[Senate Report 106-192]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 326
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-192

======================================================================



 
       TO PROVIDE FEDERAL HOUSING ASSISTANCE TO NATIVE HAWAIIANS
                                _______
                                

                October 14, 1999.--Ordered to be printed

                                _______


   Mr. Campbell, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 225]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 225) to provide Federal housing assistance to Native 
Hawaiians having considered the same, reports favorably thereon 
with an amendment in the nature of a substitute and recommends 
that the bill as amended do pass.

                                Purpose

    The purpose of S. 225 is to implement the recommendations 
of the National Commission on American Indian, Alaska Native, 
and Native Hawaiian Housing by amending the Native American 
Housing Assistance and Self-Determination Act to address the 
housing needs of Native Hawaiians who are eligible to reside on 
lands set aside under the Hawaiian Homes Commission Act of 
1920.
    The primary objective of S. 225 is to enable Native 
Hawaiians who are eligible to reside on the Hawaiian Home Lands 
to have access to federal housing assistance that is currently 
provided to other eligible low-income American families based 
upon documented need.

                          Background and Need

    In 1920, with the enactment of Hawaiian Homes Commission 
Act, the United States set aside approximately 200,000 acres of 
public land that had been ceded to the United States in what 
was then the Territory of Hawaii to establish a permanent 
homeland for the native people of Hawaii, based upon findings 
of the Congress that Native Hawaiians were a landless people 
and a ``dying'' people. the Secretary of the Interior, Franklin 
Lane, likened the relationship between the United States and 
Native Hawaiians to the guardian-ward relationship that then 
existed between the United States and American Indians.
    As a condition of its admission into the Union of States in 
1959, the United States transferred title to the 200,000 acres 
of land to the State of Hawaii with the requirement that the 
lands be held ``in public trust'' for ``the betterment of the 
conditions of Native Hawaiians, as defined in the Hawaiian 
Homes Commission Act of 1920''. The Hawaii Admissions Act also 
required that the Hawaii State Constitution provide for the 
assumption by the new State of a trust responsibility for the 
lands. The lands are now administered by a State agency, the 
Department of Hawaiian Home Lands.
    However, similar to the responsibility with which the 
Secretary of the Interior is charged in the administration of 
Indian lands, the United States retained and continues to 
retain the authority to enforce the trust and to institute 
legal action against the State of Hawaii for any breach of the 
trust, as well as the exclusive right to consent to any actions 
affecting the lands which comprise the corpus of the trust and 
any amendments to the Hawaiian Homes Commission Act enacted by 
the legislature of the State of Hawaii affecting the rights of 
the beneficiaries under the Act.
    Within the last several years, three recent studies have 
documented the poor housing conditions that confront Native 
Hawaiians who either reside on the Hawaiian home lands or who 
are eligible to reside on the home lands.
    In 1992, the National Commission on American Indian, Alaska 
Native, and Native Hawaiian Housing issued its final report to 
the Congress, ``Building the Future: A Blueprint for Change''. 
The Commission's study compared housing data for Native 
Hawaiians with housing information for other citizens in the 
State of Hawaii. The Commission found that Native Hawaiians, 
like American Indians and Alaska Natives, lacked access to 
conventional mortgage lending and home financing because of the 
trust status of the Hawaiian home lands, and that Native 
Hawaiians had the worst housing conditions in the State of 
Hawaii and the highest percentage of homelessness, representing 
over 30 percent of the State's homeless population.
    The Commission concluded that the unique circumstances of 
Native Hawaiians require the enactment of new legislation to 
alleviate and address the severe housing needs of Native 
Hawaiians, and recommended that the Congress extend to Native 
Hawaiians the same federal housing assistance programs that are 
provided to American Indians and Alaska Natives under the Low-
Income Rental, Mutual Help, Loan Guarantee Program and 
Community Development Block Grant programs. Subsequently, the 
Community Development Block Grant program authority was amended 
to address the housing needs of Native Hawaiians.
    In 1995, the U.S. Department of Housing and Urban 
Development (HUD) issued a report entitled, ``Housing Problems 
and Needs of Native Hawaiians''. The HUD report was 
particularly helpful because it compared the data on Native 
Hawaiian housing conditions with housing conditions nationally 
and with the housing conditions of American Indians and Alaska 
Natives.
    The most alarming finding of the HUD report was that Native 
Hawaiians experience the highest percentage of housing problems 
in the nation--49 percent--higher than even that of American 
Indians and Alaska Natives residing on reservations (44 
percent) and substantially higher than that of all U.S. 
households (27 percent). Additionally, the HUD study found that 
the percentage of overcrowding in the Native Hawaiians 
population is 36 percent as compared to 3 percent for all other 
households in the United States.
    Applying the HUD guidelines, 70.8 percent of Native 
Hawaiians who either reside or who are eligible to reside on 
the Hawaiian home lands have incomes which fall below the 
median family income in the United States, and 50 percent of 
those Native Hawaiians have incomes below 30 percent of the 
median family income in the United States.
    Also in 1995, the Hawaii State Department of Hawaiian Home 
Lands published a Beneficiary Needs Study as a result of 
research conducted by an independent research group. This study 
found that among the Native Hawaiian population, the needs of 
Native Hawaiians eligible to reside on the Hawaiian home lands 
are the most severe--with 95 percent of home lands applicants 
(16,000) in need of housing, and with one-half of those 
applicant households facing overcrowding and one-third paying 
more than 30 percent of their income for shelter.
    Eligibility for an assignment of Hawaiian home lands for 
purposes of housing, agricultural development or pasture land 
is a function of federal law--the Hawaiian Homes Commission Act 
of 1920--which has defined eligibility in terms of blood 
quantum. There are approximately 60,000 Native Hawaiians who 
would be eligible to reside on the home lands, but applying for 
an assignment of a parcel of home lands is voluntary. Because 
of the lack of resources to develop infrastructure (roads, 
access to water and sewer and electricity) on the home lands as 
required by State and county laws before housing can be 
constructed, hundreds of Native Hawaiians on the waiting list 
have died before receiving an assignment of home lands.
    Once an eligible Native Hawaiian reaches the top of the 
waiting list, he or she must be able to qualify for a private 
home loan mortgage, because the limited federal and state funds 
available to the Department of Hawaiian Home Lands have been 
used to develop infrastructure rather than the construction of 
housing. An assignment of home lands property is in the form of 
a 99-year lease. Unless the heirs of the eligible Native 
Hawaiian qualify in their own right for an assignment of home 
lands under the provisions of the Hawaiian Homes Commission 
Act, upon the death of a Native Hawaiian who is eligible to 
reside on the home lands, his or her heirs must move off the 
land.
    The Hawaiian Homes Commission Act also authorizes general 
leases of land set aside under the Act. In 1921, when the Act 
was passed by the Congress, it was anticipated that revenues 
derived from general leases would be sufficient to develop the 
necessary infrastructure and housing on the home lands. 
However, general lease revenue has not proven sufficient to 
address infrastructure and housing needs. Currently, Native 
Hawaiians who are eligible to reside on the home lands but who 
do not qualify for private mortgage loans do not have access to 
federal housing assistance programs that provide assistance to 
low-income families.

                    Legal Status of Native Hawaiians

    On July 28, 1999, the United States filed an amicus curiae 
brief in the Supreme Court of the United States in the case of 
Rice v. Cayetano, No. 98-818, in which the government expresses 
its official legal position relative to the legal status of 
Native Hawaiians. The brief of the Solicitor General states 
that--

          The United States has a special responsibility for 
        the welfare of the Native peoples of the United States, 
        including Native Hawaiians. Pursuant to that 
        responsibility, Congress has enacted many statutes for 
        the benefit of Native Hawaiians. Congress has also 
        delegated broad authority to administer a portion of 
        the federal trust responsibility to the State of Hawaii 
        . . .\1\

    \1\ Brief for the United States as amicus curiae supporting 
respondent in the Supreme Court of the United States, No. 98-818, 
Harold F. Rice, Petitioner, v. Benjamin J. Cayetano, Governor of 
Hawaii, page 1.
---------------------------------------------------------------------------
    The United States' brief also asserts that--

          Congress has identified Native Hawaiians as a 
        distinct indigenous group within the scope of its 
        Indian affairs power, and has enacted dozens of 
        statutes on their behalf pursuant to its recognized 
        trust responsibility. Congress's determination that 
        Native Hawaiians constitute a distinct indigenous group 
        for whom it may enact special legislation is entirely 
        rational. Native Hawaiians have a cultural, historic, 
        and land-based link to the indigenous people who 
        exercised sovereignty over the Hawaiian Islands, and 
        that group has never relinquished its claim to its 
        sovereignty or its sovereign lands.\2\
---------------------------------------------------------------------------
    \2\ Brief for the United States as amicus curiae supporting 
respondent in the Supreme Court of the United States, No. 98-818, 
Harold F. Rice, Petitioner, v. Benjamin J. Cayetano, Governor of 
Hawaii, page 9.
---------------------------------------------------------------------------
          Congress does not extend services to Native Hawaiians 
        because of their race, but because of their unique 
        status as the indigenous people of a once-sovereign 
        nation as to whom the United States has established a 
        trust relationship.\3\
---------------------------------------------------------------------------
    \3\ Brief for the United States as amicus curiae supporting 
respondent in the Supreme Court of the United States, No. 98-818, 
Harold F. Rice, Petitioner v. Benjamin J. Cayetano, Governor of Hawaii, 
page 10.
---------------------------------------------------------------------------

          An Amendment in the Nature of a Substitute to S. 225

    The purpose of the amendment in the nature of a substitute 
to S. 225 is to address these well-documented housing needs of 
Native Hawaiians by extending the same federal housing 
assistance available to American Indians and Alaska Natives to 
those Native Hawaiians most in need of housing--those who have 
consistently been denied access to federally-assisted housing 
programs--Native Hawaiians who reside or are eligible to reside 
on the Hawaiian Home Lands.
    Appropriations for programs authorized by the Native 
American Housing Assistance and Self-Determination Act 
(NAHASDA) to address the housing needs in Indian country are 
determined by formula. If enacted, S. 225 authorizes 
appropriations for programs to address the housing needs of 
Native Hawaiians which would be allocated to the Department of 
Hawaiian Home Lands through a block grant as the Act does with 
regard to housing assistance that is provided to Indian tribal 
governments or their designated tribal housing entities. An 
appropriation for federal housing assistance for Native 
Hawaiians would be separate from an appropriation for federal 
housing assistance to address the housing needs in Indian 
country under NAHASDA, and unless a separate allocation of 
funding for Native Hawaiian housing assistance is secured, 
there would be no funding for Native Hawaiian housing 
assistance under the NAHASDA authority. It is the intent of the 
sponsors that in no instance, will funding for Indian program 
under NAHASDA be reduced as a function of the authority 
provided in S. 225.
    At it's June, 1998 mid-year meeting, the National Congress 
of American Indians adopted a resolution in support of passage 
of the amendment in the nature of a substitute to S. 109, the 
predecessor bill to S. 225 in the 105th Congress (Senate Report 
No. 105-380). The National American Indian Housing Council also 
approved a resolution in support of passage of the amendment in 
the nature of a substitute to S. 109 at the Council's June, 
1998 meeting.

                          Legislative History

    S. 225 was introduced on January 19, 1999, by Senator 
Inouye, for himself and Senator Akaka and was referred to the 
Committee on Indian Affairs. S. 225 was favorably reported to 
the full Senate on June 30, 1999. Following the filing of an 
amicus curiae brief by the United States in the Supreme Court 
of the United States establishing the government's official 
legal position relative to the legal status of Native 
Hawaiians, S. 225 was brought back before the Committee on 
Indian Affairs for the consideration of two amendments which 
were adopted by the Committee. On August 2, 1999, the Committee 
on Indian Affairs favorably reported an amendment in the nature 
of a substitute to S. 225.

            Committee Recommendation and Tabulation of Vote

    The Committee on Indian Affairs, in an open business 
session on August 2, 1999 adopted an amendment in the nature of 
a substitute to S. 225, by voice vote and ordered the bill, as 
amended, reported favorably to the full Senate.

                      Section-by-Section Analysis


Section 1

    Section 1 sets forth the short title of the Act, indicating 
that the Act may be cited as the ``Native American Housing 
Assistance and Self-Determination Amendments of 1998''.

Section 2

    Section 2 sets forth the findings of the Congress.
    Paragraph 1 of section 2 sets forth the finding of the 
Congress that the United States has undertaken a responsibility 
to promote the general welfare of the United States by 
employing federal resources to remedy the unsafe and unsanitary 
housing conditions and the acute shortage of decent, safe, and 
sanitary dwellings for families of lower income, including 
Native Hawaiian families of lower income, and by developing 
effective partnerships with governmental and private entities 
to accomplish these objectives.
    Paragraph 2 of section 2 sets forth the finding of the 
Congress that the United States has a special responsibility 
for the welfare of the Native people of the United States, 
including Native Hawaiians. This finding is premised upon the 
history and course of dealings between the United States and 
the Native people of Hawaii, as recently affirmed by the United 
States in its amicus curiae brief filed in the Supreme Court of 
the United States on July 28, 1999, in the case of Rice v. 
Cayetano, No. 98-818, which establishes the official legal 
position of the United States relative to the legal status of 
Native Hawaiians and finds that the United States has a trust 
responsibility for Native Hawaiians.
    Paragraph 3 of section 2 sets forth the finding of the 
Congress that pursuant to the provisions of the Hawaiian Homes 
Commission Act, 1920, (42 Stat. 108 et seq.), the United States 
set aside 200,000 acres of land in the federal territory that 
later became the State of Hawaii in 1959, in order to establish 
a homeland for the Native people of Hawaii, also known as 
Native Hawaiians. The lands which were set aside under the Act 
were referred to in section 201(a)(5) of the Act as Hawaiian 
Home Lands.
    Paragraph 4 of section 2 sets forth the finding of the 
Congress that despite the intent of the Congress in 1920 to 
address the housing needs of Native Hawaiians through the 
enactment of the Hawaiian Homes Commission Act, 1920, in the 
years which have followed, Native Hawaiians have been 
foreclosed from participating in federal housing assistance 
programs available to all other eligible families in the United 
States.
    Paragraph 5 of section 2 sets forth the finding of the 
Congress that although federal housing assistance programs have 
been administered on a racially-neutral basis in the State of 
Hawaii, Native Hawaiians continue to have the greatest unmet 
need for housing and the highest rates of overcrowding, not 
only in the State of Hawaii, but the greatest unmet need for 
housing and the highest rates of overcrowding in the United 
States. Three studies conducted in the last several years have 
documented the findings of the Congress set forth in paragraphs 
6, 7, 8 and 9 of section 2.
    Paragraph 6 of section 2 sets forth the finding of the 
Congress that among the population of native people in the 
United States, Native Hawaiians experience the highest 
percentage of housing problems in the United States--
specifically, forty-nine percent of the Native Hawaiian 
population experience housing problems as compared to forty-
four percent of the American Indian and Alaska Native 
population, and as compared to twenty-seven percent for all 
other households in the United States. Paragraph 6 of section 2 
also sets forth the finding of the Congress that overcrowding 
in Native Hawaiian households is thirty-six percent as compared 
to three percent for all other households in the United States.
    Paragraph 7 of section 2 sets forth the findings of the 
Congress that the needs of the population of Native Hawaiians 
who are eligible to reside on the Hawaiian Home Lands are the 
most severe, as evidenced by the finding that the percentage of 
overcrowding in Native Hawaiian households on the Hawaiian Home 
Lands is thirty-six percent and that ninety-five percent of 
Native Hawaiians who are eligible to reside on the Hawaiian 
Home Lands, or approximately thirteen thousand Native 
Hawaiians, are in need of housing.
    Paragraph 8 of section 2 sets forth the finding of the 
Congress that under the guidelines of the Department of Housing 
and Urban Development, 70.8 percent of Native Hawaiians who 
either reside on the Hawaiian Home Lands or who are eligible to 
do so have incomes that fall below the median family income, 
and fifty percent of Native Hawaiians who either reside on the 
Hawaiian Home Lands or who are eligible to do so have incomes 
below thirty percent of the median family income.
    Paragraph 9 of section 2 sets forth the finding of the 
Congress that one-third of those Native Hawaiians who are 
eligible to reside on the Hawaiian Home Lands pay more than 
thirty percent of their income for shelter, and one-half of 
those Native Hawaiians who are eligible to reside on the 
Hawaiian Home Lands face overcrowding in their households.
    Paragraph 10 of section 2 sets forth the finding of the 
Congress that the extraordinarily severe housing needs of 
Native Hawaiians demonstrate that Native Hawaiians who either 
reside on the Hawaiian Home Lands or who are eligible to reside 
on the Hawaiian Home Lands have been denied equal access to 
federal low-income housing assistance programs available to 
other eligible American families, and that a more effective 
means of addressing the housing needs of Native Hawaiians must 
be authorized.
    Paragraph 11 of section 2 sets forth the finding of the 
Congress that in order to address the continuing prevalence of 
extraordinarily severe housing needs among Native Hawaiians who 
either reside on the Hawaiian Home Lands or who are eligible to 
reside on the Hawaiian Home Lands, it is necessary to extend 
the federal low-income housing assistance available to American 
Indians and Alaska Natives under the Native American Housing 
Assistance and Self-Determination Act of 1996 to those Native 
Hawaiians, consistent with the recommendations of the National 
Commission on American Indian, Alaska Native, and Native 
Hawaiian Housing.
    Paragraph 12 of section 2 sets forth the finding of the 
Congress that under the treaty-making power of the United 
States, the Congress had the constitutional authority to 
confirm a treaty between the United States and the government 
that represented the Hawaiian people, and the United States 
recognized the independence of the Hawaiian kingdom and 
extended full diplomatic recognition to that kingdom.
    Paragraph 13 of section 2 sets forth the finding of the 
Congress that the United States has recognized and reaffirmed 
that Native Hawaiians have a cultural, historic, and land-based 
link to the indigenous people who exercised sovereignty over 
the Hawaiian islands, and that group has never relinquished its 
claims to its sovereignty of its sovereign lands; Congress did 
not extend services to Native Hawaiians because of their race, 
but because of their unique status as the indigenous people of 
a once-sovereign nation as to whom the United States has 
established a trust relationship; that Congress has also 
delegated broad authority to administer a portion of the 
federal trust responsibility to the State of Hawaii; that the 
political status of Native Hawaiians is comparable to that of 
American Indians and Alaska Natives; and that the aboriginal, 
indigenous people of the United States have a continuing right 
to autonomy in their internal affairs and an ongoing right of 
self-determination and self-governance that has never been 
extinguished.
    Paragraph 14 of section 2 sets forth the finding of the 
Congress that the political relationship between the United 
States and the Native Hawaiian people has been recognized and 
reaffirmed by the United States through the enactment of 
federal laws which include Native Hawaiians in the Native 
American Programs Act of 1974, the American Indian Religious 
Freedom Act, the National Museum of the American Indian Act, 
the Native American Graves Protection and Repatriation Act, the 
National Historic Preservation Act, the Native American 
Languages Act of 1992, the American Indian, Alaska Native and 
Native Hawaiian Culture and Arts Development Act, the Job 
Training Partnership Act, and the Older Americans Act of 1965.
    Paragraph 15 of section 2 sets forth the finding of the 
Congress that in the area of housing, the United States has 
recognized and reaffirmed its political relationship with the 
Native Hawaiian people through: (1) the enactment of the 
Hawaiian Homes Commission Act, 1920, which set aside 
approximately 200,000 acres of public lands in the Territory of 
Hawaii that had been ceded to the United States for 
homesteading by Native Hawaiians in order to rehabilitate a 
landless and dying people; (2) the enactment of the Act 
entitled ``An Act to provide for the admission of the State of 
Hawaii into the Union'', approved March 18, 1958 (73 Stat. 4) 
by ceding title to the public lands formerly held by the United 
States to the State of Hawaii and mandating that those lands be 
held in public trust, for the betterment of the conditions of 
Native Hawaiians, and by transferring to the State of Hawaii 
the United States' trust responsibility for the administration 
of the Hawaiian Home Lands but retaining the exclusive 
authority to enforce the trust, and the exclusive right of the 
United States to consent to any actions affecting the land 
which comprise the corpus of the trust as well as the exclusive 
right to consent to any amendment to the Hawaiian Homes 
Commission Act, 1920, affecting the rights of beneficiaries 
under the Act, enacted by the legislature of the State of 
Hawaii; (3) the authorization of mortgage loans insured by the 
Federal Housing Administration for the purchase, construction, 
or refinancing of homes on Hawaiian Home Lands under the 
National Housing Act; (4) authorizing Native Hawaiian 
representation on the National Commission on American Indian, 
Alaska Native, and Native Hawaiian Housing under Public Law 
101-235; (5) the inclusion of Native Hawaiians in the 
definition under section 3672 of title 38, United States Code, 
applicable to subchapter V of chapter 37 of title 38, United 
States Code, relating to a housing loan program for Native 
American veterans; and (5) the enactment of the Hawaiian Homes 
Lands Recovery Act which establishes a process for the 
conveyance of Federal lands to the Department of Hawaiian Home 
Lands that are equivalent in value to lands acquired by the 
United States from the Hawaiian Home Lands inventory.

Section 3

    Section 3 amends the Native American Housing Assistance and 
Self-Determination Act of 1996 by adding a new Title VIII at 
the end of that Act, to provide authority for the provision of 
housing assistance to low-income Native Hawaiian families.

          title VIII--Housing Assistance for Native Hawaiians

Section 801

    Section 801 sets forth the definitions for purposes of 
Title VIII.

Section 801(1)

    Paragraph 1 of section 801 sets forth the definition of the 
term ``Department of Hawaiian Home Lands''. The term 
``Department of Hawaiian Home Lands'' or ``Department'', as 
used in Title VIII, means the agency or department of the 
government of the State of Hawaii that is responsible for the 
Administration of the Hawaiian Homes Commission Act, 1920.

Section 801(2)

    Paragraph 2 of section 801 sets forth the definition of the 
term ``Director''. The term ``Director'', as used in Title 
VIII, means the Director of the Department of Hawaiian Home 
Lands.

Section 801(3)

    Paragraph 3 of section 801 sets forth the definition of the 
term ``elderly family'' and ``near-elderly family''. 
Subparagraph (A) of paragraph 3 provides that the term 
``elderly family'' or ``near-elderly family'', as used in Title 
VIII, means a family whose head, or his or her spouse, or whose 
sole member is for an elderly family, an elderly person or for 
a near-elderly family, a near-elderly person. Subparagraph (B) 
of paragraph 3 provides that the term ``elderly family'' or 
``near-elderly family'' includes two or more elderly persons or 
near-elderly persons, as the case may be, living together; and 
one or more persons elderly or near-elderly persons living with 
one or more persons determined under the housing plan to be 
essential to their care or well-being.

Section 801(4)

    Paragraph 4 of section 801 sets forth the definition of 
``Hawaiian Home Lands''. The term ``Hawaiian Home Lands'', as 
used in Title VIII, means lands that have the status as 
Hawaiian Home Lands under section 204 of the Hawaiian Homes 
Commission Act or Lands acquired pursuant to Hawaiian Homes 
Commission Act.

Section 801(5)

    Paragraph 5 of section 801 sets forth the definition of the 
term ``Housing Area''. The term ``housing area'', as used in 
Title VIII, means an area of the Hawaiian Home Lands with 
respect to which the Department of Hawaiian Home Lands is 
authorized to provide assistance for affordable housing under 
this Act.

Section 801(6)

    Paragraph 6 of section 801 sets forth the definition of the 
term ``Housing Entity''. The term ``housing entity'', as used 
in Title VIII, means the Department of Hawaiian Home Lands.

Section 801(7)

    Paragraph 7 of section 801 sets forth the definition of the 
term ``Housing Plan''. The term ``housing plan'', as used in 
Title VIII, means a plan developed by the Department of 
Hawaiian Home Lands.

Section 801(8)

    Paragraph 8 of section 801 sets forth the definition of the 
term ``Median Income''. The term ``median income'', as used in 
Title VIII, means, with respect to an area that is a Hawaiian 
housing area, the greater of the median income for the Hawaiian 
housing area, which is to be determined by the Secretary of 
Housing and Urban Development, or the median income for the 
State of Hawaii.

Section 801(9)

    Paragraph 9 of section 801 sets forth the definition of the 
term ``Native Hawaiian''. The term ``Native Hawaiian'' means 
any individual who is a citizen of the United States and is a 
descendant of the aboriginal people who prior to 1778, occupied 
and exercised sovereignty in the area that now constitutes the 
State of Hawaii. This shall be evidenced by (i) genealogical 
records; (ii) elders or long-term community residents; or (iii) 
birth records of the State of Hawaii. The definition of 
``Native Hawaiian'' for purposes of this Act does not affect 
the definition of the term ``native Hawaiian'' as used in the 
Hawaiian Home Commission Act, nor does the definition of 
``Native Hawaiian'' for purposes of this Act alter the 
definition of those native Hawaiians who are eligible to reside 
on the Hawaiian home lands.

Section 802

    Section 802 provides authority for the provision of block 
grants for affordable housing activities.

Section 802(a)

    Section 802(a) provides that for each fiscal year, the 
Secretary of Housing and Urban Development shall, to the extent 
amounts are made available to carry out Title VIII, to the 
Department of Hawaiian Home Lands to carry out affordable 
housing activities for Native Hawaiian families residing on or 
near the Hawaiian Home Lands.

Section 802(b)

    Section 802(b) provides that the Secretary of Housing and 
Urban Development may make a grant under Title VIII to the 
Department of Hawaiian Home Lands for a fiscal year but only if 
the Director has submitted a housing plan for that fiscal year 
to the Secretary and the Secretary has made a determination 
under section 804 that the housing plan complies with the 
requirements of section 803. The Secretary may waive the 
applicability of these requirements, in part, if the Secretary 
finds that the Department of Hawaiian Home Lands has not 
complied or cannot comply with the requirements due to 
circumstances beyond the control of the Department of Hawaiian 
Home Lands.

Section 802(c)

    Section 802(c) provides that except as provided in section 
802(e), the amounts provided under a grant under section 802 
may be used only for affordable housing activities under Title 
VIII that are consistent with a housing plan approved under 
section 804.

Section 802(d)

    Section 802(d) provides that the Secretary of Housing and 
Urban Development shall by regulation authorize the Department 
of Hawaiian Home Lands to use a percentage of any grant amounts 
received under Title VIII for any reasonable administrative and 
planning expenses of the Department relating to carrying out 
Title VIII and activities assisted with those amounts. The 
administrative and planning expenses include costs for the 
salaries of individuals engaged in administering and managing 
affordable housing activities assisted with grant amounts 
provided under Title VIII, and expenses incurred in preparing a 
housing plan under section 803.

Section 802(e)

    Section 802(e) provides that the Director shall make all 
reasonable efforts, consistent with the purposes of Title VIII, 
to maximize participation by the private sector, including 
nonprofit organizations and for-profit entities, in 
implementing a housing plan that has been approved by the 
Secretary of Housing and Urban Development under section 803.

Section 802(f)

    Section 802(f) provides that the Secretary of Housing and 
Urban Development shall be guided by the relevant program 
requirements of titles I, II and IV of the Native American 
Housing Assistance and Self-Determination Act in the 
implementation of housing assistance programs for Native 
Hawaiians under Title VIII. The Secretary may make exceptions 
to, or modifications of, program requirements for Native 
American housing assistance set forth in titles I, II and IV as 
necessary and appropriate to meet the unique situation and 
housing needs of Native Hawaiians.

Section 803

    Section 803 sets forth the requirements associated with 
housing plans.

Section 803(a)

    Section 803(a) provides that the Secretary shall require 
the Director to submit a housing plan under section 803 for 
each fiscal year and provide for the review of each plan 
submitted under section 803.

Section 803(b)

    Section 803(b) provides that each housing plan under 
section 803 shall be a form prescribed by the Secretary and 
contain, with respect to the five-year period beginning with 
the fiscal year for which the plan is submitted: (1) a general 
statement of the mission of the Department of Hawaiian Home 
Lands to serve the needs of the low-income families to be 
served by the Department; (2) a statement of the goals and 
objectives of the Department of Hawaiian Home Lands to enable 
the Department to serve the needs identified during the period; 
and (3) an overview of the activities planned during the period 
including an analysis of the manner in which the activities 
will enable the Department to meet its mission, goals and 
objectives.

Section 803(c)

    Section 803(c) provides that a housing plan under section 
803 shall be in a form prescribed by the Secretary of Housing 
and Urban Development and contain information relating to the 
fiscal year for which the assistance under Title VIII is to be 
made available, including--
     A statement of the goals and objectives to be 
accomplished during the period covered by the plan;
     A statement of the housing needs of the low-income 
families served by the Department and the means by which those 
needs will be addressed during the period covered by the plan, 
including a description of the estimated housing needs and the 
need for assistance for the low-income families to be served by 
the Department, including a description of the manner in which 
the geographical distribution of assistance is consistent with 
the geographical needs of those families and needs for various 
categories of housing assistance, and a description of the 
estimated housing needs for all families to be served by the 
Department;
     An operating budget for the Department in a form 
prescribed by the Secretary that includes an identification and 
a description of the financial resources reasonably available 
to the Department to carry out the purposes of Title VIII, 
including an explanation of the manner in which amounts made 
available will be used to leverage additional resources and the 
uses to which the resources will be committed, including 
eligible and required affordable housing activities and 
administrative expenses;
     A statement of the affordable housing resources 
currently available at the time of the submittal of the plan 
and to be made available during the period covered by the plan, 
including--
           A description of the significant 
        characteristics of the housing market in the State of 
        Hawaii, including the availability of housing from 
        other public sources, private market housing and the 
        manner in which the characteristic influence the 
        decision of the Department to use grant amounts to be 
        provided under Title VIII for rental assistance, the 
        production of new units, the acquisition of existing 
        units, or the rehabilitation of units;
           A description of the structure, 
        coordination, and means of cooperation between the 
        Department and any other governmental entities in the 
        development, submission, or implementation of housing 
        plans, including a description of the involvement of 
        private, public, and nonprofit organizations and 
        institutions, the use of loan guarantees under section 
        184A of the Housing and Community Development Act of 
        1992, and other housing assistance provided by the 
        United States, including loans, grants, and mortgage 
        assistance,
           A description of the manner in which the 
        plan will address the needs identified;
           A description of any existing or anticipated 
        home ownership programs and rental programs to be 
        carried out during the period covered by the plan and 
        the requirements and assistance available under those 
        programs;
           A description of any existing or anticipated 
        housing rehabilitation programs necessary to ensure the 
        long-term viability of the housing to be carried out 
        during the period covered by the plan, and the 
        requirements and assistance available under those 
        programs;
           A description of all other existing or 
        anticipated housing assistance provided by the 
        Department during the period covered by the plan 
        including transitional housing, homeless housing, 
        college housing, and supportive services housing, and 
        the requirements and assistance available under such 
        programs;
           A description of any housing to be 
        demolished or disposed of, a timetable for that 
        demolition or disposition, and any other information 
        required by the Secretary with respect to that 
        demolition or disposition;
           A description of the manner in which the 
        Department will coordinate with welfare agencies in the 
        State of Hawaii to ensure that residents of affordable 
        housing will be provided with access to resources to 
        assist in obtaining employment and achieving self-
        sufficiency;
           A description of the requirements 
        established by the Department to promote the safety of 
        residents of affordable housing, facilitate the 
        undertaking of crime prevention measures, allow 
        resident input and involvement, including the 
        establishment of resident organizations, and allow for 
        the coordination of crime prevention activities between 
        the Department and local law enforcement officials; and
           A description of the entities that will 
        carry out the activities under the plan, including the 
        organization capacity and key personnel of the 
        entities;
           Evidence of compliance that shall include, 
        as appropriate--
                   A certification that the Department 
                will comply with title VI of the Civil Rights 
                Act of 1964 or with title VIII of the Civil 
                Rights Act of 1968 in carrying out Title VIII, 
                to the extent that such title is applicable, 
                and other applicable Federal statutes;
                   A certification that the Department 
                will require adequate insurance coverage for 
                housing units that are owned and operated or 
                assisted with grant amounts provided under this 
                title, in compliance with such requirements as 
                may be established by the Secretary;
                   A certification that policies are in 
                effect and are available for review by the 
                Secretary and the public governing the 
                eligibility, admission, and occupancy of 
                families for housing assisted with grant 
                amounts provided under Title VIII;
                   A certification that policies are in 
                effect and are available for review by the 
                Secretary and the public governing rents 
                charged, including the methods by which such 
                rents or home buyer payments are determined, 
                for housing assisted with grant amounts 
                provided under Title VII; and
                   A certification that policies are in 
                effect and are available for review by the 
                Secretary and the public governing the 
                management and maintenance of housing assisted 
                with grant amounts provided under Title VIII.

Section 803(d)

    Section 803(d) addresses the applicability of civil rights 
statutes.

Section 803(d)(1)

    Section 803(d)(1) provides that to the extent that the 
requirements of title VI of the Civil Rights Act of 1964 or of 
title VIII of the Civil Rights Act of 1968 apply to assistance 
provided under title VIII of this Act, nothing in the 
requirements concerning discrimination on the basis of race 
shall be construed to prevent the provision of assistance under 
title VIII of this Act to the Department of Hawaiian Home Lands 
on the basis that the Department served Native Hawaiians; or to 
an eligible family on the basis that the family is a Native 
Hawaiian family.

Section 803(d)(2).

    Section 803(d)(2) provides that program eligibility under 
title VIII of this Act may be restricted to Native Hawaiians. 
Subject to the proviso, no person may be discriminated against 
on the basis of race, color, national origin, religion, sex, 
familial status, or disability.

Section 803(e)

    Section 803(e) provides that as condition of receiving 
grant amounts under title VIII of this Act, the Department of 
Hawaiian Home Lands shall, to the extent practicable, work with 
or subcontract with private nonprofit organizations experienced 
in the planning and development of affordable housing for 
Native Hawaiians to carry out affordable housing activities 
with those grants.

Section 804

    Section 804 addresses the Secretary's review of the housing 
plans to be submitted under section 803.

Section 804(a)(1)

    Section 804(a)(1) provides that the Secretary is to conduct 
a review of a housing plan submitted to him pursuant to section 
803 to ensure that the plan complies with the requirements of 
section 803, and the Secretary shall have the discretion to 
review the plan only to the extent that the Secretary considers 
the review necessary.

Section 804(a)(2)

    Section 804(a)(2) provides that no later than sixty days 
after receiving a plan which is required to be submitted 
pursuant to section 803, the Secretary is to notify the 
Director of the Department of Hawaiian Home Lands as to whether 
the plan complies with the requirements of section 803, and if 
the Secretary does not notify the Director as required under 
section 804(a)(2) and section 804(b) upon the expiration of the 
sixty day period, the plan shall be considered to have been 
determined to comply with the requirements under section 803 
and the Director shall be considered to have been notified of 
compliance.

Section 804(b)

    Section 804(b) provides that if the Secretary determines 
that a plan submitted under section 803 does not comply with 
the requirements of section 803, the Secretary shall specify in 
the notice under section 804(a) the reasons for noncompliance 
and any modifications that are necessary for the plan to meet 
the requirements of section 803.

Section 804(c)

    Section 804(c) provides that after the Director of the 
Department of Hawaiian Home Lands submits a housing plan under 
section 803, or any amendment or modification to the plan, to 
the Secretary, to the extent that the Secretary considers such 
an action to be necessary to make a determination under section 
804(c), the Secretary shall review the plan, including any 
amendments or modifications thereto, to determine whether the 
contents of the plan set forth the information required by 
section 803 to be contained in the housing plan, whether the 
contents of the plan are consistent with information and data 
available to the Secretary, and whether the contents of the 
plan are not prohibited by or inconsistent with any provision 
of this Act or any other applicable law. If the Secretary makes 
a determination under section 804(c) that any of the 
appropriate certifications under section 803(c)(2)(E) are not 
included in the plan, the plan shall be considered to be 
incomplete.

Section 804(d)

    Section 804(d) provides that after a section 803 plan has 
been submitted for a fiscal year, the Director of the 
Department of Hawaiian Home Lands may comply with the 
provisions of section 803 for any succeeding fiscal year (with 
respect to information included for the five-year period under 
section 803(b) or for the one-year period under section 803(c)) 
by submitting only such information regarding such changes as 
may be necessary to update the plan previously submitted. 
However, the Director must submit a complete plan under section 
803 not later than four years after submitting an initial plan 
under section 803, and not less frequently than every four 
years.

Section 804(e)

    Section 804(e) provides that section 804 and section 803 
are to take effect on the date provided by the Secretary 
pursuant to section 807(a) to provide for timely submission and 
review of the housing plan as necessary for the provision of 
assistance under title VIII of this Act for fiscal year 2000.

Section 805

    Section 805 addresses the treatment of program income and 
labor standards.

Section 805(a)

    Section 805(a) provides that the Department of Hawaiian 
Home Lands may retain any program income that is realized from 
any grant amounts received by the Department under title VIII 
of this Act if that income was realized after the initial 
disbursement of grant amounts received by the Department and 
the Director agrees to use the program income for affordable 
housing activities in accordance with the provisions of title 
VIII of this Act. Section 805(a) further provides that the 
Secretary may not reduce the grant amount for the Department of 
Hawaiian Home Lands based solely on whether the Department 
retains program income under this section or the amount of any 
such program income retained. Section 805(a) provides that the 
Secretary may by regulation, exclude from consideration as 
program income any amounts determined to be so small that 
compliance with the requirements of section 805(a) would create 
an unreasonable administrative burden on the Department.

Section 805(b)(1)

    Section 805(b)(1) provides that any contract or agreement 
for assistance, sale, or lease pursuant to title VIII of this 
Act shall contain a provision requiring that an amount not less 
than the wages prevailing in the locality, as determined or 
adopted (subsequent to a determination under applicable state 
or local law) by the Secretary, shall be paid to all 
architects, technical engineers, draftsmen, technicians 
employed in the development and all maintenance, and laborers 
and mechanics employed in the operation of the affordable 
housing project involved, and a provision that an amount not 
less than the wages prevailing in the locality, as 
predetermined by the Secretary of Labor pursuant to the Act 
commonly known as the Davis-Bacon Act shall be paid to all 
laborers and mechanics employed in the development of the 
affordable housing involved.

Section 805(b)(2)

    Section 805(b)(2) provides that the requirements of section 
805(b)(1) and the provisions relating to wages required under 
section 805(b)(1) in any contract or agreement for assistance, 
sale, or lease under title VIII of this Act, shall not apply to 
any individual who performs the services for which the 
individual volunteered and who is not otherwise employed at any 
time in the construction work and received no compensation or 
is paid expenses, reasonable benefits, or a nominal fee for 
those services.

Section 806

    Section 806 addresses environmental review, decision making 
and action under the National Environmental Policy Act.

Section 806(a)(1)(A)

    Section 806(a)(1)(A) provides that the Secretary may carry 
out the alternative environmental protection procedures 
described in section 806(a)(1)(B) in order to ensure that the 
policies of the National Environmental Policy Act of 1969 and 
other provisions of law that further the purposes of the Act, 
as a specified in regulations issued by the Secretary, are most 
effectively implemented in connection with the expenditure of 
grant amounts provided under title VIII of this Act and to 
ensure to the public undiminished protection of the 
environment.

Section 806(a)(1)(B)

    Section 806(a)(1)(B) provides that in lieu of applying 
environmental protection procedures otherwise applicable, the 
Secretary may by regulation provide for the release of funds 
for specific projects to the Department of Hawaiian Home Lands 
if the Director of the Department assumes all of the 
responsibilities for environmental review, decision-making, and 
action under the National Environmental Policy Act of 1969, and 
such other provisions of law as the regulations of the 
Secretary specify, that would apply to the Secretary were the 
Secretary to undertake those projects as Federal projects.

Section 806(a)(2)

    Section 806(a)(2) provides that the Secretary is to issue 
regulations to carry out section 806(a)(2) only after 
consultation with the Council on Environmental Quality. Section 
806(a)(2) further provides that the regulations issued under 
this paragraph are to provide for the monitoring of the 
environmental reviews performed under section 806(a)(2), 
facilate training for the performance of such reviews if the 
Secretary in his discretion determines that such training is 
necessary or desirable, and provide for the suspension or 
termination of the assumption of responsibilities under section 
806(a)(2).

Section 806(a)(3)

    Section 806(a)(3) provides that the duty of the Secretary 
under section 806(a)(2)(B) is not to be construed to limit or 
reduce any responsibility assumed by the Department of Hawaiian 
Home Lands for grant amounts with respect to any specific 
release of funds.

Section 806(b)

    Section 806(b) provides that the Secretary is to authorize 
the release of funds subject to the procedures under section 
806 only if, not less than fifteen days before the Secretary's 
approval and before any commitment of funds to such projects, 
the Director of the Department of Hawaiian Home Lands submits 
to the Secretary a request for such a release accompanied by a 
certification that meets the requirements of section 806(c). 
Section 806(b) further provides that the Secretary's approval 
of a certification is to be deemed to satisfy the Secretary's 
responsibilities under the National Environmental Policy Act of 
1969 and such other provisions of law as the Secretary's 
regulations specify to the extent that those responsibilities 
relate to the release of funds for projects that are covered by 
the Secretary's certification.

Section 806(c)

    Section 806(c) provides that a certification under the 
procedures authorized in section 806 are to be in a form 
acceptable to the Secretary, be executed by the Director of the 
Department of Hawaiian Home Lands, specify that the Department 
of Hawaiian Home Lands has fully carried out its 
responsibilities as set forth in section 806(a), and specify 
that the Director consents to assume the status of a 
responsible Federal official under the National Environmental 
Policy Act of 1969 and each provision of law specified in 
regulations issued by the Secretary to the extent that those 
laws apply by reason of section 806(a). Section 806(c) further 
provides that a certification under the procedures of section 
806(c) shall specify that the Director is authorized and 
consents on behalf of the Department of Hawaiian Home Lands and 
that the Director accepts the jurisdiction of the Federal 
courts for the purpose of enforcement of the responsibilities 
of the Director of the Department of Hawaiian Home Lands as 
such an official.

Section 807

    Section 807 provides that the Secretary shall issue final 
regulations necessary to carry out the provisions of title VIII 
of this Act no later than October 1, 1999.

Section 808

    Section 808 provides that except as otherwise expressly 
provided in title VIII of this Act, title VIII of this Act 
shall take effect on October 1, 1999.

Section 809

    Section 809 addresses affordable housing activities.

Section 809(a)(1)

    Section 809(a)(1) provides that the national objectives of 
title VII of this Act are to assist and promote affordable 
housing activities to develop, maintain, and operate affordable 
housing in safe and healthy environments for occupancy by low-
income Native Hawaiian families; to ensure better access to 
private mortgage markets and to promote the self-sufficiency of 
low-income Native Hawaiian families; to coordinate activities 
to provide housing for low-income Native Hawaiian families with 
federal, state and local activities to further economic and 
community development; to plan for and integrate infrastructure 
resources on the Hawaiian Home Lands with housing development; 
and to promote the development of private capital markets, and 
allow the markets to operate and grow, thereby benefitting 
Native Hawaiian communities.

Section 809(a)(2)

    Section 809(a)(2) provides that assistance for eligible 
housing activities under title VIII of this Act shall be 
limited to low-income Native Hawaiian families except that the 
Director may provide assistance for home ownership activities 
under section 810(b), model activities under section 810(f), or 
loan guarantee activities under section 184A of the Housing and 
Community Development Act of 1992 to Native Hawaiian families 
who are not low-income families, to the extent that the 
Secretary approves the activities under section 184A to address 
a need for housing for those families that cannot be reasonably 
met without such assistance. The Secretary is to establish 
limitations on the amount of assistance that may be provided 
under title VIII of this Act for activities for families that 
are not low-income families. However, section 809(a)(2) further 
provides that the Director may provide housing or housing 
assistance provided through affordable housing activities 
assisted with grant amounts under this title to a family that 
is not composed of Native Hawaiians if the Department 
determines that the presence of the family in the housing 
involved is essential to the well-being of Native Hawaiian 
families and the need for housing for the family cannot be 
reasonably met without such assistance.
    Section 809(a)(2) provides that a housing plan submitted 
under section 803 may authorize a preference, to the extent 
practicable, for housing or housing assistance provided through 
affordable housing activities assisted with grant amounts 
provided under title VIII of this Act to be provided to 
families that are eligible to reside on the Hawaiian Home 
Lands. In any instance in which a housing plan provides for 
such a preference, the Director is to ensure that housing 
activities which are assisted with grant amounts under title 
VIII of this Act are subject to that preference. Section 
809(a)(2) further provides that as a condition of receiving 
grant amounts under title VIII of this Act, and to the extent 
practicable, the Department of Hawaiian Home Lands is to work 
with or subcontract with private nonprofit organizations 
experienced in the planning and development of affordable 
housing for Native Hawaiians to carry out affordable housing 
activities with those grant amounts.

Section 810(a)

    Section 810(a) provides that affordable housing activities 
under section 810 activities conducted in accordance with the 
requirements of section 811 to develop or to support affordable 
housing for rental or home ownership or provide housing 
services with respect to affordable housing, through the 
activities described in section 810(b)

Section 810(b)(1)

    Section 810(b)(1) provides that the activities described in 
section 810(b) are the acquisition, new construction, 
reconstruction, or moderate or substantial rehabilitation of 
affordable housing, which may include real property 
acquisition, site improvement, the development of utilities and 
utility services, conversion, demolition, financing, 
administration and planning, and other related activities.

Section 810(b)(2)

    Section 810(b)(2) describes the housing services which are 
authorized under the title VIII of this Act, and establishes 
that the provision of housing-related services for affordable 
housing includes housing counseling in connection with rental 
or home ownership assistance, the establishment and support of 
resident organizations and resident management corporations, 
energy auditing, activities related to the provision of self-
sufficiency and other services, and other services related to 
assisting owners, tenants, contractors, and other entities 
participating or seeking to participate in other business 
activities assisted pursuant to section 810.

Section 810(b)(3)

    Section 810(b)(3) describes the housing management services 
that are authorized under title VIII of this Act, and 
establishes that the provision of management services for 
affordable housing includes the preparation of work 
specifications, loan processing, inspections, tenant selection, 
management of tenant-based rental assistance, and management of 
affordable housing projects.

Section 810(b)(4)

    Section 810(b)(4) establishes that the activities 
authorized under title VIII of this Act include the provision 
of safety, security, and law enforcement measures and 
activities appropriate to protect residents of affordable 
housing from crime.

Section 810(b)(5)

    Section 810(b)(5) establishes that the activities 
authorized under title VIII of this Act include housing 
activities under model programs that are designed to carry out 
the purposes of title VIII and specifically approved by the 
Secretary as appropriate for the purposes of title VIII.

Section 811(a)

    Section 811(a) provides that as a condition of receiving 
grant amounts under title VIII, the Director is to develop 
written policies governing rents and home buyer payments 
charged for dwelling units assisted under title VIII, including 
methods by which such rents and home buyer payments are 
determined. However, in the case of any low-income family 
residing in a dwelling unit assisted with grant amounts under 
title VIII, the monthly rent or home buyer payment, as 
applicable, for that dwelling unit may not exceed thirty 
percent of the monthly adjusted income of that family.

Section 811(b)

    Section 811(b) provides that using amounts of any grants 
received under title VIII, the Director is to reserve and use 
for operating under section 810 such mounts as may be necessary 
to provide for the continued maintenance and efficient 
operation of such housing. Section 811(b) further provides that 
section 811(b) may not be construed to prevent the Director, or 
any entity funded by the Department, from demolishing or 
disposing of housing, pursuant to regulations established by 
the Secretary.

Section 811(c)

    Section 811(c) provides that as a condition of receiving 
grant amounts under title VIII, the Director is to require 
adequate insurance coverage for housing units that are owned or 
operated or assisted with grant amounts provided under title 
VIII.

Section 811(d)

    Section 811(d) provides that as a condition of receiving 
grant amounts under title VIII, the Director is to develop 
written policies governing the eligibility, admission, and 
occupancy of families for housing assisted with grant amounts 
provided under title VIII.

Section 811(e)

    Section 811(e) provides that as a condition of receiving 
grant amounts under title VIII, the Director is to develop 
policies governing the management and maintenance of housing 
assisted with grant amounts under title VIII.

Section 812(a)

    Section 812(a) provides that subject to section 811 and an 
applicable housing plan approved under section 803, the 
Director is to have the discretion to use grant amounts for 
affordable housing activities through the use of equity 
investments, interest-bearing loans or advances, noninterest-
bearing loans or advances, interest subsidies, the leveraging 
of private investments, or any other form of assistance that 
the Secretary determines to be consistent with the purposes of 
title VIII, and the right to establish the terms of assistance 
provided with funds referred to in section 812(a).

Section 812(b)

    Section 812(b) provides authority for the Director of the 
Department of Hawaiian Home Lands to invest grant amounts in 
investment securities and other obligations, as approved by the 
Secretary, for the purposes of carrying out affordable housing 
activities.

Section 813

    Section 813 addresses low-income requirements and income 
targeting.

Section 813(a)

    Section 813(a) provides that housing is to qualify for 
affordable housing for purposes of title VIII of this Act if 
the conditions set forth in section 813(a)(1) and 813(a)(2) are 
met.

Section 813(a)(1)

    Section 813(a)(1) provides that each dwelling unit in the 
housing will qualify for affordable housing if, in the case of 
rental housing, the housing is made available for occupancy 
only by a family that is a low-income family at the time of the 
initial occupancy by the family of that unit, and in the case 
of housing for homeownership, the housing is made available for 
purchase only by a family that is a low-income family at the 
time of the purchase.

Section 813(a)(2)

    Section 813(a)(2) provides that each dwelling unit in the 
housing will remain affordable housing, in accordance with 
binding commitments satisfactory to the Secretary for the 
remaining useful life of the property, as determined by the 
Secretary, without regard to the term of the mortgage or to 
transfer of ownership, or such other period as the Secretary 
determines is the longest feasible period of time consistent 
with sound economics and the purposes of title VIII of this 
Act, except upon a foreclosure by a lender, or upon other 
transfer in lieu of foreclosure, if that foreclosure or 
transfer action recognizes any contractual or legal rights of a 
public agency, nonprofit sponsor, or other person or entity to 
take an action that would avoid termination of low-income 
affordability, in the case of foreclosure or transfer ownership 
in lieu of foreclosure, and is not for the purpose of avoiding 
low-income affordability restrictions, as determined by the 
Secretary.

Section 813(b)

    Section 813(b) provides that notwithstanding the provisions 
of section 813(a), housing assisted pursuant to section 
809(a)(2)(B) is to be considered affordable housing for 
purposes of title VIII of this Act.

Section 814

    Section 814 sets forth the requirements for leases and 
criteria for tenant and homebuyer selection.

Section 814(a)

    Section 814(a) provides that except to the extent otherwise 
provided by or inconsistent with the laws of the State of 
Hawaii, in renting dwelling units in affordable housing 
assisted with grant amounts provided under title VIII of this 
Act, the Director, owner, or manager shall use--
         Leases that do not contain unreasonable terms 
        and conditions; leases that require the Director, owner 
        or manager to maintain the housing in compliance with 
        applicable housing codes and quality standards;
         Leases that require the Director, owner, or 
        manager to give adequate written notice of termination 
        of the lease, which shall be the period of time 
        required under applicable state or local law;
         Leases which specify that, with respect to any 
        notice of eviction or termination, notwithstanding any 
        state or local law, a resident shall be informed of the 
        opportunity, before any hearing or trial, to examine 
        any relevant documents, record or regulations directly 
        related to the eviction or termination;
         Leases that require that the Director, owner, 
        or manager may not terminate the tenancy, during the 
        term of the lease, except for serious or repeated 
        violated of the terms and conditions of the lease, 
        violation of applicable Federal, state, or local law, 
        or for other good cause; and
         Leases that provide that the Director, owner, 
        and manager may terminate the tenancy of a resident for 
        any activity, engaged in by the resident, any member of 
        the household of the resident, or any guest or other 
        person under the control of the resident, that 
        threatens the health or safety of, or right to peaceful 
        enjoyment of the premises by other residents or 
        employees of the Department, owner, or manager; 
        threatens the health or safety of, or right to peaceful 
        enjoyment of their premises by, persons residing in the 
        immediate vicinity of the premises; or is criminal 
        activity, including drug-related criminal activity, on 
        or off the premises.

Section 814(b)

    Section 814(b) provides that as a condition of receiving 
grant amounts under title VIII of this Act, the Director shall 
adopt and use written tenant and homebuyer selection policies 
and criteria that are consistent with the purpose of providing 
housing for low-income families; are reasonably related to 
program eligibility and the ability of the applicant to perform 
the obligations of the lease; and provide for the selection of 
tenants and homebuyers from a written waiting list in 
accordance with the policies and goals set forth in an 
applicable housing plan approved under section 803; and the 
prompt notification in writing to any rejected applicant of the 
grounds for that rejection.

Section 815

    Section 815 provides that if the Department of Hawaiian 
Home Lands uses grant amounts to provide affordable housing 
under activities authorized by title VIII of this Act, and at 
any time during the useful life of the housing, the housing 
does not comply with the requirement under section 813(a)(2), 
the Secretary shall reduce future grant payments on behalf of 
the Department by an amount equal to the grant amounts used for 
that housing, under the authority of section 819(a)(2), or 
require repayment to the Secretary of any amount equal to those 
grant amounts.

Section 816

    Section 816 provides that for each fiscal year, the 
Secretary shall allocate any amounts made available for 
assistance under this title for the fiscal year, in accordance 
with the formula established pursuant to section 817, to the 
Department of Hawaiian Home Lands if the Department complies 
with the requirements under title VIII of this Act for a grant 
under title VIII of this Act.

Section 817

    Section 817 addresses the establishment of an allocation 
formula for the allocation of amounts made available for block 
grants and the factors for the determination of need.

Section 817(a)

    Section 817(a) provides that the Secretary shall, by 
regulation issued not later than the expiration of the six-
month period beginning on the date of enactment of the Native 
American Housing Assistance and Self-Determination Amendments 
of 1999, in the manner provided under section 807, establish a 
formula to provide for the allocation of amounts available for 
a fiscal year for block grants under title VIII of this Act in 
accordance with the requirements of section 817.

Section 817(b)

    Section 817(b) provides that the formula established under 
the authority of section 817(a) is to be based on factors that 
reflect the needs for assistance for affordable housing 
activities, including the number of low-income dwelling units 
owned or operated at the time pursuant to a contract between 
the Director and the Secretary; the extent of poverty and 
economic distress and the number of Native Hawaiian families 
eligible to reside on the Hawaiian Home Lands; and any other 
objectively measurable conditions that the Secretary and the 
Director may specify.

Section 817(c)

    Section 817(c) provides that in establishing the formula 
under the authority of section 817(a), the Secretary is to 
consider the relative administrative capacities of the 
Department of Hawaiian Home Lands and other challenges faced by 
the Department, including geographic distribution within 
Hawaiian Home Lands, and technical capacity.

Section 817(d)

    Section 817(d) provides that section 817 is to take effect 
on the date of enactment of the Native American Housing 
Assistance and Self-Determination Amendments of 1998.

Section 818

    Section 818 addresses the remedies available to the 
Secretary for failure to comply with the requirements of title 
VIII of this Act.

Section 818(a)

    Section 818(a) provides that except as provided in section 
818(b), if the Secretary finds after reasonable notice and 
opportunity for a hearing that the Department of Hawaiian Home 
Lands has failed to comply substantially with any provision of 
title VIII of this Act, the Secretary shall terminate payments 
to the Department under title VIII of this Act; reduce payments 
to the Department under title VIII of this Act by an amount 
equal to the amount of such payments that were not expended in 
accordance with title VIII of this Act; or limit the 
availability of payments under title VIII of this Act to 
programs, projects, or activities not affected by the failure 
to comply. If the Secretary takes any of the actions authorized 
under section 818(a), the Secretary is to continue that action 
until the Secretary determines that the failure by the 
Department to comply with the provision has been remedied by 
the Department and the Department is in compliance with that 
provision.

Section 818(b)

    Section 818(b) provides that the Secretary may provide 
technical assistance for the Department, either directly or 
indirectly, that is designed to increase the capability and 
capacity of the Director of the Department to administer 
assistance provided under title VIII of this Act in compliance 
with the requirements under title VIII of this Act, if the 
Secretary makes a finding under section 818(a) but determines 
that the failure of the Department to comply substantially with 
the provisions of title VIII of this Act is not a pattern or 
practice of activities constituting willful noncompliance and 
is a result of the limited capability or capacity of the 
Department of Hawaiian Home Lands.

Section 818(c)

    Section 818(c) provides that in lieu of, or in addition to 
any action that the Secretary may take under section 818(a), if 
the Secretary has reason to believe that the Department of 
Hawaiian Home Lands has failed to comply substantially with any 
provision of title VIII of this Act, the Secretary may refer 
the matter to the Attorney General of the United States with a 
recommendation that an appropriate civil action be instituted. 
Upon receiving the Secretary's referral, the Attorney General 
may bring a civil action in any United States district court of 
appropriate jurisdiction for such relief as may be appropriate, 
including an action to recover the amount of the assistance 
furnished under title VIII of this Act that was not expended in 
accordance with title VIII of this Act or for mandatory or 
injunctive relief.

Section 818(d)(1)

    Section 818(d)(1) provides that if the Director receives 
notice under section 818(a) of the termination, reduction, or 
limitation of payments under this Act, the Director may, not 
later than sixty days after receiving such notice, file with 
the United States Court of Appeals for the Ninth Circuit, or in 
the United States Court of Appeals for the District of 
Columbia, a petition for review of the action of the Secretary, 
and upon the filing of any petition, the Director is to 
transmit copies of the petition to the Secretary and the 
Attorney General of the United States, who shall represent the 
Secretary in the litigation.

Section 818(d)(2)

    Section 818(d)(2) provides that the Secretary shall file in 
a court a record of the proceeding on which the Secretary based 
the action as provided in section 2112 of title 28, United 
States Code. No objection to the action of the Secretary is to 
be considered by the court unless the Department has registered 
objection before the Secretary.

Section 818(d)(3)

    Section 818(d)(3) provides that the court shall have 
jurisdiction to affirm or modify the action of the Secretary or 
to set the action aside in whole or in part. If supported by 
substantial evidence on the record considered as a whole, the 
findings of fact by the Secretary shall be conclusive. The 
court may order evidence, in addition to the evidence submitted 
for review under section 818(d)(3), to be taken by the 
Secretary, and to be made part of the record. By reason of 
additional evidence and evidence filed with the court, the 
Secretary may modify his findings of fact or make new findings, 
and shall file such modified or new findings and his 
recommendation, if any, for the modification or setting aside 
of the original action of the Secretary. With respect to a 
question of fact, the findings shall be considered to be 
conclusive if those findings are supported by substantial 
evidence on the record, and considered as a whole.

Section 818(d)(4)

    Section 818(d)(4) provides that except for review by the 
U.S. Supreme Court, upon the filing of the record under section 
818(d)(4) with the court, the jurisdiction of the court shall 
be exclusive and the judgment of the court shall be final. A 
judgment from the court under section 818(d)(4) shall be 
subject to review by the U.S. Supreme Court upon writ of 
certiorari or certification as provided in section 1254 of 
title 28, United States Code.

Section 819

    Section 819 addresses the monitoring of compliance by the 
Director of the Department of Hawaiian Home Lands.

Section 819(a)

    Section 819(a) provides that the Director, through binding 
contractual agreements with owners or other authorized 
entities, shall ensure long-term compliance with the provisions 
of title VIII of the Act. The binding contractual agreements 
with owners or other authorized entities shall provide for the 
enforcement of the provisions of title VIII of this Act by the 
Department and the Secretary to the extent allowable by Federal 
and state law, and remedies for breach of the provisions of the 
binding contractual agreements.

Section 819(b)

    Section 819(b) provides that not less frequently than 
annually, the Director shall review the activities conducted 
and housing assisted under title VIII of this Act, to assess 
compliance with requirements of title VIII of this Act. Each 
review is to include onsite inspection of housing to determine 
compliance with applicable requirements. The results of each 
review shall be included in a performance report of the 
Director submitted to the Secretary under section 820 and made 
available to the public.

Section 819(c)

    Section 819(c) provides that the Secretary is to establish 
such performance measures as may be necessary to assess 
compliance with the requirements of title VIII of this Act.

Section 820

    Section 820 addresses the requirements for the performance 
reports.

Section 820(a)

    Section 820(a) provides that for each fiscal year, the 
Director is to review the progress the Department has made 
during that fiscal year in carrying out the housing plan 
submitted by the Department under section 803, and submit a 
report to the Secretary, in a form acceptable to the Secretary, 
describing the conclusions of the review.

Section 820(b)

    Section 820(b) provides that each performance report 
submitted for a fiscal year is to subscribe the use of grant 
amounts provided to the Department of Hawaiian Home Lands for 
that fiscal year, and assess the relationship of the use of 
grant amounts to the goals identified in the housing plan 
submitted under section 803 as a result of its experiences.

Section 820(c)

    Section 820(c) provides that the Secretary is to establish 
a date for the submission of each performance report, review 
each performance report, and with respect to each performance 
report, make such recommendations as the Secretary considers 
appropriate to carry out the purposes of title VIII of this 
Act.

Section 820(d)

    Section 820(d) provides that in preparing a performance 
report, the Director shall make the report publicly available 
to the beneficiaries of the Hawaiian Homes Commission Act, 
1920, and give a sufficient amount of time to permit those 
beneficiaries to comment on that report before it is submitted 
to the Secretary, in such manner and at such time as the 
Director may determine. The report is to include a summary of 
any comments received by the Director from beneficiaries 
regarding the program to carry out the housing plan.

Section 821

    Section 821 provides authority for annual performance 
reviews and audits by the Secretary.

Section 821(a)

    Section 821(a) provides that the Secretary shall not less 
frequently than on an annual basis, make such reviews and 
audits as may be necessary or appropriate to determine whether 
the Director has carried out eligible activities under title 
VIII of this Act in a timely manner; has carried out and made 
certifications in accordance with the requirements and the 
primary objectives of title VIII of this Act and with other 
applicable laws; and has a continuing capacity to carry out the 
eligible activities in a timely manner; whether the Director 
has complied with the housing plan submitted by the Director 
under 803, and whether the performance reports of the 
Department under section 821 are accurate. Each review 
conducted under section 821 shall, to the extent practicable, 
include onsite visits by employees of the Department of Housing 
and Urban Development.

Section 821(b)

    Section 821(b) provides that the Secretary is to give the 
Department of Hawaiian Home Lands not less than thirty days to 
review and comment on a report under section 821(b). After 
taking into consideration the comments of the Department, the 
Secretary is authorized to revise the report and to make the 
comments of the Department and the report with any revisions, 
readily available to the public not later than thirty days 
after receipt of the Department's comments.

Section 821(c)

    Section 822(c) provides that the Secretary may make 
appropriate adjustments in the amount of annual grants under 
title VIII of this Act in accordance with the findings of the 
Secretary pursuant to reviews and audits under section 821. The 
Secretary may adjust, reduce, or withdraw grant amounts, or 
take other action as appropriate in accordance with the reviews 
and audits of the Secretary under section 821, except that 
grant amounts already expended on affordable housing activities 
may not be recaptured or deducted from future assistance 
provided to the Department of Hawaiian Home Lands.

Section 822

    Section 822 provides that to the extent the financial 
transactions of the Department of Hawaiian Home Lands involving 
grant amounts under title VIII of the Act relate to amounts 
provided under title VIII, those transactions may be audited by 
the Comptroller General of the United States under such 
regulations as may be prescribed by the Comptroller General. 
The Comptroller General of the United States shall have access 
to all books, accounts, records, reports, files, and other 
papers, things, or property belonging to or in use by the 
Department of Hawaiian Home Lands pertaining to such financial 
transactions and necessary to facilitate the audit.

Section 823

    Section 823 provides that not later than ninety days after 
the conclusion of each fiscal year in which assistance under 
title VIII of this Act is made available, the Secretary shall 
submit a report to the Congress that contains a description of 
the progress made in accomplishing the objectives of title VIII 
of this Act, a summary of the use of funds available under 
title VIII of this Act during the preceding fiscal year, and a 
description of the aggregate outstanding loan guarantees under 
section 184A of the Housing and Community Development Act of 
1992. The Secretary may require the Director to submit such 
reports and other information as may be necessary in order for 
the Secretary to prepare the report required under section 
823(a).

Section 824

    Section 824 provides authority for the appropriation of 
funds for the Department of Housing and Urban Development for 
grants under title VIII of this Act of such sums as may be 
necessary for each of fiscal years 2000, 2001, 2002, 2003 and 
2004.

Section 4

    Section 4 amends subtitle E of title I of the Housing and 
Community Development Act of 1992 by inserting after section 
184, the following provisions--

Section 184A

    Section 184A provides for loan guarantees for Native 
Hawaiian Housing.

Section 184A(a)

    Section 184(a) establishes the definitions for purposes of 
the amendment to subtitle E of title I of the Housing and 
Community Development Act of 1992.

Section 184A(a)(1)

    Section 184A(a)(1) provides that for purposes of section 
184A, the term ``Department of Hawaiian Home Lands'' means the 
agency or department of the government of the State of Hawaii 
that is responsible for the administration of the Hawaiian 
Homes Commission Act, 1920.

Section 184A(a)(2)

    Section 184A(a)(2) provides that for purposes of section 
184A, the term ``eligible entity'' means a Native Hawaiian 
family, the Department of Hawaiian Home Lands, the Office of 
Hawaiian Affairs, or private nonprofit or for profit 
organizations experienced in the planning and development of 
affordable housing for Native Hawaiians.

Section 184A(a)(3)

    Section 184A(a)(3) provides that for purposes of section 
184A, the term ``family'' means one or more persons maintaining 
a household, as the Secretary shall by regulation provide.

Section 184A(a)(4)

    Section 184A(a)(4) provides that for purposes of section 
184A, the term ``guarantee fund'' means the Native Hawaiian 
Housing Loan Guarantee Fund established under section 184A(i).

Section 184A(a)(5)

    Section 184A(a)(5) provides that for purposes of section 
184A, the term ``Hawaiian home Lands'' means lands that have 
the status of Hawaiian Home Lands under section 204 of the 
Hawaiian Homes Commission Act, 1920, or lands that are acquired 
pursuant to that Act.

Section 184A(a)(6)

    Section 184(a)(6) provides that for purposes of section 
184A, the term ``Native Hawaiian'' means any individual who is 
a citizen of the United States and is a descendant of the 
aboriginal people who prior to 1778, occupied and exercised 
sovereignty in the area that now constitutes the State of 
Hawaii. This shall be evidenced by (i) genealogical records; 
(ii) elders or long-term community residents; or (iii) birth 
records of the State of Hawaii. The definition of ``Native 
Hawaiian'' for purposes of section 184A does not affect the 
definition of the term ``native Hawaiian'' as used in the 
Hawaiian Home Commission Act, nor does the definition of 
``Native Hawaiian'' for purposes of section 184A alter the 
definition of those native Hawaiians who are eligible to reside 
on the Hawaiian home lands.

Section 184A(a)(7)

    Section 184A(a)(7) provides that for purposes of section 
184A, the term ``Office of Hawaiian Affairs'' means the entity 
of that name established under the constitution of the State of 
Hawaii, as amended.

Section 184A(b)

    Section 184A(b) provides that in order to provide access to 
sources of private financing to Native Hawaiian families who 
otherwise could not acquire housing financing because of the 
unique legal status of the Hawaiian Home Lands or as a result 
of a lack of access to private financial markets, the Secretary 
may guarantee an amount not to exceed one hundred percent of 
the unpaid principal and interest that is due on an eligible 
loan under section 184A(b).

Section 184A(c)

    Section 184A(c) establishes the requirements for an 
eligible loan.

Section 184A(c)(1)

    Section 184A(c)(1) provides that a loan is an eligible loan 
if that loan is made only to a borrower who is a Native 
Hawaiian family, the Department of Hawaiian Home Lands, the 
Office of Hawaiian Affairs, or a private nonprofit organization 
experience in the planning and development of affordable 
housing for Native Hawaiians.

Section 184A(c)(2)

    Section 184A(c)(2) provides that a loan is an eligible loan 
if the loan will be used to construct, acquire, or rehabilitate 
not more than four-family dwellings that are standard housing 
and are located on Hawaiian Home Lands for which a housing plan 
submitted under section 803 of the Native American housing 
Assistance and Self-Determination Amendments of 1999 applies. 
The housing plan must be approved by the Secretary and must 
provide for the use of loan guarantees under section 184A to 
provide affordable housing on Hawaiian Home Lands.

Section 184A(c)(3)

    Section 184A(c)(3) provides that the loan may be secured by 
any collateral authorized under applicable Federal or state 
law.

Section 184A(c)(4)(A)

    Section 184A(c)(4)(A) provides that the loan shall be made 
only by a lender approved by, and meeting qualifications 
established by the Secretary including any lender described in 
section 184A(c)(4)(B), except that a loan otherwise insured or 
guaranteed by an agency of the Federal government or made by 
the Department of Hawaiian Home Lands from amounts borrowed 
from the United States shall not be eligible for a guarantee 
under section 184A.

Section 184A(c)(4)(B)

    Section 184A(c)(4)(B) provides that the following lenders 
shall be considered to be lenders that have been approved by 
the Secretary--
         Any mortgagee approved by the Secretary for 
        participation in the single family mortgage insurance 
        program under title II of the National Housing Act.
         Any lender that makes housing loans under 
        chapter 37 of title 38, United States Code, that are 
        automatically guaranteed under section 3702(d) of title 
        38, United States Code.
         Any lender approved by the Secretary of 
        Agriculture to make guaranteed loans for single family 
        housing under the Housing Act of 1949.
         Any other lender that is supervised, approved, 
        regulated, or insured by any agency of the Federal 
        government.

Section 184A(c)(5)

    Section 184A(c)(5) provides that the loan shall be made for 
a term not exceeding thirty years, and bear interest, exclusive 
of the guarantee fee under section 184A(d) and service charges, 
if any, at a rate agreed upon by the borrower and the lender 
and determined by the Secretary to be reasonable, but not to 
exceed the rate generally charged in the area, as determined by 
the Secretary, for home mortgage loans not guaranteed or 
insured by any agency or instrumentality of the Federal 
government. The section further provides that the loan must 
involve a principal obligation not exceeding 97.75 percent of 
the appraised value of the property as of the date the loan is 
accepted for guarantee, or 98.75 percent if the value of the 
property is $50,000 or less, or the amount approved by the 
Secretary under section 184A(c) and involve a payment on 
account of the property in cash or its equivalent or through 
the value of any improvements to the property made through the 
skilled or unskilled labor of the borrower, as the Secretary 
shall provide.

Section 184A(d)

    Section 184A(d) provides that before the Secretary approves 
any loan for guarantee under section 184A(d), the lender shall 
submit the application for the loan to the Secretary for 
examination and if the Secretary approves the application, the 
Secretary shall issue a certificate under section 184A(d) as 
evidence of the loan guarantee approved. The Secretary may 
approve a loan for guarantee under section 184A(d) only if he 
determines that there is a reasonable prospect of repayment of 
the loan. A certificate of guarantee issued under section 
184A(d) by the Secretary is to serve as conclusive evidence of 
the eligibility of the loan for guarantee under section 184A(d) 
and the amount of that guarantee, and shall be incontestable in 
the hands of the bearer. The full faith and credit of the 
United States is pledged to the payment of all amounts agreed 
to be paid by the Secretary as security for the obligations 
made by the Secretary under section 184A(d). Section 184A(d) 
may not be construed to preclude the Secretary from 
establishing defenses against the original lender based on 
fraud or material misrepresentation or to bar the Secretary 
from establishing by regulations that are on the date of 
issuance of disbursement, whichever is earlier, partial 
defenses to the amount payable on the guarantee.

Section 184A(e)

    Section 184A(e) provides that the Secretary shall fix and 
collect a guarantee fee for the guarantee of a loan under 
section 184A(e) which may not exceed the amount equal to one 
percent of the principal obligation of the loan. The fee under 
section 184A(e) is to be paid by the lender at time of issuance 
of the guarantee and be adequate to cover expenses and probable 
losses. The Secretary is to deposit any fees collected under 
section 184A(e) in the Native Hawaiian Housing Loan Guarantee 
Fund established under section 184A(j).

Section 184A(f)

    Section 184A(f) provides that the liability under a 
guarantee provided under section 184A shall decrease or 
increase on a pro rata basis according to any decrease or 
increase in the amount of the unpaid obligation under the 
provisions of the loan agreement involved.

Section 184A(g)

    Section 184A(g) provides that notwithstanding any other 
provision of law, any loan guaranteed under section 184A, 
including the security given for the loan, may be sold or 
assigned by the lender to any financial institution subject to 
examination and supervision by an agency of the Federal 
government or of any state or the District of Columbia.

Section 184A(h)

    Section 184A(h) provides that if the Secretary determines 
that any lender or holder of a guarantee certificate under 
section 184A(c) has failed to maintain adequate accounting 
records, or to adequately service loans guaranteed under 
section 184A, or to exercise proper credit or underwriting 
judgment, or has engaged in practices otherwise detrimental to 
the interest of a borrower or the United States, the Secretary 
may take such actions as are authorized in section 184A(h). 
Upon a determination by the Secretary that a holder of a 
guarantee certificate under section 184A(c) has failed to carry 
out an activity outlined in section 184A(h) or has engaged in 
practices described in section 184A(h), the Secretary is 
authorized to refuse, either temporarily or permanently, to 
guarantee any further loans made by such lender or holder, bar 
such lender or holder from acquiring additional loans 
guaranteed under section 184A, and require that such lender or 
holder assume not less than ten percent of any loss on further 
loans made or held by the lender or holder that are guaranteed 
under section 184A. In addition, the Secretary may impose a 
civil monetary penalty on a lender or holder of a guarantee 
certificate under section 184A(d) if the Secretary determines 
that the holder or lender has intentionally failed to maintain 
adequate accounting records, to adequately service loans 
guaranteed under section 184A, or to exercise proper credit or 
underwriting judgment. A civil monetary penalty imposed under 
section 184A(h) is to be imposed in the manner and be in an 
amount provided under section 536 of the National Housing Act 
with respect to mortgagees and lenders under that Act. However, 
notwithstanding the preceding provisions of section 184A(h), if 
a loan was made in good faith, the Secretary may not refuse to 
pay a lender or holder of a valid guarantee on that loan, 
without regard to whether the lender or holder is barred under 
section 184A(h).

Section 184A(i)

    Section 184A(i) provides that if a borrower on a loan 
guaranteed under section 184A defaults on the loan, the holder 
of the guarantee certificate is to provide written notice of 
the default to the Secretary. Upon providing the notice to the 
Secretary, the holder of the guarantee certificate shall be 
entitled to payment under the guarantee, subject to the 
provisions of section 184A, and may proceed to obtain payment 
in one of the following manners--
         The holder may initiate foreclosure 
        proceedings, after providing written notice of that 
        action to the Secretary.
         Upon a final order by the court authorizing 
        foreclosure and submission to the Secretary of a claim 
        for payment under the guarantee, the Secretary shall 
        pay to the holder of the certificate the pro rata 
        portion of the amount guaranteed, as determined 
        pursuant to section 184A(f), plus reasonable fees and 
        expenses as approved by the Secretary.
         The rights of the Secretary shall be 
        subrogated to the rights of the holder of the 
        guarantee. The holder shall assign the obligation and 
        security to the Secretary.
         Without seeking foreclosure, or in any case in 
        which a foreclosure proceeding which has been initiated 
        continues for a period in excess of one year, the 
        holder of the guarantee may submit to the Secretary a 
        request to assign the obligation and security interest 
        to the Secretary in return for payment of the claim 
        under the guarantee. The Secretary may accept 
        assignment of the loan if the Secretary determines that 
        the assignment is in the best interest of the United 
        States.
         Upon assignment, the Secretary shall pay to 
        the holder of the guarantee the pro rata portion of the 
        amount guaranteed, as determined under section 184A(f).
         The rights of the Secretary shall be 
        subrogated to the rights of the holder of the 
        guarantee. The holder shall assign the obligation and 
        security to the Secretary.
    Section 184A(i) further provides that before any payment 
under a guarantee is made, he holder of the guarantee shall 
exhaust all reasonable possibilities of collection. Upon 
payment, in whole or in part, to the holder, the note or 
judgment evidencing the debt shall be assigned to the United 
States and the holder shall have no further claim against the 
borrower or the United States.
    Section 184A(i) also authorizes the Secretary to take such 
action to collect payment from the borrower as the Secretary 
determines to be appropriate. If a borrower defaults on a loan 
guaranteed under section 184A that involves a security interest 
in restricted Hawaiian Home Land property, the mortgagee or the 
Secretary shall only pursue liquidation after offering to 
transfer the account to another eligible Hawaiian family or to 
the Department of Hawaiian Home Lands. Thereafter, if the 
mortgagee or the Secretary subsequently proceeds to liquidate 
the account, the mortgagee or the Secretary shall not sell, 
transfer, or otherwise dispose of or alienate the property 
except to another eligible Hawaiian family or to the Department 
of Hawaiian Home Lands.

Section 184A(j)(1)

    Section 184A(j)(1) provides authorization for the 
establishment in the United States Treasury a fund to be known 
as the Hawaiian Housing Loan Guarantee Fund for the purpose of 
providing loan guarantees under section 184A.

Section 184A(j)(2)

    Section 184A(j)(2) provides that the Guarantee Fund is to 
be credited with: any amount, claims, notes, mortgages, 
contracts, and property acquired by the Secretary under section 
184A and any collections and proceeds therefrom; any amounts 
appropriated pursuant to section 184A(j)(7); any guarantee fees 
collected under section 184A(d) and any interest or earnings on 
amounts invested under section 184A(j)(4).

Section 184A(j)(3)

    Section 184A(j)(3) provides that the amounts in the 
Guarantee Fund shall be available, to the extent provided in 
appropriations Acts, for--
           Fulfilling any obligations of the Secretary 
        with respect to loans guaranteed under section 184A, 
        including the costs, as that term is defined in section 
        502 of the Federal Credit Reform Act of 1990, of such 
        loans;
           Paying taxes, insurance, prior liens, 
        expenses necessary to make fiscal adjustment in 
        connection with the application and transmittal of 
        collections, and other expenses and advances to protect 
        the Secretary for loans which are guaranteed under 
        section 184A or held by the Secretary;
           Acquiring such security property at 
        foreclosure sales or otherwise;
           Paying administrative expenses in connection 
        with section 184A; and
           Reasonable and necessary costs of 
        rehabilitation and repair to properties that the 
        Secretary holds or owns pursuant to section 184A.

Section 184A(j)(4)

    Section 184A(j)(4) provides that any amounts in the 
Guarantee Fund determined by the Secretary to be in excess of 
amounts currently required at the time of the determination to 
carry out section 184A may be invested in obligations of the 
United States.

Section 184A(j)(5)

    Section 184A(j)(5) provides that the authority of the 
Secretary to enter into commitments to guarantee loans under 
section 184A shall be effective for any fiscal year to the 
extent, or in such amounts as, are or have been provided in 
appropriations Acts, without regard to the fiscal year for 
which such amounts were appropriated. Section 184A(j)(5) 
further provides that the authority of the Secretary to enter 
into commitments to guarantee loans under section 184A shall be 
effective for any fiscal year only to the extent that amounts 
in the Guarantee Fund are or have been made available in 
appropriations Acts to cover the costs, as that term is defined 
in section 502 of the Federal Credit Reform Act of 1990, of 
such loan guarantees for such fiscal year. Any amounts 
appropriated pursuant to section 184A(j)(5) shall remain 
available until expended. Subject to these limitations, the 
Secretary may enter into commitments to guarantee loans under 
section 184A for each of fiscal years 2000, 2001, 2002, 2003 
and 2004 with an aggregate outstanding principal amount not 
exceeding $100,000,000 for each fiscal year.

Section 184A(j)(6)

    Section 184A(j)(6) provides that all liabilities and 
obligations of the assets credited to the Guarantee Fund under 
section 184A(j)(2) shall be liabilities and obligations of the 
Guarantee Fund.

Section 184A(j)(7)

    Section 184A(j)(7) provides authorization for 
appropriations to the Guarantee Fund to carry out section 184A 
such sums as may be necessary for each of fiscal years 2000, 
2001, 2002, 2003 and 2004.

Section 184A(k)(1)

    Section 184A(k)(1) provides that the Secretary shall, by 
regulation, establish housing safety and quality standards to 
be applied for use under section 184A.

Section 184A(k)(2)

    Section 184A(k)(2) provides that the standards are to 
provide sufficient flexibility to permit the use of various 
designs and materials in housing acquired with loans guaranteed 
under section 184A and require each dwelling unit in any 
housing to be decent, safe, sanitary, and modest in size and 
design; conform with applicable general construction standards 
for the region in which the housing is located; contain a 
plumbing system that uses a properly installed system of 
piping, includes a kitchen sink and a partitional bathroom with 
lavatory, toilet, and bath or shower, and uses water supply, 
plumbing, and sewage disposal systems that conform to any 
minimum standards established by the applicable county or 
state; contain an electrical system using wiring and equipment 
properly installed to safely supply electrical energy for 
adequate lighting and for operation of appliances that conforms 
to any appropriate county, state or national code; be not less 
than the size provided under the applicable locally-adopted 
standards for size of dwelling units, except that the 
Secretary, upon request of the Department of Hawaiian Home 
Lands, may waive the size requirements under section 
184A(k)(2); and conform with the energy performance 
requirements for new construction established by the Secretary 
under section 526(a) of the National Housing Act, unless the 
Secretary determines that the requirements are not applicable.

Section 184A(l)

    Section 184A(l) provides that to the extent that the 
requirements of title VI of the Civil Rights Act of 1964 or of 
title VIII of the Civil Rights Act of 1968 apply to a guarantee 
provided under section 184A(l), nothing in the requirements 
concerning discrimination on the basis of race shall be 
construed to prevent the provision of the guarantee to an 
eligible entity on the basis that the entity serves Native 
Hawaiian families or is a Native Hawaiian family.

                   Cost and Budgetary Considerations

    The cost estimate for S. 225, as amended, as provided by 
the Congressional Budget Office, is set forth below:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 5, 1999.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs, U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 225, the Native 
American House Assistance and Self-Determination Amendments of 
1999, as revised and ordered reported on August 4, 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts for federal 
costs are Carla Pedone, and Susanne Mehlman. The contact for 
the state and local impact is Susan Sieg.
            Sincerely,
                                         Barry B. Anderson.
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 225.--Native American Housing Assistance and Self-Determination 
        Amendments of 1999

    Summary: S. 225 would expand housing assistance for Native 
Hawaiians by extending to them the same types of federal 
housing programs available to American Indians and Alaska 
Natives (AIANs). The bill would authorize appropriations for 
block grants for affordable housing activities and for loan 
guarantees for mortgages for owner- or renter-occupied housing.
    CBO estimates that the authorizations in S. 225 would total 
$222 million over fiscal years 2000 through 2004, assuming 
adjustments for inflation, or $210 million without such 
adjustments. We estimate that enactment of the bill would not 
affect direct spending and would have a negligible effect on 
receipts. Nevertheless, pay-as-you go procedures would apply.
    S. 225 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Any costs incurred by the state of Hawaii would be voluntary.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 225 is shown in Table 1. Assuming 
adjustments for inflation after 1999, CBO estimates that the 
bill would authorize appropriations of $43 million in fiscal 
year 2000; authorizations would increase to $46 million in 
2004. Without adjustments for inflation, the estimated funding 
needs would be about $42 million per year. Estimated outlays 
from those appropriations would total $3 million in 2000, 
increasing to $68 million in 2004 with adjustments for 
inflation and to $64 million without adjustments for inflation.

                               TABLE 1.--ESTIMATED COST TO THE FEDERAL GOVERNMENT
----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars
                                                                 -----------------------------------------------
                                                                   1999    2000    2001    2002    2003    2004
----------------------------------------------------------------------------------------------------------------
                SPENDING SUBJECT TO APPROPRIATION

With Adjustments for Inflation:
Spending Under Current Law:
    Estimated Authorization Level\1\............................     626     703     716       0       0       0
    Estimated Outlays...........................................     792     698     790     411     272     181
Proposed Changes:
    Estimated Authorization Level...............................       0      43      44      44      45      46
    Estimated Outlays...........................................       0       3      16      26      68      68
Spending Under S. 225:
    Estimated Authorization Level\1\............................     626     746     760      44      45      46
    Estimated Outlays...........................................     792     701     807     437     340     249
Without Adjustments for inflation:
Spending Under Current Law:
    Estimated Authorization Level\1\............................     626     691     691       0       0       0
    Estimated Outlays...........................................     792     693     775     406     269     178
Proposed Changes:
    Esitmated Authorization Level...............................       0      42      42      42      42      42
    Estimated Outlays...........................................       0       3      16      26      64      64
Spending Under S. 109:
    Estimated Authorization Level\1\............................     626     733     733      42      42      42
    Estimated Outlays...........................................     792     696     791     431     333     242
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year for all programs authorized under NAHASDA, including
  Title I Indian Housing Block Grants, Title VI Indian Loan Guarantees, and Title VII Indian Loan Guarantees.
  The levels in subsequent years are estimated authorization amounts for those programs. Those amounts reflect
  estimated credit subsidies to support the maximum loan guarantee levels authorized by NAHASDA for 2000 and
  2001, which are substantially higher than the amounts appropriated for 1999.

    The costs of this legislation fall within budget function 
370 (commerce and housing credit) and 600 (income security).
    Basis of Estimate: The bill stipulates that the provisions 
would take effect on October 1, 1999. CBO assumes that the 
authorized amounts would be fully funded each fiscal year.

             block grants for affordable housing activities

    Section 3 of S. 225 would add title VIII--Housing 
Assistance for Native Hawaiians--to the Native American Housing 
Assistance and Self Determination Act of 1996 (NAHASDA). That 
title would make Native Hawaiians eligible for the types of 
block grants that are available under current law to American 
Indians and Alaska Natives and would authorize technical 
assistance in cases where administrative capacity is lacking. 
The block grants would be provided by the Department of Housing 
and Urban Development (HUD) to the Department of Hawaiian Home 
Lands, an agency of the government of the state of Hawaii. That 
agency would in turn distribute the grants by formula to the 
various areas of Hawaiian Home Lands eligible to receive funds. 
Activities eligible for funding would include the acquisition, 
development, and rehabilitation of affordable rental or owner-
occupied housing, and the provision of housing services such as 
home ownership counseling, self-sufficiency counseling, housing 
management services, and crime prevention activities. The 
housing assistance would generally be limited to certain Native 
Hawaiian families who live on or near Hawaiian Home Lands and 
who have incomes not exceeding 80 percent of the area's median 
income, adjusted for family size. Although the bill defines 
Native Hawaiians in general as individuals who are citizens of 
the United States and descendants of the aboriginal people who 
occupied the islands prior to 1778, the block grants would be 
restricted to people with at least 50 percent Hawaiian 
ancestry--an estimated 69,000 persons at present.
    S. 225 would authorize, for each of the fiscal years 2000 
through 2004, the appropriations necessary to carry out the 
block grant program for Native Hawaiians, including funds for 
technical assistance. CBO estimates that the necessary funding, 
without adjustment for inflation, would be $34 million a year. 
With adjustment for inflation, funding of $35 million would be 
necessary for fiscal year 2000, increasing gradually to $38 
million in 2004 (see Table 2).
    The estimate amounts are based on the assumption that 
appropriations for the Native Hawaiian block grants would be 
proportional to the amount that was appropriated for fiscal 
year 1999 under NAHASDA. The proportion was estimated so as to 
reflect the need for assistance to Native Hawaiians relative to 
the need for all tribes, with need defined by current 
regulations. Under current policy, a share of annual 
appropriations for block grants is first allocated to operate 
and maintain existing federally assisted Indian housing. Native 
Hawaiians would not qualify for this funding component because 
there is no federally assisted housing on the Hawaiian Home 
Lands. The remaining funds are distributed among Indian tribes 
according to a need-based formula, which incorporates seven 
factors, including the number of persons in the tribe, the 
number of households with various types of housing problems, 
and the number of households in various income categories. The 
percentage of funds each tribe receives is adjusted further for 
the relationship between local housing development costs and 
the national average.

           TABLE 2.--ESTIMATED AUTHORIZATIONS BY PROGRAM TYPE
------------------------------------------------------------------------
                                  By fiscal year, in millions of dollars
                                 ---------------------------------------
                                   2000    2001    2002    2003    2004
------------------------------------------------------------------------
       SPENDING SUBJECT TO
          APPROPRIATION

With Adjustments for Inflation:
Block Grants: \1\
    Estimated Authorization           35      36      36      37      38
     Level......................
    Estimated Outlays...........       1       7      15      60      60
Loan Guarantees:
    Estimated Authorization            8       8       8       8       8
     Level......................
    Estimated Outlays...........       2       9      11       8       8
Total:
    Estimated Authorization           43      44      44      45      46
     Level......................
    Estimated Outlays...........       3      16      26      68      68
Without Adjustments for
 Inflation:
Block Grants: \1\
    Estimated Authorization           34      34      34      34      34
     Level......................
    Estimated Outlays...........       1       7      15      56      56
Loan Guarantees:
    Estimated Authorization            8       8       8       8       8
     Level......................
    Estimated Outlays...........       2       9      11       8       8
Total:
    Estimated Authorization           42      42      42      42      42
     Level......................
    Estimated Outlays...........       3      16      26      64      64
------------------------------------------------------------------------
\1\ Includes funds for technical assistance.

    Based on data provided by HUD, the Department of Hawaiian 
Home Lands, and a recent study by the Urban Institute on 
housing problems of Native Hawaiians, CBO estimates that in 
1999 Native Hawaiians would have received 8.6 percent of the 
need-based component if they had been eligible for NAHASDA 
funding. in 1999, that component was about $358 million of the 
$608 million appropriated for block grants under NAHASDA. In 
order not to diminish funding for AIANs and to provide Native 
Hawaiians 8.6 percent of the funds, it would have been 
necessary to increase the 1999 need-based component by $33.6 
million.
    In addition to authorizing funds for need-based block 
grants for Native Hawaiians, the bill would also make them 
eligible for technical assistance in cases where administrative 
capacity is lacking. In 1999, $6 million of the total 
appropriation of $620 million was set aside for that purpose. 
Using assumptions similar to those made for estimating the 
authorization level for block grants, CBO estimates that $0.6 
million would have been necessary for technical assistance for 
Native Hawaiians in fiscal year 1999. (Another $6 million was 
set aside in the 1999 appropriation of retitle VI loan 
guarantees, but S. 225 would not authorize that component of 
NAHASDA for Native Hawaiians.)
    In estimating the stream of outlays from the estimated 
budget authority each year, CBO assumed that the regulations to 
carry out this program would be similar to those that have been 
implemented to carry out current law. Under a negotiated rule, 
AIANS that have shown that they have the technical capacity to 
carry out NAHASDA's provisions are allowed to draw down 100 
percent of the grants from the need-based component when the 
funds are first obligated. Based on experience with those 
advance drawdowns to date, CBO further assumed that such 
drawdowns by the Department of Hawaiian Homelands would not 
start until fiscal year 2003. Disbursement rates prior to that 
time were assumed to be similar to those for traditional 
assisted construction programs. As a result, estimated outlays 
in fiscal years 2003 an 2004 are relatively high because they 
include the spending of all of the budget authority authorized 
for those years as well as outlays from authorizations in prior 
years.

                            loan guarantees

    Section 4 of S. 225 would establish a loan guarantee 
program for Native Hawaiian housing similar to the current 
Indian Housing Loan Guarantee program authorized under section 
184 of the Housing and Community Development Act of 1992 as 
amended by title VII of NAHASDA. HUD would be authorized to 
guarantee up to $100 million of loans each fiscal year over the 
2000-2004 period. CBO assumes that the 2000 subsidy rate for 
such loan guarantees would be similar to that under the 
existing program--about 8.1 percent. CBO estimates that such a 
program would require an appropriation of about $8 million in 
fiscal year 2000 and total appropriations of about $40 million 
over the next five years (see Table 2).
    Section 4 also would provide for civil penalties against 
lenders or holders of a guarantee certificate who have 
intentionally failed to meet certain requirements. Payments of 
such penalties would be recorded as miscellaneous receipts to 
the Treasury. CBO expects that any increase in penalty 
collections would be insignificant.
    Pay-as-you-go Considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. Because 
the civil penalties that would be imposed by section 4 of the 
bill would constitute receipts, pay-as-you-go procedures would 
apply. However, CBO estimates that the amount of receipts 
collected would be insignificant.
    Intergovernmental and Private-Sector Impact: S. 225 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would provide funds to the state of 
Hawaii for housing assistance grants; any costs to the state 
would be incurred as a condition of receiving those grants.
    Previous CBO Estimates: On July 22, 1999, CBO transmitted a 
cost estimate of S. 225 as ordered reported on June 30, 1999. 
The two cost estimates are identical. The revisions to S. 225 
included in the version that was ordered reported on August 4, 
1999, changed the general definition of the term ``Native 
Hawaiian'' and some of the findings in the bill. However, the 
intended target group of the housing assistance grants remained 
unchanged. Therefore, the estimated cost of the program is not 
affected.
    Esimate Prepared by: Federal Costs: Carla Pedone and 
Susanne Mehlman. Impact on State, Local, and Tribal 
Governments: Susan Sieg.
    Estimate Approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        Executive Communications

    The Committee has not received an Administration position 
on S. 225.

                    Regulatory and Paperwork Impact

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact that would be incurred in 
carrying out the bill. The Committee finds that S. 225, as 
amended, will require the promulgation of regulations, but 
because the Secretary of the Department of Housing and Urban 
Development has already promulgated regulations through a 
negotiated rulemaking process for the Native American Housing 
Assistance and Self-Determination Act, the regulatory and 
paperwork impact should be minimized.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by a 
bill are required to be set forth in the accompanying Committee 
report. Changes in existing law are outlined below, with 
material to be deleted in brackets, and material to be added in 
italic signified by quotation marks.
  The Native American Housing Assistance and Self-Determination 
Act of 1996 (25 U.S.C. 4101 et seq.) is amended by adding at 
the end the following:

         ``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

``SEC. 801. DEFINITIONS.

  ``In this title:
          ``(1) Department of hawaiian home lands; 
        department.--The term `Department of Hawaiian Home 
        Lands' or `Department' means the agency or department 
        of the government of the State of Hawaii that is 
        responsible for the administration of the Hawaiian 
        Homes Commission Act, 1920 (42 Stat. 108 et seq.).
          ``(2) Director.--The term `Director' means the 
        Director of the Department of Hawaiian Home Lands.
          ``(3) Elderly families; near-elderly families.--
                  ``(A) In general.--The term `elderly family' 
                or `near-elderly family' means a family whose 
                head (or his or her spouse), or whose sole 
                member, is--
                          ``(i) for an elderly family, an 
                        elderly person; or
                          ``(ii) for a near-elderly family, a 
                        near-elderly person.
                  ``(B) Certain families included.--The term 
                `elderly family' or `near-elderly family' 
                includes--
                          ``(i) 2 or more elderly persons or 
                        near-elderly persons, as the case may 
                        be, living together; and
                          ``(ii) 1 or more persons described in 
                        clause (i) living with 1 or more 
                        persons determined under the housing 
                        plan to be essential to their care or 
                        well-being.
          ``(4) Hawaiian home lands.--The term `Hawaiian Home 
        Lands' means lands that--
                  ``(A) have the status as Hawaiian home lands 
                under section 204 of the Hawaiian Homes 
                Commission Act (42 Stat. 110); or
                  ``(B) are acquired pursuant to that Act.
          ``(5) Housing area.--The term `housing area' means an 
        area of Hawaiian Home Lands with respect to which the 
        Department of Hawaiian Home Lands is authorized to 
        provide assistance for affordable housing under this 
        Act.
          ``(6) Housing entity.--The term `housing entity' 
        means the Department of Hawaiian Home Lands.
          ``(7) Housing plan.--The term `housing plan' means a 
        plan developed by the Department of Hawaiian Home 
        Lands.
          ``(8) Median income.--The term `median income' means, 
        with respect to an area that is a Hawaiian housing 
        area, the greater of--
                  ``(A) the median income for the Hawaiian 
                housing area, which shall be determined by the 
                Secretary; or
                  ``(B) the median income for the State of 
                Hawaii.
          ``(9) Native hawaiian.--The term `Native Hawaiian' 
        means any individual who is--
                  ``(A) a citizen of the United States; and
                  ``(B) a descendant of the aboriginal people, 
                who, prior to 1778, occupied and exercised 
                sovereignty in the area that currently 
                constitutes the State of Hawaii, as evidenced 
                by--
                          ``(i) genealogical records;
                          ``(ii) verification by kupuna 
                        (elders) or kama'aina (long-term 
                        community residents); or
                          ``(iii) birth records of the State of 
                        Hawaii.

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

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

``SEC. 803. HOUSING PLAN.

  ``(a) Plan Submission.--The Secretary shall--
          ``(1) require the Director to submit a housing plan 
        under this section for each fiscal year; and
          ``(2) provide for the review of each plan submitted 
        under paragraph (1).
  ``(b) 5-Year Plan.--Each housing plan under this section 
shall--
          ``(1) be in a form prescribed by the Secretary; and
          ``(2) contain, with respect to the 5-year period 
        beginning with the fiscal year for which the plan is 
        submitted, the following information:
                  ``(A) Mission statement.--A general statement 
                of the mission of the Department of Hawaiian 
                Home Lands to serve the needs of the low-income 
                families to be served by the Department.
                  ``(B) Goal and objectives.--A statement of 
                the goals and objectives of the Department of 
                Hawaiian Home Lands to enable the Department to 
                serve the needs identified in subparagraph (A) 
                during the period.
                  ``(C) Activities plans.--An overview of the 
                activities planned during the period including 
                an analysis of the manner in which the 
                activities will enable the Department to meet 
                its mission, goals, and objectives.
  ``(c) 1-Year Plan.--A housing plan under this section shall--
          ``(1) be in a form prescribed by the Secretary; and
          ``(2) contain the following information relating to 
        the fiscal year for which the assistance under this 
        title is to be made available:
                  ``(A) Goals and objectives.--A statement of 
                the goals and objectives to be accomplished 
                during the period covered by the plan.
                  ``(B) Statement of needs.--A statement of the 
                housing needs of the low-income families served 
                by the Department and the means by which those 
                needs will be addressed during the period 
                covered by the plan, including--
                          ``(i) a description of the estimated 
                        housing needs and the need for 
                        assistance for the low-income families 
                        to be served by the Department, 
                        including a description of the manner 
                        in which the geographical distribution 
                        of assistance is consistent with--
                                  ``(I) the geographical needs 
                                of those families; and
                                  ``(II) needs for various 
                                categories of housing 
                                assistance; and
                          ``(ii) a description of the estimated 
                        housing needs for all families to be 
                        served by the Department.
                  ``(C) Financial resources.--An operating 
                budget for the Department of Hawaiian Home 
                Lands, in a form prescribed by the Secretary, 
                that includes--
                          ``(i) an identification and a 
                        description of the financial resources 
                        reasonably available to the Department 
                        to carry out the purposes of this 
                        title, including an explanation of the 
                        manner in which amounts made available 
                        will be used to leverage additional 
                        resources; and
                          ``(ii) the uses to which the 
                        resources described in clause (i) will 
                        be committed, including--
                                  ``(I) eligible and required 
                                affordable housing activities; 
                                and
                                  ``(II) administrative 
                                expenses.
                  ``(D) Affordable housing resources.--A 
                statement of the affordable housing resources 
                currently available at the time of the 
                submittal of the plan and to be made available 
                during the period covered by the plan, 
                including--
                          ``(i) a description of the 
                        significant characteristics of the 
                        housing market in the State of Hawaii, 
                        including the availability of housing 
                        from other public sources, private 
                        market housing;
                          ``(ii) the manner in which the 
                        characteristics referred to in clause 
                        (i) influence the decision of the 
                        Department of Hawaiian Home Lands to 
                        use grant amounts to be provided under 
                        this title for--
                                  ``(I) rental assistance;
                                  ``(II) the production of new 
                                units;
                                  ``(III) the acquisition of 
                                existing units; or
                                  ``(IV) the rehabilitation of 
                                units;
                          ``(iii) a description of the 
                        structure, coordination, and means of 
                        cooperation between the Department of 
                        Hawaiian Home Lands and any other 
                        governmental entities in the 
                        development, submission, or 
                        implementation of housing plans, 
                        including a description of--
                                  ``(I) the involvement of 
                                private, public, and nonprofit 
                                organizations and institutions;
                                  ``(II) the use of loan 
                                guarantees under section 184A 
                                of the Housing and Community 
                                Development Act of 1992; and
                                  ``(III) other housing 
                                assistance provided by the 
                                United States, including loans, 
                                grants, and mortgage insurance;
                          ``(iv) a description of the manner in 
                        which the plan will address the needs 
                        identified pursuant to subparagraph 
                        (C);
                          ``(v) a description of--
                                  ``(I) any existing or 
                                anticipated homeownership 
                                programs and rental programs to 
                                be carried out during the 
                                period covered by the plan; and
                                  ``(II) the requirements and 
                                assistance available under the 
                                programs referred to in 
                                subclause (I);
                          ``(vi) a description of--
                                  ``(I) any existing or 
                                anticipated housing 
                                rehabilitation programs 
                                necessary to ensure the long-
                                term viability of the housing 
                                to be carried out during the 
                                period covered by the plan; and
                                  ``(II) the requirements and 
                                assistance available under the 
                                programs referred to in 
                                subclause (I);
                          ``(vii) a description of--
                                  ``(I) all other existing or 
                                anticipated housing assistance 
                                provided by the Department of 
                                Hawaiian Home Lands during the 
                                period covered by the plan, 
                                including--
                                          ``(aa) transitional 
                                        housing;
                                          ``(bb) homeless 
                                        housing;
                                          ``(cc) college 
                                        housing; and
                                          ``(dd) supportive 
                                        services housing; and
                                  ``(II) the requirements and 
                                assistance available under such 
                                programs;
                          ``(viii)(I) a description of any 
                        housing to be demolished or disposed 
                        of;
                          ``(II) a timetable for that 
                        demolition or disposition; and
                          ``(III) any other information 
                        required by the Secretary with respect 
                        to that demolition or disposition;
                          ``(ix) a description of the manner in 
                        which the Department of Hawaiian Home 
                        Lands will coordinate with welfare 
                        agencies in the State of Hawaii to 
                        ensure that residents of the affordable 
                        housing will be provided with access to 
                        resources to assist in obtaining 
                        employment and achieving self-
                        sufficiency;
                          ``(x) a description of the 
                        requirements established by the 
                        Department of Hawaiian Home Lands to--
                                  ``(I) promote the safety of 
                                residents of the affordable 
                                housing;
                                  ``(II) facilitate the 
                                undertaking of crime prevention 
                                measures;
                                  ``(III) allow resident input 
                                and involvement, including the 
                                establishment of resident 
                                organizations; and
                                  ``(IV) allow for the 
                                coordination of crime 
                                prevention activities between 
                                the Department and local law 
                                enforcement officials; and
                          ``(xi) a description of the entities 
                        that will carry out the activities 
                        under the plan, including the 
                        organizational capacity and key 
                        personnel of the entities.
                  ``(E) Certification of compliance.--Evidence 
                of compliance that shall include, as 
                appropriate--
                          ``(i) a certification that the 
                        Department of Hawaiian Home Lands will 
                        comply with--
                                  ``(I) title VI of the Civil 
                                Rights Act of 1964 (42 U.S.C. 
                                2000d et seq.) or with title 
                                VIII of the Act popularly known 
                                as the `Civil Rights Act of 
                                1968' (42 U.S.C. 3601 et seq.) 
                                in carrying out this title, to 
                                the extent that such title is 
                                applicable; and
                                  ``(II) other applicable 
                                Federal statutes;
                          ``(ii) a certification that the 
                        Department will require adequate 
                        insurance coverage for housing units 
                        that are owned and operated or assisted 
                        with grant amounts provided under this 
                        title, in compliance with such 
                        requirements as may be established by 
                        the Secretary;
                          ``(iii) a certification that policies 
                        are in effect and are available for 
                        review by the Secretary and the public 
                        governing the eligibility, admission, 
                        and occupancy of families for housing 
                        assisted with grant amounts provided 
                        under this title;
                          ``(iv) a certification that policies 
                        are in effect and are available for 
                        review by the Secretary and the public 
                        governing rents charged, including the 
                        methods by which such rents or 
                        homebuyer payments are determined, for 
                        housing assisted with grant amounts 
                        provided under this title; and
                          ``(v) a certification that policies 
                        are in effect and are available for 
                        review by the Secretary and the public 
                        governing the management and 
                        maintenance of housing assisted with 
                        grant amounts provided under this 
                        title.
  ``(d) Applicability of Civil Rights Statutes.--
          ``(1) In general.--To the extent that the 
        requirements of title VI of the Civil Rights Act of 
        1964 (42 U.S.C. 2000d et seq.) or of title VIII of the 
        Act popularly known as the `Civil Rights Act of 1968' 
        (42 U.S.C. 3601 et seq.) apply to assistance provided 
        under this title, nothing in the requirements 
        concerning discrimination on the basis of race shall be 
        construed to prevent the provision of assistance under 
        this title--
                  ``(A) to the Department of Hawaiian Home 
                Lands on the basis that the Department served 
                Native Hawaiians; or
                  ``(B) to an eligible family on the basis that 
                the family is a Native Hawaiian family.
          ``(2) Civil rights.--Program eligibility under this 
        title may be restricted to Native Hawaiians. Subject to 
        the preceding sentence, no person may be discriminated 
        against on the basis of race, color, national origin, 
        religion, sex, familial status, or disability.
  ``(e) Use of Nonprofit Organizations.--As a condition of 
receiving grant amounts under this title, the Department of 
Hawaiian Home Lands shall, to the extent practicable, provide 
for private nonprofit organizations experienced in the planning 
and development of affordable housing for Native Hawaiians to 
carry out affordable housing activities with those grant 
amounts.

``SEC. 804. REVIEW OF PLANS.

  ``(a) Review and Notice.--
          ``(1) Review.--
                  ``(A) In general.--The Secretary shall 
                conduct a review of a housing plan submitted to 
                the Secretary under section 803 to ensure that 
                the plan complies with the requirements of that 
                section.
                  ``(B) Limitation.--The Secretary shall have 
                the discretion to review a plan referred to in 
                subparagraph (A) only to the extent that the 
                Secretary considers that the review is 
                necessary.
          ``(2) Notice.--
                  ``(A) In general.--Not later than 60 days 
                after receiving a plan under section 803, the 
                Secretary shall notify the Director of the 
                Department of Hawaiian Home Lands whether the 
                plan complies with the requirements under that 
                section.
                  ``(B) Effect of failure of secretary to take 
                action.--For purposes of this title, if the 
                Secretary does not notify the Director, as 
                required under this subsection and subsection 
                (b), upon the expiration of the 60-day period 
                described in subparagraph (A)--
                          ``(i) the plan shall be considered to 
                        have been determined to comply with the 
                        requirements under section 803; and
                          ``(ii) the Director shall be 
                        considered to have been notified of 
                        compliance.
  ``(b) Notice of Reasons for Determination of Noncompliance.--
If the Secretary determines that a plan submitted under section 
803 does not comply with the requirements of that section, the 
Secretary shall specify in the notice under subsection (a)--
          ``(1) the reasons for noncompliance; and
          ``(2) any modifications necessary for the plan to 
        meet the requirements of section 803.
  ``(c) Review.--
          ``(1) In general.--After the Director of the 
        Department of Hawaiian Home Lands submits a housing 
        plan under section 803, or any amendment or 
        modification to the plan to the Secretary, to the 
        extent that the Secretary considers such action to be 
        necessary to make a determination under this 
        subsection, the Secretary shall review the plan 
        (including any amendments or modifications thereto) to 
        determine whether the contents of the plan--
                  ``(A) set forth the information required by 
                section 803 to be contained in the housing 
                plan;
                  ``(B) are consistent with information and 
                data available to the Secretary; and
                  ``(C) are not prohibited by or inconsistent 
                with any provision of this Act or any other 
                applicable law.
          ``(2) Incomplete plans.--If the Secretary determines 
        under this subsection that any of the appropriate 
        certifications required under section 803(c)(2)(E) are 
        not included in a plan, the plan shall be considered to 
        be incomplete.
  ``(d) Updates to Plan.--
          ``(1) In general.--Subject to paragraph (2), after a 
        plan under section 803 has been submitted for a fiscal 
        year, the Director of the Department of Hawaiian Home 
        Lands may comply with the provisions of that section 
        for any succeeding fiscal year (with respect to 
        information included for the 5-year period under 
        section 803(b) or for the 1-year period under section 
        803(c)) by submitting only such information regarding 
        such changes as may be necessary to update the plan 
        previously submitted.
          ``(2) Complete plans.--The Director shall submit a 
        complete plan under section 803 not later than 4 years 
        after submitting an initial plan under that section, 
        and not less frequently than every 4 years thereafter.
  ``(e) Effective Date.--This section and section 803 shall 
take effect on the date provided by the Secretary pursuant to 
section 807(a) to provide for timely submission and review of 
the housing plan as necessary for the provision of assistance 
under this title for fiscal year 2000.

``SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

  ``(a) Program Income.--
          ``(1) Authority to retain.--The Department of 
        Hawaiian Home Lands may retain any program income that 
        is realized from any grant amounts received by the 
        Department under this title if--
                  ``(A) that income was realized after the 
                initial disbursement of the grant amounts 
                received by the Department; and
                  ``(B) the Director agrees to use the program 
                income for affordable housing activities in 
                accordance with the provisions of this title.
          ``(2) Prohibition of reduction of grant.--The 
        Secretary may not reduce the grant amount for the 
        Department of Hawaiian Home Lands based solely on--
                  ``(A) whether the Department retains program 
                income under paragraph (1); or
                  ``(B) the amount of any such program income 
                retained.
          ``(3) Exclusion of amounts.--The Secretary may, by 
        regulation, exclude from consideration as program 
        income any amounts determined to be so small that 
        compliance with the requirements of this subsection 
        would create an unreasonable administrative burden on 
        the Department.
  ``(b) Labor Standards.--
          ``(1) In general.--Any contract or agreement for 
        assistance, sale, or lease pursuant to this title shall 
        contain--
                  ``(A) a provision requiring that an amount 
                not less than the wages prevailing in the 
                locality, as determined or adopted (subsequent 
                to a determination under applicable State or 
                local law) by the Secretary, shall be paid to 
                all architects, technical engineers, draftsmen, 
                technicians employed in the development and all 
                maintenance, and laborers and mechanics 
                employed in the operation, of the affordable 
                housing project involved; and
                  ``(B) a provision that an amount not less 
                than the wages prevailing in the locality, as 
                predetermined by the Secretary of Labor 
                pursuant to the Act commonly known as the 
                `Davis-Bacon Act' (46 Stat. 1494, chapter 411; 
                40 U.S.C. 276a et seq.) shall be paid to all 
                laborers and mechanics employed in the 
                development of the affordable housing involved.
          ``(2) Exceptions.--Paragraph (1) and provisions 
        relating to wages required under paragraph (1) in any 
        contract or agreement for assistance, sale, or lease 
        under this title, shall not apply to any individual who 
        performs the services for which the individual 
        volunteered and who is not otherwise employed at any 
        time in the construction work and received no 
        compensation or is paid expenses, reasonable benefits, 
        or a nominal fee for those services.

``SEC. 806. ENVIRONMENTAL REVIEW.

  ``(a) In General.--
          ``(1) Release of funds.--
                  ``(A) In general.--The Secretary may carry 
                out the alternative environmental protection 
                procedures described in subparagraph (B) in 
                order to ensure--
                          ``(i) that the policies of the 
                        National Environmental Policy Act of 
                        1969 (42 U.S.C. 4321 et seq.) and other 
                        provisions of law that further the 
                        purposes of such Act (as specified in 
                        regulations issued by the Secretary) 
                        are most effectively implemented in 
                        connection with the expenditure of 
                        grant amounts provided under this 
                        title; and
                          ``(ii) to the public undiminished 
                        protection of the environment.
                  ``(B) Alternative environmental protection 
                procedure.--In lieu of applying environmental 
                protection procedures otherwise applicable, the 
                Secretary may by regulation provide for the 
                release of funds for specific projects to the 
                Department of Hawaiian Home Lands if the 
                Director of the Department assumes all of the 
                responsibilities for environmental review, 
                decisionmaking, and action under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), and such other provisions of law 
                as the regulations of the Secretary specify, 
                that would apply to the Secretary were the 
                Secretary to undertake those projects as 
                Federal projects.
          ``(2) Regulations.--
                  ``(A) In general.--The Secretary shall issue 
                regulations to carry out this section only 
                after consultation with the Council on 
                Environmental Quality.
                  ``(B) Contents.--The regulations issued under 
                this paragraph shall--
                          ``(i) provide for the monitoring of 
                        the environmental reviews performed 
                        under this section;
                          ``(ii) in the discretion of the 
                        Secretary, facilitate training for the 
                        performance of such reviews; and
                          ``(iii) provide for the suspension or 
                        termination of the assumption of 
                        responsibilities under this section.
          ``(3) Effect on assumed responsibility.--The duty of 
        the Secretary under paragraph (2)(B) shall not be 
        construed to limit or reduce any responsibility assumed 
        by the Department of Hawaiian Home Lands for grant 
        amounts with respect to any specific release of funds.
  ``(b) Procedure.--
          ``(1) In general.--The Secretary shall authorize the 
        release of funds subject to the procedures under this 
        section only if, not less than 15 days before that 
        approval and before any commitment of funds to such 
        projects, the Director of the Department of Hawaiian 
        Home Lands submits to the Secretary a request for such 
        release accompanied by a certification that meets the 
        requirements of subsection (c).
          ``(2) Effect of approval.--The approval of the 
        Secretary of a certification described in paragraph (1) 
        shall be deemed to satisfy the responsibilities of the 
        Secretary under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.) and such other 
        provisions of law as the regulations of the Secretary 
        specify to the extent that those responsibilities 
        relate to the releases of funds for projects that are 
        covered by that certification.
  ``(c) Certification.--A certification under the procedures 
under this section shall--
          ``(1) be in a form acceptable to the Secretary;
          ``(2) be executed by the Director of the Department 
        of Hawaiian Home Lands;
          ``(3) specify that the Department of Hawaiian Home 
        Lands has fully carried out its responsibilities as 
        described under subsection (a); and
          ``(4) specify that the Director--
                  ``(A) consents to assume the status of a 
                responsible Federal official under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) and each provision of law 
                specified in regulations issued by the 
                Secretary to the extent that those laws apply 
                by reason of subsection (a); and
                  ``(B) is authorized and consents on behalf of 
                the Department of Hawaiian Home Lands and the 
                Director to accept the jurisdiction of the 
                Federal courts for the purpose of enforcement 
                of the responsibilities of the Director of the 
                Department of Hawaiian Home Lands as such an 
                official.

``SEC. 807. REGULATIONS.

  ``The Secretary shall issue final regulations necessary to 
carry out this title not later than October 1, 1999.

``SEC. 808. EFFECTIVE DATE.

  ``Except as otherwise expressly provided in this title, this 
title shall take effect on October 1, 1999.

``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

  ``(a) National Objectives and Eligible Families.--
          ``(1) Primary objective.--The national objectives of 
        this title are--
                  ``(A) to assist and promote affordable 
                housing activities to develop, maintain, and 
                operate affordable housing in safe and healthy 
                environments for occupancy by low-income Native 
                Hawaiian families;
                  ``(B) to ensure better access to private 
                mortgage markets and to promote self-
                sufficiency of low-income Native Hawaiian 
                families;
                  ``(C) to coordinate activities to provide 
                housing for low-income Native Hawaiian families 
                with Federal, State and local activities to 
                further economic and community development;
                  ``(D) to plan for and integrate 
                infrastructure resources on the Hawaiian Home 
                Lands with housing development; and
                  ``(E) to--
                          ``(i) promote the development of 
                        private capital markets; and
                          ``(ii) allow the markets referred to 
                        in clause (i) to operate and grow, 
                        thereby benefiting Native Hawaiian 
                        communities.
          ``(2) Eligible families.--
                  ``(A) In general.--Except as provided under 
                subparagraph (B), assistance for eligible 
                housing activities under this title shall be 
                limited to low-income Native Hawaiian families.
                  ``(B) Exception to low-income requirement.--
                          ``(i) In general.--The Director may 
                        provide assistance for homeownership 
                        activities under--
                                  ``(I) section 810(b);
                                  ``(II) model activities under 
                                section 810(f); or
                                  ``(III) loan guarantee 
                                activities under section 184A 
                                of the Housing and Community 
                                Development Act of 1992 to 
                                Native Hawaiian families who 
                                are not low-income families, to 
                                the extent that the Secretary 
                                approves the activities under 
                                that section to address a need 
                                for housing for those families 
                                that cannot be reasonably met 
                                without that assistance.
                          ``(ii) Limitations.--The Secretary 
                        shall establish limitations on the 
                        amount of assistance that may be 
                        provided under this title for 
                        activities for families that are not 
                        low-income families.
                  ``(C) Other families.--Notwithstanding 
                paragraph (1), the Director may provide housing 
                or housing assistance provided through 
                affordable housing activities assisted with 
                grant amounts under this title to a family that 
                is not composed of Native Hawaiians if--
                          ``(i) the Department determines that 
                        the presence of the family in the 
                        housing involved is essential to the 
                        well-being of Native Hawaiian families; 
                        and
                          ``(ii) the need for housing for the 
                        family cannot be reasonably met without 
                        the assistance.
                  ``(D) Preference.--
                          ``(i) In general.--A housing plan 
                        submitted under section 803 may 
                        authorize a preference, for housing or 
                        housing assistance provided through 
                        affordable housing activities assisted 
                        with grant amounts provided under this 
                        title to be provided, to the extent 
                        practicable, to families that are 
                        eligible to reside on the Hawaiian Home 
                        Lands.
                          ``(ii) Application.--In any case in 
                        which a housing plan provides for 
                        preference described in clause (i), the 
                        Director shall ensure that housing 
                        activities that are assisted with grant 
                        amounts under this title are subject to 
                        that preference.
                  ``(E) Use of nonprofit organizations.--As a 
                condition of receiving grant amounts under this 
                title, the Department of Hawaiian Home Lands, 
                shall to the extent practicable, provide for 
                private nonprofit organizations experienced in 
                the planning and development of affordable 
                housing for Native Hawaiians to carry out 
                affordable housing activities with those grant 
                amounts.

``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

  ``(a) In General.--Affordable housing activities under this 
section are activities conducted in accordance with the 
requirements of section 811 to--
          ``(1) develop or to support affordable housing for 
        rental or homeownership; or
          ``(2) provide housing services with respect to 
        affordable housing, through the activities described in 
        subsection (b).
  ``(b) Activities.--The activities described in this 
subsection are the following:
          ``(1) Development.--The acquisition, new 
        construction, reconstruction, or moderate or 
        substantial rehabilitation of affordable housing, which 
        may include--
                  ``(A) real property acquisition;
                  ``(B) site improvement;
                  ``(C) the development of utilities and 
                utility services;
                  ``(D) conversion;
                  ``(E) demolition;
                  ``(F) financing;
                  ``(G) administration and planning; and
                  ``(H) other related activities.
          ``(2) Housing services.--The provision of housing-
        related services for affordable housing, including--
                  ``(A) housing counseling in connection with 
                rental or homeownership assistance;
                  ``(B) the establishment and support of 
                resident organizations and resident management 
                corporations;
                  ``(C) energy auditing;
                  ``(D) activities related to the provisions of 
                self-sufficiency and other services; and
                  ``(E) other services related to assisting 
                owners, tenants, contractors, and other 
                entities participating or seeking to 
                participate in other housing activities 
                assisted pursuant to this section.
          ``(3) Housing management services.--The provision of 
        management services for affordable housing, including--
                  ``(A) the preparation of work specifications;
                  ``(B) loan processing;
                  ``(C) inspections;
                  ``(D) tenant selection;
                  ``(E) management of tenant-based rental 
                assistance; and
                  ``(F) management of affordable housing 
                projects.
          ``(4) Crime prevention and safety activities.--The 
        provision of safety, security, and law enforcement 
        measures and activities appropriate to protect 
        residents of affordable housing from crime.
          ``(5) Model activities.--Housing activities under 
        model programs that are--
                  ``(A) designed to carry out the purposes of 
                this title; and
                  ``(B) specifically approved by the Secretary 
                as appropriate for the purpose referred to in 
                subparagraph (A).

``SEC. 811. PROGRAM REQUIREMENTS.

  ``(a) Rents.--
          ``(1) Establishment.--Subject to paragraph (2), as a 
        condition to receiving grant amounts under this title, 
        the Director shall develop written policies governing 
        rents and homebuyer payments charged for dwelling units 
        assisted under this title, including methods by which 
        such rents and homebuyer payments are determined.
          ``(2) Maximum rent.--In the case of any low-income 
        family residing in a dwelling unit assisted with grant 
        amounts under this title, the monthly rent or homebuyer 
        payment (as applicable) for that dwelling unit may not 
        exceed 30 percent of the monthly adjusted income of 
        that family.
  ``(b) Maintenance and Efficient Operation.--
          ``(1) In general.--The Director shall, using amounts 
        of any grants received under this title, reserve and 
        use for operating under section 810 such amounts as may 
        be necessary to provide for the continued maintenance 
        and efficient operation of such housing.
          ``(2) Disposal of certain housing.--This subsection 
        may not be construed to prevent the Director, or any 
        entity funded by the Department, from demolishing or 
        disposing of housing, pursuant to regulations 
        established by the Secretary.
  ``(c) Insurance Coverage.--As a condition to receiving grant 
amounts under this title, the Director shall require adequate 
insurance coverage for housing units that are owned or operated 
or assisted with grant amounts provided under this title.
  ``(d) Eligibility for Admission.--As a condition to receiving 
grant amounts under this title, the Director shall develop 
written policies governing the eligibility, admission, and 
occupancy of families for housing assisted with grant amounts 
provided under this title.
  ``(e) Management and Maintenance.--As a condition to 
receiving grant amounts under this title, the Director shall 
develop policies governing the management and maintenance of 
housing assisted with grant amounts under this title.

``SEC. 812. TYPES OF INVESTMENTS.

  ``(a) In General.--Subject to section 811 and an applicable 
housing plan approved under section 803, the Director shall 
have--
          ``(1) the discretion to use grant amounts for 
        affordable housing activities through the use of--
                  ``(A) equity investments;
                  ``(B) interest-bearing loans or advances;
                  ``(C) noninterest-bearing loans or advances;
                  ``(D) interest subsidies;
                  ``(E) the leveraging of private investments; 
                or
                  ``(F) any other form of assistance that the 
                Secretary determines to be consistent with the 
                purposes of this title; and
          ``(2) the right to establish the terms of assistance 
        provided with funds referred to in paragraph (1).
  ``(b) Investments.--The Director may invest grant amounts for 
the purposes of carrying out affordable housing activities in 
investment securities and other obligations, as approved by the 
Secretary.

``SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

  ``(a) In General.--Housing shall qualify for affordable 
housing for purposes of this title only if--
          ``(1) each dwelling unit in the housing--
                  ``(A) in the case of rental housing, is made 
                available for occupancy only by a family that 
                is a low-income family at the time of the 
                initial occupancy of that family of that unit; 
                and
                  ``(B) in the case of housing for 
                homeownership, is made available for purchase 
                only by a family that is a low-income family at 
                the time of purchase; and
          ``(2) each dwelling unit in the housing will remain 
        affordable, according to binding commitments 
        satisfactory to the Secretary, for--
                  ``(A) the remaining useful life of the 
                property (as determined by the Secretary) 
                without regard to the term of the mortgage or 
                to transfer of ownership; or
                  ``(B) such other period as the Secretary 
                determines is the longest feasible period of 
                time consistent with sound economics and the 
                purposes of this title, except upon a 
                foreclosure by a lender (or upon other transfer 
                in lieu of foreclosure) if that action--
                          ``(i) recognizes any contractual or 
                        legal rights of any public agency, 
                        nonprofit sponsor, or other person or 
                        entity to take an action that would--
                                  ``(I) avoid termination of 
                                low-income affordability, in 
                                the case of foreclosure; or
                                  ``(II) transfer ownership in 
                                lieu of foreclosure; and
                          ``(ii) is not for the purpose of 
                        avoiding low-income affordability 
                        restrictions, as determined by the 
                        Secretary.
  ``(b) Exception.--Notwithstanding subsection (a), housing 
assisted pursuant to section 809(a)(2)(B) shall be considered 
affordable housing for purposes of this title.

 ``SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

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

``SEC. 815. REPAYMENT.

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

``SEC. 816. ANNUAL ALLOCATION.

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

``SEC. 817. ALLOCATION FORMULA.

  ``(a) Establishment.--The Secretary shall, by regulation 
issued not later than the expiration of the 6-month period 
beginning on the date of enactment of the Native American 
Housing Assistance and Self-Determination Amendments of 1999, 
in the manner provided under section 807, establish a formula 
to provide for the allocation of amounts available for a fiscal 
year for block grants under this title in accordance with the 
requirements of this section.
  ``(b) Factors for Determination of Need.--The formula under 
subsection (a) shall be based on factors that reflect the needs 
for assistance for affordable housing activities, including--
          ``(1) the number of low-income dwelling units owned 
        or operated at the time pursuant to a contract between 
        the Director and the Secretary;
          ``(2) the extent of poverty and economic distress and 
        the number of Native Hawaiian families eligible to 
        reside on the Hawaiian Home Lands; and
          ``(3) any other objectively measurable conditions 
        that the Secretary and the Director may specify.
  ``(c) Other Factors for Consideration.--In establishing the 
formula under subsection (a), the Secretary shall consider the 
relative administrative capacities of the Department of 
Hawaiian Home Lands and other challenges faced by the 
Department, including--
          ``(1) geographic distribution within Hawaiian Home 
        Lands; and
          ``(2) technical capacity.
  ``(d) Effective Date.--This section shall take effect on the 
date of enactment of the Native American Housing Assistance and 
Self-Determination Amendments of 1999.

``SEC. 818. REMEDIES FOR NONCOMPLIANCE.

  ``(a) Actions by Secretary Affecting Grant Amounts.--
          ``(1) In general.--Except as provided in subsection 
        (b), if the Secretary finds after reasonable notice and 
        opportunity for a hearing that the Department of 
        Hawaiian Home Lands has failed to comply substantially 
        with any provision of this title, the Secretary shall--
                  ``(A) terminate payments under this title to 
                the Department;
                  ``(B) reduce payments under this title to the 
                Department by an amount equal to the amount of 
                such payments that were not expended in 
                accordance with this title; or
                  ``(C) limit the availability of payments 
                under this title to programs, projects, or 
                activities not affected by such failure to 
                comply.
          ``(2) Actions.--If the Secretary takes an action 
        under subparagraph (A), (B), or (C) of paragraph (1), 
        the Secretary shall continue that action until the 
        Secretary determines that the failure by the Department 
        to comply with the provision has been remedied by the 
        Department and the Department is in compliance with 
        that provision.
  ``(b) Noncompliance Because of a Technical Incapacity.--The 
Secretary may provide technical assistance for the Department, 
either directly or indirectly, that is designed to increase the 
capability and capacity of the Director of the Department to 
administer assistance provided under this title in compliance 
with the requirements under this title if the Secretary makes a 
finding under subsection (a), but determines that the failure 
of the Department to comply substantially with the provisions 
of this title--
          ``(1) is not a pattern or practice of activities 
        constituting willful noncompliance; and
          ``(2) is a result of the limited capability or 
        capacity of the Department of Hawaiian Home Lands.
  ``(c) Referral for Civil Action.--
          ``(1) Authority.--In lieu of, or in addition to, any 
        action that the Secretary may take under subsection 
        (a), if the Secretary has reason to believe that the 
        Department of Hawaiian Home Lands has failed to comply 
        substantially with any provision of this title, the 
        Secretary may refer the matter to the Attorney General 
        of the United States with a recommendation that an 
        appropriate civil action be instituted.
          ``(2) Civil action.--Upon receiving a referral under 
        paragraph (1), the Attorney General may bring a civil 
        action in any United States district court of 
        appropriate jurisdiction for such relief as may be 
        appropriate, including an action--
                  ``(A) to recover the amount of the assistance 
                furnished under this title that was not 
                expended in accordance with this title; or
                  ``(B) for mandatory or injunctive relief.
  ``(d) Review.--
          ``(1) In general.--If the Director receives notice 
        under subsection (a) of the termination, reduction, or 
        limitation of payments under this Act, the Director--
                  ``(A) may, not later than 60 days after 
                receiving such notice, file with the United 
                States Court of Appeals for the Ninth Circuit, 
                or in the United States Court of Appeals for 
                the District of Columbia, a petition for review 
                of the action of the Secretary; and
                  ``(B) upon the filing of any petition under 
                subparagraph (A), shall forthwith transmit 
                copies of the petition to the Secretary and the 
                Attorney General of the United States, who 
                shall represent the Secretary in the 
                litigation.
          ``(2) Procedure.--
                  ``(A) In general.--The Secretary shall file 
                in the court a record of the proceeding on 
                which the Secretary based the action, as 
                provided in section 2112 of title 28, United 
                States Code.
                  ``(B) Objections.--No objection to the action 
                of the Secretary shall be considered by the 
                court unless the Department has registered the 
                objection before the Secretary.
          ``(3) Disposition.--
                  ``(A) Court proceedings.--
                          ``(i) Jurisdiction of court.--The 
                        court shall have jurisdiction to affirm 
                        or modify the action of the Secretary 
                        or to set the action aside in whole or 
                        in part.
                          ``(ii) Findings of fact.--If 
                        supported by substantial evidence on 
                        the record considered as a whole, the 
                        findings of fact by the Secretary shall 
                        be conclusive.
                          ``(iii) Addition.--The court may 
                        order evidence, in addition to the 
                        evidence submitted for review under 
                        this subsection, to be taken by the 
                        Secretary, and to be made part of the 
                        record.
                  ``(B) Secretary.--
                          ``(i) In general.--The Secretary, by 
                        reason of the additional evidence 
                        referred to in subparagraph (A) and 
                        filed with the court--
                                  ``(I) may--
                                          ``(aa) modify the 
                                        findings of fact of the 
                                        Secretary; or
                                          ``(bb) make new 
                                        findings; and
                                  ``(II) shall file--
                                          ``(aa) such modified 
                                        or new findings; and
                                          ``(bb) the 
                                        recommendation of the 
                                        Secretary, if any, for 
                                        the modification or 
                                        setting aside of the 
                                        original action of the 
                                        Secretary.
                          ``(ii) Findings.--The findings 
                        referred to in clause (i)(II)(bb) 
                        shall, with respect to a question of 
                        fact, be considered to be conclusive if 
                        those findings are--
                                  ``(I) supported by 
                                substantial evidence on the 
                                record; and
                                  ``(II) considered as a whole.
          ``(4) Finality.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), upon the filing of the record 
                under this subsection with the court--
                          ``(i) the jurisdiction of the court 
                        shall be exclusive; and
                          ``(ii) the judgment of the court 
                        shall be final.
                  ``(B) Review by supreme court.--A judgment 
                under subparagraph (A) shall be subject to 
                review by the Supreme Court of the United 
                States upon writ of certiorari or 
                certification, as provided in section 1254 of 
                title 28, United States Code.

``SEC. 819. MONITORING OF COMPLIANCE.

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

``SEC. 820. PERFORMANCE REPORTS.

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

``SEC. 821. REVIEW AND AUDIT BY SECRETARY.

  ``(a) Annual Review.--
          ``(1) In general.--The Secretary shall, not less 
        frequently than on an annual basis, make such reviews 
        and audits as may be necessary or appropriate to 
        determine whether--
                  ``(A) the Director has--
                          ``(i) carried out eligible activities 
                        under this title in a timely manner;
                          ``(ii) carried out and made 
                        certifications in accordance with the 
                        requirements and the primary objectives 
                        of this title and with other applicable 
                        laws; and
                          ``(iii) a continuing capacity to 
                        carry out the eligible activities in a 
                        timely manner;
                  ``(B) the Director has complied with the 
                housing plan submitted by the Director under 
                section 803; and
                  ``(C) the performance reports of the 
                Department under section 821 are accurate.
          ``(2) Onsite visits.--Each review conducted under 
        this section shall, to the extent practicable, include 
        onsite visits by employees of the Department of Housing 
        and Urban Development.
  ``(b) Report by Secretary.--The Secretary shall give the 
Department of Hawaiian Home Lands not less than 30 days to 
review and comment on a report under this subsection. After 
taking into consideration the comments of the Department, the 
Secretary may revise the report and shall make the comments of 
the Department and the report with any revisions, readily 
available to the public not later than 30 days after receipt of 
the comments of the Department.
  ``(c) Effect of Reviews.--The Secretary may make appropriate 
adjustments in the amount of annual grants under this title in 
accordance with the findings of the Secretary pursuant to 
reviews and audits under this section. The Secretary may 
adjust, reduce, or withdraw grant amounts, or take other action 
as appropriate in accordance with the reviews and audits of the 
Secretary under this section, except that grant amounts already 
expended on affordable housing activities may not be recaptured 
or deducted from future assistance provided to the Department 
of Hawaiian Home Lands.

``SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

  ``To the extent that the financial transactions of the 
Department of Hawaiian Home Lands involving grant amounts under 
this title relate to amounts provided under this title, those 
transactions may be audited by the Comptroller General of the 
United States under such regulations as may be prescribed by 
the Comptroller General. The Comptroller General of the United 
States shall have access to all books, accounts, records, 
reports, files, and other papers, things, or property belonging 
to or in use by the Department of Hawaiian Home Lands 
pertaining to such financial transactions and necessary to 
facilitate the audit.

``SEC. 823. REPORTS TO CONGRESS.

  ``(a) In General.--Not later than 90 days after the 
conclusion of each fiscal year in which assistance under this 
title is made available, the Secretary shall submit to Congress 
a report that contains--
          ``(1) a description of the progress made in 
        accomplishing the objectives of this title;
          ``(2) a summary of the use of funds available under 
        this title during the preceding fiscal year; and
          ``(3) a description of the aggregate outstanding loan 
        guarantees under section 184A of the Housing and 
        Community Development Act of 1992.
  ``(b) Related Reports.--The Secretary may require the 
Director to submit to the Secretary such reports and other 
information as may be necessary in order for the Secretary to 
prepare the report required under subsection (a).

``SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to the Department 
of Housing and Urban Development for grants under this title 
such sums as may be necessary for each of fiscal years 2000, 
2001, 2002, 2003, and 2004.''.
  Subtitle E of title I of the Housing and Community 
Development Act of 1992 is amended by inserting after section 
184 (12 U.S.C. 1715z-13a) the following:

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

  ``(a) Definitions.--In this section:
          ``(1) Department of hawaiian home lands.--The term 
        `Department of Hawaiian Home Lands' means the agency or 
        department of the government of the State of Hawaii 
        that is responsible for the administration of the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et 
        seq.).
          ``(2) Eligible entity.--The term `eligible entity' 
        means a Native Hawaiian family, the Department of 
        Hawaiian Home Lands, the Office of Hawaiian Affairs, 
        and private nonprofit or private for-profit 
        organizations experienced in the planning and 
        development of affordable housing for Native Hawaiians.
          ``(3) Family.--The term `family' means 1 or more 
        persons maintaining a household, as the Secretary shall 
        by regulation provide.
          ``(4) Guarantee fund.--The term `Guarantee Fund' 
        means the Native Hawaiian Housing Loan Guarantee Fund 
        established under subsection (i).
          ``(5) Hawaiian home lands.--The term `Hawaiian Home 
        Lands' means lands that--
                  ``(A) have the status of Hawaiian Home Lands 
                under section 204 of the Hawaiian Homes 
                Commission Act (42 Stat. 110); or
                  ``(B) are acquired pursuant to that Act.
          ``(6) Native hawaiian.--The term `Native Hawaiian' 
        means any individual who is--
                  ``(A) a citizen of the United States; and
                  ``(B) a descendant of the aboriginal people, 
                who, prior to 1778, occupied and exercised 
                sovereignty in the area that currently 
                constitutes the State of Hawaii, as evidenced 
                by--
                          ``(i) genealogical records;
                          ``(ii) verification by kupuna 
                        (elders) or kama'aina (long-term 
                        community residents); or
                          ``(iii) birth records of the State of 
                        Hawaii.
          ``(7) Office of hawaiian affairs.--The term `Office 
        of Hawaiian Affairs' means the entity of that name 
        established under the constitution of the State of 
        Hawaii.
  ``(b) Authority.--To provide access to sources of private 
financing to Native Hawaiian families who otherwise could not 
acquire housing financing because of the unique legal status of 
the Hawaiian Home Lands or as a result of a lack of access to 
private financial markets, the Secretary may guarantee an 
amount not to exceed 100 percent of the unpaid principal and 
interest that is due on an eligible loan under subsection (b).
  ``(c) Eligible Loans.--Under this section, a loan is an 
eligible loan if that loan meets the following requirements:
          ``(1) Eligible borrowers.--The loan is made only to a 
        borrower who is--
                  ``(A) a Native Hawaiian family;
                  ``(B) the Department of Hawaiian Home Lands;
                  ``(C) the Office of Hawaiian Affairs; or
                  ``(D) a private nonprofit organization 
                experienced in the planning and development of 
                affordable housing for Native Hawaiians.
          ``(2) Eligible housing.--
                  ``(A) In general.--The loan will be used to 
                construct, acquire, or rehabilitate not more 
                than 4-family dwellings that are standard 
                housing and are located on Hawaiian Home Lands 
                for which a housing plan described in 
                subparagraph (B) applies.
                  ``(B) Housing plan.--A housing plan described 
                in this subparagraph is a housing plan that--
                          ``(i) has been submitted and approved 
                        by the Secretary under section 803 of 
                        the Native American Housing Assistance 
                        and Self-Determination Amendments of 
                        1999; and
                          ``(ii) provides for the use of loan 
                        guarantees under this section to 
                        provide affordable homeownership 
                        housing on Hawaiian Home Lands.
          ``(3) Security.--The loan may be secured by any 
        collateral authorized under applicable Federal or State 
        law.
          ``(4) Lenders.--
                  ``(A) In general.--The loan shall be made 
                only by a lender approved by, and meeting 
                qualifications established by, the Secretary, 
                including any lender described in subparagraph 
                (B), except that a loan otherwise insured or 
                guaranteed by an agency of the Federal 
                Government or made by the Department of 
                Hawaiian Home Lands from amounts borrowed from 
                the United States shall not be eligible for a 
                guarantee under this section.
                  ``(B) Approval.--The following lenders shall 
                be considered to be lenders that have been 
                approved by the Secretary:
                          ``(i) Any mortgagee approved by the 
                        Secretary for participation in the 
                        single family mortgage insurance 
                        program under title II of the National 
                        Housing Act (12 U.S.C.A. 1707 et seq.).
                          ``(ii) Any lender that makes housing 
                        loans under chapter 37 of title 38, 
                        United States Code, that are 
                        automatically guaranteed under section 
                        3702(d) of title 38, United States 
                        Code.
                          ``(iii) Any lender approved by the 
                        Secretary of Agriculture to make 
                        guaranteed loans for single family 
                        housing under the Housing Act of 1949 
                        (42 U.S.C.A. 1441 et seq.).
                          ``(iv) Any other lender that is 
                        supervised, approved, regulated, or 
                        insured by any agency of the Federal 
                        Government.
          ``(5) Terms.--The loan shall--
                  ``(A) be made for a term not exceeding 30 
                years;
                  ``(B) bear interest (exclusive of the 
                guarantee fee under subsection (d) and service 
                charges, if any) at a rate agreed upon by the 
                borrower and the lender and determined by the 
                Secretary to be reasonable, but not to exceed 
                the rate generally charged in the area (as 
                determined by the Secretary) for home mortgage 
                loans not guaranteed or insured by any agency 
                or instrumentality of the Federal Government;
                  ``(C) involve a principal obligation not 
                exceeding--
                          ``(i) 97.75 percent of the appraised 
                        value of the property as of the date 
                        the loan is accepted for guarantee (or 
                        98.75 percent if the value of the 
                        property is $50,000 or less); or
                          ``(ii) the amount approved by the 
                        Secretary under this section; and
                  ``(D) involve a payment on account of the 
                property--
                          ``(i) in cash or its equivalent; or
                          ``(ii) through the value of any 
                        improvements to the property made 
                        through the skilled or unskilled labor 
                        of the borrower, as the Secretary shall 
                        provide.
  ``(d) Certificate of Guarantee.--
          ``(1) Approval process.--
                  ``(A) In general.--Before the Secretary 
                approves any loan for guarantee under this 
                section, the lender shall submit the 
                application for the loan to the Secretary for 
                examination.
                  ``(B) Approval.--If the Secretary approves 
                the application submitted under subparagraph 
                (A), the Secretary shall issue a certificate 
                under this subsection as evidence of the loan 
                guarantee approved.
          ``(2) Standard for approval.--The Secretary may 
        approve a loan for guarantee under this section and 
        issue a certificate under this subsection only if the 
        Secretary determines that there is a reasonable 
        prospect of repayment of the loan.
          ``(3) Effect.--
                  ``(A) In general.--A certificate of guarantee 
                issued under this subsection by the Secretary 
                shall be conclusive evidence of the eligibility 
                of the loan for guarantee under this section 
                and the amount of that guarantee.
                  ``(B) Evidence.--The evidence referred to in 
                subparagraph (A) shall be incontestable in the 
                hands of the bearer.
                  ``(C) Full faith and credit.--The full faith 
                and credit of the United States is pledged to 
                the payment of all amounts agreed to be paid by 
                the Secretary as security for the obligations 
                made by the Secretary under this section.
          ``(4) Fraud and misrepresentation.--This subsection 
        may not be construed--
                  ``(A) to preclude the Secretary from 
                establishing defenses against the original 
                lender based on fraud or material 
                misrepresentation; or
                  ``(B) to bar the Secretary from establishing 
                by regulations that are on the date of issuance 
                or disbursement, whichever is earlier, partial 
                defenses to the amount payable on the 
                guarantee.
  ``(e) Guarantee Fee.--
          ``(1) In general.--The Secretary shall fix and 
        collect a guarantee fee for the guarantee of a loan 
        under this section, which may not exceed the amount 
        equal to 1 percent of the principal obligation of the 
        loan.
          ``(2) Payment.--The fee under this subsection shall--
                  ``(A) be paid by the lender at time of 
                issuance of the guarantee; and
                  ``(B) be adequate, in the determination of 
                the Secretary, to cover expenses and probable 
                losses.
          ``(3) Deposit.--The Secretary shall deposit any fees 
        collected under this subsection in the Native Hawaiian 
        Housing Loan Guarantee Fund established under 
        subsection (j).
  ``(f) Liability Under Guarantee.--The liability under a 
guarantee provided under this section shall decrease or 
increase on a pro rata basis according to any decrease or 
increase in the amount of the unpaid obligation under the 
provisions of the loan agreement involved.
  ``(g) Transfer and Assumption.--Notwithstanding any other 
provision of law, any loan guaranteed under this section, 
including the security given for the loan, may be sold or 
assigned by the lender to any financial institution subject to 
examination and supervision by an agency of the Federal 
Government or of any State or the District of Columbia.
  ``(h) Disqualification of Lenders and Civil Money 
Penalties.--
          ``(1) In general.--
                  ``(A) Grounds for action.--The Secretary may 
                take action under subparagraph (B) if the 
                Secretary determines that any lender or holder 
                of a guarantee certificate under subsection 
                (c)--
                          ``(i) has failed--
                                  ``(I) to maintain adequate 
                                accounting records;
                                  ``(II) to service adequately 
                                loans guaranteed under this 
                                section; or
                                  ``(III) to exercise proper 
                                credit or underwriting 
                                judgment; or
                          ``(ii) has engaged in practices 
                        otherwise detrimental to the interest 
                        of a borrower or the United States.
                  ``(B) Actions.--Upon a determination by the 
                Secretary that a holder of a guarantee 
                certificate under subsection (c) has failed to 
                carry out an activity described in subparagraph 
                (A)(i) or has engaged in practices described in 
                subparagraph (A)(ii), the Secretary may--
                          ``(i) refuse, either temporarily or 
                        permanently, to guarantee any further 
                        loans made by such lender or holder;
                          ``(ii) bar such lender or holder from 
                        acquiring additional loans guaranteed 
                        under this section; and
                          ``(iii) require that such lender or 
                        holder assume not less than 10 percent 
                        of any loss on further loans made or 
                        held by the lender or holder that are 
                        guaranteed under this section.
          ``(2) Civil money penalties for intentional 
        violations.--
                  ``(A) In general.--The Secretary may impose a 
                civil monetary penalty on a lender or holder of 
                a guarantee certificate under subsection (d) if 
                the Secretary determines that the holder or 
                lender has intentionally failed--
                          ``(i) to maintain adequate accounting 
                        records;
                          ``(ii) to adequately service loans 
                        guaranteed under this section; or
                          ``(iii) to exercise proper credit or 
                        underwriting judgment.
                  ``(B) Penalties.--A civil monetary penalty 
                imposed under this paragraph shall be imposed 
                in the manner and be in an amount provided 
                under section 536 of the National Housing Act 
                (12 U.S.C.A. 1735f-1) with respect to 
                mortgagees and lenders under that Act.
          ``(3) Payment on loans made in good faith.--
        Notwithstanding paragraphs (1) and (2), if a loan was 
        made in good faith, the Secretary may not refuse to pay 
        a lender or holder of a valid guarantee on that loan, 
        without regard to whether the lender or holder is 
        barred under this subsection.
  ``(i) Payment Under Guarantee.--
          ``(1) Lender options.--
                  ``(A) In general.--
                          ``(i) Notification.--If a borrower on 
                        a loan guaranteed under this section 
                        defaults on the loan, the holder of the 
                        guarantee certificate shall provide 
                        written notice of the default to the 
                        Secretary.
                          ``(ii) Payment.--Upon providing the 
                        notice required under clause (i), the 
                        holder of the guarantee certificate 
                        shall be entitled to payment under the 
                        guarantee (subject to the provisions of 
                        this section) and may proceed to obtain 
                        payment in 1 of the following manners:
                                  ``(I) Foreclosure.--
                                          ``(aa) In general.--
                                        The holder of the 
                                        certificate may 
                                        initiate foreclosure 
                                        proceedings (after 
                                        providing written 
                                        notice of that action 
                                        to the Secretary).
                                          ``(bb) Payment.--Upon 
                                        a final order by the 
                                        court authorizing 
                                        foreclosure and 
                                        submission to the 
                                        Secretary of a claim 
                                        for payment under the 
                                        guarantee, the 
                                        Secretary shall pay to 
                                        the holder of the 
                                        certificate the pro 
                                        rata portion of the 
                                        amount guaranteed (as 
                                        determined pursuant to 
                                        subsection (f)) plus 
                                        reasonable fees and 
                                        expenses as approved by 
                                        the Secretary.
                                          ``(cc) Subrogation.--
                                        The rights of the 
                                        Secretary shall be 
                                        subrogated to the 
                                        rights of the holder of 
                                        the guarantee. The 
                                        holder shall assign the 
                                        obligation and security 
                                        to the Secretary.
                                  ``(II) No foreclosure.--
                                          ``(aa) In general.--
                                        Without seeking 
                                        foreclosure (or in any 
                                        case in which a 
                                        foreclosure proceeding 
                                        initiated under clause 
                                        (i) continues for a 
                                        period in excess of 1 
                                        year), the holder of 
                                        the guarantee may 
                                        submit to the Secretary 
                                        a request to assign the 
                                        obligation and security 
                                        interest to the 
                                        Secretary in return for 
                                        payment of the claim 
                                        under the guarantee. 
                                        The Secretary may 
                                        accept assignment of 
                                        the loan if the 
                                        Secretary determines 
                                        that the assignment is 
                                        in the best interest of 
                                        the United States.
                                          ``(bb) Payment.--Upon 
                                        assignment, the 
                                        Secretary shall pay to 
                                        the holder of the 
                                        guarantee the pro rata 
                                        portion of the amount 
                                        guaranteed (as 
                                        determined under 
                                        subsection (f)).
                                          ``(cc) Subrogation.--
                                        The rights of the 
                                        Secretary shall be 
                                        subrogated to the 
                                        rights of the holder of 
                                        the guarantee. The 
                                        holder shall assign the 
                                        obligation and security 
                                        to the Secretary.
                  ``(B) Requirements.--Before any payment under 
                a guarantee is made under subparagraph (A), the 
                holder of the guarantee shall exhaust all 
                reasonable possibilities of collection. Upon 
                payment, in whole or in part, to the holder, 
                the note or judgment evidencing the debt shall 
                be assigned to the United States and the holder 
                shall have no further claim against the 
                borrower or the United States. The Secretary 
                shall then take such action to collect as the 
                Secretary determines to be appropriate.
          ``(2) Limitations on liquidation.--
                  ``(A) In general.--If a borrower defaults on 
                a loan guaranteed under this section that 
                involves a security interest in restricted 
                Hawaiian Home Land property, the mortgagee or 
                the Secretary shall only pursue liquidation 
                after offering to transfer the account to 
                another eligible Hawaiian family or the 
                Department of Hawaiian Home Lands.
                  ``(B) Limitation.--If, after action is taken 
                under subparagraph (A), the mortgagee or the 
                Secretary subsequently proceeds to liquidate 
                the account, the mortgagee or the Secretary 
                shall not sell, transfer, or otherwise dispose 
                of or alienate the property described in 
                subparagraph (A) except to another eligible 
                Hawaiian family or to the Department of 
                Hawaiian Home Lands.
  ``(j) Hawaiian Housing Loan Guarantee Fund.--
          ``(1) Establishment.--There is established in the 
        Treasury of the United States the Hawaiian Housing Loan 
        Guarantee Fund for the purpose of providing loan 
        guarantees under this section.
          ``(2) Credits.--The Guarantee Fund shall be credited 
        with--
                  ``(A) any amount, claims, notes, mortgages, 
                contracts, and property acquired by the 
                Secretary under this section, and any 
                collections and proceeds therefrom;
                  ``(B) any amounts appropriated pursuant to 
                paragraph (7);
                  ``(C) any guarantee fees collected under 
                subsection (d); and
                  ``(D) any interest or earnings on amounts 
                invested under paragraph (4).
          ``(3) Use.--Amounts in the Guarantee Fund shall be 
        available, to the extent provided in appropriations 
        Acts, for--
                  ``(A) fulfilling any obligations of the 
                Secretary with respect to loans guaranteed 
                under this section, including the costs (as 
                that term is defined in section 502 of the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a)) of such loans;
                  ``(B) paying taxes, insurance, prior liens, 
                expenses necessary to make fiscal adjustment in 
                connection with the application and transmittal 
                of collections, and other expenses and advances 
                to protect the Secretary for loans which are 
                guaranteed under this section or held by the 
                Secretary;
                  ``(C) acquiring such security property at 
                foreclosure sales or otherwise;
                  ``(D) paying administrative expenses in 
                connection with this section; and
                  ``(E) reasonable and necessary costs of 
                rehabilitation and repair to properties that 
                the Secretary holds or owns pursuant to this 
                section.
          ``(4) Investment.--Any amounts in the Guarantee Fund 
        determined by the Secretary to be in excess of amounts 
        currently required at the time of the determination to 
        carry out this section may be invested in obligations 
        of the United States.
          ``(5) Limitation on commitments to guarantee loans 
        and mortgages.--
                  ``(A) Requirement of appropriations.--The 
                authority of the Secretary to enter into 
                commitments to guarantee loans under this 
                section shall be effective for any fiscal year 
                to the extent, or in such amounts as are, or 
                have been, provided in appropriations Acts, 
                without regard to the fiscal year for which 
                such amounts were appropriated.
                  ``(B) Limitations on costs of guarantees.--
                The authority of the Secretary to enter into 
                commitments to guarantee loans under this 
                section shall be effective for any fiscal year 
                only to the extent that amounts in the 
                Guarantee Fund are or have been made available 
                in appropriations Acts to cover the costs (as 
                that term is defined in section 502 of the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a)) of such loan guarantees for such fiscal 
                year. Any amounts appropriated pursuant to this 
                subparagraph shall remain available until 
                expended.
                  ``(C) Limitation on outstanding aggregate 
                principal amount.--Subject to the limitations 
                in subparagraphs (A) and (B), the Secretary may 
                enter into commitments to guarantee loans under 
                this section for each of fiscal years 2000, 
                2001, 2002, 2003, and 2004 with an aggregate 
                outstanding principal amount not exceeding 
                $100,000,000 for each such fiscal year.
          ``(6) Liabilities.--All liabilities and obligations 
        of the assets credited to the Guarantee Fund under 
        paragraph (2)(A) shall be liabilities and obligations 
        of the Guarantee Fund.
          ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to 
        carry out this section such sums as may be necessary 
        for each of fiscal years 2000, 2001, 2002, 2003, and 
        2004.
  ``(k) Requirements for Standard Housing.--
          ``(1) In general.--The Secretary shall, by 
        regulation, establish housing safety and quality 
        standards to be applied for use under this section.
          ``(2) Standards.--The standards referred to in 
        paragraph (1) shall--
                  ``(A) provide sufficient flexibility to 
                permit the use of various designs and materials 
                in housing acquired with loans guaranteed under 
                this section; and
                  ``(B) require each dwelling unit in any 
                housing acquired in the manner described in 
                subparagraph (A) to--
                          ``(i) be decent, safe, sanitary, and 
                        modest in size and design;
                          ``(ii) conform with applicable 
                        general construction standards for the 
                        region in which the housing is located;
                          ``(iii) contain a plumbing system 
                        that--
                                  ``(I) uses a properly 
                                installed system of piping;
                                  ``(II) includes a kitchen 
                                sink and a partitional bathroom 
                                with lavatory, toilet, and bath 
                                or shower; and
                                  ``(III) uses water supply, 
                                plumbing, and sewage disposal 
                                systems that conform to any 
                                minimum standards established 
                                by the applicable county or 
                                State;
                          ``(iv) contain an electrical system 
                        using wiring and equipment properly 
                        installed to safely supply electrical 
                        energy for adequate lighting and for 
                        operation of appliances that conforms 
                        to any appropriate county, State, or 
                        national code;
                          ``(v) be not less than the size 
                        provided under the applicable locally 
                        adopted standards for size of dwelling 
                        units, except that the Secretary, upon 
                        request of the Department of Hawaiian 
                        Home Lands may waive the size 
                        requirements under this paragraph; and
                          ``(vi) conform with the energy 
                        performance requirements for new 
                        construction established by the 
                        Secretary under section 526(a) of the 
                        National Housing Act (12 U.S.C.A. 
                        1735f-4), unless the Secretary 
                        determines that the requirements are 
                        not applicable.
  ``(l) Applicability of Civil Rights Statutes.--To the extent 
that the requirements of title VI of the Civil Rights Act of 
1964 (42 U.S.C. 2000d et seq.) or of title VIII of the Act 
popularly known as the `Civil Rights Act of 1968' (42 U.S.C.A. 
3601 et seq.) apply to a guarantee provided under this 
subsection, nothing in the requirements concerning 
discrimination on the basis of race shall be construed to 
prevent the provision of the guarantee to an eligible entity on 
the basis that the entity serves Native Hawaiian families or is 
a Native Hawaiian family.''.

                                  
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