IB 
Union Calendar No. 223 
110TH CONGRESS 
1ST SESSION H. R. 3002 
[Report No. 110–363] 
To establish a demonstration program to authorize the Secretary of Housing 
and Urban Development to guarantee obligations issued by Indian tribes 
to finance community and economic development activities. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2007 
Mr. PEARCE (for himself, Mr. BOREN, Mr. FRANK of Massachusetts, Mr. KIL-
DEE, and Mr. RENZI) introduced the following bill; which was referred 
to the Committee on Financial Services 
OCTOBER 2, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 11, 2007] 
A BILL 
To establish a demonstration program to authorize the Sec-
retary of Housing and Urban Development to guarantee 
obligations issued by Indian tribes to finance community 
and economic development activities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Native American Eco-
nomic Development and Infrastructure for Housing Act of 
2007’’. 
SEC. 2. DEMONSTRATION PROGRAM FOR GUARANTEED 
LOANS TO FINANCE TRIBAL COMMUNITY AND 
ECONOMIC DEVELOPMENT ACTIVITIES. 
(a) AUTHORITY.—To the extent or in such amounts as 
are provided in appropriation Acts, the Secretary of Hous-
ing and Urban Development (in this section referred to as 
the ‘‘Secretary’’) may, subject to the limitations of this sec-
tion and upon such terms and conditions as the Secretary 
may prescribe, guarantee and make commitments to guar-
antee, the notes and obligations issued by Indian tribes or 
tribally designated housing entities (as such term is defined 
in section 4 of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4103)) with trib-
al approval, for the purposes of financing activities, carried 
out on Indian reservations and in other Indian areas, that 
under the first sentence of section 108(a) of the Housing 
and Community Development Act of 1974 are eligible for 
financing with notes and other obligations guaranteed pur-
suant to such section 108. 
(b) LOW-INCOME BENEFIT REQUIREMENT.—Not less 
than 70 percent of the aggregate funds received by an In-
dian tribe or tribally designated housing entity as a result 
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of a guarantee under this section shall be used for the sup-
port of activities that benefit low-income Indian families 
(as such term is defined for purposes of the Native American 
Housing Assistance and Self-Determination Act of 1996) on 
Indian reservations and other Indian areas. 
(c) FINANCIAL SOUNDNESS.—The Secretary shall es-
tablish underwriting criteria for guarantees under this sec-
tion, including fees for such guarantees, as may be nec-
essary to ensure that the program under this section for 
such guarantees is financially sound. Such fees shall be es-
tablished in amounts that are sufficient, but do not exceed 
the minimum amounts necessary, to maintain a negative 
credit subsidy for such program, as determined based upon 
risk to the Federal Government under such underwriting 
requirements. 
(d) TERMS OF OBLIGATIONS.—Notes or other obliga-
tions guaranteed pursuant to this section shall be in such 
form and denominations, have such maturities, and be sub-
ject to such conditions as may be prescribed by regulations 
issued by the Secretary. The Secretary may not deny a 
guarantee under this section 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. 
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(e) LIMITATION ON PERCENTAGE.—A guarantee made 
under this section shall guarantee repayment of 95 percent 
of the unpaid principal and interest due on the notes or 
other obligations guaranteed. 
(f) SECURITY AND REPAYMENT.— 
(1) REQUIREMENTS ON ISSUER.—To ensure the 
repayment of notes or other obligations and charges 
incurred under this section and as a condition for re-
ceiving such guarantees, the Secretary shall require 
the Indian tribe or housing entity issuing such notes 
or obligations to— 
(A) enter into a contract, in a form accept-
able to the Secretary, for repayment of notes or 
other obligations guaranteed under this section; 
(B) demonstrate that the extent of such 
issuance and guarantee under this section is 
within the financial capacity of the tribe; and 
(C) furnish, at the discretion of the Sec-
retary, such security as may be deemed appro-
priate by the Secretary in making such guaran-
tees, including increments in local tax receipts 
generated by the activities assisted by a guar-
antee under this section or disposition proceeds 
from the sale of land or rehabilitated property, 
except that such security may not include any 
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grant amounts received or for which the issuer 
may be eligible under title I of the Native Amer-
ican Housing Assistance and Self-Determination 
Act of 1996. 
(2) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the pay-
ment of all guarantees made under this section. Any 
such guarantee made by the Secretary shall be conclu-
sive evidence of the eligibility of the obligations for 
such guarantee with respect to principal and interest, 
and the validity of any such guarantee so made shall 
be incontestable in the hands of a holder of the guar-
anteed obligations. 
(g) TRAINING AND INFORMATION.—The Secretary, in 
cooperation with Indian tribes and tribally designated 
housing entities, shall carry out training and information 
activities with respect to the guarantee program under this 
section. 
(h) LIMITATIONS ON AMOUNT OF GUARANTEES.— 
(1) 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 sec-
tion, to the extent approved or provided in appro-
priations Acts, the Secretary may enter into commit-
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