly the gentleman from 
New York (Mr. Lazio), for his exceptional work.
  Mr. LAZIO. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from California (Mr. Royce). Again I want to thank him for 
his helping in bringing about a compromise among consumers, the 
industry, and administration with regard to manufactured housing.
  Mr. ROYCE. Mr. Chairman, I rise today in strong support of title II 
of H.R. 1776, and specifically this title II contains H.R. 710 and that 
is the Manufactured Housing Improvement Act of which I am a cosponsor.
  Manufactured housing represents more than 20 percent of all new 
single family homes sold in the United States. It is the fastest 
growing segment of our housing industry and despite the significant 
growth of that industry, the Federal manufactured housing program has 
not been considered a mainstream regulatory activity within HUD. As a 
consequence, it suffers from an outdated regulatory structure that 
hinders both producers and it hinders consumers. The Manufactured 
Housing Improvement Act addresses this problem by establishing a 
private sector consensus committee to make recommendations to the HUD 
Secretary for updating standards and regulations. This committee will 
be self-funded with the costs covered by label fees that the industry 
must pay on each home. This provision is long overdue, Mr. Chairman. I 
urge my colleagues to support it.
  Mr. LAZIO. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman 
from Maryland (Mrs. Morella).
  Mrs. MORELLA. Mr. Chairman, I rise in support of H.R. 1776, and I 
want to thank the gentleman from Iowa (Mr. Leach), the gentleman from 
New York (Mr. LaFalce), the gentleman from Massachusetts (Mr. Frank), 
and especially the gentleman from New York (Mr. Lazio) for their hard 
work on this legislation and their dedication to helping all families 
achieve the American dream.
  The Homeownership and Economic Opportunity Act will help low-income 
families in the cycle of paying rent rather than a mortgage. One-third 
of American families make under $25,000 a year, putting homeownership 
out of reach for nearly 100 million Americans.
  Increased flexibility to States within existing Federal programs will 
empower partnerships between public and private sectors and strengthen 
community-based nonprofit groups. In reducing regulatory barriers and 
granting local housing authorities more flexibility in promoting 
homeownership as this bill does will give families an alternative to 
paying rent. Homeownership creates equity for families and makes future 
investments possible.
  Additionally, the impact of these regulations is clear when one 
considers that the cost of a $200,000 home could be cut by 14 percent, 
or $28,000, by

[[Page 4724]]

streamlining the process governing land construction and land 
development.
  I also commend the authors of H.R. 1776 for including provisions that 
enable teachers, firefighters, and police to live in the communities 
where they work. Encouraging these individuals to purchase homes can 
only strengthen communities. As a cosponsor of the American 
Homeownership and Economic Opportunity Act, I urge all my colleagues to 
vote for this bill.
  Mr. LAZIO. Mr. Chairman, I yield 3 minutes to the distinguished 
gentlewoman from New Jersey (Mrs. Roukema), a great champion of 
homeowners across America.

                              {time}  1130

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

[[Page 4725]]

  For example, mayors and community officials are given flexibility 
when targeting teachers and law enforcement officials, fire fighters 
for homeownership opportunities, including down payment assistance. It 
allows 1 percent down payments for FHA-insured home loan mortgages to 
help increase that social capital and provide incentives for people in 
the community as for teachers and police officers and fire fighters 
living in high-crime areas.
  The bill modernizes HUD's regulatory regime overseeing the 
manufactured housing industry, which is an increasingly lower-cost 
alternatives for many Americans for affordability. The proposal allows 
greater use of low-income rent subsidies for locally created 
homeownership perhaps.
  So instead of living in a basement apartment, instead of having one's 
whole family huddled in a basement apartment, we are going to be able 
to use the section 8 program to actually bring the promise of 
homeownership to lower-income Americans.
  Mr. Chairman, I am also proud, particularly proud of the provisions 
of the bill that attack the blight of vacant HUD-foreclosed homes and 
neighborhoods across the country. HUD's inventory of foreclosed 
properties total almost 50,000 homes, and thousands fall into the 
inventory every month. These vacant properties, the subject of 
``Fleecing of America,'' the site of violent criminal and drug-related 
activity, the cause of decreasing property values in neighborhoods 
across the country is a national disgrace. These properties are taken 
over by drug dealers, properties that children are raped in and 
teenagers are killed in.
  Every single thing we can do to ensure that these properties remain 
in HUD's inventory for the shortest period of time possible will mean 
safer neighborhoods, safer streets, and safer families.
  Mr. Chairman, I urge this body to embrace this bill.
  Ms. HOOLEY of Oregon. Mr. Chairman, I would like to comment upon one 
aspect of the changes to the manufactured housing language within H.R. 
1776--and that is the composition of the Consensus Committee. First, 
let me say that I applaud the diligence of all those who contributed to 
the final provisions of title XI of H.R. 1776--both my colleagues on 
the Banking Committee and those in the private sector. I believe it is 
a product of which we should all be extremely proud.
  In the midst of modifications to the language, however, there was one 
change which I feel warrants brief comment during today's floor 
discussion. One result of the discussions which transpired over the 
last several months in order to reach the final version of Title XI, 
has been to change the makeup of the Consensus Committee so that it is 
in compliance with the American National Standards institute (ANSI) 
guidelines. Specifically, the formerly five subgroups of the Consensus 
Committee have been streamlined to three, with seven members serving on 
each.
  Mr. Chairman, as you know, it is important that the consensus 
committee is comprised of a balance of consumers, industry experts, and 
government officials who will advise HUD on safety standards and 
regulation enforcement. I am aware that consumer groups felt they had 
been underrepresented in the ``Users'' category. In the process of 
increasing their representation in the ``Users'' category, however, 
others--such as the home builders--fell out of the ``General Interest'' 
category. This industry's presence in this category in no way 
undermines the additional representation of the consumer groups. In 
fact, I believe they are a critical component of the consensus 
committee and that such industry members should be members.
  Mr. CALVERT. Mr. Chairman, I rise in support of H.R. 1776, the 
American Homeownership and Economic Opportunity Act of 2000. This is an 
important housing measure being debated before us today. My personal 
background in the real estate industry, I believe, has given me an 
insider's perspective on this issue and I am confident that this bill 
will significantly increase the affordability and accessibility of 
housing.
  I understand the importance of affordable family housing to the 
American dream. Every American family should be given the ability to 
purchase and own a safe, well built home. I don't think anybody in the 
chamber would disagree that homeownership is a fundamental component of 
the American dream.
  H.R. 1776 will make that American dream a reality for thousands of 
families.
  One issue of great importance to my constituents in southern 
California, and others throughout the nation, is that alternative 
affordable housing be made available. An excellent example of just that 
has been manufactured housing. These factory-built homes are every bit 
as reliable as site-built homes, and are becoming increasingly the 
choice of many Americans.
  As cochair of the Manufactured Housing Caucus, I am happy to see the 
provisions in this bill that seek to update and improve the housing 
regulations applied to manufactured homes. Particularly, the creation 
of a consensus committee--comprised of consumers, manufacturers and 
other housing industry partners--to make sure that the concerns of all 
parties are addressed. H.R. 1776 will improve the installation 
standards that protect consumers and provide a dispute resolution 
program for consumers at no cost.
  Mr. Chairman, these new regulations allow the manufactured housing 
industry to compete fairly and continue to grow. I urge my colleagues 
to support H.R. 1776 and homeownership.
  Mr. FORBES. Mr. Chairman, as the newest Member of the House Committee 
on Banking and Financial Services, I am very happy that the House is 
now considering this important legislation, ``American Homeownership 
and Economic Opportunity Act'' (H.R. 1776).
  Homeownership is a pivotal building block for family security, 
stability, and strong communities. All families deserve the opportunity 
to achieve the American dream of owning a home.
  Like other areas around our country, Suffolk County, NY, is plagued 
with high property taxes and very expensive real estate prices. 
According to a study by the National Low Income Housing Coalition, 
housing costs in Long Island are the fourth highest in the country, 
with only San Francisco, CA, San Jose, CA, and Stamford, CT, higher.
  In order to be able to afford the average two-bedroom apartment on 
Long Island, family needs to have an average household income of 
$45,000 per year--which just happens to be Long Island average 
household income.
  Buying a home is an even greater challenge--even for middle-income 
families. With such high rental costs, high utility costs, and high 
taxes, the ability of an average family to also save for a down payment 
is almost impossible.
  Because of these exorbitant costs, young families, senior citizens 
and our teachers, police officers, firefighters, and municipal civil 
servants can barely afford to live on Long Island.
  Provisions in this bill will help my neighbors in Long Island, who 
work so hard just to make ends meet, finally buy their first home.
  For example, this bill amends HUD program formulas so that they are 
based on local area, median incomes, not on the national median income. 
Tying the eligibility to the local median income is particularly 
important on Long Island to enable homeownership.
  I am also proud that the HOUSE act (H.R. 3884), of which I am an 
original cosponsor with Mr. LaFalce, has been included into this bill. 
The HOUSE act provides lower down payments and assistance with closing 
costs to qualified K-12 teachers, policemen, and firemen. This new 
program will assist some of our most honored citizens in becoming 
homeowners.
  Overall, in addition to helping those most in need in our 
communities, this catchall bill will help moderate- and lower-income 
families in Long Island, and around the country, to purchase homes. Mr. 
Chairman, I am proud of this bill and urge its swift passage.
  Mr. LARSON. Mr. Chairman, I rise today in support of the bill we have 
before the House today, which seeks to broaden the path to 
homeownership for our Nation's citizens and help foster the development 
of healthy, economically vibrant neighborhoods.
  The American Homeownership and Economic Opportunity Act of 2000 
encourages the removal of unnecessary regulatory barriers that hinder 
the production of affordable housing and drive up the costs of 
homeownership.
  I became a proud co-sponsor of this bill last year, and I am very 
pleased that through the steady leadership of the gentleman from Iowa, 
Mr. Leach, the gentleman from New York, Mr. LaFalce, the other 
gentleman from New York, Mr. Lazio, and the gentleman from 
Massachusetts, Mr. Frank, we were able to come together to bring this 
important bipartisan legislation before the House today. I also want to 
express my appreciation for the efforts of the gentleman from 
Massachusetts, my good friend Mr. Capuano, who I know has worked very 
diligently on the Banking and Financial Services Committee to support 
this bill.
  Currently, about 70 million Americans own their own homes. However, 
in households with annual incomes under $25,000, which is about one-
third of total households in this country.

[[Page 4726]]

Americans incur increasing hardships when buying their own homes and 
generally cannot afford the monthly mortgage payments. This is 
particularly true in African-American and Hispanic communities where 
the ownership rates are even lower.
  This bill will help communities create homeownership programs 
tailored to their needs, and would enable local governments to increase 
the impact of their funding, thereby helping more of their citizens 
achieve homeownership. Specifically, it will give localities added 
flexibility when working with Federal housing and community development 
block grant programs, in order to leverage public funds with private 
sources of capital.
  In addition, H.R. 1776 would give communities are also given the 
tools needed to encourage increased homeownership opportunities for 
working, middle class families whose occupations from the backbone of 
communities, and who are in integral components of our neighborhoods: 
teachers, police officers, firefighters, including volunteer 
firefighters who are such an essential part of many communities around 
the country, and other municipal employees. A provision in the bill 
will allow urban communities to apply for funds from the Community 
Development Block Grant (CDBG) and Home Investment Partnership (HOME) 
programs so homeownership assistance may be offered to municipal 
employees for the purchase of homes within their communities.
  Finally, H.R. 1776 modernizes the manufactured housing industry by 
giving HUD the ability to enhance its monitoring of the industry and 
its protection of consumers. The current framework for regulating the 
manufactured housing industry is severely outdated and ill suited to 
address the needs of consumers. I was particularly heartened to learn 
that the provisions included in H.R. 1776 represent a carefully crafted 
compromise between HUD, the industry, and consumers to ensure that 
manufactured housing is a viable, affordable housing resource.
  Mr. Chairman, this bill is not only about increasing homeownership 
around the country, it is also about empowering our lower income and 
minority households, rebuilding and revitalizing our communities, 
allowing our teachers to remain involved and active in the communities 
they serve, assisting police officers who are asked to remain close to 
the people they protect, and rewarding firefighters who keep our homes 
safe for ourselves and our children. Helping all Americans, especially 
those who serve the public and those with lower incomes, realize the 
dream of homeownership must be a goal for this Congress and for this 
country to achieve.
  Again, Mr. Chairman, I am pleased to have my name attached to this 
bipartisan bill as a cosponsor, and I urge all my colleagues to support 
it.
  Mr. MORAN of Virginia. Mr. Chairman, I rise today in support of H.R. 
1776, the American Homeownership and Economic Opportunity Act.
  Our nation is currently enjoying its highest homeownership rate--66.8 
percent. A significant cause of this achievement is the Balanced Budget 
Act of 1997 which has created record budget surpluses, lower interest 
and mortgage rates, seven years of robust economic growth, and record 
levels of consumer confidence.
  Although great strides have been made to encourage homeownership, we 
must do more to advance the availability of affordable housing. H.R. 
1776 reauthorizes the Community Development Block Grant and the HOME 
Investment Partnership Programs, both of which help localities provide 
affordable housing. This bill provides local governments the 
flexibility necessary to use federal funds to assist school teachers, 
police officers, firefighters and municipal employees to buy homes in 
the communities in which they work.
  I have been a strong supporter of the creation of mixed-income 
communities. I support passage of H.R. 1776 which will provide 
localities the flexibility they need to use community development block 
grant programs to leverage public funds with private sources of 
capital. Local government officials must have access to the mechanisms 
necessary to generate resources that will allow them to create 
homeownership programs tailored to the specific needs of each locality. 
Passage of this bill will only enhance existing efforts to create safe 
and affordable housing for the citizens of Virginia's 8th district.
  Other provisions of H.R. 1776 that I believe are crucial to improving 
homeownership in our country include:
  A pilot program will be established to give Public Housing 
Authorities flexibility in allowing families to use Section 8 subsidies 
toward the purchase of a home. An identical program will be created to 
assist families with one or more members who are disabled.
  Authorization of grants for ``homeownership zones,'' which are large 
scale development projects in distressed neighborhoods.
  Substantial strides have been made in providing the opportunity for 
all Americans to achieve homeownership. While more people than ever 
before own their homes, there is still much work to be done toward 
ensuring that the opportunity to share the dream is equally available 
to everyone. Passage of H.R. 1776 brings us one step closer to making 
these dreams a reality.
  Mr. UDALL of Colorado. Mr. Chairman, I rise in support of H.R. 1776, 
the American Homeownership and Economic Opportunity Act and urge its 
adoption.
  While the current homeownership rate is at a record high of 66%, the 
purchase of a first home remains out of reach for many young people and 
low- and moderate-income families. I believe H.R. 1776, through a 
number of unique programs, will enable more Americans to purchase their 
first home.
  A key provision in this bill would provide under the Community 
Development Block Grant (CDBG) and HOME Investment Partnerships 
programs, a targeted homeownership program for uniformed municipal 
employees (policemen, firemen, city maintenance workers, and teachers). 
Assistance could be in the form of downpayment assistance, help with 
closing costs, housing counseling, or subsidized mortgage rates. I 
applaud this innovative approach.
  I would like to call my colleagues' attention to a valuable pilot 
program in this bill, to encourage law enforcement agents to buy homes 
in locally designated high-crime areas by making them eligible for FHA 
mortgage loans with no downpayment.
  H.R. 1776 also authorizes HUD to distribute $25 million in 
competitive grants to local governments for homeownership programs in 
``homeownership zones''. These zones will be locally designated 
residential areas where large-scale development projects are designed 
to provide housing for low- to moderate-income families.
  In addition, this bill increases the ability of senior citizens to 
use ``reverse mortgages'' for living expenses--particularly long-term 
care--by allowing them to refinance these mortgages.
  Environmental cleanup and economic development activities related to 
``Brownfields'' stand to benefit as well, by being classified as a 
permanent eligible activity for CDBG funds under this bill.
  Mr. Chairman, H.R. 1776 will make substantial strides towards 
insuring affordable housing is a reality in our country and the dream 
of first-time homeownership is attainable. I urge my colleagues to vote 
``yes'' on this bill.
  Mrs. McCARTHY of New York. Mr. Chairman, I rise today in support of 
H.R. 1776, the American Homeownership and Economic Opportunity Act. 
This important bill increases the possibility of owning a home to many 
deserving American families, particularly in my district on Long 
Island, NY, where homeownership opportunities lag because of 
affordability concerns.
  Despite a strong economy and record percentages of Americans who own 
their own homes, Long Islanders continue to experience gaps in 
homeownership--especially among our middle-income professionals. Hard 
working professionals such as teachers, police officers, firefighters 
and corrections officers should not have to struggle to own a home.
  H.R. 1776 addresses this concern. It contains numerous provisions 
allowing deserving Long Island teachers and public employees to obtain 
mortgages with just one percent downpayment requirement through the 
Federal Housing Administration. Moreover, H.R. 1776 allows qualifying 
homebuyers to defer the payment of the upfront mortgage insurance 
premium--usually two percent of the mortgage amount. As a result of 
these beneficial provisions, qualified Long Island borrowers can expect 
to save thousands of dollars in upfront costs when they purchase a 
home.
  In addition to assisting aspiring homeowners, this legislation also 
benefits the realtors and senior citizens in my district who also 
suffer from the lack of affordable housing on Long Island.
  Housing is the foundation upon which everything else is built. In my 
district, homeownership holds many intangible benefits ranging from 
increased educational attainment for children to homeowners maintaining 
a more active interest and involvement in the communities they reside. 
H.R. 1776 contributes to these important outcomes and I urge my 
colleagues to vote in support of this measure.
  Ms. SANCHEZ. Mr. Chairman, I rise today in disappointment that my 
amendment was not made in order to H.R. 1776.
  My amendment would empower shared housing placement organizations 
with the authority to run background checks on potential shared housing 
participants.

[[Page 4727]]

  This amendment does not mandate any agency to run background checks--
they simply authorize the shared housing agencies to request FBI files 
through local and state agencies.
  And the cost of this program is fully supported by user fees, not 
federal tax dollars.
  It makes sense to bring this proposal during this debate of H.R. 
1776.
  Homeownership is said to be an important building block of strong 
families and healthy communities.
  What's astonishing and saddening to hear, is that each year, an 
estimated 1 to 2 million Americans are victims of abuse in their own 
homes, namely seniors and the disabled.
  As many people grow older, remaining in their homes should increase 
their level of comfort and security, rather than threaten their peace 
of mind.
  Many seniors seeking independence during the later years of their 
lives enter into shared housing agreements where they can remain in 
their own homes and still receive daily care.
  These arrangements are made by non-fee, home-finder referral services 
that match seniors or the disabled with others who wish to share a 
house, apartment, or mobile home at affordable rates.
  There are more than 350 referral programs throughout the country.
  Unfortunately, senior citizens and the disabled are too often 
manipulated and abused physically or financially, by their caretakers 
within the privacy of their own homes. And this abuse is on the rise.
  Currently, there is neither a national nor a statewide standard 
procedure that is available to screen shared housing participants.
  Similar laws already exist to allow for background checks of child 
care providers, school bus drivers, and security guards--but not shared 
housing applicants.
  It is now only logical to extend this provision to protect seniors in 
their own homes.
  These checks will give referral agencies the ability to protect their 
clients from abuse and threats by known criminals.
  The International Union of Police Associations and local police 
departments have endorsed this amendment.
  The FBI, Agency on Aging, and the Southern California Shared Housing 
Coalition have all endorsed the fundamental concepts behind the 
amendment, and agree that fighting elder abuse is an important cause.
  With the ever-expanding Baby Boom Generation and their growing need 
for long term care, we must begin addressing the safety of their care.
  It is essential to pass federal legislation in order to give these 
shared housing agencies access to FBI criminal background reports. I 
have worked closely with the FBI on this legislation to ensure that the 
technical language protects all privacy rights and investigative 
standards.
  The potential for abuse in shared housing arrangements is 
preventable.
  This amendment gives shared housing agencies an important tool to 
protect the elderly from scam artists and criminals, and at no cost to 
the federal government.
  This legislation is simple, yet it could save the life and fortunes 
of our elderly.
  I urge my colleagues to join me in attacking crime without spending 
taxpayer dollars.
  It is our responsibility to give the American people the tools to do 
so.
  Although we will not have the opportunity to debate this issue today, 
I look forward to working with my colleagues to address this very 
important matter.
  Mr. DOYLE. Mr. Chairman, I rise today in strong support of making it 
easier for more Americans to pursue the American dream. Owning a home 
and building a good community, in which to raise children, will become 
less difficult because of this bill.
  Neighborhoods could possibly be the most important aspect of a 
child's life. Neighborhoods dictate what quality of school the child 
attends; the amount of crime and social decay with which child comes in 
contact; and the services that are available to them in times of need. 
This bill will accomplish the very important goal of creating a 
financially vested interest in creating a good environment. Homeowners 
are aware that the value of their homes will decrease if the schools 
are not kept up. The value of their home will decrease if crime goes 
up. This bill will give the local citizens the economic incentives to 
be involved in mitigating social ills and increasing the quality of 
life.
  This bill contains a provision that will allow Section 8 rental 
assistance vouchers to be used as down payment assistance. This support 
can open the door to homeownership for many low-income citizens, and 
allows them to partake in the American dream. As we all know, being a 
home owner allows for housing tax credits and can be the only 
investment that many low-income folks make. Owning a home is a benefit 
to homeowners because they now have a significant asset. Their monthly 
rent check is now going to pay for their mortgage. The house will pay 
off in the end for them.
  H.R. 1776 will also rebuild our local neighborhoods by allowing 
teachers, police officers, and firefighters the opportunity to buy a 
home in the jurisdiction in which they work. In this time of economic 
prosperity, there is no reason why the very people who teach our 
children and serve and protect our citizens should not be able to 
afford homeownership in the town they work in. They have chosen a life 
of service and are intrinsic to the well-being of the community. Making 
it possible for them to live in the localities is good policy, because 
it gives them a reason to be involved on a personal level. It is a 
stronger motivation for them to help in the creation, the rebuilding, 
or the upkeep of the community they serve.
  I ask my colleagues to support this very important legislation that 
will bring cohesion to some disjointed communities and acknowledge the 
role that public servants can play in communities.
  Mr. ACKERMAN. Mr. Chairman, I rise today to indicate my strong 
support on behalf of H.R. 1776, The American Homeownership and Economic 
Opportunity Act. This important bill opens the prospect of 
homeownership to many deserving American families, particularly in my 
area of Northeast Queens, northern Nassau County and Northwestern 
Suffolk County, New York where homeownership opportunities have lagged 
because of affordability concerns.
  Despite a strong economy and record percentages of Americans who own 
their own homes, in my district we continue to experience gaps in 
homeownership especially among our middle-income professionals--
teachers, police officers, firefighters, and corrections officers. 
These deserving individuals have the necessary income to make their 
monthly mortgage payments but not enough cash for the downpayments 
necessary to purchase the home in the communities where they work.
  H.R. 1776 appropriately addresses this problem. The legislation 
contains important provisions that will now permit deserving Queens and 
Long Island teachers and public employees to obtain mortgages with just 
one percent downpayment requirement through the Federal Housing 
Administration. Plus, H.R. 1776 allows qualifying homebuyers to defer 
the payment of the upfront mortgage insurance premium--customarily two 
percent of the mortgage amount. As a result of these beneficial 
provisions, qualified borrowers can expect to save thousands of dollars 
in upfront costs when they purchase a home. I cannot begin to imagine 
how valuable the savings will mean for ownership in the Queens and Long 
Island areas as a result of H.R. 1776.
  Mr. Chairman, housing is the foundation on which everything else is 
built. In Queens and Long Island, homeownership holds many tangible 
benefits that range from increased educational attainment for children 
residing in an owned home to homeowners maintaining a more active 
interest and involvement in the communities in which they reside. H.R. 
1776 certainly contributes to these important positive outcomes and I 
wholeheartedly urge my colleagues to vote in support of this important 
legislation.
  Mr. SWEENEY. Mr. Chairman, I rise today in strong support of H.R. 
1776, ``The American Homeownership and Economic Opportunity Act of 
2000'' and am proud to be a cosponsor of this legislation.
  Many citizens in my district dream of owning their own home. Rising 
costs of living and increased amounts of government regulation often 
hinder the pursuit of this dream. Fulfillment of this ambition is 
sometimes unattainable without some form of assistance. H.R. 1776 
provides that required assistance.
  The bill affords lower and moderate income families the opportunity 
to buy rather than rent housing, thus allowing them to realize the 
American dream. This legislation streamlines the regulatory regime to 
make it easier for state and local officials to tailor housing for the 
needy to local requirements.
  This Act creates a HOME Loan Guarantee program to allow communities 
within my district to tap into future HOME grants for affordable 
housing development. HOME is one of the most successful Federal block 
grant programs because it creates affordable housing for low-income 
families in rural areas. The HOME program provides a flexible resource 
to States and localities to increase the supply of affordable housing, 
through both construction and rehabilitation.
  I plan to hold a Housing and Economic Development Forum in my own 
Congressional District later this month and am proud to trumpet H.R. 
1776 as a positive achievement of

[[Page 4728]]

this Congress. I will gather with developers, non-profit housing 
organizations, community bankers, state and local officials, and 
community development professionals to explore how our communities can 
best develop affordable housing and stimulate economic growth. Many of 
the programs established in The American Homeownership and Economic 
Opportunity Act will aid us in accomplishing that goal.
  The citizens of my district eagerly anticipate enactment of H.R. 1776 
and the joys of owning their own home. Investing in a home is the most 
significant equity investment for families throughout the country. We 
all know that housing needs to be more affordable and accessible for 
homeowners and H.R. 1776 provides important tools to hard working 
American families looking to achieve the dream of home ownership.
  Mr. Chairman, please join me in voting for this bill.
  Mr. DAVIS of Illinois. Mr. Chairman, I rise today in support of H.R. 
1776 and specifically Title 3. Mr. Chairman, Title 3 of the 
Homeownership and Economic Opportunity Act allows public housing 
agencies in lieu of providing monthly assistance payments on behalf of 
a family may provide a grant to be used as a contribution toward the 
down payment required to purchase a home.
  While this nation is enjoying its highest homeownership rate, for 
millions of low and moderate income families housing remains far too 
expensive, or is severely substandard. The absence of tools to make 
home ownership affordable denies many families the opportunity to 
contribute to the nation's economic and social well being. Just as 
importantly, many reports conclude that increased home ownership by 
those who traditionally have been restricted to neighborhoods with 
significant rental property or with extremely low values, can improve 
the family's educational attainment, health and may reduce residential 
segregation.
  Passage of this bill is vitally important to my district the 7th 
district of Illinois, since I represent nearly 65% of all the public 
housing in the city of Chicago. Homeownership for this population prior 
to this bill was not available to them.
  The Homeownership and Economic Opportunity Act will help my 
constituents achieve what for many families, 3 generations could not 
accomplish--homeownership. It is my view that for those individuals who 
toil and strain to do the deed and create things to make life worth 
living the opportunity of homeownership is priceless. This is an 
excellent bill and I congratulate the Chairman, Ranking member and all 
members who worked to put this bill before us today.
  Therefore, I encourage my colleagues on both sides of the aisle to 
strongly support passage of this bill.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute printed in the bill shall be considered as an original bill 
for the purpose of amendment under the 5-minute rule and shall be 
considered read.
  The text of the committee amendment in the nature of a substitute is 
as follows:

                               H.R. 1776

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

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

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

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

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

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

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

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

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

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

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

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

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

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

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

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

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

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

   TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

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

                  TITLE X--RURAL HOUSING HOMEOWNERSHIP

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

               TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

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

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) the priorities of our Nation should include expanding 
     homeownership opportunities by providing access to affordable 
     housing that is safe, clean, and healthy;

[[Page 4729]]

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

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

     SEC. 101. SHORT TITLE.

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

     SEC. 102. HOUSING IMPACT ANALYSIS.

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

     Any agency making a certification under this subsection shall 
     provide a copy of such certification and the statement 
     providing the factual basis for the certification to the 
     Secretary of Housing and Urban Development.
       (b) Exception for Certain Banking Rules.--The requirements 
     of this section shall not apply to any proposed or final rule 
     relating to--
       (1) the operations, safety, or soundness of--
       (A) federally insured depository institutions or any 
     affiliate of such an institution (as such term is defined in 
     section 2(k) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841(k));
       (B) credit unions;
       (C) the Federal home loan banks;
       (D) the enterprises (as such term is defined in section 
     1303 of the Housing and Community Development Act of 1992 (12 
     U.S.C. 4502);
       (E) a Farm Credit System institution; or
       (F) foreign banks or their branches, agencies, commercial 
     lending companies, or representative offices that operate in 
     the United States, or any affiliate of a foreign bank (as 
     such terms are defined in section 1 of the International 
     Banking Act of 1978 (12 U.S.C. 3101); or
       (2) the payments system or the protection of deposit 
     insurance funds or the Farm Credit Insurance Fund.
       (c) Statement of Proposed Rulemaking.--Whenever an agency 
     publishes general notice of proposed rulemaking for any 
     proposed rule, unless the agency has made a certification 
     under subsection (a), the agency shall--
       (1) in the notice of proposed rulemaking--
       (A) state with particularity the text of the proposed rule; 
     and
       (B) request any interested persons to submit to the agency 
     any written analyses, data, views, and arguments, and any 
     specific alternatives to the proposed rule that--
       (i) accomplish the stated objectives of the applicable 
     statutes, in a manner comparable to the proposed rule;
       (ii) result in costs to the Federal Government equal to or 
     less than the costs resulting from the proposed rule; and
       (iii) result in housing affordability greater than the 
     housing affordability resulting from the proposed rule;
       (2) provide an opportunity for interested persons to take 
     the actions specified under paragraph (1)(B) before 
     promulgation of the final rule; and
       (3) prepare and make available for public comment an 
     initial housing impact analysis in accordance with the 
     requirements of subsection (d).
       (d) Initial Housing Impact Analysis.--
       (1) Requirements.--Each initial housing impact analysis 
     shall describe the impact of the proposed rule on housing 
     affordability. The initial housing impact analysis or a 
     summary shall be published in the Federal Register at the 
     same time as, and together with, the publication of general 
     notice of proposed rulemaking for the rule. The agency shall 
     transmit a copy of the initial housing impact analysis to the 
     Secretary of Housing and Urban Development.
       (2) Monthly hud listing.--On a monthly basis, the Secretary 
     of Housing and Urban Development shall cause to be published 
     in the Federal Register, and shall make available through a 
     World Wide Web site of the Department, a listing of all 
     proposed rules for which an initial housing impact analysis 
     was prepared during the preceding month.
       (3) Contents.--Each initial housing impact analysis 
     required under this subsection shall contain--
       (A) a description of the reasons why action by the agency 
     is being considered;
       (B) a succinct statement of the objectives of, and legal 
     basis for, the proposed rule;
       (C) a description of and, where feasible, an estimate of 
     the extent to which the proposed rule would increase the cost 
     or reduce the supply of housing or land for residential 
     development; and
       (D) an identification, to the extent practicable, of all 
     relevant Federal rules which may duplicate, overlap, or 
     conflict with the proposed rule.
       (e) Proposal of Less Deleterious Alternative Rule.--
       (1) Analysis.--The agency publishing a general notice of 
     proposed rulemaking shall review any specific analyses and 
     alternatives to the proposed rule which have been submitted 
     to the agency pursuant to subsection (c)(2) to determine 
     whether any alternative to the proposed rule--
       (A) accomplishes the stated objectives of the applicable 
     statutes, in a manner comparable to the proposed rule;
       (B) results in costs to the Federal Government equal to or 
     less than the costs resulting from the proposed rule; and
       (C) results in housing affordability greater than the 
     housing affordability resulting from the proposed rule.
       (2) New notice of proposed rulemaking.--If the agency 
     determines that an alternative to the proposed rule meets the 
     requirements under subparagraphs (A) through (C) of paragraph 
     (1), unless the agency provides an explanation on the record 
     for the proposed rule as to why the alternative should not be 
     implemented, the agency shall incorporate the alternative 
     into the final rule or, at the agency's discretion, issue a 
     new proposed rule which incorporates the alternative.
       (f) Final Housing Impact Analysis.--
       (1) Requirement.--Whenever an agency promulgates a final 
     rule after publication of a general notice of proposed 
     rulemaking, unless the agency has made the certification 
     under subsection (a), the agency shall prepare a final 
     housing impact analysis.
       (2) Contents.--Each final housing impact analysis shall 
     contain--
       (A) a succinct statement of the need for, and objectives 
     of, the rule;
       (B) a summary of the significant issues raised during the 
     public comment period in response to the initial housing 
     impact analysis, a summary of the assessment of the agency of 
     such issues, and a statement of any changes made in the 
     proposed rule as a result of such comments; and
       (C) a description of and an estimate of the extent to which 
     the rule will impact housing affordability or an explanation 
     of why no such estimate is available.
       (3) Availability.--The agency shall make copies of the 
     final housing impact analysis available to members of the 
     public and shall publish in the Federal Register such 
     analysis or a summary thereof.
       (g) Avoidance of Duplicative or Unnecessary Analyses.--
       (1) Duplication.--Any Federal agency may perform the 
     analyses required by subsections (d) and (f) in conjunction 
     with or as a part of any other agenda or analysis required by 
     any other law, executive order, directive, or rule if such 
     other analysis satisfies the provisions of such subsections.
       (2) Joinder.--In order to avoid duplicative action, an 
     agency may consider a series of closely related rules as one 
     rule for the purposes of subsections (d) and (f).
       (h) Preparation of Analyses.--In complying with the 
     provisions of subsections (d) and (f), an agency may provide 
     either a quantifiable or numerical description of the effects 
     of a proposed rule or alternatives to the proposed rule, or 
     more general descriptive statements if quantification is not 
     practicable or reliable.
       (i) Effect on Other Law.--The requirements of subsections 
     (d) and (f) do not alter in any manner standards otherwise 
     applicable by law to agency action.
       (j) Procedure for Waiver or Delay of Completion.--
       (1) Initial housing impact analysis.--An agency head may 
     waive or delay the completion of some or all of the 
     requirements of subsection (d) by publishing in the Federal 
     Register, not later than the date of publication of the final 
     rule, a written finding, with reasons therefor, that the 
     final rule is being promulgated in response to an emergency 
     that makes compliance or timely compliance with the 
     provisions of subsection (a) impracticable.
       (2) Final housing impact analysis.--An agency head may not 
     waive the requirements of subsection (f). An agency head may 
     delay the completion of the requirements of subsection (f) 
     for a period of not more than 180 days after the

[[Page 4730]]

     date of publication in the Federal Register of a final rule 
     by publishing in the Federal Register, not later than such 
     date of publication, a written finding, with reasons 
     therefor, that the final rule is being promulgated in 
     response to an emergency that makes timely compliance with 
     the provisions of subsection (f) impracticable. If the agency 
     has not prepared a final housing impact analysis pursuant to 
     subsection (f) within 180 days from the date of publication 
     of the final rule, such rule shall lapse and have no force or 
     effect. Such rule shall not be repromulgated until a final 
     housing impact analysis has been completed by the agency.
       (k) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Housing affordability.--The term ``housing 
     affordability'' means the quantity of housing that is 
     affordable to families having incomes that do not exceed 150 
     percent of the median income of families in the area in which 
     the housing is located, with adjustments for smaller and 
     larger families. For purposes of this paragraph, area, median 
     family income for an area, and adjustments for family size 
     shall be determined in the same manner as such factors are 
     determined for purposes of section 3(b)(2) of the United 
     States Housing Act of 1937.
       (2) Agency.--The term ``agency'' means each authority of 
     the Government of the United States, whether or not it is 
     within or subject to review by another agency, but does not 
     include--
       (A) the Congress;
       (B) the courts of the United States;
       (C) the governments of the territories or possessions of 
     the United States;
       (D) the government of the District of Columbia;
       (E) agencies composed of representatives of the parties or 
     of representatives of organizations of the parties to the 
     disputes determined by them;
       (F) courts-martial and military commissions;
       (G) military authority exercised in the field in time of 
     war or in occupied territory; or
       (H) functions conferred by--
       (i) sections 1738, 1739, 1743, and 1744 of title 12, United 
     States Code;
       (ii) chapter 2 of title 41, United States Code;
       (iii) subchapter II of chapter 471 of title 49, United 
     States Code; or
       (iv) sections 1884, 1891-1902, and former section 
     1641(b)(2), of title 50, appendix, United States Code.
       (3) Families.--The term ``families'' has the meaning given 
     such term in section 3 of the United States Housing Act of 
     1937.
       (4) Rule.--The term ``rule'' means any rule for which the 
     agency publishes a general notice of proposed rulemaking 
     pursuant to section 553(b) of title 5, United States Code, or 
     any other law, including any rule of general applicability 
     governing grants by an agency to State and local governments 
     for which the agency provides an opportunity for notice and 
     public comment; except that such term does not include a rule 
     of particular applicability relating to rates, wages, 
     corporate or financial structures or reorganizations thereof, 
     prices, facilities, appliances, services, or allowances 
     therefor or to valuations, costs or accounting, or practices 
     relating to such rates, wages, structures, prices, 
     appliances, services, or allowances.
       (5) Significant.--The term ``significant'' means increasing 
     consumers' cost of housing by more than $100,000,000 per 
     year.
       (l) Development.--Not later than 1 year after the date of 
     the enactment of this title, the Secretary of Housing and 
     Urban Development shall develop model initial and final 
     housing impact analyses under this section and shall cause 
     such model analyses to be published in the Federal Register. 
     The model analyses shall define the primary elements of a 
     housing impact analysis to instruct other agencies on how to 
     carry out and develop the analyses required under subsections 
     (a) and (d).
       (m) Judicial Review.--
       (1) Determination by agency.--Except as otherwise provided 
     in paragraph (2), any determination by an agency concerning 
     the applicability of any of the provisions of this title to 
     any action of the agency shall not be subject to judicial 
     review.
       (2) Other actions by agency.--Any housing impact analysis 
     prepared under subsection (d) or (f) and the compliance or 
     noncompliance of the agency with the provisions of this title 
     shall not be subject to judicial review. When an action for 
     judicial review of a rule is instituted, any housing impact 
     analysis for such rule shall constitute part of the whole 
     record of agency action in connection with the review.
       (3) Exception.--Nothing in this subsection bars judicial 
     review of any other impact statement or similar analysis 
     required by any other law if judicial review of such 
     statement or analysis is otherwise provided by law.

     SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.

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

     SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT BLOCK GRANTS.

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

     SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

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

[[Page 4731]]

     Housing and Urban Development may comply with the 
     requirements under this section by reestablishing the 
     clearinghouse that was originally established to comply with 
     this section and updating and improving such clearinghouse to 
     the extent necessary to comply with the requirements of this 
     section as in effect pursuant to the enactment of such 
     Act.''.

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

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

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

     SEC. 202. DOWNPAYMENT SIMPLIFICATION.

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

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

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

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

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

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

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

     SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN PROGRAM.

       (a) In General.--Section 203(k) of the National Housing Act 
     (12 U.S.C. 1709(k)) is amended by adding at the end the 
     following new paragraph:
       ``(7) Prevention of fraud.--To prevent fraud under the 
     program for loan insurance authorized under this subsection, 
     the Secretary shall, by regulation, take the following 
     actions:
       ``(A) Prohibition of identity of interest.--The Secretary 
     shall prohibit any identity-of-interest, as such term is 
     defined by the Secretary, between any of the following 
     parties involved in a loan insured under this subsection: the 
     borrower (including, in the case of a borrower that is a 
     nonprofit organization, any member of the board of directors 
     or the staff of the organization), the lender, any 
     consultant, any real estate agent, any property inspector, 
     and any appraiser. Nothing in this subparagraph may be 
     construed to prohibit or restrict, or authorize the Secretary 
     to prohibit or restrict, the functioning of a affiliated 
     business arrangement that complies with the requirements 
     under section 8(c)(4) of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2607(c)(4)).
       ``(B) Nonprofit participation.--The Secretary shall 
     establish minimum standards for a nonprofit organization to 
     participate in the program, which shall include--
       ``(i) requiring such an organization to disclose to the 
     Secretary its taxpayer identification number and evidence 
     sufficient to indicate that the organization is an 
     organization described in section 501(c) of the Internal 
     Revenue Code of 1986 that is exempt from taxation under 
     subtitle A of such Code;
       ``(ii) requiring that the board of directors of such an 
     organization be comprised only of individuals who do not 
     receive any compensation or other thing of value by reason of 
     their service on the board and who have no personal financial 
     interest in the rehabilitation project of the organization 
     that is financed with the loan insured under this subsection;
       ``(iii) requiring such an organization to submit to the 
     Secretary financial statements of the organization for the 
     most recent 2 years, which have been prepared by a party that 
     is unaffiliated with the organization and is qualified to 
     prepare financial statements;
       ``(iv) limiting to 10 the number of loans that are insured 
     under this subsection, made to any single such organization, 
     and, at any one time, have an outstanding balance of 
     principal or interest, except that the Secretary may increase 
     such numerical limitation on a case-by-case basis for good 
     cause shown; and
       ``(v) requiring such an organization to have been certified 
     by the Secretary as meeting the requirements under this 
     subsection and otherwise eligible to participate in the 
     program not more than 2 years before obtaining a loan insured 
     under this section.
       ``(C) Completion of work.--The Secretary shall prohibit any 
     lender making a loan insured under this subsection from 
     disbursing the final payment of loan proceeds unless the 
     lender has received affirmation, from the borrower under the 
     loan, both in writing and pursuant to an interview in person 
     or over the telephone, that the rehabilitation activities 
     financed by the loan have been satisfactorily completed.
       ``(D) Consultant standards.--The Secretary shall require 
     that any consultant, as such term is defined by the 
     Secretary, who is involved in a home inspection, site visit, 
     or preparation of bids with respect to any loan insured under 
     this section shall meet such standards established by the 
     Secretary to ensure accurate inspections and preparation of 
     bids.
       ``(E) Contractor qualification.--The Secretary shall 
     require, in the case of any loan that is insured under this 
     subsection and involves rehabilitation with a cost of $25,000 
     or more, that the contractor or other person performing or 
     supervising the rehabilitation activities financed by the 
     loan shall--

[[Page 4732]]

       ``(i) be certified by a nationally recognized organization 
     as meeting industry standards for quality of workmanship, 
     training, and continuing education, including financial 
     management;
       ``(ii) be licensed to conduct such activities by the State 
     or unit of general local government in which the 
     rehabilitation activities are being completed; or
       ``(iii) be bonded or provide such equivalent protection, as 
     the Secretary may require.''.
       (b) Report on Activity of Nonprofit Organizations Under 
     Program.--Not later than 60 days after the date of the 
     enactment of this Act, the Secretary of Housing and Urban 
     Development shall submit a report to the Congress regarding 
     the participation of nonprofit organizations under the 
     rehabilitation loan program under section 203(k) of the 
     National Housing Act (12 U.S.C. 1709(k)). The report shall--
       (1) determine and describe the extent of participation in 
     the program by such organizations;
       (2) identify and compare the default and claim rates for 
     loans made under the program to nonprofit organizations and 
     to owner-occupier participants;
       (3) analyze the impact, on such organizations and the 
     program, of prohibiting such organizations from participating 
     in the program; and
       (4) identify other opportunities for such organizations to 
     acquire financing or credit enhancement for rehabilitation 
     activities.
       (c) Regulations.--The Secretary of Housing and Urban 
     Development shall issue final regulations and any other 
     administrative orders or notices necessary to carry out the 
     provisions of this section and the amendments made by this 
     section not later than 120 days after the date of the 
     enactment of this Act.

     SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Neighborhood Teachers Act''.
       (b) Congressional Findings.--The Congress finds that--
       (1) teachers are an integral part of our communities;
       (2) other than families, teachers are often the most 
     important mentors to children, providing them with the values 
     and skills for self-fulfillment in adult life; and
       (3) the Neighborhood Teachers Act recognizes the value 
     teachers bring to community and family life and is designed 
     to encourage and reward teachers that serve in our most needy 
     communities.
       (c) Discount and Downpayment Assistance for Teachers.--
     Section 204(h) of the National Housing Act (12 U.S.C. 
     1710(h)) is amended--
       (1) by redesignating paragraphs (7) through (10) as 
     paragraphs (8) through (11), respectively; and
       (2) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) 50 percent discount for teachers purchasing 
     properties that are eligible assets.--
       ``(A) Discount.--A property that is an eligible asset and 
     is sold, during fiscal years 2000 through 2004, to a teacher 
     for use in accordance with subparagraph (B) shall be sold at 
     a price that is equal to 50 percent of the appraised value of 
     the eligible property (as determined in accordance with 
     paragraph (6)(B)). In the case of a property eligible for 
     both a discount under this paragraph and a discount under 
     paragraph (6), the discount under paragraph (6) shall not 
     apply.
       ``(B) Primary residence.--An eligible property sold 
     pursuant to a discount under this paragraph shall be used, 
     for not less than the 3-year period beginning upon such sale, 
     as the primary residence of a teacher.
       ``(C) Sale methods.--The Secretary may sell an eligible 
     property pursuant to a discount under this paragraph--
       ``(i) to a unit of general local government or nonprofit 
     organization (pursuant to paragraph (4) or otherwise), for 
     resale or transfer to a teacher; or
       ``(ii) directly to a purchaser who is a teacher.
       ``(D) Resale.--In the case of any purchase by a unit of 
     general local government or nonprofit organization of an 
     eligible property sold at a discounted price under this 
     paragraph, the sale agreement under paragraph (8) shall--
       ``(i) require the purchasing unit of general local 
     government or nonprofit organization to provide the full 
     benefit of the discount to the teacher obtaining the 
     property; and
       ``(ii) in the case of a purchase involving multiple 
     eligible assets, any of which is such an eligible property, 
     designate the specific eligible property or properties to be 
     subject to the requirements of subparagraph (B).
       ``(E) Mortgage downpayment assistance.--If a teacher 
     purchases an eligible property pursuant to a discounted sale 
     price under this paragraph and finances such purchase through 
     a mortgage insured under this title, notwithstanding any 
     provision of section 203 the downpayment on such mortgage 
     shall be $100.
       ``(F) Prevention of undue profit.--The Secretary shall 
     issue regulations to prevent undue profit from the resale of 
     eligible properties in violation of the requirement under 
     subparagraph (B).
       ``(G) Awareness program.--From funds made available for 
     salaries and expenses for the Office of Policy Support of the 
     Department of Housing and Urban Development, each field 
     office of the Department shall make available to elementary 
     schools and secondary schools within the jurisdiction of the 
     field office and to the public--
       ``(i) a list of eligible properties located within the 
     jurisdiction of the field office that are available for 
     purchase by teachers under this paragraph; and
       ``(ii) other information designed to make such teachers and 
     the public aware of the discount and downpayment assistance 
     available under this paragraph.
       ``(H) Definitions.--For the purposes of this paragraph, the 
     following definitions shall apply:
       ``(i) The terms `elementary school' and `secondary school' 
     have the meanings given such terms in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801), except that, for purposes of this paragraph, 
     elementary education (as used in such section) shall include 
     pre-Kindergarten education.
       ``(ii) The term `eligible property' means an eligible asset 
     described in paragraph (2)(A) of this subsection.
       ``(iii) The term `teacher' means an individual who is 
     employed on a full-time basis, in an elementary or secondary 
     school, as a State-certified classroom teacher or 
     administrator.''.
       (d) Conforming Amendments.--Section 204(h) of the National 
     Housing Act (12 U.S.C. 1710(h)) is amended--
       (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
     and inserting ``paragraph (8)'';
       (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' 
     and inserting ``paragraph (8)''; and
       (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
     inserting ``paragraph (9)''.
       (e) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall issue 
     regulations to implement the amendments made by this section.

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

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


                    ``risk-sharing demonstration'';

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

     SEC. 207. HYBRID ARMS.

       (a) In General.--Section 251 of the National Housing Act 
     (12 U.S.C. 1715z-16) is amended--
       (1) in subsection (a), by inserting ``In General.--'' after 
     ``(a)'';
       (2) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Disclosure.--In the case of any loan application for 
     a mortgage to be insured under any provision of this section, 
     the Secretary shall require that the prospective mortgagee 
     for the mortgage shall, at the time of loan application, make 
     available to the prospective mortgagor a written explanation 
     of the features of an adjustable rate mortgage consistent 
     with the disclosure requirements applicable to variable rate 
     mortgages secured by a principal dwelling under the Truth in 
     Lending Act (15 U.S.C. 1601 et seq.).'';

[[Page 4733]]

       (3) in subsection (c), by inserting ``Limitation on 
     Insurance Authority.--'' after ``(c)''; and
       (4) by adding at the end the following new subsection:
       ``(d) Hybrid ARMs.--The Secretary may insure under this 
     subsection a mortgage that--
       ``(1) has an effective rate of interest that shall be--
       ``(A) fixed for a period of not less than the first 3 years 
     of the mortgage term;
       ``(B) initially adjusted by the mortgagee upon the 
     expiration of such period and annually thereafter; and
       ``(C) in the case of the initial interest rate adjustment, 
     shall be subject to the limitation under clause (2) of the 
     last sentence of subsection (a) (relating to prohibiting 
     annual increases of more than 1 percent) only if the interest 
     rate remains fixed for 5 or fewer years; and
       ``(2) otherwise meets the requirements for insurance under 
     subsection (a) that are not inconsistent with the 
     requirements under paragraph (1) of this subsection.''.
       (b) Implementation.--The Secretary of Housing and Urban 
     Development may implement section 251(d) of the National 
     Housing Act (12 U.S.C. 1715z-16(d)), as added by subsection 
     (a) of this section, in advance of rulemaking.

     SEC. 208. HOME EQUITY CONVERSION MORTGAGES.

       (a) Insurance for Mortgages to Refinance Existing HECMs.--
       (1) In General.--Section 255 of the National Housing Act 
     (12 U.S.C. 1715z-20) is amended--
       (A) by redesignating subsection (k) as subsection (m); and
       (B) by inserting after subsection (j) the following new 
     subsection:
       ``(k) Insurance Authority for Refinancings.--
       ``(1) In general.--The Secretary may, upon application by a 
     mortgagee, insure under this subsection any mortgage given to 
     refinance an existing home equity conversion mortgage insured 
     under this section.
       ``(2) Anti-churning disclosure.--The Secretary shall, by 
     regulation, require that the mortgagee of a mortgage insured 
     under this subsection, provide to the mortgagor, within an 
     appropriate time period and in a manner established in such 
     regulations, a good faith estimate of: (A) the total cost of 
     the refinancing; and (B) the increase in the mortgagor's 
     principal limit as measured by the estimated initial 
     principal limit on the mortgage to be insured under this 
     subsection less the current principal limit on the home 
     equity conversion mortgage that is being refinanced and 
     insured under this subsection.
       ``(3) Waiver of counseling requirement.--The mortgagor 
     under a mortgage insured under this subsection may waive the 
     applicability, with respect to such mortgage, of the 
     requirements under subsection (d)(2)(B) (relating to third 
     party counseling), but only if--
       ``(A) the mortgagor has received the disclosure required 
     under paragraph (2);
       ``(B) the increase in the principal limit described in 
     paragraph (2) exceeds the amount of the total cost of 
     refinancing (as described in such paragraph) by an amount to 
     be determined by the Secretary; and
       ``(C) the time between the closing of the original home 
     equity conversion mortgage that is refinanced through the 
     mortgage insured under this subsection and the application 
     for a refinancing mortgage insured under this subsection does 
     not exceed 5 years.
       ``(4) Credit for premiums paid.--Notwithstanding section 
     203(c)(2)(A), the Secretary may reduce the amount of the 
     single premium payment otherwise collected under such section 
     at the time of the insurance of a mortgage refinanced and 
     insured under this subsection. The amount of the single 
     premium for mortgages refinanced under this subsection shall 
     be determined by the Secretary based on the actuarial study 
     required under paragraph (5).
       ``(5) Actuarial study.--Not later than 180 days after the 
     date of the enactment of the American Homeownership and 
     Economic Opportunity Act of 2000, the Secretary shall conduct 
     an actuarial analysis to determine the adequacy of the 
     insurance premiums collected under the program under this 
     subsection with respect to--
       ``(A) a reduction in the single premium payment collected 
     at the time of the insurance of a mortgage refinanced and 
     insured under this subsection;
       ``(B) the establishment of a single national limit on the 
     benefits of insurance under subsection (g) (relating to 
     limitation on insurance authority); and
       ``(C) the combined effect of reduced insurance premiums and 
     a single national limitation on insurance authority.
       ``(6) Fees.--The Secretary may establish a limit on the 
     origination fee that may be charged to a mortgagor under a 
     mortgage insured under this subsection, except that such 
     limitation shall provide that the origination fee may be 
     fully financed with the mortgage and shall include any fees 
     paid to correspondent mortgagees approved by the Secretary. 
     The Secretary shall prohibit the charging of any broker fees 
     in connection with mortgages insured under this 
     subsection.''.
       (2) Regulations.--The Secretary shall issue any final 
     regulations necessary to implement the amendments made by 
     paragraph (1) of this subsection, which shall take effect not 
     later than the expiration of the 180-day period beginning on 
     the date of the enactment of this Act. The regulations shall 
     be issued after notice and opportunity for public comment in 
     accordance with the procedure under section 553 of title 5, 
     United States Code, applicable to substantive rules 
     (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
     such section).
       (b) Housing Cooperatives.--Section 255(b) of the National 
     Housing Act (12 U.S.C. 1715z-20(b)) is amended--
       (1) in paragraph (2), by striking `` `mortgage',''; and
       (2) by adding at the end the following new paragraphs:
       ``(4) Mortgage.--The term `mortgage' means a first mortgage 
     or first lien on real estate, in fee simple, on all stock 
     allocated to a dwelling in a residential cooperative housing 
     corporation, or on a leasehold--
       ``(A) under a lease for not less than 99 years that is 
     renewable; or
       ``(B) under a lease having a period of not less than 10 
     years to run beyond the maturity date of the mortgage.
       ``(5) First mortgage.--The term `first mortgage' means such 
     classes of first liens as are commonly given to secure 
     advances on, or the unpaid purchase price of, real estate or 
     all stock allocated to a dwelling unit in a residential 
     cooperative housing corporation, under the laws of the State 
     in which the real estate or dwelling unit is located, 
     together with the credit instruments, if any, secured 
     thereby.''.
       (c) Waiver of Up-Front Premiums for Mortgages Used for 
     Costs of Long-Term Care Insurance or Health Care.--Section 
     255 of the National Housing Act (12 U.S.C. 1715z-20) is 
     amended by inserting after subsection (k) (as added by 
     subsection (a) of this section) the following new subsection:
       ``(l) Waiver of Up-Front Premiums.--
       ``(1) Mortgages to fund long-term care insurance.--In the 
     case of any mortgage insured under this section under which 
     the total amount (except as provided in paragraph (3)) of all 
     future payments described in subsection (b)(3) will be used 
     only for costs of a qualified long-term care insurance 
     contract (as such term is defined in section 7702B of the 
     Internal Revenue Code of 1986 (26 U.S.C. 7702B)) that covers 
     the mortgagor or members of the household residing in the 
     property that is subject to the mortgage, notwithstanding 
     section 203(c)(2), the Secretary shall not charge or collect 
     the single premium payment otherwise required under 
     subparagraph (A) of such section to be paid at the time of 
     insurance.
       ``(2) Mortgages to fund health care costs.--In the case of 
     any mortgage insured under this section under which the 
     future payments described in subsection (b)(3) will be used 
     only for costs for health care services (as such term is 
     defined by the Secretary) for the mortgagor or members of the 
     household residing in the property that is subject to the 
     mortgage and comply with limitations on such payments, as 
     shall be established by the Secretary and based upon the 
     purposes of this subsection and the accumulated equity of the 
     mortgagor in the property, notwithstanding section 203(c)(2), 
     the Secretary shall not charge or collect the single premium 
     payment otherwise required under subparagraph (A) of such 
     section to be paid at the time of insurance.
       ``(3) Authority to refinance existing mortgage and finance 
     closing costs.--A mortgage described in paragraphs (1) or (2) 
     may provide financing of amounts that are used to satisfy 
     outstanding mortgage obligations (in accordance with such 
     limitations as the Secretary shall prescribe) any amounts 
     used for initial service charges, appraisal, inspection, and 
     other fees (as approved by the Secretary) in connection with 
     such mortgage, and the amount of future payments described in 
     subsection (b)(3) under the mortgage shall be reduced 
     accordingly.''.
       (d) Study of Single National Mortgage Limit.--The Secretary 
     of Housing and Urban Development shall conduct an actuarially 
     based study of the effects of establishing, for mortgages 
     insured under section 255 of the National Housing Act (12 
     U.S.C. 1715z-20), a single maximum mortgage amount limitation 
     in lieu of applicability of section 203(b)(2) of such Act (12 
     U.S.C. 1709(b)(2)). The study shall--
       (1) examine the effects of establishing such limitation at 
     different dollar amounts; and
       (2) examine the effects of such various limitations on--
       (A) the risks to the General Insurance Fund established 
     under section 519 of such Act;
       (B) the mortgage insurance premiums that would be required 
     to be charged to mortgagors to ensure actuarial soundness of 
     such Fund; and
       (C) take into consideration the various approaches to 
     providing credit to borrowers who refinance home equity 
     conversion mortgages insured under section 255 of such Act.

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

     SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT 
                   PROGRAM.

       (a) Assistance for Law Enforcement Officers.--The Secretary 
     of Housing and Urban Development shall carry out a pilot 
     program in accordance with this section to assist Federal, 
     State, and local law enforcement officers purchasing homes in 
     locally-designated high-crime areas.
       (b) Eligibility.--To be eligible for assistance under this 
     section, a law enforcement officer shall--
       (1) have completed not less than 6 months of service as a 
     law enforcement officer as of the date that the law 
     enforcement officer applies for such assistance; and

[[Page 4734]]

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

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

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

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

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

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

     SEC. 301. DOWNPAYMENT ASSISTANCE.

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

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

       (a) In General.--A public housing agency providing tenant-
     based assistance on behalf of an eligible family under 
     section 8 of the United States Housing Act of 1937 (42 U.S.C. 
     1437f) may provide assistance for a disabled family that 
     purchases a dwelling unit (including a dwelling unit under a 
     lease-purchase agreement) that will be owned by 1 or more 
     members of the disabled family and will be occupied by the 
     disabled family, if the disabled family--
       (1) purchases the dwelling unit before the expiration of 
     the 3-year period beginning on the date that the Secretary 
     first implements the pilot program under this section;
       (2) demonstrates that the disabled family has income from 
     employment or other sources (including public assistance), as 
     determined in accordance with requirements of the Secretary, 
     that is not less than twice the payment standard established 
     by the public housing agency (or such other amount as may be 
     established by the Secretary);
       (3) except as provided by the Secretary, demonstrates at 
     the time the disabled family initially receives tenant-based 
     assistance under this section that one or more adult members 
     of the disabled family have achieved employment for the 
     period as the Secretary shall require;
       (4) participates in a homeownership and housing counseling 
     program provided by the agency; and
       (5) meets any other initial or continuing requirements 
     established by the public housing agency in accordance with 
     requirements established by the Secretary.
       (b) Determination of Amount of Assistance.--
       (1) In general.--
       (A) Monthly expenses not exceeding payment standard.--If 
     the monthly homeownership expenses, as determined in 
     accordance with requirements established by the Secretary, do 
     not exceed the payment standard, the monthly assistance 
     payment shall be the amount by which the homeownership 
     expenses exceed the highest of the following amounts, rounded 
     to the nearest dollar:
       (i) 30 percent of the monthly adjusted income of the 
     disabled family.
       (ii) 10 percent of the monthly income of the disabled 
     family.
       (iii) If the disabled family is receiving payments for 
     welfare assistance from a public agency, and a portion of 
     those payments, adjusted in accordance with the actual 
     housing costs of the disabled family, is specifically 
     designated by that agency to meet the housing costs of the 
     disabled family, the portion of those payments that is so 
     designated.
       (B) Monthly expenses exceed payment standard.--If the 
     monthly homeownership expenses, as determined in accordance 
     with requirements established by the Secretary, exceed the 
     payment standard, the monthly assistance payment shall be the 
     amount by which the applicable payment standard exceeds the 
     highest

[[Page 4735]]

     of the amounts under clauses (i), (ii), and (iii) of 
     subparagraph (A).
       (2) Calculation of amount.--
       (A) Low-income families.--A disabled family that is a low-
     income family shall be eligible to receive 100 percent of the 
     amount calculated under paragraph (1).
       (B) Income between 81 and 89 percent of median.--A disabled 
     family whose income is between 81 and 89 percent of the 
     median for the area shall be eligible to receive 66 percent 
     of the amount calculated under paragraph (1).
       (C) Income between 90 and 99 percent of median.--A disabled 
     family whose income is between 90 and 99 percent of the 
     median for the area shall be eligible to receive 33 percent 
     of the amount calculated under paragraph (1).
       (D) Income more than 99 percent of median.--A disabled 
     family whose income is more than 99 percent of the median for 
     the area shall not be eligible to receive assistance under 
     this section.
       (c) Inspections and Contract Conditions.--
       (1) In general.--Each contract for the purchase of a 
     dwelling unit to be assisted under this section shall--
       (A) provide for pre-purchase inspection of the dwelling 
     unit by an independent professional; and
       (B) require that any cost of necessary repairs be paid by 
     the seller.
       (2) Annual inspections not required.--The requirement under 
     subsection (o)(8)(A)(ii) of the United States Housing Act of 
     1937 for annual inspections shall not apply to dwelling units 
     assisted under this section.
       (d) Other Authority of the Secretary.--The Secretary may--
       (1) limit the term of assistance for a disabled family 
     assisted under this section;
       (2) provide assistance for a disabled family for the entire 
     term of a mortgage for a dwelling unit if the disabled family 
     remains eligible for such assistance for such term; and
       (3) modify the requirements of this section as the 
     Secretary determines to be necessary to make appropriate 
     adaptations for lease-purchase agreements.
       (e) Assistance Payments Sent to Lender.--The Secretary 
     shall remit assistance payments under this section directly 
     to the mortgagee of the dwelling unit purchased by the 
     disabled family receiving such assistance payments.
       (f) Inapplicability of Certain Provisions.--Assistance 
     under this section shall not be subject to the requirements 
     of the following provisions:
       (1) Subsection (c)(3)(B) of section 8 of the United States 
     Housing Act of 1937.
       (2) Subsection (d)(1)(B)(i) of section 8 of the United 
     States Housing Act of 1937.
       (3) Any other provisions of section 8 of the United States 
     Housing Act of 1937 governing maximum amounts payable to 
     owners and amounts payable by assisted families.
       (4) Any other provisions of section 8 of the United States 
     Housing Act of 1937 concerning contracts between public 
     housing agencies and owners.
       (5) Any other provisions of the United States Housing Act 
     of 1937 that are inconsistent with the provisions of this 
     section.
       (g) Reversion to Rental Status.--
       (1) Non-fha mortgages.--If a disabled family receiving 
     assistance under this section defaults under a mortgage not 
     insured under the National Housing Act, the disabled family 
     may not continue to receive rental assistance under section 8 
     of the United States Housing Act of 1937 unless it complies 
     with requirements established by the Secretary.
       (2) All mortgages.--A disabled family receiving assistance 
     under this section that defaults under a mortgage may not 
     receive assistance under this section for occupancy of 
     another dwelling unit owned by 1 or more members of the 
     disabled family.
       (3) Exception.--This subsection shall not apply if the 
     Secretary determines that the disabled family receiving 
     assistance under this section defaulted under a mortgage due 
     to catastrophic medical reasons or due to the impact of a 
     federally declared major disaster or emergency.
       (h) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall issue 
     regulations to implement this section. Such regulations may 
     not prohibit any public housing agency providing tenant-based 
     assistance on behalf of an eligible family under section 8 of 
     the United States Housing Act of 1937 from participating in 
     the pilot program under this section.
       (i) Definition of Disabled Family.--For the purposes of 
     this section, the term ``disabled family'' has the meaning 
     given the term ``person with disabilities'' in section 
     811(k)(2) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013(k)(2)).

     SEC. 303. FUNDING FOR PILOT PROGRAMS.

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

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

     SEC. 401. REAUTHORIZATION.

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

     SEC. 402. PROHIBITION OF SET-ASIDES.

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

     SEC. 403. PUBLIC SERVICES CAP.

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

     SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

       (a) Eligible Activities.--Section 105(a) of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5305(a)) is 
     amended--

[[Page 4736]]

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

     SEC. 405. TECHNICAL AMENDMENT RELATING TO BROWNFIELDS.

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

     SEC. 406. INCOME ELIGIBILITY.

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

     SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

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

     ``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

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

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

     SEC. 501. REAUTHORIZATION.

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

     ``SEC. 205. AUTHORIZATION.

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

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

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

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

       (a) Congressional Findings.--Section 202(10) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12721(10)) is amended by inserting ``mutual housing 
     associations,'' after ``limited equity cooperatives,''.
       (b) Definitions.--Section 104 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12704) is 
     amended--
       (1) by redesignating paragraph (23) as paragraph (22);
       (2) by redesignating paragraph (24) (relating to the 
     definition of ``insular area'') as paragraph (23); and
       (3) by adding at the end the following new paragraphs:
       ``(26) The term `limited equity cooperative' means a 
     cooperative housing corporation which, in a manner determined 
     by the Secretary to be acceptable, restricts income 
     eligibility of purchasers of membership shares of stock in 
     the cooperative corporation or the initial and resale price 
     of such shares, or both, so that the shares

[[Page 4737]]

     remain available and affordable to low-income families.
       ``(27) The term `mutual housing association' means a 
     private entity that--
       ``(A) is organized under State law;
       ``(B) is described in section 501(c) of the Internal 
     Revenue Code of 1986 and exempt from taxation under section 
     501(a) of such Code;
       ``(C) owns, manages, and continuously develops affordable 
     housing by providing long-term housing for low- and moderate-
     income families;
       ``(D) provides that eligible families who purchase 
     membership interests in the association shall have a right to 
     residence in a dwelling unit in the housing during the period 
     that they hold such membership interest; and
       ``(E) provides for the residents of such housing to 
     participate in the ongoing management of the housing.''.
       (c) Eligibility.--Section 215 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12745) is 
     amended--
       (1) in subsection (b), by adding after and below paragraph 
     (4) the following:

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

     SEC. 503. ADMINISTRATIVE COSTS.

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

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

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

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

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

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

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

     SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

       (a) Eligible Activities.--Paragraph (2) of section 215(b) 
     of the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12745(b)(2)) is amended to read as follows:
       ``(2) is the principal residence of an owner who--
       ``(A) is a member of a family that qualifies as a low-
     income family--
       ``(i) in the case of a contract to purchase existing 
     housing, at the time of purchase;
       ``(ii) in the case of a lease-purchase agreement for 
     existing housing or for housing to be constructed, at the 
     time the agreement is signed; or
       ``(iii) in the case of a contract to purchase housing to be 
     constructed, at the time the contract is signed; or
       ``(B)(i) is a uniformed employee (which shall include 
     policemen, firemen, and sanitation and other maintenance 
     workers) or a teacher who is an employee, of the 
     participating jurisdiction (or an agency or school district 
     serving such jurisdiction) that is investing funds made 
     available under this subtitle to support homeownership of the 
     residence; and
       ``(ii) is a member of a family whose income, at the time 
     referred to in clause (i), (ii), or (iii) of subparagraph 
     (A), as appropriate, and as determined by the Secretary with 
     adjustments for smaller and larger families, does not exceed 
     115 percent of the median income of the area, except that, 
     with respect only to such areas that the Secretary determines 
     have high housing costs,

[[Page 4738]]

     taking into consideration median house prices and median 
     family incomes for the area, such income limitation shall be 
     150 percent of the median income of the area, as determined 
     by the Secretary with adjustments for smaller and larger 
     families;''.
       (b) Income Targeting.--Section 214(2) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12744(2)) 
     is amended by inserting before the semicolon the following: 
     ``or families described in section 215(b)(2)(B)''.
       (c) Eligible Investments.--Section 212(b) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12742(b)) 
     is amended by adding at the end the following new sentence: 
     ``Notwithstanding the preceding sentence, in the case of 
     homeownership assistance for residences of owners described 
     in section 215(b)(2)(B), funds made available under this 
     subtitle may only be invested (A) to provide amounts for 
     downpayments on mortgages, (B) to pay reasonable closing 
     costs normally associated with the purchase of a residence, 
     (C) to obtain pre- or post-purchase counseling relating to 
     the financial and other obligations of homeownership, or (D) 
     to subsidize mortgage interest rates.''.

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

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

     SEC. 507. LOAN GUARANTEES.

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

     ``SEC. 227. LOAN GUARANTEES.

       ``(a) Authority.--The Secretary may, upon such terms and 
     conditions as the Secretary may prescribe, guarantee and make 
     commitments to guarantee, only to such extent or in such 
     amounts as provided in appropriations Acts, the notes or 
     other obligations issued by eligible participating 
     jurisdictions or by public agencies designated by and acting 
     on behalf of eligible participating jurisdictions for 
     purposes of financing (including credit enhancements and debt 
     service reserves) the acquisition, new construction, 
     reconstruction, or moderate or substantial rehabilitation of 
     affordable housing (including real property acquisition, site 
     improvement, conversion, and demolition), and other related 
     expenses (including financing costs and relocation expenses 
     of any displaced persons, families, businesses, or 
     organizations). Housing funded under this section shall meet 
     the requirements of this subtitle.
       ``(b) Requirements.--Notes or other obligations guaranteed 
     under this section shall be in such form and denominations, 
     have such maturities, and be subject to such conditions as 
     may be prescribed by the Secretary. The Secretary may not 
     deny a guarantee under this section on the basis of the 
     proposed repayment period for the note or other obligation, 
     unless the period is more than 20 years or the Secretary 
     determines that the period otherwise causes the guarantee to 
     constitute an unacceptable financial risk.
       ``(c) Limitation on Total Notes and Obligations.--The 
     Secretary may not guarantee or make a commitment to guarantee 
     any note or other obligation if the total outstanding notes 
     or obligations guaranteed under this section on behalf of the 
     participating jurisdiction issuing the note or obligation 
     (excluding any amount defeased under a contract entered into 
     under subsection (e)(1)) would thereby exceed an amount equal 
     to 5 times the amount of the participating jurisdiction's 
     latest allocation under section 217.
       ``(d) Use of Program Funds.--Notwithstanding any other 
     provision of this subtitle, funds allocated to the 
     participating jurisdiction under this subtitle (including 
     program income derived therefrom) are authorized for use in 
     the payment of principal and interest due on the notes or 
     other obligations guaranteed pursuant to this section and the 
     payment of such servicing, underwriting, or other issuance or 
     collection charges as may be specified by the Secretary.
       ``(e) Security.--To assure the full repayment of notes or 
     other obligations guaranteed under this section, and payment 
     of the issuance or collection charges specified by the 
     Secretary under subsection (d), and as a prior condition for 
     receiving such guarantees, the Secretary shall require the 
     participating jurisdiction (and its designated public agency 
     issuer, if any) to--
       ``(1) enter into a contract, in a form acceptable to the 
     Secretary, for repayment of such notes or other obligations 
     and the other specified charges;
       ``(2) pledge as security for such repayment any allocation 
     for which the participating jurisdiction may become eligible 
     under this subtitle; and
       ``(3) furnish, at the discretion of the Secretary, such 
     other security as may be deemed appropriate by the Secretary 
     in making such guarantees, which may include increments in 
     local tax receipts generated by the housing assisted under 
     this section or disposition proceeds from the sale of land or 
     housing.
       ``(f) Repayment Authority.--The Secretary may, 
     notwithstanding any other provision of this subtitle or any 
     other Federal, State, or local law, apply allocations pledged 
     pursuant to subsection (e) to any repayments due the United 
     States as a result of such guarantees.
       ``(g) Full Faith and Credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     made under this section. Any such guarantee made by the 
     Secretary shall be conclusive evidence of the eligibility of 
     the notes or other obligations for such guarantee with 
     respect to principal and interest, and the validity of any 
     such guarantee so made shall be incontestable in the hands of 
     a holder of the guaranteed obligations.
       ``(h) Tax Status.--With respect to any obligation 
     guaranteed pursuant to this section, the guarantee and the 
     obligation shall be designed in a manner such that the 
     interest paid on such obligation shall be included in gross 
     income for purposes of the Internal Revenue Code of 1986.
       ``(i) Monitoring.--The Secretary shall monitor the use of 
     guarantees under this section by eligible participating 
     jurisdictions. If the Secretary finds that 50 percent of the 
     aggregate guarantee authority for any fiscal year has been 
     committed, the Secretary may impose limitations on the amount 
     of guarantees any 1 participating jurisdiction may receive 
     during that fiscal year.
       ``(j) Guarantee of Trust Certificates.--
       ``(1) Authority.--The Secretary may, upon such terms and 
     conditions as the Secretary deems appropriate, guarantee the 
     timely payment of the principal of and interest on such trust 
     certificates or other obligations as may--
       ``(A) be offered by the Secretary or by any other offeror 
     approved for purposes of this subsection by the Secretary; 
     and
       ``(B) be based on and backed by a trust or pool composed of 
     notes or other obligations guaranteed or eligible for 
     guarantee by the Secretary under this section.
       ``(2) Full faith and credit.--To the same extent as 
     provided in subsection (g), the full faith and credit of the 
     United States is pledged to the payment of all amounts which 
     may be required to be paid under any guarantee by the 
     Secretary under this subsection.
       ``(3) Subrogation.--In the event the Secretary pays a claim 
     under a guarantee issued under this section, the Secretary 
     shall be subrogated fully to the rights satisfied by such 
     payment.
       ``(4) Other powers and rights.--No State or local law, and 
     no Federal law, shall preclude or limit the exercise by the 
     Secretary of--
       ``(A) the power to contract with respect to public 
     offerings and other sales of notes, trust certificates, and 
     other obligations guaranteed under this section, upon such 
     terms and conditions as the Secretary deems appropriate;
       ``(B) the right to enforce, by any means deemed appropriate 
     by the Secretary, any such contract; and
       ``(C) the Secretary's ownership rights, as applicable, in 
     notes, certificates or other obligations guaranteed under 
     this section, or constituting the trust or pool against which 
     trust certificates or other obligations guaranteed under this 
     section are offered.
       ``(k) Aggregate Limitation.--The total amount of 
     outstanding obligations guaranteed on a cumulative basis by 
     the Secretary under this section shall not at any time exceed 
     $2,000,000,000.''.

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

       (a) Authority.--The Secretary of Housing and Urban 
     Development shall carry out a pilot program under this 
     section under which covered jurisdictions may use amounts 
     described in subsection (b) to make loans to eligible 
     homebuyers for use as downpayments on 2- and 3-family 
     residences.
       (b) Covered Assistance.--Notwithstanding section 105 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5305) and section 212 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12742), a covered 
     jurisdiction may use amounts provided to the jurisdiction 
     pursuant to section 106(b) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5406(b)) and amounts in 
     the HOME Investment Trust Fund for the jurisdiction for 
     downpayment loans meeting the requirements of subsection (d) 
     to homebuyers

[[Page 4739]]

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

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

     SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT 
                   CORPORATION.

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

     SEC. 602. HOMEOWNERSHIP ZONES.

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

     ``SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

       ``(a) Authority.--The Secretary of Housing and Urban 
     Development may make grants to units of general local 
     government to assist homeownership zones. Homeownership zones 
     are contiguous, geographically defined areas, primarily 
     residential in nature, in which large-scale development 
     projects are designed to reclaim distressed neighborhoods by 
     creating homeownership opportunities for low- and moderate-
     income families. Projects in homeownership zones are intended 
     to serve as a catalyst for private investment, business 
     creation, and neighborhood revitalization.
       ``(b) Eligible Activities.--Amounts made available under 
     this section may be used for projects that include any of the 
     following activities in the homeownership zone:
       ``(1) Acquisition, construction, and rehabilitation of 
     housing.
       ``(2) Site acquisition and preparation, including 
     demolition, construction, reconstruction, or installation of 
     public and other site improvements and utilities directly 
     related to the homeownership zone.
       ``(3) Direct financial assistance to homebuyers.
       ``(4) Homeownership counseling.
       ``(5) Relocation assistance.
       ``(6) Marketing costs, including affirmative marketing 
     activities.
       ``(7) Other project-related costs.
       ``(8) Reasonable administrative costs (up to 5 percent of 
     the grant amount).
       ``(9) Other housing-related activities proposed by the 
     applicant as essential to the success of the homeownership 
     zone and approved by the Secretary.
       ``(c) Application.--To be eligible for a grant under this 
     section, a unit of general local government shall submit an 
     application for a homeownership zone grant in such form and 
     in accordance with such procedures as the Secretary shall 
     establish.
       ``(d) Selection Criteria.--The Secretary shall select 
     applications for funding under this section through a 
     national competition, using selection criteria established by 
     the Secretary, which shall include--
       ``(1) the degree to which the proposed activities will 
     result in the improvement of the economic, social, and 
     physical aspects of the neighborhood and the lives of its 
     residents through the creation of new homeownership 
     opportunities;
       ``(2) the levels of distress in the homeownership zone as a 
     whole, and in the immediate neighborhood of the project for 
     which assistance is requested;
       ``(3) the financial soundness of the plan for financing 
     homeownership zone activities;
       ``(4) the leveraging of other resources; and
       ``(5) the capacity to successfully carry out the plan.
       ``(e) Grant Approval Amounts.--The Secretary may establish 
     a maximum amount for any grant for any funding round under 
     this section. A grant may not be made in an amount that 
     exceeds the amount that the Secretary determines is necessary 
     to fund the project for which the application is made.
       ``(f) Program Requirements.--A homeownership zone proposal 
     shall--
       ``(1) provide for a significant number of new homeownership 
     opportunities that will make a visible improvement in an 
     immediate neighborhood;
       ``(2) not be inconsistent with such planning and design 
     principles as may be prescribed by the Secretary;
       ``(3) be designed to stimulate additional investment in 
     that area;
       ``(4) provide for partnerships with persons or entities in 
     the private and nonprofit sectors;
       ``(5) incorporate a comprehensive approach to 
     revitalization of the neighborhood;
       ``(6) establish a detailed time-line for commencement and 
     completion of construction activities; and
       ``(7) provide for affirmatively furthering fair housing.
       ``(g) Income Targeting.--At least 51 percent of the 
     homebuyers assisted with funds under this section shall have 
     household incomes at or below 80 percent of median income for 
     the area, as determined by the Secretary.

[[Page 4740]]

       ``(h) Environmental Review.--For purposes of environmental 
     review, decisionmaking, and action pursuant to the National 
     Environmental Policy Act of 1969 and other provisions of law 
     that further the purposes of such Act, a grant under this 
     section shall be treated as assistance under the HOME 
     Investment Partnerships Act and shall be subject to the 
     regulations issued by the Secretary to implement section 288 
     of such Act.
       ``(i) Review, Audit, and Reporting.--The Secretary shall 
     make such reviews and audits and establish such reporting 
     requirements as may be necessary or appropriate to determine 
     whether the grantee has carried out its activities in a 
     timely manner and in accordance with the requirements of this 
     section. The Secretary may adjust, reduce, or withdraw 
     amounts made available, or take other action as appropriate, 
     in accordance with the Secretary's performance reviews and 
     audits under this section.
       ``(j) Authorization.--There is authorized to be 
     appropriated to carry out this section $25,000,000 for fiscal 
     year 2001 and such sums as may be necessary for fiscal year 
     2002, to remain available until expended.''.

     SEC. 603. LEASE-TO-OWN.

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

     SEC. 604. LOCAL CAPACITY BUILDING.

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

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

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

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

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

     ``SEC. 13. NOTICE OF FUNDING AVAILABILITY.

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

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

       (a) Reauthorization.--Subsection (p) of section 11 of the 
     Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 
     12805 note) is amended to read as follows:
       ``(p) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     fiscal year 2001 and such sums as may be necessary for each 
     of fiscal years 2002 and 2003.''.
       (b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing 
     Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
     note) is amended by inserting before the period at the end 
     the following: ``, which may include reimbursing an 
     organization, consortium, or affiliate, upon approval of any 
     required environmental review, for nongrant amounts of the 
     organization, consortium, or affiliate advanced before such 
     review to acquire land''.
       (c) Deadline for Recapture of Funds.--Section 11 of the 
     Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 
     12805 note) is amended--
       (1) in subsection (i)(5)--
       (A) by striking ``if the organization or consortia has not 
     used any grant amounts'' and inserting ``the Secretary shall 
     recapture any grant amounts provided to the organization or 
     consortia that are not used'';
       (B) by striking ``(or,'' and inserting ``, except that such 
     period shall be 36 months''; and
       (C) by striking ``within 36 months), the Secretary shall 
     recapture such unused amounts'' and inserting ``and in the 
     case of a grant amounts provided to a local affiliate of the 
     organization or consortia that is developing 5 or more 
     dwellings in connection with such grant amounts''; and
       (2) in subsection (j), by inserting after ``carry out this 
     section'' the following: ``and grant amounts provided to a 
     local affiliate of the organization or consortia that is 
     developing 5 or more dwellings in connection with such grant 
     amounts''.
       (d) Technical Corrections.--Section 11 of the Housing 
     Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
     note) is amended--
       (1) in subsection (b)(4), by striking ``Habitat for 
     Humanity International, its affiliates, and other''; and
       (2) in subsection (e)(2), by striking ``consoria'' and 
     inserting ``consortia''.

     SEC. 607. HOUSING COUNSELING ORGANIZATIONS.

       Section 106 of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x) is amended--
       (1) in subsection (a)(1)(ii), by inserting ``and 
     cooperative housing'' before the semicolon at the end; and
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting a semicolon; and
       (iii) by adding at the end the following new subparagraph:
       ``(C) to the National Cooperative Bank Development 
     Corporation--
       ``(i) to provide homeownership counseling to eligible 
     homeowners that is specifically designed to relate to 
     ownership under cooperative housing arrangements; and
       ``(ii) to assist in the establishment and operation of 
     well-managed and viable cooperative housing boards.'';
       (B) in paragraph (4)(A), by inserting before the semicolon 
     at the end the following: ``or, in the case of a home loan 
     made to finance the purchase of stock or membership in a 
     cooperative ownership housing corporation, by the stock or 
     membership interest''; and

[[Page 4741]]

       (C) in paragraph (6)(C), by adding before the period at the 
     end the following: ``and includes a loan that is secured by a 
     first lien given in accordance with the laws of the State 
     where the property is located and that is made to finance the 
     purchase of stock or membership in a cooperative ownership 
     housing corporation the permanent occupancy of dwelling units 
     of which is restricted to members of such corporation, where 
     the purchase of such stock or membership will entitle the 
     purchaser to the permanent occupancy of 1 of such units''.

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

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

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

     SEC. 701. LANDS TITLE REPORT COMMISSION.

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

     SEC. 702. LOAN GUARANTEES.

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

     SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.

       (a) Restriction on Waiver Authority.--
       (1) In general.--Section 101(b)(2) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4111(b)(2)) is amended by striking ``if the 
     Secretary'' and all that follows through the period at the 
     end and inserting the following: ``for a period of not more 
     than 90 days, if the Secretary determines that an Indian 
     tribe has not complied with, or is unable to comply with, 
     those requirements due to exigent circumstances beyond the 
     control of the Indian tribe.''.
       (2) Local cooperation agreement.--Section 101(c) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4111(c)) is amended by adding at the end 
     the following: ``The Secretary may waive the requirements of 
     this subsection and subsection (d) if the recipient has made 
     a good faith effort to fulfill the requirements of this 
     subsection and subsection (d) and agrees to make payments in 
     lieu of taxes to the appropriate taxing authority in an 
     amount consistent with the requirements of subsection (d)(2) 
     until such time as the matter of making such payments has 
     been resolved in accordance with subsection (d).''.
       (b) Assistance to Families That Are Not Low-Income.--
     Section 102(c) of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4112(c)) is amended 
     by adding at the end the following:
       ``(6) Certain families.--With respect to assistance 
     provided under section 201(b)(2) by a recipient to Indian 
     families that are not low-income families, evidence that 
     there is a need for housing for each such family during that 
     period that cannot reasonably be met without such 
     assistance.''.
       (c) Elimination of Waiver Authority for Small Tribes.--
     Section 102 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4112) is amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsection (g) as subsection (f).
       (d) Environmental Compliance.--Section 105 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4115) is amended by adding at the end the 
     following:
       ``(d) Environmental Compliance.--The Secretary may waive 
     the requirements under this section if the Secretary 
     determines that a failure on the part of a recipient to 
     comply with provisions of this section--
       ``(1) will not frustrate the goals of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or 
     any other provision of law that furthers the goals of that 
     Act;
       ``(2) does not threaten the health or safety of the 
     community involved by posing an immediate or long-term hazard 
     to residents of that community;
       ``(3) is a result of inadvertent error, including an 
     incorrect or incomplete certification provided under 
     subsection (c)(1); and
       ``(4) may be corrected through the sole action of the 
     recipient.''.
       (e) Eligibility of Law Enforcement Officers for Housing 
     Assistance.--Section 201(b)

[[Page 4742]]

     of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4131(b)) is amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (4)'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (3) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Law enforcement officers.--A recipient may provide 
     housing or housing assistance provided through affordable 
     housing activities assisted with grant amounts under this Act 
     for a law enforcement officer on an Indian reservation or 
     other Indian area, if--
       ``(A) the officer--
       ``(i) is employed on a full-time basis by the Federal 
     Government or a State, county, or tribal government; and
       ``(ii) in implementing such full-time employment, is sworn 
     to uphold, and make arrests for, violations of Federal, 
     State, county, or tribal law; and
       ``(B) the recipient determines that the presence of the law 
     enforcement officer on the Indian reservation or other Indian 
     area may deter crime.''.
       (f) Oversight.--
       (1) Repayment.--Section 209 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4139) is amended to read as follows:

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

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

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

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

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

       ``(ii) has a continuing capacity to carry out eligible 
     activities in a timely manner; and
       ``(iii) is in compliance with the Indian housing plan of 
     the recipient; and
       ``(B) verify the accuracy of information contained in any 
     performance report submitted by the recipient under section 
     404.
       ``(2) On-site visits.--To the extent practicable, the 
     reviews and audits conducted under this subsection shall 
     include on-site visits by the appropriate official of the 
     Department of Housing and Urban Development.
       ``(c) Review of Reports.--
       ``(1) In general.--The Secretary shall provide each 
     recipient that is the subject of a report made by the 
     Secretary under this section notice that the recipient may 
     review and comment on the report during a period of not less 
     than 30 days after the date on which notice is issued under 
     this paragraph.
       ``(2) Public availability.--After taking into consideration 
     any comments of the recipient under paragraph (1), the 
     Secretary--
       ``(A) may revise the report; and
       ``(B) not later than 30 days after the date on which those 
     comments are received, shall make the comments and the report 
     (with any revisions made under subparagraph (A)) readily 
     available to the public.
       ``(d) Effect of Reviews.--Subject to section 401(a), after 
     reviewing the reports and audits relating to a recipient that 
     are submitted to the Secretary under this section, the 
     Secretary may adjust the amount of a grant made to a 
     recipient under this Act in accordance with the findings of 
     the Secretary with respect to those reports and audits.''.
       (g) Allocation Formula.--Section 302(d)(1) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4152(d)(1)) is amended--
       (1) by striking ``The formula,'' and inserting the 
     following:
       ``(A) In general.--Except with respect to an Indian tribe 
     described in subparagraph (B), the formula''; and
       (2) by adding at the end the following:
       ``(B) Certain indian tribes.--With respect to fiscal year 
     2001 and each fiscal year thereafter, for any Indian tribe 
     with an Indian housing authority that owns or operates fewer 
     than 250 public housing units, the formula shall provide that 
     if the amount provided for a fiscal year in which the total 
     amount made available for assistance under this Act is equal 
     to or greater than the amount made available for fiscal year 
     1996 for assistance for the operation and modernization of 
     the public housing referred to in subparagraph (A), then the 
     amount provided to that Indian tribe as modernization 
     assistance shall be equal to the average annual amount of 
     funds provided to the Indian tribe (other than funds provided 
     as emergency assistance) under the assistance program under 
     section 14 of the United States Housing Act of 1937 (42 
     U.S.C. 1437l) for the period beginning with fiscal year 1992 
     and ending with fiscal year 1997.''.
       (h) Hearing Requirement.--Section 401(a) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4161(a)) is amended--
       (1) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively, and realigning 
     such subparagraphs (as so redesignated) so as to be indented 
     4 ems from the left margin;
       (2) by striking ``Except as provided'' and inserting the 
     following:
       ``(1) In general.--Except as provided'';
       (3) by striking ``If the Secretary takes an action under 
     paragraph (1), (2), or (3)'' and inserting the following:
       ``(2) Continuance of actions.--If the Secretary takes an 
     action under subparagraph (A), (B), or (C) of paragraph 
     (1)''; and
       (4) by adding at the end the following:
       ``(3) Exception for certain actions.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, if the Secretary makes a determination that 
     the failure of a recipient of assistance under this Act to 
     comply substantially with any material provision (as that 
     term is defined by the Secretary) of this Act is resulting, 
     and would continue to result, in a continuing expenditure of 
     Federal funds in a manner that is not authorized by law, the 
     Secretary may take an action described in paragraph (1)(C) 
     before conducting a hearing.
       ``(B) Procedural requirement.--If the Secretary takes an 
     action described in subparagraph (A), the Secretary shall--
       ``(i) provide notice to the recipient at the time that the 
     Secretary takes that action; and
       ``(ii) conduct a hearing not later than 60 days after the 
     date on which the Secretary provides notice under clause (i).
       ``(C) Determination.--Upon completion of a hearing under 
     this paragraph, the Secretary shall make a determination 
     regarding whether to continue taking the action that is the 
     subject of the hearing, or take another action under this 
     subsection.''.
       (i) Performance Agreement Time Limit.--Section 401(b) of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996 (25 U.S.C. 4161(b)) is amended--
       (1) by striking ``If the Secretary'' and inserting the 
     following:
       ``(1) In general.--If the Secretary'';
       (2) by striking ``(1) is not'' and inserting the following:
       ``(A) is not'';
       (3) by striking ``(2) is a result'' and inserting the 
     following:
       ``(B) is a result'';
       (4) in the flush material following paragraph (1)(B), as 
     redesignated by paragraph (3) of this subsection--
       (A) by realigning such material so as to be indented 2 ems 
     from the left margin; and
       (B) by inserting before the period at the end the 
     following: ``, if the recipient enters into a performance 
     agreement with the Secretary that specifies the compliance 
     objectives that the recipient will be required to achieve by 
     the termination date of the performance agreement''; and
       (5) by adding at the end the following:
       ``(2) Performance agreement.--The period of a performance 
     agreement described in paragraph (1) shall be for 1 year.
       ``(3) Review.--Upon the termination of a performance 
     agreement entered into under paragraph (1), the Secretary 
     shall review the performance of the recipient that is a party 
     to the agreement.
       ``(4) Effect of review.--If, on the basis of a review under 
     paragraph (3), the Secretary determines that the recipient--
       ``(A) has made a good faith effort to meet the compliance 
     objectives specified in the agreement, the Secretary may 
     enter into an additional performance agreement for the period 
     specified in paragraph (2); and
       ``(B) has failed to make a good faith effort to meet 
     applicable compliance objectives, the Secretary shall 
     determine the recipient to have failed to comply 
     substantially with this Act, and the recipient shall be 
     subject to an action under subsection (a).''.
       (j) Reference.--Section 104(b)(1) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4114(b)(1)) is amended by striking ``Davis-Bacon Act 
     (40 U.S.C. 276a-276a-5)'' and inserting ``Act of March 3, 
     1931 (commonly known as the Davis-Bacon Act; chapter 411; 46 
     Stat. 1494; 40 U.S.C 276a et seq.)''.
       (k) Technical and Conforming Amendments.--
       (1) Table of contents.--Section 1(b) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 note) is amended in the table of contents--
       (A) by striking the item relating to section 206; and
       (B) by striking the item relating to section 209 and 
     inserting the following:

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

       (2) Certification of compliance with subsidy layering 
     requirements.--Section 206 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4136) is repealed.
       (3) Terminations.--Section 502(a) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4181(a)) is amended by adding at the end the 
     following: ``Any housing that is the subject of a contract 
     for tenant-based assistance between the Secretary and an 
     Indian housing authority that is

[[Page 4743]]

     terminated under this section shall, for the following fiscal 
     year and each fiscal year thereafter, be considered to be a 
     dwelling unit under section 302(b)(1).''.

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

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

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

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

       ``(3) Timing.--The Secretary shall establish procedures 
     that provide for--
       ``(A) time deadlines for transfers under this subsection;
       ``(B) notification to units of general local government and 
     community development corporations of qualified HUD 
     properties in their jurisdictions;
       ``(C) such units and corporations to express interest in 
     the transfer under this subsection of such properties;
       ``(D) a right of first refusal for transfer of qualified 
     HUD properties to units of general local government and 
     community development corporations, under which--
       ``(i) the Secretary shall establish a period during which 
     the Secretary may not transfer such properties except to such 
     units and corporations;
       ``(ii) the Secretary shall offer qualified HUD properties 
     that are single family properties for purchase by units of 
     general local government at a cost of $1 for each property, 
     but only to the extent that the costs to the Federal 
     Government of disposal at such price do not exceed the costs 
     to the Federal Government of disposing of property subject to 
     the procedures for single family property established by the 
     Secretary pursuant to the authority under the last sentence 
     of section 204(g) of the National Housing Act (12 U.S.C. 
     1710(g));
       ``(iii) the Secretary may accept an offer to purchase a 
     property made by a community development corporation only if 
     the offer provides for purchase on a cost recovery basis; and
       ``(iv) the Secretary shall accept an offer to purchase such 
     a property that is made during such period by such a unit or 
     corporation and that complies with the requirements of this 
     paragraph;
       ``(E) a written explanation, to any unit of general local 
     government or community development corporation making an 
     offer to purchase a qualified HUD property under this 
     subsection that is not accepted, of the reason that such 
     offer was not acceptable.
       ``(4) Other disposition.--With respect to any qualified HUD 
     property, if the Secretary does not receive an acceptable 
     offer to purchase the property pursuant to the procedure 
     established under paragraph (3), the Secretary shall dispose 
     of the property to the unit of general local government in 
     which property is located or to community development 
     corporations located in such unit of general local government 
     on a negotiated, competitive bid, or other basis, on such 
     terms as the Secretary deems appropriate.
       ``(5) Satisfaction of indebtedness.--Before transferring 
     ownership of any qualified HUD property pursuant to this 
     subsection, the Secretary shall satisfy any indebtedness 
     incurred in connection with the property to be transferred, 
     by canceling the indebtedness.
       ``(6) Determination of status of properties.--To ensure 
     compliance with the requirements of this subsection, the 
     Secretary shall take the following actions:
       ``(A) Upon enactment.--Upon the enactment of the American 
     Homeownership and Economic Opportunity Act of 2000, the 
     Secretary shall promptly assess each residential property 
     owned by the Secretary to determine whether such property is 
     a qualified HUD property.
       ``(B) Upon acquisition.--Upon acquiring any residential 
     property, the Secretary shall promptly determine whether the 
     property is a qualified HUD property.
       ``(C) Updates.--The Secretary shall periodically reassess 
     the residential properties owned by the Secretary to 
     determine whether any such properties have become qualified 
     HUD properties.
       ``(7) Tenant leases.--This subsection shall not affect the 
     terms or the enforceability of any contract or lease entered 
     into with respect to any residential property before the date 
     that such property becomes a qualified HUD property.
       ``(8) Use of property.--Property transferred under this 
     subsection shall be used only for appropriate neighborhood 
     revitalization efforts, including homeownership, rental 
     units, commercial space, and parks, consistent with local 
     zoning regulations, local building codes, and subdivision 
     regulations and restrictions of record.
       ``(9) Inapplicability to properties made available for 
     homeless.--Notwithstanding any other provision of this 
     subsection, this subsection shall not apply to any properties 
     that the Secretary determines are to be made available for 
     use by the homeless pursuant to subpart E of part 291 of 
     title 24, Code of Federal Regulations, during the period that 
     the properties are so available.
       ``(10) Protection of existing contracts.--This subsection 
     may not be construed to alter, affect, or annul any legally 
     binding obligations entered into with respect to a qualified 
     HUD property before the property becomes a qualified HUD 
     property.
       ``(11) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Community development corporation.--The term 
     `community development corporation' means a nonprofit 
     organization whose primary purpose is to promote community 
     development by providing housing opportunities for low-income 
     families.
       ``(B) Cost recovery basis.--The term `cost recovery basis' 
     means, with respect to any sale of a residential property by 
     the Secretary, that the purchase price paid by the purchaser 
     is equal to or greater than the sum of (i) the appraised 
     value of the property, as determined in accordance with such 
     requirements as the Secretary shall establish, and (ii) the 
     costs incurred by the Secretary in connection with such 
     property during the period beginning on the date on which the 
     Secretary acquires title to the property and ending on the 
     date on which the sale is consummated.
       ``(C) Multifamily housing project.--The term `multifamily 
     housing project' has the meaning given the term in section 
     203 of the Housing and Community Development Amendments of 
     1978.
       ``(D) Residential property.--The term `residential 
     property' means a property that is a multifamily housing 
     project or a single family property.
       ``(E) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(F) Severe physical problems.--The term `severe physical 
     problems' means, with respect to a dwelling unit, that the 
     unit--
       ``(i) lacks hot or cold piped water, a flush toilet, or 
     both a bathtub and a shower in the unit, for the exclusive 
     use of that unit;
       ``(ii) on not less than 3 separate occasions during the 
     preceding winter months, was uncomfortably cold for a period 
     of more than 6 consecutive hours due to a malfunction of the 
     heating system for the unit;
       ``(iii) has no functioning electrical service, exposed 
     wiring, any room in which there is not a functioning 
     electrical outlet, or has experienced 3 or more blown fuses 
     or tripped circuit breakers during the preceding 90-day 
     period;
       ``(iv) is accessible through a public hallway in which 
     there are no working light fixtures, loose or missing steps 
     or railings, and no elevator; or
       ``(v) has severe maintenance problems, including water 
     leaks involving the roof, windows, doors, basement, or pipes 
     or plumbing fixtures, holes or open cracks in walls or 
     ceilings, severe paint peeling or broken plaster, and signs 
     of rodent infestation.
       ``(G) Single family property.--The term `single family 
     property' means a 1- to 4-family residence.
       ``(H) Substandard.--The term `substandard' means, with 
     respect to a multifamily housing project, that 25 percent or 
     more of the dwelling units in the project have severe 
     physical problems.
       ``(I) Unit of general local government.--The term `unit of 
     general local government' has the meaning given such term in 
     section 102(a) of the Housing and Community Development Act 
     of 1974.
       ``(J) Unoccupied.--The term `unoccupied' means, with 
     respect to a residential property,

[[Page 4744]]

     that the unit of general local government having jurisdiction 
     over the area in which the project is located has certified 
     in writing that the property is not inhabited.
       ``(12) Regulations.--
       ``(A) Interim.--Not later than 30 days after the date of 
     the enactment of the American Homeownership and Economic 
     Opportunity Act of 2000, the Secretary shall issue such 
     interim regulations as are necessary to carry out this 
     subsection.
       ``(B) Final.--Not later than 60 days after the date of the 
     enactment of the American Homeownership and Economic 
     Opportunity Act of 2000, the Secretary shall issue such final 
     regulations as are necessary to carry out this subsection.''.

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

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

   TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

     SECTION 901. SHORT TITLE.

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

     SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.

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

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

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

     SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

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

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

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

     SEC. 906. DEFINITIONS.

       (a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners 
     Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is 
     amended by inserting after ``refinanced'' the following: 
     ``(under the meaning given such term in the regulations 
     issued by the Board of Governors of the Federal Reserve 
     System to carry out the Truth in Lending Act (15 U.S.C. 1601 
     et seq.))''.
       (b) Midpoint of the Amortization Period.--Section 2 of the 
     Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended 
     by inserting after paragraph (6) (as added by section 
     902(a)(1)(D) of this Act) the following new paragraph:
       ``(7) Midpoint of the amortization period.--The term 
     `midpoint of the amortization period' means, with respect to 
     a residential mortgage transaction, the point in time that is 
     halfway through the period that begins upon the first day of 
     the amortization period established at the time a residential 
     mortgage transaction is consummated and ends upon the 
     completion of the entire period over which the mortgage is 
     scheduled to be amortized.''.
       (c) Original Value.--Section 2(12) of the Homeowners 
     Protection Act of 1998 (12 U.S.C. 4901(10)) (as so 
     redesignated by section 902(a)(1)(C) of this Act) is 
     amended--

[[Page 4745]]

       (1) by inserting ``transaction'' after ``a residential 
     mortgage''; and
       (2) by adding at the end the following new sentence: ``In 
     the case of a residential mortgage transaction for 
     refinancing the principal residence of the mortgagor, such 
     term means only the appraised value relied upon by the 
     mortgagee to approve the refinance transaction.''.
       (d) Principal Residence.--Section 2 of the Homeowners 
     Protection Act of 1998 (12 U.S.C. 4901) is amended--
       (1) in paragraph (14) (as so redesignated by section 
     902(a)(1)(C) of this Act) by striking ``primary'' and 
     inserting ``principal''; and
       (2) in paragraph (15) (as so redesignated by section 
     902(a)(1)(C) of this Act) by striking ``primary'' and 
     inserting ``principal'';

                  TITLE X--RURAL HOUSING HOMEOWNERSHIP

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

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

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

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

     SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRACTICES.

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

     SEC. 1004. DEFINITION OF RURAL AREA.

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

     SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS 
                   PROJECTS.

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

     SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.

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

     SEC. 1007. ENFORCEMENT PROVISIONS.

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

     ``SEC. 543. ENFORCEMENT PROVISIONS.

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

[[Page 4746]]

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

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

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

               TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

     SEC. 1101. SHORT TITLE AND REFERENCES.

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

     SEC. 1102. FINDINGS AND PURPOSES.

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


                        ``findings and purposes

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

     SEC. 1103. DEFINITIONS.

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

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

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

[[Page 4747]]

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

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

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

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

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

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

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

[[Page 4748]]

       ``(iii) Publication of rejected proposed revised 
     standard.--If the Secretary rejects the proposed revised 
     standard, the Secretary shall publish the rejected proposed 
     revised standard in the Federal Register with the reasons for 
     rejection and any recommended modifications set forth.
       ``(5) Review by the secretary.--
       ``(A) In general.--The Secretary shall either adopt, 
     modify, or reject a standard, as submitted by the consensus 
     committee under paragraph (4)(A).
       ``(B) Timing.--Not later than 12 months after the date on 
     which a standard is submitted to the Secretary by the 
     consensus committee, the Secretary shall take action 
     regarding such standard under subparagraph (C).
       ``(C) Procedures.--If the Secretary--
       ``(i) adopts a standard recommended by the consensus 
     committee, the Secretary shall--

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

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

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

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

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

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

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

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

     ``SEC. 605. MANUFACTURED HOME INSTALLATION.

       ``(a) Provision of Installation Design and Instructions.--A 
     manufacturer shall provide with each manufactured home, 
     design and instructions for the installation of the 
     manufactured home that have been approved by a design 
     approval primary inspection agency. After establishment of 
     model standards under subsection (b)(2), a design approval 
     primary inspection agency may not give such approval unless a 
     design and instruction provides equal or greater protection 
     than the protection provided under such model standards.
       ``(b) Model Manufactured Home Installation Standards.--
       ``(1) Proposed model standards.--Not later than 18 months 
     after the date on which the initial appointments of all of 
     the members of the consensus committee are completed, the 
     consensus committee shall develop and submit to the Secretary 
     proposed model manufactured home installation standards, 
     which shall, to the maximum extent possible, taking into 
     account the factors described in section 604(e), be 
     consistent with--
       ``(A) the home designs that have been approved by a design 
     approval primary inspection agency; and
       ``(B) the designs and instructions for the installation of 
     manufactured homes provided by manufacturers under subsection 
     (a).
       ``(2) Establishment of model standards.--Not later than 12 
     months after receiving the proposed model standards submitted 
     under paragraph (1), the Secretary shall develop and 
     establish model manufactured home installation standards, 
     which shall be consistent with--
       ``(A) the home designs that have been approved by a design 
     approval primary inspection agency; and
       ``(B) the designs and instructions for the installation of 
     manufactured homes provided by manufacturers under subsection 
     (a).
       ``(3) Factors for consideration.--
       ``(A) Consensus committee.--In developing the proposed 
     model standards under paragraph (1), the consensus committee 
     shall consider the factors described in section 604(e).

[[Page 4749]]

       ``(B) Secretary.--In developing and establishing the model 
     standards under paragraph (2), the Secretary shall consider 
     the factors described in section 604(e).
       ``(c) Manufactured Home Installation Programs.--
       ``(1) Protection of manufactured housing residents during 
     initial period.--During the 5-year period beginning on the 
     date of enactment of the Manufactured Housing Improvement 
     Act, no State or manufacturer may establish or implement any 
     installation standards that, in the determination of the 
     Secretary, provide less protection to the residents of 
     manufactured homes than the protection provided by the 
     installation standards in effect with respect to the State or 
     manufacturer, as applicable, on the date of enactment of the 
     Manufactured Housing Improvement Act.
       ``(2) Installation standards.--
       ``(A) Establishment of installation program.--Not later 
     than the expiration of the 5- year period described in 
     paragraph (1), the Secretary shall establish an installation 
     program that meets the requirements of paragraph (3) for the 
     enforcement of installation standards in each State described 
     in subparagraph (B).
       ``(B) Implementation of installation program.--Beginning on 
     the expiration of the 5-year period described in paragraph 
     (1), the Secretary shall implement the installation program 
     established under subparagraph (A) in each State that does 
     not have an installation program established by State law 
     that meets the requirements of paragraph (3).
       ``(C) Contracting out of implementation.--In carrying out 
     subparagraph (B), the Secretary may contract with an 
     appropriate agent to implement the installation program 
     established under that subparagraph, except that such agent 
     shall not be a person or entity other than a government, nor 
     an affiliate or subsidiary of such a person or entity, that 
     has entered into a contract with the Secretary to implement 
     any other regulatory program under this title.
       ``(3) Requirements.--An installation program meets the 
     requirements of this paragraph if it is a program regulating 
     the installation of manufactured homes that includes--
       ``(A) installation standards that, in the determination of 
     the Secretary, provide protection to the residents of 
     manufactured homes that equals or exceeds the protection 
     provided to those residents by--
       ``(i) the model manufactured home installation standards 
     established under subsection (b); or
       ``(ii) the designs and instructions provided by 
     manufacturers under subsection (a), if the Secretary 
     determines that such designs and instructions provide 
     protection to the residents of the manufactured home that 
     equals or exceeds the protection provided by the model 
     manufactured home installation standards established under 
     subsection (b);
       ``(B) the training and licensing of manufactured home 
     installers; and
       ``(C) inspection of the installation of manufactured 
     homes.''.
       (b) Conforming Amendments.--Section 623(c) (42 U.S.C. 
     5422(c)) is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) by redesignating paragraph (11) as paragraph (13); and
       (3) by inserting after paragraph (10) the following:
       ``(11) with respect to any State plan submitted on or after 
     the expiration of the 5-year period beginning on the date of 
     enactment of the Manufactured Housing Improvement Act, 
     provides for an installation program established by State law 
     that meets the requirements of section 605(c)(3);''.

     SEC. 1106. PUBLIC INFORMATION.

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

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

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

     SEC. 1108. FEES.

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


                     ``authority to establish fees

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

     SEC. 1109. DISPUTE RESOLUTION.

       Section 623(c) (42 U.S.C. 5422(c)), as amended by section 
     5(b) of this Act, is amended by inserting after paragraph 
     (11) (as added by section 5(b) of this Act) the following:
       ``(12) with respect to any State plan submitted on or after 
     the expiration of the 5-year period beginning on the date of 
     enactment of the Manufactured Housing Improvement Act, 
     provides for a dispute resolution program for the timely 
     resolution of disputes between manufacturers, retailers, and 
     installers of manufactured homes regarding responsibility, 
     and for the issuance of appropriate orders, for the 
     correction or repair of defects in manufactured homes that 
     are reported during the 1-year period beginning on the date 
     of installation; and''; and
       (2) by adding at the end the following:
       ``(g) Enforcement of Dispute Resolution Standards.--
       ``(1) Establishment of dispute resolution program.--Not 
     later than the expiration of the 5-year period beginning on 
     the date of enactment of the Manufactured Housing Improvement 
     Act, the Secretary shall establish a dispute resolution 
     program that meets the requirements of subsection (c)(12) for 
     dispute resolution in each State described in paragraph (2).
       ``(2) Implementation of dispute resolution program.--
     Beginning on the expiration of the 5-year period described in 
     paragraph (1), the Secretary shall implement the dispute 
     resolution program established under paragraph (1) in each 
     State that has not established a dispute

[[Page 4750]]

     resolution program that meets the requirements of subsection 
     (c)(12).
       ``(3) Contracting out of implementation.--In carrying out 
     paragraph (2), the Secretary may contract with an appropriate 
     agent to implement the dispute resolution program established 
     under that paragraph, except that such agent shall not be a 
     person or entity other than a government, nor an affiliate or 
     subsidiary of such a person or entity, that has entered into 
     a contract with the Secretary to implement any other 
     regulatory program under this title.''.

     SEC. 1110. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

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

     SEC. 1111. EFFECTIVE DATE.

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

     SEC. 1112. SAVINGS PROVISION.

       (a) Standards and Regulations.--The Federal manufactured 
     home construction and safety standards (as such term is 
     defined in section 603 of the National Manufactured Housing 
     Construction and Safety Standards Act of 1974) and all 
     regulations pertaining thereto in effect immediately before 
     the date of the enactment of this Act shall apply until the 
     effective date of a standard or regulation modifying or 
     superseding the existing standard or regulation which is 
     promulgated under subsection (a) or (b) of section 604 of the 
     National Manufactured Housing Construction and Safety 
     Standards Act of 1974, as amended by this title.
       (b) Contracts.--Any contract awarded pursuant to a Request 
     for Proposal issued before the date of enactment of this Act 
     shall remain in effect for a period of 2 years from the date 
     of enactment of this Act or for the remainder of the contract 
     term, whichever period is shorter.

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


                  Amendment No. 1 Offered By Mr. Lazio

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

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

     SEC. 206. COMMUNITY PARTNERS NEXT DOOR PROGRAM.

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

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

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

                TITLE VII--NATIVE AMERICAN HOMEOWNERSHIP

                  Subtitle A--Native American Housing

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

                  Subtitle B--Native Hawaiian Housing

     SEC. 721. SHORT TITLE.

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

     SEC. 722. FINDINGS.

       The Congress finds that--

[[Page 4751]]

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

     SEC. 723. HOUSING ASSISTANCE.

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

         ``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

     ``SEC. 801. DEFINITIONS.

       ``In this title:
       ``(1) Department of hawaiian home lands; department.--The 
     term `Department of Hawaiian Home Lands' or `Department' 
     means the agency or department of the government of the State 
     of Hawaii that is responsible for the administration of the 
     Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).

[[Page 4752]]

       ``(2) Director.--The term `Director' means the Director of 
     the Department of Hawaiian Home Lands.
       ``(3) Elderly families; near-elderly families.--
       ``(A) In general.--The term `elderly family' or `near-
     elderly family' means a family whose head (or his or her 
     spouse), or whose sole member, is--
       ``(i) for an elderly family, an elderly person; or
       ``(ii) for a near-elderly family, a near-elderly person.
       ``(B) Certain families included.--The term `elderly family' 
     or `near-elderly family' includes--
       ``(i) 2 or more elderly persons or near-elderly persons, as 
     the case may be, living together; and
       ``(ii) 1 or more persons described in clause (i) living 
     with 1 or more persons determined under the housing plan to 
     be essential to their care or well-being.
       ``(4) Hawaiian home lands.--The term `Hawaiian Home Lands' 
     means lands that--
       ``(A) have the status as Hawaiian home lands under section 
     204 of the Hawaiian Homes Commission Act, 1920(42 Stat. 110); 
     or
       ``(B) are acquired pursuant to that Act.
       ``(5) Housing area.--The term `housing area' means an area 
     of Hawaiian Home Lands with respect to which the Department 
     of Hawaiian Home Lands is authorized to provide assistance 
     for affordable housing under this Act.
       ``(6) Housing entity.--The term `housing entity' means the 
     Department of Hawaiian Home Lands.
       ``(7) Housing plan.--The term `housing plan' means a plan 
     developed by the Department of Hawaiian Home Lands.
       ``(8) Median income.--The term `median income' means, with 
     respect to an area that is a Hawaiian housing area, the 
     greater of--
       ``(A) the median income for the Hawaiian housing area, 
     which shall be determined by the Secretary; or
       ``(B) the median income for the State of Hawaii.
       ``(9) Native hawaiian.--The term `Native Hawaiian' means 
     any individual who is--
       ``(A) a citizen of the United States; and
       ``(B) a descendant of the aboriginal people, who, prior to 
     1778, occupied and exercised sovereignty in the area that 
     currently constitutes the State of Hawaii, as evidenced by--
       ``(i) genealogical records;
       ``(ii) verification by kupuna (elders) or kama'aina (long-
     term community residents); or
       ``(iii) birth records of the State of Hawaii.

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

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

     ``SEC. 803. HOUSING PLAN.

       ``(a) Plan Submission.--The Secretary shall--
       ``(1) require the Director to submit a housing plan under 
     this section for each fiscal year; and
       ``(2) provide for the review of each plan submitted under 
     paragraph (1).
       ``(b) 5-Year Plan.--Each housing plan under this section 
     shall--
       ``(1) be in a form prescribed by the Secretary; and
       ``(2) contain, with respect to the 5-year period beginning 
     with the fiscal year for which the plan is submitted, the 
     following information:
       ``(A) Mission statement.--A general statement of the 
     mission of the Department of Hawaiian Home Lands to serve the 
     needs of the low-income families to be served by the 
     Department.
       ``(B) Goal and objectives.--A statement of the goals and 
     objectives of the Department of Hawaiian Home Lands to enable 
     the Department to serve the needs identified in subparagraph 
     (A) during the period.
       ``(C) Activities plans.--An overview of the activities 
     planned during the period including an analysis of the manner 
     in which the activities will enable the Department to meet 
     its mission, goals, and objectives.
       ``(c) 1-Year Plan.--A housing plan under this section 
     shall--
       ``(1) be in a form prescribed by the Secretary; and
       ``(2) contain the following information relating to the 
     fiscal year for which the assistance under this title is to 
     be made available:
       ``(A) Goals and objectives.--A statement of the goals and 
     objectives to be accomplished during the period covered by 
     the plan.
       ``(B) Statement of needs.--A statement of the housing needs 
     of the low-income families served by the Department and the 
     means by which those needs will be addressed during the 
     period covered by the plan, including--
       ``(i) a description of the estimated housing needs and the 
     need for assistance for the low-income families to be served 
     by the Department, including a description of the manner in 
     which the geographical distribution of assistance is 
     consistent with--

       ``(I) the geographical needs of those families; and
       ``(II) needs for various categories of housing assistance; 
     and

       ``(ii) a description of the estimated housing needs for all 
     families to be served by the Department.
       ``(C) Financial resources.--An operating budget for the 
     Department of Hawaiian Home Lands, in a form prescribed by 
     the Secretary, that includes--
       ``(i) an identification and a description of the financial 
     resources reasonably available to the Department to carry out 
     the purposes of this title, including an explanation of the 
     manner in which amounts made available will be used to 
     leverage additional resources; and
       ``(ii) the uses to which the resources described in clause 
     (i) will be committed, including--

       ``(I) eligible and required affordable housing activities; 
     and
       ``(II) administrative expenses.

       ``(D) Affordable housing resources.--A statement of the 
     affordable housing resources currently available at the time 
     of the submittal of the plan and to be made available during 
     the period covered by the plan, including--
       ``(i) a description of the significant characteristics of 
     the housing market in the State of Hawaii, including the 
     availability of housing from other public sources, private 
     market housing;
       ``(ii) the manner in which the characteristics referred to 
     in clause (i) influence the decision of the Department of 
     Hawaiian Home Lands to use grant amounts to be provided under 
     this title for--

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

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

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

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

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

       ``(vi) a description of--

       ``(I) any existing or anticipated housing rehabilitation 
     programs necessary to ensure the long-term viability of the 
     housing to be carried out during the period covered by the 
     plan; and

[[Page 4753]]

       ``(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.--
       ``(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

[[Page 4754]]

     `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 enactment of the 
     American Homeownership and Economic Opportunity Act of 2000.

     ``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

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

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

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

     ``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

       ``(a) In General.--Affordable housing activities under this 
     section are activities conducted in accordance with the 
     requirements of section 811 to--
       ``(1) develop or to support affordable housing for rental 
     or homeownership; or
       ``(2) provide housing services with respect to affordable 
     housing, through the activities described in subsection (b).
       ``(b) Activities.--The activities described in this 
     subsection are the following:
       ``(1) Development.--The acquisition, new construction, 
     reconstruction, or moderate or substantial rehabilitation of 
     affordable housing, which may include--
       ``(A) real property acquisition;
       ``(B) site improvement;
       ``(C) the development of utilities and utility services;
       ``(D) conversion;
       ``(E) demolition;
       ``(F) financing;
       ``(G) administration and planning; and
       ``(H) other related activities.
       ``(2) Housing services.--The provision of housing-related 
     services for affordable housing, including--
       ``(A) housing counseling in connection with rental or 
     homeownership assistance;

[[Page 4755]]

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

     ``SEC. 815. REPAYMENT.

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

     ``SEC. 816. ANNUAL ALLOCATION.

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

     ``SEC. 817. ALLOCATION FORMULA.

       ``(a) Establishment.--The Secretary shall, by regulation 
     issued not later than the expiration of the 6-month period 
     beginning on the date of enactment of the American 
     Homeownership and Economic Opportunity

[[Page 4756]]

     Act of 2000, in the manner provided under section 807, 
     establish a formula to provide for the allocation of amounts 
     available for a fiscal year for block grants under this title 
     in accordance with the requirements of this section.
       ``(b) Factors for Determination of Need.--The formula under 
     subsection (a) shall be based on factors that reflect the 
     needs for assistance for affordable housing activities, 
     including--
       ``(1) the number of low-income dwelling units owned or 
     operated at the time pursuant to a contract between the 
     Director and the Secretary;
       ``(2) the extent of poverty and economic distress and the 
     number of Native Hawaiian families eligible to reside on the 
     Hawaiian Home Lands; and
       ``(3) any other objectively measurable conditions that the 
     Secretary and the Director may specify.
       ``(c) Other Factors for Consideration.--In establishing the 
     formula under subsection (a), the Secretary shall consider 
     the relative administrative capacities of the Department of 
     Hawaiian Home Lands and other challenges faced by the 
     Department, including--
       ``(1) geographic distribution within Hawaiian Home Lands; 
     and
       ``(2) technical capacity.
       ``(d) Effective Date.--This section shall take effect on 
     the date of enactment of the American Homeownership and 
     Economic Opportunity Act of 2000.

     ``SEC. 818. REMEDIES FOR NONCOMPLIANCE.

       ``(a) Actions by Secretary Affecting Grant Amounts.--
       ``(1) In general.--Except as provided in subsection (b), if 
     the Secretary finds after reasonable notice and opportunity 
     for a hearing that the Department of Hawaiian Home Lands has 
     failed to comply substantially with any provision of this 
     title, the Secretary shall--
       ``(A) terminate payments under this title to the 
     Department;
       ``(B) reduce payments under this title to the Department by 
     an amount equal to the amount of such payments that were not 
     expended in accordance with this title; or
       ``(C) limit the availability of payments under this title 
     to programs, projects, or activities not affected by such 
     failure to comply.
       ``(2) Actions.--If the Secretary takes an action under 
     subparagraph (A), (B), or (C) of paragraph (1), the Secretary 
     shall continue that action until the Secretary determines 
     that the failure by the Department to comply with the 
     provision has been remedied by the Department and the 
     Department is in compliance with that provision.
       ``(b) Noncompliance Because of a Technical Incapacity.--The 
     Secretary may provide technical assistance for the 
     Department, either directly or indirectly, that is designed 
     to increase the capability and capacity of the Director of 
     the Department to administer assistance provided under this 
     title in compliance with the requirements under this title if 
     the Secretary makes a finding under subsection (a), but 
     determines that the failure of the Department to comply 
     substantially with the provisions of this title--
       ``(1) is not a pattern or practice of activities 
     constituting willful noncompliance; and
       ``(2) is a result of the limited capability or capacity of 
     the Department of Hawaiian Home Lands.
       ``(c) Referral for Civil Action.--
       ``(1) Authority.--In lieu of, or in addition to, any action 
     that the Secretary may take under subsection (a), if the 
     Secretary has reason to believe that the Department of 
     Hawaiian Home Lands has failed to comply substantially with 
     any provision of this title, the Secretary may refer the 
     matter to the Attorney General of the United States with a 
     recommendation that an appropriate civil action be 
     instituted.
       ``(2) Civil action.--Upon receiving a referral under 
     paragraph (1), the Attorney General may bring a civil action 
     in any United States district court of appropriate 
     jurisdiction for such relief as may be appropriate, including 
     an action--
       ``(A) to recover the amount of the assistance furnished 
     under this title that was not expended in accordance with 
     this title; or
       ``(B) for mandatory or injunctive relief.
       ``(d) Review.--
       ``(1) In general.--If the Director receives notice under 
     subsection (a) of the termination, reduction, or limitation 
     of payments under this Act, the Director--
       ``(A) may, not later than 60 days after receiving such 
     notice, file with the United States Court of Appeals for the 
     Ninth Circuit, or in the United States Court of Appeals for 
     the District of Columbia, a petition for review of the action 
     of the Secretary; and
       ``(B) upon the filing of any petition under subparagraph 
     (A), shall forthwith transmit copies of the petition to the 
     Secretary and the Attorney General of the United States, who 
     shall represent the Secretary in the litigation.
       ``(2) Procedure.--
       ``(A) In general.--The Secretary shall file in the court a 
     record of the proceeding on which the Secretary based the 
     action, as provided in section 2112 of title 28, United 
     States Code.
       ``(B) Objections.--No objection to the action of the 
     Secretary shall be considered by the court unless the 
     Department has registered the objection before the Secretary.
       ``(3) Disposition.--
       ``(A) Court proceedings.--
       ``(i) Jurisdiction of court.--The court shall have 
     jurisdiction to affirm or modify the action of the Secretary 
     or to set the action aside in whole or in part.
       ``(ii) Findings of fact.--If supported by substantial 
     evidence on the record considered as a whole, the findings of 
     fact by the Secretary shall be conclusive.
       ``(iii) Addition.--The court may order evidence, in 
     addition to the evidence submitted for review under this 
     subsection, to be taken by the Secretary, and to be made part 
     of the record.
       ``(B) Secretary.--
       ``(i) In general.--The Secretary, by reason of the 
     additional evidence referred to in subparagraph (A) and filed 
     with the court--

       ``(I) may--

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

       ``(II) shall file--

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

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

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

     ``SEC. 819. MONITORING OF COMPLIANCE.

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

     ``SEC. 820. PERFORMANCE REPORTS.

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

[[Page 4757]]

     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. 724. LOAN GUARANTEES.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Department of hawaiian home lands.--The term 
     `Department of Hawaiian Home Lands' means the agency or 
     department of the government of the State of Hawaii that is 
     responsible for the administration of the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108 et seq.).
       ``(2) Eligible entity.--The term `eligible entity' means a 
     Native Hawaiian family, the Department of Hawaiian Home 
     Lands, the Office of Hawaiian Affairs, and private nonprofit 
     or private for-profit organizations experienced in the 
     planning and development of affordable housing for Native 
     Hawaiians.
       ``(3) Family.--The term `family' means 1 or more persons 
     maintaining a household, as the Secretary shall by regulation 
     provide.
       ``(4) Guarantee fund.--The term `Guarantee Fund' means the 
     Native Hawaiian Housing Loan Guarantee Fund established under 
     subsection (i).
       ``(5) Hawaiian home lands.--The term `Hawaiian Home Lands' 
     means lands that--
       ``(A) have the status of Hawaiian Home Lands under section 
     204 of the Hawaiian Homes Commission Act (42 Stat. 110); or
       ``(B) are acquired pursuant to that Act.
       ``(6) Native hawaiian.--The term `Native Hawaiian' means 
     any individual who is--
       ``(A) a citizen of the United States; and
       ``(B) a descendant of the aboriginal people, who, prior to 
     1778, occupied and exercised sovereignty in the area that 
     currently constitutes the State of Hawaii, as evidenced by--
       ``(i) genealogical records;
       ``(ii) verification by kupuna (elders) or kama'aina (long-
     term community residents); or
       ``(iii) birth records of the State of Hawaii.
       ``(7) Office of hawaiian affairs.--The term `Office of 
     Hawaiian Affairs' means the entity of that name established 
     under the constitution of the State of Hawaii.
       ``(b) Authority.--To provide access to sources of private 
     financing to Native Hawaiian families who otherwise could not 
     acquire housing financing because of the unique legal status 
     of the Hawaiian Home Lands or as a result of a lack of access 
     to private financial markets, the Secretary may guarantee an 
     amount not to exceed 100 percent of the unpaid principal and 
     interest that is due on an eligible loan under subsection 
     (b).
       ``(c) Eligible Loans.--Under this section, a loan is an 
     eligible loan if that loan meets the following requirements:
       ``(1) Eligible borrowers.--The loan is made only to a 
     borrower who is--
       ``(A) a Native Hawaiian family;
       ``(B) the Department of Hawaiian Home Lands;
       ``(C) the Office of Hawaiian Affairs; or
       ``(D) a private nonprofit organization experienced in the 
     planning and development of affordable housing for Native 
     Hawaiians.
       ``(2) Eligible housing.--
       ``(A) In general.--The loan will be used to construct, 
     acquire, or rehabilitate not more than 4-family dwellings 
     that are standard housing and are located on Hawaiian Home 
     Lands for which a housing plan described in subparagraph (B) 
     applies.
       ``(B) Housing plan.--A housing plan described in this 
     subparagraph is a housing plan that--
       ``(i) has been submitted and approved by the Secretary 
     under section 803 of the Native American Housing Assistance 
     and Self-Determination Act of 1996; and
       ``(ii) provides for the use of loan guarantees under this 
     section to provide affordable homeownership housing on 
     Hawaiian Home Lands.
       ``(3) Security.--The loan may be secured by any collateral 
     authorized under applicable Federal or State law.
       ``(4) Lenders.--
       ``(A) In general.--The loan shall be made only by a lender 
     approved by, and meeting qualifications established by, the 
     Secretary, including any lender described in subparagraph 
     (B), except that a loan otherwise insured or guaranteed by an 
     agency of the Federal Government or made by the Department of 
     Hawaiian Home Lands from amounts borrowed from the United 
     States shall not be eligible for a guarantee under this 
     section.
       ``(B) Approval.--The following lenders shall be considered 
     to be lenders that have been approved by the Secretary:
       ``(i) Any mortgagee approved by the Secretary for 
     participation in the single family mortgage insurance program 
     under title II of the National Housing Act (12 U.S.C.A. 1707 
     et seq.).
       ``(ii) Any lender that makes housing loans under chapter 37 
     of title 38, United States Code, that are automatically 
     guaranteed under section 3702(d) of title 38, United States 
     Code.
       ``(iii) Any lender approved by the Secretary of Agriculture 
     to make guaranteed loans for single family housing under the 
     Housing Act of 1949 (42 U.S.C.A. 1441 et seq.).
       ``(iv) Any other lender that is supervised, approved, 
     regulated, or insured by any agency of the Federal 
     Government.
       ``(5) Terms.--The loan shall--
       ``(A) be made for a term not exceeding 30 years;
       ``(B) bear interest (exclusive of the guarantee fee under 
     subsection (d) and service charges, if any) at a rate agreed 
     upon by the borrower and the lender and determined by the 
     Secretary to be reasonable, but not to exceed the rate 
     generally charged in the area (as determined by the 
     Secretary) for home mortgage loans not guaranteed or insured 
     by any agency or instrumentality of the Federal Government;
       ``(C) involve a principal obligation not exceeding--
       ``(i) 97.75 percent of the appraised value of the property 
     as of the date the loan is accepted for guarantee (or 98.75 
     percent if the value of the property is $50,000 or less); or
       ``(ii) the amount approved by the Secretary under this 
     section; and
       ``(D) involve a payment on account of the property--

[[Page 4758]]

       ``(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 1 of the following manners:

       ``(I) Foreclosure.--

       ``(aa) In general.--The holder of the certificate may 
     initiate foreclosure proceedings (after providing written 
     notice of that action to the Secretary).
       ``(bb) Payment.--Upon a final order by the court 
     authorizing foreclosure and submission to the Secretary of a 
     claim for payment under the guarantee, the Secretary shall 
     pay to the holder of the certificate the pro rata portion of 
     the amount guaranteed (as determined pursuant to subsection 
     (f)) plus reasonable fees and expenses as approved by the 
     Secretary.
       ``(cc) Subrogation.--The rights of the Secretary shall be 
     subrogated to the rights of the holder of the guarantee. The 
     holder shall assign the obligation and security to the 
     Secretary.

       ``(II) No foreclosure.--

       ``(aa) In general.--Without seeking foreclosure (or in any 
     case in which a foreclosure proceeding initiated under clause 
     (i) continues for a period in excess of 1 year), the holder 
     of the guarantee may submit to the Secretary a request to 
     assign the obligation and security interest to the Secretary 
     in return for payment of the claim under the guarantee. The 
     Secretary may accept assignment of the loan if the Secretary 
     determines that the assignment is in the best interest of the 
     United States.
       ``(bb) Payment.--Upon assignment, the Secretary shall pay 
     to the holder of the guarantee the pro rata portion of the 
     amount guaranteed (as determined under subsection (f)).
       ``(cc) Subrogation.--The rights of the Secretary shall be 
     subrogated to the rights of the holder of the guarantee. The 
     holder shall assign the obligation and security to the 
     Secretary.
       ``(B) Requirements.--Before any payment under a guarantee 
     is made under subparagraph (A), the holder of the guarantee 
     shall exhaust all reasonable possibilities of collection. 
     Upon payment, in whole or in part, to the holder, the note or 
     judgment evidencing the debt shall be assigned to the United 
     States and the holder shall have no further claim against the 
     borrower or the United States. The Secretary shall then take 
     such action to collect as the Secretary determines to be 
     appropriate.
       ``(2) Limitations on liquidation.--
       ``(A) In general.--If a borrower defaults on a loan 
     guaranteed under this section that involves a security 
     interest in restricted Hawaiian Home Land property, the 
     mortgagee or the Secretary shall only pursue liquidation 
     after offering to transfer the account to another eligible 
     Hawaiian family or the Department of Hawaiian Home Lands.
       ``(B) Limitation.--If, after action is taken under 
     subparagraph (A), the mortgagee or the Secretary subsequently 
     proceeds to liquidate the account, the mortgagee or the 
     Secretary shall not sell, transfer, or otherwise dispose of 
     or alienate the property described in subparagraph (A) except 
     to another eligible Hawaiian family or to the Department of 
     Hawaiian Home Lands.
       ``(j) Hawaiian Housing Loan Guarantee Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     of the United States the Hawaiian Housing Loan Guarantee Fund 
     for the purpose of providing loan guarantees under this 
     section.
       ``(2) Credits.--The Guarantee Fund shall be credited with--
       ``(A) any amount, claims, notes, mortgages, contracts, and 
     property acquired by the Secretary under this section, and 
     any collections and proceeds therefrom;
       ``(B) any amounts appropriated pursuant to paragraph (7);
       ``(C) any guarantee fees collected under subsection (d); 
     and
       ``(D) any interest or earnings on amounts invested under 
     paragraph (4).

[[Page 4759]]

       ``(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.''.
       Page 166, in line 10, strike the dash and all that follows 
     through ``general.'' in line 11.
       Page 166, strike lines 17 through 25.
       Strike line 25 on page 173, and all that follows through 
     line 2 on page 174, and insert the following:
       ``(1) to protect the quality, durability, safety, and 
     affordability of manufactured homes;''
       Page 174, strike lines 11 through 13 and insert the 
     following:
       ``(5) to protect residents of manufactured homes with 
     respect to personal injuries and the amount of insurance 
     costs and property damages in manufactured housing, 
     consistent with the other purposes of this section;''.
       Page 176, line 18, before the semicolon insert ``, 
     including the inspection of homes in the plant''.
       Page 176, line 21, strike both commas.
       Strike line 25 on page 176 and all that follows through 
     ``means'' in line 1 on page 177, and insert the following:
       ``(21) `monitoring' means
       Page 177, lines 5 through 7, strike ``recommended by the 
     consensus committee and promulgated in accordance with'' and 
     insert ``promulgated under this title, giving due 
     consideration to the recommendations of the consensus 
     committee as provided in''.
       Page 177, line 10, strike ``; and'' and insert ``.'.''.
       Page 177, strike lines 11 through 13.
       Page 179, line 19, strike ``appoint'' and insert 
     ``recommend''.
       Page 182, lines 12 and 13, strike ``, subject to approval 
     by the Secretary,'' and insert ``by the Secretary, after 
     consideration of the recommendations made''.
       Page 182, line 14, insert a comma after ``organization''.
       Page 182, strike lines 22 through 25 and insert the 
     following:
       ``(C) Disapproval.--The Secretary shall state, in writing, 
     the reasons for failing to appoint any individual recommended 
     under paragraph (2)(A)(ii)(I).
       Page 184, lines 1 and 2, strike ``administering 
     organization in its appointments'' and insert ``Secretary''.
       Page 188, line 20, before the period insert ``in accordance 
     with section 553 of title 5, United States Code''.
       Page 188, line 23, after ``standard'' insert ``in 
     accordance with such section 553''.
       Page 189, line 22, strike ``7'' and insert ``30''.
       Page 193, line 5, after ``regulations'' insert ``and 
     revision to existing regulations''.
       Page 195, strike lines 16 through 22 and insert the 
     following:
       ``(5) Authority to act and emergency.--If the Secretary 
     determines, in writing, that such action is necessary to 
     address an issue on which the Secretary determines that the 
     consensus committee has not made a timely recommendation 
     following a request by the Secretary, or in order to respond 
     to an emergency which jeopardizes the public health or 
     safety, the Secretary
       Page 196, line 3, strike ``emergency''.
       Page 196, line 5, after ``issues'' insert ``the order after 
     notice and an opportunity for public comment in accordance 
     with section 553 of title 5, United States Code,''.
       Page 196, line 12, strike ``of'' and insert ``or''.
       Page 196, line 19, strike ``1104(a)(3)'' and insert 
     ``604(a)(3)''.
       Page 199, line 18, after ``shall'' insert ``to the maximum 
     extent possible, taking into account the factors described in 
     section 604(e),''.
       Page 200, after line 9, insert the following:
       ``(4) Issuance.--The model manufactured home installation 
     standards shall be issued after notice and an opportunity for 
     public comment in accordance with section 553 of title 5, 
     United States Code.
       Strike ``, except that'' in line 20 on page 201, and all 
     that follows through line 2 on page 202, and insert a period.
       Page 206, after line 3, insert the following new section:

     SEC. 1108. PROHIBITED ACTS.

       Section 610(a) (42 U.S.C. 5409(a)) is amended--
       (1) in paragraph (5), by striking ``or'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(7) after the expiration of the period specified in 
     section 605(c)(2)(B), fail to comply with the requirements 
     for the installation program required by section 605 in any 
     State that has not adopted and implemented a State 
     installation program.''.
       Page 207, line 10, strike ``and''.
       Page 207, after line 13, insert the following:
       ``(F) implementing sections 605 and 623; and
       Page 207, strike lines 19 through 23 and insert the 
     following:
       ``(b) Contractors.--When using fees under this section, the 
     Secretary shall ensure that no fewer than 3 separate 
     contracts and 3 separate and independent contractors are 
     retained to carry out monitoring and inspection work and any 
     other work that may be

[[Page 4760]]

     delegated to a contractor under this title; except that the 
     required minimum number of separate contracts and separate 
     and independent contractors shall increase to 4 simultaneous 
     with the latter of--
       ``(1) the issuance by the Secretary of a request for 
     proposals for the implementation of installation programs, 
     and
       ``(2) the issuance by the Secretary of a request for 
     proposals for the implementation of dispute resolution 
     program,
     as provided in this title. The Secretary shall also ensure 
     that no conflict of interest arises from the award of any 
     such contracts.''.
       Page 208, line 17, strike the quotation marks and the last 
     period.
       Page 208, after line 17, insert the following:
       ``(3) Payments to states.--On and after the effective date 
     of the Manufactured Housing Improvement Act, the Secretary 
     shall continue to fund the States having approved State plans 
     in amounts which are not less than the allocated amounts 
     based on the fee distribution system in effect on the day 
     before the effective date of such Act.''.
       Page 208, lines 20 and 21, strike ``5(b)'' each place such 
     term appears and insert ``1105(b)''.
       Page 209, line 19, after the period insert the following: 
     ``The order establishing the dispute resolution program shall 
     be issued after notice and an opportunity for public comment 
     in accordance with section 553 of title 5, United States 
     Code.''.
       Page 210, strike lines 7 through 11 and insert 
     ``paragraph.''.
       Page 211, line 16, after ``awarded'' insert ``after April 
     6, 2000,''.

  The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from 
New York (Mr. Lazio) and a Member opposed each will control 10 minutes.
  The Chair recognizes the gentleman from New York (Mr. Lazio).
  Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, this manager's amendment is the result of some hard 
work that has been referenced by earlier remarks. The manager's 
amendment was created in a bipartisan fashion, helping to improve an 
already good bill, and refining some of the technical aspects of this 
bill.
  It further speaks to the underlying premise of this bill, which is 
that it is about empowerment, it is about more consumer choice, it is 
about lower homeownership costs, it is about stronger communities, and 
it is about opportunity. This manager's amendment includes several 
provisions that further perfect this bill.
  I want to commend all the Members, and particularly the gentleman 
from New York (Mr. LaFalce) and the gentleman from Massachusetts (Mr. 
Frank), as well as the gentleman from Iowa (Mr. Leach) for their help.
  It includes technical changes that affect the neighborhood teacher 
program, the risk sharing demonstration program, and the rural housing 
section of the legislation.
  The amendment expands housing assistance for native Hawaiians by 
extending to them the same types of Federal housing programs available 
to Native Americans and to Alaska natives.
  The amendment adopts changes to the manufactured housing title made 
by HUD to clarify the Secretary's authority over appointments to the 
consensus committee. This is, again, a model framework based on 
discussions between AARP, the Manufactured Housing industry, consumers, 
HUD, and members of the committee.
  It addresses outstanding policy issues raised by the gentleman from 
Massachusetts (Mr. Frank), ranking member, and the Manufactured Housing 
industry concerning States' roles in monitoring manufactured homes and 
the distribution systems of manufactured program fees to States.
  It also adopts certain filed amendments to the legislation, which we 
have been trying to work together with in a bipartisan fashion to meet 
America's need for more homeownership opportunities.
  These include amendments by the gentleman from Texas (Mr. Bentsen) as 
they relate to the selection criteria for the Homeownership Zone Grant 
program, providing that HUD may not reject an applicant who meets the 
selection criteria basically only because the zone is located in an 
unincorporated area.
  The amendment of the gentleman from Ohio (Mr. Traficant) extends 
homeownership counseling statutes through September 30, 2005 that 
require a notice, within 45 days of delinquency, to homebuyers on their 
payment status and provides information about housing counselors in the 
area, a very important amendment.
  The amendment of the gentleman from California (Mr. Baca) includes a 
sense of Congress that the HUD Secretary should consult with other 
agencies to make additional properties available for law enforcement 
officers, teachers, and fire fighters.
  The amendment of the gentlewoman from California (Ms. Pelosi) adds 
pre-kindergarten teachers to be eligible for section 203 for reduced 
down payment for loans for teachers and uniformed municipal employees, 
consistent with similar other provisions in the bill.
  I urge the House to adopt the manager's amendment.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. Is the gentleman from New York (Mr. LaFalce) opposed to 
the amendment?
  Mr. LaFALCE. Mr. Chairman, this manager's amendment has been 
developed in a bipartisan fashion similarly to the main bill itself.
  The CHAIRMAN. Without objection, there apparently being no one to 
claim the time in opposition, the gentleman from New York (Mr. LaFalce) 
is recognized to claim that time.
  There was no objection.
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  I am very pleased that the manager's amendment includes a number of 
important provisions, important especially to the Members on my side of 
the aisle. These include a Pelosi amendment to ensure that pre-
kindergarten teachers are eligible in the same way as all other 
teachers are for the section 203, 1 percent down payment FHA loans; an 
amendment by the gentleman from Texas (Mr. Bentsen) to make sure that 
unincorporated areas are eligible for homeownership zone grants; an 
amendment by the gentleman from Ohio (Mr. Traficant) to extend 
homeownership counseling programs; and an amendment from the gentleman 
from California (Mr. Baca) directing HUD to work with other agencies to 
identify other buildings suitable for homeownership resale.

                              {time}  1145

  I also especially commend the gentleman from Hawaii (Mr. Abercrombie) 
and the gentlewoman from Hawaii (Mrs. Mink) for their amendment, which 
includes making native Hawaiians eligible for the same Federal housing 
programs that Native Americans are currently eligible for; and, of 
course, the gentleman from Massachusetts (Mr. Frank) and the gentleman 
from Indiana (Mr. Roemer), who represents perhaps the headquarters of 
the manufactured housing industry, for shepherding this bill through. 
Even though the gentleman from Indiana (Mr. Roemer) is not a member of 
the committee, his assistance in crafting the legislation was 
invaluable.
  Mr. Chairman, I reserve the balance of my time.
  Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the gentleman from 
Wisconsin (Mr. Green).
  Mr. GREEN of Wisconsin. Mr. Chairman, I thank the gentleman for 
yielding me this time, and I also would urge strong support for the 
manager's amendment. As good as the underlying bill is, and I think the 
bill is solid, I think the manager's amendment is better and makes some 
important improvements.
  Very quickly, two particular programs that are included in the 
manager's amendment that this Member had something to do with. Number 
one, this manager's amendment would create a 3-year pilot project to 
help people with disabilities to use section 8 assistance towards home 
ownership. It creates incentives for employment and home ownership for 
the most underserved portion of the American public, those with 
disabilities.
  Unemployment rates for those with disabilities in America exceeds 70 
percent, and home ownership for people with disabilities is below 5 
percent. This bill takes an important step in breaking that cycle.
  This manager's amendment also has an important pilot project, a 3-
year program, for law enforcement officers. It helps Federal, State and 
local law enforcement officers purchase homes in

[[Page 4761]]

locally designated, locally defined high crime areas.
  This is different than other law enforcement officer programs because 
it turns to local leaders, local officials to designate those areas. 
This will help deter crime. This will help stabilize neighborhoods.
  In so many ways this manager's amendment makes the dream of home 
ownership and stable, sound, solid communities a reality. And again, I 
encourage my colleagues not only to support this amendment and support 
the bill but to go home and talk about it.
  Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentlewoman from 
California (Ms. Lee), a member of the committee.
  Ms. LEE. Mr. Chairman, I thank the gentleman for yielding me this 
time and also for the bipartisan effort to bring this bill forward 
today.
  This is a modest measure. It is an excellent modest measure that 
begins to address a national crisis of housing.
  Moderate- and low-income families deserve the opportunity to realize 
the American Dream of homeownership. And given the high cost of 
housing, this dream is quickly becoming a nightmare in many regions of 
our country. This crisis is so bad that in my district, around the Bay 
Area of Northern California, professional households with incomes near 
$100,000 even face difficult housing choices.
  If these kinds of families are struggling, what does this mean for 
moderate- and low-income families? It means that Congress must do 
better.
  Mr. Chairman, Americans dream of owning our own homes. It rightfully 
gives us a stake in our society. Homeownership allows us to have a 
solid place from which we can accumulate some wealth to care for our 
families, to send our kids to college and to invest in small 
businesses.
  We still have a long way to go in this country. Even though there has 
been an increase in homeownership, there is really an embarrassing gap 
in this land of plenty when we realize that the homeownership rate for 
African Americans is still 20 percent below the national average. The 
rate for Hispanic Americans is over 20 percent below the national 
average.
  So this bill will really help us begin to correct the damage 
resulting from our refusal to, I believe, invest in housing in past 
years. Secretary Cuomo is doing the best that he can. But given the 
severe constraints of the Balanced Budget Act, it is difficult to 
imagine how HUD can just maintain, not to mention expand programs where 
there are tight budget caps.
  I urge support of the American Homeownership and Economic Opportunity 
Act.
  Mr. LAZIO. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman from 
Delaware (Mr. Castle), the former governor of Delaware and my mentor 
and friend.
  Mr. CASTLE. Mr. Chairman, I thank the gentleman very much for 
yielding me this time, and I thank him for his comments. I never knew I 
was a mentor until just now, but that is a nice thought too.
  This legislation, which both gentlemen from New York have worked on, 
in my judgment, is as good a piece of legislation as we have had on the 
floor this year for a variety of reasons.
  One is it is bipartisan. It is a piece of legislation which I think 
all of us are proud to be able to support and, hopefully, will get a 
great vote.
  Secondly, I think we all recognize that homeownership is the key 
element to stability in most families, and beyond families, a lot of 
individuals and a lot of others who want to live the American Dream.
  In this day of plenty it is pretty simple to think well, gee, 
homeownership is up, I think it is up to 67 percent now, and we do not 
have to worry about legislation such as this. But when we get behind 
the scenes and start to look at it, we start to see other problems.
  For example in U.S. News and World Report there is an article here, 
In an Age of Plenty a Search for Shelter, and this talks about 
Minneapolis, as I recall, and they have all kinds of problems with 
people in lower income circumstances being able to obtain housing. And 
that is what this bill addresses, and that is what the manager's 
amendment addresses as well.
  So I really congratulate those who have worked on this because they 
have really looked carefully at provisions which are essential to help 
with these problems. And indeed, when we look at those who are on more 
fixed-income circumstances, teachers, firefighters, or police officers, 
these are desirable neighbors in any kind of neighborhood. They are the 
kind of neighbors we want, but sometimes they do not have the means to 
acquire a home, and under this bill they would be able to do it.
  We have gone into various pockets of money which is available at the 
Federal Government level and said we are going to allow that to help 
with the acquisition of homes, which is something we should do. We have 
looked at State and local governments, as well as the Federal 
Government, and said there are barriers and regulations and we need to 
deal with those.
  So many good things have happened. We should support the manager's 
amendment, we should support the underlying legislation, but we should 
also continue, I think, the drive that we all have here now, that we 
feel here today, which is moving ahead with all aspects of looking at 
our public housing laws and other housing opportunities at the Federal 
Government level and giving people the opportunity for homeownership.
  With that, we will introduce all kinds of social improvement in this 
country. It is for that reason that I am highly supportive of the 
legislation, and I would encourage everybody to support the manager's 
amendment and the legislation and, hopefully, we can send it to the 
Senate and have it signed by the President.
  Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Illinois (Ms. Schakowsky), a member of the committee.
  Ms. SCHAKOWSKY. Mr. Chairman, I rise in support of H.R. 1776. I am 
very proud to be a cosponsor of this bipartisan bill, which authorizes 
nearly $7 billion for affordable homeownership and job creation.
  We ought to do this. We are in the midst of the longest economic 
expansion in the history of the United States. Despite this wealth, we 
are leaving too many families behind. Just recently, HUD reported that 
5.4 million households do not have decent and affordable housing, and 
this bill gives us some power to deal with these problems.
  The reauthorized Community Development Block Grant will provide State 
and local governments, like Chicago, funding for economic development 
so we can encourage employers to create jobs in our district. The HOME 
program will provide the city, as well as Chicago-based community 
organizations, such as National People's Action and ACORN, with 
necessary funds to increase homeownership. With this money they can 
rehabilitate dilapidated homes and provide mortgage counseling.
  In short, this bill empowers our neighbors and mayors with the means 
to stabilize and improve our communities.
  I am grateful that the full Committee on Banking and Financial 
Services approved my amendment to assist families that desperately cry 
out for housing and to help assist persons with disabilities who are 
facing foreclosure. I urge support for this legislation.
  Mr. LAZIO. Mr. Chairman, I reserve the balance of my time.
  Mr. LaFALCE. Mr. Chairman, I yield 1\1/4\ minutes to the gentleman 
from Indiana (Mr. Roemer), who has been so concerned about manufactured 
housing.
  Mr. ROEMER. Mr. Chairman, I thank the gentleman for yielding me this 
time, and I will be including for the Record a letter from the 
governors regarding this legislation.
  Mr. Chairman, first of all, I want to thank a lot of people who have 
been working on this issue and who have showed a great deal of insight 
and expertise. Certainly to the chairman, the gentleman from New York 
(Mr. Lazio), who has shown great leadership on this bill. I also want 
to extend my personal thanks to the gentleman from New York (Mr. 
LaFalce) and the gentleman from Massachusetts (Mr. Frank), who

[[Page 4762]]

have shown real sensitivity in trying to increase the amount of people 
in America who will own homes and, under title VII, the manufactured 
housing title of this bill, we look at ways to update a 25-year-old 
code that is not serving consumers, it is not serving regulators, it is 
not serving homeownership, and we are updating that, and I want to 
thank the gentleman from New York (Mr. LaFalce) for that.
  We have heard we are a Nation of achievers and we are certainly a 
Nation of dreamers, and nothing symbolizes the achievement of the 
American Dream more than homeownership. And when we can work together 
in a bipartisan way, with Secretary Cuomo, who has intervened a couple 
of times to keep this discussion of updating title VII going, when we 
have Republicans and Democrats working together, when the Senate has 
passed a similar bill on their side, we are working toward legislation 
that really will enhance consumer protection, will enhance making a 
better product, and will enhance everybody's opportunity to have 
homeownership.
  I really do want to also thank the gentleman from New York (Mr. 
Lazio) for his help on this bill, and the document I referred to 
earlier, Mr. Chairman, I submit for the Record.

                                       Office of the Governor,

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

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

  Mr. LAZIO. Mr. Chairman, I yield 2 minutes to the gentleman from 
Oklahoma (Mr. Coburn).
  Mr. COBURN. Mr. Chairman, I thank the gentlemen from New York for 
yielding me this time, and for three or four specific provisions in 
this bill that I think are great.
  I think the removal of the barriers for housing affordability has 
been great. The regulatory impact analysis, the grants for removing 
regulatory barriers, these are things I see in my own community that 
limit people's ability to achieve housing.
  I think also the title III section 8 homeownership option is a great 
step forward to allow people to get into a home that otherwise was not 
there. The pilot program with that is great as well.
  The transfer of unoccupied and substandard HUD housing is something 
that has been long awaited because it needs to have that option if we 
are in fact going to clean up some of the neighborhoods that we have 
and clean up some of the homes.
  The last thing I am appreciative of is the rural housing 
opportunities that were made, and that is very important to my 
district. I do have some concerns about it, and I would just take a 
moment to say that the gentlewoman from California (Ms. Waters) has an 
amendment, and if we combine her amendment with my second amendment, 
what we do is to enlarge this pie to all Americans to in fact go into 
these neighborhoods and create greater demand and greater assistance to 
raise the level of the neighborhoods.
  I am hopeful as we debate that that we can talk about fairness and 
equal opportunity to all, not just municipal employees and not just 
firefighters and not just policemen but the other significant members 
of the community, including pastors. Because a spiritual component in 
any community is just as important as any other aspect in terms of 
crime, in terms of drug addiction, and in terms of some of the other 
problems we face.
  Mr. LaFALCE. Mr. Chairman, I yield 1 minute to the gentleman from 
Georgia (Mr. Bishop).
  Mr. BISHOP. Mr. Chairman, I rise today in strong support of H.R. 
1776, the American Homeownership and Economic Opportunity Act.
  Today, we are making a monumental step toward supporting those who 
serve our communities in various capacities for whom we are eternally 
grateful. These include our firefighters, police, teachers, rescue 
personnel, and municipal workers.
  I have always been a supporter of the Community Development Block 
Grant program and the Housing Opportunities program. Today, with the 
passage of this bill, I become even a stronger supporter.
  These are some of the worthwhile things that the CDBG programs 
already does: Funding Meals on Wheels, senior citizen centers, 
community centers where low-income children are able to have a safe and 
stimulating environment in which to play.
  Now, CDBG and HOME funds will help make homeownership possible for 
those who are not fortunate enough to have stock options or 401(k) 
programs and all the other perks of the private sector. Let us tell our 
teachers, police officers, firefighters, rescue personnel, and 
municipal workers that we are grateful for what they do, and this is 
our tangible way of showing it.
  This is a great bill, and I urge my colleagues to support it.

                              {time}  1200

  Mr. LAZIO. Mr. Chairman, I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield 1 minute to the 
gentlewoman from Hawaii (Mrs. Mink), who, along with her Hawaii 
colleague, did a great deal to make sure the rights of native Hawaiians 
were protected in this section, and it is in the manager's amendment.
  Mrs. MINK of Hawaii. Mr. Chairman, I appreciate the opportunity to 
just have a minute to express my appreciation to the gentleman from New 
York (Mr. Lazio), the gentleman from Nebreska (Mr. Bereuter), the 
gentleman from Massachusetts (Mr. Frank), and the gentleman from New 
York (Mr. LaFalce) for all of their support in making sure that the 
program for extension of housing assistance to native Hawaiians was 
included in H.R. 1776.
  Mr. Chairman, I rise in strong support of the bill and, most 
particularly,

[[Page 4763]]

because of the manager's amendment. The problem has always been that 
there has been a housing program for native Indians, native Americans, 
which native Hawaiians felt they should have been included, and the 
Alaskan natives, but the native Hawaiians were not included.
  For the first time, because of the manager's amendment and its 
inclusion in H.R. 1776, Native Hawaiian families will have the 
opportunity for Federal assistance in loan guarantees and other forms 
of grants. We have a very unique situation in Hawaii.
  Mr. Chairman, I rise in support of H.R. 1776 and the manager's 
amendment. The amendment has a provision in it that is very important 
to my constituents. The amendment expands housing assistance for native 
Hawaiians by extending to them the same types of federal housing 
programs available to American Indians and Alaska natives. The 
provision authorizes appropriations for block grants for affordable 
housing activities and for loan guarantees for mortgages for owner- and 
renter-occupied housing. It authorizes technical assistance in cases 
where administrative capacity is lacking. The block grants would be 
provided by the Department of Housing and Urban Development to the 
Department of Hawaiian Home Lands of the government of the State of 
Hawaii.
  I thank the gentleman from New York [Mr. Lazio], the gentleman from 
Nebraska [Mr. Bereuter] and the gentleman from Massachusetts [Mr. 
Frank] and Mr. LaFalce of New York for their assistance in 
incorporating the provisions for Native Hawaiian housing in the bill.
  Passage of this bill is critical for the Native Hawaiian communities. 
Within the last several years, three studies have documented the 
housing needs that confront Native Hawaiians who are eligible to reside 
on the Home Lands.
  In 1992, the National Commission on American Indian, Alaska Native, 
and Native Hawaiian Housing issued its final report to Congress, 
``Building the Future: A Blueprint for Change.'' In its study, the 
Commission found that Native Hawaiians had the worst housing conditions 
in the State of Hawaii and the highest percentage of homelessness, 
representing over 30% of the State's homeless population.
  In 1995, the U.S. Department of Housing and Urban Development issued 
a report entitled, ``Housing Problems and Needs of Native Hawaiians.'' 
This report contained the alarming conclusion that Native Hawaiians 
experience the highest percentage of housing problems in the nation--
49%--higher than that of American Indians and Alaska Natives residing 
on reservations (44%) and substantially higher than that of all U.S. 
households (27%). The report also concluded that the percentage of 
overcrowding within the Native Hawaiian population is 36% compared to 
3% for all other U.S. households.
  Also, in 1995, the Hawaii State Department of Hawaiian Home Lands 
published a Beneficiary Needs Study as a result of research conducted 
by an independent research group. This study found that among the 
Native Hawaiian population, the needs of Native Hawaiians eligible to 
reside on the Hawaiian home lands are the most severe. 95% of home 
lands applicants (16,000) were in need of housing, with one-half of 
those applicant households facing overcrowding and one-third paying 
more than 30% of their income for shelter.
  H.R. 1776 will provide eligible low-income Native Hawaiians access to 
Federal housing programs that provide assistance to low-income 
families. Currently, those Native Hawaiians who are eligible to reside 
on Hawaiian home lands but who do not qualify for private mortgage 
loans, are unable to access Federal assistance.
  The provisions for Native Hawaiian housing assistance are identical 
to those contained in S. 225, which passed the other body on November 
5, 1999. S. 225 was introduced by the two Senators from Hawaii. That 
legislation in turn is identical to S. 109 which passed the other body 
in the 105th Congress. It is gratifying that the House will now pass 
the same language. I look forward to the enactment of this legislation 
that is so important to the native people of Hawaii.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield 1 minute to the 
gentleman from California (Mr. Becerra).
  Mr. BECERRA. Mr. Chairman, I thank the gentleman for yielding me the 
minute.
  Mr. Chairman, I rise in support of H.R. 1776, and I applaud the 
gentleman from New York (Chairman Lazio) and the ranking member, the 
gentleman from New York (Mr. LaFalce), and all the members of the 
committee for the work they have done to increase homeownership for 
American working families.
  I am especially heartened to see that the manager's amendment expands 
the eligibility for the Teacher Next Door program to include law 
enforcement officers and fire fighters and other safety personnel; that 
program which has been renamed the Community Partners Next Door 
program, which offers HUD-foreclosed homes to these individuals at a 50 
percent discount, will go a long way not only in increasing 
homeownership, but also in helping these communities have professionals 
and role models available and living in their communities.
  I would like to work with the gentleman from New York (Chairman 
Lazio) and the gentleman from New York (Mr. LaFalce) and the members of 
the committee in trying to, perhaps, expand the program a bit more to 
increase the pool of homes that would be made available. Only 4,000 of 
the 45,000 HUD-foreclosed homes would be available at this point under 
the program.
  I think there is work that we can do to try to expand the pool of 
homes beyond the 4,000 so that more than of the 4 million or so people 
who qualify could be available. I look forward to working with the 
committee. And I request a yes vote.
  Mr. FRANK of Massachusetts. Mr. Chairman, how much time is remaining 
on both sides?
  The CHAIRMAN. The gentleman from Massachusetts (Mr. Frank) has 2\1/4\ 
minutes remaining. The gentleman from New York (Mr. Lazio) has 30 
seconds remaining.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield 1 minute to the 
gentleman from Rhode Island (Mr. Weygand).
  Mr. WEYGAND. Mr. Chairman, I want to thank all Members, particularly, 
the gentleman from New York (Mr. LaFalce), our ranking member, and the 
gentleman from Massachusetts (Mr. Frank), and also the gentleman from 
New York (Mr. Lazio), our chairman, for the work they have done on H.R. 
1776.
  I rise today in support of the bill and the manager's amendment, but 
I also want to talk about one particular aspect that was really not 
fully addressed in committee that I hope will be addressed during the 
committees later on during this process.
  Mr. Chairman, there is a composition of a consensus committee that is 
set up within this bill which is dealing with manufactured housing. The 
concept of this consensus committee is to put together consumers, 
industry experts, and government officials who advise HUD on safety 
standards and regulations. Unfortunately, there was one group of 
individuals that was left out of this consensus committee that I hope 
will be considered later on. They are the design professionals, the 
builders and the building inspectors, who are so vital in making sure 
there are safeguards and industry standards complied with during 
manufactured housing.
  We hope that as the bill moves through the process, they will be 
considered and added to the bill. I thank the chairman for his 
consideration.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield the remaining time 
to the gentlewoman from North Carolina (Mrs. Clayton).
  Mrs. CLAYTON. Mr. Chairman, I thank the gentleman for yielding me the 
time.
  Mr. Chairman, I rise in support of this timely and urgently needed 
legislation. This bill promotes homeownership, the ultimate American 
dream, and deserves our support.
  Our economy is experiencing a historic boom; but for many, the rising 
tide of prosperity has failed to lift their boats.
  This bill can help to close a growing income and wealth gap that is 
creating two Americas. Homeownership is the single most important asset 
for wealth accommodation. Yet, in the past decade, the percentage of 
homeownership relating to wealth accumulation has declined almost by 10 
percent.
  Recently, there have been record lows that the mortgage interest 
rates have been going down; but actually, homeownership between lower-
income

[[Page 4764]]

persons has been going down as well. It is not true that affordability 
is there for low and moderate income. This bill makes it possible.
  Mr. Chairman, I am extremely pleased that the manager's provision has 
a provision in there providing homeownership opportunity for those who 
live in public housing, using section 8 as a part of the down payment 
and mortgage assistance. This is a provision that the Congressional 
Black Caucus has strongly supported, and I want to urge and thank you 
for all of your consideration in this bill. I urge a yes vote.
  Mr. Chairman, I rise in support of this timely and urgently needed 
legislation. This bill promotes homeownership--the ultimate American 
Dream--and deserves our support.
  Our economy is experiencing an historic boom. But, for many, this 
rising tide of prosperity has failed to lift their boats. This bill can 
help to close the growing income and wealth gap that is creating Two 
Americas.
  Homeownership is the single most important asset for wealth. Yet, in 
the past decade, the percentage of owner-occupied housing as it relates 
to all assets has declined by close to ten percent.
  Recently, there have been record lows in mortgage interest rates, 
leaving many to believe that housing in the United States is more 
affordable than ever. That is not true.
  Despite lower mortgage rates, fewer people are able to afford to 
purchase homes. That is principally because income growth for the poor 
and working poor has been weak. This group of Americans are ``cost-
burdened'' under H.U.D. standards. That is, they spend more than thirty 
percent of their income for housing. The poor and working poor thus 
find themselves on a treadmill to nowhere when it comes to breaking 
into home ownership.
  This bill can help reverse that trend.
  There are many good provisions in the bill--such as raising the loan 
amount for Rural Housing; facilitating ownership opportunities for our 
police, firefighters, teachers and other municipal employees; and 
assisting our seniors and the disabled in becoming owners.
  However, I would like to focus my remarks on one of its most 
outstanding features. The bill improves the manner in which we spend 
money for housing programs.
  Under the Section 8 Program, we have had generations of families, 
dislocated from society, isolated in public housing and, very often, 
dependent upon the government to provide them with a relatively decent 
place to live. This bill allows Public Housing Authorities to use 
Section 8 funds to provide a suitable amount of cash assistance that 
can be used to help finance homes. By doing this, these families can 
begin the process of reducing their reliance on government and take the 
first step toward accumulating equity and wealth.
  Home ownership builds healthy communities. Home ownership instills 
strength and pride in families. Home ownership provides dignity. When 
one owns a home, they are more likely to take care of it, maintain it 
and keep it clean and presentable.
  This is a good bill, Mr. Chairman, with bi-partisan support. I urge 
its passage.
  Mr. LAZIO. Mr. Chairman, I yield 30 seconds to the distinguished 
gentleman from Missouri (Mr. Blunt), the chief deputy whip.
  Mr. BLUNT. Mr. Chairman, I thank the gentleman for yielding me the 
time.
  Mr. Chairman, I wish I had more time to talk about this great bill 
and the manager's amendment that perfects it in an even better way. 
This is about homeownership. It is about choice. I served for a number 
of years on the Missouri Housing Development Commission. There is no 
higher point in a family's life than that moment when they own their 
home.
  We are building in the 7th Congressional District in Missouri this 
year a Habitat for Humanity, a house that Congress built. There is no 
better day for a family when they get to see their own efforts make 
another step towards homeownership. This gives flexibility. It does the 
thing that we need to do to allow families to have the dream that they 
want to have.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from New York (Mr. Lazio).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider Amendment No. 2 printed 
in House Report 106-562.


                 Amendment No. 2 Offered by Mr. Coburn

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

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

  The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from 
Oklahoma (Mr. Coburn) and the gentleman from New York (Mr. LaFalce) 
each will control 10 minutes.
  The Chair recognizes the gentleman from Oklahoma (Mr. Coburn).
  Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I have listened this morning as speaker after speaker 
has come to this floor to discuss how important this bill is, to 
provide the necessary assistance to allow city employees to live where 
they work, and I would agree with that. I think that is an important 
consideration.
  I have a question for my colleagues. Is it not also equally important 
that factory workers, union members, small businesses owners, Federal 
employees, the clergy, and nonprofit employees live where they work? 
The same help provided under this bill to municipal employees is not 
provided to any of these individuals that I listed.
  If we are facing the housing crisis that we described, which I 
believe that we may be, then why help just some individuals? Why not 
help them all? Why are some Americans more worthy of receiving Federal 
housing assistance than others? This amendment is about fairness.
  I want to walk through with my colleagues for a minute who benefits 
under this law and who does not. Who qualifies for government-funded 
down payment assistance? Closing costs, support mortgage? Anyone, 
provided they make less than 80 percent, that is what the answer is. 
Local government employees making up to 115 percent of area median 
income or 150 percent in areas with high housing costs, what is the 
lowest down payment an individual can make to qualify for an FHA loan 
under the current law? Under H.R. 1776, 3 percent of the total purchase 
price, that is the current law, or 1 percent for teachers, fire 
fighters, rescue personnel, or law enforcement officers, under the new 
bill.
  At what price can you buy a HUD home? 100 percent of appraised value. 
Under this new bill, 50 percent if you are a teacher, a fire fighter, 
rescue personnel, or a law enforcement officer; but that is not applied 
to you if you are the union worker building the home in that area or if 
you are the preacher that has a community church in that area. That is 
not forwarded to you.
  I believe that this is a question about fairness. This amendment is 
designed to strike all but the 50 percent discounts that are directed 
in this bill.
  Mr. Chairman, I reserve the balance of my time.
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume. 
Mr. Chairman, I rise in opposition to the Coburn amendment.
  First, I would seek clarification. Is this Coburn Amendment No. 21 
that strikes section 203 from the bill? It is.
  This is not the amendment which would expand and extend it? Very 
good.
  The Coburn amendment before us, and the gentleman has two, but this 
one would strike the provision which authorizes FHA 1 percent down 
payment loans and deferred and ultimately forgivable upfront premiums 
for teachers, policeman, and firemen buying a home in the school 
district or jurisdiction that employs them.
  Section 203 incorporates the provisions of H.R. 3884, the bill that I 
had introduced, which is entitled the Homeownership Opportunities for 
Uniform Services and Educators Act, also known as the HOUSE Act. This 
bill, the provision that the Coburn amendment would strike, is 
supported by the Fraternal Order of Police, the National Education 
Association, the American Federation of Teachers, and the American 
Association of School Administrators.
  Let us listen to what the Congressional Budget Office, or CBO, has to 
say about Section 203, which the

[[Page 4765]]

Coburn amendment would strike. The CBO has concluded that section 203 
will result in 125,000 additional FHA mortgages for teachers, 
policemen, and firemen over the next 5 years.
  CBO also concludes that the provision will raise $162 million over 
the next 5 years. If Members vote for the Coburn amendment, they would 
vote to deny homeownership opportunities for 125,000 teachers, 
policemen, and firemen; and you would vote to reduce the Federal budget 
surplus by $162 million.
  Is there any basis for supporting this amendment because of concerns 
about FHA? Absolutely not. A recently completed independent audit of 
FHA found that FHA makes billions of dollars a year in profits for the 
Federal Government and that the net worth of the FHA increased by $5 
billion in the last 12 months, to a record net worth of $16 billion, 
many times the congressionally required capital standard for FHA.
  Is there an argument that affordable low down payment loans for low- 
and moderate-income public servants do not serve a worthwhile purpose? 
No. I believe that the great majority of Members in this House believe 
that the teachers who educate our children, the policemen who keep us 
safe, the firemen who protect our homes from property damage, injury 
and death, play a critical role in our local communities. And 
especially high-cost areas, school districts, police departments, and 
fire departments are finding it increasingly difficult to recruit and 
retain qualified individuals; or when they can, these individuals may 
not be able to live in the local community because of the barrier of 
rising home prices and high down payment requirements.
  Section 203 provides new opportunities to overcome this down payment 
hurdle, opportunities that the CBO says will not hurt, but will, in 
fact, help the taxpayer.
  Mr. Chairman, I would strongly urge Members to vote no on the Coburn 
amendment and preserve these critical provisions in the bill and 
increase the surplus to the Federal Government.
  Mr. COBURN. Mr. Chairman, I yield 2 minutes to the gentleman from 
South Carolina (Mr. Sanford).
  Mr. SANFORD. Mr. Chairman, I thank the gentleman for yielding me the 
time.
  Mr. Chairman, I would say this is a well-intentioned bill; but 
without the Coburn amendment which corrects a number of fatal flaws, I 
think it is, in fact, fatally flawed. And I would say that for a couple 
of different reasons. I would say, first of all, if we look at the way 
the Coburn amendment corrects the bill, it helps us to focus, because 
as it is now configured with 150 percent of median income the 
threshold, what that means is we have a worker in Fairfax County, 
Virginia, making $50,000 or $60,000 subsidized in the purchase of their 
home by somebody making $12,000 or $18,000 in Yamasee, South Carolina, 
which is in the neck of the woods where I grew up, where frankly there 
is not a whole lot of money to go around. So it loses focus on helping 
those in need.
  Two, I think it encourages risk. It is very easy to spend somebody 
else's money; but by moving from 3 percent down to 1 percent, in terms 
of the amount of your own money you have to have in the deal, you 
frankly encourage people to, in essence, go out and take options on 
homes. These are not purchases but options. And I would say of most 
concern for me is that this bill supposedly is about recruiting and 
retaining EMS workers, firefighters, teachers, et cetera; but, in fact, 
it will have the reverse effect.

                              {time}  1215

  It is going to encourage job rotation. I can envision the day, if 
this bill goes through without this correcting amendment, when we will 
be watching a ``60 Minutes'' special about the policeman or the 
firefighter who switched jobs every 2 months, bought himself a 
different FHA house and because he could buy it for 50 percent of 
appraised value, he was buying $100,000 houses for $50,000 and he was 
making $300,000 flipping houses by moving jobs rather than making the 
pay that he was supposed to be earning as a firefighter or an EMS 
worker. It is going to have the reverse effect in terms of job rotation 
and retaining of workforce.
  Mr. LaFALCE. Mr. Chairman, I yield such time as he may consume to the 
gentleman from New York (Mr. Lazio).
  Mr. LAZIO. Mr. Chairman, let me just say I have had many discussions 
with the gentleman from Oklahoma for whom I have respect. I know he 
brings this amendment in all good faith in an attempt to strengthen the 
bill. As he has already outlined, it has a number of very positive 
aspects to it. I am going to regretfully oppose this amendment because 
I think it dilutes one of the very important tools that we are 
providing to local communities, to provide them with the flexibility of 
meeting the needs of both attracting and retaining people who are 
providing critical services.
  The idea of making sure that we can offer incentives to teachers who 
would otherwise not be able to own their own home to stay in the 
community is a very positive thing to serve as a role model or a 
mentor. The idea that we would provide an incentive for a police 
officer who is patrolling the local area to actually live in the local 
area and raise their family when they have a stake in it is a very 
positive aspect of this bill.
  What we are saying here is we are not forcing anybody to do it, we 
are giving local communities the ability to control, the flexibility to 
try and fashion their own programs. I would say the same is true as 
well with firefighters and others who provide critical municipal 
services.
  What we are trying to do is two things here, Mr. Chairman: One is to 
boost homeownership opportunities, to get more people into homes, to 
have more Americans sharing the American dream, and also strengthening 
America's communities by building that social capital.
  But we have got to do that in a balanced way. We cannot undermine the 
basic targeting provisions. We cannot fall victim to criticism that 
somehow we are shifting our resources to the very high income. But we 
have got to recognize that there are high cost areas where teachers and 
police officers and firefighters cannot afford to live without a little 
Federal help. We want to give them a little Federal help without 
undermining the FHA program. This is exactly what the gentleman from 
New York (Mr. LaFalce) has said.
  I would add, in addition, to what my good friend from South Carolina 
mentioned. It would be fraudulent, it would be against the law for 
somebody to game this system. They would be subject to criminal 
penalties to do that. That will not be permitted. That will not be 
permitted for somebody to be able to buy a home every 3 months and turn 
it over.
  Mr. SANFORD. Mr. Chairman, will the gentleman yield?
  Mr. LAZIO. I yield to the gentleman from South Carolina.
  Mr. SANFORD. Mr. Chairman, I think we could debate whether or not an 
individual would be gaming the system based on what the Secretary 
eventually came out in terms of regulation behind this bill. But I 
think there is a larger issue here which is quite simple and, that is, 
if this bill goes through without this correcting amendment, you could 
literally buy a house for 50 cents on the dollar, for half price. You 
could buy it for half of appraised value. Is that not correct?
  Mr. LAZIO. The only thing that the gentleman I think is addressing is 
the 1 percent down payment option.
  Mr. SANFORD. That is incorrect.
  Mr. LAZIO. That is what is stricken in this amendment.
  There is another part of the bill which is not affected by this 
amendment which speaks to homes that are foreclosed homes, HUD-held 
homes that might well be in distressed areas that would permit local 
authorities to sell these homes in distressed areas. Some of these are 
going to be, and this would be totally flexible. It is not mandatory.
  Mr. SANFORD. It could be in the most distressed area or it could be 
in the most affluent area.
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  Let me simply say that I believe the gentleman from South Carolina in 
all

[[Page 4766]]

his remarks was addressing an amendment and a provision that was 
something other than the amendment and provision in question.
  Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
  This amendment does not delete the 50 percent benefit of purchasing a 
HUD home at 50 percent. Let me clarify that.
  Let me read what the American Federation of State, County and 
Municipal Workers say about pay: ``It is clear that compensation 
packages between the private sector and public sector at the State and 
local level is highly competitive and does not favor one over the 
other.''
  By the union's own admission, they are competitive in their salaries. 
I do not question the intention of both gentlemen from New York. Their 
motives are pure in what they are trying to accomplish. What I say is 
what they are accomplishing is entirely unfair to the people who are 
paying the taxes that will make up for the 50 percent discount that 
goes with that.
  If this program is so good for teachers, so good for the FHA, so good 
for improving the surplus, then I am sure that if they deny this 
amendment, they would want to support the other one, that expands that 
to clergy, that expands it to union members, expands it to the 
carpenter who builds the house when the carpenter who works for the 
city can buy the house. I am sure they would want to support that.
  The next amendment that I am bringing up in terms of trying to 
correct this, I do not disagree with their motivation, but would expand 
this pie. And if we create 150,000 new mortgages with their amendment, 
we would create 300,000 if we expand the pie. What we would do is we 
would put it on an even basis. If we are going to pick winners, let us 
pick everybody to be a winner. Let us allow everyone the same 
opportunity.
  Mr. Chairman, I reserve the balance of my time.
  Mr. LaFALCE. Mr. Chairman, I yield the balance of my time to the 
gentleman from Massachusetts (Mr. Frank).
  The CHAIRMAN. The gentleman from Massachusetts is recognized for 1\3/
4\ minutes.
  Mr. FRANK of Massachusetts. Mr. Chairman, the major reason for 
differentiation is the nexus between municipal employment and the 
municipality. We have in fact many municipalities which have decided to 
impose residency requirements. They require that certain employees live 
in the city. Part of the impetus for this legislation is the increasing 
problem when people are faced with an inconsistent set of demands.
  On the one hand they are legally ordered to live in the city, and on 
the other hand they cannot afford it. It is not my understanding that 
cities order other people to live there. The people who would be 
covered if the gentleman from Oklahoma's expanded amendment were 
adopted are not subject to a requirement of municipal residency nor has 
anyone thought that there was a logical reason to do that.
  Mr. COBURN. Mr. Chairman, will the gentleman yield?
  Mr. FRANK of Massachusetts. I yield to the gentleman from Oklahoma.
  Mr. COBURN. Mr. Chairman, the only question I have is the Federal 
Government did not set any mandates on any city that their employees be 
a resident.
  Mr. FRANK of Massachusetts. Right. I understand the gentleman's 
question. That is true. Cities, however, have done that. The fact that 
a mandate was not imposed by the Federal Government does not invalidate 
it in my mind. I believe cities have the right to make these judgments.
  Independent of this legislation, many cities decided in the 
democratic process that governs those cities that it was helpful to 
have municipal employees living there, that it was helpful to promote 
the interaction, to have the police living there, the teachers living 
there. It was helpful to have these people who perform those important 
services living in the neighborhood.
  This language facilitates that. It is not a general housing aid. It 
is in facilitation of an important municipal policy that they find 
useful to have their employees living in the communities. I am for 
broadening housing aid in general, and I thank the gentleman. I will be 
glad to be with him when the budget comes up so we can increase these 
programs and accommodate the increases he wants to make. But this is 
one with a particular nexus between the city and its employees.
  Mr. COBURN. Mr. Chairman, I yield myself such time as I may consume.
  The gentleman's argument is that the city should not have to live 
with the consequences of their own rules on their own citizens and, 
therefore, the Federal Government should make up that difference. That 
is what we are talking about.
  The question that I would have for the gentleman from New York and 
the gentleman from Massachusetts, if in fact that is true and they do 
not want to support this amendment, then surely they will consider the 
next amendment. The reason that that is, is because if in fact we are 
going to take the premise that a city can require people to live within 
their district and then say the housing costs are so high we cannot 
afford to pay to fulfill this rule, that the Federal Government ought 
to come along, is it not fair to create in that mix a broad spectrum of 
people?
  The gentleman from Illinois (Mr. Rush) is going to say it is equally 
important to have a nurse there, a health care professional there. What 
can be wrong with that? Why would we not want to advantage nurses?
  Mr. FRANK of Massachusetts. Mr. Chairman, will the gentleman yield?
  Mr. COBURN. I yield to the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. What is wrong with it is that the budget 
that has been adopted, over the objection of the gentleman who thought 
it was too liberal, does not have enough money. I would be glad to join 
with the gentleman from Oklahoma if he would be willing to put his 
money where his mouth is, if in fact he would allow the program----
  Mr. COBURN. Reclaiming my time, the gentleman from New York (Mr. 
LaFalce) just told us that this would enhance HUD by $5 billion. Would 
enhance. Your own testimony from your side of the argument has already 
said that you will enhance this program by $5 billion according to the 
CBO. So why not allow the gentleman from Illinois' amendment?
  Mr. Chairman, the gentlewoman from California (Ms. Waters) has an 
amendment to bring this back to 80 percent. If we are really concerned 
about fairness and spreading this money out, bring it back to 80 
percent and expand the pot to everybody.
  Expand the pot to the people that are paying the taxes who are not 
going to get any advantage out of it. Let us expand it to the union 
worker who actually builds a house, the union plumber who puts the 
plumbing in the house. He is disadvantaged. It is interesting to note 
that the American Homebuilders Association is opposed to these 
amendments. They are up here lobbying for certain people to be 
advantage when their own employees who are paying the taxes for it will 
get no benefit other than a job.
  Mr. FRANK of Massachusetts. If the gentleman will yield further, I 
thank the gentleman for his strong endorsement of union workers. I am 
sure when Davis-Bacon comes up there will be----
  Mr. COBURN. My union record is not all that bad if the gentleman will 
look at it.
  Mr. FRANK of Massachusetts. The fact is that as you expand this 
program, it is going to cost some more money. I support greater housing 
aid. I would say to the gentleman I am all in favor of this. In fact I 
do not think it should be limited at all by occupation.
  Mr. COBURN. I guess the point is, the testimony is that it is going 
to be enhanced by $5 billion just what we do. And if you really think 
it ought to be broadened, then let us broaden it to everybody. We will 
defeat my first amendment but you support the second one which does 
broaden it and does create fairness in the housing market.
  Mr. FRANK of Massachusetts. If the gentleman will yield further, I am 
in

[[Page 4767]]

partial agreement with the gentleman as to the first amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Oklahoma (Mr. Coburn).
  The amendment was rejected.
  The CHAIRMAN. It is now in order to consider amendment No. 3 printed 
in House Report 106-562.


                  Amendment No. 3 Offered by Mr. Rush

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

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

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

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

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


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

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

                              {time}  1230

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

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

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

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

  Mr. RUSH (during the reading). Mr. Chairman, I ask unanimous consent 
that the modification to the amendment be considered as read and 
printed in the Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Illinois?
  There was no objection.
  The CHAIRMAN. Is there objection to the modification to the amendment 
offered by the gentleman from Illinois (Mr. Rush)?
  Mr. LAZIO. Mr. Chairman, I object.
  The CHAIRMAN. Objection is heard.
  The Chair recognizes the gentleman from Illinois (Mr. Rush) if he 
wishes to proceed on the amendment as introduced.
  Mr. RUSH. Mr. Chairman, I will proceed.
  The CHAIRMAN. Does the gentleman from Illinois (Mr. Rush) wish to 
reserve his time?
  Mr. RUSH. Yes, Mr. Chairman, I will reserve my time.
  Mr. LAZIO. Mr. Chairman, I rise in opposition.
  The CHAIRMAN. The Chair recognizes the gentleman from New York (Mr. 
Lazio).
  Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
  I know that the gentleman from Illinois offers this amendment with 
the best of intentions to try and expand homeownership opportunities 
for nurses, and perhaps because my wife is a nurse and because I work 
closely with nurses on a number of health-related issues, I like to 
think of myself as not insensitive to the need to recruit and retain 
high-quality nurses.
  But we are trying to fashion a balanced approach in this bill, and we 
are trying to speak to dual needs: one is boosting the promise of 
homeownership for people who serve our community in dangerous 
situations, quite often, fire fighters and police officers, people who 
serve our community as mentors and as teachers. We are trying to deal 
with the issue of recruitment, and we are trying to do this in a 
relatively balanced way, which is to say we are not trying to open this 
up to everyone.
  Mr. Chairman, there are a number of different meritorious arguments 
that can be made for different groups that ought to have the additional 
flexibility to be helped to achieve homeownership. There is a lot in 
this bill that does this that will speak to those people. There are a 
lot of things in the bill that will allow nurses of modest income to 
achieve the dream of homeownership.
  However, by expanding the 1 percent provision in this section 203, 
which allows 1 percent down payments beyond the balanced approach that 
was crafted in a bipartisan way, I think we are diluting the support 
that we will have to provide flexibility to local governments. We are 
trying to give mayors and local leaders the tools that they need to 
create magnets for people that serve in those very communities. While 
some nurses may serve in those communities, some nurses may serve in 
other communities. Regional hospitals or tertiary care hospitals are 
different in terms of who they may attract relative to schools where 
the people live in that area, or with respect to police departments 
headquarters, which also deal with the people in that local vicinity.
  Mr. COBURN. Mr. Chairman, will the gentleman yield?
  Mr. LAZIO. I yield to the gentleman from Oklahoma.
  Mr. COBURN. Mr. Chairman, I would ask the gentleman, what about the 
school nurse?
  Mr. LAZIO. Mr. Chairman, reclaiming my time, the provision in this 
bill speaks to both administrators and teachers. That is where the 
crisis is. That is where we are finding that we cannot, as we are 
seeing the explosion in the amount of children coming into our school 
system, fill the need to recruit and retain quality people. We are 
dealing with a situation where, for example, in Atlanta, teachers, 
starting teachers' salaries are $29,000. They cannot get any help for 
homeownership. They can get no help for homeownership, because the 
median income in Atlanta is $22,000; and the law says only the people 
that are at 80 percent of that number or under $20,000 can qualify for 
that. A policeman in Atlanta cannot qualify for homeownership 
assistance.
  So we are saying here that through the various programs, the 1 
percent

[[Page 4768]]

down payment program, through CDBG, through HOME, I know that these are 
not all of the issues that the gentleman from Illinois is raising, that 
we are trying to help provide social capital, a more solid community, 
and an enticement for police officers and for teachers and for fire 
fighters who serve that very community to achieve that dream of 
homeownership.
  So I think because of the overexpansion, I am unfortunately going to 
oppose the gentleman's amendment.
  Mr. RUSH. Mr. Chairman, I yield such time as he may consume to the 
gentleman from New York (Mr. LaFalce), the ranking member of the 
committee.
  Mr. LaFALCE. Mr. Chairman, I would like to associate myself with the 
remarks of the distinguished chairman of the Subcommittee on Housing 
(Mr. Lazio). I would have to oppose this amendment too, but yet I think 
the gentleman from Illinois (Mr. Rush) has a very, very worthy purpose 
in mind; and I would like to work closely with him if this amendment 
goes down in order to try to accomplish his goals and his purpose.
  There are public nurses. There are nurses who work for publicly owned 
hospitals, there are publicly run nursing homes, et cetera; and I do 
not think that if there is such an amendment developed, that it would 
be inconsistent with the purposes that are articulated in the bill.
  Right now, I think that the amendment that is offered is just too 
broadly based and would be inadequately targeted. I thank the 
gentleman.
  Mr. RUSH. Mr. Chairman, I yield 1 minute to the gentleman from 
Oklahoma (Mr. Coburn).
  Mr. COBURN. Mr. Chairman, I just want to point out that the 
gentleman's intent is a good intent, because the gentleman from New 
York just made the argument in Atlanta that if one is a school teacher 
or fire fighter, but if one is a nurse making the same amount of money 
living in the community, one does not have the opportunity.
  We just rejected an amendment, two votes for it on a floor vote, we 
did not ask for a recorded vote, that said this house is overwhelmingly 
decided we are going to subsidize the purchase of homes for municipal 
employees. That is what we have just said.
  So if we are going to do that, why do we not share subsidization with 
the people that are paying the taxes that also need help buying a home 
who would also qualify for that? I believe that is the gentleman's 
point, plus the fact that a nurse in these areas is a qualified health 
professional that would also be of great advantage to the community. So 
what we are saying is the base bill gives us a $5 billion plus up; and 
we are saying, let us make it $300,000. Let us do the rest of the 
homes.
  Mr. RUSH. Mr. Chairman, I yield 1 minute to the gentleman from 
Illinois (Mr. Davis).
  Mr. DAVIS of Illinois. Mr. Chairman, I rise in support of the Rush 
amendment. There are many economically distressed and medically 
underserved communities that find it virtually impossible to recruit 
nurses, virtually impossible. This amendment would provide nurses and 
those communities the same opportunities that we are providing for 
other individuals.
  So I would associate myself with the remarks of the gentleman from 
New York (Mr. LaFalce) that I would hope that we would be able to work 
out an agreement where there can be the encompassing of the intent of 
the gentleman's amendment in final passage of the bill, which is an 
excellent bill; and I commend all of those who worked on it, and 
especially do I commend the committee for the inclusion of the ability 
for public aid, public assistance individuals on section 8 to move 
towards homeownership.
  Mr. RUSH. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I fully support this bill, and I believe that this bill 
is a good bill. I believe this bill could become a better bill if, in 
fact, my amendment was a part of the bill. I, too, represent a 
disadvantaged community on the South Side of the City of Chicago, and I 
know the problem that is caused by the scarcity of nurses in my 
hospitals and in my nursing homes and in other health care facilities. 
This amendment is meant to address this very, very serious problem that 
we are facing, not only in the City of Chicago, but all across this 
Nation. We need to give some incentives to nurses who are committed to 
working in disadvantaged communities.
  Mr. Chairman, I would just like to engage in a colloquy with the 
gentleman from New York (Mr. Lazio), the chairman of the subcommittee, 
and ask him if, in fact, this amendment does get voted down, would he 
please assure me and other Members of the House that he will work with 
the ranking member and myself to make sure that we try to work on this 
particular amendment.
  Today the House will be voting on a bill to increase homeownership 
among low- and moderate-income families, including teachers, police 
officers, firefighters.
  My amendment would simply add nurses to the pool of people who are 
able to benefit from the downpayment and closing costs abatement on 
homes.
  My amendment would allow the Secretary of Health and Human Services 
to define the term nurse. It would also specify that under the bill, 
nurses would be required to live in the jurisdiction where the 
hospital, nursing home or other place of nursing employment is located.
  Many of today's nurses do not want to work in disadvantaged and 
underserved communities and this causes a critical shortage in these 
areas.
  Also, because of managed care cuts and the growing health needs of an 
aging population there is a shortage of skilled nurses in many of our 
communities.
  When hospitals cut nursing jobs, many leave the profession and fewer 
students pursue nursing degrees.
  Another factor contributing to fewer skilled nurses is the aging 
nursing population: the average age of all registered nurses nationally 
was 44 years in 1996. More than 62 percent of RNs are age 40 or older. 
In some communities starting salaries for nurses range from $14,000 to 
$20,000.
  Mr. Chairman, I urge my colleagues on both sides of the aisle to 
support this amendment.
  The CHAIRMAN. The time of the gentleman from Illinois (Mr. Rush) has 
expired.
  The gentleman from New York (Mr. Lazio) has 1\1/2\ minutes remaining.
  Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
  In answer to the gentleman from Illinois's comments, I very much 
appreciate the good faith in which the gentleman from Illinois has 
brought this amendment. I would very much love to help nurses and other 
people in health care service, especially those who are employed by 
municipalities and are serving in that very same community.
  I would say to the gentleman that I would be happy to work with the 
gentleman and with the ranking member to see if we can identify some 
means of providing the kind of support that the gentleman has raised, 
whether it is a rental or homeownership, but to provide some support 
for nurses and other people who are health care professionals as time 
goes on. I do not think this is the right forum for it, but I would be 
happy to work with the gentleman.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Illinois (Mr. Rush).
  The amendment was rejected.
  The CHAIRMAN. It is now in order to consider Amendment No. 4 printed 
in House report 106-562.


                 Amendment No. 4 Offered by Mr. Coburn

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

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

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

[[Page 4769]]

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

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

                              {time}  1245

  The CHAIRMAN. Is the gentleman from New York (Mr. LaFalce) opposed to 
the amendment?
  Mr. LaFALCE. I am, Mr. Chairman.
  The CHAIRMAN. The gentleman from New York (Mr. LaFalce) is recognized 
for 5 minutes.
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I regret that I must rise in opposition to the Coburn 
amendment, because I do understand the arguments that are motivating 
him. But I really believe, too, that his arguments are misguided.
  First of all, what we attempted to do was create a nexus between a 
municipal employer and a municipal employee. We said, well, maybe we 
ought to be able to help municipalities keep their employees living 
within the district that they work in.
  So if they are a teacher, if they are a policeman, if they are a 
fireman, and if they work in the city of Tonawanda and will live in the 
city of Tonawanda, it will create this incentive. It is not really a 
subsidy, either. It is an incentive, not a subsidy. We make money, 
according to CBO.
  What the gentleman's expansion would do is apply it virtually to the 
world, and therefore, the gentleman eliminates the whole concept behind 
it: a geographic nexus. So the gentleman would have an incentive 
created for an individual who lives 3 hours away. It destroys the 
purpose of the amendment. The gentleman does not expand the purpose of 
the amendment, he destroys the purpose of the amendment.
  Let me continue. I have already discussed some of the benefits of the 
program. The Coburn amendment before us now says, why limit these 
benefits? First, because he eliminates the geographic nexus that we 
insist upon.
  There are other reasons, too. There is a public purpose in helping 
these public servants, a public purpose that does not apply to the 
groups that the gentleman from Oklahoma (Mr. Coburn) would make 
eligible. The teachers who educate our children, the policemen who keep 
us safe, and the firemen who protect our home from property damage, 
injury, and death, all play a critical public role in our local 
communities.
  People who work in small businesses, for example, or who qualify for 
the child care tax credit, may be very worthy individuals, they simply 
do not serve the same public function as our educators and our 
essential public safety officers. In particular, Section 203 and 
related provisions of the bill address the very real problem that 
school districts, police departments, and fire departments are finding 
it increasingly difficult to recruit and retain qualified individuals, 
or when they can, these individuals may not be able to live in the 
local community because of the barrier of rising home prices and high 
downpayment requirements.
  These considerations simply do not come into play in the case of the 
categories that the Coburn amendment would expand eligibility to 
include.
  The other problem with this amendment is that it could have a very 
negative impact on the health of the FHA fund. We had CBO score our 
bill. They scored our bill as raising revenues, because it will provide 
opportunities for a large number of people not currently using FHA. 
Thus, the increased revenues from such added use will outweigh the cost 
of foregoing premiums for those borrowers that would have used the 
program anyway, and would just be getting more favorable treatment.
  However, I do not believe the gentleman from Oklahoma (Mr. Coburn) 
has a CBO estimate of his amendment. In my judgment, by opening up 
eligibility to in effect virtually everyone in the Nation, the revenue 
loss could be tremendous.
  The gentleman from Oklahoma (Mr. Coburn) would like to piggyback. He 
says, his provision makes money; therefore, mine would, too. Not at 
all. They deal with totally different classes of people. The effect 
most likely would be that the FHA, instead of generating

[[Page 4770]]

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


                 Amendment No. 5 Offered by Mr. Andrews

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

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

     SEC. 209. ENERGY EFFICIENCY CERTIFICATIONS.

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

  The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from 
New Jersey (Mr. Andrews) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Andrews).
  Mr. ANDREWS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I first want to express my enthusiastic support for the 
work that the gentleman from Iowa (Mr. Leach) and the gentleman from 
New York (Mr. Lazio) and the gentleman from New York (Mr. LaFalce) and 
the gentleman from Massachusetts (Mr. Frank) have done, and thank them 
for bringing to the floor a bill that will no doubt make more Americans 
homeowners in high-quality homes. I congratulate them.
  In 1973, the phrase ``oil embargo'' became known to the vocabulary of 
most Americans for the first time. It was widely acknowledged that we 
needed to do something to reduce our dependence upon foreign energy. 
Here we are, 27 years later, and one of the major issues confronting 
the country is our dependence upon foreign oil.
  One of the long-term strategies to reduce that dependence is to 
become more energy-efficient in every aspect of American life. It is to 
the credit of the authors of this bill and their predecessors that we 
are moving in that direction in the field of housing. Through various 
tools available to the Federal government, we are creating a situation 
in which more energy-efficient homes are being financed and purchased 
by more people.
  The purpose of my amendment is to be sure that when we say that 
something is energy-efficient, that it really is; that the 
certification of what is energy-efficient is a certification that meets 
a high standard, as is presently the law, and that that standard is 
carefully reviewed by a well-trained, well-prepared, and duly-
accredited appraisal agency.
  I appreciate the work that both the majority and minority staffs have 
done on this measure, and I appreciate the fact that there are some 
very valid concerns about the scope of the issue that I have raised.
  In particular, we are certainly of the intention that no duly 
accredited organization be excluded from the provisions of this 
amendment. I know that the gentleman from New York (Mr. Lazio) and the 
gentleman from Massachusetts (Mr. Frank) want to be sure that the scope 
of the amendment is broadened to include every such qualified 
organization.
  Secondly, I know there have been concerns raised about the 
availability

[[Page 4771]]

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

                              {time}  1300

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


                 Amendment No. 6 Offered by Mr. Weygand

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

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

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

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

  The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from 
Rhode Island (Mr. Weygand) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Rhode Island (Mr. Weygand).
  Mr. WEYGAND. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, this is a very simple amendment. It revises or amends 
title I of the FHA home improvement section, which is actually the 
oldest section of the FHA program. It was started back in 1934.
  This program was intended, as it does today, to provide for mortgages 
for home improvements. This is done through an FHA-approved lender who 
makes the loans out of their own funds to eligible borrowers, through 
HUD and through FHA.
  These are for typical kinds of homeowner improvements, whether they 
be for utilities, whether they be for renovations to rooms, bathrooms, 
roofs, whatever it may be, but it is not for such things as luxury 
items, swimming pools and other things like that. It is for core 
essentials to make improvements to one's home.
  As I said, this program was started in 1934 and over the years we 
have had many changes with the original loan limit. Presently, the loan 
limit is $25,000 per loan. This was established approximately 9 years 
ago, and since that time construction costs and the rate of inflation 
have certainly eaten into the purchasing power of that $25,000.
  This amendment that we are offering today would simply move the limit 
to $32,500, which would be equivalent to what the rate of inflation and 
building costs would have been over the last 9 years. In fact, what we 
are doing is allowing for the borrower to purchase the same amount of 
construction improvements in 2000, 2001, as they would back in 1991. It 
is not an expansion. It is just simply keeping pace with inflation.
  As a matter of fact, such an index is also used in FHA 203(b), 
single-family loan limits that they go through every year. So it is not 
unusual for us to do this.
  At the chairman's request, and I want to thank him for his indulgence 
and his assistance in this, I have talked not only with FHA but also 
with OMB and we have letters from both that will be coming to us by way 
of myself to the chairman that they are in full agreement. They have no 
opposition to this amendment whatsoever. They believe that it is 
reasonable and they will not oppose it and the administration would not 
oppose it.
  I made that promise to the chairman because I believe that the 
administration should be on board with this amendment if we are to move 
forward with it.
  Lastly, Mr. Chairman, this kind of an increase, again, has nothing to 
do with the existing title I program in terms of modifying or changing 
any of the criterion, the regulations or the oversight that would be 
part of title I. This is a good improvement, would allow those people 
who are really scratching, trying to get by to make major home 
improvements allow them the opportunity to do that.
  Mr. LAZIO. Mr. Chairman, will the gentleman yield?
  Mr. WEYGAND. I yield to the gentleman from New York.
  Mr. LAZIO. Mr. Chairman, I want to thank the gentleman from Rhode 
Island (Mr. Weygand) for yielding.
  Mr. Chairman, the gentleman is correct in referencing that we have 
had numerous discussions about this issue. The title I home improvement 
program is a valuable program for America. It helps some of our 
neediest communities achieve the dollars that they need, homeowners 
getting the dollars they need to put a new roof on their house or 
rebuild their heating system, much the way other parts of this bill 
deal with the reverse equity program, allowing seniors who are house 
rich but cash poor tap into their equity, stay in their home, rebuild 
their heating system, put a new walkway in or put a new roof on without 
having to move out.
  So these are very positive aspects of this proposal, and I support 
the proposal, but as I said to the gentleman I am concerned. I am 
concerned about the Department of Housing and Urban

[[Page 4772]]

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

[[Page 4773]]

been persuaded, and I am no longer opposed to this.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Rhode Island (Mr. Weygand).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 7 printed 
in House Report 106-562.


                 Amendment No. 7 Offered by Ms. Waters

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

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

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

                              {time}  1315

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

[[Page 4774]]

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

[[Page 4775]]

section allows 100 percent downpayment aid for uniformed employees. We 
cannot continue to take from the least of these.
  If we want to expand homeownership opportunities for teachers and 
uniformed employees, let us do it the right way. Let us draft 
legislation to deal with this concern.
  What is the reality here? There are but so many pieces of the pie to 
be sliced. To continue providing slices without baking additional pies 
only means one thing . . . someone gets left out. Who's that? Usually, 
it is the folks who need help the most. We must change that.
  Let us move back to the 80 percent level. Support the Waters 
amendment.
  Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Chairman, let me join in congratulating 
the gentlewoman from California (Ms. Waters) for this particular 
amendment. I wanted to particularly come and support this amendment, 
but as well, associate my concerns with the overall impact of 
legislation that may move decision-making on these funds to a broader 
umbrella than the local community.
  In particular, in this booming economy we must look at the question 
of the economic divide. This whole legislative initiative from its very 
beginning was to bring up those, was to lift the boats of those who 
could least afford opportunities for housing.
  In our communities today, there is still the great divide of 
homeownership. The lack of homeownership falls upon those who have the 
least amount of income. It would be terrible to take away this 
umbrella, this boat, if you will, from these individuals, to give them 
the opportunity, the working poor, to own homes.
  Whenever one goes into communities, what they ask for most is I would 
like to be a homeowner, to raise my family. So it is appropriate that 
we keep the income level so that those people who suffer in the least 
of the economic areas can as well provide, have the opportunity for 
housing.
  Ms. WATERS. Mr. Chairman, may I inquire how much time is remaining.
  The CHAIRMAN. The gentlewoman from California (Ms. Waters) has 2\1/2\ 
minutes remaining. The gentleman from New York (Mr. Lazio) has 7\1/2\ 
minutes remaining.
  Ms. WATERS. Mr. Chairman, do I have the right to close on this 
debate?
  The CHAIRMAN. No. The gentleman from New York (Mr. Lazio) has the 
right to close.
  Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me just then make my closing of this side of the 
argument by saying that I really do understand the dilemma that my 
colleagues find themselves in, particularly the gentleman from 
Massachusetts (Mr. Capuano), who has spent some time helping me to 
understand his dilemma.
  I am very appreciative for the cost of housing and how it is 
increasing. I also understand that this great economic boom that we 
have has increased the cost of housing. There is less housing on the 
market, and something must be done about that.
  But I want to say to the gentleman from New York (Mr. Lazio), my good 
friend, who is in the very privileged position of chairing the 
Subcommittee on Housing and Community Opportunity of our Committee on 
Banking and Financial Services that it is incumbent upon us, when we 
recognize these problems, to take serious and substantial action to do 
something about it.
  I do believe we should have authorized additional funds in CDBG. We 
should go to the Committee on Appropriations to expand the pot so that 
we can take care of those who find themselves in this new situation.
  What is very, very troubling is that we have still the masses of poor 
people and people who are working for very low wages who need 
desperately to have access to resources that are offered in some cities 
only by CDBG and other very limited opportunities to have housing.
  These people, many are homeless, many of them are living two, three, 
four, and five families to a house. In California, we have people 
living in garages without running water, and they are in desperate 
need.
  So it is very, very troubling to talk about taking this very limited 
pot, this pot of money, and having to spread it even with those who may 
need it, but who make substantially more money, and have the 
opportunity to purchase something while we have so many people who do 
not have, can never dream of having a down payment, who can never dream 
of homeownership without some assistance from their government.
  While I am certainly going to work with my colleagues in every way 
that I possibly can to try and satisfy all of our concerns, I would say 
to those who are in the leadership, who are in power now, let us do the 
right thing and expand the amount of dollars that are available.
  Mr. FRANK of Massachusetts. Mr. Chairman, will the gentlewoman yield?
  Ms. WATERS. Yes, I yield to the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, I want to say some of these 
programs, which are very important programs, CDBG, HOME, they have been 
well run for years, they have been frozen, they have been level-funded, 
the need has increased. I hope out of this comes an increased 
recognition that we need to increase the funds.
  Ms. WATERS. Mr. Chairman, I ask unanimous consent to withdraw my 
amendment.
  The CHAIRMAN. Is there objection to the request of the gentlewoman 
from California?
  Mr. COBURN. Mr. Chairman, reserving the right to object, I believe 
the gentlewoman from California makes a great point. The reason that I 
am going to object to her unanimous consent is I believe the House 
ought to have a separate vote on moving the income requirement from 80 
percent.
  Mr. FRANK of Massachusetts. Mr. Chairman, I object to the unanimous 
consent request. The gentleman from Oklahoma is going to object anyway, 
so I object now.
  The CHAIRMAN. Objection is heard.
  The gentleman from New York (Mr. Lazio) has 7\1/2\ minutes remaining.
  Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I would address this now with this amendment obviously 
going forward. I appreciate the gentlewoman from California for making 
the request to withdraw this amendment. It would be better, I think, if 
the House could move forward to the other amendments. But let me just 
address this for a moment.
  We are trying to give local communities the authority to rebuild 
their own backyards. We are trying to give local mayors the ability to 
use new housing tools to build social capital. Do we believe in that, 
or do we not?
  Do we think that police officers and fire fighters and teachers 
should live in the communities that they serve in because, in many of 
America's communities, they cannot own a home because they cannot 
afford to get into a home because the cost of housing is too much.
  In Oklahoma City, in Dallas, in Portland, in Boston, in Chicago and 
Philadelphia and Pittsburgh, if one is a starting entry-level worker 
who enters into the teaching profession or enters into the profession 
of being a fire fighter or a police officer, one is going to get boxed 
out. One will not be eligible for that little bit of help, not from 
Washington, D.C., but from a mayor that wants to provide or a local 
not-for-profit wants to provide, or the local community, in trying to 
build a strategy for revitalization, for rebuilding that community, for 
bringing in role models and mentors and folks that serve that 
community.
  That is what we are trying to do here, help those communities that, 
from a distance, look like they are high-income communities; but when 
one looks a little bit closer from a relative basis, they are also very 
high-cost communities.
  So if one is from a State that is a low-income State, one may or may 
not want to do this. One may or may not need to do this. But there are 
other communities, and the community of the gentleman from 
Massachusetts (Mr. Capuano) is one of those, perhaps where their mayor 
in their community wants to rebuild the infrastructure of their 
community by getting police officers and getting fire fighters and 
getting teachers and getting municipal

[[Page 4776]]

workers to live in the community that they are supposed to serve.

                              {time}  1330

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


                  Amendment No. 8 Offered by Mr. Shays

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

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

  The CHAIRMAN. Pursuant to House Resolution 460, the gentleman from 
Connecticut (Mr. Shays) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentleman from Connecticut (Mr. Shays).
  Mr. SHAYS. Mr. Chairman, I yield myself such time as I may consume, 
and since this amendment is sponsored by myself, as well as the 
gentleman from New York (Mr. Nadler), the gentleman from New York (Mr. 
Crowley), and the gentlewoman from Maryland (Mrs. Morella), I will be 
yielding to those three colleagues as well.
  What this amendment does is it increases the fiscal year 2001 funding 
authorization for the Housing Opportunity for Persons With AIDS, HOPWA, 
program from $260 million to $292 million, the minimum level determined 
necessary by the HIV/AIDS community to meet the needs of people living 
with HIV/AIDS. HOPWA is now funded at about $232 million.
  There is a housing crisis for individuals living with AIDS. Many will 
face a housing crisis at some point during their illness as a result of 
the increased medical expenses and lost wages. HOPWA was created to 
address this growing problem. It is one of the most cost-effective ways 
to ensure that people living with HIV/AIDS have adequate and affordable 
housing.
  Mr. Chairman, I yield 2 minutes to the gentleman from New York (Mr. 
Nadler).
  Mr. NADLER. Mr. Chairman, I rise to urge the Members of this House to 
vote for the Shays-Nadler-Crowley-Morella amendment, and I want to 
commend the gentleman from Connecticut (Mr. Shays) for his leadership 
on this amendment.

[[Page 4777]]

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

[[Page 4778]]

our communities, but particularly in the communities where it is 
growing among our minority populations, Hispanics and Africans 
Americans, this is a great opportunity. And I support the amendment, 
and ask my colleagues to vote for it.
  Mr. SHAYS. Mr. Chairman, may I ask how much time we have remaining?
  The CHAIRMAN. The gentleman from Connecticut (Mr. Shays) has 2\1/2\ 
minutes left.
  Mr. SHAYS. Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. Is there a Member in opposition?
  Mr. LAZIO. Mr. Chairman, I rise in opposition to the amendment.
  The CHAIRMAN. Is the gentleman opposed to the amendment?
  Mr. LAZIO. Yes, I rise in opposition to the amendment.
  The CHAIRMAN. The gentleman from New York (Mr. Lazio) is recognized 
for 10 minutes.
  Mr. LAZIO. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I do not think there is a Member of this House that is 
a better or more sincere advocate for the homeless or for people who 
have housing needs and who also suffer with AIDS than my good friend 
from Connecticut (Mr. Shays), and I have enormous respect for him and 
what he is trying to accomplish here.

                              {time}  1345

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


          Modification to Amendment No. 8 Offered by Mr. Shays

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

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

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

                          ____________________