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

PUBLIC AND INDIAN HOUSING, OFFICE OF NATIVE AMERICAN PROGRAMS, OFFICE OF LOAN GUARANTEE, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

Authorization

Native American Housing Assistance and Self- Determination Act (NAHASDA) of 1996, Public Law 104-330, 25 U.S.C. 401- 4212.

 

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 that it will, if approved, make the pledge of IHBG funds required by section 602(a)(2) of NAHASDA.

 

Application and Award Process

Preapplication Coordination

Applicant submits a request for a Preliminary Letter of Acceptance (PLA) to HUD. The PLA is HUD's concurrence to proceed with the Title VI application. The PLA is not an approval of the Title VI application or a commitment to approve or guarantee the Title VI loan. This program is excluded from coverage under E.O. 12372.

Application Procedure

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. 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

None.

 

Range of Approval/Disapproval Time

Appeals

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

Borrowers may be required to pledge security in addition to IHBG funds.

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 approval.

 

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.

Audits

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

Title VI is a permanent program under Title VI of the NAHASDA.

 

Financial Information

Account Identification

86-0313-0-1-604.

Obligations

(Loans guaranteed/commitment level) FY 02 $51,792,000; FY 03 est $16,658,000; and FY 04 est $8,049,000.

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, 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

Paul S. Jurkowski, Director of the Office of Loan Guarantee, National Office of Native American Programs, 1999 Broadway, Denver, CO 80202. Telephone: 1.800.561.5913.

Web Site Address

http://www.codetalk.fed.us/olg_titleVIindex.html

 

Examples of Funded Projects

Development of single family and multiple-family housing projects or subdivisions; integration of infrastructure resources on tribal lands; purchase and renovation of a mobile home lot.

 

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.