
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-103 Section 402(b),]
[CITE: 38USC3762]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
    SUBCHAPTER V--NATIVE AMERICAN VETERAN HOUSING LOAN PILOT PROGRAM
 
Sec. 3762. Direct housing loans to Native American veterans

    (a) The Secretary may make a direct housing loan to a Native 
American veteran if--
        (1) the Secretary has entered into a memorandum of understanding 
    with respect to such loans with the tribal organization that has 
    jurisdiction over the veteran; and
        (2) the memorandum is in effect when the loan is made.

    (b)(1) Subject to paragraph (2), the Secretary shall ensure that 
each memorandum of understanding that the Secretary enters into with a 
tribal organization shall provide for the following:
        (A) That each Native American veteran who is under the 
    jurisdiction of the tribal organization and to whom the Secretary 
    makes a direct loan under this subchapter--
            (i) holds, possesses, or purchases using the proceeds of the 
        loan a meaningful interest in a lot or dwelling (or both) that 
        is located on trust land; and
            (ii) will purchase, construct, or improve (as the case may 
        be) a dwelling on the lot using the proceeds of the loan.

        (B) That each such Native American veteran will convey to the 
    Secretary by an appropriate instrument the interest referred to in 
    subparagraph (A) as security for a direct housing loan under this 
    subchapter.
        (C) That the tribal organization and each such Native American 
    veteran will permit the Secretary to enter upon the trust land of 
    that organization or veteran for the purposes of carrying out such 
    actions as the Secretary determines are necessary--
            (i) to evaluate the advisability of the loan; and
            (ii) to monitor any purchase, construction, or improvements 
        carried out using the proceeds of the loan.

        (D) That the tribal organization has established standards and 
    procedures that apply to the foreclosure of the interest conveyed by 
    a Native American veteran pursuant to subparagraph (B), including--
            (i) procedures for foreclosing the interest; and
            (ii) procedures for the resale of the lot or the dwelling 
        (or both) purchased, constructed, or improved using the proceeds 
        of the loan.

        (E) That the tribal organization agrees to such other terms and 
    conditions with respect to the making of direct loans to Native 
    American veterans under the jurisdiction of the tribal organization 
    as the Secretary may require in order to ensure that the pilot 
    program established under this subchapter is implemented in a 
    responsible and prudent manner.

    (2) The Secretary may not enter into a memorandum of understanding 
with a tribal organization under this subsection unless the Secretary 
determines that the memorandum provides for such standards and 
procedures as are necessary for the reasonable protection of the 
financial interests of the United States.
    (c)(1)(A) Except as provided in subparagraph (B), the principal 
amount of any direct housing loan made to a Native American under this 
section may not exceed $80,000.
    (B) The Secretary may make loans exceeding the amount specified in 
subparagraph (A) in a geographic area if the Secretary determines that 
housing costs in the area are significantly higher than average housing 
costs nationwide. The amount of such increase shall be the amount that 
the Secretary determines is necessary in order to carry out the pilot 
program under this subchapter in a manner that demonstrates the 
advisability of making direct housing loans to Native American veterans 
who are located in a variety of geographic areas and in geographic areas 
experiencing a variety of economic conditions.
    (2) Loans made under this section shall bear interest at a rate 
determined by the Secretary, which rate may not exceed the appropriate 
rate authorized for guaranteed loans under section 3703(c)(1) or section 
3712(f) of this title, and shall be subject to such requirements or 
limitations prescribed for loans guaranteed under this title as the 
Secretary may prescribe.
    (3) Notwithstanding section 3704(a) of this title, the Secretary 
shall establish minimum requirements for planning, construction, 
improvement, and general acceptability relating to any direct loan made 
under this section.
    (d)(1) The Secretary shall establish credit underwriting standards 
to be used in evaluating loans made under this subchapter. In 
establishing such standards, the Secretary shall take into account the 
purpose of this program to make available housing to Native American 
veterans living on trust lands.
    (2) The Secretary shall determine the reasonable value of the 
interest in property that will serve as security for a loan made under 
this section and shall establish procedures for appraisals upon which 
the Secretary may base such determinations. The procedures shall 
incorporate generally the relevant requirements of section 3731 of this 
title, unless the Secretary determines that such requirements are 
impracticable to implement in a geographic area, on particular trust 
lands, or under circumstances specified by the Secretary.
    (e) Loans made under this section shall be repaid in monthly 
installments.
    (f) In connection with any loan under this section, the Secretary 
may make advances in cash to provide for repairs, alterations, and 
improvements and to meet incidental expenses of the loan transaction. 
The Secretary shall determine the amount of any expenses incident to the 
origination of loans made under this section, which expenses, or a 
reasonable flat allowance in lieu thereof, shall be paid by the veteran 
in addition to the loan closing costs.
    (g) Without regard to any provision of this chapter (other than a 
provision of this section), the Secretary may--
        (1) take any action that the Secretary determines to be 
    necessary with respect to the custody, management, protection, and 
    realization or sale of investments under this section;
        (2) determine any necessary expenses and expenditures and the 
    manner in which such expenses and expenditures shall be incurred, 
    allowed, and paid;
        (3) make such rules, regulations, and orders as the Secretary 
    considers necessary for carrying out the Secretary's functions under 
    this section; and
        (4) in a manner consistent with the provisions of this chapter 
    and with the Secretary's functions under this subchapter, employ, 
    utilize, and compensate any persons, organizations, or departments 
    or agencies (including departments and agencies of the United 
    States) designated by the Secretary to carry out such functions.

    (h)(1) The Secretary may make direct loans to Native American 
veterans in order to enable such veterans to refinance existing loans 
made under this section.
    (2)(A) The Secretary may not make a loan under this subsection 
unless the loan meets the requirements set forth in subparagraphs (B), 
(C), and (E) of paragraph (1) of section 3710(e) of this title.
    (B) The Secretary may not make a loan under this subsection unless 
the loan will bear an interest rate at least one percentage point less 
than the interest rate borne by the loan being refinanced.
    (C) Paragraphs (2) and (3) of such section 3710(e) shall apply to 
any loan made under this subsection, except that for the purposes of 
this subsection the reference to subsection (a)(8) of section 3710 of 
this title in such paragraphs (2) and (3) shall be deemed to be a 
reference to this subsection.
    (i)(1) The Secretary shall, in consultation with tribal 
organizations (including the National Congress of American Indians and 
the National American Indian Housing Council), carry out an outreach 
program to inform and educate Native American veterans of the pilot 
program provided for under this subchapter and the availability of 
direct housing loans for Native American veterans who live on trust 
lands.
    (2) Activities under the outreach program shall include the 
following:
        (A) Attending conferences and conventions conducted by the 
    National Congress of American Indians in order to work with the 
    National Congress in providing information and training to tribal 
    organizations and Native American veterans regarding the 
    availability of housing benefits under the pilot program and in 
    assisting such organizations and veterans in participating in the 
    pilot program.
        (B) Attending conferences and conventions conducted by the 
    National American Indian Housing Council in order to work with the 
    Housing Council in providing information and training to tribal 
    organizations and tribal housing entities regarding the availability 
    of such benefits.
        (C) Attending conferences and conventions conducted by the 
    Department of Hawaiian Homelands in order to work with the 
    Department of Hawaiian Homelands in providing information and 
    training to tribal housing entities in Hawaii regarding the 
    availability of such benefits.
        (D) Producing and disseminating information to tribal 
    governments, tribal veterans service organizations, and tribal 
    organizations regarding the availability of such benefits.
        (E) Assisting tribal organizations and Native American veterans 
    in participating in the pilot program.
        (F) Outstationing loan guarantee specialists in tribal 
    facilities on a part-time basis if requested by the tribal 
    government.

    (j) Not later than February 1 of each year through 2002, the 
Secretary shall transmit to the Committees on Veterans' Affairs of the 
Senate and House of Representatives a report relating to the 
implementation of the pilot program under this subchapter during the 
fiscal year preceding the date of the report. Each such report shall 
include the following:
        (1) The Secretary's exercise during such fiscal year of the 
    authority provided under subsection (c)(1)(B) to make loans 
    exceeding the maximum loan amount.
        (2) The appraisals performed for the Secretary during such 
    fiscal year under the authority of subsection (d)(2), including a 
    description of--
            (A) the manner in which such appraisals were performed;
            (B) the qualifications of the appraisers who performed such 
        appraisals; and
            (C) the actions taken by the Secretary with respect to such 
        appraisals to protect the interests of veterans and the United 
        States.

        (3) The outreach activities undertaken under subsection (i) 
    during such fiscal year, including--
            (A) a description of such activities on a region-by-region 
        basis; and
            (B) an assessment of the effectiveness of such activities in 
        encouraging the participation of Native American veterans in the 
        pilot program.

        (4) The pool of Native American veterans who are eligible for 
    participation in the pilot program, including--
            (A) a description and analysis of the pool, including income 
        demographics;
            (B) a description and assessment of the impediments, if any, 
        to full participation in the pilot program of the Native 
        American veterans in the pool; and
            (C) the impact of low-cost housing programs operated by the 
        Department of Housing and Urban Development and other Federal or 
        State agencies on the demand for direct loans under this 
        section.

        (5) The Secretary's recommendations, if any, for additional 
    legislation regarding the pilot program.

(Added Pub. L. 102-547, Sec. 8(a), Oct. 28, 1992, 106 Stat. 3637; 
amended Pub. L. 104-275, title II, Sec. 202(a), Oct. 9, 1996, 110 Stat. 
3330; Pub. L. 105-114, title II, Sec. 201(b), (c), Nov. 21, 1997, 111 
Stat. 2282, 2283.)


                               Amendments

    1997--Subsec. (i). Pub. L. 105-114, Sec. 201(b), designated existing 
provisions as par. (1), inserted ``, in consultation with tribal 
organizations (including the National Congress of American Indians and 
the National American Indian Housing Council),'' after ``the Secretary 
shall'', struck out ``tribal organizations and'' after ``educate'', and 
added par. (2).
    Subsec. (j). Pub. L. 105-114, Sec. 201(c), added subsec. (j).
    1996--Subsecs. (h), (i). Pub. L. 104-275 added subsec. (h) and 
redesignated former subsec. (h) as (i).

                  Section Referred to in Other Sections

    This section is referred to in section 3729 of this title.
