[Congressional Record Volume 150, Number 86 (Monday, June 21, 2004)]
[House]
[Pages H4587-H4588]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      HOMEOWNERSHIP OPPORTUNITIES FOR NATIVE AMERICANS ACT OF 2004

  Mr. RENZI. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 4471) to clarify the loan guarantee authority under title VI of 
the Native American Housing Assistance and Self-Determination Act of 
1996.
  The Clerk read as follows:

                               H.R. 4471

       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 ``Homeownership Opportunities 
     for Native Americans Act of 2004''.

     SEC. 2. FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
                   ACTIVITIES.

       Section 601 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4191) is amended by 
     adding at the end the following new subsection:
       ``(d) Limitation on Percentage.--A guarantee made under 
     this title shall guarantee repayment of 95 percent of the 
     unpaid principal and interest due on the notes or other 
     obligations guaranteed.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arizona (Mr. Renzi) and the gentleman from Massachusetts (Mr. Capuano) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Arizona. (Mr. Renzi).


                             General Leave

  Mr. RENZI. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation, and to insert any extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arizona?
  There was no objection.
  Mr. RENZI. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I am thankful to have on the House floor today H.R. 
4471, the Homeownership Opportunities For Native Americans Act, which I 
introduced earlier this week with my colleague, the gentleman from 
Utah. (Mr. Matheson).
  This bill simply returns the guarantee level for the title VI program 
to 95 percent. HUD had been administering guarantees at this level 
until OMB, for technical statutory reasons, reduced it to 80 percent.
  The lower guaranteed level would mean less participation in this 
program. Private investors are slowly becoming more comfortable 
investing in Indian country, and it is critical that this relationship 
remain in a fostered environment. To this point, asking investors to 
accept a 20 percent risk rather than the 5 percent that they had before 
will do nothing but impede the much-needed development in these areas.
  This past May, the Subcommittee on Housing of the Committee on 
Financial Services held a hearing on the Navajo Reservation in Tuba 
City, Arizona. We saw children with asthma living in houses with dirt 
floors and collapsing ceilings. Decreasing the guarantee rate 
essentially decreases the chance that these children will be able to 
move from homes in deplorable conditions into safe and healthy homes.
  The title VI loan guarantee assists federally recognized tribes and 
tribally designated housing entities who want to finance eligible, 
affordable housing activities, but are unable to secure financing 
without the assistance of Federal guarantees.
  This program is very well collateralized, as tribes must pledge 
current and future housing block grant guarantee appropriations for the 
repayment of these guaranteed funds. This program has administered $77 
million in guarantees and has not experienced even one single default.
  I thank the gentleman from Ohio (Chairman Ney); the gentlewoman from 
California (Ms. Waters), the ranking member; and the gentleman from 
Utah (Mr. Matheson) for their enthusiasm on this issue and the support 
behind this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CAPUANO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today, the House takes up important housing legislation 
to help Native American communities across America achieve 
homeownership.
  The bill we are taking up today is a direct result of a recent 
hearing held by the Subcommittee on Housing of the Committee on 
Financial Services, of which I am a member, in the Navajo Nation. With 
the leadership of the subcommittee chairman, the gentleman from Ohio 
(Mr. Ney), and the gentlewoman from California (Ms. Waters), the 
ranking member, the subcommittee learned of the significant housing 
challenges facing our Native American communities. Members who attended 
the hearing in the Navajo Nation came back to report enormous 
challenges in housing conditions that resemble those of some Third 
World nations. This bill is the first legislative result of that 
important field hearing.
  The legislation was introduced by the gentleman from Arizona (Mr. 
Renzi) and the gentleman from Utah (Mr. Matheson), both of whom 
represent the Navajo Nation. I commend the leadership of both my 
colleagues on this legislation.

                              {time}  1415

  Unfortunately, the gentleman from Utah (Mr. Matheson) was unable to 
be here today at this time. And I am pleased to be here representing 
him in his absence on behalf of this important legislation that will, 
as I stated, help Native Americans achieve home ownership. The 
gentleman from Utah (Mr. Matheson) has exercised great leadership, not 
only in housing issues for Native Americans, but for giving his Navajo 
Nation constituents a strong voice in Congress.
  This bill sets the loan guarantee level at 95 percent for a vital 
Native American housing program at HUD. This is the level that has been 
used since its implementation. However, the law is currently silent 
regarding the loan guarantee level and HUD would be forced by 
administrative rule to lower that level to 80 percent, unless Congress 
sets the level at 95 percent, which this bill will accomplish for the 
purposes that ensure that the very important housing program will 
continue to be used to help our Native American friends.
  Again, I would like it to thank the gentleman from Ohio (Mr. Ney) and 
the ranking member, the gentlewoman from California (Ms. Waters) for 
their leadership in convening the field hearing in the Navaho Nation 
that led to this important legislation. I commend the leadership of the 
gentleman from Arizona (Mr. Renzi) on this bill and his efforts on 
behalf of the Navaho people. I also would like to express appreciation 
to my esteemed colleague, the gentleman from Utah (Mr. Matheson), for 
being a leader on this bill and for being a strong leader and advocate 
in Congress for all Native American items.
  Mr. Speaker, I yield back the balance of my time.
  Mr. RENZI. Mr. Speaker, I yield 5 minutes to the gentleman from 
Wisconsin (Mr. Green).
  Mr. GREEN of Wisconsin. Mr. Speaker, I rise today in support of my 
colleague, Mr. Renzi's bill, the Homeownership Opportunities for Native 
Americans Act. I would like to begin by commending the gentleman from 
Arizona (Mr. Renzi) for the important work he is doing in the area of 
Native American housing. He is shining a light on the vital need for 
safe and affordable housing on Indian reservations all across this 
country, a need that runs deep, a need which our government has all too 
often failed to address.
  I was unable to attend the Housing Subcommittee hearing earlier this 
year that has been referenced in the district of the gentleman from 
Arizona (Mr. Renzi), but I have several reservations in my district and 
my own State, and I know firsthand just how critical the need for 
housing is.
  H.R. 4471 amends the Native American Housing Assistance and Self-
Determination Act of 1996 to provide statutory authority for the Title 
VI program to continue to operate at a 95 percent loan guarantee level. 
While the program has been operating at this level for some time, a 
recent decision by OMB to reduce the loan guarantee

[[Page H4588]]

to 80 percent has put this program into jeopardy.
  Mr. Speaker, the Title VI guarantee program has issued over 77 
million dollars in loan guarantees. It has never experienced a default. 
The Federal Government should not be in the business of making it 
harder for Indian tribes to access assistance in affordable housing. We 
must reach out to local tribal organizations and leaders and do more to 
help them meet their many pressing housing challenges.
  I urge my colleagues to support this legislation in order to ensure 
continued affordable housing opportunities for Native Americans all 
across this country. It is an excellent piece of legislation.
  Mr. BACA. Mr. Speaker, I rise in support of H.R. 4471, the 
Homeownership Opportunities for Native Americans Act.
  Under Title VI of the Native American Housing Assistance and Self-
Determination Act, HUD guarantees tribal obligations to help finance 
affordable housing activities. The Title VI loan assists Indian Housing 
Block Grant borrowers who wish to finance eligible affordable housing 
activities, but are unable to secure financing without the assistance 
of a Federal guarantee.
  Native Americans deserve decent housing, a suitable living 
environment, and economic opportunities. Title VI helps make this 
happen.
  During the previous administration, Title VI guaranteed up to 95 
percent of a loan. In fact, several loans are currently pending based 
on the 95 percent loan guarantee level.
  Unfortunately, the Office of Management and Budget is now saying that 
loan guarantees cannot be greater than 80 percent of a loan.
  This bill would allow Title VI to continue to guarantee loans up to 
95 percent.
  I want to thank Congressman Renzi and Congressman Matheson, the 
authors of this bill. They understand that all Americans are entitled 
to the American dream.
  For too long our Native American brothers and sisters have been 
treated like second-class citizens. This bill is a strong step towards 
putting Native Americans on a fair playing field.
  Mr. RENZI. Mr. Speaker, I have no other speakers at this time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Terry). The question is on the motion 
offered by the gentleman from Arizona (Mr. Renzi) that the House 
suspend the rules and pass the bill, H.R. 4471.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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