Native American Housing

1. Native American Housing Assistance and Self-Determination Act (NAHASDA) Native American Housing • Goal of simplifying and improving the housing and living conditions in Native American communities

2. Example of The Current System HUD BLOCK GRANT ( Tribe X receives $2 mil/year) • Tribe X Needs • 100 low-income (NAHASDA qualifying) • 100 conventional homes • TOTAL Need: 200 homes • Cost • $150,00/ unit • Complete roughly 10 units per year • 10 years to meet minimal low-income need • No relief for conventional mortgages • SYSTEM FAILURES • HUD delays and bureaucracy • Shortage of conventional mortgage on tribal lands • Limited to no access to infrastructure or conventional housing needs • Constrained unit design • Units central to sewage line not family property • Limited access to home ownership on native lands

3. Consequence of Failures • Generational poverty • 10 years to meet ½ of today’s need • Low-income or middle-income housing needs not met • Banks hesitant to lend on tribal lands • Lack of taxpayer protection and HUD / NAHASDA accountability • Block grant funds unused / accumulate • Empty new units b/c HUD failure to work with tribes • Individuals trapped in system of subsistent wages and dependence NewThinkingNew Goals • GOALS FOR NATIVE AMERICAN HOUSING • Provide every Native American family with access to a home as quickly as possible • Create and promote a prosperous lifestyle on tribal lands • Empower Tribes • Reduce/eliminate governmental inefficiencies • HUD fairness on and off reservation • Promote individual responsibility in the housing process

4. Native American Housing Demonstration Project • GOALS • Reduce/eliminate governmental inefficiencies • HUD fairness on and off reservation • Provide every Native American family with access to a home as quickly as possible • Creating and promoting a prosperous lifestyle on tribal lands • Empowerment of Tribes • Promoting individual responsibility in the housing process • SYSTEM FAILURES • HUD delays and bureaucracy • No access to funds for infrastructure or conventional housing needs • Constrained unit design • Limited access to ownership • Shortage of conventional mortgages on tribal lands • Units central to sewage line not ancestral grounds GOALS FOR TRIBE X in Demonstration Project • Everyone in a house in 24 months • Access to capital for individuals • Access to capital for infrastructure creation • Access to rural sewage needs • Flexibility in construction design • Modernize HUD requirements • Reduction in bureaucratic delay • Protect the taxpayer • Individual homeownership

5. How it Works TRIBAL OPT-IN • Based on a successful Defense Department model • Voluntary • Tribal commitment to long term land leases for individual members • 5 year demonstration project • Tribe determination in construction needs • HUD approval of final construction plan DESIGN PHASE • Outside group assists tribe in assessment of the tribe’s housing needs • Tribe creates a Request For Qualifications (RFQ) to investment groups and developers – choosing one that best fits its needs • Tribe and contractor develops a project design including: • Infrastructure creation (where needed) • Tribal approval on design and location • HUD oversight – approval of the final design plan • Developer or investor group secure capital and subcontractors (where needed) • Begin Construction

6. How it would look SECURING FUNDS TRIBE X • Tribal Needs • 100 low-income (NAHASDA qualifying homes) • 100 conventional homes • TOTAL Need: 200 homes • Cost • $150,000/ unit • Housing Need: $30 million • Infrastructure Need: $10 million • TOTAL Need: $40 million • INVESTOR GROUP A • $40 mil in private investment • $30 mil from third party investors • $10 mil from the bank for conventional mortgages CONSTRUCTION & HOMEOWNERSHIP • Investor Group A works with tribe and individual members to sell or rent to own housing units • Investor Group A entitled to initial investment and predetermined interest • Investor Group A manages and maintains rent to own properties for the tribe (if the tribe desires) • Tribe agrees to be accountable for delinquent payments • Tribe takes possession of foreclosures to sell to another tribal member - tribe itself pays mortgage until transferred

7. Demonstration Project SOLUTION CURRENT FAILURE • Tribe and outside groups design plans based on individual need • HUD in an advisory oversight position – reducing the approvals needed to complete a project • Build to local not federal housing standards • HUD delays and bureaucracy • Minimal access to infrastructure or conventional housing needs • Capital provided by private investors • Construct low-income and conventional all in the same project • Tribe may include infrastructure creation in housing plan • Constrained in unit design and location • Tribes, not HUD create development plan • Cluster home construction only if it meets the tribal needs and are sold to individuals • Created access to infrastructure and sewage • Increase accountability by increasing desirability • Limited access to ownership and capital • Investors secure mortgages for the completed units • Rent to own and direct ownership available right away • Tribe agrees to provide long term leases to tribal members • Can provide every family with a home in 24 months

8. Native American Demonstration Project QUESTIONS?