This program authorizes HUD to guarantee financial obligations issued by Indian tribes or tribally designated housing entities (TDHEs) to pay for eligible affordable housing activities under the Indian Housing Block Grant program (IHBG).
Because of the legal status of Indian tribes as sovereign nations and the unique status of tribal lands, Indian tribes and their housing entities may have difficulty obtaining loans in private markets. This program provides a way of obtaining credit by pledging future block grant funds for repayment.
Type of Assistance:
Assistance is in the form of loan guarantees backed by the full faith and credit of the U.S. Government.
Lenders approved by HUD, Federal Housing Administration (FHA), Department of Agriculture, or any lender supervised, approved, regulated, or insured by any agency of the Federal Government may write loans to be guaranteed under this program for affordable housing if other financing is not available.
Indian tribes and TDHEs may use this program for affordable housing if other financing is not available.
Eligible activities are affordable housing activities under the IHBG. They include modernization or operating assistance for housing previously developed using HUD resources; acquisition, new construction, or rehabilitation of additional units (which may include site development, development of utilities, and services); housing-related services such as housing counseling, self-sufficiency services, energy auditing, and establishment of resident organizations; housing management services; crime prevention and safety activities; rental assistance; model activities; and administrative expenses.
Applications for the guarantees will be made through the private sector lender. That lender will apply for a guarantee to the National Office of Native American Programs (ONAP) in Denver, Colorado. TDHE applications must have tribal approval.
This new program will operate as a demonstration program in fiscal year 1998, and is funded at $5 million, which will subsidize a total principal amount of $217 million.
The Federal Guarantees for Financing for Tribal Housing Activities program is authorized by Title VI of the Native American Housing Assistance and Self-Determination Act of 1996 (P. L. 104-330) (25 U.S.C. 4191 et seq.) It is administered by the National ONAP Office of Loan Guarantees.
For More Information:
Contact National ONAP, Office of Loan Guarantees, at (303) 675-1600 or AONAP Offices in Albuquerque, Anchorage, Chicago, Denver, Oklahoma, Phoenix, and Seattle. The ONAP Web site, Codetalk, provides detailed information about NAHASDA and related changes. A listing of AONAP numbers and addresses is also available at this site.