[Congressional Record Volume 141, Number 34 (Thursday, February 23, 1995)]
[Senate]
[Page S2990]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


        THE NATIVE AMERICAN FINANCIAL SERVICES ORGANIZATION ACT

  Mr. CAMPBELL. Mr. President, I want to take a few moments to speak on 
legislation I introduced last week entitled the ``Native American 
Financial Services Organization Act,'' S. 436. This legislative 
initiative is the culmination of extensive deliberations between 
officials from the Department of Housing and Urban Development, the 
Department of the Treasury, the USDA, members of my staff, and staff of 
the Senate Committee on Indian Affairs.
  The primary purpose of the Native American Financial Services 
Organization Act is to begin to look at innovative funding mechanisms 
to address the critical housing needs prevalent in most native American 
communities.
  The cornerstone of this legislation is the establishment of a native 
American Financial Services Organization as a limited-government 
chartered corporation that would have the authority to:
  Assist native American communities to create local financial 
institutions that will attract capital investment in housing and 
economic development in Indian communities.
  And, to develop and provide specialized technical assistance on how 
to overcome barriers to primary mortgage lending on native American 
lands, such as issues relating to trust lands, discrimination, and 
inapplicability of standard underwriting criteria.
  As a matter of consistency this legislation is intended to 
supplement, not duplicate, the efforts of any other government-
sponsored enterprise or organization.
  Through a cooperative agreement with the Community Development 
Financial Institutions [CDFI] fund established in the Riegle Community 
Development Banking and Regulatory Improvement Act, the Native American 
Financial Services Organization will provide technical assistance to 
native American financial institutions pursuant to the provisions of 
the CDFI fund.
  Mr. President, last week Secretary Cisneros testified before the 
Committee on Indian Affairs. In his remarks, he discussed HUD's 
reinvention blueprint for native American programs in the context of 
overall HUD reorganization.
  I was particularly impressed with his commitment to revitalize and 
reorganize the Department of Housing and Urban Development so that 
local communities, and in this instance Indian communities, are further 
empowered to administer housing programs with greater flexibility.
  In addition to consolidating many existing programs into funds, which 
will be administered as block grants, the Secretary reiterated his 
commitment to seek out alternative, innovative funding mechanisms that 
could be a catalyst for supplementing existing Federal dollars with 
greater private investment.
  Mr. President, as the Chair is probably aware, housing on Indian 
reservations is terrible. The existing housing conditions prevalent in 
many Indian reservation communities are so bad an estimated 50,000 
families are in need of new homes. And further, according to a study 
completed by the Commission on American Indian, Alaska Native, and 
Native Hawaiian Housing, the total backlog of needed homes approaches 
5,500 or an estimated cost of $460 million.
  I think it is realistic to say that under our current fiscal 
constraints, Congress will probably not be able to appropriate the 
necessary funding to meet such a large backlog of basic housing needs.
  It is for this very reason that I believe the Native American 
Financial Services Organization Act is a viable solution to existing 
housing crisis in our Indian reservation communities. I want to thank 
my colleagues Senator McCain, Senator Inouye, and Senator Daschle for 
cosponsoring this important legislative initiative and look forward to 
its speedy passage.
  The ACTING PRESIDENT pro tempore. The Senator from Texas is 
recognized.

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