[Senate Report 105-380]
[From the U.S. Government Publishing Office]
Calendar No. 713
105th Congress Report
SENATE
2d Session 105-380
_______________________________________________________________________
TO PROVIDE FEDERAL HOUSING ASSISTANCE TO NATIVE HAWAIIANS
_______
October 8 (legislative day, October 2), 1998.--Ordered to be printed
_______________________________________________________________________
Mr. Campbell, from the Committee on Indian Affairs, submitted the
following
R E P O R T
[To accompany S. 109]
The Committee on Indian Affairs, to which was referred the
bill (S. 109) to provide Federal housing assistance to Native
Hawaiians having considered the same, reports favorably thereon
with an amendment in the nature of a substitute and recommends
that the bill (as amended) do pass.
Purpose
The purpose of S. 109 is to implement the recommendations
of the National Commission on American Indian, Alaska Native,
and Native Hawaiian Housing by amending the Native American
Housing Assistance and Self-Determination Act to address the
housing needs of Native Hawaiians who are eligible to reside on
lands set aside under the Hawaiian Homes Commission Act of
1920.
The primary objective of S. 109 is to enable Native
Hawaiians who are eligible to reside on the Hawaiian Home Lands
to have access to federal housing assistance that is currently
provided to other eligible low-income American families based
upon documented need.
Background and Need
In 1920, with the enactment of Hawaiian Homes Commission
Act, the United States set aside approximately 200,000 acres of
public land that had been ceded to the United States in what
was then the Territory of Hawaii to establish a permanent
homeland for the native people of Hawaii, based upon findings
of the Congress that Native Hawaiians were a landless people
and a ``dying'' people. The Secretary of the Interior, Franklin
Lane, likened the relationship between the United States and
Native Hawaiians to the guardian-ward relationship that then
existed between the United States and American Indians.
As a condition of its admission into the Union of States in
1959, the United States transferred title to the 200,000 acres
of land to the State of Hawaii with the requirement that the
lands be held ``in public trust'' for ``the betterment of the
conditions of Native Hawaiians, as defined in the Hawaiian
Homes Commission Act of 1920''. The Hawaii Admissions Act also
required that the Hawaii State Constitution provide for the
assumption by the new State of a trust responsibility for the
lands. The lands are now adminstered by a State agency, the
Department of Hawaiian Home Lands.
However, similar to the responsibility with which the
Secretary of the Interior is charged in the administration of
Indian lands, the United States retained and continues to
retain the exclusive authority to enforce the trust and to
institute legal action against the State of Hawaii for any
breach of the trust, as well as the executive right to consent
to any actions affecting the lands which comprise the corpus of
the trust and any amendments to the Hawaiian Homes Commission
Act enacted by the legislature of the State of Hawaii affecting
the rights of the beneficiaries under the Act.
Within the last several years, three recent studies have
documented the housing conditions that confront Native
Hawaiians who either reside on the Hawaiian home lands or 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
the Congress, ``Building the Future: A Blueprint for Change''.
The Commission's study compared housing data for Native
Hawaiians with housing information for other citizens in the
State of Hawaii. The Commission found that Native Hawaiians,
like American Indians and Alaska Natives, lacked access to
conventional financing because of the trust status of the
Hawaiian home lands, and that Native Hawaiians had the worst
housing conditions in the State of Hawaii and the highest
percentage of homelessness, representing over 30 percent of the
State's homeless population.
The Commission concluded that the unique circumstances of
Native Hawaiians require the enactment of new legislation to
alleviate and address the severe housing needs of Native
Hawaiians, and recommended that the Congress extend to Native
Hawaiians the same federal housing assistance programs that are
provided to American Indians and Alaska Natives under the Low-
Income Rental, Mutual Help, Loan Guarantee Program and
Community Development Block Grant programs. Subsequently, the
Community Development Block Grant program authority was amended
to address the housing needs of Native Hawaiians.
In 1995, the U.S. Department of Housing and Urban
Development (HUD) issued a report entitled, ``Housing Problems
and Needs of Native Hawaiians''. The HUD report was
particularly helpful because it compared the data on Native
Hawaiian housing conditions with housing conditions nationally
and with the housing conditions of American Indians and Alaska
Natives.
The most alarming finding of the HUD report was that Native
Hawaiians experience the highest percentage of housing problems
in the nation--49 percent--higher than even that of American
Indians and Alaska Natives residing on reservations (44
percent) and substantially higher than that of all U.S.
households (27 percent). Additionally, the HUD study found that
the percentage of overcrowding in the Native Hawaiian
population is 36 percent as compared to 3 percent for all other
households in the United States.
Applying the HUD guidelines, 70.8 percent of Native
Hawaiians who either reside or who are eligible to reside on
the Hawaiian home lands have incomes which fall below the
median family income in the United States, and 50 percent of
those Native Hawaiians have incomes below 30 percent of the
median family income in the United States.
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--with 95 percent of home lands applicants
(16,000) in need of housing, and with one-half of those
applicant households facing overcrowding and one-third paying
more than 30 percent of their income for shelter.
Eligibility for an assignment of Hawaiian home lands for
purposes of housing, agricultural development or pasture lands
is a function of federal law--the Hawaiian Homes Commission Act
of 1920--which has defined eligibility in terms of blood
quantum. There are approximately 60,000 Native Hawaiians who
would be eligible to reside on the home lands, but applying for
an assignment of a parcel of home lands is voluntary. Because
of the lack of resources to develop infrastructure (roads,
access to water and sewer and electricity) on the home lands as
required by State and county laws before housing can be
constructed, hundreds of Native Hawaiians on the waiting list
have died before receiving an assignment of home lands.
Once an eligible Native Hawaiian reaches the top of the
waiting list, he or she must be able to qualify for a private
home loan mortgage, because the limited Federal and State funds
available to the Department of Hawaiian Home Lands have been
used to develop infrastructure rather than the construction of
housing. An assignment of home lands property is in the form of
a 99-year lease. Unless the heirs of the eligible Native
Hawaiian qualify in their own right for an assignment of home
lands under the provisions of the Hawaiian Homes Commission
Act, upon the death of the eligible Native Hawaiian, the heirs
must move off the land.
Currently, Native Hawaiians who are eligible to reside on
the home lands but who do not qualify for private mortgage
loans do not have access to federal housing assistance programs
that provide assistance to low-income families. This is due to
the fact that for many years, the federal government took the
legal position that because the government that represented the
Native Hawaiian people had been overthrown in 1893 and thus
there was no government-to-government relationship with the
United States, extending federal housing program assistance to
lands set aside exclusively for Native Hawaiians would be
discriminating on the basis of race or ethnicity.
The Hawaiian Homes Commission Act not only provides
authority for the assignment of home lands property to Native
Hawaiians. The Act also authorizes general leases to non-
Hawaiians. At the time the Act was passed by the Congress, it
was anticipated that revenues derived from general leases would
be sufficient to develop the necessary infrastructure and
housing on the home lands. However, general lease revenue has
not proven sufficient to address infrastructure and housing
needs.
In recent years, as a result of litigation involving third-
party leases of Hawaiian home lands, the United States
revisited its legal position and found that the authority
contained in the Hawaiian Homes Commission Act for general
leases to non-Hawaiians meant that the land was not set aside
exclusively for Native Hawaiians. The non-exclusive nature of
the land set aside was thus found not to violate Constitutional
prohibitions on racial discrimination.
The change in the United States' legal position may be
further informed by the ruling of the Ninth Circuit Court of
Appeals in Rice v. Cayetano, No. 97-16095, 146 F.3d 1075 (9th
Cir. 1998) in which the Appeals Court compared the special
treatment of Native Hawaiians to the special treatment of
Indians that the Supreme Court approved in Morton v. Mancari,
417 U.S. 535 (1974) and cited its reference to Mancari in
Alaska Chapter, Associated Gen. Contractors v. Pierce, 694 F.2d
1162 (9th Cir. 1981), in which the Circuit Court expressed its
finding that preferential treatment that is grounded in the
government's unique obligation toward Indians is a political
rather than a racial classification, even though racial
criteria may be used in defining eligibility.
However, the result of the United States' earlier legal
position was that Native Hawaiians who were eligible to reside
on the Hawaiian Home Lands and would have otherwise been
eligible by virtue of their low-income status to apply for
Federal housing assistance were foreclosed from participating
in Federal housing assistance programs that were available to
all other eligible families in the United States.
An Amendment in the Nature of a Substitute to S. 109
The purpose of the amendment in the nature of a substitute
to S. 109 is to address these well-documented housing needs of
Native Hawaiians by extending the same federal housing
assistance available to American Indians and Alaska Natives to
those Native Hawaiians most in need of housing--those who have
consistently been denied access to federally-assisted housing
programs--Native Hawaiians who reside or are eligible to reside
on the Hawaiian Home Lands. The substitute amendment
incorporates the recommendations of the U.S. Department of
Justice and the U.S. Department of Housing and Urban
Development.\1\
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\1\ Following the U.S. Supreme Court's 1995 ruling in Adarand
Constructors, Inc., v. Pena, the U.S. Department of Justice was charged
with the responsibility of conducting a legal review of all federal
programs which may provide benefits to groups defined by race or
ethnicity. Over the course of the last year, Committee staff has
engaged in extensive discussions with Department of Justice officials
with regard to S. 109 to assure that the bill's provisions meet the
standards established in Adarand.
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The earlier version of S. 109, as reported by the Committee
on October 23, 1997, approached the amendment of the Native
American Housing Assistance and Self-Determination Act
(NAHASDA) by substituting the term ``Native Hawaiian'' for the
term ``Indian'' each place the latter term appeared, and
incorporating Titles I through IV of NAHASDA by reference. The
amendment in the nature of a substitute to S. 109 removes any
reference to the term ``Indian'' and instead of incorporating
provisions of NAHASDA by reference, replicates those relevant
provisions of NAHASDA, adapted for application to the Hawaiian
home lands.
Appropriations for programs authorized by the Native
American Housing Assistance and Self-Determination Act
(NAHASDA) to address the housing needs in Indian country are
determined by formula. If enacted, S. 109 authorizes
appropriations for programs to address the housing needs of
Native Hawaiians which would be allocated to the Department of
Hawaiian Home Lands through a block grant. An appropriation for
federal housing assistance for Native Hawaiians would be
separate from an appropriation for federal housing assistance
to address the housing needs in Indian country under NAHASDA,
and unless a separate allocation of funding for Native Hawaiian
housing assistance is secured, there would be no funding for
Native Hawaiian housing assistance under the NAHASDA authority.
It is the intent of the sponsor that in no instance, will
funding for Indian programs under NAHASDA be reduced as a
function of the authority provided in S. 109.
At its June, 1998 mid-year meeting, the National Congress
of American Indians adopted a resolution in support of passage
of the amendment in the nature of a substitute to S. 109. The
National American Indian Housing Council also approved a
resolution in support of passage of the amendment in the nature
of a substitute to S. 109 at the Council's June, 1998 meeting.
Legislative History
S. 109 was introduced on January 21, 1997, by Senator
Inouye, for himself and Senator Akaka, and was referred to the
Committee on Indian Affairs. A hearing on S. 109 was held on
April 3, 1997, in Honolulu, Hawaii. The Committee reported S.
109 to the full Senate on October 23, 1997, with the agreement
that concerns raised by the Chairman's staff would be addressed
prior to seeking action on the measure by the Senate. In an
effort to accommodate those concerns, S. 109 was redrafted, and
an amendment in the nature of a substitute to S. 109 was
adopted and ordered reported to the full Senate on July 15,
1998.
Committee Recommendation and Tabulation of Vote
The Committee on Indian Affairs, in an open business
session on July 15, 1998, adopted an amendment in the nature of
a substitute to S. 109 by voice vote and ordered the bill, as
amended, reported favorably to the Senate.
Section-by-Section Analysis
Section 1.--Section 1 sets forth the short title of the
Act, indicating that the Act may be cited as the ``Native
American Housing Assistance and Self-Determination Amendments
of 1998''.
Section 2.--Section 2 sets forth the findings of the
Congress.
Paragraph 1 of section 2 sets forth the finding of the
Congress that the United States has undertaken a responsibility
to promote the general welfare of the United States by
employing Federal resources to remedy the unsafe and unsanitary
housing conditions and the acute shortage of decent, safe, and
sanitary dwellings for families of lower income, including
Native Hawaiian families of lower income, and by developing
effective partnerships with governmental and private entities
to accomplish these objectives.
Paragraph 2 of section 2 sets forth the finding of the
Congress that 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 1959, in order to establish
a homeland for the native people of Hawaii, also known as
Native Hawaiians. The lands which were set aside under the Act
were referred to in section 201(a)(5) of the Act as Hawaiian
Home Lands.
Paragraph 3 of section 2 sets forth the finding of the
Congress that despite the intent of the Congress in 1920 to
address the housing needs of Native Hawaiians through the
enactment of the Hawaiian Homes Commission Act, 1920, in the
years which have followed, there have been agencies of the
United States which have taken the legal position that
subsequently-enacted Federal housing laws designed to address
the housing needs of all eligible families in the United States
could not be extended to address the needs for housing and
infrastructure development on the Hawaiian Home Lands on the
grounds that the lands were set aside exclusively for a group
of people who could be identified by their race and/or
ethnicity.
The legal theory was that the extension of Federal housing
assistance programs to such lands would constitute
discrimination on the basis of race in violation of the
Fourteenth Amendment to the U.S. Constitution. The United
States has subsequently revised its legal position based upon
its finding that the lands set aside under the Hawaiian Homes
Commission Act were not exclusively set aside for Native
Hawaiians because the 1920 Act also set aside lands for general
leasing to non-Hawaiians. In addition, the change in the United
States' legal position may be further informed by the ruling of
the Ninth Circuit Court of Appeals in Rice v. Cayetano, No. 97-
16095, 146 F.3d 1075 (9th Cir. 1998) in which the Appeals Court
compared the special treatment of Native Hawaiians to the
special treatment of Indians that the Supreme Court approved in
Morton v. Mancari, 417 U.S. 535 (1974) and cited its reference
to Mancari in Alaska Chapter, Associated Gen. Contractors v.
Pierce, 694 F.2d 1162 (9th Cir. 1981), in which the Circuit
Court expressed its finding that preferential treatment that is
grounded in the government's unique obligation toward Indians
is a political rather than a racial classification, even though
racial criteria may be used in defining eligibility.
However, the result of the United States' earlier legal
position was that Native Hawaiians who were eligible to reside
on the Hawaiian Home Lands and would have otherwise been
eligible by virtue of their low-income status to apply for
Federal housing assistance were foreclosed from participating
in Federal housing assistance programs that were available to
all other eligible families in the United States.
Paragraph 4 of section 2 sets forth the finding of the
Congress that 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, not
only in the State of Hawaii, but the greatest unmet need for
housing and the highest rates of overcrowding in the United
States. Three studies conducted in the last several years have
documented the findings of the Congress set forth in paragraphs
5, 6, 7 and 8 of section 2.
Paragraph 5 of section 2 sets forth the finding of the
Congress that among the population of native people in the
United States, Native Hawaiians experience the highest
percentage of housing problems in the United States--
specifically, forty-nine percent of the Native Hawaiian
population experience housing problems as compared to forty-
four percent of the American Indian and Alaska Native
population, and as compared to twenty-seven percent for all
other households in the United States. Paragraph 5 of section 2
also sets forth the finding of the Congress that overcrowding
in Native Hawaiian households is thirty-six percent as compared
to three percent for all other households in the United States.
Pagraph 6 of section 2 sets forth the findings of the
Congress that the needs of the population of Native Hawaiians
who are eligible to reside on the Hawaiian Home Lands are the
most severe, as evidenced by the finding that the percentage of
overcrowding in Native Hawaiian households on the Hawaiian Home
Lands is thirty-six percent and that ninety-five percent of
Native Hawaiians who are eligible to reside on the Hawaiian
Home Lands, or approximately thirteen thousand Native
Hawaiians, are in need of housing.
Paragraph 7 of section 2 sets forth the finding of the
Congress that under the guidelines of the Department of Housing
and Urban Development, 70.8 percent of Native Hawaiians who
either reside on the Hawaiian Home Lands or who are eligible to
do so have incomes that fall below the median family income,
and fifty percent of Native Hawaiians who either reside on the
Hawaiian Home Lands or who are eligible to do so have incomes
below thirty percent of the median family income.
Paragraph 8 of section 2 sets forth the finding of the
Congress that one-third of those Native Hawaiians who are
eligible to reside on the Hawaiian Home Lands pay more than
thirty percent of their income for shelter, and one-half of
those Native Hawaiians who are eligible to reside on the
Hawaiian Home Lands face overcrowding in their households.
Paragraph 9 of section 2 sets forth the finding of the
Congress that the extraordinarily severe housing needs of
Native Hawaiians demonstrate that Native Hawaiians who either
reside on the Hawaiian Home Lands or who are eligible to reside
on the Hawaiian Home Lands have been denied equal access to
Federal low-income housing assistance programs available to
other eligible American families, and that a more effective
means of addressing the housing needs of Native Hawaiians must
be authorized.
Paragraph 10 of section 2 sets forth the finding of the
Congress that in order to address the continuing prevalence of
extraordinarily severe housing needs among Native Hawaiians who
either reside on the Hawaiian Home Lands or who are eligible to
reside on the Hawaiian Home Lands, it is 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 to those Native
Hawaiians, consistent with the recommendations of the National
Commission on American Indian, Alaska Native, and Native
Hawaiian Housing.
Paragraph 11 of section 2 sets forth the finding of the
Congress that under the treaty-making power of the United
States, the Congress had the authority to confirm a treaty
between the United States and the government that represented
the Hawaiian people, and pursuant to Article 1, section 8,
clause 3 of the United States Constitution, the authority which
is vested in the Congress to address matters affecting the
indigenous peoples of the United States, includes the authority
to address matters affecting Native Hawaiians.
Paragraph 12 of section 2 sets forth the finding of the
Congress that through treaties, Federal statutes, and Federal
court rulings, the United States has recognized and reaffirmed
that the political status of Native Hawaiians is comparable to
that of American Indians and Alaska Natives; and that the
aboriginal, indigenous people of the United States have a
continuing right to autonomy in their internal affairs and an
ongoing right of self-determination and self-governance that
has never been extinguished
Paragraph 13 of section 2 sets forth the finding of the
Congress that the political relationship between the United
States and the Native Hawaiian people has been recognized and
reaffirmed by the United States through the enactment of
Federal laws which include Native Hawaiians in the Native
American Programs Act of 1974, the American Indian Religious
Freedom Act, the National Museum of the American Indian Act,
the Native American Graves Protection and Repatriation Act, the
National Historic Preservation Act, the Native American
Languages Act of 1992, the American Indian, Alaska Native and
Native Hawaiian Culture and Arts Development Act, the Job
Training Partnership Act, and the Older Americans Act of 1965.
Paragraph 14 of section 2 sets forth the finding of the
Congress that in the area of housing, the United States has
recognized and reaffirmed its political relationship with the
Native Hawaiian people through: (1) the enactment of the
Hawaiian Homes Commission Act, 1920, which set aside
approximately 200,000 acres of public lands in the Territory of
Hawaii that had been ceded to the United States for
homesteading by Native Hawaiians inorder to rehabilitate a
landless and dying people; (2) the enactment of the Act entitled ``An
Act to provide for the admission of the State of Hawaii into the
Union'', approved March 18, 1958 (73 Stat. 4) by ceding title to the
public lands formerly held by the United States to the State of Hawaii
and mandating that those lands be held in public trust, for the
betterment of the conditions of Native Hawaiians, and by transferring
to the State of Hawaii what the United States deemed to be a trust
responsibility for the administration of the Hawaiian Home Lands but
retaining the exclusive authority to enforce the trust, and the
exclusive right of the United States to consent to any actions
affecting the land which comprise the corpus of the trust as well as
the exclusive right to consent to any amendment to the Hawaiian Homes
Commission Act, 1920, affecting the rights of beneficiaries under the
Act, enacted by the legislature of the State of Hawaii; (3) 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; (4) authorizing
Native Hawaiian representation on the National Commission on American
Indian, Alaska Native, and Native Hawaiian Housing under Public Law
101-235; (5) the inclusion of Native Hawaiians in the definition under
section 3672 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 (5) the enactment of the
Hawaiian Home Lands Recovery Act which establishes a process for the
conveyance of Federal lands to the Department of Hawaiian Home Lands
that are equivalent in value to lands acquired by the United States
from the Hawaiian Home Lands inventory.
Section 3.--Section 3 amends the Native American Housing
Assistance and Self-Determination Act of 1996 by adding a new
Title VIII at the end of that Act, to provide authority for the
provision of housing assistance to low-income Native Hawaiian
families.
Title VIII--Housing Assistance for Native Hawaiians
Section 801.--Section 801 sets forth the definitions for
purposes of Title VIII.
Section 801(1).--Paragraph 1 of section 801 sets forth the
definition of the term ``Department of Hawaiian Home Lands''.
The term ``Department of Hawaiian Home Lands'' or
``Department'', as used in Title VIII, 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.
Section 801(2).--Paragraph 2 of section 801 sets forth the
definition of the term ``Director''. The term ``Director'', as
used in Title VIII, means the Director of the Department of
Hawaiian Home Lands.
Section 801(3).--Paragraph 3 of section 801 sets forth the
definition of the term ``elderly family'' and ``near-elderly
family''. Subparagraph (A) of paragraph 3 provides that the
term ``elderly family'' or ``near-elderly family'', as used in
Title VIII, means a family whose head, or his or her spouse, or
whose sole member is for an elderly family, an elderly person
or for a near-elderly family, a near-elderly person.
Subparagraph (B) of paragraph 3 provides that the term
``elderly family'' or ``near-elderly family'' includes two or
more elderly persons or near-elderly persons, as the case may
be, living together; and one or more persons elderly or near-
elderly persons living with one or more persons determined
under the housing plan to be essential to their care or well-
being.
Section 801(4).--Paragraph 4 of section 801 sets forth the
definition of ``Hawaiian Home Lands''. The term ``Hawaiian Home
Lands'', as used in Title VIII, means lands that have the
status as Hawaiian Home Lands under section 204 of the Hawaiian
Homes Commission Act or lands acquired pursuant to the Hawaiian
Homes Commission Act.
Section 801(5).--Paragraph 5 of section 801 sets forth the
definition of the term ``Housing Area''. The term ``housing
area'', as used in Title VIII, means an area of the Hawaiian
Home Lands with respect to which the Department of Hawaiian
Home Lands is authorized to provide assistance for affordable
housing under this Act.
Section 801(6).--Paragraph 6 of section 801 sets forth the
definition of the term ``Housing Entity''. The term ``housing
entity'', as used in Title VIII, means the Department of
Hawaiian Home Lands.
Section 801(7).--Paragraph 7 of section 801 sets forth the
definition of the term ``Housing Plan''. The term ``housing
plan'', as used in Title VIII, means a plan developed by the
Department of Hawaiian Home Lands.
Section 801(8).--Paragraph 8 of section 801 sets forth the
definition of the term ``Median Income''. The term ``median
income'', as used in Title VIII, means, with respect to an area
that is a Hawaiian housing area, the greater of the median
income for the Hawaiian housing area, which is to be determined
by the Secretary of Housing and Urban Development, or the
median income for the State of Hawaii.
Section 801(9).--Paragraph 9 of section 801 sets forth the
definition of the term ``Native Hawaiian''. The term ``Native
Hawaiian'', as used in Title VIII, has the meaning given the
term ``Native Hawaiian'' in section 201 of the Hawaiian Homes
Commission Act, 1920.
Section 802.--Section 802 provides authority for the
provision of block grants for affordable housing activities.
Section 802(a).--Section 802(a) provides that for each
fiscal year, the Secretary of Housing and Urban Development
shall, to the extent amounts are made available to carry out
Title VIII, make a grant under Title VIII to the Department of
Hawaiian Home Lands to carry out affordable housing activities
for Native Hawaiian families residing on or near the Hawaiian
Home Lands.
Section 802(b).--Section 802(b) provides that the Secretary
of Housing and Urban Development may make a grant under Title
VIII to the Department of Hawaiian Home Lands for a fiscal year
but only if the Director has submitted a housing plan for the
fiscal year to the Secretary and the Secretary has made a
determination under section 804 that the housing plan complies
with the requirements of section 803. The Secretary may waive
the applicability of these requirements, in part, if the
Secretary finds that the Department of Hawaiian Home Lands has
not complied or cannot comply with the requirements due to
circumstances beyond the control of the Department of Hawaiian
Home Lands.
Section 802(c).--Section 802(c) provides that except as
provided in section 802(e), the amounts provided under a grant
under section 802 may be used only for affordable housing
activities under Title VIII that are consistent with a housing
plan approved under section 804.
Section 802(d).--Section 802(d) provides that the Secretary
of Housing and Urban Development shall by regulation authorize
the Department of Hawaiian Home Lands to use a percentage of
any grant amounts received under Title VIII for any reasonable
administrative and planning expenses of the Department relating
to carrying out Title VIII and activities assisted with those
amounts. The administrative and planning expenses include costs
for the salaries of individuals engaged in administering and
managing affordable housing activities assisted with grant
amounts provided under Title VIII, and expenses incurred in
preparing a housing plan under section 803.
Section 802(e).--Section 802(e) provides that the Director
shall make all reasonable efforts, consistent with the purposes
of Title VIII, 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 of Housing and Urban Development under section 803.
Section 802(f).--Section 802(f) provides that the Secretary
of Housing and Urban Development shall be guided by the
relevant program requirements of titles I, II and IV of the
Native American Housing Assistance and Self-Determination Act
in the implementation of housing assistance programs for Native
Hawaiians under Title VIII. The Secretary may make exceptions
to, or modifications of, program requirements for Native
American housing assistance set forth in titles I, II and IV as
necessary and appropriate to meet the unique situation and
housing needs of Native Hawaiians.
Section 803.--Section 803 sets forth the requirements
associated with housing plans.
Section 803(a).--Section 803(a) provides that the Secretary
shall require the Director to submit a housing plan under
section 803 for each fiscal year and provide for the review of
each plan submitted under section 803.
Section 803(b).--Section 803(b) provides that each housing
plan under section 803 shall be in a form prescribed by the
Secretary and contain, with respect to the five-year period
beginning with the fiscal year for which the plan is submitted:
(1) 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; (2) a statement of the
goals and objectives of the Department of Hawaiian Home Lands
to enable the Department to serve the needs identified during
the period; and (3) 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.
Section 803(c).--Section 803(c) provides that a housing
plan under section 803 shall be in a form prescribed by the
Secretary of Housing and Urban Development and contain
information relating to the fiscal year for which the
assistance under Title VIII is to be made available,
including--
A statement of the goals and objectives to be
accomplished during the period covered by the plan;
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 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 the geographical needs of those families and needs
for various categories of housing assistance, and a
description of the estimated housing needs for all
families to be served by the Department;
An operating budget for the Department in a form
prescribed by the Secretary that includes an
identification and a description of the financial
resources reasonably available to the Department to
carry out the purposes of Title VIII, including an
explanation of the manner in which amounts made
available will be used to leverage additional resources
and the uses to which the resources will be committed,
including eligible and required affordable housing
activities and administrative expenses;
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--
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 and the manner in which the
characteristics influence the decision of the
Department to use grant amounts to be provided
under Title VIII for rental assistance, the
production of new units, the acquisition of
existing units, or the rehabilitation of units;
A description of the structure, coordination,
and means of cooperation between the Department
and any other governmental entities in the
development, submission, or implementation of
housing plans, including a description of the
involvement of private, public, and nonprofit
organizations and institutions, the use of loan
guarantees under section 184A of the Housing
and Community Development Act of 1992, and
other housing assistance provided by the United
States, including loans, grants, and mortgage
assistance,
A description of the manner in which the plan
will address the needs identified;
A description of any existing or anticipated
home ownership programs and rental programs to
be carried out during the period covered by the
plan and the requirements and assistance
available under those programs;
A description of 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 the requirements and assistance
available under those programs;
A description of all other existing or
anticipated housing assistance provided by the
Department during the period covered by the
plan including transitional housing, homeless
housing, college housing, and supportive
services housing, and the requirements and
assistance available under such programs;
A description of any housing to be demolished
or disposed of, a timetable for that demolition
or disposition, and any other information
required by the Secretary with respect to that
demolition or disposition;
A description of the manner in which the
Department will coordinate with welfare
agencies in the State of Hawaii to ensure that
residents of affordable housing will be
provided with access to resources to assist in
obtaining employment and achieving self-
sufficiency;
A description of the requirements established
by the Department to promote the safety of
residents of affordable housing, facilitate the
undertaking of crime prevention measures, allow
resident input and involvement, including the
establishment of resident organizations, and
allow for the coordination of crime prevention
activities between the Department and local law
enforcement officials; and
A description of the entities that will carry
out the activities under the plan, including
the organizational capacity and key personnel
of the entities;
Evidence of compliance that shall include, as
appropriate--
A certification that the Department
will comply with title VI of the Civil
Rights Act of 1964 or with title VIII
of the Civil Rights Act of 1968 in
carrying out Title VIII, to the extent
that such title is applicable, and
other applicable Federal statutes;
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;
A certificate 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 Title VIII;
A certificate 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 home buyer payments
are determined, for housing assisted
with grant amounts provided under Title
VIII; and
A certificate 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 Title VIII.
Section 803(d).--Section 803(d) addresses the applicability
of civil rights statutes.
Section 803(d)(1).--Section 803(d)(1) provides that to the
extent that the requirements of title VI of the Civil Rights
Act of 1964 or of title VIII of the Civil Rights Act of 1968
apply to assistance provided under title VIII of this Act,
nothing in the requirements concerning discrimination on the
basis of race shall be construed to prevent the provision of
assistance under title VIII of this Act to the Department of
Hawaiian Home Lands on the basis that the Department served
Native Hawaiians; or to an eligible family on the basis that
the family is a Native Hawaiian family.
Section 803(d)(2).--Section 803(d)(2) provides that program
eligibility under title VIII of this Act may be restricted to
Native Hawaiians. Subject to the proviso, no person may be
discriminated against on the basis of race, color, national
origin, religion, sex, familial status, or disability.
Section 803(e).--Section 803(e) provides that as condition
of receiving grant amounts under title VIII of this Act, the
Department of Hawaiian Home Lands shall, to the extend
practicable, work with or subcontract with private nonprofit
organizations experienced in the planning and development of
affordable housing for Native Hawaiians to carry out affordable
housing activities with those grants.
Section 804.--Section 804 addresses the Secretary's review
of the housing plans to be submitted under section 803.
Section 804(a)(1).--Section 804(a)(1) provides that the
Secretary is to conduct a review of a housing plan submitted to
him pursuant to section 803 to ensure that the plan complies
with the requirements of section 803, and the Secretary shall
have the discretion to review the plan only to the extent that
the Secretary considers the review necessary.
Section 804(2).--Section 804(a)(2) provides that no later
than sixty days after receiving a plan which is required to be
submitted pursuant to section 803, the Secretary is to notify
the Director of the Department of Hawaiian Home Lands as to
whether the plan complies with the requirements of section 803,
and if the Secretary does not notify the Director as required
under section 804(a)(2) and section 804(b) upon the expiration
of the sixty day period, the plan shall be considered to have
been determined to comply with the requirements under section
803 and the Director shall be considered to have been notified
of compliance.
Section 804(b).--Section 804(b) provides that if the
Secretary determines that a plan submitted under section 803
does not comply with the requirements of section 803, the
Secretary shall specify in the notice under section 804(a) the
reasons for noncompliance and any modifications that are
necessary for the plan to meet the requirements of section 803.
Section 804(c).--Section 804(c) provides that 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 an action to be necessary to make
a determination under section 804(c), the Secretary shall
review the plan, including any amendments or modifications
thereto, to determine whether the contents of the plan set
forth the information required by section 803 to be contained
in the housing plan, whether the contents of the plan are
consistent with information and data available to the
Secretary, and whether the contents of the plan are not
prohibited by or inconsistent with any provision of this Act or
any other applicable law. If the Secretary makes a
determination under section 804(c) that any of the appropriate
certifications under section 803(c)(2)(E) are not included in
the plan, the plan shall be considered to be incomplete.
Section 804(d).--Section 804(d) provides that after a
section 803 plan has been submitted for a fiscal year, the
Director of the Department of Hawaiian Home Lands may comply
with the provisions of section 803 for any succeeding fiscal
year (with respect to information included for the five-year
period under section 803(b) or for the one-year period under
section 803(c)) by submitting only such information regarding
such changes as may be necessary to update the plan previously
submitted. However, the Director must submit a complete plan
under section 803 not later than four years after submitting an
initial plan under section 803, and not less frequently than
every four years.
Section 804(e).--Section 804(e) provides that section 804
and section 803 are to 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 title VIII of this Act for fiscal
year 2000.
Section 805.--Section 805 addresses the treatment of
program income and labor standards.
Section 805(a).--Section 805(a) provides that the
Department of Hawaiian Home Lands may retain any program income
that is realized from any grant amounts received by the
Department under title VIII of this Act if that income was
realized after the initial disbursement of grant amounts
received by the Department and the Director agrees to use the
program income for affordable housing activities in accordance
with the provisions of title VIII of this Act. Section 805(a)
further provides that the Secretary may not reduce the grant
amount for the Department of Hawaiian Home Lands based solely
on whether the Department retains program income under this
section or the amount of any such program income retained.
Section 805(a) provides that the Secretary may be regulation,
exclude from consideration as program income any amounts
determined to be so small that compliance with the requirements
of section 805(a) would create an unreasonable administrative
burden on the Department.
Section 805(b)(1).--Section 805(b)(1) provides that any
contract or agreement for assistance, sale, or lease pursuant
to title VIII of this Act shall contain 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 a
provision that an amount not less than wages prevailing in the
locality, as predetermined by the Secretary of Labor pursuant
to the Act commonly known as the Davis-Bacon Act shall be paid
to all laborers and mechanics employed in the development of
the affordable housing involved.
Section 805(b)(2).--Section 805(b)(2) provides that the
requirements of section 805(b)(1) and the provisions relating
to wages required under section 805(b)(1) in any contract or
agreement for assistance, sale, or lease under title VIII of
this Act, 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.
Section 806.--Section 806 addresses environmental review,
decision making and action under the National Environmental
Policy Act.
Section 806(a)(1)(A).--Section 806(a)(1)(A) provides that
the Secretary may carry out the alternative environmental
protection procedures described in section 806(a)(1)(B) in
order to ensure that the policies of the National Environmental
Policy Act of 1969 and other provisions of law that further the
purposes of the Act, as specified in regulations issued by the
Secretary, are most effectively implemented in connection with
the expenditure of grant amounts provided under title VIII of
this Act and to ensure to the public undiminished protection of
the environment.
Section 806(a)(1)(B).--Section 806(a)(1)(B) provides that
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, decision-making, and action under the
National Environmental Policy Act of 1969, 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.
Section 806(a)(2).--Section 806(a)(2) provides that the
Secretary is to issue regulations to carry out section
806(a)(2) only after consultation with the Council on
Environmental Quality. Section 806(a)(2) further provides that
the regulations issued under this paragraph are to provide for
the monitoring of the environmental reviews performed under
section 806(a)(2), facilitate training for the performance of
such reviews if the Secretary in his discretion determines that
such training is necessary or desirable, and provide for the
suspension or termination of the assumption of responsibilities
under section 806(a)(2).
Section 806(a)(3).--Section 803(a)(3) provides that the
duty of the Secretary under section 806(a)(2)(B) is not to be
construed to limit or reduce any responsibility assumed by the
Department of Hawaiian Home Lands for grant amounts will
respect to any specific release of funds.
Section 806(b).--Section 806(b) provides that the Secretary
is to authorize the release of funds subject to the procedures
under section 806 only if, not less than fifteen days before
the Secretary's 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 a release
accompanied by a certification that meets the requirements of
section 806(c). Section 806(b) further provides that the
Secretary's approval of a certification is to be deemed to
satisfy the Secretary's responsibilities under the National
Environmental Policy Act of 1969 and such other provisions of
law as the Secretary's regulations specify to the extent that
those responsibilities relate to the release of funds for
projects that are covered by the Secretary's certification.
Section 806(c).--Section 806(c) provides that a
certification under the procedures authorized in section 806
are to be in a form acceptable to the Secretary, be executed by
the Director of the Department of Hawaiian Home Lands, specify
that the Department of Hawaiian Home Lands has fully carried
out it responsibilities as set forth in section 806(a), and
specify that the Director consents to assume the status of a
responsible Federal official under the National environmental
Policy Act of 1969 and each provision of law specified in
regulations issued by the Secretary to the extent that those
laws apply be reason of section 806(a). Section 806(c) further
provides that a certification under this procedures of section
806(c) shall specify that the Director is authorized and
consents on behalf of the Department of Hawaiian Home Lands and
that the Director accepts 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.
Section 807.--Section 807 provides that the Secretary shall
issue final regulations necessary to carry out the provisions
of title VIII of this Act no later than June 1, 1999.
Section 808.--Section 808 provides that except as otherwise
expressly provided in title VII of this Act, title VIII of this
Act shall take effect on June 1, 1999.
Section 809.--Section 809 addresses affordable housing
activities.
Section 809(a)(1).--Section 809(a)(1) provides that the
national objectives of title VIII of this Act are 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; to ensure
better access to private mortgage markets and to promote the
self-sufficiency of low-income Native Hawaiian families; to
coordinate activities to promote the self-sufficiency of low-
income Native Hawaiian families; to coordinate activities to
provide housing for low-income Native Hawaiian families with
Federal, state and local activities to further economic and
community development; to plan for and integrate infrastructure
resources on the Hawaiian Home Lands with housing development;
and to promote the development of private capital markets, and
allow the markets to operate and grow, thereby benefitting
Native Hawaiian communities.
Section 809(a)(2).--Section 809(a)(2) provides that
assistance for eligible housing activities under title VII of
this Act shall be limited to low-income Native Hawaiian
families except that the Director may provide assistance for
home ownership activities under section 810(b), model
activities under section 810(f), or 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 section 184A to address a need for housing for
those families that cannot be reasonably met without such
assistance. The Secretary is to establish limitations on the
amount of assistance that may be provided under the title VIII
of this Act for activities for families that are not low-income
families. However, section 809(a)(2) further provides that 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 the Department determines that the presence
of the family in the housing involved is essential to the well-
being of Native Hawaiian families and the need for housing for
the family cannot be reasonably met without such assistance.
Section 809(a)(2) provides that a housing plan submitted
under section 803 may authorize a preference, to the extent
practicable, for housing or housing assistance provided through
affordable housing activities assisted with grant amounts
provided under title VIII of this Act to be provided to
families that are eligible to reside on the Hawaiian Home
Lands. In any instance in which a housing plan provides for
such a preference, the Director is to ensure that housing
activities which are assisted with grant amounts under title
VIII of this Act are subject to that preference. Section
809(a)(2) further provides that as a condition of receiving
grant amounts under title VIII of this Act, and to the extent
practicable, the Department of Hawaiian Home Lands is to work
with or subcontract with 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.
Section 810(a).--Section 810(a) provides that affordable
housing activities under section 810 are activities conducted
in accordance with the requirement of section 811 to develop or
to support affordable housing for rental or home ownership or
provide housing services with respect to affordable housing,
through the activities described in section 810(b).
Section 810(b)(1).--Section 810(b)(1) provides that the
activities described in section 810(b) are the acquisition, new
construction, reconstruction, or moderate or substantial
rehabilitation of affordable housing, which may include real
property acquisition, site improvement, the development of
utilities and utility services, conversion, demolition,
financing, administration and planning, and other related
activities.
Section 810(b)(2).--Section 810(b)(2) describes the housing
services which are authorized under title VII of this Act, and
establishes that the provision of housing-related services for
affordable housing includes counseling in connection with
rental or home ownership assistance, the establishment and
support of resident organizations and resident management
corporations, energy auditing, activities related to the
provision of self-sufficiency and other services, and other
services related to assisting owners, tenants, contractors, and
other entities participating or seeking to participate in other
housing activities assisted pursuant to section 810.
Section 810(b)(3).--Section 810(b)(3) describes the housing
management services that are authorized under title VIII of
this Act, and establishes that the provision of management
services for affordable housing includes the preparation of
work specifications, loan processing, inspections, tenant
selection, management of tenant-based rental assistance, and
management of affordable housing projects.
Section 810(b)(4).--Section 810(b)(4) establishes that the
activities authorized under title VIII of this Act include the
provision of safety, security, and law enforcement measures and
activities appropriate to protect residents of affordable
housing from crime.
Section 810(b)(5).--Section 810(b)(5) establishes that the
activities authorized under title VIII of this Act include
housing activities under model programs that are designed to
carry out the purposes of title VIII and specifically approved
by the Secretary as appropriate for the purposes of title VIII.
Section 811(a).--Section 811(a) provides that as a
condition of receiving grant amounts under title VIII, the
Director is to develop written policies governing rents and
home buyer payments charged for dwelling units assisted under
title VIII, including methods by which such rents and home
buyer payments are determined. However, in the case of any low-
income family residing in a dwelling unit assisted with grant
amounts under title VIII, the monthly rent or home buyer
payment, as applicable, for that dwelling unit may not exceed
thirty percent of the monthly adjusted income of that family.
Section 811(b).--Section 811(b) provides that using amounts
of any grants received under title VIII, the Director is to
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. Section 811(b) further
provides that section 811(b) 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.
Section 811(c).--Section 811(c) provides that as a
condition of receiving grant amounts under title VIII, the
Director is to require adequate insurance coverage for housing
units that are owned or operated or assisted with grant amounts
provided under title VIII.
Section 811(d).--Section 811(d) provides that as a
condition of receiving grant amounts under title VIII, the
Director is to develop written policies governing the
eligibility, admission, and occupancy of families for housing
assisted with grant amounts provided under title VIII.
Section 811(e).--Section 811(e) provides that as a
condition to receiving grant amounts under title VIII, the
Director is to develop policies governing the management and
maintenance of housing assisted with grant amounts under title
VIII.
Section 812(a).--Section 812(a) provides that subject to
section 811 and an applicable housing plan approved under
section 803, the Director is to have the discretion to use
grant amounts for affordable housing activities through the use
of equity investments, interest-bearing loans or advances,
noninterest-bearing loans or advances, interest subsidies, the
leveraging of private investments, or any other form of
assistance that the Secretary determines to be consistent with
the purposes of title VIII, and the right to establish the
terms of assistance provided with funds referred to in section
812(a).
Section 812(b).--Section 812(b) provides authority for the
Director of the Department of Hawaiian Home Lands to invest
grant amounts in investment securities and other obligations,
as approved by the Secretary, for the purposes of carrying out
affordable housing activities.
Section 813.--Section 813 addresses low-income requirements
and income targeting.
Section 813(a).--Section 813 provides that housing is to
qualify for affordable housing for purposes of title VIII of
this Act if the conditions set forth in section 813(a)(1) and
813(a)(2) are met.
Section 813(a)(1).--Section 813(a)(1) provides that each
dwelling unit in the housing will qualify for affordable
housing if, in the case of rental housing, the housing is made
available for occupancy only by a family that is a low-income
family at the time of the initial occupancy by the family of
that unit, and in the case of housing for homeownership, the
housing is made available for purchase only by a family that is
a low-income family at the time of the purchase.
Section 813(a)(2).--Section 813(a)(2) provides that each
dwelling unit in the housing will remain affordable housing, in
accordance with binding commitments satisfactory to the
Secretary for 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 such other period as
the Secretary determines is the longest feasible period of time
consistent with sound economics and the purposes of title VIII
of this Act, except upon a foreclosure by a lender, or upon
other transfer in lieu of foreclosure, if that foreclosure or
transfer action recognizes any contractual or legal rights of a
public agency, nonprofit sponsor, or other person or entity to
take an action that would avoid termination of low-income
affordability, in the case of foreclosure or transfer ownership
in lieu of foreclosure, and is not for the purpose of avoiding
low-income affordability restrictions, as determined by the
Secretary.
Section 813(b).--Section 813(b) provides that
notwithstanding the provisions of section 813(a), housing
assisted pursuant to section 809(a)(2)(B) is to be considered
affordable housing for purposes of title VIII of this Act.
Section 814.--Section 814 sets forth the requirements for
leases and criteria for tenant and homebuyer selection.
Section 814(a).--Section 814(a) provides that 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 title VIII
of this Act, the Director, owner, or manager shall use--
Leases that do not contain unreasonable terms and
conditions; leases that require the Director, owner or
manager to maintain the housing in compliance with
applicable housing codes and quality standards;
Leases that 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;
Leases which 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;
Leases that require 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
Leases that provide that the Director, owner, and
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 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; 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 is criminal activity, including
drug-related criminal activity, on or off the premises.
Section 814(b).--Section 814(b) provides that as a
condition of receiving grant amounts under title VIII of this
Act, the Director shall adopt and use written tenant and
homebuyer selection policies and criteria that are consistent
with the purpose of providing housing for low-income families;
are reasonably related to program eligibility and the ability
of the applicant to perform the obligations of the lease; and
provide for 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 the prompt notification in writing to any rejected
applicant of the grounds for that rejection.
Section 815.--Section 815 provides that if the Department
of Hawaiian Home Lands uses grant amounts to provide affordable
housing under activities authorized by title VIII of this Act,
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 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
818(a)(1)(b), or require repayment to the Secretary of any
amount equal to those grant amounts.
Section 816.--Section 816 provides that 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 title VIII of this Act for
a grant under title VIII of this Act.
Section 817.--Section 817 addresses the establishment of an
allocation formula for the allocation of amounts made available
for block grants and the factors for the determination of need.
Section 817(a).--Section 817(a) provides that the Secretary
shall, by regulation issued not later than the expiration of
the six-month period beginning on the date of enactment of the
Native American Housing Assistance and Self-Determination
Amendments of 1998, 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 title VIII
of this Act in accordance with the requirements of section 817.
Section 817(b).--Section 817(b) provides that the formula
established under the authority of section 817(a) is to be
based on factors that reflect the needs for assistance for
affordable housing activities, including the number of low-
income dwelling units owned or operated at the time pursuant to
a contract between the Director and the Secretary; the extent
of poverty and economic distress and the number of Native
Hawaiian families eligible to reside on the Hawaiian Home
Lands; and any other objectively measurable conditions that the
Secretary and the Director may specify.
Section 817(c).--Section 817(c) provides that in
establishing the formula under the authority of section 817(a),
the Secretary is to consider the relative administrative
capacities of the Department of Hawaiian Home Lands and other
challenges faced by the Department, including geographic
distribution within Hawaiian Home Lands, and technical
capacity.
Section 817(d).--Section 817(d) provides that section 817
is to take effect on the date of enactment of the Native
American Housing Assistance and Self-Determination Amendments
of 1998.
Section 818.--Section 818 addresses the remedies available
to the Secretary for failure to comply with the requirements of
title VIII of this Act.
Section 818(a).--Section 818(a) provides that except as
provided in section 818(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 title VIII of this Act, the
Secretary shall terminate payments to the Department under
title VIII of this Act; reduce payments to the Department under
title VIII of this Act by an amount equal to the amount of such
payments that were not expended in accordance with title VIII
of this Act; or limit the availability of payments under title
VIII of this Act to programs, projects, or activities not
affected by the failure to comply. If the Secretary takes any
of the actions authorized under section 818(a), the Secretary
is to 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.
Section 818(b).--Section 818(b) provides that 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 title VIII of this Act in
compliance with the requirements under title VIII of this Act,
if the Secretary makes a finding under section 818(a) but
determines that the failure of the Department to comply
substantially with the provisions of title VIII of this Act is
not a pattern or practice of activities constituting willful
noncompliance and is a result of the limited capability or
capacity of the Department of Hawaiian Home Lands.
Section 818(c).--Section 818(c) provides that in lieu of,
or in addition to any action that the Secretary may take under
section 818(a), if the Secretary has reason to believe that the
Department of Hawaiian Home Lands has failed to comply
substantially with any provision of title VIII of this Act, the
Secretary may refer the matter to the Attorney General of the
United States with a recommendation than an appropriate civil
action be instituted. Upon receiving the Secretary's referral,
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 to recover
the amount of the assistance furnished under title VIII of this
Act that was not expended in accordance with title VIII of this
Act or for mandatory or injunctive relief.
Section 818(d)(1).--Section 818(d)(1) provides that if the
Director receives notice under section 818(a) of the
termination, reduction, or limitation of payments under this
Act, the Director may, not later than sixty 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 upon the filing of any
petition, the Director is to transmit copies of the petition to
the Secretary and the Attorney General of the United States,
who shall represent the Secretary in the litigation.
Section 818(d)(2).--Section 818(d)(2) provides that the
Secretary shall file in a court a record of the proceeding on
which the Secretary based the action as provided in section
2112 of title 28, United States Code. No objection to the
action of the Secretary is to be considered by the court unless
the Department has registered objection before the Secretary.
Section 818(d)(3).--Section 818(d)(3) provides that 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.
If supported by substantial evidence on the record considered
as a whole, the findings of fact by the Secretary shall be
conclusive. The court may order evidence, in addition to the
evidence submitted for review under section 818(d)(3), to be
taken by the Secretary, and to be made part of the record. By
reason of additional evidence and evidence filed with the
court, the Secretary may modify his findings of fact or make
new findings, and shall file such modified or new findings and
his recommendation, if any, for the modification or setting
aside of the original action of the Secretary. With respect to
a question of fact, the findings shall be considered to be
conclusive if those findings are supported by substantial
evidence on the record, and considered as a whole.
Section 818(d)(4).--Section 818(d)(4) provides that except
for review by the U.S. Supreme Court, upon the filing of the
record under section 818(d)(4) with the court, the jurisdiction
of the court shall be exclusive and the judgment of the court
shall be final. A judgment from the court under section
818(d)(4) shall be subject to review by the U.S. Supreme Court
upon writ of certiorari or certification as provided in section
1254 of title 28, United States Code.
Section 819.--Section 819 addresses the monitoring of
compliance by the Director of the Department of Hawaiian Home
Lands.
Section 819(a).--Section 819(a) provides that the Director,
through binding contractual agreements with owners or other
authorized entities shall ensure long-term compliance with the
provisions of title VIII of this Act. The binding contractual
agreements with owners or other authorized entities shall
provide for the enforcement of the provisions of title VIII of
this Act by the Department and the Secretary to the extent
allowable by Federal and state law, and remedies for breach of
the provisions of the binding contractual agreements.
Section 819(b).--Section 819(b) provides that not less
frequently than annually, the Director shall review the
activities conducted and housing assisted under title VIII of
this Act, to assess compliance with requirements of title VIII
of this Act. Each review is to include onsite inspection of
housing to determine compliance with applicable requirements.
The results of each review shall be included in a performance
report of the Director submitted to the Secretary under section
820 and made available to the public.
Section 819(c).--Section 819(c) provides that the Secretary
is to establish such performance measures as may be necessary
to assess compliance with the requirements of title VIII of
this Act.
Section 820.--Section 820 addresses the requirements for
performance reports.
Section 820(a).--Section 820(a) provides that for each
fiscal year, the Director is to 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
submit a report to the Secretary, in a form acceptable to the
Secretary, describing the conclusions of the review.
Section 820(b).--Section 820(b) provides that each
performance report submitted for a fiscal year is to describe
the use of grant amounts provided to the Department of Hawaiian
Home Lands for that fiscal year, and assess the relationship of
the use of grant amounts to the goals identified in the housing
plan submitted under section 803 as a result of its
experiences.
Section 820(c).--Section 820(c) provides that the Secretary
is to establish a date for the submission of each performance
report, review each performance report, and with respect to
each performance report, make such recommendations as the
Secretary considers appropriate to carry out the purposes of
title VIII of this Act.
Section 820(d).--Section 820(d) provides that in preparing
a performance report, the Director shall make the report
publicly available to the beneficiaries of the Hawaiian Homes
Commission Act, 1920, and give a sufficient amount of time to
permit those beneficiaries to comment on that report before it
is submitted to the Secretary, in such manner and at such time
as the Director may determine. The report is to include a
summary of any comments received by the Director from
beneficiaries regarding the program to carry out the housing
plan.
Section 821.--Section 821 provides authority for annual
performance reviews and audits by the Secretary.
Section 821(a).--Section 821(a) provides that 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 the Director has carried out eligible
activities under title VIII of this Act in a timely manner, has
carried out and made certifications in accordance with the
requirements and the primary objectives of title VIII of this
Act and with other applicable laws; and has a continuing
capacity to carry out the eligible activities in a timely
manner; whether the Director has complied with the housing plan
submitted by the Director under section 803, and whether the
performance reports of the Department under section 821 are
accurate. Each review conducted under section 821 shall, to the
extent practicable, include onsite visits by employees of the
Department of Housing and Urban Development.
Section 821(b).--Section 821(b) provides that the Secretary
is to give the Department of Hawaiian Home Lands not less than
thirty days to review and comment on a report under section
821(b). After taking into consideration the comments of the
Department, the Secretary is authorized to revise the report
and to make the comments of the Department and the report, with
any revisions, readily available to the public not later than
thirty days after receipt of the Department's comments.
Section 821(c).--Section 821(c) provides that the Secretary
may make appropriate adjustments in the amount of annual grants
under title VIII of this Act in accordance with the findings of
the Secretary pursuant to reviews and audits under section 821.
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 section 821, 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.
Section 822.--Section 822 provides that to the extent the
financial transactions of the Department of Hawaiian Home Lands
involving grant amounts under title VIII of this Act relate to
amounts provided under title VIII, 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.
Section 823.--Section 823 provides that no later than
ninety days after the conclusion of each fiscal year in which
assistance under title VIII of this Act is made available, the
Secretary shall submit a report to the Congress that contains a
description of the progress made in accomplishing the
objectives of title VIII of this Act, a summary of the use of
funds available under title VIII of this Act during the
preceding fiscal year, and a description of the aggregate
outstanding loan guarantees under section 184A of the Housing
and Community Development Act of 1992. The Secretary may
require the Director to submit such reports and other
information as may be necessary in order for the Secretary to
prepare the report required under section 823(a).
Section 824.--Section 824 provides authority for the
appropriation of funds for the Department of Housing and Urban
Development for grants under title VIII of this Act of such
sums as may be necessary for each of fiscal year 1999, 2000,
2001, 2002 and 2003.
Section 4.--Section 4 amends subtitle E of title I of the
Housing and Community Development Act of 1992 by inserting
after section 184, the following provisions--
Section 184A.--Section 184A provides for loan guarantees
for Native Hawaiian Housing.
Section 184A(a)--Section 184A(a) establishes the
definitions for purposes of the amendment to subtitle E of
title I of the Housing and Community Development Act of 1992.
Section 184A(a)(1).--Section 184A(a)(1) provides that for
purposes of section 184A, 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.
Section 184A(a)(2).--Section 184A(a)(2) provides that for
purposes of section 184A, the term ``eligible entity'' means a
Native Hawaiian family, the Department of Hawaiian Home Lands,
the Office of Hawaiian Affairs, or private nonprofit or for
profit organizations experienced in the planning and
development of affordable housing for Native Hawaiian.
Section 184A(a)(3).--Section 184A(a)(3) provides that for
purposes of section 184A, the term ``family'' means one or more
persons maintaining a household, as the Secretary shall by
regulation provide.
Section 184A(a)(4).--Section 184A(a)(4) provides that for
purposes of section 184A, the term ``guarantee fund'' means the
Native Hawaiian Housing Loan Guarantee Fund established under
section 184A(i).
Section 184A(a)(5).--Section 184A(a)(5) provides that for
purposes of section 184A, the term ``Hawaiian Home Lands''
means lands that have the status of Hawaiian Home Lands under
section 204 of the Hawaiian Homes Commission Act, 1920, or
lands that are acquired pursuant to that Act.
Section 184A(a)(6).--Section 184A(a)(6) provides that for
purposes of section 184A, the term ``Native Hawaiian'' has the
meaning given the term ``Native Hawaiian'' in section 201 of
the Hawaiian Homes Commission Act, 1920, as amended.
Section 184A(a)(7).--Section 184A(a)(7) provides that for
purposes of section 184A, the term ``Office of Hawaiian
Affairs'' means the entity of that name established under the
constitution of the State of Hawaii, as amended.
Section 184A(b).--Section 184A(b) provides that in order 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 one hundred percent of the unpaid principal and interest
that is due on an eligible loan under section 184A(b).
Section 184A(c).--Section 184A(c) establishes the
requirements for an eligible loan.
Section 184A(c)(1).--Section 184A(c)(1) provides that a
loan is an eligible loan if that loan is made only to a
borrower who is a Native Hawaiian family, the Department of
Hawaiian Home Lands, the Office of Hawaiian Affairs, or a
private nonprofit organization experience in the planning and
development of affordable housing for Native Hawaiians.
Section 184A(c)(2).--Section 184A(c)(2) provides that a
loan is an eligible loan if the loan will be used to construct,
acquire, or rehabilitate not more than four-family dwellings
that are standard housing and are located on Hawaiian Home
Lands for which a housing plan submitted under section 803 of
the Native American Housing Assistance and Self-Determination
Amendments of 1998 applies. The housing plan must be approved
by the secretary and must provide for the use of loan
guarantees under section 184A to provide affordable housing on
Hawaiian Home Lands.
Section 184A(c)(3).--Section 184A(c)(3) provides that the
loan may be secured by any collateral authorized under
applicable Federal or state law.
Section 184A(c)(4)(A).--Section 184A(c)(4)(A) provides that
the loan shall be made only by a lender approved by, and
meeting qualifications established by the Secretary including
any lender described in section 184A(c)(4)(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 section 184A.
Section 184A(c)(4)(B).--Section 184A(c)(4)(B) provides that
the following lenders shall be considered to be lenders that
have been approved by the Secretary--
Any mortgagee approved by the Secretary for
participation in the single family mortgage insurance
program under title II of the National Housing Act.
Any lender that makes housing loans under chapter 37
of title 38, Untied States Code, that are automatically
guaranteed under section 3702(d) of title 38, United
States Code.
Any lender approved by the Secretary of Agriculture
to make guaranteed loans for single family housing
under the Housing Act of 1949.
Any other lender that is supervised, approved,
regulated, or insured by any agency of the Federal
government.
Section 184A(c)(5).--Section 184A(c)(5) provides that the
loan shall be made for a term not exceeding thirty years, and
bear interest, exclusive of the guarantee fee under section
184A(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. The section further
provides that the loan must involve a principal obligation not
exceeding 97.75 percent of the appraised value of the property
as of the date of the loan is accepted for guarantee, or 98.75
percent if the value of the property is $50,000 or less, or the
amount approved by the Secretary under section 184A(c) and
involve a payment on account of the property in cash or its
equivalent or through the value of any improvements to the
property made through the skilled or unskilled labor of the
borrower, as the Secretary shall provide.
Section 184A(d).--Section 184A(d) provides that before the
Secretary approves any loan for guarantee under section
184A(d), the lender shall submit the application for the loan
to the Secretary for examination and if the Secretary approves
the application, the Secretary shall issue a certificate under
section 184A(d) as evidence of the loan guarantee approved. The
Secretary may approve a loan for guarantee under section
184A(d) only if he determines that there is a reasonable
prospect of repayment of the loan. A certificate of guarantee
issued under section 184A(d) by the Secretary is to serve as
conclusive evidence of the eligibility of the loan for
guarantee under section 184A(d) and the amount of that
guarantee, and shall be incontestable in the hands of the
bearer. 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 section 184A(d). Section 184A(d) may not be construed to
preclude the Secretary from establishing defenses against the
original lender based on fraud or material misrepresentation or
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.
Section 184A(e) provides that the Secretary shall fix and
collect a guarantee fee for the guarantee of a loan under
section 184A(e) which may not exceed the amount equal to one
percent of the principal obligation of the loan. The fee under
section 184A(e) is to be paid by the lender at time of issuance
of the guarantee and be adequate to cover expenses and probable
losses. The Secretary is to deposit any fees collected under
section 184A(e) in the Native Hawaiian Housing Loan Guarantee
Fund established under section 184A(j).
Section 184A(f).--Section 184A(f) provides that the
liability under a guarantee provided under section 184A 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.
Section 184A(g).--Section 184A(g) provides that
notwithstanding any other provision of law, any loan guaranteed
under section 184A, 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.
Section 184A(h).--Section 184A(h) provides that if the
Secretary determines that any lender or holder of a guarantee
certificate under section 184A(c) has failed to maintain
adequate accounting records, or to adequately service loans
guaranteed under section 184A, or to exercise proper credit or
underwriting judgment, or has engaged in practices otherwise
detrimental to the interest of a borrower or the United States,
the Secretary may take such actions as are authorized in
section 184A(h). Upon a determination by the Secretary that a
holder of a guarantee certificate under section 184A(c) has
failed to carry out an activity outlined in section 184A(h) or
has engaged in practices described in section 184A(h), the
Secretary is authorized to refuse, either temporarily or
permanently, to guarantee any further loans made by such lender
or holder, bar such lender or holder from acquiring additional
loans guaranteed under section 184A, and require that such
lender or holder assume not less than ten percent of any loss
on further loans made or held by the lender or holder that are
guaranteed under section 184A. In addition, the Secretary may
impose a civil monetary penalty on a lender or holder of a
guarantee certificate under the section 184A(d) if the
Secretary determines that the holder or lender has
intentionally failed to maintain adequate accounting records,
to adequately service loans guaranteed under section 184A, or
to exercise proper credit or underwriting judgment. A civil
monetary penalty imposed under section 184A(h) is to be imposed
in the manner and be in an amount provided under section 536 of
the National Housing Act with respect to mortgages and lenders
under that Act. However, notwithstanding the preceding
provisions of section 184A(h), if a loan was made in good
faith, the Secretary may not refuse to pay a lender or holder a
valid guarantee on that loan, without regard to whether the
lender or holder is barred under section 184A(h).
Section 184A(i).--Section 184A(i) provides that if a
borrower on a loan guaranteed under section 184A defaults on
the loan, the holder of the guarantee certificate is to provide
written notice of the default to the Secretary. Upon providing
the notice to the Secretary, the holder of the guarantee
certificate shall be entitled to payment under the guarantee,
subject to the provisions of section 184A, and may proceed to
obtain payment in one of the following manners--
The holder may initiate foreclosure proceedings,
after providing written notice of that action to the
Secretary.
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 section 184A(f), plus reasonable fees and
expenses as approved by the Secretary.
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.
Without seeking foreclosure, or in any case in which
a foreclosure proceeding which has been initiated
continues for a period in excess of one 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.
Upon assignment, the Secretary shall pay to the
holder of the guarantee the pro rata portion of the
amount guaranteed, as determined under section 184A(f).
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.
Section 184A(i) further provides that before any payment
under a guarantee is made, 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.
Section 184A(i) also authorizes the Secretary to take such
action to collect payment from the borrower as the Secretary
determines to be appropriate. If a borrower defaults on a loan
guaranteed under section 184A 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 to
the Department of Hawaiian Home Lands. Thereafter, if 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
except to another eligible Hawaiian family or to the Department
of Hawaiian Home Lands.
Section 184A(j)(1).--Section 184A(j)(1) provides
authorization for the establishment in the United States
Treasury a fund to be known as the Hawaiian Housing Loan
Guarantee Fund for the purpose of providing loan guarantees
under section 184A.
Section 184A(j)(2).--Section 184A(j)(2) provides that the
Guarantee Fund is to be credited with: any amount, claims,
notes, mortgages, contracts, and property acquired by the
Secretary under section 184A and any collections and proceeds
therefrom; any amounts appropriated pursuant to section
184A(j)(7); any guarantee fees collected under section 184A(d)
and any interest or earnings on amounts invested under section
184A(j)(4).
Section 184A(j)(3).--Section 184A(j)(3) provides that the
amounts in the Guarantee Fund shall be available, to the extent
provided in appropriations Act, for--
Fulfillng any obligations of the Secretary with
respect to loans guaranteed under section 184A,
including the costs, as that term is defined in section
502 of the Federal Credit Reform Act of 1990, of such
loans;
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 section 184A or
held by the Secretary;
Acquiring such security property at foreclosure sales
or otherwise;
Paying administrative expenses in connection with
section 184A; and
Reasonable and necessary costs of rehabilitation and
repair to properties that the Secretary holds or owns
pursuant to section 184A.
Section 184A(j)(4).--Section 184A(j)(4) provides that 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 section 184A may be invested in
obligations of the United States.
Section 184A(j)(5).--Section 184A(j)(5) provides that the
authority of the Secretary to enter into commitments to
guarantee loans under section 184A shall be effective for any
fiscal year to the extend, 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. Section
184A(j)(5) further provides that the authority of the Secretary
to enter into commitments to guarantee loans under section 184A
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, of such loan guarantees for such fiscal year. Any amounts
appropriated pursuant to section 184A(j)(5) shall remain
available until expended. Subject to these limitations, the
Secretary may enter into commitments to guarantee loans under
section 184A for each of fiscal years 1999, 2000, 2001, 2002,
and 2003 with an aggregate outstanding principal amount not
exceeding $100,000,000 for each fiscal year.
Section 184A(j)(6).--Section 184A(j)(6) provides that all
liabilities and obligations of the assets credited to the
Guarantee Fund under section 184A(j)(2) shall be liabilities
and obligations of the Guarantee Fund.
Section 184A(j)(7).--Section 184(j)(7) provides
authorization for appropriations to the Guarantee Fund to carry
out section 184A such sums as necessary be necessary for each
of fiscal years 1999, 2000, 2001, 2002, and 2003.
Section 184A(k)(1).--Section 184A(k)(l) provides that the
Secretary shall, by regulation, establish housing safety and
quality standards to be applied for use under section 184A.
Section 184A(k)(2).--Section 184A(k)(2) provides that the
standards are to provide sufficient flexibility to permit the
use of various designs and materials in housing acquired with
loans guaranteed under section 184A and require each dwelling
unit in any housing to be decent, safe, sanitary, and modest in
size and design; conform with applicable general construction
standards for the region in which the housing is located;
contain a plumbing system that uses a properly installed system
of piping, includes a kitchen sink and a partitional bathroom
with lavatory, toilet, and bath or shower, and uses water
supply, plumbing, and sewage disposal systems that conform to
any minimum standards established by the applicable country or
state; 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 country, state or national code; 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 section
184A(k)(2); and conform with the energy performance
requirements for new construction established by the Secretary
under section 526(a) of the National Housing Act, unless the
Secretary determines that the requirements are not applicable.
Section 184A(l).--Section 184A(l) provides that to the
extent that the requirements of title VI of the Civil Rights
Act of 1964 or of title VIII of the Civil Rights Act of 1968
apply to a guarantee provided under section 184A(l), 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.
Cost and Budgetary Considerations
The cost estimate for S. 109, as amended, as provided by
the Congressional Budget Office, is set forth below:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 22, 1998.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 109, Native American
Housing Assistance and Self-Determination Amendments of 1998.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts for federal
costs are Carla Pedone and Susanne Mehlman. The contact for
state and local impact is Leo Lex.
Sincerely,
June E. O'Neill, Director.
Congressional Budget Office Cost Estimate
S.109--Native American Housing Assistance and Self-Determination
Amendments of 1998
Summary.--S.109 would expand housing assistance of Native
Hawaiians by extending to them the same types of federal
housing programs available to American Indians and Alaska
Natives (AIANs). The bill would authorize block grants for
affordable housing activities by amending the Native American
Housing Assistance and Self-Determination Act of 1996
(NAHASDA). In addition, it would provide loan guarantees for
mortgages for owner- or renter-occupied housing by amending
section 184 of the Housing and Community Development Act of
1992.
S. 109 would authorize appropriations totaling an estimated
$215 million over the fiscal years 1999 through 2003, assuming
adjustments for inflation. Without adjustments for inflation
the total amount authorized would be an estimated $205 million.
CBO estimates that enactment of the bill would not affect
direct spending and would have a negligible effect on receipts.
Nevertheless, pay-as-you go procedures would apply.
This bill would impose no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA).
Estimated cost to the Federal Government.--The estimated
budgetary impact of S. 109 is shown in Table 1. CBO estimates
that the bill would authorize appropriations of $41 million in
1999; authorizations would increase to $45 million in 2003
assuming adjustments for inflation. Outlays from those
appropriations would total $3 million in 1999, increasing to
$39 million in 2003 with adjustments for inflation and to $37
million without adjustments for inflation.
TABLE 1. ESTIMATED COST TO THE FEDERAL GOVERNMENT
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
-----------------------------------------------
1998 1999 2000 2001 2002 2003
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
With Adjustments for Inflation
Spending under current law:
Estimated authorization level \1\........................... 605 646 661 676 0 0
Estimated outlays........................................... 73 240 383 508 514 449
Proposed changes:
Estimated authorization level............................... 0 41 42 43 44 45
Estimated outlays........................................... 0 3 16 26 33 39
Spending under S. 109:
Estimated authorization level \1\........................... 605 687 703 719 44 45
Estimated outlays........................................... 73 243 399 534 547 488
Without Adjustments for Inflation
Spending under current law:
Estimated authorization level \1\........................... 605 633 633 633 0 0
Estimated outlays........................................... 73 239 379 496 497 431
Proposed changes:
Estimated authorization level............................... 0 41 41 41 41 41
Estimated outlays........................................... 0 3 16 25 32 37
Spending under S. 109
Estimated authorization level \1\........................... 605 674 674 674 41 41
Estimated outlays........................................... 73 242 395 521 529 468
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year for NAHASDA and Indian Loan guarantees. The levels
in subsequent years are estimated authorization amounts.
The costs of this legislation fall within budget functions
370 (commerce and housing credit) and 600 (income security).
Basis of estimate.--The bill stipulates that the provisions
would take effect on June 1, 1999. CBO assumes that the
authorized amounts would be fully funded each fiscal year.
Block grants for affordable housing activities
Section 3 of S. 109 would add title VIII--Housing
Assistance for Native Hawaiians--to NAHASDA. That title would
make Native Hawaiians eligible for the types of block grants
that are available under current law to American Indians and
Alaska Natives. The block grants would be provided by the
Department of Housing and Urban Development (HUD) to the
Department of Hawaiian Home Lands, an agency of the government
of the state of Hawaii. That agency would in turn distribute
the grants by formula to the various areas of Hawaiian Home
Lands eligible to receive funds. Activities eligible for
funding would include the acquisition, development, and
rehabilitation of affordable rental or owner-occupied housing,
and the provision of housing services such as home ownership
counseling, self-sufficiency counseling, housing management
services, and crime prevention activities. The housing
assistance would generally be limited to Native Hawaiian
families who live on or near Hawaiian Home Lands and who have
incomes not exceeding 80 percent of the area median income,
adjusted for family size. Under the bill's definition, Native
Hawaiians are people with at least 50 percent Hawaiian
ancestry--an estimated 69,000 persons at present.
S. 109 would authorize, for each of the fiscal years 1999
through 2003, the appropriations necessary to carry out the
block grant program for Native Hawaiians. CBO estimates that
the authorization for fiscal year 1999 would be $33 million,
increasing gradually with inflation to $37 million in 2003 (see
Table 2).
The estimated amounts are based on the assumption that
appropriations for the Native Hawaiian block grants would be
proportional to the amount that was appropriated for fiscal
1998 under NAHASDA. The proportion was estimated so as to
reflect the need for assistance to Native Hawaiians relative to
the need for all tribes, with need defined by current
regulations. Under current policy, a share of annual
appropriations is first allocated to operate and maintain
existing federally assisted Indian housing. Native Hawaiians
would not qualify for this funding component because there is
no federally assisted housing on the Hawaiian Home Lands. The
remaining funds are distributed among Indian tribes according
to a needs-based formula, which is based on seven factors,
including the number of persons in the tribe, the number of
households with various types of housing problems, and the
number of households in various income categories. The
percentage of funds each tribe receives is adjusted further for
local housing development costs relative to the national
average.
TABLE 2. ESTIMATED AUTHORIZATIONS BY PROGRAM TYPE
------------------------------------------------------------------------
By fiscal year, in millions of dollars
---------------------------------------
1999 2000 2001 2002 2003
------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
With Adjustments for Inflation
Block grants:
Estimated authorization
level...................... 33 34 35 36 37
Estimated outlays........... 1 7 15 25 31
Loan guarantees:
Estimated authorization
level...................... 8 8 8 8 8
Estimated outlays........... 2 9 11 8 8
Total:
Estimated authorization
level...................... 41 42 43 44 45
Estimated outlays........... 3 16 26 33 39
Without Adjustments for Inflation
Block grants:
Estimated authorization
level...................... 33 33 33 33 33
Estimated outlays........... 1 6 14 24 29
Loan guarantees:
Estimated authorization
level...................... 8 8 8 8 8
Estimated outlays........... 2 9 11 8 8
Total:
Estimated authorization
level...................... 41 41 41 41 41
Estimated outlays........... 3 15 25 32 37
------------------------------------------------------------------------
Based on data provided by HUD, the Department of Hawaiian
Home Lands, and a recent study by the Urban Institute on
housing problems of Native Hawaiians, CBO estimates that in
1998 Native Hawaiians would have received roughly 8.6 percent
of the needs-based component if they had been eligible for
NAHASDA funding. In 1998, that component amounted to $347
million of the $600 million appropriated under NAHASDA. In
order not to diminish funding for AIANs, it would be necessary
to increase the needs-based component by about 9.4 percent or
$33 million.
Loan guarantees
Section 4 of S. 109 would establish a loan guarantee
program for Native Hawaiian housing similar to the current
Indian Housing Loan Guarantee program authorized under section
184 of the Housing and Community Development Act of 1992. HUD
would be authorized to guarantee up to $100 million of loans
each fiscal year over the 1999-2003 period. CBO assumes that
the 1999 subsidy rate for such loan guarantees would be similar
to that under the existing program--about 8.13 percent. CBO
estimates that such a program would require an appropriation of
about $8 million in fiscal year 1999 and total appropriations
of about $40 million over the next five years (see Table 2).
Section 4 also would provide for civil penalties against
lenders or holders of a guarantee certificate who have
intentionally failed to meet certain requirements. Payments of
such penalties would be recorded as miscellaneous receipts to
the Treasury. CBO expects that any increase in penalty
collections would be insignificant.
Pay-as-you-go considerations.--The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. Because
the civil penalties that would be imposed by section 4 of the
bill would constitute receipts, pay-as-you-go procedures would
apply. However, CBO estimates that those receipts would be
insignificant.
Intergovernmental and private-sector impact.--This bill
would not impose any intergovernmental or private-sector
mandates as defined in UMRA. The bill would provide funds to
the state of Hawaii in the form of housing assistance grants,
and any costs would be incurred as a condition of receiving
those grants. The state would also be eligible to receive
federal guarantees for low-income housing loans.
Estimate prepared by.--Federal costs: Carla Pedone and
Susanne Mehlman. Impact on State, local, and tribal
governments: Leo Lex. Impact on the private sector: Lesley
Frymier.
Estimate approved by.--Paul N. Van de Water, Assistant
Director for Budget Analysis.
Executive Communications
The position of the Administration on S. 109, as contained
in a letter to the Committee on Indian Affairs from the U.S.
Department of Justice, is set forth below:
Regulatory and Paperwork Impact
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires each report accompanying a bill to evaluate the
regulatory and paperwork impact that would be incurred in carry
out the bill. The Committee finds that S. 109, as amended, will
require the promulgation of regulations, but because the
Secretary of the Department of Housing and Urban Development
has already promulgated regulations through a negotiated
rulemaking process for the Native American Housing Assistance
and Self-Determination Act, the Regulatory and paperwork impact
should be minimized.
Changes in Existing Law
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by a
bill are required to be set forth in the accompanying Committee
report. Changes in existing law are outlined below, with
material to be deleted in brackets, and material to be added in
italic signified by quotation marks:
The Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.) is amended
by adding at the end the following:
``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS
``SEC. 801. DEFINITIONS.
``In this title:
``(1) Department of hawaiian home lands;
department.--The term `Department of Hawaiian Home
Lands' or `Department' means the agency or department
of the government of the State of Hawaii that is
responsible for the administration of the Hawaiian
Homes Commission Act, 1920 (42 Stat. 108 et seq.).
``(2) Director.--The term `Director' means the
Director of the Department of Hawaiian Home Lands.
``(3) Elderly families; near-elderly families.--
``(A) In general.--The term `elderly family'
or `near-elderly family' means a family whose
head (or his or her spouse), or whose 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 (42 Stat. 110); or
``(B) are acquired pursuant to that Act.
``(5) Housing area.--The term `housing area' means an
areas 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'
has the meaning given the term `Native Hawaiian' in
section 201 of the Hawaiian Homes Commission Act, 1920
(42 Stat. 108 et seq.).
``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 on or near 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 receive
under this title for an 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) cost 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 entitles, in
implementing a housing plan that has been approved by the
Secretary under section 803.
``(f) Applicability of Others Provisions.--
``(1) In general.--The Secretary shall be guided by
the relevant program requirements of titles, I, II, and
IV in the implementation of housing assistance programs
for Native Hawaiians under this title.
``(2) Exception.--The Secretary may make exceptions
to, or modifications of, program requirements for
Native American housing assistance set forth in titles
I, II, and IV as necessary and appropriate to meet the
unique situation and housing needs of Native Hawaiians.
``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; and
``(ii) the manner in which the
characteristics referred to in clause
(i) influence the decision of the
Department of Hawaiian Home Lands to
use grant amounts to be provided under
this title for--
``(I) rental assistance;
``(II) the production of new
units;
``(III) the acquisition of
existing units; or
``(IV) the rehabilitation of
units;
``(iii) a description of the
structure, coordination, and means of
cooperation between the Department of
Hawaiian Home Lands and any other
governmental entities in the
development, submission, or
implementation of housing plans,
including a description of--
``(I) the involvement of
private, public, and nonprofit
organizations and institutions;
``(II) the use of loan
guarantees under section 184A
of the Housing and Community
Development Act of 1992; and
``(III) other housing
assistance provided by the
United States, including loans,
grants, and mortgage insurance;
``(iv) a description of the manner in
which the plan will address the needs
identified pursuant to subparagraph
(C);
``(v) a description of--
``(I) any existing or
anticipated homeownership
programs and rental programs to
be carried out during the
period covered by the plan; and
``(II) the requirements and
assistance available under the
programs referred to in
subclause (I);
``(vi) a description of--
``(I) any existing or
anticipated housing
rehabilitation programs
necessary to ensure the long-
term viability of the housing
to be carried out during the
period covered by the plan; and
``(II) the requirements and
assistance available under the
programs referred to in
subclause (I);
``(vii) a description of--
``(I) all other existing or
anticipated housing assistance
provided by the Department of
Hawaiian Home Lands during the
period covered by the plan,
including--
``(aa) transitional
housing;
``(bb) homeless
housing;
``(cc) college
housing; and
``(dd) supportive
services housing; and
``(II) the requirements and
assistance available under such
programs;
``(viii)(I) a description of any
housing to be demolished or disposed
of;
``(II) a timetable for that
demolition or disposition; and
``(III) any other information
required by the Secretary with respect
to that demolition or disposition;
``(ix) a description of the manner in
which the Department of Hawaiian Home
Lands will coordinate with welfare
agencies in the State of Hawaii to
ensure that residents of the affordable
housing will be provided with access to
resources to assist in obtaining
employment and achieving self-
sufficiency;
``(x) a description of the
requirements established by the
Department of Hawaiian Home Lands to--
``(I) promote the safety of
residents of the affordable
housing;
``(II) facilitate the
undertaking of crime prevention
measures;
``(III) allow resident input
and involvement, including the
establishment of resident
organizations; and
``(IV) allow for the
coordination of crime
prevention activities between
the Department and local law
enforcement officials; and
``(xi) a description of the entities
that will carry out the activities
under the plan, including the
organizational capacity and key
personnel of the entities.
``(E) Certification of compliance.--Evidence
of compliance that shall include, as
appropriate--
``(i) a certification that the
Department of Hawaiian Home Lands will
comply with--
``(I) title VI of the Civil
Rights Act of 1964 (42 U.S.C.
2000d et seq). or with title
VIII of the Civil Rights Act of
1968 (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 title VIII of the
Civil Rights Act of 1968 (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 2000.
``SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.
``(a) Program Income.--
``(1) Authority to retain.--The Department of
Hawaiian Home Lands may retain any program income that
is realized from any grant amounts received by the
Department under this title if--
``(A) that income was realized after the
initial disbursement of the grant amounts
received by the Department; and
``(B) the Director agrees to use the program
income for affordable housing activities in
accordance with the provisions of this title.
``(2) Prohibition of reduction of grant.--The
Secretary may not reduce the grant amount for the
Department of Hawaiian Home Lands based solely on--
``(A) whether the Department retains program
income under paragraph (1); or
``(B) the amount of any such program income
retained.
``(3) Exclusion of amounts.--The Secretary may, by
regulation, exclude from consideration as program
income any amounts determined to be so small that
compliance with the requirements of this subsection
would create an unreasonable administrative burden on
the Department.
``(b) Labor Standards.--
``(1) In general.--Any contract or agreement for
assistance, sale, or lease pursuant to this title shall
contain--
``(A) a provision requiring that an amount
not less than the wages prevailing in the
locality, as determined or adopted (subsequent
to a determination under applicable State or
local law) by the Secretary, shall be paid to
all architects, technical engineers, draftsmen,
technicians employed in the development and all
maintenance, and laborers and mechanics
employed in the operation, of the affordable
housing project involved; and
``(B) a provision that an amount not less
than the wages prevailing in the locality, as
predetermined by the Secretary of Labor
pursuant to the Act commonly known as the
`Davis-Bacon Act' (46 Stat. 1494, chapter 411;
40 U.S.C. 276a et seq.) shall be paid to all
laborers and mechanics employed in the
development of the affordable housing involved.
``(2) Exceptions.--Paragraph (1) and provisions
relating to wages required under paragraph (1) in any
contract or agreement for assistance, sale, or lease
under this title, shall not apply to any individual who
performs the services for which the individual
volunteered and who is not otherwise employed at any
time in the construction work and received no
compensation or is paid expenses, reasonable benefits,
or a nominal fee for those services.
``SEC. 806. ENVIRONMENTAL REVIEW.
``(a) In General.--
``(1) Release of funds.--
``(A) In general.--The Secretary may carry
out the alternative environmental protection
procedures described in subparagraph (B) in
order to ensure--
``(i) that the policies of the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) and other
provisions of law that further the
purposes of such Act (as specified in
regulations issued by the Secretary)
are most effectively implemented in
connectionwith 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 release 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 accepts 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 June 1, 1999.
``SEC. 808. EFFECTIVE DATE.
``Except as otherwise expressly provided in this title,
this title shall take effect on June 1, 1999.
``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. 180. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
``(a) In General.--Affordable housing activities under this
section are activities conducted in accordance with the
requirements of section 811 to--
``(1) develop or to support affordable housing for
rental or homeownership; or
``(2) provide housing services with respect to
affordable housing, through the activities described in
subsection (b).
``(b) Activities.--The activities described in this
subsection are the following:
``(1) Development.--The acquisition, new
construction, reconstruction, or moderate or
substantial rehabilitation of affordable housing, which
may include--
``(A) real property acquisition;
``(B) site improvement;
``(C) the development of utilities and
utility services;
``(D) conversion;
``(E) demolition;
``(F) financing;
``(G) administration and planning; and
``(H) other related activities.
``(2) Housing services.--The provision of housing-
related services for affordable housing, including--
``(A) housing counseling in connection with
rental or homeownership assistance;
``(B) the establishment and support of
resident organizations and resident management
corporations;
``(C) energy auditing;
``(D) activities related to the provision 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 of the Department of
Hawaiian Home Lands 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, and 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 to
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 authority of section
818(a)(1)(B)); 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 native American
Housing Assistance and Self-Determination Amendments of 1998,
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 Native American Housing Assistance
and Self-Determination Amendments of 1998.
``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 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 any
appropriate civil action to 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 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 the
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 1999,
2000, 2001, 2002 and 2003.''.
* * * * * * *
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, or
private nonprofit or 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) of this section.
``(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 required pursuant to that Act.
``(6) Native hawaiian.--The term `Native Hawaiian'
has the meaning given the terms `native Hawaiian' in
section 201 of the Hawaiian Homes Commission Act, 1920
(42 Stat. 108 et seq.).
``(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--
``(A) is 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 sub-
paragraph (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 Amendments of
1998; 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 law 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) involves a payment on account of the
property--
``(i) in cash or its equivalent; or
``(ii) through the value of any
improvements to the property made
through the skilled or unskilled labor
of the borrower, as the Secretary shall
provide.
``(d) Certificate of Guarantee.--
``(1) Approval process.--
``(A) In general.--Before the Secretary
approves any loan for guarantee under this
section, the lender shall submit the
application for the loan to the Secretary for
examination.
``(B) Approval.--If the Secretary approves
the application submitted under subparagraph
(A), the Secretary shall issue a certificate
under this subsection as evidence of the loan
guarantee approved.
``(2) Standard for approval.--The Secretary may
approve a loan for guarantee under this section and
issue a certificate under this subsection only if the
Secretary determines that there is a reasonable
prospect of repayment of the loan.
``(3) Effect.--
``(A) In general.--A certificate of guarantee
issued under this subsection by the Secretary
shall be conclusive evidence of the eligibility
of the loan for guarantee under this section
and the amount of that guarantee.
``(B) Evidence.--The evidence referred to in
subparagraph (A) shall be incontestable in the
hands of the bearer.
``(C) Full faith and credit.--The full faith
and credit of the United States is pledged to
the payment of all amounts agreed to be paid by
the Secretary as security for the obligations
made by the Secretary under this section.
``(4) Fraud and misrepresentation.--This subsection
may not be construed--
``(A) to preclude the Secretary from
establishing defenses against the original
lender based on fraud or material
misrepresentation; or
``(B) to bar the Secretary from establishing
by regulations that are on the date of issuance
or disbursement, whichever is earlier, partial
defenses to the amount payable on the
guarantee.
``(e) Guarantee Fee.--
``(1) In general.--The Secretary shall fix and
collect a guarantee fee for the guarantee of a loan
under this section, which may not exceed the amount
equal to 1 percent of the principal obligation of the
loan.
``(2) Payment.--The fee under this subsection shall--
``(A) be paid by the lender at time of
issuance of the guarantee; and
``(B) be adequate, In the determination of
the Secretary, to cover expenses and probable
losses.
``(3) Deposit.--The Secretary shall deposit any fees
collected under this subsection in the Native Hawaiian
Housing Loan Guarantee Fund established under
subsection (j).
``(f) Liability Under Guarantee.--The liability under a
guarantee provided under this section shall decrease or
increase on a pro rata basis according to any decrease or
increase in the amount of the unpaid obligation under the
provisions of the loan agreement involved.
``(g) Transfer and Assumption.--Notwithstanding any other
provision of law, any loan guaranteed under this section,
including the security given for the loan, may be sold or
assigned by the lender to any financial institution subject to
examination and supervision by an agency of the Federal
Government or of any State or the District of Columbia.
``(h) Disqualification of Lenders and Civil Money
Penalties.--
``(1) In general.--
``(A) Grounds for action.--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 serve 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, the
Secretary may take action under
subparagraph (B).
``(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) Penalities.--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
foreclosureproceeding
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 right 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 of 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) Limitation 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 to 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 any collections and proceeds
therefrom:
``(B) any amounts appropriated pursuant to
paragraph (7);
``(C) any guarantee fees collected under
subsection (d); and
``(D) any interest or earnings on amounts
invested under paragraph (4).
``(3) Use.--Amounts in the Guarantee Funds shall be a
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 those section; and
``(E) reasonable and necessary costs of
rehabilitation and repair to properties that
the Secretary hold 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 our 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 of 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 1999,
2000, 2001, 2002, and 2003 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 1999, 2000, 2001, 2002, and
2003.
``(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 title VIII of the
Civil Rights Act of 1968 (42 U.S.C. 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.''.
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APPENDIX A
Hawaiian Homes Commission Act
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APPENDIX B
Hawaiian Admission Act
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APPENDIX C
Hawaiian State Constitution, as amended
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APPENDIX D
Department of Hawaiian Home Lands
Beneficiary Needs Study, 1995
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APPENDIX E
Executive Summary
Housing Problems and Needs of Native Hawaiians
Study prepared for the
U.S. Department of Housing and Urban Development
by
The Urban Institute, Center for Public Finance and Housing
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