[104th Congress Public Law 330]
[From the U.S. Government Printing Office]


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[DOCID: f:publ330.104]


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  NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996

[[Page 110 STAT. 4016]]

Public Law 104-330
104th Congress

                                 An Act


 
    To provide Federal assistance for Indian tribes in a manner that 
     recognizes the right of tribal self-governance, and for other 
            purposes. <<NOTE: Oct. 26, 1996 -  [H.R. 3219]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Native American 
Housing Assistance and Self-Determination Act of 1996.>> 

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) <<NOTE: 25 USC 4101 note.>>  Short Title.--This Act may be cited 
as the ``Native 
American Housing Assistance and Self-Determination Act of 1996''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Congressional findings.
Sec. 3. Administration through Office of Native American Programs.
Sec. 4. Definitions.

              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

Sec. 101. Block grants.
Sec. 102. Indian housing plans.
Sec. 103. Review of plans.
Sec. 104. Treatment of program income and labor standards.
Sec. 105. Environmental review.
Sec. 106. Regulations.
Sec. 107. Effective date.
Sec. 108. Authorization of appropriations.

                 TITLE II--AFFORDABLE HOUSING ACTIVITIES

Sec. 201. National objectives and eligible families.
Sec. 202. Eligible affordable housing activities.
Sec. 203. Program requirements.
Sec. 204. Types of investments.
Sec. 205. Low-income requirement and income targeting.
Sec. 206. Certification of compliance with subsidy layering 
           requirements.
Sec. 207. Lease requirements and tenant selection.
Sec. 208. Availability of records.
Sec. 209. Repayment.
Sec. 210. Continued use of amounts for affordable housing.

                 TITLE III--ALLOCATION OF GRANT AMOUNTS

Sec. 301. Annual allocation.
Sec. 302. Allocation formula.

                TITLE IV--COMPLIANCE, AUDITS, AND REPORTS

Sec. 401. Remedies for noncompliance.
Sec. 402. Replacement of recipient.
Sec. 403. Monitoring of compliance.
Sec. 404. Performance reports.
Sec. 405. Review and audit by Secretary.
Sec. 406. GAO audits.
Sec. 407. Reports to Congress.

TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER INCORPORATED 
                                PROGRAMS

Sec. 501. Repeal of provisions relating to Indian housing assistance 
           under United States Housing Act of 1937.

[[Page 110 STAT. 4017]]

Sec. 502. Termination of Indian housing assistance under United States 
           Housing Act of 1937.
Sec. 503. Termination of new commitments for rental assistance.
Sec. 504. Termination of youthbuild program assistance.
Sec. 505. Termination of HOME program assistance.
Sec. 506. Termination of housing assistance for the homeless.
Sec. 507. Savings provision.
Sec. 508. Effective date.

TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING ACTIVITIES

Sec. 601. Authority and requirements.
Sec. 602. Security and repayment.
Sec. 603. Payment of interest.
Sec. 604. Training and information.
Sec. 605. Limitations on amount of guarantees.
Sec. 606. Effective date.

        TITLE VII--OTHER HOUSING ASSISTANCE FOR NATIVE AMERICANS

Sec. 701. Loan guarantees for Indian housing.
Sec. 702. 50-year leasehold interest in trust or restricted lands for 
           housing 
           purposes.
Sec. 703. Training and technical assistance.
Sec. 704. Public and Assisted Housing Drug Elimination Act of 1990.
Sec. 705. Effective date.

SEC. 2. <<NOTE: 25 USC 4101.>>  CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) the Federal Government has a responsibility to promote 
        the general welfare of the Nation--
                    (A) by using Federal resources to aid families and 
                individuals seeking affordable homes in safe and healthy 
                environments and, in particular, assisting responsible, 
                deserving citizens who cannot provide fully for 
                themselves because of temporary circumstances or factors 
                beyond their control;
                    (B) by working to ensure a thriving national economy 
                and a strong private housing market; and
                    (C) by developing effective partnerships among the 
                Federal Government, State, tribal, and local 
                governments, and private entities that allow government 
                to accept responsibility for fostering the development 
                of a healthy marketplace and allow families to prosper 
                without government involvement in their day-to-day 
                activities;
            (2) there exists a unique relationship between the 
        Government of the United States and the governments of Indian 
        tribes and a unique Federal responsibility to Indian people;
            (3) the Constitution of the United States invests the 
        Congress with plenary power over the field of Indian affairs, 
        and through treaties, statutes, and historical relations with 
        Indian tribes, the United States has undertaken a unique trust 
        responsibility to protect and support Indian tribes and Indian 
        people;
            (4) the Congress, through treaties, statutes, and the 
        general course of dealing with Indian tribes, has assumed a 
        trust responsibility for the protection and preservation of 
        Indian tribes and for working with tribes and their members to 
        improve their housing conditions and socioeconomic status so 
        that they are able to take greater responsibility for their own 
        economic condition;
            (5) providing affordable homes in safe and healthy 
        environments is an essential element in the special role of the 
        United

[[Page 110 STAT. 4018]]

        States in helping tribes and their members to improve their 
        housing conditions and socioeconomic status;
            (6) the need for affordable homes in safe and healthy 
        environments on Indian reservations, in Indian communities, and 
        in Native Alaskan villages is acute and the Federal Government 
        should work not only to provide housing assistance, but also, to 
        the extent practicable, to assist in the development of private 
        housing finance mechanisms on Indian lands to achieve the goals 
        of economic self-sufficiency and self-determination for tribes 
        and their members; and
            (7) Federal assistance to meet these responsibilities should 
        be provided in a manner that recognizes the right of Indian 
        self-determination and tribal self-governance by making such 
        assistance available directly to the Indian tribes or tribally 
        designated entities under authorities similar to those accorded 
        Indian tribes in Public Law 93-638 (25 U.S.C. 450 et seq.).

SEC. 3. <<NOTE: 25 USC 4102.>>  ADMINISTRATION THROUGH OFFICE OF NATIVE 
            AMERICAN PROGRAMS.

    The Secretary of Housing and Urban Development shall carry out this 
Act through the Office of Native American Programs of the Department of 
Housing and Urban Development.

SEC. 4. <<NOTE: 25 USC 4103.>>  DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Adjusted income.--The term ``adjusted income'' means the 
        annual income that remains after excluding the following 
        amounts:
                    (A) Youths, students, and persons with dis-
                abilities.--$480 for each member of the family residing 
                in the household (other than the head of the household 
                or the spouse of the head of the household)--
                          (i) who is under 18 years of age; or
                          (ii) who is--
                                    (I) 18 years of age or older; and
                                    (II) a person with disabilities or a 
                                full-time student.
                    (B) Elderly and disabled families.--$400 for an 
                elderly or disabled family.
                    (C) Medical and attendant expenses.--The amount by 
                which 3 percent of the annual income of the family is 
                exceeded by the aggregate of--
                          (i) medical expenses, in the case of an 
                      elderly or disabled family; and
                          (ii) reasonable attendant care and auxiliary 
                      apparatus expenses for each family member who is a 
                      person with disabilities, to the extent necessary 
                      to enable any member of the family (including a 
                      member who is a person with disabilities) to be 
                      employed.
                    (D) Child care expenses.--Child care expenses, to 
                the extent necessary to enable another member of the 
                family to be employed or to further his or her 
                education.
                    (E) Earned income of minors.--The amount of any 
                earned income of any member of the family who is less 
                than 18 years of age.
                    (F) Travel expenses.--Excessive travel expenses, not 
                to exceed $25 per family per week, for employment- or 
                education-related travel.

[[Page 110 STAT. 4019]]

                    (G) Other amounts.--Such other amounts as may be 
                provided in the Indian housing plan for an Indian tribe.
            (2) Affordable housing.--The term ``affordable housing'' 
        means housing that complies with the requirements for 
        affordable housing under title II. The term includes permanent 
        housing for homeless persons who are persons with disabilities, 
        transitional housing, and single room occupancy housing.
            (3) Drug-related criminal activity.--The term ``drug-related 
        criminal activity'' means the illegal manufacture, sale, 
        distribution, use, or possession with intent to manufacture, 
        sell, distribute, or use, of a controlled substance (as such 
        term is defined in section 102 of the Controlled Substances 
        Act).
            (4) Elderly families and near-elderly families.--The terms 
        ``elderly family'' and ``near-elderly family'' mean a family 
        whose head (or his or her spouse), or whose sole member, is an 
        elderly person or a near-elderly person, respectively. Such 
        terms include 2 or more elderly persons or near-elderly persons 
        living together, and 1 or more such persons living with 1 or 
        more persons determined under the Indian housing plan for the 
        agency to be essential to their care or well-being.
            (5) Elderly person.--The term ``elderly person'' means a 
        person who is at least 62 years of age.
            (6) Family.--The term ``family'' includes a family with or 
        without children, an elderly family, a near-elderly family, a 
        disabled family, and a single person.
            (7) Grant beneficiary.--The term ``grant beneficiary'' means 
        the Indian tribe or tribes on behalf of which a grant is made 
        under this Act to a recipient.
            (8) Income.--The term ``income'' means income from all 
        sources of each member of the household, as determined in 
        accordance with criteria prescribed by the Secretary, except 
        that the following amounts may not be considered as income under 
        this paragraph:
                    (A) Any amounts not actually received by the family.
                    (B) Any amounts that would be eligible for exclusion 
                under section 1613(a)(7) of the Social Security Act.
            (9) Indian.--The term ``Indian'' means any person who is a 
        member of an Indian tribe.
            (10) Indian area.--The term ``Indian area'' means the area 
        within which a tribally designated housing entity is authorized 
        by one or more Indian tribes to provide assistance under this 
        Act for affordable housing.
            (11) Indian housing plan.--The term ``Indian housing plan'' 
        means a plan under section 102.
            (12) Indian tribe.--
                    (A) In general.--The term ``Indian tribe'' means a 
                tribe that is a federally recognized tribe or a State 
                recognized tribe.
                    (B) Federally recognized tribe.--The term 
                ``federally recognized tribe'' means any Indian tribe, 
                band, nation, or other organized group or community of 
                Indians, 
                including any Alaska Native village or regional or 
                village corporation as defined in or established 
                pursuant to the Alaska Native Claims Settlement Act, 
                that is recognized as eligible for the special programs 
                and services provided by the United States to Indians 
                because of their status

[[Page 110 STAT. 4020]]

                as Indians pursuant to the Indian Self-Determination and 
                Education Assistance Act of 1975.
                    (C) State recognized tribe.--
                          (i) In general.--The term ``State recognized 
                      tribe'' means any tribe, band, nation, pueblo, 
                      village, or community--
                                    (I) that has been recognized as an 
                                Indian tribe by any State; and
                                    (II) for which an Indian Housing 
                                Authority has, before the effective date 
                                under section 107, entered into a 
                                contract with the Secretary pursuant to 
                                the United States Housing Act of 1937 
                                for housing for Indian families and has 
                                received funding pursuant to such 
                                contract within the 5-year period ending 
                                upon such effective date.
                          (ii) Conditions.--Notwithstanding clause (i)--
                                    (I) the allocation formula under 
                                section 302 shall be determined for a 
                                State recognized tribe under tribal 
                                membership eligibility criteria in 
                                existence on the date of the enactment 
                                of this Act; and
                                    (II) nothing in this paragraph shall 
                                be construed to confer upon a State 
                                recognized tribe any rights, privileges, 
                                responsibilities, or obligations 
                                otherwise accorded groups recognized as 
                                Indian tribes by the United States for 
                                other purposes.
            (13) Low-income family.--The term ``low-income family'' 
        means a family whose income does not exceed 80 percent of the 
        median income for the area, as determined by the Secretary with 
        adjustments for smaller and larger families, except that the 
        Secretary may, for purposes of this paragraph, establish income 
        ceilings higher or lower than 80 percent of the median for the 
        area on the basis of the findings of the Secretary or the agency 
        that such variations are necessary because of prevailing levels 
        of construction costs or unusually high or low family incomes.
            (14) Median income.--The term ``median income'' means, with 
        respect to an area that is an Indian area, the greater of--
                    (A) the median income for the Indian area, which the 
                Secretary shall determine; or
                    (B) the median income for the United States.
            (15) Near-elderly person.--The term ``near-elderly person'' 
        means a person who is at least 55 years of age and less than 62 
        years of age.
            (16) Nonprofit.--The term ``nonprofit'' means, with respect 
        to an organization, association, corporation, or other entity, 
        that no part of the net earnings of the entity inures to the 
        benefit of any member, founder, contributor, or individual.
            (17) Person with disabilities.--The term ``person with 
        disabilities'' means a person who--
                    (A) has a disability as defined in section 223 of 
                the Social Security Act;
                    (B) is determined, pursuant to regulations issued by 
                the Secretary, to have a physical, mental, or emotional 
                impairment which--

[[Page 110 STAT. 4021]]

                          (i) is expected to be of long-continued and 
                      indefinite duration;
                          (ii) substantially impedes his or her ability 
                      to live independently; and
                          (iii) is of such a nature that such ability 
                      could be improved by more suitable housing 
                      conditions; or
                    (C) has a developmental disability as defined in 
                section 102 of the Developmental Disabilities Assistance 
                and Bill of Rights Act.
        Such term shall not exclude persons who have the disease of 
        acquired immunodeficiency syndrome or any conditions 
        arising from the etiologic agent for acquired immunodeficiency 
        syndrome. Notwithstanding any other provision of law, no 
        individual shall be considered a person with disabilities, for 
        purposes of eligibility for housing assisted under this Act, 
        solely on the basis of any drug or alcohol dependence. The 
        Secretary shall consult with other appropriate Federal agencies 
        to implement the preceding sentence.
            (18) Recipient.--The term ``recipient'' means an Indian 
        tribe or the entity for one or more Indian tribes that is 
        authorized to receive grant amounts under this Act on behalf of 
        the tribe or tribes.
            (19) Secretary.--Except as otherwise specifically provided 
        in this Act, the term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
            (20) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States and Indian tribes.
            (21) Tribally designated housing entity.--The terms 
        ``tribally designated housing entity'' and ``housing entity'' 
        have the following meaning:
                    (A) Existing iha's.--With respect to any Indian 
                tribe that has not taken action under subparagraph (B), 
                and for which an Indian housing authority--
                          (i) was established for purposes of the United 
                      States Housing Act of 1937 before the date of the 
                      enactment of this Act that meets the requirements 
                      under the United States Housing Act of 1937,
                          (ii) is acting upon such date of enactment as 
                      the Indian housing authority for the tribe, and
                          (iii) is not an Indian tribe for purposes of 
                      this Act,
                the terms mean such Indian housing authority.
                    (B) Other entities.--With respect to any Indian 
                tribe that, pursuant to this Act, authorizes an entity 
                other than the tribal government to receive grant 
                amounts and provide assistance under this Act for 
                affordable housing for Indians, which entity is 
                established--
                          (i) by exercise of the power of self-
                      government of one or more Indian tribes 
                      independent of State 
                      law, or
                          (ii) by operation of State law providing 
                      specifically for housing authorities or housing 
                      entities for Indians,

[[Page 110 STAT. 4022]]

                      including regional housing authorities in the 
                      State of Alaska,
                the terms mean such entity.
                    (C) Establishment.--A tribally designated housing 
                entity may be authorized or established by one or more 
                Indian tribes to act on behalf of each such tribe 
                authorizing or establishing the housing entity.

              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

SEC. 101. <<NOTE: 25 USC 4111.>>  BLOCK GRANTS.

    (a) Authority.--For each fiscal year, the Secretary shall (to the 
extent amounts are made available to carry out this Act) make grants 
under this section on behalf of Indian tribes to carry out affordable 
housing activities. Under such a grant on behalf of an Indian tribe, the 
Secretary shall provide the grant amounts for the tribe directly to the 
recipient for the tribe.
    (b) Plan Requirement.--
            (1) In general.--The Secretary may make a grant under this 
        Act on behalf of an Indian tribe for a fiscal year 
        only if--
                    (A) the Indian tribe has submitted to the Secretary 
                an Indian housing plan for such fiscal year under 
                section 102; and
                    (B) the plan has been determined under section 103 
                to comply with the requirements of section 102.
            (2) Waiver.--The Secretary may waive the applicability of 
        the requirements under paragraph (1), in whole or in part, if 
        the Secretary finds that an Indian tribe has not complied or 
        cannot comply with such requirements due to circumstances beyond 
        the control of the tribe.

    (c) Local Cooperation Agreement.--The Secretary may not make any 
grant under this Act on behalf of an Indian tribe unless the governing 
body of the locality within which any affordable housing to be assisted 
with the grant amounts will be situated has entered into an agreement 
with the recipient for the tribe providing for local cooperation 
required by the Secretary pursuant to this Act.
    (d) Exemption From Taxation.--A grant recipient for an Indian tribe 
may receive a block grant under this Act only if--
            (1) the affordable housing assisted with grant amounts 
        received by the recipient (exclusive of any portions not 
        assisted with amounts provided under this Act) is exempt from 
        all real and personal property taxes levied or imposed by any 
        State, tribe, city, county, or other political subdivision; and
            (2) the recipient makes annual payments of user fees to 
        compensate such governments for the costs of providing 
        governmental services, including police and fire protection, 
        roads, water and sewerage systems, utilities systems and related 
        facilities, or payments in lieu of taxes to such taxing 
        authority, in an amount equal to the greater of $150 per 
        dwelling unit or 10 percent of the difference between the 
        shelter rent and the utility cost, or such lesser amount as--
                    (A) is prescribed by State, tribal, or local law;

[[Page 110 STAT. 4023]]

                    (B) is agreed to by the local governing body in the 
                agreement under subsection (c); or
                    (C) the recipient and the local governing body agree 
                that such user fees or payments in lieu of taxes shall 
                not be made.

    (e) Effect of Failure To Exempt From Taxation.--Notwithstanding 
subsection (d), a grant recipient that does not comply with the 
requirements under such subsection may receive a block grant under this 
Act, but only if the tribe, State, city, county, or other political 
subdivision in which the affordable housing development is located 
contributes, in the form of cash or tax remission, the amount by which 
the taxes paid with respect to the development exceed the amounts 
prescribed in subsection (d)(2).
    (f) Amount.--Except as otherwise provided under this Act, the amount 
of a grant under this section to a recipient for a fiscal year shall 
be--
            (1) in the case of a recipient whose grant beneficiary is a 
        single Indian tribe, the amount of the allocation under section 
        301 for the Indian tribe; and
            (2) in the case of a recipient whose grant beneficiary is 
        more than 1 Indian tribe, the sum of the amounts of the 
        allocations under section 301 for each such Indian tribe.

    (g) Use for Affordable Housing Activities Under Plan.--Except as 
provided in subsection (h), amounts provided under a grant under this 
section may be used only for affordable housing activities under title 
II that are consistent with an Indian housing plan approved under 
section 103.
    (h) <<NOTE: Regulations.>>  Administrative Expenses.--The Secretary 
shall, by regulation, authorize each recipient to use a percentage of 
any grant amounts received under this Act for any reasonable 
administrative and planning expenses of the recipient relating to 
carrying out this Act and activities assisted with such amounts, which 
may include costs for salaries of individuals engaged in administering 
and managing affordable housing activities assisted with grant amounts 
provided under this Act and expenses of preparing an Indian housing plan 
under section 102.

    (i) Public-Private Partnerships.--Each recipient shall make all 
reasonable efforts, consistent with the purposes of this Act, to 
maximize participation by the private sector, including nonprofit 
organizations and for-profit entities, in implementing the approved 
Indian housing plan.

SEC. 102. <<NOTE: 25 USC 4112.>>  INDIAN HOUSING PLANS.

    (a) Plan Submission.--The Secretary shall provide--
            (1) for an Indian tribe to submit to the Secretary, for each 
        fiscal year, a housing plan under this section for the tribe;
            (2) for the tribally designated housing entity for the tribe 
        to submit the plan as provided in subsection (d) for the tribe; 
        and
            (3) for the review of such plans.

    (b) 5-Year Plan.--Each housing plan under this section shall be in a 
form prescribed by the Secretary and shall contain, with respect to the 
5-year period beginning with the fiscal year for which the plan is 
submitted, the following information:
            (1) Mission statement.--A general statement of the 
        mission of the Indian tribe to serve the needs of the low-

[[Page 110 STAT. 4024]]

        income families in the jurisdiction of the Indian tribe during 
        the period.
            (2) Goals and objectives.--A statement of the goals and 
        objectives of the Indian tribe to enable the tribe to serve the 
        needs identified in paragraph (1) during the period.
            (3) Activities plan.--An overview of the activities planned 
        during the period including an analysis of the manner in which 
        the activities will enable the tribe to meet its mission, goals, 
        and objectives.

    (c) 1-Year Plan.--A housing plan under this section for an Indian 
tribe shall be in a form prescribed by the Secretary and contain the 
following information relating to the upcoming fiscal year for which the 
assistance under this Act is to be made available:
            (1) Goals and objectives.--A statement of the goals and 
        objectives to be accomplished during that period.
            (2) Statement of needs.--A statement of the housing needs of 
        the low-income Indian families residing in the jurisdiction of 
        the Indian tribe and the means by which such needs will be 
        addressed during the period, including--
                    (A) a description of the estimated housing needs and 
                the need for assistance for the low-income Indian 
                families in the jurisdiction, including a description of 
                the manner in which the geographical distribution of 
                assistance is consistent with the geographical needs and 
                needs for various categories of housing assistance; and
                    (B) a description of the estimated housing needs for 
                all Indian families in the jurisdiction.
            (3) Financial resources.--An operating budget for the 
        recipient, in a form prescribed by the Secretary, that 
        includes--
                    (A) an identification and a description of the 
                financial resources reasonably available to the 
                recipient to carry out the purposes of this Act, 
                including an explanation of the manner in which amounts 
                made available will leverage additional resources; and
                    (B) the uses to which such resources will be 
                committed, including eligible and required affordable 
                housing activities under title II and administrative 
                expenses.
            (4) Affordable housing resources.--A statement of the 
        affordable housing resources currently available and to be made 
        available during the period, including--
                    (A) a description of the significant characteristics 
                of the housing market in the jurisdiction, including the 
                availability of housing from other public sources, 
                private market housing, and the manner in which such 
                characteristics influence the decision of the recipient 
                to use grant amounts to be provided under this Act for 
                rental assistance, 
                production of new units, acquisition of existing units, 
                or rehabilitation of units;
                    (B) a description of the structure, coordination, 
                and means of cooperation between the recipient and any 
                other governmental entities in the development, 
                submission, or implementation of housing plans, 
                including a description of the involvement of private, 
                public, and nonprofit organizations and institutions, 
                and the use of loan 
                guarantees under section 184 of the Housing and 
                Community Development Act of 1992, and other housing 
                assistance

[[Page 110 STAT. 4025]]

                provided by the Federal Government for Indian tribes, 
                including loans, grants, and mortgage insurance;
                    (C) a description of the manner in which the plan 
                will address the needs identified pursuant to paragraph 
                (2);
                    (D) a description of the manner in which the 
                recipient will protect and maintain the viability of 
                housing owned and operated by the recipient that was 
                developed under a contract between the Secretary and an 
                Indian housing authority pursuant to the United States 
                Housing Act of 1937;
                    (E) a description of any existing and anticipated 
                homeownership programs and rental programs to be carried 
                out during the period, and the requirements and 
                assistance available under such programs;
                    (F) a description of any existing and anticipated 
                housing rehabilitation programs necessary to ensure the 
                long-term viability of the housing to be carried out 
                during the period, and the requirements and assistance 
                available under such programs;
                    (G) a description of all other existing or 
                anticipated housing assistance provided by the recipient 
                during the period, including transitional housing, 
                homeless housing, college housing, supportive services 
                housing, and the requirements and assistance available 
                under such programs;
                    (H) a description of any housing to be demolished or 
                disposed of, a timetable for such demolition or 
                disposition, and any other information required by the 
                Secretary with respect to such demolition or 
                disposition;
                    (I) a description of the manner in which the 
                recipient will coordinate with tribal and State welfare 
                agencies to ensure that residents of such housing will 
                be provided with access to resources to assist in 
                obtaining employment and achieving self-sufficiency;
                    (J) a description of the requirements established by 
                the recipient to promote the safety of residents of such 
                housing, facilitate the undertaking of crime prevention 
                measures, allow resident input and involvement, 
                including the establishment of resident organizations, 
                and allow for the coordination of crime prevention 
                activities between the recipient and tribal and local 
                law enforcement officials; and
                    (K) a description of the entity that will carry out 
                the activities under the plan, including the 
                organizational capacity and key personnel of the entity.
            (5) Certification of compliance.--Evidence of compliance 
        which shall include, as appropriate--
                    (A) a certification that the recipient will comply 
                with title II of the Civil Rights Act of 1968 in 
                carrying out this Act, to the extent that such title is 
                applicable, and other applicable Federal statutes;
                    (B) a certification that the recipient will maintain 
                adequate insurance coverage for housing units that are 
                owned and operated or assisted with grant amounts 
                provided under this Act, in compliance with such 
                requirements as may be established by the Secretary;

[[Page 110 STAT. 4026]]

                    (C) 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 Act;
                    (D) 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 
                Act; and
                    (E) 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 Act.

    (d) Participation of Tribally Designated Housing Entity.--A plan 
under this section for an Indian tribe may be prepared and submitted on 
behalf of the tribe by the tribally designated housing entity for the 
tribe, but only if such plan contains a certification by the recognized 
tribal government of the grant beneficiary that such tribe--
            (1) has had an opportunity to review the plan and has 
        authorized the submission of the plan by the housing entity; or
            (2) has delegated to such tribally designated housing entity 
        the authority to submit a plan on behalf of the tribe without 
        prior review by the tribe.

    (e) Coordination of Plans.--A plan under this section may cover more 
than 1 Indian tribe, but only if the certification requirements under 
subsection (d) are complied with by each such grant beneficiary covered.
    (f) Plans for Small Tribes.--
            (1) Separate requirements.--The Secretary may--
                    (A) establish requirements for submission of plans 
                under this section and the information to be included in 
                such plans applicable to small Indian tribes and small 
                tribally designated housing entities; and
                    (B) waive any requirements under this section that 
                the Secretary determines are burdensome or unnecessary 
                for such tribes and housing entities.
            (2) Small tribes.--The Secretary may define small Indian 
        tribes and small tribally designated housing entities based on 
        the number of dwelling units assisted under this title by the 
        tribe or housing entity or owned or operated pursuant to a 
        contract under the United States Housing Act of 1937 between the 
        Secretary and the Indian housing authority for the tribe.

    (g) Regulations.--The requirements relating to the contents of plans 
under this section shall be established by regulation, pursuant to 
section 106.

SEC. 103. <<NOTE: 25 USC 4113.>>  REVIEW OF PLANS.

    (a) Review and Notice.--
            (1) Review.--The Secretary shall conduct a limited review of 
        each Indian housing plan submitted to the Secretary to ensure 
        that the plan complies with the requirements of section 102. The 
        Secretary shall have the discretion to review a plan only to the 
        extent that the Secretary considers review is 
        necessary.

[[Page 110 STAT. 4027]]

            (2) Notice.--The Secretary shall notify each Indian tribe 
        for which a plan is submitted and any tribally designated 
        housing entity for the tribe whether the plan complies with such 
        requirements not later than 60 days after receiving the plan. If 
        the Secretary does not notify the Indian tribe, as required 
        under this subsection and subsection (b), the plan shall be 
        considered, for purposes of this Act, to have been determined to 
        comply with the requirements under section 102 and the tribe 
        shall be considered to have been notified of compliance upon the 
        expiration of such 60-day period.

    (b) Notice of Reasons for Determination of Noncompliance.--If the 
Secretary determines that a plan, as submitted, does not comply with the 
requirements under section 102, the Secretary shall specify in the 
notice under subsection (a) the reasons for the noncompliance and any 
modifications necessary for the plan to meet the requirements under 
section 102.
    (c) Review.--After submission of the Indian housing plan 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 
determinations under this subsection, the Secretary shall review the 
plan (including any amendments or modifications thereto) to determine 
whether the contents of the plan--
            (1) set forth the information required by section 102 to be 
        contained in an Indian housing plan;
            (2) are consistent with information and data available to 
        the Secretary; and
            (3) are prohibited by or inconsistent with any provision of 
        this Act or other applicable law.

If the Secretary determines that any of the appropriate certifications 
required under section 102(c)(5) are not included in the plan, the plan 
shall be deemed to be incomplete.
    (d) Updates to Plan.--After a plan under section 102 has been 
submitted for an Indian tribe for any fiscal year, the tribe may comply 
with the provisions of such section for any succeeding fiscal year (with 
respect to information included for the 5-year period under section 
102(b) or the 1-year period under section 102(c)) by submitting only 
such information regarding such changes as may be necessary to update 
the plan previously submitted. Not less than once every 5 years, the 
tribe shall submit a complete plan.
    (e) Effective Date.--This section and section 102 shall take effect 
on the date provided by the Secretary pursuant to section 106(a) to 
provide for timely submission and review of Indian housing plans as 
necessary for the provision of assistance under this Act in fiscal year 
1998.

SEC. 104. <<NOTE: 25 USC 4114.>>  TREATMENT OF PROGRAM INCOME AND LABOR 
            STANDARDS.

    (a) Program Income.--
            (1) Authority to retain.--A recipient may retain any program 
        income that is realized from any grant amounts under this Act 
        if--
                    (A) such income was realized after the initial 
                disbursement of the grant amounts received by the 
                recipient; and
                    (B) the recipient has agreed that it will utilize 
                the program income for affordable housing activities in 
                accordance with the provisions of this Act.

[[Page 110 STAT. 4028]]

            (2) Prohibition of reduction of grant.--The Secretary may 
        not reduce the grant amount for any Indian tribe based solely 
        on--
                    (A) whether the recipient for the tribe retains 
                program income under paragraph (1);
                    (B) the amount of any such program income 
                retained; or
                    (C) whether the recipient retains reserve amounts 
                described in section 210.
            (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 recipient.

    (b) Labor Standards.--
            (1) <<NOTE: Contracts. Certification.>>  In general.--Any 
        contract or agreement for assistance, sale, or lease pursuant to 
        this Act shall contain a provision requiring that not less than 
        the wages prevailing in the locality, as determined or adopted 
        (subsequent to a determination under applicable State, tribal, 
        or local law) by the Secretary, shall be paid to all architects, 
        technical engineers, draftsmen, and technicians employed in the 
        development, and all maintenance laborers and mechanics employed 
        in the operation, of the affordable housing project involved; 
        and shall also contain a provision that not less than the wages 
        prevailing in the locality, as predetermined by the Secretary of 
        Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-276a-5), 
        shall be paid to all laborers and mechanics employed in the 
        development of the affordable housing involved, and the 
        Secretary shall require certification as to compliance with the 
        provisions of this paragraph before making any payment under 
        such contract or agreement.
            (2) Exceptions.--Paragraph (1) and the provisions relating 
        to wages (pursuant to paragraph (1)) in any contract or 
        agreement for assistance, sale, or lease pursuant to this Act, 
        shall not apply to any individual who receives no compensation 
        or is paid expenses, reasonable benefits, or a nominal fee to 
        perform the services for which the individual volunteered and 
        who is not otherwise employed at any time in the construction 
        work.

SEC. 105. <<NOTE: 25 USC 4115.>>  ENVIRONMENTAL REVIEW.

    (a) In General.--
            (1) Release of funds.--In order to ensure that the policies 
        of the National Environmental Policy Act of 1969 and other 
        provisions of law that further the purposes of 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 Act, and to ensure to the 
        public undiminished protection of the environment, the 
        Secretary, in lieu of the environmental protection procedures 
        otherwise applicable, may by regulation provide for the release 
        of amounts for particular projects to tribes which assume all of 
        the responsibilities for environmental review, decisionmaking, 
        and action pursuant to such Act, and such other provisions of 
        law as the regulations of the Secretary specify, that would 
        apply to the Secretary were the Secretary to undertake such 
        projects as Federal projects.

[[Page 110 STAT. 4029]]

            (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 a recipient of grant 
        amounts with respect to any particular release of funds.

    (b) Procedure.--The Secretary shall approve the release of funds 
subject to the procedures authorized by this section only if, not less 
than 15 days prior to such approval and prior to any commitment of funds 
to such projects, the tribe has submitted to the Secretary a request for 
such release accompanied by a certification that meets the requirements 
of subsection (c). The approval of the Secretary of any such 
certification shall be deemed to satisfy the responsibilities of the 
Secretary under the National Environmental Policy Act of 1969 and such 
other provisions of law as the regulations of the Secretary specify 
insofar as those responsibilities relate to the releases of funds for 
projects to be carried out pursuant thereto that are covered by such 
certification.
    (c) Certification.--A certification under the procedures authorized 
by this section shall--
            (1) be in a form acceptable to the Secretary;
            (2) be executed by the chief executive officer or other 
        officer of the tribe under this Act qualified under regulations 
        of the Secretary;
            (3) specify that the tribe has fully carried out its 
        responsibilities as described under subsection (a); and
            (4) specify that the certifying officer--
                    (A) consents to assume the status of a responsible 
                Federal official under the National Environmental Policy 
                Act of 1969 and each provision of law specified in 
                regulations issued by the Secretary insofar as the 
                provisions of such Act or such other provisions of law 
                apply pursuant to subsection (a); and
                    (B) is authorized and consents on behalf of the 
                tribe and such officer to accept the jurisdiction of the 
                Federal courts for the purpose of enforcement of the 
                responsibilities of the certifying officer as such an 
                official.

SEC. 106. <<NOTE: 25 USC 4116.>>  REGULATIONS.

    (a) Transition Requirements.--
            (1) <<NOTE: Federal Register, publication.>>  In general.--
        Not later than 90 days after the date of the enactment of this 
        Act, the Secretary shall, by notice issued in the Federal 
        Register, establish any requirements 
        necessary to provide for the transition (upon the effectiveness 
        of this Act and the amendments made by this Act) from the 
        provision of assistance for Indian tribes and Indian housing 
        authorities under the United States Housing Act of 1937 and

[[Page 110 STAT. 4030]]

        other related provisions of law to the provision of assistance 
        in accordance with this Act and the amendments made by this Act.
            (2) Public comments; general notice of proposed 
        rulemaking.--The notice issued under paragraph (1) shall--
                    (A) invite public comments regarding such transition 
                requirements and final regulations to carry out this 
                Act; and
                    (B) include a general notice of proposed rulemaking 
                (for purposes of section 564(a) of title 5, United 
                States Code) of the final regulations under subsection 
                (b).

    (b) Final Regulations.--
            (1) <<NOTE: Effective date.>>  Timing.--The Secretary shall 
        issue final regulations necessary to carry out this Act not 
        later than September 1, 1997, and such regulations shall take 
        effect not later than the effective date of this Act.
            (2) Negotiated rulemaking procedure.--
                    (A) In general.--Notwithstanding sections 563(a) and 
                565(a) of title 5, United States Code, all regulations 
                required under this Act shall be issued according to a 
                negotiated rulemaking procedure under subchapter III of 
                chapter 5 of title 5, United States Code.
                    (B) Committee.--
                          (i) In general.--The Secretary shall establish 
                      a negotiated rulemaking committee, in accordance 
                      with the procedures under that subchapter, for the 
                      development of proposed regulations under 
                      subparagraph (A).
                          (ii) Adaptation.--In establishing the 
                      negotiated rulemaking committee, the Secretary 
                      shall--
                                    (I) adapt the procedures under the 
                                subchapter described in clause (i) to 
                                the unique government-to-government 
                                relationship between the Indian tribes 
                                and the United States, and shall ensure 
                                that the membership of the committee 
                                include only representatives of the 
                                Federal Government and of geographically 
                                diverse small, medium, and large Indian 
                                tribes; and
                                    (II) shall not preclude the 
                                participation of 
                                tribally designated housing entities 
                                should tribes elect to be represented by 
                                such entities.

    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 107. <<NOTE: 25 USC 4101 note.>>  EFFECTIVE DATE.

    Except as otherwise expressly provided in this Act, this Act and the 
amendments made by this Act shall take effect on October 1, 1997.

SEC. 108. <<NOTE: 25 USC 4117.>>  AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for grants under this title 
such sums as may be necessary for each of fiscal years 1998, 1999, 2000, 
and 2001. <<NOTE: Effective date.>>  This section shall take effect on 
the date of the enactment of this Act.

[[Page 110 STAT. 4031]]

                 TITLE II--AFFORDABLE HOUSING ACTIVITIES

SEC. 201. <<NOTE: 25 USC 4131.>>  NATIONAL OBJECTIVES AND ELIGIBLE 
            FAMILIES.

    (a) Primary Objective.--The national objectives of this Act are--
            (1) to assist and promote affordable housing activities to 
        develop, maintain, and operate affordable housing in safe and 
        healthy environments on Indian reservations and in other Indian 
        areas for occupancy by low-income Indian families;
            (2) to ensure better access to private mortgage markets for 
        Indian tribes and their members and to promote self-
        sufficiency of Indian tribes and their members;
            (3) to coordinate activities to provide housing for Indian 
        tribes and their members with Federal, State, and local 
        activities to further economic and community development for 
        Indian tribes and their members;
            (4) to plan for and integrate infrastructure resources for 
        Indian tribes with housing development for tribes; and
            (5) to promote the development of private capital markets in 
        Indian country and to allow such markets to operate and grow, 
        thereby benefiting Indian communities.

    (b) Eligible Families.--
            (1) In general.--Except as provided under paragraph (2), 
        assistance under eligible housing activities under this Act 
        shall be limited to low-income Indian families on Indian 
        reservations and other Indian areas.
            (2) Exception to low-income requirement.--A recipient may 
        provide assistance for homeownership activities under 
        section 202(2), model activities under section 202(6), or loan 
        guarantee activities under title VI to Indian families who are 
        not low-income families, to the extent that the Secretary 
        approves the activities pursuant to such section or title 
        because there is a need for housing for such families that 
        cannot reasonably be met without such assistance. The Secretary 
        shall 
        establish limits on the amount of assistance that may be 
        provided under this Act for activities for families who are not 
        low-income families.
            (3) Non-indian families.--Notwithstanding paragraph (1), a 
        recipient may provide housing or housing assistance provided 
        through affordable housing activities assisted with grant 
        amounts under this Act for a non-Indian family on an Indian 
        reservation or other Indian area if the recipient determines 
        that the presence of the family on the Indian reservation or 
        other Indian area is essential to the well-being of Indian 
        families and the need for housing for the family cannot 
        reasonably be met without such assistance.
            (4) Preference for tribal members and other indian 
        families.--The Indian housing plan for an Indian tribe may 
        require preference, for housing or housing assistance provided 
        through affordable housing activities assisted with grant 
        amounts provided under this Act on behalf of such tribe, to be 
        given (to the extent practicable) to Indian families who are 
        members of such tribe, or to other Indian families. In any case 
        in which the applicable Indian housing plan for an Indian tribe 
        provides for preference under this paragraph, the

[[Page 110 STAT. 4032]]

        recipient for the tribe shall ensure that housing activities 
        that are assisted with grant amounts under this Act for such 
        tribe are subject to such preference.
            (5) Exemption.--Title VI of the Civil Rights Act of 1964 and 
        title VIII of the Civil Rights Act of 1968 shall not apply to 
        actions by Indian tribes under this subsection.

SEC. 202. <<NOTE: 25 USC 4132.>>  ELIGIBLE AFFORDABLE HOUSING 
            ACTIVITIES.

    Affordable housing activities under this title are activities, in 
accordance with the requirements of this title, to develop or to support 
affordable housing for rental or homeownership, or 
to provide housing services with respect to affordable housing, through 
the following activities:
            (1) Indian housing assistance.--The provision of 
        modernization or operating assistance for housing previously 
        developed or operated pursuant to a contract between the 
        Secretary and an Indian housing authority.
            (2) Development.--The acquisition, new construction, 
        reconstruction, or moderate or substantial rehabilitation of 
        affordable housing, which may include real property acquisition, 
        site improvement, development of utilities and utility services, 
        conversion, demolition, financing, administration and planning, 
        and other related activities.
            (3) Housing services.--The provision of housing-related 
        services for affordable housing, such as housing counseling in 
        connection with rental or homeownership assistance, 
        establishment and support of resident organizations and resident 
        management corporations, energy auditing, activities related to 
        the provision of self-sufficiency and other services, and other 
        services related to assisting owners, tenants, contractors, and 
        other entities, participating or seeking to participate in other 
        housing activities assisted pursuant to this section.
            (4) Housing management services.--The provision of 
        management services for affordable housing, including 
        preparation of work specifications, loan processing, 
        inspections, tenant selection, management of tenant-based rental 
        assistance, and management of affordable housing projects.
            (5) 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.
            (6) Model activities.--Housing activities under model 
        programs that are designed to carry out the purposes of this Act 
        and are specifically approved by the Secretary as appropriate 
        for such purpose.

SEC. 203. <<NOTE: 25 USC 4133.>>  PROGRAM REQUIREMENTS.

    (a) Rents.--
            (1) Establishment.--Subject to paragraph (2), each 
        recipient shall develop written policies governing rents and 
        homebuyer payments charged for dwelling units assisted under 
        this Act, including the 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 Act, the monthly rent or homebuyer payment (as

[[Page 110 STAT. 4033]]

        applicable) for such dwelling unit may not exceed 30 percent of 
        the monthly adjusted income of such family.

    (b) Maintenance and Efficient Operation.--Each recipient who owns or 
operates (or is responsible for funding any entity that owns or 
operates) housing developed or operated pursuant to a contract between 
the Secretary and an Indian housing authority pursuant to the United 
States Housing Act of 1937 shall, using amounts of any grants received 
under this Act, reserve and use for operating assistance under section 
202(1) such amounts as may be necessary to provide for the continued 
maintenance and efficient operation of such housing. This subsection may 
not be construed to prevent any recipient (or entity funded by a 
recipient) from demolishing or disposing of Indian housing referred to 
in this subsection, pursuant to regulations established by the 
Secretary.
    (c) Insurance Coverage.--Each recipient shall maintain 
adequate insurance coverage for housing units that are owned or operated 
or assisted with grant amounts provided under this Act.
    (d) Eligibility for Admission.--Each recipient shall develop written 
policies governing the eligibility, admission, and occupancy of families 
for housing assisted with grant amounts provided under this Act.
    (e) Management and Maintenance.--Each recipient shall develop 
policies governing the management and maintenance of housing assisted 
with grant amounts under this Act.

SEC. 204. <<NOTE: 25 USC 4134.>>  TYPES OF INVESTMENTS.

    (a) In General.--Subject to section 203 and the Indian housing plan 
for an Indian tribe, the recipient for that tribe shall have--
            (1) the discretion to use grant amounts for affordable 
        housing activities through equity investments, interest-bearing 
        loans or advances, noninterest-bearing loans or advances, 
        interest subsidies, leveraging of private investments, or any 
        other form of assistance that the Secretary has determined to be 
        consistent with the purposes of this Act; and
            (2) the right to establish the terms of assistance.

    (b) Investments.--A recipient 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. 205. <<NOTE: 25 USC 4135.>>  LOW-INCOME REQUIREMENT AND INCOME 
            TARGETING.

    (a) In General.--Housing shall qualify as affordable housing for 
purposes of this Act 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 their initial occupancy of such 
                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) except for housing assisted under section 202 of the 
        United States Housing Act of 1937 (as in effect before the date 
        of the effectiveness of this Act), each dwelling unit in the 
        housing will remain affordable, according to binding commitments 
        satisfactory to the Secretary, for the remaining useful life of 
        the property (as determined by the Secretary) without regard to 
        the term of the mortgage or to transfer of ownership, or for 
        such other period that the Secretary 


[[Page 110 STAT. 4034]]

        determines is the longest feasible period of time consistent 
        with sound economics and the purposes of this Act, except upon a 
        foreclosure by a lender (or upon other transfer in lieu of 
        foreclosure) if such action--
                    (A) recognizes any contractual or legal rights of 
                public agencies, nonprofit sponsors, or others to take 
                actions that would avoid termination of low-income 
                affordability in the case of foreclosure or transfer in 
                lieu of foreclosure; and
                    (B) 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 201(b)(2) shall be considered affordable housing for 
purposes of this Act.

SEC. 206. <<NOTE: 25 USC 4136.>>  CERTIFICATION OF COMPLIANCE WITH 
            SUBSIDY LAYERING REQUIREMENTS.

    With respect to housing assisted with grant amounts provided under 
this Act, the requirements of section 102(d) of the Department of 
Housing and Urban Development Reform Act of 1989 shall be considered to 
be satisfied upon certification by the Secretary that the combination of 
Federal assistance provided to any housing project is not any more than 
is necessary to provide affordable housing.

SEC. 207. <<NOTE: 25 USC 4137.>>  LEASE REQUIREMENTS AND TENANT 
            SELECTION.

    (a) Leases.--Except to the extent otherwise provided by or 
inconsistent with tribal law, in renting dwelling units in affordable 
housing assisted with grant amounts provided under this Act, the owner 
or manager of the housing shall utilize leases that--
            (1) do not contain unreasonable terms and conditions;
            (2) require the owner or manager to maintain the housing in 
        compliance with applicable housing codes and quality standards;
            (3) require the owner or manager to give adequate written 
        notice of termination of the lease, which shall be the period of 
        time required under State, tribal, or local law;
            (4) specify that, with respect to any notice of eviction or 
        termination, notwithstanding any State, tribal, or local law, a 
        resident shall be informed of the opportunity, prior to any 
        hearing or trial, to examine any relevant documents, records, or 
        regulations directly related to the eviction or termination;
            (5) require that the owner or manager may not terminate the 
        tenancy, during the term of the lease, except for serious or 
        repeated violation of the terms or conditions of the lease, 
        violation of applicable Federal, State, tribal, or local law, or 
        for other good cause; and
            (6) provide that the 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 owner or manager of the housing;
                    (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

[[Page 110 STAT. 4035]]

                    (C) is criminal activity (including drug-related 
                criminal activity) on or off the premises.

    (b) Tenant Selection.--The owner or manager of affordable rental 
housing assisted with grant amounts provided under this Act shall adopt 
and utilize written tenant 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 from a written waiting 
                list in accordance with the policies and goals set forth 
                in the Indian housing plan for the tribe that is the 
                grant beneficiary of such grant amounts; and
                    (B) the prompt notification in writing of any 
                rejected applicant of the grounds for any rejection.

SEC. 208. <<NOTE: 25 USC 4138.>> AVAILABILITY OF RECORDS.

    (a) Provision of Information.--Notwithstanding any other provision 
of law, except as provided in paragraph (2), the National Crime 
Information Center, police departments, and other law enforcement 
agencies shall, upon request, provide information to Indian tribes or 
tribally designated housing entities regarding the criminal conviction 
records of adult applicants for, or tenants of, housing assisted with 
grant amounts provided to such tribe or entity under this Act for 
purposes of applicant screening, lease enforcement, and eviction.
    (b) Exception.--A law enforcement agency described in paragraph (1) 
shall provide information under this paragraph relating to any criminal 
conviction of a juvenile only to the extent that the release of such 
information is authorized under the law of the applicable State, tribe, 
or locality.
    (c) Confidentiality.--An Indian tribe or tribally designated housing 
entity receiving information under this section may use such information 
only for the purposes provided in this section and such information may 
not be disclosed to any person who is not an officer, employee, or 
authorized representative of the tribe or entity or the owner of housing 
assisted under this Act, and who has a job-related need to have access 
to the information for the purposes under this section. For judicial 
eviction proceedings, disclosures may be made to the extent 
necessary. <<NOTE: Regulations. Procedures.>>  The Secretary shall, by 
regulation, establish procedures necessary to ensure that information 
provided under this section to any tribe or entity is used, and 
confidentiality is maintained, as required under this section.

SEC. 209. <<NOTE: 25 USC 4139.>>  REPAYMENT.

    If a recipient uses grant amounts to provide affordable housing 
under activities under this title and, at any time during the useful 
life of the housing the housing does not comply with the requirement 
under section 205(2), the Secretary shall reduce future grant payments 
on behalf of the grant beneficiary by an amount equal to the grant 
amounts used for such housing (under the authority under section 
401(a)(2)) or require repayment to the Secretary of an amount equal to 
such grant amounts.

[[Page 110 STAT. 4036]]

SEC. 210. <<NOTE: 25 USC 4140.>>  CONTINUED USE OF AMOUNTS FOR 
            AFFORDABLE HOUSING.

    Any funds for programs for low-income housing under the United 
States Housing Act of 1937 that, on the date of the applicability of 
this Act to an Indian tribe, are owned by, or in the possession or under 
the control of, the Indian housing authority for the tribe, including 
all reserves not otherwise obligated, shall be considered assistance 
under this Act and subject to the provisions of this Act relating to use 
of such assistance.

                 TITLE III--ALLOCATION OF GRANT AMOUNTS

SEC. 301. <<NOTE: 25 USC 4151.>>  ANNUAL ALLOCATION.

    For each fiscal year, the Secretary shall allocate any amounts made 
available for assistance under this Act for the fiscal year, in 
accordance with the formula established pursuant to section 302, among 
Indian tribes that comply with the requirements under this Act for a 
grant under this Act.

SEC. 302. <<NOTE: 25 USC 4152.>>  ALLOCATION FORMULA.

    (a) Establishment.-- <<NOTE: Regulations.>> The Secretary shall, by 
regulations issued not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, in the manner 
provided under section 106, establish a formula to provide for 
allocating amounts available for a fiscal year for block grants under 
this Act among Indian tribes in accordance with the requirements of this 
section.

    (b) Factors for Determination of Need.--The formula shall be based 
on factors that reflect the need of the Indian tribes and the Indian 
areas of the tribes for assistance for affordable housing activities, 
including the following factors:
            (1) The number of low-income housing dwelling units owned or 
        operated at the time pursuant to a contract between an Indian 
        housing authority for the tribe and the Secretary.
            (2) The extent of poverty and economic distress and the 
        number of Indian families within Indian areas of the tribe.
            (3) Other objectively measurable conditions as the 
        Secretary and the Indian tribes may specify.

    (c) Other Factors for Consideration.--In establishing the formula, 
the Secretary shall consider--
            (1) the relative administrative capacities and other 
        challenges faced by the recipient, including, but not limited to 
        geographic distribution within the Indian area and technical 
        capacity; and
            (2) the extent to which terminations of assistance under 
        title V will affect funding available to State recognized 
        tribes.

    (d) Funding for Public Housing Operation and 
Modernization.--
            (1) Full funding.--The formula shall provide that, if, in 
        any fiscal year, the total amount made available for assistance 
        under this Act is equal to or greater than the total amount made 
        available for fiscal year 1996 for assistance for the operation 
        and modernization of public housing developed or 
        operated pursuant to a contract between the Secretary and an 
        Indian housing authority pursuant to the United States Housing 
        Act of 1937, the amount provided for such fiscal year

[[Page 110 STAT. 4037]]

        for each Indian tribe for which such operating or modernization 
        assistance was provided for fiscal year 1996 shall not be less 
        than the total amount of such operating and modernization 
        assistance provided for fiscal year 1996 for such tribe.
            (2) Partial funding.--The formula shall provide that, if, in 
        any fiscal year, the total amount made available for 
        assistance under this Act is less than the total amount made 
        available for fiscal year 1996 for assistance for the operation 
        and modernization of public housing developed or operated 
        pursuant to a contract between the Secretary and an Indian 
        housing authority pursuant to the United States Housing Act of 
        1937, the amount provided for such fiscal year for each Indian 
        tribe for which such operating or modernization assistance was 
        provided for fiscal year 1996 shall not be less than the amount 
        that bears the same ratio to the total amount available for 
        assistance under this Act for such fiscal year that the amount 
        of operating and modernization assistance provided for the tribe 
        for fiscal year 1996 bears to the total amount made available 
        for fiscal year 1996 for assistance for the operation and 
        modernization of such public housing.

    (e) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

                TITLE IV--COMPLIANCE, AUDITS, AND REPORTS

SEC. 401. <<NOTE: 25 USC 4161.>>  REMEDIES FOR NONCOMPLIANCE.

    (a) Actions by Secretary Affecting Grant Amounts.--Except as 
provided in subsection (b), if the Secretary finds after reasonable 
notice and opportunity for hearing that a recipient of assistance under 
this Act has failed to comply substantially with any provision of this 
Act, the Secretary shall--
            (1) terminate payments under this Act to the recipient;
            (2) reduce payments under this Act to the recipient by an 
        amount equal to the amount of such payments that were not 
        expended in accordance with this Act;
            (3) limit the availability of payments under this Act to 
        programs, projects, or activities not affected by such failure 
        to comply; or
            (4) in the case of noncompliance described in section 
        402(b), provide a replacement tribally designated housing entity 
        for the recipient, under section 402.

If the Secretary takes an action under paragraph (1), (2), or (3), the 
Secretary shall continue such action until the Secretary determines that 
the failure to comply has ceased.
    (b) Noncompliance Because of Technical Incapacity.--If the Secretary 
makes a finding under subsection (a), but determines that the failure to 
comply substantially with the provisions of this Act--
            (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 
        recipient,

the Secretary may provide technical assistance for the recipient 
(directly or indirectly) that is designed to increase the capability and 
capacity of the recipient to administer assistance provided

[[Page 110 STAT. 4038]]

under this Act in compliance with the requirements under this Act.
    (c) Referral for Civil Action.--
            (1) Authority.--In lieu of, or in addition to, any action 
        authorized by subsection (a), if the Secretary has reason to 
        believe that a recipient has failed to comply substantially with 
        any provision of this Act, the Secretary may refer the matter to 
        the Attorney General of the United States with a 
        recommendation that an appropriate civil action be instituted.
            (2) Civil action.--Upon such a referral, the Attorney 
        General may bring a civil action in any United States district 
        court having venue thereof for such relief as may be 
        appropriate, including an action to recover the amount of the 
        assistance furnished under this Act that was not expended in 
        accordance with it, or for mandatory or injunctive relief.

    (d) Review.--
            (1) In general.--Any recipient who receives notice under 
        subsection (a) of the termination, reduction, or limitation of 
        payments under this Act--
                    (A) may, not later than 60 days after receiving such 
                notice, file with the United States Court of Appeals for 
                the circuit in which such State is located, 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.-- <<NOTE: Records.>> 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. No objection to the action of the Secretary 
        shall be considered by the court unless such objection has been 
        urged before the Secretary.
            (3) Disposition.--
                    (A) Court proceedings.--The court shall have 
                jurisdiction to affirm or modify the action of the 
                Secretary or to set it aside in whole or in part. The 
                findings of fact by the Secretary, if supported by 
                substantial evidence on the record considered as a 
                whole, shall be conclusive. The court may order 
                additional evidence to be taken by the Secretary, and to 
                be made part of the record.
                    (B) Secretary.--The Secretary--
                          (i) may modify the findings of fact of the 
                      Secretary, or make new findings, by reason of the 
                      new evidence so taken and filed with the court; 
                      and
                          (ii) shall file--
                                    (I) such modified or new findings, 
                                which findings with respect to questions 
                                of fact shall be conclusive if supported 
                                by substantial evidence on the record 
                                considered as a whole; and
                                    (II) the recommendation of the 
                                Secretary, if any, for the modification 
                                or setting aside of the original action 
                                of the Secretary.
            (4) Finality.--Upon the filing of the record with the court, 
        the jurisdiction of the court shall be exclusive and its 
        judgment shall be final, except that such judgment shall be 
        subject to

[[Page 110 STAT. 4039]]

        review by the Supreme Court of the United States upon writ of 
        certiorari or certification as provided in section 1254 of title 
        28, United State Code.

SEC. 402. <<NOTE: 25 USC 4162.>>  REPLACEMENT OF RECIPIENT.

    (a) Authority.--As a condition of the Secretary making a grant under 
this Act on behalf of an Indian tribe, the tribe shall agree that, 
notwithstanding any other provision of law, the 
Secretary may, only in the circumstances set forth in subsection (b), 
require that a replacement tribally designated housing entity serve as 
the recipient for the tribe, in accordance with subsection (c).
    (b) Conditions of Removal.--The Secretary may require such 
replacement tribally designated housing entity for a tribe only upon a 
determination by the Secretary on the record after opportunity for a 
hearing that the recipient for the tribe has engaged in a pattern or 
practice of activities that constitutes substantial or willful 
noncompliance with the requirements under this Act.
    (c) Choice and Term of Replacement.--If the Secretary requires that 
a replacement tribally designated housing entity serve as the recipient 
for a tribe (or tribes)--
            (1) the replacement entity shall be an entity mutually 
        agreed upon by the Secretary and the tribe (or tribes) for which 
        the recipient was authorized to act, except that if no such 
        entity is agreed upon before the expiration of the 60-day period 
        beginning upon the date that the Secretary makes the 
        determination under subsection (b), the Secretary shall act as 
        the replacement entity until agreement is reached upon a 
        replacement entity; and
            (2) the replacement entity (or the Secretary, as provided in 
        paragraph (1)) shall act as the tribally designated housing 
        entity for the tribe (or tribes) for a period that expires 
        upon--
                    (A) a date certain, which shall be specified by the 
                Secretary upon making the determination under subsection 
                (b); or
                    (B) <<NOTE: Notification.>>  the occurrence of 
                specific conditions, which conditions shall be specified 
                in written notice provided by the Secretary to the tribe 
                upon making the determination under subsection (b).

SEC. 403. <<NOTE: 25 USC 4163.>>  MONITORING OF COMPLIANCE.

    (a) Enforceable Agreements.--Each recipient, through binding 
contractual agreements with owners and otherwise, shall ensure long-term 
compliance with the provisions of this Act. Such measures shall provide 
for (1) enforcement of the provisions of this Act by the grant 
beneficiary or by recipients and other intended beneficiaries, and (2) 
remedies for the breach of such provisions.
    (b) Periodic Monitoring.--Not less frequently than annually, each 
recipient shall review the activities conducted and housing assisted 
under this Act to assess compliance with the requirements of this Act. 
Such review shall include onsite inspection of housing to determine 
compliance with applicable requirements. <<NOTE: Public information.>>  
The results of each review shall be included in the performance report 
of the recipient submitted to the Secretary under section 404 and 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 Act.

[[Page 110 STAT. 4040]]

SEC. 404. <<NOTE: 25 USC 4164.>>  PERFORMANCE REPORTS.

    (a) Requirement.--For each fiscal year, each recipient shall--
            (1) review the progress it has made during such fiscal year 
        in carrying out the Indian housing plan (or plans) for the 
        Indian tribes for which it administers grant amounts; 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 under this section for a fiscal year 
shall--
            (1) describe the use of grant amounts provided to the 
        recipient for such fiscal year;
            (2) assess the relationship of such use to the goals 
        identified in the Indian housing plan of the grant beneficiary;
            (3) indicate the programmatic accomplishments of the 
        recipient; and
            (4) describe the manner in which the recipient would change 
        its programs as a result of its experiences.

    (c) Submission.--The Secretary shall establish dates for submission 
of reports under this section, and review such reports and make such 
recommendations as the Secretary considers appropriate to carry out the 
purposes of this Act.
    (d) Public Availability.--A recipient preparing a report under this 
section shall make the report publicly available to the citizens in the 
jurisdiction of the recipient in sufficient time to permit such citizens 
to comment on such report prior to its submission to the Secretary, and 
in such manner and at such times as the recipient may determine. The 
report shall include a summary of any comments received by the grant 
beneficiary or recipient from citizens in its jurisdiction regarding its 
program.

SEC. 405. <<NOTE: 25 USC 4165.>>  REVIEW AND AUDIT BY SECRETARY.

    (a) Annual Review.--The Secretary shall, not less than on an annual 
basis, make such reviews and audits as may be necessary or appropriate 
to determine--
            (1) whether the recipient has carried out its eligible 
        activities in a timely manner, has carried out its eligible 
        activities and certifications in accordance with the 
        requirements and the primary objectives of this Act and with 
        other applicable laws, and has a continuing capacity to carry 
        out those activities in a timely manner;
            (2) whether the recipient has complied with the Indian 
        housing plan of the grant beneficiary; and
            (3) whether the performance reports under section 404 of the 
        recipient are accurate.

Reviews under this section shall include, insofar as practicable, onsite 
visits by employees of the Department of Housing and Urban Development.
    (b) Report by Secretary.--The Secretary shall give a recipient not 
less than 30 days to review and comment on a report under this 
subsection. <<NOTE: Public information.>>  After taking into 
consideration the comments of the recipient, the Secretary may revise 
the report and shall make the comments of the recipient and the report, 
with any revisions, readily available to the public not later than 30 
days after receipt of the comments of the recipient.

    (c) Effect of Reviews.--The Secretary may make appropriate 
adjustments in the amount of the annual grants under this Act in 
accordance with the findings of the Secretary pursuant to reviews

[[Page 110 STAT. 4041]]

and audits under this section. The Secretary may adjust, reduce, or 
withdraw grant amounts, or take other action as appropriate in 
accordance with the reviews and audits of the Secretary under this 
section, except that grant amounts already expended on affordable 
housing activities may not be recaptured or deducted from future 
assistance provided on behalf of an Indian tribe.

SEC. 406. <<NOTE: 25 USC 4166.>>  GAO AUDITS.

    To the extent that the financial transactions of Indian tribes and 
recipients of grant amounts under this Act relate to amounts provided 
under this Act, such transactions may be audited by the Comptroller 
General of the United States under such rules and regulations as may be 
prescribed by the Comptroller General. The representatives of the 
General Accounting Office shall have access to all books, accounts, 
records, reports, files, and other papers, things, or property belonging 
to or in use by such tribes and recipients pertaining to such financial 
transactions and 
necessary to facilitate the audit.

SEC. 407. <<NOTE: 25 USC 4167.>>  REPORTS TO CONGRESS.

    (a) In General.--Not later than 90 days after the conclusion of each 
fiscal year in which assistance under this Act is made available, the 
Secretary shall submit to the Congress a report that contains--
            (1) a description of the progress made in accomplishing the 
        objectives of this Act;
            (2) a summary of the use of funds available under this Act 
        during the preceding fiscal year; and
            (3) a description of the aggregate outstanding loan 
        guarantees under title VI.

    (b) Related Reports.--The Secretary may require recipients of grant 
amounts under this Act to submit to the Secretary such reports and other 
information as may be necessary in order for the Secretary to make the 
report required by subsection (a).

       TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER 
                          INCORPORATED PROGRAMS

SEC. 501. REPEAL OF PROVISIONS RELATING TO INDIAN HOUSING ASSISTANCE 
            UNDER UNITED STATES HOUSING ACT OF 1937.

    (a) Repeal of Title II.--Title II of the United States Housing Act 
of 1937 (42 U.S.C 1437aa et seq.) is hereby repealed.
    (b) Amendments to Title I.--Title I of the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 3(b)-- <<NOTE: 42 USC 1437a.>> 
                    (A)in paragraph (5)--
                          (i) in subparagraph (F) by inserting ``and'' 
                      after the semicolon at the end;
                          (ii) by striking subparagraph (G); and
                          (iii) by redesignating subparagraph (H) as 
                      subparagraph (G);
                    (B) in paragraph (6), by striking the last sentence;
                    (C) in paragraph (7)--

[[Page 110 STAT. 4042]]

                          (i) by inserting ``and'' before ``the Trust''; 
                      and
                          (ii) by striking ``, and Indian tribes''; and
                    (D) by striking paragraphs (9), (10), (11), and 
                (12);
            (2) in section 5-- <<NOTE: 42 USC 1437c.>> 
                    (A) in subsection (j)(1), by striking ``(other than 
                for Indian families)''; and
                    (B) by striking subsection (l);
            (3) in section 6(b)(1), <<NOTE: 42 USC 1437d.>>  by striking 
        ``and public housing for Indians and Alaska Natives in 
        accordance with the Indian Housing Act of 1988'';
            (4) in subsection 7, <<NOTE: 42 USC 1437e.>>  by striking 
        subsection (l);
            (5) in section 9(a)(1)(A), <<NOTE: 42 USC 1437g.>>  in the 
        second sentence--
                    (A) by inserting ``and'' after the comma at the end 
                of clause (i); and
                    (B) by striking ``, and (iii)'' and all that follows 
                through ``project is occupied'';
            (6) in section 14-- <<NOTE: 42 USC 1437l.>> 
                    (A) in the section heading, by striking ``and 
                indian'';
                    (B) in subsection (e)(1)(E)--
                          (i) in the matter preceding clause (i), by 
                      striking ``(or Indian tribal official, if 
                      appropriate)'';
                          (ii) in clause (i)--
                                    (I) by striking ``(or Indian tribal 
                                officials)''; and
                                    (II) by striking ``(or tenants of 
                                the Indian housing projects)''; and
                          (iii) in clause (ii), by striking ``(or Indian 
                      tribe)'';
            (7) in section 16-- <<NOTE: 42 USC 1437n.>> 
                    (A) in subsection (d)--
                          (i) by striking the paragraph designation for 
                      paragraph (1); and
                          (ii) by striking paragraph (2); and
                    (B) in subsection (e), by striking paragraph (3);
            (8) in section 23(o), <<NOTE: 42 USC 1437u.>>  by striking 
        paragraph (2);
            (9) in section 24(h)(3), <<NOTE: 42 USC 1437v.>>  by 
        striking ``, except that it does not include any Indian housing 
        authority'';
            (10) in section 25(m)(4), <<NOTE: 42 USC 1437w.>>  by 
        striking ``, except that it does not include Indian housing 
        authorities''; and
            (11) in section 26, <<NOTE: 42 USC 1437x.>>  in subsections 
        (a)(1) and (b), by striking ``(including an Indian housing 
        authority)'' each place it appears.

    (c) Amendments to Title III.--Title III of the United States Housing 
Act of 1937 (42 U.S.C. 1437aaa et seq.) is amended--
            (1) by striking the heading for the title and inserting the 
        following:

          ``TITLE III--HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP'';

            (2) in section 306-- <<NOTE: 42 USC 1437aaa-5.>> 
                    (A) in paragraph (1)(A), by striking ``(including an 
                Indian housing authority)''; and
                    (B) in paragraph (2)(A), by striking ``or Indian''; 
                and
            (3) in section 307, <<NOTE: 42 USC 1437aaa-6.>>  by striking 
        ``and title II''.

    (d) Other Related Provisions.--
            (1) Indian housing child development.--Section 519 of the 
        Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 
        1701z-6 note) is hereby repealed.

[[Page 110 STAT. 4043]]

            (2) Public housing youth sports.--Section 520 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        11903a) is amended--
                    (A) in subsection (b)--
                          (i) in paragraph (5), by inserting ``and'' 
                      after the semicolon at the end;
                          (ii) by striking paragraphs (6) and (7); and
                          (iii) by redesignating paragraph (8) as para-
                      graph (6);
                    (B) in subsection (e)(2), by striking ``Indian 
                tribes,'';
                    (C) in subsection (i)--
                          (i) by striking paragraph (1); and
                          (ii) by redesignating paragraphs (2) through 
                      (7) as paragraphs (1) through (6), respectively; 
                      and
                    (D) in subsection (l)(5)(B), by striking ``units of 
                general local government, and Indian housing 
                authorities'' and inserting ``and Indian housing 
                authorities''.
            (3) Allocation of funds.--Section 213(d)(1)(B)(ii) of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 1439) 
        is amended by striking ``and Indian''.

SEC. 502. <<NOTE: 25 USC 4181.>>  TERMINATION OF INDIAN HOUSING 
            ASSISTANCE UNDER UNITED STATES HOUSING ACT OF 1937.

    (a) Termination of Assistance.--After September 30, 1997, financial 
assistance may not be provided under the United States Housing Act of 
1937 or pursuant to any commitment entered into under such Act, for 
Indian housing developed or operated pursuant to a contract between the 
Secretary and an Indian housing 
authority, unless such assistance is provided from amounts made 
available for fiscal year 1997 and pursuant to a commitment entered into 
before September 30, 1997.
    (b) Termination of Restrictions on Use of Indian 
Housing.--After September 30, 1997, any housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority pursuant to the United States Housing Act of 1937 shall not be 
subject to any provision of such Act or any annual contributions 
contract or other agreement pursuant to such Act, but shall be 
considered and maintained as affordable housing for purposes of this 
Act.

SEC. 503. <<NOTE: 25 USC 4182.>>  TERMINATION OF NEW COMMITMENTS FOR 
            RENTAL 
            ASSISTANCE.

    After September 30, 1997, financial assistance for rental housing 
assistance under the United States Housing Act of 1937 may not be 
provided to any Indian housing authority or tribally designated housing 
entity, unless such assistance is provided pursuant to a contract for 
such assistance entered into by the Secretary and the Indian housing 
authority before such date. Any such assistance provided pursuant to 
such a contract shall be governed by the provisions of the United States 
Housing Act of 1937 (as in effect before the date of the effectiveness 
of this Act) and the provisions of such contract.

SEC. 504. TERMINATION OF YOUTHBUILD PROGRAM ASSISTANCE.

    (a) In General.--Subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et seq.) is 
amended--
            (1) by redesignating section 460 <<NOTE: 42 USC 12899i.>>  
        as section 461; and

[[Page 110 STAT. 4044]]

            (2) by inserting after section 459 the following new 
        section:

``SEC. 460. <<NOTE: 42 USC 12899h-1.>>  INELIGIBILITY OF INDIAN TRIBES.

    ``Indian tribes, Indian housing authorities, and other agencies 
primarily serving Indians or Indian areas shall not be eligible 
applicants for amounts made available for assistance under this subtitle 
for fiscal year 1997 and fiscal years thereafter.''.
    (b) <<NOTE: 42 USC 12899h-1 note.>>  Applicability.--The amendments 
under subsection (a) shall apply with respect to amounts made available 
for assistance under subtitle D of title II of the Cranston-Gonzalez 
National Affordable Housing Act for fiscal year 1998 and fiscal years 
thereafter.

SEC. 505. TERMINATION OF HOME PROGRAM ASSISTANCE.

    (a) In General.--Title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended--
            (1) in section 217(a)-- <<NOTE: 42 USC 12747.>> 
                    (A) in paragraph (1), by striking ``reserving 
                amounts under paragraph (2) for Indian tribes and 
                after''; and
                    (B) by striking paragraph (2); and
            (2) in section 288-- <<NOTE: 42 USC 12838.>> 
                    (A) in subsection (a), by striking ``, Indian 
                tribes,'';
                    (B) in subsection (b), by striking ``, Indian 
                tribe,''; and
                    (C) in subsection (c)(4), by striking ``, Indian 
                tribe,''.

    (b) <<NOTE: 42 USC 12747 note.>>  Applicability.--The amendments 
under subsection (a) shall apply with respect to amounts made available 
for assistance under title II of the Cranston-Gonzalez National 
Affordable Housing Act for fiscal year 1998 and fiscal years thereafter.

SEC. 506. TERMINATION OF HOUSING ASSISTANCE FOR THE 
            HOMELESS.

    (a) McKinney Act Programs.--Title IV of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended--
            (1) in section 411, <<NOTE: 42 USC 11371.>>  by striking 
        paragraph (10);
            (2) in section 412, <<NOTE: 42 USC 11372.>>  by striking ``, 
        and for Indian tribes,'';
            (3) in section 413-- <<NOTE: 42 USC 11373.>> 
                    (A) in subsection (a)--
                          (i) by striking ``, and to Indian tribes,''; 
                      and
                          (ii) by striking ``, or for Indian tribes'' 
                      each place it appears;
                    (B) in subsection (c), by striking ``or Indian 
                tribe''; and
                    (C) in subsection (d)(3)--
                          (i) by striking ``, or Indian tribe'' each 
                      place it appears; and
                          (ii) by striking ``, or other Indian 
                      tribes,'';
            (4) in section 414(a)-- <<NOTE: 42 USC 11374.>> 
                    (A) by striking ``or Indian tribe'' each place it 
                appears; and
                    (B) by striking ``, local government,'' each place 
                it appears and inserting ``or local government'';
            (5) in section 415(c)(4), <<NOTE: 42 USC 11375.>>  by 
        striking ``Indian tribes,'';
            (6) in section 416(b), <<NOTE: 42 USC 11376.>>  by striking 
        ``Indian tribe,'';
            (7) in section 422-- <<NOTE: 42 USC 11382.>> 
                    (A) by striking ``Indian tribe,''; and
                    (B) by striking paragraph (3);
            (8) in section 441-- <<NOTE: 42 USC 11401.>> 
                    (A) by striking subsection (g);

[[Page 110 STAT. 4045]]

                    (B) in subsection (h), by striking ``or Indian 
                housing authority''; and
                    (C) in subsection (j)(1), by striking ``, Indian 
                housing authority'';
            (9) in section 462-- <<NOTE: 42 USC 11403g.>> 
                    (A) in paragraph (2), by striking ``, Indian 
                tribe,''; and
                    (B) by striking paragraph (4); and
            (10) in section 491(e), <<NOTE: 42 USC 11408.>>  by striking 
        ``, Indian tribes (as such term is defined in section 102(a) of 
        the Housing and Community Development Act of 1974),''.

    (b) Innovative Homeless Demonstration.--Section 2(b) of the HUD 
Demonstration Act of 1993 (42 U.S.C. 11301 note) is amended--
            (1) in paragraph (3), by striking `` `unit of general local 
        government', and `Indian tribe' '' and inserting ``and `unit of 
        general local government' ''; and
            (2) in paragraph (4), by striking ``unit of general local 
        government (including units in rural areas), or Indian tribe'' 
        and inserting ``or unit of general local government''.

    (c) <<NOTE: 42 USC 11371 note.>>  Applicability.--The amendments 
under subsections (a) and (b) shall apply with respect to amounts made 
available for assistance under title IV of the Stewart B. McKinney 
Homeless Assistance Act and section 2 of the HUD Demonstration Act of 
1993, respectively, for fiscal year 1998 and fiscal years thereafter.

SEC. 507. <<NOTE: 25 USC 4183.>>  SAVINGS PROVISION.

    (a) Existing Rights and Duties.--Except as provided in 
sections 502 and 503, this Act may not be construed to affect the 
validity of any right, duty, or obligation of the United States or other 
person arising under or pursuant to any commitment or agreement lawfully 
entered into before October 1, 1997, under the United States Housing Act 
of 1937, subtitle D of title IV of the Cranston-Gonzalez National 
Affordable Housing Act, title II of the Cranston-Gonzalez National 
Affordable Housing Act, title IV of the Stewart B. McKinney Homeless 
Assistance Act, or section 2 of the HUD Demonstration Act of 1993.
    (b) Obligations Under Repealed Provisions.--Notwithstanding the 
amendments made by this title, any obligation of the 
Secretary made under or pursuant to subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act, title II of the 
Cranston-Gonzalez National Affordable Housing Act, title IV of the 
Stewart B. McKinney Homeless Assistance Act, or section 2 of the HUD 
Demonstration Act of 1993 shall continue to be governed by the 
provisions of such Acts (as in effect before the date of the 
effectiveness of the amendments made by this title).

SEC. 508. <<NOTE: 25 USC 4181 note.>>  EFFECTIVE DATE.

    Sections 502, 503, and 507 shall take effect on the date of the 
enactment of this Act.

[[Page 110 STAT. 4046]]

     TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
                               ACTIVITIES

SEC. 601. <<NOTE: 25 USC 4191.>>  AUTHORITY AND REQUIREMENTS.

    (a) Authority.--To such extent or in such amounts as provided in 
appropriations Acts, the Secretary may, subject to the limitations of 
this title (including limitations designed to protect and maintain the 
viability of rental housing units owned or operated by the recipient 
that were developed under a contract between the 
Secretary and an Indian housing authority pursuant to the United States 
Housing Act of 1937), and upon such terms and conditions as the 
Secretary may prescribe, guarantee and make commitments to guarantee, 
the notes or other obligations issued by Indian tribes or tribally 
designated housing entities with tribal approval, for the purposes of 
financing affordable housing activities described in section 202.
    (b) Lack of Financing Elsewhere.--A guarantee under this title may 
be used to assist an Indian tribe or housing entity in obtaining 
financing only if the Indian tribe or housing entity has made efforts to 
obtain such financing without the use of such guarantee and cannot 
complete such financing consistent with the timely execution of the 
program plans without such guarantee.
    (c) Terms of Loans.--Notes or other obligations guaranteed pursuant 
to this title shall be in such form and denominations, have such 
maturities, and be subject to such conditions as may be prescribed by 
regulations issued by the Secretary. The Secretary may not deny a 
guarantee under this title on the basis of the proposed repayment period 
for the note or other obligation, unless the period is more than 20 
years or the Secretary determines that the period causes the guarantee 
to constitute an unacceptable financial risk.
    (d) Limitation on Outstanding Guarantees.--No guarantee or 
commitment to guarantee shall be made with respect to any note or other 
obligation if the total outstanding notes or obligations of the issuer 
guaranteed under this title (excluding any amount defeased under the 
contract entered into under section 602(a)(1)) would thereby exceed an 
amount equal to 5 times the amount of the grant approval for the issuer 
pursuant to title III.

SEC. 602. <<NOTE: 25 USC 4192.>>  SECURITY AND REPAYMENT.

    (a) Requirements on Issuer.--To assure the repayment of notes or 
other obligations and charges incurred under this title and as a 
condition for receiving such guarantees, the Secretary shall require the 
Indian tribe or housing entity issuing such notes or obligations to--
            (1) <<NOTE: Contracts.>>  enter into a contract, in a form 
        acceptable to the 
        Secretary, for repayment of notes or other obligations 
        guaranteed under this title;
            (2) pledge any grant for which the issuer may become 
        eligible under this Act;
            (3) demonstrate that the extent of such issuance and 
        guarantee under this title is within the financial capacity of 
        the tribe and is not likely to impair the ability to use grant

[[Page 110 STAT. 4047]]

        amounts under title I, taking into consideration the 
        requirements under section 203(b); and
            (4) furnish, at the discretion of the Secretary, such other 
        security as may be deemed appropriate by the Secretary in making 
        such guarantees, including increments in local tax receipts 
        generated by the activities assisted under this Act or 
        disposition proceeds from the sale of land or rehabilitated 
        property.

    (b) Repayment From Grant Amounts.--Notwithstanding any other 
provision of this Act--
            (1) the Secretary may apply grants pledged pursuant to 
        subsection (a)(2) to any repayments due the United States as a 
        result of such guarantees; and
            (2) grants allocated under this Act for an Indian tribe or 
        housing entity (including program income derived therefrom) may 
        be used to pay principal and interest due (including such 
        servicing, underwriting, and other costs as may be specified in 
        regulations issued by the Secretary) on notes or other 
        obligations guaranteed pursuant to this title.

    (c) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees made under this 
title. Any such guarantee made by the Secretary shall be conclusive 
evidence of the eligibility of the obligations for such guarantee with 
respect to principal and interest, and the validity of any such 
guarantee so made shall be incontestable in the hands of a holder of the 
guaranteed obligations.

SEC. 603. <<NOTE: 25 USC 4193.>>  PAYMENT OF INTEREST.

    The Secretary may make, and contract to make, grants, in such 
amounts as may be approved in appropriations Acts, to or on behalf of an 
Indian tribe or housing entity issuing notes or other obligations 
guaranteed under this title, to cover not to exceed 30 percent of the 
net interest cost (including such servicing, underwriting, or other 
costs as may be specified in regulations of the Secretary) to the 
borrowing entity or agency of such obligations. The Secretary may also, 
to the extent approved in appropriations Acts, assist the issuer of a 
note or other obligation guaranteed under this title in the payment of 
all or a portion of the principal and interest amount due under the note 
or other obligation, if the Secretary determines that the issuer is 
unable to pay the amount because of circumstances of extreme hardship 
beyond the control of the issuer.

SEC. 604. <<NOTE: 25 USC 4194.>>  TRAINING AND INFORMATION.

    The Secretary, in cooperation with eligible public entities, shall 
carry out training and information activities with respect to the 
guarantee program under this title.

SEC. 605. <<NOTE: 25 USC 4195.>>  LIMITATIONS ON AMOUNT OF GUARANTEES.

    (a) Aggregate Fiscal Year Limitation.--Notwithstanding any other 
provision of law and subject only to the absence of qualified applicants 
or proposed activities and to the authority provided in this title, to 
the extent approved or provided in appropriations Acts, the Secretary 
may enter into commitments to 
guarantee notes and obligations under this title with an aggregate 
principal amount not to exceed $400,000,000 for each of fiscal years 
1997, 1998, 1999, 2000, and 2001.

[[Page 110 STAT. 4048]]

    (b) Authorization of Appropriations for Credit Subsidy.--There are 
authorized to be appropriated to cover the costs (as such term is 
defined in section 502 of the Congressional Budget Act of 1974) of 
guarantees under this title such sums as may be necessary for each of 
fiscal years 1997, 1998, 1999, 2000, and 2001.
    (c) Aggregate Outstanding Limitation.--The total amount of 
outstanding obligations guaranteed on a cumulative basis by the 
Secretary pursuant to this title shall not at any time exceed 
$2,000,000,000 or such higher amount as may be authorized to be 
appropriated for this title for any fiscal year.
    (d) Fiscal Year Limitations on Tribes.--The Secretary shall monitor 
the use of guarantees under this title by Indian tribes. If the 
Secretary finds that 50 percent of the aggregate guarantee authority 
under subsection (c) has been committed, the Secretary may--
            (1) impose limitations on the amount of guarantees any one 
        Indian tribe may receive in any fiscal year of $50,000,000; or
            (2) request the enactment of legislation increasing the 
        aggregate outstanding limitation on guarantees under this title.

SEC. 606. <<NOTE: 25 USC 4191 note.>>  EFFECTIVE DATE.

    This title shall take effect on the date of the enactment of this 
Act.

        TITLE VII--OTHER HOUSING ASSISTANCE FOR NATIVE AMERICANS

SEC. 701. LOAN GUARANTEES FOR INDIAN HOUSING.

    (a) Definition of Eligible Borrowers To Include Indian Tribes.--
Section 184 of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a) <<NOTE: 12 USC 1715z-13a.>>  is amended--
            (1) in subsection (a)--
                    (A) by striking ``and Indian housing authorities'' 
                and inserting ``, Indian housing authorities, and Indian 
                tribes,''; and
                    (B) by striking ``or Indian housing authority'' and 
                inserting ``, Indian housing authority, or Indian 
                tribe''; and
            (2) in subsection (b)(1), by striking ``or Indian housing 
        authorities'' and inserting ``, Indian housing authorities, or 
        Indian tribes''.

    (b) Need for Loan Guarantee.--Section 184(a) of the Housing and 
Community Development Act of 1992 (12 U.S.C. 1715z-13a(a)) is amended by 
striking ``trust land'' and inserting ``lands or as a result of a lack 
of access to private financial markets''.
    (c) IHP Requirement.--Section 184(b)(2) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) is amended by 
inserting before the period at the end the following: ``that is under 
the jurisdiction of an Indian tribe for which an Indian housing plan has 
been submitted and approved pursuant to sections 102 and 103 of the 
Native American Housing Assistance and Self-Determination Act of 1996 
that provides for the use of loan guarantees under this section to 
provide affordable homeownership housing in such areas''.

[[Page 110 STAT. 4049]]

    (d) Lender Option To Obtain Payment Upon Default 
Without Foreclosure.--Section 184(h) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-13a(h)) is amended--
            (1) in paragraph (1)(A)--
                    (A) in the first sentence of clause (i), by striking 
                ``in a court of competent jurisdiction''; and
                    (B) by striking clause (ii) and inserting the 
                following:
                          ``(ii) No foreclosure.--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 interests of the United States. Upon 
                      assignment, the Secretary shall pay to the holder 
                      of the 
                      guarantee the pro rata portion of the amount 
                      guaranteed (as determined under subsection (e)). 
                      The 
                      Secretary shall be subrogated to the rights of the 
                      holder of the guarantee and the holder shall 
                      assign the obligation and security to the 
                      Secretary.'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

    (e) Limitation of Mortgagee Authority.--Section 184(h)(2) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
13a(h)(2)), as so redesignated by subsection (e)(3) of this section, is 
amended--
            (1) in the first sentence, by striking ``tribal allotted or 
        trust land,'' and inserting ``restricted Indian land, the 
        mortgagee or''; and
            (2) in the second sentence, by striking ``Secretary'' each 
        place it appears, and inserting ``mortgagee or the Secretary''.

    (f) Limitation on Outstanding Aggregate Principal Amount.--Section 
184(i)(5)(C) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1715z-13a(i)(5)(C)) is amended by striking ``1993'' and all that 
follows through ``such year'' and inserting ``1997, 1998, 1999, 2000, 
and 2001 with an aggregate outstanding principal amount note exceeding 
$400,000,000 for each such fiscal year''.
    (g) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-13a(i)(7)) is amended by 
striking ``such sums'' and all that follows through ``1994'' and 
inserting ``such sums as may be necessary for each of fiscal years 1997, 
1998, 1999, 2000, and 2001''.
    (h) Definitions.--Section 184(k) of the Housing and 
Community Development Act of 1992 (12 U.S.C. 1715z-13a(k)) is amended--
            (1) in paragraph (4), by inserting after ``authority'' the 
        following: ``or Indian tribe'';
            (2) in paragraph (5)--
                    (A) by striking subparagraph (A) and inserting the 
                following new subparagraph:

[[Page 110 STAT. 4050]]

                    ``(A) is authorized to engage in or assist in the 
                development or operation of--
                          ``(i) low-income housing for Indians; or
                          ``(ii) housing subject to the provisions of 
                      this section; and''; and
                    (B) by adding at the end the following:
        ``The term includes tribally designated housing entities under 
        the Native American Housing Assistance and Self-Determination 
        Act of 1996.''; and
            (3) by striking paragraph (8) and inserting the following 
        new paragraph:
            ``(8) Tribe; indian tribe.--The term `tribe' or `Indian 
        tribe' means any Indian tribe, band, nation, or other organized 
        group or community of Indians, including any Alaska Native 
        village or regional or village corporation as defined in or 
        established pursuant to the Alaska Native Claims Settlement Act, 
        that is recognized as eligible for the special programs and 
        services provided by the United States to Indians because of 
        their status as Indians pursuant to the Indian Self-
        Determination and Education Assistance Act of 1975.''.

    (i) Principal Obligation Amounts.--Section 184(b)(5)(C) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
13a(b)(5)(C)) is amended by striking clause (i) and inserting the 
following new clause:
                          ``(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); and''.

    (j) Availability of Amounts.--
            (1) Requirement of appropriations.--Section 184(i)(5) of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
        13a(i)(5)) is amended by striking subparagraph (A) and inserting 
        the following:
                    ``(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.''.
            (2) Costs.--Section 184(i)(5)(B) of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13a(i)(5)(B)) 
        is amended by adding at the end the following new sentence: 
        ``Any amounts appropriated pursuant to this subparagraph shall 
        remain available until expended.''.

    (k) GNMA Authority.--The first sentence of section 306(g)(1) of the 
Federal National Mortgage Association Charter Act (12 U.S.C. 1721(g)(1)) 
is amended by inserting before the period at the end the following: ``; 
or guaranteed under section 184 of the Housing and Community Development 
Act of 1992''.

SEC. 702. <<NOTE: 25 USC 4211.>>  50-YEAR LEASEHOLD INTEREST IN TRUST OR 
            RESTRICTED LANDS FOR HOUSING PURPOSES.

    (a) Authority To Lease.--Notwithstanding any other provision of law, 
any trust or restricted Indian lands, whether tribally or individually 
owned, may be leased by the Indian owners, subject to the approval of 
the affected Indian tribe and the Secretary of the Interior, for housing 
development and residential purposes.

[[Page 110 STAT. 4051]]

    (b) Term.--Each lease pursuant to subsection (a) shall be for a term 
not exceeding 50 years.
    (c) Rule of Construction.--This section may not be construed to 
repeal, limit, or affect any authority to lease any trust or restricted 
Indian lands that--
            (1) is conferred by or pursuant to any other provision of 
        law; or
            (2) provides for leases for any period exceeding 50 years.

    (d) Self-Implementation.--This section is intended to be self-
implementing and shall not require the issuance of any rule, 
regulation, or order to take effect as provided in section 705.

SEC. 703. <<NOTE: 25 USC 4212. Appropriation authorization.>>  TRAINING 
            AND TECHNICAL ASSISTANCE.

    There are authorized to be appropriated for assistance for a 
national organization representing Native American housing interests for 
providing training and technical assistance to Indian housing 
authorities and tribally designated housing entities such sums as may be 
necessary for each of fiscal years 1997, 1998, 1999, 2000, and 2001.

SEC. 704. PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION ACT OF 1990.

    The Public and Assisted Housing Drug Elimination Act of 1990 (42 
U.S.C. 11901 et seq.) is amended--
            (1) in section 5123-- <<NOTE: 42 USC 11902.>> 
                    (A) by striking ``(including Indian Housing 
                Authorities)''; and
                    (B) by inserting ``tribally designated housing 
                entities,'' before ``and private''; and
            (2) in section 5124(a)(7)-- <<NOTE: 42 USC 11903.>> 
                    (A) by inserting ``or tribally designated housing 
                entity'' after ``public housing agency''; and
                    (B) by striking ``public housing'' after nonprofit;
            (3) in section 5125, <<NOTE: 42 USC 11904.>>  by inserting 
        ``a tribally designated housing entity,'' after ``resident 
        management corporation,''; and
            (4) in section 5126-- <<NOTE: 42 USC 11905.>> 
                    (A) in paragraph (4)--
                          (i) in subparagraph (B), by striking ``or'' at 
                      the end;
                          (ii) in subparagraph (C), by striking the 
                      period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following new 
                      subparagraph:
                    ``(D) the Native American Housing Assistance and 
                Self-Determination Act.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) Tribally designated housing entity.--The term 
        `tribally designated housing entity' has the meaning given such 
        term in section 4 of the Native American Housing Assistance and 
        Self-Determination Act of 1996.''.

[[Page 110 STAT. 4052]]

SEC. 705. <<NOTE: 25 USC 4211 note.>>  EFFECTIVE DATE.

    This title and the amendments made by this title (but not including 
the amendments made by section 704) shall take effect on the date of the 
enactment of this Act.

    Approved October 26, 1996.

LEGISLATIVE HISTORY--H.R. 3219:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 142 (1996):
            Sept. 28, considered and passed House.
            Oct. 3, considered and passed Senate.

                                  <all>