[Congressional Record (Bound Edition), Volume 149 (2003), Part 16]
[House]
[Pages 21710-21713]
[From the U.S. Government Publishing Office, www.gpo.gov]




RESTORING OPERATION OF THE NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM 
    DURING FISCAL YEAR 2003 TO SCOPE IN EFFECT ON SEPTEMBER 30, 2002

  Mr. SMITH of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 2595) to restore the operation of the Native 
American Veteran Housing Loan Program during fiscal year 2003 to the 
scope of that program as in effect on September 30, 2002.
  The Clerk read as follows:

                               H.R. 2595

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

     SECTION 1. OPERATION OF NATIVE AMERICAN VETERAN HOUSING LOAN 
                   PROGRAM.

       (a) Restoration for Fiscal Year 2003 to Fiscal Year 2002 
     Level.--In carrying out the pilot program provided by 
     subchapter V of chapter 37 of title 38, United States Code, 
     under which the Secretary of Veterans Affairs is authorized 
     to make direct housing loans to Native American veterans, the 
     Secretary shall during fiscal year 2003 carry out that 
     program without regard to the proviso under the heading 
     ``Native American Veteran Housing Loan Program Account'' in 
     title I of the Departments of Veterans Affairs and Housing 
     and Urban Development, and Independent Agencies 
     Appropriations Act, 2003 (division K of Public Law 108-7; 117 
     Stat. 476), and such proviso shall be treated as being of no 
     force or effect.
       (b) Savings Provision.--Any action taken by the Secretary 
     of Veterans Affairs before the enactment of this Act that is 
     inconsistent with the proviso referred to in subsection (a) 
     is hereby ratified with respect to such inconsistency.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Illinois (Mr. Evans) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, this legislation would restore the operation of the 
Native American Veteran Housing Loan Program during the current fiscal 
year to the scope of that program as it was in effect on September 30, 
2002.
  The Native American Veteran Home Loan Program was established in 1992 
as a 5-year pilot program, and Congress has extended it twice, most 
recently through 2005. This program is intended to assist eligible 
veterans living on trust or equivalent lands to secure loans at market 
rates to purchase, build or to renovate homes. VA has made over 300 
home loans under this program. The Department of Veterans Affairs has 
stopped making loans under the Native American direct loan program 
because of a limitation contained in the 2003 Appropriations Act, which 
capped the amount of loans that can be made under this program to $5 
million. This limitation was requested by the administration with the 
assumption that the limit would not be breached. VA advised us as of 
June 11 in a letter that it has already exceeded that limit.
  Mr. Speaker, 47 loans have already been made during the fiscal year, 
many of them refinancing loans. The VA committee has been advised that 
construction of a number of homes has been suspended directly 
attributable to the imposition of this moratorium. Pending applications 
are also on hold. I see no reason, in effect, why our Native American 
veterans should lose access

[[Page 21711]]

to home loans in this way. We should celebrate their success, not put 
an artificial cap on it, especially at a time when refinancing is a way 
to save veterans thousands of dollars each and every year. We need to 
end this moratorium as soon as possible, and that is the purpose of 
this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. EVANS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of this resolution. This will 
correct the terrible error that is depriving Native American veterans 
access to home loans under the Native Americans Veterans Housing 
Program.
  While the necessary funding for this loan program has already been 
appropriated, the administration requested a cap of $5 million on the 
loans of fiscal year 2003. By the time that fiscal year 2003 
appropriations bill was signed, the cap had already been exceeded. Some 
Native Americans in Hawaii have partially built their homes but now are 
unable to complete that construction. This is no way to treat the brave 
Americans who fought for our country. This is a mistake that must be 
corrected now. Mr. Speaker, this bill would simply remove the existing 
cap on expenditures under this program. No additional funding is needed 
to restore the program to its original intent. I urge all Members to 
support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Arizona (Mr. Renzi), a member of the 
Committee on Veterans' Affairs.
  Mr. RENZI. Mr. Speaker, I am privileged to represent more Native 
Americans than any other congressman. Recently my good friend, the 
gentleman from New Mexico (Mr. Udall), and I visited the Navajo Nation, 
the homeland of the Code Talkers, a distinct group of individuals that 
made significant contributions to the security of our Nation in World 
War II.
  It is deplorable to visit the Navajo Nation and see the conditions of 
their children, of their families, living in dilapidated housing. 
Therefore, Congress enacted legislation to establish a program to 
address this difficulty. What makes it harder is that Native Americans 
live on sovereign land and the ability to secure collateral makes it 
harder for loans to be made.
  The program that was established by Congress to address this issue is 
scheduled to conclude at the end of this fiscal year. However, because 
we set a cap limiting the number of loans under this program, the 
Department of Veterans Affairs exceeded the limit earlier this year. 
H.R. 2595 would lift the caps and allow the Department to continue to 
process the backlog of new loan applications.
  I am proud to be a cosponsor of H.R. 2595 and believe the program 
provides equal opportunity to all veterans, especially Native 
Americans, to become homeowners.
  In October 2000 a joint study of the Department of Housing and Urban 
Development and the Department of Treasury found that ownership among 
Native Americans is among the lowest in the country at just 33 percent. 
We must hold true and honor our commitment to those who served the 
Nation and help Native American veterans enjoy the security of 
homeownership. This program has been successful in making homeownership 
a reality for Native American Indian veterans. For those who bravely 
fought to sustain this prosperous Nation, we should lift the barriers 
they face in homeownership.
  I urge my colleagues to vote favorably in favor of H.R. 2595.
  Mr. EVANS. Mr. Speaker, I yield 3 minutes to the gentleman from New 
Mexico (Mr. Udall).
  Mr. UDALL of New Mexico. Mr. Speaker, as an original cosponsor of 
this bill, I rise today to offer my strong support for the restoration 
of the Native American housing loan program. In the past, this program 
has benefited many of my constituents. Restoring it today will ensure 
that many more will benefit in the future.
  Traditionally, veterans living on tribal land, including allotted 
land, were not eligible for the VA home loan guarantees. However, this 
program has allowed many Native American veterans who might otherwise 
have been unable to obtain suitable housing or acquire direct home 
loans to do just that.
  In the 107th Congress, I introduced a bill to extend this program 
through fiscal year 2005. That bill was included in a bill that became 
Public Law 107-103. Language in the omnibus appropriations bill passed 
earlier this year caps the program at $5 million. The loans of many 
Native American veterans have been cut off. As I speak, there are homes 
that were begun under this program that remain half constructed. All 
over the Nation, Native American veterans trying to refinance their 
homes cannot do so because of this provision.
  Additionally, those veterans who have had their loans approved for 
construction cannot get the money they were promised. By restoring this 
program, we are providing an opportunity for Native American veterans 
with existing loans, as well as additional deserving Native American 
veterans to get home loans.
  Poverty, lack of economic opportunity, and a shortage of financing 
for decent affordable housing have created housing conditions on Native 
American lands that may only be described as deplorable.

                              {time}  1030

  Almost one in three Native Americans living on a reservation is poor. 
Many Native Americans have honorably served our country in the Armed 
Forces. In fact, historically Native Americans have the highest record 
of service per capita of any ethnic group. Let us continue to help them 
by restoring this much-needed program.
  In closing, I would like to thank Chairman Smith, Ranking Member 
Evans, and the staff of the Committee on Veterans' Affairs for their 
speedy work on this bill. This is an important piece of legislation. I 
urge my colleagues to support it.
  Mr. EVANS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Hawaii (Mr. Case).
  Mr. CASE. Mr. Speaker, amidst all of the disagreement and debate on 
this floor over things like war and deficits, this is a good-news 
story. I want to start some decades ago recognizing my political 
mentor, a former Member of this Chamber, my predecessor, Spark 
Matsunaga, a veteran himself, who went back and tried to determine 
whether the veterans home loan program, a successful program, was 
working for Native American veterans living on tribal or trust 
territory lands. The answer was a resounding ``no.'' The reason was 
because those lands contained restraints on alienation that are not 
applicable to other lands. So, therefore, conventional mortgage 
practices were not working. My predecessor and my current Senator, 
Daniel Akaka, took up the cause and initiated the legislation which we 
are now addressing to provide for this program to be applied on trust 
territory lands, the lands of the indigenous peoples of our country, 
whether they be in Alaska, in North America or Hawaii or the Pacific 
Islands.
  A very successful program arose, so successful that in the Pacific, 
in 300 loans granted under this program over the last 10 years, there 
has been one delinquency out of 300 programs. Three hundred programs, 
100 paid in full, 200 being paid in full, one delinquency, a fantastic 
program that has accomplished its purpose. This is good news. This is 
good news because we made a mistake and we are coming back to correct 
it and we all know it. The administration deserves credit for this, the 
ranking member deserves credit, the Chair deserves credit, the 
appropriations committee deserves credit. What we are going to do is to 
take a program that has been successful and continue it. By the way, 
when you score this program, we are always talking about money, this 
program, if this bill goes through, will return $1 million to the U.S. 
Treasury. That is how successful this is. We are not spending money; we 
are generating money from this program because of the low delinquency 
rates.

[[Page 21712]]

  I thank everybody involved. I commend this bill to the Members and 
urge its expeditious passage.
  Mr. EVANS. Mr. Speaker, I yield 4 minutes to the gentleman from 
American Samoa (Mr. Faleomavaega).
  Mr. FALEOMAVAEGA. Mr. Speaker, I certainly want to thank the 
distinguished chairman of the Committee on Veterans' Affairs from New 
Jersey and our senior ranking member from Illinois for their leadership 
and for their sensitivity in bringing this legislation to the floor for 
consideration.
  Mr. Speaker, as an original cosponsor of the original legislation 
that was offered 10 years ago, I think it is time that we no longer 
should call this legislation a pilot program. It has matured. I 
certainly want to urge my colleagues that we should increase not only 
the authorization as well as the funding levels for this important 
program.
  I rise today in support of H.R. 2595, a bill to restore the operation 
of the Native American Veteran Housing Loan Program for fiscal year 
2003. This program permits the Department of Veterans Affairs to 
provide direct home loans to Native American veterans who live not only 
on tribal lands but also on homestead lands and communal lands. 
Eligible native veterans can then use direct loan funding to purchase, 
construct or improve a home on Native American trust land. These loans 
may also be used simultaneously to purchase and improve a home or to 
refinance another VA direct loan.
  This pilot program extends to Native Americans, native Hawaiians, and 
also to my constituents in American Samoa. As a result, this program 
has been crucial to providing American Samoan veterans the opportunity 
to build and own their own homes, an opportunity that would not 
otherwise be available to them. VA's annual report to Congress for 
fiscal year 2002 reports that over 62 loans have been closed; but for 
the 10-year period, hundreds of loans have been approved because of 
this program.
  As I explained earlier, Mr. Speaker, for the benefit of my colleagues 
so we can better appreciate this unique home loan program for our 
native veterans, the thousands of American Indian veterans who live in 
reservations, when they returned to their homes, they could not obtain 
a commercial home loan as you would someone who lived in a commercially 
owned property, a fee simple, living in reservations. The same is true 
with our native Hawaiian veterans who live in what is known as 
``homestead lands,'' in the same situation where commercial lending 
institutions would not lend us money to build homes under a veterans 
program. The same is also true with my own veterans who live on 
communal lands. This is a unique program. I am very, very happy that we 
are able to continue the funding levels but also more importantly we 
need to make sure that this program continues.
  Mr. Speaker, the Native American Veteran Housing Loan Program has 
been successful in providing our native veterans the opportunity to 
build and own their own homes. It provides our native veterans the 
ability to continue to live in their own lands, to contribute to their 
communities, and to build a legacy to leave their families. This 
program needs increased authorization and funding in the years to come. 
I urge my colleagues to support this legislation.
  Mr. EVANS. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Guam (Ms. Bordallo).
  Ms. BORDALLO. Mr. Speaker, when Congress authorized the Native 
American home loan bill in 1993, it recognized the poverty and the 
homelessness of veterans from the Pacific Islands. It recognized that 
those veterans needed special assistance to access the necessary 
financing to put a roof over their heads. Ten years later, the funding 
has expired, but the challenge remains the same.
  Mr. Speaker, I understand that when the Department of Veterans 
Affairs shut down the lending program, they were on the verge of 
approving a loan to a Guam applicant. So I am pleased to join with my 
colleagues, Chairman Smith and Ranking Member Evans, in providing the 
funding authorization necessary to continue the program.
  A noteworthy aspect of the Native American home loan bill is that it 
withholds a loan fee from applicants with a service-connected 
disability. Each time I meet with veterans in Guam and hear their 
descriptions of living with the effects of Agent Orange or a post-
traumatic stress disorder, I am reminded that we have yet to repay the 
service that these men and women have given to our Nation. We need to 
provide adequate veterans benefits and services not just near where a 
military base or a VA processing center is but where the veterans are, 
places like the tribal lands of Colorado and the Chamorro land trust 
properties of Guam.
  I hope that our action here today will bring attention to the good 
work of the program and increase the knowledge of the program amongst 
Native American communities.
  Mr. EVANS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  I just want to thank the gentleman from Illinois for his leadership 
on this and for working so cooperatively with us. I also thank the 
gentleman from Arizona (Mr. Renzi), the gentleman from New Mexico (Mr. 
Udall), the gentleman from Hawaii (Mr. Abercrombie), the gentleman from 
Hawaii (Mr. Case), the gentlewoman from Guam (Ms. Bordallo), the 
gentleman from Maine (Mr. Michaud), and the gentleman from American 
Samoa (Mr. Faleomavaega) for their cosponsorship of this legislation. I 
appreciate it very much and urge the body to adopt it.
  Mr. FALEOMAVAEGA. Mr. Speaker, I would like to thank Chairman Chris 
Smith and Ranking Member Lane Evans for their support and diligent work 
regarding Native American issues. Today I rise in support of H.R. 2595, 
a bill to restore the operation of the Native American Veteran Housing 
Loan Program during Fiscal Year 2003. This pilot program permits the 
Department of Veterans Affairs to provide direct home loans to Native 
American veterans who live on tribal lands. Eligible native veterans 
can use direct loan funding to purchase, construct, or improve a home 
on Native American trust land. These loans may also be used to 
simultaneously purchase and improve a home or to refinance another VA 
direct loan.
  This pilot program extends to Native Americans, Native Hawaiians and 
to my constituents in American Samoa. For the benefit of my colleagues 
and so that we can better appreciate this unique home loan program, I 
want to explain that most native veterans live on communal or tribal 
lands. This is true for American Indian veterans who live on 
reservation lands. The same is true of our Native Hawaiian veterans who 
live on what is known in Hawaii as Homestead lands. The same is also 
true with American Samoan veterans who live on communal lands which 
cannot be sold as commercial or as fee simple property.
  Given the unique status of communal lands, thousands of native 
veterans have been denied loans by our commercial lending institutions 
and banks. However, with the creation of this pilot program, many of 
our native veterans are able to build and own their own homes and the 
VA reported that in 2002 it had closed on a total of 289 loans under 
the terms of this pilot program.
  Recently, Public Law 108-7, Consolidated Appropriations Resolution, 
placed a cap of $5 million on the amount of loans that could be 
approved under the program. But, at the time this law was enacted, VA 
had already exceeded this cap. As a result, VA is unable to make new 
loans for the remainder of the fiscal year. Because of this new cap, 
veterans are unable to complete construction on homes already in 
progress. This is unfair to our native veterans and it is imperative 
that Congress remedy this situation. H.R. 2595 will accomplish this. 
H.R. 2595 will reinstate the program retroactively and validate the 
loans which have already been made.
  The Native American Veteran Housing Loan Program has been successful 
in providing our native veterans the opportunity to build and own their 
own homes. It provides our native veterans the ability to continue to 
live on their native lands, to contribute to their communities, and to 
build a legacy for their families. It is the responsibility of Congress 
to reinstate this important program, to recognize the contributions 
made by our native veterans to our Nation and to afford them the 
opportunity to participate and realize the American dream of owning 
their own homes.

[[Page 21713]]

  This program needs increased authorization and funding in the years 
to come and I urge my colleagues to support this legislation.
  Mr. ABERCROMBIE. Mr. Speaker, I rise in strong support of this bill 
to reinstate the Native American Veteran Housing Loan program.
  I would like to thank the Chairman of the Committee on Veterans' 
Affairs, Mr. Smith, the Ranking Member, Mr. Evans, and the staff of the 
Committee on Veterans' Affairs for their work in crafting this much-
needed remedy to the present situation. I would also like to thank 
Senator Akaka for his leadership over the years on this issue. He and 
his staff have been tireless in their efforts to rectify this problem 
since it arose in May.
  In 1992, the Native American Veterans Home Loan Equity Act was 
enacted to establish and implement a pilot program to make direct 
housing loans to aid Native American (Indian, Alaska or Hawaii native, 
or Pacific Islander) veterans in purchasing, constructing, or 
improving, dwellings on trust land. Almost 11 years later, the VA has 
closed several hundred loans, and the program is a resounding success.
  Native Hawaiian veterans have greatly benefited from the loan 
program. Through the end of Fiscal Year 2002, 300 loans were closed 
throughout the Pacific. Of the 300 loans, about 215 were new 
construction loans, with the balance consisting of Interest Rate 
Reduction Loans. Although Hawaii has the highest loan volume, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and Guam have 
significant levels of activity. About 100 of the 300 loans have been 
paid in full and the other 200 are active and performing. Only one loan 
termination has occurred to date since 1992.
  This year's dramatic increase in use of the program mirrors the 
national upswing in financing new construction and refinancing existing 
loans. Home ownership has long been a hallmark of financial growth and 
community stability, and it's encouraging to see so many vets in my own 
state enjoying this benefit. However, I deeply regret that more of our 
Native American veterans were unable to take advantage of the 40-year 
historic low financing rates available a mere two and a half months 
ago. The untimely halt to this past May cut off deserving veterans from 
this financial tool. Mr. Speaker, I hope that we can do better in the 
future to correct such problems before they cause inadvertent harm.
  In the end, this measure is about equity. The Native American 
Veterans Direct Loan program exists to afford our Native American, 
Native Hawaiian, Alaskan Native, and Pacific Islander veterans on trust 
lands the same benefits available to the rest of our veterans 
community. We need to sustain this program--it's a matter of fairness.
  I urge my colleagues to support this measure.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Shaw). The question is on the motion 
offered by the gentleman from New Jersey (Mr. Smith) that the House 
suspend the rules and pass the bill, H.R. 2595.
  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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