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[Senate Report 109-160]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 261
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-160

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            NATIVE AMERICAN HOUSING ENHANCEMENT ACT OF 2005

                                _______
                                

                October 27, 2005.--Ordered to be printed

                                _______
                                

    Mr. McCain, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 797]

    The Committee on Indian Affairs, to which was referred the 
bill (H.R. 797) to amend the Native American Housing Assistance 
and Self-Determination Act of 1996 and other Acts to improve 
housing programs for Indians, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                Purpose

    The purpose of the Native American Housing Enhancement Act 
of 2005, H.R. 797, is to amend certain provisions of Federal 
Indian housing laws to establish consistency among Federal 
Indian housing programs, to increase the availability of Indian 
housing programs and to correct a technical oversight in Native 
American Housing Assistance and Self Determination Act of 1996, 
25 U.S.C. 4101 et seq. (NAHASDA).

                               Background

    In 1996, Congress passed NAHASDA to increase the 
availability of affordable housing for American Indians and 
Alaska Natives by allowing the housing funds to be leveraged 
with other Federal and private funds, among other purposes. The 
NAHASDA, which is administered by the Department of Housing and 
Urban Development, provides Indian tribes or their tribally 
designated housing entities the flexibility to use the housing 
funds according to tribal priorities including housing 
construction, infrastructure development, or planning. The 
Housing Act of 1949 (42 U.S.C. 1471 et seq.), administered by 
the Department of Agriculture, also includes housing programs 
for Indian tribes and their members. The Cranston-Gonzales 
National Affordable Housing Act, P.L. 101-625, November 28, 
1990 (104 Stat. 4079), 42 U.S.C. 12701 et seq., was amended in 
1992 to create the YouthBuild program for young adults. See 
P.L. 102-550, Title I, Sec. 164, October 28, 1992 (106 Stat. 
3723), 42 U.S.C. 12899 et seq. However, with the enactment of 
NAHASDA in 1996, Indian tribes were no longer eligible to apply 
for Cranston-Gonzales National Affordable Housing Act 
YouthBuild funding.

               DEPARTMENT OF AGRICULTURE HOUSING PROGRAMS

    The Housing Act of 1949 (42 U.S.C. 1471 et seq.) authorizes 
various housing programs administered by the Department of 
Agriculture, including programs for Indian tribes. Title VI of 
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) 
prohibits exclusion of persons from participation in or 
receiving benefits of federally funded programs or activities 
based on race, color and national origin. Title VIII of the 
Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.) generally 
prohibits such discrimination in the provision of housing and 
housing services. Because housing programs operated by Indian 
tribes or their housing instrumentalities on reservations and 
other Indian areas are intended to serve the housing needs of 
Indian people, NAHASDA exempts the Indian tribes and their 
designated housing entities from these statutes in carrying out 
affordable housing activities under NAHASDA. See Sec. 201(b)(6) 
of NAHASDA, 25 U.S.C. 4131 (b)(6). However, there is no such 
exemption for Indian tribes in the Housing Act of 1949.
    Section 4 of H.R. 797 amends Title V of the Housing Act of 
1949 by adding a new section that: (1) states that Federally 
recognized Indian tribes (and their instrumentalities) ``who 
exercise powers of self government shall comply with the Indian 
Civil Rights Act'' of 1968 (25 U.S.C. 1301-1303) when receiving 
assistance under that title of the 1949 Housing Act; and (2) 
exempts Indian tribes that are covered by the Indian Civil 
Rights Act of 1968 or that are acting under Sec. 201(b) of 
NAHASDA from Title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d et seq.) and Title VIII of the Civil Rights Act of 
1968 (42 U.S.C. 3601 et seq.). The purpose of this amendment is 
to provide consistency in the requirements of Indian housing 
programs under the 1949 Housing Act with those of NAHASDA.

                          YOUTHBUILD PROGRAMS

    The YouthBuild program of the Cranston-Gonzales National 
Affordable Housing Act provides young adults with opportunities 
to develop new leadership and job skills by participating in 
home construction projects. The Secretary of Housing and Urban 
Development is authorized to make YouthBuild planning and 
implementation grants to eligible organizations or agencies. 
See 42 U.S.C. 12899a, 12899b and 12899c. With the enactment of 
NAHASDA in 1996, however, Indian tribes and their housing 
authorities were no longer eligible for YouthBuild grants. See 
P.L. 104-330, 504(a). Indian tribes and their designated 
housing entities may instead use NAHASDA block grant funding to 
develop YouthBuild programs. However, the Committee has been 
made aware that NAHASDA block grant funding is frequently 
insufficient to meet tribal housing priorities and, at the same 
time, adequately support YouthBuild type programs. Accordingly, 
H.R. 797 would amend section 12899f(2) of the Cranston-Gonzales 
National Affordable Housing Act to include Indian tribes, 
tribally designated housing entities and other agencies 
primarily serving Indians to the definition of eligible 
applicants and thereby increase the availability of YouthBuild 
programs for Indian communities.

                     ACCESS TO GRANTS UNDER NAHASDA

    Section 104(a)(2) of NAHASDA (25 U.S.C. 4114(a)(2)) 
prohibits the Secretary of Housing and Urban Development from 
reducing housing grants awarded to Indian tribes based solely 
on (1) the tribe's retention of program income, (2) the amount 
of such income retained by the tribe, (3) the tribe's retention 
of reserve amounts from the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.), or (4) whether the recipient has 
expended retained program income for housing related 
activities. However, the NAHASDA does not expressly prohibit 
the Secretary from restricting a tribe's access to, or even 
from disallowing a tribe or tribally designated housing entity 
from applying for, housing grants--as opposed to reducing grant 
amounts--when those same circumstances exist.
    This technical oversight could result in denying Indian 
tribes or their designated housing entities the opportunity to 
apply for or receive NAHASDA grants, because the prohibition is 
limited to reducing the tribe's or housing entity's grant 
amount. Congress intended to broaden the housing grant 
opportunities for Indian tribes, not limit them, and correcting 
the technical oversight would be consistent with that original 
intent. Consequently, H.R. 797 corrects this technical 
oversight by amending NAHASDA to prohibit the Secretary from 
restricting tribal access to housing grants based solely on the 
four circumstances specified in section 104(a) of NAHASDA.

                          Need for Legislation

    The legislation is necessary to make the requirements 
applicable to Indian tribes and their housing entities under 
the Housing Act of 1949 consistent with NAHASDA; to allow 
Indian tribes to have access to YouthBuild program grants; and 
to make a technical correction to section 104(a)(2) of NAHASDA.

                          Legislative History

    The bill, H.R. 797, was introduced in the House of 
Representatives on February 14, 2005 by Representative Renzi 
for himself and Representative Matheson. Representative Rahall 
joined as a cosponsor on April 6, 2005. The House passed H.R. 
797 on April 6, 2005, and after being received from the House, 
the bill was referred to the Senate Committee on Indian 
Affairs. A companion bill, S.475, was introduced on February 
28, 2005, by Senator Johnson for himself and Senator Enzi, and 
subsequently referred to the Committee on Indian Affairs.

            Committee Recommendation and Tabulation of Vote

    In an open business session on June 29, 2005, the Committee 
by voice vote ordered the bill to be reported favorably, 
without amendment, to the full Senate.

                      Section-by-Section Analysis

Section 1: Short title

    This section sets forth the short title of the bill, the 
``Native American Housing Enhancement Act of 2005.''

Section 2: Findings

    This section sets forth Congressional findings, including 
findings that the United States has a unique obligation to 
Indians, that Indians experience some of the worst housing 
conditions in the country, that members of Indian tribes are 
given a preference for housing programs under NAHASDA, and that 
the Housing Act of 1949 should be amended to allow for the 
preference given to Indians for Indian housing programs.

Section 3: Treatment of program income

    This section sets forth a technical amendment to section 
104(a)(2) of NAHASDA to prohibit the Secretary from restricting 
tribal access to grants based solely on the circumstances 
specified in that section.

Section 4: Civil rights compliance

    This section amends title V of the Housing Act of 1949, 42 
U.S.C. 1471, et seq., by adding a new section that (1) requires 
federally-recognized Indian tribes exercising powers of self-
government (or their instrumentalities) to comply with the 
Indian Civil Rights Act of 1968 (25 U.S.C. 1301-1303) when 
receiving assistance under the 1949 Housing Act, and (2) 
provides an exemption from title VI of the Civil Rights Act of 
1964 (42 U.S.C. 2000d, et seq.) and title VII of the Civil 
Rights Act of 1968 (42 U.S.C. 3601, et seq.) to tribes that are 
covered by the Indian Civil Rights Act (title II of the Civil 
Rights Act of 1968; 25 U.S.C. 1301-1303) or that are acting 
under section 201(b) of NAHASDA (25 U.S.C. 4131(b)).

Section 5: Eligibility of Indian tribes for YouthBuild grants

    This section amends section 457(2) of the Cranston-Gonzales 
National Affordable Housing Act (42 U.S.C. 12899f(2)) to 
include Indian tribes, tribally designated housing entities and 
other agencies primarily serving Indians as eligible applicants 
for YouthBuild grants.

                   Cost and Budgetary Considerations

    The following cost estimate dated, July 25, 2005, was 
prepared for S. 475, a companion bill introduced in the Senate 
which is almost identical to H.R. 797:

S. 475--Native American Housing Enhancement Act of 2005

    S. 475 would amend the Native American Housing and Self-
Determination Act of 1996 to increase Indian tribes' access to 
funding authorized by that act. Specifically, the bill would 
permit tribes to receive new grants even if they still retain 
program income from earlier years. The bill would also amend 
title V of the Housing Act of 1949 to allow tribes to target 
funds to Indians in the administration of tribal housing 
projects. In addition, the bill would make Indian tribes 
eligible to receive YouthBuild grants.
    CBO estimates that implementing S. 475 would have no 
significant effect on the federal budget and would not affect 
direct spending or revenues.
    S. 475 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act. The 
bill would benefit tribal governments that receive federal 
housing funds.
    The CBO staff contact for this estimate is Chad Chirico. 
This estimate was approved by Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact to be incurred in carrying out 
the bill. The Committee believes that H.R. 797 will have 
minimal regulatory or paperwork impact.

                        Executive Communications

    The Committee has received no official executive 
communications on H.R. 797.

                        Changes in Existing Law

    In compliance with subsection 12 of Rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
enactment of H.R. 797 will result in the following changes in 
the law (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic):

         25 U.S.C. 4114(a) (P.L. 104-330, Title I, Sec. 104(a))

Sec. 4114. Treatment of program income and labor standards

    (a) Program income.--
          (1) Authority to retain.--

           *       *       *       *       *       *       *

          (2) Prohibition of reduction of grant.--The Secretary 
        may not restrict access to or reduce the grant amount 
        for any Indian tribe based solely on--
                  (A) whether the recipient for the tribe 
                retains program income under paragraph (1);
                  (B) the amount of any such program income 
                retained;
                  (C) whether the recipient retains reserve 
                amounts described in section 4140 of this 
                title; or
                  (D) whether the recipient has expended 
                retained program income for housing-related 
                activities.

           *       *       *       *       *       *       *

    Title V of the Housing Act of 1949, 42 U.S.C. 1471 (63 
Stat. 432) is amended by adding a new section 544 as follows:

SEC. 544. INDIAN TRIBES.

    (a) In General.--Federally recognized Indian Tribes who 
exercise powers of self-government (or their instrumentalities) 
shall comply with the Indian Civil Rights Act (title II of the 
Civil Rights Act of 1968; 25 U.S.C. 1301-1303) when receiving 
assistance under this title.
    (b) Exemption.--Title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d) and title VIII of the Civil Rights Act of 
1968 (42 U.S.C. 3601 et seq.) shall not apply to--
          (1) tribes covered by the Indian Civil Rights Act 
        (title II of the Civil Rights Act of 1968; 25 U.S.C. 
        1301-1303); or
          (2) tribes acting under section 201(b) of the native 
        American Housing and Self-Determination Act of 1996 (25 
        U.S.C. 4131(b)).

           *       *       *       *       *       *       *

                          42 U.S.C. 12899f(2)

                     42 U.S.C. 12899f. Definitions.

    For purposes of this part:
          (1) Adjusted income.--

           *       *       *       *       *       *       *

          (2) Applicant.--The term ``applicant'' means a public 
        or private nonprofit agency, including--
                  (A) a community-based organization;
                  (B) an administrative entity designated under 
                section 103(b)(1)(B) of the Job Training 
                Partnership Act;
                  (C) a community action agency;
                  (D) a State and local housing development 
                agency;
                  (E) a community development corporation;
                  (F) a State and local youth service and 
                conservation corps; [and]
                  (G) an Indian tribe, tribally designated 
                housing entity (as defined in section 4 of the 
                Native American Housing Assistance and Self-
                Determination Act of 1996 (25 U.S.C. 4103)), or 
                other agency primarily serving Indians; and
                  [(G)] (H) any other entity eligible to 
                provide education and employment training under 
                other Federal employment training programs.

                                  
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