To establish a demonstration program to authorize the Secretary of Housing and Urban Development to guarantee obligations issued by Indian tribes to finance community and economic development activities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Native American Economic Development 
and Infrastructure for Housing Act of 2007''.

SEC. 2. DEMONSTRATION PROGRAM FOR GUARANTEED LOANS TO FINANCE TRIBAL 
              COMMUNITY AND ECONOMIC DEVELOPMENT ACTIVITIES.

    (a) Authority.--To the extent or in such amounts as are provided in 
appropriation Acts, the Secretary of Housing and Urban Development (in 
this section referred to as the ``Secretary'') may, subject to the 
limitations of this section and upon such terms and conditions as the 
Secretary may prescribe, guarantee and make commitments to guarantee, 
the notes and obligations issued by Indian tribes or tribally 
designated housing entities (as such term is defined in section 4 of 
the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4103)) with tribal approval, for the purposes of 
financing activities, carried out on Indian reservations and in other 
Indian areas, that under the first sentence of section 108(a) of the 
Housing and Community Development Act of 1974 are eligible for 
financing with notes and other obligations guaranteed pursuant to such 
section 108.
    (b) Low-Income Benefit Requirement.--Not less than 70 percent of 
the aggregate funds received by an Indian tribe or tribally designated 
housing entity as a result of a guarantee under this section shall be 
used for the support of activities that benefit low-income Indian 
families (as such term is defined for purposes of the Native American 
Housing Assistance and Self-Determination Act of 1996) on Indian 
reservations and other Indian areas.
    (c) Financial Soundness.--The Secretary shall establish 
underwriting criteria for guarantees under this section, including fees 
for such guarantees, as may be necessary to ensure that the program 
under this section for such guarantees is financially sound. Such fees 
shall be established in amounts that are sufficient, but do not exceed 
the minimum amounts necessary, to maintain a negative credit subsidy 
for such program, as determined based upon risk to the Federal 
Government under such underwriting requirements.
    (d) Terms of Obligations.--Notes or other obligations guaranteed 
pursuant to this section shall be in such form and denominations, have 
such maturities, and be subject to such conditions as may be prescribed 
by regulations issued by the Secretary. The Secretary may not deny a 
guarantee under this section on the basis of the proposed repayment 
period for the note or other obligation, unless the period is more than 
20 years or the Secretary determines that the period causes the 
guarantee to constitute an unacceptable financial risk.
    (e) Limitation on Percentage.--A guarantee made under this section 
shall guarantee repayment of 95 percent of the unpaid principal and 
interest due on the notes or other obligations guaranteed.
    (f) Security and Repayment.--
            (1) Requirements on issuer.--To ensure the repayment of 
        notes or other obligations and charges incurred under this 
        section and as a condition for receiving such guarantees, the 
        Secretary shall require the Indian tribe or housing entity 
        issuing such notes or obligations to--
                    (A) enter into a contract, in a form acceptable to 
                the Secretary, for repayment of notes or other 
                obligations guaranteed under this section;
                    (B) demonstrate that the extent of such issuance 
                and guarantee under this section is within the 
                financial capacity of the tribe; and
                    (C) furnish, at the discretion of the Secretary, 
                such security as may be deemed appropriate by the 
                Secretary in making such guarantees, including 
                increments in local tax receipts generated by the 
                activities assisted by a guarantee under this section 
                or disposition proceeds from the sale of land or 
                rehabilitated property, except that such security may 
                not include any grant amounts received or for which the 
                issuer may be eligible under title I of the Native 
                American Housing Assistance and Self-Determination Act 
                of 1996.
            (2) Full faith and credit.--The full faith and credit of 
        the United States is pledged to the payment of all guarantees 
        made under this section. Any such guarantee made by the 
        Secretary shall be conclusive evidence of the eligibility of 
        the obligations for such guarantee with respect to principal 
        and interest, and the validity of any such guarantee so made 
        shall be incontestable in the hands of a holder of the 
        guaranteed obligations.
    (g) Training and Information.--The Secretary, in cooperation with 
Indian tribes and tribally designated housing entities, shall carry out 
training and information activities with respect to the guarantee 
program under this section.
    (h) Limitations on Amount of Guarantees.--
            (1) Aggregate fiscal year limitation.--Notwithstanding any 
        other provision of law and subject only to the absence of 
        qualified applicants or proposed activities and to the 
        authority provided in this section, to the extent approved or 
        provided in appropriations Acts, the Secretary may enter into 
        commitments to guarantee notes and obligations under this 
        section with an aggregate principal amount not to exceed 
        $200,000,000 for each of fiscal years 2008 through 2012.
            (2) 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 section such sums as may 
        be necessary for each of fiscal years 2008 through 2012. No 
        funds appropriated under this Act shall be expended for the 
        benefit of the Cherokee Nation of Oklahoma until the Secretary 
        shall have certified to the Congress that the Cherokee Nation 
        of Oklahoma is in compliance with the Treaty of 1866 and fully 
        recognizes all Cherokee Freedmen and their descendants as 
        citizens of the Cherokee Nation.
            (3) Aggregate outstanding limitation.--The total amount of 
        outstanding obligations guaranteed on a cumulative basis by the 
        Secretary pursuant to this section shall not at any time exceed 
        $1,000,000,000 or such higher amount as may be authorized to be 
        appropriated for this section for any fiscal year.
            (4) Fiscal year limitations on tribes.--The Secretary shall 
        monitor the use of guarantees under this section by Indian 
        tribes. If the Secretary finds that 50 percent of the aggregate 
        guarantee authority under paragraph (3) has been committed, the 
        Secretary may--
                    (A) impose limitations on the amount of guarantees 
                pursuant to this section that any one Indian tribe may 
                receive in any fiscal year of $25,000,000; or
                    (B) request the enactment of legislation increasing 
                the aggregate outstanding limitation on guarantees 
                under this section.
    (i) Report.--Not later than the expiration of the 4-year period 
beginning on the date of the enactment of this Act, the Secretary shall 
submit a report to the Congress regarding the utilization of the 
authority under this section by Indian tribes and tribally designated 
housing entities, identifying the extent of such utilization and the 
types of projects and activities financed using such authority and 
analyzing the effectiveness of such utilization in carrying out the 
purposes of this section.
    (j) Termination.--The authority of the Secretary under this section 
to make new guarantees for notes and obligations shall terminate on 
October 1, 2012.
                                                 

Summary: Native American Economic Development and Infrastructure for Housing Act of 2007 - Authorizes the Secretary of Housing and Urban Development to guarantee notes and obligations issued by Indian tribes or tribally designated housing entities, with tribal approval, to finance community and economic development activities on Indian reservations and in other Indian areas. Requires the use of at least 70 of the aggregate funds received as a result of such guarantee to support activities that benefit low-income Indian families. Directs the Secretary to establish underwriting criteria for such guarantees, including necessary fees, to ensure that the guarantee program is financially sound. Prohibits the Secretary from denying a guarantee on the basis of the proposed repayment period for the note or other obligation, unless the period is more than 20 years or he determines that the period causes the guarantee to constitute an unacceptable financial risk. Limits a guarantee to repayment of 95 of the unpaid principal and interest due. Requires the Secretary, in cooperation with Indian tribes and tribally designated housing entities, to carry out training and information activities with respect to the guarantee program. Authorizes the Secretary to enter into guarantee commitments with an aggregate principal amount of up to $200 million for each of FY2008-FY2012. Authorizes appropriations for such fiscal years. Prohibits the expenditure of funds appropriated under this Act for the benefit of the Cherokee Nation of Oklahoma until the Secretary certifies to Congress that it is in compliance with the Treaty of 1866 and fully recognizes all Cherokee Freedmen and their descendants as citizens of the Cherokee Nation. Limits to $1 billion, or any authorized higher amount, the total aggregate outstanding obligations guaranteed on a cumulative basis by the Secretary for any fiscal year. Requires the Secretary to monitor the use of such guarantees by Indian tribes. Authorizes the Secretary, upon finding that 50 of such aggregate guarantee authority has been committed, to: (1) limit to $25 million the amount of guarantees that any one Indian tribe may receive in any fiscal year. Or (2) request the enactment of legislation increasing the aggregate outstanding limitation. Terminates on October 1, 2012, the Secretary's authority to make new guarantees for notes and obligations.