WASHINGTON — A bill to reauthorize funding for Native Hawaiian housing suffered an embarrassing defeat yesterday at the hands of Republicans.

The House rejected the bill on a 262-162 vote — 28 votes short of the two-thirds majority needed for passage under a special procedure for uncontroversial legislation.

"I'm very pleased that we got a big, strong majority," said Rep. Neil Abercrombie, D-Hawai'i, the bill's sponsor. "But what happened was we ran into ... a particular segment of the Republican Party who is determined to demonize Hawaiians."

The bill is not dead and will likely pass when it is reintroduced under rules requiring only a majority for approval, Abercrombie said.

House Republican Leader John Boehner of Ohio urged his party to vote against the measure.

Benefits for Native Hawaiians are unconstitutional because the Rice v. Cayetano Supreme Court decision declared they could not have different statewide voting rights than other Hawai'i citizens, Boehner said in a news release.

Boehner said the court suggested that special legal privileges for Native Hawaiians are unconstitutional.

If approved, the legislation would ensure that the Department of Hawaiian Home Lands would get $8 million to $9 million annually that would go toward roads, water lines, sewer systems and other infrastructure needed for housing projects developed for those with 50 percent Hawaiian blood or more.

The Native Hawaiian housing program's authorization expired in 2005, but funding has been kept alive through spending bills. Hawaiian Home Lands Chairman Micah Kane said if the money does not come through, it could affect his agency's ability to provide homes for an estimated 80 families each year.

MEASURE WILL BE BACK

Abercrombie said the bill would return to the House floor as soon as possible under the regular order of business, which would require only a simple majority for passage.

"That's already been decided," he said. "We will bring it up under the regular order, and I'm confident we will win."

Abercrombie said he thought he had an understanding with Boehner to keep the bill from becoming a partisan issue.

But as Abercrombie was on the floor profusely thanking Republicans for not taking a partisan stance on the bill, the House Republican leadership office was sending out an e-mail to its members telling them to oppose the bill as being unconstitutional.

"I find it a bit ironic that I'm up there thanking him for his courtesy while his press office is out kicking us," Abercrombie said. "It's no fun, I assure you, but we're not little kids around here. These things happen."

The Republican e-mail said the bill was unconstitutional because it would guarantee special federally backed housing benefits for Native Hawaiians.

BLOCK GRANTS AT ISSUE

The bill would reauthorize two Native Hawaiian housing block grant programs administered by the Housing and Urban Development Department.

Under one program, Native Hawaiians receive block grants for housing services, the same as American Indian tribes.

A separate program — the Native Hawaiian Housing Block Grant — provides money to Hawaiian Home Lands for housing services to low-income Native Hawaiian families living on Hawaiian home lands.

Kane, the home lands chairman, said about 20 percent of the money his agency spends on infrastructure for its housing developments comes from the funding source.

Kane said he is holding out hope that the five-year reauthorization could still happen this year through a Senate bill. Meanwhile, he said, he is optimistic that the $7 million to $8 million will still be approved in the House budget as has occurred in each of the last two years.

BILL OFFERED CHANGES

Hawaiian Home Lands is developing projects in East Kapolei, Waimanalo, Anahola on Kaua'i and Kealakehe in Kona.

"The potential (this bill) could have on the program is significant," Kane said, noting that the agency would try to make up the money through generating its own revenues through commercial leases and other means.

The bill also includes changes to the current law.

One change in the loan guarantee program for single-family homes on Native Hawaiian lands would allow the refinancing of loans and eliminate a provision that home buyers must first be turned down for a private loan before applying for a federally-guaranteed loan.

Another change would allow the Hawaiian Home Lands to issue bonds for large-scale housing and infrastructure development using the HUD funding as collateral.

COURT RULING CITED

The Republican alert said the bill would give Native Hawaiians an arrangement like that between the federal government and Indian tribes.

The Republican alert stated that the Supreme Court has ruled that Native Hawaiians are not comparable to American Indian tribes and "suggested that special legal privileges for Native Hawaiians are rightly unconstitutional."

Meanwhile, on the floor, Abercrombie apparently was unaware of the GOP missive.

"I want to reiterate my thanks to Mr. Boehner for his open-mindedness and his attitude of being willing to listen on issues that might otherwise have been easily misunderstood," Abercrombie said.

Abercrombie said later he regretted the comment but did not want to take it back.

"I never regret thanking people for extending courtesies," he said.

Abercrombie said the statements in the Republican e-mail were things that came up in the debates over the Native Hawaiian bill that would extend a federal policy of self-governance and self determination to Native Hawaiians.

"This is about home ownership," he said. "This isn't about ideology."

H. William Burgess of the group Aloha for All, which has mounted legal challenges against the Hawaiians-only nature of the Department of Hawaiian Home Lands and the state Office of Hawaiian Affairs, said the Republicans are right in opposing the funding.

"It's pretty clear that the way to go is to eliminate race restrictions," he said, adding that both agencies should open up their services for all Hawai'i residents. "A lot of people need help with home ownership."

Reach Dennis Camire at dcamire@gns.gannett.com.