Homeownership Opportunities for Native Americans Act of 2004

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today, the House takes up important housing legislation to help Native American communities across America achieve homeownership.

The bill we are taking up today is a direct result of a recent hearing held by the Subcommittee on Housing of the Committee on Financial Services, of which I am a member, in the Navajo Nation. With the leadership of the subcommittee chairman, the gentleman from Ohio (Mr. Ney), and the gentlewoman from California (Ms. Waters), the ranking member, the subcommittee learned of the significant housing challenges facing our Native American communities. Members who attended the hearing in the Navajo Nation came back to report enormous challenges in housing conditions that resemble those of some Third World nations. This bill is the first legislative result of that important field hearing.

The legislation was introduced by the gentleman from Arizona (Mr. Renzi) and the gentleman from Utah (Mr. Matheson), both of whom represent the Navajo Nation. I commend the leadership of both my colleagues on this legislation.

Unfortunately, the gentleman from Utah (Mr. Matheson) was unable to be here today at this time. And I am pleased to be here representing him in his absence on behalf of this important legislation that will, as I stated, help Native Americans achieve home ownership. The gentleman from Utah (Mr. Matheson) has exercised great leadership, not only in housing issues for Native Americans, but for giving his Navajo Nation constituents a strong voice in Congress.

This bill sets the loan guarantee level at 95 percent for a vital Native American housing program at HUD. This is the level that has been used since its implementation. However, the law is currently silent regarding the loan guarantee level and HUD would be forced by administrative rule to lower that level to 80 percent, unless Congress sets the level at 95 percent, which this bill will accomplish for the purposes that ensure that the very important housing program will continue to be used to help our Native American friends.

Again, I would like it to thank the gentleman from Ohio (Mr. Ney) and the ranking member, the gentlewoman from California (Ms. Waters) for their leadership in convening the field hearing in the Navaho Nation that led to this important legislation. I commend the leadership of the gentleman from Arizona (Mr. Renzi) on this bill and his efforts on behalf of the Navaho people. I also would like to express appreciation to my esteemed colleague, the gentleman from Utah (Mr. Matheson), for being a leader on this bill and for being a strong leader and advocate in Congress for all Native American items.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4471) to clarify the loan guarantee authority under title VI of the Native American Housing Assistance and Self-Determination Act of 1996.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation, and to insert any extraneous material thereon.

Mr. Speaker, I yield myself 5 minutes.

Mr. Speaker, I am thankful to have on the House floor today H.R. 4471, the Homeownership Opportunities For Native Americans Act, which I introduced earlier this week with my colleague, the gentleman from Utah. (Mr. Matheson).

This bill simply returns the guarantee level for the title VI program to 95 percent. HUD had been administering guarantees at this level until OMB, for technical statutory reasons, reduced it to 80 percent.

The lower guaranteed level would mean less participation in this program. Private investors are slowly becoming more comfortable investing in Indian country, and it is critical that this relationship remain in a fostered environment. To this point, asking investors to accept a 20 percent risk rather than the 5 percent that they had before will do nothing but impede the much-needed development in these areas.

This past May, the Subcommittee on Housing of the Committee on Financial Services held a hearing on the Navajo Reservation in Tuba City, Arizona. We saw children with asthma living in houses with dirt floors and collapsing ceilings. Decreasing the guarantee rate essentially decreases the chance that these children will be able to move from homes in deplorable conditions into safe and healthy homes.

The title VI loan guarantee assists federally recognized tribes and tribally designated housing entities who want to finance eligible, affordable housing activities, but are unable to secure financing without the assistance of Federal guarantees.

This program is very well collateralized, as tribes must pledge current and future housing block grant guarantee appropriations for the repayment of these guaranteed funds. This program has administered $77 million in guarantees and has not experienced even one single default.

I thank the gentleman from Ohio (Chairman Ney); the gentlewoman from California (Ms. Waters), the ranking member; and the gentleman from Utah (Mr. Matheson) for their enthusiasm on this issue and the support behind this bill.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 5 minutes to the gentleman from Wisconsin (Mr. Green).

Mr. Speaker, I have no other speakers at this time, and I yield back the balance of my time.

Mr. Speaker, I rise today to express my strong support for H.R. 4471, the Home Ownership Opportunities for Native Americans Act. I was pleased to introduce this bill with my friend and colleague on the Financial Services Committee, Mr. Renzi.

Many Native Americans continue to live in appalling housing conditions even as those in much of the nation have improved. American Indian and Alaska Native populations live in housing that is often and justifiably compared to third world nations. One out of every five Indian homes lacks complete plumbing facilities. Over 90,000, American Indians and Alaska Natives are homeless or underhoused.

On May 3, the Housing Subcommittee of the Financial Services Committee conducted a field hearing on the Navajo Reservation in an effort to better understand the challenges facing Native Americans in obtaining housing and to find ways to improve housing opportunities for Native Americans.

The Home Ownership Opportunities for Native Americans Act is the first of many needed legislative efforts to address the issues raised during our field hearing. This bill makes a simple and necessary correction--it will statutorily confirm a 95% loan guarantee under Title VI of the Native American Housing Assistance and Self- Determination Act (NAHASDA).

While this vital Native American housing program at the Department of Housing and Urban Development (HUD) has operated at a 95% loan guarantee level since its implementation, a recent determination by the Office of Management and Budget (OMB) has indicated that only an 80% loan guarantee level is authorized without further action from Congress. H.R. 4471 makes this needed change and ensures that this important housing program will continue to be used to help Native Americans obtain housing.

I appreciate the strong leadership of my colleague from Arizona, Mr. Renzi, Ranking Member Waters, and Chairman Ney on this issue. I urge my colleagues to support this legislation and I look forward to continuing to work with my colleagues to address the many difficult challenges facing Native Americans in achieving home ownership.

Mr. Speaker, I rise today in support of my colleague, Mr. Renzi's bill, the Homeownership Opportunities for Native Americans Act. I would like to begin by commending the gentleman from Arizona (Mr. Renzi) for the important work he is doing in the area of Native American housing. He is shining a light on the vital need for safe and affordable housing on Indian reservations all across this country, a need that runs deep, a need which our government has all too often failed to address.

I was unable to attend the Housing Subcommittee hearing earlier this year that has been referenced in the district of the gentleman from Arizona (Mr. Renzi), but I have several reservations in my district and my own State, and I know firsthand just how critical the need for housing is.

H.R. 4471 amends the Native American Housing Assistance and Self- Determination Act of 1996 to provide statutory authority for the Title VI program to continue to operate at a 95 percent loan guarantee level. While the program has been operating at this level for some time, a recent decision by OMB to reduce the loan guarantee

to 80 percent has put this program into jeopardy.

Mr. Speaker, the Title VI guarantee program has issued over 77 million dollars in loan guarantees. It has never experienced a default. The Federal Government should not be in the business of making it harder for Indian tribes to access assistance in affordable housing. We must reach out to local tribal organizations and leaders and do more to help them meet their many pressing housing challenges.

I urge my colleagues to support this legislation in order to ensure continued affordable housing opportunities for Native Americans all across this country. It is an excellent piece of legislation.

Mr. Speaker, I rise in support of H.R. 4471, the Homeownership Opportunities for Native Americans Act.

Under Title VI of the Native American Housing Assistance and Self- Determination Act, HUD guarantees tribal obligations to help finance affordable housing activities. The Title VI loan assists Indian Housing Block Grant borrowers who wish to finance eligible affordable housing activities, but are unable to secure financing without the assistance of a Federal guarantee.

Native Americans deserve decent housing, a suitable living environment, and economic opportunities. Title VI helps make this happen.

During the previous administration, Title VI guaranteed up to 95 percent of a loan. In fact, several loans are currently pending based on the 95 percent loan guarantee level.

Unfortunately, the Office of Management and Budget is now saying that loan guarantees cannot be greater than 80 percent of a loan.

This bill would allow Title VI to continue to guarantee loans up to 95 percent.

I want to thank Congressman Renzi and Congressman Matheson, the authors of this bill. They understand that all Americans are entitled to the American dream.

For too long our Native American brothers and sisters have been treated like second-class citizens. This bill is a strong step towards putting Native Americans on a fair playing field.