tribe or housing entity has made efforts to obtain such
financing without the use of such guarantee and cannot
complete such financing consistent with the timely execu-
tion of the program plans without such guarantee.
(c) TERMS OF LOANS.—Notes or other obligations
guaranteed pursuant to this title shall be in such form
and denominations, have such maturities, and be subject
to such conditions as may be prescribed by regulations is-
sued by the Secretary. The Secretary may not deny a
guarantee under this title 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 deter-
mines that the period causes the guarantee to constitute
an unacceptable financial risk.
(d) LIMITATION ON OUTSTANDING GUARANTEES.—
No guarantee or commitment to guarantee shall be made
with respect to any note or other obligation if the issuer’s
total outstanding notes or obligations guaranteed under
this title (excluding any amount defeased under the con-
tract 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.
(e) PROHIBITION OF PURCHASE BY FFB.—Notes or
other obligations guaranteed under this title may not be
purchased by the Federal Financing Bank.
(f) PROHIBITION OF GUARANTEE FEES.—No fee or
charge may be imposed by the Secretary or any other Fed-
eral agency on or with respect to a guarantee made by
the Secretary under this title.
SEC. 602. SECURITY AND REPAYMENT.
(a) REQUIREMENTS ON ISSUER.—To assure the re-
payment of notes or other obligations and charges in-
curred under this title and as a condition for receiving
such guarantees, the Secretary shall require the Indian
tribe or housing entity issuing such notes or obligations
to—
(1) enter into a contract, in a form acceptable
to the Secretary, for repayment of notes or other ob-
ligations guaranteed under this title;
(2) pledge any grant for which the issuer may
become eligible under this Act; and
(3) furnish, at the discretion of the Secretary,
such other security as may be deemed appropriate
by the Secretary in making such guarantees, includ-
ing increments in local tax receipts generated by the
activities assisted under this Act or dispositions pro-
ceeds from the sale of land or rehabilitated property.
(b) REPAYMENT FROM GRANT AMOUNTS.—Notwith-
standing any other provision of this Act—
(1) the Secretary may apply grants pledged
pursuant to subsection (a)(2) to any repayments due
the United States as a result of such guarantees;
and
(2) grants allocated under this Act for an In-
dian tribe or housing entity (including program in-
come derived therefrom) may be used to pay prin-
cipal and interest due (including such servicing, un-
derwriting, and other costs as may be specified in
regulations issued by the Secretary) on notes or
other obligations guaranteed pursuant to this title.
(c) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this title. Any such guarantee
made by the Secretary shall be conclusive evidence of the
eligibility of the obligations for such guarantee with re-
spect 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.
SEC. 603. INTEREST.
(a) TAX TREATMENT.—The interest paid on any obli-
gation issued by an Indian tribe or housing entity and
guaranteed pursuant to this title shall be included in gross
income for the purpose of chapter 1 of the Internal Reve-
nue Code of 1954.
(b) GRANTS.—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 or
housing entity issuing notes or other obligations guaran-
teed under this title, to cover not to exceed 30 percent
of the net interest cost (including such servicing, under-
writing, 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 ap-
proved in appropriation Acts, assist the issuer of a note
or other obligation guaranteed under this title in the pay-
ment of all or a portion of the principal and interest
amount due under the note or other obligation, if the Sec-
retary determines that the issuer is unable to pay the
amount because of circumstances of extreme hardship be-
yond the control of the issuer.
SEC. 604. TREASURY BORROWING.
The Secretary may issue obligations to the Secretary
of the Treasury in an amount outstanding at any one time
sufficient to enable the Secretary to carry out the obliga-
tions of the Secretary under guarantees authorized by this
title. The obligations issued under this section shall have
such maturities and bear such rate or rates of interest
as shall be determined by the Secretary of the Treasury.
The Secretary of the Treasury is authorized and directed
to purchase any obligations of the Secretary issued under
this section, and for such purposes may use as a public
debt transaction the proceeds from the sale of any securi-
ties issued under chapter 31 of title 31, United States
Code, and the purposes for which such securities may be
issued under such chapter are extended to include the pur-
chases of the Secretary’s obligations hereunder.
SEC. 605. TRAINING AND INFORMATION.
The Secretary, in cooperation with eligible public en-
tities, shall carry out training and information activities
with respect to the guarantee program under this title.
SEC. 606. LIMITATIONS ON AMOUNT OF GUARANTEES.
(a) AGGREGATE FISCAL YEAR LIMITATION.—Not-
withstanding any other provision of law and subject only
to the absence of qualified applicants or proposed activities
and to the authority provided in this title, to the extent
approved or provided in appropriation Acts, the Secretary
shall enter into commitments to guarantee notes and obli-
gations under this title with an aggregate principal
amount of $400,000,000 for each of fiscal years 1997,
1998, 1999, 2000, and 2001.
(b) AUTHORIZATION OF APPROPRIATIONS FOR CRED-
IT SUBSIDY.—There is 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, $40,000,000 for each of fiscal years 1997,
1998, 1999, 2000, and 2001.
(c) AGGREGATE OUTSTANDING LIMITATION.—The
total amount of outstanding obligations guaranteed on a
cumulative basis by the Secretary pursuant to this title
shall not at any time exceed $2,000,000,000 or such high-
er amount as may be authorized to be appropriated for
this title for any fiscal year.
(d) FISCAL YEAR LIMITATIONS ON TRIBES.—The
Secretary shall monitor the use of guarantees under this
title by Indian tribes. If the Secretary finds that 50 per-
cent of the aggregate guarantee authority under sub-
section (c) has been committed, the Secretary may—
(1) impose limitations on the amount of guar-
antees any one Indian tribe may receive in any fiscal
year of $50,000,000; or
(2) request the enactment of legislation increas-
ing the aggregate limitation on guarantees under
this title.
SEC. 607. EFFECTIVE DATE.
This title shall take effect upon the enactment of this
Act.
TITLE VII—OTHER HOUSING AS-
SISTANCE FOR NATIVE AMER-
ICANS
SEC. 701. LOAN GUARANTEES FOR INDIAN HOUSING.
(a) LIMITATION
ON
OUTSTANDING
AGGREGATE
PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1515z–13a(i)(5)(C)) is amended by striking ‘‘1993’’ and
all that follows through ‘‘such year’’ and inserting ‘‘1997,
1998, 1999, 2000, and 2001 with an aggregate outstand-
ing principal amount note exceeding $400,000,000 for
each such fiscal year’’.
(b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR-
ANTEE FUND.—Section 184(i)(7) of the Housing and
Community Development Act of 1992 is amended by strik-
ing ‘‘such sums’’ and all that follows through ‘‘1994’’ and
inserting ‘‘$30,000,000 for each of fiscal years 1997,
1998, 1999, 2000, and 2001’’.
(c) AVAILABILITY OF AMOUNTS.—
(1) REQUIREMENT OF APPROPRIATIONS.—Sec-
tion 184(i)(5) of the Housing and Community De-
velopment Act of 1992 is amended by striking sub-
paragraph (A) and inserting the following new sub-
paragraph:
‘‘(A) 
REQUIREMENT
OF
APPROPRIA-
TIONS.—The authority of the Secretary to enter
into commitments to guarantee loans under this
section shall be effective for any fiscal year to
the extent or in such amounts as are or have
been provided in appropriations Acts, without
regard to the fiscal year for which such
amounts were appropriated.’’.
(2) COSTS.—Section 184(i)(5)(B) of the Hous-
ing and Community Development Act of 1992 is
amended by adding at the end the following new
sentence: ‘‘Any amounts appropriated pursuant to
this subparagraph shall remain available until ex-
pended.’’.
(d) LHMP REQUIREMENT.—Section 184(b)(2) of
the Housing and Community Development Act of 1992
is amended by inserting before the period at the end the
following: ‘‘that is under the jurisdiction of an Indian tribe
for which a local housing management plan has been sub-
mitted and approved pursuant to sections 102 and 103
of the Native American Housing Assistance and Self-De-
termination Act of 1996 that provides for the use of loan
guarantees under this section to provide affordable home-
ownership housing in such areas’’.
SEC. 702. 40-YEAR LEASEHOLD INTEREST IN TRUST OR RE-
STRICTED LANDS FOR HOUSING PURPOSES.
(a) AUTHORITY
TO LEASE.—Notwithstanding any
other provision of law, any restricted Indian lands, wheth-
er tribally or individually owned, may be leased by the In-
dian owners, with the approval of the Secretary of the In-
terior, for residential purposes.
(b) TERM.—Each lease pursuant to subsection (a)
shall be for a term not exceeding 40 years.
(c) RENEWAL.—A lease pursuant to subsection (a)
may, with the consent of both parties to the lease, include
provisions authorizing renewal of the lease for one addi-
tional term not exceeding 40 years.
(d) OTHER CONDITIONS.—Each lease pursuant to
subsection (a) and each renewal of such a lease shall be
made under such terms and regulations as may be pre-
scribed by the Secretary of the Interior.
(e) RULE OF CONSTRUCTION.—This section may not
be construed to repeal, limit, or affect any authority to
lease any restricted Indian lands that—
(1) is conferred by or pursuant to any other
provision of law; or
(2) provides for leases for any period exceeding
40 years.
SEC. 703. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.
There is authorized to be appropriated for assistance
for the National American Indian Housing Council for
providing training and technical assistance to Indian hous-
ing authorities $2,000,000, for each of fiscal years 1997,
1998, 1999, 2000, and 2001.
SEC. 704. EFFECTIVE DATE.
This title and the amendments made by this title
shall take effect upon the enactment of this Act.
Æ