S 225 IS
106th CONGRESS
1st Session
S. 225
To provide Federal housing assistance to Native Hawaiians.
IN THE SENATE OF THE UNITED STATES
January 19, 1999
Mr. INOUYE (for himself and Mr. AKAKA) introduced the following bill; which
was read twice and referred to the Committee on Indian Affairs
A BILL
To provide Federal housing assistance to Native Hawaiians.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Native American Housing Assistance and
Self-Determination Amendments of 1999'.
SEC. 2. FINDINGS.
(1) the United States has undertaken a responsibility to promote the
general welfare of the United States by--
(A) employing its resources to remedy the unsafe and unsanitary
housing conditions and the acute shortage of decent, safe, and sanitary
dwellings for families of lower income; and
(B) developing effective partnerships with governmental and private
entities to accomplish the objectives referred to in subparagraph
(A);
(2) pursuant to the provisions of the Hawaiian Homes Commission Act,
1920 (42 Stat. 108 et seq.), the United States set aside 200,000 acres of
land in the Federal territory that later became the State of Hawaii in order
to establish a homeland for the native people of Hawaii--Native
Hawaiians;
(3) 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.), some agencies of the Federal Government
have taken the legal position that subsequently enacted Federal housing laws
designed to address the housing needs of all eligible families in the United
States could not be extended to address the needs for housing and
infrastructure development on Hawaiian home lands (as that term is defined
in section 801 of the Native American Housing Assistance and
Self-Determination Act of 1996, as added by section 3 of this Act) with the
result that otherwise eligible Native Hawaiians residing on the Hawaiian
home lands have been foreclosed from participating in Federal housing
assistance programs available to all other eligible families in the United
States;
(4) 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;
(5) among the Native American population of the United States, Native
Hawaiians experience the highest percentage of housing problems in the
United States, as the percentage--
(A) of housing problems in the Native Hawaiian population is 49
percent, as compared to--
(i) 44 percent for American Indian and Alaska Native households in
Indian country; and
(ii) 27 percent for all other households in the United States;
and
(B) overcrowding in the Native Hawaiian population is 36 percent as
compared to 3 percent for all other households in the United
States;
(6) among the Native Hawaiian population, the needs of Native Hawaiians,
as that term is defined in section 801 of the Native American Housing
Assistance and Self-Determination Act of 1996, as added by section 3 of this
Act, eligible to reside on the Hawaiian Home Lands are the most severe,
as--
(A) the percentage of overcrowding in Native Hawaiian households on
the Hawaiian Home Lands is 36 percent; and
(B) approximately 13,000 Native Hawaiians, which constitute 95 percent
of the Native Hawaiians who are eligible to reside on the Hawaiian Home
Lands, are in need of housing;
(7) applying the Department of Housing and Urban Development
guidelines--
(A) 70.8 percent of Native Hawaiians who either reside or who are
eligible to reside on the Hawaiian Home Lands have incomes that fall below
the median family income; and
(B) 50 percent of Native Hawaiians who either reside or who are
eligible to reside on the Hawaiian Home Lands have incomes below 30
percent of the median family income; and
(8) 1/3 of those Native Hawaiians who are eligible to reside on the
Hawaiian Home Lands pay more than 30 percent of their income for shelter,
and 1/2 of those Native Hawaiians face overcrowding;
(9) 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;
(10) consistent with the recommendations of the National Commission on
American Indian, Alaska Native, and Native Hawaiian Housing, and in order to
address the continuing prevalence of extraordinarily severe housing needs
among Native Hawaiians who either reside or are eligible to reside on the
Hawaiian Home Lands, Congress finds it necessary to extend the Federal
low-income housing assistance available to American Indians and Alaska
Natives under the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4101 et seq.) to those Native Hawaiians;
(11) under the treatymaking power of the United States, Congress had the
authority to confirm a treaty between the United States and the government
that represented the Hawaiian people under clause 3 of section 8 of article
I of the Constitution, the authority of Congress to address matters
affecting the indigenous peoples of the United States includes the authority
to address matters affecting Native Hawaiians;
(12) through treaties, Federal statutes, and rulings of the Federal
courts, the United States has recognized and reaffirmed that--
(A) the political status of Native Hawaiians is comparable to that of
American Indians and Alaska Natives; and
(B) 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;
(13) the political relationship between the United States and the Native
Hawaiian people has been recognized and reaffirmed by the United States as
evidenced by the inclusion of Native Hawaiians in--
(A) the Native American Programs Act of 1974 (42 U.S.C. 2291 et
seq.);
(B) the American Indian Religious Freedom Act (42 U.S.C. 1996 et
seq.);
(C) the National Museum of the American Indian Act (20 U.S.C. 80q et
seq.);
(D) the Native American Graves Protection and Repatriation Act (25
U.S.C. 3001 et seq.);
(E) the National Historic Preservation Act (16 U.S.C. 470 et
seq.);
(F) the Native American Languages Act of 1992 (106 Stat.
3434);
(G) the American Indian, Alaska Native and Native Hawaiian Culture and
Arts Development Act (20 U.S.C. 4401 et seq.);
(H) the Job Training Partnership Act (29 U.S.C. 1501 et seq.);
and
(I) the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);
and
(14) in the area of housing, the United States has recognized and
reaffirmed the political relationship with the Native Hawaiian people
through--
(A) the enactment of the Hawaiian Homes Commission Act, 1920 (42 Stat.
108 et seq.), which set aside approximately 200,000 acres of public lands
that became known as Hawaiian Home Lands in the Territory of Hawaii that
had been ceded to the United States for homesteading by Native Hawaiians
in order to rehabilitate a landless and dying people;
(B) the enactment of the Act entitled `An Act to provide for the
admission of the State of Hawaii into the Union', approved March 18, 1959
(73 Stat. 4)--
(i) by ceding to the State of Hawaii title to the public lands
formerly held by the United States, and mandating that those lands be
held in public trust, for the betterment of the conditions of Native
Hawaiians, as that term is defined in section 801(15) of the Native
American Housing Assistance and Self-Determination Act of 1996, as added
by section 3 of this Act; and
(ii) by transferring what the United States considered to be a trust
responsibility for the administration of Hawaiian Home Lands to the
State of Hawaii, but retaining the authority to enforce the trust,
including the exclusive right of the United States to consent to any
actions affecting the lands which comprise the corpus of the trust and
any amendments to the Hawaiian Homes Commission Act, 1920 (42 Stat. 108
et seq.), enacted by the legislature of the State of Hawaii affecting
the rights of beneficiaries under the Act;
(C) the authorization of mortgage loans insured by the Federal Housing
Administration for the purchase, construction, or refinancing of homes on
Hawaiian Home Lands under the Act of June 27, 1934 (commonly referred to
as the `National Housing Act' (42 Stat. 1246 et seq., chapter 847; 12
U.S.C. 1701 et seq.));
(D) authorizing Native Hawaiian representation on the National
Commission on American Indian, Alaska Native, and Native Hawaiian Housing
under Public Law 101-235;
(E) the inclusion of Native Hawaiians in the definition under section
3764 of title 38, United States Code, applicable to subchapter V of
chapter 37 of title 38, United States Code (relating to a housing loan
program for Native American veterans); and
(F) the enactment of the Hawaiian Home Lands Recovery Act (109 Stat.
357; 48 U.S.C. 491, note prec.) which establishes a process for the
conveyance of Federal lands to the Department of Hawaiian Homes Lands that
are equivalent in value to lands acquired by the United States from the
Hawaiian Home Lands inventory.
SEC. 3. HOUSING ASSISTANCE.
The Native American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4101 et seq.) is amended by adding at the end the following:
`TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS
`SEC. 801. DEFINITIONS.
`(1) DEPARTMENT OF HAWAIIAN HOME LANDS; DEPARTMENT- The term `Department
of Hawaiian Home Lands' or `Department' means the agency or department of
the government of the State of Hawaii that is responsible for the
administration of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et
seq.).
`(2) DIRECTOR- The term `Director' means the Director of the Department
of Hawaiian Home Lands.
`(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMILIES-
`(A) IN GENERAL- The term `elderly family' or `near-elderly family'
means a family whose head (or his or her spouse), or whose sole member,
is--
`(i) for an elderly family, an elderly person; or
`(ii) for a near-elderly family, a near-elderly person.
`(B) CERTAIN FAMILIES INCLUDED- The term `elderly family' or
`near-elderly family' includes--
`(i) 2 or more elderly persons or near-elderly persons, as the case
may be, living together; and
`(ii) 1 or more persons described in clause (i) living with 1 or
more persons determined under the housing plan to be essential to their
care or well-being.
`(4) HAWAIIAN HOME LANDS- The term `Hawaiian Home Lands' means lands
that--
`(A) have the status as Hawaiian home lands under section 204 of the
Hawaiian Homes Commission Act (42 Stat. 110); or
`(B) are acquired pursuant to that Act.
`(5) HOUSING AREA- The term `housing area' means an area of Hawaiian
Home Lands with respect to which the Department of Hawaiian Home Lands is
authorized to provide assistance for affordable housing under this
Act.
`(6) HOUSING ENTITY- The term `housing entity' means the Department of
Hawaiian Home Lands.
`(7) HOUSING PLAN- The term `housing plan' means a plan developed by the
Department of Hawaiian Home Lands.
`(8) MEDIAN INCOME- The term `median income' means, with respect to an
area that is a Hawaiian housing area, the greater of--
`(A) the median income for the Hawaiian housing area, which shall be
determined by the Secretary; or
`(B) the median income for the State of Hawaii.
`(9) NATIVE HAWAIIAN- The term `Native Hawaiian' has the meaning given
the term `Native Hawaiian' in section 201 of the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108 et seq.).
`SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING ACTIVITIES.
`(a) GRANT AUTHORITY- For each fiscal year, the Secretary shall (to the
extent amounts are made available to carry out this title) make a grant under
this title to the Department of Hawaiian Home Lands to carry out affordable
housing activities for Native Hawaiian families on or near Hawaiian Home
Lands.
`(1) IN GENERAL- The Secretary may make a grant under this title to the
Department of Hawaiian Home Lands for a fiscal year only if--
`(A) the Director has submitted to the Secretary a housing plan for
that fiscal year; and
`(B) the Secretary has determined under section 804 that the housing
plan complies with the requirements of section 803.
`(2) WAIVER- The Secretary may waive the applicability of the
requirements under paragraph (1), in part, if the Secretary finds that the
Department of Hawaiian Home Lands has not complied or cannot comply with
those requirements due to circumstances beyond the control of the Department
of Hawaiian Home Lands.
`(c) USE OF AFFORDABLE HOUSING ACTIVITIES UNDER PLAN- Except as provided
in subsection (e), amounts provided under a grant under this section may be
used only for affordable housing activities under this title that are
consistent with a housing plan approved under section 804.
`(d) ADMINISTRATIVE EXPENSES-
`(1) IN GENERAL- The Secretary shall, by regulation, authorize the
Department of Hawaiian Home Lands to use a percentage of any grant amounts
received under this title for any reasonable administrative and planning
expenses of the Department relating to carrying out this title and
activities assisted with those amounts.
`(2) ADMINISTRATIVE AND PLANNING EXPENSES- The administrative and
planning expenses referred to in paragraph (1) include--
`(A) costs for salaries of individuals engaged in administering and
managing affordable housing activities assisted with grant amounts
provided under this title; and
`(B) expenses incurred in preparing a housing plan under section
803.
`(e) PUBLIC-PRIVATE PARTNERSHIPS- The Director shall make all reasonable
efforts, consistent with the purposes of this title, to maximize participation
by the private sector, including nonprofit organizations and for-profit
entities, in implementing a housing plan that has been approved by the
Secretary under section 803.
`(f) APPLICABILITY OF OTHER PROVISIONS-
`(1) IN GENERAL- The Secretary shall be guided by the relevant program
requirements of titles I, II, and IV in the implementation of housing
assistance programs for Native Hawaiians under this title.
`(2) EXCEPTION- The Secretary may make exceptions to, or modifications
of, program requirements for Native American housing assistance set forth in
titles I, II, and IV as necessary and appropriate to meet the unique
situation and housing needs of Native Hawaiians.
`SEC. 803. HOUSING PLAN.
`(a) PLAN SUBMISSION- The Secretary shall--
`(1) require the Director to submit a housing plan under this section
for each fiscal year; and
`(2) provide for the review of each plan submitted under paragraph
(1).
`(b) 5-YEAR PLAN- Each housing plan under this section shall--
`(1) be in a form prescribed by the Secretary; and
`(2) contain, with respect to the 5-year period beginning with the
fiscal year for which the plan is submitted, the following
information:
`(A) MISSION STATEMENT- A general statement of the mission of the
Department of Hawaiian Home Lands to serve the needs of the low-income
families to be served by the Department.
`(B) GOAL AND OBJECTIVES- A statement of the goals and objectives of
the Department of Hawaiian Home Lands to enable the Department to serve
the needs identified in subparagraph (A) during the period.
`(C) ACTIVITIES PLANS- An overview of the activities planned during
the period including an analysis of the manner in which the activities
will enable the Department to meet its mission, goals, and
objectives.
`(c) 1-YEAR PLAN- A housing plan under this section shall--
`(1) be in a form prescribed by the Secretary; and
`(2) contain the following information relating to the fiscal year for
which the assistance under this title is to be made available:
`(A) GOALS AND OBJECTIVES- A statement of the goals and objectives to
be accomplished during the period covered by the plan.
`(B) STATEMENT OF NEEDS- A statement of the housing needs of the
low-income families served by the Department and the means by which those
needs will be addressed during the period covered by the plan,
including--
`(i) a description of the estimated housing needs and the need for
assistance for the low-income families to be served by the Department,
including a description of the manner in which the geographical
distribution of assistance is consistent with--
`(I) the geographical needs of those families; and
`(II) needs for various categories of housing assistance;
and
`(ii) a description of the estimated housing needs for all families
to be served by the Department.
`(C) FINANCIAL RESOURCES- An operating budget for the Department of
Hawaiian Home Lands, in a form prescribed by the Secretary, that
includes--
`(i) an identification and a description of the financial resources
reasonably available to the Department to carry out the purposes of this
title, including an explanation of the manner in which amounts made
available will be used to leverage additional resources; and
`(ii) the uses to which the resources described in clause (i) will
be committed, including--
`(I) eligible and required affordable housing activities;
and
`(II) administrative expenses.
`(D) AFFORDABLE HOUSING RESOURCES- A statement of the affordable
housing resources currently available at the time of the submittal of the
plan and to be made available during the period covered by the plan,
including--
`(i) a description of the significant characteristics of the housing
market in the State of Hawaii, including the availability of housing
from other public sources, private market housing; and
`(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--
`(II) the production of new units;
`(III) the acquisition of existing units; or
`(IV) the rehabilitation of units;
`(iii) a description of the structure, coordination, and means of
cooperation between the Department of Hawaiian Home Lands and any other
governmental entities in the development, submission, or implementation
of housing plans, including a description of--
`(I) the involvement of private, public, and nonprofit
organizations and institutions;
`(II) the use of loan guarantees under section 184A of the Housing
and Community Development Act of 1992; and
`(III) other housing assistance provided by the United States,
including loans, grants, and mortgage insurance;
`(iv) a description of the manner in which the plan will address the
needs identified pursuant to subparagraph (C);
`(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);
`(I) any existing or anticipated housing rehabilitation programs
necessary to ensure the long-term viability of the housing to be
carried out during the period covered by the plan; and
`(II) the requirements and assistance available under the programs
referred to in subclause (I);
`(vii) a description of--
`(I) all other existing or anticipated housing assistance provided
by the Department of Hawaiian Home Lands during the period covered by
the plan, including--
`(aa) transitional housing;
`(bb) homeless housing;
`(cc) college housing; and
`(dd) supportive services housing; and
`(II) the requirements and assistance available under such
programs;
`(viii)(I) a description of any housing to be demolished or disposed
of;
`(II) a timetable for that demolition or disposition;
and
`(III) any other information required by the Secretary with respect
to that demolition or disposition;
`(ix) a description of the manner in which the Department of
Hawaiian Home Lands will coordinate with welfare agencies in the State
of Hawaii to ensure that residents of the affordable housing will be
provided with access to resources to assist in obtaining employment and
achieving self-sufficiency;
`(x) a description of the requirements established by the Department
of Hawaiian Home Lands to--
`(I) promote the safety of residents of the affordable
housing;
`(II) facilitate the undertaking of crime prevention
measures;
`(III) allow resident input and involvement, including the
establishment of resident organizations; and
`(IV) allow for the coordination of crime prevention activities
between the Department and local law enforcement officials;
and
`(xi) a description of the entities that will carry out the
activities under the plan, including the organizational capacity and key
personnel of the entities.
`(E) CERTIFICATION OF COMPLIANCE- Evidence of compliance that shall
include, as appropriate--
`(i) a certification that the Department of Hawaiian Home Lands will
comply with--
`(I) title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.) or with title VIII of the Civil Rights Act of 1968 (42 U.S.C.
3601 et seq.) in carrying out this title, to the extent that such
title is applicable; and
`(II) other applicable Federal statutes;
`(ii) a certification that the Department will require adequate
insurance coverage for housing units that are owned and operated or
assisted with grant amounts provided under this title, in compliance
with such requirements as may be established by the
Secretary;
`(iii) a certification that policies are in effect and are available
for review by the Secretary and the public governing the eligibility,
admission, and occupancy of families for housing assisted with grant
amounts provided under this title;
`(iv) a certification that policies are in effect and are available
for review by the Secretary and the public governing rents charged,
including the methods by which such rents or homebuyer payments are
determined, for housing assisted with grant amounts provided under this
title; and
`(v) a certification that policies are in effect and are available
for review by the Secretary and the public governing the management and
maintenance of housing
assisted with grant amounts provided under this title.
`(d) APPLICABILITY OF CIVIL RIGHTS STATUTES-
`(1) IN GENERAL- To the extent that the requirements of title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of title VIII of the
Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.) apply to assistance
provided under this title, nothing in the requirements concerning
discrimination on the basis of race shall be construed to prevent the
provision of assistance under this title--
`(A) to the Department of Hawaiian Home Lands on the basis that the
Department served Native Hawaiians; or
`(B) to an eligible family on the basis that the family is a Native
Hawaiian family.
`(2) CIVIL RIGHTS- Program eligibility under this title may be
restricted to Native Hawaiians. Subject to the preceding sentence, no person
may be discriminated against on the basis of race, color, national origin,
religion, sex, familial status, or disability.
`(e) USE OF NONPROFIT ORGANIZATIONS- As a condition of receiving grant
amounts under this title, the Department of Hawaiian Home Lands shall, to the
extent practicable, provide for private nonprofit organizations experienced in
the planning and development of affordable housing for Native Hawaiians to
carry out affordable housing activities with those grant amounts.
`SEC. 804. REVIEW OF PLANS.
`(A) IN GENERAL- The Secretary shall conduct a review of a housing
plan submitted to the Secretary under section 803 to ensure that the plan
complies with the requirements of that section.
`(B) LIMITATION- The Secretary shall have the discretion to review a
plan referred to in subparagraph (A) only to the extent that the Secretary
considers that the review is necessary.
`(A) IN GENERAL- Not later than 60 days after receiving a plan under
section 803, the Secretary shall notify the Director of the Department of
Hawaiian Home Lands whether the plan complies with the requirements under
that section.
`(B) EFFECT OF FAILURE OF SECRETARY TO TAKE ACTION- For purposes of
this title, if the Secretary does not notify the Director, as required
under this subsection and subsection (b), upon the expiration of the
60-day period described in subparagraph (A)--
`(i) the plan shall be considered to have been determined to comply
with the requirements under section 803; and
`(ii) the Director shall be considered to have been notified of
compliance.
`(b) NOTICE OF REASONS FOR DETERMINATION OF NONCOMPLIANCE- If the
Secretary determines that a plan submitted under section 803 does not comply
with the requirements of that section, the Secretary shall specify in the
notice under subsection (a)--
`(1) the reasons for noncompliance; and
`(2) any modifications necessary for the plan to meet the requirements
of section 803.
`(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.
`(1) IN GENERAL- Subject to paragraph (2), after a plan under section
803 has been submitted for a fiscal year, the head of the Department of
Hawaiian Home Lands may comply with the provisions of that section for any
succeeding fiscal year (with respect to information included for the 5-year
period under section 803(b) or for the 1-year period under section 803(c))
by submitting only such information regarding such changes as may be
necessary to update the plan previously submitted.
`(2) COMPLETE PLANS- The Director shall submit a complete plan under
section 803 not later than 4 years after submitting an initial plan under
that section, and not less frequently than every 4 years thereafter.
`(e) EFFECTIVE DATE- This section and section 803 shall take effect on the
date provided by the Secretary pursuant to section 807(a) to provide for
timely submission and review of the housing plan as necessary for the
provision of assistance under this title for fiscal year 2000.
`SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.
`(1) AUTHORITY TO RETAIN- The Department of Hawaiian Home Lands may
retain any program income that is realized from any grant amounts received
by the Department under this title if--
`(A) that income was realized after the initial disbursement of the
grant amounts received by the Department; and
`(B) the Director agrees to use the program income for affordable
housing activities in accordance with the provisions of this
title.
`(2) PROHIBITION OF REDUCTION OF GRANT- The Secretary may not reduce the
grant amount for
the Department of Hawaiian Home Lands based solely on--
`(A) whether the Department retains program income under paragraph
(1); or
`(B) the amount of any such program income retained.
`(3) EXCLUSION OF AMOUNTS- The Secretary may, by regulation, exclude
from consideration as program income any amounts determined to be so small
that compliance with the requirements of this subsection would create an
unreasonable administrative burden on the Department.
`(1) IN GENERAL- Any contract or agreement for assistance, sale, or
lease pursuant to this title shall contain--
`(A) a provision requiring that an amount not less than the wages
prevailing in the locality, as determined or adopted (subsequent to a
determination under applicable State or local law) by the Secretary, shall
be paid to all architects, technical engineers, draftsmen, technicians
employed in the development and all maintenance, and laborers and
mechanics employed in the operation, of the affordable housing project
involved; and
`(B) a provision that an amount not less than the wages prevailing in
the locality, as predetermined by the Secretary of Labor pursuant to the
Act commonly known as the `Davis-Bacon Act' (46 Stat. 1494, chapter 411;
40 U.S.C. 276a et seq.) shall be paid to all laborers and mechanics
employed in the development of the affordable housing involved.
`(2) EXCEPTIONS- Paragraph (1) and provisions relating to wages required
under paragraph (1) in any contract or agreement for assistance, sale, or
lease under this title, shall not apply to any individual who performs the
services for which the individual volunteered and who is not otherwise
employed at any time in the construction work and received no compensation
or is paid expenses, reasonable benefits, or a nominal fee for those
services.
`SEC. 806. ENVIRONMENTAL REVIEW.
`(A) IN GENERAL- The Secretary may carry out the alternative
environmental protection procedures described in subparagraph (B) in order
to ensure--
`(i) that the policies of the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) and other provisions of law that further
the purposes of such Act (as specified in regulations issued by the
Secretary) are most effectively implemented in connection with the
expenditure of grant amounts provided under this title; and
`(ii) to the public undiminished protection of the
environment.
`(B) ALTERNATIVE ENVIRONMENTAL PROTECTION PROCEDURE- In lieu of
applying environmental protection procedures otherwise applicable, the
Secretary may by regulation provide for the release of funds for specific
projects to the Department of Hawaiian Home Lands if the Director of the
Department assumes all of the responsibilities for environmental review,
decisionmaking, and action under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), and such other provisions of law as the
regulations of the Secretary specify, that would apply to the Secretary
were the Secretary to undertake those projects as Federal
projects.
`(A) IN GENERAL- The Secretary shall issue regulations to carry out
this section only after consultation with the Council on Environmental
Quality.
`(B) CONTENTS- The regulations issued under this paragraph
shall--
`(i) provide for the monitoring of the environmental reviews
performed under this section;
`(ii) in the discretion of the Secretary, facilitate training for
the performance of such reviews; and
`(iii) provide for the suspension or termination of the assumption
of responsibilities under this section.
`(3) EFFECT ON ASSUMED RESPONSIBILITY- The duty of the Secretary under
paragraph (2)(B) shall not be construed to limit or reduce any
responsibility assumed by the Department of Hawaiian Home Lands for grant
amounts with respect to any specific release of funds.
`(1) IN GENERAL- The Secretary shall authorize the release of funds
subject to the procedures under this section only if, not less than 15 days
before that approval and before any commitment of funds to such projects,
the Director of the Department of Hawaiian Home Lands submits to the
Secretary a request for such release accompanied by a certification that
meets the requirements of subsection (c).
`(2) EFFECT OF APPROVAL- The approval of the Secretary of a
certification described in paragraph (1) shall be deemed to satisfy the
responsibilities of the Secretary under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) and such other provisions of law as the
regulations of the Secretary specify to the extent that those
responsibilities relate to the releases of funds for projects that are
covered by that certification.
`(c) CERTIFICATION- A certification under the procedures under this
section shall--
`(1) be in a form acceptable to the Secretary;
`(2) be executed by the Director of the Department of Hawaiian Home
Lands;
`(3) specify that the Department of Hawaiian Home Lands has fully
carried out its responsibilities as described under subsection (a);
and
`(4) specify that the Director--
`(A) consents to assume the status of a responsible Federal official
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) and each provision of law specified in regulations issued by the
Secretary to the extent that those laws apply by reason of subsection (a);
and
`(B) is authorized and consents on behalf of the Department of
Hawaiian Home Lands and the Director to accept the jurisdiction of the
Federal courts for the purpose of enforcement of the responsibilities of
the Director of the Department of Hawaiian Home Lands as such an
official.
`SEC. 807. REGULATIONS.
`The Secretary shall issue final regulations necessary to carry out this
title not later than October 1, 1999.
`SEC. 808. EFFECTIVE DATE.
`Except as otherwise expressly provided in this title, this title shall
take effect on October 1, 1999.
`SEC. 809. AFFORDABLE HOUSING ACTIVITIES.
`(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES-
`(1) PRIMARY OBJECTIVE- The national objectives of this title
are--
`(A) to assist and promote affordable housing activities to develop,
maintain, and operate affordable housing in safe and healthy environments
for occupancy by low-income Native Hawaiian families;
`(B) to ensure better access to private mortgage markets and to
promote self-sufficiency of low-income Native Hawaiian families;
`(C) to coordinate activities to provide housing for low-income Native
Hawaiian families with Federal, State and local activities to further
economic and community development;
`(D) to plan for and integrate infrastructure resources on the
Hawaiian Home Lands with housing development; and
`(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.
`(A) IN GENERAL- Except as provided under subparagraph (B), assistance
for eligible housing activities under this title shall be limited to
low-income Native Hawaiian families.
`(B) EXCEPTION TO LOW-INCOME REQUIREMENT-
`(i) IN GENERAL- The Director may provide assistance for
homeownership activities under--
`(II) model activities under section 810(f); or
`(III) loan guarantee activities under section 184A of the Housing
and Community Development Act of 1992 to Native Hawaiian families who
are not low-income families, to the extent that the Secretary approves
the activities under that section to address a need for housing for
those families that cannot be reasonably met without that
assistance.
`(ii) LIMITATIONS- The Secretary shall establish limitations on the
amount of assistance that may be provided under this title for
activities for families that are not low-income families.
`(C) OTHER FAMILIES- Notwithstanding paragraph (1), the Director may
provide housing or housing assistance provided through affordable housing
activities assisted with grant amounts under this title to a family that
is not composed of Native Hawaiians if--
`(i) the Department determines that the presence of the family in
the housing involved is essential to the well-being of Native Hawaiian
families; and
`(ii) the need for housing for the family cannot be reasonably met
without the assistance.
`(i) IN GENERAL- A housing plan submitted under section 803 may
authorize a preference, for housing or housing assistance provided
through affordable housing activities assisted with grant amounts
provided under this title to be provided, to the extent practicable, to
families that are eligible to reside on the Hawaiian Home
Lands.
`(ii) APPLICATION- In any case in which a housing plan provides for
preference described in clause (i), the Director shall ensure that
housing activities that are assisted with grant amounts under this title
are subject to that preference.
`(E) USE OF NONPROFIT ORGANIZATIONS- As a condition of receiving grant
amounts under this title, the Department of Hawaiian Home Lands, shall to
the extent practicable, provide for private nonprofit organizations
experienced in the planning and development of affordable housing for
Native Hawaiians to carry out affordable housing activities with those
grant amounts.
`SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
`(a) IN GENERAL- Affordable housing activities under this section are
activities conducted in accordance with the requirements of section 811
to--
`(1) develop or to support affordable housing for rental or
homeownership; or
`(2) provide housing services with respect to affordable housing,
through the activities described in subsection (b).
`(b) ACTIVITIES- The activities described in this subsection are the
following:
`(1) DEVELOPMENT- The acquisition, new construction, reconstruction, or
moderate or substantial rehabilitation of affordable housing, which may
include--
`(A) real property acquisition;
`(C) the development of utilities and utility services;
`(G) administration and planning; and
`(H) other related activities.
`(2) HOUSING SERVICES- The provision of housing-related services for
affordable housing, including--
`(A) housing counseling in connection with rental or homeownership
assistance;
`(B) the establishment and support of resident organizations and
resident management corporations;
`(D) activities related to the provisions of self-sufficiency and
other services; and
`(E) other services related to assisting owners, tenants, contractors,
and other entities participating or seeking to participate in other
housing activities assisted pursuant to this section.
`(3) HOUSING MANAGEMENT SERVICES- The provision of management services
for affordable housing, including--
`(A) the preparation of work specifications;
`(E) management of tenant-based rental assistance; and
`(F) management of affordable housing projects.
`(4) CRIME PREVENTION AND SAFETY ACTIVITIES- The provision of safety,
security, and law enforcement measures and activities appropriate to protect
residents of affordable housing from crime.
`(5) MODEL ACTIVITIES- Housing activities under model programs that
are--
`(A) designed to carry out the purposes of this title; and
`(B) specifically approved by the Secretary as appropriate for the
purpose referred to in subparagraph (A).
`SEC. 811. PROGRAM REQUIREMENTS.
`(1) ESTABLISHMENT- Subject to paragraph (2), as a condition to
receiving grant amounts under this title, the Director shall develop written
policies governing rents and homebuyer payments charged for dwelling units
assisted under this title, including methods by which such rents and
homebuyer payments are determined.
`(2) MAXIMUM RENT- In the case of any low-income family residing in a
dwelling unit assisted with grant amounts under this title, the monthly rent
or homebuyer payment (as applicable) for that dwelling unit may not exceed
30 percent of the monthly adjusted income of that family.
`(b) MAINTENANCE AND EFFICIENT OPERATION-
`(1) IN GENERAL- The Director shall, using amounts of any grants
received under this title, reserve and use for operating under section 810
such amounts as may be necessary to provide for the continued maintenance
and efficient operation of such housing.
`(2) DISPOSAL OF CERTAIN HOUSING- This subsection may not be construed
to prevent the Director, or any entity funded by the Department, from
demolishing or disposing of housing, pursuant to regulations established by
the Secretary.
`(c) INSURANCE COVERAGE- As a condition to receiving grant amounts under
this title, the Director shall require adequate insurance coverage for housing
units that are owned or operated or assisted with grant amounts provided under
this title.
`(d) ELIGIBILITY FOR ADMISSION- As a condition to receiving grant amounts
under this title, the Director shall develop written policies governing the
eligibility, admission, and occupancy of families for housing assisted with
grant amounts provided under this title.
`(e) MANAGEMENT AND MAINTENANCE- As a condition to receiving grant amounts
under this title, the Director shall develop policies governing the management
and maintenance of housing assisted with grant amounts under this title.
`SEC. 812. TYPES OF INVESTMENTS.
`(a) IN GENERAL- Subject to section 811 and an applicable housing plan
approved under section 803, the Director shall have--
`(1) the discretion to use grant amounts for affordable housing
activities through the use of--
`(B) interest-bearing loans or advances;
`(C) noninterest-bearing loans or advances;
`(E) the leveraging of private investments; or
`(F) any other form of assistance that the Secretary determines to be
consistent with the purposes of this title; and
`(2) the right to establish the terms of assistance provided with funds
referred to in paragraph (1).
`(b) INVESTMENTS- The Director may invest grant amounts for the purposes
of carrying out affordable housing activities in investment securities and
other obligations, as approved by the Secretary.
`SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.
`(a) IN GENERAL- Housing shall qualify for affordable housing for purposes
of this title only if--
`(1) each dwelling unit in the housing--
`(A) in the case of rental housing, is made available for occupancy
only by a family that is a low-income family at the time of the initial
occupancy of that family of that unit; and
`(B) in the case of housing for homeownership, is made available for
purchase only by a family that is a low-income family at the time of
purchase; and
`(2) each dwelling unit in the housing will remain affordable, according
to binding commitments satisfactory to the Secretary, for--
`(A) the remaining useful life of the property (as determined by the
Secretary) without regard to the term of the mortgage or to transfer of
ownership; or
`(B) such other period as the Secretary determines is the longest
feasible period of time consistent with sound economics and the purposes
of this title, except upon a foreclosure by a lender (or upon other
transfer in lieu of foreclosure) if that action--
`(i) recognizes any contractual or legal rights of any public
agency, nonprofit sponsor, or other person or entity to take an action
that would--
`(I) avoid termination of low-income affordability, in the case of
foreclosure; or
`(II) transfer ownership in lieu of foreclosure;
and
`(ii) is not for the purpose of avoiding low-income affordability
restrictions, as determined by the Secretary.
`(b) EXCEPTION- Notwithstanding subsection (a), housing assisted pursuant
to section 809(a)(2)(B) shall be considered affordable housing for purposes of
this title.
`SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.
`(a) LEASES- Except to the extent otherwise provided by or inconsistent
with the laws of the State of Hawaii, in renting dwelling units in affordable
housing assisted with grant amounts provided under this title, the Director,
owner, or manager shall use leases that--
`(1) do not contain unreasonable terms and conditions;
`(2) require the Director, owner, or manager to maintain the housing in
compliance with applicable housing codes and quality standards;
`(3) require the Director, owner, or manager to give adequate written
notice of termination of the lease, which shall be the period of time
required under applicable State or local law;
`(4) specify that, with respect to any notice of eviction or
termination, notwithstanding any State or local law, a resident shall be
informed of the opportunity, before any hearing or trial, to examine any
relevant documents, record, or regulations directly related to the eviction
or termination;
`(5) require that the Director, owner, or manager may not terminate the
tenancy, during the term of the lease, except for serious or repeated
violation of the terms and conditions of the lease, violation of applicable
Federal, State, or local law, or for other good cause; and
`(6) provide that the Director, owner, and manager may terminate the
tenancy of a resident for any activity, engaged in by the resident, any
member of the household of the resident, or any guest or other person under
the control of the resident, that--
`(A) threatens the health or safety of, or right to peaceful enjoyment
of the premises by, other residents or employees of the Department, owner,
or manager;
`(B) threatens the health or safety of, or right to peaceful enjoyment
of their premises by, persons residing in the immediate vicinity of the
premises; or
`(C) is criminal activity (including drug-related criminal activity)
on or off the premises.
`(b) TENANT OR HOMEBUYER SELECTION- As a condition to receiving grant
amounts under this title, the Director shall adopt and use written tenant and
homebuyer selection policies and criteria that--
`(1) are consistent with the purpose of providing housing for low-income
families;
`(2) are reasonably related to program eligibility and the ability of
the applicant to perform the obligations of the lease; and
`(A) the selection of tenants and homebuyers from a written waiting
list in accordance with the policies and goals set forth in an applicable
housing plan approved under section 803; and
`(B) the prompt notification in writing of any rejected applicant of
the grounds for that rejection.
`SEC. 815. REPAYMENT.
`If the Department of Hawaiian Home Lands uses grant amounts to provide
affordable housing under activities under this title and, at any time during
the useful life of the housing, the housing does not comply with the
requirement under section 813(a)(2), the Secretary shall--
`(1) reduce future grant payments on behalf of the Department by an
amount equal to the grant amounts used for that housing (under the authority
of section 819(a)(2)); or
`(2) require repayment to the Secretary of any amount equal to those
grant amounts.
`SEC. 816. ANNUAL ALLOCATION.
`For each fiscal year, the Secretary shall allocate any amounts made
available for assistance under this title for the fiscal year, in accordance
with the formula established pursuant to section 817 to the Department of
Hawaiian Home Lands if the Department complies with the requirements under
this title for a grant under this title.
`SEC. 817. ALLOCATION FORMULA.
`(a) ESTABLISHMENT- The Secretary shall, by regulation issued not later
than the expiration of the 6-month period beginning on the date of enactment
of the Native American Housing Assistance and Self-Determination Amendments of
1999, in the manner provided under section 807, establish a formula to provide
for the allocation of amounts available for a fiscal year for block grants
under this title in accordance with the requirements of this section.
`(b) FACTORS FOR DETERMINATION OF NEED- The formula under subsection (a)
shall be based on factors that reflect the needs for assistance for affordable
housing activities, including--
`(1) the number of low-income dwelling units owned or operated at the
time pursuant to a contract between the Director and the Secretary;
`(2) the extent of poverty and economic distress and the number of
Native Hawaiian families eligible to reside on the Hawaiian Home Lands;
and
`(3) any other objectively measurable conditions that the Secretary and
the Director may specify.
`(c) OTHER FACTORS FOR CONSIDERATION- In establishing the formula under
subsection (a), the Secretary shall consider the relative administrative
capacities of the Department of Hawaiian Home Lands and other challenges faced
by the Department, including--
`(1) geographic distribution within Hawaiian Home Lands; and
`(d) EFFECTIVE DATE- This section shall take effect on the date of
enactment of the Native American Housing Assistance and Self-Determination
Amendments of 1999.
`SEC. 818. REMEDIES FOR NONCOMPLIANCE.
`(a) ACTIONS BY SECRETARY AFFECTING GRANT AMOUNTS-
`(1) IN GENERAL- Except as provided in subsection (b), if the Secretary
finds after reasonable notice and opportunity for a hearing that the
Department of Hawaiian Home Lands has failed to comply substantially with
any provision of this title, the Secretary shall--
`(A) terminate payments under this title to the Department;
`(B) reduce payments under this title to the Department by an amount
equal to the amount of such payments that were not expended in accordance
with this title; or
`(C) limit the availability of payments under this title to programs,
projects, or activities not affected by such failure to comply.
`(2) ACTIONS- If the Secretary takes an action under subparagraph (A),
(B), or (C) of paragraph (1), the Secretary shall continue that action until
the Secretary determines that the failure by the Department to comply with
the provision has been remedied by the Department and the Department is in
compliance with that provision.
`(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL INCAPACITY- The Secretary may
provide technical assistance for the Department, either directly or
indirectly, that is designed to increase the capability and capacity of the
Director of the Department to administer assistance provided under this title
in compliance with the requirements under this title if the Secretary makes a
finding under subsection (a), but determines that the failure of the
Department to comply substantially with the provisions of this title--
`(1) is not a pattern or practice of activities constituting willful
noncompliance; and
`(2) is a result of the limited capability or capacity of the Department
of Hawaiian Home Lands.
`(c) REFERRAL FOR CIVIL ACTION-
`(1) AUTHORITY- In lieu of, or in addition to, any action that the
Secretary may take under subsection (a), if the Secretary has reason to
believe that the Department of Hawaiian Home Lands has failed to comply
substantially with any provision of this title, the Secretary may refer the
matter to the Attorney General of the United States with a recommendation
that an appropriate civil action be instituted.
`(2) CIVIL ACTION- Upon receiving a referral under paragraph (1), the
Attorney General may bring a civil action in any United States district
court of appropriate jurisdiction for such relief as may be appropriate,
including an action--
`(A) to recover the amount of the assistance furnished under this
title that was not expended in accordance with this title; or
`(B) for mandatory or injunctive relief.
`(1) IN GENERAL- If the Director receives notice under subsection (a) of
the termination, reduction, or limitation of payments under this Act, the
Director--
`(A) may, not later than 60 days after receiving such notice, file
with the United States Court of Appeals for the Ninth Circuit, or in the
United States Court of Appeals for the District of Columbia, a petition
for review of the action of the Secretary; and
`(B) upon the filing of any petition under subparagraph (A), shall
forthwith transmit copies of the petition to the Secretary and the
Attorney General of the United States, who shall represent the Secretary
in the litigation.
`(A) IN GENERAL- The Secretary shall file in the court a record of the
proceeding on which the Secretary based the action, as provided in section
2112 of title 28, United States Code.
`(B) OBJECTIONS- No objection to the action of the Secretary shall be
considered by the court unless the Department has registered the objection
before the Secretary.
`(i) JURISDICTION OF COURT- The court shall have jurisdiction to
affirm or modify the action of the Secretary or to set the action aside
in whole or in part.
`(ii) FINDINGS OF FACT- If supported by substantial evidence on the
record considered as a whole, the findings of fact by the Secretary
shall be conclusive.
`(iii) ADDITION- The court may order evidence, in addition to the
evidence submitted for review under this subsection, to be taken by the
Secretary, and to be made part of the record.
`(i) IN GENERAL- The Secretary, by reason of the additional evidence
referred to in subparagraph (A) and filed with the court--
`(aa) modify the findings of fact of the Secretary; or
`(bb) make new findings; and
`(aa) such modified or new findings; and
`(bb) the recommendation of the Secretary, if any, for the
modification or setting aside of the original action of the Secretary.
`(ii) FINDINGS- The findings referred to in clause (i)(II)(bb)
shall, with respect to a question of fact, be considered to be
conclusive if those findings are--
`(I) supported by substantial evidence on the record;
and
`(II) considered as a whole.
`(A) IN GENERAL- Except as provided in subparagraph (B), upon the
filing of the record under this subsection with the court--
`(i) the jurisdiction of the court shall be exclusive;
and
`(ii) the judgment of the court shall be final.
`(B) REVIEW BY SUPREME COURT- A judgment under subparagraph (A) shall
be subject to review by the Supreme Court of the United States upon writ
of certiorari or certification, as provided in section 1254 of title 28,
United States Code.
`SEC. 819. MONITORING OF COMPLIANCE.
`(a) ENFORCEABLE AGREEMENTS-
`(1) IN GENERAL- The Director, through binding contractual agreements
with owners or other authorized entities, shall ensure long-term compliance
with the provisions of this title.
`(2) MEASURES- The measures referred to in paragraph (1) shall provide
for--
`(A) to the extent allowable by Federal and State law, the enforcement
of the provisions of this title by the Department and the Secretary;
and
`(B) remedies for breach of the provisions referred to in paragraph
(1).
`(b) PERIODIC MONITORING-
`(1) IN GENERAL- Not less frequently than annually, the Director shall
review the activities conducted and housing assisted under this title to
assess compliance with the requirements of this title.
`(2) REVIEW- Each review under paragraph (1) shall include onsite
inspection of housing to determine compliance with applicable
requirements.
`(3) RESULTS- The results of each review under paragraph (1) shall
be--
`(A) included in a performance report of the Director submitted to the
Secretary under section 820; and
`(B) made available to the public.
`(c) PERFORMANCE MEASURES- The Secretary shall establish such performance
measures as may be necessary to assess compliance with the requirements of
this title.
`SEC. 820. PERFORMANCE REPORTS.
`(a) REQUIREMENT- For each fiscal year, the Director shall--
`(1) review the progress the Department has made during that fiscal year
in carrying out the housing plan submitted by the Department under section
803; and
`(2) submit a report to the Secretary (in a form acceptable to the
Secretary) describing the conclusions of the review.
`(b) CONTENT- Each report submitted under this section for a fiscal year
shall--
`(1) describe the use of grant amounts provided to the Department of
Hawaiian Home Lands for that fiscal year;
`(2) assess the relationship of the use referred to in paragraph (1) to
the goals identified in the housing plan;
`(3) indicate the programmatic accomplishments of the Department;
and
`(4) describe the manner in which the Department would change its
housing plan submitted under section 803 as a result of its
experiences.
`(c) SUBMISSIONS- The Secretary shall--
`(1) establish a date for submission of each report under this
section;
`(2) review each such report; and
`(3) with respect to each such report, make recommendations as the
Secretary considers appropriate to carry out the purposes of this
title.
`(d) PUBLIC AVAILABILITY-
`(1) COMMENTS BY BENEFICIARIES- In preparing a report under this
section, the Director shall make the report publicly available to the
beneficiaries of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et
seq.) and give a sufficient amount of time to permit those beneficiaries to
comment on that report before it is submitted to the Secretary (in such
manner and at such time as the Director may determine).
`(2) SUMMARY OF COMMENTS- The report shall include a summary of any
comments received by the Director from beneficiaries under paragraph (1)
regarding the program to carry out the housing plan.
`SEC. 821. REVIEW AND AUDIT BY SECRETARY.
`(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--
`(i) carried out eligible activities under this title in a timely
manner;
`(ii) carried out and made certifications in accordance with the
requirements and the primary objectives of this title and with other
applicable laws; and
`(iii) a continuing capacity to carry out the eligible activities in
a timely manner;
`(B) the Director has complied with the housing plan submitted by the
Director under section 803; and
`(C) the performance reports of the Department under section 821 are
accurate.
`(2) ONSITE VISITS- Each review conducted under this section shall, to
the extent practicable, include onsite visits by employees of the Department
of Housing and Urban Development.
`(b) REPORT BY SECRETARY- The Secretary shall give the Department of
Hawaiian Home Lands not less than 30 days to review and comment on a report
under this subsection. After taking into consideration the comments of the
Department, the Secretary may revise the report and shall make the comments of
the Department and the report with any revisions, readily available to the
public not later than 30 days after receipt of the comments of the
Department.
`(c) EFFECT OF REVIEWS- The Secretary may make appropriate adjustments in
the amount of annual grants under this title in accordance with the findings
of the Secretary pursuant to reviews and audits under this section. The
Secretary may adjust, reduce, or withdraw grant amounts, or take other action
as appropriate in accordance with the reviews and audits of the Secretary
under this section, except that grant amounts already expended on affordable
housing activities may not be recaptured or deducted from future assistance
provided to the Department of Hawaiian Home Lands.
`SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.
`To the extent that the financial transactions of the Department of
Hawaiian Home Lands involving grant amounts under this title relate to amounts
provided under this title, those transactions may be audited by the
Comptroller General of the United States under such regulations as may be
prescribed by the Comptroller General. The Comptroller General of the United
States shall have access to all books, accounts, records, reports, files, and
other papers, things, or property belonging to or in use by the Department of
Hawaiian Home Lands pertaining to such financial transactions and necessary to
facilitate the audit.
`SEC. 823. REPORTS TO CONGRESS.
`(a) IN GENERAL- Not later than 90 days after the conclusion of each
fiscal year in which assistance under this title is made available, the
Secretary shall submit to the Congress a report that contains--
`(1) a description of the progress made in accomplishing the objectives
of this title;
`(2) a summary of the use of funds available under this title during the
preceding fiscal year; and
`(3) a description of the aggregate outstanding loan guarantees under
section 184A of the Housing and Community Development Act of 1992.
`(b) RELATED REPORTS- The Secretary may require the Director to submit to
the Secretary such reports and other information as may be necessary in order
for the Secretary to prepare the report required under subsection (a).
`SEC. 824. AUTHORIZATION OF APPROPRIATIONS.
`There are authorized to be appropriated to the Department of Housing and
Urban Development for grants under this title such sums as may be necessary
for each of fiscal years 2000, 2001, 2002, 2003, and 2004.'.
SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.
Subtitle E of title I of the Housing and Community Development Act of 1992
is amended by inserting after section 184 (12 U.S.C. 1715z-13a) the
following:
`SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.
`(a) DEFINITIONS- In this section:
`(1) DEPARTMENT OF HAWAIIAN HOME LANDS- The term `Department of Hawaiian
Home Lands' means the agency or department of the government of the State of
Hawaii that is responsible for the administration of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108 et seq.).
`(2) ELIGIBLE ENTITY- The term `eligible entity' means a Native Hawaiian
family, the Department of Hawaiian Home Lands, the Office of Hawaiian
Affairs, private nonprofit or for profit organizations experienced in the
planning and development of affordable housing for Native Hawaiians.
`(3) FAMILY- The term `family' means 1 or more persons maintaining a
household, as the Secretary shall by regulation provide.
`(4) GUARANTEE FUND- The term `Guarantee Fund' means the Native Hawaiian
Housing Loan Guarantee Fund established under subsection (i).
`(5) HAWAIIAN HOME LANDS- The term `Hawaiian Home Lands' means lands
that--
`(A) have the status of Hawaiian Home Lands under section 204 of the
Hawaiian Homes Commission Act (42 Stat. 110); or
`(B) are acquired pursuant to that Act.
`(6) NATIVE HAWAIIAN- The term `Native Hawaiian' has the meaning given
the term `native Hawaiian' in section 201 of the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108 et seq.).
`(7) OFFICE OF HAWAIIAN AFFAIRS- The term `Office of Hawaiian Affairs'
means the entity of that name established under the constitution of the
State of Hawaii.
`(b) AUTHORITY- To provide access to sources of private financing to
Native Hawaiian families who otherwise could not acquire housing financing
because of the unique legal status of the Hawaiian home lands or as a result
of a lack of access to private financial markets, the
Secretary may guarantee an amount not to exceed 100 percent of the unpaid
principal and interest that is due on an eligible loan under subsection (b).
`(c) ELIGIBLE LOANS- Under this section, a loan is an eligible loan if
that loan meets the following requirements:
`(1) ELIGIBLE BORROWERS- The loan is made only to a borrower who--
`(A) is 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.
`(A) IN GENERAL- The loan will be used to construct, acquire, or
rehabilitate not more than 4-family dwellings that are standard housing
and are located on Hawaiian Home Lands for which a housing plan described
in subparagraph (B) applies.
`(B) HOUSING PLAN- A housing plan described in this subparagraph is a
housing plan that--
`(i) has been submitted and approved by the Secretary under section
803 of the Native American Housing Assistance and Self-Determination
Amendments of 1999; and
`(ii) provides for the use of loan guarantees under this section to
provide affordable homeownership housing on Hawaiian Home
Lands.
`(3) SECURITY- The loan may be secured by any collateral authorized
under applicable Federal law or State law.
`(A) IN GENERAL- The loan shall be made only by a lender approved by,
and meeting qualifications established by, the Secretary, including any
lender described in subparagraph (B), except that a loan otherwise insured
or guaranteed by an agency of the Federal Government or made by the
Department of Hawaiian Home Lands from amounts borrowed from the United
Sates shall not be eligible for a guarantee under this section.
`(B) APPROVAL- The following lenders shall be considered to be lenders
that have been approved by the Secretary:
`(i) Any mortgagee approved by the Secretary for participation in
the single family mortgage insurance program under title II of the
National Housing Act (12 U.S.C.A. 1707 et seq.).
`(ii) Any lender that makes housing loans under chapter 37 of title
38, United States Code, that are automatically guaranteed under section
3702(d) of title 38, United States Code.
`(iii) Any lender approved by the Secretary of Agriculture to make
guaranteed loans for single family housing under the Housing Act of 1949
(42 U.S.C.A. 1441 et seq.).
`(iv) Any other lender that is supervised, approved, regulated, or
insured by any agency of the Federal Government.
`(5) TERMS- The loan shall--
`(A) be made for a term not exceeding 30 years;
`(B) bear interest (exclusive of the guarantee fee under subsection
(d) and service charges, if any) at a rate agreed upon by the borrower and
the lender and determined by the Secretary to be reasonable, but not to
exceed the rate generally charged in the area (as determined by the
Secretary) for home mortgage loans not guaranteed or insured by any agency
or instrumentality of the Federal Government;
`(C) involve a principal obligation not exceeding--
`(i) 97.75 percent of the appraised value of the property as of the
date the loan is accepted for guarantee (or 98.75 percent if the value
of the property is $50,000 or less); or
`(ii) the amount approved by the Secretary under this section;
and
`(D) involve a payment on account of the property--
`(i) in cash or its equivalent; or
`(ii) through the value of any improvements to the property made
through the skilled or unskilled labor of the borrower, as the Secretary
shall provide.
`(d) CERTIFICATE OF GUARANTEE-
`(A) IN GENERAL- Before the Secretary approves any loan for guarantee
under this section, the lender shall submit the application for the loan
to the Secretary for examination.
`(B) APPROVAL- If the Secretary approves the application submitted
under subparagraph (A), the Secretary shall issue a certificate under this
subsection as evidence of the loan guarantee approved.
`(2) STANDARD FOR APPROVAL- The Secretary may approve a loan for
guarantee under this section and issue a certificate under this subsection
only if the Secretary determines that there is a reasonable prospect of
repayment of the loan.
`(A) IN GENERAL- A certificate of guarantee issued under this
subsection by the Secretary shall be conclusive evidence of the
eligibility of the loan for guarantee under this section and the amount of
that guarantee.
`(B) EVIDENCE- The evidence referred to in subparagraph (A) shall be
incontestable in the hands of the bearer.
`(C) FULL FAITH AND CREDIT- The full faith and credit of the United
States is pledged to the payment of all amounts agreed to be paid by the
Secretary as security for the obligations made by the Secretary under this
section.
`(4) FRAUD AND MISREPRESENTATION- This subsection may not be
construed--
`(A) to preclude the Secretary from establishing defenses against the
original lender based on fraud or material misrepresentation; or
`(B) to bar the Secretary from establishing by regulations that are on
the date of issuance or disbursement, whichever is earlier, partial
defenses to the amount payable on the guarantee.
`(1) IN GENERAL- The Secretary shall fix and collect a guarantee fee for
the guarantee of a loan under this section, which may not exceed the amount
equal to 1 percent of the principal obligation of the loan.
`(2) PAYMENT- The fee under this subsection shall--
`(A) be paid by the lender at time of issuance of the guarantee;
and
`(B) be adequate, in the determination of the Secretary, to cover
expenses and probable losses.
`(3) DEPOSIT- The Secretary shall deposit any fees collected under this
subsection in the Native Hawaiian Housing Loan Guarantee Fund established
under subsection (j).
`(f) LIABILITY UNDER GUARANTEE- The liability under a guarantee provided
under this section shall decrease or increase on a pro rata basis according to
any decrease or increase in the amount of the unpaid obligation under the
provisions of the loan agreement involved.
`(g) TRANSFER AND ASSUMPTION- Notwithstanding any other provision of law,
any loan guaranteed under this section, including the security given for the
loan, may be sold or assigned by the lender to any financial institution
subject to examination and supervision by an agency of the Federal Government
or of any State or the District of Columbia.
`(h) DISQUALIFICATION OF LENDERS AND CIVIL MONEY PENALTIES-
`(A) GROUNDS FOR ACTION- The Secretary may take action under
subparagraph (B) if the Secretary determines that any lender or holder of
a guarantee certificate under subsection (c)--
`(I) to maintain adequate accounting records;
`(II) to service adequately loans guaranteed under this section;
or
`(III) to exercise proper credit or underwriting judgment;
or
`(ii) has engaged in practices otherwise detrimental to the interest
of a borrower or the United States.
`(B) ACTIONS- Upon a determination by the Secretary that a holder of a
guarantee certificate under subsection (c) has failed to carry out an
activity described in subparagraph (A)(i) or has engaged in practices
described in subparagraph (A)(ii), the Secretary may--
`(i) refuse, either temporarily or permanently, to guarantee any
further loans made by such lender or holder;
`(ii) bar such lender or holder from acquiring additional loans
guaranteed under this section; and
`(iii) require that such lender or holder assume not less than 10
percent of any loss on further loans made or held by the lender or
holder that are guaranteed under this section.
`(2) CIVIL MONEY PENALTIES FOR INTENTIONAL VIOLATIONS-
`(A) IN GENERAL- The Secretary may impose a civil monetary penalty on
a lender or holder of a guarantee certificate under subsection (d) if the
Secretary determines that the holder or lender has intentionally
failed--
`(i) to maintain adequate accounting records;
`(ii) to adequately service loans guaranteed under this section;
or
`(iii) to exercise proper credit or underwriting
judgment.
`(B) PENALTIES- A civil monetary penalty imposed under this paragraph
shall be imposed in the manner and be in an amount provided under section
536 of the National Housing Act (12 U.S.C.A. 1735f-1) with respect to
mortgagees and lenders under that Act.
`(3) PAYMENT ON LOANS MADE IN GOOD FAITH- Notwithstanding paragraphs (1)
and (2), if a loan was made in good faith, the Secretary may not refuse to
pay a lender or holder of a valid guarantee on that loan, without regard to
whether the lender or holder is barred under this subsection.
`(i) PAYMENT UNDER GUARANTEE-
`(i) NOTIFICATION- If borrower on a loan guaranteed under this
section defaults on the loan, the holder of the guarantee certificate
shall provide written notice of the default to the
Secretary.
`(ii) PAYMENT- Upon providing the notice required under clause (i),
the holder of the guarantee certificate shall be entitled to payment
under the guarantee (subject to the provisions of this section) and may
proceed to obtain payment in 1 of the following manners:
`(aa) IN GENERAL- The holder of the certificate may initiate
foreclosure proceedings (after providing written notice of that action to the
Secretary).
`(bb) PAYMENT- Upon a final order by the court authorizing
foreclosure and submission to the Secretary of a claim for payment under the
guarantee, the Secretary shall pay to the holder of the certificate the pro rata
portion of the amount guaranteed (as determined pursuant to subsection (f)) plus
reasonable fees and expenses as approved by the Secretary.
`(cc) SUBROGATION- The rights of the Secretary shall be subrogated to
the rights of the holder of the guarantee. The holder shall assign the
obligation and security to the Secretary.
`(aa) IN GENERAL- Without seeking foreclosure (or in any case in
which a foreclosure proceeding initiated under clause (i) continues for a period
in excess of 1 year), the holder of the guarantee may submit to the Secretary a
request to assign the obligation and security interest to the Secretary in
return for payment of the claim under the guarantee. The Secretary may accept
assignment of the loan if the Secretary determines that the assignment is in the
best interest of the United States.
`(bb) PAYMENT- Upon assignment, the Secretary shall pay to the holder
of the guarantee the pro rata portion of the amount guaranteed (as determined
under subsection (f)).
`(cc) SUBROGATION- The rights of the Secretary shall be subrogated to
the rights of the holder of the guarantee. The holder shall assign the
obligation and security to the Secretary.
`(B) REQUIREMENTS- Before any payment under a guarantee is made under
subparagraph (A), the holder of the guarantee shall exhaust all reasonable
possibilities of collection. Upon payment, in whole or in part, to the
holder, the note or judgment evidencing the debt shall be assigned to the
United States and the holder shall have no further claim against the
borrower or the United States. The Secretary shall then take such action
to collect as the Secretary determines to be appropriate.
`(2) LIMITATIONS ON LIQUIDATION-
`(A) IN GENERAL- If a borrower defaults on a loan guaranteed under
this section that involves a security interest in restricted Hawaiian Home
Land property, the mortgagee or the Secretary shall only pursue
liquidation after offering to transfer the account to another eligible
Hawaiian family or the Department of Hawaiian Home Lands.
`(B) LIMITATION- If, after action is taken under subparagraph (A), the
mortgagee or the Secretary subsequently proceeds to liquidate the account,
the mortgagee or the Secretary shall not sell, transfer, or otherwise
dispose of or alienate the property described in subparagraph (A) except
to another eligible Hawaiian family or to the Department of Hawaiian Home
Lands.
`(j) HAWAIIAN HOUSING LOAN GUARANTEE FUND-
`(1) ESTABLISHMENT- There is established in the Treasury of the United
States the Hawaiian Housing Loan Guarantee Fund for the purpose of providing
loan guarantees under this section.
`(2) CREDITS- The Guarantee Fund shall be credited with--
`(A) any amount, claims, notes, mortgages, contracts, and property
acquired by the Secretary under this section, and any collections and
proceeds therefrom;
`(B) any amounts appropriated pursuant to paragraph (7);
`(C) any guarantee fees collected under subsection (d); and
`(D) any interest or earnings on amounts invested under paragraph
(4).
`(3) USE- Amounts in the Guarantee Fund shall be available, to the
extent provided in appropriations Acts, for--
`(A) fulfilling any obligations of the Secretary with respect to loans
guaranteed under this section, including the costs (as that term is
defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a)) of such loans;
`(B) paying taxes, insurance, prior liens, expenses necessary to make
fiscal adjustment in connection with the application and transmittal of
collections, and other expenses and advances to protect the Secretary for
loans which are guaranteed under this section or held by the
Secretary;
`(C) acquiring such security property at foreclosure sales or
otherwise;
`(D) paying administrative expenses in connection with this section;
and
`(E) reasonable and necessary costs of rehabilitation and repair to
properties that the Secretary holds or owns pursuant to this
section.
`(4) INVESTMENT- Any amounts in the Guarantee Fund determined by the
Secretary to be in excess of amounts currently required at the time of the
determination to carry out this section may be invested in obligations of
the United States.
`(5) LIMITATION ON COMMITMENTS TO GUARANTEE LOANS AND MORTGAGES-
`(A) REQUIREMENT OF APPROPRIATIONS- The authority of the Secretary to
enter into commitments to guarantee loans under this section shall be
effective for any fiscal year to the extent, or in such amounts as, are or
have been provided in appropriations Acts, without regard to the fiscal
year for which such amounts were appropriated.
`(B) LIMITATIONS ON COSTS OF GUARANTEES- The authority of the
Secretary to enter into commitments to guarantee loans under this section
shall be effective for any fiscal year only to the extent that amounts in
the Guarantee Fund are or have been made available in appropriations Acts
to cover the costs (as that term is defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loan guarantees for
such fiscal year. Any
amounts appropriated pursuant to this subparagraph shall remain available
until expended.
`(C) LIMITATION ON OUTSTANDING AGGREGATE PRINCIPAL AMOUNT- Subject to
the limitations in subparagraphs (A) and (B), the Secretary may enter into
commitments to guarantee loans under this section for each of fiscal years
2000, 2001, 2002, 2003, and 2004 with an aggregate outstanding principal
amount not exceeding $100,000,000 for each such fiscal year.
`(6) LIABILITIES- All liabilities and obligations of the assets credited
to the Guarantee Fund under paragraph (2)(A) shall be liabilities and
obligations of the Guarantee Fund.
`(7) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Guarantee Fund to carry out this section such sums as
may be necessary for each of fiscal years 2000, 2001, 2002, 2003, and
2004.
`(k) REQUIREMENTS FOR STANDARD HOUSING-
`(1) IN GENERAL- The Secretary shall, by regulation, establish housing
safety and quality standards to be applied for use under this section.
`(2) STANDARDS- The standards referred to in paragraph (1) shall--
`(A) provide sufficient flexibility to permit the use of various
designs and materials in housing acquired with loans guaranteed under this
section; and
`(B) require each dwelling unit in any housing acquired in the manner
described in subparagraph (A) to--
`(i) be decent, safe, sanitary, and modest in size and
design;
`(ii) conform with applicable general construction standards for the
region in which the housing is located;
`(iii) contain a plumbing system that--
`(I) uses a properly installed system of piping;
`(II) includes a kitchen sink and a partitional bathroom with
lavatory, toilet, and bath or shower; and
`(III) uses water supply, plumbing, and sewage disposal systems
that conform to any minimum standards established by the applicable
county or State;
`(iv) contain an electrical system using wiring and equipment
properly installed to safely supply electrical energy for adequate
lighting and for operation of appliances that conforms to any
appropriate county, State, or national code;
`(v) be not less than the size provided under the applicable locally
adopted standards for size of dwelling units, except that the Secretary,
upon request of the Department of Hawaiian Home Lands may waive the size
requirements under this paragraph; and
`(vi) conform with the energy performance requirements for new
construction established by the Secretary under section 526(a) of the
National Housing Act (12 U.S.C.A. 1735f-4), unless the Secretary
determines that the requirements are not applicable.
`(l) APPLICABILITY OF CIVIL RIGHTS STATUTES- To the extent that the
requirements of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.) or of title VIII of the Civil Rights Act of 1968 (42 U.S.C. 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.'.
END