SEC-958 -- PREFERENCES FOR NATIVE HAWAIIANS ON HAWAIIAN HOMELANDS UNDER 

 
HUD PROGRAMS.
 
 (a) Authority.-The Secretary of Housing and Urban Development shall
provide a preference to native Hawaiians for housing assistance programs
described in subsection (b) for housing located on Hawaiian home lands.
 
 (b) Assistance Programs.-For purposes of subsection (a), the Federal
housing assistance programs described in this subsection are-
 
 (1) the public housing and project-based section 8 assistance programs
under the United States Housing Act of 1937;
 
 (2) the program under section 202 of the Housing Act of 1959; and
 
 (3) the programs under the National Housing Act.
 
 (c) Mortgage Insurance.-
 
 (1) In general.-Notwithstanding any other provision or limitation of
this Act, including those relating to marketability of title, the
Secretary of Housing and Urban Development may provide mortgage
insurance covering any Hawaiian home lands property upon which there is
located a multi-family residence, for which the Department of Hawaiian
Home Lands of the State of Hawaii-
 
 (A) is the mortgagor or co-mortgagor;
 
 (B) guarantees in writing to reimburse the Secretary for any mortgage
insurance claim paid in connection with such property; or
 
 (C) offers other security that is acceptable to the Secretary,
subject to appropriate conditions prescribed by the Secretary.
 
 (2) Sale on default.-In the event of a default on a mortgage insured
pursuant to paragraph (1), the Department of Hawaiian Home Lands of the
State of Hawaii may sell the insured property or housing unit to an
eligible native Hawaiian.
 
 (d) Definitions.-For purposes of this section:
 
 (1) The term "native Hawaiian" means-
 
 (A) any descendant of not less than one-half; or
 
 (B) in the case of an individual who succeeds a spouse or parent in an
interest in a lease of Hawaiian home lands, such lower percentage as may
be established under section 209 of the Hawaiian Homes Commission Act,
1920, (42 Stat. 111) or under the corresponding provision of the
Constitution of the State of Hawaii adopted under section 4 of the Act
entitled "An Act to provide for the admission of the State of Hawaii
into the Union", approved March 18, 1959 (P.L. 86-3; 73 Stat. 5),
of the blood of the races inhabiting the Hawaiian Islands before January
1, 1778.
 
 (2) The term "Hawaiian home lands" means all lands given the status
of Hawaiian home lands under section 204 of the Hawaiian Home Commission
Act, 1920, (42 Stat. 108) or under the corresponding provision of the
Constitution of the State of Hawaii adopted under section 4 of the Act
entitled "An Act to provide for the admission of the State of Hawaii
into the Union", approved March 18, 1959 (P.L. 86-3; 73 Stat. 5).