59–010 

Calendar No. 262 

110TH CONGRESS REPORT " ! SENATE 1st Session 110–126 

TO REAUTHORIZE THE PROGRAMS OF THE DEPARTMENT 

OF HOUSING AND URBAN DEVELOPMENT FOR HOUSING ASSISTANCE FOR NATIVE HAWAIIANS 

JULY 9, 2007.—Ordered to be printed 

Mr. DORGAN, from the Committee on Indian Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 835] 

The Committee on Indian Affairs, to which was referred the bill 

(H.R. 835) to reauthorize programs in the Department of Housing 

and Urban Development for housing assistance for Native Hawaiians, having considered the same, reports favorably thereon without amendment and recommends that the bill do pass. 

PURPOSE

The Hawaiian Homeownership Opportunity Act of 2007 would 

reauthorize the Native Hawaiian Housing Block Grant program in 

Title VIII of the Native American Housing and Self-Determination 

Act of 1996 (NAHASDA) and the Section 184A individual loan 

guarantee program for low-income Native Hawaiian families. The 

bill would also authorize the Department of Hawaiian Home Lands 

to utilize Title VI of NAHASDA to leverage its future housing block 

grant funds to provide housing services to low-income Native Hawaiian families living on Hawaiian home lands. 

BACKGROUND

The Native American Housing Assistance and Self-Determination 

Act of 1996 (25 U.S.C. 4101 et seq.) reorganized the system of 

housing assistance provided to tribes through the Department of 

Housing and Urban Development (HUD). Tribal eligibility for several housing programs was eliminated and the funding from those 

programs was instead consolidated into the Indian Housing Block 

Grant (IHBG). The Indian Housing Block Grant provides direct 


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funding to tribes for various housing activities authorized by 

NAHASDA. In 2000, NAHASDA was amended to include Title VIII 

so that Native Hawaiians could also receive funding through a separate block grant, the Native Hawaiian Housing Block Grant 

(NHHBG), which funds affordable housing activities on Hawaiian 

home lands. 

Title VIII of NAHASDA was originally authorized for five years, 

through Fiscal Year 2005, and has not been formally reauthorized 

since, although Congress has continued to provide annual appropriations to carry out the program. H.R. 835 reauthorizes Title VIII 

of NAHASDA for five years, for Fiscal Years 2008 through 2012. 

H.R. 835 also makes two substantive changes to current law by 

expanding Native Hawaiians’ access to two loan guarantee programs: Section 184A (12 U.S.C. 1715z–13b) and NAHASDA Title 

VI. 

Section 184A. H.R. 835 amends the Section 184A loan guarantee 

program for single-family homes on Native Hawaiian home lands 

to allow for refinancing; to strike requirements that a homebuyer 

be turned down for a loan before applying for a Section 184A loan; 

and to eliminate the requirement to report on anticipated applications in the annual housing plan. 

NAHASDA Title VI. H.R. 835 authorizes the Department of Hawaiian Home Lands (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 authorize the Department of Hawaiian Home 

Lands to borrow or issue bonded debt for large-scale housing and 

infrastructure development with the security of the federal government. The funding stream provided by the Department of Housing 

and Urban Development would be used as collateral. 

LEGISLATIVE HISTORY

On March 28, 2007, the House of Representatives voted 272–150 

to pass H.R. 835, and upon receipt in the Senate, the bill was referred to the Committee on Indian Affairs. The bill is identical to 

a bill Senator Inouye introduced in February, 2007 (S. 710). 

On May 10, 2007, the Committee on Indian Affairs convened a 

business meeting to consider H.R. 835 and other measures that 

had been referred to it, and ordered the bill favorably reported. 

COMMITTEE RECOMMENDATION AND TABULATION OF VOTE

On May 10, 2007, the Committee on Indian Affairs convened a 

business meeting to consider H.R. 835 and other measures, and 

voted to have the bill favorably reported to the full Senate, without 

amendment, with the recommendation that the bill do pass. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Hawaiian Homeownership Opportunity Act of 2007. 


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Section 2. Authorization of appropriations for housing assistance 

Makes Title VIII of NAHASDA (25 U.S.C. 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 U.S.C. 1715z–13b), for fiscal years 2008 

through 2012. 

Amends Section 184A to conform to the provisions of the 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 of 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 Hawaiian 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. Submitting this information in the annual Native 

Hawaiian Housing Plan of the Department of Hawaiian Home 

Lands would still be required if any Native Hawaiian Housing 

Block Grant 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 and 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. 

Section 4. Eligibility of Department of Hawaiian Home Lands for 

Title VI loan guarantees 

Makes the Department of Hawaiian Home Lands eligible to participate in Title VI of NAHASDA, Federal Guarantees for the Financing of Tribal Housing Activities. This would allow the Department of Hawaiian Home Lands 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 affordable housing activities and other purposes allowed 

under Title VIII. 

COST AND BUDGETARY CONSIDERATIONS

The following cost estimate, as provided by the Congressional 

Budget Office, dated May 17, 2007, was prepared for H.R. 835: 


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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 act 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); 

the act would benefit 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 

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. 


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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 benefit the state of Hawaii. The act would allow 

certain state and tribal entities in the state of Hawaii to continue 

helping native Hawaiians with low income purchase, construct, or 

refinance homes. 

Previous CBO estimate: On February 21, 2007, CBO transmitted 

a cost estimate for H.R. 835 as ordered reported by the House Committee on Financial Services on February 14, 2007. The House and 

Senate versions of the act are identical, as are CBO’s estimates. 

Estimate prepared by: Federal Costs: Chad Chirico and Susanne 

S. Mehlman; Impact on State, Local, and Tribal Governments: Lisa 

Ramirez-Branum; Impact on the Private Sector: Paige Piper/Bach. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 


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EXECUTIVE COMMUNICATIONS

The Committee has received no communications from the Executive Branch regarding H.R. 835. 

REGULATORY AND PAPERWORK IMPACT STATEMENT

Paragraph 11(b) of rule XXVI of the Standing Rules of the Senate requires that each report accompanying a bill evaluate the regulatory and paperwork impact that would be incurred in carrying 

out the bill. The Committee has concluded that the regulatory and 

paperwork impacts of H.R. 835 should be de minimis. 

CHANGES IN EXISTING LAW

In compliance with subsection 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill H.R. 

835, as ordered reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new language to 

be added in italic, existing law to which no change is proposed is 

shown in roman): 

NATIVE AMERICAN HOUSING ASSISTANCE 

AND SELF-DETERMINATION 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 

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 


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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—

* * * * * * * 

(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 

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 


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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. 

* * * * * * * 

(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. 

[(B) HOUSING PLAN.—A housing plan described in this 

subparagraph is a housing plan that—

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.—


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(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. 

Æ 


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