Title VI Federal Guarantees for Financing Tribal Housing Activities (14.869)

Program

14.869 Title VI Federal Guarantees for Financing Tribal Housing Activities

Federal Agency

Agency: Department of Housing and Urban Development
Office: Office Of Public And Indian Housing

Authorization

Native American Housing Assistance and Self-Determination Reauthorization Act (NAHASDA) of 2008, Public Law 110-411.

Program Number

14.869

Last Known Status

Active

Objectives

To assist an Indian tribe or Tribally Designated Housing Entity (TDHE) to obtain financing for affordable housing activities under Title II of NAHASDA where an obligation cannot be completed without such guarantee.

Types of Assistance

GUARANTEED/INSURED LOANS

Uses and Use Restrictions

Limited to the eligible affordable housing activities listed in Section 202 of the NAHASDA to include Indian Housing Assistance, Development, Housing Services, Housing Management Services, Crime Prevention and Safety Activities, and Model Activities approved by the Secretary.

Eligibility Requirements

Applicant Eligibility

The applicant must be a Federally recognized Indian tribe or TDHE that is either a beneficiary or recipient of Indian Housing Block Grants (IHBG) funds.

Beneficiary Eligibility

Indian tribes and their members are the beneficiaries. A TDHE acts on behalf of a tribe, as authorized by Tribal and TDHE resolutions.

Credentials/Documentation

The applicant must provide the lender the documentation detailed in the "Title VI Application Process," including the certifications required under 24 CFR Section 1000.424(d) that the applicant possesses the legal authority to pledge, and if approved, the applicant will make the pledge of IHBG funds required by section 602(a)(2) of NAHASDA. OMB Circular No. A-87 applies to this program.

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Eligible lenders are detailed in the statute. The lender assembles the Title VI application package and submits it to HUD. HUD will review the application for compliance with Title VI of NAHASDA and the implementing regulations.

Award Procedure

HUD issues a Letter of Firm Commitment to the lender when HUD approves the Title VI application and the mortgage meets the Title VI Program underwriting criteria. The lender then closes the loan and submits the closing package to HUD for review. Following a successful review, HUD issues a Certificate of Loan Guarantee to the lender.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

From 15 to 30 days. The Title VI regulation at 24 CFR 1000.430(a) states that HUD will make every effort to approve an application within 30 days of the receipt of a completed application, and if HUD is unable to do so, will notify the lender (the applicant via the lender) within the 30 day time frame of the need for additional time to process the application and/or if additional information is required.

Appeals

From 15 to 30 days. HUD will notify the lender in writing that the application has been reduced or disapproved and the specific reasons for the reduction or the disapproval. The lender may submit additional documentation to reverse the HUD decision.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

Matching Requirements: Percent: 5.%. Borrowers may be required to pledge security in addition to IHBG funds to secure the remaining 5 percent of the loan balance that is not secured by the 95 percent federal loan guarantee.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

The term of the loan may exceed 20 years, as approved by HUD. The lender and applicant shall determine the terms of the repayment for each project, subject to HUD's approval. See the following for information on how assistance is awarded/released: This is a loan guarantee program. Therefore assistance is given in the form of a guarantee. No funds are awarded or released unless there is a default on a guaranteed loan.

Post Assistance Requirements

Reports

The lender will provide HUD a quarterly report on the guaranteed loan, including the status of the guaranteed loan, the current principal balance, and the amount collected during the quarter just ended. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Participating lenders and closed loan files are reviewed to assure compliance with the program's requirements.

Records

Copies of loan files are maintained by HUD. The originating lender must maintain a copy of the loan file for 2 years after loan is guaranteed. The servicing lender must maintain a loan file for the line of the loan plus 3 years.

Program Accomplishments

Fiscal Year 2008: As of September 30, 2008, cumulative loan guarantees of approximately 122.8 million have been issued, and 2,096 affordable housing units or the supporting infrastructure has been financed with title VI funding. In fiscal year 2008, 8 loans totaling $13.5 million were guaranteed. Fiscal Year 2009: In fiscal year 2009, the Department anticipates that 10 loans totaling $14 million will be guaranteed. Fiscal Year 2010: In fiscal year 2010, the Department anticipates that 10 loans totaling $14 million will be guaranteed.

Financial Information

Account Identification

86-0313-0-1-604.

Obligations

(Guaranteed/Insured Loans) FY 08 $13,351,000; FY 09 est $17,000,000; FY 10 est $18,000,000

Range and Average of Financial Assistance

A borrower's guaranteed obligations may not exceed an amount equal to the borrower's IHBG, less the amount needed to operate and maintain current assisted stock (CAS), times five (IHBG - CAS X 5 = maximum guaranteed amount).

Regulations, Guidelines and Literature

24 CFR Part 1000, subpart E; "The Title VI Application Process" and promotional literature are available from HUD's National Program Office of Native American Programs, Office of Loan Guarantee; and the Title VI web page (see the address below).

Related Programs

14.865 Public and Indian Housing_Indian Loan Guarantee Program

Information Contacts

Regional or Local Office

None. (see Headquarters Office below).

Headquarters Office

Thomas C. Wright, 451 7th Street, S.W., Room 5156, Washington, District of Columbia 20410 Email: Thomas.C.Wright@hud.gov Phone: (202) 402-4978.

Web Site Address

http://www.hud.gov/offices/pih/ih/homeownership/titlevi/

Examples of Funded Projects

Fiscal Year 2008: Development of single-family and multi-family housing projects or subdivisions; integration of infrastructure resources on tribal lands; purchase and renovation of a mobile home lot. Fiscal Year 2009: No current data available. Fiscal Year 2010: No current data available.

Criteria for Selecting Proposals

Title VI and Section 202 of NAHASDA; criteria is detailed in the "The Title VI Application Process" available from HUD's National Program Office, Office of Loan Guarantee, and on the Title VI web site (http://www.hud.gov/offices/pih/ih/homeownership/titlevi/).