[Senate Report 119-60]
[From the U.S. Government Publishing Office]
Calendar No. 148
119th Congress } { Report
SENATE
1st Session } { 119-60
=======================================================================
TRIBAL TRUST LAND HOMEOWNERSHIP ACT OF 2025
----------------
September 3, 2025.--Ordered to be printed
----------------
Ms. Murkowski, from the Committee on Indian Affairs,
submitted the following
R E P O R T
[To accompany S. 723]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (S. 723) 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. 723 is to address delays in the Bureau of
Indian Affairs (BIA)'s processing of mortgage packages
associated with residential and business mortgages by
establishing statutory deadlines to process and complete all
mortgage packages associated with residential and business
mortgages on trust and restricted land (Indian lands) owned by
a Tribe or an individual Indian, and to establish a realty
ombudsman within the BIA to adjudicate the delays in the
processing of BIA realty filings.
BACKGROUND AND NEED
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).
After receiving a complete application for a leasehold
mortgage, BIA is required by regulation to approve or
disapprove it within 20 days.\1\ In 2023, the Government
Accountability Office (GAO) reported in fiscal years 2021 and
2022, roughly one-quarter of the applications for certain types
of mortgages did not meet BIA's regulatory deadline.\2\
---------------------------------------------------------------------------
\1\25 C.F.R. Sec. Sec. 162.359(a), 162.459(a).
\2\U.S. Gov't Accountability Off., GAO-24-105875, Tribal Issues:
Bureau of Indian Affairs Should Take Additional Steps to Improve Timely
Delivery of Real Estate Services (2023), https://www.gao.gov/products/
gao-24-105875.
---------------------------------------------------------------------------
Delays in the BIA processing and certifying mortgages
disincentivizes lenders and reduces homeownership opportunities
on Indian lands.\3\ Addressing these delays would help
alleviate housing shortages, support trust and restricted land
development, and expand fair access to capital across Indian
Country.
---------------------------------------------------------------------------
\3\U.S. Gov't Accountability Off., GAO-24-105875, Tribal Housing:
HUD and BIA Could Better Support Tribal Efforts to Increase
Homeownership (2024), https://www.gao.gov/assets/gao-24-105875.pdf.
---------------------------------------------------------------------------
SUMMARY
S. 723 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)
from portals containing the relevant land documents; (3)
require the BIA to submit an annual report to Congress
including the number of mortgage approvals requested and
processed; (4) direct the 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. 723 was introduced by Senators Thune and Smith on
February 25, 2025, with Senator Rounds as an original
cosponsor.
In the 118th Congress, a similar bill, S. 70, was
introduced by Senators Thune and Smith on January 25, 2023,
with Senators Rounds and Tester as original cosponsors.
Senators Lummis and Lujan were later added as cosponsors. The
Committee held a business meeting to consider S. 70 on February
15, 2023, and ordered the bill reported without amendment
favorably (S. Rept. 118-33). S. 70 passed the Senate without
amendment by unanimous consent on July 20, 2023.\4\
In the 117th Congress, an identical bill to S. 70, S. 3381
was introduced by Senators Thune and Smith on December 14,
2021, with Senators Rounds, Tester, and Lummis as original
cosponsors. The Committee held a hearing on S. 3381 on February
16, 2022 (S. Hrg. 117-518). On May 18, 2022, the Committee held
a business meeting and ordered the bill to be reported
favorably without amendment (S. Rept. 117-232).
COMMITTEE RECOMMENDATION
The Senate Committee on Indian Affairs in an open business
meeting on March 5, 2025, by a majority voice vote of a quorum
present, recommends that the Senate pass S. 723, without
amendment.
SECTION-BY-SECTION ANALYSIS
Section 1--Short title
This section sets forth the short title as the ``Tribal
Trust Land Homeownership Act of 2025.''
Section 2--Definitions
Section 2 clarifies terms used in the bill, including among
others, ``First Certified Title Status Report,'' ``Indian
Land,'' ``Mortgage Package,'' ``Right-of-Way Document,'' and
``Subsequent Certified Title Status Report.''
Section 3--Mortgage review and processing
Section 3(a) establishes deadlines and requirements for the
BIA to notify lenders and reviewing, approving, and certifying
residential and business leasehold mortgages, land mortgages,
and rights-of-way documents:
Preliminary review--10 calendar days after
receipt
Incomplete documents--two calendar days
after discovery of missing documents
Approval or disapproval of a complete
application
Leasehold mortgages--20 calendar
days after receipt
Rights-of-way--30 calendar days
after receipt
Land mortgages--30 calendar days
after receipt
Certified title status reports--10 calendar
days after application approval or 14 calendar days
after receipt of applicant request
This section also clarifies these 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 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 portals containing the relevant land
documents from the Trust Asset and Accounting Management System
(TAAMS) maintained by the BIA.
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 processing time and number of residential
and business leasehold packages and right-of-way document
packages it received in the most recent 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 including ensuring compliance with deadlines, notice
requirements, serving as a liaison to other federal agencies,
receiving inquiries, and acting as an intermediary between
applicants and the BIA.
COST AND BUDGETARY CONSIDERATIONS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 723 would require the Bureau of Indian Affairs (BIA) to
process and review mortgage packages involving property located
on tribal land held in trust by deadlines specified in the
bill. The bill also would establish a position within BIA to
serve as an intermediary between the bureau and tribes, tribal
members, and lenders.
In addition, the bill would require BIA to provide federal
agencies and Indian tribes with access to relevant land
documents from the Trust Asset and Accounting Management
System. Finally, S. 723 would require the Government
Accountability Office (GAO) to report to the Congress about the
digitization of documents related to mortgages on tribal land.
Using information from the Department of the Interior, CBO
expects the agency would need three employees at an average
annual cost of $125,000 per employee in 2025. On that basis,
and accounting for anticipated inflation, CBO estimates it
would cost BIA $2 million over the 2025-2030 period to
implement those requirements. Based on the costs of similar
activities, CBO estimates that the cost to GAO to complete the
report would not be significant. Any related spending would be
subject to the availability of appropriated funds.
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. 723 will
have minimal impact on regulatory or paperwork requirements.
EXECUTIVE TESTIMONY AND COMMUNICATIONS
The testimony provided by the U.S. Department of the
Interior from the February 16, 2022, hearing on S. 3381
follows:
statement of kathryn isom-clause deputy assistant
secretary for policy and development for indian
affairs, u.s. department of the interior
S. 3381--Tribal Trust Land Homeownership Act of 2021
S. 3381 would impose a series of statutory requirements on
the Bureau of Indian Affairs (Bureau) related to the processing
and review of mortgage packages. This legislation would codify
current processing deadlines for mortgages; require an annual
report to be submitted to Congress regarding the mortgages
reviewed by the Bureau; establish a Realty Ombudsman position
reporting directly to the Secretary; and provide access to the
Bureau's Trust Asset and Accounting Management System (TAAMS)
for relevant agencies and tribes.
We appreciate Congress' shared interest in ensuring that
mortgage packages are reviewed and processed in a timely
manner. Notably, the mortgage application review and processing
deadlines in this legislation are reflected in the Bureau's
existing handbooks and policy.
One specific concern the Department has with S. 3381 is
that it would mandate read-only access to TAAMS for the
Department of Agriculture, Department of Housing and Urban
Development, and Department of Veterans Affairs, as well as
tribes. The Bureau currently provides limited TAAMS access to
tribes and relevant agencies after the clearance of a
background check. Access to TAAMS should be contingent on IT
security training and limited to avoid Privacy Act issues.
The Department supports the intent of S. 3381 and looks
forward to working with the Committee to provide technical
assistance.
Conclusion
Chairman Schatz, Vice Chair Murkowski, and Members of the
Committee, thank you for the opportunity to provide the
Department's views on these important bills. I look forward to
answering any questions. . .
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. 723, as
reported, will have minimal impact on regulatory or paperwork
requirements.
CHANGES IN EXISTING LAW
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.
[all]