USC Subchapter V

in effect

38 U.S.C. § 3761 Direct housing loans to Native American veterans; program authority

(a) The Secretary shall make direct housing loans to Native American veterans. The purpose of such loans is to permit such veterans to purchase, construct, or improve dwellings on trust land. The Secretary shall make such loans in accordance with the provisions of this subchapter. (b) The Secretary shall, to the extent practicable, make direct housing loans to Native American veterans who are located in a variety of geographic areas and in areas experiencing a variety of economic circumstances. (c) The Secretary shall prescribe such regulations as may be necessary to carry out this subchapter.

38 U.S.C. § 3762 Direct housing loans to Native American veterans; program administration

(a) The Secretary may make a direct housing loan to a Native American veteran under this subchapter if the Secretary ensures the following:(1) That each Native American veteran to whom the Secretary makes a direct housing loan under this subchapter—(A) 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 (B) will purchase, construct, or improve (as the case may be) a dwelling on the lot using the proceeds of the loan. (2) That each such Native American veteran will convey to the Secretary by an appropriate instrument the interest referred to in paragraph (1)(A) as security for a direct housing loan under this subchapter. (3) That the Secretary, including the Secretary’s employees or agents, may enter upon the trust land for the purposes of carrying out such actions as the Secretary determines are necessary, including—(A) to evaluate the advisability of the loan; (B) to monitor any purchase, construction, or improvements carried out using the proceeds of the loan; and (C) to manage any servicing or post-foreclosure activities, including acquisition, property inspections, and property management. (4) That there are established standards and procedures that apply to the foreclosure of the interest conveyed by a Native American veteran pursuant to paragraph (2), including—(A) procedures for foreclosing the interest; and (B) procedures for the resale of the lot or dwelling (or both) purchased, constructed, or improved using the proceeds of the loan. (5) That the loan is made in a responsible and prudent manner, subject to standards and procedures as are necessary for the reasonable protection of the financial interests of the United States. (b)(1) To carry out the purpose of subsection (a), the Secretary may—(A) enter into a memorandum of understanding with a tribal organization, other entity, or individual; (B) rely on agreements or determinations of other Federal agencies to guarantee, insure, or make loans on trust land; and (C) enter into other agreements or take such other actions as the Secretary determines necessary. (2) If the Secretary determines that the requirements under subsection (a) are not being enforced by a tribal organization, other entity, or individual that is a party to any memorandum of understanding, agreement, or determination described in paragraph (1), 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 organization, other entity, or individual (as the case may be). (c)(1) 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. (2) 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) 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 purposes:(1) To refinance an existing loan made under this section, if the loan—(A) meets the requirements set forth in subparagraphs (B), (C), and (E) of paragraph (1) of section 3710(e) of this title; (B) will bear an interest rate at least one percentage point less than the interest rate borne by the loan being refinanced; and (C) complies with paragraphs (2) and (3) of section 3710(e) of this title, except that for the purposes of this subsection the reference to subsection (a)(8) of section 3710 of this title in such paragraphs (2) 11 So in original. Reference in section 3710(e)(2) of this title is to “clause (8) of subsection (a)” of section 3710. and (3) shall be deemed to be a reference to this subsection. (2) To refinance an existing mortgage loan not made under this section on a dwelling owned and occupied by the veteran as the veteran’s home, if all of the following requirements are met:(A) The loan will be secured by the same dwelling as was the loan being refinanced. (B) The loan will provide the veteran with a net tangible benefit. (C) The nature and condition of the property is such as to be suitable for dwelling purposes. (D) The amount of the loan does not exceed either of the following:(i) 100 percent of the reasonable value of the dwelling, with such reasonable value determined under the procedures established by the Secretary under subsection (d)(2). (ii) An amount equal to the sum of the balance of the loan being refinanced and such closing costs (including any discount points) as may be authorized by the Secretary to be included in the loan. (E) Notwithstanding subparagraph (D), if a loan is made for both the purpose of this paragraph and to make energy efficiency improvements, the loan must not exceed either of the following:(i) 100 percent of the reasonable value of the dwelling as improved for energy efficiency, with such reasonable value determined under the procedures established by the Secretary under subsection (d)(2). (ii) The amount referred to under subparagraph (D)(ii), plus the applicable amount specified under section 3710(d)(2) of this title. (F) The loan meets all other requirements the Secretary may establish under this subchapter. (G) The existing mortgage being refinanced is a first lien on the property and secured of record. (3) To refinance an existing mortgage loan to repair, alter, or improve a dwelling owned by the veteran and occupied by the veteran as the veteran’s home, if all of the following requirements are met:(A) The loan will be secured by the same dwelling as was the loan being refinanced. (B) The nature and condition of the property is such as to be suitable for dwelling purposes, and the repair, alteration, or improvement substantially protects or improves the basic livability or utility of such property. (C) The amount of the loan, including the costs of repairs, alterations, and improvements, does not exceed either of the following:(i) 100 percent of the reasonable value of the dwelling as repaired, altered, or improved, with such reasonable value determined under the procedures established by the Secretary under subsection (d)(2). (ii) An amount equal to the sum of—(I) the balance of the loan being refinanced; (II) the actual cost of repairs, alterations, or improvements; and (III) such closing costs (including any discount points) as may be authorized by the Secretary to be included in the loan. (D) The loan meets all other requirements the Secretary may establish under this subchapter. (E) The existing mortgage loan being refinanced is a first lien on the property and secured of record. (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 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 this subchapter and in assisting such organizations and veterans with respect to such housing benefits. (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 with respect to such benefits. (F) Outstationing loan guarantee specialists in tribal facilities on a part-time basis if requested by the tribal government. (G) Pursuant to subsection (g)(4), assisting Native American veterans in qualifying for mortgage financing by—(i) partnering with 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, and post-purchase education; and (ii) providing other technical assistance as needed. (H) 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 3762A of this title. (j) The Secretary shall include as part of the annual benefits report of the Veterans Benefits Administration information concerning the cost and number of loans provided under this subchapter for the fiscal year covered by the report. (k) The Secretary shall assign a sufficient number of personnel of the Department dedicated to carrying out the authority of the Secretary under this subchapter, including construction and valuation specialists to assist with issues unique to new construction and renovations on trust land.

38 U.S.C. § 3762A Native community development financial institution relending program

(a) 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 veterans, subject to the requirements of this section. (b) Standards.—(1) The Secretary shall establish standards to be used in evaluating whether to make a loan to a Native community development financial institution under this section. (2) In establishing standards under paragraph (1), the Secretary shall ensure that a Native community development financial institution—(A) is able to originate and service loans for single-family homes; (B) is able to operate the relending program in a manner consistent with the mission of the Department to serve veterans; and (C) uses loan amounts received under this section only for the purpose of relending, as described in subsection (c), to Native American veterans. (c) Relending Requirements.—(1) 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 land. (2) A loan to a Native American veteran made by a Native community development financial institution under paragraph (1) shall—(A) be limited either to the purpose of purchase, construction, or improvement of a dwelling located on trust land or to the refinance of an existing mortgage loan for a dwelling on trust land, consistent with the requirements of section 3762(h) of this title; and (B) comply with such terms and conditions as the Secretary determines are necessary to protect against predatory lending, including the interest rate charged on a loan to a Native American veteran. (d) Repayment.—A loan made to a Native community development financial institution under this section shall—(1) be payable to the Secretary upon such terms and conditions as are prescribed in regulations pursuant to this subchapter; and (2) bear interest at a rate of one percent. (e) Oversight.—Subject to notice and opportunity for a hearing, whenever the Secretary finds with respect to loans made under subsection (a) or (c) that any Native community development financial institution has failed to maintain adequate loan accounting records, to demonstrate proper ability to service loans adequately, or to exercise proper credit judgment, 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 Government, the Secretary may take such actions as the Secretary determines necessary to protect veterans or the Government, such as requiring immediate repayment of any loans made under subsection (a) and the assignment to the Secretary of loans made under subsection (c). (f) Sunset.—The Secretary may not make a loan under this section after September 30, 2027.

38 U.S.C. § 3763 Native American Veteran Housing Loan Program Account

(a) There is hereby established in the Treasury of the United States an account known as the “Native American Veteran Housing Loan Program Account” (hereinafter in this subchapter referred to as the “Account”). (b) The Account shall be available to the Secretary to carry out all operations relating to the making of direct housing loans to Native American veterans under this subchapter, including any administrative expenses relating to the making of such loans. Amounts in the Account shall be available without fiscal year limitation. (c) Of amounts available in the Account, the Secretary may use for loans made under section 3762A of this title—(1) in fiscal year 2025, not more than $5,000,000; and (2) in any fiscal year after fiscal year 2025, an amount determined necessary by the Secretary to meet the demand for such loans.

38 U.S.C. § 3764 Qualified non-Native American veterans

(a) Treatment of Non-Native American Veterans.—Subject to the succeeding provisions of this section, for purposes of this subchapter—(1) a qualified non-Native American veteran is deemed to be a Native American veteran; and (2) for purposes of applicability to a non-Native American veteran, any reference in this subchapter to the jurisdiction of a tribal organization over a Native American veteran is deemed to be a reference to jurisdiction of a tribal organization over the Native American spouse of the qualified non-Native American veteran. (b) Use of Loan.—In making direct loans under this subchapter to a qualified non-Native American veteran by reason of eligibility under subsection (a), the Secretary shall ensure that the tribal organization permits, and the qualified non-Native American veteran actually holds, possesses, or purchases, using the proceeds of the loan, jointly with the Native American spouse of the qualified non-Native American veteran, a meaningful interest in the lot, dwelling, or both, that is located on trust land. (c) Restrictions Imposed by Tribal Organizations.—Nothing in subsection (b) shall be construed as precluding a tribal organization from imposing reasonable restrictions on the right of the qualified non-Native American veteran to convey, assign, or otherwise dispose of such interest in the lot or dwelling, or both, if such restrictions are designed to ensure the continuation in trust status of the lot or dwelling, or both. Such requirements may include the termination of the interest of the qualified non-Native American veteran in the lot or dwelling, or both, upon the dissolution of the marriage of the qualified non-Native American veteran to the Native American spouse.

38 U.S.C. § 3765 Definitions

For the purposes of this subchapter— (1) The term “trust land” means any land that—(A) is held in trust by the United States for Native Americans; (B) is subject to restrictions on alienation imposed by the United States on Indian lands (including native Hawaiian homelands); (C) is located in the State of Alaska within a region established under section 7(a) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(a)); (D) is on any island in the Pacific Ocean if such land is, by cultural tradition, communally-owned land, as determined by the Secretary; (E) is defined by the Secretary of the Interior and recognized by the United States as land over which an Indian Tribe has governmental dominion; or (F) is on any land that the Secretary determines is provided to Native American veterans because of their status as Native Americans. (2) The term “Native American veteran” means any veteran who is a Native American. (3) The term “Native American” means—(A) an Indian, as defined in section 4(d) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(d)); 11 See References in Text note below. (B) a native Hawaiian, as that term is defined in section 201(a)(7) of the Hawaiian Homes Commission Act, 1920 (Public Law 67–34; 42 Stat. 108); (C) an Alaska Native, within the meaning provided for the term “Native” in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b)); and (D) a Pacific Islander, within the meaning of the Native American Programs Act of 1974 (42 U.S.C. 2991 et seq.). (4) The term “tribal organization” shall have the meaning given such term in section 4(l) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(l)) 1 and shall include the Department of Hawaiian Homelands, in the case of native Hawaiians, and such other organizations as the Secretary may prescribe. (5) The term “qualified non-Native American veteran” means a veteran who—(A) is the spouse of a Native American, but (B) is not a Native American. (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 “Indian Tribe” means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (8) 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 51 percent owned or controlled by Native Americans; and (C) for which not less than 51 percent of the activities of the entity serve Native Americans. (9) The term “net tangible benefit” shall have such meaning as the Secretary determines appropriate, but shall include the refinance of an interim construction loan. (10) 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 land, including pre-development activities related to utilities, identifying appropriate residential construction services, and obtaining lease clearances and title status reports from the applicable tribal organization or the Bureau of Indian Affairs. (11) 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).