[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4505 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  2d Session
                                S. 4505

   To amend title 38, United States Code, to improve the program for 
 direct housing loans made to Native American veterans, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 12, 2022

Mr. Rounds (for himself and Mr. Tester) introduced the following bill; 
which was read twice and referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend title 38, United States Code, to improve the program for 
 direct housing loans made to Native American veterans, and for other 
                               purposes.

    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 Direct Loan 
Improvement Act''.

SEC. 2. IMPROVEMENTS TO PROGRAM FOR DIRECT HOUSING LOANS MADE TO NATIVE 
              AMERICAN VETERANS BY THE SECRETARY OF VETERANS AFFAIRS.

    (a) Direct Loans to Native American Veterans To Refinance Existing 
Mortgage Loans.--Section 3762(h)(1) of title 38, United States Code, is 
amended by inserting ``and existing mortgage loans'' after ``section''.
    (b) Expansion of Outreach Program on Availability of Direct Housing 
Loans for Native American Veterans.--Section 3762(i)(2) of such title 
is amended by adding at the end the following new subparagraph:
            ``(G) Awarding grants to local service providers, such as 
        tribal organizations, tribally designated housing entities, 
        Native community development financial institutions, and 
        nonprofit organizations, for conducting outreach, homebuyer 
        education, housing counseling, risk mitigation, and other 
        technical assistance as needed to assist Native American 
        veterans seeking to qualify for mortgage financing.''.
    (c) Definitions.--Section 3765 of such title is amended by adding 
at the end the following new paragraphs:
            ``(6) The term `community development financial 
        institution' has the meaning given that term in section 103 of 
        the Community Development Banking and Financial Institutions 
        Act of 1994 (12 U.S.C. 4702).
            ``(7) The term `Native community development financial 
        institution' means any entity--
                    ``(A) that has been certified as a community 
                development financial institution by the Secretary of 
                the Treasury;
                    ``(B) that is not less than 50 percent owned or 
                controlled by Indians, Alaska natives, or native 
                Hawaiians; and
                    ``(C) for which not less than 50 percent of the 
                activities of the entity serve Indians, Alaska natives, 
                or native Hawaiians.
            ``(8) The term `tribally designated housing entity' has the 
        meaning given that term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103).''.

SEC. 3. PILOT PROGRAM ON RELENDING OF DIRECT HOUSING LOANS BY NATIVE 
              COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS.

    (a) Definitions.--In this section--
            (1) the term ``Alaska Native'' has the meaning given the 
        term ``Native'' in section 3(b) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(b));
            (2) the term ``community development financial 
        institution'' has the meaning given the term in section 103 of 
        the Community Development Banking and Financial Institutions 
        Act of 1994 (12 U.S.C. 4702);
            (3) the term ``Indian Tribe'' has the meaning given the 
        term ``Indian tribe'' in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103);
            (4) the term ``Native American veteran'' has the meaning 
        given the term in section 3765 of title 38, United States Code;
            (5) the term ``Native community development financial 
        institution'' means an entity--
                    (A) that has been certified as a community 
                development financial institution by the Secretary of 
                the Treasury;
                    (B) that is not less than 50 percent owned or 
                controlled by members of Indian Tribes, Alaska Native 
                communities, or Native Hawaiian communities; and
                    (C) for which not less than 50 percent of the 
                activities of the entity serve Indian Tribes, Alaska 
                Native communities, or Native Hawaiian communities;
            (6) the term ``Native Hawaiian'' has the meaning given the 
        term in section 801 of the Native American Housing Assistance 
        and Self-Determination Act of 1996 (25 U.S.C. 4221);
            (7) the term ``pilot program'' means the pilot program 
        carried out under this section;
            (8) the term ``priority Tribal land'' means--
                    (A) any land located within the boundaries of--
                            (i) an Indian reservation, pueblo, or 
                        rancheria; or
                            (ii) a former reservation within Oklahoma;
                    (B) any land not located within the boundaries of 
                an Indian reservation, pueblo, or rancheria, the title 
                to which is held--
                            (i) in trust by the United States for the 
                        benefit of an Indian Tribe or an individual 
                        Indian;
                            (ii) by an Indian Tribe or an individual 
                        Indian, subject to restriction against 
                        alienation under laws of the United States; or
                            (iii) by a dependent Indian community;
                    (C) any land located within a region established 
                pursuant to section 7(a) of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1606(a));
                    (D) Hawaiian Home Lands, as defined in section 801 
                of the Native American Housing Assistance and Self-
                Determination Act of 1996 (25 U.S.C. 4221); or
                    (E) those areas or communities designated by the 
                Assistant Secretary of Indian Affairs of the Department 
                of the Interior that are near, adjacent, or contiguous 
                to reservations where financial assistance and social 
                service programs are provided to Indians because of 
                their status as Indians; and
            (9) the term ``qualified non-Native American veteran'' has 
        the meaning given the term in section 3765 of title 38, United 
        States Code.
    (b) Establishment.--The Secretary of Veterans Affairs shall carry 
out a pilot program to assess the feasibility and advisability of 
making direct housing loans to Native community development financial 
institutions to allow such institutions to relend loan amounts to 
qualified Native American veterans and qualified non-Native American 
veterans.
    (c) Application Requirements.--A Native community development 
financial institution desiring a loan under the pilot program shall 
demonstrate that the institution--
            (1) can provide the non-Federal cost share required under 
        paragraph (6); and
            (2) is able to originate and service loans for single 
        family homes.
    (d) Lending Requirements.--A Native community development financial 
institution that receives a loan pursuant to the pilot program shall--
            (1) use those amounts to make loans to borrowers who--
                    (A) are members of an Indian Tribe, an Alaska 
                Native community, or a Native Hawaiian community; or
                    (B) maintain a household in which not less 1 member 
                is a member of an Indian Tribe, an Alaska Native 
                community, or a Native Hawaiian community; and
            (2) in making loans under paragraph (1), give priority to 
        borrowers described in that paragraph who are residing on 
        priority Tribal land.
    (e) Interest Rate.--A loan made to a Native community development 
financial institution under the pilot program shall bear interest at a 
rate of 1 percent.
    (f) Non-Federal Cost Share.--
            (1) In general.--A Native community development financial 
        institution that receives a loan under the pilot program shall 
        be required to match not less than 20 percent of the amount 
        received.
            (2) Waiver.--In the case of a loan for which amounts are 
        used to make loans to borrowers described in subsection (d)(2), 
        the Secretary shall waive the non-Federal cost share 
        requirement described in paragraph (1) with respect to those 
        loan amounts.
    (g) Repayment.--A Native community development financial 
institution shall repay a loan made under the pilot program to the 
Secretary of Veterans Affairs.
    (h) Funding.--Of amounts made available, for the fiscal year 
following the fiscal year in which this Act is enacted, for the program 
for direct housing loans for Native American veterans under subchapter 
V of chapter 37 of title 38, United States Code, the Secretary of 
Veterans Affairs may use $5,000,000 to carry out the pilot program.
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