ments to guarantee, 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 tribal 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 Develop-
ment Act of 1974 are eligible for financing with notes and 
other obligations guaranteed pursuant to such section 
108. 
(b) LOW-INCOME
BENEFIT
REQUIREMENT.—Not 
less than 70 percent of the aggregate funds received by 
an Indian tribe or tribally designated housing entity as 
a result of a guarantee under this section shall be used 
for the support of activities that benefit low-income Indian 
families (as such term is defined for purposes of the Na-
tive 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
established in amounts that are sufficient, but do not ex-
ceed the minimum amounts necessary, to maintain a nega-
tive credit subsidy for such program, as determined based 
upon risk to the Federal Government under such under-
writing 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 
subject to such conditions as may be prescribed by regula-
tions 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. 
(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 
receiving such guarantees, the Secretary shall re-
quire 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 
grant amounts received or for which the issuer 
may be eligible under title I of the Native 
American Housing Assistance and Self-Deter-
mination Act of 1996. 
(2) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the 
payment of all guarantees made under this section. 
Any such guarantee made by the Secretary shall be 
conclusive evidence of the eligibility of the obliga-
tions 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 guaranteed 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.— 
Notwithstanding any other provision of law and sub-
ject only to the absence of qualified applicants or 
proposed activities and to the authority provided in 
this section, to the extent approved or provided in 
appropriations Acts, the Secretary may enter into 
commitments to guarantee notes and obligations 
under this section with an aggregate principal 
amount not to exceed $200,000,000 for each of fis-
cal years 2008 through 2012. 
(2) AUTHORIZATION OF APPROPRIATIONS FOR 
CREDIT SUBSIDY.—There are authorized to be ap-
propriated to cover the costs (as such term is de-
fined in section 502 of the Congressional Budget Act 
of 1974) of guarantees under this section such sums
as may be necessary for each of fiscal years 2008 
through 2012. 
(3) AGGREGATE OUTSTANDING LIMITATION.— 
The total amount of outstanding obligations guaran-
teed on a cumulative basis by the Secretary pursu-
ant to this section shall not at any time exceed 
$1,000,000,000 or such higher amount as may be 
authorized to be appropriated for this section for 
any fiscal year. 
(4) FISCAL YEAR LIMITATIONS ON TRIBES.— 
The Secretary shall monitor the use of guarantees 
under this section by Indian tribes. If the Secretary 
finds that 50 percent of the aggregate guarantee au-
thority under paragraph (3) has been committed, the 
Secretary may— 
(A) impose limitations on the amount of 
guarantees pursuant to this section that any 
one Indian tribe may receive in any fiscal year 
of $25,000,000; or 
(B) request the enactment of legislation in-
creasing the aggregate outstanding limitation 
on guarantees under this section. 
(i) REPORT.—Not later than the expiration of the 4- 
year period beginning on the date of the enactment of this 
Act, the Secretary shall submit a report to the Congress
regarding the utilization of the authority under this sec-
tion by Indian tribes and tribally designated housing enti-
ties, identifying the extent of such utilization and the 
types of projects and activities financed using such author-
ity and analyzing the effectiveness of such utilization in 
carrying out the purposes of this section. 
(j) TERMINATION.—The authority of the Secretary 
under this section to make new guarantees for notes and 
obligations shall terminate on October 1, 2012. 
SEC. 10. LIMITATION ON USE OF FUNDS. 
No amounts made available pursuant to any author-
ization of appropriations under this Act, or under the 
amendments made by this Act, may be used to employ 
workers described in section 274A(h)(3)) of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a(h)(3)). 
Passed the House of Representatives September 6, 
2007. 
Attest: 
Clerk.