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ject 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 condi-
tions as the Secretary may prescribe, guarantee and make
commitments to guarantee, the notes or other obligations
issued by Indian tribes or tribally designated housing enti-
ties with tribal approval, for the purposes of financing af-
fordable housing activities described in section 202.
(b) LACK OF FINANCING ELSEWHERE.—A guarantee
under this title may be used to assist an Indian tribe or
housing entity in obtaining financing only if the Indian
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
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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 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.
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;
(3) demonstrate that the extent of such issu-
ance and guarantee under this title is within the fi-
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nancial capacity of the tribe and is not likely to im-
pair the ability to use grant amounts under title I,
taking into consideration the requirements under
section 203(b); and
(4) 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 disposition 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
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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. PAYMENT OF INTEREST.
The Secretary may make, and contract to make,
grants, in such amounts as may be approved in appropria-
tions Acts, to or on behalf of an Indian tribe or housing
entity issuing notes or other obligations guaranteed under
this title, to cover not to exceed 30 percent of the net in-
terest cost (including such servicing, underwriting, or
other costs as may be specified in regulations of the Sec-
retary) to the borrowing entity or agency of such obliga-
tions. The Secretary may also, to the extent approved in
appropriation 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 deter-
mines that the issuer is unable to pay the amount because
of circumstances of extreme hardship beyond the control
of the issuer.
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SEC. 604. 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. 605. 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
may enter into commitments to guarantee notes and obli-
gations under this title with an aggregate principal
amount not to exceed $400,000,000 for each of fiscal
years 1997, 1998, 1999, 2000, and 2001.
(b) AUTHORIZATION OF APPROPRIATIONS FOR CRED-
IT 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 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.
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(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 outstanding limitation on guaran-
tees under this title.
SEC. 606. EFFECTIVE DATE.
This title shall take effect on the date of the enact-
ment of this Act.
TITLE VII—OTHER HOUSING AS-
SISTANCE FOR NATIVE AMER-
ICANS
SEC. 701. LOAN GUARANTEES FOR INDIAN HOUSING.
(a) DEFINITION OF ELIGIBLE BORROWERS TO IN-
CLUDE INDIAN TRIBES.—Section 184 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1515z–
13a) is amended—
(1) in subsection (a)—
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(A) by striking ‘‘and Indian housing au-
thorities’’ and inserting ‘‘, Indian housing au-
thorities, and Indian tribes,’’; and
(B) by striking ‘‘or Indian housing author-
ity’’ and inserting ‘‘, Indian housing authority,
or Indian tribe’’; and
(2) in subsection (b)(1), by striking ‘‘or Indian
housing authorities’’ and inserting ‘‘, Indian housing
authorities, or Indian tribes’’.
(b) NEED FOR LOAN GUARANTEE.—Section 184(a)
of the Housing and Community Development Act of 1992
(12 U.S.C. 1715z–13a(a)) is amended by striking ‘‘trust
land’’ and inserting ‘‘lands or as a result of a lack of ac-
cess to private financial markets’’.
(c) IHP REQUIREMENT.—Section 184(b)(2) of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z–13a(b)(2)) is amended by inserting before
the period at the end the following: ‘‘that is under the
jurisdiction of an Indian tribe for which an Indian housing
plan has been submitted and approved pursuant to sec-
tions 102 and 103 of the Native American Housing Assist-
ance and Self-Determination Act of 1996 that provides for
the use of loan guarantees under this section to provide
affordable homeownership housing in such areas’’.
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(d) LENDER OPTION TO OBTAIN PAYMENT UPON
DEFAULT WITHOUT FORECLOSURE.—Section 184(h) of
the Housing and Community Development Act of 1992
(12 U.S.C. 1715z–13a(h)) is amended—
(1) in paragraph (1)(A)—
(A) in the first sentence of clause (i), by
striking ‘‘in a court of competent jurisdiction’’;
and
(B) by striking clause (ii) and inserting the
following:
‘‘(ii) 
NO
FORECLOSURE.—Without
seeking foreclosure (or in any case in
which a foreclosure proceeding initiated
under clause (i) continues for a period in
excess of 1 year), the holder of the guaran-
tee may submit to the Secretary a request
to assign the obligation and security inter-
est to the Secretary in return for payment
of the claim under the guarantee. The Sec-
retary may accept assignment of the loan
if the Secretary determines that the as-
signment is in the best interests of the
United States. Upon assignment, the Sec-
retary shall pay to the holder of the guar-
antee the pro rata portion of the amount
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guaranteed (as determined under sub-
section (e)). The Secretary shall be sub-
rogated to the rights of the holder of the
guarantee and the holder shall assign the
obligation and security to the Secretary.’’;
(2) by striking paragraph (2); and
(3) by redesignating paragraph (3) as para-
graph (2).
(e) LIMITATION OF MORTGAGEE AUTHORITY.—Sec-
tion 184(h)(2) of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1715z–13a(h)(2)), as so re-
designated by subsection (e)(3) of this section, is amend-
ed—
(1) in the first sentence, by striking ‘‘tribal al-
lotted or trust land,’’ and inserting ‘‘restricted In-
dian land, the mortgagee or’’; and
(2) in the second sentence, by striking ‘‘Sec-
retary’’ each place it appears, and inserting ‘‘mort-
gagee or the Secretary’’.
(f) 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.
1715z–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-
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ing principal amount note exceeding $400,000,000 for
each such fiscal year’’.
(g) AUTHORIZATION OF APPROPRIATIONS FOR GUAR-
ANTEE FUND.—Section 184(i)(7) of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z–
13a(i)(7)) is amended by striking ‘‘such sums’’ and all
that follows through ‘‘1994’’ and inserting ‘‘such sums as
may be necessary for each of fiscal years 1997, 1998,
1999, 2000, and 2001’’.
(h) DEFINITIONS.—Section 184(k) of the Housing
and Community Development Act of 1992 (12 U.S.C.
1715z–13a(k)) is amended—
(1) in paragraph (4), by inserting after ‘‘au-
thority’’ the following: ‘‘or Indian tribe’’;
(2) in paragraph (5)—
(A) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) is authorized to engage in or assist in
the development or operation of—
‘‘(i) low-income housing for Indians;
or
‘‘(ii) housing subject to the provisions
of this section; and’’; and
(B) by adding at the end the following:
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‘‘The term includes tribally designated housing enti-
ties under the Native American Housing Assistance
and Self-Determination Act of 1996.’’; and
(3) by striking paragraph (8) and inserting the
following new paragraph:
‘‘(8) TRIBE; INDIAN TRIBE.—The term ‘tribe’
or ‘Indian tribe’ means any Indian tribe, band, na-
tion, or other organized group or community of Indi-
ans, including any Alaska Native village or regional
or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement
Act, that is recognized as eligible for the special pro-
grams and services provided by the United States to
Indians because of their status as Indians pursuant
to the Indian Self-Determination and Education As-
sistance Act of 1975.’’.
(i) PRINCIPAL
OBLIGATION
AMOUNTS.—Section
184(b)(5)(C) of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1715z–13a(b)(5)(C)) is
amended by striking clause (i) and inserting the following
new clause:
‘‘(i) 97.75 percent of the appraised
value of the property as of the date the
loan is accepted for guarantee (or 98.75
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percent if the value of the property is
$50,000 or less); and’’.
(j) AVAILABILITY OF AMOUNTS.—
(1) REQUIREMENT OF APPROPRIATIONS.—Sec-
tion 184(i)(5) of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 1715z–13a(i)(5))
is amended by striking subparagraph (A) and insert-
ing the following:
‘‘(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 (12
U.S.C. 1715z–13a(i)(5)(B)) is amended by adding
at the end the following new sentence: ‘‘Any
amounts appropriated pursuant to this subpara-
graph shall remain available until expended.’’.
(k) GNMA AUTHORITY.—The first sentence of sec-
tion 306(g)(1) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1721(g)(1)) is amended by
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inserting before the period at the end the following: ‘‘; or
guaranteed under section 184 of the Housing and Com-
munity Development Act of 1992’’.
SEC. 702. 50-YEAR LEASEHOLD INTEREST IN TRUST OR RE-
STRICTED LANDS FOR HOUSING PURPOSES.
(a) AUTHORITY TO LEASE.—Notwithstanding any
other provision of law, any trust or restricted Indian lands,
whether tribally or individually owned, may be leased by
the Indian owners, subject to the approval of the affected
Indian tribe and the Secretary of the Interior, for housing
development and residential purposes.
(b) TERM.—Each lease pursuant to subsection (a)
shall be for a term not exceeding 50 years.
(c) RULE OF CONSTRUCTION.—This section may not
be construed to repeal, limit, or affect any authority to
lease any trust or 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
50 years.
(d) SELF-IMPLEMENTATION.—This section is in-
tended to be self-implementing and shall not require the
issuance of any rule, regulation, or order to take effect
as provided in section 705.
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SEC. 703. TRAINING AND TECHNICAL ASSISTANCE.
There are authorized to be appropriated for assist-
ance for a national organization representing Native
American housing interests for providing training and
technical assistance to Indian housing authorities and
tribally designated housing entities such sums as may be
necessary for each of fiscal years 1997, 1998, 1999, 2000,
and 2001.
SEC. 704. PUBLIC AND ASSISTED HOUSING DRUG ELIMI-
NATION ACT OF 1990.
The Public and Assisted Housing Drug Elimination
Act of 1990 (42 U.S.C. 11901 et seq.) is amended—
(1) in section 5123—
(A) by striking ‘‘(including Indian Housing
Authorities)’’; and
(B) by inserting ‘‘tribally designated hous-
ing entities,’’ before ‘‘and private’’; and
(2) in section 5124(a)(7)—
(A) by inserting ‘‘or tribally designated
housing entity’’ after ‘‘public housing agency’’;
and
(B) by striking ‘‘public housing’’ after non-
profit;
(3) in section 5125, by inserting ‘‘a tribally des-
ignated housing entity,’’ after ‘‘resident management
corporation,’’; and
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(4) in section 5126—
(A) in paragraph (4)—
(i) in subparagraph (B), by striking
‘‘or’’ at the end;
(ii) in subparagraph (C), by striking
the period at the end and inserting ‘‘; or’’;
and
(iii) by adding at the end the follow-
ing new subparagraph:
‘‘(D) the Native American Housing Assist-
ance and Self-Determination Act.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) TRIBALLY
DESIGNATED
HOUSING
EN-
TITY.—The term ‘tribally designated housing entity’
has the meaning given such term in section 4 of the
Native American Housing Assistance and Self-De-
termination Act of 1996.’’.
SEC. 705. EFFECTIVE DATE.
This title and the amendments made by this title (but
not including the amendments made by section 704) shall
take effect on the date of the enactment of this Act.
Passed the House of Representatives September 28,
1996.
Attest:
ROBIN H. CARLE,
Clerk.