II 117th CONGRESS 2d Session S. 4505 IN THE SENATE OF THE UNITED STATES July 12, 2022 Mr. Rounds (for himself and Mr. Tester ) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs A BILL To amend title 38, United States Code, to improve the program for direct housing loans made to Native American veterans, and for other purposes.

1. Short title This Act may be cited as the Native American Direct Loan Improvement Act . 2. Improvements to program for direct housing loans made to Native American veterans by the Secretary of Veterans Affairs (a) Direct loans to Native American veterans To refinance existing mortgage loans Section 3762(h)(1) of title 38, United States Code, is amended by inserting and existing mortgage loans after section . (b) Expansion of outreach program on availability of direct housing loans for Native American veterans Section 3762(i)(2) of such title is amended by adding at the end the following new subparagraph: (G) Awarding grants to local service providers, such as tribal organizations, tribally designated housing entities, Native community development financial institutions, and nonprofit organizations, for conducting outreach, homebuyer education, housing counseling, risk mitigation, and other technical assistance as needed to assist Native American veterans seeking to qualify for mortgage financing. . (c) Definitions Section 3765 of such title is amended by adding at the end the following new paragraphs: (6) The term community development financial institution has the meaning given that term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 ). (7) The term Native community development financial institution means any entity— (A) that has been certified as a community development financial institution by the Secretary of the Treasury; (B) that is not less than 50 percent owned or controlled by Indians, Alaska natives, or native Hawaiians; and (C) for which not less than 50 percent of the activities of the entity serve Indians, Alaska natives, or native Hawaiians. (8) The term tribally designated housing entity has the meaning given that term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103 ). . 3. Pilot program on relending of direct housing loans by Native community development financial institutions (a) Definitions In this section— (1) the term Alaska Native has the meaning given the term Native in section 3(b) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(b) ); (2) the term community development financial institution has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 ); (3) the term Indian Tribe has the meaning given the term Indian tribe in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103 ); (4) the term Native American veteran has the meaning given the term in section 3765 of title 38, United States Code; (5) the term Native community development financial institution means an entity— (A) that has been certified as a community development financial institution by the Secretary of the Treasury; (B) that is not less than 50 percent owned or controlled by members of Indian Tribes, Alaska Native communities, or Native Hawaiian communities; and (C) for which not less than 50 percent of the activities of the entity serve Indian Tribes, Alaska Native communities, or Native Hawaiian communities; (6) the term Native Hawaiian has the meaning given the term in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4221 ); (7) the term pilot program means the pilot program carried out under this section; (8) the term priority Tribal land means— (A) any land located within the boundaries of— (i) an Indian reservation, pueblo, or rancheria; or (ii) a former reservation within Oklahoma; (B) any land not located within the boundaries of an Indian reservation, pueblo, or rancheria, the title to which is held— (i) in trust by the United States for the benefit of an Indian Tribe or an individual Indian; (ii) by an Indian Tribe or an individual Indian, subject to restriction against alienation under laws of the United States; or (iii) by a dependent Indian community; (C) any land located within a region established pursuant to section 7(a) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1606(a) ); (D) Hawaiian Home Lands, as defined in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4221 ); or (E) those areas or communities designated by the Assistant Secretary of Indian Affairs of the Department of the Interior that are near, adjacent, or contiguous to reservations where financial assistance and social service programs are provided to Indians because of their status as Indians; and (9) the term qualified non-Native American veteran has the meaning given the term in section 3765 of title 38, United States Code. (b) Establishment The Secretary of Veterans Affairs shall carry out a pilot program to assess the feasibility and advisability of making direct housing loans to Native community development financial institutions to allow such institutions to relend loan amounts to qualified Native American veterans and qualified non-Native American veterans. (c) Application requirements A Native community development financial institution desiring a loan under the pilot program shall demonstrate that the institution— (1) can provide the non-Federal cost share required under paragraph (6); and (2) is able to originate and service loans for single family homes. (d) Lending requirements A Native community development financial institution that receives a loan pursuant to the pilot program shall— (1) use those amounts to make loans to borrowers who— (A) are members of an Indian Tribe, an Alaska Native community, or a Native Hawaiian community; or (B) maintain a household in which not less 1 member is a member of an Indian Tribe, an Alaska Native community, or a Native Hawaiian community; and (2) in making loans under paragraph (1), give priority to borrowers described in that paragraph who are residing on priority Tribal land. (e) Interest rate A loan made to a Native community development financial institution under the pilot program shall bear interest at a rate of 1 percent. (f) Non-Federal cost share (1) In general A Native community development financial institution that receives a loan under the pilot program shall be required to match not less than 20 percent of the amount received. (2) Waiver In the case of a loan for which amounts are used to make loans to borrowers described in subsection (d)(2), the Secretary shall waive the non-Federal cost share requirement described in paragraph (1) with respect to those loan amounts. (g) Repayment A Native community development financial institution shall repay a loan made under the pilot program to the Secretary of Veterans Affairs. (h) Funding Of amounts made available, for the fiscal year following the fiscal year in which this Act is enacted, for the program for direct housing loans for Native American veterans under subchapter V of chapter 37 of title 38, United States Code, the Secretary of Veterans Affairs may use $5,000,000 to carry out the pilot program.