[Congressional Record Volume 151, Number 53 (Wednesday, April 27, 2005)]
[Senate]
[Page S4405]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA:
  S. 917. A bill to amend title 38; United States Code, to make 
permanent the pilot program for direct housing loans for Native 
American veterans; to the Committee on Veterans' Affairs.
  Mr. AKAKA. Mr. President, today I rise to offer legislation that 
would make the Native American Veteran Housing Loan Pilot Program 
permanent. In April 1992, I sponsored a bill that established the 
Native American Veteran Housing Loan Pilot Program. That bill later 
became Public Law 102-547 and authorized the Department of Veterans 
Affairs (VA) to establish a pilot program that would provide veterans 
with assistance in purchasing, constructing, and improving homes 
through 1997. This pilot program has been extended several times. In 
fact, last Session Congress extended this pilot program by three years.
  Through January of this year, 443 loans were created under this 
program. It is time to make this program permanent.
  The Native American home ownership rate is about half the rate of the 
general U.S. population. This issue partially stems from the fact that 
lenders generally require that buyers own the parcel of land on which 
their homes will be located. This is difficult for many in Indian 
Country, Alaska, and Hawaii because their homes are on trust lands. 
Most lenders decline these loan applications because Federal law 
prohibits a lender from taking possession of Native trust lands in the 
event of a default. Several Federal programs have been developed to 
provide home ownership opportunities to Native Americans. The Native 
American Veteran Housing Loan Program is one such program that has 
helped to make home ownership a reality for indigenous peoples, 
particularly Native Hawaiians.
  Under this program, VA offers loan guaranties that protect lenders 
against loss up to the amount of the guaranty if the borrower fails to 
repay the loan. Previous to the Native American Veteran Housing Loan 
Program, Native American veterans who resided on these lands were 
unable to qualify for VA home-loan benefits. With the Native American 
Veteran Housing Loan Program, indigenous peoples residing on trust 
lands are now able to use this very important VA benefit.
  The Native American Veteran Housing Loan Program is intended to serve 
veterans who are eligible for homes under the Hawaiian Homes Commission 
Act, and who reside on Pacific Islands lands that have been communally 
owned by cultural tradition and on Native American trust lands on the 
continental United States. This VA-administered program assists Native 
American veterans by providing them direct loans to build or purchase 
homes on such lands.
  Before VA can make a loan on tribal trust land, the tribe must enter 
into a Memorandum of Understanding with VA to clarify some of the 
issues that could arise when administering the program. During fiscal 
year 2004, VA entered into two Memoranda of Understanding with tribal 
entities. In addition, VA is currently negotiating nine Memoranda of 
Understanding with Native American tribes. Trust lands that are 
eligible for this program include tribally and individually held 
trusts. Per a Memorandum of Understanding between VA and the Bureau of 
Indian Affairs (BIA), VA and BIA Regional Offices work to implement 
this loan program together. Additionally, VA personnel continue to 
conduct outreach with tribal representatives to solicit assistance in 
reaching out to tribal members who are veterans.
  Per capita, Native Americans have the highest percentage of people 
serving in the United States Armed Forces. While they represent less 
that 1 percent of the population, they make up 1.6 percent of the Armed 
Forces. I want to reiterate that through January of 2005, 443 loans 
have been made to Native Americans under this program. This allows 
those who have served our nation so honorably and their families to be 
a part of the American Dream of home ownership. We need to make the 
Native American Veteran Housing Loan permanent this year.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 917

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

     SECTION 1. PERMANENT AUTHORITY FOR HOUSING LOANS FOR NATIVE 
                   AMERICAN VETERANS.

       (a) Permanent Authority.--Section 3761 of title 38, United 
     States Code, is amended to read as follows:

     ``Sec. 3761. Authority for housing loans for Native American 
       veterans

       ``(a) The Secretary shall make direct housing loans to 
     Native American veterans in accordance with the provisions of 
     this subchapter.
       ``(b) The purpose of loans under this subchapter is to 
     permit Native American veterans to purchase, construct, or 
     improve dwellings on trust land.''.
       (b) Conforming Amendments.--Section 3762 of such title is 
     amended--
       (1) in subsection (a), by inserting ``under this 
     subchapter'' after ``Native American veteran'' in the matter 
     preceding paragraph (1);
       (2) in subsection (b)(1)(E), by striking ``in order to 
     ensure'' and all that follows and inserting a period;
       (3) in subsection (c)(1)(B), by striking ``shall be the 
     amount'' and all that follows in the second sentence and 
     inserting ``shall be such amount as the Secretary considers 
     appropriate for the purpose of this subchapter.'';
       (4) in subsection (d)(1), by striking the second sentence;
       (5) in subsection (i)--
       (A) in paragraph (1), by striking ``of the pilot program'' 
     and all that follows and inserting ``of the availability of 
     direct housing loans for Native American veterans under this 
     subchapter.''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``under the pilot 
     program'' and all that follows and inserting ``under this 
     subchapter'';
       (ii) in subparagraph (E), by striking ``in participating in 
     the pilot program'' and inserting ``in participating in the 
     making of direct loans under this subchapter''; and
       (6) by striking subsection (j).
       (c) Clerical Amendments.--(1) The heading of subchapter V 
     of chapter 37 of such title is amended to read as follows:

     ``SUBCHAPTER V--HOUSING LOANS FOR NATIVE AMERICAN VETERANS''.

       (2) The table of contents for such chapter is amended--
       (A) by striking the matter relating to the subchapter 
     heading of subchapter V and inserting the following new item:


     ``Subchapter V--Housing Loans for Native American Veterans'';

     and
       (B) by striking the item relating to section 3761 and 
     inserting the following new item:

``3761. Authority for housing loans for Native American veterans.''.
                                 ______