II 

117TH CONGRESS 

2D SESSION S. 4505 

To amend title 38, United States Code, to improve the program for direct 

housing loans made to Native American veterans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 12, 2022 

Mr. ROUNDS (for himself and Mr. TESTER) introduced the following bill; 

which was read twice and referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to improve the 

program for direct housing loans made to Native American veterans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Native American Di5 rect Loan Improvement Act’’. 


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1 SEC. 2. IMPROVEMENTS TO PROGRAM FOR DIRECT HOUS2 ING LOANS MADE TO NATIVE AMERICAN VET3 ERANS BY THE SECRETARY OF VETERANS AF4 FAIRS. 

5 (a) DIRECT LOANS TO NATIVE AMERICAN VETERANS

6 TO REFINANCE EXISTING MORTGAGE LOANS.—Section 

7 3762(h)(1) of title 38, United States Code, is amended 

8 by inserting ‘‘and existing mortgage loans’’ after ‘‘sec9 tion’’. 

10 (b) EXPANSION OF OUTREACH PROGRAM ON AVAIL11 ABILITY OF DIRECT HOUSING LOANS FOR NATIVE AMER12 ICAN VETERANS.—Section 3762(i)(2) of such title is 

13 amended by adding at the end the following new subpara14 graph: 

15 ‘‘(G) Awarding grants to local service providers, 

16 such as tribal organizations, tribally designated 

17 housing entities, Native community development fi18 nancial institutions, and nonprofit organizations, for 

19 conducting outreach, homebuyer education, housing 

20 counseling, risk mitigation, and other technical as21 sistance as needed to assist Native American vet22 erans seeking to qualify for mortgage financing.’’. 

23 (c) DEFINITIONS.—Section 3765 of such title is 

24 amended by adding at the end the following new para25 graphs: 


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1 ‘‘(6) The term ‘community development finan2 cial institution’ has the meaning given that term in 

3 section 103 of the Community Development Banking 

4 and Financial Institutions Act of 1994 (12 U.S.C. 

5 4702). 

6 ‘‘(7) The term ‘Native community development 

7 financial institution’ means any entity— 

8 ‘‘(A) that has been certified as a commu9 nity development financial institution by the 

10 Secretary of the Treasury; 

11 ‘‘(B) that is not less than 50 percent 

12 owned or controlled by Indians, Alaska natives, 

13 or native Hawaiians; and 

14 ‘‘(C) for which not less than 50 percent of 

15 the activities of the entity serve Indians, Alaska 

16 natives, or native Hawaiians. 

17 ‘‘(8) The term ‘tribally designated housing enti18 ty’ has the meaning given that term in section 4 of 

19 the Native American Housing Assistance and Self20 Determination Act of 1996 (25 U.S.C. 4103).’’. 

21 SEC. 3. PILOT PROGRAM ON RELENDING OF DIRECT HOUS22 ING LOANS BY NATIVE COMMUNITY DEVEL23 OPMENT FINANCIAL INSTITUTIONS. 

24 (a) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘Alaska Native’’ has the meaning 

2 given the term ‘‘Native’’ in section 3(b) of the Alas3 ka Native Claims Settlement Act (43 U.S.C. 

4 1602(b)); 

5 (2) the term ‘‘community development financial 

6 institution’’ has the meaning given the term in sec7 tion 103 of the Community Development Banking 

8 and Financial Institutions Act of 1994 (12 U.S.C. 

9 4702); 

10 (3) the term ‘‘Indian Tribe’’ has the meaning 

11 given the term ‘‘Indian tribe’’ in section 4 of the Na12 tive American Housing Assistance and Self-Deter13 mination Act of 1996 (25 U.S.C. 4103); 

14 (4) the term ‘‘Native American veteran’’ has 

15 the meaning given the term in section 3765 of title 

16 38, United States Code; 

17 (5) the term ‘‘Native community development 

18 financial institution’’ means an entity— 

19 (A) that has been certified as a community 

20 development financial institution by the Sec21 retary of the Treasury; 

22 (B) that is not less than 50 percent owned 

23 or controlled by members of Indian Tribes, 

24 Alaska Native communities, or Native Hawaiian 

25 communities; and 


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1 (C) for which not less than 50 percent of 

2 the activities of the entity serve Indian Tribes, 

3 Alaska Native communities, or Native Hawaiian 

4 communities; 

5 (6) the term ‘‘Native Hawaiian’’ has the mean6 ing given the term in section 801 of the Native 

7 American Housing Assistance and Self-Determina8 tion Act of 1996 (25 U.S.C. 4221); 

9 (7) the term ‘‘pilot program’’ means the pilot 

10 program carried out under this section; 

11 (8) the term ‘‘priority Tribal land’’ means— 

12 (A) any land located within the boundaries 

13 of— 

14 (i) an Indian reservation, pueblo, or 

15 rancheria; or 

16 (ii) a former reservation within Okla17 homa; 

18 (B) any land not located within the bound19 aries of an Indian reservation, pueblo, or 

20 rancheria, the title to which is held— 

21 (i) in trust by the United States for 

22 the benefit of an Indian Tribe or an indi23 vidual Indian; 

24 (ii) by an Indian Tribe or an indi25 vidual Indian, subject to restriction against 


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1 alienation under laws of the United States; 

2 or 

3 (iii) by a dependent Indian commu4 nity; 

5 (C) any land located within a region estab6 lished pursuant to section 7(a) of the Alaska 

7 Native Claims Settlement Act (43 U.S.C. 

8 1606(a)); 

9 (D) Hawaiian Home Lands, as defined in 

10 section 801 of the Native American Housing 

11 Assistance and Self-Determination Act of 1996 

12 (25 U.S.C. 4221); or 

13 (E) those areas or communities designated 

14 by the Assistant Secretary of Indian Affairs of 

15 the Department of the Interior that are near, 

16 adjacent, or contiguous to reservations where fi17 nancial assistance and social service programs 

18 are provided to Indians because of their status 

19 as Indians; and 

20 (9) the term ‘‘qualified non-Native American 

21 veteran’’ has the meaning given the term in section 

22 3765 of title 38, United States Code. 

23 (b) ESTABLISHMENT.—The Secretary of Veterans 

24 Affairs shall carry out a pilot program to assess the feasi25 bility and advisability of making direct housing loans to 


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1 Native community development financial institutions to 

2 allow such institutions to relend loan amounts to qualified 

3 Native American veterans and qualified non-Native Amer4 ican veterans. 

5 (c) APPLICATION REQUIREMENTS.—A Native com6 munity development financial institution desiring a loan 

7 under the pilot program shall demonstrate that the insti8 tution— 

9 (1) can provide the non-Federal cost share re10 quired under paragraph (6); and 

11 (2) is able to originate and service loans for sin12 gle family homes. 

13 (d) LENDING REQUIREMENTS.—A Native community 

14 development financial institution that receives a loan pur15 suant to the pilot program shall— 

16 (1) use those amounts to make loans to bor17 rowers who— 

18 (A) are members of an Indian Tribe, an 

19 Alaska Native community, or a Native Hawai20 ian community; or 

21 (B) maintain a household in which not less 

22 1 member is a member of an Indian Tribe, an 

23 Alaska Native community, or a Native Hawai24 ian community; and 


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1 (2) in making loans under paragraph (1), give 

2 priority to borrowers described in that paragraph 

3 who are residing on priority Tribal land. 

4 (e) INTEREST RATE.—A loan made to a Native com5 munity development financial institution under the pilot 

6 program shall bear interest at a rate of 1 percent. 

7 (f) NON-FEDERAL COST SHARE.— 

8 (1) IN GENERAL.—A Native community devel9 opment financial institution that receives a loan 

10 under the pilot program shall be required to match 

11 not less than 20 percent of the amount received. 

12 (2) WAIVER.—In the case of a loan for which 

13 amounts are used to make loans to borrowers de14 scribed in subsection (d)(2), the Secretary shall 

15 waive the non-Federal cost share requirement de16 scribed in paragraph (1) with respect to those loan 

17 amounts. 

18 (g) REPAYMENT.—A Native community development 

19 financial institution shall repay a loan made under the 

20 pilot program to the Secretary of Veterans Affairs. 

21 (h) FUNDING.—Of amounts made available, for the 

22 fiscal year following the fiscal year in which this Act is 

23 enacted, for the program for direct housing loans for Na24 tive American veterans under subchapter V of chapter 37 

25 of title 38, United States Code, the Secretary of Veterans 


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1 Affairs may use $5,000,000 to carry out the pilot pro2 gram. 

Æ 


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