[House Report 110-50]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     110-50

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



 
             HAWAIIAN HOMEOWNERSHIP OPPORTUNITY ACT OF 2007

                                _______
                                

 March 15, 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

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 835]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 835) to reauthorize the programs of the 
Department of Housing and Urban Development for housing 
assistance for Native Hawaiians, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     4
Performance Goals and Objectives.................................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     7
Earmark Identification...........................................     7
Exchange of Committee Correspondence.............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     8
Additional Views.................................................    12

                          Purpose and Summary

    H.R. 835, the Hawaiian Homeownership Opportunity Act of 
2007 reauthorizes Title VIII of the Native American Housing 
Assistance and Self-Determination Act of 1996 (NAHASDA) and 
provides Native Hawaiian's greater access to two loan guarantee 
programs (Section 184(a) and NAHASDA Title VI). NAHASDA and 
Section 184s are programs administered by Department of Housing 
and Urban Development's (HUD) Office of Native American 
Programs. Title VIII provides funding to the Department of 
Hawaiian Home Lands (DHHL), which then provides housing 
services to low-income Native Hawaiian families living on 
Hawaiian home lands.

                  Background and Need for Legislation

    The Native American Housing Assistance and Self-
Determination Act of 1996 reorganized the system of housing 
assistance provided to tribes through the Department of Housing 
and Urban Development (HUD) by eliminating tribal eligibility 
for several housing programs and replacing the money that would 
be derived from those programs with the Indian Housing Block 
Grant (IHBG), which provides funds directly to tribes for 
housing services as determined by the tribes themselves. In 
2000, NAHASDA was amended to include Title VIII so that Native 
Hawaiians could receive block grant funding as well through a 
separate grant--the Native Hawaiian Housing Block Grant 
(NHHBG), which funds vital housing programs on Hawaiian home 
lands.
    Title VIII of NAHASDA was originally authorized for five 
years, through 2005, and has not been formally reauthorized 
since, although appropriations acts have continued to provide 
de facto one-year reauthorizations for the program. H.R. 835 
reauthorizes Title VIII of NAHASDA for five years through FY 
2012.
    H.R. 835 also makes two substantive changes to current law 
by expanding access for Native Hawaiian's to two loan guarantee 
programs--Section 184(a) and NAHASDA Title VI.
    Section 184(a).--H.R. 835 changes the Section 184(a) loan 
guarantee program for single-family homes on Native Hawaiian 
home lands by allowing for refinancing, striking requirements 
that a homebuyer be turned down for a loan before applying for 
a Section 184(a) loan, and eliminating the requirement to 
report on anticipated applications in the annual housing plan.
    NAHASDA Title VI.--H.R. 835 allows DHHL to become eligible 
for loan guarantees authorized under Title VI of NAHASDA. This 
program, modeled on the Section 108 Loan Guarantee Program that 
works in conjunction with HUD's Community Development Block 
Grant program (CDBG), would allow DHHL to borrow or issue 
bonded debt for large-scale housing and infrastructure 
development with the security of the Federal government, using 
the funding stream provided by HUD as collateral.
    The use of Title VI funding by American Indians and Alaska 
Natives has expanded greatly. By allowing Native Hawaiian's 
access to Title VI loans, the Committee does not intend to 
create competition for funding resources. Therefore, the 
Committee expects, at the discretion of the Appropriations 
Committee, that a separate credit subsidy will be established 
and funded as necessary to provide funding for loans to Native 
Hawaiian's under Title VI.

                                Hearings

    No hearings were held on this legislation.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
February 13, 2007, and ordered reported H.R. 835, the Hawaiian 
Homeownership Opportunity Act, favorably reported to the House 
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. A 
motion by Mr. Frank to report the bill to the House with a 
favorable recommendation was agreed to by a voice vote. During 
the consideration of the bill, the following amendment was 
disposed of by a record vote. The names of Members voting for 
and against follow:
    An amendment by Mr. Campbell, No. 1, regarding a rule of 
construction, was not agreed to by a record vote of 27 yeas and 
40 nays (Record vote No. FC-2):

                                              RECORD VOTE NO. FC-2
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................  ........        X   .........  Mr. Bachus.......        X   ........  .........
Mr. Kanjorski..................  ........        X   .........  Mr. Baker........  ........  ........  .........
Ms. Waters.....................  ........        X   .........  Ms. Pryce (OH)...        X   ........  .........
Mrs. Maloney...................  ........        X   .........  Mr. Castle.......        X   ........  .........
Mr. Gutierrez..................  ........        X   .........  Mr. King (NY)....        X   ........  .........
Ms. Velazquez..................  ........  ........  .........  Mr. Royce........        X   ........  .........
Mr. Watt.......................  ........        X   .........  Mr. Lucas........        X   ........  .........
Mr. Ackerman...................  ........        X   .........  Mr. Paul.........  ........  ........  .........
Ms. Carson.....................  ........        X   .........  Mr. Gillmor......        X   ........  .........
Mr. Sherman....................  ........        X   .........  Mr. LaTourette...  ........        X   .........
Mr. Meeks......................  ........        X   .........  Mr. Manzullo.....        X   ........  .........
Mr. Moore (KS).................  ........        X   .........  Mr. Jones........  ........        X   .........
Mr. Capuano....................  ........        X   .........  Mrs. Biggert.....  ........        X   .........
Mr. Hinojosa...................  ........        X   .........  Mr. Shays........        X   ........  .........
Mr. Clay.......................  ........        X   .........  Mr. Miller (CA)..        X   ........  .........
Mrs. McCarthy..................  ........        X   .........  Mrs. Capito......        X   ........  .........
Mr. Baca.......................  ........        X   .........  Mr. Feeney.......        X   ........  .........
Mr. Lynch......................  ........        X   .........  Mr. Hensarling...        X   ........  .........
Mr. Miller (NC)................  ........        X   .........  Mr. Garrett (NJ).        X   ........  .........
Mr. Scott......................  ........        X   .........  Ms. Brown-Waite..        X   ........  .........
Mr. Green......................  ........        X   .........  Mr. Barrett (SC).        X   ........  .........
Mr. Cleaver....................  ........        X   .........  Mr. Renzi........  ........        X   .........
Ms. Bean.......................  ........        X   .........  Mr. Gerlach......        X   ........  .........
Ms. Moore (WI).................  ........        X   .........  Mr. Pearce.......        X   ........  .........
Mr. Davis (TN).................  ........        X   .........  Mr. Neugebauer...        X   ........  .........
Mr. Sires......................  ........        X   .........  Mr. Price (GA)...        X   ........  .........
Mr. Hodes......................  ........        X   .........  Mr. Davis (KY)...        X   ........  .........
Mr. Ellison....................  ........        X   .........  Mr. McHenry......        X   ........  .........
Mr. Klein......................  ........        X   .........  Mr. Campbell.....        X   ........  .........
Mr. Mahoney (FL)...............  ........        X   .........  Mr. Putnam.......        X   ........  .........
Mr. Wilson.....................  ........        X   .........  Mrs. Blackburn...        X   ........  .........
Mr. Perlmutter.................  ........        X   .........  Mrs. Bachmann....        X   ........  .........
Mr. Murphy.....................  ........        X   .........  Mr. Roskam.......        X   ........  .........
Mr. Donnelly...................  ........        X   .........
Mr. Wexler.....................  ........        X   .........
Mr. Marshall...................  ........        X   .........
Mr. Boren......................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing 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. 835, the Hawaiian Homeownership Opportunity Act of 
2007, reauthorizes Title VIII of the Native American Housing 
Assistance and Self-Determination Act (NAHASDA), and opens two 
loan guarantee programs (Section 184a and NAHASDA Title VI) for 
greater use on Hawaiian home lands--with the goal to provide 
low-income native Hawaiian families the opportunity for 
homeownership on Hawaiian home lands.

   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, or 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:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 21, 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. 835, the Hawaiian 
Homeownership Opportunity Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

H.R. 835--Hawaiian Homeownership Opportunity Act of 2007

    Summary: H.R. 835 would reauthorize the Native Hawaiian 
Housing Block Grant and Loan Guarantee programs and would 
authorize the appropriation of such sums as necessary for those 
programs for each of the fiscal years 2008 through 2012. In 
addition, the bill would reauthorize loans provided under Title 
VI of the Native American Housing Assistance and Self-
Determination Act of 1996 for fiscal years 2008 through 2012 
and would expand eligibility to include the Department of 
Hawaiian Home Lands (DHHL).
    CBO estimates that appropriation of the amounts necessary 
to implement H.R. 835 would cost $39 million over the 2008-2012 
period. Enacting H.R. 835 would not affect direct spending or 
revenues.
    H.R. 835 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would provide benefits to the state of Hawaii.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 835 is shown in the following table. 
The costs of this legislation fall within budget functions 600 
(income security) and 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 Hawaiian Housing Programs:
    Budget Authority \1\..................................       12        0        0        0        0        0
    Estimated Outlays.....................................        4        2        2        2        2        1
Proposed Changes:
    Native Hawaiian Housing Block Grants:
        Estimated Authorization Level.....................        0        9        9       10       10       10
        Estimated Outlays.................................        0        1        3        5        7        9
    Native Hawaiian Loan Guarantees:
        Estimated Authorization Level.....................        0        1        1        1        1        1
        Estimated Outlays.................................        0        1        1        1        1        1
    Title VI Loan Guarantees:
        Estimated Authorization Level.....................        0        2        2        2        2        2
        Estimated Outlays.................................        0        2        2        2        2        2
        Total:
            Estimated Authorization Level.................        0       12       12       13       13       13
            Estimated Outlays.............................        0        4        6        8       10       12
Spending Under H.R. 835 for Hawaiian Housing Programs:
    Estimated Authorization Level \1\.....................       12       12       12       13       13       13
    Estimated Outlays.....................................        4        6        8       10       12       13
----------------------------------------------------------------------------------------------------------------
\1\ The 2007 level is the amount appropriated in that year for Native Hawaiian Housing Block Grants, Native
  Hawaiian Housing Loan Guarantees, and Title VI Loan Guarantees.

Basis of estimate

            Native Hawaiian Housing Block Grants
    Section 2 would authorize the appropriation of such sums as 
necessary for the Native Hawaiian Housing Block Grant program 
from 2008 through 2012. Program grants are used to assist 
affordable housing activities for eligible low-income Native 
Hawaiian families. In 2007, $9 million was appropriated for 
this program. Assuming appropriation of similar amounts (and 
adjusting for anticipated inflation), CBO estimates that 
implementing this section would cost $23 million through 2012.
            Native Hawaiian Housing Loan Guarantees
    Section 3 would authorize the appropriation of such sums as 
necessary for the Native Hawaiian Housing Loan Guarantee 
program from 2008 through 2012. This program guarantees loans 
made to eligible Native Hawaiian families who reside on the 
Hawaiian Home Lands and who otherwise could not acquire private 
financing because of the unique legal status of the Hawaiian 
Home Lands. In 2007, $1 million was appropriated for this 
program. Assuming appropriation of similar amounts (and 
adjusting for anticipated inflation), CBO estimates that 
implementing this section would cost $5 million through 2012.
            Title VI loan guarantees
    Section 4 would extend the authorization of the Title VI 
loan guarantee program through 2012 and expand eligibility to 
include the DHHL. Such guarantees allow Native American Block 
Grant recipients to leverage their funding by pledging future 
grants as security for the repayment of a loan. A private 
lender provides the financing and the Department of Housing and 
Urban Development (HUD) provides a 95 percent guarantee of the 
principal and interest due in the case of a default. The size 
of the Title VI loans can be no larger than five times the 
grant recipient's annual grant amount. HUD estimates this 
program currently has a subsidy rate of about 12 percent. In 
2007, $2 million for subsidy costs was appropriated for the 
program, which would support about $17 million in loans. 
Assuming appropriation of similar amounts and adjusting for the 
expansion of eligibility to include DHHL, CBO estimates that 
implementing this section would cost $11 million through 2012. 
CBO assumes that loans to DHHL that are paid off using Native 
Hawaiian Housing Block Grants would have a similar loan-to-
grant ratio as those Title VI loans backed by Native American 
Block Grants.
    There have been few losses to date in the Title VI program; 
however, repayment of these loans have been funded by federal 
grants. As a result, the actual cost to the government is borne 
by the grant program. It is uncertain what the cost of these 
loans would be in the absence of the grant program but it 
likely would be higher, perhaps substantially.
    Intergovernmental and private-sector impact: H.R. 835 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would provide benefits to the state of 
Hawaii. The bill would allow certain state and tribal entities 
in the state of Hawaii to continue helping native Hawaiians 
with low incomes purchase, construct, or refinance homes.
    Estimate prepared by: Federal Costs: Chad Chirico and 
Susanne S. Mehlman. Impact on State, Local, and Tribal 
Governments: Sarah Puro. 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. 835 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

    Hawaiian Homeownership Opportunity Act of 2007

Section 2. Authorization of appropriations for housing assistance

    Makes Title VIII of NAHASDA (25 USC 4221 et seq.) 
applicable for fiscal years 2008 through 2012.

Section 3. Loan guarantees for Native Hawaiian housing

    Reauthorizes Section 184A, the Native Hawaiian Housing Loan 
Guarantee Fund (12 USC 1715z-13b) for fiscal years 2008 through 
2012.
    Amends Section 184A to conform to the provisions of Section 
184 Indian Housing Loan Guarantee Program as follows:
    Strikes language contained in Section 184A(b), ``or as a 
result of a lack of access to private financial markets,'' 
which has been interpreted by HUD to require potential 
borrowers to apply to private market lenders and be turned down 
before requesting a loan under Section 184A.
    Strikes the language ``for which a housing plan described 
in subparagraph (B) applies.'' It also strikes the entire 
subparagraph 184A(c)(2)(B), ``HOUSING PLAN.'' This language 
ties any housing or infrastructure development, new 
construction, acquisition or substantial rehabilitation of 
housing to the annual Native Hawaiian Housing Plan (NHHP) 
submitted by the Department of Hawaiian Home Lands (DHHL), the 
sole grant recipient. This had proven impractical in the 
Section 184 program, as longer-term planning is required for 
many projects, and there are instances where the Section 184A 
guarantees will not be used in conjunction with Native Hawaiian 
Housing Block Grant funds. For individual Native Hawaiian 
homebuyers applying for a Section 184A loan, this provision is 
not relevant and simply makes no sense. Submitting this 
information in DHHL's NHHP would still be required if any NHHBG 
funds were involved in the project.
    Adds the word ``refinance'' to Section 184A(c)(2)(A), 
``Eligible Housing,'' thereby permitting Section 184A borrowers 
to take advantage of lower interest rates ad better terms, 
should market conditions warrant. It would also permit eligible 
borrowers with existing mortgage loans from other sources to 
refinance those obligations under this program. The authority 
was already granted to borrowers under the Section 184 program 
due to previous amendments.

Section 4. Eligibility of Department of Hawaiian home lands for Title 
        VI loan guarantees

    Makes DHHL eligible to participate in Title VI of NAHASDA, 
Federal Guarantees for the Financing of Tribal Housing 
Activities. This would allow DHHL to borrow or issue bonded 
debt for up to five (5) times their annual allocation under 
Title VIII with the full faith and credit of the Federal 
government and to use such funds for the purposes allowed under 
Title VIII, namely affordable housing activities.

         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):

NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996

           *       *       *       *       *       *       *



   TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL AND NATIVE 
                      HAWAIIAN HOUSING ACTIVITIES

SEC. 601. AUTHORITY AND REQUIREMENTS.

  (a) Authority.--To such extent or in such amounts as provided 
in appropriations Acts, the Secretary may, subject to the 
limitations of this title (including limitations designed to 
protect and maintain the viability of rental housing units 
owned or operated by the recipient that were developed under a 
contract between the Secretary and an Indian housing authority 
pursuant to the United States Housing Act of 1937), and upon 
such terms and conditions as the Secretary may prescribe, 
guarantee and make commitments to guarantee, the notes or other 
obligations issued by Indian tribes or tribally designated 
housing entities with tribal approval, or by the Department of 
Hawaiian Home Lands, for the purposes of financing affordable 
housing activities described in section 202 or 810, as 
applicable, and housing related community development activity 
as consistent with the purposes of this Act.

           *       *       *       *       *       *       *

  (c) Limitation on Outstanding Guarantees.--No guarantee or 
commitment to guarantee shall be made with respect to any note 
or other obligation if the total outstanding notes or 
obligations of the issuer guaranteed under this title 
(excluding any amount defeased under the contract entered into 
under section 602(a)(1)) would thereby exceed an amount equal 
to 5 times the amount of the grant approval for the issuer 
pursuant to title III or VIII, as applicable.

           *       *       *       *       *       *       *


SEC. 602. SECURITY AND REPAYMENT.

  (a) Requirements on Issuer.--To assure the repayment of notes 
or other obligations and charges incurred under this title and 
as a condition for receiving such guarantees, the Secretary 
shall require the Indian tribe [or housing entity], housing 
entity, or Department of Hawaiian Home Lands issuing such notes 
or obligations to--
          (1) * * *

           *       *       *       *       *       *       *

          (3) demonstrate that the extent of such issuance and 
        guarantee under this title is within the financial 
        capacity of the tribe or Department and is not likely 
        to impair the ability to use grant amounts under title 
        I or VIII, as applicable, taking into consideration the 
        requirements under section 203(b) or 811(b), as 
        applicable; and

           *       *       *       *       *       *       *

  (b) Repayment From Grant Amounts.--Notwithstanding any other 
provision of this Act--
          (1) * * *
          (2) grants allocated under this Act for an Indian 
        tribe [or housing entity], housing entity, or the 
        Department of Hawaiian Home Lands (including program 
        income derived therefrom) may be used to pay principal 
        and interest due (including such servicing, 
        underwriting, and other costs as may be specified in 
        regulations issued by the Secretary) on notes or other 
        obligations guaranteed pursuant to this title.

           *       *       *       *       *       *       *


SEC. 603. PAYMENT OF INTEREST.

  The Secretary may make, and contract to make, grants, in such 
amounts as may be approved in appropriations Acts, to or on 
behalf of an Indian tribe [or housing entity], housing entity, 
or the Department of Hawaiian Home Lands issuing notes or other 
obligations guaranteed under this title, to cover not to exceed 
30 percent of the net interest cost (including such servicing, 
underwriting, or other costs as may be specified in regulations 
of the Secretary) to the borrowing entity or agency of such 
obligations. The Secretary may also, to the extent approved in 
appropriations Acts, assist the issuer of a note or other 
obligation guaranteed under this title in the payment of all or 
a portion of the principal and interest amount due under the 
note or other obligation, if the Secretary determines that the 
issuer is unable to pay the amount because of circumstances of 
extreme hardship beyond the control of the issuer.

           *       *       *       *       *       *       *


SEC. 605. LIMITATIONS ON AMOUNT OF GUARANTEES.

  (a) * * *
  (b) Authorization of Appropriations for Credit Subsidy.--
There are authorized to be appropriated to cover the costs (as 
such term is defined in section 502 of the Congressional Budget 
Act of 1974) of guarantees under this title such sums as may be 
necessary for each of fiscal years [1997 through 2007] 2008 
through 2012.

           *       *       *       *       *       *       *


TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

           *       *       *       *       *       *       *


SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Department of 
Housing and Urban Development for grants under this title such 
sums as may be necessary for each of [fiscal years 2001, 2002, 
2003, 2004, and 2005.] fiscal years 2008, 2009, 2010, 2011 and 
2012.

           *       *       *       *       *       *       *

                              ----------                              -


   SECTION 184A OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992


SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

  (a) * * *
  (b) Authority.--To provide access to sources of private 
financing to Native Hawaiian families who otherwise could not 
acquire housing financing because of the unique legal status of 
the Hawaiian Home Lands [or as a result of a lack of access to 
private financial markets], the Secretary may guarantee an 
amount not to exceed 100 percent of the unpaid principal and 
interest that is due on an eligible loan under subsection (c).
  (c) Eligible Loans.--Under this section, a loan is an 
eligible loan if that loan meets the following requirements:
          (1) * * *
          [(2) Eligible housing.--
                  [(A) In General--The loan will be used to 
                construct, acquire, or rehabilitate not more 
                than 4-family dwellings that are standard 
                housing and are located on Hawaiian Home Lands 
                for which a housing plan described in 
                subparagraph (B) applies.
                  [(B) Housing Plan.--A housing plan described 
                in this subparagraph is a housing plan that--
                          [(i) has been submitted and approved 
                        by the Secretary under section 803 of 
                        the Native American Housing Assistance 
                        and Self-Determination Act of 1996; and
                          [(ii) provides for the use of loan 
                        guarantees under this section to 
                        provide affordable homeownership 
                        housing on Hawaiian Home Lands.]
          (2) Eligible housing.--The loan will be used to 
        construct, acquire, refinance, or rehabilitate 1- to 4-
        family dwellings that are standard housing and are 
        located on Hawaiian Home Lands.

           *       *       *       *       *       *       *

  (j) Hawaiian Housing Loan Guarantee Fund.--
          (1) * * *

           *       *       *       *       *       *       *

          (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 2001, 2002, 2003, 2004, and 
        2005.] fiscal years 2008, 2009, 2010, 2011 and 2012.

           *       *       *       *       *       *       *


        ADDITIONAL VIEWS SUBMITTED BY CONGRESSMAN JOHN CAMPBELL

    The underlying Native Hawaiian housing program that we are 
set to reauthorize is one of many benefits that currently flow 
from the federal government to Native Hawaiians--there are 
roughly 160 current statutes that confer such benefits. 
However, in 2000, the Supreme Court put many of these benefits 
in jeopardy with its decision in Rice v. Cayetano.
    The Court's decision in Rice has led many to conclude that 
the current configuration of justices would likely strike down 
most federal benefits flowing to Native Hawaiians as a racial 
set-aside, if given a chance. As a result, the Hawaiian 
Congressional delegation has championed separate legislation to 
provide a process for the United States to recognize Native 
Hawaiians as a governing entity, i.e., a tribe that is 
political in nature. Instead of recognizing a currently-
existing political entity that has authority over its members, 
the legislation (H.R. 505) would create one from scratch.
    While the Financial Services Committee is not considering 
the sovereignty bill (H.R. 505), the Native Hawaiian housing 
bill (H.R. 835) should nonetheless give us pause before we 
reauthorize funding programs that are more than likely 
unconstitutional. This bill, H.R. 835, which reauthorizes 
federal funding for Native Hawaiian housing, should not be 
construed by any future court as Congress using its power under 
the Indian Commerce Clause to indirectly confer tribal status 
on the Native Hawaiian people.
    America is a melting pot of cultures from around the world. 
Justice Kennedy noted as much in his opinion in Rice v. 
Cayetano. ``As the State of Hawaii attempts to address these 
realities, it must, as always, seek the political consensus 
that begins with a shared purpose. One of the necessary 
beginning points is this principle: The Constitution of the 
United States, too, has become the heritage of all the citizens 
of Hawaii.''

                                                     John Campbell.

                                  
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