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