,,ii #aahth ,,congress #ast ,session ,s4 #ahe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ca1 #bjbc ,mr4 ,rounds 7for himself and ,mr4 ,tester7 introduced the following bill2 which was read twice and referred to the ,committee on ,veterans' ,affairs ,a ,,bill ,to amend title #ch1 ,united ,states ,code1 to improve the program for direct housing loans made to ,native ,american veterans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,native ,american ,direct ,loan ,improvement ,act of #bjbc4 #b4 ,improvements to program for direct housing loans made to ,native ,american veterans by the ,secretary of ,veterans ,affairs 7a7 ,general authorities and requirements 7#a7 ,direct housing loans to ,native ,american veterans ,section #cgfb7;a7 of title #ch1 ,united ,states ,code1 is amended to read as follows3 7a7 ,the ,secretary may make a direct housing loan to a ,native ,american veteran under this subchapter if the ,secretary ensures the following3 7#a7 ,that each ,native ,american veteran to whom the ,secretary makes a direct housing loan under this subchapter-- 7,a7 holds1 possesses1 or purchases using the proceeds of the loan a meaningful interest in a lot or dwelling 7or both7 that is located on trust land2 and 7,b7 will purchase1 construct1 or improve 7as the case may be7 a dwelling on the lot using the proceeds of the loan4 7#b7 ,that each such ,native ,american veteran will convey to the ,secretary by an appropriate instrument the interest referred to in paragraph 7#a77;,a7 as security for a direct housing loan under this subchapter4 7#c7 ,that the ,secretary1 including the ,secretary's employees or agents1 may enter upon the trust land for the purposes of carrying out such actions as the ,secretary determines are necessary1 including-- 7,a7 to evaluate the advisability of the loan2 7,b7 to monitor any purchase1 construction1 or improvements carried out using the proceeds of the loan2 and 7,c7 to manage any servicing or post-foreclosure activities1 including acquisition1 property inspections1 and property management4 7#d7 ,that there are established standards and procedures that apply to the foreclosure of the interest conveyed by a ,native ,american veteran pursuant to paragraph 7#b71 including-- 7,a7 procedures for foreclosing the interest2 and 7,b7 procedures for the resale of the lot or dwelling 7or both7 purchased1 constructed1 or improved using the proceeds of the loan4 7#e7 ,that the loan is made in a responsible and prudent manner1 subject to standards and procedures as are necessary for the reasonable protection of the financial interests of the ,united ,states4 4 7#b7 ,memorandums of understanding1 agreements1 and determinations ,section #cgfb7;b7 of such title is amended to read as follows3 7b7 7#a7 ,to carry out the purpose of subsection 7a71 the ,secretary may-- 7,a7 enter into a memorandum of understanding with a tribal organization1 other entity1 or individual2 7,b7 rely on agreements or determinations of other ,federal agencies to guarantee1 insure1 or make loans on trust land2 and 7,c7 enter into other agreements or take such other actions as the ,secretary determines necessary4 7#b7 ,if the ,secretary determines that the requirements under subsection 7a7 are not being enforced by a tribal organization1 other entity1 or individual that is a party to any memorandum of understanding1 agreement1 or determination described in paragraph 7#a71 the ,secretary may cease making new direct housing loans to ,native ,american veterans under this subchapter within the area of the authority of the tribal organization1 other entity1 or individual 7as the case may be74 4 7b7 ,direct loans to ,native ,american veterans ,to refinance existing mortgage loans ,section #cgfb7;h7 of such title is amended to read as follows3 7h7 ,the ,secretary may make direct loans to ,native ,american veterans in order to enable such veterans to refinance existing mortgage loans for any of the following purposes3 7#a7 ,to refinance an existing loan made under this section1 if the loan-- 7,a7 meets the requirements set forth in subparagraphs 7,b71 7,c71 and 7,e7 of paragraph 7#a7 of section #cgaj7;e7 of this title2 7,b7 will bear an interest rate at least one percentage point less than the interest rate borne by the loan being refinanced2 and 7,c7 complies with paragraphs 7#b7 and 7#c7 of section #cgaj7;e7 of this title1 except that for the purposes of this subsection the reference to subsection 7a77#h7 of section #cgaj of this title in such paragraphs 7#b7 and 7#c7 shall be deemed to be a reference to this subsection4 7#b7 ,to refinance an existing mortgage loan not made under this section on a dwelling owned and occupied by the veteran as the veteran's home1 if all of the following requirements are met3 7,a7 ,the loan will be secured by the same dwelling as was the loan being refinanced4 7,b7 ,the loan will provide the veteran with a net tangible benefit4 7,c7 ,the nature and condition of the property is such as to be suitable for dwelling purposes4 7,d7 ,the amount of the loan does not exceed either of the following3 7i7 #ajj percent of the reasonable value of the dwelling1 with such reasonable value determined under the procedures established by the ,secretary under subsection 7d77#b74 7ii7 ,an amount equal to the sum of the balance of the loan being refinanced and such closing costs 7including any discount points7 as may be authorized by the ,secretary to be included in the loan4 7,e7 ,notwithstanding subparagraph 7,d71 if a loan is made for both the purpose of this paragraph and to make energy efficiency improvements1 the loan must not exceed either of the following3 7i7 #ajj percent of the reasonable value of the dwelling as improved for energy efficiency1 with such reasonable value determined under the procedures established by the ,secretary under subsection 7d77#b74 7ii7 ,the amount referred to under subparagraph 7,d77ii71 plus the applicable amount specified under section #cgaj7;d77#b7 of this title4 7,f7 ,the loan meets all other requirements the ,secretary may establish under this subchapter4 7,g7 ,the existing mortgage being refinanced is a first lien on the property and secured of record4 7#c7 ,to refinance an existing mortgage loan to repair1 alter1 or improve a dwelling owned by the veteran and occupied by the veteran as the veteran's home1 if all of the following requirements are met3 7,a7 ,the loan will be secured by the same dwelling as was the loan being refinanced4 7,b7 ,the nature and condition of the property is such as to be suitable for dwelling purposes1 and the repair1 alteration1 or improvement substantially protects or improves the basic livability or utility of such property4 7,c7 ,the amount of the loan1 including the costs of repairs1 alterations1 and improvements1 does not exceed either of the following3 7i7 #ajj percent of the reasonable value of the dwelling as repaired1 altered1 or improved1 with such reasonable value determined under the procedures established by the ,secretary under subsection 7d77#b74 7ii7 ,an amount equal to the sum of-- 7,i7 the balance of the loan being refinanced2 7,,ii7 the actual cost of repairs1 alterations1 or improvements2 and 7,,iii7 such closing costs 7including any discount points7 as may be authorized by the ,secretary to be included in the loan4 7,d7 ,the loan meets all other requirements the ,secretary may establish under this subchapter4 7,e7 ,the existing mortgage loan being refinanced is a first lien on the property and secured of record4 4 7c7 ,expansion of outreach program on availability of direct housing loans for ,native ,american veterans ,section #cgfb7;i77#b7 of such title is amended by adding at the end the following new subparagraph3 7,g7 ,pursuant to subsection 7g77#d71 assisting ,native ,american veterans in qualifying for mortgage financing by-- 7i7 partnering with local service providers1 such as tribal organizations1 tribally designated housing entities1 ,native community development financial institutions1 and nonprofit organizations1 for conducting outreach1 homebuyer education1 housing counseling1 and post-purchase education2 and 7ii7 providing other technical assistance as needed4 7,h7 ,attending conferences and conventions conducted by the network of ,native community development financial institutions and other ,native ,american homeownership organizations to provide information and training to ,native community development financial institutions about the availability of the relending program under section #cgfb;,a of this title4 4 7d7 ,adequate personnel ,section #cgfb of such title is amended by adding at the end the following new subsection3 7k7 ,the ,secretary shall assign a sufficient number of personnel of the ,department dedicated to carrying out the authority of the ,secretary under this subchapter1 including construction and valuation specialists to assist with issues unique to new construction and renovations on trust land4 4 7e7 ,definitions ,section #cgfe of such title is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by amending subparagraph 7,c7 to read as follows3 7,c7 is located in the ,state of ,alaska within a region established under section #g7;a7 of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afjf7;a772 2 7,b7 in subparagraph 7,d71 by striking the period at the end and inserting a semicolon2 and 7,c7 by adding at the end the following new subparagraphs3 7,e7 is defined by the ,secretary of the ,interior and recognized by the ,united ,states as land over which an ,indian ,tribe has governmental dominion2 or 7,f7 is on any land that the ,secretary determines is provided to ,native ,american veterans because of their status as ,native ,americans4 2 and 7#b7 by adding at the end the following new paragraphs3 7#f7 ,the term community development financial institution has the meaning given that term in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#g7 ,the term ,indian ,tribe means any ,indian tribe1 band1 nation1 or other organized group or community1 including any ,alaska ,native village or regional or village corporation as defined in or established pursuant to the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afja et seq471 which is recognized as eligible for the special programs and services provided by the ,united ,states to ,indians because of their status as ,indians4 7#h7 ,the term ,native community development financial institution means any entity-- 7,a7 that has been certified as a community development financial institution by the ,secretary of the ,treasury2 7,b7 that is not less than #ea percent owned or controlled by ,native ,americans2 and 7,c7 for which not less than #ea percent of the activities of the entity serve ,native ,americans4 7#i7 ,the term net tangible benefit shall have such meaning as the ,secretary determines appropriate1 but shall include the refinance of an interim construction loan4 7#aj7 ,the term other technical assistance means services to assist a ,native ,american veteran to navigate the steps necessary for securing a mortgage loan on trust land1 including pre-development activities related to utilities1 identifying appropriate residential construction services1 and obtaining lease clearances and title status reports from the applicable tribal organization or the ,bureau of ,indian ,affairs4 7#aa7 ,the term tribally designated housing entity has the meaning given that term in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 4 7f7 ,interest rate reduction financing loan ,section #cgbi7;b77#d77;,f7 of such title is amended by striking #cgfb7;h7 and inserting #cgfb7;h77#a74 7g7 ,regulations ,section #cgfa of such title is amended by adding at the end the following new subsection3 7c7 ,the ,secretary shall prescribe such regulations as may be necessary to carry out this subchapter4 4 #c4 ,native community development financial institution relending program 7a7 ,in general ,subchapter ,v of chapter #cg of title #ch1 ,united ,states ,code1 is amended by inserting after section #cgfb the following new section3 #cgfb;,a4 ,native community development financial institution relending program 7a7 ,purpose ,the ,secretary may make a loan to a ,native community development financial institution for the purpose of allowing the institution to relend loan amounts to qualified ,native ,american veterans1 subject to the requirements of this section4 7b7 ,standards 7#a7 ,in general ,the ,secretary shall establish standards to be used in evaluating whether to make a loan to a ,native community development financial institution under this section4 7#b7 ,requirements ,in establishing standards under paragraph 7#a71 the ,secretary shall ensure that a ,native community development financial institution-- 7,a7 is able to originate and service loans for single-family homes2 7,b7 is able to operate the relending program in a manner consistent with the mission of the ,department to serve veterans2 and 7,c7 uses loan amounts received under this section only for the purpose of relending1 as described in subsection 7c71 to ,native ,american veterans4 7c7 ,relending requirements 7#a7 ,in general ,a ,native community development financial institution that receives a loan under this section shall use the loan amounts to make loans to ,native ,american veterans residing on trust land4 7#b7 ,requirements ,a loan to a ,native ,american veteran made by a ,native community development financial institution under paragraph 7#a7 shall-- 7,a7 be limited either to the purpose of purchase1 construction1 or improvement of a dwelling located on trust land or to the refinance of an existing mortgage loan for a dwelling on trust land1 consistent with the requirements of section #cgfb7;h7 of this title2 and 7,b7 comply with such terms and conditions as the ,secretary determines are necessary to protect against predatory lending1 including the interest rate charged on a loan to a ,native ,american veteran4 7d7 ,repayment ,a loan made to a ,native community development financial institution under this section shall-- 7#a7 be payable to the ,secretary upon such terms and conditions as are prescribed in regulations pursuant to this subchapter2 and 7#b7 bear interest at a rate of one percent4 7e7 ,oversight ,subject to notice and opportunity for a hearing1 whenever the ,secretary finds with respect to loans made under subsection 7a7 or 7c7 that any ,native community development financial institution has failed to maintain adequate loan accounting records1 to demonstrate proper ability to service loans adequately1 or to exercise proper credit judgment1 or that such ,native community development financial institution has willfully or negligently engaged in practices otherwise detrimental to the interest of veterans or of the ,government1 the ,secretary may take such actions as the ,secretary determines necessary to protect veterans or the ,government1 such as requiring immediate repayment of any loans made under subsection 7a7 and the assignment to the ,secretary of loans made under subsection 7c74 4 7b7 ,clerical amendment ,the table of sections at the beginning of chapter #cg of such title is amended by inserting after the item relating to section #cgfb the following new item3 #cgfb;,a4 ,native community development financial institution relending program44 7c7 ,native ,american veteran housing loan program account ,section #cgfc of such title is amended by adding at the end the following new subsection3 7c7 ,of amounts available in the ,account1 the ,secretary may use for loans made under section #cgfb;,a of this title-- 7#a7 in fiscal year #bjbd1 not more than #e1jjj1jjj2 and 7#b7 in any fiscal year after fiscal year #bjbd1 an amount as determined necessary by the ,secretary to meet the demand for such loans4 4