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                                                       Calendar No. 374
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-221

======================================================================



 
REAUTHORIZING PROVISIONS IN THE NATIVE AMERICAN HOUSING ASSISTANCE AND 
 SELF-DETERMINATION ACT OF 1996 RELATING TO NATIVE HAWAIIAN LOW-INCOME 
    HOUSING AND FEDERAL LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING

                                _______
                                

   March 16 (legislative day, March 15), 2006.--Ordered to be printed

                                _______
                                

    Mr. McCain, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 598]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 598) to reauthorize the provisions in the Native 
American Housing Assistance and Self-Determination Act of 1996 
relating to Native Hawaiian low-income housing and Federal loan 
guarantees for Native Hawaiian housing, reports favorably 
thereon and recommends that the bill do pass.

                                Purpose

    The purpose of S. 598 is to reauthorize provisions in the 
Native American Housing Assistance and Self-Determination Act 
of 1996 relating to Native Hawaiian low-income housing and 
Federal loan guarantees for Native Hawaiian housing.\1\
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    \1\ S. 598 would amend 25 U.S.C. 4243, which authorizes 
appropriations for the Native Hawaiian housing assistance provisions 
enacted in 2000 (see 25 U.S.C. 4221, et seq.) for fiscal years 2001 
through 2005, by changing the authorization period to ``fiscal years 
2006 through 2009''.
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                               Background

    In 1921, after receiving testimony from the Department of 
the Interior comparing the relationship between the United 
States and Native Hawaiians to the trust relationship between 
the United States and Indian tribes, Congress enacted the 
Hawaiian Homes Commission Act of 1920. This Act set aside 
approximately 203,000 acres of lands for the benefit of Native 
Hawaiians. As a condition to admission into the Union in 
1959,2 the State of Hawaii was required to adopt the 
Hawaiian Home Commission Act, 1920,3 as a part of 
its constitution and to administer these lands for the benefit 
of Native Hawaiians. Approximately 19,000 Native Hawaiians live 
on Hawaiian Home Lands,4 with an additional 18,384 
having been placed on the Department of Hawaiian Home Lands 
waiting list.5
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    \2\ See section 4 of the Hawaii Admission Act, Pub. L. No. 86-3, 73 
Stat. 4 (March 18, 1959).
    \3\ Act of July 9, 1921 (42 Stat. 108).
    \4\ The Native Hawaiian and Other Pacific Islander Population: 
2000, United States Census Bureau, p. 10 (December 2001).
    \5\ Department of Hawaiian Home Lands, Waiting List as of December, 
2004.
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    According to the 2000 Census, there are 401,000 Native 
Hawaiians with approximately 240,000 residing in the State of 
Hawaii.6 Without adjusting for Hawaii's higher cost 
of living, the median family income of Native Hawaiians living 
in Hawaii was $49,214 in 1999.7 This amount supports 
larger than average families--the average Native Hawaiian 
household consists of 3.4 individuals, compared to 2.9 
individuals statewide.8 The per capita income of 
Native Hawaiians living in Hawaii is about $14,199 compared to 
the statewide per capita income of $21,525.9 The 
Hawaii State Department of Health found that 19.1% of Native 
Hawaiians were living in poverty in 2000.10
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    \6\ Building with Aloha: Strategies for Increasing Native Hawaiian 
Homeownership, prepared for Pacific American Foundation (April 1, 
2003), at p. 11.
    \7\ Income and Poverty Among Native Hawaiians, Summary of Ka 
Huaka'i Findings, Kamehaha Schools (September 2005).
    \8\ Id.
    \9\ Id.
    \10\ Building with Aloha: Strategies for Increasing Native Hawaiian 
Homeownership, at p. 17, citing Office of Health Status Monitoring, 
Hawaii State Department of Health, 2000.
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    Generally, the programs reauthorized by this bill provide 
block grants to the Department of Hawaiian Home Lands for 
affordable housing activities for low-income Native Hawaiian 
families who are eligible to reside on Hawaiian Home 
Lands.11 Affordable housing activities under the 
block grants include assisting Native Hawaiians in the 
acquisition, construction, or reconstruction of affordable 
housing, site improvement, financing, housing counseling, and 
other services related to assisting owners and tenants 
participating or seeking to participate in other assisted 
housing activities.12
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    \11\ See 25 U.S.C. 4222(a) and 4228(a)(2)(A) and (D).
    \12\ See 25 U.S.C. 4229.
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                      Section-by-Section Analysis


Section 1. Reauthorization

    Section 824 of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4243) is amended by 
striking ``fiscal years'' and all that follows and inserting 
``fiscal years 2006 through 2009''.

                          Legislative History

    S. 598 was introduced on March 10, 2005, by Senator Inouye, 
for himself, and referred to the Committee on Indian Affairs. 
Senator Akaka became a cosponsor on July 11, 2005. On June 29, 
2005, the Committee on Indian Affairs ordered the bill to be 
favorably reported without amendment.
    A House companion measure to S. 598, H.R. 2912, was 
introduced on June 15, 2005, by Representative Case, for 
himself and Representative Abercrombie, and referred to the 
Committee on Financial Services. On July 29, 2005, the bill was 
referred to the Subcommittee on Housing and Community 
Opportunity.

            Committee Recommendations and Tabulation of Vote

    On June 29, 2005, in an open business meeting, the 
Committee by voice vote approved the bill without amendment and 
ordered it to be favorably reported to the Senate.

                   Cost and Budgetary Considerations

    The cost estimate of the Congressional Budget Office on S. 
598 is set forth below:

S. 598--A bill to reauthorize provisions in the Native American Housing 
        Assistance and Self-Determination Act of 1996 relating to 
        Native Hawaiian low-income housing and Federal loan guarantees 
        for Native Hawaiian housing

    Summary: S. 598 would reauthorize the appropriation of such 
sums as necessary through 2009 for Native American Housing 
Block Grants, Community Development Hawaiian Block Grants, 
Indian Housing Loan Guarantees, and Native Hawaiian Housing 
Loan Guarantees as provided under the Native American Housing 
Assistance and Self-Determination Act of 1996 (NAHASDA). Under 
current law, these programs are authorized through 2005.
    In 2005, about $637 million was appropriated for these 
block grant and loan guarantee programs under NAHASDA. Assuming 
continued appropriations at that level and adjusting for 
anticipated inflation, CBO estimates that implementing S. 598 
would cost about $2 billion over the 2006-2010 period.
    Enacting this bill would not affect direct spending or 
receipts. S. 598 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 598 is shown in the following table. 
Estimated outlays are based on historical patterns for the 
block grant and loan guarantee programs. The costs of this 
legislation fall within budget functions 600 (income security) 
and 370 (commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2005    2006    2007    2008    2009    2010
----------------------------------------------------------------------------------------------------------------
                                       SPENDING SUBJECT TO APPROPRIATIONS

Spending for NAHASDA Programs Under Current Law:
    Budget Authority a..........................................     637       0       0       0       0       0
    Estimated Outlays...........................................     660     627     417     152      64      31
Proposed Changes:
    Native American Housing Block Grants:.......................
        Estimated Authorization Level...........................       0     634     647     660     673       0
        Estimated Outlays.......................................       0      13     216     487     585     615
Community Development Hawaiian Block Grants:
        Estimated Authorization Level...........................       0       9       9       9      10       0
        Estimated Outlays.......................................       0       9       9       9      10       0
Indian Housing Loan Guarantees:
        Estimated Authorization Level...........................       0       5       5       5       5       0
        Estimated Outlays.......................................       0       5       5       5       5       0
Native Hawaiian Housing Loan Guarantees:
        Estimated Authorization Level...........................       0       1       1       1       1       0
        Estimated Outlays.......................................       0       1       1       1       1       0
Total Proposed Changes:
        Estimated Authorization Level...........................       0     650     663     676     689       0
        Estimated Outlays.......................................       0      28     231     503     601     615
Total Spending for NAHASDA Programs Under S. 598:
    Estimated Authorization Level...............................     637     650     663     676     689       0
    Estimated Outlays...........................................     660     655     648     654     665     646
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Notes--Details may not sum to totals because of rounding.
NAHASDA = Native American Housing Assistance and Self-Determination Act of 1996.
a The 2005 level is the amount appropriated for that year for all NAHASDA programs that would be reauthorized
  under S. 598. Those programs consist of Native American Housing Block Grants, Community Development Hawaiian
  Block Grants, Indian Housing Loan Guarantees, and Native Hawaiian Housing Loan Guarantees.

    Intergovernmental and private-sector impact: S. 598 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would benefit the state of Hawaii by 
reauthorizing a grant program for low-income housing.
    Estimate prepared by: Federal Costs: Susanne Mehlman and 
Jimin Chung. Impact on State, Local, and Tribal Governments: 
Sarah Puro. Impact on the Private Sector: Craig Cammarata.
    Estimate approved by: Robert A. Sunshine, Assistance 
Director for Budget Analysis.

                        Executive Communications

    The Committee has not received any executive communications 
on S. 598.

                    Regulatory and Paperwork Impact

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact that would be incurred in 
carrying out the bill. The Committee believes that S. 598 will 
have a minimal impact on regulatory or paperwork requirements.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee finds the 
provisions of S. 598 change the existing law in the following 
(existing law proposed to be omitted is enclosed in black 
brackets and new text is in italic):

Section 824/25 U.S.C. 4243

    There are authorized to be appropriated to the Department 
of Housing and Urban Development for grants under this 
subchapter such sums as may be necessary for each of [fiscal 
years 2001, 2002, 2003, 2004, and 2005] fiscal years 2006 
through 2009.