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S. 1452 (es) To modernize the requirements under the National Manufactured Housing [Engrossed in Senate] ...


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                    ``(E) to--
                            ``(i) promote the development of private 
                        capital markets; and
                            ``(ii) allow the markets referred to in 
                        clause (i) to operate and grow, thereby 
                        benefiting Native Hawaiian communities.
            ``(2) Eligible families.--
                    ``(A) In general.--Except as provided under 
                subparagraph (B), assistance for eligible housing 
                activities under this title shall be limited to low-
                income Native Hawaiian families.
                    ``(B) Exception to low-income requirement.--
                            ``(i) In general.--The Director may provide 
                        assistance for homeownership activities under--
                                    ``(I) section 810(b);
                                    ``(II) model activities under 
                                section 810(f); or
                                    ``(III) loan guarantee activities 
                                under section 184A of the Housing and 
                                Community Development Act of 1992 to 
                                Native Hawaiian families who are not 
                                low-income families, to the extent that 
                                the Secretary approves the activities 
                                under that section to address a need 
                                for housing for those families that 
                                cannot be reasonably met without that 
                                assistance.
                            ``(ii) Limitations.--The Secretary shall 
                        establish limitations on the amount of 
                        assistance that may be provided under this 
                        title for activities for families that are not 
                        low-income families.
                    ``(C) Other families.--Notwithstanding paragraph 
                (1), the Director may provide housing or housing 
                assistance provided through affordable housing 
                activities assisted with grant amounts under this title 
                to a family that is not composed of Native Hawaiians 
                if--
                            ``(i) the Department determines that the 
                        presence of the family in the housing involved 
                        is essential to the well-being of Native 
                        Hawaiian families; and
                            ``(ii) the need for housing for the family 
                        cannot be reasonably met without the 
                        assistance.
                    ``(D) Preference.--
                            ``(i) In general.--A housing plan submitted 
                        under section 803 may authorize a preference, 
                        for housing or housing assistance provided 
                        through affordable housing activities assisted 
                        with grant amounts provided under this title to 
                        be provided, to the extent practicable, to 
                        families that are eligible to reside on the 
                        Hawaiian Home Lands.
                            ``(ii) Application.--In any case in which a 
                        housing plan provides for preference described 
                        in clause (i), the Director shall ensure that 
                        housing activities that are assisted with grant 
                        amounts under this title are subject to that 
                        preference.
                    ``(E) Use of nonprofit organizations.--As a 
                condition of receiving grant amounts under this title, 
                the Department of Hawaiian Home Lands, shall to the 
                extent practicable, provide for private nonprofit 
                organizations experienced in the planning and 
                development of affordable housing for Native Hawaiians 
                to carry out affordable housing activities with those 
                grant amounts.

``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

    ``(a) In General.--Affordable housing activities under this section 
are activities conducted in accordance with the requirements of section 
811 to--
            ``(1) develop or to support affordable housing for rental 
        or homeownership; or
            ``(2) provide housing services with respect to affordable 
        housing, through the activities described in subsection (b).
    ``(b) Activities.--The activities described in this subsection are 
the following:
            ``(1) Development.--The acquisition, new construction, 
        reconstruction, or moderate or substantial rehabilitation of 
        affordable housing, which may include--
                    ``(A) real property acquisition;
                    ``(B) site improvement;
                    ``(C) the development of utilities and utility 
                services;
                    ``(D) conversion;
                    ``(E) demolition;
                    ``(F) financing;
                    ``(G) administration and planning; and
                    ``(H) other related activities.
            ``(2) Housing services.--The provision of housing-related 
        services for affordable housing, including--
                    ``(A) housing counseling in connection with rental 
                or homeownership assistance;
                    ``(B) the establishment and support of resident 
                organizations and resident management corporations;
                    ``(C) energy auditing;
                    ``(D) activities related to the provisions of self-
                sufficiency and other services; and
                    ``(E) other services related to assisting owners, 
                tenants, contractors, and other entities participating 
                or seeking to participate in other housing activities 
                assisted pursuant to this section.
            ``(3) Housing management services.--The provision of 
        management services for affordable housing, including--
                    ``(A) the preparation of work specifications;
                    ``(B) loan processing;
                    ``(C) inspections;
                    ``(D) tenant selection;
                    ``(E) management of tenant-based rental assistance; 
                and
                    ``(F) management of affordable housing projects.
            ``(4) Crime prevention and safety activities.--The 
        provision of safety, security, and law enforcement measures and 
        activities appropriate to protect residents of affordable 
        housing from crime.
            ``(5) Model activities.--Housing activities under model 
        programs that are--
                    ``(A) designed to carry out the purposes of this 
                title; and
                    ``(B) specifically approved by the Secretary as 
                appropriate for the purpose referred to in subparagraph 
                (A).

``SEC. 811. PROGRAM REQUIREMENTS.

    ``(a) Rents.--
            ``(1) Establishment.--Subject to paragraph (2), as a 
        condition to receiving grant amounts under this title, the 
        Director shall develop written policies governing rents and 
        homebuyer payments charged for dwelling units assisted under 
        this title, including methods by which such rents and homebuyer 
        payments are determined.
            ``(2) Maximum rent.--In the case of any low-income family 
        residing in a dwelling unit assisted with grant amounts under 
        this title, the monthly rent or homebuyer payment (as 
        applicable) for that dwelling unit may not exceed 30 percent of 
        the monthly adjusted income of that family.
    ``(b) Maintenance and Efficient Operation.--
            ``(1) In general.--The Director shall, using amounts of any 
        grants received under this title, reserve and use for operating 
        under section 810 such amounts as may be necessary to provide 
        for the continued maintenance and efficient operation of such 
        housing.
            ``(2) Disposal of certain housing.--This subsection may not 
        be construed to prevent the Director, or any entity funded by 
        the Department, from demolishing or disposing of housing, 
        pursuant to regulations established by the Secretary.
    ``(c) Insurance Coverage.--As a condition to receiving grant 
amounts under this title, the Director shall require adequate insurance 
coverage for housing units that are owned or operated or assisted with 
grant amounts provided under this title.
    ``(d) Eligibility for Admission.--As a condition to receiving grant 
amounts under this title, the Director shall develop written policies 
governing the eligibility, admission, and occupancy of families for 
housing assisted with grant amounts provided under this title.
    ``(e) Management and Maintenance.--As a condition to receiving 
grant amounts under this title, the Director shall develop policies 
governing the management and maintenance of housing assisted with grant 
amounts under this title.

``SEC. 812. TYPES OF INVESTMENTS.

    ``(a) In General.--Subject to section 811 and an applicable housing 
plan approved under section 803, the Director shall have--
            ``(1) the discretion to use grant amounts for affordable 
        housing activities through the use of--
                    ``(A) equity investments;
                    ``(B) interest-bearing loans or advances;
                    ``(C) noninterest-bearing loans or advances;
                    ``(D) interest subsidies;
                    ``(E) the leveraging of private investments; or
                    ``(F) any other form of assistance that the 
                Secretary determines to be consistent with the purposes 
                of this title; and
            ``(2) the right to establish the terms of assistance 
        provided with funds referred to in paragraph (1).
    ``(b) Investments.--The Director may invest grant amounts for the 
purposes of carrying out affordable housing activities in investment 
securities and other obligations, as approved by the Secretary.

``SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

    ``(a) In General.--Housing shall qualify for affordable housing for 
purposes of this title only if--
            ``(1) each dwelling unit in the housing--
                    ``(A) in the case of rental housing, is made 
                available for occupancy only by a family that is a low-
                income family at the time of the initial occupancy of 
                that family of that unit; and
                    ``(B) in the case of housing for homeownership, is 
                made available for purchase only by a family that is a 
                low-income family at the time of purchase; and
            ``(2) each dwelling unit in the housing will remain 
        affordable, according to binding commitments satisfactory to 
        the Secretary, for--
                    ``(A) the remaining useful life of the property (as 
                determined by the Secretary) without regard to the term 
                of the mortgage or to transfer of ownership; or
                    ``(B) such other period as the Secretary determines 
                is the longest feasible period of time consistent with 
                sound economics and the purposes of this title, except 
                upon a foreclosure by a lender (or upon other transfer 
                in lieu of foreclosure) if that action--
                            ``(i) recognizes any contractual or legal 
                        rights of any public agency, nonprofit sponsor, 
                        or other person or entity to take an action 
                        that would--
                                    ``(I) avoid termination of low-
                                income affordability, in the case of 
                                foreclosure; or
                                    ``(II) transfer ownership in lieu 
                                of foreclosure; and
                            ``(ii) is not for the purpose of avoiding 
                        low-income affordability restrictions, as 
                        determined by the Secretary.
    ``(b) Exception.--Notwithstanding subsection (a), housing assisted 
pursuant to section 809(a)(2)(B) shall be considered affordable housing 
for purposes of this title.

``SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

    ``(a) Leases.--Except to the extent otherwise provided by or 
inconsistent with the laws of the State of Hawaii, in renting dwelling 
units in affordable housing assisted with grant amounts provided under 
this title, the Director, owner, or manager shall use leases that--
            ``(1) do not contain unreasonable terms and conditions;
            ``(2) require the Director, owner, or manager to maintain 
        the housing in compliance with applicable housing codes and 
        quality standards;
            ``(3) require the Director, owner, or manager to give 
        adequate written notice of termination of the lease, which 
        shall be the period of time required under applicable State or 
        local law;
            ``(4) specify that, with respect to any notice of eviction 
        or termination, notwithstanding any State or local law, a 
        resident shall be informed of the opportunity, before any 
        hearing or trial, to examine any relevant documents, record, or 
        regulations directly related to the eviction or termination;
            ``(5) require that the Director, owner, or manager may not 
        terminate the tenancy, during the term of the lease, except for 
        serious or repeated violation of the terms and conditions of 
        the lease, violation of applicable Federal, State, or local 
        law, or for other good cause; and
            ``(6) provide that the Director, owner, or manager may 
        terminate the tenancy of a resident for any activity, engaged 
        in by the resident, any member of the household of the 
        resident, or any guest or other person under the control of the 
        resident, that--
                    ``(A) threatens the health or safety of, or right 
                to peaceful enjoyment of the premises by, other 
                residents or employees of the Department, owner, or 
                manager;
                    ``(B) threatens the health or safety of, or right 
                to peaceful enjoyment of their premises by, persons 
                residing in the immediate vicinity of the premises; or
                    ``(C) is criminal activity (including drug-related 
                criminal activity) on or off the premises.
    ``(b) Tenant or Homebuyer Selection.--As a condition to receiving 
grant amounts under this title, the Director shall adopt and use 
written tenant and homebuyer selection policies and criteria that--
            ``(1) are consistent with the purpose of providing housing 
        for low-income families;
            ``(2) are reasonably related to program eligibility and the 
        ability of the applicant to perform the obligations of the 
        lease; and
            ``(3) provide for--
                    ``(A) the selection of tenants and homebuyers from 
                a written waiting list in accordance with the policies 
                and goals set forth in an applicable housing plan 
                approved under section 803; and
                    ``(B) the prompt notification in writing of any 
                rejected applicant of the grounds for that rejection.

``SEC. 815. REPAYMENT.

    ``If the Department of Hawaiian Home Lands uses grant amounts to 
provide affordable housing under activities under this title and, at 
any time during the useful life of the housing, the housing does not 
comply with the requirement under section 813(a)(2), the Secretary 
shall--
            ``(1) reduce future grant payments on behalf of the 
        Department by an amount equal to the grant amounts used for 
        that housing (under the authority of section 819(a)(2)); or
            ``(2) require repayment to the Secretary of any amount 
        equal to those grant amounts.

``SEC. 816. ANNUAL ALLOCATION.

    ``For each fiscal year, the Secretary shall allocate any amounts 
made available for assistance under this title for the fiscal year, in 
accordance with the formula established pursuant to section 817 to the 
Department of Hawaiian Home Lands if the Department complies with the 
requirements under this title for a grant under this title.

``SEC. 817. ALLOCATION FORMULA.

    ``(a) Establishment.--The Secretary shall, by regulation issued not 

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