[Congressional Record Volume 145, Number 34 (Thursday, March 4, 1999)]
[Senate]
[Page S2316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON (for himself, Mr. Inhofe, Mr. Conrad, Mr. Kerry, 
        Mr. Daschle, Mr. Inouye, Mr. Wellstone, Mr. Sarbanes, Mr. 
        Kerrey, Mr. Kennedy, Mr. Dorgan, Mr. Reid, Mr. Baucus, Mr. 
        Bryan, and Mrs. Boxer):
  S. 540. A bill to amend the Internal Revenue Code of 1986 to provide 
that housing assistance provided under the Native American Housing 
Assistance and Self-Determination Act of 1996 be treated for purposes 
of the low-income housing credit in the same manner as comparable 
assistance; to the Committee on Finance.


    low income housing tax credit equitable access for indian tribes

  Mr. JOHNSON. Mr. President, I rise today to introduce legislation 
which will correct an unintended oversight in the federal 
administration of Native American housing programs, allowing Indian 
tribes to once again access Low-Income Housing Tax Credits (LIHTCs) for 
housing development in some of this nation's most under-served 
communities. Joining me as original cosponsors of this bill are 
Senators Inhofe, Conrad, Kerry, Daschle, Inouye, Wellstone, Sarbanes, 
Kerrey, Kennedy, Dorgan, Reid, Baucus, Bryan and Boxer.
  In the 104th Congress, the Native American Housing Assistance and 
Self Determination Act (NAHASDA) was signed into law, separating Indian 
housing from public housing and providing block grants to tribes and 
their tribally designated housing authorities. Prior to passage of 
NAHASDA, Indian tribes receiving HOME block grant funds were able to 
use those funds to leverage the Low Income Housing Tax Credits 
distributed by states on a competitive basis. Unfortunately, unlike 
HOME funds, block grants to tribes under the new NAHASDA are defined as 
federal funds and cannot be used for accessing LIHTCs.
  The fact that tribes cannot use their new block grant funds to access 
a program (LIHTC) which they formerly could access is an unintended 
consequence of taking Indian Housing out of Public Housing at HUD and 
setting up the otherwise productive and much needed NAHASDA system. The 
legislation I am introducing today is limited in scope and redefines 
NAHASDA funds, restoring tribal eligibility for the LIHTC by putting 
NAHASDA funds on the same footing as HOME funds. With this technical 
correction, there would be no change to the LIHTC programs--tribes 
would compete for LIHTCs with all other entities at the state level, 
just as they did prior to NAHASDA.
  This technical corrections legislation is a minor but much needed fix 
to a valuable program that will restore equity to housing development 
across the country. The South Dakota Housing Development Authority has 
enthusiastically endorsed this legislation out of concern for equitable 
treatment of every resident of our state and to reinforce the proven 
success of the LIHTC program for housing development in rural and lower 
income communities.
  I have joined many of my colleagues in past efforts to preserve and 
increase the Low Income Housing Tax Credit program which benefits every 
state, and I ask my colleagues to recognize the importance of 
maintaining fairness in access to this program emphasized through this 
legislation and encourage my colleagues to support passage of this 
vital legislation.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 540

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CERTAIN NATIVE AMERICAN HOUSING ASSISTANCE 
                   DISREGARDED IN DETERMINING WHETHER BUILDING IS 
                   FEDERALLY SUBSIDIZED FOR PURPOSES OF THE LOW-
                   INCOME HOUSING CREDIT.

       (a) In General.--Subparagraph (E) of section 42(i)(2) of 
     the Internal Revenue Code of 1986 (relating to determination 
     of whether building is federally subsidized) is amended--
       (1) in clause (i), by inserting ``or the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 et seq.) (as in effect on October 1, 1997)'' 
     after ``this subparagraph)'', and
       (2) in the subparagraph heading, by inserting ``or native 
     american housing assistance'' after ``home assistance''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to periods after the date of the enactment of 
     this Act.
                                 ______