[House Report 106-553]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-553
======================================================================
AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000
_______
March 29, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Leach, from the Committee on Banking and Financial Services,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 1776]
The Committee on Banking and Financial Services, to whom
was referred the bill (H.R. 1776) to expand homeownership in
the United States, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American
Homeownership and Economic Opportunity Act of 2000''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.
TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
Sec. 101. Short title.
Sec. 102. Housing impact analysis.
Sec. 103. Grants for regulatory barrier removal strategies.
Sec. 104. Eligibility for community development block grants.
Sec. 105. Regulatory barriers clearinghouse.
TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES
Sec. 201. Extension of loan term for manufactured home lots.
Sec. 202. Downpayment simplification.
Sec. 203. Reduced downpayment requirements for loans for teachers and
uniformed municipal employees.
Sec. 204. Preventing fraud in rehabilitation loan program.
Sec. 205. Neighborhood teacher program.
Sec. 206. Community development financial institution risk-sharing
demonstration.
Sec. 207. Hybrid ARMs.
Sec. 208. Home equity conversion mortgages.
Sec. 209. Law enforcement officer homeownership pilot program.
Sec. 210. Study of mandatory inspection requirement under single family
housing mortgage insurance program.
Sec. 211. Report on title I home improvement loan program.
TITLE III--SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled
families.
Sec. 303. Funding for pilot programs.
TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Public services cap.
Sec. 404. Homeownership for municipal employees.
Sec. 405. Technical amendment relating to brownfields.
Sec. 406. Income eligibility.
Sec. 407. Housing opportunities for persons with AIDS.
TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM
Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing
associations.
Sec. 503. Administrative costs.
Sec. 504. Leveraging affordable housing investment through local loan
pools.
Sec. 505. Homeownership for municipal employees.
Sec. 506. Use of section 8 assistance by ``grand-families'' to rent
dwelling units in assisted projects.
Sec. 507. Loan guarantees.
Sec. 508. Downpayment assistance for 2- and 3-family residences.
TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES
Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.
Sec. 602. Homeownership zones.
Sec. 603. Lease-to-own.
Sec. 604. Local capacity building.
Sec. 605. Consolidated application and planning requirement and super-
NOFA.
Sec. 606. Assistance for self-help housing providers.
Sec. 607. Housing counseling organizations.
Sec. 608. Community lead information centers and lead-safe housing.
TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP
Sec. 701. Lands Title Report Commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.
TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
NONPROFIT ORGANIZATIONS
Sec. 801. Transfer of unoccupied and substandard HUD-held housing to
local governments and community development corporations.
Sec. 802. Transfer of HUD assets in revitalization areas.
TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
Sec. 901. Short title.
Sec. 902. Changes in amortization schedule.
Sec. 903. Deletion of ambiguous references to residential mortgages.
Sec. 904. Cancellation rights after cancellation date.
Sec. 905. Clarification of cancellation and termination issues and
lender paid mortgage insurance disclosure requirements.
Sec. 906. Definitions.
TITLE X--RURAL HOUSING HOMEOWNERSHIP
Sec. 1001. Promissory note requirement under housing repair loan
program.
Sec. 1002. Limited partnership eligibility for farm labor housing
loans.
Sec. 1003. Project accounting records and practices.
Sec. 1004. Definition of rural area.
Sec. 1005. Operating assistance for migrant farmworkers projects.
Sec. 1006. Multifamily rental housing loan guarantee program.
Sec. 1007. Enforcement provisions.
Sec. 1008. Amendments to title 18 of United States Code.
TITLE XI--MANUFACTURED HOUSING IMPROVEMENT
Sec. 1101. Short title and references.
Sec. 1102. Findings and purposes.
Sec. 1103. Definitions.
Sec. 1104. Federal manufactured home construction and safety standards.
Sec. 1105. Abolishment of National Manufactured Home Advisory Council;
manufactured home installation.
Sec. 1106. Public information.
Sec. 1107. Research, testing, development, and training.
Sec. 1108. Fees.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) the priorities of our Nation should include expanding
homeownership opportunities by providing access to affordable
housing that is safe, clean, and healthy;
(2) our Nation has an abundance of conventional capital
sources available for homeownership financing;
(3) experience with local homeownership programs has shown
that if flexible capital sources are available, communities
possess ample will and creativity to provide opportunities
uniquely designed to assist their citizens in realizing the
American dream of homeownership; and
(4) each consumer should be afforded every reasonable
opportunity to access mortgage credit, to obtain the lowest
cost mortgages for which the consumer can qualify, to know the
true cost of the mortgage, to be free of regulatory burdens,
and to know what factors underlie a lender's decision regarding
the consumer's mortgage.
(b) Purpose.--It is the purpose of this Act--
(1) to encourage and facilitate homeownership by families in
the United States who are not otherwise able to afford
homeownership; and
(2) to expand homeownership through policies that--
(A) promote the ability of the private sector to
produce affordable housing without excessive government
regulation;
(B) encourage tax incentives, such as the mortgage
interest deduction, at all levels of government; and
(C) facilitate the availability of flexible capital
for homeownership opportunities and provide local
governments with increased flexibility under existing
Federal programs to facilitate homeownership.
TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
SEC. 101. SHORT TITLE.
This title may be cited as the ``Housing Affordability Barrier
Removal Act of 2000''.
SEC. 102. HOUSING IMPACT ANALYSIS.
(a) Applicability.--Except as provided in subsection (b), the
requirements of this section shall apply with respect to--
(1) any proposed rule, unless the agency promulgating the
rule--
(A) has certified that the proposed rule will not, if
given force or effect as a final rule, have a
significant deleterious impact on housing
affordability; and
(B) has caused such certification to be published in
the Federal Register at the time of publication of
general notice of proposed rulemaking for the rule,
together with a statement providing the factual basis
for the certification; and
(2) any final rule, unless the agency promulgating the rule--
(A) has certified that the rule will not, if given
force or effect, have a significant deleterious impact
on housing affordability; and
(B) has caused such certification to be published in
the Federal Register at the time of publication of the
final rule, together with a statement providing the
factual basis for the certification.
Any agency making a certification under this subsection shall provide a
copy of such certification and the statement providing the factual
basis for the certification to the Secretary of Housing and Urban
Development.
(b) Exception for Certain Banking Rules.--The requirements of this
section shall not apply to any proposed or final rule relating to--
(1) the operations, safety, or soundness of--
(A) federally insured depository institutions or any
affiliate of such an institution (as such term is
defined in section 2(k) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841(k));
(B) credit unions;
(C) the Federal home loan banks;
(D) the enterprises (as such term is defined in
section 1303 of the Housing and Community Development
Act of 1992 (12 U.S.C. 4502);
(E) a Farm Credit System institution; or
(F) foreign banks or their branches, agencies,
commercial lending companies, or representative offices
that operate in the United States, or any affiliate of
a foreign bank (as such terms are defined in section 1
of the International Banking Act of 1978 (12 U.S.C.
3101); or
(2) the payments system or the protection of deposit
insurance funds or the Farm Credit Insurance Fund.
(c) Statement of Proposed Rulemaking.--Whenever an agency publishes
general notice of proposed rulemaking for any proposed rule, unless the
agency has made a certification under subsection (a), the agency
shall--
(1) in the notice of proposed rulemaking--
(A) state with particularity the text of the proposed
rule; and
(B) request any interested persons to submit to the
agency any written analyses, data, views, and
arguments, and any specific alternatives to the
proposed rule that--
(i) accomplish the stated objectives of the
applicable statutes, in a manner comparable to
the proposed rule;
(ii) result in costs to the Federal
Government equal to or less than the costs
resulting from the proposed rule; and
(iii) result in housing affordability greater
than the housing affordability resulting from
the proposed rule;
(2) provide an opportunity for interested persons to take the
actions specified under paragraph (1)(B) before promulgation of
the final rule; and
(3) prepare and make available for public comment an initial
housing impact analysis in accordance with the requirements of
subsection (d).
(d) Initial Housing Impact Analysis.--
(1) Requirements.--Each initial housing impact analysis shall
describe the impact of the proposed rule on housing
affordability. The initial housing impact analysis or a summary
shall be published in the Federal Register at the same time as,
and together with, the publication of general notice of
proposed rulemaking for the rule. The agency shall transmit a
copy of the initial housing impact analysis to the Secretary of
Housing and Urban Development.
(2) Monthly hud listing.--On a monthly basis, the Secretary
of Housing and Urban Development shall cause to be published in
the Federal Register, and shall make available through a World
Wide Web site of the Department, a listing of all proposed
rules for which an initial housing impact analysis was prepared
during the preceding month.
(3) Contents.--Each initial housing impact analysis required
under this subsection shall contain--
(A) a description of the reasons why action by the
agency is being considered;
(B) a succinct statement of the objectives of, and
legal basis for, the proposed rule;
(C) a description of and, where feasible, an estimate
of the extent to which the proposed rule would increase
the cost or reduce the supply of housing or land for
residential development; and
(D) an identification, to the extent practicable, of
all relevant Federal rules which may duplicate,
overlap, or conflict with the proposed rule.
(e) Proposal of Less Deleterious Alternative Rule.--
(1) Analysis.--The agency publishing a general notice of
proposed rulemaking shall review any specific analyses and
alternatives to the proposed rule which have been submitted to
the agency pursuant to subsection (c)(2) to determine whether
any alternative to the proposed rule--
(A) accomplishes the stated objectives of the
applicable statutes, in a manner comparable to the
proposed rule;
(B) results in costs to the Federal Government equal
to or less than the costs resulting from the proposed
rule; and
(C) results in housing affordability greater than the
housing affordability resulting from the proposed rule.
(2) New notice of proposed rulemaking.--If the agency
determines that an alternative to the proposed rule meets the
requirements under subparagraphs (A) through (C) of paragraph
(1), unless the agency provides an explanation on the record
for the proposed rule as to why the alternative should not be
implemented, the agency shall incorporate the alternative into
the final rule or, at the agency's discretion, issue a new
proposed rule which incorporates the alternative.
(f) Final Housing Impact Analysis.--
(1) Requirement.--Whenever an agency promulgates a final rule
after publication of a general notice of proposed rulemaking,
unless the agency has made the certification under subsection
(a), the agency shall prepare a final housing impact analysis.
(2) Contents.--Each final housing impact analysis shall
contain--
(A) a succinct statement of the need for, and
objectives of, the rule;
(B) a summary of the significant issues raised during
the public comment period in response to the initial
housing impact analysis, a summary of the assessment of
the agency of such issues, and a statement of any
changes made in the proposed rule as a result of such
comments; and
(C) a description of and an estimate of the extent to
which the rule will impact housing affordability or an
explanation of why no such estimate is available.
(3) Availability.--The agency shall make copies of the final
housing impact analysis available to members of the public and
shall publish in the Federal Register such analysis or a
summary thereof.
(g) Avoidance of Duplicative or Unnecessary Analyses.--
(1) Duplication.--Any Federal agency may perform the analyses
required by subsections (d) and (f) in conjunction with or as a
part of any other agenda or analysis required by any other law,
executive order, directive, or rule if such other analysis
satisfies the provisions of such subsections.
(2) Joinder.--In order to avoid duplicative action, an agency
may consider a series of closely related rules as one rule for
the purposes of subsections (d) and (f).
(h) Preparation of Analyses.--In complying with the provisions of
subsections (d) and (f), an agency may provide either a quantifiable or
numerical description of the effects of a proposed rule or alternatives
to the proposed rule, or more general descriptive statements if
quantification is not practicable or reliable.
(i) Effect on Other Law.--The requirements of subsections (d) and (f)
do not alter in any manner standards otherwise applicable by law to
agency action.
(j) Procedure for Waiver or Delay of Completion.--
(1) Initial housing impact analysis.--An agency head may
waive or delay the completion of some or all of the
requirements of subsection (d) by publishing in the Federal
Register, not later than the date of publication of the final
rule, a written finding, with reasons therefor, that the final
rule is being promulgated in response to an emergency that
makes compliance or timely compliance with the provisions of
subsection (a) impracticable.
(2) Final housing impact analysis.--An agency head may not
waive the requirements of subsection (f). An agency head may
delay the completion of the requirements of subsection (f) for
a period of not more than 180 days after the date of
publication in the Federal Register of a final rule by
publishing in the Federal Register, not later than such date of
publication, a written finding, with reasons therefor, that the
final rule is being promulgated in response to an emergency
that makes timely compliance with the provisions of subsection
(f) impracticable. If the agency has not prepared a final
housing impact analysis pursuant to subsection (f) within 180
days from the date of publication of the final rule, such rule
shall lapse and have no force or effect. Such rule shall not be
repromulgated until a final housing impact analysis has been
completed by the agency.
(k) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Housing affordability.--The term ``housing
affordability'' means the quantity of housing that is
affordable to families having incomes that do not exceed 150
percent of the median income of families in the area in which
the housing is located, with adjustments for smaller and larger
families. For purposes of this paragraph, area, median family
income for an area, and adjustments for family size shall be
determined in the same manner as such factors are determined
for purposes of section 3(b)(2) of the United States Housing
Act of 1937.
(2) Agency.--The term ``agency'' means each authority of the
Government of the United States, whether or not it is within or
subject to review by another agency, but does not include--
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or possessions
of the United States;
(D) the government of the District of Columbia;
(E) agencies composed of representatives of the
parties or of representatives of organizations of the
parties to the disputes determined by them;
(F) courts-martial and military commissions;
(G) military authority exercised in the field in time
of war or in occupied territory; or
(H) functions conferred by--
(i) sections 1738, 1739, 1743, and 1744 of
title 12, United States Code;
(ii) chapter 2 of title 41, United States
Code;
(iii) subchapter II of chapter 471 of title
49, United States Code; or
(iv) sections 1884, 1891-1902, and former
section 1641(b)(2), of title 50, appendix,
United States Code.
(3) Families.--The term ``families'' has the meaning given
such term in section 3 of the United States Housing Act of
1937.
(4) Rule.--The term ``rule'' means any rule for which the
agency publishes a general notice of proposed rulemaking
pursuant to section 553(b) of title 5, United States Code, or
any other law, including any rule of general applicability
governing grants by an agency to State and local governments
for which the agency provides an opportunity for notice and
public comment; except that such term does not include a rule
of particular applicability relating to rates, wages, corporate
or financial structures or reorganizations thereof, prices,
facilities, appliances, services, or allowances therefor or to
valuations, costs or accounting, or practices relating to such
rates, wages, structures, prices, appliances, services, or
allowances.
(5) Significant.--The term ``significant'' means increasing
consumers' cost of housing by more than $100,000,000 per year.
(l) Development.--Not later than 1 year after the date of the
enactment of this title, the Secretary of Housing and Urban Development
shall develop model initial and final housing impact analyses under
this section and shall cause such model analyses to be published in the
Federal Register. The model analyses shall define the primary elements
of a housing impact analysis to instruct other agencies on how to carry
out and develop the analyses required under subsections (a) and (d).
(m) Judicial Review.--
(1) Determination by agency.--Except as otherwise provided in
paragraph (2), any determination by an agency concerning the
applicability of any of the provisions of this title to any
action of the agency shall not be subject to judicial review.
(2) Other actions by agency.--Any housing impact analysis
prepared under subsection (d) or (f) and the compliance or
noncompliance of the agency with the provisions of this title
shall not be subject to judicial review. When an action for
judicial review of a rule is instituted, any housing impact
analysis for such rule shall constitute part of the whole
record of agency action in connection with the review.
(3) Exception.--Nothing in this subsection bars judicial
review of any other impact statement or similar analysis
required by any other law if judicial review of such statement
or analysis is otherwise provided by law.
SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.
(a) Authorization of Appropriations.--Subsection (a) of section 1204
of the Housing and Community Development Act of 1992 (42 U.S.C.
12705c(a)) is amended to read as follows:
``(a) Funding.--There is authorized to be appropriated for grants
under subsections (b) and (c) $15,000,000 for fiscal year 2001 and such
sums as may be necessary for each of fiscal years 2002, 2003, 2004, and
2005.''.
(b) Consolidation of State and Local Grants.--Subsection (b) of
section 1204 of the Housing and Community Development Act of 1992 (42
U.S.C. 12705c(b)) is amended--
(1) in the subsection heading, by striking ``State Grants''
and inserting ``Grant Authority'';
(2) in the matter preceding paragraph (1), by inserting after
``States'' the following: ``and units of general local
government (including consortia of such governments)'';
(3) in paragraph (3), by striking ``a State program to reduce
State and local'' and inserting ``State, local, or regional
programs to reduce'';
(4) in paragraph (4), by inserting ``or local'' after
``State''; and
(5) in paragraph (5), by striking ``State''.
(c) Repeal of Local Grants Provision.--Section 1204 of the Housing
and Community Development Act of 1992 (42 U.S.C. 12705c) is amended by
striking subsection (c).
(d) Application and Selection.--The last sentence of section 1204(e)
of the Housing and Community Development Act of 1992 (42 U.S.C.
12705c(e)) is amended--
(1) by striking ``and for the selection of units of general
local government to receive grants under subsection (f)(2)'';
and
(2) by inserting before the period at the end the following:
``and such criteria shall require that grant amounts be used in
a manner consistent with the strategy contained in the
comprehensive housing affordability strategy for the
jurisdiction pursuant to section 105(b)(4) of the Cranston-
Gonzalez National Affordable Housing Act''.
(e) Selection of Grantees.--Subsection (f) of section 1204 of the
Housing and Community Development Act of 1992 (42 U.S.C. 12705c(f)) is
amended to read as follows:
``(f) Selection of Grantees.--To the extent amounts are made
available to carry out this section, the Secretary shall provide grants
on a competitive basis to eligible grantees based on the proposed uses
of such amounts, as provided in applications under subsection (e).''.
(f) Technical Amendments.--Section 107(a)(1) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5307(a)(1)) is amended--
(1) in subparagraph (G), by inserting ``and'' after the
semicolon at the end;
(2) by striking subparagraph (H); and
(3) by redesignating subparagraph (I) as subparagraph (H).
SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT BLOCK GRANTS.
(a) In General.--Section 104(c)(1) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5304(c)(1)) is amended by inserting
before the comma the following: ``, which shall include making a good
faith effort to carry out the strategy established under section
105(b)(4) of such Act by the unit of general local government to remove
barriers to affordable housing''.
(b) Rule of Construction.--The amendment made by subsection (a) may
not be construed to create any new private right of action.
SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.
Section 1205 of the Housing and Community Development Act of 1992 (42
U.S.C. 12705d) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``receive, collect, process, and assemble''
and inserting ``serve as a national repository to
receive, collect, process, assemble, and disseminate'';
(B) in paragraph (1)--
(i) by striking ``, including'' and inserting
``(including''; and
(ii) by inserting before the semicolon at the
end the following: ``), and the prevalence and
effects on affordable housing of such laws,
regulations, and policies'';
(C) in paragraph (2), by inserting before the
semicolon the following: ``, including particularly
innovative or successful activities, strategies, and
plans''; and
(D) in paragraph (3), by inserting before the period
at the end the following: ``, including particularly
innovative or successful strategies, activities, and
plans'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(3) by making available through a World Wide Web site of
the Department, by electronic mail, or otherwise, provide to
each housing agency of a unit of general local government that
serves an area having a population greater than 100,000, an
index of all State and local strategies and plans submitted
under subsection (a) to the clearinghouse, which--
``(A) shall describe the types of barriers to
affordable housing that the strategy or plan was
designed to ameliorate or remove; and
``(B) shall, not later than 30 days after submission
to the clearinghouse of any new strategy or plan, be
updated to include the new strategy or plan
submitted.''; and
(3) by adding at the end the following new subsections:
``(c) Organization.--The clearinghouse under this section shall be
established within the Office of Policy Development of the Department
of Housing and Urban Development and shall be under the direction of
the Assistant Secretary for Policy Development and Research.
``(d) Timing.--The clearinghouse under this section (as amended by
section 105 of the Housing Affordability Barrier Removal Act of 2000)
shall be established and commence carrying out the functions of the
clearinghouse under this section not later than 1 year after the date
of the enactment of such Act. The Secretary of Housing and Urban
Development may comply with the requirements under this section by
reestablishing the clearinghouse that was originally established to
comply with this section and updating and improving such clearinghouse
to the extent necessary to comply with the requirements of this section
as in effect pursuant to the enactment of such Act.''.
TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES
SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME LOTS.
Section 2(b)(3)(E) of the National Housing Act (12 U.S.C.
1703(b)(3)(E)) is amended by striking ``fifteen'' and inserting
``twenty''.
SEC. 202. DOWNPAYMENT SIMPLIFICATION.
(a) In General.--Section 203(b) of the National Housing Act (12
U.S.C. 1709(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by realigning the matter
that precedes clause (ii) an additional 2 ems from the
left margin;
(B) in the matter that follows subparagraph
(B)(iii)--
(i) by striking the 6th sentence (relating to
the increases for costs of solar energy
systems) and all that follows through the end
of the penultimate undesignated paragraph; and
(ii) by striking the 2d and 3rd sentences of
such matter; and
(C) by striking subparagraph (B);
(2) by transferring and inserting subparagraph (A) of
paragraph (10) after subparagraph (A) of paragraph (2) and
amending such subparagraph by striking all of the matter that
precedes clause (i) and inserting the following:
``(B) not to exceed an amount equal to the sum of--
'';
(3) by transferring and inserting the last undesignated
paragraph of paragraph (2) (relating to disclosure notice)
after subsection (e), realigning such transferred paragraph so
as to be flush with the left margin, and amending such
transferred paragraph by inserting ``(f) Disclosure of Other
Mortgage Products.--'' before ``In conjunction'';
(4) by transferring and inserting the sentence that
constitutes the text of paragraph (10)(B) after the period at
the end of the first sentence that follows subparagraph (B)
(relating to the definition of ``area''); and
(5) by striking paragraph (10) (as amended by the preceding
provisions this section).
(b) Conforming Amendments.--Section 245 of the National Housing Act
(12 U.S.C. 1715z-10) is amended--
(1) in subsection (a), by striking ``, or if the mortgagor''
and all that follows through ``case of veterans''; and
(2) in subsection (b)(3), by striking ``, or, if the'' and
all that follows through ``for veterans,''.
SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND
UNIFORMED MUNICIPAL EMPLOYEES.
(a) In General.--Section 203(b) of the National Housing Act (12
U.S.C. 1709(b)), as amended by section 202 of this Act, is further
amended by adding at the end the following new paragraph:
``(10) Reduced downpayment requirements for teachers and
uniformed municipal employees.--
``(A) In general.--Notwithstanding paragraph (2), in
the case of a mortgage described in subparagraph (B)--
``(i) the mortgage shall involve a principal
obligation in an amount that does not exceed
the sum of 99 percent of the appraised value of
the property and the total amount of initial
service charges, appraisal, inspection, and
other fees (as the Secretary shall approve)
paid in connection with the mortgage;
``(ii) no other provision of this subsection
limiting the principal obligation of the
mortgage based upon a percentage of the
appraised value of the property subject to the
mortgage shall apply; and
``(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply and
the mortgage shall be executed by a mortgagor
who shall have paid on account of the property
at least 1 percent of the cost of acquisition
(as determined by the Secretary) in cash or its
equivalent.
``(B) Mortgages covered.--A mortgage described in
this subparagraph is a mortgage--
``(i) under which the mortgagor is an
individual who--
``(I) is employed on a full-time
basis as (aa) a teacher or
administrator in a public or private
school that provides elementary or
secondary education, as determined
under State law, except that secondary
education shall not include any
education beyond grade 12, or (bb) a
public safety officer (as such term is
defined in section 1204 of the Omnibus
Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3796b), except that
such term shall not include any officer
serving a public agency of the Federal
Government); and
``(II) has not, during the 12-month
period ending upon the insurance of the
mortgage, had any present ownership
interest in a principal residence
located in the jurisdiction described
in clause (ii); and
``(ii) made for a property that is located
within the jurisdiction of--
``(I) in the case of a mortgage of a
mortgagor described in clause
(i)(I)(aa), the local educational
agency (as such term is defined in
section 14101 of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 8801)) for the school in which
the mortgagor is employed (or, in the
case of a mortgagor employed in a
private school, the local educational
agency having jurisdiction for the area
in which the private school is
located); or
``(II) in the case of a mortgage of a
mortgagor described in clause
(i)(I)(bb), the jurisdiction served by
the public law enforcement agency,
firefighting agency, or rescue or
ambulance agency that employs the
mortgagor.''.
(b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of
the National Housing Act (12 U.S.C. 1709(c)(2)) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``Notwithstanding'' and inserting ``Except as
provided in paragraph (3) and notwithstanding''; and
(2) by adding at the end the following new paragraph:
``(3) Deferral and reduction of up-front premium.--In the case of any
mortgage described in subsection (b)(10)(B):
``(A) Paragraph (2)(A) of this subsection (relating to
collection of up-front premium payments) shall not apply.
``(B) If, at any time during the 5-year period beginning on
the date of the insurance of the mortgage, the mortgagor ceases
to be employed as described in subsection (b)(10)(B)(i)(I) or
pays the principal obligation of the mortgage in full, the
Secretary shall at such time collect a single premium payment
in an amount equal to the amount of the single premium payment
that, but for this paragraph, would have been required under
paragraph (2)(A) of this subsection with respect to the
mortgage, as reduced by 20 percent of such amount for each
successive 12-month period completed during such 5-year period
before such cessation or prepayment occurs.''.
SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN PROGRAM.
(a) In General.--Section 203(k) of the National Housing Act (12
U.S.C. 1709(k)) is amended by adding at the end the following new
paragraph:
``(7) Prevention of fraud.--To prevent fraud under the program for
loan insurance authorized under this subsection, the Secretary shall,
by regulation, take the following actions:
``(A) Prohibition of identity of interest.--The Secretary
shall prohibit any identity-of-interest, as such term is
defined by the Secretary, between any of the following parties
involved in a loan insured under this subsection: the borrower
(including, in the case of a borrower that is a nonprofit
organization, any member of the board of directors or the staff
of the organization), the lender, any consultant, any real
estate agent, any property inspector, and any appraiser.
Nothing in this subparagraph may be construed to prohibit or
restrict, or authorize the Secretary to prohibit or restrict,
the functioning of a affiliated business arrangement that
complies with the requirements under section 8(c)(4) of the
Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
2607(c)(4)).
``(B) Nonprofit participation.--The Secretary shall establish
minimum standards for a nonprofit organization to participate
in the program, which shall include--
``(i) requiring such an organization to disclose to
the Secretary its taxpayer identification number and
evidence sufficient to indicate that the organization
is an organization described in section 501(c) of the
Internal Revenue Code of 1986 that is exempt from
taxation under subtitle A of such Code;
``(ii) requiring that the board of directors of such
an organization be comprised only of individuals who do
not receive any compensation or other thing of value by
reason of their service on the board and who have no
personal financial interest in the rehabilitation
project of the organization that is financed with the
loan insured under this subsection;
``(iii) requiring such an organization to submit to
the Secretary financial statements of the organization
for the most recent 2 years, which have been prepared
by a party that is unaffiliated with the organization
and is qualified to prepare financial statements;
``(iv) limiting to 10 the number of loans that are
insured under this subsection, made to any single such
organization, and, at any one time, have an outstanding
balance of principal or interest, except that the
Secretary may increase such numerical limitation on a
case-by-case basis for good cause shown; and
``(v) requiring such an organization to have been
certified by the Secretary as meeting the requirements
under this subsection and otherwise eligible to
participate in the program not more than 2 years before
obtaining a loan insured under this section.
``(C) Completion of work.--The Secretary shall prohibit any
lender making a loan insured under this subsection from
disbursing the final payment of loan proceeds unless the lender
has received affirmation, from the borrower under the loan,
both in writing and pursuant to an interview in person or over
the telephone, that the rehabilitation activities financed by
the loan have been satisfactorily completed.
``(D) Consultant standards.--The Secretary shall require that
any consultant, as such term is defined by the Secretary, who
is involved in a home inspection, site visit, or preparation of
bids with respect to any loan insured under this section shall
meet such standards established by the Secretary to ensure
accurate inspections and preparation of bids.
``(E) Contractor qualification.--The Secretary shall require,
in the case of any loan that is insured under this subsection
and involves rehabilitation with a cost of $25,000 or more,
that the contractor or other person performing or supervising
the rehabilitation activities financed by the loan shall--
``(i) be certified by a nationally recognized
organization as meeting industry standards for quality
of workmanship, training, and continuing education,
including financial management;
``(ii) be licensed to conduct such activities by the
State or unit of general local government in which the
rehabilitation activities are being completed; or
``(iii) be bonded or provide such equivalent
protection, as the Secretary may require.''.
(b) Report on Activity of Nonprofit Organizations Under Program.--Not
later than 60 days after the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a report to the
Congress regarding the participation of nonprofit organizations under
the rehabilitation loan program under section 203(k) of the National
Housing Act (12 U.S.C. 1709(k)). The report shall--
(1) determine and describe the extent of participation in the
program by such organizations;
(2) identify and compare the default and claim rates for
loans made under the program to nonprofit organizations and to
owner-occupier participants;
(3) analyze the impact, on such organizations and the
program, of prohibiting such organizations from participating
in the program; and
(4) identify other opportunities for such organizations to
acquire financing or credit enhancement for rehabilitation
activities.
(c) Regulations.--The Secretary of Housing and Urban Development
shall issue final regulations and any other administrative orders or
notices necessary to carry out the provisions of this section and the
amendments made by this section not later than 120 days after the date
of the enactment of this Act.
SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.
(a) Short Title.--This section may be cited as the ``Neighborhood
Teachers Act''.
(b) Congressional Findings.--The Congress finds that--
(1) teachers are an integral part of our communities;
(2) other than families, teachers are often the most
important mentors to children, providing them with the values
and skills for self-fulfillment in adult life; and
(3) the Neighborhood Teachers Act recognizes the value
teachers bring to community and family life and is designed to
encourage and reward teachers that serve in our most needy
communities.
(c) Discount and Downpayment Assistance for Teachers.--Section 204(h)
of the National Housing Act (12 U.S.C. 1710(h)) is amended--
(1) by redesignating paragraphs (7) through (10) as
paragraphs (8) through (11), respectively; and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) 50 percent discount for teachers purchasing properties
that are eligible assets.--
``(A) Discount.--A property that is an eligible asset
and is sold, during fiscal years 2000 through 2004, to
a teacher for use in accordance with subparagraph (B)
shall be sold at a price that is equal to 50 percent of
the appraised value of the eligible property (as
determined in accordance with paragraph (6)(B)). In the
case of a property eligible for both a discount under
this paragraph and a discount under paragraph (6), the
discount under paragraph (6) shall not apply.
``(B) Primary residence.--An eligible property sold
pursuant to a discount under this paragraph shall be
used, for not less than the 3-year period beginning
upon such sale, as the primary residence of a teacher.
``(C) Sale methods.--The Secretary may sell an
eligible property pursuant to a discount under this
paragraph--
``(i) to a unit of general local government
or nonprofit organization (pursuant to
paragraph (4) or otherwise), for resale or
transfer to a teacher; or
``(ii) directly to a purchaser who is a
teacher.
``(D) Resale.--In the case of any purchase by a unit
of general local government or nonprofit organization
of an eligible property sold at a discounted price
under this paragraph, the sale agreement under
paragraph (8) shall--
``(i) require the purchasing unit of general
local government or nonprofit organization to
provide the full benefit of the discount to the
teacher obtaining the property; and
``(ii) in the case of a purchase involving
multiple eligible assets, any of which is such
an eligible property, designate the specific
eligible property or properties to be subject
to the requirements of subparagraph (B).
``(E) Mortgage downpayment assistance.--If a teacher
purchases an eligible property pursuant to a discounted
sale price under this paragraph and finances such
purchase through a mortgage insured under this title,
notwithstanding any provision of section 203 the
downpayment on such mortgage shall be $100.
``(F) Prevention of undue profit.--The Secretary
shall issue regulations to prevent undue profit from
the resale of eligible properties in violation of the
requirement under subparagraph (B).
``(G) Awareness program.--From funds made available
for salaries and expenses for the Office of Policy
Support of the Department of Housing and Urban
Development, each field office of the Department shall
make available to elementary schools and secondary
schools within the jurisdiction of the field office and
to the public--
``(i) a list of eligible properties located
within the jurisdiction of the field office
that are available for purchase by teachers
under this paragraph; and
``(ii) other information designed to make
such teachers and the public aware of the
discount and downpayment assistance available
under this paragraph.
``(H) Definitions.--For the purposes of this
paragraph, the following definitions shall apply:
``(i) The terms `elementary school' and
`secondary school' have the meanings given such
terms in section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
8801), except that, for purposes of this
paragraph, elementary education (as used in
such section) shall include pre-Kindergarten
education.
``(ii) The term `eligible property' means an
eligible asset described in paragraph (2)(A) of
this subsection.
``(iii) The term `teacher' means an
individual who is employed on a full-time
basis, in an elementary or secondary school, as
a State-certified classroom teacher or
administrator.''.
(d) Conforming Amendments.--Section 204(h) of the National Housing
Act (12 U.S.C. 1710(h)) is amended--
(1) in paragraph (4)(B)(ii), by striking ``paragraph (7)''
and inserting ``paragraph (8)'';
(2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' and
inserting ``paragraph (8)''; and
(3) in paragraph (6)(A), by striking ``paragraph (8)'' and
inserting ``paragraph (9)''.
(e) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary shall issue regulations to
implement the amendments made by this section.
SEC. 206. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION RISK-SHARING
DEMONSTRATION.
Section 249 of the National Housing Act (12 U.S.C. 1715z-14) is
amended--
(1) by striking the section heading and inserting the
following:
``risk-sharing demonstration'';
(2) by striking ``reinsurance'' each place such term appears
and insert ``risk-sharing'';
(3) in subsection (a)--
(A) in the first sentence, by striking ``private
mortgage insurers'' and inserting ``insured community
development financial institutions''; and
(B) in the second sentence--
(i) by striking ``two'' and inserting ``4'';
and
(ii) by striking ``March 15, 1988'' and
inserting ``the expiration of the 5-year period
beginning on the date of the enactment of the
American Homeownership and Economic Opportunity
Act of 2000'';
(4) in subsection (b)--
(A) by striking ``private mortgage insurance
companies'' each place such term appears and inserting
``insured community development financial
institutions'';
(B) in the first sentence, by striking ``which have
been determined to be qualified insurers under section
302(b)(2)(C)'';
(C) by striking paragraph (1) and inserting the
following new paragraph:
``(1) assume the first loss on any mortgage insured pursuant
to section 203(b), 234, or 245 that covers a one- to four-
family dwelling and is included in the program under this
section, up to the percentage of loss that is set forth in the
risk-sharing contract;''; and
(D) in paragraph (2)--
(i) by striking ``carry out (under
appropriate delegation) such'' and inserting
``delegate underwriting,''; and
(ii) by striking ``function'' and inserting
``functions'';
(5) in subsection (c)--
(A) in the first sentence--
(i) by striking ``of'' the first place it
appears and insert ``for'';
(ii) by striking ``insurance reserves'' and
inserting ``loss reserves''; and
(iii) by striking ``such insurance'' and
inserting ``such reserves''; and
(B) in the second sentence, by striking ``private
mortgage insurance company'' and inserting ``insured
community development financial institution'';
(6) in subsection (d), by striking ``private mortgage
insurance company'' and inserting ``insured community
development financial institution''; and
(7) by adding at the end the following new subsection:
``(e) Insured Community Development Financial Institutions.--For
purposes of this section, the term `insured community development
financial institution' means a community development financial
institution, as such term is defined in section 103 of Reigle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)
that is an insured depository institution (as such term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an
insured credit union (as such term is defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752)).''.
SEC. 207. HYBRID ARMS.
(a) In General.--Section 251 of the National Housing Act (12 U.S.C.
1715z-16) is amended--
(1) in subsection (a), by inserting ``In General.--'' after
``(a)'';
(2) by striking subsection (b) and inserting the following
new subsection:
``(b) Disclosure.--In the case of any loan application for a mortgage
to be insured under any provision of this section, the Secretary shall
require that the prospective mortgagee for the mortgage shall, at the
time of loan application, make available to the prospective mortgagor a
written explanation of the features of an adjustable rate mortgage
consistent with the disclosure requirements applicable to variable rate
mortgages secured by a principal dwelling under the Truth in Lending
Act (15 U.S.C. 1601 et seq.).'';
(3) in subsection (c), by inserting ``Limitation on Insurance
Authority.--'' after ``(c)''; and
(4) by adding at the end the following new subsection:
``(d) Hybrid ARMs.--The Secretary may insure under this subsection a
mortgage that--
``(1) has an effective rate of interest that shall be--
``(A) fixed for a period of not less than the first 3
years of the mortgage term;
``(B) initially adjusted by the mortgagee upon the
expiration of such period and annually thereafter; and
``(C) in the case of the initial interest rate
adjustment, shall be subject to the limitation under
clause (2) of the last sentence of subsection (a)
(relating to prohibiting annual increases of more than
1 percent) only if the interest rate remains fixed for
5 or fewer years; and
``(2) otherwise meets the requirements for insurance under
subsection (a) that are not inconsistent with the requirements
under paragraph (1) of this subsection.''.
(b) Implementation.--The Secretary of Housing and Urban Development
may implement section 251(d) of the National Housing Act (12 U.S.C.
1715z-16(d)), as added by subsection (a) of this section, in advance of
rulemaking.
SEC. 208. HOME EQUITY CONVERSION MORTGAGES.
(a) Insurance for Mortgages to Refinance Existing HECMs.--
(1) In General.--Section 255 of the National Housing Act (12
U.S.C. 1715z-20) is amended--
(A) by redesignating subsection (k) as subsection
(m); and
(B) by inserting after subsection (j) the following
new subsection:
``(k) Insurance Authority for Refinancings.--
``(1) In general.--The Secretary may, upon application by a
mortgagee, insure under this subsection any mortgage given to
refinance an existing home equity conversion mortgage insured
under this section.
``(2) Anti-churning disclosure.--The Secretary shall, by
regulation, require that the mortgagee of a mortgage insured
under this subsection, provide to the mortgagor, within an
appropriate time period and in a manner established in such
regulations, a good faith estimate of: (A) the total cost of
the refinancing; and (B) the increase in the mortgagor's
principal limit as measured by the estimated initial principal
limit on the mortgage to be insured under this subsection less
the current principal limit on the home equity conversion
mortgage that is being refinanced and insured under this
subsection.
``(3) Waiver of counseling requirement.--The mortgagor under
a mortgage insured under this subsection may waive the
applicability, with respect to such mortgage, of the
requirements under subsection (d)(2)(B) (relating to third
party counseling), but only if--
``(A) the mortgagor has received the disclosure
required under paragraph (2);
``(B) the increase in the principal limit described
in paragraph (2) exceeds the amount of the total cost
of refinancing (as described in such paragraph) by an
amount to be determined by the Secretary; and
``(C) the time between the closing of the original
home equity conversion mortgage that is refinanced
through the mortgage insured under this subsection and
the application for a refinancing mortgage insured
under this subsection does not exceed 5 years.
``(4) Credit for premiums paid.--Notwithstanding section
203(c)(2)(A), the Secretary may reduce the amount of the single
premium payment otherwise collected under such section at the
time of the insurance of a mortgage refinanced and insured
under this subsection. The amount of the single premium for
mortgages refinanced under this subsection shall be determined
by the Secretary based on the actuarial study required under
paragraph (5).
``(5) Actuarial study.--Not later than 180 days after the
date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall conduct
an actuarial analysis to determine the adequacy of the
insurance premiums collected under the program under this
subsection with respect to--
``(A) a reduction in the single premium payment
collected at the time of the insurance of a mortgage
refinanced and insured under this subsection;
``(B) the establishment of a single national limit on
the benefits of insurance under subsection (g)
(relating to limitation on insurance authority); and
``(C) the combined effect of reduced insurance
premiums and a single national limitation on insurance
authority.
``(6) Fees.--The Secretary may establish a limit on the
origination fee that may be charged to a mortgagor under a
mortgage insured under this subsection, except that such
limitation shall provide that the origination fee may be fully
financed with the mortgage and shall include any fees paid to
correspondent mortgagees approved by the Secretary. The
Secretary shall prohibit the charging of any broker fees in
connection with mortgages insured under this subsection.''.
(2) Regulations.--The Secretary shall issue any final
regulations necessary to implement the amendments made by
paragraph (1) of this subsection, which shall take effect not
later than the expiration of the 180-day period beginning on
the date of the enactment of this Act. The regulations shall be
issued after notice and opportunity for public comment in
accordance with the procedure under section 553 of title 5,
United States Code, applicable to substantive rules
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
section).
(b) Housing Cooperatives.--Section 255(b) of the National Housing Act
(12 U.S.C. 1715z-20(b)) is amended--
(1) in paragraph (2), by striking `` `mortgage',''; and
(2) by adding at the end the following new paragraphs:
``(4) Mortgage.--The term `mortgage' means a first mortgage
or first lien on real estate, in fee simple, on all stock
allocated to a dwelling in a residential cooperative housing
corporation, or on a leasehold--
``(A) under a lease for not less than 99 years that
is renewable; or
``(B) under a lease having a period of not less than
10 years to run beyond the maturity date of the
mortgage.
``(5) First mortgage.--The term `first mortgage' means such
classes of first liens as are commonly given to secure advances
on, or the unpaid purchase price of, real estate or all stock
allocated to a dwelling unit in a residential cooperative
housing corporation, under the laws of the State in which the
real estate or dwelling unit is located, together with the
credit instruments, if any, secured thereby.''.
(c) Waiver of Up-Front Premiums for Mortgages Used for Costs of Long-
Term Care Insurance or Health Care.--Section 255 of the National
Housing Act (12 U.S.C. 1715z-20) is amended by inserting after
subsection (k) (as added by subsection (a) of this section) the
following new subsection:
``(l) Waiver of Up-Front Premiums.--
``(1) Mortgages to fund long-term care insurance.--In the
case of any mortgage insured under this section under which the
total amount (except as provided in paragraph (3)) of all
future payments described in subsection (b)(3) will be used
only for costs of a qualified long-term care insurance contract
(as such term is defined in section 7702B of the Internal
Revenue Code of 1986 (26 U.S.C. 7702B)) that covers the
mortgagor or members of the household residing in the property
that is subject to the mortgage, notwithstanding section
203(c)(2), the Secretary shall not charge or collect the single
premium payment otherwise required under subparagraph (A) of
such section to be paid at the time of insurance.
``(2) Mortgages to fund health care costs.--In the case of
any mortgage insured under this section under which the future
payments described in subsection (b)(3) will be used only for
costs for health care services (as such term is defined by the
Secretary) for the mortgagor or members of the household
residing in the property that is subject to the mortgage and
comply with limitations on such payments, as shall be
established by the Secretary and based upon the purposes of
this subsection and the accumulated equity of the mortgagor in
the property, notwithstanding section 203(c)(2), the Secretary
shall not charge or collect the single premium payment
otherwise required under subparagraph (A) of such section to be
paid at the time of insurance.
``(3) Authority to refinance existing mortgage and finance
closing costs.--A mortgage described in paragraphs (1) or (2)
may provide financing of amounts that are used to satisfy
outstanding mortgage obligations (in accordance with such
limitations as the Secretary shall prescribe) any amounts used
for initial service charges, appraisal, inspection, and other
fees (as approved by the Secretary) in connection with such
mortgage, and the amount of future payments described in
subsection (b)(3) under the mortgage shall be reduced
accordingly.''.
(d) Study of Single National Mortgage Limit.--The Secretary of
Housing and Urban Development shall conduct an actuarially based study
of the effects of establishing, for mortgages insured under section 255
of the National Housing Act (12 U.S.C. 1715z-20), a single maximum
mortgage amount limitation in lieu of applicability of section
203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The study shall--
(1) examine the effects of establishing such limitation at
different dollar amounts; and
(2) examine the effects of such various limitations on--
(A) the risks to the General Insurance Fund
established under section 519 of such Act;
(B) the mortgage insurance premiums that would be
required to be charged to mortgagors to ensure
actuarial soundness of such Fund; and
(C) take into consideration the various approaches to
providing credit to borrowers who refinance home equity
conversion mortgages insured under section 255 of such
Act.
Not later than 180 days after the date of the enactment of this Act,
the Secretary shall complete the study under this subsection and submit
a report describing the study and the results of the study to the
Committee on Banking and Financial Services of the House of
Representatives and to the Committee on Banking, Housing, and Urban
Affairs of the Senate.
SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT PROGRAM.
(a) Assistance for Law Enforcement Officers.--The Secretary of
Housing and Urban Development shall carry out a pilot program in
accordance with this section to assist Federal, State, and local law
enforcement officers purchasing homes in locally-designated high-crime
areas.
(b) Eligibility.--To be eligible for assistance under this section, a
law enforcement officer shall--
(1) have completed not less than 6 months of service as a law
enforcement officer as of the date that the law enforcement
officer applies for such assistance; and
(2) agree, in writing, to use the residence purchased with
such assistance as the primary residence of the law enforcement
officer for not less than 3 years after the date of purchase.
(c) Mortgage Assistance.--If a law enforcement officer purchases a
home in locally-designated high-crime area and finances such purchase
through a mortgage insured under title II of the National Housing Act
(12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203
or any other provision of the National Housing Act, the following shall
apply:
(1) Downpayment.--
(A) In general.--There shall be no downpayment
required if the purchase price of the property is not
more than the reasonable value of the property, as
determined by the Secretary.
(B) Purchase price exceeds value.--If the purchase
price of the property exceeds the reasonable value of
the property, as determined by the Secretary, the
required downpayment shall be the difference between
such reasonable value and the purchase price.
(2) Closing costs.--The closing costs and origination fee for
such mortgage may be included in the loan amount.
(3) Insurance premium payment.--There shall be 1 insurance
premium payment due on the mortgage. Such insurance premium
payment--
(A) shall be equal to 1 percent of the loan amount;
(B) shall be due and considered earned by the
Secretary at the time of the loan closing; and
(C) may be included in the loan amount and paid from
the loan proceeds.
(d) Locally-Designated High-Crime Area.--
(1) In general.--Any unit of local government may request
that the Secretary designate any area within the jurisdiction
of that unit of local government as a locally-designated high-
crime area for purposes of this section if the proposed area--
(A) has a crime rate that is significantly higher
than the crime rate of the non-designated area that is
within the jurisdiction of the unit of local
government; and
(B) has a population that is not more than 25 percent
of the total population of area within the jurisdiction
of the unit of local government.
(2) Deadline for consideration of request.--Not later than 60
days after receiving a request under paragraph (1), the
Secretary shall approve or disapprove the request.
(e) Law Enforcement Officer.--For purposes of this section, the term
``law enforcement officer'' has such meaning as the Secretary shall
provide, except that such term shall include any individual who is
employed as an officer in a correctional institution.
(f) Sunset.--The Secretary shall not approve any application for
assistance under this section that is received by the Secretary after
the expiration of the 3-year period beginning on the date that the
Secretary first makes available assistance under the pilot program
under this section.
SEC. 210. STUDY OF MANDATORY INSPECTION REQUIREMENT UNDER SINGLE FAMILY
HOUSING MORTGAGE INSURANCE PROGRAM.
The Comptroller General of the United States shall conduct a study
regarding the inspection of properties purchased with loans insured
under section 203 of the National Housing Act. The study shall evaluate
the following issues:
(1) The feasibility of requiring inspections of all
properties purchased with loans insured under such section.
(2) The level of financial losses or savings to the Mutual
Mortgage Insurance Fund that are likely to occur if inspections
are required on properties purchased with loans insured under
such section.
(3) The potential impact on the process of buying a home if
inspections of properties purchased with loans insured under
such section are required, including the process of buying a
home in underserved areas where losses to the Mutual Mortgage
Insurance Fund are greatest.
(4) The difference, if any, in the quality of homes purchased
with loans insured under such section that are inspected before
purchase and such homes that are not inspected before purchase.
(5) The cost to homebuyers of requiring inspections before
purchase of properties with loans insured under such section.
(6) The extent, if any, to which requiring inspections of
properties purchased with loans insured under such section will
result in adverse selection of loans insured under such
section.
(7) The extent of homebuyer knowledge regarding property
inspections and the extent to which such knowledge affects the
decision of homebuyers to opt for or against having a property
inspection before purchasing a home.
(8) The impact of the Homebuyer Protection Plan implemented
by the Department of Housing and Urban Development on the
number of appraisers authorized to appraise homes with
mortgages insured under section 203 of the National Housing
Act.
(9) The cost to homebuyers incurred as a result of the
Homebuyer Protection plan, taking into consideration, among
other factors, an increase in appraisal fees.
(10) The benefit or adverse impact of the Homebuyer
Protection Plan on minority homebuyers.
(11) The extent to which the appraisal requirements of the
Homebuyer Protection Plan conflict with State laws regarding
appraisals and home inspections.
Not later than the expiration of the 1-year period beginning on the
date of the enactment of this Act, the Comptroller General shall submit
to the Congress a report containing the results of the study and any
recommendations with respect to the issues specified under this
section.
SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN PROGRAM.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Housing and Urban Development
shall submit a report to the Congress containing recommendations for
improvements to the property improvement loan insurance program under
title I of the National Housing Act, including improvements designed to
address problems relating to home improvement contractors obtaining
loans on behalf of homeowners.
(b) Consultation.--In developing and determining recommendations for
inclusion in the report under this section and in preparing the report,
the Secretary shall consult with interested persons, organizations, and
entities, including representatives of the lending industry, the home
improvement industry, and consumer organizations.
TITLE III--SECTION 8 HOMEOWNERSHIP OPTION
SEC. 301. DOWNPAYMENT ASSISTANCE.
(a) Amendments.--Section 8(y) of the United States Housing Act of
1937 (42 U.S.C. 1437f(y)) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) Downpayment assistance.--
``(A) Authority.--A public housing agency may, in
lieu of providing monthly assistance payments under
this subsection on behalf of a family eligible for such
assistance and at the discretion of the public housing
agency, provide assistance for the family in the form
of a single grant to be used only as a contribution
toward the downpayment required in connection with the
purchase of a dwelling for fiscal year 2000 and each
fiscal year thereafter to the extent provided in
advance in appropriations Acts.
``(B) Amount.--The amount of a downpayment grant on
behalf of an assisted family may not exceed the amount
that is equal to the sum of the assistance payments
that would be made during the first year of assistance
on behalf of the family, based upon the income of the
family at the time the grant is to be made.''.
(b) Effective Date.--The amendments made by subsection (a) shall take
effect immediately after the amendments made by section 555(c) of the
Quality Housing and Work Responsibility Act of 1998 take effect
pursuant to such section.
SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR DISABLED
FAMILIES.
(a) In General.--A public housing agency providing tenant-based
assistance on behalf of an eligible family under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) may provide
assistance for a disabled family that purchases a dwelling unit
(including a dwelling unit under a lease-purchase agreement) that will
be owned by 1 or more members of the disabled family and will be
occupied by the disabled family, if the disabled family--
(1) purchases the dwelling unit before the expiration of the
3-year period beginning on the date that the Secretary first
implements the pilot program under this section;
(2) demonstrates that the disabled family has income from
employment or other sources (including public assistance), as
determined in accordance with requirements of the Secretary,
that is not less than twice the payment standard established by
the public housing agency (or such other amount as may be
established by the Secretary);
(3) except as provided by the Secretary, demonstrates at the
time the disabled family initially receives tenant-based
assistance under this section that one or more adult members of
the disabled family have achieved employment for the period as
the Secretary shall require;
(4) participates in a homeownership and housing counseling
program provided by the agency; and
(5) meets any other initial or continuing requirements
established by the public housing agency in accordance with
requirements established by the Secretary.
(b) Determination of Amount of Assistance.--
(1) In general.--
(A) Monthly expenses not exceeding payment
standard.--If the monthly homeownership expenses, as
determined in accordance with requirements established
by the Secretary, do not exceed the payment standard,
the monthly assistance payment shall be the amount by
which the homeownership expenses exceed the highest of
the following amounts, rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted income
of the disabled family.
(ii) 10 percent of the monthly income of the
disabled family.
(iii) If the disabled family is receiving
payments for welfare assistance from a public
agency, and a portion of those payments,
adjusted in accordance with the actual housing
costs of the disabled family, is specifically
designated by that agency to meet the housing
costs of the disabled family, the portion of
those payments that is so designated.
(B) Monthly expenses exceed payment standard.--If the
monthly homeownership expenses, as determined in
accordance with requirements established by the
Secretary, exceed the payment standard, the monthly
assistance payment shall be the amount by which the
applicable payment standard exceeds the highest of the
amounts under clauses (i), (ii), and (iii) of
subparagraph (A).
(2) Calculation of amount.--
(A) Low-income families.--A disabled family that is a
low-income family shall be eligible to receive 100
percent of the amount calculated under paragraph (1).
(B) Income between 81 and 89 percent of median.--A
disabled family whose income is between 81 and 89
percent of the median for the area shall be eligible to
receive 66 percent of the amount calculated under
paragraph (1).
(C) Income between 90 and 99 percent of median.--A
disabled family whose income is between 90 and 99
percent of the median for the area shall be eligible to
receive 33 percent of the amount calculated under
paragraph (1).
(D) Income more than 99 percent of median.--A
disabled family whose income is more than 99 percent of
the median for the area shall not be eligible to
receive assistance under this section.
(c) Inspections and Contract Conditions.--
(1) In general.--Each contract for the purchase of a dwelling
unit to be assisted under this section shall--
(A) provide for pre-purchase inspection of the
dwelling unit by an independent professional; and
(B) require that any cost of necessary repairs be
paid by the seller.
(2) Annual inspections not required.--The requirement under
subsection (o)(8)(A)(ii) of the United States Housing Act of
1937 for annual inspections shall not apply to dwelling units
assisted under this section.
(d) Other Authority of the Secretary.--The Secretary may--
(1) limit the term of assistance for a disabled family
assisted under this section;
(2) provide assistance for a disabled family for the entire
term of a mortgage for a dwelling unit if the disabled family
remains eligible for such assistance for such term; and
(3) modify the requirements of this section as the Secretary
determines to be necessary to make appropriate adaptations for
lease-purchase agreements.
(e) Assistance Payments Sent to Lender.--The Secretary shall remit
assistance payments under this section directly to the mortgagee of the
dwelling unit purchased by the disabled family receiving such
assistance payments.
(f) Inapplicability of Certain Provisions.--Assistance under this
section shall not be subject to the requirements of the following
provisions:
(1) Subsection (c)(3)(B) of section 8 of the United States
Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the United States
Housing Act of 1937.
(3) Any other provisions of section 8 of the United States
Housing Act of 1937 governing maximum amounts payable to owners
and amounts payable by assisted families.
(4) Any other provisions of section 8 of the United States
Housing Act of 1937 concerning contracts between public housing
agencies and owners.
(5) Any other provisions of the United States Housing Act of
1937 that are inconsistent with the provisions of this section.
(g) Reversion to Rental Status.--
(1) Non-fha mortgages.--If a disabled family receiving
assistance under this section defaults under a mortgage not
insured under the National Housing Act, the disabled family may
not continue to receive rental assistance under section 8 of
the United States Housing Act of 1937 unless it complies with
requirements established by the Secretary.
(2) All mortgages.--A disabled family receiving assistance
under this section that defaults under a mortgage may not
receive assistance under this section for occupancy of another
dwelling unit owned by 1 or more members of the disabled
family.
(3) Exception.--This subsection shall not apply if the
Secretary determines that the disabled family receiving
assistance under this section defaulted under a mortgage due to
catastrophic medical reasons or due to the impact of a
federally declared major disaster or emergency.
(h) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary shall issue regulations to
implement this section. Such regulations may not prohibit any public
housing agency providing tenant-based assistance on behalf of an
eligible family under section 8 of the United States Housing Act of
1937 from participating in the pilot program under this section.
(i) Definition of Disabled Family.--For the purposes of this section,
the term ``disabled family'' has the meaning given the term ``person
with disabilities'' in section 811(k)(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013(k)(2)).
SEC. 303. FUNDING FOR PILOT PROGRAMS.
(a) Authorization of Appropriations.--There is authorized to be
appropriated $2,000,000 for fiscal year 2001 for assistance in
connection with the existing homeownership pilot programs carried out
under the demonstration program authorized under to section 555(b) of
the Quality Housing and Work Responsibility Act of 1998 (Public Law
105-276; 112 Stat. 2613).
(b) Use.--Subject to subsection (c), amounts made available pursuant
to this section shall be used only through such homeownership pilot
programs to provide, on behalf of families participating in such
programs, amounts for downpayments in connection with dwellings
purchased by such families using assistance made available under
section 8(y) of the United States Housing Act of 1937 (42 U.S.C.
1437f(y)). No such downpayment grant may exceed 20 percent of the
appraised value of the dwelling purchased with assistance under such
section 8(y).
(c) Matching Requirement.--The amount of assistance made available
under this section for any existing homeownership pilot program may not
exceed twice the amount donated from sources other than this section
for use under the program for assistance described in subsection (b).
Amounts donated from other sources may include amounts from State
housing finance agencies and Neighborhood Housing Services of America.
TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS
SEC. 401. REAUTHORIZATION.
(a) Authorization of Appropriations.--The last sentence of section
103 of the Housing and Community Development Act of 1974 (42 U.S.C.
5303) is amended to read as follows: ``For purposes of assistance under
section 106, there is authorized to be appropriated $4,900,000,000 for
fiscal year 2001 and such sums as may be necessary for each of fiscal
years 2002, 2003, 2004, and 2005.''.
(b) Entitlement Grants.--
(1) In general.--Section 102(a)(5)(B) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a)(5)(B)) is
amended--
(A) by inserting ``(I)'' after ``(iii)''; and
(B) by inserting before the period at the end the
following: ``, or (II) has a population in its
unincorporated areas of not less than 450,000,
exceptthat a town or township which is designated as a city pursuant to
this subclause shall have only its unincorporated areas considered as a
city for purposes of this title''.
(2) Treatment as separate from urban counties.--Section
102(d) of the Housing and Community Development Act of 1974 (42
U.S.C. 5302(d)) is amended--
(A) by inserting ``(1)'' after ``(d)''; and
(B) by adding at the end the following new paragraph:
``(2) Notwithstanding paragraph (1), a town or township that is
classified as a city by reason of subclause (II) of section
102(a)(5)(B)(iii) shall be treated, for purposes of eligibility for a
grant under section 106(b)(1) from amounts made available for a fiscal
year beginning after the date of the enactment of the American
Homeownership and Economic Opportunity Act of 2000, as an entity
separate from the urban county in which it is located.''.
(3) Eligibility of certain urban counties.--Section 102(a)(6)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)(6)) is amended--
(1) in subparagraph (D)--
(A) in clause (v), by striking ``or'' at the end;
(B) in clause (vi), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following new clause:
``(vii)(I) has consolidated its government with one
or more municipal governments, such that within the
county boundaries there are no unincorporated areas,
(II) has a population of not less than 650,000, over
which the consolidated government has the authority to
undertake essential community development and housing
assistance activities, (III) for more than 10 years,
has been classified as an entitlement area for purposes
of allocating and distributing funds under section 106,
and (IV) as of the date of the enactment of this
clause, has over 90 percent of the county's population
within the jurisdiction of the consolidated
government.''; and
(2) by adding at the end the following new subparagraph:
``(F) Notwithstanding any other provision of this paragraph,
any county that was classified as an urban county pursuant to
subparagraph (A) for fiscal year 1999, includes 10 cities each
having a population of less than 50,000, and has a population
in its unincorporated areas of 190,000 or more but less than
200,000, shall thereafter remain classified as an urban
county.''.
SEC. 402. PROHIBITION OF SET-ASIDES.
Section 103 of the Housing and Community Development Act of 1974 (42
U.S.C. 5303), as amended by section 401 of this Act, is further
amended--
(1) by inserting after ``Sec. 103.'' the following: ``(a) In
General.--''; and
(2) by adding at the end the following new subsection:
``(b) Prohibition of Set-Asides.--Except as provided in paragraphs
(1) and (2) of section 106(a) and section 107, amounts appropriated
pursuant to subsection (a) of this section or otherwise to carry out
this title (other than section 108) shall be used only for formula-
based grants allocated pursuant to section 106 and may not be otherwise
used unless the provision of law providing for such other use
specifically refers to this subsection and specifically states that
such provision modifies or supersedes the provisions of this
subsection.''.
SEC. 403. PUBLIC SERVICES CAP.
Section 105(a)(8) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)(8)) is amended by striking ``fiscal years
1993'' and all that follows through ``unit of general local
government'' and inserting the following: ``fiscal years 1993 through
2006 to the City of Los Angeles, the County of Los Angeles, or any
other unit of general local government located in the County of Los
Angeles, such city, such county, or each such unit of general local
government, respectively,''.
SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) Eligible Activities.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
(1) in paragraph (22)(C), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end and
inserting a semicolon; and
(3) by inserting after paragraph (23) the following new
paragraph:
``(24) provision of direct assistance to facilitate and
expand homeownership among uniformed employees (including
policemen, firemen, and sanitation and other maintenance
workers) of, and teachers who are employees of, the
metropolitan city or urban county (or an agency or school
district serving such city or county) receiving grant amounts
under this title pursuant to section 106(b) or the unit of
general local government (or an agency or school district
serving such unit) receiving such grant amounts pursuant to
section 106(d), except that--
``(A) such assistance may only be provided on behalf
of such employees who are first-time homebuyers under
the meaning given such term in section 104(14) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12704(14)), except that, for purposes of this
paragraph, such section shall be applied by
substituting `section 105(a)(24) of the Housing and
Community Development Act of 1974' for `title II';
``(B) notwithstanding section 102(a)(20)(B) or any
other provision of this title, such assistance may be
provided on behalf of such employees whose family
incomes do not exceed--
``(i) 115 percent of the median income of the
area involved, as determined by the Secretary
with adjustments for smaller and larger
families; or
``(ii) with respect only to areas that the
Secretary determines have high housing costs,
taking into consideration median house prices
and median family incomes for the area, 150
percent of the median income of the area
involved, as determined by the Secretary with
adjustments for smaller and larger families;
``(C) such assistance shall be used only for
acquiring principal residences for such employees, in a
manner that involves obligating amounts with respect to
any particular mortgage over a period of one year or
less, by--
``(i) providing amounts for downpayments on
mortgages;
``(ii) paying reasonable closing costs
normally associated with the purchase of a
residence;
``(iii) obtaining pre- or post-purchase
counseling relating to the financial and other
obligations of homeownership; or
``(iv) subsidizing mortgage interest rates;
and
``(D) any residence purchased using assistance
provided under this paragraph shall be subject to
restrictions on resale that are--
``(i) established by the metropolitan city,
urban county, or unit of general local
government providing such assistance; and
``(ii) determined by the Secretary to be
appropriate to comply with subparagraphs (A)
and (B) of section 215(b)(3) of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12745(b)(3)), except that, for purposes
of this paragraph, such subparagraphs shall be
applied by substituting `section 105(a)(24) of
the Housing and Community Development Act of
1974' for `this title';''.
(b) Primary Objectives.--Section 105(c) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(c)) is amended by adding at the
end the following new paragraph:
``(5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any assisted
activity described in subsection (a)(24) of this section shall be
considered, for purposes of this title, to benefit persons of low and
moderate income and to be directed toward the objective under section
101(c)(3).''.
SEC. 405. TECHNICAL AMENDMENT RELATING TO BROWNFIELDS.
Section 105(a) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)), as amended by section 404 of this Act, is further
amended--
(1) in paragraph (25), by striking the period and inserting
``; and''; and
(2) by adding at the end the following new paragraph:
``(26) environmental cleanup and economic development
activities related to Brownfields projects in conjunction with
the appropriate environmental regulatory agencies.''.
SEC. 406. INCOME ELIGIBILITY.
(a) In General.--In addition to the exceptions granted pursuant to
section 590 of the Quality Housing and Work Responsibility Act of 1998
(42 U.S.C. 5301 note), the Secretary of Housing and Urban Development
shall, for not less than 10 other jurisdictions that are metropolitan
cities or urban counties for purposes of title I of the Housing and
Community Development Act of 1974, grant exceptions not later than 90
days after the date of the enactment of this Act for such jurisdictions
that provide that--
(1) for purposes of the HOME investment partnerships program
under title II of the Cranston-Gonzalez National Affordable
Housing Act, the limitation based on percentage of median
income that is applicable under section 104(10), 214(1)(A), or
215(a)(1)(A) for any area of the jurisdiction shall be the
numerical percentage that is specified in such section; and
(2) for purposes of the community development block grant
program under title I of the Housing and Community Development
Act of 1974, the limitation based on percentage of median
income that is applicable pursuant to section 102(a)(20) for
any area within the State or unit of general local government
shall be the numerical percentage that is specified in
subparagraph (A) of such section.
(b) Selection.--In selecting the jurisdictions for which to grant
such exceptions, the Secretary shall consider the relative median
income of such jurisdictions and shall give preference to jurisdictions
with the highest housing costs.
SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.
Section 863 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12912) is amended to read as follows:
``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subtitle
$260,000,000 for fiscal year 2001 and such sums as may be necessary for
each of fiscal years 2002, 2003, 2004, and 2005.''.
TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM
SEC. 501. REAUTHORIZATION.
(a) Authorization of Appropriations.--Section 205 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12724) is amended
to read as follows:
``SEC. 205. AUTHORIZATION.
``(a) In General.--There is authorized to be appropriated to carry
out this title $1,650,000,000 for fiscal year 2001 and such sums as may
be necessary for each of fiscal years 2002, 2003, 2004, and 2005, of
which--
``(1) not more than $25,000,000 in each such fiscal year
shall be for community housing partnership activities
authorized under section 233; and
``(2) not more than $15,000,000 in each such fiscal year
shall be for activities in support of State and local housing
strategies authorized under subtitle C, of which, in each of
fiscal years 2001 and 2002, $3,000,000 shall be for funding
grants under section 246.
``(b) Prohibition of Set-Asides.--Except as provided in subsection
(a) of this section and section 217(a)(3), amounts appropriated
pursuant to subsection (a) of this section or otherwise to carry out
this title shall be used only for formula-based grants allocated
pursuant to section 217 and may not be otherwise used unless the
provision of law providing for such other use specifically refers to
this subsection and specifically states that such provision modifies or
supersedes the provisions of this subsection.''.
(b) Allocations of Amounts.--Section 104(19) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704(19)) is amended by
adding at the end the following: ``The term `city' shall have the
meaning given such term in section 102(a)(5)(B) of such Act. A town or
township that is classified as a city by reason of subclause (II) of
section 102(a)(5)(A)(B)(iii) of such Act shall be treated,
notwithstanding section 102(d)(1) of such Act, as an entity separate
from the urban county in which it is located for purposes of allocation
of amounts under section 217 of this Act to units of general local
government from amounts made available for any fiscal year beginning
after the date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000.''.
(c) Pilot Program for Developing Regional Housing Strategies.--
Subtitle C of title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12781 et seq.) is amended by adding at the end
the following new section:
``SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE REGIONAL HOUSING
AFFORDABILITY STRATEGIES.
``(a) Authority.--The Secretary may, using any amounts made available
for grants under this section, make not more than 3 grants for each of
fiscal years 2001 and 2002 to consortia of units of general local
government described in subsection (b) for costs of developing and
implementing comprehensive housing affordability strategies on a
regional basis.
``(b) Eligible Consortia.--A consortium of units of general local
government described in this subsection is a consortium that--
``(1) is eligible under section 216(2) to be deemed a unit of
general local government for purposes of this title; and
``(2) consists of multiple units of general local government;
and
``(3) contains only units of general local government that
are geographically contiguous.
``(c) Multi-State Requirement.--In each fiscal year in which grants
are made under this section, not less than one of the consortia that
receives a grant shall be a consortium described in subsection (b) that
includes units of general local government from 2 or more States.''.
SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES AND MUTUAL HOUSING
ASSOCIATIONS.
(a) Congressional Findings.--Section 202(10) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721(10)) is amended by
inserting ``mutual housing associations,'' after ``limited equity
cooperatives,''.
(b) Definitions.--Section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704) is amended--
(1) by redesignating paragraph (23) as paragraph (22);
(2) by redesignating paragraph (24) (relating to the
definition of ``insular area'') as paragraph (23); and
(3) by adding at the end the following new paragraphs:
``(26) The term `limited equity cooperative' means a
cooperative housing corporation which, in a manner determined
by the Secretary to be acceptable, restricts income eligibility
of purchasers of membership shares of stock in the cooperative
corporation or the initial and resale price of such shares, or
both, so that the shares remain available and affordable to
low-income families.
``(27) The term `mutual housing association' means a private
entity that--
``(A) is organized under State law;
``(B) is described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code;
``(C) owns, manages, and continuously develops
affordable housing by providing long-term housing for
low- and moderate-income families;
``(D) provides that eligible families who purchase
membership interests in the association shall have a
right to residence in a dwelling unit in the housing
during the period that they hold such membership
interest; and
``(E) provides for the residents of such housing to
participate in the ongoing management of the
housing.''.
(c) Eligibility.--Section 215 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12745) is amended--
(1) in subsection (b), by adding after and below paragraph
(4) the following:
``Housing that is owned by a limited equity cooperative or a mutual
housing association may be considered by a participating jurisdiction
to be housing for homeownership for purposes of this title to the
extent that ownership or membership in such a cooperative or
association, respectively, constitutes homeownership under State or
local laws.''; and
(2) in subsection (a), by adding at the end the following new
paragraph:
``(6) Limited equity cooperatives and mutual housing
associations.--Housing that is owned by a limited equity
cooperative or a mutual housing association may be considered
by a participating jurisdiction to be rental housing for
purposes of this title to the extent that ownership or
membership in such a cooperative or association, respectively,
constitutes rental of a dwelling under State or local laws.''.
SEC. 503. ADMINISTRATIVE COSTS.
Section 212(c) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12742(c)) is amended by adding at the end the following
new sentence: ``A participating jurisdiction may use amounts made
available under this subsection for a fiscal year for administrative
and planning costs by amortizing the costs of administration and
planning activities under this subtitle over the entire duration of
such activities.''.
SEC. 504. LEVERAGING AFFORDABLE HOUSING INVESTMENT THROUGH LOCAL LOAN
POOLS.
(a) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by
inserting after ``interest subsidies'' the following: ``, advances to
provide reserves for loan pools or to provide partial loan
guarantees,''.
(b) Timely Investment of Trust Funds.--Section 218(e) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is
amended to read as follows:
``(e) Investment Within 15 Days.--
``(1) In general.--The participating jurisdiction shall, not
later than 15 days after funds are drawn from the
jurisdiction's HOME Investment Trust Fund, invest such funds,
together with any interest earned thereon, in the affordable
housing for which the funds were withdrawn.
``(2) Loan pools.--In the case of a participating
jurisdiction that withdraws Trust Fund amounts for investment
in the form of an advance for reserves or partial loan
guarantees under a program providing such credit enhancement
for loans for affordable housing, the amounts shall be
considered to be invested for purposes of paragraph (1) upon
the completion of both of the following actions:
``(A) Control of the amounts is transferred to the
program.
``(B) The jurisdiction and the entity operating the
program enter into a written agreement that--
``(i) provides that such funds may be used
only in connection with such program;
``(ii) defines the terms and conditions of
the loan pool reserve or partial loan
guarantees; and
``(iii) provides that such entity shall
ensure that amounts from non-Federal sources
have been contributed, or are committed for
contribution, to the pool available for loans
for affordable housing that will be backed by
such reserves or loan guarantees in an amount
equal to 10 times the amount invested from
Trust Fund amounts.''.
(c) Expiration of Right To Withdraw Funds.--Section 218(g) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748(g))
is amended to read as follows:
``(g) Expiration of Right To Draw Funds.--
``(1) In general.--If any funds becoming available to a
participating jurisdiction under this title are not placed
under binding commitment to affordable housing within 24 months
after the last day of the month in which such funds are
deposited in the jurisdiction's HOME Investment Trust Fund, the
jurisdiction's right to draw such funds from the HOME
Investment Trust Fund shall expire. The Secretary shall reduce
the line of credit in the participating jurisdiction's HOME
Investment Trust Fund by the expiring amount and shall
reallocate the funds by formula in accordance with section
217(d).
``(2) Loan pools.--In the case of a participating
jurisdiction that withdraws Trust Fund amounts for investment
in the manner provided under subsection (e)(2), the amounts
shall be considered to be placed under binding commitment to
affordable housing for purposes of paragraph (1) of this
subsection at the time that the amounts are obligated for use
under, and are subject to, a written agreement described in
subsection (e)(2)(B).''.
(d) Treatment of Mixed Income Loan Pools as Affordable Housing.--
(1) In general.--Section 215 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745) is amended by
adding at the end the following new subsection:
``(c) Loan Pools.--Notwithstanding subsections (a) and (b), housing
financed using amounts invested as provided in section 218(e)(2) shall
qualify as affordable housing only if the housing complies with the
following requirements:
``(1) In the case of housing that is for homeownership--
``(A) of the units financed with amounts so
invested--
``(i) not less than 75 percent are principal
residences of owners whose families qualify as
low-income families--
``(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
``(II) in the case of a lease-
purchase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
``(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed;
``(ii) all are principal residences of owners
whose families qualify as moderate-income
families--
``(I) in the case of a contract to
purchase existing housing, at the time
of purchase;
``(II) in the case of a lease-
purchase agreement for existing housing
or for housing to be constructed, at
the time the agreement is signed; or
``(III) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed; and
``(iii) all comply with paragraphs (3) and
(4) of subsection (b), except that paragraph
(3) shall be applied for purposes of this
clause by substituting `subsection (c)(2)(B)'
and `low- and moderate-income homebuyers' for
`paragraph (2)' and `low-income homebuyers',
respectively; and
``(B) units made available for purchase only by
families who qualify as low-income families shall have
an initial purchase price that complies with the
requirements of subsection (b)(1).
``(2) In the case of housing that is for rental, the
housing--
``(A) complies with subparagraphs (D) through (F) of
subsection (a)(1);
``(B)(i) has not less than 75 percent of the units
occupied by households that qualify as low-income
families and is occupied only by households that
qualify as moderate-income families; or
``(ii) temporarily fails to comply with clause (i)
only because of increases in the incomes of existing
tenants and actions satisfactory to the Secretary are
being taken to ensure that all vacancies in the housing
are being filled in accordance with clause (i) until
such noncompliance is corrected; and
``(C) bears rents, in the case of units made
available for occupancy only by households that qualify
as low-income families, that comply with the
requirements of subsection (a)(1)(A).
Paragraphs (4) and (5) of subsection (a) shall apply to housing
that is subject to this subsection.''.
(2) Definition.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704), as amended
by section 502 of this Act, is further amended by adding at the
end the following new paragraph:
``(28) The term `moderate income families' means families
whose incomes do not exceed the median income for the area, as
determined by the Secretary with adjustments for smaller and
larger families, except that the Secretary may establish income
ceilings higher or lower than the median income for the area on
the basis of the Secretary's findings that such variations are
necessary because of prevailing levels of construction costs or
fair market rents, or unusually high or low family incomes.''.
SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) Eligible Activities.--Paragraph (2) of section 215(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(b)(2)) is amended to read as follows:
``(2) is the principal residence of an owner who--
``(A) is a member of a family that qualifies as a
low-income family--
``(i) in the case of a contract to purchase
existing housing, at the time of purchase;
``(ii) in the case of a lease-purchase
agreement for existing housing or for housing
to be constructed, at the time the agreement is
signed; or
``(iii) in the case of a contract to purchase
housing to be constructed, at the time the
contract is signed; or
``(B)(i) is a uniformed employee (which shall include
policemen, firemen, and sanitation and other
maintenance workers) or a teacher who is an employee,
of the participating jurisdiction (or an agency or
school district serving such jurisdiction) that is
investing funds made available under this subtitle to
support homeownership of the residence; and
``(ii) is a member of a family whose income, at the
time referred to in clause (i), (ii), or (iii) of
subparagraph (A), as appropriate, and as determined by
the Secretary with adjustments for smaller and larger
families, does not exceed 115 percent of the median
income of the area, except that, with respect only to
such areas that the Secretary determines have high
housing costs, taking into consideration median house
prices and median family incomes for the area, such
income limitation shall be 150 percent of the median
income of the area, as determined by the Secretary with
adjustments for smaller and larger families;''.
(b) Income Targeting.--Section 214(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12744(2)) is amended by
inserting before the semicolon the following: ``or families described
in section 215(b)(2)(B)''.
(c) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by
adding at the end the following new sentence: ``Notwithstanding the
preceding sentence, in the case of homeownership assistance for
residences of owners described in section 215(b)(2)(B), funds made
available under this subtitle may only be invested (A) to provide
amounts for downpayments on mortgages, (B) to pay reasonable closing
costs normally associated with the purchase of a residence, (C) to
obtain pre- or post-purchase counseling relating to the financial and
other obligations of homeownership, or (D) to subsidize mortgage
interest rates.''.
SEC. 506. USE OF SECTION 8 ASSISTANCE BY ``GRAND-FAMILIES'' TO RENT
DWELLING UNITS IN ASSISTED PROJECTS.
Section 215(a) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12745(a)), as amended by the preceding provisions of
this Act, is further amended by adding at the end the following new
paragraph:
``(7) Waiver of qualifying rent.--
``(A) In general.--For the purpose of providing
affordable housing appropriate for families described
in subparagraph (B), the Secretary may, upon the
application of the project owner, waive the
applicability of subparagraph (A) of paragraph (1) with
respect to a dwelling unit if--
``(i) the unit is occupied by such a family,
on whose behalf tenant-based assistance is
provided under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);
``(ii) the rent for the unit is not greater
than the existing fair market rent for
comparable units in the area, as established by
the Secretary under section 8 of the United
States Housing Act of 1937; and
``(iii) the Secretary determines that the
waiver, together with waivers under this
paragraph for other dwelling units in the
project, will result in the use of amounts
described in clause (iii) in an effective
manner that will improve the provision of
affordable housing for such families.
``(B) Eligible families.--A family described in this
subparagraph is a family that consists of at least one
elderly person (who is the head of household) and one
or more of such person's grandchildren, great
grandchildren, great nieces, great nephews, or great
great grandchildren (as defined by the Secretary), but
does not include any parent of such grandchildren,
great grandchildren, great nieces, great nephews, or
great great grandchildren. Such term includes any such
grandchildren, great grandchildren, great nieces, great
nephews, or great great grandchildren who have been
legally adopted by such elderly person.''.
SEC. 507. LOAN GUARANTEES.
Subtitle A of title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end
the following new section:
``SEC. 227. LOAN GUARANTEES.
``(a) Authority.--The Secretary may, upon such terms and conditions
as the Secretary may prescribe, guarantee and make commitments to
guarantee, only to such extent or in such amounts as provided in
appropriations Acts, the notes or other obligations issued by
eligibleparticipating jurisdictions or by public agencies designated by
and acting on behalf of eligible participating jurisdictions for
purposes of financing (including credit enhancements and debt service
reserves) the acquisition, new construction, reconstruction, or
moderate or substantial rehabilitation of affordable housing (including
real property acquisition, site improvement, conversion, and
demolition), and other related expenses (including financing costs and
relocation expenses of any displaced persons, families, businesses, or
organizations). Housing funded under this section shall meet the
requirements of this subtitle.
``(b) Requirements.--Notes or other obligations guaranteed under this
section shall be in such form and denominations, have such maturities,
and be subject to such conditions as may be prescribed by the
Secretary. The Secretary may not deny a guarantee under this section on
the basis of the proposed repayment period for the note or other
obligation, unless the period is more than 20 years or the Secretary
determines that the period otherwise causes the guarantee to constitute
an unacceptable financial risk.
``(c) Limitation on Total Notes and Obligations.--The Secretary may
not guarantee or make a commitment to guarantee any note or other
obligation if the total outstanding notes or obligations guaranteed
under this section on behalf of the participating jurisdiction issuing
the note or obligation (excluding any amount defeased under a contract
entered into under subsection (e)(1)) would thereby exceed an amount
equal to 5 times the amount of the participating jurisdiction's latest
allocation under section 217.
``(d) Use of Program Funds.--Notwithstanding any other provision of
this subtitle, funds allocated to the participating jurisdiction under
this subtitle (including program income derived therefrom) are
authorized for use in the payment of principal and interest due on the
notes or other obligations guaranteed pursuant to this section and the
payment of such servicing, underwriting, or other issuance or
collection charges as may be specified by the Secretary.
``(e) Security.--To assure the full repayment of notes or other
obligations guaranteed under this section, and payment of the issuance
or collection charges specified by the Secretary under subsection (d),
and as a prior condition for receiving such guarantees, the Secretary
shall require the participating jurisdiction (and its designated public
agency issuer, if any) to--
``(1) enter into a contract, in a form acceptable to the
Secretary, for repayment of such notes or other obligations and
the other specified charges;
``(2) pledge as security for such repayment any allocation
for which the participating jurisdiction may become eligible
under this subtitle; and
``(3) furnish, at the discretion of the Secretary, such other
security as may be deemed appropriate by the Secretary in
making such guarantees, which may include increments in local
tax receipts generated by the housing assisted under this
section or disposition proceeds from the sale of land or
housing.
``(f) Repayment Authority.--The Secretary may, notwithstanding any
other provision of this subtitle or any other Federal, State, or local
law, apply allocations pledged pursuant to subsection (e) to any
repayments due the United States as a result of such guarantees.
``(g) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
section. Any such guarantee made by the Secretary shall be conclusive
evidence of the eligibility of the notes or other obligations for such
guarantee with respect to principal and interest, and the validity of
any such guarantee so made shall be incontestable in the hands of a
holder of the guaranteed obligations.
``(h) Tax Status.--With respect to any obligation guaranteed pursuant
to this section, the guarantee and the obligation shall be designed in
a manner such that the interest paid on such obligation shall be
included in gross income for purposes of the Internal Revenue Code of
1986.
``(i) Monitoring.--The Secretary shall monitor the use of guarantees
under this section by eligible participating jurisdictions. If the
Secretary finds that 50 percent of the aggregate guarantee authority
for any fiscal year has been committed, the Secretary may impose
limitations on the amount of guarantees any 1 participating
jurisdiction may receive during that fiscal year.
``(j) Guarantee of Trust Certificates.--
``(1) Authority.--The Secretary may, upon such terms and
conditions as the Secretary deems appropriate, guarantee the
timely payment of the principal of and interest on such trust
certificates or other obligations as may--
``(A) be offered by the Secretary or by any other
offeror approved for purposes of this subsection by the
Secretary; and
``(B) be based on and backed by a trust or pool
composed of notes or other obligations guaranteed or
eligible for guarantee by the Secretary under this
section.
``(2) Full faith and credit.--To the same extent as provided
in subsection (g), the full faith and credit of the United
States is pledged to the payment of all amounts which may be
required to be paid under any guarantee by the Secretary under
this subsection.
``(3) Subrogation.--In the event the Secretary pays a claim
under a guarantee issued under this section, the Secretary
shall be subrogated fully to the rights satisfied by such
payment.
``(4) Other powers and rights.--No State or local law, and no
Federal law, shall preclude or limit the exercise by the
Secretary of--
``(A) the power to contract with respect to public
offerings and other sales of notes, trust certificates,
and other obligations guaranteed under this section,
upon such terms and conditions as the Secretary deems
appropriate;
``(B) the right to enforce, by any means deemed
appropriate by the Secretary, any such contract; and
``(C) the Secretary's ownership rights, as
applicable, in notes, certificates or other obligations
guaranteed under this section, or constituting the
trust or pool against which trust certificates or other
obligations guaranteed under this section are offered.
``(k) Aggregate Limitation.--The total amount of outstanding
obligations guaranteed on a cumulative basis by the Secretary under
this section shall not at any time exceed $2,000,000,000.''.
SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAMILY RESIDENCES.
(a) Authority.--The Secretary of Housing and Urban Development shall
carry out a pilot program under this section under which covered
jurisdictions may use amounts described in subsection (b) to make loans
to eligible homebuyers for use as downpayments on 2- and 3-family
residences.
(b) Covered Assistance.--Notwithstanding section 105 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5305) and section 212
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742), a covered jurisdiction may use amounts provided to the
jurisdiction pursuant to section 106(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5406(b)) and amounts in the HOME
Investment Trust Fund for the jurisdiction for downpayment loans
meeting the requirements of subsection (d) to homebuyers meeting the
requirements of subsection (c), but only to the extent such
jurisdictions agree to comply with the requirements of this section, as
the Secretary may require.
(c) Eligible Homebuyers.--A homebuyer meets the requirements of this
subsection only if the homebuyer is an individual or family--
(1) whose income does not exceed 80 percent of the median
family income for the area within which the residence to be
purchased with the downpayment loan under subsection (d) is
located; except that the Secretary may, pursuant to a request
by a covered jurisdiction demonstrating that the jurisdiction
has high housing costs (taking into consideration median home
prices and median family incomes for the area), increase the
percentage limitation under this paragraph to not more than 110
percent of the median family income for the area;
(2) who has successfully completed a program regarding the
responsibilities and financial management involved in
homeownership and ownership of rental property that is approved
by the Secretary;
(3) has a satisfactory credit history and record as a tenant
of rental housing; and
(4) who, if such individual or family has an income that
exceeds 80 percent of the median income for the area, enters
into a binding agreement to comply with the requirements under
subsection (e) (relating to affordability of other dwelling
units in the residence).
(d) No-Interest Downpayment Loans.--A loan meets the requirements of
this subsection only if--
(1) the principal obligation of the loan--
(A) may be used only for a downpayment for
acquisition of a 2- or 3-family residence and for
closing costs and other costs payable at the time of
closing, as the Secretary shall provide; and
(B) does not exceed the amount that is equal to the
sum of (i) 7 percent of the purchase price of the
residence, and (ii) such closing and other costs;
(2) the borrower under the loan is paying, for acquisition of
the residence, at least 3 percent of the cost of acquisition of
the residence in cash or its equivalent;
(3) the borrower under the loan will occupy a dwelling unit
in the residence purchased using the loan as the principal
residence of the borrower;
(4) the loan terms--
(A) do not require the borrower to be pre-qualified
for a loan that finances the remainder of the purchase
price of a residence described in paragraph (1)(A); and
(B) provide that the proceeds of the loan are
available for use (as provided in paragraph (1)) only
during the 4-month period beginning upon the making of
the loan to the borrower and that such proceeds shall
revert to the covered jurisdiction upon the conclusion
of such period if the borrower has not entered into a
contract for purchase of a residence meeting the
requirements of such paragraph before such conclusion,
except that the Secretary shall provide that covered
jurisdictions may extend such 4-month period under such
circumstances as the Secretary shall prescribe;
(5) the loan terms provide for repayment of the principal
obligation of the loan, without interest, at such time as the
covered jurisdiction may provide, except that the principal
obligation shall be immediately repayable at the time that the
borrower--
(A) transfers or sells the borrower's ownership
interest in such residence or ceases to use the
residence purchased with the loan proceeds as his or
her principal residence; or
(B) obtains a subsequent loan secured by such
residence or any equity of the borrower in such
residence, the proceeds of which are not used to prepay
or pay off the entire balance due on the existing loan
secured by such residence; or
(6) the loan terms provide that, upon sale of the residence
purchased with the proceeds of the loan, the borrower shall
repay to the covered jurisdiction (together with the principal
obligation of the loan repayable pursuant to paragraph (5)(A))
an additional amount that bears the same ratio to any increase
in the price of the residence upon such sale (compared to the
price paid for the residence upon purchase using such loan) as
the amount of the loan bears to the purchase price paid for the
residence in the purchase using such loan; and
(7) the loan complies with such other requirements as the
Secretary may prescribe.
(e) Affordability of Rental Units.--Any dwelling units in the
residence purchased using a loan provided pursuant to the authority
under this section to a borrower described in subsection (c)(4) of this
section shall be used only as rental dwelling units and shall be made
available for rental only at a monthly rental price that does not
exceed the fair market rent under section 8(c)(2)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as periodically
adjusted, for a unit of the applicable size located in the area in
which the residence is located. Compliance with this subsection shall
be monitored and enforced by the covered jurisdiction providing the
amounts for the downpayment loan under this section for the purchase of
such residence.
(f) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Covered jurisdiction.--The term ``covered jurisdiction''
means, with respect to a fiscal year--
(A) a metropolitan city or urban county that receives
a grant for such fiscal year pursuant to section 106(b)
of the Housing and Community Development Act of 1974
(42 U.S.C. 5306(b)); or
(B) a jurisdiction that is a participating
jurisdiction for such fiscal year for purposes of the
HOME Investment Partnerships Act (42 U.S.C. 12721 et
seq.).
(2) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES
SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT CORPORATION.
Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and
inserting the following: ``There is authorized to be appropriated to
the corporation to carry out this title $95,000,000 for fiscal year
2001 and such sums as may be necessary for each of fiscal years 2002
through 2005. Of the amounts appropriated to the corporation for fiscal
year 2001, $5,000,000 shall be available only for the corporation to
provide assistance under duplex homeownership programs established
before the date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000 through Neighborworks Homeownership
Center pilot projects established before such date of enactment.''.
SEC. 602. HOMEOWNERSHIP ZONES.
Section 186 of the Housing and Community Development Act of 1992 (42
U.S.C. 12898a) is amended to read as follows:
``SEC. 186. HOMEOWNERSHIP ZONE GRANTS.
``(a) Authority.--The Secretary of Housing and Urban Development may
make grants to units of general local government to assist
homeownership zones. Homeownership zones are contiguous, geographically
defined areas, primarily residential in nature, in which large-scale
development projects are designed to reclaim distressed neighborhoods
by creating homeownership opportunities for low- and moderate-income
families. Projects in homeownership zones are intended to serve as a
catalyst for private investment, business creation, and neighborhood
revitalization.
``(b) Eligible Activities.--Amounts made available under this section
may be used for projects that include any of the following activities
in the homeownership zone:
``(1) Acquisition, construction, and rehabilitation of
housing.
``(2) Site acquisition and preparation, including demolition,
construction, reconstruction, or installation of public and
other site improvements and utilities directly related to the
homeownership zone.
``(3) Direct financial assistance to homebuyers.
``(4) Homeownership counseling.
``(5) Relocation assistance.
``(6) Marketing costs, including affirmative marketing
activities.
``(7) Other project-related costs.
``(8) Reasonable administrative costs (up to 5 percent of the
grant amount).
``(9) Other housing-related activities proposed by the
applicant as essential to the success of the homeownership zone
and approved by the Secretary.
``(c) Application.--To be eligible for a grant under this section, a
unit of general local government shall submit an application for a
homeownership zone grant in such form and in accordance with such
procedures as the Secretary shall establish.
``(d) Selection Criteria.--The Secretary shall select applications
for funding under this section through a national competition, using
selection criteria established by the Secretary, which shall include--
``(1) the degree to which the proposed activities will result
in the improvement of the economic, social, and physical
aspects of the neighborhood and the lives of its residents
through the creation of new homeownership opportunities;
``(2) the levels of distress in the homeownership zone as a
whole, and in the immediate neighborhood of the project for
which assistance is requested;
``(3) the financial soundness of the plan for financing
homeownership zone activities;
``(4) the leveraging of other resources; and
``(5) the capacity to successfully carry out the plan.
``(e) Grant Approval Amounts.--The Secretary may establish a maximum
amount for any grant for any funding round under this section. A grant
may not be made in an amount that exceeds the amount that the Secretary
determines is necessary to fund the project for which the application
is made.
``(f) Program Requirements.--A homeownership zone proposal shall--
``(1) provide for a significant number of new homeownership
opportunities that will make a visible improvement in an
immediate neighborhood;
``(2) not be inconsistent with such planning and design
principles as may be prescribed by the Secretary;
``(3) be designed to stimulate additional investment in that
area;
``(4) provide for partnerships with persons or entities in
the private and nonprofit sectors;
``(5) incorporate a comprehensive approach to revitalization
of the neighborhood;
``(6) establish a detailed time-line for commencement and
completion of construction activities; and
``(7) provide for affirmatively furthering fair housing.
``(g) Income Targeting.--At least 51 percent of the homebuyers
assisted with funds under this section shall have household incomes at
or below 80 percent of median income for the area, as determined by the
Secretary.
``(h) Environmental Review.--For purposes of environmental review,
decisionmaking, and action pursuant to the National Environmental
Policy Act of 1969 and other provisions of law that further the
purposes of such Act, a grant under this section shall be treated as
assistance under the HOME Investment Partnerships Act and shall be
subject to the regulations issued by the Secretary to implement section
288 of such Act.
``(i) Review, Audit, and Reporting.--The Secretary shall make such
reviews and audits and establish such reporting requirements as may be
necessary or appropriate to determine whether the grantee has carried
out its activities in a timely manner and in accordance with the
requirements of this section. The Secretary may adjust, reduce, or
withdraw amounts made available, or take other action as appropriate,
in accordance with the Secretary's performance reviews and audits under
this section.
``(j) Authorization.--There is authorized to be appropriated to carry
out this section $25,000,000 for fiscal year 2001 and such sums as may
be necessary for fiscal year 2002, to remain available until
expended.''.
SEC. 603. LEASE-TO-OWN.
(a) Sense of Congress.--It is the sense of the Congress that
residential tenancies under lease-to-own provisions can facilitate
homeownership by low- and moderate-income families and provide
opportunities for homeownership for such families who might not
otherwise be able to afford homeownership.
(b) Report.--Not later than the expiration of the 3-month period
beginning on the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall submit a report to the Congress--
(1) analyzing whether lease-to-own provisions can be
effectively incorporated within the HOME investment
partnerships program, the public housing program, the tenant-
based rental assistance program under section 8 of the United
States Housing Act of 1937, or any other programs of the
Department to facilitate homeownership by low- or moderate-
income families; and
(2) any legislative or administrative changes necessary to
alter or amend such programs to allow the use of lease-to-own
options to provide homeownership opportunities.
SEC. 604. LOCAL CAPACITY BUILDING.
Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note)
is amended--
(1) in subsection (a), by inserting ``National Association of
Housing Partnerships,'' after ``Humanity,''; and
(2) in subsection (e), by striking ``$25,000,000'' and all
that follows and inserting ``, for each fiscal year, such sums
as may be necessary to carry out this section.''.
SEC. 605. CONSOLIDATED APPLICATION AND PLANNING REQUIREMENT AND SUPER-
NOFA.
(a) Consolidated Application.--Section 106 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12706) is amended to read as
follows:
``SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING AND
DEVELOPMENT PROGRAMS.
``(a) Requirement.--The Secretary shall, by regulation, provide for
jurisdictions to comply with the planning and application requirements
under the covered programs under subsection (b) by submitting to the
Secretary, for a program year, a single consolidated submission under
this section that complies with the requirements for planning and
application submissions under the laws relating to the covered programs
and shall serve, for the jurisdiction, as the planning document and an
application for funding under the covered programs.
``(b) Covered programs.--The covered programs under this subsection
are the following programs:
``(1) The HOME investment partnerships program under title II
of this Act (42 U.S.C. 12721 et seq.).
``(2) The community development block grant program under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
``(3) The economic development initiative program under
section 108(q) of the Housing and Community Development Act of
1974 (42 U.S.C. 5308(q)).
``(4) The emergency shelter grants program under subtitle B
of title IV of the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11371 et seq.).
``(5) The housing opportunities for persons with AIDS program
under subtitle D of title VIII of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12901 et seq.).
``(c) Program Year.--In establishing requirements for a consolidated
submission under this section, the Secretary shall provide for a
consolidated program year, which shall comply with the various
application and review deadlines under the covered programs.
``(d) Adequacy of Existing Regulations.--The regulations of the
Secretary relating to consolidated submissions for community planning
and development programs, part 91 of title 24, Code of Federal
Regulations, as in effect on March 1, 1999, shall be considered to be
sufficient to comply with this section, except to the extent that the
program referred to in paragraph (3) of subsection (b) is not covered
by such regulations.
``(e) Consistency.--The Secretary shall, by regulation or otherwise,
as deemed by the Secretary to be appropriate, require any application
for housing assistance under title II of this Act, assistance under the
Housing and Community Development Act of 1974, or assistance under the
Stewart B. McKinney Homeless Assistance Act, to contain or be
accompanied by a certification by an appropriate State or local public
official that the proposed housing activities are consistent with the
housing strategy of the jurisdiction to be served.''.
(b) Super-NOFA.--The Department of Housing and Urban Development Act
is amended by inserting after section 12 (42 U.S.C. 3537a) the
following new section:
``SEC. 13. NOTICE OF FUNDING AVAILABILITY.
``(a) Requirement.--In making amounts for a fiscal year under the
covered programs under subsection (b) available to applicants, the
Secretary shall issue a consolidated notice of funding availability
that--
``(1) applies to as many of the covered programs as the
Secretary determines is practicable;
``(2) simplifies the application process for funding under
such programs by providing for application under various
covered programs through a single, unified application;
``(3) promotes comprehensive approaches to housing and
community development by providing for applicants to identify
coordination of efforts under various covered programs; and
``(4) clearly informs prospective applicants of the general
and specific requirements under law for applying for funding
under such programs.
``(b) Covered Programs.--The covered programs under this subsection
are the programs that are administered by the Secretary and identified
by the Secretary for purposes of this section, in the following areas:
``(1) Housing and community development programs.
``(2) Economic development and empowerment programs.
``(3) Targeted housing assistance and homeless assistance
programs.''.
SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.
(a) Reauthorization.--Subsection (p) of section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended to read as follows:
``(p) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal year 2001
and such sums as may be necessary for each of fiscal years 2002 and
2003.''.
(b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended by inserting before the period at the end the following: ``,
which may include reimbursing an organization, consortium, or
affiliate, upon approval of any required environmental review, for
nongrant amounts of the organization, consortium, or affiliate advanced
before such review to acquire land''.
(c) Deadline for Recapture of Funds.--Section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended--
(1) in subsection (i)(5)--
(A) by striking ``if the organization or consortia
has not used any grant amounts'' and inserting ``the
Secretary shall recapture any grant amounts provided to
the organization or consortia that are not used'';
(B) by striking ``(or,'' and inserting ``, except
that such period shall be 36 months''; and
(C) by striking ``within 36 months), the Secretary
shall recapture such unused amounts'' and inserting
``and in the case of a grant amounts provided to a
local affiliate of the organization or consortia that
is developing 5 or more dwellings in connection with
such grant amounts''; and
(2) in subsection (j), by inserting after ``carry out this
section'' the following: ``and grant amounts provided to a
local affiliate of the organization or consortia that is
developing 5 or more dwellings in connection with such grant
amounts''.
(d) Technical Corrections.--Section 11 of the Housing Opportunity
Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended--
(1) in subsection (b)(4), by striking ``Habitat for Humanity
International, its affiliates, and other''; and
(2) in subsection (e)(2), by striking ``consoria'' and
inserting ``consortia''.
SEC. 607. HOUSING COUNSELING ORGANIZATIONS.
Section 106 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x) is amended--
(1) in subsection (a)(1)(ii), by inserting ``and cooperative
housing'' before the semicolon at the end; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting a semicolon;
and
(iii) by adding at the end the following new
subparagraph:
``(C) to the National Cooperative Bank Development
Corporation--
``(i) to provide homeownership counseling to
eligible homeowners that is specifically
designed to relate to ownership under
cooperative housing arrangements; and
``(ii) to assist in the establishment and
operation of well-managed and viable
cooperative housing boards.'';
(B) in paragraph (4)(A), by inserting before the
semicolon at the end the following: ``or, in the case
of a home loan made to finance the purchase of stock or
membership in a cooperative ownership housing
corporation, by the stock or membership interest''; and
(C) in paragraph (6)(C), by adding before the period
at the end the following: ``and includes a loan that is
secured by a first lien given in accordance with the
laws of the State where the property is located and
that is made to finance the purchase of stock or
membership in a cooperative ownership housing
corporation the permanent occupancy of dwelling units
of which is restricted to members of such corporation,
where the purchase of such stock or membership will
entitle the purchaser to the permanent occupancy of 1
of such units''.
SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND LEAD-SAFE HOUSING.
Section 1011(e) of the Residential Lead-Based Paint Hazard Reduction
Act of 1992 (42 U.S.C. 4852(e)) is amended--
(1) in paragraph (7), by inserting ``, which may include
leasing of lead-safe temporary housing'' before the semicolon
at the end;
(2) in paragraph (9), by striking ``and'' at the end;
(3) by redesignating paragraph (10) as paragraph (11); and
(4) by inserting after paragraph (9) the following new
paragraph:
``(10) provide accessible information through centralized
locations that provide a variety of residential lead-based
paint poisoning prevention services to the community that such
services are intended to benefit; and''.
TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP
SEC. 701. LANDS TITLE REPORT COMMISSION.
(a) Establishment.--Subject to sums being provided in advance in
appropriations Acts, there is established a Commission to be known as
the Lands Title Report Commission (hereafter in this section referred
to as the ``Commission'') to facilitate home loan mortgages on Indian
trust lands. The Commission will be subject to oversight by the
Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate.
(b) Membership.--
(1) Appointment.--The Commission shall be composed of 12
members, appointed not later than 90 days after the date of the
enactment of this Act as follows:
(A) 4 members shall be appointed by the President.
(B) 4 members shall be appointed by the Chairperson
of the Committee on Banking and Financial Services of
the House of Representatives.
(C) 4 members shall be appointed by the Chairperson
of the Committee on Banking, Housing, and Urban Affairs
of the Senate.
(2) Qualifications.--
(A) Members of tribes.--At all times, not less than 8
of the members of the Commission shall be members of
federally recognized Indian tribes.
(B) Experience in land title matters.--All members of
the Commission shall have experience in and knowledge
of land title matters relating to Indian trust lands.
(3) Chairperson.--The Chairperson of the Commission shall be
one of the members of the Commission appointed under paragraph
(1)(C), as elected by the members of the Commission.
(4) Vacancies.--Any vacancy on the Commission shall not
affect its powers, but shall be filled in the manner in which
the original appointment was made.
(5) Travel expenses.--Members of the Commission shall serve
without pay, but each member shall receive travel expenses,
including per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States Code.
(c) Initial Meeting.--The Chairperson of the Commission shall call
the initial meeting of the Commission. Such meeting shall be held
within 30 days after the Chairperson of the Commission determines that
sums sufficient for the Commission to carry out its duties under this
Act have been appropriated for such purpose.
(d) Duties.--The Commission shall analyze the system of the Bureau of
Indian Affairs of the Department of the Interior for maintaining land
ownership records and title documents and issuing certified title
status reports relating to Indian trust lands and, pursuant to such
analysis, determine how best to improve or replace the system--
(1) to ensure prompt and accurate responses to requests for
title status reports;
(2) to eliminate any backlog of requests for title status
reports; and
(3) to ensure that the administration of the system will not
in any way impair or restrict the ability of Native Americans
to obtain conventional loans for purchase of residences located
on Indian trust lands, including any actions necessary to
ensure that the system will promptly be able to meet future
demands for certified title status reports, taking into account
the anticipated complexity and volume of such requests.
(e) Report.--Not later than the date of the termination of the
Commission under subsection (h), the Commission shall submit a report
to the Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate describing the analysis and determinations made
pursuant to subsection (d).
(f) Powers.--
(1) Hearings and sessions.--The Commission may, for the
purpose of carrying out this section, hold hearings, sit and
act at times and places, take testimony, and receive evidence
as the Commission considers appropriate.
(2) Staff of federal agencies.--Upon request of the
Commission, the head of any Federal department or agency may
detail, on a reimbursable basis, any of the personnel of that
department or agency to the Commission to assist it in carrying
out its duties under this section.
(3) Obtaining official data.--The Commission may secure
directly from any department or agency of the United States
information necessary to enable it to carry out this section.
Upon request of the Chairperson of the Commission, the head of
that department or agency shall furnish that information to the
Commission.
(4) Mails.--The Commission may use the United States mails in
the same manner and under the same conditions as other
departments and agencies of the United States.
(5) Administrative support services.--Upon the request of the
Commission, the Administrator of General Services shall provide
to the Commission, on a reimbursable basis, the administrative
support services necessary for the Commission to carry out its
duties under this section.
(6) Staff.--The Commission may appoint personnel as it
considers appropriate, subject to the provisions of title 5,
United States Code, governing appointments in the competitive
service, and shall pay such personnel in accordance with the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule pay
rates.
(g) Authorization of Appropriations.--To carry out this section,
there is authorized to be appropriated $500,000. Such sums shall remain
available until expended.
(h) Termination.--The Commission shall terminate 1 year after the
date of the initial meeting of the Commission.
SEC. 702. LOAN GUARANTEES.
Section 184(i) of the Housing and Community Development Act of 1992
(12 U.S.C. 1715z-13a(i)) is amended--
(1) in paragraph (5), by striking subparagraph (C) and
inserting the following new subparagraph:
``(C) Limitation on outstanding aggregate principal
amount.--Subject to the limitations in subparagraphs
(A) and (B), the Secretary may enter into commitments
to guarantee loans under this section in each fiscal
year with an aggregate outstanding principal amount not
exceeding such amount as may be provided in
appropriation Acts for such fiscal year.''; and
(2) in paragraph (7), by striking ``each of fiscal years
1997, 1998, 1999, 2000, and 2001'' and inserting ``each fiscal
year''.
SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) Restriction on Waiver Authority.--
(1) In general.--Section 101(b)(2) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4111(b)(2)) is amended by striking ``if the Secretary''
and all that follows through the period at the end and
inserting the following: ``for a period of not more than 90
days, if the Secretary determines that an Indian tribe has not
complied with, or is unable to comply with, those requirements
due to exigent circumstances beyond the control of the Indian
tribe.''.
(2) Local cooperation agreement.--Section 101(c) of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4111(c)) is amended by adding at the end the
following: ``The Secretary may waive the requirements of this
subsection and subsection (d) if the recipient has made a good
faith effort to fulfill the requirements of this subsection and
subsection (d) and agrees to make payments in lieu of taxes to
the appropriate taxing authority in an amount consistent with
the requirements of subsection (d)(2) until such time as the
matter of making such payments has been resolved in accordance
with subsection (d).''.
(b) Assistance to Families That Are Not Low-Income.--Section 102(c)
of the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4112(c)) is amended by adding at the end the following:
``(6) Certain families.--With respect to assistance provided
under section 201(b)(2) by a recipient to Indian families that
are not low-income families, evidence that there is a need for
housing for each such family during that period that cannot
reasonably be met without such assistance.''.
(c) Elimination of Waiver Authority for Small Tribes.--Section 102 of
the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4112) is amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
(d) Environmental Compliance.--Section 105 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4115)
is amended by adding at the end the following:
``(d) Environmental Compliance.--The Secretary may waive the
requirements under this section if the Secretary determines that a
failure on the part of a recipient to comply with provisions of this
section--
``(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or
any other provision of law that furthers the goals of that Act;
``(2) does not threaten the health or safety of the community
involved by posing an immediate or long-term hazard to
residents of that community;
``(3) is a result of inadvertent error, including an
incorrect or incomplete certification provided under subsection
(c)(1); and
``(4) may be corrected through the sole action of the
recipient.''.
(e) Eligibility of Law Enforcement Officers for Housing Assistance.--
Section 201(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4131(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)'';
(2) by redesignating paragraphs (4) and (5) as paragraphs (5)
and (6), respectively; and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) Law enforcement officers.--A recipient may provide
housing or housing assistance provided through affordable
housing activities assisted with grant amounts under this Act
for a law enforcement officer on an Indian reservation or other
Indian area, if--
``(A) the officer--
``(i) is employed on a full-time basis by the
Federal Government or a State, county, or
tribal government; and
``(ii) in implementing such full-time
employment, is sworn to uphold, and make
arrests for, violations of Federal, State,
county, or tribal law; and
``(B) the recipient determines that the presence of
the law enforcement officer on the Indian reservation
or other Indian area may deter crime.''.
(f) Oversight.--
(1) Repayment.--Section 209 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139)
is amended to read as follows:
``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.
``If a recipient uses grant amounts to provide affordable housing
under this title, and at any time during the useful life of the housing
the recipient does not comply with the requirement under section
205(a)(2), the Secretary shall take appropriate action under section
401(a).''.
(2) Audits and reviews.--Section 405 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4165) is amended to read as follows:
``SEC. 405. REVIEW AND AUDIT BY SECRETARY.
``(a) Requirements Under Chapter 75 of Title 31, United States
Code.--An entity designated by an Indian tribe as a housing entity
shall be treated, for purposes of chapter 75 of title 31, United States
Code, as a non-Federal entity that is subject to the audit requirements
that apply to non-Federal entities under that chapter.
``(b) Additional Reviews and Audits.--
``(1) In general.--In addition to any audit or review under
subsection (a), to the extent the Secretary determines such
action to be appropriate, the Secretary may conduct an audit or
review of a recipient in order to--
``(A) determine whether the recipient--
``(i) has carried out--
``(I) eligible activities in a timely
manner; and
``(II) eligible activities and
certification in accordance with this
Act and other applicable law;
``(ii) has a continuing capacity to carry out
eligible activities in a timely manner; and
``(iii) is in compliance with the Indian
housing plan of the recipient; and
``(B) verify the accuracy of information contained in
any performance report submitted by the recipient under
section 404.
``(2) On-site visits.--To the extent practicable, the reviews
and audits conducted under this subsection shall include on-
site visits by the appropriate official of the Department of
Housing and Urban Development.
``(c) Review of Reports.--
``(1) In general.--The Secretary shall provide each recipient
that is the subject of a report made by the Secretary under
this section notice that the recipient may review and comment
on the report during a period of not less than 30 days after
the date on which notice is issued under this paragraph.
``(2) Public availability.--After taking into consideration
any comments of the recipient under paragraph (1), the
Secretary--
``(A) may revise the report; and
``(B) not later than 30 days after the date on which
those comments are received, shall make the comments
and the report (with any revisions made under
subparagraph (A)) readily available to the public.
``(d) Effect of Reviews.--Subject to section 401(a), after reviewing
the reports and audits relating to a recipient that are submitted to
the Secretary under this section, the Secretary may adjust the amount
of a grant made to a recipient under this Act in accordance with the
findings of the Secretary with respect to those reports and audits.''.
(g) Allocation Formula.--Section 302(d)(1) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4152(d)(1)) is amended--
(1) by striking ``The formula,'' and inserting the following:
``(A) In general.--Except with respect to an Indian
tribe described in subparagraph (B), the formula''; and
(2) by adding at the end the following:
``(B) Certain indian tribes.--With respect to fiscal
year 2001 and each fiscal year thereafter, for any
Indian tribe with an Indian housing authority that owns
or operates fewer than 250 public housing units, the
formula shall provide that if the amount provided for a
fiscal year in which the total amount made available
for assistance under this Act is equal to or greater
than the amount made available for fiscal year 1996 for
assistance for the operation and modernization of the
public housing referred to in subparagraph (A), then
the amount provided to that Indian tribe as
modernization assistance shall be equal to the average
annual amount of funds provided to the Indian tribe
(other than funds provided as emergency assistance)
under the assistance program under section 14 of the
United States Housing Act of 1937 (42 U.S.C. 1437l) for
the period beginning with fiscal year 1992 and ending
with fiscal year 1997.''.
(h) Hearing Requirement.--Section 401(a) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4161(a)) is amended--
(1) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and realigning
such subparagraphs (as so redesignated) so as to be indented 4
ems from the left margin;
(2) by striking ``Except as provided'' and inserting the
following:
``(1) In general.--Except as provided'';
(3) by striking ``If the Secretary takes an action under
paragraph (1), (2), or (3)'' and inserting the following:
``(2) Continuance of actions.--If the Secretary takes an
action under subparagraph (A), (B), or (C) of paragraph (1)'';
and
(4) by adding at the end the following:
``(3) Exception for certain actions.--
``(A) In general.--Notwithstanding any other
provision of this subsection, if the Secretary makes a
determination that the failure of a recipient of
assistance under this Act to comply substantially with
any material provision (as that term is defined by the
Secretary) of this Act is resulting, and would continue
to result, in a continuing expenditure of Federal funds
in a manner that is not authorized by law, the
Secretary may take an action described in paragraph
(1)(C) before conducting a hearing.
``(B) Procedural requirement.--If the Secretary takes
an action described in subparagraph (A), the Secretary
shall--
``(i) provide notice to the recipient at the
time that the Secretary takes that action; and
``(ii) conduct a hearing not later than 60
days after the date on which the Secretary
provides notice under clause (i).
``(C) Determination.--Upon completion of a hearing
under this paragraph, the Secretary shall make a
determination regarding whether to continue taking the
action that is the subject of the hearing, or take
another action under this subsection.''.
(i) Performance Agreement Time Limit.--Section 401(b) of the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4161(b)) is amended--
(1) by striking ``If the Secretary'' and inserting the
following:
``(1) In general.--If the Secretary'';
(2) by striking ``(1) is not'' and inserting the following:
``(A) is not'';
(3) by striking ``(2) is a result'' and inserting the
following:
``(B) is a result'';
(4) in the flush material following paragraph (1)(B), as
redesignated by paragraph (3) of this subsection--
(A) by realigning such material so as to be indented
2 ems from the left margin; and
(B) by inserting before the period at the end the
following: ``, if the recipient enters into a
performance agreement with the Secretary that specifies
the compliance objectives that the recipient will be
required to achieve by the termination date of the
performance agreement''; and
(5) by adding at the end the following:
``(2) Performance agreement.--The period of a performance
agreement described in paragraph (1) shall be for 1 year.
``(3) Review.--Upon the termination of a performance
agreement entered into under paragraph (1), the Secretary shall
review the performance of the recipient that is a party to the
agreement.
``(4) Effect of review.--If, on the basis of a review under
paragraph (3), the Secretary determines that the recipient--
``(A) has made a good faith effort to meet the
compliance objectives specified in the agreement, the
Secretary may enter into an additional performance
agreement for the period specified in paragraph (2);
and
``(B) has failed to make a good faith effort to meet
applicable compliance objectives, the Secretary shall
determine the recipient to have failed to comply
substantially with this Act, and the recipient shall be
subject to an action under subsection (a).''.
(j) Reference.--Section 104(b)(1) of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4114(b)(1)) is
amended by striking ``Davis-Bacon Act (40 U.S.C. 276a-276a-5)'' and
inserting ``Act of March 3, 1931 (commonly known as the Davis-Bacon
Act; chapter 411; 46 Stat. 1494; 40 U.S.C 276a et seq.)''.
(k) Technical and Conforming Amendments.--
(1) Table of contents.--Section 1(b) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 note) is amended in the table of contents--
(A) by striking the item relating to section 206; and
(B) by striking the item relating to section 209 and
inserting the following:
``209. Noncompliance with affordable housing requirement.''.
(2) Certification of compliance with subsidy layering
requirements.--Section 206 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136)
is repealed.
(3) Terminations.--Section 502(a) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4181(a)) is amended by adding at the end the following:
``Any housing that is the subject of a contract for tenant-
based assistance between the Secretary and an Indian housing
authority that is terminated under this section shall, for the
following fiscal year and each fiscal year thereafter, be
considered to be a dwelling unit under section 302(b)(1).''.
TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
NONPROFIT ORGANIZATIONS
SEC. 801. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO
LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT
CORPORATIONS.
Section 204 of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1997
(12 U.S.C. 1715z-11a) is amended--
(1) by striking ``Flexible Authority.--'' and inserting
``Disposition of HUD-Owned Properties. (a) Flexible Authority
for Multifamily Projects.--''; and
(2) by adding at the end the following new subsection:
``(b) Transfer of Unoccupied and Substandard Housing to Local
Governments and Community Development Corporations.--
``(1) Transfer authority.--Notwithstanding the authority
under subsection (a) and the last sentence of section 204(g) of
the National Housing Act (12 U.S.C. 1710(g)), the Secretary of
Housing and Urban Development shall transfer ownership of any
qualified HUD property, subject to the requirements of this
section, to a unit of general local government having
jurisdiction for the area in which the property is located or
to a community development corporation which operates within
such a unit of general local government in accordance with this
subsection, but only to the extent that units of general local
government and community development corporations consent to
transfer and the Secretary determines that such transfer is
practicable.
``(2) Qualified hud properties.--For purposes of this
subsection, the term `qualified HUD property' means any
property for which, as of the date that notification of the
property is first made under paragraph (3)(B), not less than 6
months have elapsed since the later of the date that the
property was acquired by the Secretary or the date that the
property was determined to be unoccupied or substandard, that
is owned by the Secretary and is--
``(A) an unoccupied multifamily housing project;
``(B) a substandard multifamily housing project; or
``(C) an unoccupied single family property that--
``(i) has been determined by the Secretary
not to be an eligible asset under section
204(h) of the National Housing Act (12 U.S.C.
1710(h)); or
``(ii) is an eligible asset under such
section 204(h), but--
``(I) is not subject to a specific
sale agreement under such section; and
``(II) has been determined by the
Secretary to be inappropriate for
continued inclusion in the program
under such section 204(h) pursuant to
paragraph (10) of such section.
``(3) Timing.--The Secretary shall establish procedures that
provide for--
``(A) time deadlines for transfers under this
subsection;
``(B) notification to units of general local
government and community development corporations of
qualified HUD properties in their jurisdictions;
``(C) such units and corporations to express interest
in the transfer under this subsection of such
properties;
``(D) a right of first refusal for transfer of
qualified HUD properties to units of general local
government and community development corporations,
under which--
``(i) the Secretary shall establish a period
during which the Secretary may not transfer
such properties except to such units and
corporations;
``(ii) the Secretary shall offer qualified
HUD properties that are single family
properties for purchase by units of general
local government at a cost of $1 for each
property, but only to the extent that the costs
to the Federal Government of disposal at such
price do not exceed the costs to the Federal
Government of disposing of property subject to
the procedures for single family property
established by the Secretary pursuant to the
authority under the last sentence of section
204(g) of the National Housing Act (12 U.S.C.
1710(g));
``(iii) the Secretary may accept an offer to
purchase a property made by a community
development corporation only if the offer
provides for purchase on a cost recovery basis;
and
``(iv) the Secretary shall accept an offer to
purchase such a property that is made during
such period by such a unit or corporation and
that complies with the requirements of this
paragraph;
``(E) a written explanation, to any unit of general
local government or community development corporation
making an offer to purchase a qualified HUD property
under this subsection that is not accepted, of the
reason that such offer was not acceptable.
``(4) Other disposition.--With respect to any qualified HUD
property, if the Secretary does not receive an acceptable offer
to purchase the property pursuant to the procedure established
under paragraph (3), the Secretary shall dispose of the
property to the unit of general local government in which
property is located or to community development corporations
located in such unit of general local government on a
negotiated, competitive bid, or other basis, on such terms as
the Secretary deems appropriate.
``(5) Satisfaction of indebtedness.--Before transferring
ownership of any qualified HUD property pursuant to this
subsection, the Secretary shall satisfy any indebtedness
incurred in connection with the property to be transferred, by
canceling the indebtedness.
``(6) Determination of status of properties.--To ensure
compliance with the requirements of this subsection, the
Secretary shall take the following actions:
``(A) Upon enactment.--Upon the enactment of the
American Homeownership and Economic Opportunity Act of
2000, the Secretary shall promptly assess each
residential property owned by the Secretary to
determine whether such property is a qualified HUD
property.
``(B) Upon acquisition.--Upon acquiring any
residential property, the Secretary shall promptly
determine whether the property is a qualified HUD
property.
``(C) Updates.--The Secretary shall periodically
reassess the residential properties owned by the
Secretary to determine whether any such properties have
become qualified HUD properties.
``(7) Tenant leases.--This subsection shall not affect the
terms or the enforceability of any contract or lease entered
into with respect to any residential property before the date
that such property becomes a qualified HUD property.
``(8) Use of property.--Property transferred under this
subsection shall be used only for appropriate neighborhood
revitalization efforts, including homeownership, rental units,
commercial space, and parks, consistent with local zoning
regulations, local building codes, and subdivision regulations
and restrictions of record.
``(9) Inapplicability to properties made available for
homeless.--Notwithstanding any other provision of this
subsection, this subsection shall not apply to any properties
that the Secretary determines are to be made available for use
by the homeless pursuant to subpart E of part 291 of title 24,
Code of Federal Regulations, during the period that the
properties are so available.
``(10) Protection of existing contracts.--This subsection may
not be construed to alter, affect, or annul any legally binding
obligations entered intowith respect to a qualified HUD
property before the property becomes a qualified HUD property.
``(11) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Community development corporation.--The term
`community development corporation' means a nonprofit
organization whose primary purpose is to promote
community development by providing housing
opportunities for low-income families.
``(B) Cost recovery basis.--The term `cost recovery
basis' means, with respect to any sale of a residential
property by the Secretary, that the purchase price paid
by the purchaser is equal to or greater than the sum of
(i) the appraised value of the property, as determined
in accordance with such requirements as the Secretary
shall establish, and (ii) the costs incurred by the
Secretary in connection with such property during the
period beginning on the date on which the Secretary
acquires title to the property and ending on the date
on which the sale is consummated.
``(C) Multifamily housing project.--The term
`multifamily housing project' has the meaning given the
term in section 203 of the Housing and Community
Development Amendments of 1978.
``(D) Residential property.--The term `residential
property' means a property that is a multifamily
housing project or a single family property.
``(E) Secretary.--The term `Secretary' means the
Secretary of Housing and Urban Development.
``(F) Severe physical problems.--The term `severe
physical problems' means, with respect to a dwelling
unit, that the unit--
``(i) lacks hot or cold piped water, a flush
toilet, or both a bathtub and a shower in the
unit, for the exclusive use of that unit;
``(ii) on not less than 3 separate occasions
during the preceding winter months, was
uncomfortably cold for a period of more than 6
consecutive hours due to a malfunction of the
heating system for the unit;
``(iii) has no functioning electrical
service, exposed wiring, any room in which
there is not a functioning electrical outlet,
or has experienced 3 or more blown fuses or
tripped circuit breakers during the preceding
90-day period;
``(iv) is accessible through a public hallway
in which there are no working light fixtures,
loose or missing steps or railings, and no
elevator; or
``(v) has severe maintenance problems,
including water leaks involving the roof,
windows, doors, basement, or pipes or plumbing
fixtures, holes or open cracks in walls or
ceilings, severe paint peeling or broken
plaster, and signs of rodent infestation.
``(G) Single family property.--The term `single
family property' means a 1- to 4-family residence.
``(H) Substandard.--The term `substandard' means,
with respect to a multifamily housing project, that 25
percent or more of the dwelling units in the project
have severe physical problems.
``(I) Unit of general local government.--The term
`unit of general local government' has the meaning
given such term in section 102(a) of the Housing and
Community Development Act of 1974.
``(J) Unoccupied.--The term `unoccupied' means, with
respect to a residential property, that the unit of
general local government having jurisdiction over the
area in which the project is located has certified in
writing that the property is not inhabited.
``(12) Regulations.--
``(A) Interim.--Not later than 30 days after the date
of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall
issue such interim regulations as are necessary to
carry out this subsection.
``(B) Final.--Not later than 60 days after the date
of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall
issue such final regulations as are necessary to carry
out this subsection.''.
SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.
In carrying out the program under section 204(h) of the National
Housing Act (12 U.S.C. 1710(h)), upon the request of the chief
executive officer of a county or the government of appropriate
jurisdiction and not later than 60 days after such request is made, the
Secretary of Housing and Urban Development shall designate as a
revitalization area all portions of such county that meet the criteria
for such designation under paragraph (3) of such section.
TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
SECTION 901. SHORT TITLE.
This title may be cited as the ``Private Mortgage Insurance Technical
Corrections and Clarification Act''.
SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.
(a) Treatment of Adjustable Rate Mortgages.--The Homeowners
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
(1) in section 2--
(A) in paragraph (2)(B)(i), by striking
``amortization schedules'' and inserting ``the
amortization schedule then in effect'';
(B) in paragraph (16)(B), by striking ``amortization
schedules'' and inserting ``the amortization schedule
then in effect'';
(C) by redesignating paragraphs (6) through (16) (as
amended by the preceding provisions of this paragraph)
as paragraphs (8) through (18), respectively; and
(D) by inserting after paragraph (5) the following
new paragraph:
``(6) Amortization schedule then in effect.--The term
`amortization schedule then in effect' means, with respect to
an adjustable rate mortgage, a schedule established at the time
at which the residential mortgage transaction is consummated
or, if such schedule has been changed or recalculated, is the
most recent schedule under the terms of the note or mortgage,
which shows--
``(A) the amount of principal and interest that is
due at regular intervals to retire the principal
balance and accrued interest over the remaining
amortization period of the loan; and
``(B) the unpaid balance of the loan after each such
scheduled payment is made.''; and
(2) in section 3(f)(1)(B)(ii), by striking ``amortization
schedules'' and inserting ``the amortization schedule then in
effect''.
(b) Treatment of Balloon Mortgages.--Paragraph (1) of section 2 of
the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by
adding at the end the following new sentence: ``A residential mortgage
that (A) does not fully amortize over the term of the obligation, and
(B) contains a conditional right to refinance or modify the unamortized
principal at the maturity date of the term, shall be considered to be
an adjustable rate mortgage for purposes of this Act.''.
(c) Treatment of Loan Modifications.--
(1) In general.--Section 3 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4902) is amended--
(A) by redesignating subsections (d) through (f) as
subsections (e) through (g), respectively; and
(B) by inserting after subsection (c) the following
new subsection:
``(d) Treatment of Loan Modifications.--If a mortgagor and mortgagee
(or holder of the mortgage) agree to a modification of the terms or
conditions of a loan pursuant to a residential mortgage transaction,
the cancellation date, termination date, or final termination shall be
recalculated to reflect the modified terms and conditions of such
loan.''.
(2) Conforming amendments.--Section 4(a) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by striking ``section 3(f)(1)'' and inserting
``section 3(g)(1)'';
(ii) in subparagraph (A)(ii)(IV), by striking
``section 3(f)'' and inserting ``section
3(g)''; and
(iii) in subparagraph (B)(iii), by striking
``section 3(f)'' and inserting ``section
3(g)''; and
(B) in paragraph (2), by striking ``section 3(f)(1)''
and inserting ``section 3(g)(1)''.
SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL MORTGAGES.
(a) Termination of Private Mortgage Insurance.--Section 3 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended--
(1) in subsection (c), by inserting ``on residential mortgage
transactions'' after ``imposed''; and
(2) in subsection (g) (as so redesignated by section
902(c)(1)(A) of this title)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``mortgage or'';
(B) in paragraph (2), by striking ``mortgage or'';
and
(C) in paragraph (3), by striking ``mortgage or'' and
inserting ``residential mortgage or residential''.
(b) Disclosure Requirements.--Section 4 of the Homeowners Protection
Act of 1998 (12 U.S.C. 4903(a)) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``mortgage or'' the first
place it appears; and
(ii) by striking ``mortgage or'' the second
place it appears and inserting ``residential'';
and
(B) in paragraph (2), by striking ``mortgage or'' and
inserting ``residential'';
(2) in subsection (c), by striking ``paragraphs (1)(B) and
(3) of subsection (a)'' and inserting ``subsection (a)(3)'';
and
(3) in subsection (d), by inserting before the period at the
end the following: ``, which disclosures shall relate to the
mortgagor's rights under this Act''.
(c) Disclosure Requirements for Lender-Paid Mortgage Insurance.--
Section 6 of the Homeowners Protection Act of 1998 (12 U.S.C. 4905) is
amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``a residential mortgage or''; and
(B) in paragraph (2), by inserting ``transaction''
after ``residential mortgage''; and
(2) in subsection (d), by inserting ``transaction'' after
``residential mortgage''.
SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION DATE.
Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902)
is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
inserting after ``cancellation date'' the following:
``or any later date that the mortgagor fulfills all of
the requirements under paragraphs (1) through (4)'';
(B) in paragraph (2), by striking ``and'' at the end;
(C) by redesignating paragraph (3) as paragraph (4);
and
(D) by inserting after paragraph (2) the following
new paragraph:
``(3) is current on the payments required by the terms of the
residential mortgage transaction; and''; and
(2) in subsection (e)(1)(B) (as so redesignated by section
902(c)(1)(A) of this title), by striking ``subsection (a)(3)''
and inserting ``subsection (a)(4)''.
SEC. 905. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND
LENDER PAID MORTGAGE INSURANCE DISCLOSURE
REQUIREMENTS.
(a) Good Payment History.--Section 2(4) of the Homeowners Protection
Act of 1998 (12 U.S.C. 4901(4)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``the later of (i)'' before ``the
date''; and
(ii) by inserting ``, or (ii) the date that
the mortgagor submits a request for
cancellation under section 3(a)(1)'' before the
semicolon; and
(B) in subparagraph (B)--
(i) by inserting ``the later of (i)'' before
``the date''; and
(ii) by inserting ``, or (ii) the date that
the mortgagor submits a request for
cancellation under section 3(a)(1)'' before the
period at the end.
(b) Automatic Termination.--Paragraph (2) of section 3(b) of the
Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to
read as follows:
``(2) if the mortgagor is not current on the termination
date, on the first day of the first month beginning after the
date that the mortgagor becomes current on the payments
required by the terms of the residential mortgage
transaction.''
(c) Premium Payments.--Section 3 of the Homeowners Protection Act of
1998 (12 U.S.C. 4902) is amended by adding at the end the following new
subsection:
``(h) Accrued Obligation for Premium Payments.--The cancellation or
termination under this section of the private mortgage insurance of a
mortgagor shall not affect the rights of any mortgagee, servicer, or
mortgage insurer to enforce any obligation of such mortgagor for
premium payments accrued prior to the date on which such cancellation
or termination occurred.''.
SEC. 906. DEFINITIONS.
(a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners Protection
Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by inserting after
``refinanced'' the following: ``(under the meaning given such term in
the regulations issued by the Board of Governors of the Federal Reserve
System to carry out the Truth in Lending Act (15 U.S.C. 1601 et
seq.))''.
(b) Midpoint of the Amortization Period.--Section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901) is amended by inserting after
paragraph (6) (as added by section 902(a)(1)(D) of this Act) the
following new paragraph:
``(7) Midpoint of the amortization period.--The term
`midpoint of the amortization period' means, with respect to a
residential mortgage transaction, the point in time that is
halfway through the period that begins upon the first day of
the amortization period established at the time a residential
mortgage transaction is consummated and ends upon the
completion of the entire period over which the mortgage is
scheduled to be amortized.''.
(c) Original Value.--Section 2(12) of the Homeowners Protection Act
of 1998 (12 U.S.C. 4901(10)) (as so redesignated by section
902(a)(1)(C) of this Act) is amended--
(1) by inserting ``transaction'' after ``a residential
mortgage''; and
(2) by adding at the end the following new sentence: ``In the
case of a residential mortgage transaction for refinancing the
principal residence of the mortgagor, such term means only the
appraised value relied upon by the mortgagee to approve the
refinance transaction.''.
(d) Principal Residence.--Section 2 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4901) is amended--
(1) in paragraph (14) (as so redesignated by section
902(a)(1)(C) of this Act) by striking ``primary'' and inserting
``principal''; and
(2) in paragraph (15) (as so redesignated by section
902(a)(1)(C) of this Act) by striking ``primary'' and inserting
``principal'';
TITLE X--RURAL HOUSING HOMEOWNERSHIP
SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR LOAN
PROGRAM.
The fourth sentence of section 504(a) of the Housing Act of 1949 (42
U.S.C. 1474(a)) is amended by striking ``$2,500'' and inserting
``$7,500''.
SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM LABOR HOUSING
LOANS.
The first sentence of section 514(a) of the Housing Act of 1949 (42
U.S.C. 1484(a)) is amended by striking ``nonprofit limited
partnership'' and inserting ``limited partnership''.
SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRACTICES.
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended by
striking subsection (z) and inserting the following new subsections:
``(z) Accounting and Recordkeeping Requirements.--
``(1) Accounting standards.--The Secretary shall require that
borrowers in programs authorized by this section maintain
accounting records in accordance with generally accepted
accounting principles for all projects that receive funds from
loans made or guaranteed by the Secretary under this section.
``(2) Record retention requirements.--The Secretary shall
require that borrowers in programs authorized by this section
retain for a period of not less than 6 years and make available
to the Secretary in a manner determined by the Secretary, all
records required to be maintained under this subsection and
other records identified by the Secretary in applicable
regulations.
``(aa) Double Damages for Unauthorized Use of Housing Projects Assets
and Income.--
``(1) Action to recover assets or income.--
``(A) In general.--The Secretary may request the
Attorney General to bring an action in a United States
district court to recover any assets or income used by
any person in violation of the provisions of a loan
made or guaranteed by the Secretary under this section
or in violation of any applicable statute or
regulation.
``(B) Improper documentation.--For purposes of this
subsection, a use of assets or income in violation of
the applicable loan, loan guarantee, statute, or
regulation shall include any use for which the
documentation in the books and accounts does not
establish that the use was made for a reasonable
operating expense or necessary repair of the project or
for which the documentation has not been maintained in
accordance with the requirements of the Secretary and
in reasonable condition for proper audit.
``(C) Definition.--For the purposes of this
subsection, the term `person' means--
``(i) any individual or entity that borrows
funds in accordance with programs authorized by
this section;
``(ii) any individual or entity holding 25
percent or more interest of any entity that
borrows funds in accordance with programs
authorized by this section; and
``(iii) any officer, director, or partner of
an entity that borrows funds in accordance with
programs authorized by this section.
``(2) Amount recoverable.--
``(A) In general.--In any judgment favorable to the
United States entered under this subsection, the
Attorney General may recover double the value of the
assets and income of the project that the court
determines to have been used in violation of the
provisions of a loan made or guaranteed by the
Secretary under this section or any applicable statute
or regulation, plus all costs related to the action,
including reasonable attorney and auditing fees.
``(B) Application of recovered funds.--
Notwithstanding any other provision of law, the
Secretary may use amounts recovered under this
subsection for activities authorized under this section
and such funds shall remain available for such use
until expended.
``(3) Time limitation.--Notwithstanding any other provision
of law, an action under this subsection may be commenced at any
time during the 6-year period beginning on the date that the
Secretary discovered or should have discovered the violation of
the provisions of this section or any related statutes or
regulations.
``(4) Continued availability of other remedies.--The remedy
provided in this subsection is in addition to and not in
substitution of any other remedies available to the Secretary
or the United States.''.
SEC. 1004. DEFINITION OF RURAL AREA.
The second sentence of section 520 of the Housing Act of 1949 (42
U.S.C. 1490) is amended by striking ``year 2000'' and inserting ``year
2010''.
SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS PROJECTS.
The last sentence of section 521(a)(5)(A) of the Housing Act of 1949
(42 U.S.C. 1490a(a)(5)(A)) is amended by striking ``project'' and
inserting ``tenant or unit''.
SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.
Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is
amended--
(1) in subsection (c), by inserting ``an Indian
organization,'' after ``thereof,'';
(2) in subsection (f), by striking paragraph (1) and
inserting the following new paragraph:
``(1) be made for a period of not less than 25 nor greater
than 40 years from the date the loan was made and may provide
for amortization of the loan over a period of not to exceed 40
years with a final payment of the balance due at the end of the
loan term;'';
(3) in subsection (i)(2), by striking ``(A) conveyance to the
Secretary'' and all that follows through ``(C) assignment'' and
inserting ``(A) submission to the Secretary of a claim for
payment under the guarantee, and (B) assignment'';
(4) in subsection (s), by adding at the end the following new
subsection:
``(4) Indian organization.--The term `Indian organization'
means the governing body of an Indian tribe, band, group,
pueblo, or community, including native villages or native
groups, as defined by the Alaska Claims Settlement Act (43
U.S.C. 1601 et seq.), (including corporations organized by the
Kenai, Juneau, Sitka, and Kodiak) which is eligible for
services from the Bureau of Indian Affairs or an entity
established or recognized by the governing body for the purpose
of financing economic development.'';
(5) in subsection (t), by inserting before the period at the
end the following: ``to provide guarantees under this section
for eligible loans having an aggregate principal amount of
$500,000,000'';
(6) by striking subsection (l);
(7) by redesignating subsections (m) through (u) as
subsections (l) through (t), respectively;
(8) by adding at the end the following new subsections:
``(u) Fee Authority.--
``(1) In general.--Any amounts collected by the Secretary
pursuant to the fees charged to lenders for loan guarantees
issued under this section shall be used to offset costs (as
defined by section 502 of the Congressional Budget Act of 1974
(2 U.S.C. 661a)) of loan guarantees made under this section.
``(2) Excess funds.--Any fees described in paragraph (1)
collected in excess of the amount required in paragraph (1)
during a fiscal year, shall be available to the Secretary,
without further appropriation and without fiscal year
limitation, for use by the Secretary for costs of administering
(including monitoring) program activities authorized pursuant
to this section and shall be in addition to other funds made
available for this purpose.
``(v) Defaults of Loans Secured by Reservation Lands.--In the event
of a default involving a loan to an Indian tribe or tribal corporation
made under this section which is secured by an interest in land within
such tribe's reservation (as determined by the Secretary of the
Interior), including a community in Alaska incorporated by the
Secretary of the Interior pursuant to the Indian Reorganization Act (25
U.S.C. 461 et seq.), the lender shall only pursue liquidation after
offering to transfer the account to an eligible tribal member, the
tribe, or the Indian housing authority serving the tribe. If the lender
subsequently proceeds to liquidate the account, the lender shall not
sell, transfer, or otherwise dispose of or alienate the property except
to one of the entities described in the preceding sentence.''.
SEC. 1007. ENFORCEMENT PROVISIONS.
(a) In General.--Title V of the Housing Act of 1949 (42 U.S.C. 1471
et seq.) is amended by adding after section 542 the following:
``SEC. 543. ENFORCEMENT PROVISIONS.
``(a) Equity Skimming.--
``(1) Criminal penalty.--Whoever, as an owner, agent,
employee, or manager, or is otherwise in custody, control, or
possession of property that is security for a loan made or
guaranteed under this title, willfully uses, or authorizes the
use, of any part of the rents, assets, proceeds, income, or
other funds derived from such property, for any purpose other
than to meet actual, reasonable, and necessary expenses of the
property, or for any other purpose not authorized by this title
or the regulations adopted pursuant to this title, shall be
fined under title 18, United States Code, or imprisoned not
more than 5 years, or both.
``(2) Civil sanctions.--An entity or individual who as an
owner, operator, employee, or manager, or who acts as an agent
for a property that is security for a loan made or guaranteed
under this title where any part of the rents, assets, proceeds,
income, or other funds derived from such property are used for
any purpose other than to meet actual, reasonable, and
necessary expenses of the property, or for any other purpose
not authorized by this title or the regulations adopted
pursuant to this title, shall be subject to a fine of not more
than $25,000 per violation. The sanctions provided in this
paragraph may be imposed in addition to any other civil
sanctions or civil monetary penalties authorized by law.
``(b) Civil Monetary Penalties.--
``(1) In general.--The Secretary may, after notice and
opportunity for a hearing, impose a civil monetary penalty in
accordance with this subsection against any individual or
entity, including its owners, officers, directors, general
partners, limited partners, or employees, who knowingly and
materially violate, or participate in the violation of, the
provisions of this title, the regulations issued by the
Secretary pursuant to this title, or agreements made in
accordance with this title, by--
``(A) submitting information to the Secretary that is
false;
``(B) providing the Secretary with false
certifications;
``(C) failing to submit information requested by the
Secretary in a timely manner;
``(D) failing to maintain the property subject to
loans made or guaranteed under this title in good
repair and condition, as determined by the Secretary;
``(E) failing to provide management for a project
which received a loan made or guaranteed under this
title that is acceptable to the Secretary; or
``(F) failing to comply with the provisions of
applicable civil rights statutes and regulations.
``(2) Conditions for renewal or extension.--The Secretary may
require that expiring loan or assistance agreements entered
into under this title shall not be renewed or extended unless
the owner executes an agreement to comply with additional
conditions prescribed by the Secretary, or executes a new loan
or assistance agreement in the form prescribed by the
Secretary.
``(3) Amount.--
``(A) In general.--The amount of a civil monetary
penalty imposed under this subsection shall not exceed
the greater of--
``(i) twice the damages the Department of
Agriculture, the guaranteed lender, or the
project that is secured for a loan under this
section suffered or would have suffered as a
result of the violation; or
``(ii) $50,000 per violation.
``(B) Determination.--In determining the amount of a
civil monetary penalty under this subsection, the
Secretary shall take into consideration--
``(i) the gravity of the offense;
``(ii) any history of prior offenses by the
violator (including offenses occurring prior to
the enactment of this section);
``(iii) the ability of the violator to pay
the penalty;
``(iv) any injury to tenants;
``(v) any injury to the public;
``(vi) any benefits received by the violator
as a result of the violation;
``(vii) deterrence of future violations; and
``(viii) such other factors as the Secretary
may establish by regulation.
``(4) Payment of penalties.--No payment of a penalty assessed
under this section may be made from funds provided under this
title or from funds of a project which serve as security for a
loan made or guaranteed under this title.
``(5) Remedies for noncompliance.--
``(A) Judicial intervention.--If a person or entity
fails to comply with a final determination by the
Secretary imposing a civil monetary penalty under this
subsection, the Secretary may request the Attorney
General of the United States to bring an action in an
appropriate United States district court to obtain a
monetary judgment against such individual or entity and
such other relief as may be available. The monetary
judgment may, in the court's discretion, include the
attorney's fees and other expenses incurred by the
United States in connection with the action.
``(B) Reviewability of determination.--In an action
under this paragraph, the validity and appropriateness
of a determination by the Secretary imposing the
penalty shall not be subject to review.''.
(b) Conforming Amendment.--Section 514 of the Housing Act of 1949 (42
U.S.C. 1484) is amended by striking subsection (j).
SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.
(a) Money Laundering.--Section 1956(c)(7)(D) of title 18, United
States Code, is amended by inserting ``any violation of section
543(a)(1) of the Housing Act of 1949 (relating to equity skimming),''
after ``coupons having a value of not less than $5,000,''.
(b) Obstruction of Federal Audits.--Section 1516(a) of title 18,
United States Code, is amended by inserting ``or relating to any
property that is security for a loan that is made or guaranteed under
title V of the Housing Act of 1949,'' before ``shall be fined under
this title''.
TITLE XI--MANUFACTURED HOUSING IMPROVEMENT
SEC. 1101. SHORT TITLE AND REFERENCES.
(a) Short Title.--This title may be cited as the ``Manufactured
Housing Improvement Act''.
(b) References.--Whenever in this title an amendment is expressed in
terms of an amendment to, or repeal of, an Act, a section, or any other
provision, the reference shall be considered to be made to that section
or other provision of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
SEC. 1102. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as follows:
``findings and purposes
``Sec. 602. (a) Findings.--The Congress finds that--
``(1) manufactured housing plays a vital role in meeting the
housing needs of the Nation; and
``(2) manufactured homes provide a significant resource for
affordable homeownership and rental housing accessible to all
Americans.
``(b) Purposes.--The purposes of this title are--
``(1) to facilitate the acceptance of the quality,
durability, safety, and affordability of manufactured housing
within the Department of Housing and Urban Development;
``(2) to facilitate the availability of affordable
manufactured homes and to increase homeownership for all
Americans;
``(3) to provide for the establishment of practical, uniform,
and, to the extent possible, performance-based Federal
construction standards;
``(4) to encourage innovative and cost-effective construction
techniques;
``(5) to protect owners of manufactured homes from
unreasonable risk of personal injury and property damage;
``(6) to establish a balanced consensus process for the
development, revision, and interpretation of Federal
construction and safety standards for manufactured homes and
related regulations for the enforcement of such standards;
``(7) to ensure uniform and effective enforcement of Federal
construction and safety standards for manufactured homes; and
``(8) to ensure that the public interest in, and need for,
affordable manufactured housing is duly considered in all
determinations relating to the Federal standards and their
enforcement.''.
SEC. 1103. DEFINITIONS.
(a) In General.--Section 603 (42 U.S.C. 5402) is amended--
(1) in paragraph (2), by striking ``dealer'' and inserting
``retailer'';
(2) in paragraph (12), by striking ``and'' at the end;
(3) in paragraph (13), by striking the period at the end and
inserting a semicolon; and
(4) by adding at the end the following new paragraphs:
``(14) `administering organization' means the recognized,
voluntary, private sector, consensus standards body with
specific experience in developing model residential building
codes and standards involving all disciplines regarding
construction and safety that administers the consensus
standards development process;
``(15) `consensus committee' means the committee established
under section 604(a)(3);
``(16) `consensus standards development process' means the
process by which additions, revisions, and interpretations to
the Federal manufactured home construction and safety standards
and enforcement regulations shall be developed and recommended
to the Secretary by the consensus committee;
``(17) `primary inspection agency' means a State agency or
private organization that has been approved by the Secretary to
act as a design approval primary inspection agency or a
production inspection primary inspection agency, or both;
``(18) `design approval primary inspection agency' means a
State agency or private organization that has been approved by
the Secretary to evaluate and either approve or disapprove
manufactured home designs and quality control procedures;
``(19) `production inspection primary inspection agency'
means a State agency or private organization that has been
approved by the Secretary to evaluate the ability of
manufactured home manufacturing plants to comply with approved
quality control procedures and with the Federal manufactured
home construction and safety standards promulgated hereunder;
``(20) `installation standards' means reasonable
specifications for the installation of a manufactured home, at
the place of occupancy, to ensure proper siting, the joining of
all sections of the home, and the installation of
stabilization, support, or anchoring systems; and
``(21) `monitoring'--
``(A) means the process of periodic review of the
primary inspection agencies, by the Secretary or by a
State agency under an approved State plan pursuant to
section 623, in accordance with regulations recommended
by the consensus committee and promulgated in
accordance with section 604(b), which process shall be
for the purpose of ensuring that the primary inspection
agencies are discharging their duties under this title;
and
``(B) may include the periodic inspection of retail
locations for transit damage, label tampering, and
retailer compliance with this title.''.
(b) Conforming Amendments.--The Act is amended--
(1) in section 613 (42 U.S.C. 5412), by striking ``dealer''
each place it appears and inserting ``retailer'';
(2) in section 614(f) (42 U.S.C. 5413(f)), by striking
``dealer'' each place it appears and inserting ``retailer'';
(3) in section 615 (42 U.S.C. 5414)--
(A) in subsection (b)(1), by striking ``dealer'' and
inserting ``retailer'';
(B) in subsection (b)(3), by striking ``dealer or
dealers'' and inserting ``retailer or retailers''; and
(C) in subsections (d) and (f), by striking
``dealers'' each place it appears and inserting
``retailers'';
(4) in section 616 (42 U.S.C. 5415), by striking ``dealer''
and inserting ``retailer''; and
(5) in section 623(c)(9), by striking ``dealers'' and
inserting ``retailers''.
SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5403) is amended--
(1) by striking subsections (a) and (b) and inserting the
following new subsections:
``(a) Establishment.--
``(1) Authority.--The Secretary shall establish, by order,
appropriate Federal manufactured home construction and safety
standards, each of which--
``(A) shall--
``(i) be reasonable and practical;
``(ii) meet high standards of protection
consistent with the enumerated purposes of this
title; and
``(iii) where appropriate, be performance-
based and objectively stated; and
``(B) except as provided in subsection (b), shall be
established in accordance with the consensus standards
development process.
``(2) Consensus standards and regulatory development
process.--
``(A) Initial agreement.--Not later than 180 days
after the date of enactment of the Manufactured Housing
Improvement Act, the Secretary shall enter into a
contract with an administering organization. The
contractual agreement shall--
``(i) terminate on the date on which a
contract is entered into under subparagraph
(B); and
``(ii) require the administering organization
to--
``(I) appoint the initial members of
the consensus committee under paragraph
(3);
``(II) administer the consensus
standards development process until the
termination of that agreement; and
``(III) administer the consensus
development and interpretation process
for procedural and enforcement
regulations and regulations specifying
the permissible scope and conduct of
monitoring until the termination of
that agreement.
``(B) Competitively procured contract.--Upon the
expiration of the 4-year period beginning on the date
on which all members of the consensus committee are
appointed under paragraph (3), the Secretary shall,
using competitive procedures (as such term is defined
in section 4 of the Office of Federal Procurement
Policy Act), enter into a competitively awarded
contract with an administering organization. The
administering organization shall administer the
consensus process for the development and
interpretation of the Federal standards, the procedural
and enforcement regulations and regulations specifying
the permissible scope and conduct of monitoring in
accordance with this title.
``(C) Performance review.--The Secretary--
``(i) shall periodically review the
performance of the administering organization;
and
``(ii) may replace the administering
organization with another qualified technical
or building code organization, pursuant to
competitive procedures, if the Secretary
determines in writing that the administering
organization is not fulfilling the terms of the
agreement or contract to which the
administering organization is subject or upon
the expiration of the agreement or contract.
``(3) Consensus committee.--
``(A) Purpose.--There is established a committee to
be known as the `consensus committee', which shall, in
accordance with this title--
``(i) provide periodic recommendations to the
Secretary to adopt, revise, and interpret the
Federal manufactured housing construction and
safety standards in accordance with this
subsection;
``(ii) provide periodic recommendations to
the Secretary to adopt, revise, and interpret
the procedural and enforcement regulations,
including regulations specifying the
permissible scope and conduct of monitoring in
accordance with this subsection; and
``(iii) be organized and carry out its
business in a manner that guarantees a fair
opportunity for the expression and
consideration of various positions and for
public participation.
``(B) Membership.--The consensus committee shall be
composed of--
``(i) 21 voting members appointed, subject to
approval by the Secretary, by the administering
organization from among individuals who are
qualified by background and experience to
participate in the work of the consensus
committee; and
``(ii) 1 member appointed by the Secretary to
represent the Secretary on the consensus
committee, who shall be a nonvoting member.
``(C) Disapproval.--The Secretary may disapprove, in
writing with the reasons set forth, the appointment of
an individual under subparagraph (B)(i).
``(D) Selection procedures and requirements.--Each
member shall be appointed in accordance with the
selection procedures, which shall be established by the
Secretary and which shall be based on the procedures
for consensus committees promulgated by the American
National Standards Institute (or successor
organization), to ensure equal representation on the
consensus committee of the following interest
categories:
``(i) Producers.--7 producers or retailers of
manufactured housing.
``(ii) Users.--7 persons representing
consumer interests, such as consumer
organizations, recognized consumer leaders, and
owners who are residents of manufactured homes.
``(iii) General interest and public
officials.--7 general interest and public
official members.
``(E) Balancing of interests.--
``(i) In general.--In order to achieve a
proper balance of interests on the consensus
committee--
``(I) the administering organization
in its appointments shall ensure that
all directly and materially affected
interests have the opportunity for fair
and equitable participation without
dominance by any single interest; and
``(II) the Secretary may reject the
appointment of any 1 or more
individuals in order to ensure that
there is not dominance by any single
interest.
``(ii) Dominance defined.--In this
subparagraph, the term `dominance' means a
position or exercise of dominant authority,
leadership, or influence by reason of superior
leverage, strength, or representation.
``(F) Additional qualifications.--
``(i) Financial independence.--No individual
appointed under subparagraph (D)(ii) shall
have, and 3 of individuals appointed under
subparagraph (D)(iii) shall not have--
``(I) a significant financial
interest in any segment of the
manufactured housing industry; or
``(II) a significant relationship to
any person engaged in the manufactured
housing industry.
``(ii) Post-employment ban.--An individual
appointed under clause (ii) or (iii) of
subparagraph (D) shall be subject to a ban
disallowing compensation from the manufactured
housing industry during the period of, and for
the 1-year period after, membership of that
individual on the consensus committee.
``(G) Meetings.--
``(i) Notice; open to public.--The consensus
committee shall provide advance notice of each
meeting of the consensus committee to the
Secretary and publish advance notice of each
such meeting in the Federal Register. All
meetings of the consensus committee shall be
open to the public.
``(ii) Reimbursement.--Members of the
consensus committee in attendance at the
meetings shall be reimbursed for their actual
expenses as authorized by section 5703 of title
5, United States Code, for persons employed
intermittently in Government service.
``(H) Inapplicability of other laws.--
``(i) Advisory committee act.--The consensus
committee shall not be considered to be an
advisory committee for purposes of the Federal
Advisory Committee Act.
``(ii) Title 18.--The members of the
consensus committee shall not be subject to
section 203, 205, 207, or 208 of title 18,
United States Code, to the extent of their
proper participation as members of the
consensus committee.
``(iii) Ethics in government act of 1978.--
The Ethics in Government Act of 1978 shall not
apply to members of the consensus committee to
the extent of their proper participation as
members of the consensus committee.
``(I) Administration.--The consensus committee and
the administering organization shall--
``(i) operate in conformance with the
procedures established by the American National
Standards Institute for the development and
coordination of American National Standards;
and
``(ii) apply to the American National
Standards Institute and take such other actions
as may be necessary to obtain accreditation
from the American National Standards Institute.
``(J) Staff.--The administering organization shall,
upon the request of the consensus committee, provide
reasonable staff resources to the consensus committee.
Upon a showing of need, the Secretary shall furnish
technical support to any of the various interest
categories on the consensus committee.
``(K) Date of initial appointments.--The initial
appointments of all of the members of the consensus
committee shall be completed not later than 90 days
after the date on which an administration agreement
under paragraph (2)(A) is completed with the
administering organization.
``(4) Revisions of standards.--
``(A) In general.--Beginning on the date on which all
members of the consensus committee are appointed under
paragraph (3), the consensus committee shall, not less
than once during each 2-year period--
``(i) consider revisions to the Federal
manufactured home construction and safety
standards; and
``(ii) submit proposed revised standards and
regulations, if approved in a vote of the
consensus committee by two-thirds of the
members, to the Secretary in the form of a
proposed rule, including an economic analysis.
``(B) Publication of proposed revised standards.--
``(i) Publication by secretary.--The
consensus committee shall provide a proposed
revised standard under subparagraph (A)(ii) to
the Secretary who shall, not later than 30 days
after receipt, publish such proposed revised
standard in the Federal Register for notice and
comment. Unless clause (ii) applies, the
Secretary shall provide an opportunity for
public comment on such proposed revised
standard and any such comments shall be
submitted directly to the consensus committee
without delay.
``(ii) Publication of rejected proposed
revised standard.--If the Secretary rejects the
proposed revised standard, the Secretary shall
publish the rejected proposed revised standard
in the Federal Register with the reasons for
rejection and any recommended modifications set
forth.
``(C) Presentation of public comments; publication of
recommended revisions.--
``(i) Presentation.--Any public comments,
views, and objections to a proposed revised
standard published under subparagraph (B) shall
be presented by the Secretary to the consensus
committee upon their receipt and in the manner
received, in accordance with procedures
established by the American National Standards
Institute.
``(ii) Publication by the secretary.--The
consensus committee shall provide to the
Secretary any revisions proposed by the
consensus committee, which the Secretary shall,
not later than 7 calendar days after receipt,
cause to be published in the Federal Register
as a notice of the recommended revisions of the
consensus committee to the standard, a notice
of the submission of the recommended revisions
to the Secretary, and a description of the
circumstances under which the proposed revised
standards could become effective.
``(iii) Publication of rejected proposed
revised standard.--If the Secretary rejects the
proposed revised standard, the Secretary shall
publish the rejected proposed revised standard
in the Federal Register with the reasons for
rejection and any recommended modifications set
forth.
``(5) Review by the secretary.--
``(A) In general.--The Secretary shall either adopt,
modify, or reject a standard, as submitted by the
consensus committee under paragraph (4)(A).
``(B) Timing.--Not later than 12 months after the
date on which a standard is submitted to the Secretary
by the consensus committee, the Secretary shall take
action regarding such standard under subparagraph (C).
``(C) Procedures.--If the Secretary--
``(i) adopts a standard recommended by the
consensus committee, the Secretary shall--
``(I) issue a final order without
further rulemaking; and
``(II) cause the final order to be
published in the Federal Register;
``(ii) determines that any standard should be
rejected, the Secretary shall--
``(I) reject the standard; and
``(II) cause to be published in the
Federal Register a notice to that
effect, together with the reason or
reasons for rejecting the proposed
standard; or
``(iii) determines that a standard
recommended by the consensus committee should
be modified, the Secretary shall--
``(I) cause the proposed modified
standard to be published in the Federal
Register, together with an explanation
of the reason or reasons for the
determination of the Secretary; and
``(II) provide an opportunity for
public comment in accordance with
section 553 of title 5, United States
Code.
``(D) Final order.--Any final standard under this
paragraph shall become effective pursuant to subsection
(c).
``(6) Failure to act.--If the Secretary fails to take final
action under paragraph (5) and to publish notice of the action
in the Federal Register before the expiration of the 12-month
period beginning on the date on which the proposed standard is
submitted to the Secretary under paragraph (4)(A)--
``(A) the recommendations of the consensus
committee--
``(i) shall be considered to have been
adopted by the Secretary; and
``(ii) shall take effect upon the expiration
of the 180-day period that begins upon the
conclusion of such 12-month period; and
``(B) not later than 10 days after the expiration of
such 12-month period, the Secretary shall cause to be
published in the Federal Register a notice of the
failure of the Secretary to act, the revised standard,
and the effective date of the revised standard, which
notice shall be deemed to be an order of the Secretary
approving the revised standards proposed by the
consensus committee.
``(b) Other Orders.--
``(1) Regulations.--The Secretary may issue procedural and
enforcement regulations as necessary to implement the
provisions of this title. The consensus committee may submit to
the Secretary proposed procedural and enforcement regulations
and recommendations for the revision of such regulations.
``(2) Interpretative bulletins.--The Secretary may issue
interpretative bulletins to clarify the meaning of any Federal
manufactured home construction and safety standard or
procedural and enforcement regulation. The consensus committee
may submit to the Secretary proposed interpretative bulletins
to clarify the meaning of any Federal manufactured home
construction and safety standard or procedural and enforcement
regulation.
``(3) Review by consensus committee.--Before issuing a
procedural or enforcement regulation or an interpretative
bulletin--
``(A) the Secretary shall--
``(i) submit the proposed procedural or
enforcement regulation or interpretative
bulletin to the consensus committee; and
``(ii) provide the consensus committee with a
period of 120 days to submit written comments
to the Secretary on the proposed procedural or
enforcement regulation or the interpretative
bulletin; and
``(B) if the Secretary rejects any significant
comment provided by the consensus committee under
subparagraph (A), the Secretary shall provide a written
explanation of the reasons for the rejection to the
consensus committee; and
``(C) following compliance with subparagraphs (A) and
(B), the Secretary shall--
``(i) cause the proposed regulation or
interpretative bulletin and the consensus
committee's written comments along with the
Secretary's response thereto to be published in
the Federal Register; and
``(ii) provide an opportunity for public
comment in accordance with section 553 of title
5, United States Code.
``(4) Required action.--The Secretary shall act on any
proposed regulation or interpretative bulletin submitted by the
consensus committee by approving or rejecting the proposal
within 120 days from the date the proposal is received by the
Secretary. The Secretary shall either--
``(A) approve the proposal and cause the proposed
regulation or interpretative bulletin to be published
for public comment in accordance with section 553 of
title 5, United States Code; or
``(B) reject the proposed regulation or
interpretative bulletin and--
``(i) provide a written explanation of the
reasons for rejection to the consensus
committee; and
``(ii) cause the proposed regulation and the
written explanation for the rejection to be
published in the Federal Register.
``(5) Emergency orders.--If the Secretary determines, in
writing, that such action is necessary in order to respond to
an emergency which jeopardizes the public health or safety, or
to address an issue on which the Secretary determines that the
consensus committee has not made a timely recommendation,
following a request by the Secretary, the Secretary may issue
an order that is not developed under the procedures set forth
in subsection (a) or in this subsection, if the Secretary--
``(A) provides to the consensus committee a written
description and sets forth the reasons why emergency
action is necessary and all supporting documentation;
and
``(B) issues and publishes the order in the Federal
Register.
``(6) Changes.--Any statement of policies, practices, or
procedures relating to construction and safety standards,
inspections, monitoring, or other enforcement activities which
constitutes a statement of general or particular applicability
and future offset and decisions to implement, interpret, or
prescribe law of policy by the Secretary is subject to the
provisions of subsection (a) or (b) of this subsection. Any
change adopted in violation of the provisions of subsection (a)
or (b) of this subsection is void.
``(7) Transition.--Until the date that the consensus
committee is appointed pursuant to section 1104(a)(3), the
Secretary may issue proposed orders that are not developed
under the procedures set forth in this section for new and
revised standards.'';
(2) in subsection (d), by adding at the end the following:
``Federal preemption under this subsection shall be broadly and
liberally construed to ensure that disparate State or local
requirements or standards do not affect the uniformity and
comprehensiveness of the standards promulgated hereunder nor
the Federal superintendence of the manufactured housing
industry as established by this title. Subject to section 605,
there is reserved to each State the right to establish
standards for the stabilizing and support systems of
manufactured homes sited within that State, and for the
foundations on which manufactured homes sited within that State
are installed, and the right to enforce compliance with such
standards, except that such standards shall be consistent with
the purposes of this title and shall be consistent with the
design of the manufacturer.'';
(3) by striking subsection (e);
(4) in subsection (f), by striking the subsection designation
and all of the matter that precedes paragraph (1) and inserting
the following:
``(e) Considerations in Establishing and Interpreting Standards and
Regulations.--The consensus committee, in recommending standards,
regulations, and interpretations, and the Secretary, in establishing
standards or regulations, or issuing interpretations under this
section, shall--'';
(5) by striking subsection (g);
(6) in the first sentence of subsection (j), by striking
``subsection (f)'' and inserting ``subsection (e)''; and
(7) by redesignating subsections (h), (i), and (j), as
subsections (f), (g), and (h), respectively.
SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL;
MANUFACTURED HOME INSTALLATION.
(a) In General.--Section 605 (42 U.S.C. 5404) is amended to read as
follows:
``SEC. 605. MANUFACTURED HOME INSTALLATION.
``(a) Provision of Installation Design and Instructions.--A
manufacturer shall provide with each manufactured home, design and
instructions for the installation of the manufactured home that have
been approved by a design approval primary inspection agency. After
establishment of model standards under subsection (b)(2), a design
approval primary inspection agency may not give such approval unless a
design and instruction provides equal or greater protection than the
protection provided under such model standards.
``(b) Model Manufactured Home Installation Standards.--
``(1) Proposed model standards.--Not later than 18 months
after the date on which the initial appointments of all of the
members of the consensus committee are completed, the consensus
committee shall develop and submit to the Secretary proposed
model manufactured home installation standards, which shall, to
the maximum extent possible, taking into account the factors
described in section 604(e), be consistent with--
``(A) the home designs that have been approved by a
design approval primary inspection agency; and
``(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
``(2) Establishment of model standards.--Not later than 12
months after receiving the proposed model standards submitted
under paragraph (1), the Secretary shall develop and establish
model manufactured home installation standards, which shall be
consistent with--
``(A) the home designs that have been approved by a
design approval primary inspection agency; and
``(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
``(3) Factors for consideration.--
``(A) Consensus committee.--In developing the
proposed model standards under paragraph (1), the
consensus committee shall consider the factors
described in section 604(e).
``(B) Secretary.--In developing and establishing the
model standards under paragraph (2), the Secretary
shall consider the factors described in section 604(e).
``(c) Manufactured Home Installation Programs.--
``(1) Protection of manufactured housing residents during
initial period.--During the 5-year period beginning on the date
of enactment of the Manufactured Housing Improvement Act, no
State or manufacturer may establish or implement any
installation standards that, in the determination of the
Secretary, provide less protection to the residents of
manufactured homes than the protection provided by the
installation standards in effect with respect to the State or
manufacturer, as applicable, on the date of enactment of the
Manufactured Housing Improvement Act.
``(2) Installation standards.--
``(A) Establishment of installation program.--Not
later than the expiration of the 5-year period
described in paragraph (1), the Secretary shall
establish an installation program that meets the
requirements of paragraph (3) for the enforcement of
installation standards in each State described in
subparagraph (B).
``(B) Implementation of installation program.--
Beginning on the expiration of the 5-year period
described in paragraph (1), the Secretary shall
implement the installation program established under
subparagraph (A) in each State that does not have an
installation program established by State law that
meets the requirements of paragraph (3).
``(C) Contracting out of implementation.--In carrying
out subparagraph (B), the Secretary may contract with
an appropriate agent to implement the installation
program established under that subparagraph, except
that such agent shall not be a person or entity other
than a government, nor an affiliate or subsidiary of
such a person or entity, that has enteredinto a
contract with the Secretary to implement any other regulatory program
under this title.
``(3) Requirements.--An installation program meets the
requirements of this paragraph if it is a program regulating
the installation of manufactured homes that includes--
``(A) installation standards that, in the
determination of the Secretary, provide protection to
the residents of manufactured homes that equals or
exceeds the protection provided to those residents by--
``(i) the model manufactured home
installation standards established under
subsection (b); or
``(ii) the designs and instructions provided
by manufacturers under subsection (a), if the
Secretary determines that such designs and
instructions provide protection to the
residents of the manufactured home that equals
or exceeds the protection provided by the model
manufactured home installation standards
established under subsection (b);
``(B) the training and licensing of manufactured home
installers; and
``(C) inspection of the installation of manufactured
homes.''.
(b) Conforming Amendments.--Section 623(c) (42 U.S.C. 5422(c)) is
amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) by redesignating paragraph (11) as paragraph (13); and
(3) by inserting after paragraph (10) the following:
``(11) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
enactment of the Manufactured Housing Improvement Act, provides
for an installation program established by State law that meets
the requirements of section 605(c)(3);''.
SEC. 1106. PUBLIC INFORMATION.
Section 607 (42 U.S.C. 5406) is amended--
(1) in subsection (a)--
(A) by inserting ``to the Secretary'' after
``submit''; and
(B) by adding at the end the following: ``The
Secretary shall submit such cost and other information
to the consensus committee for evaluation.'';
(2) in subsection (d), by inserting ``, the consensus
committee,'' after ``public''; and
(3) by striking subsection (c) and redesignating subsections
(d) and (e) as subsections (c) and (d), respectively.
SEC. 1107. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.
(a) In General.--Section 608(a) (42 U.S.C. 5407(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(4) encouraging the government sponsored housing entities
to actively develop and implement secondary market
securitization programs for FHA manufactured home loans and
those of other loan programs, as appropriate, thereby promoting
the availability of affordable manufactured homes to increase
homeownership for all people in the United States; and
``(5) reviewing the programs for FHA manufactured home loans
and developing any changes to such programs to promote the
affordability of manufactured homes, including changes in loan
terms, amortization periods, regulations, and procedures.''.
(b) Definitions.--Section 608 (42 U.S.C. 5407) is amended by adding
at the end the following new subsection:
``(c) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Government sponsored housing entities.--The term
`government sponsored housing entities' means the Government
National Mortgage Association of the Department of Housing and
Urban Development, the Federal National Mortgage Association,
and the Federal Home Loan Mortgage Corporation.
``(2) FHA manufactured home loans.--The term `FHA
manufactured home loan' means a loan that--
``(A) is insured under title I of the National
Housing Act and is made for the purpose of financing
alterations, repairs, or improvements on or in
connection with an existing manufactured home, the
purchase of a manufactured home, the purchase of a
manufactured home and a lot on which to place the home,
or the purchase only of a lot on which to place a
manufactured home; or
``(B) otherwise insured under the National Housing
Act and made for or in connection with a manufactured
home.''.
SEC. 1108. FEES.
Section 620 (42 U.S.C. 5419) is amended to read as follows:
``authority to establish fees
``Sec. 620. (a) In General.--In carrying out inspections under this
title, in developing standards and regulations pursuant to section 604,
and in facilitating the acceptance of the affordability and
availability of manufactured housing within the Department, the
Secretary may--
``(1) establish and collect from manufactured home
manufacturers such reasonable fees as may be necessary to
offset the expenses incurred by the Secretary in connection
with carrying out the responsibilities of the Secretary under
this title, including--
``(A) conducting inspections and monitoring;
``(B) providing funding to States for the
administration and implementation of approved State
plans under section 623, including reasonable funding
for cooperative educational and training programs
designed to facilitate uniform enforcement under this
title; these funds may be paid directly to the States
or may be paid or provided to any person or entity
designated to receive and disburse such funds by
cooperative agreements among participating States,
provided that such person or entity is not otherwise an
agent of the Secretary under this title;
``(C) providing the funding for a noncareer
administrator and Federal staff personnel for the
manufactured housing program;
``(D) administering the consensus committee as set
forth in section 604; and
``(E) facilitating the acceptance of the quality,
durability, safety, and affordability of manufactured
housing within the Department; and
``(2) use any fees collected under paragraph (1) to pay
expenses referred to in paragraph (1), which shall be exempt
and separate from any limitations on the Department of Housing
and Urban Development regarding full-time equivalent positions
and travel.
``(b) Contractors.--When using fees under this section, the Secretary
shall ensure that separate and independent contractors are retained to
carry out monitoring and inspection work and any other work that may be
delegated to a contractor under this title.
``(c) Prohibited Use.--Fees collected under subsection (a) shall not
be used for any purpose or activity not specifically authorized by this
title unless such activity was already engaged in by the Secretary
prior to the date of enactment of this title.
``(d) Modification.--Any fee established by the Secretary under this
section shall only be modified pursuant to rulemaking in accordance
with section 553 of title 5, United States Code.
``(e) Appropriation and Deposit of Fees.--
``(1) In general.--There is established in the Treasury of
the United States a fund to be known as the `Manufactured
Housing Fees Trust Fund' for deposit of all fees collected
pursuant to subsection (a). These fees shall be held in trust
for use only as provided in this title.
``(2) Appropriation.--Such fees shall be available for
expenditure only to the extent approved in an annual
appropriation Act.''.
SEC. 1109. DISPUTE RESOLUTION.
Section 623(c) (42 U.S.C. 5422(c)), as amended by section 5(b) of
this Act, is amended by inserting after paragraph (11) (as added by
section 5(b) of this Act) the following:
``(12) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
enactment of the Manufactured Housing Improvement Act, provides
for a dispute resolution program for the timely resolution of
disputes between manufacturers, retailers, and installers of
manufactured homes regarding responsibility, and for the
issuance of appropriate orders, for the correction or repair of
defects in manufactured homes that are reported during the 1-
year period beginning on the date of installation; and''; and
(2) by adding at the end the following:
``(g) Enforcement of Dispute Resolution Standards.--
``(1) Establishment of dispute resolution program.--Not later
than the expiration of the 5-year period beginning on the date
of enactment of the Manufactured Housing Improvement Act, the
Secretary shall establish a dispute resolution program that
meets the requirements of subsection (c)(12) for dispute
resolution in each State described in paragraph (2).
``(2) Implementation of dispute resolution program.--
Beginning on the expiration of the 5-year period described in
paragraph (1), the Secretary shall implement the dispute
resolution program established under paragraph (1) in each
State that has not established a dispute resolution program
that meets the requirements of subsection (c)(12).
``(3) Contracting out of implementation.--In carrying out
paragraph (2), the Secretary may contract with an appropriate
agent to implement the dispute resolution program established
under that paragraph, except that such agent shall not be a
person or entity other than a government, nor an affiliate or
subsidiary of such a person or entity, that has entered into a
contract with the Secretary to implement any other regulatory
program under this title.''.
SEC. 1110. ELIMINATION OF ANNUAL REPORT REQUIREMENT.
The Act is amended--
(1) by striking section 626 (42 U.S.C. 5425); and
(2) by redesignating sections 627 and 628 (42 U.S.C. 5426,
5401 note) as sections 626 and 627, respectively.
SEC. 1111. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date of
enactment of this Act, except that the amendments shall have no effect
on any order or interpretative bulletin that is published as a proposed
rule pursuant to section 553 of title 5, United States Code, on or
before such date.
SEC. 1112. SAVINGS PROVISION.
(a) Standards and Regulations.--The Federal manufactured home
construction and safety standards (as such term is defined in section
603 of the National Manufactured Housing Construction and Safety
Standards Act of 1974) and all regulations pertaining thereto in effect
immediately before the date of the enactment of this Act shall apply
until the effective date of a standard or regulation modifying or
superseding the existing standard or regulation which is promulgated
under subsection (a) or (b) of section 604 of the National Manufactured
Housing Construction and Safety Standards Act of 1974, as amended by
this title.
(b) Contracts.--Any contract awarded pursuant to a Request for
Proposal issued before the date of enactment of this Act shall remain
in effect for a period of 2 years from the date of enactment of this
Act or for the remainder of the contract term, whichever period is
shorter.
Explanation of the Legislation
H.R. 1776, the ``American Homeownership and Economic
Opportunity Act of 2000'' is comprehensive legislation designed
to broaden the pathways to homeownership for our Nation's
citizens, and to help foster the development of healthy,
economically vibrant neighborhoods.
The ``American Homeownership and Economic Opportunity Act
of 2000'' encourages the removal of unnecessary regulatory
barriers that hinder the production of affordable housing and
drive up the costs of homeownership. Under the proposal, a
housing impact analysis will be required before the Federal
government issues burdensome regulations to determine if a
significant negative impact on affordable housing will result.
Furthermore, incentives are provided for local governments to
better plan and reduce barriers to affordability.
H.R. 1776 will provide localities with added flexibility
within existing Federal housing and community development block
grant programs to leverage public funds with private sources of
capital. The legislation creates a loan guarantee program
enabling local communities to tap into future Federal block
grant funds for the development of quality, long-term
affordable housing. Greater flexibility in the creation of
certain ``loan pools'' consisting of private and pubic funds,
designed to help further homeownership efforts by local
officials, is also provided. Giving communities the flexibility
to create homeownership programs tailored to their needs will
enable local governments to increase the impact of their
funding, thereby helping more of their citizens achieve
homeownership.
Communities are also provided with tools needed to foster
healthy neighborhoods thorough increased homeownership
opportunities for teachers, police officers, fire fighters and
other municipal employees--the working middle class families
that form the backbone of communities and are an integral
component of the social capital of neighborhoods. In addition,
the legislation establishes a process to transfer substandard,
vacant, HUD (Department of Housing and Urban Development)-
foreclosed properties, many of which are located in distressed
communities or which contribute to the decline of
neighborhoods, to local governments and community development
corporations for use in homeownership programs and neighborhood
revitalization efforts.
The legislation enables families that receive rental
assistance through HUD's Section 8 program to become
homeowners. Public housing authorities (PHAs) are granted
flexibility in promoting homeownership for such families by
authorizing the creation of programs where assistance is used
toward the purchase of a home, rather than subsidizing rent for
a unit. A pilot program to help Section 8 recipients with
disabilities also is established. Provisions are included to
facilitate homeownership for Native Americans on tribal lands
by addressing problems arising with the conduct of title
searches by the Bureau of Indian Affairs (BIA) in connection
with real property transactions. The legislation permanently
authorizes the Section 184 Loan Guarantee Program, and amends
the ``Native American Housing and Self-Determination Act of
1996'' to improve the functioning of the program. Provisions
facilitating homeownership in rural areas are also included,
specifically related to enforcement provisions, adjusting
statutory loan requirements under the Rural Housing Service's
(RHS) Housing Repair Loan Program from the 1970's, extension of
the definition of rural areas through 2010, and flexible use of
operating assistance for migrant farm-worker projects. The
enforcement provisions will enable the RHS to adequately
protect its multi-family housing portfolio from fraud and abuse
by negligent or criminal borrowers. These provisions were
developed jointly by the Administration and the U.S. Department
of Agriculture Office of Inspector General.
Finally, H.R. 1776 modernizes the manufactured housing
industry by giving HUD the tools needed to enhance its
monitoring of the industry and protection of consumers. The
current framework for regulating the manufactured housing
industry is severely outdated and ill-suited to address the
needs of consumers. The provisions included in H.R. 1776
represent a carefully crafted compromise between HUD, the
industry, and consumers to ensure that manufactured housing
improves as a viable affordable housing resource.
Legislative History
On May 12, 1999, based on legislation which passed the
House by voice vote in the 105th Congress, Representative Lazio
(R-NY) joined with Representative Leach (R-IA) to introduce
H.R. 1776, the ``American Homeownership and Economic
Opportunity Act of 1999.'' Representative Lazio (R-NY) also
joined again with Representative Hooley (D-OR), and others to
introduce H.R. 710, the ``Manufactured Housing Improvement Act
of 1999.''
The Subcommittee on Housing and Community Opportunity held
one hearing on H.R. 1776 (including H.R. 710) on September 15,
1999. On February 15, 2000, H.R. 1776, with the inclusion of
H.R. 710, was marked up in Subcommittee and passed by voice
vote. H.R. 1776 was marked up by the Committee on Banking and
Financial Services and favorably reported to the House by a
voice vote on March 14, 2000.
Background and Need For Legislation
The national homeownership rate (the percentage of
households who own their own home) is at an all-time peak of
almost 67%. Nearly 70 million households own their own homes in
America, one-third more than the 53 million who owned homes in
1980. Low interest rates and a growing economy have been the
major factors in the increase in the homeownership rate.
However, the overall homeownership rate tends to mask the
increasing hardship faced by some groups in their quest to buy
their first home. An article in the New York Times of May 27,
1999 noted, ``America's poorest families have been largely left
out of the housing surge. Households with annual incomes
under$25,000--about one third of the total, generally cannot afford
monthly mortgage payments on most homes * * *.''
Some of the gain in the homeownership rate is due to
demographic forces. The aging ``baby boomers'' have pushed the
average homeownership rate to new highs, while rates for
individual groups are below former peaks. Statistics show that
the only age groups to establish new records for homeownership
are households headed by individuals aged 60 and above. Younger
households, especially young married couples, remain up to 9
percentage points below their peak rates of homeownership.
Simply stated, fewer young Americans are able to afford their
own homes than in past years. In 1972, the median new home
price was $27,600. Mortgage interest rates were comparable to
today's rates, and with a 10% downpayment nearly two-thirds of
young households could purchase a home. In 1999, median new
home prices were $157,000. With a 10% downpayment, less than
40% of young households could purchase a new home.
For millions of families, including younger households and
low-income renters, the American dream of homeownership remains
frustratingly out of reach. H.R. 1776 is designed to help put
homeownership within reach of these households, recognizing the
vital role housing plays in binding our society together. The
direct link between housing and the positive economic, social
and political outcomes that lead to more stable neighborhoods
and communities makes increasing homeownership and affordable
housing opportunities of primary importance for all Americans.
Reducing the barriers to affordability
Regulation is needed to safeguard the health and safety of
the public and to protect the environment, but over-regulation
can impose costs on society as well. Federal policy should
focus on reducing regulations that are unnecessary or
excessive. Because there is no coordinated Federal approach or
mechanism to ensure analysis of regulations that could affect
the affordability of housing, less costly alternatives are
oftentimes overlooked or not seriously considered. The
cumulative effect of excessive regulation of the residential
development process and of homebuilding inevitably leads to a
decline in housing affordability for many would-be homebuyers.
In 1994, the National Association of Home Builders (NAHB)
found that development costs and fees added an average of
$21,000 to the cost of a $200,000 home in highly regulated
markets. In moderately regulated markets, the average increase
in costs due to regulations were $10,000 per home. For every
$1,000 increase in the price of a typical new home, one-half
million households fail to qualify for a mortgage. These
increased costs push many potential homebuyers out of the
market. Families are sometimes forced to move farther from
their jobs in order to buy a home, which imposes some long-term
costs on society in terms of longer commutes, increased
transportation needs, and urban sprawl.
H.R. 1776 contains important provisions designed to reduce
the regulatory barriers imposed by Federal regulations and to
provide incentives to localities to develop barrier removal
strategies. The legislation incorporates provisions from
legislation introduced in the 105th Congress by Congressman Tom
Campbell. The provisions require that all proposed Federal
regulations include a housing impact analysis, so that a
Federal agency can certify that a proposed regulation would
have no significant deleterious impact upon the availability of
affordable housing. If a proposed rule would have a negative
impact, then an opportunity is given to groups to offer an
alternative that achieves the stated objectives with less of an
adverse impact upon affordable housing. The legislation directs
HUD to create model impact analyses that other agencies can use
for these purposes. Agencies responsible for regulating safety
and soundness of financial institutions or government sponsored
enterprises (GSEs) are exempt.
The legislation authorizes $15 million for FY 2001 through
FY 2005 for grants to States, local governments, and eligible
consortia for regulatory barrier removal strategies. This is a
reauthorization of the same amount under an already existing
Community Development Block Grant (CDBG) set-aside (Section
107(a)(1)(H)). Grants provided for these purposes must be used
in coordination with the local comprehensive housing
affordability strategy (CHAS). The bill also creates within
HUD's Office of Policy Development and Research a ``Regulatory
Barriers Clearinghouse'' to collect and disseminate information
on, among other things, the prevalence of regulatory barriers
and their effects on availability of affordable housing, and
successful barrier removal strategies.
Increasing homeownership opportunities
H.R. 1776 contains several provisions designed to increase
the ability of local communities to leverage public funds with
private sector funds, thereby increasing homeownership
opportunities for all citizens. Section 503 of H.R. 1776 allows
HOME (Home Investment Partnership Act) funds to be used as
leverage in connection with the creation of larger ``loan
pools'' (ten times the amount of the HOME funds invested in
such a pool) without imposing the HOME income restrictions on
the entire pool. In essence, this allows for the creation of
``mixed-income'' loan pools that would benefit many more
households than would have been possible under the existing
HOME guidelines. In addition, the legislation establishes a
HOME Loan Guarantee program, similar to the existing CDBG Loan
Guarantee program. The HUD Secretary is authorized to guarantee
the obligations of participating jurisdictions made in
connection with affordable housing efforts by pledging as
security that jurisdiction's future HOME allocations, in an
amount not to exceed five times the most recent allocation.
H.R. 1776 recognizes the importance of increasing the
flexibility afforded local government officials within Federal
programs so those programs can be tailored to fit local needs.
District of Columbia Mayor Anthony Williams has testified
before Congress as to the City's difficulties arising from
competition with the suburbs for teachers because of salary
differentials. Some municipalities have even considered
imposing residencyrequirements for municipal employees. The
manifest unfairness of such a requirement, particularly in high cost
areas, is indisputable. Such a requirement would make homeownership for
some blue-collar employees next to impossible if they wish to retain
their municipal employment.
In order to provide more local flexibility, H.R. 1776
contains provisions allowing mayors or local governing
officials to use CDBG or HOME funds to assist first-time
homebuying municipal employees to purchase homes within their
jurisdiction. These employees would be uniformed municipal
employees (police, sanitation workers, fire fighters) and
teachers. Assistance can take the form of downpayment
assistance, help with closing costs, housing counseling, or
subsidizing mortgage rates. Eligible employees are those with
incomes at or below 115% of area median income, except in high
cost areas, as determined by the Secretary, where incomes may
be at or below 150% of area median income. Financial assistance
is limited to a single year and entitlement communities are not
permitted to commit on-going financial obligations. Recapture
of homeownership assistance amounts is consistent with the
existing recapture provisions of the HOME program.
The provisions of H.R. 1776 granting a mayor or local chief
executive the power to help municipal workers, fire fighters,
teachers and police officers make their homes within the
jurisdiction is not only good for homeownership, but provides
more options for wise urban planning by local officials.
Instead of moving further away from the cities to find
affordable housing, thereby increasing commuting times, urban
and suburban sprawl, and potentially undermining the social
fabric of central city communities, working-class persons may
be given a chance at homeownership in their city with some
assistance from the municipality. Instead of creating ``smart
growth'' programs at the Federal level to address what are
truly local matters, granting flexibility within existing
Federal programs so that communities can be creative in
developing solutions is truly the way to encourage better
planning.
In keeping with the theme of providing local communities
greater flexibility create innovative solutions to encourage
homeownership and remove barriers to affordable housing, H.R.
1776 includes provisions to assist those currently receiving
rental assistance to move toward homeownership. Flexibility
within the Section 8 program is given to PHAs to create
homeownership programs for families receiving tenant-based
assistance. Such assistance can take the form of lease-purchase
arrangements, cooperatives, partnerships with nonprofit groups
or other methods that a PHA can develop to accomplish its
homeownership goals. PHAs are authorized to provide downpayment
assistance in the form of a single grant, in lieu of monthly
assistance, which shall not exceed the total amount of monthly
assistance received by the tenant for the first year. The
legislation provides that the HUD Secretary may carry out a
demonstration program to provide homeownership opportunities
for low-income families, and requires the Secretary to report
to Congress annually on activities under such a demonstration
program.
The Committee commends the work of the Neighborhood
Reinvestment Corporation in working with local
NeighborWorks' organizations to develop a model for
using a Section 8 voucher toward a mortgage. In partnership
with the local and state PHAs, local NeighborWorks'
organizations are using existing demonstration authority under
Section 8(y) of the United States Housing Act of 1937. The
Committee is mindful of three local programs, the Community
Development Corporation (CDC) of Long Island (New York),
Affordable Housing Resources (Nashville), and the Burlington
Land Trust (Vermont), which have been approved as
demonstrations by HUD.
In recognition of these efforts, Section 303 of the bill
authorizes a $2 million grant program to supplement
demonstration programs approved under the Section 8
homeownership demonstration program. The program would have a
50% match requirement. The Committee believes this modest pilot
program will be an important component in helping the
homeownership demonstration program work in more markets and
for more families because rates and terms will be tailored to
each buyer's needs.
There are a variety of provisions in H.R. 1776 designed to
help specific populations in their efforts to achieve
homeownership, including assistance for disabled families,
changes to Native-American housing programs, and technical
revisions affecting rural housing programs. For disabled
families, H.R. 1776 incorporates legislation introduced by
Congressman Mark Green of Wisconsin, which creates a pilot
program to demonstrate the use of tenant-based Section 8
assistance for the purchase of a home that will be owned by one
or more members of a disabled family. Native American
homeownership efforts are furthered by provisions offered by
Congressman Doug Bereuter to streamline the title status
determination for tribal lands. Currently, receipt of a title
certificate from the Bureau of Indian Affairs (BIA) is a
prerequisite to any sales transaction on Indian lands. The
General Accounting Office has determined that inefficiency in
how the BIA conducts title reviews of Indian lands is hindering
homeownership efforts. The procedure has proven to be extremely
cumbersome, and presents a severe regulatory barrier to
increasing homeownership on Indian lands. H.R. 1776 establishes
an Indian Lands Title Report Commission that will recommend
improvements to BIA title reviews in connection with the sale
of Indian lands. In addition to streamlining the title review
process, H.R. 1776 incorporates provisions of H.R. 67, the
``Indian Housing Loan Guarantee Extension Act of 1999,''
introduced by Congressman Bereuter, which permanently
authorizes the Section 184 Loan Guarantee Program for Indian
housing.
Increasing benefits associated with homeownership
In addition to increasing the opportunities for first-time
homebuyers through reduction in barriers to affordability and
added flexibility within existing Federal programs, H.R. 1776
contains several measures designed to increase the benefits
associated with homeownership for those who have already
purchased a home, intend to rehabilitate their dwelling, or who
wish to access the equity they have in their home.H.R. 1776
directly benefits senior citizen homeowners by allowing for the
refinancing of federally-insured home equity conversion mortgages
(HECMs), sometimes known as ``reverse mortgages.'' Reverse mortgages
allow seniors aged 62 and older to borrow against the equity in their
homes without being required to make monthly interest or principal
payments. Therefore, seniors who are ``house-rich'' but ``cash-poor''
and tap into the equity invested in their own homes for everyday living
expenses such as medication, crucial home repairs, groceries, and other
needs. The FHA-insured mortgages are then repaid upon the death of the
homeowner through the sale of the home. The arrangement allows seniors
to stay in the same house and neighborhoods with family and friends
rather than having to sell and move to a nursing home.
The HECM provisions in HR 1776 reduce the single premium
payment when refinancing to credit the premium paid on the
original loan. The legislation also establishes a limit on
origination fees that may be charged and prohibits any broker
fees that may be charged. Further, the legislation requires HUD
to waive the up-front mortgage insurance premium entirely in
qualifying cases where reverse mortgage proceeds are used for
health care services, including prescription drug costs,
Medigap supplemental insurance, and long-term care insurance
contracts.
H.R. 1776 also improves HUD's 203(k) program, mortgages for
the purchase and the rehabilitation of a home, by establishing
stronger protections against fraud. Provisions are included in
the legislation to prohibit identities of interest between a
lender, consultant, contractor, non-profit agency, real estate
agent, inspector or appraiser involved in a 203(k) loan, except
in cases of affiliated business arrangements provided in the
Real Estate Settlement Procedures Act. The legislation also
establishes stricter, uniform criteria for approving non-
profits participating in the program, and requires that lenders
ensure the work has been completed to the borrower's
satisfaction prior to disbursal of the final loan payment. The
borrower must use a certified or bonded general contractor in
cases where rehabilitation and improvements total $25,000 or
more. The participating consultant must also meet standards
established by the Secretary. In this area, industry standards
or practice and professional codes of ethics have already been
developed in the home inspection industry and are in wide use
today to ensure the quality, integrity and professionalism of
participants, The committee would note that the purpose of this
provision is to encourage expanded use of such programs, not
supplant or replace what has been done before. Adherence to
industry standards of practice and professional codes of ethics
promulgated by national professional home inspection
organization such as the American Society of Home Inspector,
and successful completion of industry standard examinations
such as the National Home Inspector Examination, shall be
deemed by the Secretary to meet the requirements of this
section.
H.R. 1776 also contains provisions to help educate
consumers to look for major structural defects when looking for
a home before becoming homeowner through the FHA program.
Inspections of FHA-financed homes, unlike appraisals, are not
mandatory under current law. Appraisals do not address the
condition of a house in detail, as would a home inspection. FHA
borrowers are often either first-time homebuyers or low-income
borrowers, and can be more susceptible to fraud when purchasing
a home, particularly if they assume that an appraisal includes
a thorough assessment of a property's condition, Last year, FHA
paid claims on more than 71,000 FHA-insured defaulted loans.
Some of these defaults could have been prevented if the buyer
had known the true condition of the house.
H.R. 1776 requires GAO to conduct a study of the inspection
process for FHA properties and compare the potential financial
losses and savings to the Mortgage Insurance Fund (MMIF) if a
mandatory FHA inspection was required. The study would review
the potential impact of a mandatory FHA inspection on the
homebuying process (including, in particular, undeserved areas
where FHA losses are the greatest) and whether there is a
housing quality and/or financial difference in inspected homes
and those without inspections. The study would review the
extent to which the financial, health and safety interests of
consumers would be protected by mandatory FHA inspections, with
special emphasis on vulnerable populations such as older
Americans, parents with young children, under-educated or
economically disadvantaged individuals, and the disabled. The
study would also asses the consumer's knowledge about FHA-
financed independent inspections available under HUD's existing
Homebuyer Protection Plan and whether or not it educates
consumers about the differences between appraisals and
inspections, and whether their choices for an inspection are
affected or pressured by market or economic forces. The
Comptroller shall consult with leading national trade
association and professional societies engaged in real estate
sales and finance, home inspection and consumer protection in
conducting this study.
Creating Healthier Neighborhoods
H.R. 1776 recognizes the link between policies that promote
homeownership and the health of communities by allowing local
governments to create homeownership programs to assist
individuals of specific professions, such as police officers
and teachers, whose presence in communities is especially
beneficial.
H.R. 1776 incorporates legislation introduced by
Congressman Mark Green, to establish a law enforcement officer
homeownership pilot program to help fight crime in distressed
communities. The bill requires the HUD Secretary to develop a
pilot program designed to assist law enforcement officers,
including correctional officers, to purchase homes in locally
designated high crime areas. No downpayment is required, and
the borrower must have served as a police officer for at least
six months. The provision is primarily targeted for high-crime
areas. By introducing police officers into certain
neighborhoods as homeowners, this provision not only helps
public servants achieve homeownership, but also begins the
process of reclaiming distressed neighborhoods from the effects
of crime.
Similary, the bill recognizes the integral part that
teachers can play in the lives of children and the benefits
that their presence can bring to a community. Teachers are
often the most important mentors to many children, providing
them with the values and skillsfor self-fulfillment in adult
life. Many teachers, however, face difficulty in becoming homeowners.
Section 205 of H.R. 1776 establishes the Neighborhood Teacher program,
which is designed to encourage and reward teachers that serve students
in our most needy communities. Under the program, designated HUD-owned
properties in distressed neighborhoods will be available for purchase
at a 50 percent discount. For teachers who use FHA-insured mortgage
financing, the downpayment for the home is $100. If a government entity
or nonprofit organization is the purchaser, the expectation is that the
full discount will be passed on to the teacher. A teacher must occupy
the purchased property as his or her principal residence for at least
three years.
The idea enjoys wide, bipartisan support. The Neighborhood
Teacher program, originally designed by Congressman Leach and
Congressman Lazio in consultation with educators, was included
in H.R. 1776 as introduced on May 12, 1999. Subsequently,
Congressman Joseph Crowley, along with Congresswoman Barbara
Lee and Congressman Gary Ackerman, introduced nearly identical
legislation in July of 1999. HUD implemented the Committee
proposal through regulation in the Fall of 1999. The program is
endorsed by the National Education Association, which noted
that the provision would encourage homeownership among young
teachers who might not otherwise be able to afford their own
homes.
The legislation also includes a provision that builds on
the program designed by Congressman Green, to authorize reduced
FHA downpayment requirements for teachers and public safety
officers. The change, made at the request of a number of
Committee Members, including Congressman Leach and Congressman
LaFalce, mirrors flexibility the legislation provides to local
governments using CDBG and HOME funds for a similar category of
home buyers. The provision would allow teachers, law
enforcement officers, emergency medical technicians and others,
one percent FHA downpayments under certain conditions,
reflecting growing community concerns that rising home prices
weaken the ability to attract quality public servants.
In light of the legislative changes to programs under FHA,
the Committee will continue to review the financial safety and
soundness of FHA's Mutual Mortgage Insurance Fund (Fund). In
particular, the Committee has requested the General Accounting
Office to review the conditions under which the statutorily
required capital reserve Fund level of 2 percent by FY2000
would be adequate. The Committee has also requested the
Congressional Budget Office to conduct an independent actuarial
analysis of the Fund based on concerns that the projections
included in the FY1999 MMI Fund Actuarial Review may be based
on flawed assumptions. Based on the exposure of the Fund, which
currently insures single-family mortgage loans totaling $380
billion, and the accompanying risk and potential cost to
taxpayers, the importance of the financial integrity of the
Fund cannot be overstated. Finally, the Committee would
strongly advise HUD that the Department has no ability to
transfer Fund capital reserves or resources to areas outside of
FHA without Congressional action and enactment of new statutory
language.
Improving federal property disposition
Ineffective federal housing policies regarding the
disposition of federally-held properties can negatively impact
the economic vitality of neighborhoods. HUD's mismanagement of
its property disposition program for FHA foreclosed homes has
made it difficult for many communities to maintain property
values and dedicated homeowners. HUD's foreclosed, vacant and
substandard single-family properties are widely perceived as
contributing to increased crime, urban blight, and the overall
decline of working-class neighborhoods.
In order to address the problem of HUD-foreclosed, vacant
and substandard properties, H.R. 1776 incorporates provisions
of H.R. 815 the ``American Community Renewal Act'', introduced
by Congressman Jim Talent and Congressman J.C. Watts, as Title
VIII of the bill (entitled ``Transfer of HUD-Held Housing of
Local Governments and Community Development Corporations). The
intent of the property disposition provisions of the ``American
Community Renewal Act'' is to get substandard, vacant, HUD-held
properties into the possession of local governments and
community development corporations for homeownership and
community revitalization efforts in distressed communities. In
addition to local governments and nonprofit agencies, the
Committee believes that there is sufficient history and
analysis to demonstrate that private development and management
also represent an effective and qualitative use of these
resources. Particularly in the area of neighborhoods
revitalization, it is the private sector that is leading the
way and providing the vast majority of investment into the
creation of new neighborhoods. Many times, this is in the form
of a partnership with the local government and community
development corporations.
The Committee would encourage the Secretary to fully
consider the need to be inclusive in recommending strategies
and incentives for the preservation of these properties so they
may make positive contributions to the communities in which
they are located when the transfer of these properties is
considered.
Despite protestations from HUD that these measures are no
longer necessary, as recently as February of this year, the HUD
Office of Inspector General (OIG) raised problems with HUD's
property disposition program in testimony before Congress. The
OIG stated that
[b]y the end of January 2000, HUD's REO [Real Estate
Owned] inventory totaled 47,711 properties, 42% of
which had been in the inventory 6 months or more, and
17% of which had been in the inventory 12 months or
more. Ten months earlier, when management and marketing
contractors started work, the inventory had totaled
43,560 properties, 30% of which had been in the
inventory 6 months or more, and 10% of which had been
in the inventory 12 months or more. These statistics
demonstrate the difficulty of disposing of properties
that have been in theinventory for long periods and the
tendency of contractors to focus their efforts on disposing recently
acquired properties.\1\
---------------------------------------------------------------------------
\1\ Testimony of Susan Gaffney, Office of Inspector General,
Department of Housing and Urban Development, before the House Budget
Committee on February 17, 2000.
HUD Secretary William Apgar testified before the
Subcommittee on Housing and Community Opportunity on September
15, 1999 that forcing the Department to transfer its
foreclosed, vacant, and substandard properties would result in
huge costs to the taxpayer, possibly reducing the FHA Single-
Family insurance fund by $3 billion. As a result,
clarifications were made to certain definitions in the
legislation at Subcommittee markup to ensure that no such cost
would be incurred. Shortly thereafter, on March 1, 2000, the
HUD Secretary announced, at a press conference, HUD's ``Good
Neighbor Policy,'' which would allow sale to local governments
of HUD-foreclosed single family properties at a price of $1.00
each. According to HUD, the ``initiative won't cost taxpayers a
penny.'' \2\
---------------------------------------------------------------------------
\2\ HUD Press Release No. 00-42, dated March 1, 2000, entitled
``Cuomo and Kasich Announce new HUD Policy to Sell Homes to Local
Governments for $1.00 Each''.
---------------------------------------------------------------------------
As these actions clearly demonstrate, there is strong
bipartisan agreement about the need for HUD to transfer, where
practicable, its HUD-foreclosed, vacant and substandard
properties into local control. Accordingly, the provisions of
Title VIII were further amended to incorporate into law the
requirement that HUD transfer such properties for $1.00,
pursuant to the requirements of the legislation, and in
accordance with HUD's stated policy.
Section 602 of H.R. 1776 provides grants to cities for use
in ``Homeownership Zones''--designated areas in which large
scale development projects are designed to reclaim distressed
neighborhoods by creating homeownership opportunities for low
and moderate income families. H.R. 1776 authorizes $25 million
in grants for FY 2001, and such sums as may be necessary for FY
2002, to remain available until expended.
Improving manufactured housing
Manufactured Housing provides many more Americans with the
opportunity to become homeowners because of the relative
affordability of such housing. New, multi-sectioned
manufactured homes cost $40,000 to $70,000, compared to
$157,000 for the average conventionally built new home. In
1998, nearly 380,000 manufactured homes were built in the
United States, constituting almost a third of all new single-
family homes sold that year. Manufactured communities are less
mobile now, with more such homes having amenities such as
vaulted ceilings, state of the art appliances, in-door garages
and decks.
The needs of a changing industry and product have made the
``National Manufactured Housing Construction and Safety
Standards Act of 1974'' all but obsolete. The Act was
originally designed to transition manufactured housing from the
old trailer-model into a more reliable, alternative source of
affordable housing, built at a plant site under a uniform
Federal building code. Undeniably, the need to update and
restructure the provisions of the Manufactured Housing Act
exists. In fact, the HUD Secretary has stated that ``the HUD
code is frozen in time, and [HUD's] process for changing the
code is cumbersome and often ineffective.''
As a result, Title XI of H.R. 1776 contains ``The
Manufactured Housing Improvement Act,'' which is designed to
improve the manufactured housing program while protecting the
consumer. Title XI of H.R. 1776 ensures that significant
improvements will be made to the quality, safety and
affordability of these manufactured homes and the Federal
management of the program. The bill establishes an American
National Standards Institute (ANSI) certified consensus
committee of consumers, industry experts and government
officials (the ``Consensus Committee'') to improve the
management of the Federal program by establishing a uniform
code. The Consensus Committee is responsible for making timely
updates to the HUD code and for developing enforcement
standards which must be approved by the Secretary.
From the time of its initial introduction, both Majority
and Minority Committee staff, HUD, the manufactured housing
industry and consumer groups have worked together to craft an
acceptable compromise on the manufactured housing bill to
protect both the interests of consumers and the industry. The
current version of the legislation incorporates changes
negotiated in the 105th Congress that gave the HUD Secretary
more authority to reject recommendations made by the Consensus
Committee, and to better balance consumer interests with those
of the manufactured housing industry in the composition of the
Consensus Committee. In the 106th Congress, the bill was
amended further to foster the creation of installation and
dispute resolution programs at the State level. The current
bipartisan support for the bill reflects the results of
extensive negotiation efforts to address consumer concerns with
the installation of manufactured homes, as well as the lack of
consumer recourse when repairs are needed on poorly installed
homes.
Specific changes to the bill as reported out of the
Committee include: changing the composition of the Consensus
Committee from five groups with five members in each group to
three groups with seven members in each group: (1) producers,
(2) users and (3) general interest and public officials. The
change in the Consensus Committee's composition is consistent
with ANSI guidelines. In addition, there is language to ensure
the Committee is represented by balanced interests and that
``all affected interests have the opportunity for fair and
equitable participation without dominance by any single
interest.''
States are given five years to adopt an installation
program established by State law that includes installation
standards, the training and licensing of installers and the
inspection of the installation of manufactured homes. During
this five-year period. The HUD Secretary and the Consensus
Committee are charged with developing a model manufactured
housing installation program. In States that fail to adopt an
installationprogram, HUD may contract with an appropriate agent
in those States to implement the model installation program.
In order to address problems that may arise with
manufactured homes, changes to the legislation provide that
States have five years to adopt a dispute resolution program.
Such a program will provide for the timely resolution of
disputes between manufacturers, retailers, and installers
regarding the responsibility for the correction or repair of
defects in manufactured homes that are reported during the one
year period beginning on the date of installation. As in the
case of installation standards, for States that choose not to
adopt their own dispute resolution program, HUD may contract
with an appropriate agent in those states to implement a
dispute resolution program.
The Committee notes that language in title XI of H.R. 1776
(formerly Title VII) has changed from earlier versions. One
notable change is the composition of the manufactured housing
Consensus Committee, which is designed to develop and recommend
additions, revisions, and interpretations to the Federal
Manufactured Home Construction and Safety Standards and
enforcement regulations to the Secretary of HUD. It is
noteworthy that in making such modifications, for the sake of
consistency with the ANSI guidelines, reference to several
specific industries, such as the home builders, in the
``General Interest'' Section has been omitted. Such omission
was in no way intended to exclude the homebuilders from
participation in the Consensus Committee. It is the Committee's
intention that industries involved in the purchase,
construction, or site development of manufactured housing, such
as the home building industry, be members of the Consensus
Committee, to ensure the intent of ANSI's requirements for due
process are met.
Additional provisions, background and explanation
There are several additional provisions in H.R. 1776 that
affect homeownership interests or make improvements to existing
affordable housing programs. Provisions affecting private
mortgage insurance (PMI) are included to clarify and streamline
requirements in existing law and allow flexibility where needed
to ensure that the best interests of the lender and the
borrower are achieved. For example, the legislation clarifies
situations where there are workout agreements between a lender
and a delinquent borrower. When modifying the terms of the
original note or mortgage, lenders have the option to reset the
cancellation, termination and final termination dates to
conform to the modified changes. In addition, balloon payments
are treated as adjustable rate mortgages, with the result being
that amortization and termination schedules must be provided to
the borrower.
H.R. 1776 also incorporates the provisions of S. 400, the
``Native American Housing and Self-Determination Act Amendments
of 1999,'' which makes technical and clarifying amendments to
the ``Native American Housing and Self-Determination Act of
1996'' (NAHASDA). Included are provisions which would allow the
HUD Secretary to waive the requirement for a local cooperation
agreement provided the recipient has made a good faith effort
to comply and agrees to make payments in lieu of taxes to the
jurisdiction. Also included are provisions setting forth
requirements for assistance to Indian families that are not
low-income upon a showing of need. In addition, NAHASDA is
amended so that the HUD Secretary has the authority to waive
the statutory requirements of environmental reviews upon a
determination that failure to comply does not undermine goals
of the National Environmental Policy Act, will not threaten the
health or safety of the community and is the result of
inadvertent error which can be corrected by the recipient of
funding. The intent is to allow the Secretary and tribe to
address problems resulting from procedural, rather than
substantive, noncompliance.
The bill prescribes formula allocation for Indian housing
authorities operating fewer than 250 units by requiring the
amount of assistance provided to these tribes to be based on an
average of their allocations from the prior five (5) fiscal
years (fiscal years 1992 through 1997). For Section 8 vouchers
currently being used by an Indian tribe, the bill requires
counting such vouchers under the NAHASDA block grant allocation
formula to ensure that families currently participating in the
Section 8 voucher program will continue to be funded.
In addition to the technical amendments incorporated from
S. 400, H.R. 1776 also includes a provision allowing tribal
housing entities to provide housing on Indian reservations to
full-time law enforcement officers, sworn to implement the
Federal, State, county, or tribal law.
Creation of the Land Title Status Commission, permanent
authorization of the Section 184 Loan Guarantee Program, and
amendments to NAHASDA designed to increase the efficiency and
impact of that program in terms of homeownership for Native
Americans, ensure that enactment of H.R. 1776 will further the
goal of increased homeownership on tribal lands.
Finally, the Secretary is directed to report to the House
Committee on Banking and Financial Services and the Senate
Committee on Banking, Housing, and Urban Affairs regarding
efforts to develop a pilot program in Texas regarding the Texas
Apartment Association (``TAA'') Section 8 Addendum (the
``Addendum'') and to streamline the Section 8 program.
Hearings
The Subcommittee on Housing and Community Opportunity held
one hearing on the ``American Homeownership and Economic
Opportunity Act of 1999'' in the first session of the 106th
Congress.
The hearing was held on Wednesday, September 15, 1999, in
Room 2128 Rayburn House Office Building. Testifying before the
Subcommittee were: Mr. Antone Giordano, Vice-Chairman of the
NAHB Federal Government Affairs Committee, testified on behalf
of the National Association of Home Builders (NAHB); Mr.
William Apgar, AssistantSecretary for Housing and Federal
Housing Commissioner for the U.S. Department of Housing and Urban
Development (HUD); Mr. George Knight, Executive Director of the
Neighborhood Reinvestment Corporation; Mr. Rutherford ``Jack'' Brice, a
Member of the Board for the American Association of Retired Persons
(AARP); and Mr. Edward Hussey, the Chairman of the Government Affairs
Committee of the Manufactured Housing Association for Regulatory Reform
(MHARR), testifying on behalf of the Coalition to Improve the
Manufactured Housing Act.
Committee Consideration and Votes (Rule XI, Clause 2(l)(2)(B)
The Committee met in open session to markup H.R. 1776,
``American Homeownership and Economic Opportunity Act of 2000''
on March 14, 2000. The Committee considered, as original text
for purposes of amendments, a Committee Print as reported by
the Subcommittee on February 15, 2000, which incorporated H.R.
1776 as introduced.
During the markup, the Committee approved 9 amendments,
including a managers amendment in the nature of a substitute,
by voice vote. The Committee defeated 2 amendments by recorded
vote. Pursuant to the provisions of clause 2(l)(2)(B) of rule
XI of the House of Representatives, the results of each roll
call vote and the motion to report, together with the names of
those voting for and those against are printed below:
rollcall no. 1
Date: March 14, 2000.
Measure: ``American Homeownership and Economic Opportunity
Act of 2000''.
Motion by: Mr. Frank.
Description of motion: Broadens the definition of
``monitoring'' to include inspection of manufactured housing at
manufacturing locations (in addition to retail locations) and
to allow inspectors to inspect the manufactured home in its
entirety, in addition to the items currently listed in the
definition.
Results: Defeated: Ayes 19, Nays 23.
YEAS NAYS
Mr. Campbell Mr. Leach
Mr. LaFalce Mr. Baker
Mr. Frank Mr. Lazio
Mr. Kanjorski Mr. Castle
Mr. Sanders Mr. King
Ms. Velazquez Mr. Royce
Mr. Watt Mr. Lucas
Mr. Bentsen Mr. Metcalf
Mr. Maloney Mr. Ney
Ms. Hooley Mrs. Kelly
Mr. Weygand Dr. Weldon
Mr. Sherman Mr. Ryun of Kansas
Mr. Sandlin Mr. Riley
Mr. Inslee Mr. Hill
Ms. Schakowsky Mr. LaTourette
Mr. Moore Mr. Manzullo
Mrs. Jones Mr. Jones
Mr. Capuano Mr. Ryan of Wisconsin
Mr. Forbes Mr. Ose
Mr. Sweeney
Mrs. Biggert
Mr. Terry
Mr. Green
rollcall no. 2
Date: March 14, 2000.
Measure: ``American Homeownership and Economic Opportunity
Act of 2000''.
Motion by: Mr. Frank.
Description of motion: Requires HUD to provide to
consumers, within 60 days of request, information regarding
defects in manufactured homes and to notify the manufactured
housing industry of the request so that the Department can
expedite the process.
Results: Defeated: Ayes 11, Nays 28.
YEAS NAYS
Mr. LaFalce Mr. Leach
Mr. Frank Mr. Baker
Mr. Sanders Mr. Lazio
Ms. Velazquez Mr. Castle
Mr. Watt Mr. King
Mr. Inslee Mr. Royce
Ms. Schakowsky Mr. Lucas
Mr. Moore Mr. Metcalf
Mrs. Jones Mr. Ney
Mr. Capuano Mrs. Kelly
Mr. Forbes Dr. Weldon
Mr. Ryun of Kansas
Mr. Riley
Mr. LaTourette
Mr. Manzullo
Mr. Jones
Mr. Ryan of Wisconsin
Mr. Ose
Mr. Sweeney
Mrs. Biggert
Mr. Terry
Mr. Green
Mr. Kanjorski
Mr. Bentsen
Mr. Maloney
Ms. Hooley
Mr. Sherman
Mr. Sandlin
After the Committee Print, as amended, was adopted by voice
vote, H.R. 1776 was called up for Committee consideration. A
motion to strike everything after the enacting clause in H.R.
1776 and insert in lieu thereof the Committee Print was
approved by voice vote. A motion to adopt H.R. 1776 and
favorably report the bill, as amended, to the House was
approved by voice vote.
Committee Oversight Findings
In compliance with clause 2(l)(3)(A) of rule XI of the
Rules of the House of Representatives, the Committee reports
that the findings and recommendations of the Committee, based
on oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Committee on Government Reform and Oversight Findings
No findings and recommendations of the Committee on
Government Reform and Oversight were received as referred to in
clause 2(l)(3)(D) of rule XI (and clause 4(c)(2) of rule X) of
the Rules of the House of Representatives.
Constitutional Authority
In compliance with clause 2(l)(4) of rule XI of the Rules
of the House of Representatives, the constitutional authority
for Congress to enact this legislation is derived from the
general welfare clause (Article I, Sec. 8).
New Budget Authority and Tax Expenditures
Clause 2(l)(3)(B) of rule XI of the Rules of the House of
Representatives is inapplicable because this legislation does
not provide new budgetary authority for increased tax
expenditures.
Congressional Budget Office Cost Estimate
The cost estimate pursuant to Clause 2(l)(3)(C) of rule XI,
of the Rules of the House of Representatives and Section 403 of
the Congressional Budget Act of 1974 has been requested, but
had not been prepared as of the filing of Part I of this
report. The estimate will be included in Part II of this report
to be filed at a future date.
Advisory Committee Statement
No advisory committees within the meaning of Section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Congressional Accountability Act
The reporting requirement under Section 102(b)(3) of the
Congressional Accountability Act (P.L. 104-1) is inapplicable
because this legislation does not relate to terms and
conditions of employment or access to public services or
accommodations.
Congressional Budget Office Federal Mandate Cost Estimate
The cost estimate pursuant to Section 424 of the Unfunded
Mandates Reform Act (P.L. 104-4) has been requested, but had
not been prepared as of the filing of this report. The estimate
will be filed at a future date.
Section by Section
Section 1. Short Title and Table of Contents. States that
the act may be cited as the ``American Homeownership and
Economic Opportunity Act of 2000.''
Section 2. Findings and purpose. Congressional findings are
that expanding homeownership opportunities should be a national
priority, that there is an abundance of conventional capital
available, that communities possess ample will and creativity
to provide opportunities uniquely designed to assist their
citizens to achieve homeownership, and that consumers should
have access to lending opportunities at reasonable costs with
knowledge behind lending decisions. Purposes of the act are to
encourage homeownership by families not otherwise able to
afford homeownership, to promote the ability of the private
sector to produce affordable housing without excessive
government regulations, to expand homeownership through tax
incentives such as the home mortgage-interest deduction, and to
facilitate the availability of capital for homeownership
opportunities.
TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
Section 101. Short title. This title may be referred to as
the ``Housing Affordability Barrier Removal Act of 2000.''
Section 102. Housing impact analysis. Requires that all
proposed federal regulations include a housing impact analysis
so that a federal agency can certify that a proposed regulation
would have no significant deleterious impact upon housing
affordability. If a proposed rule would have a negative impact,
then an opportunity is given to groups to offer an alternative
that achieves the stated objectives with a less deleterious
impact on housing. The Department of Housing and Urban
Development (HUD) is directed to create model impact analyses
that other agencies can use for these purposes. Agencies
responsible for regulating safety and soundness of financial
institutions or government sponsored enterprises (GSEs) are
exempt.
Section 103. Grants for regulatory barrier removal
strategies. Authorizes $15 million for FY 2001 through FY 2005
for grants to States, local governments, and eligible consortia
for regulatory barrier removal strategies. This is a
reauthorization of the same amount under an already existing
CDBG setaside (Section 107(a)(1)(H)). Grants provided for these
purposes must be used in coordination with the local
comprehensive housing affordability strategy (``CHAS'').
Section 104. Eligibility for community development block
grants. Requires a jurisdiction as a condition of eligibility
under the CDBG program to make a good faith effort to reduce
barriers to affordable housing identified in the CHAS submitted
by the jurisdiction to HUD, without creating any new private
right of action.
Section 105. Regulatory barriers clearinghouse. Creates
within HUD's Office of Policy Development and Research a
``Regulatory Barriers Clearinghouse'' to collect and
disseminate information on, among other things, the prevalence
of regulatory barriers and their effects on availability of
affordable housing, and successful barrier removal strategies.
TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES
Section 201. Extension of Loan Term for Manufactured Home
Lots. Extends the loan terms for manufactured home lots
financed by insured financial institutions from 15 years, 32
days to 20 years, 32 days.
Section 202. Downpayment simplification. Permanently
authorizes simplified downpayment calculations/requirements for
FHA-insured mortgages, originally applicable only to Alaska and
Hawaii in the 1998 and 1999 Appropriations Acts. In FY2000,
this was broadened to apply nationally.
Section 203. Reduced downpayment requirements for loans for
teachers and uniformed municipal employees. Allows reduced
downpayment requirements for FHA-insured loans for teachers and
uniformed municipal employees.
Section 204. Preventing fraud in rehabilitation loan
program. Establishes stronger anti-fraud protections in HUD's
203(k) home acquisition and rehabilitation program. Prohibits
any identity of interest between a lender, consultant,
contractor, non-profit agency, real estate agent, inspector or
appraiser involved in a 203(k) loan, except in cases of
affiliated business arrangements provided in the Real Estate
Settlement Procedures Act; establishes stricter, uniform
criteria for approving non-profits participating in the
program; requires landers to ensure the work has been completed
to the borrowers' satisfaction through interview before
dispersing the final loan payment; requires that consultants
involved in 203(k) loans be certified by HUD; requires in cases
of owner/occupied participants with improvements over $25,000,
that the borrower go through a certified or bonded general
contractor; and requires HUD to report to Congress the
potential impact of eliminating the non-profit component of the
program (currently, non-profits comprise three to four
percent).
Section 205. Neighborhood Teacher Program. Allows the sale
of FHA single-family properties at discounted prices to state-
certified teachers or administrators in grades pre-k through
12.
Section 206. Community development financial institution
risk-sharing demonstration. Amends section 249 of the National
Housing Act (NHA) to allow Community Development Financial
Institutions (CDFI) to originate and service section 249 risk-
sharing mortgage loans in a demonstration program, limited to
four regions as designated by the HUD Secretary.
Section 207. Hybrid ARMs. Adds a Hybrid FHA Adjustable Rate
Mortgage (ARMs) to insure mortgages that carry an interest rate
for an initial period of at least 3 years before adjusting to a
fixed rate.
Section 208. Home equity conversion mortgages. Allows for
the refinancing of home equity conversion mortgages (HECMs) for
elderly homeowners. Reduces the single premium payment to
credit the premium paid on the original loan (subject to an
actuarial study); establishes a limit on origination fees that
may be charged (which fees may be fully financed) and prohibits
the charging of broker fees; waives counseling requirements if
the borrower has received counseling in the prior five years
and the increase in the principal limit exceeds refinancing
costs by an amount set by the Department; and provides a
disclosure under a refinanced mortgage of the total cost of
refinancing and the principal limit increase.
In cases where the reverse mortgage proceeds are used for
long-term care insurance contracts, a portion of those proceeds
may be used for up-front costs, such as initial service,
appraisal and inspection fees. Requires HUD to waive the up-
front mortgage insurance premium in cases where reverse
mortgage proceeds are used for costs of a qualified long-term
care insurance contract.
Directs the Department of conduct an actuarial study within
180 days of the effect of reducing the refinancing premium
collected under a refinancing and of the effect creating a
single national loan limit for HECM reverse mortgages.
Section 209. Law enforcement officer homeownership pilot
program. Requires the HUD Secretary to develop a pilot program
designed to assist law enforcement officers, including
correctional officers, to purchase homes in locally designated
high crime areas. No downpayment is required. The borrower must
have served as police officer for at least 6 months. The
provision is primarily targeted for high-crime areas.
Section 210. Study of mandatory inspection requirement for
single family mortgage insurance. Requires a GAO study of the
inspection process for Federal Housing Administration (FHA)
properties, comparing or estimating the potential financial
losses and savings to the Mutual Mortgage Insurance Fund
between a system that would require a mandatory FHA inspection
and the current optional inspection. The study would also
review the potential impact of a mandatory FHA system on the
homebuying process, particularly including undeserved areas
where FHA losses are the greatest and whether there is a
housing quality and/or financial difference in inspected homes
and those without inspections. The study would also review the
current option practice and FHA's Homebuyer Protection Plan,
and report whether consumers understand the availability of
independent inspections, financed by FHA and whether their
choices for an inspection are affected or pressured by market
or economic forces.
Section 211. Report on title I home improvement loan
program. Requires HUD within one year of enactment of this act
to provide Congress with a report containing recommendations
for improvements to the property improvement loan insurance
program under title I of the NHA. In determining such
recommendations, the Secretary shall consult with interested
persons and organizations, including the lending industry and
consumer organizations.
TITLE III--SECTION 8 HOMEOWNERSHIP OPTION
Section 301. Downpayment assistance. Public Housing
Authorities (PHAs) are authorized to provide down-payment
assistance in the form of a single grant, in lieu of monthly
assistance. Such down-payment assistance shall not exceed the
total amount of monthly assistance received by the tenant for
the first year of assistance. For FY 2000 and thereafter,
assistance under this section shall be available to the extent
that sums are appropriated.
Section 302. Pilot program for homeownership assistance for
disabled families. Adds a pilot program to demonstrate the use
of tenant-based section 8 assistance (section 8 vouchers) for
the purchase of a home that will be owned by 1 or more members
of the disabled family and will be occupied by that family and
meets certain requirements. Requirements include purchase of
the property within three years of enactment of this Act;
demonstrated income level from employment or other sources
(including public assistance), that is not less than twice the
Section 8 payment standard established by the PHA;
participation in a housing counseling program provided by the
PHA; and other requirements established by the PHA in
accordance with requirements established by the Secretary of
HUD.
Section 303. Funding for pilot program. Authorizes a $2
million grant program to supplement demonstration programs
approved under the Section 8 homeownership demonstration
program. The program has a 50% match requirement.
TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS
Section 401. Reauthorization. Reauthorizes the Community
Development Block Grant (CDBG) program at $4.9 billion for FY
2001 and at such sums as may be appropriated thereafter through
2005 and clarifies urban county designation for purposes of
entitlement community status.
Section 402. Prohibition of set-asides. Prohibits set-sides
within the CDBG program.
Section 403. Public services cap. Provides for a 6-year
extension of the 25% CDBG public services cap for Los Angeles,
CA.
Section 404. Homeownership for municipal employees.
Provides that a mayor or local governing official may use CDBG
funds to assist first-time homebuying municipal employees to
purchase homes within their jurisdiction. These employees would
be uniformed municipal employees (police, sanitation workers,
firemen) and teachers. Assistance can take the form of
downpayment assistance, help with closing costs, housing
counseling, or subsidizing mortgage rates. Eligible employees
are those with incomes at or below 115% of area median income,
except in high cost areas, as determined by the Secretary,
where incomes may be at or below 150% of area median income.
Financial assistance is limited to a single year and
entitlement communities are not permitted to commit on-going
financial obligations. Recapture of homeownership assistance
amounts is consistent with existing recapture provisions in the
HOME program.
Section 405. Technical amendment relating to Brownfields.
Makes environmental cleanup and economic development activities
related to Brownfields a permanent eligible activity under CDBG
by amending the Housing and Community Development Act of 1974.
Section 406. Income eligibility. Requires HUD to grant
exceptions for at least ten jurisdictions of its income
eligibility limits on the use of CDBG and HOME funds.
Currently, HOME and CDBG grantees are capped at 80% of the
national median income instead of being allowed to serve
households with incomes of 80% of the national median income
instead of being allowed to serve households with incomes of
80% of median of the local area. For those jurisdictions that
HUD selects, based on housing costs and average income, the
relevant median income for purposes of the CDBG/HOME limits
will be the local median, rather than the national median.
Section 407. Housing opportunities for persons with AIDS.
Reauthorizes the Housing Opportunities For Persons with AIDS
Program (HOPWA) at $260 million for FY 2001, and thereafter at
such sums as may be appropriated through 2005.
TITLE V--HOME INVESTMENT PARTNERSHIP PROGRAM
Section 501. Reauthorization. Reauthorizes the HOME
Investment Partnerships Program through FY 2005, at $1.65
billion for FY 2001 and at such sums as may be appropriated
thereafter through 2005. Also authorizes a set-aside of $3
million, for each of FY 2001 and FY 2002, of HOME funds to
create three pilot programs to provide planning money to
regions to coordinate affordable housing.
Section 502. Eligibility of limited equity cooperatives and
mutual housing associations. Amends HOME to make eligible
mutual housing associations and limited equity cooperatives.
Section 503. Administrative costs. Provides flexibility in
the HOME program to allow administrative expenses to be used
over a long-term period to accommodate longer-term
administration of servicing homeownership initiatives.
Section 504. Leveraging affordable housing investment
through local loan pools. Allows HOME funds to be used as
leverage in connection with the creation of greater ``loan
pools'' (ten times the amount of the HOME funds invested in
such a pool) without imposing the HOME income restrictions on
the entire pool (i.e. allows ``mixed-income'' pools).
Section 505. Homeownership for municipal employees.
Provides that a mayor or local governing official may use HOME
funds to assist certain municipal employees to purchase homes
within their jurisdiction. These employees would be uninformed
municipal employees (police, sanitation workers, firemen) and
teachers. Assistance can take the form of downpayment
assistance, help with closing costs, housing counseling, or
subsidizing mortgage rates. Eligible employees are those with
incomes at or below 115% of area median income, except in high
cost areas, as determined by the Secretary, where incomes may
be at or below 150% of area median income.
Section 506. Use of section 8 assistance by ``grand-
families'' to rent dwelling units in assisted projects. Allows
HOME funds (in rental units otherwise not eligible for HOME
funds) to be used for facilities with units with low-income
families having a grandparent residing with a grandchild, or in
some cases, where great- and great-great grandchildren are
residing in the unit, with neither of the child's parents
residing in the household.
Section 507. Loan guarantees. Creates a HOME Loan Guarantee
program by adding a provision allowing the Secretary to
guarantee (similar to CDBG loan guarantees) the obligations of
participating jurisdictions made in connection with affordable
housing efforts by pledging as security a participating
jurisdiction's future HOME allocations (up to five times the
latest allocation).
Section 508. Downpayment assistance for 2- and 3-family
residences. Creates a pilot program for CDBG entitlement
communities and HOME participating jurisdictions to use such
grant amounts for downpayment assistance and closing costs to
families purchasing a 2-3 family residence with use or resale
restrictions. Eligible grant recipients are at or below 80% of
area median income (defined as low-income) or in cases of high
cost areas, at or below 110% of area median income, provided
the locality requests a high-cost designation by the Secretary.
TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES
Section 601. Reauthorization of Neighborhood Reinvestment
Corporation. Reauthorizes the Neighborhood Reinvestment
Corporation at $95 million for FY 2001 and at such sums as may
be necessary through FY 2005, including $5 million to provide
up to 20 competitive grants for existing duplex homeownership
programs in already established NeighborWorks'
Homeownership Centers.
Section 602. Homeownership zones. Provides grants for use
in ``Homeownership Zones''--designated areas in which large-
scale development projects are designed to reclaim distressed
neighborhoods by creating homeownership opportunities for low-
and moderate-income families. Authorizes $25 million in grants
for FY 2001 and such sums as may be necessary for FY 2002, to
remain available until expended.
Section 603. Lease-to-own. Provides for a sense of the
Congress that residential tenancies under lease-to-own
provisions can facilitate homeownership by low- and moderate-
income families. Requires the Secretary to provide a report to
Congress within 3 months after enactment of the act, analyzing
whether lease-to-own provision can be incorporated within HOME
investment partnerships program, the public housing program,
and other federally-assisted housing programs.
Section 604. Local capacity building. Amends section 4 of
Public Law 103-120 (the ``HUD Demonstration Act''), to add the
National Association of Housing Partnerships as an intermediary
organization eligible for federal grants to develop the
capacity and ability of community development corporations and
community housing development organizations to undertake
community development and affordable housing projects.
Section 605. Consolidated application and planning
requirement and super-NOFA. Establishes a statutory basis for
consolidating several Notices of Funding Availability (NOFAs)
for various HUD programs into one ``SuperNOFA,'' thereby
streamlining the process.
Section 606. Assistance for self-help housing providers.
Reauthorizes the self-help housing providers through FY 2003,
at $25 million for FY 2001 and such sums as may be necessary
for each of FY 2002 and 2003. Allows projects with 5 or more
units to use their funds over a 3-year period. Allows entities
to advance themselves funds prior to completion of
environmental reviews for purposes of land acquisition.
Section 607. Housing counseling organizations. Adds
``cooperative housing'' as a form of homeownership eligible for
housing counseling funds.
Section 608. Community lead information centers and lead-
safe housing. Provides as an eligible activity the use of grant
funds from the existing HUD Lead Hazard Control Grant program
to provide access to residential lead-based paint poisoning
prevention services at centralized locations; funds may be used
to provide temporary lead-safe housing.
TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP
Section 701. Lands Title Report Commission. Subject to
amounts appropriated, creates an Indian Lands Title Report
Commission to develop recommended approaches to improving how
the Bureau of Indian Affairs (BIA) conducts title reviews in
connection with the sales of Indian lands. Receipt of a
certificate from BIA is a prerequisite to any sales transaction
on Indian lands, and the current procedure is overly burdensome
and presents a regulatory barrier to increasing homeownership
on Indian lands.
The Commission is composed of 12 members with knowledge of
Indian land title issues (4 appointed by the President, 4 by
the President from recommendations made by the Chairman of the
Senate Committee on Banking, Housing and Urban Affairs
Committee, and 4 by the President from recommendations made by
the Chairman of the House Committee on Banking and Financial
Services). Authorized at $500,000.
Section 702. Loan guarantees. Permanently authorizes the
section 184 Loan Guarantee Program for Indian housing.
Section 703. Native American housing assistance. Makes the
following amendments to the Native American Housing and Self-
Determination Act of 1996 (NAHASDA):
Restricts Secretary's authority to grant waiver of Indian
housing plan requirements, upon noncompliance due to
circumstances beyond the control of the Indian tribe, to a
period of 90 days. Allows Secretary to waive requirement for a
local cooperation agreement provided the recipient has made a
good faith effort to comply and agrees to make payments in lieu
of taxes to the jurisdiction.
Sets forth requirement for assistance to Indian families
that are not low-income upon a showing of need. Eliminates
separate Indian housing plan requirements for small Indian
tribes.
Provides Secretary with authority to waive statutory
requirements of environmental reviews upon a determination that
failure to comply does not undermine goals of the National
Environmental Policy Act, will not threaten the health or
safety of the community, is the result of inadvertent error and
can be corrected by the recipient of funding. The intent is to
address problems resulting from procedural, rather than
substantive, noncompliance.
Authorizes tribal housing entities to provide housing on
Indian reservations to full-time law enforcement officers,
sworn to implement the Federal, state, county, or tribal law.
Revises provisions regarding audits and reviews by the
Secretary by making applicable the requirements of the Single
Audit Act to tribal housing entities; allowing these housing
entities to be treated as non-Federal entities; and, permitting
the Secretary to conduct audits. The audits will determine
whether the grant recipient has carried out eligible activities
in a timely manner; has met certification requirements; has an
on going capacity to carry out eligible activities in a timely
manner; and, has complied with the proposed housing plan.
Prescribes formula allocation for Indian housing
authorities operating fewer than 250 units by requiring the
amount of assistance provided to these tribes to be based on an
average of their allocations from the prior five (5) fiscal
years (fiscal years 1992 through 1997).
Amends hearing requirements to allow the Secretary to take
immediate remedial action if the Secretary determines that the
recipient has failed to comply substantially with any material
provision of NAHASDA resulting in continued federal
expenditures not authorized by law.
Upon noncompliance with the law due to technical
incapacity, requires a recipient to enter into a ``performance
agreement'' with the Secretary before the Secretary can provide
technical assistance.
For section 8 vouchers currently being used by an Indian
tribe, requires counting such vouchers under the NAHASDA block
grant allocation formula to ensure that families currently
participating in the Section 8 voucher program will continue to
be funded.
Repeals requirement regarding the certification of
compliance with subsidy layering requirements with respect to
housing assisted with grant amounts provided under the Act.
TITLE VIII--TRANSFER HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND
COMMUNITY DEVELOPMENT CORPORATIONS
Section 801. Transfer of unoccupied and substandard HUD-
Held housing to local governments and community development
corporations. Amends Section 204 of the VA, HUD and Independent
Agencies Act of 1997, which sets forth the authority of the HUD
Secretary to engage in property disposition activities.
Requires the HUD Secretary to transfer, to the maximum extent
practicable, ownership of eligible properties (HUD-owned
substandard multifamily, unoccupied multifamily, or unoccupied
single-family properties) to a unit of local government having
jurisdiction for the area where the property is located, or to
a community development corporation within such jurisdiction,
on certain terms and conditions. Eligible properties do not
include any property subject to a specific sale agreement under
section 204(h) of the National Housing Act, as amended by
Section 602 of the FY 1999 VA, HUD and Independent Agencies
Appropriations Act. Requires the HUD Secretary to issue a
report within 6 months of enactment of the Act identifying any
communities designated as ``revitalization communities''
pursuant to section 204(h) of the National Housing Act, as
amended.
Adds provision requiring that properties eligible are those
which have been HUD-held for at least six months, and changes
to definition of ``cost-recovery basis'' to incorporate
appraised cost of property plus carrying costs. In cases where
single-family property is transferred to a local unit of
government, this section requires a $1 purchase program,
consistent with current HUD policy.
Section 802. Transfer of HUD assets in revitalization
areas. Amends Section 204 of the National Housing Act, to
require the HUD Secretary, within 60 days after a request by
the Chief Executive of a jurisdiction, to designate such
jurisdiction as a ``revitalization area'' for purposes of the
property disposition program in section 204(h) of the NHA.
TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
Section 901. Short title. Provides that this title may be
cited as the ``Private Mortgage Insurance Technical Corrections
and Clarification Act''.
Section 902. Changes in amortization schedule. Clarifies
that private mortgage insurance (PMI) termination/cancellation
rights for adjustable rate mortgages (ARMs) are based on the
amortization schedule then in effect (the most recent
calculation); treats a balloon mortgage like an ARM (uses most
recent amortization schedule); bases cancellation/termination
rights on modified terms if loan modification occurs.
Section 903. Deletion of ambiguous references to
residential mortgages. Clarifies that borrowers' PMI
cancellation and termination rights apply only to mortgages
created after the effective date of the legislation (one-year
after the date of enactment).
Section 904. Cancellation rights after cancellation date.
Clarifies that the good payment history requirement in the bill
is calculated as of the later of the cancellation date or, the
date on which a borrower requests cancellation. Provides that
if a borrower is not current on payments as of the termination
date, but later becomes current, termination shall not take
place until the first day of the following month (eliminates
lender need to check and cancel PMI every day of the month).
Clarifies that PMI cancellation or termination does not
eliminate requirement to make PMI payments legitimately accrued
prior to any cancellation or termination of PMI.
Section 905. Clarification of cancellation and termination
issues and lender paid mortgage insurance disclosure
requirements. Adds provision clarifying cancellation and
termination issues related to terms ambiguous in law, including
``good payment history'', ``automatic termination'' and
``accrued obligation for premium payments''. Clarifies that PMI
cancellation rights exist on the cancellation date, or any
later date, as long as the borrower complies with all
cancellation requirements. Clarifies that borrower must be
current on loan payments to exercise cancellation.
Section 906. Definitions. Sets forth definitions of: (a)
refinanced; (b) midpoint of the amortization period; (d)
original value; and (e) principal residence.
TITLE X--RURAL HOUSING HOMEOWNERSHIP
Section 1001. Promissory note requirement under housing
repair loan program. Increases amount of promissory note
(instead of use of liens on property) amounts from $2,500 to
$7,500 (adjusted from late 1970's amount to account for home
repairs, e.g. roofing, heating systems, windows, etc.) without
going through the formal loan process.
Section 1002. Limited partnership eligibility for farm
labor housing loans. Technical amendment that clarifies that
limited partnerships are eligible for loans under Sec. 514
(Farm Labor Housing) in cases where the general partner is a
nonprofit entity.
Section 1003. Project accounting records and practices.
Sets forth accounting and recordkeeping requirements, including
maintaining accounting records in accordance with generally
accepted accounting principles for all projects that receive
funds under this program; retaining records available for
inspection by the USDA Secretary for not less than six years,
and other requirements.
Section 1004. Definition of rural area. Extends designation
of rural areas, for purposes of the Rural Housing Service
housing programs, for a narrow category of communities until
the 2010 census.
Section 1005. Operating assistance for migrant farmworkers
projects. Allows Sec. 521 operating assistance for farm labor
housing complexes where ``mixed'' migrant and annual workers
will live.
Section 1006. Multifamily rental housing loan guarantee
program. Allows Native Americans to become eligible borrowers
under the multifamily loan guarantee program; authorizes a
``balloon payment'' as a financing option; allow fees from
lenders to be used to help offset program costs; and repeals
existing prohibition against the transfer of property title
from the lender to the Federal Government as well as the
prohibition against the transfer of liability from one borrower
to another.
Section 1007. Enforcement provisions. Provides criminal
penalties and civil sanctions for violations of program
requirements.
Section 1008. Amendments to title 18 of the United States
Code. Amends Title 18 of the U.S. Code--Money Laundering--to
strengthen enforcement and prosecution of program fraud and
abuse.
TITLE XI--MANUFACTURED HOUSING IMPROVEMENT
Section 1101. Short title and references. States that this
title may be cited as the ``Manufactured Housing Improvement
Act.''
Section 1102. Findings and purposes. Current law (P.L. 93-
383) provisions are replaced with a more positive, detailed
statement of the original intent of Congress when it enacted
the Federal Manufactured Home Construction and Safety Standards
Act. Adds a consensus standards development process to the
purpose of the act. Expresses the continuing need to facilitate
the availability of affordable manufactured homes as well as
the need for objective, performance-based standards and
enhanced consumer protection.
Section 1103. Definitions. Adds several definitions to
Section 603 of current law (P.L. 93-383) concerning the
consensus committee and the consensus standards development
process (Section 1104). Adds a definition for the monitoring
function and related definitions for Production Inplant Primary
Inspection Agency (IPIA) and Design Approval Primary Inspection
Agency (DAPIA) duties, which had not been previously defined.
Consensus committee recommends specific regulations regarding
thesefunctions to the Secretary of HUD. The term ``dealer'' has
been replaced throughout with the term ``retailer.''
Section 1104. Federal manufactured home construction and
safety standards. Section 604 of current law (P.L. 93-383) is
revised to establish a consensus committee that would submit
recommendations to the Secretary of HUD for developing,
amending and revising both the Federal Manufactured Home
Construction and Safety Standards and the enforcement
regulations. These recommendations would be published in the
Federal Register for notice and comment prior to final adoption
by the Secretary. The committee will be appointed by a
recognized, voluntary, private consensus standards body chosen
by the Secretary. The committee shall be composed of 21
qualified individuals (7 producers of manufactured housing, 7
users of manufactured housing, and 7 general interest groups
and/or public officials). The committee would function in
accordance with the American National Standards Institute
(ANSI) procedures for the development and coordination of
American National Standards.
The revisions to section 604 would also clarify the scope
of federal preemption to ensure that disparate state or local
requirements do not affect the uniformity and comprehensive
nature of the federal standards.
Section 1105. Abolishment of National Manufactured Home
Advisory Council; manufactured home installation. Section 605
of existing law (P.L. 93-383) would be repealed, abolishing the
national Manufactured Home Advisory Council, which is replaced
by the consensus committee formed under Section 1104. A new
section 605 is added, entitled ``Sec. 605. Manufactured Home
Installations,'' which give states five years to adopt an
installation program ``established by state law'' that
includes: (1) installation standards, (2) the training and
licensing of installers and (3) the inspection of the
installation of manufactured homes. During this five-year
period, the Secretary of the Department of Housing and Urban
Development (HUD) and the Consensus Committee are charged with
constructing a ``model'' manufactured housing installation
program. In states that choose not to adopt an installation
program, HUD may contract with an appropriate agent in those
states to implement the ``model'' installation program.
Section 1106. Public information. Amends current
requirements governing cost information of any new standards
submitted by manufacturers to the Secretary by requiring the
Secretary to submit such cost information to the consensus
committee for evaluation.
Section 1107. Research, testing, development, and training.
Requires HUD Secretary to conduct research, testing,
development and training necessary to carry out the purposes of
facilitating manufactured housing, including encouraging GSE's
to develop and implement secondary market securitization
programs for FHA manufactured home loans, and reviewing the
programs for FHA manufactured home loans and developing any
changes to such programs to promote the affordability of
manufactured homes.
Section 1108. Fees. Amends current section 620 (P.L. 93-
383) by allowing the Secretary to use industry label fees for
the administration of the consensus committee, hiring
additional program staff, for additional travel funding,
funding of a non-career administrator to oversee the program,
and for HUD's efforts to promote the availability and
affordability of manufactured housing. Prohibits the use of
label fees to fund any activity not expressly authorized by the
act, makes expenditure of label fees subject to annual
Congressional appropriations review, and eliminates HUD's
annual report requirement. Requires HUD to be accountable for
any fee increase by requiring notice and comment rulemaking.
Section 1109. Dispute Resolution. In order to address
problems that may arise with manufactured homes, Sec. 1109
gives the states five years to adopt a dispute resolution
program for the timely resolution of disputes between
manufacturers, retailers, and installers regarding the
responsibility for the correction or repair of defects in
manufactured homes that are reported during the one year period
beginning on the date of installation. This also requires state
issuance of appropriate orders for the correction or repair of
defects in the manufactured homes that are reported during the
1-year period beginning on the date of installation under the
dispute resolution program. In states that choose not to adopt
their own dispute resolution program, HUD may contract with an
appropriate agent in those states to implement a dispute
resolution program.
Section 1110. Elimination of annual report requirement.
Eliminates existing annual reporting by the Secretary to
Congress on manufactured housing standards.
Section 1111. Effective date. Effective date of the
legislation is the date of enactment, except that interpretive
bulletins or orders published as a proposed rule prior to the
date of enactment shall be unaffected.
Section 1112. Savings provision. Existing manufactured
housing standards are maintained in effect until the effective
date of the Federal manufactured home construction and safety
standards pursuant to the amendments made by this act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992
* * * * * * *
TITLE I--HOUSING ASSISTANCE
* * * * * * *
Subtitle E--Homeownership Programs
* * * * * * *
SEC. 184.
(a) * * *
* * * * * * *
(i) Indian Housing Loan Guarantee Fund.--
(1) * * *
* * * * * * *
(5) Limitation on commitments to guarantee loans and
mortgages.--
(A) * * *
* * * * * * *
[(C) Limitation on outstanding aggregate
principal amount.--Subject to the limitations
in subparagraphs (A) and (B), the Secretary may
enter into commitments to guarantee loans under
this section in each of fiscal years 1997,
1998, 1999, 2000, and 2001 with an aggregate
outstanding principal amount not exceeding
$400,000,000 for each such fiscal year.]
(C) Limitation on outstanding aggregate
principal amount.--Subject to the limitations
in subparagraphs (A) and (B), the Secretary may
enter into commitments to guarantee loans under
this section in each fiscal year with an
aggregate outstanding principal amount not
exceeding such amount as may be provided in
appropriation Acts for such fiscal year.
* * * * * * *
(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 1997, 1998, 1999, 2000, and
2001] each fiscal year.
* * * * * * *
[SEC. 186. ENTERPRISE ZONE HOMEOWNERSHIP OPPORTUNITY GRANTS.
[(a) Statement of Purpose.--It is the purpose of this
section--
[(1) to encourage homeownership by families in the
United States who are not otherwise able to afford
homeownership;
[(2) to encourage the redevelopment of economically
depressed areas; and
[(3) to provide better housing opportunities in
federally approved and equivalent State-approved
enterprise zones.
[(b) Definitions.--For purposes of this section the following
definitions shall apply:
[(1) Home.--The term ``home'' means any 1- to 4-
family dwelling. Such term includes any dwelling unit
in a condominium project or cooperative project
consisting of not more than 4 dwelling units, any town
house, and any manufactured home.
[(2) Metropolitan statistical area.--The term
``metropolitan statistical area'' means a metropolitan
statistical area as established by the Office of
Management and Budget.
[(3) Nonprofit organization.--The term ``nonprofit
organization'' means a private nonprofit corporation,
or other private nonprofit legal entity, that is
approved by the Secretary as to financial
responsibility.
[(4) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
[(5) State.--The term ``State'' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands, the Trust
Territory of the Pacific Islands, and any other
territory or possession of the United States.
[(6) Unit of general local government.--The term
``unit of general local government'' means any borough,
city, county, parish, town, township, village, or other
general purpose political subdivision of a State.
[(c) Assistance to Nonprofit Organizations.--
[(1) In general.--The Secretary may provide
assistance to nonprofit organizations to carry out
enterprise zone homeownership opportunity programs to
promote homeownership in federally approved and
equivalent State-approved enterprise zones in
accordance with the provisions of this section. Such
assistance shall be made in the form of grants.
[(2) Applications.--Applications for assistance under
this section shall be made in such form, and in
accordance with such procedures, as the Secretary may
prescribe.
[(d) Eligible Uses of Assistance.--
[(1) In general.--Any nonprofit organization
receiving assistance under this section shall use such
assistance to provide loans to families purchasing
homes constructed or rehabilitated in accordance with
an enterprise zone homeownership opportunity program
approved under this section.
[(2) Specific requirements.--Each loan made to a
family under this subsection shall--
[(A) be secured by a second mortgage held by
the Secretary on the property involved;
[(B) be in an amount not exceeding $15,000;
[(C) bear no interest; and
[(D) be repayable to the Secretary upon the
sales, lease, or other transfer of such
property.
[(e) Program Requirements.--
[(1) In general.--Assistance provided under this
section may be used only in connection with an
enterprise zone homeownership opportunity program of
construction or rehabilitation of homes.
[(2) Family need.--Each family purchasing a home
under this section shall--
[(A) have a family income on the date of such
purchase that is not more than the median
income for a family of 4 persons (adjusted for
family size) in the metropolitan statistical
area in which a federally approved or
equivalent State-approved enterprise zone is
located; and
[(B) not have owned a home during the 3-year
period preceding such purchase.
[(3) Downpayment.--Each family purchasing a home
under this section shall make a downpayment of not less
than 5 percent of the sale price of such home.
[(4) Leasing prohibition.--No family purchasing a
home under this section may lease such home.
[(f) Terms and Conditions of Assistance.--
[(1) Local consultation.--No proposed enterprise zone
homeownership opportunity program may be approved by
the Secretary under this section unless the applicant
involved demonstrates to the satisfaction of the
Secretary that--
[(A) it has consulted with and received the
support of residents of the neighborhood in
which such program is to be located; and
[(B) it has the approval of each unit of
general local government in which such program
is to be located.
[(2) Program schedule.--Each applicant for assistance
under this section shall submit to the Secretary an
estimated schedule for completion of its proposed
enterprise zone homeownership opportunity program,
which schedule shall have been agreed to by each unit
of general local government in which such program is to
be located.
[(3) Location.--All homes constructed or
rehabilitated under such program will be located in
federally approved or equivalent State-approved
enterprise zones.
[(4) Sales contracts.--Sales contracts entered into
under such program will contain provisions requiring
repayment of any loan made under this section upon the
sale or other transfer of the home involved, unless the
Secretary approves a transfer of such home without
repayment (in which case the second mortgage held by
the Secretary on such home shall remain in force until
such loan is fully repaid).
[(g) Program Selection Criteria.--
[(1) In general.--In selecting enterprise zone
homeownership opportunity programs for assistance under
this section from among eligible programs, the
Secretary shall make such selection on the basis of the
extent to which--
[(A) non-Federal public or private entities
will contribute land necessary to make each
program feasible;
[(B) non-Federal public and private financial
or other contributions (including tax
abatements, waivers of fees related to
development, waivers of construction,
development, or zoning requirements, and direct
financial contributions) will reduce the cost
of home constructed or rehabilitated under each
program;
[(C) each program will produce the greatest
number of units for the least amount of
assistance provided under this section, taking
into consideration the cost differences among
different market areas; and
[(D) each program provides for the
involvement of local residents in the planning,
and construction or rehabilitation, of homes.
[(2) Exception.--To the extent that non-Federal
public entities are prohibited by the law of any State
from making any form of contribution described in
subparagraph (A) or (B) of paragraph (1), the Secretary
shall not consider such form of contribution in
evaluating such program.
[(h) Regulations.--Not later than 180 days after the date of
enactment of this section, the Secretary shall issue final
regulations to carry out the provisions of this title. Any such
regulations shall be issued in accordance with section 553 of
title 5, United States Code, notwithstanding the provisions of
subsection (a)(2) of such section.
[(i) Funding.--There are authorized to be appropriated to
carry out this section $30,000,000 in each of fiscal years 1993
and 1994.]
SEC. 186. HOMEOWNERSHIP ZONE GRANTS.
(a) Authority.--The Secretary of Housing and Urban
Development may make grants to units of general local
government to assist homeownership zones. Homeownership zones
are contiguous, geographically defined areas, primarily
residential in nature, in which large-scale development
projects are designed to reclaim distressed neighborhoods by
creating homeownership opportunities for low- and moderate-
income families. Projects in homeownership zones are intended
to serve as a catalyst for private investment, business
creation, and neighborhood revitalization.
(b) Eligible Activities.--Amounts made available under this
section may be used for projects that include any of the
following activities in the homeownership zone:
(1) Acquisition, construction, and rehabilitation of
housing.
(2) Site acquisition and preparation, including
demolition, construction, reconstruction, or
installation of public and other site improvements and
utilities directly related to the homeownership zone.
(3) Direct financial assistance to homebuyers.
(4) Homeownership counseling.
(5) Relocation assistance.
(6) Marketing costs, including affirmative marketing
activities.
(7) Other project-related costs.
(8) Reasonable administrative costs (up to 5 percent
of the grant amount).
(9) Other housing-related activities proposed by the
applicant as essential to the success of the
homeownership zone and approved by the Secretary.
(c) Application.--To be eligible for a grant under this
section, a unit of general local government shall submit an
application for a homeownership zone grant in such form and in
accordance with such procedures as the Secretary shall
establish.
(d) Selection Criteria.--The Secretary shall select
applications for funding under this section through a national
competition, using selection criteria established by the
Secretary, which shall include--
(1) the degree to which the proposed activities will
result in the improvement of the economic, social, and
physical aspects of the neighborhood and the lives of
its residents through the creation of new homeownership
opportunities;
(2) the levels of distress in the homeownership zone
as a whole, and in the immediate neighborhood of the
project for which assistance is requested;
(3) the financial soundness of the plan for financing
homeownership zone activities;
(4) the leveraging of other resources; and
(5) the capacity to successfully carry out the plan.
(e) Grant Approval Amounts.--The Secretary may establish a
maximum amount for any grant for any funding round under this
section. A grant may not be made in an amount that exceeds the
amount that the Secretary determines is necessary to fund the
project for which the application is made.
(f) Program Requirements.--A homeownership zone proposal
shall--
(1) provide for a significant number of new
homeownership opportunities that will make a visible
improvement in an immediate neighborhood;
(2) not be inconsistent with such planning and design
principles as may be prescribed by the Secretary;
(3) be designed to stimulate additional investment in
that area;
(4) provide for partnerships with persons or entities
in the private and nonprofit sectors;
(5) incorporate a comprehensive approach to
revitalization of the neighborhood;
(6) establish a detailed time-line for commencement
and completion of construction activities; and
(7) provide for affirmatively furthering fair
housing.
(g) Income Targeting.--At least 51 percent of the homebuyers
assisted with funds under this section shall have household
incomes at or below 80 percent of median income for the area,
as determined by the Secretary.
(h) Environmental Review.--For purposes of environmental
review, decisionmaking, and action pursuant to the National
Environmental Policy Act of 1969 and other provisions of law
that further the purposes of such Act, a grant under this
section shall be treated as assistance under the HOME
Investment Partnerships Act and shall be subject to the
regulations issued by the Secretary to implement section 288 of
such Act.
(i) Review, Audit, and Reporting.--The Secretary shall make
such reviews and audits and establish such reporting
requirements as may be necessary or appropriate to determine
whether the grantee has carried out its activities in a timely
manner and in accordance with the requirements of this section.
The Secretary may adjust, reduce, or withdraw amounts made
available, or take other action as appropriate, in accordance
with the Secretary's performance reviews and audits under this
section.
(j) Authorization.--There is authorized to be appropriated to
carry out this section $25,000,000 for fiscal year 2001 and
such sums as may be necessary for fiscal year 2002, to remain
available until expended.
* * * * * * *
TITLE XII--REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE HOUSING
* * * * * * *
SEC. 1204. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES AND
IMPLEMENTATION.
[(a) In General.--The amounts set aside under section 107 of
the Housing and Community Development Act of 1974 for the
purpose of this subsection shall be available for grants under
subsection (b) and (c).]
(a) Funding.--There is authorized to be appropriated for
grants under subsections (b) and (c) $15,000,000 for fiscal
year 2001 and such sums as may be necessary for each of fiscal
years 2002, 2003, 2004, and 2005.
(b) [State Grants] Grant Authority.--The Secretary may make
grants to States and units of general local government
(including consortia of such governments) for the costs of
developing and implementing strategies to remove regulatory
barriers to affordable housing, including the costs of--
(1) * * *
* * * * * * *
(3) developing legislation to provide [a State
program to reduce State and local] State, local, or
regional programs to reduce regulatory barriers and
developing a strategy for adoption of such legislation;
(4) developing model State or local standards and
ordinances to reduce regulatory barriers and assisting
in the adoption and use of the standards and
ordinances;
(5) carrying out the simplification and consolidation
of [State] administrative procedures and processes
constituting regulatory barriers to affordable housing,
including the issuance of permits; and
* * * * * * *
[(c) Local Grants.--The Secretary may make grants to units of
general local government for the costs of developing and
implementing strategies to remove regulatory barriers to
affordable housing, including the costs of--
[(1) identifying, assessing, and monitoring local
regulatory barriers;
[(2) identifying local policies (including laws and
regulations) that permit or encourage regulatory
barriers;
[(3) developing legislation to provide a local
program to reduce local regulatory barriers and
developing a strategy for adoption of such legislation;
[(4) developing model local standards and ordinances
to reduce regulatory barriers and assisting in the
adoption and use of the standards and ordinances; and
[(5) carrying out the simplification and
consolidation of local administrative procedures and
processes constituting regulatory barriers to
affordable housing, including the issuance of permits.]
* * * * * * *
(e) Application and Selection.--The Secretary shall provide
for the form and manner of applications for grants under this
section, which shall describe how grant amounts will assist the
State or unit of general local government in developing and
implementing strategies to remove regulatory barriers to
affordable housing. The Secretary shall establish criteria for
approval of applications under this subsection [and for the
selection of units of general local government to receive
grants under subsection (f)(2)] and such criteria shall require
that grant amounts be used in a manner consistent with the
strategy contained in the comprehensive housing affordability
strategy for the jurisdiction pursuant to section 105(b)(4) of
the Cranston-Gonzalez National Affordable Housing Act.
[(f) Allocation of Amounts.--
[(1) State grants.--
[(A) In general.--Of the total amount
appropriated for each fiscal year to carry out
this subsection, the Secretary shall use two-
thirds of such amount to provide grants under
subsection (b) to each State submitting an
application that is approved by the Secretary.
Such amounts shall be allocated among the
States based upon the measure of need (for the
whole State) of each State, as determined under
section 217(b)(1)(A) (excluding adjustments
under section 217(b)(1)(D)) of the Cranston-
Gonzalez National Affordable Housing Act,
except that the minimum grant amount for each
fiscal year grant shall be $100,000 (to the
extent sufficient amounts are made available).
[(B) Pro rata distribution.--If insufficient
amounts are made available for grants in the
amount under subparagraph (A) to each State
submitting an approved application, each such
State shall receive a pro rata portion of such
amount based on the ratio of the population of
such State to the population of all States.
[(2) Local grants.--Of the total amount appropriated
for each fiscal year to carry out this section, the
Secretary shall use one-third of such amount to provide
grants on a competitive basis to units of general local
government based on the proposed uses of such amounts,
as provided in the application. Each grant made with
such amounts shall be in an amount not less than
$10,000.]
(f) Selection of Grantees.--To the extent amounts are made
available to carry out this section, the Secretary shall
provide grants on a competitive basis to eligible grantees
based on the proposed uses of such amounts, as provided in
applications under subsection (e).
* * * * * * *
SEC. 1205. REGULATORY BARRIERS CLEARINGHOUSE.
(a) Establishment.--The Secretary of Housing and Urban
Development shall establish a clearinghouse to [receive,
collect, process, and assemble] serve as a national repository
to receive, collect, process, assemble, and disseminate
information regarding--
(1) State and local laws, regulations, and policies
affecting the development, maintenance, improvement,
availability, or cost of affordable housing[,
including] (including tax policies affecting land and
other property, land use controls, zoning ordinances,
building codes, fees and charges, growth limits, and
policies that affect the return on investment in
residential property), and the prevalence and effects
on affordable housing of such laws, regulations, and
policies;
(2) State and local activities, strategies, and plans
to remove or ameliorate the negative effects, if any,
of such laws, regulations, and policies, including
particularly innovative or successful activities,
strategies, and plans; and
(3) State and local strategies, activities and plans
that promote affordable housing and housing
desegregation, including particularly innovative or
successful strategies, activities, and plans.
(b) Functions.--The clearinghouse established under
subsection (a) shall--
(1) respond to inquiries from State and local
governments, other organizations, and individuals
requesting information regarding State and local laws,
regulations, policies, activities, strategies, and
plans described in subsection (a); [and]
(2) provide assistance in identifying, examining, and
understanding such laws, regulations, policies,
activities, strategies, and plans[.]; and
(3) by making available through a World Wide Web site
of the Department, by electronic mail, or otherwise,
provide to each housing agency of a unit of general
local government that serves an area having a
population greater than 100,000, an index of all State
and local strategies and plans submitted under
subsection (a) to the clearinghouse, which--
(A) shall describe the types of barriers to
affordable housing that the strategy or plan
was designed to ameliorate or remove; and
(B) shall, not later than 30 days after
submission to the clearinghouse of any new
strategy or plan, be updated to include the new
strategy or plan submitted.
(c) Organization.--The clearinghouse under this section shall
be established within the Office of Policy Development of the
Department of Housing and Urban Development and shall be under
the direction of the Assistant Secretary for Policy Development
and Research.
(d) Timing.--The clearinghouse under this section (as amended
by section 105 of the Housing Affordability Barrier Removal Act
of 2000) shall be established and commence carrying out the
functions of the clearinghouse under this section not later
than 1 year after the date of the enactment of such Act. The
Secretary of Housing and Urban Development may comply with the
requirements under this section by reestablishing the
clearinghouse that was originally established to comply with
this section and updating and improving such clearinghouse to
the extent necessary to comply with the requirements of this
section as in effect pursuant to the enactment of such Act.
----------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
* * * * * * *
TITLE I--COMMUNITY DEVELOPMENT
* * * * * * *
definitions
Sec. 102. (a) As used in this title--
(1) * * *
* * * * * * *
(5) The term ``city'' means (A) any unit of general
local government which is classified as a municipality
by the United States Bureau of the Census or (B) any
other unit of general local government which is a town
or township and which, in the determination of the
Secretary, (i) possesses powers and performs functions
comparable to those associated with municipalities,
(ii) is closely settled, and (iii)(I) contains within
its boundaries no incorporated places as defined by the
United States Bureau of the Census which have not
entered into cooperation agreements with such town or
township to undertake or to assist in the undertaking
of essential community development and housing
assistance activities, or (II) has a population in its
unincorporated areas of not less than 450,000, except
that a town or township which is designated as a city
pursuant to this subclause shall have only its
unincorporated areas considered as a city for purposes
of this title.
(6)(A) * * *
* * * * * * *
(D) Such term also includes a county that--
(i) * * *
* * * * * * *
(v)(I) has a population of 175,000 or more
(including the population of metropolitan
cities therein), (II) before January 1, 1975,
was designated by the Secretary of Defense
pursuant to section 608 of the Military
Construction Authorization Act, 1975 (Public
Law 93-552; 88 Stat. 1763), as a Trident
Defense Impact Area, and (III) has located
therein not less than 1 unit of general local
government that was classified as a
metropolitan city and (a) for which county each
such unit of general local government therein
has relinquished its classification as a
metropolitan city under the 6th sentence of
paragraph (4), or (b) that has entered into
cooperative agreements with each metropolitan
city therein to undertake or to assist in the
undertaking of essential community development
and housing assistance activities; [or]
(vi) has entered into a local cooperation
agreement with a metropolitan city that
received assistance under section 106 because
of such classification, and has elected under
paragraph (4) to have its population included
with the population of the county for the
purposes of qualifying as an urban county,
except that to qualify as an urban county under
this clause, the county must--
(I) * * *
* * * * * * *
(III) have had a Federal naval
installation that was more than 100
years old closed by action of the Base
Closure and Realignment Commission
appointed for 1993 under the Base
Closure and Realignment Act of 1990,
directly resulting in a loss of
employment by more than 7,000 Federal
Government civilian employees and more
than 15,000 active duty military
personnel, which naval installation was
located within one mile of an
enterprise community designated by the
Secretary pursuant to section 1391 of
the Internal Revenue Code of 1986,
which enterprise community has a
population of not less than 20,000,
according to the 1990 decennial census
of the Bureau of the Census of the
Department of Commerce[.]; or
(vii)(I) has consolidated its government with
one or more municipal governments, such that
within the county boundaries there are no
unincorporated areas, (II) has a population of
not less than 650,000, over which the
consolidated government has the authority to
undertake essential community development and
housing assistance activities, (III) for more
than 10 years, has been classified as an
entitlement area for purposes of allocating and
distributing funds under section 106, and (IV)
as of the date of the enactment of this clause,
has over 90 percent of the county's population
within the jurisdiction of the consolidated
government.
* * * * * * *
(F) Notwithstanding any other provision of this
paragraph, any county that was classified as an urban
county pursuant to subparagraph (A) for fiscal year
1999, includes 10 cities each having a population of
less than 50,000, and has a population in its
unincorporated areas of 190,000 or more but less than
200,000, shall thereafter remain classified as an urban
county.
(d)(1) With respect to program years beginning with the
program year for which grants are made available from amounts
appropriated for fiscal year 1982 under section 103, the
population of any unit of general local government which is
included in that of an urban county as provided in subparagraph
(A)(ii) or (D) of subsection (a)(6) shall be included in the
population of such urban county for three program years
beginning with the program year in which its population was
first so included and shall not otherwise be eligible for a
grant under section 106 as a separate entity, unless the urban
county does not receive a grant for any year during such three-
year period.
(2) Notwithstanding paragraph (1), a town or township that is
classified as a city by reason of subclause (II) of section
102(a)(5)(B)(iii) shall be treated, for purposes of eligibility
for a grant under section 106(b)(1) from amounts made available
for a fiscal year beginning after the date of the enactment of
the American Homeownership and Economic Opportunity Act of
2000, as an entity separate from the urban county in which it
is located.
* * * * * * *
authorizations
Sec. 103. (a) In General.--The Secretary is authorized to
make grants to States, units of general local government, and
Indian tribes to carry out activities in accordance with the
provisions of this title. [For purposes of assistance under
section 106, there are authorized to be appropriated
$4,000,000,000 for fiscal year 1993 and $4,168,000,000 for
fiscal year 1994.] For purposes of assistance under section
106, there is authorized to be appropriated $4,900,000,000 for
fiscal year 2001 and such sums as may be necessary for each of
fiscal years 2002, 2003, 2004, and 2005.
(b) Prohibition of Set-Asides.--Except as provided in
paragraphs (1) and (2) of section 106(a) and section 107,
amounts appropriated pursuant to subsection (a) of this section
or otherwise to carry out this title (other than section 108)
shall be used only for formula-based grants allocated pursuant
to section 106 and may not be otherwise used unless the
provision of law providing for such other use specifically
refers to this subsection and specifically states that such
provision modifies or supersedes the provisions of this
subsection.
statement of activities and review
Sec. 104. (a)(1) * * *
* * * * * * *
(c) A grant may be made under section 106(b) only if the unit
of general local government certifies that it is following--
(1) a current housing affordability strategy which
has been approved by the Secretary in accordance with
section 105 of the Cranston-Gonzalez National
Affordable Housing Act, which shall include making a
good faith effort to carry out the strategy established
under section 105(b)(4) of such Act by the unit of
general local government to remove barriers to
affordable housing, or
* * * * * * *
eligible activities
Sec. 105. (a) Activities assisted under this title may
include only--
(1) * * *
* * * * * * *
(8) provision of public services, including but not
limited to those concerned with employment, crime
prevention, child care, health, drug abuse, education,
energy conservation, welfare or recreation needs, if
such services have not been provided by the unit of
general local government (through funds raised by such
unit, or received by such unit from the State in which
it is located) during any part of the twelve-month
period immediately preceding the date of submission of
the statement with respect to which funds are to be
made available under this title, and which are to be
used for such services, unless the Secretary finds that
the discontinuation of such services was the result of
events not within the control of the unit of general
local government, except that not more that 15 per
centum of the amount of any assistance to a unit of
general local government (or in the case of nonentitled
communities not more than 15 per centum statewide)
under this title including program income may be used
for activities under this paragraph unless such unit of
general local government used more than 15 percent of
the assistance received under this title for fiscal
year 1982 or fiscal year 1983 for such activities
(excluding any assistance received pursuant to Public
Law 98-8), in which case such unit of general local
government may use not more than the percentage or
amount of such assistance used for such activities for
such fiscal year, whichever method of calculation
yields the higher amount, except that of any amount of
assistance under this title (including program income)
in each of [fiscal years 1993 through 1999 to the City
of Los Angeles and County of Los Angeles, each such
unit of general government] fiscal years 1993 through
2006 to the City of Los Angeles, the County of Los
Angeles, or any other unit of general local government
located in the County of Los Angeles, such city, such
county, or each such unit of general local government,
respectively, may use not more than 25 percent in each
such fiscal year for activities under this paragraph,
and except that of any amount of assistance under this
title (including program income) in each of fiscal
years 1999, 2000, and 2001, to the City of Miami, such
city may use not more than 25 percent in each fiscal
year for activities under this paragraph;
* * * * * * *
(22) provision of assistance to public and private
organizations, agencies, and other entities (including
nonprofit and for-profit entities) to enable such
entities to facilitate economic development by--
(A) * * *
* * * * * * *
(C) providing general support (such as peer
support programs and counseling) to owners of
microenterprises and persons developing
microenterprises; [and]
(23) activities necessary to make essential repairs
and to pay operating expenses necessary to maintain the
habitability of housing units acquired through tax
foreclosure proceedings in order to prevent abandonment
and deterioration of such housing in primarily low- and
moderate-income neighborhoods[.];
(24) provision of direct assistance to facilitate and
expand homeownership among uniformed employees
(including policemen, firemen, and sanitation and other
maintenance workers) of, and teachers who are employees
of, the metropolitan city or urban county (or an agency
or school district serving such city or county)
receiving grant amounts under this title pursuant to
section 106(b) or the unit of general local government
(or an agency or school district serving such unit)
receiving such grant amounts pursuant to section
106(d), except that--
(A) such assistance may only be provided on
behalf of such employees who are first-time
homebuyers under the meaning given such term in
section 104(14) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
12704(14)), except that, for purposes of this
paragraph, such section shall be applied by
substituting ``section 105(a)(24) of the
Housing and Community Development Act of 1974''
for ``title II'';
(B) notwithstanding section 102(a)(20)(B) or
any other provision of this title, such
assistance may be provided on behalf of such
employees whose family incomes do not exceed--
(i) 115 percent of the median income
of the area involved, as determined by
the Secretary with adjustments for
smaller and larger families; or
(ii) with respect only to areas that
the Secretary determines have high
housing costs, taking into
consideration median house prices and
median family incomes for the area, 150
percent of the median income of the
area involved, as determined by the
Secretary with adjustments for smaller
and larger families;
(C) such assistance shall be used only for
acquiring principal residences for such
employees, in a manner that involves obligating
amounts with respect to any particular mortgage
over a period of one year or less, by--
(i) providing amounts for
downpayments on mortgages;
(ii) paying reasonable closing costs
normally associated with the purchase
of a residence;
(iii) obtaining pre- or post-purchase
counseling relating to the financial
and other obligations of homeownership;
or
(iv) subsidizing mortgage interest
rates; and
(D) any residence purchased using assistance
provided under this paragraph shall be subject
to restrictions on resale that are--
(i) established by the metropolitan
city, urban county, or unit of general
local government providing such
assistance; and
(ii) determined by the Secretary to
be appropriate to comply with
subparagraphs (A) and (B) of section
215(b)(3) of the Cranston-Gonzalez
National Affordable Housing Act (42
U.S.C. 12745(b)(3)), except that, for
purposes of this paragraph, such
subparagraphs shall be applied by
substituting ``section 105(a)(24) of
the Housing and Community Development
Act of 1974'' for ``this title'';
(25) lead-based paint hazard evaluation and
reduction, as defined in section 1004 of the
Residential Lead-Based Paint Hazard Reduction Act of
1992[.]; and
(26) environmental cleanup and economic development
activities related to Brownfields projects in
conjunction with the appropriate environmental
regulatory agencies.
* * * * * * *
(c)(1) * * *
* * * * * * *
(5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any assisted
activity described in subsection (a)(24) of this section shall
be considered, for purposes of this title, to benefit persons
of low and moderate income and to be directed toward the
objective under section 101(c)(3).
* * * * * * *
special purpose grants
Sec. 107. (a) Set-Aside.--
(1) In general.--For each fiscal year (except as
otherwise provided in this paragraph), of the total
amount provided in appropriation Acts under section 103
for the fiscal year, $60,000,000 shall be set aside for
grants under subsection (b) for such year for the
following purposes:
(A) * * *
* * * * * * *
(G) $2,000,000 shall be available in fiscal
year 1993 for a grant to the City of
Bridgeport, Connecticut, subject to the
approval of sufficient amounts in an
appropriation Act and to binding commitments
made by the City of Bridgeport and the State of
Connecticut that the city and State,
respectively, will supplement such amount with
$2,000,000 of additional funds; and
[(H) $15,000,000 shall be available for
grants under the Removal of Regulatory Barriers
to Affordable Housing Act of 1992; and]
[(I)] (H) $7,500,000 shall be available to
carry out the Community Outreach Partnership
Act of 1992.
(2) Treatment of grants.--Any grants made under this
section shall be in addition to any other grants that
may be made under this title to the same entities for
the same purposes.
* * * * * * *
----------
NATIONAL HOUSING ACT
* * * * * * *
TITLE I--HOUSING RENOVATION AND MODERNIZATION
* * * * * * *
insurance of financial institutions
Sec. 2. (a) * * *
* * * * * * *
(b)(1) * * *
* * * * * * *
(3) No insurance shall be granted under this section to any
such financial institution with respect to any obligation
representing any such loan, advance of credit, or purchase by
it if the term to maturity of such loan, advance of credit or
purchase exceeds--
(A) * * *
* * * * * * *
(E) [fifteen] twenty years and thirty-two days if
made for the purpose of financing the purchase, by the
owner of a manufactured home which is the principal
residence of that owner, of a suitably developed lot on
which to place that manufactured home;
* * * * * * *
TITLE II--MORTGAGE INSURANCE
* * * * * * *
insurance of mortgages
Sec. 203. (a) * * *
(b) To be eligible for insurance under this section a
mortgage shall--
(1) * * *
(2) Involve a principal obligation (including such
initial service charges, appraisal, inspection, and
other fees as the Secretary shall approve) in an
amount--
(A) not to exceed the lesser of--
(i) in the case of a 1-family
residence, 95 percent of the median 1-
family house price in the area, as
determined by the Secretary; in the
case of a 2-family residence, 107
percent of such median price; in the
case of a 3-family residence, 130
percent of such median price; or in the
case of a 4-family residence, 150
percent of such median price; or
* * * * * * *
[(B) except as otherwise provided in this paragraph
(2), not to exceed an amount equal to the sum of--
[(i) 97 percent of $25,000 of the appraised
value of the property, as of the date the
mortgage is accepted for insurance;
[(ii) 95 percent of such value in excess of
$25,000 but not in excess of $125,000; and
[(iii) 90 percent of such value in excess of
$125,000.]
(B) not to exceed an amount equal to the sum
of--
(i) the amount of the mortgage
insurance premium paid at the time the
mortgage is insured; and
(ii)(I) in the case of a mortgage for
a property with an appraised value
equal to or less than $50,000, 98.75
percent of the appraised value of the
property;
(II) in the case of a mortgage for a
property with an appraised value in
excess of $50,000 but not in excess of
$125,000, 97.65 percent of the
appraised value of the property;
(III) in the case of a mortgage for a
property with an appraised value in
excess of $125,000, 97.15 percent of
the appraised value of the property; or
(IV) notwithstanding subclauses (II)
and (III), in the case of a mortgage
for a property with an appraised value
in excess of $50,000 that is located in
an area of the State for which the
average closing cost exceeds 2.10
percent of the average, for the State,
of the sale price of properties located
in the State for which mortgages have
been executed, 97.75 percent of the
appraised value of the property.
For purposes of the preceding sentence, the term
``area'' means a metropolitan statistical area as
established by the Office of Management and Budget; and
the median 1-family house price for an area shall be
equal to the median 1-family house price of the county
within the area that has the highest such median price.
For purposes of this paragraph, the term ``average
closing cost'' means, with respect to a State, the
average, for mortgages executed for properties that are
located within the State, of the total amounts (as
determined by the Secretary) of initial service
charges, appraisal, inspection, and other fees (as the
Secretary shall approve) that are paid in connection
with such mortgages. [If the mortgage to be insured
under this section covers property on which there is
located a one- to four-family residence, and the
appraised value of the property, as of the date the
mortgage is accepted for insurance, does not exceed
$50,000, the principal obligation may be in an amount
not to exceed 97 percent of such appraised value. If
the mortgagor is a veteran and the mortgage to be
insured under this section covers property upon which
there is located a dwelling designed principally for a
one-family residence, the principal obligation may be
in an amount equal to the sum of (i) 100 per centum of
$25,000 of the appraised value of the property as of
the date the mortgage is accepted for insurance, and
(ii) 95 per centum of such value in excess of $25,000.]
Notwithstanding any other provision of this section, in
any case where the dwelling is not approved for
mortgage insurance prior to the beginning of
construction, such mortgage shall not exceed 90 per
centum of the entire appraised value of the property as
of the date the mortgage is accepted for insurance,
unless (i) the dwelling was completed more than one
year prior to the application for mortgage insurance,
or (ii) the dwelling was approved for guaranty,
insurance, or a direct loan under chapter 37 of title
38, United States Code, prior to the beginning of
construction, or (iii) the dwelling is covered by a
consumer protection or warranty plan acceptable to the
Secretary and satisfies all requirements which would
have been applicable if such dwelling had been approved
for mortgage insurance prior to the beginning of
construction. As used herein, the term ``veteran''
means any person who served on active duty in the armed
forces of the United States for a period of not less
than 90 days (or as certified by the Secretary of
Defense as having performed extra-hazardous service),
and who was discharged or released therefrom under
conditions other than dishonorable, except that persons
enlisting in the armed forces after September 7, 1980,
or entering active duty after October 16, 1981, shall
have their eligibility determined in accordance with
section 3103A(d) of title 38, United States Code.
[Notwithstanding any other provision of this
paragraph, the amount which may be insured under this
section may be increased by up to 20 percent if such
increase is necessary to account for the increased cost
of the residence due to the installation of a solar
energy system (as defined in subparagraph (3) of the
last paragraph of section 2(a) of this Act) therein.
[Except with respect to mortgages executed by
mortgagors who are veterans, a mortgage may not involve
a principal obligation (including such initial service
charges, appraisal, inspection, and other fees as the
Secretary shall approve) in excess of 98.75 percent of
the appraised value of the property (97.75 percent, in
the case of a mortgage with an appraised value in
excess of $50,000), plus the amount of the mortgage
insurance premium paid at the time the mortgage is
insured. For purposes of the preceding sentence, the
term ``appraised value'' means the amount set forth in
the written statement required under section 226, or a
similar amount determined by the Secretary if section
226 does not apply. Notwithstanding the authority of
the Secretary to establish the terms of insurance under
this section and approve the initial service charges,
appraisal, inspection, and other fees (and subject to
any other limitations under this section on the amount
of a principal obligation), the Secretary may not (by
regulation or otherwise) limit the percentage or amount
of any such approved charges and fees that may be
included in the principal obligation of a mortgage.
[Notwithstanding any other provision of this
paragraph, the Secretary may not insure, or enter into
a commitment to insure, a mortgage under this section
that is executed by a first-time homebuyer and that
involves a principal obligation (including such initial
service charges, appraisal, inspection, and other fees
as the Secretary shall approve) in excess of 97 percent
of the appraised value of the property unless the
mortgagor has completed a program of counseling with
respect to the responsibilities and financial
management involved in homeownership that is approved
by the Secretary; except that the Secretary may, in the
discretion of the Secretary, waive the applicability of
this requirement.
[In conjunction with any loan insured under this
section, an original lender shall provide to each
prospective borrower a disclosure notice that provides
a one page analysis of mortgage products offered by
that lender and for which the borrower would qualify.
This notice shall include: (i) a generic analysis
comparing the note rate (and associated interest
payments), insurance premiums, and other costs and fees
that would be due over the life of the loan for a loan
insured by the Secretary under this subsection with the
note rates, insurance premiums (if applicable), and
other costs and fees that would be expected to be due
if the mortgagor obtained instead other mortgage
products offered by the lender and for which the
borrower would qualify with a similar loan-to-value
ratio in connection with a conventional mortgage (as
that term is used in section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)) or section 302(b)(2) of the Federal
National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)), as applicable), assuming prevailing
interest rates; and (ii) a statement regarding when the
mortgagor's requirement to pay the mortgage insurance
premiums for a mortgage insured under this section
would terminate or a statement that the requirement
will terminate only if the mortgage is refinanced, paid
off, or otherwise terminated.]
* * * * * * *
[(10) Calculation of Downpayment.--
[(A) In general.--Notwithstanding any other
provision of this subsection, with respect to a
mortgage executed for insurance in fiscal years
1998, 1999, and 2000, involving a principal
obligation not in excess of the sum of--
[(i) the amount of the mortgage
insurance premium paid at the time the
mortgage is insured; and
[(ii)(I) in the case of a mortgage
for a property with an appraised value
equal to or less than $50,000, 98.75
percent of the appraised value of the
property;
[(II) in the case of a mortgage for a
property with an appraised value in
excess of $50,000 but not in excess of
$125,000, 97.65 percent of the
appraised value of the property;
[(III) in the case of a mortgage for
a property with an appraised value in
excess of $125,000, 97.15 percent of
the appraised value of the property; or
[(IV) notwithstanding subclauses (II)
and (III), in the case of a mortgage
for a property with an appraised value
in excess of $50,000 that is located in
an area of the State for which the
average closing cost exceeds 2.10
percent of the average, for the State,
of the sale price of properties located
in the State for which mortgages have
been executed, 97.75 percent of the
appraised value of the property.
[(B) Average closing cost.--For purposes of
this paragraph, the term ``average closing
cost'' means, with respect to a State, the
average, for mortgages executed for properties
that are located within the State, of the total
amounts (as determined by the Secretary) of
initial service charges, appraisal, inspection,
and other fees (as the Secretary shall approve)
that are paid in connection with such
mortgages.]
(10) Reduced downpayment requirements for teachers
and uniformed municipal employees.--
(A) In general.--Notwithstanding paragraph
(2), in the case of a mortgage described in
subparagraph (B)--
(i) the mortgage shall involve a
principal obligation in an amount that
does not exceed the sum of 99 percent
of the appraised value of the property
and the total amount of initial service
charges, appraisal, inspection, and
other fees (as the Secretary shall
approve) paid in connection with the
mortgage;
(ii) no other provision of this
subsection limiting the principal
obligation of the mortgage based upon a
percentage of the appraised value of
the property subject to the mortgage
shall apply; and
(iii) the matter in paragraph (9)
that precedes the first proviso shall
not apply and the mortgage shall be
executed by a mortgagor who shall have
paid on account of the property at
least 1 percent of the cost of
acquisition (as determined by the
Secretary) in cash or its equivalent.
(B) Mortgages covered.--A mortgage described
in this subparagraph is a mortgage--
(i) under which the mortgagor is an
individual who--
(I) is employed on a full-
time basis as (aa) a teacher or
administrator in a public or
private school that provides
elementary or secondary
education, as determined under
State law, except that
secondary education shall not
include any education beyond
grade 12, or (bb) a public
safety officer (as such term is
defined in section 1204 of the
Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C.
3796b), except that such term
shall not include any officer
serving a public agency of the
Federal Government); and
(II) has not, during the 12-
month period ending upon the
insurance of the mortgage, had
any present ownership interest
in a principal residence
located in the jurisdiction
described in clause (ii); and
(ii) made for a property that is
located within the jurisdiction of--
(I) in the case of a mortgage
of a mortgagor described in
clause (i)(I)(aa), the local
educational agency (as such
term is defined in section
14101 of the Elementary and
Secondary Education Act of 1965
(20 U.S.C. 8801)) for the
school in which the mortgagor
is employed (or, in the case of
a mortgagor employed in a
private school, the local
educational agency having
jurisdiction for the area in
which the private school is
located); or
(II) in the case of a
mortgage of a mortgagor
described in clause (i)(I)(bb),
the jurisdiction served by the
public law enforcement agency,
firefighting agency, or rescue
or ambulance agency that
employs the mortgagor.
(c)(1) * * *
(2) [Notwithstanding] Except as provided in paragraph (3)
and notwithstanding any other provision of this section, each
mortgage secured by a 1- to 4-family dwelling and executed on
or after October 1, 1994, that is an obligation of the Mutual
Mortgage Insurance Fund or of the General Insurance Fund
pursuant to subsection (v), shall be subject to the following
requirements:
(A) * * *
* * * * * * *
(3) Deferral and reduction of up-front premium.--In the case
of any mortgage described in subsection (b)(10)(B):
(A) Paragraph (2)(A) of this subsection (relating to
collection of up-front premium payments) shall not
apply.
(B) If, at any time during the 5-year period
beginning on the date of the insurance of the mortgage,
the mortgagor ceases to be employed as described in
subsection (b)(10)(B)(i)(I) or pays the principal
obligation of the mortgage in full, the Secretary shall
at such time collect a single premium payment in an
amount equal to the amount of the single premium
payment that, but for this paragraph, would have been
required under paragraph (2)(A) of this subsection with
respect to the mortgage, as reduced by 20 percent of
such amount for each successive 12-month period
completed during such 5-year period before such
cessation or prepayment occurs.
* * * * * * *
(f) Disclosure of Other Mortgage Products.--In conjunction
with any loan insured under this section, an original lender
shall provide to each prospective borrower a disclosure notice
thatprovides a one page analysis of mortgage products offered
by that lender and for which the borrower would qualify. This notice
shall include: (i) a generic analysis comparing the note rate (and
associated interest payments), insurance premiums, and other costs and
fees that would be due over the life of the loan for a loan insured by
the Secretary under this subsection with the note rates, insurance
premiums (if applicable), and other costs and fees that would be
expected to be due if the mortgagor obtained instead other mortgage
products offered by the lender and for which the borrower would qualify
with a similar loan-to-value ratio in connection with a conventional
mortgage (as that term is used in section 305(a)(2) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) or section
302(b)(2) of the Federal National Mortgage Association Charter Act (12
U.S.C. 1717(b)(2)), as applicable), assuming prevailing interest rates;
and (ii) a statement regarding when the mortgagor's requirement to pay
the mortgage insurance premiums for a mortgage insured under this
section would terminate or a statement that the requirement will
terminate only if the mortgage is refinanced, paid off, or otherwise
terminated.
* * * * * * *
(k)(1) * * *
* * * * * * *
(7) Prevention of fraud.--To prevent fraud under the program
for loan insurance authorized under this subsection, the
Secretary shall, by regulation, take the following actions:
(A) Prohibition of identity of interest.--The
Secretary shall prohibit any identity-of-interest, as
such term is defined by the Secretary, between any of
the following parties involved in a loan insured under
this subsection: the borrower (including, in the case
of a borrower that is a nonprofit organization, any
member of the board of directors or the staff of the
organization), the lender, any consultant, any real
estate agent, any property inspector, and any
appraiser. Nothing in this subparagraph may be
construed to prohibit or restrict, or authorize the
Secretary to prohibit or restrict, the functioning of a
affiliated business arrangement that complies with the
requirements under section 8(c)(4) of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C.
2607(c)(4)).
(B) Nonprofit participation.--The Secretary shall
establish minimum standards for a nonprofit
organization to participate in the program, which shall
include--
(i) requiring such an organization to
disclose to the Secretary its taxpayer
identification number and evidence sufficient
to indicate that the organization is an
organization described in section 501(c) of the
Internal Revenue Code of 1986 that is exempt
from taxation under subtitle A of such Code;
(ii) requiring that the board of directors of
such an organization be comprised only of
individuals who do not receive any compensation
or other thing of value by reason of their
service on the board and who have no personal
financial interest in the rehabilitation
project of the organization that is financed
with the loan insured under this subsection;
(iii) requiring such an organization to
submit to the Secretary financial statements of
the organization for the most recent 2 years,
which have been prepared by a party that is
unaffiliated with the organization and is
qualified to prepare financial statements;
(iv) limiting to 10 the number of loans that
are insured under this subsection, made to any
single such organization, and, at any one time,
have an outstanding balance of principal or
interest, except that the Secretary may
increase such numerical limitation on a case-
by-case basis for good cause shown; and
(v) requiring such an organization to have
been certified by the Secretary as meeting the
requirements under this subsection and
otherwise eligible to participate in the
program not more than 2 years before obtaining
a loan insured under this section.
(C) Completion of work.--The Secretary shall prohibit
any lender making a loan insured under this subsection
from disbursing the final payment of loan proceeds
unless the lender has received affirmation, from the
borrower under the loan, both in writing and pursuant
to an interview in person or over the telephone, that
the rehabilitation activities financed by the loan have
been satisfactorily completed.
(D) Consultant standards.--The Secretary shall
require that any consultant, as such term is defined by
the Secretary, who is involved in a home inspection,
site visit, or preparation of bids with respect to any
loan insured under this section shall meet such
standards established by the Secretary to ensure
accurate inspections and preparation of bids.
(E) Contractor qualification.--The Secretary shall
require, in the case of any loan that is insured under
this subsection and involves rehabilitation with a cost
of $25,000 or more, that the contractor or other person
performing or supervising the rehabilitation activities
financed by the loan shall--
(i) be certified by a nationally recognized
organization as meeting industry standards for
quality of workmanship, training, and
continuing education, including financial
management;
(ii) be licensed to conduct such activities
by the State or unit of general local
government in which the rehabilitation
activities are being completed; or
(iii) be bonded or provide such equivalent
protection, as the Secretary may require.
* * * * * * *
payment of insurance
Sec. 204. (a) * * *
* * * * * * *
(h) Disposition of Assets in Revitalization Areas.--
(1) * * *
* * * * * * *
(4) Preference for sale to preferred purchasers.--The
Secretary shall provide a preference, among prospective
purchasers of eligible assets, for sale of such assets
to any purchaser who--
(A) * * *
* * * * * * *
(B) in making a purchase under the program
under this subsection--
(i) * * *
(ii) purchases all interests of the
Secretary in all assets of the
Secretary that, at any time during the
period which shall be set forth in the
sale agreement required under paragraph
[(7)] (8)--
* * * * * * *
(5) Agreements Required for Purchase.--
(A) * * *
* * * * * * *
(B) Non-preferred purchasers.--Under the
program under this subsection, the Secretary
may sell an eligible asset to a purchaser who
is not a preferred purchaser only pursuant to a
binding agreement by the purchaser that
complies with the following requirements:
(i) The purchaser has agreed to meet
specific performance goals established
by the Secretary for home ownership of
the asset properties for the eligible
assets purchased by the purchaser,
except that the Secretary may, by
including a provision in the sale
agreement required under paragraph
[(7)] (8), provide for a lower rate of
home ownership in sales involving
exceptional circumstances.
* * * * * * *
(6) Discount for preferred purchasers.--
(A) In general.--For the purpose of providing
a public purpose discount for the bulk sales of
eligible assets made under the program under
this subsection by preferred purchasers, each
eligible asset sold through the program under
this subsection to a preferred purchaser shall
be sold at a price that is discounted from the
value of the asset, as based on the appraised
value of the asset property (as such term is
defined in paragraph [(8)] (9)).
* * * * * * *
(7) 50 percent discount for teachers purchasing
properties that are eligible assets.--
(A) Discount.--A property that is an eligible
asset and is sold, during fiscal years 2000
through 2004, to a teacher for use in
accordance with subparagraph (B) shall be sold
at a price that is equal to 50 percent of the
appraised value of the eligible property (as
determined in accordance with paragraph
(6)(B)). In the case of a property eligible for
both a discount under this paragraph and a
discount under paragraph (6), the discount
under paragraph (6) shall not apply.
(B) Primary residence.--An eligible property
sold pursuant to a discount under this
paragraph shall be used, for not less than the
3-year period beginning upon such sale, as the
primary residence of a teacher.
(C) Sale methods.--The Secretary may sell an
eligible property pursuant to a discount under
this paragraph--
(i) to a unit of general local
government or nonprofit organization
(pursuant to paragraph (4) or
otherwise), for resale or transfer to a
teacher; or
(ii) directly to a purchaser who is a
teacher.
(D) Resale.--In the case of any purchase by a
unit of general local government or nonprofit
organization of an eligible property sold at a
discounted price under this paragraph, the sale
agreement under paragraph (8) shall--
(i) require the purchasing unit of
general local government or nonprofit
organization to provide the full
benefit of the discount to the teacher
obtaining the property; and
(ii) in the case of a purchase
involving multiple eligible assets, any
of which is such an eligible property,
designate the specific eligible
property or properties to be subject to
the requirements of subparagraph (B).
(E) Mortgage downpayment assistance.--If a
teacher purchases an eligible property pursuant
to a discounted sale price under this paragraph
and finances such purchase through a mortgage
insured under this title, notwithstanding any
provision of section 203 the downpayment on
such mortgage shall be $100.
(F) Prevention of undue profit.--The
Secretary shall issue regulations to prevent
undue profit from the resale of eligible
properties in violation of the requirement
under subparagraph (B).
(G) Awareness program.--From funds made
available for salaries and expenses for the
Office of Policy Support of the Department of
Housing and Urban Development, each field
office of the Department shall make available
to elementary schools and secondary schools
within the jurisdiction of the field office and
to the public--
(i) a list of eligible properties
located within the jurisdiction of the
field office that are available for
purchase by teachers under this
paragraph; and
(ii) other information designed to
make such teachers and the public aware
of the discount and downpayment
assistance available under this
paragraph.
(H) Definitions.--For the purposes of this
paragraph, the following definitions shall
apply:
``(i) The terms `elementary school'
and `secondary school' have the
meanings given such terms in section
14101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801),
except that, for purposes ofthis
paragraph, elementary education (as used in such section) shall include
pre-Kindergarten education.
``(ii) The term `eligible property'
means an eligible asset described in
paragraph (2)(A) of this subsection.
``(iii) The term `teacher' means an
individual who is employed on a full-
time basis, in an elementary or
secondary school, as a State-certified
classroom teacher or administrator.''.
[(7)] (8) Sale agreement.--The Secretary may sell an
eligible asset under this subsection only pursuant to a
sale agreement entered into under this paragraph with
the purchaser, which shall include the following
provisions:
(A) * * *
* * * * * * *
[(8)] (9) Definitions.--For purposes of this
subsection, the following definitions shall apply:
(A) * * *
* * * * * * *
[(9)] (10) Secretary's discretion.--The Secretary
shall have the authority to implement and administer
the program under this subsection in such manner as the
Secretary may determine. The Secretary may, in the sole
discretion of the Secretary, enter into contracts to
provide for the proper administration of the program
with such public or nonprofit entities as the Secretary
determines are qualified.
[(10)] (11) Regulations.--The Secretary shall issue
regulations to implement the program under this
subsection through rulemaking in accordance with the
procedures established under section 553 of title 5,
United States Code, regarding substantive rules. Such
regulations shall take effect not later than the
expiration of the 2-year period beginning on the date
of the enactment of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1999.
* * * * * * *
graduated payment and indexed mortgages
Sec. 245. (a) The Secretary may insure under any provision
of this title mortgages and loans with provisions of varying
rates of amortization corresponding to anticipated variations
in family income or with monthly payments and outstanding
balances adjusted by a percentage change in a selected price
index to the extent he determines such mortgages or loans (1)
have promise for expanding housing opportunities or meet
special needs, (2) can be developed to include any safeguards
for mortgagors or purchasers that may be necessary to offset
special risks of such mortgages, and (3) have a potential for
acceptance in the private market. Notwithstanding any other
provision of this title, except as provided in subsections (b)
and (c) of this section, the principal obligation (including
all interest to be deferred and added to principal) of a
mortgage insured pursuant to this section may not exceed 97 per
centum of the appraised value of the property covered by the
mortgage as of the date the mortgage is accepted for
insurance[, or if the mortgagor is a veteran and the mortgage
is to be insured in accordance with the provisions of section
203 of this title, such higher percentage of appraised value as
is provided for purposes of determining the maximum mortgage
amount eligible for insurance under section 203(b)(2) in the
case of veterans].
(b) Notwithstanding the provisions of subsection (a), the
Secretary may insure under any provision of this title a
mortgage or loan which meets the requirements of the first
sentence of subsection (a) and which has provisions for varying
rates of amortization if the Secretary determines--
(1) * * *
* * * * * * *
(3) the principal obligation of the mortgage or loan
thereafter (including all interest to be deferred and
added to principal) will not at any time be scheduled
to exceed 97 per centum[, or, if the mortgagor is a
veteran, such higher percentage as is provided under
section 203(b)(2) for veterans], of the projected value
of the property; and
* * * * * * *
[reinsurance contracts]
risk-sharing demonstration
Sec. 249. (a) The purpose of this section is to authorize a
demonstration mortgage [reinsurance] risk-sharing program
designed to test the feasibility of entering into [reinsurance]
risk-sharing contracts with [private mortgage insurers] insured
community development financial institutions in order to reduce
Government risk and administrative costs, and to speed mortgage
processing. The Secretary shall limit the demonstration under
this section to not more than [two] 4 administrative regions of
the Department of Housing and Urban Development, and shall
assure that the program is in the financial interest of the
Government and will not result in loss of employment by any
employees of the Department of Housing and Urban Development
before [March 15, 1988] the expiration of the 5-year period
beginning on the date of the enactment of the American
Homeownership and Economic Opportunity Act of 2000. The
aggregate number of mortgages insured under this section in any
administrative region of the Department of Housing and Urban
Development in any fiscal year may not exceed 10 percent of the
aggregate number of mortgages and loans insured by the
Secretary under this title in such region during the preceding
fiscal year.
(b) Notwithstanding any other provision of this Act
inconsistent with this section, the Secretary is authorized to
provide mortgage insurance with respect to one- to four-family
dwellings under sections 203(b), 234, and 245 through
[reinsurance] risk-sharing contracts with [private mortgage
insurance companies which have been determined to be qualified
insurers under section 302(b)(2)(C)] insured community
development financial institutions. Such contracts shall
require [private mortgage insurance companies] insured
community development financial institutions to--
[(1) assume a percentage of loss on any mortgage
insured pursuant to section 203(b), 234, or 245
covering a one- to four-family dwelling, which
percentage of loss shall be set forth in the
reinsurance contract; and]
(1) assume the first loss on any mortgage insured
pursuant to section 203(b), 234, or 245 that covers a
one- to four-family dwelling and is included in the
program under this section, up to the percentage of
loss that is set forth in the risk-sharing contract;
(2) [carry out (under appropriate delegation) such]
delegate underwriting, credit approval, appraisal,
inspection, commitment, claims processing, property
disposition, or other [function] functions as the
Secretary pursuant to regulations, shall approve as
consistent with the purposes of this section.
(c) Any contract [of reinsurance] for risk-sharing under
this section shall contain such provisions relating to the
sharing of premiums on a sound actuarial basis, establishment
of [insurance reserves] loss reserves, manner of calculating
claims on [such insurance] such reserves, conditions with
respect to foreclosure, handling and disposition of property
prior to claim or settlement, right of assignees, and other
similar matters as the Secretary may prescribe pursuant to
regulations. Pursuant to a contract under this section, a
[private mortgage insurance company] insured community
development financial institution shall endorse loans for
insurance and take such other actions on behalf of the
Secretary and in the Secretary's name as the Secretary may
authorize.
(d) The Secretary shall require any [private mortgage
insurance company] insured community development financial
institution participating in the program under this section to
provide [reinsurance] risk-sharing for those mortgages offered
by the Secretary for inclusion in the program.
(e) Insured Community Development Financial Institutions.--
For purposes of this section, the term ``insured community
development financial institution'' means a community
development financial institution, as such term is defined in
section 103 of Reigle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4702) that is an insured
depository institution (as such term is defined in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an
insured credit union (as such term is defined in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752)).
* * * * * * *
adjustable rate single family mortgages
Sec. 251. (a) In General.--The Secretary may insure under
any provision of this title a mortgage involving property upon
which there is located a dwelling designed principally for
occupancy by one to four families, where the mortgage provides
for periodic adjustments by the mortgagee in the effective rate
of interest charged. Such interest rate adjustments may be
accomplished through adjustments in the monthly payment amount,
the outstanding principal balance, or the mortgage term, or a
combination of these factors, except that in no case may any
extension of a mortgage term result in a total term in excess
of 40 years. Adjustments in the effective rate of interest
shall correspond to a specified national interest rate index
approved in regulations by the Secretary, information on which
is readily accessible to the mortgagors from generally
available published sources. Adjustments in the effective rate
of interest shall (1) be made on an annual basis; (2) be
limited, with respect to any single interest rate increase, to
no more than 1 percent on the outstanding loan balance; and (3)
be limited to a maximum increase of 5 percentage points above
the initial contract interest rate over the term of the
mortgage.
[(b) The Secretary shall issue regulations requiring that
the mortgagee make available to the mortgagor, at the time of
loan application, a written explanation of the features of the
adjustable rate mortgage, including a hypothetical payment
schedule that displays the maximum potential increases in
monthly payments to the mortgagor over the first 5 years of the
mortgage term.]
(b) Disclosure.--In the case of any loan application for a
mortgage to be insured under any provision of this section, the
Secretary shall require that the prospective mortgagee for the
mortgage shall, at the time of loan application, make available
to the prospective mortgagor a written explanation of the
features of an adjustable rate mortgage consistent with the
disclosure requirements applicable to variable rate mortgages
secured by a principal dwelling under the Truth in Lending Act
(15 U.S.C. 1601 et seq.).
(c) Limitation on Insurance Authority.--The aggregate
number of mortgages and loans insured under this section in any
fiscal year may not exceed 30 percent of the aggregate number
of mortgages and loans insured by the Secretary under this
title during the preceding fiscal year.
(d) Hybrid ARMs.--The Secretary may insure under this
subsection a mortgage that--
(1) has an effective rate of interest that shall be--
(A) fixed for a period of not less than the
first 3 years of the mortgage term;
(B) initially adjusted by the mortgagee upon
the expiration of such period and annually
thereafter; and
(C) in the case of the initial interest rate
adjustment, shall be subject to the limitation
under clause (2) of the last sentence of
subsection (a) (relating to prohibiting annual
increases of more than 1 percent) only if the
interest rate remains fixed for 5 or fewer
years; and
(2) otherwise meets the requirements for insurance
under subsection (a) that are not inconsistent with the
requirements under paragraph (1) of this subsection.
* * * * * * *
insurance of home equity conversion mortgages for elderly homeowners
Sec. 255. (a) * * *
* * * * * * *
(b) Definitions.--For purposes of this section:
(1) * * *
(2) The terms [``mortgage'',] ``mortgagee'',
``mortgagor'', and ``State'' have the meanings given
such terms in section 201.
* * * * * * *
(4) Mortgage.--The term ``mortgage'' means a first
mortgage or first lien on real estate, in fee simple,
on all stock allocated to a dwelling in a residential
cooperative housing corporation, or on a leasehold--
(A) under a lease for not less than 99 years
that is renewable; or
(B) under a lease having a period of not less
than 10 years to run beyond the maturity date
of the mortgage.
(5) First mortgage.--The term ``first mortgage''
means such classes of first liens as are commonly given
to secure advances on, or the unpaid purchase price of,
real estate or all stock allocated to a dwelling unit
in a residential cooperative housing corporation, under
the laws of the State in which the real estate or
dwelling unit is located, together with the credit
instruments, if any, secured thereby.
* * * * * * *
(k) Insurance Authority for Refinancings.--
(1) In general.--The Secretary may, upon application
by a mortgagee, insure under this subsection any
mortgage given to refinance an existing home equity
conversion mortgage insured under this section.
(2) Anti-churning disclosure.--The Secretary shall,
by regulation, require that the mortgagee of a mortgage
insured under this subsection, provide to the
mortgagor, within an appropriate time period and in a
manner established in such regulations, a good faith
estimate of: (A) the total cost of the refinancing; and
(B) the increase in the mortgagor's principal limit as
measured by the estimated initial principal limit on
the mortgage to be insured under this subsection less
the current principal limit on the home equity
conversion mortgage that is being refinanced and
insured under this subsection.
(3) Waiver of counseling requirement.--The mortgagor
under a mortgage insured under this subsection may
waive the applicability, with respect to such mortgage,
of the requirements under subsection (d)(2)(B)
(relating to third party counseling), but only if--
(A) the mortgagor has received the disclosure
required under paragraph (2);
(B) the increase in the principal limit
described in paragraph (2) exceeds the amount
of the total cost of refinancing (as described
in such paragraph) by an amount to be
determined by the Secretary; and
(C) the time between the closing of the
original home equity conversion mortgage that
is refinanced through the mortgage insured
under this subsection and the application for a
refinancing mortgage insured under this
subsection does not exceed 5 years.
(4) Credit for premiums paid.--Notwithstanding
section 203(c)(2)(A), the Secretary may reduce the
amount of the single premium payment otherwise
collected under such section at the time of the
insurance of a mortgage refinanced and insured under
this subsection. The amount of the single premium for
mortgages refinanced under this subsection shall be
determined by the Secretary based on the actuarial
study required under paragraph (5).
(5) Actuarial study.--Not later than 180 days after
the date of the enactment of the American Homeownership
and Economic Opportunity Act of 2000, the Secretary
shall conduct an actuarial analysis to determine the
adequacy of the insurance premiums collected under the
program under this subsection with respect to--
(A) a reduction in the single premium payment
collected at the time of the insurance of a
mortgage refinanced and insured under this
subsection;
(B) the establishment of a single national
limit on the benefits of insurance under
subsection (g) (relating to limitation on
insurance authority); and
(C) the combined effect of reduced insurance
premiums and a single national limitation on
insurance authority.
(6) Fees.--The Secretary may establish a limit on the
origination fee that may be charged to a mortgagor
under a mortgage insured under this subsection, except
that such limitation shall provide that the origination
fee may be fully financed with the mortgage and shall
include any fees paid to correspondent mortgagees
approved by the Secretary. The Secretary shall prohibit
the charging of any broker fees in connection with
mortgages insured under this subsection.
(l) Waiver of Up-Front Premiums.--
(1) Mortgages to fund long-term care insurance.--In
the case of any mortgage insured under this section
under which the total amount (except as provided in
paragraph (3)) of all future payments described in
subsection (b)(3) will be used only for costs of a
qualified long-term care insurance contract (as such
term is defined in section 7702B of the Internal
Revenue Code of 1986 (26 U.S.C. 7702B)) that covers the
mortgagor or members of the household residing in the
property that is subject to the mortgage,
notwithstanding section 203(c)(2), the Secretary shall
not charge or collect the single premium payment
otherwise required under subparagraph (A) of such
section to be paid at the time of insurance.
(2) Mortgages to fund health care costs.--In the case
of any mortgage insured under this section under which
the future payments described in subsection (b)(3) will
be used only for costs for health care services (as
such term is defined by the Secretary) for the
mortgagor or members of the household residing in the
property that is subject to the mortgage and comply
with limitations on such payments, as shall be
established by the Secretary and based upon the
purposes of this subsection and the accumulated equity
of the mortgagor in the property, notwithstanding
section 203(c)(2), the Secretary shall not charge or
collect the single premium payment otherwise required
under subparagraph (A) of such section to be paid at
the time of insurance.
(3) Authority to refinance existing mortgage and
finance closing costs.--A mortgage described in
paragraphs (1) or (2) may provide financing of amounts
that are used to satisfy outstanding mortgage
obligations (in accordance with such limitations as the
Secretary shall prescribe) any amounts used for initial
service charges, appraisal, inspection, and other fees
(as approved by the Secretary) in connection with such
mortgage, and the amount of future payments described
in subsection (b)(3) under the mortgage shall be
reduced accordingly.
[(k)] (m) Funding for Counseling and Consumer Education and
Outreach.--Of any amounts made available for any of fiscal
years 2000 through 2003 for housing counseling under section
106 of the Housing and Urban Development Act of 1968, up to a
total of $1,000,000 shall be available to the Secretary in each
such fiscal year, in such amounts as the Secretary determines
appropriate, for the following purposes in connection with home
equity conversion mortgages insured under this section:
(1) Counseling.--For housing counseling authorized by
section 106 of the Housing and Urban Development Act of
1968.
(2) Consumer education.--For transfer to the
departmental salaries and expenses account for consumer
education and outreach activities.
* * * * * * *
----------
SECTION 8 OF THE UNITED STATES HOUSING ACT OF 1937
lower income housing assistance
Sec. 8. (a) * * *
* * * * * * *
(y) Homeownership Option.--
(1) * * *
* * * * * * *
(7) Downpayment assistance.--
(A) Authority.--A public housing agency may,
in lieu of providing monthly assistance
payments under this subsection on behalf of a
family eligible for such assistance and at the
discretion of the public housing agency,
provide assistance for the family in the form
of a single grant to be used only as a
contribution toward the downpayment required in
connection with the purchase of a dwelling for
fiscal year 2000 and each fiscal year
thereafter to the extent provided in advance in
appropriations Acts.
(B) Amount.--The amount of a downpayment
grant on behalf of an assisted family may not
exceed the amount that is equal to the sum of
the assistance payments that would be made
during the first year of assistance on behalf
of the family, based upon the income of the
family at the time the grant is to be made.
[(7)] (8) Definition of first-time homeowner.--For
purposes of this subsection, the term ``first-time
homeowner'' means--
(A) a family, no member of which has had a
present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives
assistance for homeownership under this
subsection; and
(B) any other family, as the Secretary may
prescribe.
* * * * * * *
----------
CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT
* * * * * * *
SEC. 104. DEFINITIONS.
As used in this title and in title II:
(1) * * *
* * * * * * *
(19) The term ``metropolitan city'' has the meaning
given the term in section 102(a)(4) of the Housing and
Community Development Act of 1974 (42 U.S.C.
5302(a)(4)). The term ``city'' shall have the meaning
given such term in section 102(a)(5)(B) of such Act. A
town or township that is classified as a city by reason
of subclause (II) of section 102(a)(5)(A)(B)(iii) of
such Act shall be treated, notwithstanding section
102(d)(1) of such Act, as an entity separate from the
urban county in which it is located for purposes of
allocation of amounts under section 217 of this Act to
units of general local government from amounts made
available for any fiscal year beginning after the date
of the enactment of the American Homeownership and
Economic Opportunity Act of 2000.
* * * * * * *
[(23)] (22) The term ``to demonstrate to the
Secretary'' means to submit to the Secretary a written
assertion together with supporting evidence that, in
the determination of the Secretary, supports the
accuracy of the assertion.
[(24)] (23) The term ``insular area'' means any of
the following: Guam, the Northern Mariana Islands, the
Virgin Islands, and American Samoa.
* * * * * * *
(26) The term ``limited equity cooperative'' means a
cooperative housing corporation which, in a manner
determined by the Secretary to be acceptable, restricts
income eligibility of purchasers of membership shares
of stock in the cooperative corporation or the initial
and resale price of such shares, or both, so that the
shares remain available and affordable to low-income
families.
(27) The term ``mutual housing association'' means a
private entity that--
(A) is organized under State law;
(B) is described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from
taxation under section 501(a) of such Code;
(C) owns, manages, and continuously develops
affordable housing by providing long-term
housing for low- and moderate-income families;
(D) provides that eligible families who
purchase membership interests in the
association shall have a right to residence in
a dwelling unit in the housing during the
period that they hold such membership interest;
and
(E) provides for the residents of such
housing to participate in the ongoing
management of the housing.
(28) The term ``moderate income families'' means
families whose incomes do not exceed the median income
for the area, as determined by the Secretary with
adjustments for smaller and larger families, except
that the Secretary may establish income ceilings higher
or lower than the median income for the area on the
basis of the Secretary's findings that such variations
are necessary because of prevailing levels of
construction costs or fair market rents, or unusually
high or low family incomes.
* * * * * * *
[SEC. 106. CERTIFICATION.
[The Secretary shall, by regulation or otherwise, as deemed
by the Secretary to be appropriate, require any application for
housing assistance under title II of this Act, assistance under
the Housing and Community Development Act of 1974, or
assistance under the Stewart B. McKinney Homeless Assistance
Act, to contain or be accompanied by a certification by an
appropriate State or local public official that the proposed
housing activities are consistent with the housing strategy of
the jurisdiction to be served.]
SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING AND
DEVELOPMENT PROGRAMS.
(a) Requirement.--The Secretary shall, by regulation, provide
for jurisdictions to comply with the planning and application
requirements under the covered programs under subsection (b) by
submitting to the Secretary, for a program year, a single
consolidated submission under this section that complies with
the requirements for planning and application submissions under
the laws relating to the covered programs and shall serve, for
the jurisdiction, as the planning document and an application
for funding under the covered programs.
(b) Covered Programs.--The covered programs under this
subsection are the following programs:
(1) The HOME investment partnerships program under
title II of this Act (42 U.S.C. 12721 et seq.).
(2) The community development block grant program
under title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.).
(3) The economic development initiative program under
section 108(q) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5308(q)).
(4) The emergency shelter grants program under
subtitle B of title IV of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11371 et seq.).
(5) The housing opportunities for persons with AIDS
program under subtitle D of title VIII of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12901 et seq.).
(c) Program Year.--In establishing requirements for a
consolidated submission under this section, the Secretary shall
provide for a consolidated program year, which shall comply
with the various application and review deadlines under the
covered programs.
(d) Adequacy of Existing Regulations.--The regulations of the
Secretary relating to consolidated submissions for community
planning and development programs, part 91 of title 24, Code of
Federal Regulations, as in effect on March 1, 1999, shall be
considered to be sufficient to comply with this section, except
to the extent that the program referred to in paragraph (3) of
subsection (b) is not covered by such regulations.
(e) Consistency.--The Secretary shall, by regulation or
otherwise, as deemed by the Secretary to be appropriate,
require any application for housing assistance under title II
of this Act, assistance under the Housing and Community
Development Act of 1974, or assistance under the Stewart B.
McKinney Homeless Assistance Act, to contain or be accompanied
by a certification by an appropriate State or local public
official that the proposed housing activities are consistent
with the housing strategy of the jurisdiction to be served.
* * * * * * *
TITLE II--INVESTMENT IN AFFORDABLE HOUSING
* * * * * * *
SEC. 202. FINDINGS.
The Congress finds that--
(1) * * *
* * * * * * *
(10) an increasing number of States and local
governments have been successful in producing cost-
effective low-income and moderate-income housing by
working in partnership with the private sector,
including nonprofit community development corporations,
community action agencies, neighborhood housing
services corporations, trade unions, groups sponsored
by religious organizations, limited equity
cooperatives, mutual housing associations, and other
tenant organizations;
* * * * * * *
[SEC. 205. AUTHORIZATION.
[There are authorized to be appropriated to carry out this
title $2,086,000,000 for fiscal year 1993, and $2,173,612,000
for fiscal year 1994, of which--
[(1) not more than $14,000,000 for fiscal year 1993,
and $25,000,000 for fiscal year 1994, shall be for
community housing partnership activities authorized
under section 233; and
[(2) not more than $11,000,000 for fiscal year 1993,
and $22,000,000 for fiscal year 1994, shall be for
activities in support of State and local housing
strategies authorized under subtitle C.]
SEC. 205. AUTHORIZATION.
(a) In General.--There is authorized to be appropriated to
carry out this title $1,650,000,000 for fiscal year 2001 and
such sums as may be necessary for each of fiscal years 2002,
2003, 2004, and 2005, of which--
(1) not more than $25,000,000 in each such fiscal
year shall be for community housing partnership
activities authorized under section 233; and
(2) not more than $15,000,000 in each such fiscal
year shall be for activities in support of State and
local housing strategies authorized under subtitle C,
of which, in each of fiscal years 2001 and 2002,
$3,000,000 shall be for funding grants under section
246.
(b) Prohibition of Set-Asides.--Except as provided in
subsection (a) of this section and section 217(a)(3), amounts
appropriated pursuant to subsection (a) of this section or
otherwise to carry out this title shall be used only for
formula-based grants allocated pursuant to section 217 and may
not be otherwise used unless the provision of law providing for
such other use specifically refers to this subsection and
specifically states that such provision modifies or supersedes
the provisions of this subsection.
* * * * * * *
SEC. 212. ELIGIBLE USES OF INVESTMENT.
(a) * * *
* * * * * * *
(b) Investments.--Participating jurisdictions shall have
discretion to invest funds made available under this subtitle
as equity investments, interest-bearing loans or advances,
noninterest-bearing loans or advances, interest subsidies,
advances to provide reserves for loan pools or to provide
partial loan guarantees, or other forms of assistance that the
Secretary has determined to be consistent with the purposes of
this title. Each participating jurisdiction shall have the
right to establish the terms of assistance. Notwithstanding the
preceding sentence, in the case of homeownership assistance for
residences of owners described in section 215(b)(2)(B), funds
made available under this subtitle may only be invested (A) to
provide amounts for downpayments on mortgages, (B) to pay
reasonable closing costs normally associated with the purchase
of a residence, (C) to obtain pre- or post-purchase counseling
relating to the financial and other obligations of
homeownership, or (D) to subsidize mortgage interest rates.
(c) Administrative Costs.--In each fiscal year, each
participating jurisdiction may use not more than 10 percent of
the funds made available under this subtitle to the
jurisdiction for such year for any administrative and planning
costs of the jurisdiction in carrying out this subtitle,
including the costs of the salaries of persons engaged in
administering and managing activities assisted with funds made
available under this subtitle. A participating jurisdiction may
use amounts made available under this subsection for a fiscal
year for administrative and planning costs by amortizing the
costs of administration and planning activities under this
subtitle over the entire duration of such activities.
* * * * * * *
SEC. 214. INCOME TARGETING.
Each participating jurisdiction shall invest funds made
available under this subtitle within each fiscal year so that--
(1) * * *
* * * * * * *
(2) with respect to homeownership assistance, 100
percent of such funds are invested with respect to
dwelling units that are occupied by households that
qualify as low-income families or families described in
section 215(b)(2)(B); and
* * * * * * *
SEC. 215. QUALIFICATION AS AFFORDABLE HOUSING.
(a) Rental Housing.--
(1) * * *
* * * * * * *
(6) Limited equity cooperatives and mutual housing
associations.--Housing that is owned by a limited
equity cooperative or a mutual housing association may
be considered by a participating jurisdiction to be
rental housing for purposes of this title to the extent
that ownership or membership in such a cooperative or
association, respectively, constitutes rental of a
dwelling under State or local laws.
(7) Waiver of qualifying rent.--
(A) In general.--For the purpose of providing
affordable housing appropriate for families
described in subparagraph (B), the Secretary
may, upon the application of the project owner,
waive the applicability of subparagraph (A) of
paragraph (1) with respect to a dwelling unit
if--
(i) the unit is occupied by such a
family, on whose behalf tenant-based
assistance is provided under section 8
of the United States Housing Act of
1937 (42 U.S.C. 1437f);
(ii) the rent for the unit is not
greater than the existing fair market
rent for comparable units in the area,
as established by the Secretary under
section 8 of the United States Housing
Act of 1937; and
(iii) the Secretary determines that
the waiver, together with waivers under
this paragraph for other dwelling units
in the project, will result in the use
of amounts described in clause (iii) in
an effective manner that will improve
the provision of affordable housing for
such families.
(B) Eligible families.--A family described in
this subparagraph is a family that consists of
at least one elderly person (who is the head of
household) and one or more of such person's
grand children, great grandchildren, great
nieces, great nephews, or great great
grandchildren (as defined by the Secretary),
but does not include any parent of such
grandchildren, great grandchildren, great
nieces, great nephews, or great great
grandchildren. Such term includes any such
grandchildren, great grandchildren, great
nieces, great nephews, or great great
grandchildren who have been legally adopted by
such elderly person.
(b) Homeownership.--Housing that is for homeownership shall
qualify as affordable housing under this title only if the
housing--
(1) * * *
[(2) is the principal residence of an owner whose
family qualifies as a low-income family--
[(A) in the case of a contract to purchase
existing housing, at the time of purchase;
[(B) in the case of a lease-purchase
agreement for existing housing or for housing
to be constructed, at the time the agreement is
signed; or
[(C) in the case of a contract to purchase
housing to be constructed, at the time the
contract is signed;]
(2) is the principal residence of an owner who--
(A) is a member of a family that qualifies as
a low-income family--
(i) in the case of a contract to
purchase existing housing, at the time
of purchase;
(ii) in the case of a lease-purchase
agreement for existing housing or for
housing to be constructed, at the time
the agreement is signed; or
(iii) in the case of a contract to
purchase housing to be constructed, at
the time the contract is signed; or
(B)(i) is a uniformed employee (which shall
include policemen, firemen, and sanitation and
other maintenance workers) or a teacher who is
an employee, of the participating jurisdiction
(or an agency or school district serving such
jurisdiction) that is investing funds made
available under this subtitle to support
homeownership of the residence; and
(ii) is a member of a family whose income, at
the time referred to in clause (i), (ii), or
(iii) of subparagraph (A), as appropriate, and
as determined by the Secretary with adjustments
for smaller and larger families, does not
exceed 115 percent of the median income of the
area, except that, with respect only to such
areas that the Secretary determines have high
housing costs, taking into consideration median
house prices and median family incomes for the
area, such income limitation shall be 150
percent of the median income of the area, as
determined by the Secretary with adjustments
for smaller and larger families;
* * * * * * *
(4) if newly constructed, meets the energy efficiency
standards promulgated by the Secretary in accordance
with section 109 of this Act. Housing that is owned by
a limited equity cooperative or a mutual housing
association may be considered by a participating
jurisdiction to be housing for homeownership for
purposes of this title to the extent that ownership or
membership in such a cooperative or association,
respectively, constitutes homeownership under State or
local laws.
(c) Loan Pools.--Notwithstanding subsections (a) and (b),
housing financed using amounts invested as provided in section
218(e)(2) shall qualify as affordable housing only if the
housing complies with the following requirements:
(1) In the case of housing that is for
homeownership--
(A) of the units financed with amounts so
invested--
(i) not less than 75 percent are
principal residences of owners whose
families qualify as low-income
families--
(I) in the case of a contract
to purchase existing housing,
at the time of purchase;
(II) in the case of a lease-
purchase agreement for existing
housing or for housing to be
constructed, at the time the
agreement is signed; or
(III) in the case of a
contract to purchase housing to
be constructed, at the time the
contract is signed;
(ii) all are principal residences of
owners whose families qualify as
moderate-income families--
(I) in the case of a contract
to purchase existing housing,
at the time of purchase;
(II) in the case of a lease-
purchase agreement for existing
housing or for housing to be
constructed, at the time the
agreement is signed; or
(III) in the case of a
contract to purchase housing to
be constructed, at the time the
contract is signed; and
(iii) all comply with paragraphs (3)
and (4) of subsection (b), except that
paragraph (3) shall be applied for
purposes of this clause by substituting
``subsection (c)(2)(B)'' and ``low- and
moderate-income homebuyers'' for
``paragraph (2)'' and ``low-income
homebuyers'', respectively; and
(B) units made available for purchase only by
families who qualify as low-income families
shall have an initial purchase price that
complies with the requirements of subsection
(b)(1).
(2) In the case of housing that is for rental, the
housing--
(A) complies with subparagraphs (D) through
(F) of subsection (a)(1);
(B)(i) has not less than 75 percent of the
units occupied by households that qualify as
low-income families and is occupied only by
households that qualify as moderate-income
families; or
(ii) temporarily fails to comply with clause
(i) only because of increases in the incomes of
existing tenants and actions satisfactory to
the Secretary are being taken to ensure that
all vacancies in the housing are being filled
in accordance with clause (i) until such
noncompliance is corrected; and
(C) bears rents, in the case of units made
available for occupancy only by households that
qualify as low-income families, that comply
with the requirements of subsection (a)(1)(A).
Paragraphs (4) and (5) of subsection (a) shall apply to
housing that is subject to this subsection.
* * * * * * *
SEC. 218. HOME INVESTMENT TRUST FUNDS.
(a) * * *
* * * * * * *
[(e) Investment Within 15 Days.--The participating
jurisdiction shall, not later than 15 days after funds are
drawn from the jurisdiction's HOME Investment Trust Fund,
invest such funds, together with any interest earned thereon,
in the affordable housing for which the funds were withdrawn.]
(e) Investment Within 15 Days.--
(1) In general.--The participating jurisdiction
shall, not later than 15 days after funds are drawn
from the jurisdiction's HOME Investment Trust Fund,
invest such funds, together with any interest earned
thereon, in the affordable housing for which the funds
were withdrawn.
(2) Loan pools.--In the case of a participating
jurisdiction that withdraws Trust Fund amounts for
investment in the form of an advance for reserves or
partial loan guarantees under a program providing such
credit enhancement for loans for affordable housing,
the amounts shall be considered to be invested for
purposes of paragraph (1) upon the completion of both
of the following actions:
(A) Control of the amounts is transferred to
the program.
(B) The jurisdiction and the entity operating
the program enter into a written agreement
that--
(i) provides that such funds may be
used only in connection with such
program;
(ii) defines the terms and conditions
of the loan pool reserve or partial
loan guarantees; and
(iii) provides that such entity shall
ensure that amounts from non-Federal
sources have been contributed, or are
committed for contribution, to the pool
available for loans for affordable
housing that will be backed by such
reserves or loan guarantees in an
amount equal to 10 times the amount
invested from Trust Fund amounts.
* * * * * * *
[(g) Expiration of Right To Draw Funds.--If any funds
becoming available to a participating jurisdiction under this
title are not placed under binding commitment to affordable
housing within 24 months after the last day of the month in
which such funds are deposited in the jurisdiction's HOME
Investment Trust Fund, the jurisdiction's right to draw such
funds from the HOME InvestmentTrust Fund shall expire. The
Secretary shall reduce the line of credit in the participating
jurisdiction's HOME Investment Trust Fund by the expiring amount and
shall reallocate the funds by formula in accordance with section
217(d).]
(g) Expiration of Right To Draw Funds.--
(1) In general.--If any funds becoming available to a
participating jurisdiction under this title are not
placed under binding commitment to affordable housing
within 24 months after the last day of the month in
which such funds are deposited in the jurisdiction's
HOME Investment Trust Fund, the jurisdiction's right to
draw such funds from the HOME Investment Trust Fund
shall expire. The Secretary shall reduce the line of
credit in the participating jurisdiction's HOME
Investment Trust Fund by the expiring amount and shall
reallocate the funds by formula in accordance with
section 217(d).
(2) Loan pools.--In the case of a participating
jurisdiction that withdraws Trust Fund amounts for
investment in the manner provided under subsection
(e)(2), the amounts shall be considered to be placed
under binding commitment to affordable housing for
purposes of paragraph (1) of this subsection at the
time that the amounts are obligated for use under, and
are subject to, a written agreement described in
subsection (e)(2)(B).
* * * * * * *
SEC. 227. LOAN GUARANTEES.
(a) Authority.--The Secretary may, upon such terms and
conditions as the Secretary may prescribe, guarantee and make
commitments to guarantee, only to such extent or in such
amounts as provided in appropriations Acts, the notes or other
obligations issued by eligibleparticipating jurisdictions or by
public agencies designated by and acting on behalf of eligible
participating jurisdictions for purposes of financing (including credit
enhancements and debt service reserves) the acquisition, new
construction, reconstruction, or moderate or substantial rehabilitation
of affordable housing (including real property acquisition, site
improvement, conversion, and demolition), and other related expenses
(including financing costs and relocation expenses of any displaced
persons, families, businesses, or organizations). Housing funded under
this section shall meet the requirements of this subtitle.
(b) Requirements.--Notes or other obligations guaranteed
under this section shall be in such form and denominations,
have such maturities, and be subject to such conditions as may
be prescribed by the Secretary. The Secretary may not deny a
guarantee under this section on the basis of the proposed
repayment period for the note or other obligation, unless the
period is more than 20 years or the Secretary determines that
the period otherwise causes the guarantee to constitute an
unacceptable financial risk.
(c) Limitation on Total Notes and Obligations.--The Secretary
may not guarantee or make a commitment to guarantee any note or
other obligation if the total outstanding notes or obligations
guaranteed under this section on behalf of the participating
jurisdiction issuing the note or obligation (excluding any
amount defeased under a contract entered into under subsection
(e)(1)) would thereby exceed an amount equal to 5 times the
amount of the participating jurisdiction's latest allocation
under section 217.
(d) Use of Program Funds.--Notwithstanding any other
provision of this subtitle, funds allocated to the
participating jurisdiction under this subtitle (including
program income derived therefrom) are authorized for use in the
payment of principal and interest due on the notes or other
obligations guaranteed pursuant to this section and the payment
of such servicing, underwriting, or other issuance or
collection charges as may be specified by the Secretary.
(e) Security.--To assure the full repayment of notes or other
obligations guaranteed under this section, and payment of the
issuance or collection charges specified by the Secretary under
subsection (d), and as a prior condition for receiving such
guarantees, the Secretary shall require the participating
jurisdiction (and its designated public agency issuer, if any)
to--
(1) enter into a contract, in a form acceptable to
the Secretary, for repayment of such notes or other
obligations and the other specified charges;
(2) pledge as security for such repayment any
allocation for which the participating jurisdiction may
become eligible under this subtitle; and
(3) furnish, at the discretion of the Secretary, such
other security as may be deemed appropriate by the
Secretary in making such guarantees, which may include
increments in local tax receipts generated by the
housing assisted under this section or disposition
proceeds from the sale of land or housing.
(f) Repayment Authority.--The Secretary may, notwithstanding
any other provision of this subtitle or any other Federal,
State, or local law, apply allocations pledged pursuant to
subsection (e) to any repayments due the United States as a
result of such guarantees.
(g) Full Faith and Credit.--The full faith and credit of the
United States is pledged to the payment of all guarantees made
under this section. Any such guarantee made by the Secretary
shall be conclusive evidence of the eligibility of the notes or
other obligations for such guarantee with respect to principal
and interest, and the validity of any such guarantee so made
shall be incontestable in the hands of a holder of the
guaranteed obligations.
(h) Tax Status.--With respect to any obligation guaranteed
pursuant to this section, the guarantee and the obligation
shall be designed in a manner such that the interest paid on
such obligation shall be included in gross income for purposes
of the Internal Revenue Code of 1986.
(i) Monitoring.--The Secretary shall monitor the use of
guarantees under this section by eligible participating
jurisdictions. If the Secretary finds that 50 percent of the
aggregate guarantee authority for any fiscal year has been
committed, the Secretary may impose limitations on the amount
of guarantees any 1 participating jurisdiction may receive
during that fiscal year.
(j) Guarantee of Trust Certificates.--
(1) Authority.--The Secretary may, upon such terms
and conditions as the Secretary deems appropriate,
guarantee the timely payment of the principal of and
interest on such trust certificates or other
obligations as may--
(A) be offered by the Secretary or by any
other offeror approved for purposes of this
subsection by the Secretary; and
(B) be based on and backed by a trust or pool
composed of notes or other obligations
guaranteed or eligible for guarantee by the
Secretary under this section.
(2) Full faith and credit.--To the same extent as
provided in subsection (g), the full faith and credit
of the United States is pledged to the payment of all
amounts which may be required to be paid under any
guarantee by the Secretary under this subsection.
(3) Subrogation.--In the event the Secretary pays a
claim under a guarantee issued under this section, the
Secretary shall be subrogated fully to the rights
satisfied by such payment.
(4) Other powers and rights.--No State or local law,
and no Federal law, shall preclude or limit the
exercise by the Secretary of--
(A) the power to contract with respect to
public offerings and other sales of notes,
trust certificates, and other obligations
guaranteed under this section, upon such terms
and conditions as the Secretary deems
appropriate;
(B) the right to enforce, by any means deemed
appropriate by the Secretary, any such
contract; and
(C) the Secretary's ownership rights, as
applicable, in notes, certificates or other
obligations guaranteed under this section, or
constituting the trust or pool against which
trust certificates or other obligations
guaranteed under this section are offered.
(k) Aggregate Limitation.--The total amount of outstanding
obligations guaranteed on a cumulative basis by the Secretary
under this section shall not at any time exceed $2,000,000,000.
* * * * * * *
SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE REGIONAL HOUSING
AFFORDABILITY STRATEGIES.
(a) Authority.--The Secretary may, using any amounts made
available for grants under this section, make not more than 3
grants for each of fiscal years 2001 and 2002 to consortia of
units of general local government described in subsection (b)
for costs of developing and implementing comprehensive housing
affordability strategies on a regional basis.
(b) Eligible Consortia.--A consortium of units of general
local government described in this subsection is a consortium
that--
(1) is eligible under section 216(2) to be deemed a
unit of general local government for purposes of this
title; and
(2) consists of multiple units of general local
government; and
(3) contains only units of general local government
that are geographically contiguous.
(c) Multi-State Requirement.--In each fiscal year in which
grants are made under this section, not less than one of the
consortia that receives a grant shall be a consortium described
in subsection (b) that includes units of general local
government from 2 or more States.
* * * * * * *
TITLE VIII--HOUSING FOR PERSONS WITH SPECIAL NEEDS
* * * * * * *
Subtitle D--Housing Opportunities for Persons With AIDS
[SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
subtitle $150,000,000 for fiscal year 1993 and $156,300,000 for
fiscal year 1994.]
SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
subtitle $260,000,000 for fiscal year 2001 and such sums as may
be necessary for each of fiscal years 2002, 2003, 2004, and
2005.
* * * * * * *
----------
SECTION 608 OF THE NEIGHBORHOOD REINVESTMENT CORPORATION ACT
authorization
Sec. 608. (a)(1) [There are authorized to be appropriated to
the corporation to carry out this title $29,476,000 for fiscal
year 1993 and $30,713,992 for fiscal year 1994.] There is
authorized to be appropriated to the corporation to carry out
this title $95,000,000 for fiscal year 2001 and such sums as
may be necessary for each of fiscal years 2002 through 2005. Of
the amounts appropriated to the corporation for fiscal year
2001, $5,000,000 shall be available only for the corporation to
provide assistance under duplex homeownership programs
established before the date of the enactment of the American
Homeownership and Economic Opportunity Act of 2000 through
Neighborworks Homeownership Center pilot projects established
before such date of enactment. Not more than 15 percent of any
amount appropriated under this paragraph for any fiscal year
may be used for administrative expenses.
* * * * * * *
----------
SECTION 4 OF THE HOUSING AND URBAN DEVELOPMENT DEMONSTRATION ACT OF
1993
SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE
HOUSING.
(a) In General.--The Secretary is authorized to provide
assistance through the National Community Development
Initiative, Local Initiatives Support Corporation, The
Enterprise Foundation, Habitat for Humanity, National
Association of Housing Partnerships, and Youthbuild USA to
develop the capacity and ability of community development
corporations and community housing development organizations to
undertake community development and affordable housing projects
and programs.
* * * * * * *
(e) Authorization.--There are authorized to be appropriated
[$25,000,000 for fiscal year 1994 to carry out this section.],
for each fiscal year, such sums as may be necessary to carry
out this section.
----------
SECTION 13 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT
SEC. 13. NOTICE OF FUNDING AVAILABILITY.
(a) Requirement.--In making amounts for a fiscal year under
the covered programs under subsection (b) available to
applicants, the Secretary shall issue a consolidated notice of
funding availability that--
(1) applies to as many of the covered programs as the
Secretary determines is practicable;
(2) simplifies the application process for funding
under such programs by providing for application under
various covered programs through a single, unified
application;
(3) promotes comprehensive approaches to housing and
community development by providing for applicants to
identify coordination of efforts under various covered
programs; and
(4) clearly informs prospective applicants of the
general and specific requirements under law for
applying for funding under such programs.
(b) Covered Programs.--The covered programs under this
subsection are the programs that are administered by the
Secretary and identified by the Secretary for purposes of this
section, in the following areas:
(1) Housing and community development programs.
(2) Economic development and empowerment programs.
(3) Targeted housing assistance and homeless
assistance programs.
----------
SECTION 11 OF THE HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1996
SEC. 11. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.
(a) * * *
* * * * * * *
(b) Goals and Accountability.--In making grants under this
section, the Secretary shall take such actions as may be
necessary to ensure that--
(1) * * *
* * * * * * *
(4) the provision of assistance under this section
establishes and fosters a partnership between the
Federal Government and [Habitat for Humanity
International, its affiliates, and other] organizations
and consortia, resulting in efficient development of
affordable housing with minimal governmental
intervention, limited governmental regulation, and
significant involvement by private entities;
* * * * * * *
(d) Use.--
(1) * * *
(2) Eligible expenses.--For purposes of paragraph
(1), the term ``eligible expenses'' means costs only
for the following activities:
(A) Land acquisition.--Acquiring land
(including financing and closing costs), which
may include reimbursing an organization,
consortium, or affiliate, upon approval of any
required environmental review, for nongrant
amounts of the organization, consortium, or
affiliate advanced before such review to
acquire land.
* * * * * * *
(e) Establishment of Grant Fund.--
(1) * * *
(2) Assistance to affiliates.--Any organization or
consortia that receives a grant under this section may
use amounts in the fund established for such
organization or consortia pursuant to paragraph (1) for
the purposes under subsection (d) by providing
assistance from the fund to local affiliates of such
organization or [consoria] consortia.
* * * * * * *
(i) Grant Agreement.--A grant under this section shall be
made only pursuant to a grant agreement entered into by the
Secretary and the organization or consortia receiving the
grant, which shall--
(1) * * *
* * * * * * *
(5) provide that [if the organization or consortia
has not used any grant amounts] the Secretary shall
recapture any grant amounts provided to the
organization or consortia that are not used within 24
months after such amounts are first disbursed to the
organization or consortia [(or,], except that such
period shall be 36 months in the case of grant amounts
from amounts made available for fiscal year 1996 to
carry out this section, [within 36 months), the
Secretary shall recapture such unused amounts] and in
the case of a grant amounts provided to a local
affiliate of the organization or consortia that is
developing 5 or more dwellings in connection with such
grant amounts; and
* * * * * * *
(j) Fulfillment of Grant Agreement.--If the Secretary
determines that an organization or consortia awarded a grant
under this section has not, within 24 months after grant
amounts are first made available to the organization or
consortia (or, in the case of grant amounts from amounts made
available for fiscal year 1996 to carry out this section and
grant amounts provided to a local affiliate of the organization
or consortia that is developing 5 or more dwellings in
connection with such grant amounts, within 36 months),
substantially fulfilled the obligations under the grant
agreement, including development of the appropriate number of
dwellings under the agreement, the Secretary shall use any such
undisbursed amounts remaining from such grant for other grants
in accordance with this section.
* * * * * * *
[(p) Authorization of Appropriations.--To carry out this
section, there are authorized to be appropriated for fiscal
years 1999 and 2000 such sums as may be necessary.]
(p) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $25,000,000 for
fiscal year 2001 and such sums as may be necessary for each of
fiscal years 2002 and 2003.
* * * * * * *
----------
SECTION 106 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
technical assistance, counseling to tenants and homeowners, and loans
to sponsors of low- and moderate-income housing
Sec. 106. (a)(1) The Secretary is authorized to provide, or
contract with public or private organizations to provide,
information, advice, and technical assistance, including but
not limited to--
(i) * * *
(ii) the provision of advice and technical assistance
to public bodies or to nonprofit or cooperative
organizations with respect to the construction,
rehabilitation, and operation of low- and moderate-
income housing, including assistance with respect to
self-help and mutual self-help programs and cooperative
housing;
* * * * * * *
(c) Grants for Homeownership Counseling Organizations.--
(1) In general.--The Secretary of Housing and Urban
Development may make grants--
(A) to nonprofit organizations experienced in
the provision of homeownership counseling to
enable the organizations to provide
homeownership counseling to eligible
homeowners; [and]
(B) to assist in the establishment of
nonprofit homeownership counseling
organizations[.];
(C) to the National Cooperative Bank
Development Corporation--
(i) to provide homeownership
counseling to eligible homeowners that
is specifically designed to relate to
ownership under cooperative housing
arrangements; and
(ii) to assist in the establishment
and operation of well-managed and
viable cooperative housing boards.
* * * * * * *
(4) Eligibility for counseling.--A homeowner shall be
eligible for homeownership counseling under this
subsection if--
(A) the home loan is secured by property that
is the principal residence (as defined by the
Secretary) of the homeowner or, in the case of
a home loan made to finance the purchase of
stock or membership in a cooperative ownership
housing corporation, by the stock or membership
interest;
* * * * * * *
(6) Definitions.--For purposes of this subsection:
(A) The term ``creditor'' means a person or
entity that is servicing a home loan on behalf
of itself or another person or entity and
includes a loan that is secured by a first lien
given in accordance with the laws of the State
where the property is located and that is made
to finance the purchase of stock or membership
in a cooperative ownership housing corporation
the permanent occupancy of dwelling units of
which is restricted to members of such
corporation, where the purchase of such stock
or membership will entitle the purchaser to the
permanent occupancy of 1 of such units.
* * * * * * *
----------
SECTION 1101 OF THE RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT
OF 1992
SEC. 1011. GRANTS FOR LEAD-BASED PAINT HAZARD REDUCTION IN TARGET
HOUSING.
(a) * * *
* * * * * * *
(e) Eligible Activities.--A grant under this section may be
used to--
(1) * * *
* * * * * * *
(7) assist in the temporary relocation of families
forced to vacate housing while lead hazard reduction
measures are being conducted, which may include leasing
of lead-safe temporary housing;
* * * * * * *
(9) test soil, interior surface dust, and the blood-
lead levels of children under the age of 6 residing in
housing after lead-based paint hazard reduction
activity has been conducted, to assure that such
activity does not cause excessive exposures to lead;
[and]
(10) provide accessible information through
centralized locations that provide a variety of
residential lead-based paint poisoning prevention
services to the community that such services are
intended to benefit; and
[(10)] (11) carry out such other activities that the
Secretary determines appropriate to promote the
purposes of this Act.
* * * * * * *
----------
NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title.
* * * * * * *
TITLE II--AFFORDABLE HOUSING ACTIVITIES
Sec. 201. National objectives and eligible families.
[Sec. 206. Certification of compliance with subsidy layering
requirements.]
* * * * * * *
[Sec. 209. Repayment.]
Sec. 209. Noncompliance with affordable housing requirement.
* * * * * * *
TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS
SEC. 101. BLOCK GRANTS.
(a) * * *
(b) Plan Requirement.--
(1) * * *
* * * * * * *
(2) Waiver.--The Secretary may waive the
applicability of the requirements under paragraph (1),
in whole or in part, [ifthe Secretary finds that an
Indian tribe has not complied or cannot comply with such requirements
due to circumstances beyond the control of the tribe.] for a period of
not more than 90 days, if the Secretary determines that an Indian tribe
has not complied with, or is unable to comply with, those requirements
due to exigent circumstances beyond the control of the Indian tribe.
(c) Local Cooperation Agreement.--Notwithstanding any other
provision of this Act, grant amounts provided under this Act on
behalf of an Indian tribe may not be used for rental or lease-
purchase homeownership units that are owned by the recipient
for the tribe unless the governing body of the locality within
which the property subject to the development activities to be
assisted with the grant amounts is or will be situated has
entered into an agreement with the recipient for the tribe
providing for local cooperation required by the Secretary
pursuant to this Act. The Secretary may waive the requirements
of this subsection and subsection (d) if the recipient has made
a good faith effort to fulfill the requirements of this
subsection and subsection (d) and agrees to make payments in
lieu of taxes to the appropriate taxing authority in an amount
consistent with the requirements of subsection (d)(2) until
such time as the matter of making such payments has been
resolved in accordance with subsection (d).
* * * * * * *
SEC. 102. INDIAN HOUSING PLANS.
(a) * * *
* * * * * * *
(c) 1-Year Plan.--A housing plan under this section for an
Indian tribe shall be in a form prescribed by the Secretary and
contain the following information relating to the upcoming
fiscal year for which the assistance under this Act is to be
made available:
(1) * * *
* * * * * * *
(6) Certain families.--With respect to assistance
provided under section 201(b)(2) by a recipient to
Indian families that are not low-income families,
evidence that there is a need for housing for each such
family during that period that cannot reasonably be met
without such assistance.
* * * * * * *
[(f) Plans for Small Tribes.--
[(1) Separate requirements.--The Secretary may--
[(A) establish requirements for submission of
plans under this section and the information to
be included in such plans applicable to small
Indian tribes and small tribally designated
housing entities; and
[(B) waive any requirements under this
section that the Secretary determines are
burdensome or unnecessary for such tribes and
housing entities.
[(2) Small tribes.--The Secretary may define small
Indian tribes and small tribally designated housing
entities based on the number of dwelling units assisted
under this title by the tribe or housing entity or
owned or operated pursuant to a contract under the
United States Housing Act of 1937 between the Secretary
and the Indian housing authority for the tribe.]
[(g)] (f) Regulations.--The requirements relating to the
contents of plans under this section shall be established by
regulation, pursuant to section 106.
* * * * * * *
SEC. 104. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.
(a) * * *
* * * * * * *
(b) Labor Standards.--
(1) In general.--Any contract or agreement for
assistance, sale, or lease pursuant to this Act shall
contain a provision requiring that not less than the
wages prevailing in the locality, as determined or
adopted (subsequent to a determination under applicable
State, tribal, or local law) by the Secretary, shall be
paid to all architects, technical engineers, draftsmen,
and technicians employed in the development, and all
maintenance laborers and mechanics employed in the
operation, of the affordable housing project involved;
and shall also contain a provision that not less than
the wages prevailing in the locality, as predetermined
by the Secretary of Labor pursuant to the [Davis-Bacon
Act (40 U.S.C. 276a-276a-5)] Act of March 3, 1931
(commonly known as the Davis-Bacon Act; chapter 411; 46
Stat. 1494; 40 U.S.C 276a et seq.), shall be paid to
all laborers and mechanics employed in the development
of the affordable housing involved, and the Secretary
shall require certification as to compliance with the
provisions of this paragraph before making any payment
under such contract or agreement.
* * * * * * *
SEC. 105. ENVIRONMENTAL REVIEW.
(a) * * *
* * * * * * *
(d) Environmental Compliance.--The Secretary may waive the
requirements under this section if the Secretary determines
that a failure on the part of a recipient to comply with
provisions of this section--
(1) will not frustrate the goals of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et
seq.) or any other provision of law that furthers the
goals of that Act;
(2) does not threaten the health or safety of the
community involved by posing an immediate or long-term
hazard to residents of that community;
(3) is a result of inadvertent error, including an
incorrect or incomplete certification provided under
subsection (c)(1); and
(4) may be corrected through the sole action of the
recipient.
* * * * * * *
TITLE II--AFFORDABLE HOUSING ACTIVITIES
SEC. 201. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.
(a) * * *
* * * * * * *
(b) Eligible Families.--
(1) In general.--Except as provided under [paragraph
(2)] paragraphs (2) and (4), assistance under eligible
housing activities under this Act shall be limited to
low-income Indian families on Indian reservations and
other Indian areas.
* * * * * * *
(4) Law enforcement officers.--A recipient may
provide housing or housing assistance provided through
affordable housing activities assisted with grant
amounts under this Act for a law enforcement officer on
an Indian reservation or other Indian area, if--
(A) the officer--
(i) is employed on a full-time basis
by the Federal Government or a State,
county, or tribal government; and
(ii) in implementing such full-time
employment, is sworn to uphold, and
make arrests for, violations of
Federal, State, county, or tribal law;
and
(B) the recipient determines that the
presence of the law enforcement officer on the
Indian reservation or other Indian area may
deter crime.
[(4)] (5) Preference for tribal members and other
indian families.--The Indian housing plan for an Indian
tribe may require preference, for housing or housing
assistance provided through affordable housing
activities assisted with grant amounts provided under
this Act on behalf of such tribe, to be given (to the
extent practicable) to Indian families who are members
of such tribe, or to other Indian families. In any case
in which the applicable Indian housing plan for an
Indian tribe provides for preference under this
paragraph, the recipient for the tribe shall ensure
that housing activities that are assisted with grant
amounts under this Act for such tribe are subject to
such preference.
[(5)] (6) Exemption.--Title VI of the Civil Rights
Act of 1964 and title VIII of the Civil Rights Act of
1968 shall not apply to actions by federally recognized
tribes and the tribally designated housing entities of
those tribes under this Act.
* * * * * * *
[SEC. 206. CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING
REQUIREMENTS.
[With respect to housing assisted with grant amounts provided
under this Act, the requirements of section 102(d) of the
Department of Housing and Urban Development Reform Act of 1989
shall be considered to be satisfied upon certification by a
recipient to the Secretary that the combination of Federal
assistance provided to the housing project involved is not any
more than is necessary to provide affordable housing.]
* * * * * * *
[SEC. 209. REPAYMENT.
[If a recipient 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 205(a)(2), the
Secretary shall reduce future grant payments on behalf of the
grant beneficiary by an amount equal to the grant amounts used
for such housing (under the authority under section 401(a)(2))
or require repayment to the Secretary of an amount equal to
such grant amounts.]
SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.
If a recipient uses grant amounts to provide affordable
housing under this title, and at any time during the useful
life of the housing the recipient does not comply with the
requirement under section 205(a)(2), the Secretary shall take
appropriate action under section 401(a).
* * * * * * *
TITLE III--ALLOCATION OF GRANT AMOUNTS
* * * * * * *
SEC. 302. ALLOCATION FORMULA.
(a) * * *
* * * * * * *
(d) Funding for Public Housing Operation and
Modernization.--
(1) Full funding.--[The formula,]
(A) In general.--Except with respect to an
Indian tribe described in subparagraph (B), the
formula shall provide that, if, in any fiscal
year, the total amount made available for
assistance under this Act is equal to or
greater than the total amount made available
for fiscal year 1996 for assistance for the
operation and modernization of public housing
developed or operated pursuant to a contract
between the Secretary and an Indian housing
authority pursuant to the United States Housing
Act of 1937, the amount provided for such
fiscal year for each Indian tribe for which
such operating or modernization assistance was
provided for fiscal year 1996 shall not be less
than the total amount of such operating and
modernization assistance provided for fiscal
year 1996 for such tribe.
(B) Certain indian tribes.--With respect to
fiscal year 2001 and each fiscal year
thereafter, for any Indian tribe with an Indian
housing authority that owns or operates fewer
than 250 public housing units, the formula
shall provide that if the amount provided for a
fiscal year in which the total amount made
available for assistance under this Act is
equal to or greater than the amount made
available for fiscal year 1996 for assistance
for the operation and modernization of the
public housing referred to in subparagraph (A),
then the amount provided to that Indian tribe
as modernization assistance shall be equal to
the average annual amount of funds provided to
the Indian tribe (other than funds provided as
emergency assistance) under the assistance
program under section 14 of the United States
Housing Act of 1937 (42 U.S.C. 1437l) for the
period beginning with fiscal year 1992 and
ending with fiscal year 1997.
* * * * * * *
TITLE IV--COMPLIANCE, AUDITS, AND REPORTS
SEC. 401. REMEDIES FOR NONCOMPLIANCE.
(a) Actions by Secretary Affecting Grant Amounts.--[Except as
provided]
(1) In general.--Except as provided in subsection
(b), if the Secretary finds after reasonable notice and
opportunity for hearing that a recipient of assistance
under this Act has failed to comply substantially with
any provision of this Act, the Secretary shall--
[(1)] (A) terminate payments under this Act
to the recipient;
[(2)] (B) reduce payments under this Act to
the recipient by an amount equal to the amount
of such payments that were not expended in
accordance with this Act;
[(3)] (C) limit the availability of payments
under this Act to programs, projects, or
activities not affected by such failure to
comply; or
[(4)] (D) in the case of noncompliance
described in section 402(b), provide a
replacement tribally designated housing entity
for the recipient, under section 402.
[If the Secretary takes an action under paragraph (1), (2), or
(3)]
(2) Continuance of actions.--If the Secretary takes
an action under subparagraph (A), (B), or (C) of
paragraph (1), the Secretary shall continue such action
until the Secretary determines that the failure to
comply has ceased.
(3) Exception for certain actions.--
(A) In general.--Notwithstanding any other
provision of this subsection, if the Secretary
makes a determination that the failure of a
recipient of assistance under this Act to
comply substantially with any material
provision (as that term is defined by the
Secretary) of this Act is resulting, and would
continue to result, in a continuing expenditure
of Federal funds in a manner that is not
authorized by law, the Secretary may take an
action described in paragraph (1)(C) before
conducting a hearing.
(B) Procedural requirement.--If the Secretary
takes an action described in subparagraph (A),
the Secretary shall--
(i) provide notice to the recipient
at the time that the Secretary takes
that action; and
(ii) conduct a hearing not later than
60 days after the date on which the
Secretary provides notice under clause
(i).
(C) Determination.--Upon completion of a
hearing under this paragraph, the Secretary
shall make a determination regarding whether to
continue taking the action that is the subject
of the hearing, or take another action under
this subsection.
(b) Noncompliance Because of Technical Incapacity.--[If the
Secretary]
(1) In general.--If the Secretary makes a finding
under subsection (a), but determines that the failure
to comply substantially with the provisions of this
Act--
[(1)] (A) is not a pattern or practice of
activities constituting willful noncompliance,
and
[(2)] (B) is a result of the limited
capability or capacity of the recipient,
the Secretary may provide technical assistance for the
recipient (directly or indirectly) that is designed to
increase the capability and capacity of the recipient
to administer assistance provided under this Act in
compliance with the requirements under this Act, if the
recipient enters into a performance agreement with the
Secretary that specifies the compliance objectives that
the recipient will be required to achieve by the
termination date of the performance agreement.
* * * * * * *
(2) Performance agreement.--The period of a
performance agreement described in paragraph (1) shall
be for 1 year.
(3) Review.--Upon the termination of a performance
agreement entered into under paragraph (1), the
Secretary shall review the performance of the recipient
that is a party to the agreement.
(4) Effect of review.--If, on the basis of a review
under paragraph (3), the Secretary determines that the
recipient--
(A) has made a good faith effort to meet the
compliance objectives specified in the
agreement, the Secretary may enter into an
additional performance agreement for the period
specified in paragraph (2); and
(B) has failed to make a good faith effort to
meet applicable compliance objectives, the
Secretary shall determine the recipient to have
failed to comply substantially with this Act,
and the recipient shall be subject to an action
under subsection (a).
* * * * * * *
[SEC. 405. REVIEW AND AUDIT BY SECRETARY.
[(a) Annual Review.--The Secretary shall, not less than on an
annual basis, make such reviews and audits as may be necessary
or appropriate to determine--
[(1) whether the recipient has carried out its
eligible activities in a timely manner, has carried out
its eligible activities and certifications in
accordance with the requirements and the primary
objectives of this Act and with other applicable laws,
and has a continuing capacity to carry out those
activities in a timely manner;
[(2) whether the recipient has complied with the
Indian housing plan of the grant beneficiary; and
[(3) whether the performance reports under section
404 of the recipient are accurate.
Reviews under this section shall include, insofar as
practicable, onsite visits by employees of the Department of
Housing and Urban Development.
[(b) Report by Secretary.--The Secretary shall give a
recipient not less than 30 days to review and comment on a
report under this subsection. After taking into consideration
the comments of the recipient, the Secretary may revise the
report and shall make the comments of the recipient and the
report, with any revisions, readily available to the public not
later than 30 days after receipt of the comments of the
recipient.
[(c) Effect of Reviews.--The Secretary may make appropriate
adjustments in the amount of the annual grants under this Act
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 on behalf of an
Indian tribe.]
SEC. 405. REVIEW AND AUDIT BY SECRETARY.
(a) Requirements Under Chapter 75 of Title 31, United States
Code.--An entity designated by an Indian tribe as a housing
entity shall be treated, for purposes of chapter 75 of title
31, United States Code, as a non-Federal entity that is subject
to the audit requirements that apply to non-Federal entities
under that chapter.
(b) Additional Reviews and Audits.--
(1) In general.--In addition to any audit or review
under subsection (a), to the extent the Secretary
determines such action to be appropriate, the Secretary
may conduct an audit or review of a recipient in order
to--
(A) determine whether the recipient--
(i) has carried out--
(I) eligible activities in a
timely manner; and
(II) eligible activities and
certification in accordance
with this Act and other
applicable law;
(ii) has a continuing capacity to
carry out eligible activities in a
timely manner; and
(iii) is in compliance with the
Indian housing plan of the recipient;
and
(B) verify the accuracy of information
contained in any performance report submitted
by the recipient under section 404.
(2) On-site visits.--To the extent practicable, the
reviews and audits conducted under this subsection
shall include on-site visits by the appropriate
official of the Department of Housing and Urban
Development.
(c) Review of Reports.--
(1) In general.--The Secretary shall provide each
recipient that is the subject of a report made by the
Secretary under this section notice that the recipient
may review and comment on the report during a period of
not less than 30 days after the date on which notice is
issued under this paragraph.
(2) Public availability.--After taking into
consideration any comments of the recipient under
paragraph (1), the Secretary--
(A) may revise the report; and
(B) not later than 30 days after the date on
which those comments are received, shall make
the comments and the report (with any revisions
made under subparagraph (A)) readily available
to the public.
(d) Effect of Reviews.--Subject to section 401(a), after
reviewing the reports and audits relating to a recipient that
are submitted to the Secretary under this section, the
Secretary may adjust the amount of a grant made to a recipient
under this Act in accordance with the findings of the Secretary
with respect to those reports and audits.
* * * * * * *
TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER
INCORPORATED PROGRAMS
* * * * * * *
SEC. 502. TERMINATION OF INDIAN HOUSING ASSISTANCE UNDER UNITED STATES
HOUSING ACT OF 1937.
(a) Termination of Assistance.--After September 30, 1997,
financial assistance may not be provided under the United
States Housing Act of 1937 or pursuant to any commitment
entered into under such Act, for Indian housing developed or
operated pursuant to a contract between the Secretary and an
Indian housing
authority, unless such assistance is provided from amounts made
available for fiscal year 1997 and pursuant to a commitment
entered into before September 30, 1997. Any housing that is the
subject of a contract for tenant-based assistance between the
Secretary and an Indian housing authority that is terminated
under this section shall, for the following fiscal year and
each fiscal year thereafter, be considered to be a dwelling
unit under section 302(b)(1).
* * * * * * *
----------
SECTION 204 OF THE DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND
URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1997
Sec. 204. [Flexible Authority] Disposition of HUD-Owned
Properties. (a) Flexible Authority for Multifamily Projects.--
During fiscal year 1997 and fiscal years thereafter, the
Secretary may manage and dispose of multifamily properties
owned by the Secretary, including, for fiscal years 1997, 1998,
1999, and 2000, the provision of grants and loans from the
General Insurace Fund (12 U.S.C. 1735(c)) for the necessary
costs of rehabilitation, demolition, or construction on the
properties (which shall be eligible whether vacant or occupied)
and multifamily mortgages held by the Secretary on such terms
and conditions as the Secretary may determine, notwithstanding
any other provision of law.
(b) Transfer of Unoccupied and Substandard Housing to Local
Governments and Community Development Corporations.--
(1) Transfer authority.--Notwithstanding the
authority under subsection (a) and the last sentence of
section 204(g) of the National Housing Act (12 U.S.C.
1710(g)), the Secretary of Housing and Urban
Development shall transfer ownership of any qualified
HUD property, subject to the requirements of this
section, to a unit of general local government having
jurisdiction for the area in which the property is
located or to a community development corporation which
operates within such a unit of general local government
in accordance with this subsection, but only to the
extent that units of general local government and
community development corporations consent to transfer
and the Secretary determines that such transfer is
practicable.
(2) Qualified hud properties.--For purposes of this
subsection, the term ``qualified HUD property'' means
any property for which, as of the date that
notification of the property is first made under
paragraph (3)(B), not less than 6 months have elapsed
since the later of the date that the property was
acquired by the Secretary or the date that the property
was determined to be unoccupied or substandard, that is
owned by the Secretary and is--
(A) an unoccupied multifamily housing
project;
(B) a substandard multifamily housing
project; or
(C) an unoccupied single family property
that--
(i) has been determined by the
Secretary not to be an eligible
property under section 204(h) of the
National Housing Act (12 U.S.C.
1710(h)); or
(ii) is an eligible property under
such section 204(h), but--
(I) is not subject to a
specific sale agreement under
such section; and
(II) has been determined by
the Secretary to be
inappropriate for continued
inclusion in the program under
such section 204(h) pursuant to
paragraph (10) of such section.
(3) Timing.--The Secretary shall establish procedures
that provide for--
(A) time deadlines for transfers under this
subsection;
(B) notification to units of general local
government and community development
corporations of qualified HUD properties in
their jurisdictions;
(C) such units and corporations to express
interest in the transfer under this subsection
of such properties;
(D) a right of first refusal for transfer of
qualified HUD properties to units of general
local government and community development
corporations, under which--
(i) the Secretary shall establish a
period during which the Secretary may
not transfer such properties except to
such units and corporations;
(ii) the Secretary shall offer
qualified HUD properties that are
single family properties for purchase
by units of general local government at
a cost of $1 for each property, but
only to the extent that the costs to
the Federal Government of disposal at
such price do not exceed the costs to
the Federal Government of disposing of
property subject to the procedures for
single family property established by
the Secretary pursuant to the authority
under the last sentence of section
204(g) of the National Housing Act (12
U.S.C. 1710(g));
(iii) the Secretary may accept an
offer to purchase a property made by a
community development corporation only
if the offer provides for purchase on a
cost recovery basis; and
(iv) the Secretary shall accept an
offer to purchase such a property that
is made during such period by such a
unit or corporation and that complies
with the requirements of this
paragraph;
(E) a written explanation, to any unit of
general local government or community
development corporation making an offer to
purchase a qualified HUD property under this
subsection that is not accepted, of the reason
that such offer was not acceptable.
(4) Other disposition.--With respect to any qualified
HUD property, if the Secretary does not receive an
acceptable offer to purchase the property pursuant to
the procedure established under paragraph (3), the
Secretary shall dispose of the property to the unit of
general local government in which property is located
or to community development corporations located in
such unit of general local government on a negotiated,
competitive bid, or other basis, on such terms as the
Secretary deems appropriate.
(5) Satisfaction of indebtedness.--Before
transferring ownership of any qualified HUD property
pursuant to this subsection, the Secretary shall
satisfy any indebtedness incurred in connection with
the property to be transferred, by canceling the
indebtedness.
(6) Determination of status of properties.--To ensure
compliance with the requirements of this subsection,
the Secretary shall take the following actions:
(A) Upon enactment.--Upon the enactment of
the American Homeownership and Economic
Opportunity Act of 2000, the Secretary shall
promptly assess each residential property owned
by the Secretary to determine whether such
property is a qualified HUD property.
(B) Upon acquisition.--Upon acquiring any
residential property, the Secretary shall
promptly determine whether the property is a
qualified HUD property.
(C) Updates.--The Secretary shall
periodically reassess the residential
properties owned by the Secretary to determine
whether any such properties have become
qualified HUD properties.
(7) Tenant leases.--This subsection shall not affect
the terms or the enforceability of any contract or
lease entered into with respect to any residential
property before the date that such property becomes a
qualified HUD property.
(8) Use of property.--Property transferred under this
subsection shall be used only for appropriate
neighborhood revitalization efforts, including
homeownership, rental units, commercial space, and
parks, consistent with local zoning regulations, local
building codes, and subdivision regulations and
restrictions of record.
(9) Inapplicability to properties made available for
homeless.--Notwithstanding any other provision of this
subsection, this subsection shall not apply to any
properties that the Secretary determines are to be made
available for use by the homeless pursuant to subpart E
of part 291 of title 24, Code of Federal Regulations,
during the period that the properties are so available.
(10) Protection of existing contracts.--This
subsection may not be construed to alter, affect, or
annul any legally binding obligations entered into with
respect to a qualified HUD property before the property
becomes a qualified HUD property.
(11) Definitions.--For purposes of this subsection,
the following definitions shall apply:
(A) Community development corporation.--The
term ``community development corporation''
means a nonprofit organization whose primary
purpose is to promote community development by
providing housing opportunities for low-income
families.
(B) Cost recovery basis.--The term ``cost
recovery basis'' means, with respect to any
sale of a residential property by the
Secretary, that the purchase price paid by the
purchaser is equal to or greater than the sum
of (i) the appraised value of the property, as
determined in accordance with such requirements
as the Secretary shall establish, and (ii) the
costs incurred by the Secretary in connection
with such property during the period beginning
on the date on which the Secretary acquires
title to the property and ending on the date on
which the sale is consummated.
(C) Multifamily housing project.--The term
``multifamily housing project'' has the meaning
given the term in section 203 of the Housing
and Community Development Amendments of 1978.
(D) Residential property.--The term
``residential property'' means a property that
is a multifamily housing project or a single
family property.
(E) Secretary.--The term ``Secretary'' means
the Secretary of Housing and Urban Development.
(F) Severe physical problems.--The term
``severe physical problems'' means, with
respect to a dwelling unit, that the unit--
(i) lacks hot or cold piped water, a
flush toilet, or both a bathtub and a
shower in the unit, for the exclusive
use of that unit;
(ii) on not less than 3 separate
occasions during the preceding winter
months, was uncomfortably cold for a
period of more than 6 consecutive hours
due to a malfunction of the heating
system for the unit;
(iii) has no functioning electrical
service, exposed wiring, any room in
which there is not a functioning
electrical outlet, or has experienced 3
or more blown fuses or tripped circuit
breakers during the preceding 90-day
period;
(iv) is accessible through a public
hallway in which there are no working
light fixtures, loose or missing steps
or railings, and no elevator; or
(v) has severe maintenance problems,
including water leaks involving the
roof, windows, doors, basement, or
pipes or plumbing fixtures, holes or
open cracks in walls or ceilings,
severe paint peeling or broken plaster,
and signs of rodent infestation.
(G) Single family property.--The term
``single family property'' means a 1- to 4-
family residence.
(H) Substandard.--The term ``substandard''
means, with respect to a multifamily housing
project, that 25 percent or more of the
dwelling units in the project have severe
physical problems.
(I) Unit of general local government.--The
term ``unit of general local government'' has
the meaning given such term in section 102(a)
of the Housing and Community Development Act of
1974.
(J) Unoccupied.--The term ``unoccupied''
means, with respect to a residential property,
that the unit of general local government
having jurisdiction over the area in which the
project is located has certified in writing
that the property is not inhabited.
(12) Regulations.--
(A) Interim.--Not later than 30 days after
the date of the enactment of the American
Homeownership and Economic Opportunity Act of
2000, the Secretary shall issue such interim
regulations as are necessary to carry out this
subsection.
(B) Final.--Not later than 60 days after the
date of the enactment of the American
Homeownership and Economic Opportunity Act of
2000, the Secretary shall issue such final
regulations as are necessary to carry out this
subsection.
----------
HOMEOWNERS PROTECTION ACT OF 1998
* * * * * * *
SEC. 2. DEFINITIONS.
In this Act, the following definitions shall apply:
(1) Adjustable rate mortgage.--The term ``adjustable
rate mortgage'' means a residential mortgage that has
an interest rate that is subject to change. A
residential mortgage that (A) does not fully amortize
over the term of the obligation, and (B) contains a
conditional right to refinance or modify the
unamortized principal at the maturity date of the term,
shall be considered to be an adjustable rate mortgage
for purposes of this Act.
(2) Cancellation date.--The term ``cancellation
date'' means--
(A) * * *
(B) with respect to an adjustable rate
mortgage, at the option of the mortgagor, the
date on which the principal balance of the
mortgage--
(i) based solely on [amortization
schedules] the amortization schedule
then in effect for that mortgage, and
irrespective of the outstanding balance
for that mortgage on that date, is
first scheduled to reach 80 percent of
the original value of the property
securing the loan; or
(ii) based solely on actual payments,
first reaches 80 percent of the
original value of the property securing
the loan.
* * * * * * *
(4) Good payment history.--The term ``good payment
history'' means, with respect to a mortgagor, that the
mortgagor has not--
(A) made a mortgage payment that was 60 days
or longer past due during the 12-month period
beginning 24 months before the date the later
of (i) on which the mortgage reaches the
cancellation date, or (ii) the date that the
mortgagor submits a request for cancellation
under section 3(a)(1); or
(B) made a mortgage payment that was 30 days
or longer past due during the 12-month period
preceding the later of (i) the date on which
the mortgage reaches the cancellation date, or
(ii) the date that the mortgagor submits a
request for cancellation under section 3(a)(1).
* * * * * * *
(6) Amortization schedule then in effect.--The term
``amortization schedule then in effect'' means, with
respect to an adjustable rate mortgage, a schedule
established at the time at which the residential
mortgage transaction is consummated or, if such
schedule has been changed or recalculated, is the most
recent schedule under the terms of the note or
mortgage, which shows--
(A) the amount of principal and interest that
is due at regular intervals to retire the
principal balance and accrued interest over the
remaining amortization period of the loan; and
(B) the unpaid balance of the loan after each
such scheduled payment is made.
(7) Midpoint of the amortization period.--The term
``midpoint of the amortization period'' means, with
respect to a residential mortgage transaction, the
point in time that is halfway through the period that
begins upon the first day of the amortization period
established at the time a residential mortgage
transaction is consummated and ends upon the completion
of the entire period over which the mortgage is
scheduled to be amortized.
[(6)] (8) Mortgage insurance.--The term ``mortgage
insurance'' means insurance, including any mortgage
guaranty insurance, against the nonpayment of, or
default on, an individual mortgage or loan involved in
a residential mortgage transaction.
[(7)] (9) Mortgage insurer.--The term ``mortgage
insurer'' means a provider of private mortgage
insurance, as described in this Act, that is authorized
to transact such business in the State in which the
provider is transacting such business.
[(8)] (10) Mortgagee.--The term ``mortgagee'' means
the holder of a residential mortgage at the time at
which that mortgage transaction is consummated.
[(9)] (11) Mortgagor.--The term ``mortgagor'' means
the original borrower under a residential mortgage or
his or her successors or assignees.
[(10)] (12) Original value.--The term ``original
value'', with respect to a residential mortgage
transaction, means the lesser of the sales price of the
property securing the mortgage, as reflected in the
contract, or the appraised value at the time at which
the subject residential mortgage transaction was
consummated. In the case of a residential mortgage
transaction for refinancing the principal residence of
the mortgagor, such term means only the appraised value
relied upon by the mortgagee to approve the refinance
transaction.
[(11)] (13) Private mortgage insurance.--The term
``private mortgage insurance'' means mortgage insurance
other than mortgage insurance made available under the
National Housing Act, title 38 of the United States
Code, or title V of the Housing Act of 1949.
[(12)] (14) Residential mortgage.--The term
``residential mortgage'' means a mortgage, loan, or
other evidence of a security interest created with
respect to a single-family dwelling that is the
[primary] principal residence of the mortgagor.
[(13)] (15) Residential mortgage transaction.--The
term ``residential mortgage transaction'' means a
transaction consummated on or after the date that is 1
year after the date of enactment of this Act, in which
a mortgage, deed of trust, purchase money security
interest arising under an installment sales contract,
or equivalent consensual security interest is created
or retained against a single-family dwelling that is
the [primary] principal residence of the mortgagor to
finance the acquisition, initial construction, or
refinancing of that dwelling.
[(14)] (16) Servicer.--The term ``servicer'' has the
same meaning as in section 6(i)(2) of the Real Estate
Settlement Procedures Act of 1974, with respect to a
residential mortgage.
[(15)] (17) Single-family dwelling.--The term
``single-family dwelling'' means a residence consisting
of 1 family dwelling unit.
[(16)] (18) Termination date.--The term ``termination
date'' means--
(A) with respect to a fixed rate mortgage,
the date on which the principal balance of the
mortgage, based solely on the initial
amortization schedule for that mortgage, and
irrespective of the outstanding balance for
that mortgage on that date, is first scheduled
to reach 78 percent of the original value of
the property securing the loan; and
(B) with respect to an adjustable rate
mortgage, the date on which the principal
balance of the mortgage, based solely on
[amortization schedules] the amortization
schedule then in effect for that mortgage, and
irrespective of the outstanding balance for
that mortgage on that date, is first scheduled
to reach 78 percent of the original value of
the property securing the loan.
SEC. 3. TERMINATION OF PRIVATE MORTGAGE INSURANCE.
(a) Borrower Cancellation.--A requirement for private
mortgage insurance in connection with a residential mortgage
transaction shall be canceled on the cancellation date or any
later date that the mortgagor fulfills all of the requirements
under paragraphs (1) through (4), if the mortgagor--
(1) submits a request in writing to the servicer that
cancellation be initiated;
(2) has a good payment history with respect to the
residential mortgage; [and]
(3) is current on the payments required by the terms
of the residential mortgage transaction; and
[(3)] (4) has satisfied any requirement of the holder
of the mortgage (as of the date of a request under
paragraph (1)) for--
(A) evidence (of a type established in
advance and made known to the mortgagor by the
servicer promptly upon receipt of a request
under paragraph (1)) that the value of the
property securing the mortgage has not declined
below the original value of the property; and
(B) certification that the equity of the
mortgagor in the residence securing the
mortgage is unencumbered by a subordinate lien.
(b) Automatic Termination.--A requirement for private
mortgage insurance in connection with a residential mortgage
transaction shall terminate with respect to payments for that
mortgage insurance made by the mortgagor--
(1) * * *
[(2) on the date after the termination date on which
the mortgagor becomes current on the payments required
by the terms of the residential mortgage transaction.]
(2) if the mortgagor is not current on the
termination date, on the first day of the first month
beginning after the date that the mortgagor becomes
current on the payments required by the terms of the
residential mortgage transaction.
(c) Final Termination.--If a requirement for private mortgage
insurance is not otherwise canceled or terminated in accordance
with subsection (a) or (b), in no case may such a requirement
be imposed on residential mortgage transactions beyond the
first day of the month immediately following the date that is
the midpoint of the amortization period of the loan if the
mortgagor is current on the payments required by the terms of
the mortgage.
(d) Treatment of Loan Modifications.--If a mortgagor and
mortgagee (or holder of the mortgage) agree to a modification
of the terms or conditions of a loan pursuant to a residential
mortgage transaction, the cancellation date, termination date,
or final termination shall be recalculated to reflect the
modified terms and conditions of such loan.
[(d)] (e) No Further Payments.--No payments or premiums may
be required from the mortgagor in connection with a private
mortgage insurance requirement terminated or canceled under
this section--
(1) in the case of cancellation under subsection (a),
more than 30 days after the later of--
(A) the date on which a request under
subsection (a)(1) is received; or
(B) the date on which the mortgagor satisfies
any evidence and certification requirements
under subsection [(a)(3)] (a)(4);
(2) in the case of termination under subsection (b),
more than 30 days after the termination date or the
date referred to in subsection (b)(2), as applicable;
and
(3) in the case of termination under subsection (c),
more than 30 days after the final termination date
established under that subsection.
[(e)] (f) Return of Unearned Premiums.--
(1) In general.--Not later than 45 days after the
termination or cancellation of a private mortgage
insurance requirement under this section, all unearned
premiums for private mortgage insurance shall be
returned to the mortgagor by the servicer.
(2) Transfer of funds to servicer.--Not later than 30
days after notification by the servicer of termination
or cancellation of private mortgage insurance under
this Act with respect to a mortgagor, a mortgage
insurer that is in possession of any unearned premiums
of that mortgagor shall transfer to the servicer of the
subject mortgage an amount equal to the amount of the
unearned premiums for repayment in accordance with
paragraph (1).
[(f)] (g) Exceptions for High Risk Loans.--
(1) In general.--The termination and cancellation
provisions in subsections (a) and (b) do not apply to
any residential [mortgage or] mortgage transaction
that, at the time at which the residential mortgage
transaction is consummated, has high risks associated
with the extension of the loan--
(A) as determined in accordance with
guidelines published by the Federal National
Mortgage Association and the Federal Home Loan
Mortgage Corporation, in the case of a mortgage
loan with an original principal balance that
does not exceed the applicable annual
conforming loan limit for the secondary market
established pursuant to section 305(a)(2) of
the Federal Home Loan Mortgage Corporation Act,
so as to require the imposition or continuation
of a private mortgage insurance requirement
beyond the terms specified in subsection (a) or
(b) of section 3; or
(B) as determined by the mortgagee in the
case of any other mortgage, except that
termination shall occur--
(i) with respect to a fixed rate
mortgage, on the date on which the
principal balance of the mortgage,
based solely on the initial
amortization schedule for that
mortgage, and irrespective of the
outstanding balance for that mortgage
on that date, is first scheduled to
reach 77 percent of the original value
of the property securing the loan; and
(ii) with respect to an adjustable
rate mortgage, on the date on which the
principal balance of the mortgage,
based solely on [amortization
schedules] the amortization schedule
then in effect for that mortgage, and
irrespective of the outstanding balance
for that mortgage on that date, is
first scheduled to reach 77 percent of
the original value of the property
securing the loan.
(2) Termination at midpoint.--A private mortgage
insurance requirement in connection with a residential
[mortgage or] mortgage transaction described in
paragraph (1) shall terminate in accordance with
subsection (c).
(3) Rule of construction.--Nothing in this subsection
may be construed to require a [mortgage or] residential
mortgage or residential mortgage transaction described
in paragraph (1)(A) to be purchased by the Federal
National Mortgage Association or the Federal Home Loan
Mortgage Corporation.
* * * * * * *
(h) Accrued Obligation for Premium Payments.--The
cancellation or termination under this section of the private
mortgage insurance of a mortgagor shall not affect the rights
of any mortgagee, servicer, or mortgage insurer to enforce any
obligation of such mortgagor for premium payments accrued prior
to the date on which such cancellation or termination occurred.
SEC. 4. DISCLOSURE REQUIREMENTS.
(a) Disclosures for New Mortgages at Time of Transaction.--
(1) Disclosures for non-exempted transactions.--In
any case in which private mortgage insurance is
required in connection with a residential [mortgage or]
mortgage transaction (other than a [mortgage or]
residential mortgage transaction described in section
[3(f)(1)] 3(g)(1)), at the time at which the
transaction is consummated, the mortgagee shall provide
to the mortgagor--
(A) if the transaction relates to a fixed
rate mortgage--
(i) a written initial amortization
schedule; and
(ii) written notice--
(I) * * *
* * * * * * *
(IV) that there are
exemptions to the right to
cancellation and automatic
termination of a requirement
for private mortgage insurance
in accordance with section
[3(f)] 3(g) of this Act, and
whether such an exemption
applies at that time to that
transaction; and
(B) if the transaction relates to an
adjustable rate mortgage, a written notice
that--
(i) * * *
* * * * * * *
(iii) there are exemptions to the
right of cancellation and automatic
termination of a requirement for
private mortgage insurance in
accordance with section [3(f)] 3(g) of
this Act, and whether such an exemption
applies at that time to that
transaction.
(2) Disclosures for excepted transactions.--In the
case of a [mortgage or] residential mortgage
transaction described in section [3(f)(1)] 3(g)(1), at
the time at which the transaction is consummated, the
mortgagee shall provide written notice to the mortgagor
that in no case may private mortgage insurance be
required beyond the date that is the midpoint of the
amortization period of the loan, if the mortgagor is
current on payments required by the terms of the
residential mortgage.
* * * * * * *
(c) Inclusion in Other Annual Notices.--The information and
disclosures required under subsection (b) and [paragraphs
(1)(B) and (3) of subsection (a)] subsection (a)(3) may be
provided on the annual disclosure relating to the escrow
account made as required under the Real Estate Settlement
Procedures Act of 1974, or as part of the annual disclosure of
interest payments made pursuant to Internal Revenue Service
regulations, and on a form promulgated by the Internal Revenue
Service for that purpose.
(d) Standardized Forms.--The mortgagee or servicer may use
standardized forms for the provision of disclosures required
under this section, which disclosures shall relate to the
mortgagor's rights under this Act.
* * * * * * *
SEC. 6. DISCLOSURE REQUIREMENTS FOR LENDER PAID MORTGAGE INSURANCE.
(a) * * *
* * * * * * *
(c) Notices to Mortgagor.--In the case of lender paid
mortgage insurance that is required in connection with [a
residential mortgage or] a residential mortgage transaction--
(1) not later than the date on which a loan
commitment is made for the residential mortgage
transaction, the prospective mortgagee shall provide to
the prospective mortgagor a written notice--
(A) * * *
(B) that lender paid mortgage insurance--
(i) usually results in a residential
mortgage having a higher interest rate
than it would in the case of borrower
paid mortgage insurance; and
(ii) terminates only when the
residential mortgage is refinanced
(under the meaning given such term in
the regulations issued by the Board of
Governors of the Federal Reserve System
to carry out the Truth in Lending Act
(15 U.S.C. 1601 et seq.)), paid off, or
otherwise terminated; and
(2) not later than 30 days after the termination date
that would apply in the case of borrower paid mortgage
insurance, the servicer shall provide to the mortgagor
a written notice indicating that the mortgagor may wish
to review financing options that could eliminate the
requirement for private mortgage insurance in
connection with the residential mortgage transaction.
(d) Standard Forms.--The servicer of a residential mortgage
transaction may develop and use a standardized form or forms
for the provision of notices to the mortgagor, as required
under subsection (c).
* * * * * * *
----------
HOUSING ACT OF 1949
* * * * * * *
TITLE V--FARM HOUSING
* * * * * * *
other special loans and grants for minor improvements to farm housing
and buildings
Sec. 504. (a) The Secretary may make a loan, grant, or
combined loan and grant to an eligible very low-income
applicant in order to improve or modernize a rural dwelling, to
make the dwelling safer or more sanitary, or to remove hazards.
The Secretary may make a loan or grant under this subsection to
the applicant to cover the cost of any or all repairs,
improvements, or additions such as repairing roofs, providing
sanitary waste facilities, providing a convenient and sanitary
water supply, repairing or providing structural supports, or
making similar repairs, additions, improvements, including all
preliminary and installation costs in obtaining central water
and sewer service. The maximum amount of a grant, a loan, or a
loan and grant shall not exceed such limitations as the
Secretary determines to be appropriate. Any portion of the sums
advanced to the borrower treated as a loan shall be secured and
be repayable within twenty years in accordance with the
principles and conditions set forth in this title, except that
a loan for less than [$2,500] $7,500 need be evidenced only by
a promissory note. Sums made available by grant may be made
subject to the conditions set forth in this title for the
protection of the Government with respect to contributions made
on loans made by the Secretary.
* * * * * * *
insurance of loans for the provision of housing and related facilities
for domestic farm labor
Sec. 514. (a) The Secretary is authorized to insure and
make commitments to insure loans made by lenders other than the
United States to the owner of any farm or any association of
farmers for the purpose of providing housing and related
facilities for domestic farm labor, or to any Indian tribe for
such purpose, or to any State (or political subdivision
thereof), or any broad-based public or private nonprofit
organization, or any [nonprofit limited partnership] limited
partnership in which the general partner is a nonprofit entity,
or any nonprofit organization of farm workers incorporated
within the State for the purpose of providing housing and
related facilities for domestic farm labor any place within the
State where a need exists. All such loans shall be made in
accordance with terms and conditions substantially identical
with those specified in section 502, except that--
(1) * * *
* * * * * * *
[(j) Equity Skimming Penalty.--Whoever, as an owner, agent,
or manger, or who is otherwise in custody, control, or
possession of property that is security for a loan made or
insured under this section willfully uses, or authorizes the
use, of any part of the rents, assets, proceeds, income, or
other funds derived from such property, for any purpose other
than to meet actual or necessary expenses of the property, or
for any other purpose not authorized by this title or the
regulations adopted pursuant to this title, shall be fined not
more than $250,000 or imprisoned not more than 5 years, or
both.]
direct and insured loans to provide housing and related facilities for
elderly persons and families in rural areas
Sec. 515. (a) * * *
* * * * * * *
[(z) Equity Skimming Penalty.--Whoever, as an owner, agent,
or manager, or who is otherwise in custody, control, or
possession of property that is security for a loan made or
insured under this section willfully uses, or authorizes the
use, of any part of the rents, assets, proceeds, income, or
other fund derived from such property, for any purpose other
than to meet actual or necessary expenses of the property, or
for any other purpose not authorized by this title or the
regulations adopted pursuant to this title, shall be fined not
more than $250,000 or imprisoned not more than 5 years, or
both.]
(z) Accounting and Recordkeeping Requirements.--
(1) Accounting standards.--The Secretary shall
require that borrowers in programs authorized by this
section maintain accounting records in accordance with
generally accepted accounting principles for all
projects that receive funds from loans made or
guaranteed by the Secretary under this section.
(2) Record retention requirements.--The Secretary
shall require that borrowers in programs authorized by
this section retain for a period of not less than 6
years and make available to the Secretary in a manner
determined by the Secretary, all records required to be
maintained under this subsection and other records
identified by the Secretary in applicable regulations.
(aa) Double Damages for Unauthorized Use of Housing Projects
Assets and Income.--
(1) Action to recover assets or income.--
(A) In general.--The Secretary may request
the Attorney General to bring an action in a
United States district court to recover any
assets or income used by any person in
violation of the provisions of a loan made or
guaranteed by the Secretary under this section
or in violation of any applicable statute or
regulation.
(B) Improper documentation.--For purposes of
this subsection, a use of assets or income in
violation of the applicable loan, loan
guarantee, statute, or regulation shall include
any use for which the documentation in the
books and accounts does not establish that the
use was made for a reasonable operating expense
or necessary repair of the project or for which
the documentation has not been maintained in
accordance with the requirements of the
Secretary and in reasonable condition for
proper audit.
(C) Definition.--For the purposes of this
subsection, the term ``person'' means--
(i) any individual or entity that
borrows funds in accordance with
programs authorized by this section;
(ii) any individual or entity holding
25 percent or more interest of any
entity that borrows funds in accordance
with programs authorized by this
section; and
(iii) any officer, director, or
partner of an entity that borrows funds
in accordance with programs authorized
by this section.
(2) Amount recoverable.--
(A) In general.--In any judgment favorable to
the United States entered under this
subsection, the Attorney General may recover
double the value of the assets and income of
the project that the court determines to have
been used in violation of the provisions of a
loan made or guaranteed by the Secretary under
this section or any applicable statute or
regulation, plus all costs related to the
action, including reasonable attorney and
auditing fees.
(B) Application of recovered funds.--
Notwithstanding any other provision of law, the
Secretary may use amounts recovered under this
subsection for activities authorized under this
section and such funds shall remain available
for such use until expended.
(3) Time limitation.--Notwithstanding any other
provision of law, an action under this subsection may
be commenced at any time during the 6-year period
beginning on the date that the Secretary discovered or
should have discovered the violation of the provisions
of this section or any related statutes or regulations.
(4) Continued availability of other remedies.--The
remedy provided in this subsection is in addition to
and not in substitution of any other remedies available
to the Secretary or the United States.
* * * * * * *
definition of rural area
Sec. 520. As used in this title, the terms ``rural'' and
``rural area'' mean any open country, or any place, town,
village, or city which is not (except in the cases of Pajaro,
in the State of California, and Guadalupe, in the State of
Arizona) part of or associated with an urban area and which (1)
has a population not in excess of 2,500 inhabitants, or (2) has
a population in excess of 2,500 but not in excess of 10,000 if
it is rural in character, or (3) has a population in excess of
10,000 but not in excess of 20,000, and (A) is not contained
within a standard metropolitan statistical area, and (B) has a
serious lack of mortgage credit for lower and moderate-income
families, as determined by the Secretary and the Secretary of
Housing and Urban Development. For purposes of this title, any
area classifed as ``rural'' or a ``rural area'' prior to
October 1, 1990, and determined not to be ``rural'' or a
``rural area'' as a result of data received from or after the
1990 decennial census shall continue to be so classified until
the receipt of data from the decennial census in the year
[2000] 2010, if such area has a population in excess of 10,000
but not in excess of 25,000, is rural in character, and has a
serious lack of mortgage credit for lower and moderate-income
families. Notwithstanding any other provision of this section,
the city of Plainview, Texas, shall be considered a rural area
for purposes of this title, and the city of Altus,
Oklahoma,shall be considered a rural area for purposes of this title
until the receipt of data from the decennial census in the year 2000.
loans to provide occupant-owned, rental, and cooperative housing for
low- and moderate-income persons and families
Sec. 521. (a)(1) * * *
* * * * * * *
(5) Operating assistance for migrant farmworker projects.--
(A) Authority.--In the case of housing (and related
facilities) for migrant farmworkers provided or
assisted with a loan under section 514 or a grant under
section 516, the Secretary may, at the request of the
owner of the [project] tenant or unit, use amounts
provided for rental assistance payments under paragraph
(2) to provide assistance for the costs of operating
the project. Any project assisted under this paragraph
may not receive rental assistance under paragraph (2).
* * * * * * *
SEC. 538. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL
AREAS.
(a) * * *
* * * * * * *
(c) Eligible Borrowers.--A loan guaranteed under this section
may be made to a nonprofit organization, an agency or body of
any State government or political subdivision thereof, an
Indian organization, or a private entity.
(f) Loan Terms.--Each loan guaranteed pursuant to this
section shall--
[(1) provide for complete amortization by periodic
payments to be made for a term not to exceed 40 years;]
(1) be made for a period of not less than 25 nor
greater than 40 years from the date the loan was made
and may provide for amortization of the loan over a
period of not to exceed 40 years with a final payment
of the balance due at the end of the loan term;
* * * * * * *
(i) Payment Under Guarantee.--
(1) * * *
(2) Foreclosure.--After receiving notice under
paragraph (1) and providing written notice of action
under this paragraph to the Secretary, the holder of
the guarantee certificate for the loan may initiate
foreclosure proceedings for the loan in a court of
competent jurisdiction, in accordance with regulations
issued by the Secretary, to obtain possession of the
security property. After the court issues a final order
authorizing foreclosure on the property, the holder of
the certificate shall be entitled to payment by the
Secretary under the guarantee (in the amount provided
under subsection (b)) upon [(A) conveyance to the
Secretary of title to the security property, (B)
submission to the Secretary of a claim for payment
under the guarantee, and (C) assignment] (A) submission
to the Secretary of a claim for payment under the
guarantee, and (B) assignment to the Secretary of all
the claims of the holder of the guarantee against the
borrower or others arising out of the loan transaction
or foreclosure proceedings, except claims released with
the consent of the Secretary.
* * * * * * *
[(l) Nonassumption.--The borrower under a loan that is
guaranteed under this section and under which any portion of
the principal obligation or interest remains outstanding may
not be relieved of liability with respect to the loan,
notwithstanding the transfer of property for which the loan was
made.]
[(m)] (l) Geographical Targeting.--
(1) Study.--The Secretary shall provide for an
independent entity to conduct a study to determine the
extent to which borrowers in the United States will
utilize loan guarantees under this section, the rural
areas in the United States in which borrowers can best
utilize and most need loans guaranteed under this
section, and the rural areas in the United States in
which housing of the type eligible for a loan guarantee
under this section is most needed by low- and moderate-
income families. The Secretary shall require the
independent entity conducting the study to submit a
report to the Secretary and to the Congress describing
the results of the study not later than the expiration
of the 90-day period beginning on the date of the
enactment of the Homesteading and Housing Opportunity
Program Extension Act of 1996.
(2) Targeting.--In providing loan guarantees under
this section, the Secretary shall establish standards
to target and give priority to rural areas in which
borrowers can best utilize and most need loans
guaranteed under this section, as determined by the
Secretary based on the results of the study under
paragraph (1) and any other information the Secretary
considers appropriate.
[(n)] (m) Inapplicability of Credit-Elsewhere Test.--Section
501(c) shall not apply to guarantees, or loans guaranteed,
under this section.
[(o)] (n) Tenant Protections.--The Secretary shall establish
standards for the treatment of tenants of housing developed
using amounts from a loan guaranteed under this section, which
shall incorporate, to the extent applicable, existing standards
applicable to tenants of housing developed with loans made
under section 515. Such standards shall include standards for
fair housing and equal opportunity, lease and grievance
procedures, and tenant appeals of adverse actions.
[(p)] (o) Housing Standards.--The standards established under
section 515(m) for housing and related facilities assisted
under section 515 shall apply to housing and related facilities
the development costs of which are financed in whole or in part
with a loan guaranteed under this section.
[(q)] (p) Limitation on Commitments To Guarantee Loans.--
(1) Requirement of appropriations for cost subsidy.--
The authority of the Secretary to enter into
commitments to guarantee loans under this section, and
to guarantee loans,shall be effective for each fiscal
year only to the extent that appropriations of budget authority to
cover the costs (as such term is defined in section 502 of the
Congressional Budget Act of 1974) of the guarantees are made in advance
for such fiscal year.
(2) Annual limitation on amount of loan guarantee.--
In each fiscal year, the Secretary may enter into
commitments to guarantee loans under this section only
to the extent that the costs of the guarantees entered
into in such fiscal year do not exceed such amount as
may be provided in appropriation Acts for such fiscal
year.
[(r)] (q) Report.--
(1) In general.--The Secretary shall submit a report
to the Congress, not later than the expiration of the
2-year period beginning on the date of the enactment of
the Housing Opportunity Program Extension Act of 1996,
describing the program under this section for
guaranteeing loans.
(2) Contents.--The report shall--
(A) describe the types of borrowers providing
housing with loans guaranteed under this
section, the areas served by the housing
provided and the geographical distribution of
the housing, the levels of income of the
residents of the housing, the number of
dwelling units provided, the extent to which
borrowers under such loans have obtained other
financial assistance for development costs of
housing provided with the loans, and the extent
to which borrowers under such loans have used
low-income housing tax credits provided under
section 42 of the Internal Revenue Code of 1986
in connection with the housing provided with
the loans;
(B) analyze the financial viability of the
housing provided with loans guaranteed under
this section and the need for project-based
rental assistance for such housing;
(C) include any recommendations of the
Secretary for expanding or improving the
program under this section for guaranteeing
loans; and
(D) include any other information regarding
the program for guaranteeing loans under this
section that the Secretary considers
appropriate.
[(s)] (r) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) The term ``development cost'' has the meaning
given the term in section 515(e).
(2) The term ``eligible lender'' means a lender
determined by the Secretary to meet the requirements of
subparagraph (A), (B), (C), or (D) of subsection
(e)(1).
(3) The terms ``housing'' and ``related facilities''
have the meanings given such terms in section 515(e).
(4) Indian organization.--The term ``Indian
organization'' means the governing body of an Indian
tribe, band, group, pueblo, or community, including
native villages or native groups, as defined by the
Alaska Claims Settlement Act (43 U.S.C. 1601 et seq.),
(including corporations organized by the Kenai, Juneau,
Sitka, and Kodiak) which is eligible for services from
the Bureau of Indian Affairs or an entity established
or recognized by the governing body for the purpose of
financing economic development.
[(t)](s) Authorization of Appropriations.--There are
authorized to be appropriated for each fiscal year for costs
(as such term is defined in section 502 of the Congressional
Budget Act of 1974) of loan guarantees made under this section
such sums as may be necessary for such fiscal year to provide
guarantees under this section for eligible loans having an
aggregate principal amount of $500,000,000.
[(u)] (t) Tax-Exempt Financing.--The Secretary may not deny a
guarantee under this section on the basis that the interest on
the loan or on an obligation supporting the loan for which a
guarantee is sought is exempt from inclusion in gross income
for purposes of chapter I of the Internal Revenue Code of 1986.
(u) Fee Authority.--
(1) In general.--Any amounts collected by the
Secretary pursuant to the fees charged to lenders for
loan guarantees issued under this section shall be used
to offset costs (as defined by section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a)) of
loan guarantees made under this section.
(2) Excess funds.--Any fees described in paragraph
(1) collected in excess of the amount required in
paragraph (1) during a fiscal year, shall be available
to the Secretary, without further appropriation and
without fiscal year limitation, for use by the
Secretary for costs of administering (including
monitoring) program activities authorized pursuant to
this section and shall be in addition to other funds
made available for this purpose.
(v) Defaults of Loans Secured by Reservation Lands.--In the
event of a default involving a loan to an Indian tribe or
tribal corporation made under this section which is secured by
an interest in land within such tribe's reservation (as
determined by the Secretary of the Interior), including a
community in Alaska incorporated by the Secretary of the
Interior pursuant to the Indian Reorganization Act (25 U.S.C.
461 et seq.), the lender shall only pursue liquidation after
offering to transfer the account to an eligible tribal member,
the tribe, or the Indian housing authority serving the tribe.
If the lender subsequently proceeds to liquidate the account,
the lender shall not sell, transfer, or otherwise dispose of or
alienate the property except to one of the entities described
in the preceding sentence.
* * * * * * *
SEC. 543. ENFORCEMENT PROVISIONS.
(a) Equity Skimming.--
(1) Criminal penalty.--Whoever, as an owner, agent,
employee, or manager, or is otherwise in custody,
control, or possession of property that is security for
a loan made or guaranteed under this title, willfully
uses, or authorizes the use, of any part of the rents,
assets, proceeds, income, or other funds derived from
such property, for any purpose other than to meet
actual, reasonable, and necessary expenses of the
property, or for any other purpose not authorized by
this title or the regulations adopted pursuant to this
title, shall be fined under title 18, United States
Code, or imprisoned not more than 5 years, or both.
(2) Civil sanctions.--An entity or individual who as
an owner, operator, employee, or manager, or who acts
as an agent for a property that is security for a loan
made or guaranteed under this title where any part of
the rents, assets, proceeds, income, or other funds
derived from such property are used for any purpose
other than to meet actual, reasonable, and necessary
expenses of the property, or for any other purpose not
authorized by this title or the regulations adopted
pursuant to this title, shall be subject to a fine of
not more than $25,000 per violation. The sanctions
provided in this paragraph may be imposed in addition
to any other civil sanctions or civil monetary
penalties authorized by law.
(b) Civil Monetary Penalties.--
(1) In general.--The Secretary may, after notice and
opportunity for a hearing, impose a civil monetary
penalty in accordance with this subsection against any
individual or entity, including its owners, officers,
directors, general partners, limited partners, or
employees, who knowingly and materially violate, or
participate in the violation of, the provisions of this
title, the regulations issued by the Secretary pursuant
to this title, or agreements made in accordance with
this title, by--
(A) submitting information to the Secretary
that is false;
(B) providing the Secretary with false
certifications;
(C) failing to submit information requested
by the Secretary in a timely manner;
(D) failing to maintain the property subject
to loans made or guaranteed under this title in
good repair and condition, as determined by the
Secretary;
(E) failing to provide management for a
project which received a loan made or
guaranteed under this title that is acceptable
to the Secretary; or
(F) failing to comply with the provisions of
applicable civil rights statutes and
regulations.
(2) Conditions for renewal or extension.--The
Secretary may require that expiring loan or assistance
agreements entered into under this title shall not be
renewed or extended unless the owner executes an
agreement to comply with additional conditions
prescribed by the Secretary, or executes a new loan or
assistance agreement in the form prescribed by the
Secretary.
(3) Amount.--
(A) In general.--The amount of a civil
monetary penalty imposed under this subsection
shall not exceed the greater of--
(i) twice the damages the Department
of Agriculture, the guaranteed lender,
or the project that is secured for a
loan under this section suffered or
would have suffered as a result of the
violation; or
(ii) $50,000 per violation.
(B) Determination.--In determining the amount
of a civil monetary penalty under this
subsection, the Secretary shall take into
consideration--
(i) the gravity of the offense;
(ii) any history of prior offenses by
the violator (including offenses
occurring prior to the enactment of
this section);
(iii) the ability of the violator to
pay the penalty;
(iv) any injury to tenants;
(v) any injury to the public;
(vi) any benefits received by the
violator as a result of the violation;
(vii) deterrence of future
violations; and
(viii) such other factors as the
Secretary may establish by regulation.
(4) Payment of penalties.--No payment of a penalty
assessed under this section may be made from funds
provided under this title or from funds of a project
which serve as security for a loan made or guaranteed
under this title.
(5) Remedies for noncompliance.--
(A) Judicial intervention.--If a person or
entity fails to comply with a final
determination by the Secretary imposing a civil
monetary penalty under this subsection, the
Secretary may request the Attorney General of
the United States to bring an action in an
appropriate United States district court to
obtain a monetary judgment against such
individual or entity and such other relief as
may be available. The monetary judgment may, in
the court's discretion, include the attorney's
fees and other expenses incurred by the United
States in connection with the action.
(B) Reviewability of determination.--In an
action under this paragraph, the validity and
appropriateness of a determination by the
Secretary imposing the penalty shall not be
subject to review.
----------
TITLE 18, UNITED STATES CODE
* * * * * * *
PART I--CRIMES
* * * * * * *
CHAPTER 73--OBSTRUCTION OF JUSTICE
* * * * * * *
Sec. 1516. Obstruction of Federal audit
(a) Whoever, with intent to deceive or defraud the United
States, endeavors to influence, obstruct, or impede a Federal
auditor in the performance of official duties relating to a
person receiving in excess of $100,000, directly or indirectly,
from the United States in any 1 year period under a contract or
subcontract, or relating to any property that is security for a
mortgage note that is insured, guaranteed, acquired, or held by
the Secretary of Housing and Urban Development pursuant to any
Act administered by the Secretary, or relating to any property
that is security for a loan that is made or guaranteed under
title V of the Housing Act of 1949, shall be fined under this
title, or imprisoned not more than 5 years, or both.
* * * * * * *
CHAPTER 95--RACKETEERING
* * * * * * *
Sec. 1956. Laundering of monetary instruments
(a) * * *
* * * * * * *
(c) As used in this section--
(1) * * *
* * * * * * *
(7) the term ``specified unlawful activity'' means--
(A) * * *
* * * * * * *
(D) an offense under section 32 (relating to
the destruction of aircraft), section 37
(relating to violence at international
airports), section 115 (relating to
influencing, impeding, or retaliating against a
Federal official by threatening or injuring a
family member), section 152 (relating to
concealment of assets; false oaths and claims;
bribery), section 215 (relating to commissions
or gifts for procuring loans), section 351
(relating to congressional or Cabinet officer
assassination), any of sections 500 through 503
(relating to certain counterfeiting offenses),
section 513 (relating to securities of States
and private entities), section 542 (relating to
entry of goods by means of false statements),
section 545 (relating to smuggling goods into
the United States), section 549 (relating to
removing goods from Customs custody), section
641 (relating to public money, property, or
records), section 656 (relating to theft,
embezzlement, or misapplication by bank officer
or employee), section 657 (relating to lending,
credit, and insurance institutions), section
658 (relating to property mortgaged or pledged
to farm credit agencies), section 666 (relating
to theft or bribery concerning programs
receiving Federal funds), section 793, 794, or
798 (relating to espionage), section 831
(relating to prohibited transactions involving
nuclear materials), section 844 (f) or (i)
(relating to destruction by explosives or fire
of Government property or property affecting
interstate or foreign commerce), section 875
(relating to interstate communications),
section 956 (relating to conspiracy to kill,
kidnap, maim, or injure certain property in a
foreign country), section 1005 (relating to
fraudulent bank entries), 1006 (relating to
fraudulent Federal credit institution entries),
1007 (relating to Federal Deposit Insurance
transactions), 1014 (relating to fraudulent
loan or credit applications), 1032 (relating to
concealment of assets from conservator,
receiver, or liquidating agent of financial
institution), section 1111 (relating to
murder), section 1114 (relating to murder of
United States law enforcement officials),
section 1116 (relating to murder of foreign
officials, official guests, or internationally
protected persons), section 1201 (relating to
kidnapping), section 1203 (relating to hostage
taking), section 1361 (relating to willful
injury of Government property), section 1363
(relating to destruction of property within the
special maritime and territorial jurisdiction),
section 1708 (theft from the mail), section
1751 (relating to Presidential assassination),
section 2113 or 2114 (relating to bank and
postal robbery and theft), section 2280
(relating to violence against maritime
navigation), section 2281 (relating to violence
against maritime fixed platforms), or section
2319 (relating to copyright infringement),
section 2320 (relating to trafficking in
counterfeit goods and services),, section 2332
(relating to terrorist acts abroad against
United States nationals), section 2332a
(relating to use of weapons of mass
destruction), section 2332b (relating to
international terrorist acts transcending
national boundaries), or section 2339A
(relating to providing material support to
terrorists) of this title, section 46502 of
title 49, United States Code,, a felony
violation of the Chemical Diversion and
Trafficking Act of 1988 (relating to precursor
and essential chemicals), section 590 of the
Tariff Act of 1930 (19 U.S.C. 1590) (relating
to aviation smuggling), section 422 of the
Controlled Substances Act (relating to
transportation of drug paraphernalia), section
38(c) (relating to criminal violations) of the
Arms Export Control Act, section 11 (relating
to violations) of the Export Administration Act
of 1979, section 206 (relating to penalties) of
the International Emergency Economic Powers
Act, section 16 (relating to offenses and
punishment) of the Trading with the Enemy Act,
any felony violation of section 15 of the Food
Stamp Act of 1977 (relating to food stamp
fraud) involving a quantity of coupons having a
value of not less than $5,000, any violation of
section 543(a)(1) of the Housing Act of 1949
(relating to equity skimming), or any felony
violation of the Foreign Corrupt Practices Act;
or
----------
NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS ACT OF
1974
TITLE VI--MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS
short title
Sec. 601. This title may be cited as the ``National
Manufactured Housing Construction and Safety Standards Act of
1974''.
[statement of purpose
[Sec. 602. The Congress declares that the purposes of this
title are to reduce the number of personal injuries and deaths
and the amount of insurance costs and property damage resulting
from manufactured home accidents and to improve the quality and
durability of manufactured homes. Therefore, the Congress
determines that it is necessary to establish Federal
construction and safety standards for manufactured homes and to
authorize manufactured home safety research and development.]
findings and purposes
Sec. 602. (a) Findings.--The Congress finds that--
(1) manufactured housing plays a vital role in
meeting the housing needs of the Nation; and
(2) manufactured homes provide a significant resource
for affordable homeownership and rental housing
accessible to all Americans.
(b) Purposes.--The purposes of this title are--
(1) to facilitate the acceptance of the quality,
durability, safety, and affordability of manufactured
housing within the Department of Housing and Urban
Development;
(2) to facilitate the availability of affordable
manufactured homes and to increase homeownership for
all Americans;
(3) to provide for the establishment of practical,
uniform, and, to the extent possible, performance-based
Federal construction standards;
(4) to encourage innovative and cost-effective
construction techniques;
(5) to protect owners of manufactured homes from
unreasonable risk of personal injury and property
damage;
(6) to establish a balanced consensus process for the
development, revision, and interpretation of Federal
construction and safety standards for manufactured
homes and related regulations for the enforcement of
such standards;
(7) to ensure uniform and effective enforcement of
Federal construction and safety standards for
manufactured homes; and
(8) to ensure that the public interest in, and need
for, affordable manufactured housing is duly considered
in all determinations relating to the Federal standards
and their enforcement.
definitions
Sec. 603. As used in this title, the term--
(1) * * *
(2) ``[dealer] retailer'' means any person engaged in
the sale, leasing, or distribution of new manufactured
homes primarily to persons who in good faith purchase
or lease a manufactured home for purposes other than
resale;
* * * * * * *
(12) ``State'' includes each of the several States,
the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the Virigin Islands, the Canal Zone, and
American Samoa; [and]
(13) ``United States district courts'' means the
Federal district courts of the United States and the
United States courts of the Commonwealth of Puerto
Rico, Guam, the Virgin Islands, the Canal Zone, and
American Samoa[.]; and
(14) ``administering organization'' means the
recognized, voluntary, private sector, consensus
standards body with specific experience in developing
model residential building codes and standards
involving all disciplines regarding construction and
safety that administers the consensus standards
development process;
(15) ``consensus committee'' means the committee
established under section 604(a)(3);
(16) ``consensus standards development process''
means the process by which additions, revisions, and
interpretations to the Federal manufactured home
construction and safety standards and enforcement
regulations shall be developed and recommended to the
Secretary by the consensus committee;
(17) ``primary inspection agency'' means a State
agency or private organization that has been approved
by the Secretary to act as a design approval primary
inspection agency or a production inspection primary
inspection agency, or both;
(18) ``design approval primary inspection agency''
means a State agency or private organization that has
been approved by the Secretary to evaluate and either
approve or disapprove manufactured home designs and
quality control procedures;
(19) ``production inspection primary inspection
agency'' means a State agency or private organization
that has been approved by the Secretary to evaluate the
ability of manufactured home manufacturing plants to
comply with approved quality control procedures and
with the Federal manufactured home construction and
safety standards promulgated hereunder;
(20) ``installation standards'' means reasonable
specifications for the installation of a manufactured
home, at the place of occupancy, to ensure proper
siting, the joining of all sections of the home, and
the installation of stabilization, support, or
anchoring systems; and
(21) ``monitoring''--
(A) means the process of periodic review of
the primary inspection agencies, by the
Secretary or by a State agency under an
approved State plan pursuant to section 623, in
accordance with regulations recommended by the
consensus committee and promulgated in
accordance with section 604(b), which process
shall be for the purpose of ensuring that the
primary inspection agencies are discharging
their duties under this title; and
(B) may include the periodic inspection of
retail locations for transit damage, label
tampering, and retailer compliance with this
title.
federal manufactured home construction and safety standards
Sec. 604. [(a) The Secretary, after consultation with the
Consumer Product Safety Commission, shall establish by order
appropriate Federal manufactured home construction and safety
standards. Each such Federal manufactured home standard shall
be reasonable and shall meet the highest standards of
protection, taking into account existing State and local laws
relating to manufactured home safety and construction.
[(b) All orders issued under this section shall be issued
after notice and an opportunity for interested persons to
participate are provided in accordance with the provisions of
section 553 of title 5, United States Code.]
(a) Establishment.--
(1) Authority.--The Secretary shall establish, by
order, appropriate Federal manufactured home
construction and safety standards, each of which--
(A) shall--
(i) be reasonable and practical;
(ii) meet high standards of
protection consistent with the
enumerated purposes of this title; and
(iii) where appropriate, be
performance-based and objectively
stated; and
(B) except as provided in subsection (b),
shall be established in accordance with the
consensus standards development process.
(2) Consensus standards and regulatory development
process.--
(A) Initial agreement.--Not later than 180
days after the date of enactment of the
Manufactured Housing Improvement Act, the
Secretary shall enter into a contract with an
administering organization. The contractual
agreement shall--
(i) terminate on the date on which a
contract is entered into under
subparagraph (B); and
(ii) require the administering
organization to--
(I) appoint the initial
members of the consensus
committee under paragraph (3);
(II) administer the consensus
standards development process
until the termination of that
agreement; and
(III) administer the
consensus development and
interpretation process for
procedural and enforcement
regulations and regulations
specifying the permissible
scope and conduct of monitoring
until the termination of that
agreement.
(B) Competitively procured contract.--Upon
the expiration of the 4-year period beginning
on the date on which all members of the
consensus committee are appointed under
paragraph (3), the Secretary shall, using
competitive procedures (as such term is defined
in section 4 of the Office of Federal
Procurement Policy Act), enter into a
competitively awarded contract with an
administering organization. The administering
organization shall administer the consensus
process for the development and interpretation
of the Federal standards, the procedural and
enforcement regulations and regulations
specifying the permissible scope and conduct of
monitoring in accordance with this title.
(C) Performance review.--The Secretary--
(i) shall periodically review the
performance of the administering
organization; and
(ii) may replace the administering
organization with another qualified
technical or building code
organization, pursuant to competitive
procedures, if the Secretary determines
in writing that the administering
organization is not fulfilling the
terms of the agreement or contract to
which the administering organization is
subject or upon the expiration of the
agreement or contract.
(3) Consensus committee.--
(A) Purpose.--There is established a
committee to be known as the ``consensus
committee'', which shall, in accordance with
this title--
(i) provide periodic recommendations
to the Secretary to adopt, revise, and
interpret the Federal manufactured
housing construction and safety
standards in accordance with this
subsection;
(ii) provide periodic recommendations
to the Secretary to adopt, revise, and
interpret the procedural and
enforcement regulations, including
regulations specifying the permissible
scope and conduct of monitoring in
accordance with this subsection; and
(iii) be organized and carry out its
business in a manner that guarantees a
fair opportunity for the expression and
consideration of various positions and
for public participation.
(B) Membership.--The consensus committee
shall be composed of--
(i) 21 voting members appointed,
subject to approval by the Secretary,
by the administering organization from
among individuals who are qualified by
background and experience to
participate in the work of the
consensus committee; and
(ii) 1 member appointed by the
Secretary to represent the Secretary on
the consensus committee, who shall be a
nonvoting member.
(C) Disapproval.--The Secretary may
disapprove, in writing with the reasons set
forth, the appointment of an individual under
subparagraph (B)(i).
(D) Selection procedures and requirements.--
Each member shall be appointed in accordance
with the selection procedures, which shall be
established by the Secretary and which shall be
based on the procedures for consensus
committees promulgated by the American National
Standards Institute (or successor
organization), to ensure equal representation
on the consensus committee of the following
interest categories:
(i) Producers.--7 producers or
retailers of manufactured housing.
(ii) Users.--7 persons representing
consumer interests, such as consumer
organizations, recognized consumer
leaders, and owners who are residents
of manufactured homes.
(iii) General interest and public
officials.--7 general interest and
public official members.
(E) Balancing of interests.--
(i) In general.--In order to achieve
a proper balance of interests on the
consensus committee--
(I) the administering
organization in its
appointments shall ensure that
all directly and materially
affected interests have the
opportunity for fair and
equitable participation without
dominance by any single
interest; and
(II) the Secretary may reject
the appointment of any 1 or
more individuals in order to
ensure that there is not
dominance by any single
interest.
(ii) Dominance defined.--In this
subparagraph, the term ``dominance''
means a position or exercise of
dominant authority, leadership, or
influence by reason of superior
leverage, strength, or representation.
(F) Additional qualifications.--
(i) Financial independence.--No
individual appointed under subparagraph
(D)(ii) shall have, and 3 of
individuals appointed under
subparagraph (D)(iii) shall not have--
(I) a significant financial
interest in any segment of the
manufactured housing industry;
or
(II) a significant
relationship to any person
engaged in the manufactured
housing industry.
(ii) Post-employment ban.--An
individual appointed under clause (ii)
or (iii) of subparagraph (D) shall be
subject to a ban disallowing
compensation from the manufactured
housing industry during the period of,
and for the 1-year period after,
membership of that individual on the
consensus committee.
(G) Meetings.--
(i) Notice; open to public.--The
consensus committee shall provide
advance notice of each meeting of the
consensus committee to the Secretary
and publish advance notice of each such
meeting in the Federal Register. All
meetings of the consensus committee
shall be open to the public.
(ii) Reimbursement.--Members of the
consensus committee in attendance at
the meetings shall be reimbursed for
their actual expenses as authorized by
section 5703 of title 5, United States
Code, for persons employed
intermittently in Government service.
(H) Inapplicability of other laws.--
(i) Advisory committee act.--The
consensus committee shall not be
considered to be an advisory committee
for purposes of the Federal Advisory
Committee Act.
(ii) Title 18.--The members of the
consensus committee shall not be
subject to section 203, 205, 207, or
208 of title 18, United States Code, to
the extent of their proper
participation as members of the
consensus committee.
(iii) Ethics in government act of
1978.--The Ethics in Government Act of
1978 shall not apply to members of the
consensus committee to the extent of
their proper participation as members
of the consensus committee.
(I) Administration.--The consensus committee
and the administering organization shall--
(i) operate in conformance with the
procedures established by the American
National Standards Institute for the
development and coordination of
American National Standards; and
(ii) apply to the American National
Standards Institute and take such other
actions as may be necessary to obtain
accreditation from the American
National Standards Institute.
(J) Staff.--The administering organization
shall, upon the request of the consensus
committee, provide reasonable staff resources
to the consensus committee. Upon a showing of
need, the Secretary shall furnish technical
support to any of the various interest
categories on the consensus committee.
(K) Date of initial appointments.--The
initial appointments of all of the members of
the consensus committee shall be completed not
later than 90 days after the date on which an
administration agreement under paragraph (2)(A)
is completed with the administering
organization.
(4) Revisions of standards.--
(A) In general.--Beginning on the date on
which all members of the consensus committee
are appointed under paragraph (3), the
consensus committee shall, not less than once
during each 2-year period--
(i) consider revisions to the Federal
manufactured home construction and
safety standards; and
(ii) submit proposed revised
standards and regulations, if approved
in a vote of the consensus committee by
two-thirds of the members, to the
Secretary in the form of a proposed
rule, including an economic analysis.
(B) Publication of proposed revised
standards.--
(i) Publication by secretary.--The
consensus committee shall provide a
proposed revised standard under
subparagraph (A)(ii) to the Secretary
who shall, not later than 30 days after
receipt, publish such proposed revised
standard in the Federal Register for
notice and comment. Unless clause (ii)
applies, the Secretary shall provide an
opportunity for public comment on such
proposed revised standard and any such
comments shall be submitted directly to
the consensus committee without delay.
(ii) Publication of rejected proposed
revised standard.--If the Secretary
rejects the proposed revised standard,
the Secretary shall publish the
rejected proposed revised standard in
the Federal Register with the reasons
for rejection and any recommended
modifications set forth.
(C) Presentation of public comments;
publication of recommended revisions.--
(i) Presentation.--Any public
comments, views, and objections to a
proposed revised standard published
under subparagraph (B) shall be
presented by the Secretary to the
consensus committee upon their receipt
and in the manner received, in
accordance with procedures established
by the American National Standards
Institute.
(ii) Publication by the secretary.--
The consensus committee shall provide
to the Secretary any revisions proposed
by the consensus committee, which the
Secretary shall, not later than 7
calendar days after receipt, cause to
be published in the Federal Register as
a notice of the recommended revisions
of the consensus committee to the
standard, a notice of the submission of
the recommended revisions to the
Secretary, and a description of the
circumstances under which the proposed
revised standards could become
effective.
(iii) Publication of rejected
proposed revised standard.--If the
Secretary rejects the proposed revised
standard, the Secretary shall publish
the rejected proposed revised standard
in the Federal Register with the
reasons for rejection and any
recommended modifications set forth.
(5) Review by the secretary.--
(A) In general.--The Secretary shall either
adopt, modify, or reject a standard, as
submitted by the consensus committee under
paragraph (4)(A).
(B) Timing.--Not later than 12 months after
the date on which a standard is submitted to
the Secretary by the consensus committee, the
Secretary shall take action regarding such
standard under subparagraph (C).
(C) Procedures.--If the Secretary--
(i) adopts a standard recommended by
the consensus committee, the Secretary
shall--
(I) issue a final order
without further rulemaking; and
(II) cause the final order to
be published in the Federal
Register;
(ii) determines that any standard
should be rejected, the Secretary
shall--
(I) reject the standard; and
(II) cause to be published in
the Federal Register a notice
to that effect, together with
the reason or reasons for
rejecting the proposed
standard; or
(iii) determines that a standard
recommended by the consensus committee
should be modified, the Secretary
shall--
(I) cause the proposed
modified standard to be
published in the Federal
Register, together with an
explanation of the reason or
reasons for the determination
of the Secretary; and
(II) provide an opportunity
for public comment in
accordance with section 553 of
title 5, United States Code.
(D) Final order.--Any final standard under
this paragraph shall become effective pursuant
to subsection (c).
(6) Failure to act.--If the Secretary fails to take
final action under paragraph (5) and to publish notice
of the action in the Federal Register before the
expiration of the 12-month period beginning on the date
on which the proposed standard is submitted to the
Secretary under paragraph (4)(A)--
(A) the recommendations of the consensus
committee--
(i) shall be considered to have been
adopted by the Secretary; and
(ii) shall take effect upon the
expiration of the 180-day period that
begins upon the conclusion of such 12-
month period; and
(B) not later than 10 days after the
expiration of such 12-month period, the
Secretary shall cause to be published in the
Federal Register a notice of the failure of the
Secretary to act, the revised standard, and the
effective date of the revised standard, which
notice shall be deemed to be an order of the
Secretary approving the revised standards
proposed by the consensus committee.
(b) Other Orders.--
(1) Regulations.--The Secretary may issue procedural
and enforcement regulations as necessary to implement
the provisions of this title. The consensus committee
may submit to the Secretary proposed procedural and
enforcement regulations and recommendations for the
revision of such regulations.
(2) Interpretative bulletins.--The Secretary may
issue interpretative bulletins to clarify the meaning
of any Federal manufactured home construction and
safety standard or procedural and enforcement
regulation. The consensus committee may submit to the
Secretary proposed interpretative bulletins to clarify
the meaning of any Federal manufactured home
construction and safety standard or procedural and
enforcement regulation.
(3) Review by consensus committee.--Before issuing a
procedural or enforcement regulation or an
interpretative bulletin--
(A) the Secretary shall--
(i) submit the proposed procedural or
enforcement regulation or
interpretative bulletin to the
consensus committee; and
(ii) provide the consensus committee
with a period of 120 days to submit
written comments to the Secretary on
the proposed procedural or enforcement
regulation or the interpretative
bulletin; and
(B) if the Secretary rejects any significant
comment provided by the consensus committee
under subparagraph (A), the Secretary shall
provide a written explanation of the reasons
for the rejection to the consensus committee;
and
(C) following compliance with subparagraphs
(A) and (B), the Secretary shall--
(i) cause the proposed regulation or
interpretative bulletin and the
consensus committee's written comments
along with the Secretary's response
thereto to be published in the Federal
Register; and
(ii) provide an opportunity for
public comment in accordance with
section 553 of title 5, United States
Code.
(4) Required action.--The Secretary shall act on any
proposed regulation or interpretative bulletin
submitted by the consensus committee by approving or
rejecting the proposal within 120 days from the date
the proposal is received by the Secretary. The
Secretary shall either--
(A) approve the proposal and cause the
proposed regulation or interpretative bulletin
to be published for public comment in
accordance with section 553 of title 5, United
States Code; or
(B) reject the proposed regulation or
interpretative bulletin and--
(i) provide a written explanation of
the reasons for rejection to the
consensus committee; and
(ii) cause the proposed regulation
and the written explanation for the
rejection to be published in the
Federal Register.
(5) Emergency orders.--If the Secretary determines,
in writing, that such action is necessary in order to
respond to an emergency which jeopardizes the public
health or safety, or to address an issue on which the
Secretary determines that the consensus committee has
not made a timely recommendation, following a request
by the Secretary, the Secretary may issue an order that
is not developed under the procedures set forth in
subsection (a) or in this subsection, if the
Secretary--
(A) provides to the consensus committee a
written description and sets forth the reasons
why emergency action is necessary and all
supporting documentation; and
(B) issues and publishes the order in the
Federal Register.
(6) Changes.--Any statement of policies, practices,
or procedures relating to construction and safety
standards, inspections, monitoring, or other
enforcement activities which constitutes a statement of
general or particular applicability and future offset
and decisions to implement, interpret, or prescribe law
of policy by the Secretary is subject to the provisions
of subsection (a) or (b) of this subsection. Any change
adopted in violation of the provisions of subsection
(a) or (b) of this subsection is void.
(7) Transition.--Until the date that the consensus
committee is appointed pursuant to section 1104(a)(3),
the Secretary may issue proposed orders that are not
developed under the procedures set forth in this
section for new and revised standards.
* * * * * * *
(d) Whenever a Federal manufactured home construction and
safety standard established under this title is in effect, no
State or political subdivision of a State shall have any
authority either to establish, or to continue in effect, with
respect to any manufactured home covered, any standard
regarding construction or safety applicable to the same aspect
of performance of such manufactured home which is not identical
to the Federal manufactured home construction and safety
standard. Federal preemption under this subsection shall be
broadly and liberally construed to ensure that disparate State
or local requirements or standards do not affect the uniformity
and comprehensiveness of the standards promulgated hereunder
nor the Federal superintendence of the manufactured housing
industry as established by this title. Subject to section 605,
there is reserved to each State the right to establish
standards for the stabilizing and support systems of
manufactured homes sited within that State, and for the
foundations on which manufactured homes sited within that State
are installed, and the right to enforce compliance with such
standards, except that such standards shall be consistent with
the purposes of this title and shall be consistent with the
design of the manufacturer.
[(e) The Secretary may by order amend or revoke any Federal
manufactured home construction or safety standard established
under this section. Such order shall specify the date on which
such amendment or revocation is to take effect, which shall not
be sooner than one hundred and eighty days or later than one
year from the date the order is issued, unless the Secretary
finds, for good cause shown, that an earlier or later date is
in the public interest, and publishes his reasons for such
findings.
[(f) In establishing standards under this section, the
Secretary shall--]
(e) Considerations in Establishing and Interpreting
Standards and Regulations.--The consensus committee, in
recommending standards, regulations, and interpretations, and
the Secretary, in establishing standards or regulations, or
issuing interpretations under this section, shall--
(1) consider relevant available manufactured home
construction and safety data, including the results of
the research, development, testing, and evaluation
activities conducted pursuant to this title, and those
activities conducted by private organizations and other
governmental agencies to determine how to best protect
the public;
* * * * * * *
[(g) The Secretary shall issue an order establishing
initial Federal manufactured home construction and safety
standards not later than one year after the date of enactment
of this Act.]
[(h)] (f) The Secretary shall exclude from the coverage of
this title any structure which the manufacturer certifies, in a
form prescribed by the Secretary, to be:
(1) * * *
* * * * * * *
[(i)] (g)(1) The Federal manufactured home construction and
safety standards established by the Secretary under this
section shall include preemptive energy conservation standards
in accordance with this subsection.
* * * * * * *
[(j)] (h) The Secretary shall develop a new standard for
hardboard panel siding on manufactured housing taking into
account durability, longevity, consumer's costs for maintenance
and any other relevant information pursuant to subsection [(f)]
(e). The Secretary shall consult with the National Manufactured
Home Advisory Council and the National Commission on
Manufactured Housing in establishing the new standard. The new
performance standard developed shall ensure the durability of
hardboard sidings for at least a normal life of a mortgage with
minimum maintenance required. Not later than 180 days from the
date of enactment of this subsection, the Secretary shall
update the standards for hardboard siding.
[national manufactured home advisory council
[Sec. 605. (a) The Secretary shall appoint a National
Manufactured Home Advisory Council with the following
composition: eight members selected from among consumer
organizations, community organizations, and recognized consumer
leaders; eight members from the manufactured home industry and
related groups including at least one representative of small
business; and eight members selected from government agencies
including Federal, State, and local governments. Appointments
under this subsection shall be made without regard to the
provisions of title 5, United States Code, relating to
appointments in the competitive service, classification, and
General Schedule pay rates. The Secretary shall publish the
names of the members of the Council annually and shall
designate which members represent the general public.
[(b) The Secretary shall, to the extent feasible, consult
with the Advisory Council prior to establishing, amending, or
revoking any manufactured home construction or safety standard
pursuant to the provisions of this title.
[(c) Any member of the National Manufactured Home Advisory
Council who is appointed from outside the Federal Government
may be compensated at a rate not to exceed $100 per diem
(including traveltime) when engaged in the actual duties of the
Advisory Council. Such members, while away from their homes or
regularplaces of business, may be allowed travel expenses,
including per diem in lieu of subsistence as authorized by section
5703(b) of title 5, United States Code, for persons in the Government
service employed intermittently.]
SEC. 605. MANUFACTURED HOME INSTALLATION.
(a) Provision of Installation Design and Instructions.--A
manufacturer shall provide with each manufactured home, design
and instructions for the installation of the manufactured home
that have been approved by a design approval primary inspection
agency. After establishment of model standards under subsection
(b)(2), a design approval primary inspection agency may not
give such approval unless a design and instruction provides
equal or greater protection than the protection provided under
such model standards.
(b) Model Manufactured Home Installation Standards.--
(1) Proposed model standards.--Not later than 18
months after the date on which the initial appointments
of all of the members of the consensus committee are
completed, the consensus committee shall develop and
submit to the Secretary proposed model manufactured
home installation standards, which shall, to the
maximum extent possible, taking into account the
factors described in section 604(e), be consistent
with--
(A) the home designs that have been approved
by a design approval primary inspection agency;
and
(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
(2) Establishment of model standards.--Not later than
12 months after receiving the proposed model standards
submitted under paragraph (1), the Secretary shall
develop and establish model manufactured home
installation standards, which shall be consistent
with--
(A) the home designs that have been approved
by a design approval primary inspection agency;
and
(B) the designs and instructions for the
installation of manufactured homes provided by
manufacturers under subsection (a).
(3) Factors for consideration.--
(A) Consensus committee.--In developing the
proposed model standards under paragraph (1),
the consensus committee shall consider the
factors described in section 604(e).
(B) Secretary.--In developing and
establishing the model standards under
paragraph (2), the Secretary shall consider the
factors described in section 604(e).
(c) Manufactured Home Installation Programs.--
(1) Protection of manufactured housing residents
during initial period.--During the 5-year period
beginning on the date of enactment of the Manufactured
Housing Improvement Act, no State or manufacturer may
establish or implement any installation standards that,
in the determination of the Secretary, provide less
protection to the residents of manufactured homes than
the protection provided by the installation standards
in effect with respect to the State or manufacturer, as
applicable, on the date of enactment of the
Manufactured Housing Improvement Act.
(2) Installation standards.--
(A) Establishment of installation program.--
Not later than the expiration of the 5-year
period described in paragraph (1), the
Secretary shall establish an installation
program that meets the requirements of
paragraph (3) for the enforcement of
installation standards in each State described
in subparagraph (B).
(B) Implementation of installation program.--
Beginning on the expiration of the 5-year
period described in paragraph (1), the
Secretary shall implement the installation
program established under subparagraph (A) in
each State that does not have an installation
program established by State law that meets the
requirements of paragraph (3).
(C) Contracting out of implementation.--In
carrying out subparagraph (B), the Secretary
may contract with an appropriate agent to
implement the installation program established
under that subparagraph, except that such agent
shall not be a person or entity other than a
government, nor an affiliate or subsidiary of
such a person or entity, that has entered into
a contract with the Secretary to implement any
other regulatory program under this title.
(3) Requirements.--An installation program meets the
requirements of this paragraph if it is a program
regulating the installation of manufactured homes that
includes--
(A) installation standards that, in the
determination of the Secretary, provide
protection to the residents of manufactured
homes that equals or exceeds the protection
provided to those residents by--
(i) the model manufactured home
installation standards established
under subsection (b); or
(ii) the designs and instructions
provided by manufacturers under
subsection (a), if the Secretary
determines that such designs and
instructions provide protection to the
residents of the manufactured home that
equals or exceeds the protection
provided by the model manufactured home
installation standards established
under subsection (b);
(B) the training and licensing of
manufactured home installers; and
(C) inspection of the installation of
manufactured homes.
* * * * * * *
public information
Sec. 607. (a) Whenever any manufacturer is opposed to any
action of the Secretary under section 604 or under any other
provision of this title on the grounds of increased cost or for
other reasons, the manufacturer shall submit to the Secretary
such cost and other information (in such detail as the
Secretary may by rule or order prescribe) as may be necessary
in order to properly evaluate the manufacturer's statement. The
Secretary shall submit such cost and other information to the
consensus committee for evaluation.
[(c) If the Secretary proposes to establish, amend, or
revoke a Federal manufactured home construction and safety
standard under section 604 on the basis of information
submitted pursuant to subsection (a), he shall publish a notice
of such proposed action, together with the reasons therefor, in
the Federal Register at least thirty days in advance of making
a final determination, in order to allow interested parties an
opportunity to comment.]
[(d)] (c) For purposes of this section, ``cost
information'' means information with respect to alleged cost
increases resulting from action by the Secretary, in such a
form as to permit the public, the consensus committee, and the
Secretary to make an informed judgment on the validity of the
manufacturer's statements. Such term includes both the
manufacturer's statements. Such term includes both the
manufacturer's cost and the cost to retail purchasers.
[(e)] (d) Nothing in this section shall be construed to
restrict the authority of the Secretary to obtain or require
submission of information under any other provision of this
title.
research, testing, development, and training
Sec. 608. (a) The Secretary shall conduct research,
testing, development, and training necessary to carry out the
purposes of this title, including, but not limited to--
(1) * * *
(2) procuring (by negotiation or otherwise)
experimental and other manufactured homes for research
and testing purposes; [and]
(3) selling or otherwise disposing of test
manufactured homes and reimbursing the proceeds of such
sale or disposal into the current appropriation
available for the purpose of carrying out this
title[.];
(4) encouraging the government sponsored housing
entities to actively develop and implement secondary
market securitization programs for FHA manufactured
home loans and those of other loan programs, as
appropriate, thereby promoting the availability of
affordable manufactured homes to increase homeownership
for all people in the United States; and
(5) reviewing the programs for FHA manufactured home
loans and developing any changes to such programs to
promote the affordability of manufactured homes,
including changes in loan terms, amortization periods,
regulations, and procedures.
* * * * * * *
(c) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Government sponsored housing entities.--The term
``government sponsored housing entities'' means the
Government National Mortgage Association of the
Department of Housing and Urban Development, the
Federal National Mortgage Association, and the Federal
Home Loan Mortgage Corporation.
(2) FHA manufactured home loans.--The term ``FHA
manufactured home loan'' means a loan that--
(A) is insured under title I of the National
Housing Act and is made for the purpose of
financing alterations, repairs, or improvements
on or in connection with an existing
manufactured home, the purchase of a
manufactured home, the purchase of a
manufactured home and a lot on which to place
the home, or the purchase only of a lot on
which to place a manufactured home; or
(B) otherwise insured under the National
Housing Act and made for or in connection with
a manufactured home.
* * * * * * *
noncompliance with standards
Sec. 613. (a) If the Secretary or a court of appropriate
jurisdiction determines that any manufactured home does not
conform to applicable Federal manufactured home construction
and safety standards, or that it contains a defect which
constitutes an imminent safety hazard, after the sale of such
manufactured home by a manufacturer to a distributor or a
[dealer] retailer and prior to the sale of such manufactured
home by such distributor or [dealer] retailer to a purchaser--
(1) the manufacturer shall immediately repurchase
such manufactured home from such distributor or
[dealer] retailer at the price paid by such distributor
or [dealer] retailer, plus all transportation charges
involved and a reasonable reimbursement of not less
than 1 per centum per month of such price paid prorated
from the date of receipt by certified mail of notice of
such nonconformance to the date of repurchase by the
manufacturer; or
(2) the manufacturer, at his own expense, shall
immediately furnish the purchasing distributor or
[dealer] retailer the required conforming part or parts
or equipment for installation by the distributor or
[dealer] retailer on or in such manufactured home, and
for the installation involved the manufacturer shall
reimburse such distributor or [dealer] retailer for the
reasonable value of such installation plus a reasonable
reimbursement of not less than 1 per centum per month
of the manufacturer's or distributor's selling price
prorated from the date of receipt by certified mail of
notice of such nonconformance to the date such vehicle
is brought into conformance with applicable Federal
standards, so long as the distributor or [dealer]
retailer proceeds with reasonable diligence with the
installation after the required part or equipment is
received.
The value of such reasonable reimbursements as specified in
paragraphs (1) and (2) of this subsection shall be fixed by
mutual agreement of the parties, or, failing such agreement, by
the court pursuant to the provisions of subsection (b).
(b) If any manufacturer fails to comply with the
requirements of subsection (a), then the distributor or
[dealer] retailer, as the case may be, to whom such
manufactured home has been sold may bring an action seeking a
court injunction compelling compliance with such requirements
on the part of such manufacturer. Such action may be brought in
any district court in the United States in the district in
which such manufacturer resides, or is found, or has an agent,
without regard to the amount in controversy, and the person
bringing the action shall also be entitled to recover any
damage sustained by him, as well as all court costs plus
reasonable attorneys' fees. Any action brought pursuant to this
section shall be forever barred unless commenced within three
years after the cause of action shall have accrued.
inspection of manufactured homes and records
Sec. 614. (a) * * *
* * * * * * *
(f) Each manufacturer, distributor, and [dealer] retailer
of manufactured homes shall establish and maintain such
records, make such reports, and provide such information as the
Secretary may reasonably require to enable him to determine
whether such manufacturer, distributor, or [dealer] retailer
has acted or is acting in compliance with this title and
Federal manufactured home construction and safety standards
prescribed pursuant to this title and shall, upon request of a
person duly designated by the Secretary, permit such person to
inspect appropriate books, papers, records, and documents
relevant to determining whether such manufacturer, distributor,
or [dealer] retailer has acted or is acting in compliance with
this title and manufactured home construction and safety
standards prescribed pursuant to this title.
* * * * * * *
notification and correction of defects
Sec. 615. (a) * * *
(b) The notification required by subsection (a) shall be
accomplished--
(1) by mail to the first purchaser (not including any
[dealer] retailer or distributor of such manufacturer)
of the manufactured home containing the defect, and to
any subsequent purchaser to whom any warranty on such
manufactured home has been transferred;
(2) by mail to any other person who is a registered
owner of such manufactured home and whose name and
address has been ascertained pursuant to procedures
established under subsection (f); and
(3) by mail or other more expeditious means to the
[dealer or dealers] retailer or retailers of such
manufacturer to whom such manufactured home was
delivered.
* * * * * * *
(d) Every manufacturer of manufactured homes shall furnish
to the Secretary a true or representative copy of all notices,
bulletins, and other communications to the [dealers] retailers
of such manufacturer or purchasers of manufactured homes of
such manufacturer regarding any defect in any such manufactured
home produced by such manufacturer. The Secretary shall
disclose to the public so much of the information contained in
such notices or other information obtained under section 614 as
he deems will assist in carrying out the purposes of this
title, but he shall not disclose any information which contains
or relates to a trade secret, or which, if disclosed would put
such manufacturer at a substantial competitive disadvantage,
unless he determines that it is necessary to carry out the
purposes of this title.
(f) Every manufacturer of manufactured homes shall maintain
a record of the name and address of the first purchaser of each
manufactured home (for purposes other than resale), and, to the
maximum extent feasible, shall maintain procedures for
ascertaining the name and address of any subsequent purchaser
thereof and shall maintain a record of names and addresses so
ascertained. Such records shall be kept for each home produced
by a manufacturer. The Secretary may establish by order
procedures to be followed by manufacturers in establishing and
maintaining such records, including procedures to be followed
by distributors and [dealers] retailers to assist manufacturers
to secure the information required by this subsection. Such
procedures shall be reasonable for the particular type of
manufactured home for which they are prescribed.
certification of conformity with construction and safety standards
Sec. 616. Every manufacturer of manufactured homes shall
furnish to the distributor or [dealer] retailer at the time of
delivery of each such manufactured home produced by such
manufacturer certification that such manufactured home conforms
to all applicable Federal construction and safety standards.
Such certification shall be in the form of a label or tag
permanently affixed to each such manufactured home.
* * * * * * *
[inspection fees
[Sec. 620. In carrying out the inspections required under
this title, the Secretary may establish and impose on
manufactured home manufacturers, distributors, and dealers such
reasonable fees as may be necessary to offset the expenses
incurred by him in conducting such inspections, and the
Secretary may use any fees so collected to pay expenses
incurred in connection with such inspections except that this
section shall not apply in any State which has in effect a
State plan under section 623.]
authority to establish fees
Sec. 620. (a) In General.--In carrying out inspections under
this title, in developing standards and regulations pursuant to
section 604, and in facilitating the acceptance of the
affordability and availability of manufactured housing within
the Department, the Secretary may--
(1) establish and collect from manufactured home
manufacturers such reasonable fees as may be necessary
to offset the expenses incurred by the Secretary in
connection with carrying out the responsibilities of
the Secretary under this title, including--
(A) conducting inspections and monitoring;
(B) providing funding to States for the
administration and implementation of approved
State plans under section 623, including
reasonable funding for cooperative educational
and training programs designed to facilitate
uniform enforcement under this title; these
funds may be paid directly to the States or may
be paid or provided to any person or entity
designated to receive and disburse such funds
by cooperative agreements among participating
States, provided that such person or entity is
not otherwise an agent of the Secretary under
this title;
(C) providing the funding for a noncareer
administrator and Federal staff personnel for
the manufactured housing program;
(D) administering the consensus committee as
set forth in section 604; and
(E) facilitating the acceptance of the
quality, durability, safety, and affordability
of manufactured housing within the Department;
and
(2) use any fees collected under paragraph (1) to pay
expenses referred to in paragraph (1), which shall be
exempt and separate from any limitations on the
Department of Housing and Urban Development regarding
full-time equivalent positions and travel.
(b) Contractors.--When using fees under this section, the
Secretary shall ensure that separate and independent
contractors are retained to carry out monitoring and inspection
work and any other work that may be delegated to a contractor
under this title.
(c) Prohibited Use.--Fees collected under subsection (a)
shall not be used for any purpose or activity not specifically
authorized by this title unless such activity was already
engaged in by the Secretary prior to the date of enactment of
this title.
(d) Modification.--Any fee established by the Secretary under
this section shall only be modified pursuant to rulemaking in
accordance with section 553 of title 5, United States Code.
(e) Appropriation and Deposit of Fees.--
(1) In general.--There is established in the Treasury
of the United States a fund to be known as the
``Manufactured Housing Fees Trust Fund'' for deposit of
all fees collected pursuant to subsection (a). These
fees shall be held in trust for use only as provided in
this title.
(2) Appropriation.--Such fees shall be available for
expenditure only to the extent approved in an annual
appropriation Act.
* * * * * * *
state jurisdiction; state plans
Sec. 623. (a) * * *
* * * * * * *
(c) The Secretary shall approve the plan submitted by a
State under subsection (b), or any modification thereof, if
such plan in his judgment--
(1) * * *
* * * * * * *
(9) requires manufacturers, distributors, and
[dealers] retailers in such State to make reports to
the Secretary in the same manner and to the same extent
as if the State plan were not in effect;
(10) provides that the State agency or agencies will
make such reports to the Secretary in such form and
containing such information as the Secretary shall from
time to time require; [and]
(11) with respect to any State plan submitted on or
after the expiration of the 5-year period beginning on
the date of enactment of the Manufactured Housing
Improvement Act, provides for an installation program
established by State law that meets the requirements of
section 605(c)(3);
(12) with respect to any State plan submitted on or
after the expiration of the 5-year period beginning on
the date of enactment of the Manufactured Housing
Improvement Act, provides for a dispute resolution
program for the timely resolution of disputes between
manufacturers, retailers, and installers of
manufactured homes regarding responsibility, and for
the issuance of appropriate orders, for the correction
or repair of defects in manufactured homes that are
reported during the 1-year period beginning on the date
of installation; and
[(11)] (13) complies with such other requirements as
the Secretary may by regulation prescribe for the
enforcement of this title.
* * * * * * *
(g) Enforcement of Dispute Resolution Standards.--
(1) Establishment of dispute resolution program.--Not
later than the expiration of the 5-year period
beginning on the date of enactment of the Manufactured
Housing Improvement Act, the Secretary shall establish
a dispute resolution program that meets the
requirements of subsection (c)(12) for dispute
resolution in each State described in paragraph (2).
(2) Implementation of dispute resolution program.--
Beginning on the expiration of the 5-year period
described in paragraph (1), the Secretary shall
implement the dispute resolution program established
under paragraph (1) in each State that has not
established a dispute resolution program that meets the
requirements of subsection (c)(12).
(3) Contracting out of implementation.--In carrying
out paragraph (2), the Secretary may contract with an
appropriate agent to implement the dispute resolution
program established under that paragraph, except that
such agent shall not be a person or entity other than a
government, nor an affiliate or subsidiary of such a
person or entity, that has entered into a contract with
the Secretary to implement any other regulatory program
under this title.
[annual report to congress
[Sec. 626. (a) The Secretary shall prepare and submit to
the President for transmittal to the Congress on July 1 of
every other year beginning with calendar year 1978 a
comprehensive report on the administration of this title for
the two preceding calendar years. Such report shall include but
not be restricted to (1) a thorough statistical compilation of
the accidents, injuries, deaths, and property losses occurring
in or involving manufactured homes in such years; (2) a list of
Federal manufactured home construction and safety standards
prescribed or in effect in such years; (3) the level of
compliance with all applicable Federal manufactured home
standards; (4) a summary of all current research grants and
contracts together with a descritpion of the problems to be
studied in such research; (5) an analysis and evaluation,
including relevant policy recommendations, of research
activities completed and technological progress achieved during
such years; (6) a statement of enforcement actions including
judicial decisions, settlements, defect notifications, and
pending litigation commenced during such years; and (7) the
extent to which technical information was disseminated to the
scientific community and consumer-oriented information was made
available to manufactured home owners and prospective buyers.
[(b) The report required by subsection (a) of this section
shall contain such recommendations for additional or revised
legislation as the Secretary deems necessary to promote the
improvement of manufactured home construction and safety and to
strengthen the national manufactured home program.
[(c) In order to assure a continuing and effective national
manufactured home construction and safety program, it is the
policy of Congress to encourage the adoption of State
inspection of used manufactured homes. Therefore, to that end
the Secretary shall conduct a thorough study and investgation
to determine the adequacy of manufactured home construction and
safety standards and manufactured home inspection requirements
and procedures applicable to used manufactured homes in each
State, and the effect of programs authorized by this title upon
such standards, requirements, and procedures for used
manufactured homes, and report to Congress as soon as
practicable, but not later than one year after the date of
enactment of this Act, the results of such study, and
recommendations for such additional legislation as he deems
necessary to carry out the purposes of this title. Such report
shall also include recommendations by the Secretary relating to
the problems of disposal of used manufactured homes.]
authorization of appropriations
Sec. [627.] 626. There are authorized to be appropriated
such sums as may be necessary to carry out the provisions of
this title.
effective date
Sec. [628.] 627. The provisions of this title shall take
effect upon the expiration of 180 days following the date of
enactment of this title.
Additional Views of Representative John J. LaFalce
As Congress debates this homeownership and community
development bill, it is instructive to reflect on our recent
record in these two important areas.
This nation is currently enjoying its highest homeownership
rate--66.8%. A significant cause of this achievement is the
Budget Act--policies which have created record budget
surpluses, lower interest and mortgage rates, seven years of
robust economic growth, and record levels of consumer
confidence.
Our record homeownership rate has also come about through
pro-active housing policies--including last year's fight to
preserve CRA during consideration of the financial
modernization bill, a continued commitment to Fair Housing
enforcement, a reduction in mortgage costs for 1st-time home-
buyers as a result of HUD administrative action to reduce FHA
premiums, and the virtual elimination of capital gains taxes on
principal home sales.
Nevertheless, there is more we can do to make homeownership
more affordable, and H.R. 1776 includes a number of provisions
to this end. Debate and consideration of this bill has unfolded
in a bi-partisan manner, allowing the inclusion through
amendment or negotiation of a number of provisions put forward
by the Administration and by members on our side of the aisle.
For example, with regard to the FHA single family housing
program, I am pleased that the committee adopted the provisions
of H.R. 3884, a bill offered by myself and a number of other
members of the committee. H.R. 3884, the Homeownership
Opportunities for Uniformed Services and Educators Act,'' also
known as the HOUSE Act, provides for one percent cash down
payment mortgages for teachers, policemen, and firemen buying a
home in the school district or jurisdiction that employees
them. The purpose of this provision is to help school districts
and localities with the recruitment and retention of these
public servants, and to help the latter overcome the down
payment mortgages for teachers, policemen, and firemen buying a
home in the school district or jurisdiction that employees
them. The purpose of this provision is to help school districts
and localities with the recruitment and retention of these
public servants, and to help the latter overcome the down
payment barrier to buying a home.
The bill also includes two important provisions put forward
by HUD-the hybrid ARM proposal included in this year's budget
submission and the codification of HUD's Teacher Next Door
program. As with other changes made to FHA in recent years,
authority to guarantee hybrid loans provides FHA with the same
loan flexibility offered by private sector lenders. The Teacher
Next Door program, an extension of an existing HUD program for
policemen, provides for discounted sale of HUD-foreclosed
homes. And, I am pleased to see the inclusion of my legislation
to lower the cost of FHA reverse mortgage when used in
conjunction with the purchase of long-term care insurance, by
waiving the up-front premium for such use. Some 13 million
senior citizens living in this country own their home free and
clear, and this provision will make it easier for these seniors
to provide financial and emotional security, at no out of
pocket cost. I was pleased to work with the majority to expand
this provision to potentially lower costs for reverse mortgages
used for other health care expenditures.
Finally, this bill makes major changes to the federal
regulation of manufactured housing. Over the last few years,
this section of the bill has undergone a significant
transformation, through the in corporation of a number of
changes offered by Democrats to add new consumer protections
and to restore regulatory authority to federal government. In
particular, for the first time, we will be setting a national
minimum installation standard, and establishing a requirement
that every state operate a dispute resolution process to
determine responsibility for defects and to order their repair
in the first year after installation.
On another positive note, the bill includes a provision
authorized by Rep. Frank to extend the maximum loan repayment
period for federally insured loans used to finance manufactured
housing lots.
Finally, with respect to economic development, this bill
includes a reauthorization of the CDBG program at the level
recommended by the Administration's FY 2001 budget, as well as
some other miscellaneous provisions. While these are positive
provisions, they are limited.
As noted during full committee debate, this committee has
the opportunity to act on a major community development
initiative designed to expand economic opportunities for
individuals and communities being left behind our strong
economic expansion. That opportunity is the enactment of the
America's Private Investment Companies Act, also known as APIC.
Though the committee elected not to include APIC in this bill,
I am pleased that the majority has publicly committed to act on
APIC under a separate committee markeup.
John J. LaFalce.
ADDITIONAL VIEWS OF REPRESENTATIVE BARNEY FRANK
I write separately to discuss remaining concerns with Title
XI (the ``Manufactured Housing Improvement Act'') of the
American Homeownership Act [``Title XI'' or ``MHIA'']. While
significant improvements have been made in the MHIA even since
negotiations resumed at the beginning of this year, further
changes are called for to ensure that consumers are adequately
protected.
Our progress on this bill is the result of a bipartisan
process. Both sides of the aisle in the House and Senate
participated in the rewriting of the consensus committee
sections to ensure that manufactured housing residents will be
adequately represented. We appreciate the majority's
willingness to wok with us in the development of provisions
establishing model installation standards, which will take
effect if states do not pass their own, and in the creation of
a dispute resolution process to protect consumers from so-
called ``ping-ponging'' by producers and retailers attempting
to deflect responsibility for defects. As a result of these
bipartisan negotiations, the bill is unquestionably better.
During the full committee's consideration of H.R. 1776, I
offered amendments to address two concerns. The first has to do
with the definition of ``monitoring'' in the MHIA. As now
written, the bill conflates two different functions--
``monitoring'' and ``inspecting''--through the inclusion of
both concepts in the definition. The main problem with the
definition in Section 1103(a)(21) arises with subpart (B),
which provides that monitoring ``may include the periodic
inspection of retail locations for transit damage, label
tampering, and retail compliance with this title.'' The
provision implicitly makes the inspections process a subset of
monitoring, while then arguably limiting its scope. While the
definition does not specifically preclude the inspection of the
actual manufactured home at the manufacturing or retail
location, the concern is that by mentioning the inspection
process only in the context of retail locations--and
essentially only for retail compliance--some may take the
position that the list of elements to be inspected was intended
to be exclusive. Since the committee's rejection of this
amendment by a narrow vote, we have made progress on this
issue, and I believe that we will be able to reach a resolution
to make it clear that it is not Congress's intention to curtail
the ability of HUD and the state agencies to inspect
manufactured homes for defects at the manufacturing and retail
sites.
A second issue that I attempted to address at the markup
and will pursue is that of the availability of information
regarding defects. Under current law, the Secretary is
authorized to make available to the public any information
indicating the existence of a defect relating to manufactured
home construction or safety. Notwithstanding this
authorization, I am told that HUD has never made this
information available in response to Freedom of Information Act
requests. As a result, it is difficult for consumer advocates,
or anyone else, to obtain access to comprehensive, reliable
data on manufactured housing defects.
My amendment on disclosure would in essence impose a
reasonable deadline by which HUD must provide information that
it should already be providing pursuant to FOIA. And, in the
interest of ensuring that the defect information is put in
context, it would require that HUD issue a notification of a
request for information to anyone who has asked for such
notification, thereby providing the opportunity for any
interested parties to respond to the information that HUD is
releasing. The language of the amendment reflects our interest
in addressing the concerns expressed by the manufactured
housing industry: HUD must make the information available only
upon request, FOIA protections on the release of information
apply, and the industry would have an opportunity to balance
information on defects provided by HUD with its own
information. In addition, I believe that further safeguards are
appropriate to ensure that only verified information of defects
threatening serious physical harm is released, and we intend to
make those changes to the amendment.
Finally, Section 1102 of the MHIA (``Findings and
Purposes'') lists eight purposes, but omits the only, critical
purpose articulated under current law. Section 602 of the
National Manufactured Housing Construction and Safety Standards
Act of 1974 [42 USC 5401]] provides: ``The Congress declares
that the purposes of this title are to reduce the number of
personal injuries and deaths and the amount of insurance costs
and property damage resulting from manufactured home accidents
and to improve the quality and durability of manufactured
homes. * * *''
This section is not merely hortatory, nor is its omission
cosmetic. A federal appeals court based a decision upholding
HUD wind standards on this statement of purpose. Specifically,
in Florida Manufactured Housing Assoc. Inc. v. Cisneros, an
Eleventh Circuit panel said that although the manufacturers
challenging HUD's post-Hurricane Andrew wind standards were
right that HUD had to consider cost increases to consumers in
promulgating regulations, the statute required it to look
beyond affordability to the goals of reducing injury, death,
property damage and insurance costs. The bill's purposes should
explicitly be broadened to include those provided under current
law. I am confident that this too can be resolved as the bill
progresses.
Barney Frank.