[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[Extensions of Remarks]
[Pages 14552-14553]
[From the U.S. Government Publishing Office, www.gpo.gov]




      INTRODUCTION OF THE INSULAR AREAS COMMUNITY DEVELOPMENT ACT

                                 ______
                                 

                       HON. MADELEINE Z. BORDALLO

                                of guam

                    in the house of representatives

                        Wednesday, June 11, 2003

  Ms. BORDALLO. Mr. Speaker, today I am introducing legislation that 
will authorize qualified public housing entities in Guam, the Virgin 
Islands, American Samoa and the Commonwealth of the Northern Mariana 
Islands to participate in the ``Section 108 Loan Guarantee Program.'' 
Congresswoman Donna Christensen of the Virgin Islands and Congressman 
Eni Faleomavaega of American Samoa have joined me as original co-
sponsors of this legislation, which is important to the economic 
development of the insular areas.
  Currently, all qualified entitlement public housing entities in the 
States are authorized to apply for government-backed loans to finance 
long-term projects under the Community Development Assistance Act of 
1974 (P.L. 93-383), which established the Section 108 Loan Guarantee 
Program. Under ``Section 108,'' the States and their local governments 
may apply for amounts up to five times their annual allotments of 
Community Development Block Grant (CDBG) funding.
  Guam receives CDBG funding on an annual basis from the Department of 
Housing and Urban Development (HUD). However, many projects for which 
the funding could be utilized cost more than the annual allotment. My 
bill would authorize the insular areas that receive CDBG funding to 
apply for government-backed loans to help finance more expensive long-
term projects. Future CDBG grant money could then be used as collateral 
in the insular areas, similar to how it is currently used in several of 
the States.
  Officials at HUD have informed me that Guam, the Virgin Islands, 
American Samoa and the Commonwealth of the Northern Mariana Islands are 
excluded on the basis that

[[Page 14553]]

their CDBG grant funds are authorized under a separate sub-section from 
the States. My bill would clarify that States and Territories would 
have access to the HUD financing program irrespective of this technical 
distinction.
  My bill, the Insular Areas Community Development Act of 2003, would 
strengthen the law to provide for the same flexibility for the insular 
areas as is currently granted to the States in using CDBG funds. 
Support for this bill would recognize the need for long-term financing 
of community development projects important to the economic progress of 
the insular areas, and will result in improved planning and more 
efficient use of limited resources.

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