H.R.1776 - American Homeownership and Economic Opportunity Act of 2000106th Congress (1999-2000)
Summary: H.R.1776 — 106th Congress (1999-2000)
American Homeownership and Economic Opportunity Act of 2000 - Title I: Removal of Barriers to Housing Affordability - Housing Affordability Barrier Removal Act of 2000 - Requires proposed and final agency rules (with exceptions for certain banking rules) to analyze their impact upon affordable housing availability, including provision for interested parties to offer alternatives, which shall be incorporated into the final rule if found to accomplish required objectives with a less deleterious effect upon housing.
Passed House amended (04/06/2000)
Directs the Secretary of Housing and Urban Development (HUD) to develop model housing impact analyses.
(Sec. 103) Amends the Housing and Community Development Act of 1992 to authorize FY 2001 through 2005 appropriations for (consolidated) State and local grants for regulatory barrier removal. Makes consortia of local governments eligible grantees. Requires grant use in coordination with the local comprehensive affordability strategy under the Cranston-Gonzalez National Affordable Housing Act.
(Sec. 104) Amends the Housing and Community Development Act of 1974 to require jurisdictions to make good faith efforts at affordable housing barrier removal in order to qualify for community development block grants (CDBG) (without creating a private right of action).
(Sec. 105) Amends the Housing and Community Development Act of 1992 to state that the regulatory barriers clearinghouse shall be established within the Office of Policy Development of HUD under the direction of the Assistant Secretary for Policy Development and Research.
Title II: Homeownership Through Mortgage Insurance and Loan Guarantees - Amends the National Housing Act to extend the loan term for manufactured home lot purchases.
(Sec. 202) Modifies Federal Housing Administration (FHA) mortgage insurance downpayment requirements.
(Sec. 203) Provides for one percent downpayments for FHA mortgage loans for qualified elementary (including pre-kindergarten) and secondary school teachers and administrators and non-Federal public safety officers to purchase homes within the jurisdictions of their employing agencies.
(Sec. 204) Directs the Secretary, in order to prevent fraud in the rehabilitation loan program, to: (1) prohibit indemnity of interest between specified loan parties; (2) establish standards for participating nonprofit organizations; (3) prohibit final loan disbursement until rehabilitation completion; (4) establish consultant standards; and (5) require contractor qualification. Directs the Secretary to report on participating nonprofit organizations.
(Sec. 205) Community Partners Next Door Act - Establishes a discounted (50 percent) home purchase and downpayment assistance program for qualified elementary (including pre-kindergarten) and secondary teachers, law enforcement officers, fire fighters, and rescue personnel for FY 2000 through 2004. Authorizes the Secretary to sell properties directly to a teacher or public safety officer or indirectly to a unit of local government or nonprofit organization for resale to such individual. Requires a minimum three-year residence.
(Sec. 206) Revises the current demonstration mortgage reinsurance program to: (1) make such program a risk-sharing program served by private mortgage insurers and insured community development financial institutions (as defined by this Act); (2) enlarge the program to four administrative areas; and (3) require such entities to assume the first loss of an insured mortgage.
(Sec. 207) Includes within the insured loan program a hybrid adjustable rate mortgage (ARM) that is fixed for at least the first three years. Requires disclosure of ARM features to prospective mortgagors.
(Sec. 208) Authorizes the Secretary to insure refinancing of home equity conversions for elderly home owners. Provides for: (1) specified transaction disclosures; (2) waiver of counseling under specified conditions; (3) fee limitations; (4) single premium reduction; and (5) an actuarial study to determine insurance premium adequacy.
Includes housing cooperatives in the demonstration program of insurance of home equity conversion mortgages for elderly home owners. Directs the Secretary to waive up-front premiums for mortgages used for costs of long-term care insurance or health care.
(Sec. 209) Directs the Secretary to carry out a pilot program to assist qualifying law enforcement officers (including correctional officers) purchase homes in locally designated high crime areas. Provides for: (1) no downpayment; and (2) inclusion of closing costs and a single required insurance payment in the loan amount. Sunsets the program three years after assistance is made available.
(Sec. 210) Directs the Comptroller General to conduct a study of mandatory inspection requirements under the single family housing mortgage insurance program.
(Sec. 211) Directs the Secretary to report on the property improvement loan insurance program.
(Sec. 212) Expresses the sense of Congress that the Secretary should consult with other Federal agencies that hold housing-appropriate property to determine the possibility of including such properties in programs that make housing available for law enforcement officers, teachers, and fire fighters.
(Sec. 213) Amends the National Housing Act to increase the property improvement loan limit for single-family homes.
Title III: Section 8 Homeownership Option - Amends the United States Housing Act of 1937 to provide a single grant home ownership downpayment option (in lieu of monthly payments) under the section 8 housing assistance program.
(Sec. 302) Authorizes a public housing agency providing tenant-based section 8 housing assistance to provide assistance for a qualifying disabled family that purchases a home which will be owned and occupied by one or more members of such family. Sets forth program provisions.
(Sec. 303) Authorizes FY 2001 appropriations (with a 50 percent matching requirement) for homeownership programs under the section 8 homeownership demonstration program.
Title IV: Community Development Block Grants - Amends the Housing and Community Development Act of 1974 to authorize FY 2001 through 2005 appropriations for the CDBG program. Modifies the definition of "city" with respect to certain towns or townships, and the definition of "urban county."
(Sec. 402) Prohibits set-asides, with specified exceptions.
(Sec. 403) Extends through FY 2006 the 25 percent public services cap for the City and County of Los Angeles, California.
(Sec. 404) Authorizes block grant use for: (1) qualifying teacher and municipal employee (including police officers, fire fighters, and sanitation and other maintenance workers) first-time homeownership assistance; and (2) brownfields projects environmental cleanup and economic development in conjunction with the appropriate environmental regulatory agencies. States that such homeownership assistance shall be intended for low- and moderate-income individuals.
(Sec. 406) Directs the Secretary to grant (in addition to specified other exemptions) at least ten jurisdictions income eligibility exemptions for purposes of the CDBG and HOME investment partnership programs.
(Sec. 407) Amends the Cranston-Gonzalez National Affordable Housing Act to authorize FY 2001 through 2005 appropriations for the housing opportunities for persons with AIDS program.
(Sec. 408) Amends the Housing and Community Development Act to prohibit the use of CDBG funds to acquire real property owned by a tax exempt church without the prior consent of the church's governing body.
(Sec. 409) Increases the CDBG aggregate special purpose grant set-aside. Obligates specified FY 2001 amounts for Youngstown, Ohio, for site acquisition, planning, design, and construction of a convocation and community center.
Title V: Home Investment Partnerships Program - Amends the Cranston-Gonzalez National Affordable Housing Act to authorize FY 2001 through 2005 appropriations for affordable housing programs, including the HOME investment partnership program. Prohibits set-asides, with specified exceptions.
Authorizes the Secretary to make up to three grants for each of FY 2001 and 2002 to eligible consortia of local government (at least one of which shall be a multi-State consortia) in order to develop comprehensive regional housing affordability strategies.
(Sec. 502) Makes limited equity cooperatives and mutual housing associations eligible for home investment partnerships.
(Sec. 503) Permits the extended use of administrative and planning funds.
(Sec. 504) Permits loan pool investment of partnership funds. Treats such mixed income loan pools as affordable housing under specified conditions.
(Sec. 505) Makes qualifying municipal employees (including teachers) eligible for home ownership assistance.
(Sec. 506) Permits the use of section 8 rental assistance for families with grandparent-grandchildren residents, but without any parent of such children.
(Sec. 507) Authorizes the Secretary to make home investment partnership loan guarantees. Sets forth an aggregate loan guarantee limitation.
(Sec. 508) Directs the Secretary to carry out a pilot program under which jurisdictions participating in the HOME program and cities or urban counties participating in the CDBG program may use such amounts for downpayment assistance to eligible homebuyers for purchases of 2- and 3-family residences.
Title VI: Local Homeownership Initiatives - Amends the Neighborhood Reinvestment Corporation Act to authorize FY 2001 through 2005 appropriations for the Neighborhood Reinvestment Corporation. Obligates specified FY 2001 funds for certain duplex homeownership programs.
(Sec. 602) Amends the Housing and Community Development Act of 1992 to revise the home ownership zone grant program, including providing: (1) grant eligibility for units of general local government (currently nonprofit organizations); and (2) assistance targeting for specified low-income home buyers. Authorizes FY 2001 and 2002 appropriations. Prohibits adverse treatment of an application solely because the homeownership zone is located within unincorporated areas.
(Sec. 603) Expresses the sense of Congress in favor of lease-to-own tenancies as home ownership tools.
(Sec. 604) Amends the HUD Demonstration Act of 1993 to make the National Association of Housing Partnerships eligible for local capacity grants. Removes the specified amount of authorized appropriations.
(Sec. 605) Amends the Cranston-Gonzalez National Affordable Housing Act to provide for a consolidated application and planning submission under the following programs: (1) HOME investment partnerships; (2) CDBG; (3) the economic development initiative; (4) emergency shelter grants; and (5) housing opportunities for persons with AIDS.
(Sec. 606) Amends the Housing Opportunity Program Extension Act of 1996 to authorize FY 2001 through 2003 appropriations for self-help housing providers. Permits fund advancement for land acquisition prior to approval of any required environmental review. Permits projects with five or more units to use their funds over a 36-month period.
(Sec. 607) Amends the Housing and Urban Development Act of 1968 to make cooperative housing eligible for housing counseling funds.
Extends the emergency home ownership counseling and the prepurchase and foreclosure prevention counseling programs through FY 2005.
(Sec. 608) Amends the Residential Lead-Based Paint Hazard Reduction Act of 1992 to include among eligible grant activities: (1) leasing of lead-free temporary housing; and (2) access to residential lead-based paint poisoning prevention services at centralized locations.
(Sec. 609) Makes religious organizations eligible for HUD financial assistance on the same basis as other nongovernmental organizations as long as the program is implemented in a manner consistent with the Establishment Clause of the Free Exercise Clause of the first amendment to the Constitution. States that such a recipient organization shall: (1) retain its religious character; (2) maintain its employment practices exemption; and (3) not use such funds for sectarian worship, instruction, or proselytization.
Title VII: Native American Homeownership - Subtitle A: Native American Housing - Establishes the Lands Title Report Commission to facilitate home loan mortgages on Indian trust lands. Terminates the Commission one year after its initial meeting. Authorizes appropriations.
(Sec. 702) Amends the Housing and Community Development Act of 1992 to make permanent the Indian housing loan guarantee authority.
(Sec. 703) Amends the Native American Housing Assistance and Self-Determination Act of 1996 to: (1) restrict the Secretary's authority to waive housing plan requirements to not more than 90 days; (2) permit the Secretary to waive local cooperation requirements upon a good faith showing and agreement to make certain payments in lieu of taxes; (3) permit assistance to Indian families that are not low-income upon a showing of need; (4) eliminate separate housing plan requirements for small tribes; (5) permit the Secretary to waive certain environmental review requirements under specified conditions; (6) permit reservation housing assistance for specified full-time Federal, State, county, or tribal law enforcement officers; (7) revise audit, review, and hearing provisions; (8) prescribe a funding formula for housing authorities operating fewer than 250 units based on an average of FY 1992 through 1997 allocations; and (9) repeal the requirement regarding the certification of compliance with subsidy layering requirements.
Subtitle B: Native Hawaiian Housing - Hawaiian Homelands Homeownership Act of 2000 - Amends the Native American Housing Assistance and Self-Determination Act of 1996 to add a new Title VIII, Housing Assistance for Native Hawaiians. Directs the Secretary to make block grants to carry out affordable housing activities for Native Hawaiian families on or near Hawaiian Home Lands. Authorizes the Secretary to make grants to the Department of Hawaiian Home Lands (defined as the agency or department of Hawaii responsible for administration of the Hawaiian Homes Commission Act, 1920) only if the Director of the Department has submitted a housing plan that meets requirements under this Act, unless otherwise waived by the Secretary. Sets forth plan terms, conditions, and requirements, including a condition that, to the extent practicable, the Department use private nonprofit organizations in the planning and development of such housing. Provides for plan review by the Secretary.
Sets forth provisions regarding the treatment of program income, project labor standards, and environmental review under the National Environmental Policy Act of 1969.
Limits assistance for affordable housing activities under the program to low-income Native Hawaiian families, with specified exceptions for: (1) certain home ownership activities; and (2) assistance to non-Native Hawaiians if the presence of the family in the housing involved is essential to the well-being of Native Hawaiian families and the housing need cannot be met without assistance.
Describes eligible affordable housing activities. Sets forth program requirements, including the development of policies governing rents, home buyer payments, eligibility, management, leases, and tenant selection. Sets the maximum monthly rent or home buyer payment at 30 percent of the monthly adjusted family income.
Directs the Secretary, in instances of substantial Department noncompliance, to terminate, reduce, or limit payments. Authorizes the Secretary, in addition to such actions, to refer the matter to the Attorney General for civil action.
Sets forth review, auditing, and reporting requirements for the Secretary and the Director. Provides for discretionary audits by the Comptroller General. Authorizes appropriations through FY 2005.
(Sec. 724) Amends the Housing and Community Development Act of 1992 to authorize the Secretary to guarantee up to $100 million in loans from approved lenders in each of FY 2001 through 2005 to provide access to sources of private financing to Native Hawaiian families who could otherwise 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. Authorizes loan guarantees of up to 100 percent of unpaid interest and principal. Provides that a loan will be used to construct, acquire, or rehabilitate not more than four-family dwellings that are standard housing and located on Hawaiian Home Lands for which an approved housing plan to provide affordable home ownership housing applies.
Sets forth eligible lender categories.
Limits loans to 30-year terms. Permits the Secretary to guarantee a loan only upon determining that there is a reasonable prospect of repayment. Establishes a loan guarantee fee. Authorizes loan transfer and assumption, subject to governmental supervision.
Provides for lender disqualification for specified violations, and civil monetary penalties for intentional violations. Establishes a Hawaiian Housing Guarantee Fund for the purpose of providing loan guarantees under this Act. Authorizes appropriations through FY 2005.
Directs the Secretary to establish safety and quality standards for housing financed under these provisions.
Title VIII: Transfer of Unoccupied and Substandard HUD-Held Housing to Local Governments and Nonprofit Organizations - Amends the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 to direct the Secretary to transfer ownership of qualified HUD-held properties (substandard or unoccupied multifamily or unoccupied single family properties) to local governments and community development corporations under specified conditions. Requires such properties to be held by HUD for at least six months.
(Sec 802) Directs the Secretary, upon request of the appropriate jurisdiction, to designate as a revitalization area all portions of such jurisdiction meeting the necessary criteria.
Title IX: Private Mortgage Insurance Cancellation and Termination - Private Mortgage Insurance Technical Corrections and Clarification Act - Amends the Homeowners Protection Act of 1998 with respect to the definition of "cancellation date" to replace "amortization schedules" with, and define, "amortization schedule the in effect" for purposes of adjustable rate mortgages.
Includes balloon mortgages within the definition of "adjustable rate mortgages."
States that if a residential mortgage loan is modified (with mortgagor-mortgagee agreement) the cancellation date, termination date, or final agreement shall be recalculated to reflect such modifications.
(Sec. 904) Extends mortgage insurance cancellation rights beyond the cancellation date for a qualifying borrower who is current on required payments.
(Sec. 905) Revises the automatic termination date with respect to a mortgagor who is not current on payments as of the mortgage termination date.
States that the cancellation or termination of private mortgage insurance shall not affect the rights of any mortgagee, servicer, or insurer to enforce any accrued obligation for premium payments.
(Sec. 906) Revises and defines specified terms.
Title X: Rural Housing Ownership - Amends the Housing Act of 1949 to increase from $2,500 to $7,500 the amount of a rural housing repair loan that needs to be evidenced only by a promissory note.
(Sec. 1002) Makes limited partnerships eligible for farm labor housing loans.
(Sec. 1003) Sets forth project accounting and recordkeeping requirements.
(Sec. 1004) Extends the rural designation of certain areas until the 2010 census.
(Sec. 1006) Makes Indian organizations (as defined by this Act) eligible for the multifamily rental housing loan guarantee program.
(Sec. 1007) Establishes civil and criminal penalties for rural housing program equity skimming. Authorizes the Secretary to impose civil monetary penalties and prohibit renewal or extension of loan or assistance agreements for program violations.
(Sec. 1008) Amends Federal criminal law to include such equity skimming under money laundering provisions.
Title XI: Manufactured Housing Improvement - Manufactured Housing Improvement Act - Amends the National Manufactured Housing Construction and Safety Standards Act of 1974 to define specified terms.
(Sec. 1104) Directs the Secretary to establish manufactured home construction and safety standards in accordance with the consensus standards development process (provided for by this Act).
Directs the Secretary to contract with: (1) a temporary administering organization to appoint the initial members of the consensus committee and administer the consensus standards development and related procedural and enforcement processes; and (2) a subsequent administering organization for the development of Federal standards and related procedural and enforcement regulations.
Establishes the consensus committee which shall provide the Secretary with periodic recommendations respecting Federal manufactured housing construction and safety standards and related procedural and enforcement regulations. States that committee members shall represent producer, consumer, and general interest and public official interests. Sets forth related administrative provisions.
(Sec. 1105) Eliminates the National Manufactured Home Advisory Council.
Requires manufacturers to provide approved design and installation instructions with each manufactured home.
Requires, within specified deadlines: (1) the consensus committee to develop and submit to the Secretary proposed model manufactured home installation standards; and (2) the Secretary to develop model standards. Requires an opportunity for public comment prior to such standards' issuance. Prohibits a State or manufacturer, during the five-year period beginning with the enactment of this Act, from establishing manufactured home installation standards that provide less protection than existing standards. Directs the Secretary, not later than the expiration of such five-year period, to implement in a State that has not adopted a similar program a program which provides for: (1) installation standards and designs and instructions that meet or exceed model standards; (2) installer training and licensing; and (3) installation inspection.
(Sec. 1106) Directs the Secretary to submit cost information to the consensus committee.
(Sec. 1107) Includes among research and testing activities: (1) encouraging government-sponsored housing entities to implement secondary market securitization programs for manufactured home loans; and (2) reviewing the programs for Federal Housing Administration manufactured home loans.
(Sec. 1108) Makes it a prohibited act to fail to comply with the Secretary's installation standards in any State that has not adopted a State installation program.
(Sec. 1109) Authorizes the Secretary to collect manufacturer fees, and sets forth their permitted and prohibited uses. Establishes in the Treasury a Manufactured Housing Fees Trust Fund.
Sets forth contractor requirements.
Requires the Secretary to continue funding States with approved plans at levels not less than those existing immediately prior to enactment of this Act.
(Sec. 1110) Directs the Secretary to establish a dispute resolution program within five years of the enactment of this Act.
(Sec. 1111) Eliminates the manufactured housing annual reporting requirement.
(Sec. 1112) Sets forth effective date provisions.
(Sec. 1113) Sets forth savings provisions, including certain contract duration provisions.
Title XII: Public and Assisted Housing Drug Elimination Program - Amends the Anti-Drug Abuse Act of 1988 to make drug elimination grants available to public housing authorities that have largely eliminated drug and crime problems but need to maintain or expand police services in order to sustain such conditions.