[Senate Report 118-33]
[From the U.S. Government Publishing Office]
Calendar No. 79
118th Congress } { Report
SENATE
1st Session } { 118-33
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TRIBAL TRUST LAND HOMEOWNERSHIP ACT OF 2023
_______
May 30, 2023.--Ordered to be printed
_______
Mr. Schatz, from the Committee on Indian Affairs,
submitted the following
R E P O R T
[To accompany S. 70]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (S. 70) to require the Bureau of Indian Affairs to process
and complete all mortgage packages associated with residential
and business mortgages on Indian land by certain deadlines, and
for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
PURPOSE
The purpose of S. 70 is to establish deadlines for the
Bureau of Indian Affairs (BIA) to process and complete all
mortgage packages associated with residential and business
mortgages on Indian land, and to establish a realty ombudsman
within the BIA to adjudicate delays in the processing of BIA
realty filings.
BACKGROUND
The BIA reviews and processes all leasehold and trust land
mortgages on Indian lands. These unique mortgages for Indian
lands, which often provide low down payments and flexible
underwriting requirements to encourage homeownership, are
typically issued by Community Development Financial
Institutions (CDFIs), conventional lenders, and federal
government agencies such as the Department of Housing and Urban
Development (HUD), the Department of Agriculture (USDA), and
the Department of Veterans Affairs (VA).
NEED FOR LEGISLATION
The BIA reportedly takes an extended period of time to
process and certify mortgages, which can disincentivize lenders
and reduce homeownership opportunities for Indian country. To
address these concerns and improve mortgage acquisition on
Indian lands, S. 70 would: (1) codify the current BIA mortgage
handbook deadlines for reviewing and processing residential and
business leasehold mortgages, land mortgages, and rights-of-
way; (2) provide HUD, USDA, the VA, and Tribes ``read-only''
access to the BIA's Trust Asset and Accounting Management
System (TAAMS) to view the processing status of a loan; (3)
require the BIA to submit an annual report to Congress
including the number of mortgage approvals requested and
processed; (4) direct the Government Accountability Office
(GAO) to evaluate and report on how digitizing mortgage
packages may streamline the approval process; and (5) establish
a realty ombudsman within the BIA to adjudicate delays in the
processing of BIA realty filings.
LEGISLATIVE HISTORY
S. 70 was introduced by Senator Thune (R-SD) on January 25,
2023 and referred to the Senate Committee on Indian Affairs on
the same day. Senators Smith (D-MN), Rounds (R-SD), and Tester
(D-MT) joined as original co-sponsors. Senators Lummis (R-WY)
and Lujan (D-NM) were later added as co-sponsors. The Committee
held a business meeting to consider S. 70 on February 15, 2023
and ordered the bill reported without amendment.
117th Congress. On December 14, 2021, an identical bill, S.
3381, was introduced by Senator Thune (R-SD) and cosponsored by
Senators Smith (D-MN), Rounds (R-SD), Tester (D-MT), and Lummis
(R-WY). The Senate referred the bill to the Committee on Indian
Affairs on the same day. On February 16, 2022, the Committee
held a hearing to consider the bill. On May 18, 2022, the
Committee held a business meeting and ordered the bill to be
reported favorably without amendment. On December 6, 2022, the
bill was reported and placed on the Senate Calendar. No further
action was taken on S. 3381 before the conclusion of the 117th
Congress.
SECTION-BY-SECTION ANALYSIS OF S. 70 AS ORDERED REPORTED
Section 1--Short title
This section sets forth the short title as the ``Tribal
Trust Land Homeownership Act of 2023.''
Section 2--Definitions
Section 2 clarifies terms used in the bill, including among
others, ``First Certified Title Status Report,'' ``Indian
Land,'' ``Right-of-Way Document,'' and ``Subsequent Certified
Title Status Report.''
Section 3--Mortgage review and processing
Section 3(a) establishes deadlines and requirements for
notifying lenders and reviewing, approving, and certifying
residential and business leasehold mortgages, land mortgages,
and rights-of-way documents. This section also clarifies that
such requirements do not apply to residential or business
leasehold mortgages on Indian land if the applicant is an
Indian Tribe approved for leasing under section 415(h) of the
Long-Term Leasing Act of 1955.
Section 3(b) requires the BIA to immediately notify the
applicant and lender if the agency fails to meet its deadline
under section 3(a). This section further requires the BIA to
respond to a mortgage package inquiry from a lender or party
that submitted the package within two (2) calendar days.
Section 3(c) establishes rules for delivery of first and
subsequent certified title status reports.
Section 3(d) provides relevant federal agencies and Tribes
read-only access to the Trust Asset and Accounting Management
System (TAAMS).
Section 3(e) directs the Director of the BIA to submit an
annual report to the Senate Committee on Indian Affairs and the
House of Representatives, Committee on Natural Resources,
providing data on the number of residential and business
leasehold packages it received in a calendar year, among other
relevant information.
Section 3(f) directs the Comptroller General of the United
States to submit a report, not later than a year after
enactment, evaluating the cost and need to digitize Tribal
realty documents to the Senate Committee on Indian Affairs and
the House of Representatives, Committee on Natural Resources.
Section 4--Establishment of Realty Ombudsman position
Section 4(a) establishes, within the Division of Real
Estate Services of the Bureau of Indian Affairs, the position
of ``Realty Ombudsman.''
Section 4(b) describes the responsibilities of the Realty
Ombudsman.
COST AND BUDGETARY CONSIDERATIONS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 70 would require the Bureau of Indian Affairs (BIA) to
process and review mortgage packages involving property located
on tribal land held in trust by specified deadlines. The bill
also would establish a position within BIA to serve as an
intermediary between BIA and tribes, tribal members, and
lenders. In addition, the bill would require BIA to provide
relevant federal agencies and Indian tribes with access to the
Trust Asset and Accounting Management System. Finally, S. 70
would require the Government Accountability Office (GAO) to
report to the Congress about Indian tribes digitizing documents
related to mortgages on their land.
Using information from the Department of the Interior, CBO
expects the agency would need three employees at an average
annual cost of about $125,000 in 2024. On that basis, and
accounting for anticipated inflation, CBO estimates it would
cost $2 million over the 2023-2028 period to implement those
requirements. Spending would be subject to the availability of
appropriated funds. CBO also estimates that the cost of GAO's
report would not be significant.
The CBO staff contact for this estimate is Julia Aman. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
REGULATORY AND PAPERWORK IMPACT STATEMENT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires each report accompanying a bill to evaluate the
regulatory and paperwork impact that would be incurred in
carrying out the bill. The Committee believes that S. 70 will
have minimal impact on regulatory or paperwork requirements.
EXECUTIVE COMMUNICATIONS
The Committee has received no communications from the
Executive Branch regarding S. 70.
CHANGES IN EXISTING LAW
On February 9, 2023 the Committee unanimously approved a
motion to waive subsection 12 of rule XXVI of the Standing
Rules of the Senate. In the opinion of the Committee, it is
necessary to dispense with subsection 12 of rule XXVI of the
Standing Rules of the Senate to expedite the business of the
Senate.
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