[House Report 110-102]
[From the U.S. Government Publishing Office]





110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-102

======================================================================



 
         NATIVE AMERICAN HOME OWNERSHIP OPPORTUNITY ACT OF 2007

                                _______
                                

 April 20, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1676]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 1676) to reauthorize the program of the Secretary of 
Housing and Urban Development for loan guarantees for Indian 
housing, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     2
Performance Goals and Objectives.................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Constitutional Authority Statement...............................     4
Applicability to Legislative Branch..............................     5
Earmark Identification...........................................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                          Purpose and Summary

    H.R. 1676, the Native American Homeownership Opportunity 
Act of 2007 reauthorizes the Section 184 Indian Loan Program, 
which offers home ownership, property rehabilitation, new 
construction, and refinance opportunities for Native Americans. 
The primary purpose of the Section 184 program is a 100 percent 
loan guarantee program for Native American families seeking 
homeownership.
    The bill reauthorizes the Section 184 program for 5 years, 
and makes no changes to the program or underlying law.

                  Background and Need for Legislation

    Section 184 is administered by Department of Housing and 
Urban Development's (HUD) Office of Native American Programs. 
In 1992, Congress created the Section 184 program to address 
lack of private mortgage capital in Indian country by 
authorizing HUD to guarantee loans made by private lenders to 
Native Americans.
    The Section 184 program guarantees single-family (one- to 
four-family units) residential loans for Native American 
borrowers. The program provides for a 100 percent guarantee of 
the outstanding principal and interest and payment of other 
necessary and allowable expenses. The flexible underwriting, 
low down-payment, higher loanlimits, low guarantee fee, and 
absence of income limits make this the most affordable loan program 
available in tribal areas.
    According to HUD, approximately 4,200 loans have been 
guaranteed since the program's inception, and only about 30 of 
these loans have not performed. As lenders have become more 
comfortable with making loans secured by land in Indian 
Country, interest in this program has increased sharply. As a 
result, the President's 2008 budget request of $7 million for 
Section 184 is a $3 million increase from the $4 million 
appropriated for both 2006 and 2007.

                                Hearings

    No hearings were held on this legislation in the 110th 
Congress.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
March 29, 2007, and ordered H.R. 1676 reported by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken in conjunction with the consideration 
of this legislation. A motion by Mr. Frank to report the bill 
to the House with a favorable recommendation was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held hearings and 
made findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H.R. 1676, the Native American Homeownership Opportunity 
Act of 2007, reauthorizes the Section 184 Indian Loan Program 
for 5years with the goal to provide Native American families 
the opportunity for homeownership.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, tax expenditures or revenues contained in the cost 
estimate prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                                    April 10, 2007.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1676, the Native 
American Home Ownership Opportunity Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 1676--Native American Home Ownership Opportunity Act of 2007

    Summary: H.R. 1676 would authorize the appropriation of 
such sums as necessary through 2012 for Indian Housing Loan 
Guarantees, as provided under section 184 of the Housing and 
Community Development Act of 1992. Under current law, this 
program is authorized through 2007.
    In 2007, about $6 million was appropriated for the loan 
guarantee program. Assuming continued appropriations at that 
level and adjusting for anticipated inflation, CBO estimates 
that implementing H.R. 1676 would cost about $30 million over 
the 2008-2012 period. Enacting this bill would not affect 
direct spending or revenues.
    H.R. 1676 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments. Enacting this legislation would benefit Indian 
tribes.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1676 is shown in the following table. 
Estimated outlays are based on historical patterns for the loan 
guarantee program. The costs of this legislation fall within 
budget function 370 (commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2007    2008    2009    2010    2011    2012
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Indian Housing Loan Guarantee:
    Budget Authoritya...........................................       6       0       0       0       0       0
    Estimated Outlays...........................................       5       1       0       0       0       0
Proposed Changes:
    Estimated Authorization Level...............................       0       6       6       6       6       7
    Estimated Outlays...........................................       0       5       6       6       6       7
Total Spending Under H.R. 1676:
    Estimated Authorization Levela..............................       6       6       6       6       6       6
    Estimated Outlays...........................................       5       6       6       6       6      7
----------------------------------------------------------------------------------------------------------------
aThe 2007 level is the amount appropriated for that year for Indian Housing Loan Guarantees.

    Intergovernmental and private-sector impact: H.R. 1676 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Enacting this legislation would benefit 
Indian tribes.
    Estimate prepared by: Federal Costs: Susanne Mehlman; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 1676 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This Act may be cited as ``Native American Home Ownership 
Opportunity Act of 2007.''

Section 2. Loan guarantees for Native American Housing/Authorization of 
        appropriations for housing assistance

    Makes Section 184(i) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-13a(i)) applicable for 
fiscal years 2008 through 2012.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

    SECTION 184 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992


SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING.

  (a) * * *

           *       *       *       *       *       *       *

  (i) Indian Housing Loan Guarantee Fund.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Limitation on commitments to guarantee loans and 
        mortgages.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Limitation on outstanding aggregate 
                principal amount.--Subject to the limitations 
                in subparagraphs (A) and (B), the Secretary may 
                enter into commitments to guarantee loans under 
                this section in each of fiscal years [1997 
                through 2007] 2008 through 2012 with an 
                aggregate outstanding principal amount not 
                exceeding such amount as may be provided in 
                appropriation Acts for such fiscal year.

           *       *       *       *       *       *       *

          (7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to 
        carry out this section such sums as may be necessary 
        for each of fiscal years [1997 through 2007] 2008 
        through 2012.

           *       *       *       *       *       *       *


                                  
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