The Lender shall
submit in duplicate a Title VI (Federal Guarantees for Financing for Tribal Housing
Activities) application package to:
U.S. Department of Housing and Urban
Development Office of Native American Programs Office of Loan Guarantee, Title
VI 1999 Broadway, Suite 3390 Denver, CO 80202
Each package shall contain
the information listed below. Applications will be reviewed by the Office of Loan
Guarantee (OLG) to determine if the proposed project is in compliance with Title
VI of NAHASDA and the
implementing regulations. The lender will be notified in writing of any deficiencies.
Title VI documents have been drafted for the guarantee of notes. If the obligation
is not a note (e.g., a bond), please contact the OLG so that any necessary revisions
to the documents can be made. All submissions should have a Table of Contents
which identifies where each of the required components are located.
Project Description/Amendment to the Indian Housing Plan (IHP)- The application
must identify each of the activities to be carried out with the guaranteed funds
and a description of how each activity qualifies as an affordable housing activity
as defined in Section 202 of the NAHASDA.
The description must include the location of the housing activities, the land
status (trust or fee land), and the number and income eligibility of families
(see below) to be served:
- Number of tribal members served
of families served
- Eligibility of families (income categories):
- Number of families at or below the low-income limit
- Number of families
between 80-100% of the median income limits who fall within the 10% of IHBG limitation
- Number of families between 80-100% of the median income limits who will
exceed the 10% IHBG limitation**
- Number of families above the 100% limitation**.
HUD approval is required if the borrower wants to use the equivalent of more than
10% of its IHBG for families whose income falls within 80 to 100% of the median
income or if the borrower wants to provide housing for families with incomes over
100% of median income. The application must include the request for HUD approval
and a copy of the borrower's documentation. See PIH
Notice 99-6 for more information on this subject.
If an IHP,
previously determined to be in compliance, does not include the proposed Title
VI project, the borrower must amend its IHP to include the Title VI project and
the area ONAP must issue a determination that the amended IHP is in compliance.
Accordingly, the borrower must identify Goals and Objectives and Activities Plan
(for the 5-Year Plan and 1-Year Plan), Financial Resources (1-Year Plan), Performance
Objectives and any other relevant sections of the IHP in connection with the use
of the guaranteed loan funds. Where applicable, a copy of a revised IHP Table
2, Financial Resources, form HUD-52735, reflecting the inclusion of a Title VI
loan guarantee activity must be included in the Title VI application package.
This must be accomplished before HUD will issue the Firm Commitment.
the borrower is a TDHE, a tribal certification that acknowledges the change in
an IHP must be submitted unless the initial IHP certification provided by the
Indian tribe allows for IHP amendments to be submitted without further tribal
Model activities must be approved by the Deputy Assistant
Secretary and a copy of the approval letter included in the submission package.
No funds may be committed to a project (other than for certain nonphysical activities)
before the completion of the environmental review and, where the borrower assumes
responsibility for the environmental review, before approval of the request for
release of funds and related certification required by section 105 of NAHASDA.
The borrower must certify that:
possesses the legal authority to pledge IHBG funds as security for the repayment
of the Title VI obligation and guarantee that it will, if approved, make the pledge
of grants required by section 602(a)(2) of NAHASDA;
- It has made efforts to obtain financing for the activities described
in the application without use of the Federal guarantee; and the borrower cannot
complete such financing consistent with the timely execution of the program plans
without the Federal guarantee.
- It possesses the legal authority to borrow
or issue obligations and to use the guaranteed funds in accordance with the requirements
Its governing body has duly adopted or passed as an official act a resolution,
motion, or similar official action that:
- Identifies the official representative
of the borrower, and directs and authorizes that person to provide such additional
information as may be required;
- Authorizes such official representative
to issue the obligation or to execute the loan or other documents, as applicable;
- It will comply with the requirements described in 24 CFR Part 1000,
Subpart A and other applicable regulations.
If a TDHE
is the IHBG recipient for more than one Indian tribe, the TDHE may borrow on behalf
of each tribe that provides tribal approval for the obligation. Each tribe for
whom the TDHE is the borrower must provide the tribal resolution listed in C.,
sign the contract with HUD listed in E, and provide a legal opinion listed in
F. Each tribe must also authorize the amendment to its IHP. The maximum amount
of the obligation is based on the current Federal fiscal year IHBG allocation
amount for each tribe approving the borrowing.
C. Tribal Resolution
- A copy of the tribal resolution authorizing the issuance of the note or obligation
by the Indian tribe or the TDHE on behalf of the Indian tribe. The resolution
must identify the official representative of the borrower, direct and authorize
that person to provide required information and authorize such official representative
to issue the obligation or to execute the loan or other documents, as applicable.
Agreement Between HUD and Lender - Title VI - Federal Guarantees for Financing
of Tribal Housing Activities (where the tribe is the borrower or the TDHE is the
borrower) - An Agreement between HUD and the lender wherein HUD acknowledges
its responsibility under this agreement to facilitate payments to the lender upon
notification of default under the loan, note or other legally binding documents.
Choose the appropriate Agreement.
E. Contract Between HUD and Borrower
- Title VI - Federal Guarantees for Financing for Tribal Housing Activities (where
the tribe is the borrower or the TDHE is the borrower) - Contract between
HUD and the borrower wherein the borrower pledges Indian Housing Block Grant funds
and other types of security (such as program income generated by the Title VI
project, sale or lease of Title VI project, etc.) towards the repayment of the
Title VI obligation. Choose the appropriate Contract.
F. Model Legal
Opinions - A Legal Opinion is required by the Contract Between HUD and
the Borrower. Three model legal opinions are included in this Application Package.
Choose the appropriate one. One shall be completed if the Tribe is the borrower.
In a case where the TDHE is the borrower, two legal opinions are required, one
from each legal counsel representing the TDHE and the Tribe.
Loan Documents - The application must include a copy of the loan documents,
including the note and agreement between the borrower and the lender. The application
must also include a schedule for the repayment of the note that identifies the
sources of repayment. The loan documents must also include the Custodial Account,
Letter of Agreement, attachments to the contract between HUD and the borrower,
and the Letter of Agreement for the Custodial Investment Agreement, attachment
2 to the Contract between HUD and the Borrower, as applicable.