59–006 

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 


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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 oneyear 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 


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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. Vela ́zquez ....................... ........... ........... ............. 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 .............


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RECORD VOTE NO. FC–2—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

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. 


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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 Guaran- tees, 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 


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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 loanto-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. 


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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 HawaiVerDate Aug 31 2005 07:05 Mar 16, 2007 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR050.XXX HR050

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ian 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 SELFDETERMINATION 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 


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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 øor 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 øor 

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 øor 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 


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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 ø1997 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 øfiscal 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 øor 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) * * * 

ø(2) ELIGIBLE HOUSING.—

ø(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. 

ø(B) Housing Plan.—A housing plan described in this 

subparagraph is a housing plan that—


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ø(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 

ø(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 øfiscal 

years 2001, 2002, 2003, 2004, and 2005.¿ fiscal years 2008, 

2009, 2010, 2011 and 2012. 

* * * * * * * 


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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. 

Æ 


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