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June 30, 2016

Hearing on Access to Rural Housing Assistance for Native Americans On June 22, the Senate Committee on Indian Affairs held a hearing to examine the accessibility of U.S. Department of Agriculture’s Rural Development (RD) programs for Native American Communities. The witnesses for this panel included Lillian Salerno, the Deputy Under Secretary for the Rural Development Mission Area, Lafe Haugen of the Northern Cheyenne Tribal Housing Authority, and Tim Schuerch, President/CEO of the Maniilaq Association in Kotzebue, AK. In his opening remarks, Committee Chairman John Barrasso (R-WY) noted that that since 2009, RD has made more than $137.5 billion in rural housing service investments, but only $1.3 billion from that period went to providing rural housing in tribal areas. He continued that despite its $212 billion loan portfolio, the USDA has only invested $3.1 billion with tribes. Ranking Member Jon Tester (D-MT) said in his opening remarks that RD should consider more outreach efforts to native communities so that families are more aware of what services are available to them. Mr. Haugen elaborated on the housing efforts directed at tribal areas and Native populations. He began by highlighting the benefits provided under the Native American Housing Assistance Self-Determination Act (NAHASDA) and that the funds provided by this bill help tribes leverage with entities such as USDA. But still there are many challenges for accessing RD programs for tribal communities – for example, no Section 515 projects has been financed on trust lands over the last four years, and only one was approved in the last six years. Mr. Haugen cited a recent study that shows an unmet need of over 200,000 houses and growing on trust lands. He suggested that removing burdensome barriers and application processes would allow more tribal communities to access RD programs, and that more interagency efforts should be promoted with HUD. The dire need for housing was also touched upon by Senator Heidi Heitkamp (D-ND). She lamented the dire state of housing on some reservations and asked the panelists why such a small percentage of the commitment for RD has been deployed to Indian Country directly. Mr. Haugen responded that outreach continues to be a large problem, and that RD may not be fully executing grants approved by Congress to tribal communities. There was general agreement among the panelists and present Senators that the housing issues facing tribal communities are staggering and will continue to grow. There are also significant homelessness, domestic abuse and substance abuse issues to overcome. Although Section 521 Rental Assistance was not specifically mentioned, a consensus was reached that the widely used RD programs must be made more accessible for tribal areas. To read witness testimony and listen to an audio recording of this hearing, please click here Pay for Success Legislation Passes in House On June 22, the Social Impact Partnerships to Pay for Results Act (H.R.5170) was passed in the House of Representatives under a voice vote. H.R.5170 would require the Treasury Department to publish a request for proposals from states or local governments for social impact partnership projects which produce one or more measurable, clearly defined outcomes that result in social benefit. The Treasury Department would be required to:
  • Decide whether to enter into an agreement for such a social impact partnership project within six months after receiving an application; and
  • Reserve certain funds to assist state or local governments with up to 50% of the costs of developing feasibility studies to apply for social impact partnership funding.
The bill requires an independent evaluation to determine whether the state or local government project has met an outcome specified in the agreement in order for such governments to receive outcome payments. The bill would also establish the Federal Interagency Council on Social Impact Partnerships to coordinate the efforts of social impact partnership projects as well as a Commission on Social Impact Partnerships to assist in reviewing funding applications. H.R.5170 comes at a time when more attention is being payed to social impact bonds and pay-for-success structure to achieve social benefits. The pay for success model leverages philanthropic and private dollars to fund preventive services, which are provided by nonprofits and other non-governmental entities up front, with the government paying only when services generate measurable results that meet pre-specified targets. Now that the bill has passed the House, it will head to the Senate where it will be referred to the Senate Finance Committee. NAHMA will continue to monitor the progress of H.R.5170 and will alert members of any additional progress. Stop Dangerous Sanctuary Cities Act On June 27, Senator Pat Toomey (R-PA) introduced the Stop Dangerous Sanctuary Cities Act (S.3100), a bill which aims to beef up homeland security efforts in small, local communities. However, a provision in this bill would prevent Community Development Block Grant (CDBG) funds and other federal funds from being provided to communities that are so called “sanctuary cities.” These sanctuary cities are described as localities with ordinances or policies that prevent the sharing of information on the immigration or citizenship status of individuals. A major concern with this provision is that it effectively punishes all low-income families in the area by denying their community the use of CDBG funds. The CDBG provides indispensable resources to local economies that help them maintain neighborhoods and to develop projects that are vital to the well-being of their inhabitants. S. 3100 would undermine local efforts to improve the safety and quality of life of residents.

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