American Homeownership and Economic Opportunity Act of 2000

114 STAT. 2944 PUBLIC LAW 106-569—DEC. 27, 2000
Public Law 106-569
106th Congress
Dec. 27, 2000
[H.R. 5640]
American
Homeownership
and Economic
Opportunity Act
of2000.
12 use 1701
note. An Act
To expand homeownership in the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION. 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—^This Act may be cited as the "American
Homeownership and Economic Opportunity Act of 2000".
(b) TABLE OF CONTENTS.—^The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY
Sec. 101. Short title.
Sec. 102. Grants for regulatory barrier removal strategies.
Sec. 103. Regulatory barriers clearinghouse.
TITLE II—HOMEOWNERSHIP FOR WORKING FAMILIES
Sec. 201. Home equity conversion mortgages.
Sec. 202. Assistance for self-help housing providers.
TITLE III—SECTION 8 HOMEOWNERSHIP OPTION
Sec. 301. Downpajmaent assistance.
Sec. 302. Pilot program for homeownership assistance for disabled families.
Sec. 303. Funding for pilot programs.
TITLE IV—PRIVATE MORTGAGE INSURANCE CANCELLATION AND
TERMINATION
Sec. 401. Short title.
Sec. 402. Changes in amortization schedule.
Sec. 403. Deletion of ambiguous references to residential mortgages.
Sec. 404. Cancellation rights after cancellation date.
Sec. 405. Clarification of cancellation and termination issues and lender paid mort­
gage insurance disclosure requirements.
Sec. 406. Definitions.
TITLE V—NATIVE AMERICAN HOMEOWNERSHIP
Subtitle A—Native American Housing
Sec. 501. Lands title report commission.
Sec. 502. Loan guarantees.
Sec. 503. Native American housing assistance.
Subtitle B—Native Hawaiian Housing
Sec. 511. Short title.
Sec. 512. Findings.
Sec. 513. Housing assistance.
Sec. 514. Loan guarantees.
TITLE VI—MANUFACTURED HOUSING IMPROVEMENT
Sec. 601. Short title; references. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2945
Sec. 602. Findings and purposes.
Sec. 603. Definitions.
Sec. 604. Federal manufactured home construction and safety standards.
Sec. 605. Abolishment of National Manufactured Home Advisory Council; manufac­
tured home installation.
Sec. 606. Public information.
Sec. 607. Research, testing, development, and training.
Sec. 608. Prohibited acts.
Sec. 609. Fees.
Sec. 610. Dispute resolution.
Sec. 611. Elimination of annual reporting requirement.
Sec. 612. Effective date.
Sec. 613. Savings provisions.
TITLE VII—RURAL HOUSING HOMEOWNERSHIP
Sec. 701. Guarantees for refinancing of rural housing loans.
Sec. 702. Promissory note requirement vmder housing repair loan program.
Sec. 703. Limited partnership eligibility for farm labor housing loans.
Sec. 704. Pnyect accounting records and practices.
Sec. 705. Definition of rural area.
Sec. 706. Operating assistance for migrant farmworkers projects.
Sec. 707. Multifamily rental housing loan guarantee program.
Sec. 708. Enforcement provisions.
Sec. 709. Amendments to title 18 of United States Code.
TITLE VIII—HOUSING FOR ELDERLY AND DISABLED FAMILIES
Sec. 801. Short title.
Sec. 802. Regulations.
Sec. 803. Effective date.
Subtitle A—^Refinancing for Section 202 Supportive Housing for the Elderly
Sec. 811. Prepayment and refinancing.
Subtitle B—^Authorization of Appropriations for Supportive Housing for the Elderly
and Persons With Disabilities
Sec. 821. Supportive housing for elderly persons.
Sec. 822. Supportive housing for persons with disabilities.
Sec. 823. Service coordinators and congregate services for elderly and disabled
housing.
Subtitle C—Expanding Housing Opportunities for the Elderly and Persons With
Disabilities
PART 1—HOUSING FOR THE ELDERLY
Sec. 831. Eligibility of for-profit limited partnerships.
Sec. 832. Mixed funding sources.
Sec. 833. Authority to acquire structures.
Sec. 834. Use of project reserves.
Sec. 835. Commercial activities.
PART 2—^HOUSING FOR PERSONS WITH DISABILITIES
Sec. 841. EUgibihty of for-profit limited partnerships.
Sec. 842. Mixed fimding sources.
Sec. 843. Tenant-based assistance.
Sec. 844. Use of project reserves.
Sec. 845. Commercial activities.
PART 3—OTHER PROVISIONS
Sec. 851. Service coordinators.
Subtitle D—Preservation of Affordable Housing Stock
Sec. 861. Section 236 assistance.
TITLE IX—OTHER RELATED HOUSING PROVISIONS
Sec. 901. Extension of loan term for manufactured home lots.
Sec. 902. Use of section 8 vouchers for opt-outs.
Sec. 903. Maximum payment standard for enhanced vouchers.
Sec. 904. Use of section 8 assistance by "grand-families" to rent dwelling units in
assisted projects. 114 STAT. 2946 PUBLIC LAW 106-569—DEC. 27, 2000
Housing
Affordability
Barrier Removal
Act of 2000.
42 use 12701
note. TITLE X—FEDERAL RESERVE BOARD PROVISIONS
Sec. 1001. Federal Reserve Board buildings.
Sec. 1002. Positions of Board of Governors of the Federal Reserve System on the
Executive schedule.
Sec. 1003. Amendments to the Federal Reserve Act.
TITLE XI—BANKING AND HOUSING AGENCY REPORTS
Sec. 1101. Short title.
Sec. 1102. Preservation of certain reporting requirements.
Sec. 1103. Coordination of reporting requirements.
Sec. 1104. Elimination of certain reporting requirements.
TITLE XII—FINANCIAL REGULATORY RELIEF
Sec. 1200. Short title.
Subtitle A—Improving Monetary Pohcy and Financial Institution Management
Practices
Sec. 1201.
Sec. 1202.
Sec. 1203.
Sec. 1204.
Sec. 1205.
Sec. 1206.
Sec. 1207.
Sec. 1208. Repeal of savings association liquidity provision.
NoncontroUing investments by savings association holding companies.
Repeal of deposit broker notification and recordkeeping requirement.
Expedited procedures for certain reorganizations.
National bank directors.
Amendment to National Bank Consolidation and Merger Act.
Loans on or purchases by institutions of their own stock; affiliations.
Purchased mortgage servicing rights.
Subtitle B—Streamlining Activities of Institutions
Sec. 1211. Call report simplification.
Subtitle C—Streamlining Agency Actions
Sec. 1221. Elimination of duplicative disclosure of fair market value of assets and
liabilities.
Sec. 1222. Payment of interest in receiverships with surplus funds.
Sec. 1223. Repeal of reporting requirement on differences in accounting standards.
Sec. 1224. Extension oi time.
Subtitle D—^Technical Corrections
Sec. 1231. Technical correction relating to deposit insurance funds.
Sec. 1232. Rules for continuation of deposit insurance for member banks converting
charters.
Sec. 1233. Amendments to the Revised Statutes of the United States.
Sec. 1234. Conforming change to the International Banking Act of 1978.
TITLE I—REMOVAL OF BARRIERS TO
HOUSING AFFORDABILITY
SEC.lOl. SHORT TITLE.
This title may be cited as the "Housing Affordability Barrier
Removal Act of 2000".
SEC. 102. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.
(a) AUTHORIZATION OF APPROPRIATIONS.—Subsection (a) of sec­
tion 1204 of the Housing and Community Development Act of
1992 (42 U.S.C. 12705c(a)) is amended to read as follows:
"(a) FUNDING.—^There is authorized to be appropriated for
grants under subsections (b) and (c) such sums as may be necessEiry
for each of fiscal years 2001, 2002, 2003, 2004, and 2005.".
(b) CONSOLIDATION OF STATE AND LOCAL GRANTS.—Subsection
(b) of section 1204 of the Housing and Community Development
Act of 1992 (42 U.S.C. 12705c(b)) is amended—
(1) in the subsection heading, by striking "STATE GRANTS"
and inserting "GRANT AUTHORITY";
(2) in the matter preceding paragraph (1), by inserting
after "States" the following: "and units of general local govern­
ment (including consortia of such governments)"; PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2947
(3) in paragraph (3), by striking "a State program to reduce
State and local" and inserting "State, local, or regional pro­
grams to reduce";
(4) in paragraph (4), by inserting "or local" after "State";
and
(5) in paragraph (5), by striking "State".
(c) REPEAL OF LOCAL GRANTS PROVISION.—Section 1204 of the
Housing and Community Development Act of 1992 (42 U.S.C.
12705c) is amended by striking subsection (c).
(d) APPLICATION AND SELECTION.—^The last sentence of section
1204(e) of the Housing and Community Development Act of 1992
(42 U.S.C. 12705c(e)) is amended—
(1) by striking "and for the selection of units of general
local government to receive grants under subsection (f)(2)";
and
(2) by inserting before the period at the end the following:
"and such criteria shall require that grant amounts be used
in a manner consistent with the strategy contained in the
comprehensive housing affordability strategy for the jurisdiction
pursuant to section 105(b)(4) of the Cranston-Gonzalez National
Affordable Housing Act".
(e) SELECTION OF GRANTEES.—Subsection (f) of section 1204
of the Housing and Community Development Act of 1992 (42 U.S.C.
12705c(f)) is amended to read as follows:
"(f) SELECTION OF GRANTEES.—To the extent amounts are made
available to carry out this section, the Secretary shall provide
grants on a competitive basis to eligible grantees based on the
proposed uses of such amounts, as provided in applications under
subsection (e).".
(f) TECHNICAL AMENDMENTS.—Section 107(a)(1) of the Housing
and Community Development Act of 1974 (42 U.S.C. 5307(a)(1))
is amended—
(1) in subparagraph (G), by inserting "and" after the semi­
colon at the end;
(2) by striking subparagraph (H); and
(3) by redesignating subparagraph (I) as subparagraph (H).
SEC. 103. REGULATORY BARRIERS CLEARINGHOUSE.
Section 1205 of the Housing and Community Development Act
of 1992 (42 U.S.C. 12705d) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1), by striking
"receive, collect, process, and assemble" and inserting
"serve as a national repository to receive, collect, process,
assemble, and disseminate";
(B) in paragraph (1)—
(i) by striking ", including" and inserting
"(including"; and
(ii) by inserting before the semicolon at the end
the following: "), and the prevalence and effects on
affordable housing of such laws, regulations, and poli­
cies";
(C) in paragraph (2), by inserting before the semicolon
the following: ", including particularly innovative or
successful activities, strategies, and plans"; and 114 STAT. 2948 PUBLIC LAW 106-569—DEC. 27, 2000
(D) in paragraph (3), by inserting before the period
at the end the following: ", including particularly innovative
or successful strategies, activities, and plans";
(2) in subsection (b)—
(A) in paragraph (1), by striking "and" at the end;
(B) in paragraph (2), by striking the period at the
end and inserting "; and"; and
(C) by adding at the end the following new paragraph:
"(3) by making available through a World Wide Web site
of the Department, by electronic mail, or otherwise, provide
to each housing agency of a unit of general local government
that serves an area having a population greater than 100,000,
an index of all State and local strategies and plans submitted
under subsection (a) to the clearinghouse, which—
"(A) shall describe the types of barriers to affordable
housing that the strategy or plan was designed to amelio­
rate or remove; and
Deadline. "(B) shall, not later than 30 days after submission
to the clearinghouse of any new strategy or plan, be
updated to include the new strategy or plan submitted.";
and
(3) by adding at the end the following new subsections:
"(c) ORGANIZATION.—^The clearinghouse under this section shall
be established within the Office of Policy Development of the
Department of Housing and Urban Development and shall be under
the direction of the Assistant Secretary for Policy Development
and Research.
Deadline. "(d) TIMING.—^The clearinghouse under this section (as amended
by section 103 of the Housing Affordability Barrier Removal Act
of 2000) shall be established and commence carrying out the func­
tions of the clearinghouse under this section not later than 1 year
Eifter the date of the enactment of such Act. The Secretary of
Housing and Urban Development may comply with the require­
ments under this section by reestablishing the clearinghouse that
was originally established to comply with this section and updating
and improving such clearinghouse to the extent necessary to comply
with the requirements of this section as in effect pursuant to
the enactment of such Act.".
TITLE II—HOMEOWNERSHIP FOR
WORKING FAMILIES
SEC. 201. HOME EQUITY CONVERSION MORTGAGES.
(a) INSURANCE FOR MORTGAGES TO REFINANCE EXISTING
HECMs.—
(1) IN GENERAL.—Section 255 of the National Housing Act
(12 U.S.C. 1715Z-20) is amended—
(A) by redesignating subsection (k) as subsection (m);
and
(B) by inserting after subsection (j) the following new
subsection:
"(k) INSURANCE AUTHORITY FOR REFINANCINGS.—
"(1) IN GENERAL.—^The Secretary may, upon application
by a mortgagee, insure under this subsection any mortgage
given to refinance an existing home equity conversion mortgage
insured under this section. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2949
"(2) ANTI-CHURNING DISCLOSURE.—^The Secretary shall, by
regulation, require that the mortgagee of a mortgage insured
under this subsection, provide to the mortgagor, within an
appropriate time period and in a manner established in such
regulations, a good faith estimate of: (A) the total cost of the
refinancing; and (B) the increase in the mortgagor's principal
limit as measured by the estimated initial principal limit on
the mortgage to be insured under this subsection less the
current principal limit on the home equity conversion mortgage
that is being refinanced and insured under this subsection.
"(3) WAIVER OF COUNSELING REQUIREMENT.—The mortgagor
under a mortgage insured under this subsection may waive
the applicability, with respect to such mortgage, of the require­
ments under subsection (d)(2)(B) (relating to third party coun­
seling), but only if—
"(A) the mortgagor has received the disclosure required
under paragraph (2);
"(B) the increase in the principal limit described in
paragraph (2) exceeds the amount of the total cost of refi­
nancing (as described in such paragraph) by an amount
to be determined by the Secretary; and
"(C) the time between the closing of the original home
equity conversion mortgage that is refinanced through the
mortgage insured under this subsection and the application
for a refinancing mortgage insured under this subsection
does not exceed 5 years.
"(4) CREDIT FOR PREMIUMS PAID.—Notwithstanding section
203(c)(2)(A), the Secretary may reduce the amount of the single
premium payment otherwise collected under such section at
the time of the insurance of a mortgage refinanced and insured
under this subsection. The amount of the single premium for
mortgages refinanced under this subsection shall be determined
by the Secretary based on the actuarial study required under
paragraph (5).
"(5) ACTUARIAL STUDY.—^Not later than 180 days after the Deadline,
date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, the Secretary shall conduct
an actuarial analysis to determine the adequacy of the insur­
ance premiums collected under the program under this sub­
section with respect to—
"(A) a reduction in the single premium payment col­
lected at the time of the insurance of a mortgage refinanced
and insured under this subsection;
"(B) the establishment of a single national limit on
the benefits of insurance under subsection (g) (relating
to limitation on insurance authority); and
"(C) the combined effect of reduced insurance pre­
miums and a single national limitation on insurance
authority.
"(6) FEES.—The Secretary may establish a limit on the
origination fee that may be charged to a mortgagor under
a mortgage insured under this subsection, except that such
limitation shall provide that the origination fee may be fully
financed with the mortgage and shall include any fees paid
to correspondent mortgagees approved by the Secretary.".
(2) REGULATIONS.—^The Secretary shall issue any final Deadline.
regulations necessary to implement the amendments made by 12 USC i7i5z-20
note. 114 STAT. 2950 PUBLIC LAW 106-569—DEC. 27, 2000
paragraph (1) of this subsection, which shall take effect not
later than the expiration of the 180-day period beginning on
Notice. the date of the enactment of this Act. The regulations shall
be issued after notice and opportunity for public comment in
accordance with the procedure under section 553 of title 5,
United States Code, applicable to substantive rules (notwith­
standing subsections (a)(2), (b)(B), and (d)(3) of such section).
(b) HOUSING COOPERATIVES.—Section 255(b) of the National
Housing Act (12 U.S.C. 1715z-20(b)) is amended—
(1) in paragraph (2), by striking " 'mortgage',"; and
(2) by adding at the end the following new paragraphs:
"(4) MORTGAGE.—^The term 'mortgage' means a first mort­
gage or first lien on real estate, in fee simple, on all stock
allocated to a dwelling in a residential cooperative housing
corporation, or on a leasehold—
"(A) under a lease for not less than 99 years that
is renewable; or
"(B) under a lease having a period of not less than
10 years to run beyond the maturity date of the mortgage.
"(5) FIRST MORTGAGE.—^The term 'first mortgage' means
such classes of first liens as are commonly given to secure
advances on, or the unpaid purchase price of, real estate or
all stock allocated to a dwelling unit in a residential cooperative
housing corporation, under the laws of the State in which
the real estate or dwelling unit is located, together with the
credit instruments, if any, secured thereby.".
(c) WAIVER OF UP-FRONT PREMIUMS FOR MORTGAGES USED
TO FUND LONG-TERM CARE INSURANCE.—
(1) IN GENERAL.—Section 255 of the National Housing Act
(12 U.S.C. 1715z-20) is amended by inserting after subsection
(k) (as added by subsection (a) of this section) the following
new subsection:
"(1) WAIVER OF UP-FRONT PREMIUMS FOR MORTGAGES TO FUND
LONG-TERM CARE INSURANCE.—
"(1) IN GENERAL.—In the case of any mortgage insured
under this section under which the total amount (except as
provided in paragraph (2)) of all future payments described
in subsection (b)(3) will be used only for costs of a qualified
long-term care insurance contract that covers the mortgagor
or members of the household residing in the property that
is subject to the mortgage, notwithstanding section 203(c)(2),
the Secretary shall not charge or collect the single premium
pajmtient otherwise required under subparagraph (A) of such
section to be paid at the time of insurance.
"(2) AUTHORITY TO REFINANCE EXISTING MORTGAGE AND
FINANCE CLOSING COSTS.—^A mortgage described in paragraph
(1) may provide financing of amounts that are used to satisfy
outstanding mortgage obligations (in accordance with such
limitations as the Secretary shall prescribe) and any amounts
used for initial service charges, appraisal, inspection, and other
fees (as approved by the Secretary) in connection with such
mortgage, and the amount of future pa5anents described in
subsection (b)(3) under the mortgage shall be reduced accord­
ingly.
"(3) DEFINITION.—^For purposes of this subsection, the term
'qualified long-term care insurance contract' has the meaning
given such term in section 7702B of the Internal Revenue PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2951
Code of 1986 (26 U.S.C. 7702B)), except that such contract
shall also meet the requirements of—
"(A) sections 9 (relating to disclosure), 24 (relating
to suitability), and 26 (relating to contingent nonforfeiture)
of the long-term care insurance model regulation promul­
gated by the National Association of Insurance Commis­
sioners (as adopted as of September 2000); and
"(B) section 8 (relating to contingent nonforfeiture) of
the long-term care insurance model Act promulgated by
the National Association of Insurance Commissioners (as
adopted as of September 2000).".
(2) APPLICABILITY.—The provisions of section 255(1) of the
National Housing Act (as added by paragraph (1) of this sub­
section) shall apply only to mortgages closed on or after April
1, 2001.
(d) STUDY OF SINGLE NATIONAL MORTGAGE LIMIT.—^The Sec­
retary of Housing and Urban Development shall conduct an actuari­
ally based study of the effects of establishing, for mortgages insured
under section 255 of the National Housing Act (12 U.S.C. 1715z-
20), a single maximum mortgage amount limitation in lieu of
applicability of section 203(b)(2) of such Act (12 U.S.C. 1709(b)(2)).
The study shall—
(1) examine the effects of establishing such limitation at
different dollar amounts; and
(2) examine the effects of such various limitations on—
(A) the risks to the Greneral Insurance Fund established
under section 519 of such Act;
(B) the mortgage insurance premiums that would be
required to be charged to mortgagors to ensure actuarial
soundness of such Fund; and
(C) take into consideration the various approaches to
providing credit to borrowers who refinance home equity
conversion mortgages insuied under section 255 of such
Act.
Not later than 180 days after the date of the enactment of this
Act, the Secretary shall complete the study under this subsection
and submit a report describing the study and the results of the
study to the Committee on Banking and Financial Services of
the House of Representatives and to the Committee on Banking,
Housing, and Urban Affairs of the Senate.
SEC. 202. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.
(a) REAUTHORIZATION.—Subsection (p) of section 11 of the
Housing Opportunity Program Extension Act of 1996 (42 U.S.C.
12805 note) is amended to read as follows:
"(p) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may
be necessary for fiscal year 2001.".
(b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of the Housing
Opportimity Program Extension Act of 1996 (42 U.S.C. 12805 note)
is amended by inserting before the period at the end the following:
", which may include reimbursing an organization, consortium,
or affiliate, upon approval of any required environmental review,
for nongrant amounts of the organization, consortium, or affiliate
advanced before such review to acquire land". 12 use 1715Z-20
note.
Deadline. 114 STAT. 2952 PUBLIC LAW 106-569—DEC. 27, 2000
(c) DEADLINE FOR RECAPTURE OF FUNDS.—Section 11 of the
Housing Opportunity Program Extension Act of 1996 (42 U.S.C.
12805 note) is amended—
(1) in subsection (i)(5)—
(A) by striking "if the organization or consortia has
not used any grant amounts" and inserting "the Secretary
shall recapture any grant amounts provided to the
organization or consortia that are not used";
(B) by striking "(or," and inserting ", except that such
period shall be 36 months"; and
(C) by striking "within 36 months), the Secretary shall
recapture such unused amounts" and inserting "and in
the case of a grant amounts provided to a local affiliate
of the organization or consortia that is developing five
or more dwellings in connection with such grant amounts";
and
(2) in subsection (j), by inserting after "carry out this
section" the following: "and grant amounts provided to a local
affiliate of the organization or consortia that is developing
five or more dwellings in connection with such grant amounts".
(d) TECHNICAL CORRECTIONS.—Section 11 of the Housing Oppor­
tunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended—
(1) in subsection (b)(4), by striking "Habitat for Humanity
International, its affiliates, and other"; and
(2) in subsection (e)(2), by striking "consoria" and inserting
"consortia".
TITLE III—SECTION 8 HOMEOWNERSHIP
OPTION
SEC. 301. DOWNPAYMENT ASSISTANCE.
(a) AMENDMENTS.—Section 8(y) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(y)) is amended—
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the foUov/ing new para­
graph:
"(7) DOWNPAYMENT ASSISTANCE.—
"(A) AUTHORITY.—^A public housing agency may, in lieu
of providing monthly assistance pajmients under this sub­
section on behalf of a family eligible for such assistance
and at the discretion of the public housing agency, provide
assistance for the family in the form of a single grant
to be used only as a contribution toward the downpa3nnent
required in connection with the purchase of a dwelling
for fiscal year 2000 and each fiscal year thereafter to the
extent provided in advance in appropriations Acts.
"(B) AMOUNT.—^The amount of a downpayment grant
on behalf of an assisted family may not exceed the amount
that is equal to the sum of the assistance payments that
would be made during the first year of assistance on behalf
of the family, based upon the income of the family at
the time the grant is to be made.".
42USCl437f (b) EFFECTIVE DATE.—^The amendments made by subsection
note. (a) shall take effect immediately after the amendments made by PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2953
section 555(c) of the Quality Housing and Work Responsibility
Act of 1998 take effect pursuant to such section.
SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR 42 USC 143l7f
DISABLED FAMILIES. °ote
(a) IN GENERAL.—^A public housing agency providing tenant-
based assistance on behalf of an eligible family under section 8
of the United States Housing Act of 1937 (42 U.S.C. 1437f) may
provide assistance for a disabled family that purchases a dwelling
unit (including a dwelling unit under a lease-purchase agreement)
that will be owned by one or more members of the disabled family
and will be occupied by the disabled family, if the disabled family—
(1) purchases the dwelling unit before the expiration of
the 3-year period beginning on the date that the Secretary
first implements the pilot program under this section;
(2) demonstrates that the disabled family has income from
emplo)rment or other sources (including public assistance), as
determined in accordance with requirements of the Secretary,
that is not less than twice the payment standard established
by the public housing agency (or such other amount as may
be established by the Secretary);
(3) except as provided by the Secretary, demonstrates at
the time the disabled family initially receives tenant-based
assistance under this section that one or more adult members
of the disabled family have achieved employment for the period
as the Secretary shall require;
(4) participates in a homeownership and housing counseling
program provided by the agency; and
(5) meets any other initial or continuing requirements
established by the public housing agency in accordance with
requirements established by the Secretary.
(b) DETERMINATION OF AMOUNT OF ASSISTANCE.—
(1) IN GENERAL.—
(A) MONTHLY EXPENSES NOT EXCEEDING PAYMENT
STANDARD.—If the monthly homeownership expenses, as
determined in accordance with requirements established
by the Secretary, do not exceed the payment standard,
the monthly assistance payment shall be the amount by
which the homeownership expenses exceed the highest of
the following amounts, rounded to the nearest dollar:
(i) Thirty percent of the monthly adjusted income
of the disabled family.
(ii) Ten percent of the monthly income of the dis­
abled family.
(iii) If the disabled family is receiving pa)anents
for welfare assistance from a public agency, and a
portion of those pajnnents, adjusted in accordance with
the actual housing costs of the disabled family, is
specifically designated by that agency to meet the
housing costs of the disabled family, the portion of
those payments that is so designated.
(B) MONTHLY EXPENSES EXCEED PAYMENT STANDARD.—
If the monthly homeownership expenses, as determined
in accordance with requirements established by the Sec­
retary, exceed the payment standard, the monthly assist­
ance payment shall be the amount by which the applicable 114 STAT. 2954 PUBLIC LAW 106-569—DEC. 27, 2000
payment standard exceeds the highest of the amounts
under clauses (i), (ii), and (iii) of subparagraph (A).
(2) CALCULATION OF AMOUNT.—
(A) LOW-INCOME FAMILIES.—^A disabled family that is
a low-income family shall be eligible to receive 100 percent
of the amount calculated under paragraph (1).
(B) INCOME BETWEEN SI AND 89 PERCENT OF MEDIAN.—
A disabled family whose income is between 81 and 89
percent of the median for the area shall be eligible to
receive 66 percent of the amount calculated under para­
graph (1).
(C) INCOME BETWEEN 9O AND 99 PERCENT OF MEDIAN.—
A disabled family whose income is between 90 and 99
percent of the median for the area shall be eligible to
receive 33 percent of the amount calculated under para­
graph (1).
(D) INCOME MORE THAN 99 PERCENT OF MEDIAN.—A
disabled family whose income is more than 99 percent
of the median for the area shall not be eligible to receive
assistance under this section.
(c) INSPECTIONS AND CONTRACT CONDITIONS.—
(1) IN GENERAL.—Each contract for the purchase of a
dwelling unit to be assisted under this section shall—
(A) provide for pre-purchase inspection of the dwelling
unit by an independent professional; and
(B) require that any cost of necessary repairs be paid
by the seller.
(2) ANNUAL INSPECTIONS NOT REQUIRED.—^The requirement
under subsection (o)(8)(A)(ii) of section 8 of the United States
Housing Act of 1937 for annual inspections shall not apply
to dwelling units assisted under this section.
(d) OTHER AUTHORITY OF THE SECRETARY.—^The Secretary
may-
CD limit the term of assistance for a disabled family
assisted under this section;
(2) provide assistance for a disabled family for the entire
term of a mortgage for a dwelling unit if the disabled family
remains eligible for such assistance for such term; and
(3) modify the requirements of this section as the Secretary
determines to be necessary to make appropriate adaptations
for lease-purchase agreements.
(e) ASSISTANCE PAYMENTS SENT TO LENDER.—^The Secretary
shall remit assistance pajonents under this section directly to the
mortgagee of the dwelling unit purchased by the disabled family
receiving such assistance pajonents.
(f) INAPPLICABILITY OF CERTAIN PROVISIONS.—Assistance under
this section shall not be subject to the requirements of the following
provisions:
(1) Subsection (c)(3)(B) of section 8 of the United States
Housing Act of 1937.
(2) Subsection (d)(l)(B)(i) of section 8 of the United States
Housing Act of 1937.
(3) Any other provisions of section 8 of the United States
Housing Act of 1937 governing maximum amounts payable
to owners and amounts payable by assisted families. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2955
(4) Any other provisions of section 8 of the United States
Housing Act of 1937 concerning contracts between pubHc
housing agencies and owners.
(5) Ajny other provisions of the United States Housing
Act of 1937 that are inconsistent with the provisions of this
section.
(g) REVERSION TO RENTAL STATUS.—
(1) NoN-FHA MORTGAGES.—If a disabled family receiving
assistance under this section defaults under a mortgage not
insured under the National Housing Act, the disabled family
may not continue to receive rental assistance under section
8 of the United States Housing Act of 1937 unless it complies
with requirements established by the Secretary.
(2) ALL MORTGAGES.—^A disabled family receiving assist­
ance under this section that defaults under a mortgage may
not receive assistance under this section for occupancy of
another dwelling unit owned by one or more members of the
disabled family.
(3) EXCEPTION.—This subsection shall not apply if the Sec­
retary determines that the disabled family receiving assistance
under this section defaulted under a mortgage due to cata­
strophic medical reasons or due to the impact of a federally
declared major disaster or emergency.
(h) REGULATIONS.—^Not later than 90 days after the date of Deadline,
the enactment of this Act, the Secretary shall issue regulations
to implement this section. Such regulations may not prohibit any
public housing agency providing tenant-based assistance on behalf
of an eligible family under section 8 of the United States Housing
Act of 1937 from participating in the pilot program under this
section.
(i) DEFINITION OF DISABLED FAMILY.—For the purposes of this
section, the term "disabled family" has the meaning given the
term "person with disabilities" in section 811(k)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2)).
SEC. 303. FUNDING FOR PILOT PROGRAMS.
(a) AUTHORIZATION OF APPROPRIATIONS.—^There is authorized
to be appropriated such sums as may be necessary for fiscal year
2001 for assistance in connection with the existing homeownership
pilot programs carried out under the demonstration program
authorized under section 555(b) of the Quality Housing and Work
Responsibility Act of 1998 (Public Law 105-276; 112 Stat. 2613).
(b) USE.—Subject to subsection (c), amounts made available
pursuant to this section shall be used only through such
homeownership pilot programs to provide, on behalf of families
participating in such programs, amounts for downpa5anents in
connection with dwellings purchased by such families using assist­
ance made available under section 8(y) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(y)). No such downpayment grant
may exceed 20 percent of the appraised value of the dwelling
purchased with assistance under such section 8(y).
(c) MATCHING REQUIREMENT.—^The amount of assistance made
available under this section for any existing homeownership pilot
program may not exceed twice the amount donated from sources
other than this section for use under the program for assistance
described in subsection (b). Amounts donated from other sources 114 STAT. 2956 PUBLIC LAW 106-569—DEC. 27, 2000
may include amounts from State housing finsince agencies and
Neighborhood Housing Services of America.
Private Mortgage TITLE IV—PRIVATE MORTGAGE INSUR­
ES ANCE CANCELLATION AND TERMI-
Corrections and ik.T A rr-rr^-^r
Clarification Act. N A1 ION
12 use 4901
note.
12 use 4901.
12 use 4902. SEC. 401. SHORT TITLE.
This title may be cited as the "Private Mortgage Insurance
Technical Corrections and Clarification Act".
SEC. 402. CHANGES IN AMORTIZATION SCHEDULE.
(a) TREATMENT OF ADJUSTABLE RATE MORTGAGES.—^The Home­
owners Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended—
(1) in section 2—
(A) in paragraph (2)(B)(i), by striking "amortization
schedules" and inserting "the amortization schedule then
in effect";
(B) in paragraph (16)(B), by striking "amortization
schedules" and inserting "the amortization schedule then
in effect";
(C) by redesignating paragraphs (6) through (16) (as
amended by the preceding provisions of this paragraph)
as paragraphs (8) through (18), respectively; and
(D) by inserting after paragraph (5) the following new
paragraph:
"(6) AMORTIZATION SCHEDULE THEN IN EFFECT.—^The term
'amortization schedule then in effect' means, with respect to
an adjustable rate mortgage, a schedule established at the
time at which the residential mortgage transaction is con­
summated or, if such schedule has been changed or recal­
culated, is the most recent schedule under the terms of the
note or mortgage, which shows—
"(A) the amount of principal and interest that is due
at regular intervals to retire the principal balance and
accrued interest over the remaining amortization period
of the loan; and
"(B) the unpaid balance of the loan after each such
scheduled pajnnent is made."; and
(2) in section 3(f )(l)(B)(ii), by striking "amortization sched­
ules" and inserting "the amortization schedule then in effect".
(b) TREATMENT OF BALLOON MORTGAGES.—Paragraph (1) of
section 2 of the Homeowners Protection Act of 1998 (12 U.S.C.
4901(1)) is amended by adding at the end the following new sen­
tence: "A residential mortgage that: (A) does not fully amortize
over the term of the obligation; and (B) contains a conditional
right to refinance or modify the unamortized principal at the matu­
rity date of the term, shall be considered to be an adjustable
rate mortgage for purposes of this Act.".
(c) TREATMENT OF LOAN MODIFICATIONS.—
(1) IN GENERAL.—Section 3 of the Homeowners Protection
Act of 1998 (12 U.S.C. 4902) is amended—
(A) by redesignating subsections (d) through (f) as
subsections (e) through (g), respectively; and PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2957
(B) by inserting after subsection (c) the following new
subsection:
"(d) TREATMENT OF LOAN MODIFICATIONS.—If a mortgagor and
mortgagee (or holder of the mortgage) agree to a modification of
the terms or conditions of a loan pursuant to a residential mortgage
transaction, the cancellation date, termination date, or final termi­
nation shall be recalculated to reflect the modified terms and condi­
tions of such loan.".
(2) CONFORMING AMENDMENTS.—Section 4(a) of the Home­
owners Protection Act of 1998 (12 U.S.C. 4903(a)) is amended—
(A) in paragraph (1)—
(i) in the matter preceding subparagraph (A), by
striking "section 3(f)(1)" and inserting "section 3(gXl)";
(ii) in subparagraph (A)(ii)(IV), by striking "section
3(f)" and inserting "section 3(g)"; and
(iii) in subparagraph (B)(iii), by striking "section
3(f)" and inserting "section 3(g)"; Eind
(B) in paragraph (2), by striking "section 3(f)(1)" and
inserting "section 3(g)(1)".
SEC. 403. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL
MORTGAGES.
(a) TERMINATION OF PRIVATE MORTGAGE INSURANCE.—Section
3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902)
is amended—
(1) in subsection (c), by inserting "on residential mortgage
transactions" after "imposed"; and
(2) in subsection (g) (as so redesignated by the preceding
provisions of this title)—
(A) in paragraph (1), in the matter preceding subpara­
graph (A), by striking "mortgage or";
(B) in paragraph (2), by striking "mortgage or"; and
(C) in paragraph (3), by striking "mortgage or" and
inserting "residential mortgage or residential".
(b) DISCLOSURE REQUIREMENTS.—Section 4 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking "mortgage or" the first place it
appears; and
(ii) by striking "mortgage or" the second place it
appears and inserting "residential"; and
(B) in paragraph (2), by striking "mortgage or" and
inserting "residential";
(2) in subsection (c), by striking "paragraphs (1)(B) and
(3) of subsection (a)" and inserting "subsection (a)(3)"; and
(3) in subsection (d), by inserting before the period at
the end the following: ", which disclosures shall relate to the
mortgagor's rights under this Act".
(c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID MORTGAGE
INSURANCE.—Section 6 of the Homeowners Protection Act of 1998
(12 U.S.C. 4905) is amended—
(1) in subsection (c)—
(A) in the matter preceding paragraph (1), by striking
"a residential mortgage or"; and
(B) in paragraph (2), by inserting "transaction" after
"residential mortgage"; and 114 STAT. 2958 PUBLIC LAW 106-569—DEC. 27, 2000
(2) in subsection (d), by inserting "transaction" after "resi­
dential mortgage".
SEC. 404. CANCELLATION RIGHTS AFTER CANCELLATION DATE.
Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C.
4902) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1), by inserting
after "cancellation date" the following: "or any later date
that the mortgagor fulfills all of the requirements under
paragraphs (1) through (4)";
(B) in paragraph (2), by striking "and" at the end;
(C) by redesignating paragraph (3) as paragraph (4);
and
(D) by inserting after paragraph (2) the following new
paragraph:
"(3) is current on the payments required by the terms
of the residential mortgage transaction; and"; and
(2) in subsection (e)(1)(B) (as so redesignated by the pre­
ceding provisions of this title), by striking "subsection (a)(3)"
and inserting "subsection (a)(4)".
SEC. 405. CLARIFICATION OF CANCELLATION AND TERMINATION
ISSUES AND LENDER PAID MORTGAGE INSURANCE
DISCLOSURE REQUIREMENTS.
(a) GOOD PAYMENT HISTORY.—Section 2(4) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901(4)) is amended—
(1) in subparagraph (A)—
(A) by inserting "the later of (i)" before "the date";
and
(B) by inserting ", or (ii) the date that the mortgagor
submits a request for cancellation imder section 3(a)(1)"
before the semicolon; and
(2) in subparagraph (B)—
(A) by inserting "the later of (i)" before "the date";
and
(B) by inserting ", or (ii) the date that the mortgagor
submits a request for cancellation under section 3(a)(1)"
before the period at the end.
(b) AUTOMATIC TERMINATION.—^Paragraph (2) of section 3(b)
of the Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2))
is amended to read as follows:
"(2) if the mortgagor is not current on the termination
date, on the first day of the first month beginning after the
date that the mortgagor becomes current on the pajmtients
required by the terms of the residential mortgage transaction.".
(c) PREMIUM PAYMENTS.—Section 3 of the Homeowners Protec­
tion Act of 1998 (12 U.S.C. 4902) is amended by adding at the
end the following new subsection:
"(h) ACCRUED OBLIGATION FOR PREMIUM PAYMENTS.—^The can­
cellation or termination under this section of the private mortgage
insurance of a mortgagor shall not affect the rights of any mort­
gagee, servicer, or mortgage insurer to enforce £iny obligation of
such mortgagor for premium payments accrued prior to the date
on which such cancellation or termination occurred.". PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2959
SEC. 406. DEFINITIONS.
(a) REFINANCED.—Section 6(c)(l)(B)(ii) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4905(c)(l)(B)(ii)) is amended by
inserting after "refinanced" the following: "(under the meaning given
such term in the regulations issued by the Board of Grovemors
of the Federal Reserve System to carry out the Truth in Lending
Act (15 U.S.C. 1601 et seq.))".
(b) MIDPOINT OF THE AMORTIZATION PERIOD.—Section 2 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended
by inserting after paragraph (6) (as added by the preceding provi­
sions of this title) the following new paragraph:
"(7) MIDPOINT OF THE AMORTIZATION PERIOD.—^The term
'midpoint of the amortization period' means, with respect to
a residential mortgage transaction, the point in time that is
halfway through the period that begins upon the first day
of the amortization period established at the time a residential
mortgage transaction is consummated and ends upon the
completion of the entire period over which the mortgage is
scheduled to be amortized.".
(c) ORIGINAL VALUE.—Section 2(12) of the Homeowners Protec­
tion Act of 1998 (12 U.S.C. 4901(10)) (as so redesignated by the
preceding provisions of this title) is amended—
(1) by inserting "transaction" after "a residential mortgage";
and
(2) by adding at the end the following new §fentence: "In
the case of a residential mortgage transaction for refinancing
the principal residence of the mortgagor, such term means
only the appraised value relied upon by the mortgagee to
approve the refinance transaction.".
(d) PRINCIPAL RESIDENCE.—Section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901) is amended—
(1) in paragraph (14) (as so redesignated by the preceding
provisions of this title) by striking "primary" and inserting
"principEil"; and
(2) in paragraph (15) (as so redesignated by the preceding
provisions of this title) by striking "primary and inserting
"principal".
TITLE V—NATIVE AMERICAN
HOMEOWNERSHIP
Subtitle A—^Native American Housing
SEC. 501. LANDS TITLE REPORT COMMISSION. 25 irSC 4043
(a) ESTABLISHMENT.—Subject to sums being provided in
advance in appropriations Acts, there is established a Commission
to be known as the Lands Title Report Commission (hereafter
in this section referred to as the "Commission") to facilitate home
loan mortgages on Indian trust lands. The Commission will be
subject to oversight by the Committee on Banking and Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(b) MEMBERSHIP.— 114 STAT. 2960 PUBLIC LAW 106-569—DEC. 27, 2000
(1) APPOINTMENT.—The Commission shall be composed of
12 members, appointed not later than 90 days after the date
of the enactment of this Act as follows:
(A) Four members shall be appointed by the President.
(B) Four members shall be appointed by the Chair­
person of the Committee on Banking and Financial Services
of the House of Representatives.
(C) Four members shall be appointed by the Chair­
person of the Committee on Banking, Housing, and Urban
Affairs of the Senate.
(2) QUALIFICATIONS.—
(A) MEMBERS OF TRIBES.—At all times, not less than
eight of the members of the Commission shall be members
of federally recognized Indian tribes.
(B) EXPERIENCE IN LAND TITLE MATTERS.—^All members
of the Commission shall have experience in and knowledge
of land title matters relating to Indian trust lands.
(3) CHAIRPERSON.—^The Chairperson of the Commission
shall be one of the members of the Commission appointed
under paragraph (1)(C), as elected by the members of the
Commission.
(4) VACANCIES.—^Any vacancy on the Commission shall not
affect its powers, but shall be filled in the manner in which
the original appointment was made.
(5) TRAVEL EXPENSES.—^Members of the Commission shall
serve without pay, but each member shall receive travel
expenses, including per diem in lieu of subsistence, in accord­
ance with sections 5702 and 5703 of title 5, United States
Code.
(c) INITIAL MEETING.—^The Chairperson of the Commission shall
call the initial meeting of the Commission. Such meeting shall
be held within 30 days after the Chairperson of the Commission
determines that sums sufficient for the Commission to carry out
its duties under this Act have been appropriated for such purpose.
(d) DUTIES.—The Commission shall analyze the system of the
Bureau of Indian Affairs of the Department of the Interior for
maintaining land ownership records and title documents and issuing
certified title status reports relating to Indian trust lands and,
pursuant to such analysis, determine how best to improve or replace
the system—
(1) to ensure prompt and accurate responses to requests
for title status reports;
(2) to eliminate any backlog of requests for title status
reports; and
(3) to ensure that the administration of the system will
not in any way impair or restrict the ability of Native Ameri­
cans to obtain conventional loans for purchase of residences
located on Indian trust lands, including any actions necessary
to ensure that the system will promptly be able to meet future
demands for certified title status reports, taking into account
the anticipated complexity and volume of such requests.
Deadline. (e) REPORT.—Not later than the date of the termination of
the Commission under subsection (h), the Commission shall submit
a report to the Committee on Banking and Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate describing the analysis
and determinations made pursuant to subsection (d). PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2961
(f) POWERS.—
(1) HEARINGS AND SESSIONS.—^The Commission may, for
the purpose of canying out this section, hold hearings, sit
and act at times and places, take testimony, and receive evi­
dence as the Commission considers appropriate.
(2) STAFF OF FEDERAL AGENCIES.—^Upon request of the
Commission, the head of any Federal department or agency
may detail, on a reimbursable basis, any of the personnel
of that department or agency to the Commission to assist
it in carr3dng out its duties under this section.
(3) OBTAINING OFFICIAL DATA.—^The Commission may
secure directly from any department or agency of the United
States information necessary to enable it to carry out this
section. Upon request of the Chairperson of the Commission,
the head of that department or agency shall furnish that
information to the Commission.
(4) MAILS.—^The Commission may use the United States
mails in the same manner and under the same conditions
as other departments and agencies of the United States.
(5) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request
of the Commission, the Administrator of General Services shall
provide to the Commission, on a reimbursable basis, the
administrative support services necessary for the Commission
to carry out its duties under this section.
(6) STAFF.—^The Commission may appoint personnel as it
considers appropriate, subject to the provisions of title 5, United
States Code, governing appointments in the competitive service,
and shall pay such personnel in accordance with the provisions
of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates.
(g) AUTHORIZATION OF APPROPRIATIONS.—^There is authorized
to be appropriated to carry out this section such sums as may
be necessary, and any amounts appropriated pursuant to this sub­
section shall remain available until expended.
(h) TERMINATION.—^The Commission shall terminate 1 year
after the date of the initial meeting of the Commission.
SEC. 502. LOAN GUARANTEES.
Section 184(i) of the Housing and Community Development
Act of 1992 (12 U.S.C. 1715z-13a(i)) is amended—
(1) in paragraph (5), by striking subparagraph (C) and
inserting the following new subparagraph:
"(C) LIMITATION ON OUTSTANDING AGGREGATE PRIN­
CIPAL AMOUNT.—Subject to the limitations in subpara­
graphs (A) and (B), the Secretary may enter into commit­
ments to guarantee loans under this section in each fiscal
year with an aggregate outstanding principal amount not
exceeding such amount as may be provided in appropriation
Acts for such fiscal year."; and
(2) in paragraph (7), by striking "each of fiscal years 1997,
1998, 1999, 2000, and 2001" and inserting "each fiscal year".
SEC. 503. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) RESTRICTION ON WAIVER AUTHORITY.—
(1) IN GENERAL.—Section 101(b)(2) of the Native American
Housing Assist£ince and Self-Determination Act of 1996 (25
U.S.C. 4111(b)(2)) is amended by striking "if the Secretary"
and all that follows through the period at the end and inserting 114 STAT. 2962 PUBLIC LAW 106-569—DEC. 27, 2000
the following: "for a period of not more than 90 days, if the
Secretary determines that an Indian tribe has not complied
with, or is unable to comply with, those requirements due
to exigent circumstances beyond the control of the Indian
tribe.".
(2) LOCAL COOPERATION AGREEMENT.—Section 101(c) of the
Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4111(c)) is amended by adding at the
end the following: "The Secretary may waive the requirements
of this subsection and subsection (d) if the recipient has made
a good faith effort to fulfill the requirements of this subsection
and subsection (d) and agrees to make payments in lieu of
taxes to the appropriate taxing authority in an amount con­
sistent with the requirements of subsection (d)(2) until such
time as the matter of making such payments has been resolved
in accordance with subsection (d).".
(b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW-INCOME.—
Section 102(c) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4112(c)) is amended
by adding at the end the following:
"(6) CERTAIN FAMILIES.—With respect to assistance pro­
vided under section 201(b)(2) by a recipient to Indian families
that are not low-income families, evidence that there is a need
for housing for each such family during that period that cannot
reasonably be met without such assistance.".
(c) ELIMINATION OF WAIVER AUTHORITY FOR SMALL TRIBES.—
Section 102 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4112) is amended—
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
(d) ENVIRONMENTAL COMPLIANCE.—Section 105 of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4115) is amended by adding at the end the following:
"(d) ENVIRONMENTAL COMPLIANCE.—^The Secretary may waive
the requirements under this section if the Secretary determines
that a failure on the part of a recipient to comply with provisions
of this section—
"(1) will not frustrate the goals of the National Environ­
mental Pohcy Act of 1969 (42 U.S.C. 4331 et seq.) or any
other provision of law that furthers the goals of that Act;
"(2) does not threaten the health or safety of the community
involved by posing an immediate or long-term hazard to resi­
dents of that community;
"(3) is a result of inadvertent error, including an incorrect
or incomplete certification provided under subsection (c)(1); and
"(4) may be corrected through the sole action of the
recipient.".
(e) OVERSIGHT.—
(1) REPAYMENT.—Section 209 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4139) is amended to read as follows:
"SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIRE­
MENT.
"If a recipient uses grant amounts to provide affordable housing
under this title, and at any time during the useful life of the
housing the recipient does not comply with the requirement under PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2963
section 205(a)(2), the Secretary shall take appropriate action under
section 401(a).".
(2) AUDITS AND REVIEWS.—Section 405 of the Native Amer­
ican Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4165) is amended to read as follows:
"SEC. 405. REVIEW AND AUDIT BY SECRETARY.
"(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE 31, UNITED
STATES CODE.—^An entity designated by an Indian tribe as a housing
entity shall be treated, for purposes of chapter 75 of title 31,
United States Code, as a non-Federal entity that is subject to
the audit requirements that apply to non-Federal entities under
that chapter.
"(b) ADDITIONAL REVIEWS AND AUDITS.—
"(1) IN GENERAL.—In addition to any audit or review under
subsection (a), to the extent the Secretary determines such
action to be appropriate, the Secretary may conduct an audit
or review of a recipient in order to—
"(A) determine whether the recipient—
"(i) has carried out—
"(I) eligible activities in a timely manner; and
"(II) eligible activities and certification in
accordance with this Act and other applicable law;
"(ii) has a continuing capacity to carry out eligible
activities in a timely manner; and
"(iii) is in compliance with the Indian housing
plan of the recipient; and
"(B) verify the accuracy of information contained in
any performance report submitted by the recipient under
section 404.
"(2) ON-SITE VISITS,—^To the extent practicable, the reviews
and audits conducted under this subsection shall include on-
site visits by the appropriate official of the Department of
Housing and Urban Development.
"(c) REVIEW OF REPORTS.—
"(1) IN GENERAL.—^The Secretary shall provide each Notice.
recipient that is the subject of a report made by the Secretary Deadline,
under this section notice that the recipient may review and
comment on the report during a period of not less than 30
days after the date on which notice is issued under this para­
graph.
"(2) PUBLIC AVAILABILITY.—After taking into consideration
any comments of the recipient under paragraph (1), the
Secretary—
"(A) may revise the report; and
"(B) not later than 30 days after the date on which Deadline,
those comments are received, shall make the comments
and the report (with any revisions made under subpara­
graph (A)) readily available to the public.
"(d) EFFECT OF REVIEWS.—Subject to section 401(a), after
reviewing the reports and audits relating to a recipient that are
submitted to the Secretary under this section, the Secretary may
adjust the amount of a grant made to a recipient under this Act
in accordance with the findings of the Secretary with respect to
those reports and audits.". 114 STAT. 2964 PUBLIC LAW 106-569—DEC. 27, 2000
(f) ALLOCATION FORMULA.—Section 302(d)(1) of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4152(d)(1)) is amended—
(1) by striking "The formula," £ind inserting the following:
"(A) IN GENERAL.—Except with respect to an Indian
tribe described in subparagraph (B), the formula"; and
(2) by adding at the end the following:
"(B) CERTAIN INDIAN TRIBES.—^With respect to fiscal
year 2001 and each fiscal year thereafter, for any Indian
tribe with an Indian housing authority that owns or oper­
ates fewer than 250 public housing units, the formula
shall provide that if the amount provided for a fiscal year
in which the total amount made available for assistance
under this Act is equal to or greater than the amount
made available for fiscal year 1996 for assistance for the
operation and modernization of the public housing referred
to in subparagraph (A), then the amount provided to that
Indian tribe as modernization assistance shall be equal
to the average annual amount of funds provided to the
Indian tribe (other than funds provided as emergency
assistance) under the assistance program under section
14 of the United States Housing Act of 1937 (42 U.S.C.
14371) for the period beginning with fiscal year 1992 and
ending with fiscal year 1997.".
(g) HEARING REQUIREMENT.—Section 401(a) of the Native Amer­
ican Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4161(a)) is amended—
(1) by redesignating paragraphs (1) through (4) as subpara­
graphs (A) through (D), respectively, and realigning such sub­
paragraphs (as so redesignated) so as to be indented 4 ems
from the left margin;
(2) by striking "Except as provided" and inserting the fol­
lowing:
"(1) IN GENERAL.—Except as provided";
(3) by striking "If the Secretary takes an action under
paragraph (1), (2), or (3)" and inserting the following:
"(2) CONTINUANCE OF ACTIONS.—If the Secretary takes an
action under subparagraph (A), (B), or (C) of paragraph (1)";
and
(4) by adding at the end the following:
"(3) EXCEPTION FOR CERTAIN ACTIONS.—
"(A) IN GENERAL.—^Notwithstanding any other provi­
sion of this subsection, if the Secretary makes a determina­
tion that the failure of a recipient of assistance under
this Act to comply substantially with any material provision
(as that term is defined by the Secretary) of this Act
is resulting, and would continue to result, in a continuing
expenditure of Federal funds in a manner that is not
authorized by law, the Secretary may take an action
described in paragraph (1)(C) before conducting a hearing.
"(B) PROCEDURAL REQUIREMENT.—If the Secretary
takes an action described in subparagraph (A), the Sec­
retary shall—
Notice. "(i) provide notice to the recipient at the time
that the Secret£iry takes that action; and PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2965
"(ii) conduct a hearing not later than 60 days after Deadline,
the date on which the Secretary provides notice under
clause (i).
"(C) DETERMINATION.—Upon completion of a hearing
under this paragraph, the Secretary shall make a deter­
mination regarding whether to continue taking the action
that is the subject of the hearing, or take another action
under this subsection.",
(h) PERFORMANCE AGREEMENT TIME LIMIT.—Section 401(b) of
the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4161(b)) is amended—
(1) by striking "If the Secretary and inserting the fol­
lowing:
"(1) IN GENERAL.—If the Secretary";
(2) by striking "(1) is not" and inserting the following:
"(A) is not";
(3) by striking "(2) is a result" and inserting the following:
"(B) is a result";
(4) in the flush material following paragraph (1)(B), as
redesignated by paragraph (3) of this subsection—
(A) by realigning such material so as to be indented
2 ems from the left margin; and
(B) by inserting before the period at the end the fol­
lowing: ", if the recipient enters into a performance agree­
ment with the Secretary that specifies the compliance objec­
tives that the recipient will be required to achieve by
the termination date of the performance agreement"; and
(5) by adding at the end the following:
"(2) PERFORMANCE AGREEMENT.—^The period of a perform­
ance agreement described in paragraph (1) shall be for 1 year.
"(3) REVIEW.—^Upon the termination of a performance
agreement entered into under paragraph (1), the Secretary
shall review the performance of the recipient that is a party
to the agreement.
"(4) EFFECT OF REVIEW.—If, on the basis of a review under
paragraph (3), the Secretary determines that the recipient—
"(A) has made a good faith effort to meet the compli­
ance objectives specified in the agreement, the Secretary
may enter into an additional performance agreement for
the period specified in paragraph (2); £ind
"(B) has failed to medke a good faith effort to meet
applicable compliance objectives, the Secretary shall deter­
mine the recipient to have failed to comply substantially
with this Act, and the recipient shall be subject to an
action under subsection (a).",
(i) LABOR STANDARDS.—Section 104(b) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4114(b)) is amended—
(1) in paragraph (1), by striking "Davis-Bacon Act (40
U.S.C. 276a-276a-5)" and inserting "Act of March 3, 1931
(commonly known as the Davis-Bacon Act; chapter 411; 46
Stat. 1494; 40 U.S.C. 276a et seq.)"; and
(2) by adding at the end the following new paragraph:
"(3) APPLICATION OF TRIBAL LAWS.—Paragraph (1) shall
not apply to any contract or agreement for assistance, sale,
or lease pursuant to this Act, if such contract or agreement
is otherwise covered by one or more laws or regulations adopted 114 STAT. 2966 PUBLIC LAW 106-569—DEC. 27, 2000
by an Indian tribe that requires the payment of not less than
prevailing wages, as determined by the Indian tribe.".
(j) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TABLE OF CONTENTS.—Section 1(b) of the Native Amer­
ican Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4101 note) is amended in the table of contents—
(A) by striking the item relating to section 206; and
(B) by striking the item relating to section 209 and
inserting the following:
"209. Noncompliance with affordable housing reqturement.".
(2) CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING
REQUIREMENTS.—Section 206 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136)
is repealed.
(3) TERMINATIONS.—Section 502(a) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4181(a)) is amended by adding at the end the following:
"Any housing that is the subject of a contract for tenant-
based assistance between the Secretary and an Indian housing
authority that is terminated under this section shall, for the
following fiscal year and each fiscal year thereafter, be consid­
ered to be a dwelling unit under section 302(b)(1).".
Hawaiian Subtltlc B—Nativc Hawailaii Housing Homelands
Homeownership
Act of 2000. SEC. 511. SHORT TITLE.
note '^^^ subtitle may be cited as the "Hawaiian Homelands
Homeownership Act of 2000".
SEC. 512. FINDINGS.
The Congress finds that—
25 use 4221 (1) the United States has undertaken a responsibility to
^°^- promote the general welfare of the United States by—
(A) employing its resources to remedy the unsafe and
unsanitary housing conditions and the acute shortage of
decent, safe, and sanitary dwellings for families of lower
income; and
(B) developing effective partnerships with govern­
mental and private entities to accomplish the objectives
referred to in subparagraph (A);
(2) the United States has a special responsibility for the
welfare of the Native peoples of the United States, including
Native Hawaiians;
(3) pursuant to the provisions of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.), the United States
set aside 200,000 acres of land in the Federal territory that
later became the State of Hawaii in order to establish a home­
land for the native people of Hawaii—^Native Hawaiians;
(4) despite the intent of Congress in 1920 to address the
housing needs of Native Hawaiians through the enactment
of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108
et seq.). Native Hawaiians eligible to reside on the Hawaiian
home lands have been foreclosed from participating in Federal
housing assistance programs available to all other eligible fami­
lies in the United States; PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2967
(5) although Federal housing assistance programs have
been administered on a racially neutral basis in the State
of Hawaii, Native Hawaiians continue to have the greatest
unmet need for housing and the highest rates of overcrowding
in the United States;
(6) among the Native American population of the United
States, Native Hawaiians experience the highest percentage
of housing problems in the United States, as the percentage—
(A) of housing problems in the Native Hawaiian popu­
lation is 49 percent, as compared to—
(i) 44 percent for American Indian and Alaska
Native households in Indian country; and
(ii) 27 percent for all other households in the
United States; and
(B) overcrowding in the Native Hawaiian population
is 36 percent as compared to 3 percent for all other house­
holds in the United States;
(7) among the Native Hawaiian population, the needs of
Native Hawaiians, as that term is defined in section 801 of
the Native American Housing Assistance and Self-Determina-
tion Act of 1996 (as added by this subtitle), eligible to reside
on the Hawaiian Home Lands are the most severe, as—
(A) the percentage of overcrowding in Native Hawaiian
households on the Hawaiian Home Lands is 36 percent;
and
(B) approximately 13,000 Native Hawaiians, which con­
stitute 95 percent of the Native Hawaiians who are eligible
to reside on the Hawaiian Home Lands, are in need of
housing;
(8) appljdng the Department of Housing and Urban
Development guidelines—
(A) 70.8 percent of Native Hawaiians who either reside
or who are eligible to reside on the Hawaiism Home Lands
have incomes that fall below the median family income;
and
(B) 50 percent of Native Hawaiians who either reside
or who are eligible to reside on the Hawaiian Home Lands
have incomes below 30 percent of the median family
income;
(9) one-third of those Native Hawaiians who are eligible
to reside on the Hawaiian Home Lands pay more than 30
percent of their income for shelter, and one-half of those Native
Hawaiians face overcrowding;
(10) the extraordinarily severe housing needs of Native
Hawaiians demonstrate that Native Hawaiians who either
reside on, or are eligible to reside on, Hawaiian Home Lands
have been denied equal access to Federal low-income housing
assistance programs available to other qualified residents of
the United States, and that a more effective means of
addressing their housing needs must be authorized;
(11) consistent with the recommendations of the National
Commission on American Indian, Alaska Native, and Native
Hawaiian Housing, and in order to address the continuing
prevalence of extraordinarily severe housing needs among
Native Hawaiians who either reside or are eligible to reside
on the Hawaiian Home Lands, Congress finds it necessary
to extend the Federal low-income housing assistance available 114 STAT. 2968 PUBLIC LAW 106-569—DEC. 27, 2000
to American Indians and Alaska Natives under the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4101 et seq.) to those Native Hawaiians;
(12) under the treatymaking power of the United States,
Congress had the constitutional authority to confirm a treaty
between the United States and the government that rep­
resented the Hawaiian people, and from 1826 until 1893, the
United States recognized the independence of the Kingdom
of Hawaii, extended full diplomatic recognition to the Hawaiian
(Government, and entered into treaties and conventions with
the Hawaiian monarchs to govern commerce and navigation
in 1826, 1842, 1849, 1875, and 1887;
(13) the United States has recognized and reaffirmed that—
(A) Native Hawaiians have a cultural, historic, and
land-based link to the indigenous people who exercised
sovereignty over the Hawaiian Islands, and that group
has never relinquished its claims to sovereignty or its sov­
ereign lands;
(B) Congress does not extend services to Native Hawai­
ians because of their race, but because of their unique
status as the indigenous people of a once sovereign nation
as to whom the United States has established a trust
relationship;
(C) Congress has also delegated broad authority to
administer a portion of the Federal trust responsibility
to the State of Hawaii;
(D) the political status of Native Hawaiians is com­
parable to that of American Indians and Alaska Natives;
and
(E) the aboriginal, indigenous people of the United
States have—
(i) a continuing right to autonomy in their internal
affairs; and
(ii) an ongoing right of self-determination and self-
governance that has never been extinguished;
(14) the political relationship between the United States
and the Native Hawaiian people has been recognized and re­
affirmed by the United States as evidenced by the inclusion
of Native Hawaiians in—
(A) the Native American Programs Act of 1974 (42
U.S.C. 2291 et seq.);
(B) the American Indian Religious Freedom Act (42
U.S.C. 1996 et seq.);
(C) the National Museum of the American Indian Act
(20 U.S.C. 80q et seq.);
(D) the Native American Graves Protection and Repa­
triation Act (25 U.S.C. 3001 et seq.);
(E) the National Historic Preservation Act (16 U.S.C.
470 et seq.);
(F) the Native American Languages Act of 1992 (106
Stat. 3434);
(G) the American Indian, Alaska Native and Native
Hawaiian Culture and Arts Development Act (20 U.S.C.
4401 et seq.);
(H) the Job Training Partnership Act (29 U.S.C. 1501
et seq.); and PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2969
(I) the Older Americans Act of 1965 (42 U.S.C. 3001
et seq.); and
(15) in the area of housing, the United States has recog­
nized and reaffirmed the poUtical relationship with the Native
Hawaiian people through—
(A) the enactment of the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108 et seq.), which set aside approxi­
mately 200,000 acres of public lands that became known
as Hawaiian Home Lands in the Territory of Hawaii that
had been ceded to the United States for homesteading
by Native Hawaiians in order to rehabilitate a landless
and dying people;
(B) the enactment of the Act entitled "An Act to provide
for the admission of the State of Hawaii into the Union",
approved March 18, 1959 (73 Stat. 4)—
(i) by ceding to the State of Hawaii title to the
public lands formerly held by the United States, and
mandating that those lands be held in public trust,
for the betterment of the conditions of Native Hawai­
ians, as that term is defined in section 201 of the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108
et seq.); and
(ii) by transferring the United States responsibility
for the administration of Hawaiian Home Lands to
the State of Hawaii, but retaining the authority to
enforce the trust, including the exclusive right of the
United States to consent to any actions affecting the
lands which comprise the corpus of the trust and any
amendments to the Hawaiian Homes Commission Act,
1920 (42 Stat. 108 et seq.), enacted by the legislature
of the State of Hawaii aJEfecting the rights of bene-
, 3; ficiaries under the Act;
(C) the authorization of mortgage loans insured by
V the Federal Housing Administration for the purchase,
construction, or refinancing of homes on Hawaiian Home
Lands under the National Housing Act (Public Law 479;
73d Congress; 12 U.S.C. 1701 et seq.);
(D) authorizing Native Hawaiian representation on the
National Commission on American Indian, Alaska Native,
and Native Hawaiian Housing under Public Law 101-235;
(E) the inclusion of Native Hawaiians in the definition
under section 3764 of title 38, United States Code,
applicable to subchapter V of chapter 37 of title 38, United
States Code (relating to a housing loan program for Native
American veterans); and
(F) the enactment of the Hawaiian Home Lands
Recovery Act (109 Stat. 357; 48 U.S.C. 491, note prec.)
which establishes a process for the conveyance of Federal
lands to the Department of Haw£di£in Homes Lands that
are equivalent in value to lands acquired by the United
States from the Hawaiian Home Lands inventory.
SEC. 513. HOUSING ASSISTANCE.
The Native American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4101 et seq.) is amended by adding
at the end the following: 114 STAT. 2970 PUBLIC LAW 106-569—DEC. 27, 2000
'TITLE VIII—HOUSING ASSISTANCE FOR
NATIVE HAWAIIANS
25 use 4221. "SEC. 801. DEFINITIONS.
"In this title:
"(1) DEPARTMENT OF HAWAIIAN HOME LANDS; DEPART­
MENT.—^The term 'Department of Hawaiian Home Lands' or
'Department' means the agency or department of the govern­
ment of the State of Hawaii that is responsible for the adminis­
tration of the Hawaiian Homes Commission Act, 1920 (42 Stat.
108 et seq.).
"(2) DIRECTOR.—The term 'Director* means the Director
of the Department of Hawaiian Home Lands.
"(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMILIES.—
"(A) IN GENERAL.—^The term 'elderly family* or 'near-
elderly family means a family whose head (or his or her
spouse), or whose sole member, is—
"(i) for an elderly family, an elderly person; or
"(ii) for a near-elderly family, a near-elderly per­
son.
"(B) CERTAIN FAMILIES INCLUDED.—^The term 'elderly
famil/ or 'near-elderly family includes—
"(i) two or more elderly persons or near-elderly
persons, as the case may be, living together; and
"(ii) one or more persons described in clause (i)
living with one or more persons determined under
the housing plan to be essential to their care or well-
being.
"(4) HAWAIIAN HOME LANDS.—The term 'Hawaiian Home
Lands' means lands that—
"(A) have the status as Hawaiian home lands under
section 204 of the Hawaiian Homes Commission Act, 1920
(42 Stat. 110); or
"(B) are acquired pursuant to that Act.
"(5) HOUSING AREA.—^The term 'housing area' means an
area of Hawaiian Home Lands with respect to which the
Department of Hawaiian Home Lands is authorized to provide
assistance for affordable housing under this Act.
"(6) HOUSING ENTITY.—^The term 'housing entity* means
the Department of Hawaiian Home Lands.
"(7) HOUSING PLAN.—The term 'housing plan' means a plan
developed by the Department of Hawaiian Home Lands.
"(8) MEDIAN INCOME.—^The term 'median income' means,
with respect to an area that is a Hawaiian housing area,
the greater of—
"(A) the median income for the Hawaiian housing area,
which shall be determined by the Secretary; or
"(B) the median income for the State of Hawaii.
"(9) NATIVE HAWAIIAN.—^The term 'Native Hawaiian' means
any individual who is—
"(A) a citizen of the United States; and
"(B) a descendant of the aboriginal people, who, prior
to 1778, occupied and exercised sovereignty in the area
that currently constitutes the State of Hawaii, as evidenced
by-
"(i) genealogical records; PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2971
"(ii) verification by kupuna (elders) or kama'aina
(long-term community residents); or
"(iii) birth records of the State of Hawaii.
"SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING ACTIYITIES. 25 USC 4222.
"(a) GRANT AUTHORITY.—^For each fiscal year, the Secretary
shall (to the extent amounts are made available to carry out this
title) make a grant under this title to the Department of Hawaiian
Home Lands to carry out affordable housing activities for Native
Hawaiian families who are eligible to reside on the Hawaiian Home
Lands.
"(b) PLAN REQUIREMENT.—
"(1) IN GENERAL.—^The Secretary may make a grant under
this title to the Department of Hawaiian Home Lands for
a fiscal year only if—
"(A) the Director has submitted to the Secretary a
housing plan for that fiscal year; and
"(B) the Secretary has determined under section 804
that the housing plan complies with the requirements of
section 803.
"(2) WAIVER.—The Secretary may waive the applicability
of the requirements imder paragraph (1), in part, if the Sec­
retary finds that the Department of Hawaiian Home Lsmds
has not complied or cannot comply with those requirements
due to circumstances beyond the control of the Department
of Hawaiian Home Lands.
"(c) USE OF AFFORDABLE HOUSING ACTIVITIES UNDER PLAN.—
Except as provided in subsection (e), amounts provided under a
grant under this section may be used only for affordable housing
activities under this title that are consistent with a housing plan
approved under section 804.
"(d) ADMINISTRATIVE EXPENSES.—
"(1) IN GENERAL.—^The Secretary shall, by regulation. Regulations,
authorize the Department of Hawaiian Home Lsinds to use
a percentage of any grant amounts received under this title
for any reasonable administrative and planning expenses of
the Department relating to carrying out this title and activities
assisted with those amounts.
"(2) ADMINISTRATIVE AND PLANNING EXPENSES.—The
administrative and planning expenses referred to in paragraph
(1) include—
"(A) costs for salaries of individuals engaged in admin­
istering and managing affordable housing activities
assisted with grant amounts provided under this title; and
"(B) expenses incurred in preparing a housing plan
under section 803.
"(e) PUBLIC-PRIVATE PARTNERSHIPS.—^The Director shall make
all reasonable efforts, consistent with the purposes of this title,
to maximize participation by the private sector, including nonprofit
organizations and for-profit entities, in implementing a housing
plan that has been approved by the Secretary under section 803.
"SEC. 803. HOUSING PLAN. 25 USC 4223.
"(a) PLAN SUBMISSION.—^The Secretary shall—
"(1) require the Director to submit a housing plan under
this section for each fiscal year; and
"(2) provide for the review of each plan submitted under
paragraph (1). 114 STAT. 2972 PUBLIC LAW 106-569—DEC. 27, 2000
"(b) FIVE-YEAR PLAN.—Each housing plan under this section
shall—
"(1) be in a form prescribed by the Secretary; and
"(2) contain, with respect to the 5-year period beginning
with the fiscal year for which the plan is submitted, the fol­
lowing information:
"(A) MISSION STATEMENT.—^A general statement of the
mission of the Department of Hawaiian Home Lands to
serve the needs of the low-income families to be served
by the Department.
"(B) GOALS AND OBJECTIVES.—A statement of the goals
and objectives of the Department of Hawaiian Home Lands
to enable the Department to serve the needs identified
in subparagraph (A) during the period.
"(C) ACTIVITIES PLANS.—An overview of the activities
planned during the period including an analysis of the
manner in which the activities will enable the Department
to meet its mission, goals, and objectives.
"(c) ONE-YEAR PLAN.—^A housing plan under this section shall—
"(1) be in a form prescribed by the Secretary; and
"(2) contain the following information relating to the fiscal
year for which the assistance under this title is to be made
available:
"(A) GOALS AND OBJECTIVES.^A statement of the goals
and objectives to be accomplished during the period covered
by the plan.
"(B) STATEMENT OF NEEDS.—^A statement of the
housing needs of the low-income families served by the
Department and the means by which those needs will
be addressed during the period covered by the plan,
including—
"(i) a description of the estimated housing needs
and the need for assistance for the low-income families
to be served by the Department, including a description
of the manner in which the geographical distribution
of assistance is consistent with—
"(I) the geographical needs of those families;
and
"(H) needs for various categories of housing
assistance; and
"(ii) a description of the estimated housing needs
for all families to be served by the Department.
"(C) FINANCLVL RESOURCES.—An operating budget for
the Department of Hawaiian Home Lands, in a form pre­
scribed by the Secretary, that includes—
"(i) an identification and a description of the finan­
cial resources reasonably available to the Department
to carry out the purposes of this title, including an
explanation of the manner in which amounts made
available will be used to leverage additional resources;
and
"(ii) the uses to which the resources described in
clause (i) will be committed, including—
"(I) eligible and required affordable housing
activities; and
"(II) administrative expenses. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT, 2973
"(D) AFFORDABLE HOUSING RESOURCES.—^A statement
of the affordable housing resources currently available at
the time of the submittal of the plan and to be made
available during the period covered by the plan, including—
"(i) a description of the significant characteristics
of the housing market in the State of Hawaii, including
the availability of housing from other public sources,
private market housing;
"(ii) the manner in which the characteristics
referred to in clause (i) influence the decision of the
Department of Hawaiian Home Lands to use grant
amounts to be provided under this title for—
"(I) rental assistance;
"(II) the production of new units;
"(III) the acquisition of existing units; or
"(IV) the rehabilitation of units;
"(iii) a description of the structure, coordination,
and means of cooperation between the Department
of Hawaiian Home Lands and any other governmental
entities in the development, submission, or
implementation of housing plans, including a descrip­
tion of—
"(I) the involvement of private, public, and
nonprofit organizations and institutions;
"(II) the use of loan guarantees under section
184A of the Housing and Community Development
Act of 1992; and
"(III) other housing assistance provided by the
United States, including loans, grants, and mort­
gage insurance;
.*' "(iv) a description of the manner in which the
plan will address the needs identified pursuant to
' subparagraph (C);
"(v) a description of—
"(I) any existing or anticipated homeownership
programs and rental programs to be carried out
during the period covered by the plan; and
"(II) the requirements and assistance available
under the programs referred to in subclause (I);
"(vi) a description of—
"(I) any existing or anticipated housing
rehabilitation programs necessary to ensure the
long-term viability of the housing to be carried
out during the period covered by the plan; and
"(II) the requirements and assistance available
under the programs referred to in subclause (I);
"(vii) a description of—
"(I) all other existing or anticipated housing
assistance provided by the Department of
Hawaiian Home Lands during the period covered
by the plan, including—
"(aa) transitional housing;
"(bb) homeless housing;
"(cc) college housing; and
"(dd) supportive services housing; and
"(II) the requirements and assistance available
under such programs; 114 STAT. 2974 PUBLIC LAW 106-569—DEC. 27, 2000
"(viii)(I) a description of any housing to be demol­
ished or disposed of;
"(11) a timetable for that demolition or disposition;
and
"(III) any other information required by the Sec­
retary with respect to that demolition or disposition;
"(ix) a description of the manner in which the
Department of Hawaiian Home Lands will coordinate
with welfare agencies in the State of Hawaii to ensure
that residents of the affordable housing will be pro­
vided with access to resources to assist in obtaining
employment and achieving self-sufficiency;
"(x) a description of the requirements established
by the t)epartment of Hawaiian Home Lands to—
"(I) promote the safety of residents of the
affordable housing;
"(II) facilitate the undertaking of crime
prevention measures;
"(III) allow resident input and involvement,
including the establishment of resident organiza­
tions; and
"(IV) allow for the coordination of crime
prevention activities between the Department and
local law enforcement officials; and
"(xi) a description of the entities that will carry
out the activities under the plan, including the
organizational capacity and key personnel of the enti­
ties.
"(E) CERTIFICATION OF COMPLIANCE.—Evidence of
compliance that shall include, as appropriate—
"(i) a certification that the Department of
Hawaiian Home Lands will comply with—
"(I) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.) or with the Fair Housing
Act (42 U.S.C. 3601 et seq.) in carrying out this
title, to the extent that such title is applicable;
and
"(II) other applicable Federal statutes;
"(ii) a certification that the Department will
require adequate insurance coverage for housing units
that are owned and operated or assisted with grant
amounts provided under this title, in compliance with
such requirements as may be established by the Sec­
retary;
"(iii) a certification that policies are in effect and
are available for review by the Secretary and the public
governing the eligibility, admission, and occupancy of
families for housing assisted with grant amounts pro­
vided under this title;
"(iv) a certification that policies are in effect and
are available for review by the Secretary and the public
governing rents charged, including the methods by
which such rents or homebuyer payments are deter­
mined, for housing assisted with grant amounts pro­
vided under this title; and
"(v) a certification that policies are in effect and
are available for review by the Secretary and the public PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2975
governing the management and maintenance of
housing assisted with grant amounts provided under
this title.
"(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—
"(1) IN GENERAL.—^To the extent that the requirements
of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d
et seq.) or of the Fair Housing Act (42 U.S.C. 3601 et seq.)
apply to assistance provided under this title, nothing in the
requirements concerning discrimination on the basis of race
shall be construed to prevent the provision of assistance under
this title—
"(A) to the Department of Hawaiian Home Lands on
the basis that the Department served Native Hawaiians;
or
"(B) to an eligible family on the basis that the family
is a Native Hawaiian family.
"(2) CIVIL RIGHTS.—Program eligibility under this title may
be restricted to Native Hawaiians. Subject to the preceding
sentence, no person may be discriminated against on the basis
of race, color, national origin, religion, sex, familial status,
or disability.
"(e) USE OF NONPROFIT ORGANIZATIONS.^AS a condition of
receiving grant amounts under this title, the Department of
Hawaiian Home Lands shall, to the extent practicable, provide
for private nonprofit organizations experienced in the planning
and development of affordable housing for Native Hawaiians to
carry out affordable housing activities with those grant amounts.
"SEC. 804. REVIEW OF PLANS. 25 USC 4224.
"(a) REVIEW AND NOTICE.—
"(1) REVIEW.—
"(A) IN GENERAL.—^The Secretary shall conduct a
review of a housing plan submitted to the Secretary under
section 803 to ensure that the plan complies with the
requirements of that section.
"(B) LIMITATION.—^The Secretary shall have the discre­
tion to review a plan referred to in subparagraph (A) only
to the extent that the Secretary considers that the review
is necessary.
"(2) NOTICE.—
"(A) IN GENERAL.—^Not later than 60 days after Deadline,
receiving a plan under section 803, the Secretary shall
notify the Director of the Department of Hawaiian Home
Lands whether the plan complies with the requirements
under that section.
"(B) EFFECT OF FAILURE OF SECRETARY TO TAKE
ACTION.—For purposes of this title, if the Secretary does
not notify the Director, as required under this subsection
and subsection (b), upon the expiration of the 60-day period
described in subparagraph (A)—
"(i) the plan shall be considered to have been deter­
mined to comply with the requirements under section
803; and
"(ii) the Director shall be considered to have been
notified of compliance.
"(b) NOTICE OF REASONS FOR DETERMINATION OF NONCOMPLI­
ANCE.—If the Secretary determines that a plan submitted under
79-194 O – 00 – 31: QL 3 Part 5 114 STAT. 2976 PUBLIC LAW 106-569—DEC. 27, 2000
section 803 does not comply with the requirements of that section,
the Secretary shall specify in the notice under subsection (a)—
"(1) the reasons for noncompliance; and
"(2) any modifications necessary for the plan to meet the
requirements of section 803.
"(c) REVIEW.—
"(1) IN GENERAL.—^After the Director of the Department
of Hawaiian Home Lands submits a housing plan under section
803, or any amendment or modification to the plan to the
Secretary, to the extent that the Secretary considers such action
to be necessary to make a determination under this subsection,
the Secretary shall review the plan (including any amendments
or modifications thereto) to determine whether the contents
of the plan—
"(A) set forth the information required by section 803
to be contained in the housing plan;
"(B) are consistent with information and data available
to the Secretary; and
"(C) are not prohibited by or inconsistent with any
provision of this Act or any other applicable law.
"(2) INCOMPLETE PLANS.—If the Secretary determines under
this subsection that any of the appropriate certifications
required under section 803(c)(2)(E) are not included in a plan,
the plan shall be considered to be incomplete.
"(d) UPDATES TO PLAN.—
"(1) IN GENERAL.—Subject to paragraph (2), after a plan
under section 803 has been submitted for a fiscal year, the
Director of the Department of Hawaiian Home Lands may
comply with the provisions of that section for any succeeding
fiscal year (with respect to information included for the 5-
year period under section 803(b) or for the 1-year period under
section 803(c)) by submitting only such information regarding
such changes as may be necessary to update the plan previously
submitted.
"(2) COMPLETE PLANS.—The Director shall submit a com­
plete plan under section 803 not later than 4 years after submit­
ting an initial plan under that section, and not less frequently
than every 4 years thereafter.
"(e) EFFECTIVE DATE.—^This section and section 803 shall take
effect on the date provided by the Secretary pursuant to section
807(a) to provide for timely submission and review of the housing
plan as necessary for the provision of assistance under this title
for fiscal year 2001.
25 use 4225. "SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.
"(a) PROGRAM INCOME.—
"(1) AUTHORITY TO RETAIN.—^The Department of Hawaiian
Home Lands may retain any program income that is realized
from any grant amounts received by the Department under
this title if—
"(A) that income was realized after the initial disburse­
ment of the grant amounts received by the Department;
and
"(B) the Director agrees to use the program income
for affordable housing activities in accordance with the
provisions of this title. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2977
"(2) PROHIBITION OF REDUCTION OF GRANT.—^The Secretary
may not reduce the grant amount for the Department of
Hawaiian Home Lands based solely on—
"(A) whether the Department retains program income
under paragraph (1); or
"(B) the amount of any such program income retained.
"(3) EXCLUSION OF AMOUNTS.—^The Secretary may, by regu­
lation, exclude from consideration as program income any
amounts determined to be so small that compliance with the
requirements of this subsection would create an unreasonable
administrative burden on the Department.
"(b) LABOR STANDARDS.—
"(1) IN GENERAL.—^Any contract or agreement for assist­
ance, sale, or lease pursuant to this title shall contain—
"(A) a provision requiring that an amount not less
than the wages prevailing in the locality, as determined
or adopted (subsequent to a determination under applicable
State or local law) by the Secretary, shall be paid to all
architects, technical engineers, draftsmen, technicians
employed in the development and all maintenance, and
laborers and mechanics employed in the operation, of the
affordable housing project involved; and
"(B) a provision that an amount not less than the
wages prevailing in the locality, as predetermined by the
Secretary of Labor pursuant to the Act commonly known
as the 'Davis-Bacon Act' (46 Stat. 1494; chapter 411; 40
U.S.C. 276a et seq.) shall be paid to all laborers and
mechanics employed in the development of the affordable
housing involved.
"(2) EXCEPTIONS.—Paragraph (1) and provisions relating
to wages required under paragraph (1) in any contract or agree­
ment for assistance, sale, or lease under this title, shall not
apply to any individual who performs the services for which
the individual volunteered and who is not otherwise employed
at any time in the construction work and received no compensa­
tion or is paid expenses, reasonable benefits, or a nominal
fee for those services.
"SEC. 806. ENVIRONMENTAL REVIEW. 25USC4226.
"(a) IN GENERAL.—
"(1) RELEASE OF FUNDS.—
"(A) IN GENERAL.—^The Secretary may carry out the
alternative environmental protection procedures described
in subparagraph (B) in order to ensure—
"(i) that the policies of the National Environmental
PoUcy Act of 1969 (42 U.S.C. 4321 et seq.) and other
provisions of law that further the purposes of such
Act (as specified in regulations issued by the Secretary)
are most effectively implemented in connection with
the expenditure of grant amounts provided under this
title; and
"(ii) to the public undiminished protection of the
environment.
"(B) ALTERNATIVE ENVIRONMENTAL PROTECTION PROCE­
DURE.—In lieu of applying environmental protection proce­
dures otherwise applicable, the Secretary may by regulation
provide for the release of funds for specific projects to 114 STAT. 2978 PUBLIC LAW 106-569—DEC. 27, 2000
the Department of Hawaiian Home Lands if the Director
of the Department assumes all of the responsibilities for
environmental review, decisionmaking, and action under
the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), and such other provisions of law as the
regulations of the Secretary specify, that would apply to
the Secretary were the Secretary to undertake those
projects as Federal projects.
"(2) REGULATIONS.—
"(A) IN GENERAL.—^The Secretary shall issue regula­
tions to carry out this section only after consultation with
the Council on Environmental Quality.
"(B) CONTENTS.—^The regulations issued under this
paragraph shall—
"(i) provide for the monitoring of the environmental
reviews performed under this section;
"(ii) in the discretion of the Secretary, facilitate
training for the performance of such reviews; and
"(iii) provide for the suspension or termination of
the assumption of responsibilities under this section.
"(3) EFFECT ON ASSUMED RESPONSIBILITY.—^The duty of the
Secretary under paragraph (2)(B) shall not be construed to
limit or reduce any responsibility assumed by the Department
of Hawaiian Home Lands for grant amounts with respect to
any specific release of fiinds.
"(b) PROCEDURE.—
"(1) IN GENERAL.—^The Secretary shall authorize the release
of funds subject to the procedures under this section only if,
not less than 15 days before that approval and before any
commitment of funds to such projects, the Director of the
Department of Hawaiian Home Lands submits to the Secretary
a request for such release accompanied by a certification that
meets the requirements of subsection (c).
"(2) EFFECT OF APPROVAL.—^The approval of the Secretary
of a certification described in paragraph (1) shall be deemed
to satisfy the responsibilities of the Secretary under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) and such other provisions of law as the regulations
of the Secretary specify to the extent that those responsibilities
relate to the releases of funds for projects that are covered
by that certification.
"(c) CERTIFICATION.—A certification under the procedures under
this section shall—
"(1) be in a form acceptable to the Secretary;
"(2) be executed by the Director of the Department of
Hawaiian Home Lands;
"(3) specify that the Department of Hawaiian Home Lands
has fully carried out its responsibilities as described under
subsection (a); and
"(4) specify that the Director—
"(A) consents to assume the status of a responsible
Federal official under the National Environmentsd Policy
Act of 1969 (42 U.S.C. 4321 et seq.) and each provision
of law specified in regulations issued by the Secretary
to the extent that those laws apply by reason of subsection
(a); and PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2979
"(B) is authorized and consents on behalf of the Depart­
ment of Hawaiian Home Lands and the Director to accept
the jurisdiction of the Federal courts for the purpose of
enforcement of the responsibilities of the Director of the
Department of Hawaiian Home Lands as such an official.
"SEC. 807. REGULATIONS. 25 USC 4227.
"The Secretary shall issue final regulations necessary to carry
out this title not later than October 1, 2001.
"SEC. 808. EFFECTIVE DATE. 25 USC 4221
"Except as otherwise expressly provided in this title, this title
shall take effect on the date of the enactment of the American
Homeownership and Economic Opportunity Act of 2000.
"SEC. 809. AFFORDABLE HOUSING ACTIVITIES. 25 USC 4228.
"(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.—
"(1) PRIMARY OBJECTIVE.—^The national objectives of this
title are—
"(A) to assist and promote affordable housing activities
to develop, maintain, and operate affordable housing in
safe and healthy environments for occupancy by low-income
Native Hawaiian families;
"(B) to ensure better access to private mortgage mar­
kets and to promote self-sufficiency of low-income Native
Hawaiian families;
"(C) to coordinate activities to provide housing for low-
income Native Hawaiian families with Federal, State, and
local activities to further economic and community develop­
ment;
"(D) to plan for and integrate infrastructure resources
on the Hawaiian Home Lands with housing development;
and
"(E) to—
"(i) promote the development of private capital
markets; and
"(ii) allow the markets referred to in clause (i)
to operate and grow, thereby benefiting Native
Hawaiian communities.
"(2) ELIGIBLE FAMILIES.—
"(A) IN GENERAL.—Except as provided under subpara­
graph (B), assistance for eligible housing activities under
this title shall be limited to low-income Native Hawaiian
families.
"(B) EXCEPTION TO LOW-INCOME REQUIREMENT.—
"(i) IN GENERAL.—^The Director may provide assist-
, ance for homeownership activities under—
"(I) section 810(b);
"(II) model activities under section 810(f); or
"(III) loan guarantee activities under section
184A of the Housing and Community Development
Act of 1992 to Native Hawaiian families who are
not low-income families, to the extent that the
Secretary approves the activities under that sec­
tion to address a need for housing for those fami­
lies that cannot be reasonably met without that
assistance. 114 STAT. 2980 PUBLIC LAW 106-569—DEC. 27, 2000
"(ii) LIMITATIONS.—The Secretary shall establish
limitations on the amount of assistance that may be
provided under this title for activities for families that
are not low-income families.
"(C) OTHER FAMILIES.—Notwithstanding paragraph (1),
the Director may provide housing or housing assistance
provided through affordable housing activities assisted with
grant amounts under this title to a family that is not
composed of Native Hawaiians if—
"(i) the Department determines that the presence
of the family in the housing involved is essential to
the well-being of Native Hawaiian families; and
"(ii) the need for housing for the family cannot
be reasonably met without the assistance.
"(D) PREFERENCE.—
"(i) IN GENERAL.—^A housing plan submitted under
section 803 may authorize a preference, for housing
or housing assistance provided through affordable
housing activities assisted with grant amounts pro­
vided under this title to be provided, to the extent
practicable, to families that are eligible to reside on
the Hawaiian Home Lands.
"(ii) APPLICATION.—In any case in which a housing
plan provides for preference described in clause (i),
the Director shall ensure that housing activities that
are assisted with grant amounts under this title are
subject to that preference.
"(E) USE OF NONPROFIT ORGANIZATIONS.—AS a condi­
tion of receiving grant amounts under this title, the Depart­
ment of Hawaiian Home Lands, shall to the extent prac­
ticable, provide for private nonprofit organizations experi­
enced in the planning and development of affordable
housing for Native Hawaiians to carry out affordable
housing activities with those grant amounts.
25 use 4229. "SEC. 810. EUGIBLE AFFORDABLE HOUSING ACTIVITIES.
"(a) IN GENERAL.—^Affordable housing activities under this sec­
tion are activities conducted in accordance with the requirements
of section 811 to—
"(1) develop or to support affordable housing for rental
or homeownership; or
"(2) provide housing services with respect to affordable
housing, through the activities described in subsection (b).
"(b) ACTIVITIES.—^The activities described in this subsection
are the following:
"(1) DEVELOPMENT.—^The acquisition, new construction,
reconstruction, or moderate or substantial rehabilitation of
affordable housing, which may include—
"(A) real property acquisition;
"(B) site improvement;
"(C) the development of utilities and utility services;
"(D) conversion;
"(E) demolition;
"(F) financing;
"(G) administration and planning; and
"(H) other related activities. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2981
"(2) HOUSING SERVICES.—^The provision of housing-related
services for affordable housing, including—
"(A) housing counseling in connection with rental or
homeownership assistance;
"(B) the establishment and support of resident
organizations and resident management corporations;
"(C) energy auditing;
"(D) activities related to the provisions of self-suffi­
ciency and other services; and
"(E) other services related to assisting owners, tenants,
contractors, and other entities participating or seeking to
participate in other housing activities assisted pursuant
to this section.
"(3) HOUSING MANAGEMENT SERVICES.—The provision of
management services for affordable housing, including—
"(A) the preparation of work specifications;
"(B) loan processing;
"(C) inspections;
"(D) tenant selection;
"(E) management of tenant-based rental assistance;
and
"(F) management of affordable housing projects.
"(4) CRIME PREVENTION AND SAFETY ACTIVITIES.—^The provi­
sion of safety, security, and law enforcement measures and
activities appropriate to protect residents of affordable housing
from crime.
"(5) MODEL ACTIVITIES.—Housing activities under model
programs that are—
"(A) designed to carry out the purposes of this title;
and
"(B) specifically approved by the Secretary as appro­
priate for the purpose referred to in subparagraph (A).
"SEC. 811. PROGRAM REQUIREMENTS. 25 USC 4230.
"(a) RENTS.—
"(1) ESTABLISHMENT.—Subject to paragraph (2), as a condi­
tion to receiving grant amounts under this title, the Director
shall develop written policies governing rents and homebuyer
pa)anents charged for dwelling units assisted under this title,
including methods by which such rents and homebuyer pay­
ments are determined.
"(2) MAXIMUM RENT.—In the case of any low-income family
residing in a dwelling unit assisted with grant amounts under
this title, the monthly rent or homebuyer payment (as
applicable) for that dwelling unit may not exceed 30 percent
of the monthly adjusted income of that family.
"(b) MAINTENANCE AND EFFICIENT OPERATION.—
"(1) IN GENERAL.—^The Director shall, using amounts of
any grants received under this title, reserve and use for oper­
ating under section 810 such amounts as may be necessary
to provide for the continued maintenance and efficient operation
of such housing.
"(2) DISPOSAL OF CERTAIN HOUSING.—^This subsection may
not be construed to prevent the Director, or any entity funded
by the Department, from demolishing or disposing of housing,
pursuant to regulations established by the Secretary. 114 STAT. 2982 PUBLIC LAW 106-569—DEC. 27, 2000
"(c) INSURANCE COVERAGE.—^As a condition to receiving grant
amounts under this title, the Director shall require adequate insur­
ance coverage for housing units that are owned or operated or
assisted with grant amounts provided under this title.
"(d) ELIGIBILITY FOR ADMISSION.—^AS a condition to receiving
grant amounts under this title, the Director shall develop written
policies governing the eligibility, admission, and occupancy of fami­
lies for housing assisted with grant amounts provided under this
title.
"(e) MANAGEMENT AND MAINTENANCE.—AS a condition to
receiving grant amounts under this title, the Director shall develop
policies governing the management and maintenance of housing
assisted with grant amounts under this title.
25 use 4231. "SEC. 812. TYPES OF INVESTMENTS.
"(a) IN GENERAL.—Subject to section 811 and an applicable
housing plan approved under section 803, the Director shall have—
"(1) the discretion to use grant amounts for affordable
housing activities through the use of—
"(A) equity investments;
"(B) interest-bearing loans or advances;
"(C) noninterest-bearing loans or advances;
"(D) interest subsidies;
"(E) the leveraging of private investments; or
"(F) any other form of assistance that the Secretary
determines to be consistent with the purposes of this title;
and
"(2) the right to establish the terms of assistance provided
with funds referred to in paragraph (1).
"(b) INVESTMENTS.—^The Director may invest grant amounts
for the purposes of carrying out affordable housing activities in
investment securities and other obligations, as approved by the
Secretary.
25 use 4232. "SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.
"(a) IN GENERAL.—^Housing shall qualify for affordable housing
for purposes of this title only if—
"(1) each dwelling unit in the housing—
"(A) in the case of rental housing, is made available
for occupancy only by a family that is a low-income family
at the time of the initial occupancy of that family of that
unit; and
"(B) in the case of housing for homeownership, is made
available for purchase only by a family that is a low-
income family at the time of purchase; and
"(2) each dwelling unit in the housing will remain afford­
able, according to binding commitments satisfactory to the Sec­
retary, for—
"(A) the remaining useful life of the property (as deter­
mined by the Secretary) without regard to the term of
the mortgage or to transfer of ownership; or
"(B) such other period as the Secretary determines
is the longest feasible period of time consistent with sound
economics and the purposes of this title, except upon a
foreclosure by a lender (or upon other transfer in lieu
of foreclosure) if that action— PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2983
"(i) recognizes any contractual or legal rights of
any public agency, nonprofit sponsor, or other person
or entity to take an action that would—
"(I) avoid termination of low-income afford-
ability, in the case of foreclosure; or
"(II) transfer ownership in lieu of foreclosure;
and
"(ii) is not for the purpose of avoiding low-income
affordability restrictions, as determined by the Sec­
retary.
"(b) EXCEPTION.—^Notwithstanding subsection (a), housing
assistsmce pursuant to section 809(a)(2)(B) shall be considered
affordable housing for purposes of this title.
"SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION. 25USC4233.
"(a) LEASES.—^Except to the extent otherwise provided by or
inconsistent with the laws of the State of Hawaii, in renting
dwelling units in affordable housing assisted with grant amounts
provided under this title, the Director, owner, or manager shall
use leases that—
"(1) do not contain unreasonable terms and conditions;
"(2) require the Director, owner, or manager to maintain
the housing in compliance with applicable housing codes and
quality standards;
"(3) require the Director, owner, or manager to give ade­
quate written notice of termination of the lease, which shall
be the period of time required under applicable State or local
law;
"(4) specify that, with respect to any notice of eviction
or termination, notwithstanding any State or local law, a resi­
dent shall be informed of the opportunity, before any hearing
or trial, to examine any relevant documents, record, or regula­
tions directly related to the eviction or termination;
"(5) require that the Director, owner, or manager may
not terminate the tenancy, during the term of the lease, except
for serious or repeated violation of the terms and conditions
of the lease, violation of applicable Federal, State, or local
law, or for other good cause; and
"(6) provide that the Director, owner, or manager may
terminate the tenancy of a resident for any activity, engaged
in by the resident, any member of the household of the resident,
or any guest or other person under the control of the resident,
that—
"(A) threatens the health or safety of, or right to peace­
ful enjojmtient of the premises by, other residents or
employees of the Department, owner, or manager;
"(B) threatens the health or safety of, or right to peace­
ful enjo3anent of their premises by, persons residing in
the immediate vicinity of the premises; or
"(C) is criminal activity (including drug-related
criminal activity) on or off the premises.
"(b) TENANT OR HOMEBUYER SELECTION.—^As a condition to
receiving grant amounts under this title, the Director shall adopt
and use written tenant and homebuyer selection policies and criteria
that—
"(1) are consistent with the purpose of providing housing
for low-income families; 114 STAT. 2984 PUBLIC LAW 106-569—DEC. 27, 2000
"(2) are reasonably related to program eligibility and the
ability of the applicant to perform the obligations of the lease;
and
"(3) provide for—
"(A) the selection of tenants and homebuyers from
a written waiting list in accordance with the policies and
goals set forth in an applicable housing plan approved
under section 803; and
"(B) the prompt notification in writing of any rejected
applicant of the grounds for that rejection.
25 use 4234. "SEC. 815. REPAYMENT.
"If the Department of Hawaiian Home Lands uses grant
amounts to provide affordable housing under activities under this
title and, at any time during the useful life of the housing, the
housing does not comply with the requirement under section
813(a)(2), the Secretary shall—
"(1) reduce future grant pa5anents on behalf of the Depart­
ment by an amount equal to the grant amounts used for that
housing (under the authority of section 819(a)(2)); or
"(2) require repayment to the Secretary of any amount
equal to those grant amounts.
25 use 4235. "SEC. 816. ANNUAL ALLOCATION.
"For each fiscal year, the Secretary shall allocate any amounts
made available for assistance under this title for the fiscal year,
in accordance with the formula established pursuant to section
817 to the Department of Hawaiian Home Lands if the Department
complies with the requirements under this title for a grant under
this title.
25 use 4236. "SEC. 817. ALLOCATION FORMULA.
Regulations. "(a) ESTABLISHMENT.—^The Secretary shall, by regulation issued
not later than the expiration of the 6-month period beginning on
the date of the enactment of the American Homeownership and
Economic Opportunity Act of 2000, in the manner provided under
section 807, establish a formula to provide for the allocation of
amounts available for a fiscal year for block grants under this
title in accordance with the requirements of this section.
"(b) FACTORS FOR DETERMINATION OF NEED.—^The formula
under subsection (a) shall be based on factors that reflect the
needs for assistance for affordable housing activities, including—
"(1) the number of low-income dwelling units owned or
operated at the time pursuant to a contract between the
Director and the Secretary;
"(2) the extent of poverty and economic distress and the
number of Native Hawaiian families eligible to reside on the
Hawaiian Home Lands; and
"(3) any other objectively measurable conditions that the
Secretary and the Director may specify.
"(c) OTHER FACTORS FOR CONSIDERATION.—In establishing the
formula under subsection (a), the Secretary shall consider the rel­
ative administrative capacities of the Department of Hawaiian
Home Lands and other challenges faced by the Department,
including—
"(1) geographic distribution within Hawaiian Home Lands;
and
"(2) technical capacity. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2985
"(d) EFFECTIVE DATE.—^This section shall take effect on the
date of the enactment of the American Homeownership and Eco­
nomic Opportunity Act of 2000.
"SEC. 818. REMEDIES FOR NONCOMPLIANCE. 25 USC 4237.
"(a) ACTIONS BY SECRETARY AFFECTING GRANT AMOUNTS.—
"(1) IN GENERAL.—Except as provided in subsection (b),
if the Secretary finds after reasonable notice and opportunity
for a hearing that the Department of Hawaiian Home Lands
has failed to comply substantially with any provision of this
title, the Secretary shall—
"(A) terminate payments under this title to the Depart­
ment;
"(B) reduce payments under this title to the Depart­
ment by an amount equal to the amount of such payments
that were not expended in accordance with this title; or
"(C) limit the availability of payments under this title
to programs, projects, or activities not affected by such
failure to comply.
"(2) ACTIONS.—If the Secretary takes an action under
subparagraph (A), (B), or (C) of paragraph (1), the Secretary
shall continue that action until the Secretary determines that
the failure by the Department to comply with the provision
has been remedied by the Department and the Department
is in compliance with that provision.
"(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL INCAPACITY.—
The Secretary may provide technical assistance for the Department,
either directly or indirectly, that is designed to increase the capa­
bility and capacity of the Director of the Department to administer
assistance provided under this title in compliance with the require­
ments under this title if the Secretary makes a finding under
subsection (a), but determines that the failure of the Department
to comply substantially with the provisions of this title—
"(1) is not a pattern or practice of activities constituting
willful noncompliance; and
"(2) is a result of the limited capability or capacity of
the Department of Hawaiian Home Lands.
"(c) REFERRAL FOR CIVIL ACTION.—
"(1) AUTHORITY.—In lieu of, or in addition to, any action
that the Secretary may take under subsection (a), if the Sec­
retary has reason to believe that the Department of Hawaiian
Home Lands has failed to comply substantially with any provi­
sion of this title, the Secretary may refer the matter to the
Attorney Greneral of the United States with a recommendation
that an appropriate civil action be instituted.
"(2) CIVIL ACTION.—^Upon receiving a referral under para­
graph (1), the Attorney General may bring a civil action in
any United States district court of appropriate jurisdiction for
such relief as may be appropriate, including an action—
"(A) to recover the amount of the assistance furnished
under this title that was not expended in accordance with
this title; or
"(B) for mandatory or injunctive relief.
"(d) REVIEW.—
"(1) IN GENERAL.—If the Director receives notice under
subsection (a) of the termination, reduction, or limitation of
payments under this Act, the Director— 114 STAT. 2986 PUBLIC LAW 106-569—DEC. 27, 2000
Deadline. "(A) may, not later than 60 days after receiving such
notice, file with the United States Court of Appeals for
the Ninth Circuit, or in the United States Court of Appeals
for the District of Columbia, a petition for review of the
action of the Secretary; and
"(B) upon the filing of any petition under subparagraph
(A), shall forthwith transmit copies of the petition to the
Secretary and the Attorney General of the United States,
who shall represent the Secretary in the litigation.
"(2) PROCEDURE.—
"(A) IN GENERAL.—^The Secretary shall file in the court
a record of the proceeding on which the Secretary based
the action, as provided in section 2112 of title 28, United
States Code.
"(B) OBJECTIONS.—^No objection to the action of the
Secretary shall be considered by the court unless the
Department has registered the objection before the Sec­
retary.
"(3) DISPOSITION.—
"(A) COURT PROCEEDINGS.—
"(i) JURISDICTION OF COURT.—^The court shall have
jurisdiction to affirm or modify the action of the Sec­
retary or to set the action aside in whole or in part,
"(ii) FINDINGS OF FACT.—If supported by substan­
tial evidence on the record considered as a whole,
the findings of fact by the Secretary shall be conclusive,
"(iii) ADDITION.—^The court may order evidence,
in addition to the evidence submitted for review under
this subsection, to be taken by the Secretary, and
to be made part of the record.
"(B) SECRETARY.—
"(i) IN GENERAL.—^The Secretary, by reason of the
additional evidence referred to in subparagraph (A)
and filed with the court—
"(I) may—
"(aa) modify the findings of fact of the
Secretary; or
"(bb) make new findings; and
"(II) shall file—
"(aa) such modified or new findings; and
"(bb) the recommendation of the Sec­
retary, if any, for the modification or setting
aside of the original action of the Secretary.
"(ii) FINDINGS.—The findings referred to in clause
(i)(II)(bb) shall, with respect to a question of fact, be
considered to be conclusive if those findings are—
"(I) supported by substantial evidence on the
record; and
"(II) considered as a whole.
"(4) FINALITY.—
"(A) IN GENERAL.—^Except as provided in subparagraph
(B), upon the filing of the record under this subsection
with the court—
"(i) the jurisdiction of the court shall be exclusive;
and
"(ii) the judgment of the court shall be final. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2987
"(B) REVIEW BY SUPREME COURT.—^A judgment under
subparagraph (A) shall be subject to review by the Supreme
Court of the United States upon writ of certiorari or certifi­
cation, as provided in section 1254 of title 28, United States
Code.
"SEC. 819. MONITORING OF COMPLIANCE. 25 USC 4238.
"(a) ENFORCEABLE AGREEMENTS.—
"(1) IN GENERAL.—The Director, through binding contrac­
tual agreements with owners or other authorized entities, shall
ensure long-term compliance with the provisions of this title.
"(2) MEASURES.—^The measures referred to in paragraph
(1) shall provide for—
"(A) to the extent allowable by Federal and State law,
the enforcement of the provisions of this title by the Depart­
ment and the Secretary; and
"(B) remedies for breach of the provisions referred to
in paragraph (1).
"(b) PERIODIC MONITORING.—
"(1) IN GENERAL.—^Not less frequently than annually, the
Director shall review the activities conducted and housing
assisted under this title to assess compliance with the require­
ments of this title.
"(2) REVIEW.—^Each review under paragraph (1) shall
include onsite inspection of housing to determine compliance
with applicable requirements.
"(3) RESULTS.—^The results of each review under paragraph
(1) shall be—
"(A) included in a performance report of the Director
submitted to the Secretary under section 820; and
"(B) made available to the public.
"(c) PERFORMANCE MEASURES.—^The Secretary shall establish
such performance measures as may be necessary to assess compli­
ance with the requirements of this title.
-SEC. 820. PERFORMANCE REPORTS. 25 USC 4239.
"(a) REQUIREMENT.—For each fiscal year, the Director shall—
"(1) review the progress the Department has made during
that fiscal year in carrjdng out the housing plan submitted
by the Department under section 803; and
"(2) submit a report to the Secretary (in a form acceptable
to the Secretary) describing the conclusions of the review.
"(b) CONTENT.—^Each report submitted under this section for
a fiscal year shall—
"(1) describe the use of grant amounts provided to the
Department of Hawaiian Home Lands for that fiscal year;
"(2) assess the relationship of the use referred to in para­
graph (1) to the goals identified in the housing plan;
"(3) indicate the programmatic accomplishments of the
Department; and
"(4) describe the manner in which the Department would
change its housing plan submitted under section 803 as a
result of its experiences.
"(c) SUBMISSIONS.—^The Secretary shall—
"(1) establish a date for submission of each report under
this section;
"(2) review each such report; and 114 STAT. 2988 PUBLIC LAW 106-569—DEC. 27, 2000
"(3) with respect to each such report, make recommenda­
tions as the Secretary considers appropriate to carry out the
purposes of this title.
"(d) PUBLIC AVAILABILITY.—
"(1) COMME^^^s BY BENEFICIARIES.—In preparing a report
under this section, the Director shall make the report publicly
available to the beneficiaries of the Hawaiian Homes Commis­
sion Act, 1920 (42 Stat. 108 et seq.) and give a sufficient
amount of time to permit those beneficiaries to comment on
that report before it is submitted to the Secretary (in such
manner and at such time as the Director may determine).
"(2) SUMMARY OF COMMENTS.—The report shall include a
summary of any comments received by the Director from bene­
ficiaries under paragraph (1) regarding the program to carry
out the housing plan.
25 use 4240. "SEC. 821. REVIEW AND AUDIT BY SECRETARY.
"(a) ANNUAL REVIEW.—
"(1) IN GENERAL.—^The Secretary shall, not less frequently
than on an annual basis, make such reviews and audits as
may be necessary or appropriate to determine whether—
"(A) the Director has—
"(i) carried out eligible activities under this title
in a timely manner;
"(ii) carried out and made certifications in accord­
ance with the requirements and the primary objectives
of this title and with other applicable laws; and
"(iii) a continuing capacity to carry out the eligible
activities in a timely manner;
"(B) the Director has complied with the housing plan
submitted by the Director under section 803; and
"(C) the performance reports of the Department under
section 821 are accurate.
"(2) ONSITE VISITS.—Each review conducted under this sec­
tion shall, to the extent practicable, include onsite visits by
employees of the Department of Housing and Urban Develop­
ment.
Deadline. "(b) REPORT BY SECRETARY.—The Secretary shall give the
Department of Hawaiian Home Lands not less than 30 days to
review and comment on a report under this subsection. After taking
into consideration the comments of the Department, the Secretary
may revise the report and shall make the comments of the Depart­
ment and the report with any revisions, readily available to the
public not later than 30 days after receipt of the comments of
the Department.
"(c) EFFECT OF REVIEWS.—^The Secretary may make appropriate
adjustments in the amount of annual grants under this title in
accordance with the findings of the Secretary pursuant to reviews
and audits under this section. The Secretary may adjust, reduce,
or withdraw grant amounts, or take other action as appropriate
in accordance with the reviews and audits of the Secretary under
this section, except that grant amounts already expended on afford­
able housing activities may not be recaptured or deducted from
future assistance provided to the Department of Hawaiian Home
Lands. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2989
"SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS. 25 USCI 4241.
"To the extent that the financial transactions of the Department
of Hawaiian Home Lands involving grant amounts under this title
relate to amounts provided under this title, those transactions
may be audited by the Comptroller General of the United States
under such regulations as may be prescribed by the Comptroller
General. The Comptroller General of the United States shall have
access to all books, accounts, records, reports, files, and other
papers, things, or property belonging to or in use by the Department
of Hawaiian Home Lands pertaining to such financial transactions
and necessary to facilitate the audit.
"SEC. 823. REPORTS TO CONGRESS. 42 USC 4242.
"(a) IN GENERAL.—Not later than 90 days after the conclusion Deadline,
of each fiscal year in which assistance under this title is made
available, the Secretary shall submit to Congress a report that
contains—
"(1) a description of the progress made in accomplishing
the objectives of this title;
"(2) a summary of the use of funds available under this
title during the preceding fiscal year; and
"(3) a description of the aggregate outstanding loan guaran­
tees under section 184A of the Housing and Community
Development Act of 1992.
"(b) RELATED REPORTS.—^The Secretary may require the
Director to submit to the Secretary such reports and other informa­
tion as may be necessary in order for the Secretary to prepare
the report required under subsection (a).
"SEC. 824. AUTHORIZATION OF APPROPRIATIONS.
"There are authorized to be appropriated to the Department
of Housing and Urban Development for grants under this title
such sums as may be necessary for each of fiscal years 2001,
2002, 2003, 2004, and 2005.".
SEC. 514. LOAN GUARANTEES.
Subtitle E of title I of the Housing and Community Develop­
ment Act of 1992 is amended by inserting after section 184 (12
U.S.C. 1715z-13a) the following:
"SEC. 184A LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.
"(a) DEFINITIONS.—In this section:
"(1) DEPARTMENT OF HAWAIIAN HOME LANDS.—^The term
'Department of Hawaiian Home Lands' means the agency or
department of the government of the State of Hawaii that
is responsible for the administration of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.).
"(2) ELIGIBLE ENTITY.—The term 'eligible entity* means a
Native Hawaiian family, the Department of Hawaiian Home
Lands, the Office of Hawaiian Affairs, and private nonprofit
or private for-profit organizations experienced in the planning
and development of affordable housing for Native Hawaiians.
"(3) FAMILY.—^The term 'family* means one or more persons
maintaining a household, as the Secretary shall by regulation
provide.
"(4) GUARANTEE FUND.—^The term 'Guarantee Fund' means
the Native Hawaiian Housing Loan Guarantee Fund estab­
lished under subsection (j). 25 USC 4243.
12 USC 1715z-
13b. 114 STAT. 2990 PUBLIC LAW 106-569—DEC. 27, 2000
"(5) HAWAIIAN HOME LANDS.—The term 'Hawaiian Home
Lands' means lands that—
"(A) have the status of Hawaiian Home Lands under
section 204 of the Hawaiian Homes Commission Act (42
Stat. 110); or
"(B) are acquired pursuant to that Act.
"(6) NATIVE HAWAIIAN.—^The term 'Native Hawaiian' means
any individual who is—
"(A) a citizen of the United States; and
"(B) a descendant of the aboriginal people, who, prior
to 1778, occupied and exercised sovereignty in the area
that currently constitutes the State of Hawaii, as evidenced
by-
"(i) genealogical records;
"(ii) verification by kupuna (elders) or kama'aina
(long-term community residents); or
"(iii) birth records of the State of Hawaii.
"(7) OFFICE OF HAWAIIAN AFFAIRS.—-The term 'Office of
Hawaiian Affairs' means the entity of that name established
under the constitution of the State of Hawaii.
"(b) AUTHORITY,—^To provide access to sources of private
financing to Native Hawaiian families who otherwise could not
acquire housing financing because of the unique legal status of
the Hawaiian Home Lands or as a result of a lack of access to
private financial markets, the Secretary may guarantee an amount
not to exceed 100 percent of the unpaid principal and interest
that is due on an eligible loan under subsection (c).
"(c) ELIGIBLE LOANS.—Under this section, a loan is an eligible
loan if that loan meets the following requirements:
"(1) ELIGIBLE BORROWERS.—^The loan is made only to a
borrower who is—
"(A) a Native Hawaiian family;
"(B) the Department of Hawaiian Home Lands;
"(C) the Office of Hawaiian Affairs; or
"(D) a private nonprofit organization experienced in
the planning and development of affordable housing for
Native Hawaiians.
"(2) ELIGIBLE HOUSING.—
"(A) IN GENERAL.—^The loan will be used to construct,
acquire, or rehabilitate not more than 4-family dwellings
that are standard housing and are located on Hawaiian
Home Lands for which a housing plan described in subpara­
graph (B) applies.
"(B) HOUSING PLAN.—^A housing plan described in this
subparagraph is a housing plan that—
"(i) has been submitted and approved by the Sec­
retary under section 803 of the Native American
Housing Assistance and Self-Determination Act of
1996; and
"(ii) provides for the use of loan guarantees under
this section to provide affordable homeownership
housing on Hawaiian Home Lands.
"(3) SECURITY.—^The loan may be secured by any collateral
authorized under applicable Federal or State law.
"(4) LENDERS.— PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2991
"(A) IN GENERAL.—The loan shall be made only by
a lender approved by, and meeting qualifications estab­
lished by, the Secretary, including any lender described
in subparagraph (B), except that a loan otherwise insured
or guaranteed by an agency of the Federal Government
or made by the Department of Hawaiian Home Lands
from amounts borrowed from the United States shall not
be eligible for a guarantee under this section.
"(B) APPROVAL.—^The following lenders shall be consid­
ered to be lenders that have been approved by the Sec­
retary:
"(i) Any mortgagee approved by the Secretary for
participation in the single family mortgage insurance
program under title II of the National Housing Act
(12U.S.C.A. 1707etseq.).
"(ii) Any lender that makes housing loans under
chapter 37 of title 38, United States Code, that are
automatically guaranteed under section 3702(d) of title
38, United States Code.
"(iii) Any lender approved by the Secretary of Agri­
culture to make guaranteed loans for single family
housing under the Housing Act of 1949 (42 U.S.C.A
1441 et seq.).
"(iv) Any other lender that is supervised, approved,
regulated, or insured by any agency of the Federal
Government.
"(5) TERMS.—The loan shall—
"(A) be made for a term not exceeding 30 years;
"(B) bear interest (exclusive of the guarantee fee under
subsection (e) and service charges, if any) at a rate agreed
upon by the borrower and the lender and determined by
the Secretary to be reasonable, but not to exceed the rate
generally charged in the area (as determined by the Sec­
retary) for home mortgage loans not guaranteed or insured
by any agency or instrumentality of the Federal Govern­
ment;
"(C) involve a principal obligation not exceeding—
"(i) 97.75 percent of the appraised value of the
property as of the date the loan is accepted for guar­
antee (or 98.75 percent if the value of the property
is $50,000 or less); or
"(ii) the amount approved by the Secretary under
this section; and
"(D) involve a payment on account of the property—
"(i) in cash or its equivalent; or
"(ii) through the value of any improvements to
the property made through the skilled or unskilled
labor of the borrower, as the Secretary shall provide.
"(d) CERTIFICATE OF GUARANTEE.—
"(1) APPROVAL PROCESS.—
"(A) IN GENERAL.—Before the Secretary approves any
loan for guarantee under this section, the lender shall
submit the application for the loan to the Secretary for
examination.
"(B) APPROVAL.—If the Secretary approves the applica­
tion submitted under subparagraph (A), the Secretary shall 114 STAT. 2992 PUBLIC LAW 106-569—DEC. 27, 2000
issue a certificate under this subsection as evidence of
the loan guarantee approved.
"(2) STANDARD FOR APPROVAL.—^The Secretary may approve
a loan for guarantee under this section and issue a certificate
under this subsection only if the Secretary determines that
there is a reasonable prospect of repayment of the loan.
"(3) EFFECT.—
"(A) IN GENERAL.—^A certificate of guarantee issued
under this subsection by the Secretary shall be conclusive
evidence of the eligibility of the loan for guarantee under
this section and the amount of that guarantee.
"(B) EVIDENCE.—^The evidence referred to in subpara­
graph (A) shall be incontestable in the hands of the bearer.
"(C) FULL FAITH AND CREDIT.—^The full faith and credit
of the United States is pledged to the payment of all
amounts agreed to be paid by the Secretary as security
for the obligations made by the Secretary under this sec­
tion.
"(4) FRAUD AND MISREPRESENTATION.—^This subsection may
not be construed—
"(A) to preclude the Secretary from establishing
defenses against the original lender based on fraud or
material misrepresentation; or
"(B) to bar the Secretary from establishing by regula­
tions that are on the date of issuance or disbursement,
whichever is earlier, partial defenses to the amount payable
on the guarantee.
"(e) GUARANTEE FEE.—
"(1) IN GENERAL.—^The Secretary shall fix and collect a
guarantee fee for the guarantee of a loan under this section,
which may not exceed the amount equal to 1 percent of the
principal obligation of the loan.
"(2) PAYMENT.—^The fee under this subsection shall—
"(A) be paid by the lender at time of issuance of the
guarantee; and
"(B) be adequate, in the determination of the Secretary,
to cover expenses and probable losses.
"(3) DEPOSIT.—^The Secretary shall deposit any fees col­
lected under this subsection in the Native Hawaiian Housing
Loan Guarantee Fund established under subsection (j).
"(f) LIABILITY UNDER GUARANTEE.—^The liability under a guar­
antee provided under this section shall decrease or increase on
a pro rata basis according to any decrease or increase in the
amount of the unpaid obligation under the provisions of the loan
agreement involved.
"(g) TRANSFER AND ASSUMPTION.—^Notwithstanding any other
provision of law, any loan guaranteed under this section, including
the security given for the loan, may be sold or assigned by the
lender to any financial institution subject to examination and super­
vision by an agency of the Federal CJovemment or of any State
or the District of Columbia.
"(h) DISQUALIFICATION OF LENDERS AND CIVIL MONEY PEN­
ALTIES.—
"(1) IN GENERAL.—
"(A) GROUNDS FOR ACTION.—^The Secretary may take
action under subparagraph (B) if the Secretary determines PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2993
that any lender or holder of a guarantee certificate under
subsection (d)—
"(i) has failed—
"(I) to maintain adequate accounting records;
"(11) to service adequately loans guaranteed
under this section; or
"(III) to exercise proper credit or underwriting
judgment; or
"(ii) has engaged in practices otherwise detri­
mental to the interest of a borrower or the United
States.
"(B) ACTIONS.—^Upon a determination by the Secretary
that a holder of a guarantee certificate under subsection
(d) has failed to carry out an activity described in subpara­
graph (A)(i) or has engaged in practices described in
subparagraph (A)(ii), the Secretary may—
"(i) refuse, either temporarily or permanently, to
guarantee any further loans made by such lender or
holder;
"(ii) bar such lender or holder from acquiring addi­
tional loans guaranteed under this section; and
"(iii) require that such lender or holder assume
not less than 10 percent of any loss on further loans
made or held by the lender or holder that are guaran­
teed under this section.
"(2) CIVIL MONEY PENALTIES FOR INTENTIONAL VIOLA­
TIONS.—
"(A) IN GENERAL.—^The Secretary may impose a civil
monetary penalty on a lender or holder of a guarantee
certificate under subsection (d) if the Secretary determines
that the holder or lender has intentionally failed—
"(i) to maintain adequate atcounting records;
"(ii) to adequately service loans guaranteed under
this section; or
"(iii) to exercise proper credit or underwriting judg­
ment.
"(B) PENALTIES.—A civil monetary penalty imposed
under this paragraph shall be imposed in the manner
and be in an amount provided under section 536 of the
National Housing Act (12 U.S.C.A. 1735f-l) with respect
to mortgagees and lenders under that Act.
"(3) PAYMENT ON LOANS MADE IN GOOD FAITH.—Notwith­
standing paragraphs (1) and (2), if a loan was made in good
faith, the Secretary may not refuse to pay a lender or holder
of a valid guarantee on that loan, without regard to whether
the lender or holder is barred under this subsection,
"(i) PAYMENT UNDER GUARANTEE.—
"(1) LENDER OPTIONS.—
"(A) IN GENERAL.—
"(i) NOTIFICATION.—If a borrower on a loan guaran­
teed under this section defaults on the loan, the holder
of the guarantee certificate shall provide written notice
of the default to the Secretary.
"(ii) PAYMENT.—Upon providing the notice required
under clause (i), the holder of the guarantee certificate 114 STAT. 2994 PUBLIC LAW 106-569—DEC. 27, 2000
shall be entitled to payment under the guarantee (sub­
ject to the provisions of this section) and may proceed
to obtain payment in one of the following manners:
"(I) FORECLOSURE.—
"(aa) IN GENERAL.—^The holder of the cer­
tificate may initiate foreclosure proceedings
(after providing written notice of that action
to the Secretary).
"(bb) PAYMENT.—Upon a final order by
the court authorizing foreclosure and submis­
sion to the Secretary of a claim for pajnnent
under the guarantee, the Secretary shall pay
to the holder of the certificate the pro rata
portion of the amount guaranteed (as deter­
mined pursuant to subsection (f)) plus reason­
able fees and expenses as approved by the
Secretary.
"(cc) SUBROGATION.—^The rights of the Sec­
retary shall be subrogated to the rights of
the holder of the guarantee. The holder shall
assign the obligation and security to the Sec­
retary.
"(II) No FORECLOSURE.—
"(aa) IN GENERAL.—^Without seeking fore­
closure (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 pajrment
of the claim under the guarantee. The Sec­
retary may accept assignment of the loan if
the Secretary determines that the assignment
is in the best interest of the United States,
"(bb) PAYMENT.—^Upon assignment, the
Secretary shall pay to the holder of the guar­
antee the pro rata portion of the amount
guaranteed (as determined under subsection
(f)).
"(cc) SUBROGATION.—^The rights of the Sec­
retary shall be subrogated to the rights of
the holder of the guarantee. The holder shall
assign the obligation and security to the Sec­
retary.
"(B) REQUIREMENTS.—Before any payment under a
guarantee is made under subparagraph (A), the holder
of the guarantee shall exhaust all reasonable possibilities
of collection. Upon payment, in whole or in part, to the
holder, the note or judgment evidencing the debt shall
be assigned to the United States and the holder shall
have no further claim against the borrower or the United
States. The Secretary shall then take such action to collect
as the Secretary determines to be appropriate.
"(2) LIMITATIONS ON LIQUIDATION.—
"(A) IN GENERAL.—If a borrower defaults on a loan
guaranteed under this section that involves a security
interest in restricted Hawaiian Home Land property, the PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2995
mortgagee or the Secretary shall only pursue liquidation
after offering to transfer the account to another eligible
Hawaiian family or the Department of Hawaiian Home
Lands.
"(B) LIMITATION.—If, after action is taken under
subparagraph (A), the mortgagee or the Secretary subse­
quently proceeds to liquidate the account, the mortgagee
or the Secretary shall not sell, transfer, or otherwise dis­
pose of or alienate the property described in subparagraph
(A) except to another eligible Hawaiian family or to the
Department of Hawaiian Home Lands.
"(j) HAWAIIAN HOUSING LOAN GUARANTEE FUND.—
"(1) ESTABLISHMENT.—^There is established in the Treasury
of the United States the Hawaiian Housing Loan Guarantee
Fund for the purpose of providing loan guarantees under this
section.
"(2) CREDITS.—^The Guarantee Fund shall be credited
with—
"(A) any amount, claims, notes, mortgages, contracts,
and property acquired by the Secretary under this section,
and any collections and proceeds therefrom;
"(B) any amounts appropriated pursuant to paragraph
(7);
"(C) any guarantee fees collected under subsection (e);
and
"(D) any interest or earnings on amounts invested
under paragraph (4).
"(3) USE.—Amounts in the Guarantee Fund shall be avail­
able, to the extent provided in appropriations Acts, for—
"(A) fulfilling any obligations of the Secretary with
respect to loans guaranteed under this section, including
the costs (as that term is defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of
such loans;
"(B) pa)dng taxes, insurance, prior liens, expenses nec­
essary to make fiscal adjustment in connection with the
application and transmittal of collections, and other
expenses and advances to protect the Secretary for loans
which are guaranteed under this section or held by the
Secretary;
"(C) acquiring such security property at foreclosure
sales or otherwise;
"(D) pajdng administrative expenses in connection with
this section; and
"(E) reasonable and necessary costs of rehabilitation
and repair to properties that the Secretary holds or owns
pursuant to this section.
"(4) INVESTMENT.—^Any amounts in the Guarantee Fund
determined by the Secretary to be in excess of amounts cur­
rently required at the time of the determination to carry out
this section may be invested in obligations of the United States.
"(5) LIMITATION ON COMMITMENTS TO GUARANTEE LOANS
AND MORTGAGES.—
"(A) REQUIREMENT OF APPROPRIATIONS.—The authority
of the Secretary to enter into commitments to guarantee
loans under this section shall be effective for any fiscal
year to the extent, or in such amounts as are, or have 114 STAT. 2996 PUBLIC LAW 106-569—DEC. 27, 2000
been, provided in appropriations Acts, without regard to
the fiscal year for which such amounts were appropriated.
"(B) LIMITATIONS ON COSTS OF GUARANTEES.—The
authority of the Secretary to enter into commitments to
guarantee loans under this section shall be effective for
any fiscal year only to the extent that amounts in the
Guarantee Fund are or have been made available in appro­
priations Acts to cover the costs (as that term is defined
in section 502 of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a)) of such loan guarantees for such fiscal
year. Any amounts appropriated pursuant to this subpara­
graph shall remain available until expended.
"(C) LIMITATION ON OUTSTANDING AGGREGATE PRIN­
CIPAL AMOUNT.—Subject to the limitations in subpara­
graphs (A) and (B), the Secretary may enter into commit­
ments to guarantee loans under this section for each of
fiscal years 2001, 2002, 2003, 2004, and 2005 with an
aggregate outstanding principal amount not exceeding
$100,000,000 for each such fiscal year.
"(6) LIABILITIES.—All liabilities and obligations of the assets
credited to the Guarantee Fund under paragraph (2)(A) shall
be liabilities and obligations of the Guarantee Fund.
"(7) AUTHORIZATION OF APPROPRIATIONS.—^There are
authorized to be appropriated to the Guarantee Fund to carry
out this section such sums as may be necessary for each of
fiscal years 2001, 2002, 2003, 2004, and 2005.
"(k) REQUIREMENTS FOR STANDARD HOUSING.—
Regulations. "(1) IN GENERAL.—^The Secretary shall, by regulation, estab­
lish housing safety and quality standards to be applied for
use under this section.
"(2) STANDARDS.—^The standards referred to in paragraph
(1) shall—
"(A) provide sufficient flexibility to permit the use of
various designs and materials in housing acquired with
loans guaranteed under this section; and
"(B) require each dwelling unit in any housing acquired
in the manner described in subparagraph (A) to—
"(i) be decent, safe, sanitary, and modest in size
and design;
"(ii) conform with applicable general construction
standards for the region in which the housing is
located;
"(iii) contain a plumbing system that—
"(I) uses a properly installed system of piping;
"(II) includes a kitchen sink and a partitional
bathroom with lavatory, toilet, and bath or shower;
and
"(III) uses water supply, plumbing, and sewage
disposal systems that conform to any minimum
standards established by the applicable county or
State;
"(iv) contain an electrical system using wiring and
equipment properly installed to safely supply electrical
energy for adequate lighting and for operation of appli­
ances that conforms to any appropriate county, State,
or national code; PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2997
"(v) be not less than the size provided under the
applicable locally adopted standards for size of dwelling
units, except that the Secretary, upon request of the
Department of Hawaiian Home Lands may waive the
size requirements under this paragraph; and
"(vi) conform with the energy performance require­
ments for new construction established by the Sec­
retary under section 526(a) of the National Housing
Act (12 U.S.CA. 1735f-4), unless the Secretary deter­
mines that the requirements are not applicable.
"(1) APPLICABILITY OF CIVIL RIGHTS STATUTES.—^To the extent
that the requirements of title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.) or of the Fair Housing Act (42 U.S.CA.
3601 et seq.) apply to a guarantee provided under this subsection,
nothing in the requirements concerning discrimination on the basis
of race shall be construed to prevent the provision of the guarantee
to an eligible entity on the basis that the entity serves Native
Hawaiian families or is a Native Hawaiian family.".
TITLE VI—MANUFACTURED HOUSING
IMPROVEMENT
SEC. 601. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—^This title may be cited as the "Manufactured
Housing Improvement Act of 2000".
(b) REFERENCES.—^Whenever in this title an amendment is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be made
to that section or other provision of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
5401 et seq.).
SEC. 602. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as follows:
"SEC. 602. FINDINGS AND PURPOSES.
"(a) FINDINGS.—Congress finds that—
"(1) manufactured housing plays a vital role in meeting
the housing needs of the Nation; and
"(2) manufactured homes provide a significant resource
for affordable homeownership and rental housing accessible
to all Americans.
"(b) PURPOSES.—^The purposes of this title are—
"(1) to protect the quality, durability, safety, and afford-
ability of manufactured homes;
"(2) to facilitate the availability of affordable manufactured
homes and to increase homeownership for all Americans;
"(3) to provide for the establishment of practical, uniform,
and, to the extent possible, performance-based Federal construc­
tion standards for manufactured homes;
"(4) to encourage innovative and cost-effective construction
techniques for manufactured homes;
"(5) to protect residents of manufactured homes with
respect to personal injuries and the amount of insurance costs
and property damages in manufactured housing, consistent
with the other purposes of this section; Maniifactured
Housing
Improvement Act
of2000.
42 use 5401
note. 114 STAT. 2998 PUBLIC LAW 106-569—DEC. 27, 2000
"(6) to establish a balanced consensus process for the
development, revision, and interpretation of Federal construc­
tion and safety standards for manufactured homes and related
regulations for the enforcement of such standards;
"(7) to ensure uniform and effective enforcement of Federal
construction and seifety standards for manufactured homes;
and
"(8) to ensure that the public interest in, and need for,
affordable manufactured housing is duly considered in all deter­
minations relating to the Federal standards and their enforce­
ment.".
SEC. 603. DEFINITIONS.
(a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is amended—
(1) in paragraph (2), by striking "dealer" and inserting
"retailer";
(2) in paragraph (12), by striking "and" at the end;
(3) in paragraph (13), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following:
"(14) 'administering organization' means the recognized,
voluntary, private sector, consensus standards body with spe­
cific experience in developing model residential building codes
and standards involving all disciplines regarding construction
and safety that administers the consensus standards through
a development process;
"(15) 'consensus committee' means the committee estab­
lished under section 604(a)(3);
"(16) 'consensus standards development process' means the
process by which additions, revisions, and interpretations to
the Federal manufactured home construction and safety stand­
ards and enforcement regulations shall be developed and rec­
ommended to the Secretary by the consensus committee;
"(17) 'primary inspection agency* means a State agency
or private organization that has been approved by the Secretary
to act as a design approval primary inspection agency or a
production inspection primary inspection agency, or both;
"(18) 'design approval primary inspection agency' means
a State agency or private organization that has been approved
by the Secretary to evaluate and either approve or disapprove
manufactured home designs and quality control procedures;
"(19) 'installation standards' means reasonable specifica­
tions for the installation of a manufactured home, at the place
of occupancy, to ensure proper siting, the joining of all sections
of the home, and the installation of stabilization, support, or
anchoring systems;
"(20) 'monitoring' means the process of periodic review
of the primary inspection agencies, by the Secretary or by
a State agency under an approved State plan pursuant to
section 623, in accordance with regulations promulgated under
this title, giving due consideration to the recommendations
of the consensus committee under section 604(b), which process
shall be for the purpose of ensuring that the primary inspection
agencies are discharging their duties under this title; and
"(21) 'production inspection primary inspection agency
means a State agency or private organization that has been PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2999
approved by the Secretary to evaluate the abihty of manufac­
tured home manufacturing plants to comply with approved
quality control procedures and with the Federal manufactured
home construction and safety standards promulgated here­
under, including the inspection of homes in the plant.",
(b) CONFORMING AMENDMENTS.—The National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
5401 et seq.) is amended—
(1) in section 613 (42 U.S.C. 5412), by striking "dealer"
each place it appears and inserting "retailer";
(2) in section 614(f) (42 U.S.C. 5413(f)), by striking "dealer"
each place it appears and inserting "retailer^';
(3) in section 615 (42 U.S.C. 5414)—
(A) in subsection (b)(1), by striking "dealer" and
inserting "retailer";
(B) in subsection (b)(3), by striking "dealer or dealers"
and inserting "retailer or retailers"; and
(C) in subsections (d) and (f), by striking "dealers"
each place it appears and inserting "retailers";
(4) in section 616 (42 U.S.C. 5415), by striking "dealer"
and inserting "retailer"; and
(5) in section 623(c)(9), by striking "dealers" and inserting 42 USC 5422.
"retailers".
SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUCTION AND
SAFETY STANDARDS.
Section 604 (42 U.S.C. 5403) is amended—
(1) by striking subsections (a) and (b) and inserting the
following:
"(a) ESTABLISHMENT.—
"(1) AUTHORITY,—^The Secretary shall establish, by order,
appropriate Federal manufactured home construction and
safety standards, each of which—
"(A) shall—
"(i) be reasonable and practical;
"(ii) meet high standards of protection consistent
with the purposes of this title; and
"(iii) be performance-based and objectively stated,
unless clearly inappropriate; and
"(B) except as provided in subsection (b), shall be estab­
lished in accordance with the consensus standards develop­
ment process.
"(2) CONSENSUS STANDARDS AND REGULATORY DEVELOP­
MENT PROCESS.—
"(A) INITIAL AGREEMENT.—Not later than 180 days Deadline,
after the date of the enactment of the Manufactured
Housing Improvement Act of 2000, the Secretary shall
enter into a contract with an administering organization.
The contractual agreement shall—
"(i) terminate on the date on which a contract
is entered into under subparagraph (B); and
"(ii) require the administering organization to—
"(I) recommend the initial members of the con­
sensus committee under paragraph (3);
"(II) administer the consensus standards
development process until the termination of that
agreement; and 114 STAT. 3000 PUBLIC LAW 106-569—DEC. 27, 2000
"(III) administer the consensus development
and interpretation process for procedural and
enforcement regulations and regulations specifying
the permissible scope and conduct of monitoring
until the termination of that agreement.
"(B) COMPETITIVELY PROCURED CONTRACT.—^Upon the
expiration of the 4-year period beginning on the date on
which all members of the consensus committee are
appointed under paragraph (3), the Secretary shall, using
competitive procedures (as such term is defined in section
4 of the Office of Federal Procurement Policy Act), enter
into a competitively awarded contract with an admin­
istering organization. The administering organization shall
administer the consensus process for the development and
interpretation of the Federal standards, the procedural and
enforcement regulations, and regulations specifying the
permissible scope and conduct of monitoring, in accordance
with this title.
"(C) PERFORMANCE REVIEW.—^The Secretary—
"(i) shall periodically review the performance of
the administering organization; and
"(ii) may replace the administering organization
with another qualified technical or building code
organization, pursuant to competitive procedures, if
the Secretary determines in writing that the admin­
istering organization is not fulfilling the terms of the
agreement or contract to which the administering
organization is subject or upon the expiration of the
agreement or contract.
"(3) CONSENSUS COMMITTEE.—
"(A) PURPOSE.—^There is established a committee to
be known as the 'consensus committee', which shall, in
accordance with this title—
"(i) provide periodic recommendations to the Sec­
retary to adopt, revise, and interpret the Federal
manufactured housing construction and safety stand­
ards in accordance with this subsection;
"(ii) provide periodic recommendations to the Sec­
retary to adopt, revise, and interpret the procedural
and enforcement regulations, including regulations
specifying the permissible scope and conduct of moni­
toring in accordance with subsection (b);
"(iii) be organized and carry out its business in
a manner that guarantees a fair opportunity for the
expression and consideration of various positions and
for public participation; and
"(iv) be deemed to be an advisory committee not
composed of Federal employees.
"(B) MEMBERSHIP.—^The consensus committee shall be
composed of—
"(i) twenty-one voting members appointed by the
Secretary, after consideration of the recommendations
of the administering organization, from among individ­
uals who are qualified by background and experience
to participate in the work of the consensus committee;
and PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3001
"(ii) one nonvoting member appointed by the Sec­
retary to represent the Secretary on the consensus
committee.
"(C) DISAPPROVAL.—^The Secretary shall state, in
writing, the reasons for failing to appoint any individual
recommended under paragraph (2)(A)(ii)(D.
"(D) SELECTION PROCEDURES AND REQUIREMENTS.—
Each member of the consensus committee shall be
appointed in accordance with selection procedures, which
shall be based on the procedures for consensus committees
promulgated by the American National Standards Institute
(or successor organization), except that the American
National Standards Institute interest categories shall be
modified for purposes of this paragraph to ensure equal
representation on the consensus committee of the following
interest categories:
"(i) PRODUCERS.—Seven producers or retailers of
manufactured housing,
"(ii) USERS.—Seven persons representing consumer
interests, such as consumer organizations, recognized
consumer leaders, and owners who are residents of
manufactured homes.
"(iii) GENERAL INTEREST AND PUBLIC OFFICIALS.—
Seven general interest and public official members.
"(E) BALANCING OF INTERESTS.—
"(i) IN GENERAL.—In order to achieve a proper
balance of interests on the consensus committee, the
Secretary, in appointing the members of the consensus
committee—
"(I) shall ensure that all directly and materi­
ally affected interests have the opportunity for
fair and equitable participation without dominance
by any single interest; and
"(II) may reject the appointment of any one
or more individuals in order to ensure that there
is not dominance by any single interest,
"(ii) DOMINANCE DEFINED.—In this subparagraph,
the term 'dominance' means a position or exercise of
dominant authority, leadership, or influence by reason
of superior leverage, strength, or representation.
"(F) ADDITIONAL QUALIFICATIONS.—
"(i) FINANCIAL INDEPENDENCE.—NO individual
appointed under subparagraph (D)(ii) shall have, and
three of the individuals appointed under subparagraph
(D)(iii) shall not have—
"(I) a significant financial interest in any seg­
ment of the manufactured housing industry; or
"(II) a significant relationship to any person
engaged in the manufactured housing industry,
"(ii) POST-EMPLOYMENT BAN.—^Each individual
described in clause (i) shall be subject to a ban dis­
allowing compensation from the manufactured housing
industry during the period of, and during the 1-year
following, the membership of the individual on the
consensus committee.
"(G) MEETINGS.— 114 STAT. 3002 PUBLIC LAW 106-569—DEC. 27, 2000
Deadline.
Federal Register,
publication.
Deadline. "(i) NOTICE; OPEN TO PUBLIC.—The consensus com­
mittee shall provide advance notice of each meeting
of the consensus committee to the Secretary and cause
to be published in the Federal Register advance notice
of each such meeting. All meetings of the consensus
committee shall be open to the public.
"(ii) REIMBURSEMENT.—^Members of the consensus
committee in attendance at meetings of the consensus
committee shall be reimbursed for their actual
expenses as authorized by section 5703 of title 5,
United States Code, for persons employed intermit­
tently in Government service.
"(H) ADMINISTRATION.—^The consensus committee and
the administering organization shall—
"(i) operate in conformance with the procedures
established by the American National Standards
Institute for the development and coordination of
American National Standards; and
"(ii) apply to the American National Standards
Institute and take such other actions as may be nec­
essary to obtain accreditation from the American
National StEindards Institute.
"(I) STAFF AND TECHNICAL SUPPORT.—^The admin­
istering organization shall, upon the request of the con­
sensus committee—
"(i) provide reasonable staff resources to the con­
sensus committee; and
"(ii) furnish technical support in a timely manner
to any of the interest categories described in subpara­
graph (D) represented on the consensus committee,
if—
"(I) the support is necessary to ensure the
informed participation of the consensus committee
members; and
"(II) the costs of providing the support are
reasonable.
"(J) DATE OF INITIAL APPOINTMENTS.—^The initial
appointments of all the members of the consensus com­
mittee shall be completed not later than 90 days after
the date on which a contractual agreement under para­
graph (2)(A) is entered into with the administering
organization.
"(4) REVISIONS OF STANDARDS.—
"(A) IN GENERAL.—Beginning on the date on which
all members of the consensus committee are appointed
under paragraph (3), the consensus committee shall, not
less than once during each 2-year period—
"(i) consider revisions to the Federal manufactured
home construction and safety standards; and
"(ii) submit proposed revised standards, if
approved in a vote of the consensus committee by
two-thirds of the members, to the Secretary in the
form of a proposed rule, including an economic anal­
ysis.
"(B) PUBLICATION OF PROPOSED REVISED STANDARDS.—
"(i) PUBLICATION BY THE SECRETARY.—^The con­
sensus committee shall provide a proposed revised PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3003
standard under subparagraph (A)(ii) to the Secretary
who shall, not later than 30 days after receipt, cause
such proposed revised standard to be published in the
Federal Register for notice and comment in accordance
with section 553 of title 5, United States Code. Unless
clause (ii) applies, the Secretary shall provide an oppor­
tunity for public comment on such proposed revised
standard in accordance with such section 553 and any
such comments shall be submitted directly to the con­
sensus committee, without delay.
"(ii) PUBLICATION OF REJECTED PROPOSED REVISED
STANDARDS.—If the Secretary rejects the proposed
revised standard, the Secretary shall cause to be pub­
lished in the Federal Register the rejected proposed
revised standard, the reasons for rejection, and any
recommended modifications set forth.
"(C) PRESENTATION OF PUBLIC COMMENTS; PUBLICATION
OF RECOMMENDED REVISIONS.—
"(i) PRESENTATION.—^Any public comments, views,
and objections to a proposed revised standard pub­
lished under subparagraph (B) shall be presented by
the Secretary to the consensus committee upon their
receipt and in the manner received, in accordance with
procedures established by the American National
Standards Institute.
"(ii) PUBLICATION BY THE SECRETARY.—^The con­
sensus committee shall provide to the Secretary any
revision proposed by the consensus committee, which
the Secretary shall, not later than 30 calendar days
after receipt, cause to be published in the Federal
Register a notice of the recommended revisions of the
consensus committee to the standards, a notice of the
submission of the recommended revisions to the Sec­
retary, and a description of the circumstances under
which the proposed revised standards could become
effective.
"(iii) PUBLICATION OF REJECTED PROPOSED REVISED
STANDARDS.—If the Secretary rejects the proposed
revised standard, the Secretary shall cause to be pub­
lished in the Federal Register the rejected proposed
revised standard, the reasons for rejection, and any
recommended modifications set forth.
"(5) REVIEW BY THE SECRETARY.—
"(A) IN GENERAL.—The Secretary shall either adopt,
modify, or reject a standard, as submitted by the consensus
committee under paragraph (4)(A).
"(B) TIMING.—Not later than 12 months after the date
on which a standard is submitted to the Secretary by
the consensus committee, the Secretary shall take action
regarding such standard under subparagraph (C).
"(C) PROCEDURES.—If the Secretary—
"(i) adopts a standard recommended by the con­
sensus committee, the Secretary shall—
"(I) issue a final order without further rule­
making; and
"(II) cause the final order to be published in
the Federal Register; Federal Register,
publication.
Deadline.
Federal Register,
publication.
Deadliue.
Federal Register,
publication. 114 STAT. 3004 PUBLIC LAW 106-569—DEC. 27, 2000
Federal Register,
publication.
Federal Register,
publication.
Deadline. "(ii) determines that any standard should be
rejected, the Secretary shall—
"(I) reject the standard; and
"(II) cause to be published in the Federal Reg­
ister a notice to that effect, together with the rea­
son or reasons for rejecting the proposed standard;
or
"(iii) determines that a standard recommended by
the consensus committee should be modified, the Sec­
retary shall—
"(I) cause to be published in the Federal Reg­
ister the proposed modified standard, together with
an explanation of the reason or reasons for the
determination of the Secretary; and
"(II) provide an opportunity for public com­
ment in accordance with section 553 of title 5,
United States Code.
"(D) FINAL ORDER.—^Any final standard under this
paragraph shall become effective pursuant to subsection
(0.
"(6) FAILURE TO ACT.—If the Secretary fails to take final
action under paragraph (5) and to cause notice of the action
to be published in the Federal Register before the expiration
of the 12-month period beginning on the date on which the
proposed revised standard is submitted to the Secretary under
paragraph (4)(A)—
"(A) the Secretary shall appear in person before the
appropriate housing and appropriations subcommittees and
committees of the House of Representatives and the Senate
(referred to in this paragraph as the 'committees') on a
date or dates to be specified by the committees, but in
no event later than 30 days after the expiration of that
12-month period, and shall state before the committees
the reasons for failing to take final action as required
under paragraph (5); and
"(B) if the Secretary does not appear in person as
required under subparagraph (A), the Secretary shall there­
after, and until such time as the Secretary does appear
as required under subparagraph (A), be prohibited from
expending any funds collected under authority of this title
in an eimount greater than that collected and expended
in the fiscal year immediately preceding the date of the
enactment of the Manufactured Housing Improvement Act
of 2000, indexed for inflation as determined by the Congres­
sional Budget Office.
"(b) OTHER ORDERS.—
"(1) REGULATIONS.—^The Secretary may issue procedural
and enforcement regulations and revisions to existing regula­
tions as necessary to implement the provisions of this title.
The consensus committee may submit to the Secretary proposed
procedural and enforcement regulations and recommendations
for the revision of such regulations.
"(2) INTERPRETATIVE BULLETINS.—^The Secretary may issue
interpretative bulletins to clarify the meaning of any Federal
manufactured home construction and safety standard or proce­
dural and enforcement regulation. The consensus committee
may submit to the Secretary proposed interpretative bulletins PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3005
Federal Register,
publication. to clarify the meaning of any Federal manufactured home
construction and safety standard or procedural and enforcement
regulation.
"(3) REVIEW BY CONSENSUS COMMITTEE.—Before issuing a
procedural or enforcement regulation or an interpretative
bulletin—
"(A) the Secretary shall—
"(i) submit the proposed procedural or enforcement
regulation or interpretative bulletin to the consensus
committee; and
"(ii) provide the consensus committee with a period
of 120 days to submit written comments to the Sec­
retary on the proposed procedural or enforcement regu­
lation or the interpretative bulletin; and
"(B) if the Secretary rejects any significant comment
provided by the consensus committee under subparagraph
(A), the Secretary shall provide a written explanation of
the reasons for the rejection to the consensus committee;
and
"(C) following compliance with subparagraphs (A) and
(B), the Secretary shall—
"(i) cause the proposed regulation or interpretative
bulletin and the consensus committee's written com­
ments, along with the Secretar3^s response thereto,
to be published in the Federal Register; and
"(ii) provide an opportunity for public comment
in accordance with section 553 of title 5, United States
Code.
"(4) REQUIRED ACTION.—^Not later than 120 days after the Deadline
date on which the Secretary receives a proposed regulation
or interpretative bulletin submitted by the consensus com­
mittee, the Secretary shall—
"(A) approve the proposal and cause the proposed regu­
lation or interpretative bulletin to be published for public
comment in accordance with section 553 of title 5, United
States Code; or
"(B) reject the proposed regulation or interpretative
bulletin and—
"(i) provide to the consensus committee a written
explanation of the reasons for rejection; and
"(ii) cause to be published in the Federal Register
the rejected proposed regulation or interpretive bul­
letin, the reasons for rejection, and any recommended
modifications set forth.
"(5) AUTHORITY TO ACT AND EMERGENCY.—If the Secretary
determines, in writing, that such action is necessary to address
an issue on which the Secretary determines that the consensus
committee has not made a timely recommendation following
a request by the Secretary, or in order to respond to an emer­
gency that jeopardizes the public health or safety, the Secretary
may issue an order that is not developed under the procedures
set forth in subsection (a) or in this subsection, if the
Secretary—
"(A) provides to the consensus committee a written
description and sets forth the reasons why action is nec­
essary and all supporting documentation; and Federal Register,
publication. 114 STAT. 3006 PUBLIC LAW 106-569—DEC. 27, 2000
Federal Register, "(B) issues the order after notice and an opportunity
publication. for public comment in accordance with section 553 of title
5, United States Code, and causes the order to be published
in the Federal Register.
"(6) CHANGES.—Any statement of policies, practices, or
procedures relating to construction and safety standards, regu­
lations, inspections, monitoring, or other enforcement activities
that constitutes a statement of general or particular applica­
bility to implement, interpret, or prescribe law or policy by
the Secretary is subject to subsection (a) or this subsection.
Any change adopted in violation of subsection (a) or this sub­
section is void.
"(7) TRANSITION.—^Until the date on which the consensus
committee is appointed pursuant to section 604(a)(3), the Sec­
retary may issue proposed orders, pursuant to notice and com­
ment in accordance with section 553 of title 5, United States
Code, that are not developed under the procedures set forth
in this section for new and revised standards.";
(2) in subsection (d), by adding at the end the following:
"Federal preemption under this subsection shall be broadly
and liberally construed to ensure that disparate State or local
requirements or standards do not affect the uniformity and
comprehensiveness of the standards promulgated under this
section nor the Federal superintendence of the manufactured
housing industry as established by this title. Subject to section
605, there is reserved to each State the right to establish
standards for the stabilizing and support systems of manufac­
tured homes sited within that State, and for the foundations
on which manufactured homes sited within that State are
installed, and the right to enforce compliance with such stand­
ards, except that such standards shall be consistent with the
purposes of this title and shall be consistent with the design
of the manufacturer.";
(3) by striking subsection (e);
(4) in subsection (f), by striking the subsection designation
and all of the matter that precedes paragraph (1) and inserting
the following:
"(e) CONSIDERATIONS IN ESTABLISHING AND INTERPRETING
STANDARDS AND REGULATIONS.—^The consensus committee, in rec­
ommending standards, regulations, and interpretations, and the
Secretary, in establishing standards or regulations or issuing
interpretations under this section, shall—";
(5) by striking subsection (g);
(6) in the first sentence of subsection (j), by striking "sub­
section (f)" and inserting "subsection (e)"; and
(7) by redesignating subsections (h), (i), and (j), as sub­
sections (f), (g), and (h), respectively.
SEC. 605. ABOUSHMENT OF NATIONAL MANUFACTURED HOME
ADVISORY COUNCIL; MANUFACTURED HOME INSTALLA­
TION.
(a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is amended
to read as follows:
"SEC. 605. MANUFACTURED HOME INSTALLATION.
"(a) PROVISION OF INSTALLATION DESIGN AND INSTRUCTIONS.—
A manufacturer shall provide with each manufactured home, design
and instructions for the installation of the manufactured home PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3007
that have been approved by a design approval primary inspection
agency. After estabUshment of model stsindards under subsection
(b)(2), a design approval primary inspection agency may not give
such approval unless a design and instruction provides equal or
greater protection than the protection provided under such model
standards.
"(b) MODEL MANUFACTURED HOME INSTALLATION STANDARDS.—
"(1) PROPOSED MODEL STANDARDS.—^Not later than 18 Deadline,
months after the date on which the initial appointments of
all the members of the consensus committee are completed,
the consensus committee shall develop and submit to the Sec­
retary proposed model manufactured home installation stand­
ards, which shall, to the maximum extent practicable, taking
into account the factors described in section 604(e), be con­
sistent with—
"(A) the manufactured home designs that have been
approved by a design approval primary inspection agency;
and
"(B) the designs and instructions for the installation
of manufactured homes provided by manufacturers under
subsection (a).
"(2) ESTABLISHMENT OF MODEL STANDARDS.—^Not later than
12 months after receiving the proposed model standards sub­
mitted under paragraph (1), the Secretary shall develop and
establish model manufactured home installation standards,
which shall, to the maximum extent practicable, taking into
account the factors described in section 604(e), be consistent
with—
"(A) the manufactured home designs that have been
approved by a design approval primary inspection agency;
and
"(B) the designs and instructions for the installation
of manufactured homes provided by manufacturers under
subsection (a).
"(3) FACTORS FOR CONSIDERATION.—
"(A) CONSENSUS COMMITTEE.—^In developing the pro-
j posed model standards under paragraph (1), the consensus
committee shall consider the factors described in section
604(e).
"(B) SECRETARY.—In developing and establishing the
model standards under paragraph (2), the Secretary shall
consider the factors described in section 604(e).
"(4) ISSUANCE.—^The model manufactured home installation
standards shall be issued after notice and an opportunity for
public comment in accordzmce with section 553 of title 5, United
States Code.
"(c) MANUFACTURED HOME INSTALLATION PROGRAMS.—
"(1) PROTECTION OF MANUFACTURED HOUSING RESIDENTS
DURING INITIAL PERIOD.—^During the 5-year period beginning
on the date of the enactment of the Manufactured Housing
Improvement Act of 2000, no State or manufacturer may estab­
lish or implement any installation standards that, in the deter­
mination of the Secretary, provide less protection to the resi­
dents of manufactured homes than the protection provided
by the installation standards in effect with respect to the State
or manufacturer, as applicable, on the date of the enactment
of the Manufactured Housing Improvement Act of 2000.
79-194 O – 00 – 32 : QL 3 Part 5 114 STAT. 3008 PUBLIC LAW 106-569—DEC. 27, 2000
"(2) INSTALLATION STANDARDS.—
"(A) ESTABLISHMENT OF INSTALLATION PROGRAM.—^Not
later than the expiration of the 5-year period described
in paragraph (1), the Secretary shall establish an installa­
tion program that meets the requirements of paragraph
(3) for the enforcement of installation standards in each
State described in subparagraph (B) of this paragraph.
"(B) IMPLEMENTATION OF INSTALLATION PROGRAM.—
Beginning on the expiration of the 5-year period described
in paragraph (1), the Secretary shall implement the
installation program established under subparagraph (A)
in each State that does not have an installation program
established by State law that meets the requirements of
paragraph (3).
"(C) CONTRACTING OUT OF IMPLEMENTATION.—In car­
rying out subparagraph (B), the Secretary may contract
with an appropriate agent to implement the installation
program established under that subparagraph, except that
* such agent shall not be a person or entity other than
a government, nor an affiliate or subsidiary of such a
person or entity, that has entered into a contract with
the Secretary to implement any other regulatory program
under this title.
"(3) REQUIREMENTS.—^An installation program meets the
requirements of this paragraph if it is a program regulating
the installation of manufactured homes that includes—
"(A) installation standards that, in the determination
of the Secretary, provide protection to the residents of
manufactured homes that equals or exceeds the protection
provided to those residents by—
"(i) the model manufactured home installation
standards established by the Secretary under sub­
section (b)(2); or
"(ii) the designs and instructions provided by
manufacturers under subsection (a), if the Secretary
determines that such designs and instructions provide
protection to the residents of manufactured homes that
equals or exceeds the protection provided by the model
manufactured home installation standards established
by the Secretary under subsection (b)(2);
"(B) the training and licensing of manufactured home
installers; and
"(C) inspection of the installation of manufactured
homes.",
(b) CONFORMING AMENDMENTS.—Section 623(c) (42 U.S.C.
5422(c)) is amended—
(1) in paragraph (10), by striking "and" at the end;
(2) by redesignating paragraph (11) as paragraph (13);
and
(3) by inserting after paragraph (10) the following:
"(11) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
the enactment of the Manufactured Housing Improvement Act
of 2000, provides for an installation program established by
State law that meets the requirements of section 605(c)(3);". PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3009
SEC. 606. PUBUC INFORMATION.
Section 607 (42 U.S.C. 5406) is amended—
(1) in subsection (a)—
(A) by inserting "to the Secretary" after "submit"; and
(B) by adding at the end the following: "The Secretary
shall submit such cost and other information to the con­
sensus committee for evaluation.";
(2) in subsection (d), by inserting ", the consensus com­
mittee," after "public"; and
(3) by striking subsection (c) and redesignating subsections
(d) and (e) as subsections (c) and (d), respectively.
SEC. 607. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.
(a) IN GENERAL.—Section 608(a) (42 U.S.C. 5407(a)) is
amended—
(1) in paragraph (2), by striking "and" at the end;
(2) in paragraph (3), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
"(4) encouraging the government-sponsored housing entities
to actively develop and implement secondary market
securitization programs for the FHA manufactured home loans
and those of other loan programs, as appropriate, thereby pro­
moting the availability of affordable manufactured homes to
increase homeownership for all people in the United States;
and
"(5) reviewing the programs for FHA manufactured home
loans and developing any changes to such programs to promote
the affordability of manufactured homes, including changes
in loan terms, amortization periods, regulations, and proce­
dures.".
(b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is amended
by adding at the end the following:
"(c) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
"(1) GOVERNMENT-SPONSORED HOUSING ENTITIES.—^The
term 'government-sponsored housing entities' means the
Government National Mortgage Association of the Department
of Housing and Urban Development, the Federal National Mort­
gage Association, and the Federal Home Loan Mortgage Cor­
poration.
"(2) FHA MANUFACTURED HOME LOAN.—^The term 'FHA
manufactured home loan' means a loan that—
"(A) is insured under title I of the National Housing
Act and is made for the purpose of financing alterations,
repairs, or improvements on or in connection with an
existing manufactured home, the purchase of a manufac­
tured home, the purchase of a manufactured home and
a lot on which to place the home, or the purchase only
of a lot on which to place a manufactured home; or
"(B) is otherwise insured under the National Housing
Act and made for or in connection with a manufactured
home.".
SEC. 608. PROHIBITED ACTS.
Section 610(a) (42 U.S.C. 5409(a)) is amended—
(1) in paragraph (5), by striking "or" at the end; 114 STAT. 3010 PUBLIC LAW 106-569—DEC. 27, 2000
(2) in paragraph (6), by striking the period at the end
and inserting "; or"; and
(3) by adding at the end the following new paragraph:
"(7) after the expiration of the period specified in section
605(c)(2)(B), fail to comply with the requirements for the
installation program required by section 605 in any State that
has not adopted and implemented a State installation pro­
gram.".
SEC. 609. FEES.
Section 620 (42 U.S.C. 5419) is amended to read as follows:
"SEC. 620. AUTHORITY TO COLLECT FEE.
"(a) IN GENERAL.—In canying out inspections under this title,
in developing standards and regulations pursuant to section 604,
and in facilitating the acceptance of the affordability and availability
of manufactured housing within the Department, the Secretary
may—
"(1) establish and collect from manufactured home manu­
facturers a reasonable fee, as may be necessary to offset the
expenses incurred by the Secretary in connection with canying
out the responsibilities of the Secretary under this title,
including—
"(A) conducting inspections and monitoring;
"(B) providing funding to States for the administration
and implementation of approved State plans under section
623, including reasonable funding for cooperative edu­
cational and training programs designed to facilitate uni­
form enforcement under this title, which funds may be
paid directly to the States or may be paid or provided
to any person or entity designated to receive and disburse
such funds by cooperative agreements among participating
States, provided that such person or entity is not otherwise
an agent of the Secretary under this title;
"(C) providing the funding for a noncareer adminis­
trator within the Department to administer the manufac­
tured housing program;
"(D) providing the funding for salaries and expenses
of employees of the Department to carry out the manufac­
tured housing program;
"(E) administering the consensus committee as set
forth in section 604;
"(F) facilitating the acceptance of the quality, dura­
bility, safety, and affordability of manufactured housing
within the Department; and
"(G) the administration and enforcement of the
installation standards authorized by section 605 in States
in which the Secretary is required to implement an installa­
tion program after the expiration of the 5-year period set
forth in section 605(c)(2)(B), and the administration and
enforcement of a dispute resolution program described in
section 623(c)(12) in States in which the Secretary is
required to implement such a program after the expiration
of the 5-year period set forth in section 623(g)(2); and
"(2) subject to subsection (e), use amounts from any fee
collected under paragraph (1) of this subsection to pay expenses PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3011
referred to in that paragraph, which shall be exempt and sepa­
rate from any limitations on the Department regarding full-
time equivalent positions and travel.
"(b) CONTRACTORS.—In using amounts from any fee collected
under this section, the Secretary shall ensure that separate and
independent contractors are retained to carry out monitoring and
inspection work and any other work that may be delegated to
a contractor under this title.
"(c) PROHIBITED USE.—No amount from any fee collected under
this section may be used for any purpose or activity not specifically
authorized by this title, unless such activity was already engaged
in by the Secretary prior to the date of the enactment of the
Manufactured Housing Improvement Act of 2000.
"(d) MODIFICATION.—Beginning on the date of the enactment Effective date,
of the Manufactured Housing Improvement Act of 2000, the amount
of any fee collected under this section may only be modified—
"(1) as specifically authorized in advance in an annual
appropriations Act; and
"(2) pursuant to rulemaking in accordance with section
553 of title 5, United States Code.
"(e) APPROPRIATION AND DEPOSIT OF FEES.—
"(1) IN GENERAL.—^There is established in the Treasury
of the United States a fund to be known as the 'Manufactured
Housing Fees Trust Fund' for deposit of amounts from any
fee collected under this section. Such amounts shall be held
in trust for use only as provided in this title.
"(2) APPROPRIATION.—^Amounts from any fee collected under
this section shall be available for expenditure only to the extent
approved in advance in an annual appropriations Act. Any
change in the expenditure of such amounts shall be specifically
authorized in advance in an annual appropriations Act.
"(3) PAYMENTS TO STATES.—On and after the effective date
of the Manufactured Housing Improvement Act of 2000, the
Secretary shall continue to fiind the States having approved
State plans in the amounts which are not less than the allocated
amounts, based on the fee distribution system in effect on
the day before such effective date.",
SEC. 610. DISPUTE RESOLUTION.
Section 623(c) (42 U.S.C. 5422(c)) is amended—
(1) by inserting after paragraph (11) (as added by the
preceding provisions of this title) the following:
"(12) with respect to any State plan submitted on or after
the expiration of the 5-year period beginning on the date of
the enactment of the Manufactured Housing Improvement Act
of 2000, provides for a dispute resolution program for the
timely resolution of disputes between manufacturers, retEiilers,
and installers of manufactured homes regarding responsibility,
and for the issuance of appropriate orders, for the correction
or repair of defects in manufactured homes that are reported
during the 1-year period beginning on the date of installation;
and"; and
(2) by adding at the end the following:
"(g) ENFORCEMENT OF DISPUTE RESOLUTION STANDARDS.—
"(1) ESTABLISHMENT OF DISPUTE RESOLUTION PROGRAM.—
Not later than the expiration of the 5-year period beginning Deadline,
on the date of the enactment of the Manufactured Housing 114 STAT. 3012 PUBLIC LAW 106-569—DEC. 27, 2000
Effective date.
42 use 5401
note.
42 use 5401
note.
Applicability. Improvement Act of 2000, the Secretary shall establish a dis­
pute resolution program that meets the requirements of sub­
section (c)(12) for dispute resolution in each State described
in paragraph (2) of this subsection. The order establishing
the dispute resolution program shall be issued after notice
and opportunity for public comment in accordance with section
553 of title 5, United States Code.
"(2) IMPLEMENTATION OF DISPUTE RESOLUTION PROGRAM.—
Beginning on the expiration of the 5-year period described
in paragraph (1), the Secretary shall implement the dispute
resolution program established under paragraph (1) in each
State that has not established a dispute resolution program
that meets the requirements of subsection (c)(12).
"(3) CONTRACTING OUT OF IMPLEMENTATION.—In carrying
out paragraph (2), the Secretary may contract with an appro­
priate agent to implement the dispute resolution program estab­
lished under paragraph (2), except that such agent shall not
be a person or entity other than a government, nor an affiliate
or subsidiary of such a person or entity, that has entered
into a contract with the Secretary to implement any other
regulatory program under this title.".
SEC. 611. ELIMINATION OF ANNUAL REPORTING REQUIREMENT.
The National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5401 et seq.) is amended—
(1) by striking section 626 (42 U.S.C. 5425); and
(2) by redesignating sections 627 and 628 (42 U.S.C. 5426,
5401 note) as sections 626 and 627, respectively.
SEC. 612. EFFECTIVE DATE.
The amendments made by this title shall take effect on the
date of the enactment of this Act, except that the amendments
shall have no effect on any order or interpretative bulletin that
is issued under the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.) and
published as a proposed rule pursuant to section 553 of title 5,
United States Code, on or before that date of the enactment.
SEC. 613. SAVINGS PROVISIONS.
(a) STANDARDS AND REGULATIONS.—^The Federal manufactured
home construction and safety standards (as such term is defined
in section 603 of the National Manufactured Housing Construction
and Safety Standards Act of 1974) and all regulations pertaining
thereto in effect on the day before the date of the enactment
of this Act shall apply until the effective date of a standard or
regulation modifying or superseding the existing standard or regula­
tion that is promulgated under subsection (a) or (b) of section
604 of the National Manufactured Housing Construction and Safety
Standards Act of 1974, as amended by this title.
(b) CONTRACTS.—^Any contract awarded pursuant to a Request
for Proposal issued before the date of the enactment of this Act
shall remain in effect until the earlier of—
(1) the expiration of the 2-year period beginning on the
date of the enactment of this Act; or
(2) the expiration of the contract term. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3013
TITLE VII—RURAL HOUSING
HOMEOWNERSHIP
SEC. 701. GUARANTEES FOR REFINANCING OF RURAL HOUSING LOANS.
Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h))
is amended by adding at the end the following new paragraph:
"(13) GUARANTEES FOR REFINANCING LOANS.—
"(A) IN GENERAL.—^Upon the request of the borrower,
the Secretary shall, to the extent provided in appropriation
Acts and subject to subparagraph (F), guarantee a loan
that is made to refinance an existing loan that is made
under this section or guaranteed under this subsection,
and that the Secretary determines complies with the
requirements of this paragraph.
"(B) INTEREST RATE.—^To be eligible for a guarantee
under this paragraph, the refinancing loan shall have a
rate of interest that is fixed over the term of the loan
and does not exceed the interest rate of the loan being
refinanced.
"(C) SECURITY.—^To be eligible for a guarantee under
this paragraph, the refinancing loan shall be secured by
the same single-family residence as was the loan being
refinanced, which shall be owned by the borrower and
occupied by the borrower as the principal residence of
the borrower.
"(D) AMOUNT.—^To be eligible for a guarantee under
this paragraph, the principal obligation under the refi­
nancing loan shall not exceed an amount equal to the
sum of the balance of the loan being refinanced and such
closing costs as may be authorized by the Secretary, which
shall include a discount not exceeding 200 basis points
and an origination fee not exceeding such amount as the
Secretary shall prescribe.
"(E) OTHER REQUIREMENTS.—The provisions of the last AppUcabmty.
sentence of paragraph (1) and paragraphs (2), (5), (6)(A),
(7), and (9) shall apply to loans guaranteed under this
paragraph, and no other provisions of paragraphs (1)
through (12) shall apply to such loans.
"(F) AUTHORITY TO ESTABLISH LIMITATION.—^The Sec­
retary may establish limitations on the number of loans
guaranteed under this paragraph, which shall be based
on market conditions and other factors as the Secretary
considers appropriate.".
SEC. 702. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR
LOAN PROGRAM.
The fourth sentence of section 504(a) of the Housing Act of
1949 (42 U.S.C. 1474(a)) is amended by striking "$2,500" and
inserting "$7,500".
SEC. 703. LIMITED PARTNERSHIP ELIGIBIUTY FOR FARM LABOR
HOUSING LOANS.
The first sentence of section 514(a) of the Housing Act of
1949 (42 U.S.C. 1484(a)) is amended by striking "nonprofit limited
partnership" and inserting "limited partnership". 114 STAT. 3014 PUBLIC LAW 106-569—DEC. 27, 2000
SEC. 704. PROJECT ACCOUNTING RECORDS AND PRACTICES.
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is
amended by striking subsection (z) and inserting the following
new subsections:
"(z) ACCOUNTING AND RECORDKEEPING REQUIREMENTS.—
"(1) ACCOUNTING STANDARDS.—^The Secretary shall require
that borrowers in programs authorized by this section maintain
accounting records in accordance with generally accepted
accounting principles for all projects that receive funds from
loans made or guaranteed by the Secretary under this section.
"(2) RECORD RETENTION REQUIREMENTS.—^The Secretary
shall require that borrowers in programs authorized by this
section retain for a period of not less than 6 years and make
available to the Secretary in a manner determined by the
Secretary, all records required to be maintained under this
subsection and other records identified by the Secretary in
applicable regulations.
"(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE OF HOUSING
PROJECTS ASSETS AND INCOME.—
"(1) ACTION TO RECOVER ASSETS OR INCOME.—
"(A) IN GENERAL.—^The Secretary may request the
Attorney General to bring an action in a United States
district court to recover any assets or income used by
any person in violation of the provisions of a loan made
or guaranteed by the Secretary under this section or in
violation of any applicable statute or regulation.
"(B) IMPROPER DOCUMENTATION.—For purposes of this
subsection, a use of assets or income in violation of the
applicable loan, loan guarantee, statute, or regulation shall
include any use for which the documentation in the books
and accounts does not establish that the use was made
for a reasonable operating expense or necessary repair
of the project or for which the documentation has not
been maintained in accordance with the requirements of
the Secretary and in reasonable condition for proper audit.
"(C) DEFINITION.—^For the purposes of this subsection,
the term 'person' means—
"(i) any individual or entity that borrows funds
in accordance with programs authorized by this section;
"(ii) any individual or entity holding 25 percent
or more interest of any entity that borrows funds in
accordance with programs authorized by this section;
and
"(iii) any officer, director, or partner of an entity
that borrows funds in accordance with programs
authorized by this section.
"(2) AMOUNT RECOVERABLE.—
"(A) IN GENERAL.—In any judgment favorable to the
United States entered under this subsection, the Attorney
General may recover double the value of the assets and
income of the project that the court determines to have
been used in violation of the provisions of a loan made
or guaranteed by the Secretary under this section or any
applicable statute or regulation, plus all costs related to
the action, including reasonable attorney and auditing fees.
"(B) APPLICATION OF RECOVERED FUNDS.—^Notwith­
standing any other provision of law, the Secretary may PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3015
use amounts recovered under this subsection for activities
authorized under this section and such funds shall remain
available for such use until expended.
"(3) TIME LIMITATION.—^Notwithstanding any other provi­
sion of law, an action under this subsection may be commenced
at any time during the 6-year period beginning on the date
that the Secretary discovered or should have discovered the
violation of the provisions of this section or any related statutes
or regulations.
"(4) CONTINUED AVAILABILITY OF OTHER REMEDiES.^The
remedy provided in this subsection is in addition to and not
in substitution of any other remedies available to the Secretary
; or the United States.".
SEC. 705. DEFINITION OF RURAL AREA.
The second sentence of section 520 of the Housing Act of 1949
(42 U.S.C. 1490) is amended—
(1) by striking "1990 decennial census" and inserting "1990
or 2000 decennial census"; and
(2) by striking "year 2000" and inserting "year 2010".
SEC. 706. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS
PROJECTS.
The last sentence of section 521(a)(5)(A) of the Housing Act
of 1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by striking "project"
and inserting "tenant or unit".
SEC. 707. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PRO-
GRAM.
Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-
2) is amended—
(1) in subsection (c), by inserting "an Indian tribe," after
"thereof,";
(2) in subsection (f), by striking paragraph (1) and inserting
the following new paragraph:
"(1) be made for a period of not less than 25 nor greater
than 40 years from the date the loan was made and may
provide for amortization of the loan over a period of not to
exceed 40 years with a final payment of the balance due at
the end of the loan term;";
(3) in subsection (i)(2), by striking "(A) conveyance to the
Secretary" and all that follows through "(C) assignment" and
inserting "(A) submission to the Secretary of a claim for pay­
ment under the guarantee, and (B) assignment";
(4) in subsection (s), by adding at the end the following
new subsection:
"(4) INDIAN TRIBE.—The term 'Indian tribe' means—
"(A) 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
by or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), 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 (25 U.S.C. 450 et seq.);
or 114 STAT. 3016 PUBLIC LAW 106-569—DEC. 27, 2000
42 use 14905. "(B) any entity established by the governing body of
an Indian tribe described in subparagraph (A) for the pur­
pose of financing economic development.";
(5) in subsection (t), by inserting before the period at the
end the following: "to provide guarantees under this section
for eligible loans having an aggregate principal amount of
$500,000,000";
(6) by striking subsection (1);
(7) by redesignating subsections (m) through (u) as sub­
sections (1) through (t), respectively; and
(8) by adding at the end the following new subsections:
"(u) FEE AUTHORITY.—^Any amounts collected by the Secretary
pursuant to the fees charged to lenders for loan guarantees issued
under this section shall be used to offset costs (as defined by
section 502 of the Congressional Budget Act of 1974 (2 U.S.C.
661a)) of loan guarantees made under this section.
"(v) DEFAULTS OF LOANS SECURED BY RESERVATION LANDS.—
In the event of a default involving a loan to an Indian tribe or
tribal corporation made under this section which is secured by
an interest in land within such tribe's reservation (as determined
by the Secretary of the Interior), including a community in Alaska
incorporated by the Secretary of the Interior pursuant to the Indian
Reorganization Act (25 U.S.C. 461 et seq.), the lender shall only
pursue liquidation after offering to transfer the account to an
eligible tribal member, the tribe, or the Indian housing authority
serving the tribe. If the lender subsequently proceeds to liquidate
the account, the lender shall not sell, transfer, or otherwise dispose
of or alienate the property except to one of the entities described
in the preceding sentence.".
SEC. 708. ENFORCEMENT PROVISIONS.
(a) IN GENERAL.—Title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.) is amended by adding after section 542 the following:
"SEC. 543. ENFORCEMENT PROVISIONS.
"(a) EQUITY SKIMMING.—
"(1) CRIMINAL PENALTY.—^Whoever, as an owner, agent,
employee, or manager, or is otherwise in custody, control, or
possession of property that is security for a loan made or
guaranteed under this title, willfully uses, or authorizes the
use, of any part of the rents, assets, proceeds, income, or
oth^r funds derived from such propertyi for any purpose other
than to meet actual, reasonable, and necessary expenses of
the property, or for any other purpose not authorized by this
title or the regulations adopted pursuant to this title, shall
be fined under title 18, United States Code, or imprisoned
not more than 5 years, or both.
"(2) CIVIL SANCTIONS.—^An entity or individual who as an
owner, operator, employee, or manager, or who acts as an
agent for a property that is security for a loan made or guaran­
teed under this title where any part of the rents, assets, pro­
ceeds, income, or other funds derived from such property are
used for any purpose other than to meet actual, reasonable,
and necessary expenses of the property, or for any other purpose
not authorized by this title or the regulations adopted pursuant
to this title, shall be subject to a fine of not more than $25,000
per violation. The sanctions provided in this paragraph may PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3017
be imposed in addition to any other civil sanctions or civil
monetary penalties authorized by law.
"(b) CIVIL MONETARY PENALTIES.—
"(1) IN GENERAL.—^The Secretary may, after notice and
opportunity for a hearing, impose a civil monetary penalty
in accordance with this subsection against any individual or
entity, including its owners, officers, directors, general partners,
limited partners, or employees, who knowingly and materially
violate, or participate in the violation of, the provisions of
this title, the regulations issued by the Secretary pursuant
to this title, or agreements made in accordance with this title,
by-
"(A) submitting information to the Secretary that is
false;
"(B) providing the Secretary with false certifications;
"(C) failing to submit information requested by the
Secretary in a timely manner;
"(D) failing to maintain the property subject to loans
made or guaranteed under this title in good repair and
condition, as determined by the Secretary;
"(E) failing to provide management for a project which
received a loan made or guaranteed under this title that
is acceptable to the Secretary; or
"(F) failing to comply with the provisions of applicable
civil rights statutes and regulations.
"(2) CONDITIONS FOR RENEWAL OR EXTENSION.—^The Sec­
retary may require that expiring loan or assistance agreements
entered into under this title shall not be renewed or extended
unless the owner executes an agreement to comply with addi­
tional conditions prescribed by the Secretary, or executes a
new loan or assistance agreement in the form prescribed by
the Secretary.
"(3) AMOUNT.—
"(A) IN GENERAL.—^The amount of a civil monetary
penalty imposed under this subsection shall not exceed
the greater of—
"(i) twice the damages the Department of Agri­
culture, the guaranteed lender, or the project that is
secured for a loan under this section suffered or would
have suffered as a result of the violation; or
"(ii) $50,000 per violation.
"(B) DETERMINATION.—In determining the amount of
a civil monetary penalty under this subsection, the Sec­
retary shall take into consideration—
"(i) the gravity of the offense;
"(ii) any history of prior offenses by the violator
(including offenses occurring prior to the enactment
of this section);
"(iii) the ability of the violator to pay the penalty;
"(iv) any injury to tenants;
"(v) any injury to the public;
"(vi) any benefits received by the violator as a
result of the violation;
"(vii) deterrence of future violations; and
"(viii) such other factors as the Secretary may
establish by regulation. 114 STAT. 3018 PUBLIC LAW 106-569—DEC. 27, 2000
"(4) PAYMENT OF PENALTIES.—No payment of a penalty
assessed under this section may be made from funds provided
under this title or from funds of a project which serve as
security for a loan made or guaranteed under this title.
"(5) REMEDIES FOR NONCOMPLIANCE.—
"(A) JUDICIAL INTERVENTION.—If a person or entity
fails to comply with a final determination by the Secretary
imposing a civil monetary penalty under this subsection,
the Secretary may request the Attorney General of the
United States to bring an action in an appropriate United
States district court to obtain a monetary judgment against
such individual or entity and such other relief as may
be available. The monetary judgment may, in the court's
discretion, include the attorney's fees and other expenses
incurred by the United States in connection with the action.
"(B) REVIEWABILITY OF DETERMINATION.—In an action
under this paragraph, the validity and appropriateness
of a determination by the Secretary imposing the penalty
shall not be subject to review.",
(b) CONFORMING AMENDMENT.—Section 514 of the Housing Act
of 1949 (42 U.S.C. 1484) is amended by striking subsection (j).
SEC. 709. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.
(a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of title 18,
United States Code, is amended by inserting "any violation of
section 543(a)(1) of the Housing Act of 1949 (relating to equity
skimming)," after "coupons having a value of not less than $5,000,".
(b) OBSTRUCTION OF FEDERAL AUDITS.—Section 1516(a) of title
18, United States Code, is amended by inserting "or relating to
any property that is security for a loan that is made or guaranteed
under title V of the Housing Act of 1949," before "shall be fined
under this title".
Affordable
Housing for
Seniors and
Families Act.
12 use 1701
note.
12 use 1701
note.
Federal Register,
publication. TITLE VIII—HOUSING FOR ELDERLY
AND DISABLED FAMILIES
SEC. 801. SHORT TITLE.
This title may be cited as the "Affordable Housing for Seniors
and Families Act".
SEC. 802. REGULATIONS.
The Secretary of Housing and Urbein Development (referred
to in this title as the "Secretary") shall issue any regulations to
carry out this title and the amendments made by this title that
the Secretary determines may or will affect tenants of federally
assisted housing only after notice and opportunity for public com­
ment in accordance with the procedure under section 553 of title
5, United States Code, applicable to substantive rules (notwith­
standing subsections (a)(2), (b)(B), and (d)(3) of such section). Notice
of such proposed rulemaking shall be provided by publication in
the Federal Register. In issuing such regulations, the Secretary
shall take such actions as may be necessary to ensure that such
tenants are notified of, and provided an opportunity to participate
in, the rulemaking, as required by such section 553. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3019
SEC. 803. EFFECTIVE DATE. 12 USC 1701q
(a) IN GENERAL.—^The provisions of this title and the amend­
ments made by this title are effective as of the date of the enactment
of this Act, unless such provisions or amendments specifically pro­
vide for effectiveness or applicability upon another date certain.
(b) EFFECT OF REGULATORY AUTHORITY.—^Any authority in this
title or the amendments made by this title to issue regulations,
and any specific requirement to issue regulations by a date certain,
may not be construed to affect the effectiveness or applicability
of the provisions of this title or the amendments made by this
title under such provisions and amendments and subsection (a)
of this section.
Subtitle A—Refinancing for Section 202
Supportive Housing for the Elderly
SEC. 811. PREPAYMENT AND REFINANCING. 12 USC 1701q
(a) APPROVAL OF PREPAYMENT OF DEBT.—Upon request of the
project sponsor of a project assisted with a loan under section
202 of the Housing Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable Housing Act), the
Secretary shall approve the prepayment of any indebtedness to
the Secretary relating to any remaining principal and interest under
the loan as part of a prepajnnent plan under which—
(1) the project sponsor agrees to operate the project until
the maturity date of the original loan under terms at least
as advantageous to existing and future tenants as the terms
required by the original loan agreement or any rental assistance
pa3anents contract under section 8 of the United States Housing
Act of 1937 (or any other rental housing assistance programs
of the Department of Housing and Urban Development,
including the rent supplement program under section 101 of
the Housing and Urban Development Act of 1965 (12 U.S.C.
1701s)) relating to the project; and
(2) the prepayment may involve refinancing of the loan
if such refinancing results in a lower interest rate on the
principal of the loan for the project and in reductions in debt
service related to such loan.
(b) SOURCES OF REFINANCING.—In the case of prepayment
under this section involving refinancing, the project sponsor may
refinance the project through any third party source, including
financing by State and local housing finance agencies, use of tax-
exempt bonds, multi-family mortgage insurance under the National
Housing Act, reinsurance, or other credit enhancements, including
risk sharing as provided under section 542 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1707 note). For
purposes of underwriting a loan insured under the National Housing
Act, the Secretary may assume that any section 8 rental assistance
contract relating to a project will be renewed for the term of
such loan.
(c) USE OF UNEXPENDED AMOUNTS.—Upon execution of the
refinancing for a project pursuant to this section, the Secretary
shall make available at least 50 percent of the annual savings
resulting from reduced section 8 or other rental housing assistance 114 STAT. 3020 PUBLIC LAW 106-569—DEC. 27, 2000
contracts in a manner that is advantageous to the tenants,
including—
(1) not more than 15 percent of the cost of increasing
the availabihty or provision of supportive services, which may
include the financing of service coordinators and congregate
services;
(2) rehabilitation, modernization, or retrofitting of struc­
tures, common areas, or individual dwelling units;
(3) construction of an addition or other facility in the
project, including assisted living facilities (or, upon the approval
of the Secretary, facilities located in the community where
the project sponsor refinances a project under this section,
or pools shared resources from more than one such project);
or
(4) rent reduction of unassisted tenants residing in the
project according to a pro rata allocation of shared savings
resulting from the refinancing.
(d) USE OF CERTAIN PROJECT FUNDS.—The Secretary shall allow
a project sponsor that is prepajdng and refinancing a project under
this section—
(1) to use any residual receipts held for that project in
excess of $500 per individual dwelling unit for not more than
15 percent of the cost of activities designed to increase the
availability or provision of supportive services; and
(2) to use any reserves for replacement in excess of $1,000
per individual dwelling unit for activities described in para­
graphs (2) and (3) of subsection (c).
(e) BUDGET ACT COMPLIANCE.—^This section shall be effective
only to extent or in such amounts that are provided in advance
in appropriation Acts.
Subtitle B—^Authorization of Appropria­
tions for Supportive Housing for the El­
derly and Persons With Disabilities
SEC. 821. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.
Section 202 of the Housing Act of 1959 (12 U.S.C. 170Iq)
is amended by adding at the end the following:
"(m) AUTHORIZATION OF APPROPRIATIONS.—^There are author­
ized to be appropriated for providing assistance under this section
such sums as may be necessary for each of fiscal years 2001,
2002, and 2003.".
SEC. 822. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.
Section 811 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013) is amended by striking subsection
(m) and inserting the following:
"(m) AUTHORIZATION OF APPROPRIATIONS.—^There are author­
ized to be appropriated for providing assistance under this section
such sums as may be necessary for each of fiscal years 2001,
2002, and 2003.". PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3021
SEC. 823. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR
ELDERLY AND DISABLED HOUSING.
There are authorized to be appropriated to the Secretary such
sums as may be necessary for each of fiscal years 2001, 2002,
and 2003, for the following purposes:
(1) GRANTS FOR SERVICE COORDINATORS FOR CERTAIN FED­
ERALLY ASSISTED MULTIFAMILY HOUSING.—For grants under sec­
tion 676 of the Housing and Community Development Act
of 1992 (42 U.S.C. 13632) for providing service coordinators.
(2) CONGREGATE SERVICES FOR FEDERALLY ASSISTED
HOUSING.—^For contracts under section 802 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8011)
to provide congregate services programs for eligible residents _
of eligible housing projects under subparagraphs (B) through
(D) of subsection (k)(6) of such section.
Subtitle C—^Expanding Housing Opportuni­
ties for the Elderly and Persons With
Disabilities
PART 1—HOUSING FOR THE ELDERLY
SEC. 831. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.
Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended by inserting after subparagraph (C) the
following:
"Such term includes a for-profit limited partnership the sole
general partner of which is an organization meeting the require­
ments under subparagraphs (A), (B), and (C), or a corporation
wholly owned and controlled by an organization meeting the
requirements under subparagraphs (A), (B), and (C).".
SEC. 832. MIXED FUNDING SOURCES.
Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(6)) is amended—
(1) by striking "non-Federal sources" and inserting "sources
other than this section"; and
(2) by adding at the end the following new sentence: "Not­
withstanding any other provision of law, assistance amounts
provided under this section may be treated as amounts not
derived from a Federal grant.".
SEC. 833. AUTHORITY TO ACQUIRE STRUCTURES.
Section 202 of the Housing Act of 1959 (12 U.S.C. 170Iq)
is amended—
(1) in subsection (b), by striking "from the Resolution Trust
Corporation"; and
(2) in subsection (h)(2)—
(A) in the paragraph heading, by striking "RTC PROP­
ERTIES" and inserting "ACQUISITION"; and
(B) by striking "from the Resolution" and all that fol­
lows through "Insurance Act".
SEC. 834. USE OF PROJECT RESERVES.
Section 202(j) of the Housing Act of 1959 (12 U.S.C. 1701q(j))
is amended by adding at the end the following: 114 STAT. 3022 PUBLIC LAW 106-569—DEC. 27, 2000
"(8) USE OF PROJECT RESERVES.—Amounts for project
reserves for a project assisted under this section may be used
for costs, subject to reasonable limitations as the Secretary
determines appropriate, for reducing the number of dwelling
units in the project. Such use shall be subject to the approval
of the Secretary to ensure that the use is designed to retrofit
units that are currently obsolete or unmarketable.".
SEC. 835. COMMERCIAL ACTIVITIES.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(l)) is amended by adding at the end the following: "Neither
this section nor any other provision of law may be construed as
prohibiting or preventing the location and operation, in a project
assisted under this section, of commercial facilities for the benefit
of residents of the project and the community in which the project
is located, except that assistance made available under this section
may not be used to subsidize any such commercial facility.".
PART 2—HOUSING FOR PERSONS WITH
DISABILITIES
SEC. 841. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSfflPS.
Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C.
8013(k)(6)) is amended by inserting after subparagraph (D) the
following:
"Such term includes a for-profit limited partnership the sole
general partner of which is an organization meeting the require­
ments under subparagraphs (A), (B), (C), and (D) or a corpora­
tion wholly owned and controlled by an organization meeting
the requirements under subparagraphs (A), (B), (C), and (D).".
SEC. 842. MIXED FUNDING SOURCES.
Section 811(h)(5) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013(h)(5)) is amended—
(1) by striking "non-Federal sources" and inserting "sources
other than this section"; and
(2) by adding at the end the following new sentence: "Not­
withstanding any other provision of law, assistance amounts
provided under this section may be treated as amounts not
derived from a Federal grant.".
SEC. 843. TENANT-BASED ASSISTANCE.
Section 811 of the Cranston-Gronzalez National Affordable
Housing Act (42 U.S.C. 8013) is amended—
(1) in subsection (d), by striking paragraph (4) and inserting
the following:
"(4) TENANT-BASED RENTAL ASSISTANCE.—
"(A) ADMINISTERING ENTITIES.—^Tenant-based rental
assistance provided under subsection (b)(1) may be provided
only through a public housing agency that has submitted
and had approved a plan under section 7(d) of the United
States Housing Act of 1937 (42 U.S.C. 1437e(d)) that pro­
vides for such assistance, or through a private nonprofit
organization. A public housing agency shall be eligible to
apply under this section only for the purposes of providing
such tenant-based rental assistance. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3023
"(B) PROGRAM RULES.—^Tenant-based rental assistance
under subsection (b)(1) shall be made available to eligible
persons with disabilities and administered under the same
rules that govern tenant-based rental assistance made
available under section 8 of the United States Housing
Act of 1937, except that the Secretary may waive or modify
such rules, but only to the extent necessary to provide
for administering such assistance under subsection (b)(1)
through private nonprofit orgEinizations rather than
through public housing agencies.
"(C) ALLOCATION OF ASSISTANCE.—In determining the
amount of assistance provided under subsection (b)(1) for
a private nonprofit organization or public housing agency,
the Secretary shall consider the needs and capabilities
of the organization or agency, in the case of a public
' housing agency, as described in the plan for the agency
under section 7 of the United States Housing Act of 1937.";
and
(2) in subsection (1)(1)—
(A) by striking "subsection (b)" and inserting "sub­
section (b)(2)"; and
(B) by striking the last comma and all that follows
through "subsection (n)".
SEC. 844. USE OF PRO JECT RESERVES.
Section 811(j) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013(j)) is amended by adding at the
end the following:
"(7) USE OF PROJECT RESERVES.—^Amounts for project
reserves for a project assisted under this section may be used
for costs, subject to reasonable limitations as the Secretary
determines appropriate, for reducing the number of dwelling
units in the project. Such use shall be subject to the approval
of the Secretary to ensure that the use is designed to retrofit
units that are currently obsolete or unmarketable.".
SEC. 845. COMMERCIAL ACTIVITIES.
Section 811(h)(1) of the Cranston-Gronzalez National Affordable
Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the
end the following: "Neither this section nor any other provision
of law may be construed as prohibiting or preventing the location
and operation, in a project assisted under this section, of commercial
facilities for the benefit of residents of the project and the commu­
nity in which the project is located, except that assistance made
available under this section may not be used to subsidize any
such commercial facility.".
PART 3—OTHER PROVISIONS
SEC. 851. SERVICE COORDINATORS.
(a) INCREASED FLEXIBILITY FOR USE OF SERVICE COORDINATORS
IN CERTAIN FEDERALLY ASSISTED HOUSING.—Section 676 of the
Housing and Community Development Act of 1992 (42 U.S.C. 13632)
is amended—
(1) in the section heading, by striking "MULTIFAMILY
HOUSING ASSISTED UNDER NATIONAL HOUSING ACT" and
inserting "CERTAIN FEDERALLY ASSISTED HOUSING";
(2) in subsection (a)— 114 STAT. 3024 PUBLIC LAW 106-569—DEC. 27, 2000
(A) in the first sentence, by striking "(E) and (F)"
and inserting "(B), (C), (D), (E), (F), and (G)"; and
(B) in the last sentence—
(i) by striking "section 661" and inserting "section
671"; and
(ii) by adding at the end the following: "A service
coordinator fiinded with a grant under this section
for a project may provide services to low-income elderly
or disabled families living in the vicinity of such
project.";
(3) in subsection (d)—
(A) by striking "(E) or (F)" and inserting "(B), (C),
(D),(E),(F),or(G)";and
(B) by striking "section 661" and inserting "section
671"; and
(4) by striking subsection (c) and redesignating subsection
(d) (as amended by paragraph (3) of this subsection) as sub­
section (c).
(b) REQUIREMENT TO PROVIDE SERVICE COORDINATORS.—Sec­
tion 671 of the Housing and Community Development Act of 1992
(42 U.S.C. 13631) is amended—
(1) in the first sentence of subsection (a), by striking "to
carry out this subtitle pursuant to the amendments made by
this subtitle" and inserting the following: "for providing service
coordinators under this section";
(2) in subsection (d), by inserting ")" after "section 683(2)";
and
(3) by adding at the end following:
"(e) SERVICES FOR LOW-INCOME ELDERLY OR DISABLED FAMILIES
RESIDING IN VICINITY OF CERTAIN PROJECTS.—^To the extent only
that this section applies to service coordinators for covered federally
assisted housing described in subparagraphs (B), (C), (D), (E), (F),
and (G) of section 683(2), any reference in this section to elderly
or disabled residents of a project shall be construed to include
low-income elderly or disabled families living in the vicinity of
such project.".
(c) PROTECTION AGAINST TELEMARKETING FRAUD.—
(1) SUPPORTIVE HOUSING FOR THE ELDERLY.—The first sen­
tence of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(g)(l)) is amended by striking "and (F)" and inserting
the following: "(F) providing education and outreach regarding
telemarketing fraud, in accordance with the standards issued
under section 671(f) of the Housing and Community Develop­
ment Act of 1992 (42 U.S.C. 13631(f)); and (G)".
(2) OTHER FEDERALLY ASSISTED HOUSING.—Section 671 of
the Housing and Community Development Act of 1992 (42
U.S.C. 13631), as amended by subsection (b) of this section,
is further amended—
(A) in the first sentence of subsection (c), by inserting
after "response," the following: "education and outreach
regarding telemarketing fraud in accordance with the
standards issued under subsection (f),"; and
(B) by adding at the end the following:
"(f) PROTECTION AGAINST TELEMARKETING FRAUD.—
Regulations. "(1) IN GENERAL.—The Secretary, in coordination with the
Secretary of Health and Human Services, shall establish stand­
ards for service coordinators in federally assisted housing who PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3025
are providing education and outreach to elderly persons residing
in such housing regarding telemarketing fraud. The standards
shall be designed to ensure that such education and outreach
informs such elderly persons of the dangers of telemarketing
fraud and facilitates the investigation and prosecution of tele­
marketers engaging in fraud against such residents.
"(2) CONTENTS.—^The standards established under this sub­
section shall require that any such education and outreach
be provided in a manner that—
"(A) informs such residents of—
"(i) the prevalence of telemarketing fraud targeted
against elderly persons;
"(ii) how telemarketing fraud works;
"(iii) how to identify telemarketing fraud;
"(iv) how to protect themselves against tele­
marketing fraud, including an explanation of the dan­
gers of providing bank account, credit card, or other
financial or personal information over the telephone
to unsolicited callers;
"(v) how to report suspected attempts at tele­
marketing fraud; and
"(vi) their consumer protection rights under Fed­
eral law;
"(B) provides such other information as the Secretary
considers necessary to protect such residents against
fraudulent telemarketing; and
"(C) disseminates the information provided by appro­
priate means, and in determining such appropriate means,
the Secretary shall consider on-site presentations at feder­
ally assisted housing, public service announcements, a
printed manual or pamphlet, an Internet website, and tele­
phone outreach to residents whose names appear on 'mooch
lists' confiscated from fraudulent telemarketers.".
Subtitle D—Preservation of Affordable
Housing Stock
SEC. 861. SECTION 236 ASSISTANCE.
(a) EXTENSION OF AUTHORITY TO RETAIN EXCESS CHARGES.—
Section 236(g) of the National Housing Act (12 U.S.C. 1715z-l(g)),
as amended by the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 2001, is amended—
(1) in paragraph (2), by striking "Subject to paragraph
(3) and notwithstanding" and inserting "Notwithstanding"; and
(2) by striking paragraph (3) and redesignating paragraph
(4) as paragraph (3).
(b) TREATMENT OF EXCESS CHARGES PREVIOUSLY COLLECTED.— 12 use I7i5z-i
Any excess charges that a project owner may retain pursuant °ote.
to the amendments made by subsections (b) and (c) of section
532 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2000
(Pubhc Law 106-74; 113 Stat. 1116) that have been collected by
such owner since the date of the enactment of such appropriations
Act and that such owner has not remitted to the Secretary of
Housing and Urban Development may be retained by such owner 114 STAT. 3026 PUBLIC LAW 106-569—DEC. 27, 2000
unless such Secretary otherwise provides. To the extent that a
project owner has remitted such excess charges to the Secretary
since such date of the enactment, the Secretary may return to
the relevant project owner any such excess charges remitted. Not­
withstanding any other provision of law, amounts in the Rental
Housing Assistance Fund, or heretofore or subsequently transferred
from the Rental Housing Assistance Fund to the Flexible Subsidy
Fund, shall be available to make such return of excess charges
previously remitted to the Secretary, including the return of excess
charges referred to in section 532(e) of such appropriations Act.
TITLE IX—OTHER RELATED HOUSING
PROVISIONS
Applicability.
42 use 1437f
note.
Applicability.
42 use 1437f
note. SEC. 901. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME
LOTS.
Section 2(b)(3)(E) of the National Housing Act (12 U.S.C.
1703(b)(3)(E)) is amended by striking "fifteen" and inserting
"twenty".
SEC. 902. USE OF SECTION 8 VOUCHERS FOR OPT-OUTS.
(a) IN GENERAL.—Section 8(t)(2) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(tX2)), as amended by the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, is amended by
striking "fiscal year 1996" and inserting "fiscal year 1994".
(b) EFFECTIVE DATE.—^The amendment under subsection (a)
shall be made and shall apply—
(1) upon the enactment of this Act, if the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, is enacted
before the enactment of this Act; and
(2) immediately after the enactment of such appropriations
Act, if such appropriations Act is enacted after the enactment
of this Act.
SEC. 903. MAXIMUM PAYMENT STANDARD FOR ENHANCED VOUCHERS.
(a) IN GENERAL.—Section 8(t)(l)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(t)(l)(B)), as amended by
the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001,
is amended by inserting before the semicolon at the end the fol­
lowing: ", except that a limit shall not be considered reasonable
for purposes of this subparagraph if it adversely affects such
assisted families".
(b) EFFECTIVE DATE.—^The amendment under subsection (a)
shall be made and shall apply—
(1) upon the enactment of this Act, if the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, is enacted
before the enactment of this Act; and
(2) immediately after the enactment of such appropriations
Act, if such appropriations Act is enacted after the enactment
of this Act. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3027
SEC. 904. USE OF SECTION 8 ASSISTANCE BY "GRAND-FAMILIES" TO
RENT DWELLING UNITS IN ASSISTED PROJECTS.
Section 215(a) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(a)) is amended by adding at the
end the following new paragraph:
"(6) WAIVER OF QUALIFYING RENT.—
"(A) IN GENERAL.—For the purpose of providing afford­
able housing appropriate for families described in subpara­
graph (B), the Secretary may, upon the application of the
project owner, waive the applicability of subparagraph (A)
of paragraph (1) with respect to a dwelling unit if—
"(i) the unit is occupied by such a family, on whose
behalf tenant-based assistance is provided under sec­
tion 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f);
"(ii) the rent for the unit is not greater than the
existing fair market rent for comparable units in the
area, as established by the Secretary under section
8 of the United States Housing Act of 1937; and
"(iii) the Secretary determines that the waiver,
together with waivers under this paragraph for other
dwelling units in the project, will result in the use
of amounts described in clause (iii) in an effective
manner that will improve the provision of affordable
housing for such families.
"(B) ELIGIBLE FAMILIES.—A family described in this
subparagraph is a family that consists of at least one
elderly person (who is the head of household) and one
or more of such person's grand children, great grand­
children, great nieces, great nephews, or great great grand­
children (as defined by the Secretary), but does not include
any parent of such grandchildren, great grandchildren,
great nieces, great nephews, or great great grandchildren.
' ' Such term includes any such grandchildren, great grand­
children, great nieces, great nephews, or great great grand­
children who have been legally adopted by such elderly
person.".
TITLE X—FEDERAL RESERVE BOARD
PROVISIONS
SEC. 1001. FEDERAL RESERVE BOARD BUILDINGS.
The third undesignated paragraph of section 10 of the Federal
Reserve Act (12 U.S.C. 243) is amended—
(1) by inserting after the first sentence the following new
sentence: "After September 1, 2000, the Board may also use
such assessments to acquire, in its own name, a site or building
(in addition to the facilities existing on such date) to provide
for the performance of the functions of the Board."; and
(2) in the sentences following the sentence added by the
amendment made by paragraph (1) of this section—
(A) by striking "the site" and inserting "any site"; and
(B) by inserting "or buildings" after "building" each
place such term appears. 114 STAT. 3028 PUBLIC LAW 106-569—DEC. 27, 2000
SEC. 1002. POSITIONS OF BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM ON THE EXECUTIVE SCHEDULE.
(a) IN GENERAL.—
(1) POSITIONS AT LEVEL I OF THE EXECUTIVE SCHEDULE.—
Section 5312 of title 5, United States Code, is amended by
adding at the end the following:
"Chairman, Board of Governors of the Federal Reserve
System.".
(2) POSITIONS AT LEVEL II OF THE EXECUTIVE SCHEDULE.—
Section 5313 of title 5, United States Code, is amended—
(A) by striking "Chairman, Board of Governors of the
Federal Reserve System."; and
(B) by adding at the end the following:
"Members, Board of Governors of the Federal Reserve
System.".
(3) POSITIONS AT LEVEL HI OF THE EXECUTIVE SCHEDULE.—
Section 5314 of title 5, United States Code, is amended by
striking "Members, Board of Governors of the Federal Reserve
System.".
5 use 5312 note. (b) EFFECTIVE DATE.—^This section and the amendments made
by this section shall take effect on the first day of the first pay
period for the Chairman and Members of the Board of Governors
of the Federal Reserve System beginning on or after the date
of the enactment of this Act.
SEC. 1003. AMENDMENTS TO THE FEDERAL RESERVE ACT.
(a) REPEAL.—Section 2A of the Federal Reserve Act (12 U.S.C.
225a) is amended by striking all after the first sentence.
(b) APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.—
(1) IN GENERAL.—The Federal Reserve Act (12 U.S.C. 221
et seq.) is amended by inserting after section 2A the following
new section:
12 use 225b. «SEC. 2B. APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.
"(a) APPEARANCES BEFORE THE CONGRESS.—
(1) IN GENERAL.—^The Chairman of the Board shall appear
before the Congress at semi-annual hearings, as specified in
paragraph (2), regarding—
"(A) the efforts, activities, objectives and plans of the
Board and the Federal Open Market Committee with
respect to the conduct of monetary policy; and
"(B) economic developments and prospects for the
future described in the report required in subsection (b).
"(2) SCHEDULE.—^The Chairman of the Board shall appear—
"(A) before the Committee on Banking and Financial
Services of the House of Representatives on or about Feb­
ruary 20 of even numbered calendar years and on or about
July 20 of odd numbered calendar years;
"(B) before the Committee on Banking, Housing, and
Urban Affairs of the Senate on or about July 20 of even
numbered calendar years and on or about February 20
of odd numbered calendar years; and
"(C) before either Committee referred to in subpara­
graph (A) or (B), upon request, following the scheduled
appearance of the Chairman before the other Committee
under subparagraph (A) or (B). PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3029
"(b) CONGRESSIONAL REPORT.—^The Board shall, concurrent
with each semi-annual hearing required by this section, submit
a written report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Banking £ind Financial
Services of the House of Representatives, containing a discussion
of the conduct of monetary policy and economic developments and
prospects for the future, taking into account past and prospective
developments in employment, unemplo3nnent, production, invest­
ment, real income, productivity, exchange rates, international trade
and pa3niients, and prices.".
TITLE XI—BANKING AND HOUSING Federal
AGENCY REPORTS &°."*°^**'"
SEC. 1101. SHORT TITLE.
This title may be cited as the "Federal Reporting Act of 2000".
SEC. 1102. PRESERVATION OF CERTAIN REPORTING REQUIREMENTS. 31 USC 1113
Section 3003(a)(1) of the Federal Reports Elimination and
Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any
report required to be submitted under any of the following provi­
sions of law:
(1) Section 3 of the Employment Act of 1946 (15 U.S.C.
1022).
(2) Section 309 of the Defense Production Act of 1950
(50 U.S.C. App. 2099).
(3) Section 603 of the Public Works and Economic Develop­
ment Act of 1965 (42 U.S.C. 3213).
(4) Section 7(o)(l) of the Department of Housing and Urban
Development Act (42 U.S.C. 3535(o)(l)).
(5) Section 540(c) of the National Housing Act (12 U.S.C.
1735f-18(c)).
(6) Paragraphs (2) and (6) of section 808(e) of the Civil
Rights Act of 1968 (42 U.S.C. 3608(e)).
(7) Section 1061 of the Housing and Community Develop­
ment Act of 1992 (42 U.S.C. 4856).
(8) Section 203(v) of the National Housing Act (12 U.S.C.
1709(v)), as added by section 504 of the Housing and Commu­
nity Development Act of 1992 (Public Law 102-550; 106 Stat.
'•' 3780).
(9) Section 802 of the Housing Act of 1954 (12 U.S.C.
170 lo).
(10) Section 8 of the Department of Housing and Urban
Development Act (42 U.S.C. 3536).
(11) Section 1320 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4027).
(12) Section 4(e)(2) of the Department of Housing and
Urban Development Act (42 U.S.C. 3533(e)(2)).
(13) Section 205(g) of the National Housing Act (12 U.S.C.
1711(g)).
(14) Section 701(c)(1) of the International Financial Institu­
tions Act (22 U.S.C. 262d(c)(l)).
(15) Paragraphs (1) and (2) of section 5302(c) of title 31,
United States Code.
(16) Section 18(f)(7) of the Federal Trade Commission Act
(15 U.S.C. 57a(f)(7)). 114 STAT. 3030 PUBLIC LAW 106-569—DEC. 27, 2000
(17) Section 333 of the Revised Statutes of the United
States (12 US.C. 14).
(18) Section 3(g) of the Home Owners' Loan Act (12 U.S.C.
1462a(g)).
(19) Section 304 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 304).
(20) Sections 2(b)(1)(A), 8(a), 8(c), 10(g)(1), and 11(c) of
the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(A),
635g(a), 635g(c), 635i-3(g), and 635i-5(c)).
(21) Section 17(a) of the Federal Deposit Insurance Act
(12 U.S.C. 1827(a)).
(22) Section 13 of the Federal Financing Bank Act of 1973
(12 U.S.C. 2292).
(23) Section 2B(d) of the Federal Home Loan Bank Act
(12 U.S.C. 1422b(d)).
(24) Section 1002(b) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note).
(25) Section 8 of the Fair Credit and Charge Card Disclo­
sure Act of 1988 (15 U.S.C. 1637 note).
(26) Section 136(b)(4)(B) of the Truth in Lending Act (15
U.S.C. 1646(b)(4)(B)).
(27) Section 707 of the Equal Credit Opportunity Act (15
U.S.C. 1691f).
(28) Section 114 of the Truth in Lending Act (15 U.S.C.
1613).
(29) The seventh undesignated paragraph of section 10
of the Federal Reserve Act (12 U.S.C. 247).
(30) The tenth undesignated paragraph of section 10 of
the Federal Reserve Act (12 U.S.C. 247a).
(31) Section 815 of the Fair Debt Collection Practices Act
(15 U.S.C. 1692m).
(32) Section 102(d) of the Federal Credit Union Act (12
U.S.C. 1752a(d)).
(33) Section 21B(i) of the Federal Home Loan Bank Act
(12 U.S.C. 1441b(i)).
(34) Section 607(a) of the Housing and Community Develop­
ment Amendments of 1978 (42 U.S.C. 8106(a)).
(35) Section 708(1) of the Defense Production Act of 1950
(50 U.S.C. App. 2158(1)).
(36) Section 2546 of the Comprehensive Thrift and Bank
Fraud Prosecution and Taxpayer Recovery Act of 1990 (28
U.S.C. 522 note).
(37) Section 202(b)(8) of the National Housing Act (12
U.S.C. 1708(b)(8)).
SEC. 1103. COORDINATION OF REPORTING REQUIREMENTS.
(a) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 17(a)
of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is amended
by adding at the end the following new paragraph:
"(3) COORDINATION WITH OTHER REPORT REQUIREMENTS.—
The report required under this subsection shall include the
report required under section 18(f)(7) of the Federal Trade
Commission Act.".
(b) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.—
The seventh undesignated paragraph of section 10 of the Federal
Reserve Act (12 U.S.C. 247) is amended by adding at the end PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3031
the following new sentence: "The report required under this para­
graph shall include the reports required under section 707 of the
Equal Credit Opportunity Act, section 18(f)(7) of the Federal Trade
Commission Act, section 114 of the Truth in Lending Act, and
the tenth undesignated paragraph of this section.".
(c) COMPTROLLER OF THE CURRENCY.—Section 333 of the
Revised Statutes of the United States (12 U.S.C. 14) is amended
by adding at the end the following new sentence: "The report
required under this section shall include the report required under
section 18(f)(7) of the Federal Trade Commission Act.".
(d) EXPORT-IMPORT BANK.—
(1) IN GENERAL.—Section 2(b)(1)(A) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)(1)(A)) is amended—
(A) by striking "a annual" and inserting "an annual";
and
(B) by adding at the end the following new sentence:
"The annual report required under this subparagraph shall
include the report required under section 10(g).".
(2) TECHNICAL AND CONFORMING AMENDMENT.—Section
10(g)(1) of the Export-Import Bank Act of 1945 (12 U.S.C.
635i-3(g)(l)) is amended—
(A) by striking "On or" and all that follows through
"the Bank" and inserting "The Bank"; and
(B) by striking "a report" and inserting "an annual
report".
(e) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.—Sec­
tion 8 of the Department of Housing and Urban Development Act
(42 U.S.C. 3536) is amended by adding at the end the following
new sentence: "The report required under this section shall include
the reports required under paragraphs (2) and (6) of section 808(e)
of the Civil Rights Act of 1968, the reports required under sub­
sections (a) and (b) of section 1061 of the Housing and Community
Development Act of 1992, the report required under section 802
of the Housing Act of 1954, and the report required under section
4(e)(2) of this Act.".
(f) FEDERAL HOUSING ADMINISTRATION.—Section 203(v) of the
National Housing Act (12 U.S.C. 1709(v)), as added by section
504 of the Housing and Community Development Act of 1992,
is amended by adding at the end the following new sentence:
"The report required under this subsection shall include the report
required under section 540(c) and the report required under section
205(g).".
(g) INTERNATIONAL FINANCIAL INSTITUTIONS ACT.—Section
701(c)(1) of the International Financial Institutions Act (22 U.S.C.
262d(c)(l)) is amended by striking "Not later" and all that follows
through "quarterly" and inserting "The Secretary of the Treasury
shall report annually".
SEC. 1104. ELIMINATION OF CERTAIN REPORTING REQUIREMENTS.
(a) EXPORT-IMPORT BANK.—^The Export-Import Bank Act of
1945 (12 U.S.C. 635 et seq.) is amended—
(1) in section 2(b)( 1)(D)— 12 USC 635.
(A) by striking "(i)"; and
(B) by striking clause (ii);
(2) in section 2(b)(8), by striking the last sentence;
(3) in section 6(b), by striking paragraph (2) and redesig- l2USC635e.
nating paragraph (3) as paragraph (2); and
79-194 O-00-33:QL3Part5 114 STAT. 3032 PUBLIC LAW 106-569—DEC. 27, 2000
12 use 635g.
Financial
Regulatory Relief
and Economic
Efficiency Act of
2000.
12 use 1811
note. (4) in section 8, by striking subsections (b) and (d) and
redesignating subsections (c) and (e) as subsections (b) and
(c), respectively,
(b) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 17
of the Federal Deposit Insurance Act (12 U.S.C. 1827) is amended
by striking subsection (h).
TITLE XII—FINANCIAL REGULATORY
RELIEF
SEC. 1200. SHORT TITLE.
This title may be cited as the "Financial Regulatory Relief
and Economic Efficiency Act of 2000".
Subtitle A—Improving Monetary Policy
and Financial Institution Management
Practices
SEC. 1201. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY PROVISION.
(a) REPEAL OF LIQUIDITY PROVISION.—Section 6 of the Home
Owners' Loan Act (12 U.S.C. 1465) is hereby repealed.
(b) CONFORMING AMENDMENTS.—
(1) SECTION 5.—Section 5(c)(l)(M) of the Home Owners'
Loan Act (12 U.S.C. 1464(c)(l)(M)) is amended to read as fol­
lows:
"(M) LIQUIDITY INVESTMENTS.—Investments (other
than equity investments), identified by the Director, for
liquidity purposes, including cash, funds on deposit at a
Federal reserve bank or a Federal home loan bank, or
bankers' acceptances.".
(2) SECTION lo.—Section 10(m)(4)(B)(iii) of the Home
Owners' Loan Act (12 U.S.C. 1467a(m)(4)(B)(iii)) is amended
by inserting "as in effect on the day before the date of the
enactment of the Financial Regulatory Relief and Economic
Efficiency Act of 2000," after "Loan Act,".
SEC. 1202. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIA­
TION HOLDING COMPANIES.
Section 10(e)(l)(A)(iii) of the Home Owners' Loan Act (12 U.S.C.
1467a(e)(l)(A)(iii)) is amended—
(1) by inserting ", except with the prior written approval
of the Director," after "or to retain"; and
(2) by striking "so acquire or retain" and inserting "acquire
or retain, and the Director may not authorize acquisition or
retention of,".
SEC. 1203. REPEAL OF DEPOSIT BROKER NOTIFICATION AND RECORD­
KEEPING REQUIREMENT.
Section 29A of the Federal Deposit Insurance Act (12 U.S.C.
183 lf-1) is hereby repealed. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3033
SEC. 1204. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZA­
TIONS.
The National Bank Consolidation and Merger Act (12 U.S.C.
215 et seq.) is amended—
(1) by redesignating section 5 as section 7; Eind 12 USC 215b.
(2) by inserting after section 4 the following new section:
"SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS. 12 USC 215a-2.
"(a) IN GENERAL.—^A national bank may, with the approval
of the Comptroller, pursuant to rules and regulations promulgated
by the Comptroller, and upon the affirmative vote of the share­
holders of such bank owning at least two-thirds of its capital stock
outstanding, reorganize so as to become a subsidiary of a bank
holding company or of a company that will, upon consummation
of such reorganization, become a bank holding company.
"(b) REORGANIZATION PLAN.—A reorganization authorized under
subsection (a) shall be carried out in accordance with a reorganiza­
tion plan that—
"(1) specifies the manner in which the reorganization shall
be carried out;
"(2) is approved by a majority of the entire board of direc­
tors of the national bank;
"(3) specifies—
"(A) the amount of cash or securities of the bank
holding company, or both, or other consideration to be
paid to the shareholders of the reorganizing bank in
exchange for their shares of stock of the bank;
"(B) the date as of which the rights of each shareholder
to participate in such exchange will be determined; and
"(C) the manner in which the exchange will be carried
out; and
"(4) is submitted to the shareholders of the reorganizing
bank at a meeting to be held on the call of the directors
in accordance with the procedures prescribed in connection
with a merger of a national bank under section 3.
"(c) RIGHTS OF DISSENTING SHAREHOLDERS.—If, pursuant to
this section, a reorganization plan has been approved by the share­
holders and the Comptroller, any shareholder of the bank who
has voted against the reorganization at the meeting referred to
in subsection (b)(4), or has given notice in writing at or prior
to that meeting to the presiding officer that the shareholder dissents
from the reorganization plan, shall be entitled to receive the value
of his or her shares, as provided by section 3 for the merger
of a national bank.
"(d) EFFECT OF REORGANIZATION.—^The corporate existence of
a national bank that reorganizes in accordance with this section
shall not be deemed to have been affected in any way by reason
of such reorganization.
"(e) APPROVAL UNDER THE BANK HOLDING COMPANY ACT.—
This section does not affect in any way the applicability of the
Bank Holding Company Act of 1956 to a transaction described
in subsection (a).".
SEC. 1205. NATIONAL BANK DIRECTORS.
(a) AMENDMENTS TO THE REVISED STATUTES.—Section 5145
of the Revised Statutes of the United States (12 U.S.C. 71) is
amended— 114 STAT. 3034 PUBLIC LAW 106-569—DEC. 27, 2000
(1) by striking "for one year" and inserting "for a period
of not more than 3 years"; and
(2) by adding at the end the following: "In accordance
with regulations issued by the Comptroller of the Currency,
a national bank may adopt bylaws that provide for staggering
the terms of its directors.".
(b) AMENDMENT TO THE BANKING ACT OF 1933.—Section 31
of the Banking Act of 1933 (12 U.S.C. 71a) is amended in the
first sentence, by inserting before the period ", except that the
Comptroller of the Currency may, by regulation or order, exempt
a national bank from the 25-member limit established by tlus
section".
SEC. 1206. AMENDMENT TO NATIONAL BANK CONSOLIDATION AND
MERGER ACT.
The National Bank Consolidation and Merger Act (12 U.S.C.
215 et seq.) is amended by inserting after section 5, as added
by this title, the following new section:
12 use 215a-3. "SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDIARIES AND
NONBANK AFFILIATES.
"(a) IN GENERAL.—Upon the approval of the Comptroller, a
national bank may merge with one or more of its nonbank subsidi­
aries or affiliates.
"(b) SCOPE.—^Nothing in this section shall be construed—
"(1) to affect the applicability of section 18(c) of the Federal
Deposit Insurance Act; or
"(2) to grant a national bank any power or authority that
is not permissible for a national bank under other applicable
provisions of law.
"(c) REGULATIONS.—^The Comptroller shall promulgate regula­
tions to implement this section.".
SEC, 1207. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR
OWN STOCK; AFFILIATIONS.
(a) AMENDMENT TO THE REVISED STATUTES.—Section 5201 of
the Revised Statutes of the United States (12 U.S.C. 83) is amended
to read as follows:
"SEC. 520L LOANS BY BANK ON ITS OWN STOCK.
"(a) GENERAL PROHIBITION.—^No national bank shall make any
loan or discount on the security of the shares of its own capital
stock.
"(b) EXCLUSION.—For purposes of this section, a national bank
shall not be deemed to be making a loan or discount on the security
of the shares of its own capital stock if it acquires the stock
to prevent loss upon a debt previously contracted for in good faith.".
(b) AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.—
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828)
is amended—
(1) by redesignating subsection (t), as added by section
730 of the Gramm-Leach-Bliley Act (Public Law 106-102; 113
Stat. 1476), as subsection (u); and
(2) by adding at the end the following new subsection:
"(v) LOANS BY INSURED INSTITUTIONS ON THEIR OWN STOCK.—
"(1) GENERAL PROHIBITION.—No insured depository institu­
tion may make any loan or discount on the security of the
shares of its own capital stock. PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3035
"(2) EXCLUSION.—For purposes of this subsection, an
insured depository institution shall not be deemed to be making
a loan or discount on the security of the shares of its own
capital stock if it acquires the stock to prevent loss upon a
debt previously contracted for in good faith.".
SEC. 1208. PURCHASED MORTGAGE SERVICING RIGHTS.
Section 475 of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended—
(1) in subsection (a)(1), by inserting "(or such other percent­
age exceeding 90 percent but not exceeding 100 percent, as
may be determined under subsection (b))" after "90 percent";
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively, and by inserting after subsection (a)
the following new subsection:
"(b) AUTHORITY TO DETERMINE PERCENTAGE BY WHICH TO DIS­
COUNT VALUE OF SERVICING RIGHTS.—The appropriate Federal
banking agencies may allow readily marketable purchased mortgage
servicing rights to be valued at more than 90 percent of their
fair market value but at not more than 100 percent of such value,
if such agencies jointly make a finding that such valuation would
not have an adverse effect on the deposit insurance funds or the
safety and soundness of insured depository institutions."; and
(3) in subsection (c), by striking "and" and inserting ",
'deposit insurance fund', and".
Subtitle B—Streamlining Activities of
Institutions
SEC. 1211. CALL REPORT SIMPLIFICATION. 25 USC 4805a.
(a) MODERNIZATION OF CALL REPORT FILING AND DISCLOSURE
SYSTEM.—In order to reduce the administrative requirements per­
taining to bank reports of condition, savings association financial
reports, and bank holding company consolidated and parent-only
financial statements, and to improve the timeliness of such reports
and statements, the Federal banking agencies shall—
(1) work jointly to develop a system under which—
(A) insured depository institutions and their affiliates
may file such reports and statements electronically; and
(B) the Federal banking agencies may make such
reports and statements available to the public electroni­
cally; and
(2) not later than 1 year after the date of the enactment Deadline,
of this Act, report to the Congress and make recommendations
for legislation that would enhance efficiency for filers and users
of such reports and statements.
(b) UNIFORM REPORTS AND SIMPLIFICATION OF INSTRUCTIONS.—
The Federal banking agencies shall, consistent with the principles
of safety and soundness, work jointly—
(1) to adopt a single form for the filing of core information
required to be submitted under Federal law to all such agencies
in the reports and statements referred to in subsection (a);
and
(2) to simplify instructions accompanying such reports and
statements and to provide an index to the instructions that
is adequate to meet the needs of both filers and users. 114 STAT. 3036 PUBLIC LAW 106-569—DEC. 27, 2000
(c) REVIEW OF CALL REPORT SCHEDULE.—Each Federal banking
agency shall—
(1) review the information required by schedules
supplementing the core information referred to in subsection
(b); and
(2) eliminate requirements that are not warranted for rea­
sons of safety and soundness or other public purposes.
(d) DEFINITION.—In this section, the term "Federal banking
agency* has the same meaning as in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
Subtitle C—Streamlining Agency Actions
SEC. 1221. ELIMINATION OF DUPUCATIVE DISCLOSURE OF FAIR
MARKET VALUE OF ASSETS AND LIABILITIES.
Section 37(a)(3) of the Federal Deposit Insurance Act (12 U.S.C.
1831n(a)(3)) is amended by striking subparagraph (D).
SEC. 1222. PAYMENT OF INTEREST IN RECEIVERSmPS WITH SURPLUS
FUNDS.
Section ll(d)(10) of the Federal Deposit Insurance Act (12
U.S.C. 1821(d)(10)) is amended by adding at the end the following
new subparagraph:
"(C) RULEMAKING AUTHORITY OF CORPORATION.—^The
Corporation may prescribe such rules, including definitions
of terms, as it deems appropriate to establish a single
uniform interest rate for or to make payments of post
insolvency interest to creditors holding proven claims
against the receivership estates of insured Federal or State
depository institutions following satisfaction by the receiver
of the principal amount of all creditor claims.".
SEC. 1223. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES
IN ACCOUNTING STANDARDS.
Section 37(c) of the Federal Deposit Insurance Act (12 U.S.C.
1831n(c)) is amended—
(1) in paragraph (1), by striking "Each" and all that follows
through "a report" and inserting 'The Federal banking agencies
shall jointly submit an annual report"; and
(2) by inserting "any" before "such agency" each place that
term appears.
SEC. 1224. EXTENSION OF TIME.
Section 6(a)(1) of the Federal Home Loan Bank Act (12 U.S.C.
1426(a)(1)) is amended by striking "1 year" and inserting "18
months".
Subtitle D—^Technical Corrections
SEC. 1231. TECHNICAL CORRECTION RELATING TO DEPOSIT INSUR­
ANCE FUNDS.
(a) IN GENERAL.—Section 2707 of the Deposit Insurance Funds
12 use 1817. Act of 1996 (Public Law 104-208; 110 Stat. 3009-496) is amended—
(1) by striking "7(b)(2)(C)" and inserting "7(b)(2)(E)"; and
(2) by striking ", as redesignated by section 2704(d)(6)
of this subtitle". PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 3037
(b) EFFECTIVE DATE.—^The amendments made by subsection 12 use 1817
(a) shall be deemed to have the same effective date as section ^ote-
2707 of the Deposit Insurance Funds Act of 1996 (Public Law
104-208; 110 Stat. 3009-496).
SEC. 1232. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR
MEMBER BANKS CONVERTING CHARTERS.
Section 8(o) of the Federal Deposit Insurance Act (12 U.S.C.
1818(o)) is amended in the second sentence, by striking "subsection
(d) of section 4" and inserting "subsection (c) or (d) of section
4".
SEC. 1233. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED
STATES.
(a) WAIVER OF CITIZENSHIP REQUIREMENT FOR NATIONAL BANK
DIRECTORS,—Section 5146 of the Revised Statutes of the United
States (12 U.S.C. 72) is amended in the first sentence, by inserting
before the period ", and waive the requirement of citizenship in
the case of not more than a minority of the total number of direc­
tors".
(b) TECHNICAL AMENDMENT TO THE REVISED STATUTES.—Sec­
tion 329 of the Revised Statutes of the United States (12 U.S.C.
11) ik amended by striking "to be interested in any association
issuing national currency under the laws of the United States"
and inserting "to hold an interest in any national bank".
(c) REPEAL OF UNNECESSARY CAPITAL AND SURPLUS REQUIRE­
MENT.—Section 5138 of the Revised Statutes of the United States
(12 U.S.C. 51) is hereby repealed.
SEC. 1234. CONFORMING CHANGE TO THE INTERNATIONAL BANKING
ACT OF 1978.
Section 4(b) of the International Banking Act of 1978 (12 U.S.C.
3102(b)) is amended in the second sentence, by striking paragraph
(1) and by redesignating paragraphs (2) through (4) as paragraphs
(1) through (3), respectively.
Approved December 27, 2000.
LEGISLATIVE HISTORY—H.R. 5640 (H.R. 1776):
HOUSE REPORTS: Nos. 106-553 and Pt. 2 accompanying H.R. 1776 (Comm.
Banking and Financial Services).
CONGRESSIONAL RECORD, Vol. 146 (2000):
Dec. 5, considered and passed House.
Dec. 7, considered and passed Senate.