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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-295

======================================================================



 
       NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION 
                      REAUTHORIZATION ACT OF 2007

                                _______
                                

 August 3, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2786]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 2786) to reauthorize the programs for housing 
assistance for Native Americans, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Performance Goals and Objectives.................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     7
Earmark Identification...........................................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     9
Additional Views.................................................    18

                          Purpose and Summary

    H.R. 2786, the Native American Housing Assistance Self 
Determination Reauthorization Act of 2007, reauthorizes the 
Native American Housing Assistance Self Determination Act 
(NAHASDA) of 1996 for five years and amends the law to address 
housing needs in Indian Country.
    The bill clarifies rules and regulations that apply to 
NAHASDA to remove regulatory burdens and make it easier for 
tribes to execute their Indian Housing Plans pursuant to 
NAHASDA. The bill also attempts to encourage tribes to 
participate in low income housing tax credit projects and the 
Title VI loan guarantee program, and to compete for HOME funds. 
The bill also creates a self- determination housing program to 
allow tribes to make independent decisions regarding the use of 
a portion of their NAHASDA grant to acquire, rehabilitate, and 
construct housing.

                  Background and Need for Legislation

    NAHASDA was signed into law in 1996, and was reauthorized 
in 2002 for five years. NAHASDA reorganized and simplified the 
Department of Housing and Urban Development's (HUD) system of 
housing assistance to American Indians and Alaska Natives by 
eliminating several separate HUD programs and replacing them 
with a single block grant program made directly to tribes. The 
purpose of NAHASDA is to provide Federal assistance for Indian 
tribes in a manner that recognizes the right of tribal self-
governance.
    Through the amendments made to the Act under this bill, the 
Committee seeks to confirm the right of tribal self-governance 
and to reduce regulatory burdens on tribes in connection with 
the execution of their Indian Housing Plans pursuant to 
NAHASDA.
    The Committee recognizes the desire of tribes to have 
reduced oversight and burdensome regulations, and more self-
determination in regard to the use of NAHASDA grant funds. The 
Committee addresses this desire by including a provision in the 
bill to provide for a self-determination housing program 
whereby tribes may use up to 15 percent (capped at $1 million) 
of their annual NAHASDA grant for self-determined housing 
activities, which housing activities will not require approval 
nor be subject to annual oversight, but will be subject to 
oversight in year four prior to any future reauthorization of 
the program. It is the desire of the Committee that this 
program be used to benefit low-income housing needs in Indian 
Country, specifically the acquisition, rehabilitation, and 
construction of such housing.
    The Committee also recognizes the need for economic 
development and infrastructure in conjunction with successful 
affordable housing developments. The Committee will work on 
separate legislation to address economic development and 
infrastructure in conjunction with the acquisition, 
rehabilitation, and construction of affordable housing in 
Indian Country.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
a hearing entitled ``Reauthorization of the Native American 
Housing Assistance and Self-Determination Act'' on June 6, 
2007. The following witnesses testified:
    Panel One:
     The Honorable Orlando J. Cabrera, Assistant 
Secretary for Public and Indian Housing, U.S. Department of 
Housing and Urban Development
    Panel Two:
     Ms. Cheryl Parish, Vice Chairwoman, National 
American Indian Housing Council
     Ms. Sami Jo Difuntorum, Executive Director, Karuk 
Tribe Housing Authority
     Ms. Aneva J. Yazzie, Chief Executive Officer, 
Navajo Housing Authority
     Mr. Wendsler Nosie, Sr., Chairman, San Carlos 
Apache Tribe
     Ms. Jacqueline L. Johnson, Executive Director, 
National Congress of American Indians
     Mr. Mark Chino, President, Mescalero Apache Tribe

                        Committee Consideration

    The Committee on Financial Services met in open session on 
June 26, 2007, and ordered H.R. 2786, Native American Housing 
Assistance and Self-Determination Act of 2007, reported by a 
voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Frank to 
report the bill to the House with a favorable recommendation 
was agreed to by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H.R. 2786, the Native American Housing Assistance Self 
Determination Reauthorization Act of 2007, reauthorizes NAHASDA 
for five years through 2012, and amends the law to address 
housing needs in Indian Country with the goal to provide 
affordable housing in Indian Country.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 29, 2007.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2786, the Native 
American Housing Assistance and Self-Determination 
Reauthorization Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

H.R. 2786--Native American Housing Assistance and Self-Determination 
        Reauthorization Act of 2007

    Summary: H.R. 2786 would reauthorize the Native American 
and Native Hawaiian Block Grant programs and would authorize 
the appropriation of such sums as necessary for those programs 
for each of fiscal years 2008 through 2012. In addition, the 
bill would reauthorize the loan program under Title VI of the 
Native American Housing Assistance and Self-Determination Act 
of 1996 for fiscal years 2008 through 2012.
    CBO estimates that appropriation of the amounts necessary 
to implement H.R. 2786 would cost $2.2 billion over the 2008-
2012 period. Enacting H.R. 2786 would not affect direct 
spending or revenues.
    H.R. 2786 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA); 
any costs to state, local, and tribal governments would be 
incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2786 is shown in the following table. 
The costs of this legislation fall within budget function 600 
(income security).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2007      2008      2009      2010      2011      2012
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority\1\.............................       633         0         0         0         0         0
    Estimated Outlays...............................       597       383       266       185       111        46
Proposed Changes:
    Native American Housing Block Grants:
        Estimated Authorization Level...............         0       634       645       657       669       680
        Estimated Outlays...........................         0       231       362       459       541       616
    Title VI Loan Guarantees:
        Estimated Authorization Level...............         0         2         2         2         2         2
        Estimated Outlays...........................         0         2         2         2         2         2
    Training and Technical Assistance:
        Estimated Authorization Level...............         0         1         1         1         1         1
        Estimated Outlays...........................         0         1         1         1         1         1
    Native Hawaiian Housing Block Grants:
        Estimated Authorization Level...............         0         9         9        10        10        10
        Estimated Outlays...........................         0         1         3         5         7         9
        Total Changes:
            Estimated Authorization Level...........         0       646       657       670       682       694
            Estimated Outlays.......................         0       235       368       467       550       628
Spending Under H.R. 2786 for Native American Housing
 Programs:
    Estimated Authorization Level\1\................       633       646       657       670       682       694
    Estimated Outlays...............................       597       619       634       652       662      674
----------------------------------------------------------------------------------------------------------------
\1\The 2007 level is the amount appropriated in that year for Native American Housing Block Grants, Title VI
  Loan Guarantees, and Native Hawaiian Housing Block Grants.

    Basis of Estimate: CBO estimates that implementing H.R. 
2786 would cost $2.2 billion over the next five years, assuming 
the appropriation of the necessary funds. For this estimate, 
CBO assumes that the bill will be enacted near the start of 
fiscal year 2008 and that appropriated funds will be spent at 
historical rates for the affected programs.

Native American Housing Block Grants

    Section 2 would authorize the appropriation of such sums as 
necessary for the Native American Housing Block Grant program 
from 2008 through 2012. The block grant program provides 
funding to tribes to acquire, construct, rehabilitate, or 
manage affordable housing for low-income Native American 
families. In 2007, $622 million was appropriated for this 
program. Assuming continued appropriations at that level and 
adjusting for anticipated inflation, CBO estimates that 
implementing this section would cost $2.2 billon over the 2008-
2012 period.

Title VI loan guarantees

    Section 6 would extend the authorization of the Title VI 
loan guarantee program through 2012. Such guarantees allow 
Native American Block Grant recipients to leverage their 
funding by pledging future grants as security for the repayment 
of a loan. A private lender provides the financing and the 
Department of Housing and Urban Development (HUD) provides a 95 
percent guarantee of the principal and interest due in the case 
of a default. The size of the Title VI loans can be no larger 
than five times the grant recipient's annual grant amount. HUD 
estimates this program currently has a subsidy rate of about 12 
percent. In 2007, the program received an appropriation for 
subsidy costs of $2 million, which will support about $17 
million in loans. Assuming appropriation of similar amounts, 
CBO estimates that implementing this section would cost $11 
million in additional subsidy costs through 2012.
    There have been few losses to date in the Title VI program; 
however, repayment of these loans have been funded by federal 
grants. As a result, the actual cost to the government is borne 
by the grant program. It is uncertain what the cost of these 
loans would be in the absence of the grant program, but it 
likely would be higher, perhaps substantially.

Training and technical assistance

    Section 7 would authorize the appropriation of such sums as 
necessary for the 2008-2012 period to fund a national 
organization representing the housing interests of Native 
Americans to provide training and technical assistance to 
Indian housing authorities. Such assistance is intended to 
build the housing authorities' capacity to administer housing 
programs in accordance with federal regulations. In 2006, the 
most recent year in which funds were provided, $1 million was 
appropriated to be used by the National American Indian Housing 
Council for these purposes. Assuming appropriation of similar 
amounts, CBO estimates that implementing this section would 
cost $5 million through 2012.

Native Hawaiian Housing Block Grants

    Section 8 would authorize the appropriation of such sums as 
necessary for the Native Hawaiian Housing Block Grant program 
from 2008 through 2012. Program grants are used to develop, 
maintain, and operate affordable housing for low-income Native 
Hawaiian families through the Department of Hawaiian Home 
Lands. In 2007, $9 million was appropriated for this program. 
Assuming continued appropriations at that level and adjusting 
for anticipated inflation, CBO estimates that implementing this 
section would cost about $25 million through 2012.
    Intergovernmental and private-sector impact: H.R. 2786 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Grants authorized in the bill would benefit 
the state of Hawaii and tribal governments that participate in 
housing assistance programs. Any costs to those governments of 
complying with grant conditions would be incurred voluntarily.
    Estimate prepared by: Federal costs: Chad Chirico; Impact 
on state, local, and tribal governments: Lisa Ramirez-Branum; 
Impact on the private sector: Peter Richmond.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 2786 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             Section-By-Section Analysis of the Legislation


Section 1. The short title is the ``Native American Housing Assistance 
        and Self-Determination Reauthorization Act of 2007''

Section 2. Indian Housing Block Grant reauthorization and amendments

    This section authorizes sums as necessary for the Indian 
Housing Block Grant for five years. In 2006 and 2007 the block 
grant was $624 million (which is divided among more than 550 
tribes by formula). The President's 2008 budget requests $627 
million for the block grant.
    The section makes the following amendments to NAHASDA:
     Federal Supply Sources--The purpose of this 
amendment is to make Federal supply sources through the GSA 
more accessible to tribes--for example, allowing tribes and 
TDHEs (tribally designated housing entities) to receive 
government discounts when traveling for housing business.
     Tribal Preference in Employment and Contracting--
The purpose of this amendment is to expressly recognize tribal 
preference (pursuant to tribal law), in addition to Indian 
preference (which is already in statute), in hiring and 
contracting for NAHASDA activities.
     Program Income--The purpose of this amendment is 
to exclude from NAHASDA program income the development fee paid 
to tribes in connection with a low income housing tax credit 
project.
     Essential Families--This amendment permits tribes 
and TDHEs to provide housing or housing assistance through 
NAHASDA to any family determined to be essential to the well 
being of the community--Indian or non-Indian families. An 
example of an essential family is a doctor in a very rural area 
where other housing is not available.
     Eligibility of Local Law Enforcement Officers--
This amendment adds ``local'' law enforcement as an eligible 
family for NAHASDA funding. Currently the reference is to 
``county'' which in some cases is not sufficient to cover all 
law enforcement officers that serve Indian Country.
     Operation and Maintenance Costs--The amendment 
expressly provides that the NAHASDA grant may be used to 
support operational costs of units built with NAHASDA funds, 
such as rental assistance. In practice this already happens.
     Reserve Accounts--The amendment allows tribes to 
establish a reserve account up to 20 percent of their NAHASDA 
grant. It must be invested pursuant to NAHASDA requirements and 
any interest income is considered NAHASDA program income. The 
use of the funds is subject to the tribes housing plan approved 
by HUD.
     Use of Grant Amounts over Extended Periods 
(Carryover)--The amendment expressly permits a tribe to carry 
over its NAHASDA grant from year to year. In practice this 
already happens. Carry-over funds are subject to a tribe's 
housing plan approved by HUD.
     De Minimis Exemption for Procurement--This 
amendment eliminates the competitive procurement rules and 
procedures for purchases of goods and services under $5,000. 
(Tribes will no longer have to obtain a competitive bid for a 
$20 hammer.)
     Availability of Records (Criminal background 
checks)--Tribes and TDHEs may currently obtain a criminal 
background check on tenants. This amendment expands the check 
to applicants for employment for work with a TDHE or doing 
housing-related work for a tribe.

Section 3. Self-determined housing activities for tribal communities

    This section creates a self-determination program whereby 
tribes may set aside 15 percent of their NAHASDA grant, up to 
$1 million, for housing activities that are not approved or 
directly regulated by HUD. In 2011, HUD will conduct a review 
of the program based on results and report to Congress. Tribes 
are prohibited from using the money for infrastructure, 
commercial and economic development, and operating costs.

Section 4. HOME

    This section provides that NAHASDA does not prohibit tribes 
from competing for HOME funds; and allows tribes to more freely 
compete for HOME funds. It clarifies that a state may not 
prohibit such competition for HOME funds based on NAHASDA.

Section 5. GAO study of NAHASDA

    Requires GAO to study the effectiveness of NAHASDA for 
tribes of different sizes; specifically with respect to smaller 
tribes for which grants of lesser or minimum amounts have been 
made under the Act. GAO must report to Congress in 12 months 
and make recommendations regarding any appropriate changes to 
NAHASDA derived from the study.

Section 6. Title VI loan guarantees education program and 
        reauthorization of the loan guarantee program

    This section requires HUD to conduct educational seminars 
with tribes on how to utilize the loan guarantee program 
authorized under Title VI and reauthorizes sums as necessary 
for the Title VI loan guarantee program for five years. Under 
the Title VI loan guarantee program, tribes can use future 
NAHASDA grants as collateral to obtain loans for housing 
activities.

Section 7. Title VII training and technical assistance reauthorization

    This section reauthorizes sums as necessary for a national 
organization that represents the housing needs of tribes to 
provide training and technical assistance to tribes regarding 
housing.

Section 8. Title VIII Native Hawaiian block grant reauthorization

    This section reauthorizes sums as necessary for the housing 
assistance program and block grant for Native Hawaiians for 
five years. It makes no program changes. The Native Hawaiian 
block grant was $9 million in 2006 and 2007. The President's 
budget requests $6 million for 2008.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

 NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996


SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
Sec. 1. Short title.
     * * * * * * *

                 TITLE II--AFFORDABLE HOUSING ACTIVITIES

                 Subtitle A--General Block Grant Program

     * * * * * * *

  Subtitle B--Self-Determined Housing Activities for Tribal Communities

Sec. 231. Purposes.
Sec. 232. Authority.
Sec. 233. Use of amounts for housing activities.
Sec. 234. Inapplicability of other provisions.
Sec. 235. Review and report.
     * * * * * * *

TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER INCORPORATED 
                                PROGRAMS

     * * * * * * *
Sec. 509. Effect on HOME Investment Partnerships Act.

           *       *       *       *       *       *       *


              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

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 subtitle A of 
title II and to carry out self-determined housing activities 
for tribal communities programs under subtitle B of such title. 
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.

           *       *       *       *       *       *       *

  (g) Use for Affordable Housing Activities Under Plan.--Except 
as provided in subsection (h) of this section and subtitle B of 
title II, 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.

           *       *       *       *       *       *       *

  (j) Federal Supply Sources.--For purposes of section 501 of 
title 40, United States Code (relating to services for 
executive agencies), an Indian tribe or tribally designated 
housing entity shall be considered to be an executive agency 
when carrying out housing programs, services, functions and 
activities under the tribe or tribally designated housing 
entity, and its employees shall be eligible to have access to 
such sources of supply on the same basis as employees of an 
executive agency.
  (k) Tribal Preference in Employment and Contracting.--
Notwithstanding any other provision of law, with respect to any 
grant made under this Act on behalf of an Indian tribe that is 
intended to benefit one tribe, the tribal employment or 
contract preference laws adopted by such tribe shall govern 
with respect to the administration of the grant or portion of 
the grant.

SEC. 102. INDIAN HOUSING PLANS.

  (a) * * *
  (b) 5-Year Plan.--Each housing plan under this section shall 
be in a form prescribed by the Secretary and shall contain, 
with respect to the 5-year period beginning with the fiscal 
year for which the plan is submitted, the following 
information:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Self-determined housing activities program.--A 
        statement of the manner in which the program for the 
        Indian tribe under subtitle B of title II will be 
        carried out and implemented, and an overview of the 
        benefits to the low-income community intended to be 
        achieved from activities to be undertaken during the 
        period pursuant to the program for the Indian tribe 
        under subtitle B of title II.
  (c) 1-Year Plan.--A housing plan under this section for an 
Indian tribe shall be in a form prescribed by the Secretary and 
contain the following information relating to the upcoming 
fiscal year for which the assistance under this Act is to be 
made available:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Financial resources.--An operating budget for the 
        recipient, in a form prescribed by the Secretary, that 
        includes--
                  (A) an identification and a description of 
                the financial resources reasonably available to 
                the recipient to carry out the purposes of this 
                Act, including an explanation of the manner in 
                which amounts made available will leverage 
                additional resources and a description of any 
                amounts made available pursuant to a grant 
                under section 101 for the Indian tribe for any 
                preceding fiscal year which have not been, or 
                are not expected to be, obligated or expended 
                before the beginning of the fiscal year for 
                which the plan is submitted, including any 
                amounts in any reserve account established 
                pursuant to section 202(9); and

           *       *       *       *       *       *       *

          (7) Self-determined housing activities program.--A 
        statement of housing activities to be undertaken during 
        the period pursuant to the program for the Indian tribe 
        under subtitle B of title II and a description of the 
        benefit such activities will provide for the low-income 
        community.

           *       *       *       *       *       *       *


SEC. 103. REVIEW OF PLANS.

  (a) * * *

           *       *       *       *       *       *       *

  [(e) Effective Date.--This section and section 102 shall take 
effect on the date provided by the Secretary pursuant to 
section 106(a) to provide for timely submission and review of 
Indian housing plans as necessary for the provision of 
assistance under this Act in fiscal year 1998.]
  (e) Self-Determined Activities Program.--Notwithstanding any 
other provision of this section, the Secretary--
          (1) shall review the information included in an 
        Indian housing plan pursuant to subsections (b)(4) and 
        (c)(7) only to determine whether such information is 
        included for purposes of compliance with the 
        requirement under section 232(b)(2); and
          (2) may not approve or disapprove an Indian housing 
        plan based on the content of the particular benefits, 
        activities, and results included pursuant to such 
        subsections.

SEC. 104. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

  (a) Program Income.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Exclusion from program income of regular 
        developer's fees for low-income housing tax credit 
        projects.--Notwithstanding any other provision of the 
        Act, any income derived from a regular and customary 
        developer's fee for any project assisted with a low-
        income housing tax credit under section 42 of the 
        Internal Revenue Code of 1986 that is initially funded 
        with grant funds provided under this Act, which fee is 
        approved by the State housing credit agency, shall not 
        be considered to be program income.

           *       *       *       *       *       *       *


SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated for grants under this 
title such sums as may be necessary for each of [fiscal years 
1998 through 2007] fiscal years 2008 through 2012. This section 
shall take effect on the date of the enactment of this Act.

           *       *       *       *       *       *       *


                TITLE II--AFFORDABLE HOUSING ACTIVITIES

Subtitle A--General Block Grant Program

           *       *       *       *       *       *       *


SEC. 201. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.

  (a) * * *
  (b) Eligible Families.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) [Non-indian families] Essential families.--
        Notwithstanding paragraph (1), a recipient may provide 
        housing or housing assistance provided through 
        affordable housing activities assisted with grant 
        amounts under this Act for a [non-Indian] family on an 
        Indian reservation or other Indian area if the 
        recipient determines that the presence of the family 
        [on the Indian reservation or other Indian area] is 
        essential to the well-being of Indian families and the 
        need for housing for the family cannot reasonably be 
        met without such assistance.
          (4) Law enforcement officers.--A recipient may 
        provide housing or housing assistance provided through 
        affordable housing activities assisted with grant 
        amounts under this Act for a law enforcement officer on 
        an Indian reservation or other Indian area, if--
                  (A) the officer--
                          (i) is employed on a full-time basis 
                        by the Federal Government or a State, 
                        county, [or], or other unit of local 
                        government, or a lawfully recognized 
                        tribal government; and

           *       *       *       *       *       *       *

          [(6)] (7) Exemption.--Title VI of the Civil Rights 
        Act of 1964 and title VIII of the Civil Rights Act of 
        1968 shall not apply to actions by federally recognized 
        tribes and the tribally designated housing entities of 
        those tribes under this Act.

SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

  Affordable housing activities under this title are 
activities, in accordance with the requirements of this title, 
to develop or to support affordable housing for rental or 
homeownership, or to provide housing services with respect to 
affordable housing, through the following activities:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Housing management services.--The provision of 
        management services for affordable housing, including 
        preparation of work specifications, loan processing, 
        inspections, tenant selection, management of tenant-
        based rental assistance, operation and maintenance of 
        units developed with amounts provided under this Act, 
        and management of affordable housing projects.

           *       *       *       *       *       *       *

          (9) Reserve accounts.--The deposit of amounts, 
        including grant amounts under section 101, in a reserve 
        account established for an Indian tribe only for the 
        purpose of accumulating amounts for funding affordable 
        housing activities under this section in accordance 
        with the Indian housing plan for the tribe, except that 
        not more than 20 percent of any grant amounts under 
        section 101 on behalf of any Indian tribe for any 
        fiscal year may be used under this paragraph. Amounts 
        in such a reserve account may be invested only subject 
        to the same limitations applicable to grant amounts 
        under section 204(b). Any income resulting from amounts 
        in any such reserve account shall be considered to be 
        program income for purposes of this Act.

SEC. 203. PROGRAM REQUIREMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Use of Grant Amounts over Extended Periods.--To the 
extent that the Indian housing plan for a tribe provides for 
the use of amounts from a grant under section 101 over more 
than one fiscal year or for affordable housing activities for 
which such funds will be committed for use or expended in a 
subsequent fiscal year, the Secretary may not require amounts 
from such a grant to be used, or committed for use, any sooner 
than so provided under such Indian housing plan.
  (g) De Minimis Exemption for Procurement of Goods and 
Services.--Notwithstanding any other provision of law, any 
rules and procedures regarding competitive procurement 
otherwise applicable to a recipient shall not apply to the 
recipient in the case of procurement of goods and services 
under $5,000 with grant amounts under this Act.

           *       *       *       *       *       *       *


SEC. 208. AVAILABILITY OF RECORDS.

  (a) Provision of Information.--Notwithstanding any other 
provision of law, except as provided in subsection (b), the 
National Crime Information Center, police departments, and 
other law enforcement agencies shall, upon request, provide 
information to Indian tribes or tribally designated housing 
entities regarding the criminal conviction records of (1) adult 
applicants for, or tenants of, housing assisted with grant 
amounts provided to such tribe or entity under this Act for 
purposes of applicant screening, lease enforcement, and 
eviction, or (2) adult applicants for employment with the tribe 
in positions relating to the tribe's activities under this Act 
or its other housing-related activities or with the tribally 
designated housing entity, for purposes of applicant screening.

           *       *       *       *       *       *       *


 Subtitle B--Self-Determined Housing Activities for Tribal Communities

SEC. 231. PURPOSES.

  The purposes of this subtitle are to establish a self-
determined housing activities for the tribal communities 
program to provide Indian tribes with the flexibility to use a 
portion of the grant amounts under section 101 for the tribe in 
manners that are wholly self-determined by the tribe for 
housing activities involving construction, acquisition, or 
rehabilitation of housing that will benefit the community 
served by the tribe.

SEC. 232. AUTHORITY.

  (a) In General.--Under the program under this subtitle, for 
each of fiscal years 2008 through 2012, the recipient for each 
qualifying Indian tribe may use the amounts specified in 
subsection (c) in accordance with this subtitle.
  (b) Qualifying Indian Tribes.--For purposes of this section, 
the term ``qualifying Indian tribe'' means, with respect to a 
fiscal year, an Indian tribe or tribally designated housing 
entity that--
          (1) a grant is made in behalf of under section 101;
          (2) has complied with the requirements under 
        subsections (b)(4) and (c)(7) of section 102; and
          (3) has no unresolved significant and material audit 
        findings or exceptions in the most recent annual audit 
        completed under chapter 75 of title 31, United States 
        Code (commonly known as the Single Audit Act), or in an 
        independent financial audit prepared in accordance with 
        generally accepted auditing principles.
  (c) Amount.--With respect to a fiscal year and a recipient, 
the amounts specified in this subsection are amounts from any 
grant under section 101 for the recipient for the fiscal year, 
as determined by the recipient, but in no case exceeding the 
lesser of (1) 15 percent of the total grant amount for the 
recipient for such fiscal year, or (2) $1,000,000.

SEC. 233. USE OF AMOUNTS FOR HOUSING ACTIVITIES.

  (a) Eligible Housing Activities.--Any amounts made available 
for use under this subtitle by a recipient for an Indian tribe 
shall be used only for housing activities, as selected at the 
discretion of the recipient and set forth in the Indian housing 
plan for the tribe pursuant to section 102(c)(7), for the 
construction, acquisition or rehabilitation of housing that 
provide a benefit to families described in section 201(b)(1).
  (b) Prohibition on Certain Activities.--Amounts made 
available for use under this subtitle may not be used for any 
costs of providing infrastructure, commercial and economic 
development, and operating costs of housing.

SEC. 234. INAPPLICABILITY OF OTHER PROVISIONS.

  (a) In General.--Except as specifically provided in this Act, 
the provisions of title I, subtitle A of title II, and titles 
III through VIII shall not apply to the program under this 
subtitle or to amounts made available in accordance with this 
subtitle.
  (b) Applicable Provisions.--The following provisions of 
titles I through VIII shall apply to the program under this 
subtitle and amounts made available in accordance with this 
subtitle:
          (1) Section 101(c) (relating to local cooperation 
        agreements).
          (2) Subsections (d) and (e) of section 101 (relating 
        to tax exemption).
          (3) Section 102(c)(5) (relating to certification of 
        compliance).
          (4) Section 104 (relating to treatment of program 
        income and labor standards).
          (5) Section 105 (relating to environmental review).
          (6) Section 201(b) (relating to eligible families).
          (7) Section 201(b)(7) (relating to preference for 
        tribal members and other Indian families).
          (8) Section 203(c) (relating to insurance coverage).
          (9) Section 209 (relating to noncompliance with 
        affordable housing requirement).
          (10) Section 401 (relating to remedies for 
        noncompliance).
          (11) Section 408 (relating to public availability of 
        information).
          (12) Section 702 (relating to 50-year leasehold 
        interests in trust or restricted lands for housing 
        purposes).

SEC. 235. REVIEW AND REPORT.

  (a) Review.--During calendar year 2011, the Secretary shall 
conduct a review of the results achieved by the program under 
this subtitle to determine--
          (1) the housing constructed, acquired, or 
        rehabilitated under the program;
          (2) the effects of such housing constructed, 
        acquired, or rehabilitated on costs to low-income 
        families of affordable housing;
          (3) the effectiveness of each recipient in achieving 
        the results intended to be achieved, as set forth in 
        the Indian housing plan for the Indian tribe; and
          (4) the need for, and effectiveness of, extending the 
        duration of the program and increasing the amount of 
        grants under section 101 that may be used under the 
        program.
  (b) Report.--Not later than December 31, 2011, the Secretary 
shall submit a report to the Congress setting forth the 
information obtained pursuant to the review under subsection 
(a), which shall include conclusions and recommendations of the 
Secretary with respect to the program under this subtitle, 
including--
          (1) recommendations regarding extension of the 
        program for subsequent fiscal years and increasing the 
        amount pursuant to section 232(c) that may be used 
        under the program; and
          (2) recommendations for--
                  (A) specific Indian tribes (or recipients) 
                that should be prohibited from participating in 
                the program for failure to achieve results, and 
                the period for which such prohibition should 
                remain in effect; or
                  (B) standards and procedures by which tribes 
                (or recipients) may be prohibited from 
                participating in the program for failure to 
                achieve results.
  (c) Provision of Information to Secretary.--Notwithstanding 
any other provision of the Act, recipients participating in the 
program under this subtitle shall provide such information to 
the Secretary as the Secretary may request, in sufficient 
detail and in a timely manner sufficient to ensure that the 
review and report required by this section is accomplished in a 
timely manner.

           *       *       *       *       *       *       *


TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER INCORPORATED 
PROGRAMS

           *       *       *       *       *       *       *


SEC. 509. EFFECT ON HOME INVESTMENT PARTNERSHIPS ACT.

  The amendments made by this title, and the provisions of this 
title and this Act, may not be construed to prohibit or prevent 
any insular area or participating jurisdiction (as such terms 
are used for purposes of the HOME Investment Partnerships Act 
(42 U.S.C. 12721 et seq.)) from providing amounts made 
available under such Act for such area or jurisdiction to 
Indian tribes, or tribally designated housing entities, for use 
in accordance with the HOME Investment Partnerships Act.

     TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
ACTIVITIES

           *       *       *       *       *       *       *


SEC. 604. TRAINING AND INFORMATION.

  The Secretary, in cooperation with eligible public entities, 
shall carry out training and information activities with 
respect to the guarantee program under this title. Such 
activities shall include conducting educational seminars with 
tribes and tribally designated housing entities on how to 
utilize the loan guarantee program under this title.

SEC. 605. LIMITATIONS ON AMOUNT OF GUARANTEES.

  (a) Aggregate Fiscal Year Limitation.--Notwithstanding any 
other provision of law and subject only to the absence of 
qualified applicants or proposed activities and to the 
authority provided in this title, to the extent approved or 
provided in appropriations Acts, the Secretary may enter into 
commitments to guarantee notes and obligations under this title 
with an aggregate principal amount not to exceed $400,000,000 
for each of [fiscal years 1997 through 2007] fiscal years 2008 
through 2012.
  (b) Authorization of Appropriations for Credit Subsidy.--
There are authorized to be appropriated to cover the costs (as 
such term is defined in section 502 of the Congressional Budget 
Act of 1974) of guarantees under this title such sums as may be 
necessary for each of [fiscal years 1997 through 2007] fiscal 
years 2008 through 2012.

           *       *       *       *       *       *       *


TITLE VII--OTHER HOUSING ASSISTANCE FOR NATIVE AMERICANS

           *       *       *       *       *       *       *


SEC. 703. TRAINING AND TECHNICAL ASSISTANCE.

  There are authorized to be appropriated for assistance for a 
national organization representing Native American housing 
interests for providing training and technical assistance to 
Indian housing authorities and tribally designated housing 
entities such sums as may be necessary for each of [fiscal 
years 1997 through 2007] fiscal years 2008 through 2012.

           *       *       *       *       *       *       *


TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

           *       *       *       *       *       *       *


SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Department of 
Housing and Urban Development for grants under this title such 
sums as may be necessary for each of [fiscal years 2001, 2002, 
2003, 2004, and 2005.] fiscal years 2008, 2009, 2010, 2011 and 
2012.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    I applaud the committee's efforts today to reauthorize 
NAHASDA. I have some additional views I would like to add. I 
was prepared to offer an amendment to this bill to add a 
section promoting economic infrastructure. By agreement with 
the Chairman that legislation has been embodied in a stand 
alone bill (H.R. 3002) because although this legislation 
continues the practice of giving Tribes more flexibility to 
develop housing, I believe we can and should do more. NAHASDA 
reauthorization is critical to addressing Native American 
housing needs. Tribes need adequate flexibility and autonomy to 
use Indian Housing Block Grant dollars efficiently and in a 
manner that makes the most sense for tribal members' specific 
needs. Since NAHASDA was implemented in 1996, tribes have seen 
more flexibility to use their grant money for infrastructure 
and rehabilitation of homes. I believe we need to take a closer 
look down the road to address infrastructure support and 
economic development in future legislation, and I look forward 
to working toward helping Tribes to meet their housing goals.
                                                     Stevan Pearce.

                            ADDITIONAL VIEWS

    The underlying Native Hawaiian housing program that we are 
set to reauthorize within NAHASDA reauthorization is one of 
many benefits that currently flow from the federal government 
to Native Hawaiians--there are roughly 160 current statutes 
that confer such benefits. However, in 2000, the Supreme Court 
put many of these benefits in jeopardy with its decision in 
Rice v. Cayetano.
    The Court's decision in Rice has led many to conclude that 
the current configuration of justices would likely strike down 
most federal benefits flowing to Native Hawaiians as a racial 
set-aside, if given a chance. As a result, the Hawaiian 
Congressional delegation has championed separate legislation to 
provide a process for the United States to recognize Native 
Hawaiians as a governing entity, i.e. a tribe that is political 
in nature. Instead of recognizing a currently-existing 
political entity that has authority over its members, the 
legislation (H.R. 505) would create one from scratch.
    While the Financial Services Committee is not considering 
the sovereignty bill (H.R. 505), the Native American Housing 
Assistance and Self-Determination Reauthorization Act (H.R. 
2786) should nonetheless give us pause before we reauthorize 
funding programs that are more than likely unconstitutional. 
This bill, H.R. 2786, which contains a provision that 
reauthorizes federal funding for Native Hawaiian housing, 
should not be construed by any future court as Congress using 
its power under the Indian Commerce Clause to indirectly confer 
tribal status on the Native Hawaiian people.
    America is a melting pot of cultures from around the world. 
Justice Kennedy noted as much in his opinion in Rice v. 
Cayetano. ``As the State of Hawaii attempts to address these 
realities, it must, as always, seek the political consensus 
that begins with a shared purpose. One of the necessary 
beginning points is this principle: The Constitution of the 
United States, too, has become the heritage of all the citizens 
of Hawaii.''
                                                     John Campbell.