[House Report 106-562]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-562
======================================================================
PROVIDING FOR THE CONSIDERATION OF H.R. 1776, THE AMERICAN
HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000
_______
April 5, 2000.--Referred to the House Calendar and ordered to be
printed
_______
Ms. Pryce of Ohio, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 460]
The Committee on Rules, having had under consideration
House Resolution 460, by an nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
Summary of Provisions of the Resolution
The resolution provides for the consideration of H.R. 1776,
the American Homeownership and Economic Opportunity Act of
2000, under a structured rule. The rule provides one hour of
general debate divided equally between the chairman and ranking
minority member of the Committee on Banking and Financial
Services. The Rule waives all points of order against
consideration of the report.
The rule makes in order the Committee on Banking and
Financial Services amendment in the nature of a substitute now
printed in the bill as an original bill for the purpose of
amendment and waives all points of order against the amendment
in the nature of the substitute. The rule also makes in order
only those amendments printed in this report which may be
offered only in the order printed in this report, may be
offered only by a Member designated in this report, shall be
considered as read, shall be debatable for the time specified
in this report equally divided and controlled by the proponent
and an opponent, shall not be subject to amendment, and shall
not be subject to a demand for a division of the question in
the House or in the Committee of the Whole.
The rule waives all points of order against the amendments
printed in this report. The rule allows the Chairman of the
Committee of the Whole to postpone votes during consideration
of the bill, and reduce voting time to five minutes on a
postponed question if the vote follows a fifteen minute vote.
Finally, the rule provides one motion to recommit with or
without instructions.
The waiver of all points of order against consideration of
the bill includes a waiver of clause 3 of rule XIII (requiring
the inclusion in the report of a CBO cost estimate), a waiver
of clause 4 of rule XXI (prohibiting appropriations in
legislative bills), and a waiver of section 303 of the
Congressional Budget Act (prohibiting the consideration of
legislation, as reported, providing new budget authority,
changes in revenue, or changes in the public debt for a fiscal
year until the budget resolution for that year has been agreed
to). The waiver of clause 3 of rule XIII is necessary because
the report that was filed on March 29, 2000 failed to include a
Congressional Budget Office cost estimate. The waiver of clause
4 of rule XXI is necessary because section 1006 of the bill
automatically appropriates the fees charged to lenders for loan
guarantees issued. The waiver of section 303 of the
Congressional Budget Act is necessary because the House has not
yet passed the FY 2001 Budget Resolution Conference Report and
because the Congressional Budget Office estimates the bill will
result in a loss of revenue in the first year.
The waiver of all points of order against the amendment in
the nature of the substitute includes a waiver of section 303
of the Congressional Budget Act for the same reasons as were
specified for consideration of the bill. It also includes a
waiver of clause 7 of rule XVI (prohibiting nongermane
amendments) because section 1008 of the committee amendment in
the nature of the substitute was not included in the original
bill.
committee votes
Pursuant to clause 3(b) of House rule XIII the results of
each record vote on an amendment or motion to report, together
with the names of those voting for and against, are printed
below:
Rules Committee record vote No. 97
Date: April 5, 2000.
Measure: H.R. 1776.
Motion by: Representative Moakley.
Summary of motion: To make in order the Frank Amendment to
require: the Secretary to make available information regarding
housing defects and other information that the Secretary
determines will assist in carrying out the Title within 60 days
of the request and that within 7 days of a request for
information, the Secretary will notify all parties who have
asked to be notified of such request, to give them the
opportunity to comment on the information being released and in
providing information, the Secretary must comply with FOIA and
Privacy Act protections governing the release of information,
and must establish a process by which to verify and enure the
reliability of the information provided.
Results: Defeated 1 to 7.
Vote by Members: Linder--Nay; Diaz-Balart--Nay; Hastings--
Nay; Myrick--Nay; Reynolds--Nay; Moakley--Yea; Frost--Nay;
Dreier--Nay.
summary of amendments made in order under the rule
Leach/LaFalce/Lazio/Frank (MA)--Manager's Amendment. Amends
Section 205 to include law enforcement officers, teachers and
firefighters; amends Section 249 of the National Housing Act
and allows Community Development Financial Institutions, along
with Private Mortgage Insurance Companies to engage in risk-
sharing activities with the Federal Housing Administration's
single family mortgage insurance programs; amends Section 211
of the bill to require a report on the Title I Home Improvement
Loan Program with recommendations for improvements; expands
housing assistance for native Hawaiians by extending to them
the same type of federal housing programs available to American
Indians and Alaska Natives; amends Section 1006 of the bill by
striking subparagraph (u)(2); enhances the Secretary of HUD's
authority over the appointment of members to the consensus
committee; clarifies the findings and purposes section of the
bill to protect the quality, durability, safety and
affordability of manufactured homes and protect residents with
respect to personal injury and the amount of insurance costs
and property damage in manufactured homes; addresses concerns
over states' rights issues regarding primary inspection
agencies' roles in inspecting homes at the manufacturing plants
and monitoring homes once they reach retail sites; incorporates
language to address concerns about changes in the distribution
of manufactured program fees to states; requires the HUD
Secretary to retain at least three separate and independent
contractors to carry out the work of Title XI; expresses the
sense of the Congress that the Secretary of Housing and Urban
Development should consult with other agencies to make
additional properties available for law enforcement officers,
teachers, and fire fighters; clarifies Title VI of the bill as
it relates to the selection criteria for the Homeownership Zone
Grant program and provides that the Department of Housing and
Urban Development may not reject an applicant who meets the
selection criteria solely on the basis that the homeownership
zone is located in an unincorporated area; requires homeowners
who are delinquent on their payments be given a notice, within
45 days of their initial delinquency, stating that they are
delinquent in payments; makes pre-kindergarten teachers
eligible for housing benefits. (20 minutes)
Coburn--Strikes section 203 (Reduced Downpayment
Requirement for Loans for Teachers and Uniformed Municipal
Employees), section 404 (Homeownership for Municipal
Employees--CDBG funds) and section 505 (Homeownership for
Municipal Employees--HOME funds). (20 minutes)
Rush--Adds nurses to section 203 of the bill; allows the
Secretary of HHS to define the term ``nurse'', which includes
nurses employed in hospitals and nursing homes; specifies that
under the bill, nurses would be required to live in the
jurisdiction where the hospital, nursing home or other place of
nursing employment is located. (10 minutes)
Coburn--Amends section 203 to extend the benefits provided
under the Section to the following: (1) those employed on a
full-time basis by a tax exempt authority, (2) members of an
organization under the jurisdiction of the NLRB, (3) those
employed on a full-time basis by the Federal Government, (4)
those employed on a full-time basis by a small business, (5)
those who have a financial interest in a small business, (6)
those who qualifies for the child care tax credit; amends
section 404 to allow a mayor to use CDBG funds to assist any
individual, irrespective of employer provided they meet the
other requirements in the bill (live within the jurisdiction
that receives the funds and with an income not exceeding 115%
of the median average income.); and amends section 505 to
extend the benefits provided under the Section to include the
following: (1) those employed on a full-time basis by a tax
exempt authority, (2) members of an organization under the
jurisdiction of the NLRB, (3) those employed on a full-time
basis by the Federal Government, (4) those employed on a full-
time basis by a small business, (5) those who have a financial
interest in a small business, (6) those who qualify for the
child care tax credit. (10 minutes)
Andrews--Requires that anyone who certifies an FHA financed
home for energy efficiency must be ``an accredited home energy
rating system provider.'' (10 minutes)
Weygand--Increases the loan limit for the Title I single
family home improvement program from $25,000 to $32,500 to
reflect the increase in housing material costs since 1991 when
the limit was last increased. (10 minutes)
Waters--Strikes language in Title IV that raises the CDBG
income eligibility for a median household income to 150% and
115% and bring it back down to the existing level. (20 minutes)
Shays/Nadler/Crowley/Morella--Increases the funding
authorization for the Housing Opportunities for Persons with
Aids (HOPWA) program from $260 million to $292 million for
fiscal year 2001. (20 minutes)
Paul/Kilpatrick--Amends the Community Development Block
Grant program to prohibit the use of funds for ``activities
involving the acquisition of church property, unless the
consent of the governing body of the church is obtained.'' (10
minutes)
Traficant--Authorizes $35 million special purpose Community
Development Block Grant for site acquisition, planning,
architectural design and construction of a convocation and
community center in Youngstown, Ohio. (10 minutes)
Souder--Allows religious organizations to compete for the
block grants provided in the bill on the same basis that other
private organizations compete. (20 minutes)
Miller, Gary--Modifies the eligible local housing authority
definition for the HUD Public Housing Drug Elimination Program
Grants to include local housing authorities that can show
evidence, through local efforts between the housing authority
and police department, that they were able to eliminate drug
and crime problems in public housing. (10 minutes)
Summaries provided by amendment sponsors.
text of amendments made in order under the rule
1. An Amendment To Be Offered by Representative Leach of Iowa, or
Representative LaFalce of New York, or a Designee, Debatable for 20
Minutes.
Page 28, line 24, after the comma insert ``except that
elementary education shall include pre-Kindergarten education,
and''.
Page 36, strike line 13, and all that follows through page
37, line 2, and insert the following:
SEC. 206. COMMUNITY PARTNERS NEXT DOOR PROGRAM.
(a) Short Title.--This section may be cited as the
``Community Partners Next Door Act''.
(b) Congressional Findings.--The Congress finds that--
(1) teachers, law enforcement officers, fire
fighters, and rescue personnel help form the backbones
of communities and are integral components in the
social capital of neighborhoods in the United States;
and
(2) providing a discounted purchase price on HUD-
owned properties for teachers, law enforcement
officers, fire fighters, and rescue personnel
recognizes the intrinsic value of the services provided
by such employees to their communities and to family
life and encourages and rewards those who are dedicated
to providing public service in our most needy
communities.
Page 37, line 10, after ``teachers'' insert ``and public
safety officers''.
Page 37, line 14, after ``teacher'' insert ``or public safety
officer''.
Page 38, line 2, after ``teacher'' insert ``or public safety
officer''.
Page 38, line 9, after ``teacher'' insert ``or public safety
officer''.
Page 38, line 11, after ``teacher'' insert ``or public safety
officer''.
Page 38, line 20, after ``teacher'' insert ``or public safety
officer''.
Page 39, line 4, after ``teacher'' insert ``or public safety
officer''.
Page 39, strike line 15, and all that follows through page
40, line 6.
Page 40, line 7, strike ``(H)'' and insert ``(G)''.
Page 40, after line 20, insert the following:
``(iii) The term `public safety
officer' means an individual who is
employed on a full-time basis as a
public safety officer described in
section 203(b)(10)(B)(i)(I)(bb).
Page 40, line 21, strike ``(iii)'' and insert ``(iv)''.
Page 40, line 24 after ``State-certified'' insert ``or State-
licensed''.
Page 40, line 24, before ``ad-'' insert ``or as an''.
Page 41, lines 14 and 15, strike ``community development
financial institution''.
Strike line 24 on page 41 and all that follows through page
42, line 1, and insert the following:
(A) in the first sentence, by inserting ``and
insured community development financial
institutions'' after ``private mortgage
insurers'';
Page 42, strike lines 12 through 15, and insert the
following:
(A) in the first sentence, by inserting ``and
with insured community development financial
institutions'' before the period at the end;
Page 42, after line 18, insert the following new
subparagraph:
(C) in the second sentence, by inserting
``and insured community development financial
institutions'' after ``private mortgage
insurance companies'';
Page 42, line 19, strike ``(C)'' and insert ``(D)''.
Page 43, line 3, strike ``(D)'' and insert ``(E)''.
Page 43, strike lines 17 through 23 and insert the following:
(B) in the second sentence, by inserting ``or
insured community development financial
institution'' after ``private mortgage
insurance company'';
(6) in subsection (d), by inserting ``or insured
community development financial institution'' after
``private mortgage insurance company''; and
Page 59, line 10, strike ``1 year'' and insert ``3 months''.
Page 59, after line 23, insert the following new section:
SEC. 212. SENSE OF CONGRESS REGARDING MAKING PROPERTIES AVAILABLE FOR
HOMEOWNERSHIP PROGRAMS.
It is the sense of the Congress that the Secretary of Housing
and Urban Development should consult with the heads of other
agencies of the Federal Government that own or hold properties
appropriate for use as housing to determine the possibility and
effectiveness of including such properties in programs that
make housing available for law enforcement officers, teachers,
or fire fighters.
Page 110, after line 2, insert the following:
The Secretary may not treat any application for a grant under
this section adversely in any manner solely on the basis that
the homeownership zone is located, in whole or in part, within
unincorporated areas.
Page 119, after line 1, insert the following new subsection:
(a) Extension of Programs.--
(1) Emergency homeownership counseling.--Section
106(c)(9) of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701x(c)(9)) is amended by striking
``September 30, 2000'' and inserting ``September 30,
2005''.
(2) Prepurchase and foreclosure prevention counseling
demonstration.--Section 106(d)(12) of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701x(d)(12))
is amended by striking ``fiscal year 1994'' and
inserting ``fiscal year 2005''.
Page 119, line 2, before ``Section'' insert ``(b) Cooperative
Ownership Housing Corporations.--
Page 121, strike lines 12 and 13 and insert the following:
TITLE VII--NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A--Native American Housing
Page 138, strike lines 12 through 18 and insert the following
new subsection:
(j) Labor Standards.--Section 104(b) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4114(b) is amended--
(1) in paragraph (1), by striking ``Davis-Bacon Act
(40 U.S.C. 276a-276a-5)'' and inserting ``Act of March
3, 1931 (commonly known as the Davis-Bacon Act; chapter
411; 46 Stat. 1494; 40 U.S.C 276a et seq.)''; and
(2) by adding at the end the following new paragraph:
``(3) Application of tribal laws.--Paragraph (1)
shall not apply to any contract or agreement for
assistance, sale, or lease pursuant to this Act, if
such contract or agreement is otherwise covered by one
or more laws or regulations adopted by an Indian tribe
that requires the payment of not less than prevailing
wages, as determined by the Indian tribe.''.
Page 139, after line 16, insert the following new subtitle:
Subtitle B--Native Hawaiian Housing
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ``Hawaiian Homelands
Homeownership Act of 2000''.
SEC. 722. FINDINGS.
The Congress finds that--
(1) the United States has undertaken a responsibility
to promote the general welfare of the United States
by--
(A) employing its resources to remedy the
unsafe and unsanitary housing conditions and
the acute shortage of decent, safe, and
sanitary dwellings for families of lower
income; and
(B) developing effective partnerships with
governmental and private entities to accomplish
the objectives referred to in subparagraph (A);
(2) the United States has a special responsibility
for the welfare of the Native peoples of the United
States, including Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), the United
States set aside 200,000 acres of land in the Federal
territory that later became the State of Hawaii in
order to establish a homeland for the native people of
Hawaii--Native Hawaiians;
(4) despite the intent of Congress in 1920 to address
the housing needs of Native Hawaiians through the
enactment of the Hawaiian Homes Commission Act, 1920
(42 Stat. 108 et seq.), Native Hawaiians eligible to
reside on the Hawaiian home lands have been foreclosed
from participating in Federal housing assistance
programs available to all other eligible families in
the United States;
(5) although Federal housing assistance programs have
been administered on a racially neutral basis in the
State of Hawaii, Native Hawaiians continue to have the
greatest unmet need for housing and the highest rates
of overcrowding in the United States;
(6) among the Native American population of the
United States, Native Hawaiians experience the highest
percentage of housing problems in the United States, as
the percentage--
(A) of housing problems in the Native
Hawaiian population is 49 percent, as compared
to--
(i) 44 percent for American Indian
and Alaska Native households in Indian
country; and
(ii) 27 percent for all other
households in the United States; and
(B) overcrowding in the Native Hawaiian
population is 36 percent as compared to 3
percent for all other households in the United
States;
(7) among the Native Hawaiian population, the needs
of Native Hawaiians, as that term is defined in section
801 of the Native American Housing Assistance and Self-
Determination Act of 1996, as added by section 723 of
this subtitle, eligible to reside on the Hawaiian Home
Lands are the most severe, as--
(A) the percentage of overcrowding in Native
Hawaiian households on the Hawaiian Home Lands
is 36 percent; and
(B) approximately 13,000 Native Hawaiians,
which constitute 95 percent of the Native
Hawaiians who are eligible to reside on the
Hawaiian Home Lands, are in need of housing;
(8) applying the Department of Housing and Urban
Development guidelines--
(A) 70.8 percent of Native Hawaiians who
either reside or who are eligible to reside on
the Hawaiian Home Lands have incomes that fall
below the median family income; and
(B) 50 percent of Native Hawaiians who either
reside or who are eligible to reside on the
Hawaiian Home Lands have incomes below 30
percent of the median family income;
(9) \1/3\ of those Native Hawaiians who are eligible
to reside on the Hawaiian Home Lands pay more than 30
percent of their income for shelter, and \1/2\ of those
Native Hawaiians face overcrowding;
(10) the extraordinarily severe housing needs of
Native Hawaiians demonstrate that Native Hawaiians who
either reside on, or are eligible to reside on,
Hawaiian Home Lands have been denied equal access to
Federal low-income housing assistance programs
available to other qualified residents of the United
States, and that a more effective means of addressing
their housing needs must be authorized;
(11) consistent with the recommendations of the
National Commission on American Indian, Alaska Native,
and Native Hawaiian Housing, and in order to address
the continuing prevalence of extraordinarily severe
housing needs among Native Hawaiians who either reside
or are eligible to reside on the Hawaiian Home Lands,
Congress finds it necessary to extend the Federal low-
income housing assistance available to American Indians
and Alaska Natives under the Native American Housing
Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) to those Native Hawaiians;
(12) under the treatymaking power of the United
States, Congress had the constitutional authority to
confirm a treaty between the United States and the
government that represented the Hawaiian people, and
from 1826 until 1893, the United States recognized the
independence of the Kingdom of Hawaii, extended full
diplomatic recognition to the Hawaiian Government, and
entered into treaties and conventions with the Hawaiian
monarchs to govern commerce and navigation in 1826, 1842,
1849, 1875, and 1887;
(13) the United States has recognized and reaffirmed
that--
(A) Native Hawaiians have a cultural,
historic, and land-based link to the indigenous
people who exercised sovereignty over the
Hawaiian Islands, and that group has never
relinquished its claims to sovereignty or its
sovereign lands;
(B) Congress does not extend services to
Native Hawaiians because of their race, but
because of their unique status as the
indigenous people of a once sovereign nation as
to whom the United States has established a
trust relationship;
(C) Congress has also delegated broad
authority to administer a portion of the
Federal trust responsibility to the State of
Hawaii;
(D) the political status of Native Hawaiians
is comparable to that of American Indians and
Alaska Natives; and
(E) the aboriginal, indigenous people of the
United States have--
(i) a continuing right to autonomy in
their internal affairs; and
(ii) an ongoing right of self-
determination and self-governance that
has never been extinguished;
(14) the political relationship between the United
States and the Native Hawaiian people has been
recognized and reaffirmed by the United States as
evidenced by the inclusion of Native Hawaiians in--
(A) the Native American Programs Act of 1974
(42 U.S.C. 2291 et seq.);
(B) the American Indian Religious Freedom Act
(42 U.S.C. 1996 et seq.);
(C) the National Museum of the American
Indian Act (20 U.S.C. 80q et seq.);
(D) the Native American Graves Protection and
Repatriation Act (25 U.S.C. 3001 et seq.);
(E) the National Historic Preservation Act
(16 U.S.C. 470 et seq.);
(F) the Native American Languages Act of 1992
(106 Stat. 3434);
(G) the American Indian, Alaska Native and
Native Hawaiian Culture and Arts Development
Act (20 U.S.C. 4401 et seq.);
(H) the Job Training Partnership Act (29
U.S.C. 1501 et seq.); and
(I) the Older Americans Act of 1965 (42
U.S.C. 3001 et seq.); and
(15) in the area of housing, the United States has
recognized and reaffirmed the political relationship
with the Native Hawaiian people through--
(A) the enactment of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.),
which set aside approximately 200,000 acres of
public lands that became known as Hawaiian Home
Lands in the Territory of Hawaii that had been
ceded to the United States for homesteading by
Native Hawaiians in order to rehabilitate a
landless and dying people;
(B) the enactment of the Act entitled ``An
Act to provide for the admission of the State
of Hawaii into the Union'', approved March 18,
1959 (73 Stat. 4)--
(i) by ceding to the State of Hawaii
title to the public lands formerly held
by the United States, and mandating
that those lands be held in public
trust, for the betterment of the
conditions of Native Hawaiians, as that
term is defined in section 201 of the
Hawaiian Homes Commission Act, 1920 (42
Stat. 108 et seq.); and
(ii) by transferring the United
States responsibility for the
administration of Hawaiian Home Lands
to the State of Hawaii, but retaining
the authority to enforce the trust,
including the exclusive right of the
United States to consent to any actions
affecting the lands which comprise the
corpus of the trust and any amendments
to the Hawaiian Homes Commission Act,
1920 (42 Stat. 108 et seq.), enacted by
the legislature of the State of Hawaii
affecting the rights of beneficiaries
under the Act;
(C) the authorization of mortgage loans
insured by the Federal Housing Administration
for the purchase, construction, or refinancing
of homes on Hawaiian Home Lands under the
National Housing Act (Public Law 479, 73d
Congress; 12 U.S.C. 1701 et seq.);
(D) authorizing Native Hawaiian
representation on the National Commission on
American Indian, Alaska Native, and Native
Hawaiian Housing under Public Law 101-235;
(E) the inclusion of Native Hawaiians in the
definition under section 3764 of title 38,
United States Code, applicable to subchapter V
of chapter 37 of title 38, United States Code
(relating to a housing loan program for Native
American veterans); and
(F) the enactment of the Hawaiian Home Lands
Recovery Act (109 Stat. 357; 48 U.S.C. 491,
note prec.) which establishes a process for the
conveyance of Federal lands to the Department
of Hawaiian Homes Lands that are equivalent in
value to lands acquired by the United States
from the Hawaiian Home Lands inventory.
SEC. 723. HOUSING ASSISTANCE.
The Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4101 et seq.) is amended by adding at
the end the following:
``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS
``SEC. 801. DEFINITIONS.
``In this title:
``(1) Department of hawaiian home lands;
department.--The term `Department of Hawaiian Home
Lands' or `Department' means the agency or department
of the government of the State of Hawaii that is
responsible for the administration of the Hawaiian
Homes Commission Act, 1920 (42 Stat. 108 et seq.).
``(2) Director.--The term `Director' means the
Director of the Department of Hawaiian Home Lands.
``(3) Elderly families; near-elderly families.--
``(A) In general.--The term `elderly family'
or `near-elderly family' means a family whose
head (or his or her spouse), or whose sole
member, is--
``(i) for an elderly family, an
elderly person; or
``(ii) for a near-elderly family, a
near-elderly person.
``(B) Certain families included.--The term
`elderly family' or `near-elderly family'
includes--
``(i) 2 or more elderly persons or
near-elderly persons, as the case may
be, living together; and
``(ii) 1 or more persons described in
clause (i) living with 1 or more
persons determined under the housing
plan to be essential to their care or
well-being.
``(4) Hawaiian home lands.--The term `Hawaiian Home
Lands' means lands that--
``(A) have the status as Hawaiian home lands
under section 204 of the Hawaiian Homes
Commission Act, 1920(42 Stat. 110); or
``(B) are acquired pursuant to that Act.
``(5) Housing area.--The term `housing area' means an
area of Hawaiian Home Lands with respect to which the
Department of Hawaiian Home Lands is authorized to
provide assistance for affordable housing under this
Act.
``(6) Housing entity.--The term `housing entity'
means the Department of Hawaiian Home Lands.
``(7) Housing plan.--The term `housing plan' means a
plan developed by the Department of Hawaiian Home
Lands.
``(8) Median income.--The term `median income' means,
with respect to an area that is a Hawaiian housing
area, the greater of--
``(A) the median income for the Hawaiian
housing area, which shall be determined by the
Secretary; or
``(B) the median income for the State of
Hawaii.
``(9) Native hawaiian.--The term `Native Hawaiian'
means any individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people,
who, prior to 1778, occupied and exercised
sovereignty in the area that currently
constitutes the State of Hawaii, as evidenced
by--
``(i) genealogical records;
``(ii) verification by kupuna
(elders) or kama'aina (long-term
community residents); or
``(iii) birth records of the State of
Hawaii.
``SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING
ACTIVITIES.
``(a) Grant Authority.--For each fiscal year, the Secretary
shall (to the extent amounts are made available to carry out
this title) make a grant under this title to the Department of
Hawaiian Home Lands to carry out affordable housing activities
for Native Hawaiian families who are eligible to reside on the
Hawaiian Home Lands.
``(b) Plan Requirement.--
``(1) In general.--The Secretary may make a grant
under this title to the Department of Hawaiian Home
Lands for a fiscal year only if--
``(A) the Director has submitted to the
Secretary a housing plan for that fiscal year;
and
``(B) the Secretary has determined under
section 804 that the housing plan complies with
the requirements of section 803.
``(2) Waiver.--The Secretary may waive the
applicability of the requirements under paragraph (1),
in part, if the Secretary finds that the Department of
Hawaiian Home Lands has not complied or cannot comply
with those requirements due to circumstances beyond the
control of the Department of Hawaiian Home Lands.
``(c) Use of Affordable Housing Activities Under Plan.--
Except as provided in subsection (e), amounts provided under a
grant under this section may be used only for affordable
housing activities under this title that are consistent with a
housing plan approved under section 804.
``(d) Administrative Expenses.--
``(1) In general.--The Secretary shall, by
regulation, authorize the Department of Hawaiian Home
Lands to use a percentage of any grant amounts received
under this title for any reasonable administrative and
planning expenses of the Department relating to
carrying out this title and activities assisted with
those amounts.
``(2) Administrative and planning expenses.--The
administrative and planning expenses referred to in
paragraph (1) include--
``(A) costs for salaries of individuals
engaged in administering and managing
affordable housing activities assisted with
grant amounts provided under this title; and
``(B) expenses incurred in preparing a
housing plan under section 803.
``(e) Public-Private Partnerships.--The Director shall make
all reasonable efforts, consistent with the purposes of this
title, to maximize participation by the private sector,
including nonprofit organizations and for-profit entities, in
implementing a housing plan that has been approved by the
Secretary under section 803.
``SEC. 803. HOUSING PLAN.
``(a) Plan Submission.--The Secretary shall--
``(1) require the Director to submit a housing plan
under this section for each fiscal year; and
``(2) provide for the review of each plan submitted
under paragraph (1).
``(b) 5-Year Plan.--Each housing plan under this section
shall--
``(1) be in a form prescribed by the Secretary; and
``(2) contain, with respect to the 5-year period
beginning with the fiscal year for which the plan is
submitted, the following information:
``(A) Mission statement.--A general statement
of the mission of the Department of Hawaiian
Home Lands to serve the needs of the low-income
families to be served by the Department.
``(B) Goal and objectives.--A statement of
the goals and objectives of the Department of
Hawaiian Home Lands to enable the Department to
serve the needs identified in subparagraph (A)
during the period.
``(C) Activities plans.--An overview of the
activities planned during the period including
an analysis of the manner in which the
activities will enable the Department to meet
its mission, goals, and objectives.
``(c) 1-Year Plan.--A housing plan under this section shall--
``(1) be in a form prescribed by the Secretary; and
``(2) contain the following information relating to
the fiscal year for which the assistance under this
title is to be made available:
``(A) Goals and objectives.--A statement of
the goals and objectives to be accomplished
during the period covered by the plan.
``(B) Statement of needs.--A statement of the
housing needs of the low-income families served
by the Department and the means by which those
needs will be addressed during the period
covered by the plan, including--
``(i) a description of the estimated
housing needs and the need for
assistance for the low-income families
to be served by the Department,
including a description of the manner
in which the geographical distribution
of assistance is consistent with--
``(I) the geographical needs
of those families; and
``(II) needs for various
categories of housing
assistance; and
``(ii) a description of the estimated
housing needs for all families to be
served by the Department.
``(C) Financial resources.--An operating
budget for the Department of Hawaiian Home
Lands, in a form prescribed by the Secretary,
that includes--
``(i) an identification and a
description of the financial resources
reasonably available to the Department
to carry out the purposes of this
title, including an explanation of the
manner in which amounts made available
will be used to leverage additional
resources; and
``(ii) the uses to which the
resources described in clause (i) will
be committed, including--
``(I) eligible and required
affordable housing activities;
and
``(II) administrative
expenses.
``(D) Affordable housing resources.--A
statement of the affordable housing resources
currently available at the time of the
submittal of the plan and to be made available
during the period covered by the plan,
including--
``(i) a description of the
significant characteristics of the
housing market in the State of Hawaii,
including the availability of housing
from other public sources, private
market housing;
``(ii) the manner in which the
characteristics referred to in clause
(i) influence the decision of the
Department of Hawaiian Home Lands to
use grant amounts to be provided under
this title for--
``(I) rental assistance;
``(II) the production of new
units;
``(III) the acquisition of
existing units; or
``(IV) the rehabilitation of
units;
``(iii) a description of the
structure, coordination, and means of
cooperation between the Department of
Hawaiian Home Lands and any other
governmental entities in the
development, submission, or
implementation of housing plans,
including a description of--
``(I) the involvement of
private, public, and nonprofit
organizations and institutions;
``(II) the use of loan
guarantees under section 184A
of the Housing and Community
Development Act of 1992; and
``(III) other housing
assistance provided by the
United States, including loans,
grants, and mortgage insurance;
``(iv) a description of the manner in
which the plan will address the needs
identified pursuant to subparagraph
(C);
``(v) a description of--
``(I) any existing or
anticipated homeownership
programs and rental programs to
be carried out during the
period covered by the plan; and
``(II) the requirements and
assistance available under the
programs referred to in
subclause (I);
``(vi) a description of--
``(I) any existing or
anticipated housing
rehabilitation programs
necessary to ensure the long-
term viability of the housing
to be carried out during the
period covered by the plan; and
``(II) the requirements and
assistance available under the
programs referred to in
subclause (I);
``(vii) a description of--
``(I) all other existing or
anticipated housing assistance
provided by the Department of
Hawaiian Home Lands during the
period covered by the plan,
including--
``(aa) transitional
housing;
``(bb) homeless
housing;
``(cc) college
housing; and
``(dd) supportive
services housing; and
``(II) the requirements and
assistance available under such
programs;
``(viii)(I) a description of any
housing to be demolished or disposed
of;
``(II) a timetable for that
demolition or disposition; and
``(III) any other information
required by the Secretary with respect
to that demolition or disposition;
``(ix) a description of the manner in
which the Department of Hawaiian Home
Lands will coordinate with welfare
agencies in the State of Hawaii to
ensure that residents of the affordable
housing will be provided with access to
resources to assist in obtaining
employment and achieving self-
sufficiency;
``(x) a description of the
requirements established by the
Department of Hawaiian Home Lands to--
``(I) promote the safety of
residents of the affordable
housing;
``(II) facilitate the
undertaking of crime prevention
measures;
``(III) allow resident input
and involvement, including the
establishment of resident
organizations; and
``(IV) allow for the
coordination of crime
prevention activities between
the Department and local law
enforcement officials; and
``(xi) a description of the entities
that will carry out the activities
under the plan, including the
organizational capacity and key
personnel of the entities.
``(E) Certification of compliance.--Evidence
of compliance that shall include, as
appropriate--
``(i) a certification that the
Department of Hawaiian Home Lands will
comply with--
``(I) title VI of the Civil
Rights Act of 1964 (42 U.S.C.
2000d et seq.) or with the Fair
Housing Act (42 U.S.C. 3601 et
seq.) in carrying out this
title, to the extent that such
title is applicable; and
``(II) other applicable
Federal statutes;
``(ii) a certification that the
Department will require adequate
insurance coverage for housing units
that are owned and operated or assisted
with grant amounts provided under this
title, in compliance with such
requirements as may be established by
the Secretary;
``(iii) a certification that policies
are in effect and are available for
review by the Secretary and the public
governing the eligibility, admission,
and occupancy of families for housing
assisted with grant amounts provided
under this title;
``(iv) a certification that policies
are in effect and are available for
review by the Secretary and the public
governing rents charged, including the
methods by which such rents or
homebuyer payments are determined, for
housing assisted with grant amounts
provided under this title; and
``(v) a certification that policies
are in effect and are available for
review by the Secretary and the public
governing the management and
maintenance of housing assisted with
grant amounts provided under this
title.
``(d) Applicability of Civil Rights Statutes.--
``(1) In general.--To the extent that the
requirements of title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.) or of the Fair Housing
Act (42 U.S.C. 3601 et seq.) apply to assistance
provided under this title, nothing in the requirements
concerning discrimination on the basis of race shall be
construed to prevent the provision of assistance under
this title--
``(A) to the Department of Hawaiian Home
Lands on the basis that the Department served
Native Hawaiians; or
``(B) to an eligible family on the basis that
the family is a Native Hawaiian family.
``(2) Civil rights.--Program eligibility under this
title may be restricted to Native Hawaiians. Subject to
the preceding sentence, no person may be discriminated
against on the basis of race, color, national origin,
religion, sex, familial status, or disability.
``(e) Use of Nonprofit Organizations.--As a condition of
receiving grant amounts under this title, the Department of
Hawaiian Home Lands shall, to the extent practicable, provide
for private nonprofit organizations experienced in the planning
and development of affordablehousing for Native Hawaiians to
carry out affordable housing activities with those grant amounts.
``SEC. 804. REVIEW OF PLANS.
``(a) Review and Notice.--
``(1) Review.--
``(A) In general.--The Secretary shall
conduct a review of a housing plan submitted to
the Secretary under section 803 to ensure that
the plan complies with the requirements of that
section.
``(B) Limitation.--The Secretary shall have
the discretion to review a plan referred to in
subparagraph (A) only to the extent that the
Secretary considers that the review is
necessary.
``(2) Notice.--
``(A) In general.--Not later than 60 days
after receiving a plan under section 803, the
Secretary shall notify the Director of the
Department of Hawaiian Home Lands whether the
plan complies with the requirements under that
section.
``(B) Effect of failure of secretary to take
action.--For purposes of this title, if the
Secretary does not notify the Director, as
required under this subsection and subsection
(b), upon the expiration of the 60-day period
described in subparagraph (A)--
``(i) the plan shall be considered to
have been determined to comply with the
requirements under section 803; and
``(ii) the Director shall be
considered to have been notified of
compliance.
``(b) Notice of Reasons for Determination of Noncompliance.--
If the Secretary determines that a plan submitted under section
803 does not comply with the requirements of that section, the
Secretary shall specify in the notice under subsection (a)--
``(1) the reasons for noncompliance; and
``(2) any modifications necessary for the plan to
meet the requirements of section 803.
``(c) Review.--
``(1) In general.--After the Director of the
Department of Hawaiian Home Lands submits a housing
plan under section 803, or any amendment or
modification to the plan to the Secretary, to the
extent that the Secretary considers such action to be
necessary to make a determination under this
subsection, the Secretary shall review the plan
(including any amendments or modifications thereto) to
determine whether the contents of the plan--
``(A) set forth the information required by
section 803 to be contained in the housing
plan;
``(B) are consistent with information and
data available to the Secretary; and
``(C) are not prohibited by or inconsistent
with any provision of this Act or any other
applicable law.
``(2) Incomplete plans.--If the Secretary determines
under this subsection that any of the appropriate
certifications required under section 803(c)(2)(E) are
not included in a plan, the plan shall be considered to
be incomplete.
``(d) Updates to Plan.--
``(1) In general.--Subject to paragraph (2), after a
plan under section 803 has been submitted for a fiscal
year, the Director of the Department of Hawaiian Home
Lands may comply with the provisions of that section
for any succeeding fiscal year (with respect to
information included for the 5-year period under
section 803(b) or for the 1-year period under section
803(c)) by submitting only such information regarding
such changes as may be necessary to update the plan
previously submitted.
``(2) Complete plans.--The Director shall submit a
complete plan under section 803 not later than 4 years
after submitting an initial plan under that section,
and not less frequently than every 4 years thereafter.
``(e) Effective Date.--This section and section 803 shall
take effect on the date provided by the Secretary pursuant to
section 807(a) to provide for timely submission and review of
the housing plan as necessary for the provision of assistance
under this title for fiscal year 2001.
``SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.
``(a) Program Income.--
``(1) Authority to retain.--The Department of
Hawaiian Home Lands may retain any program income that
is realized from any grant amounts received by the
Department under this title if--
``(A) that income was realized after the
initial disbursement of the grant amounts
received by the Department; and
``(B) the Director agrees to use the program
income for affordable housing activities in
accordance with the provisions of this title.
``(2) Prohibition of reduction of grant.--The
Secretary may not reduce the grant amount for the
Department of Hawaiian Home Lands based solely on--
``(A) whether the Department retains program
income under paragraph (1); or
``(B) the amount of any such program income
retained.
``(3) Exclusion of amounts.--The Secretary may, by
regulation, exclude from consideration as program
income any amounts determined to be so small that
compliance with the requirements of this subsection
would create an unreasonable administrative burden on
the Department.
``(b) Labor Standards.--
``(1) In general.--Any contract or agreement for
assistance, sale, or lease pursuant to this title shall
contain--
``(A) a provision requiring that an amount
not less than the wages prevailing in the
locality, as determined or adopted (subsequent
to a determination under applicable State or
local law) by the Secretary, shall be paid to
all architects, technical engineers, draftsmen,
technicians employed in the development and all
maintenance, and laborers and mechanics
employed in the operation, of the affordable
housing project involved; and
``(B) a provision that an amount not less
than the wages prevailing in the locality, as
predetermined by the Secretary of Labor
pursuant to the Act commonly known as the
`Davis-Bacon Act' (46 Stat. 1494, chapter 411;
40 U.S.C. 276a et seq.) shall be paid to all
laborers and mechanics employed in the
development of the affordable housing involved.
``(2) Exceptions.--Paragraph (1) and provisions
relating to wages required under paragraph (1) in any
contract or agreement for assistance, sale, or lease
under this title, shall not apply to any individual who
performs the services for which the individual
volunteered and who is not otherwise employed at any
time in the construction work and received no
compensation or is paid expenses, reasonable benefits,
or a nominal fee for those services.
``SEC. 806. ENVIRONMENTAL REVIEW.
``(a) In General.--
``(1) Release of funds.--
``(A) In general.--The Secretary may carry
out the alternative environmental protection
procedures described in subparagraph (B) in
order to ensure--
``(i) that the policies of the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) and other
provisions of law that further the
purposes of such Act (as specified in
regulations issued by the Secretary)
are most effectively implemented in
connection with the expenditure of
grant amounts provided under this
title; and
``(ii) to the public undiminished
protection of the environment.
``(B) Alternative environmental protection
procedure.--In lieu of applying environmental
protection procedures otherwise applicable, the
Secretary may by regulation provide for the
release of funds for specific projects to the
Department of Hawaiian Home Lands if the
Director of the Department assumes all of the
responsibilities for environmental review,
decisionmaking, and action under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), and such other provisions of law
as the regulations of the Secretary specify,
that would apply to the Secretary were the
Secretary to undertake those projects as
Federal projects.
``(2) Regulations.--
``(A) In general.--The Secretary shall issue
regulations to carry out this section only
after consultation with the Council on
Environmental Quality.
``(B) Contents.--The regulations issued under
this paragraph shall--
``(i) provide for the monitoring of
the environmental reviews performed
under this section;
``(ii) in the discretion of the
Secretary, facilitate training for the
performance of such reviews; and
``(iii) provide for the suspension or
termination of the assumption of
responsibilities under this section.
``(3) Effect on assumed responsibility.--The duty of
the Secretary under paragraph (2)(B) shall not be
construed to limit or reduce any responsibility assumed
by the Department of Hawaiian Home Lands for grant
amounts with respect to any specific release of funds.
``(b) Procedure.--
``(1) In general.--The Secretary shall authorize the
release of funds subject to the procedures under this
section only if, not less than 15 days before that
approval and before any commitment of funds to such
projects, the Director of the Department of Hawaiian
Home Lands submits to the Secretary a request for such
release accompanied by a certification that meets the
requirements of subsection (c).
``(2) Effect of approval.--The approval of the
Secretary of a certification described in paragraph (1)
shall be deemed to satisfy the responsibilities of the
Secretary under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) and such other
provisions of law as the regulations of the Secretary
specify to the extent that those responsibilities
relate to the releases of funds for projects that are
covered by that certification.
``(c) Certification.--A certification under the procedures
under this section shall--
``(1) be in a form acceptable to the Secretary;
``(2) be executed by the Director of the Department
of Hawaiian Home Lands;
``(3) specify that the Department of Hawaiian Home
Lands has fully carried out its responsibilities as
described under subsection (a); and
``(4) specify that the Director--
``(A) consents to assume the status of a
responsible Federal official under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and each provision of law
specified in regulations issued by the
Secretary to the extent that those laws apply
by reason of subsection (a); and
``(B) is authorized and consents on behalf of
the Department of Hawaiian Home Lands and the
Director to accept the jurisdiction of the
Federal courts for the purpose of enforcement
of the responsibilities of the Director of the
Department of Hawaiian Home Lands as such an
official.
``SEC. 807. REGULATIONS.
``The Secretary shall issue final regulations necessary to
carry out this title not later than October 1, 2001.
``SEC. 808. EFFECTIVE DATE.
``Except as otherwise expressly provided in this title, this
title shall take effect on the date of enactment of the
American Homeownership and Economic Opportunity Act of 2000.
``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.
``(a) National Objectives and Eligible Families.--
``(1) Primary objective.--The national objectives of
this title are--
``(A) to assist and promote affordable
housing activities to develop, maintain, and
operate affordable housing in safe and healthy
environments for occupancy by low-income Native
Hawaiian families;
``(B) to ensure better access to private
mortgage markets and to promote self-
sufficiency of low-income Native Hawaiian
families;
``(C) to coordinate activities to provide
housing for low-income Native Hawaiian families
with Federal, State and local activities to
further economic and community development;
``(D) to plan for and integrate
infrastructure resources on the Hawaiian Home
Lands with housing development; and
``(E) to--
``(i) promote the development of
private capital markets; and
``(ii) allow the markets referred to
in clause (i) to operate and grow,
thereby benefiting Native Hawaiian
communities.
``(2) Eligible families.--
``(A) In general.--Except as provided under
subparagraph (B), assistance for eligible
housing activities under this title shall be
limited to low-income Native Hawaiian families.
``(B) Exception to low-income requirement.--
``(i) In general.--The Director may
provide assistance for homeownership
activities under--
``(I) section 810(b);
``(II) model activities under
section 810(f); or
``(III) loan guarantee
activities under section 184A
of the Housing and Community
Development Act of 1992 to
Native Hawaiian families who
are not low-income families, to
the extent that the Secretary
approves the activities under
that section to address a need
for housing for those families
that cannot be reasonably met
without that assistance.
``(ii) Limitations.--The Secretary
shall establish limitations on the
amount of assistance that may be
provided under this title for
activities for families that are not
low-income families.
``(C) Other families.--Notwithstanding
paragraph (1), the Director may provide housing
or housing assistance provided through
affordable housing activities assisted with
grant amounts under this title to a family that
is not composed of Native Hawaiians if--
``(i) the Department determines that
the presence of the family in the
housing involved is essential to the
well-being of Native Hawaiian families;
and
``(ii) the need for housing for the
family cannot be reasonably met without
the assistance.
``(D) Preference.--
``(i) In general.--A housing plan
submitted under section 803 may
authorize a preference, for housing or
housing assistance provided through
affordable housing activities assisted
with grant amounts provided under this
title to be provided, to the extent
practicable, to families that are
eligible to reside on the Hawaiian Home
Lands.
``(ii) Application.--In any case in
which a housing plan provides for
preference described in clause (i), the
Director shall ensure that housing
activities that are assisted with grant
amounts under this title are subject to
that preference.
``(E) Use of nonprofit organizations.--As a
condition of receiving grant amounts under this
title, the Department of Hawaiian Home Lands,
shall to the extent practicable, provide for
private nonprofit organizations experienced in
the planning and development of affordable
housing for Native Hawaiians to carry out
affordable housing activities with those grant
amounts.
``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
``(a) In General.--Affordable housing activities under this
section are activities conducted in accordance with the
requirements of section 811 to--
``(1) develop or to support affordable housing for
rental or homeownership; or
``(2) provide housing services with respect to
affordable housing, through the activities described in
subsection (b).
``(b) Activities.--The activities described in this
subsection are the following:
``(1) Development.--The acquisition, new
construction, reconstruction, or moderate or
substantial rehabilitation of affordable housing, which
may include--
``(A) real property acquisition;
``(B) site improvement;
``(C) the development of utilities and
utility services;
``(D) conversion;
``(E) demolition;
``(F) financing;
``(G) administration and planning; and
``(H) other related activities.
``(2) Housing services.--The provision of housing-
related services for affordable housing, including--
``(A) housing counseling in connection with
rental or homeownership assistance;
``(B) the establishment and support of
resident organizations and resident management
corporations;
``(C) energy auditing;
``(D) activities related to the provisions of
self-sufficiency and other services; and
``(E) other services related to assisting
owners, tenants, contractors, and other
entities participating or seeking to
participate in other housing activities
assisted pursuant to this section.
``(3) Housing management services.--The provision of
management services for affordable housing, including--
``(A) the preparation of work specifications;
``(B) loan processing;
``(C) inspections;
``(D) tenant selection;
``(E) management of tenant-based rental
assistance; and
``(F) management of affordable housing
projects.
``(4) Crime prevention and safety activities.--The
provision of safety, security, and law enforcement
measures and activities appropriate to protect
residents of affordable housing from crime.
``(5) Model activities.--Housing activities under
model programs that are--
``(A) designed to carry out the purposes of
this title; and
``(B) specifically approved by the Secretary
as appropriate for the purpose referred to in
subparagraph (A).
``SEC. 811. PROGRAM REQUIREMENTS.
``(a) Rents.--
``(1) Establishment.--Subject to paragraph (2), as a
condition to receiving grant amounts under this title,
the Director shall develop written policies governing
rents and homebuyer payments charged for dwelling units
assisted under this title, including methods by which
such rents and homebuyer payments are determined.
``(2) Maximum rent.--In the case of any low-income
family residing in a dwelling unit assisted with grant
amounts under this title, the monthly rent or homebuyer
payment (as applicable) for that dwelling unit may not
exceed 30 percent of the monthly adjusted income of
that family.
``(b) Maintenance and Efficient Operation.--
``(1) In general.--The Director shall, using amounts
of any grants received under this title, reserve and
use for operating under section 810 such amounts as may
be necessary to provide for the continued maintenance
and efficient operation of such housing.
``(2) Disposal of certain housing.--This subsection
may not be construed to prevent the Director, or any
entity funded by the Department, from demolishing or
disposing of housing, pursuant to regulations
established by the Secretary.
``(c) Insurance Coverage.--As a condition to receiving grant
amounts under this title, the Director shall require adequate
insurance coverage for housing units that are owned or operated
or assisted with grant amounts provided under this title.
``(d) Eligibility for Admission.--As a condition to receiving
grant amounts under this title, the Director shall develop
written policies governing the eligibility, admission, and
occupancy of families for housing assisted with grant amounts
provided under this title.
``(e) Management and Maintenance.--As a condition to
receiving grant amounts under this title, the Director shall
develop policies governing the management and maintenance of
housing assisted with grant amounts under this title.
``SEC. 812. TYPES OF INVESTMENTS.
``(a) In General.--Subject to section 811 and an applicable
housing plan approved under section 803, the Director shall
have--
``(1) the discretion to use grant amounts for
affordable housing activities through the use of--
``(A) equity investments;
``(B) interest-bearing loans or advances;
``(C) noninterest-bearing loans or advances;
``(D) interest subsidies;
``(E) the leveraging of private investments;
or
``(F) any other form of assistance that the
Secretary determines to be consistent with the
purposes of this title; and
``(2) the right to establish the terms of assistance
provided with funds referred to in paragraph (1).
``(b) Investments.--The Director may invest grant amounts for
the purposes of carrying out affordable housing activities in
investment securities and other obligations, as approved by the
Secretary.
``SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.
``(a) In General.--Housing shall qualify for affordable
housing for purposes of this title only if--
``(1) each dwelling unit in the housing--
``(A) in the case of rental housing, is made
available for occupancy only by a family that
is a low-income family at the time of the
initial occupancy of that family of that unit;
and
``(B) in the case of housing for
homeownership, is made available for purchase
only by a family that is a low-income family at
the time of purchase; and
``(2) each dwelling unit in the housing will remain
affordable, according to binding commitments
satisfactory to the Secretary, for--
``(A) the remaining useful life of the
property (as determined by the Secretary)
without regard to the term of the mortgage or
to transfer of ownership; or
``(B) such other period as the Secretary
determines is the longest feasible period of
time consistent with sound economics and the
purposes of this title, except upon a
foreclosure by a lender (or upon other transfer
in lieu of foreclosure) if that action--
``(i) recognizes any contractual or
legal rights of any public agency,
nonprofit sponsor, or other person or
entity to take an action that would--
``(I) avoid termination of
low-income affordability, in
the case of foreclosure; or
``(II) transfer ownership in
lieu of foreclosure; and
``(ii) is not for the purpose of
avoiding low-income affordability
restrictions, as determined by the
Secretary.
``(b) Exception.--Notwithstanding subsection (a), housing
assisted pursuant to section 809(a)(2)(B) shall be considered
affordable housing for purposes of this title.
``SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.
``(a) Leases.--Except to the extent otherwise provided by or
inconsistent with the laws of the State of Hawaii, in renting
dwelling units in affordable housing assisted with grant
amounts provided under this title, the Director, owner, or
manager shall use leases that--
``(1) do not contain unreasonable terms and
conditions;
``(2) require the Director, owner, or manager to
maintain the housing in compliance with applicable
housing codes and quality standards;
``(3) require the Director, owner, or manager to give
adequate written notice of termination of the lease,
which shall be the period of time required under
applicable State or local law;
``(4) specify that, with respect to any notice of
eviction or termination, notwithstanding any State or
local law, a resident shall be informed of the
opportunity, before any hearing or trial, to examine
any relevant documents, record, or regulations directly
related to the eviction or termination;
``(5) require that the Director, owner, or manager
may not terminate the tenancy, during the term of the
lease, except for serious or repeated violation of the
terms and conditions of the lease, violation of
applicable Federal, State, or local law, or for other
good cause; and
``(6) provide that the Director, owner, or manager
may terminate the tenancy of a resident for any
activity, engaged in by the resident, any member of the
household of the resident, or any guest or other person
under the control of the resident, that--
``(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other residents or employees of the Department,
owner, or manager;
``(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises
by, persons residing in the immediate vicinity
of the premises; or
``(C) is criminal activity (including drug-
related criminal activity) on or off the
premises.
``(b) Tenant or Homebuyer Selection.--As a condition to
receiving grant amounts under this title, the Director shall
adopt and use written tenant and homebuyer selection policies
and criteria that--
``(1) are consistent with the purpose of providing
housing for low-income families;
``(2) are reasonably related to program eligibility
and the ability of the applicant to perform the
obligations of the lease; and
``(3) provide for--
``(A) the selection of tenants and homebuyers
from a written waiting list in accordance with
the policies and goals set forth in an
applicable housing plan approved under section
803; and
``(B) the prompt notification in writing of
any rejected applicant of the grounds for that
rejection.
``SEC. 815. REPAYMENT.
``If the Department of Hawaiian Home Lands uses grant amounts
to provide affordable housing under activities under this title
and, at any time during the useful life of the housing, the
housing does not comply with the requirement under section
813(a)(2), the Secretary shall--
``(1) reduce future grant payments on behalf of the
Department by an amount equal to the grant amounts used
for that housing (under the authority of section
819(a)(2)); or
``(2) require repayment to the Secretary of any
amount equal to those grant amounts.
``SEC. 816. ANNUAL ALLOCATION.
``For each fiscal year, the Secretary shall allocate any
amounts made available for assistance under this title for the
fiscal year, in accordance with the formula established
pursuant to section 817 to the Department of Hawaiian Home
Lands if the Department complies with the requirements under
this title for a grant under this title.
``SEC. 817. ALLOCATION FORMULA.
``(a) Establishment.--The Secretary shall, by regulation
issued not later than the expiration of the 6-month period
beginning on the date of enactment of the American
Homeownership and Economic Opportunity Act of 2000, in the
manner provided under section 807, establish a formula to
provide for the allocation of amounts available for a fiscal
year for block grants under this title in accordance with the
requirements of this section.
``(b) Factors for Determination of Need.--The formula under
subsection (a) shall be based on factors that reflect the needs
for assistance for affordable housing activities, including--
``(1) the number of low-income dwelling units owned
or operated at the time pursuant to a contract between
the Director and the Secretary;
``(2) the extent of poverty and economic distress and
the number of Native Hawaiian families eligible to
reside on the Hawaiian Home Lands; and
``(3) any other objectively measurable conditions
that the Secretary and the Director may specify.
``(c) Other Factors for Consideration.--In establishing the
formula under subsection (a), the Secretary shall consider the
relative administrative capacities of the Department of
Hawaiian Home Lands and other challenges faced by the
Department, including--
``(1) geographic distribution within Hawaiian Home
Lands; and
``(2) technical capacity.
``(d) Effective Date.--This section shall take effect on the
date of enactment of the American Homeownership and Economic
Opportunity Act of 2000.
``SEC. 818. REMEDIES FOR NONCOMPLIANCE.
``(a) Actions by Secretary Affecting Grant Amounts.--
``(1) In general.--Except as provided in subsection
(b), if the Secretary finds after reasonable notice and
opportunity for a hearing that the Department of
Hawaiian Home Lands has failed to comply substantially
with any provision of this title, the Secretary shall--
``(A) terminate payments under this title to
the Department;
``(B) reduce payments under this title to the
Department by an amount equal to the amount of
such payments that were not expended in
accordance with this title; or
``(C) limit the availability of payments
under this title to programs, projects, or
activities not affected by such failure to
comply.
``(2) Actions.--If the Secretary takes an action
under subparagraph (A), (B), or (C) of paragraph (1),
the Secretary shall continue that action until the
Secretary determines that the failure by the Department
to comply with the provision has been remedied by the
Department and the Department is in compliance with
that provision.
``(b) Noncompliance Because of a Technical Incapacity.--The
Secretary may provide technical assistance for the Department,
either directly or indirectly, that is designed to increase the
capability and capacity of the Director of the Department to
administer assistance provided under this title in compliance
with the requirements under this title if the Secretary makes a
finding under subsection (a), but determines that the failure
of the Department to comply substantially with the provisions
of this title--
``(1) is not a pattern or practice of activities
constituting willful noncompliance; and
``(2) is a result of the limited capability or
capacity of the Department of Hawaiian Home Lands.
``(c) Referral for Civil Action.--
``(1) Authority.--In lieu of, or in addition to, any
action that the Secretary may take under subsection
(a), if the Secretary has reason to believe that the
Department of Hawaiian Home Lands has failed to comply
substantially with any provision of this title, the
Secretary may refer the matter to the Attorney General
of the United States with a recommendation that an
appropriate civil action be instituted.
``(2) Civil action.--Upon receiving a referral under
paragraph (1), the Attorney General may bring a civil
action in any United States district court of
appropriate jurisdiction for such relief as may be
appropriate, including an action--
``(A) to recover the amount of the assistance
furnished under this title that was not
expended in accordance with this title; or
``(B) for mandatory or injunctive relief.
``(d) Review.--
``(1) In general.--If the Director receives notice
under subsection (a) of the termination, reduction, or
limitation of payments under this Act, the Director--
``(A) may, not later than 60 days after
receiving such notice, file with the United
States Court of Appeals for the Ninth Circuit,
or in the United States Court of Appeals for
the District of Columbia, a petition for review
of the action of the Secretary; and
``(B) upon the filing of any petition under
subparagraph (A), shall forthwith transmit
copies of the petition to the Secretary and the
Attorney General of the United States, who
shall represent the Secretary in the
litigation.
``(2) Procedure.--
``(A) In general.--The Secretary shall file
in the court a record of the proceeding on
which the Secretary based the action, as
provided in section 2112 of title 28, United
States Code.
``(B) Objections.--No objection to the action
of the Secretary shall be considered by the
court unless the Department has registered the
objection before the Secretary.
``(3) Disposition.--
``(A) Court proceedings.--
``(i) Jurisdiction of court.--The
court shall have jurisdiction to affirm
or modify the action of the Secretary
or to set the action aside in whole or
in part.
``(ii) Findings of fact.--If
supported by substantial evidence on
the record considered as a whole, the
findings of fact by the Secretary shall
be conclusive.
``(iii) Addition.--The court may
order evidence, in addition to the
evidence submitted for review under
this subsection, to be taken by the
Secretary, and to be made part of the
record.
``(B) Secretary.--
``(i) In general.--The Secretary, by
reason of the additional evidence
referred to in subparagraph (A) and
filed with the court--
``(I) may--
``(aa) modify the
findings of fact of the
Secretary; or
``(bb) make new
findings; and
``(II) shall file--
``(aa) such modified
or new findings; and
``(bb) the
recommendation of the
Secretary, if any, for
the modification or
setting aside of the
original action of the
Secretary.
``(ii) Findings.--The findings
referred to in clause (i)(II)(bb)
shall, with respect to a question of
fact, be considered to be conclusive if
those findings are--
``(I) supported by
substantial evidence on the
record; and
``(II) considered as a whole.
``(4) Finality.--
``(A) In general.--Except as provided in
subparagraph (B), upon the filing of the record
under this subsection with the court--
``(i) the jurisdiction of the court
shall be exclusive; and
``(ii) the judgment of the court
shall be final.
``(B) Review by supreme court.--A judgment
under subparagraph (A) shall be subject to
review by the Supreme Court of the United
States upon writ of certiorari or
certification, as provided in section 1254 of
title 28, United States Code.
``SEC. 819. MONITORING OF COMPLIANCE.
``(a) Enforceable Agreements.--
``(1) In general.--The Director, through binding
contractual agreements with owners or other authorized
entities, shall ensure long-term compliance with the
provisions of this title.
``(2) Measures.--The measures referred to in
paragraph (1) shall provide for--
``(A) to the extent allowable by Federal and
State law, the enforcement of the provisions of
this title by the Department and the Secretary;
and
``(B) remedies for breach of the provisions
referred to in paragraph (1).
``(b) Periodic Monitoring.--
``(1) In general.--Not less frequently than annually,
the Director shall review the activities conducted and
housing assisted under this title to assess compliance
with the requirements of this title.
``(2) Review.--Each review under paragraph (1) shall
include onsite inspection of housing to determine
compliance with applicable requirements.
``(3) Results.--The results of each review under
paragraph (1) shall be--
``(A) included in a performance report of the
Director submitted to the Secretary under
section 820; and
``(B) made available to the public.
``(c) Performance Measures.--The Secretary shall establish
such performance measures as may be necessary to assess
compliance with the requirements of this title.
``SEC. 820. PERFORMANCE REPORTS.
``(a) Requirement.--For each fiscal year, the Director
shall--
``(1) review the progress the Department has made
during that fiscal year in carrying out the housing
plan submitted by the Department under section 803; and
``(2) submit a report to the Secretary (in a form
acceptable to the Secretary) describing the conclusions
of the review.
``(b) Content.--Each report submitted under this section for
a fiscal year shall--
``(1) describe the use of grant amounts provided to
the Department of Hawaiian Home Lands for that fiscal
year;
``(2) assess the relationship of the use referred to
in paragraph (1) to the goals identified in the housing
plan;
``(3) indicate the programmatic accomplishments of
the Department; and
``(4) describe the manner in which the Department
would change its housing plan submitted under section
803 as a result of its experiences.
``(c) Submissions.--The Secretary shall--
``(1) establish a date for submission of each report
under this section;
``(2) review each such report; and
``(3) with respect to each such report, make
recommendations as the Secretary considers appropriate
to carry out the purposes of this title.
``(d) Public Availability.--
``(1) Comments by beneficiaries.--In preparing a
report under this section, the Director shall make the
report publicly available to the beneficiaries of the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et
seq.) and give a sufficient amount of time to permit
those beneficiaries to comment on that report before it
is submitted to the Secretary (in such manner and at
such time as the Director may determine).
``(2) Summary of comments.--The report shall include
a summary of any comments received by the Director from
beneficiaries under paragraph (1) regarding the program
to carry out the housing plan.
``SEC. 821. REVIEW AND AUDIT BY SECRETARY.
``(a) Annual Review.--
``(1) In general.--The Secretary shall, not less
frequently than on an annual basis, make such reviews
and audits as may be necessary or appropriate to
determine whether--
``(A) the Director has--
``(i) carried out eligible activities
under this title in a timely manner;
``(ii) carried out and made
certifications in accordance with the
requirements and the primary objectives
of this title and with other applicable
laws; and
``(iii) a continuing capacity to
carry out the eligible activities in a
timely manner;
``(B) the Director has complied with the
housing plan submitted by the Director under
section 803; and
``(C) the performance reports of the
Department under section 821 are accurate.
``(2) Onsite visits.--Each review conducted under
this section shall, to the extent practicable, include
onsite visits by employees of the Department of Housing
and Urban Development.
``(b) Report by Secretary.--The Secretary shall give the
Department of Hawaiian Home Lands not less than 30 days to
review and comment on a report under this subsection. After
taking into consideration the comments of the Department, the
Secretary may revise the report and shall make the comments of
the Department and the report with any revisions, readily
available to the public not later than 30 days after receipt of
the comments of the Department.
``(c) Effect of Reviews.--The Secretary may make appropriate
adjustments in the amount of annual grants under this title in
accordance with the findings of the Secretary pursuant to
reviews and audits under this section. The Secretary may
adjust, reduce, or withdraw grant amounts, or take other action
as appropriate in accordance with the reviews and audits of the
Secretary under this section, except that grant amounts already
expended on affordable housing activities may not be recaptured
or deducted from future assistance provided to the Department
of Hawaiian Home Lands.
``SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.
``To the extent that the financial transactions of the
Department of Hawaiian Home Lands involving grant amounts under
this title relate to amounts provided under this title, those
transactions may be audited by the Comptroller General of the
United States under such regulations as may be prescribed by
the Comptroller General. The Comptroller General of the United
States shall have access to all books, accounts, records,
reports, files, and other papers, things, or property belonging
to or in use by the Department of Hawaiian Home Lands
pertaining to such financial transactions and necessary to
facilitate the audit.
``SEC. 823. REPORTS TO CONGRESS.
``(a) In General.--Not later than 90 days after the
conclusion of each fiscal year in which assistance under this
title is made available, the Secretary shall submit to Congress
a report that contains--
``(1) a description of the progress made in
accomplishing the objectives of this title;
``(2) a summary of the use of funds available under
this title during the preceding fiscal year; and
``(3) a description of the aggregate outstanding loan
guarantees under section 184A of the Housing and
Community Development Act of 1992.
``(b) Related Reports.--The Secretary may require the
Director to submit to the Secretary such reports and other
information as may be necessary in order for the Secretary to
prepare the report required under subsection (a).
``SEC. 824. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Department
of Housing and Urban Development for grants under this title
such sums as may be necessary for each of fiscal years 2001,
2002, 2003, 2004, and 2005.''.
SEC. 724. LOAN GUARANTEES.
Subtitle E of title I of the Housing and Community
Development Act of 1992 is amended by inserting after section
184 (12 U.S.C. 1715z-13a) the following:
``SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.
``(a) Definitions.--In this section:
``(1) Department of hawaiian home lands.--The term
`Department of Hawaiian Home Lands' means the agency or
department of the government of the State of Hawaii
that is responsible for the administration of the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et
seq.).
``(2) Eligible entity.--The term `eligible entity'
means a Native Hawaiian family, the Department of
Hawaiian Home Lands, the Office of Hawaiian Affairs,
and private nonprofit or private for-profit
organizations experienced in the planning and
development of affordable housing for Native Hawaiians.
``(3) Family.--The term `family' means 1 or more
persons maintaining a household, as the Secretary shall
by regulation provide.
``(4) Guarantee fund.--The term `Guarantee Fund'
means the Native Hawaiian Housing Loan Guarantee Fund
established under subsection (i).
``(5) Hawaiian home lands.--The term `Hawaiian Home
Lands' means lands that--
``(A) have the status of Hawaiian Home Lands
under section 204 of the Hawaiian Homes
Commission Act (42 Stat. 110); or
``(B) are acquired pursuant to that Act.
``(6) Native hawaiian.--The term `Native Hawaiian'
means any individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people,
who, prior to 1778, occupied and exercised
sovereignty in the area that currently
constitutes the State of Hawaii, as evidenced
by--
``(i) genealogical records;
``(ii) verification by kupuna
(elders) or kama'aina (long-term
community residents); or
``(iii) birth records of the State of
Hawaii.
``(7) Office of hawaiian affairs.--The term `Office
of Hawaiian Affairs' means the entity of that name
established under the constitution of the State of
Hawaii.
``(b) Authority.--To provide access to sources of private
financing to Native Hawaiian families who otherwise could not
acquire housing financing because of the unique legal status of
the Hawaiian Home Lands or as a result of a lack of access to
private financial markets, the Secretary may guarantee an
amount not to exceed 100 percent of the unpaid principal and
interest that is due on an eligible loan under subsection (b).
``(c) Eligible Loans.--Under this section, a loan is an
eligible loan if that loan meets the following requirements:
``(1) Eligible borrowers.--The loan is made only to a
borrower who is--
``(A) a Native Hawaiian family;
``(B) the Department of Hawaiian Home Lands;
``(C) the Office of Hawaiian Affairs; or
``(D) a private nonprofit organization
experienced in the planning and development of
affordable housing for Native Hawaiians.
``(2) Eligible housing.--
``(A) In general.--The loan will be used to
construct, acquire, or rehabilitate not more
than 4-family dwellings that are standard
housing and are located on Hawaiian Home Lands
for which a housing plan described in
subparagraph (B) applies.
``(B) Housing plan.--A housing plan described
in this subparagraph is a housing plan that--
``(i) has been submitted and approved
by the Secretary under section 803 of
the Native American Housing Assistance
and Self-Determination Act of 1996; and
``(ii) provides for the use of loan
guarantees under this section to
provide affordable homeownership
housing on Hawaiian Home Lands.
``(3) Security.--The loan may be secured by any
collateral authorized under applicable Federal or State
law.
``(4) Lenders.--
``(A) In general.--The loan shall be made
only by a lender approved by, and meeting
qualifications established by, the Secretary,
including any lender described in subparagraph
(B), except that a loan otherwise insured or
guaranteed by an agency of the Federal
Government or made by the Department of
Hawaiian Home Lands from amounts borrowed from
the United States shall not be eligible for a
guarantee under this section.
``(B) Approval.--The following lenders shall
be considered to be lenders that have been
approved by the Secretary:
``(i) Any mortgagee approved by the
Secretary for participation in the
single family mortgage insurance
program under title II of the National
Housing Act (12 U.S.C.A. 1707 et seq.).
``(ii) Any lender that makes housing
loans under chapter 37 of title 38,
United States Code, that are
automatically guaranteed under section
3702(d) of title 38, United States
Code.
``(iii) Any lender approved by the
Secretary of Agriculture to make
guaranteed loans for single family
housing under the Housing Act of 1949
(42 U.S.C.A. 1441 et seq.).
``(iv) Any other lender that is
supervised, approved, regulated, or
insured by any agency of the Federal
Government.
``(5) Terms.--The loan shall--
``(A) be made for a term not exceeding 30
years;
``(B) bear interest (exclusive of the
guarantee fee under subsection (d) and service
charges, if any) at a rate agreed upon by the
borrower and the lender and determined by the
Secretary to be reasonable, but not to exceed
the rate generally charged in the area (as
determined by the Secretary) for home mortgage
loans not guaranteed or insured by any agency
or instrumentality of the Federal Government;
``(C) involve a principal obligation not
exceeding--
``(i) 97.75 percent of the appraised
value of the property as of the date
the loan is accepted for guarantee (or
98.75 percent if the value of the
property is $50,000 or less); or
``(ii) the amount approved by the
Secretary under this section; and
``(D) involve a payment on account of the
property--
``(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 2001,
2002, 2003, 2004, and 2005 with an aggregate
outstanding principal amount not exceeding
$100,000,000 for each such fiscal year.
``(6) Liabilities.--All liabilities and obligations
of the assets credited to the Guarantee Fund under
paragraph (2)(A) shall be liabilities and obligations
of the Guarantee Fund.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to the Guarantee Fund to
carry out this section such sums as may be necessary
for each of fiscal years 2001, 2002, 2003, 2004, and
2005.
``(k) Requirements for Standard Housing.--
``(1) In general.--The Secretary shall, by
regulation, establish housing safety and quality
standards to be applied for use under this section.
``(2) Standards.--The standards referred to in
paragraph (1) shall--
``(A) provide sufficient flexibility to
permit the use of various designs and materials
in housing acquired with loans guaranteed under
this section; and
``(B) require each dwelling unit in any
housing acquired in the manner described in
subparagraph (A) to--
``(i) be decent, safe, sanitary, and
modest in size and design;
``(ii) conform with applicable
general construction standards for the
region in which the housing is located;
``(iii) contain a plumbing system
that--
``(I) uses a properly
installed system of piping;
``(II) includes a kitchen
sink and a partitional bathroom
with lavatory, toilet, and bath
or shower; and
``(III) uses water supply,
plumbing, and sewage disposal
systems that conform to any
minimum standards established
by the applicable county or
State;
``(iv) contain an electrical system
using wiring and equipment properly
installed to safely supply electrical
energy for adequate lighting and for
operation of appliances that conforms
to any appropriate county, State, or
national code;
``(v) be not less than the size
provided under the applicable locally
adopted standards for size of dwelling
units, except that the Secretary, upon
request of the Department of Hawaiian
Home Lands may waive the size
requirements under this paragraph; and
``(vi) conform with the energy
performance requirements for new
construction established by the
Secretary under section 526(a) of the
National Housing Act (12 U.S.C.A.
1735f-4), unless the Secretary
determines that the requirements are
not applicable.
``(l) Applicability of Civil Rights Statutes.--To the extent
that the requirements of title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.) or of the Fair Housing Act (42
U.S.C.A. 3601 et seq.) apply to a guarantee provided under this
subsection, nothing in the requirements concerning
discrimination on the basis of race shall be construed to
prevent the provision of the guarantee to an eligible entity on
the basis that the entity serves Native Hawaiian families or is
a Native Hawaiian family.''.
Page 166, in line 10, strike the dash and all that follows
through ``general.'' in line 11.
Page 166, strike lines 17 through 25.
Strike line 25 on page 173, and all that follows through line
2 on page 174, and insert the following:
``(1) to protect the quality, durability, safety, and
affordability of manufactured homes;''
Page 174, strike lines 11 through 13 and insert the
following:
``(5) to protect residents of manufactured homes with
respect to personal injuries and the amount of
insurance costs and property damages in manufactured
housing, consistent with the other purposes of this
section;''.
Page 176, line 18, before the semicolon insert ``, including
the inspection of homes in the plant''.
Page 176, line 21, strike both commas.
Strike line 25 on page 176 and all that follows through
``means'' in line 1 on page 177, and insert the following:
``(21) `monitoring' means
Page 177, lines 5 through 7, strike ``recommended by the
consensus committee and promulgated in accordance with'' and
insert ``promulgated under this title, giving due consideration
to the recommendations of the consensus committee as provided
in''.
Page 177, line 10, strike ``; and'' and insert ``.'.''.
Page 177, strike lines 11 through 13.
Page 179, line 19, strike ``appoint'' and insert
``recommend''.
Page 182, lines 12 and 13, strike ``, subject to approval by
the Secretary,'' and insert ``by the Secretary, after
consideration of the recommendations made''.
Page 182, line 14, insert a comma after ``organization''.
Page 182, strike lines 22 through 25 and insert the
following:
``(C) Disapproval.--The Secretary shall
state, in writing, the reasons for failing to
appoint any individual recommended under
paragraph (2)(A)(ii)(I).
Page 184, lines 1 and 2, strike ``administering organization
in its appointments'' and insert ``Secretary''.
Page 188, line 20, before the period insert ``in accordance
with section 553 of title 5, United States Code''.
Page 188, line 23, after ``standard'' insert ``in accordance
with such section 553''.
Page 189, line 22, strike ``7'' and insert ``30''.
Page 193, line 5, after ``regulations'' insert ``and revision
to existing regulations''.
Page 195, strike lines 16 through 22 and insert the
following:
``(5) Authority to act and emergency.--If the
Secretary determines, in writing, that such action is
necessary to address an issue on which the Secretary
determines that the consensus committee has not made a
timely recommendation following a request by the
Secretary, or in order to respond to an emergency which
jeopardizes the public health or safety, the Secretary
Page 196, line 3, strike ``emergency''.
Page 196, line 5, after ``issues'' insert ``the order after
notice and an opportunity for public comment in accordance with
section 553 of title 5, United States Code,''.
Page 196, line 12, strike ``of'' and insert ``or''.
Page 196, line 19, strike ``1104(a)(3)'' and insert
``604(a)(3)''.
Page 199, line 18, after ``shall'' insert ``to the maximum
extent possible, taking into account the factors described in
section 604(e),''.
Page 200, after line 9, insert the following:
``(4) Issuance.--The model manufactured home
installation standards shall be issued after notice and
an opportunity for public comment in accordance with
section 553 of title 5, United States Code.
Strike ``, except that'' in line 20 on page 201, and all that
follows through line 2 on page 202, and insert a period.
Page 206, after line 3, insert the following new section:
SEC. 1108. PROHIBITED ACTS.
Section 610(a) (42 U.S.C. 5409(a)) is amended--
(1) in paragraph (5), by striking ``or'' at the end;
(2) in paragraph (6), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(7) after the expiration of the period specified in
section 605(c)(2)(B), fail to comply with the
requirements for the installation program required by
section 605 in any State that has not adopted and
implemented a State installation program.''.
Page 207, line 10, strike ``and''.
Page 207, after line 13, insert the following:
``(F) implementing sections 605 and 623; and
Page 207, strike lines 19 through 23 and insert the
following:
``(b) Contractors.--When using fees under this section, the
Secretary shall ensure that no fewer than 3 separate contracts
and 3 separate and independent contractors are retained to
carry out monitoring and inspection work and any other work
that may be delegated to a contractor under this title; except
that the required minimum number of separate contracts and
separate and independent contractors shall increase to 4
simultaneous with the latter of--
``(1) the issuance by the Secretary of a request for
proposals for the implementation of installation
programs, and
``(2) the issuance by the Secretary of a request for
proposals for the implementation of dispute resolution
program,
as provided in this title. The Secretary shall also ensure that
no conflict of interest arises from the award of any such
contracts.''.
Page 208, line 17, strike the quotation marks and the last
period.
Page 208, after line 17, insert the following:
``(3) Payments to states.--On and after the effective
date of the Manufactured Housing Improvement Act, the
Secretary shall continue to fund the States having
approved State plans in amounts which are not less than
the allocated amounts based on the fee distribution
system in effect on the day before the effective date
of such Act.''.
Page 208, lines 20 and 21, strike ``5(b)'' each place such
term appears and insert ``1105(b)''.
Page 209, line 19, after the period insert the following:
``The order establishing the dispute resolution program shall
be issued after notice and an opportunity for public comment in
accordance with section 553 of title 5, United States Code.''.
Page 210, strike lines 7 through 11 and insert
``paragraph.''.
Page 211, line 16, after ``awarded'' insert ``after April 6,
2000,''.
----------
2. An Amendment To Be Offered by Representative Coburn of Oklahoma, or
a Designee, Debatable for 20 Minutes
Strike line 6 on page 27 and all that follows through line 13
on page 31.
Strike line 3 on page 73 and all that follows through line 16
on page 76.
Strike line 13 on page 91 and all that follows through line
21 on page 93.
----------
3. An Amendment To Be Offered by Representative Rush of Illinois, or a
Designee, Debatable for 10 Minutes
Page 27, line 14, after ``teachers'' insert ``, nurses,''.
Page 29, line 1, strike ``or (bb)'' and insert ``(bb) a nurse
(as such term is defined by the Secretary, except that such
term shall include nurses employed in hospitals and nursing
homes), or (cc)''.
Page 30, line 3, strike ``or''.
Page 30, after line 3, insert the following:
``(II) in the case of a
mortgage of a mortgagor
described in clause (i)(I)(bb),
the jurisdiction in which the
hospital, nursing home, or
other place of work of the
nurse is located; or
Page 30, line 4, strike ``(II)'' and insert ``(III)''.
Page 30, line 6, strike ``(i)(I)(bb)'' and insert
``(i)(I)(cc)''.
Page 73, line 16, after ``of,'' insert ``and nurses (which
shall include nurses employed in hospitals and nursing
homes)''.
----------
4. An Amendment To Be Offered by Representative Coburn of Oklahoma, or
a Designee, Debatable for 10 Minutes
Page 28, line 19, after ``(I)'' insert ``(aa)''.
Page 29, line 1, strike ``or (bb)'' and insert ``(bb) is
employed on a full-time basis as''.
Page 29, line 8, before the semicolon insert the following:
, (cc) is employed on a full-
time basis by a tax-exempt
authority, (dd) is employed on
a full-time basis by the
Federal Government, (ee) is a
member of an organization under
the jurisdiction of the
National Labor Relations Board,
(ff) is employed on a full-time
basis by, or has a financial
interest in, a small business,
or (gg) qualifies for the child
care tax credit under section
24 of the Internal Revenue Code
of 1986
Page 73, line 3, strike ``employees'' and insert
``residents''.
Page 73, strike lines 13 through 23 and insert the following:
``(24) provision of direct assistance to facilitate
and expand homeownership among residents of the
metropolitan city or urban county receiving grant
amounts under this title pursuant to section 106(b) or
the unit of general local government receiving such
grant amounts pursuant to section 106(d), except that--
Page 73, line 25, strike ``employees'' and insert
``residents''.
Page 74, lines 11 and 12, strike ``employees'' and insert
``residents''.
Page 75, lines 2 and 3, strike ``employees'' and insert
``residents''.
Page 92, line 8, after ``(B)(i)'' insert ``(I)''.
Page 92, line 15, strike ``and'' and insert ``or''.
Page 92, after line 15, insert the following:
``(II)(aa) is employed on a full-time basis
by a tax-exempt authority, is employed on a
full-time basis by the Federal Government, is a
member of an organization under the
jurisdiction of the National Labor Relations
Board, is employed on a full-time basis by, or
has a financial interest in, a small business,
or is qualified for the child care tax credit
under section 24 of the Internal Revenue Code
of 1986, and (bb) is a resident of the
participating jurisdiction that is investing
funds made available under this title to
support homeownership of the residence; and
----------
5. An Amendment To Be Offered by Representative Andrews of New Jersey,
or a Designee, Debatable for 10 Minutes
Page 53, after line 25, insert the following new section:
SEC. 209. ENERGY EFFICIENCY CERTIFICATIONS.
Section 526(a) of the National Housing Act (12 U.S.C. 1735f-
4(a)) is amended--
(1) by inserting ``(1)'' after ``(a)''; and
(2) by adding at the end the following new paragraph:
``(2) The Secretary shall require, with respect to any
single- or multifamily residential housing subject to a
mortgage insured under this Act, that any approval or
certification of the housing for meeting any energy efficiency
or conservation criteria, standards, or requirements pursuant
to this title and any approval or certification required
pursuant to this title with respect to energy conserving
improvements or any solar energy system, shall be conducted
only by a home energy rating system provider who has been
accredited to conduct such ratings by the Home Energy Ratings
System Council, the Residential Energy Services Network, or
such other appropriate national organization, as the Secretary
may provide.''.
----------
6. An Amendment To Be Offered by Representative Weygand of Rhode
Island, or a Designee, Debatable for 10 Minutes
Page 59, after line 23, insert the following new section:
SEC. 212. PROPERTY IMPROVEMENT LOAN LIMIT FOR SINGLE-FAMILY HOMES.
Section 2(b)(1)(A)(i) of the National Housing Act (12 U.S.C.
1703(b)(1)(A)(i)) is amended by striking ``$25,000'' and
inserting ``$32,500''.
----------
7. An Amendment To Be Offered by Representative Waters of California,
or a Designee, Debatable for 20 Minutes
Page 73, line 4, strike ``(a) Eligible Activities.--
Page 74, strike lines 9 through 24 and insert the
following:
``(B) such assistance may only be provided on behalf
of low- and moderate-income persons;
Page 76, strike lines 7 through 16.
----------
8. An Amendment To Be Offered by Representative Shays of Connecticut,
or Representative Nadler of New York, or a Designee, Debatable for 20
Minutes
Page 78, line 18, strike ``$260,000,000'' and insert
``$292,000,000''.
----------
9. An Amemdment To Be Offered by Representative Paul of Texas or
Representative Kilpatrick of Michigan, or a Designee, Debatable for 10
Minutes
Page 78, after line 20, insert the following new section:
SEC. 408. PROHIBITION ON USE OF AMOUNTS TO ACQUIRE CHURCH PROPERTY.
Section 105 of the Housing and Community Development Act of
1974 (42 U.S.C. 5305) is amended by adding at the end the
following new subsection:
``(i) Prohibition on Use of Assistance to Acquire Church
Property.--Notwithstanding any other provision of this section,
no amount from a grant under section 106 may be used to carry
out or assist any activity if such activity, or the project for
which such activity is to be conducted, involves acquisition of
real property owned by a church that is exempt from tax under
section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C.
501(a)), unless the governing body of the church has previously
consented to such acquisition.''.
----------
10. An Amendment To Be Offered by Representative Traficant of Ohio, or
a Designee, Debatable for 10 Minutes
At the end of title IV, add the following new section:
SEC. 408. CDBG SPECIAL PURPOSE GRANTS.
Section 107(a)(1) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5307(a)(1)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``$60,000,000'' and inserting
``$95,000,000''; and
(B) by striking ``subsection (b)'' and
inserting ``this section''; and
(2) by striking subparagraph (G) and inserting the
following new subparagraph:
``(G) $35,000,000 shall be available in
fiscal year 2001 for a grant to the City of
Youngstown, Ohio, for the site acquisition,
planning, architectural design, and
construction of a convocation and community
center in such city;''.
----------
11. An Amendment To Be Offered by Representative Souder of Indiana, or
a Designee, Debatable for 20 Minutes
Page 121, after line 11, insert the following new section:
SEC. 609. GRANT ELIGIBILITY OF COMMUNITY ORGANIZATIONS.
(a) Eligibility.--For any program administered by the
Secretary of Housing and Urban Development under which
financial assistance is provided by the Secretary to
nongovernmental organizations or to a State or local government
for provision to nongovernmental organizations, religious
organizations shall be eligible, on the same basis as other
nongovernmental organizations, to receive the financial
assistance under the program from the Secretary or such State
and local governments, as the case may be, as long as the
program is implemented in a manner consistent with the
Establishment Clause of the first amendment to the
Constitution. Neither the Secretary nor a State or local
government to which such financial assistance is provided shall
discriminate against an organization that receives financial
assistance, or applies to receive assistance, under a program
administered by the Secretary, on the basis that the
organization has a religious character.
(b) Religious Character and Independence.--
(1) In general.--A religious organization that
receives assistance under a program described in
subsection (a) shall retain its religious character and
control over the definition, development, practice, and
expression of its religious beliefs.
(2) Additional safeguards.--Neither the Federal
Government nor a State or local government shall
require a religious organization--
(A) to alter its form of internal governance;
or
(B) to remove religious art, icons,
scripture, or other symbols;
in order to be eligible to provide assistance under a
program described in subsection (a).
(3) Employment practices.--A religious organization's
exemption provided under section 702 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-1) regarding
employment practices shall not be affected by its
participation in, or receipt of funds from, programs
described in subsection (a).
(c) Limitations on Use of Funds for Certain Purposes.--No
funds provided directly to a religious organization to provide
assistance under any program described in subsection (a) shall
be expended for sectarian worship, instruction, or
proselytization.
(d) Fiscal Accountability.--
(1) In general.--Except as provided in paragraph (2),
any religious organization providing assistance under
any program described in subsection (a) shall be
subject to the same regulations as other
nongovernmental organizations to account in accord with
generally accepted accounting principles for the use of
such funds provided under such program.
(2) Limited audit.--Such organization shall segregate
government funds provided under such program into a
separate account. Only the government funds shall be
subject to audit by the government.
(e) Treatment of Eligible Entities and Other Intermediate
Organizations.--If an eligible entity or other organization
(referred to in this subsection as an ``intermediate
organization''), acting under a contract, or grant or other
agreement, with the Federal Government or a State or local
government, is given the authority under the contract or
agreement to select nongovernmental organizations to provide
assistance under the programs described in subsection (a), the
intermediate organization shall have the same duties under this
section as the government.
(f) Definitions.--For purposes of this section:
(1) Financial assistance.--The term ``financial
assistance'' means any grant, loan, subsidy, guarantee,
or other financial assistance, except that such term
does not include any mortgage insurance provided under
a program administered by the Secretary.
(2) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
----------
12. An Amendment To Be Offered by Representative Gary Miller of
California, or a Designee, Debatable for 10 Minutes
At the end of the bill add the following new title:
TITLE XII--PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION PROGRAM
SEC. 1201. ELIGIBLE PUBLIC HOUSING AGENCIES.
Section 5125 of the Anti-Drug Abuse Act of 1988 (42 U.S.C.
11904) is amended--
(1) in subsection (b)--
(A) in paragraph (2)(B), by inserting ``or
(4)'' before the period at the end;
(B) by redesignating paragraph (4) as
paragraph (5); and
(C) by inserting after paragraph (3) the
following new paragraph:
``(4) Effective pha's.--The class established under
this paragraph is the class of public housing agencies
that demonstrate, to the satisfaction of the Secretary,
that--
``(A) the agency, in cooperation with local
law enforcement agencies, has largely
eliminated drug and crime problems in the
public housing project or projects for which
the assistance will be used;
``(B) the agency needs assistance under this
chapter to sustain the low incidence of crime
and drug problems in and around such public
housing; and
``(C) such assistance will be used to expand
police services in and around such public
housing.''; and
(2) in subsection (c)(1), by inserting before the
semicolon the following: ``except that this paragraph
shall not apply in the case of agencies eligible for
assistance under this chapter pursuant to subsection
(b)(4)''.