BLOCK GRANTS.

SEC. 101. BLOCK GRANTS. (a) Authority.—For each fiscal year, the Secretary shall (to the extent amounts are made available to carry out this Act) make grants under this section on behalf of Indian tribes to carry out affordable housing activities. Under such a grant on behalf of an Indian tribe, the Secretary shall provide the grant amounts for the tribe directly to the recipient for the tribe. (b) Plan Requirement.— (1) In general.—The Secretary may make a grant under this Act on behalf of an Indian tribe for a fiscal year only if— (A) the Indian tribe has submitted to the Secretary an Indian housing plan for such fiscal year under section 102; and (B) the plan has been determined under section 103 to comply with the requirements of section 102. (2) Waiver.—The Secretary may waive the applicability of the requirements under paragraph (1), in whole or in part, if the Secretary finds that an Indian tribe has not complied or cannot comply with such requirements due to circumstances beyond the control of the tribe. (c) Local Cooperation Agreement.—The Secretary may not make any grant under this Act on behalf of an Indian tribe unless the governing body of the locality within which any affordable housing to be assisted with the grant amounts will be situated has entered into an agreement with the recipient for the tribe providing for local cooperation required by the Secretary pursuant to this Act. (d) Exemption From Taxation.—A grant recipient for an Indian tribe may receive a block grant under this Act only if— (1) the affordable housing assisted with grant amounts received by the recipient (exclusive of any portions not assisted with amounts provided under this Act) is exempt from all real and personal property taxes levied or imposed by any State, tribe, city, county, or other political subdivision; and (2) the recipient makes annual payments of user fees to compensate such governments for the costs of providing governmental services, including police and fire protection, roads, water and sewerage systems, utilities systems and related facilities, or payments in lieu of taxes to such taxing authority, in an amount equal to the greater of $150 per dwelling unit or 10 percent of the difference between the shelter rent and the utility cost, or such lesser amount as— (A) is prescribed by State, tribal, or local law; 110 STAT. 4023 (B) is agreed to by the local governing body in the agreement under subsection (c); or (C) the recipient and the local governing body agree that such user fees or payments in lieu of taxes shall not be made. (e) Effect of Failure To Exempt From Taxation.—Notwithstanding subsection (d), a grant recipient that does not comply with the requirements under such subsection may receive a block grant under this Act, but only if the tribe, State, city, county, or other political subdivision in which the affordable housing development is located contributes, in the form of cash or tax remission, the amount by which the taxes paid with respect to the development exceed the amounts prescribed in subsection (d)(2). (f) Amount.—Except as otherwise provided under this Act, the amount of a grant under this section to a recipient for a fiscal year shall be— (1) in the case of a recipient whose grant beneficiary is a single Indian tribe, the amount of the allocation under section 301 for the Indian tribe; and (2) in the case of a recipient whose grant beneficiary is more than 1 Indian tribe, the sum of the amounts of the allocations under section 301 for each such Indian tribe. (g) Use for Affordable Housing Activities Under Plan.—Except as provided in subsection (h), amounts provided under a grant under this section may be used only for affordable housing activities under title II that are consistent with an Indian housing plan approved under section 103. (h) Administrative Expenses.—The Secretary shall, by regulation, authorize each recipient to use a percentage of any grant amounts received under this Act for any reasonable administrative and planning expenses of the recipient relating to carrying out this Act and activities assisted with such amounts, which may include costs for salaries of individuals engaged in administering and managing affordable housing activities assisted with grant amounts provided under this Act and expenses of preparing an Indian housing plan under section 102. (i) Public-Private Partnerships.—Each recipient shall make all reasonable efforts, consistent with the purposes of this Act, to maximize participation by the private sector, including nonprofit organizations and for-profit entities, in implementing the approved Indian housing plan.