Comment on FR Doc # E8-22481

Submitter's Representative's Relevant Background: Former state legislator and minority leaders in both the Hawaii State Senate and House of Representatives during the 1980s and l990s (10 years). Deputy Under Secretary and Deputy Assistant Secretary for USDA [Small Community and Rural Development; Natural Resources] 1991-1993. HUD Assistant Secretary for Public and Indian Housing, 20015-2005. VP Bank of America, Hawaii FSB for CRA Compliance and product development (1993-1998); SVP Federal Home Loan Bank of Chicago, community investment officer and affordable housing portfolio manager (1999-2001). SVP Dutko Worldwide in charge of community development and real estate practice (2005-present) Comments: My comments are based on years (see background above) of experience in the community development field and understanding of particular community development needs in Hawaii. The views expressed herein are my own. "Targeted Populations" should be defined to include residents or enterprises, present and/or projected, of lands held in trust or under management and the jurisdiction of the State of Hawaii's Department of Hawaiian Home Lands (DHHL). The New Markets Tax Credt (NMTC) program has had no impact on one of the communities (Native Hawaiian) in the United States with the greatest need of investment incentives for infrastructure, community facilities, for purchase housing, and commercial activities on lands set aside for its use (i.e., lands under the jurisdiction of DHHL). Under current rules and regulations Community Development Entity applicants for NMTC allocations or businesses seeking lender and investors involving NMTC, must to try to meet critieria that are locked into a concept of "low-income neighborhood" that is based on a notion of a single or contiguous census geography. In many cases relative to lands in trust for native peoples in the United States and in particular in Hawaii, such lands are not contiguous and are separated by properties and census tracts that do not fit the traditional definition of "low- income". In the case of Hawaii this is exacerbated by DHHL lands being spread out over a number of islands. Furthermore, the island of Oahu with the highest concentration of the State of Hawaii's total population, finds DHHL lands embedded in or adjacent to non-low-income neighborhoods. Hence, projects that are focused on serving DHHL lands as a whole or on an island or regional basis in the State, are faced with a bias that has not been overcome among administrators of the NMTC program that make NMTC allocations to CDEs, and the lenders, investors and CDEs with NMTC allocations that could, but have not, made NMTC investments in DHHL linked projects. For example, an enterprise that wishes to be considered as an eligible qualified active low-income business that has as its business and mission the providing of an infrastructure service (e.g., phone or broad band) for DHHL homeowners and businesses located on DHHL lands, must somehow make the case that it fits the standard view of a low-income community, as one that is located in a discrete geography when in fact DHHL properties are spread out over a non-contiguous geography as heretofore explained. The result has been the dismal lack of investments under the NMTC program for any proposals related to DHHL lands. In addition, with all the studies conducted by federal, state, local and private sector agencies documenting the social and economic disparity that marks the majority of native hawaiians when compared to other groups in the United States, a strong policy case could be made that Native Hawaiians as a group, or at least those residing on DHHL lands should be considered by definition a targeted population based on a lack of access to credit. Limiting the "lack of access to credit" critieria to just those in the Go-Zone represents a lack of initiative on the part of policy makers to understand the credit needs of various groups and regions in the United States that are not necessarily related to credit worthiness. To summarize: These comments argue for "targeted populations" to be defined to include residents and enterprises, present and projected, of lands under jurisdiction of the State of Hawaii Department of Hawaiian Home Lands. In addition, as a group, beneficiaries of the DHHL should also be included in the definition of a targeted population based on lack of access to financing.