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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

14.869: Title VI Federal Guarantees for Financing Tribal Housing Activities

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.

PROGRAM AND AWARD FINANCIAL AND INFORMATION CONTACTS

ELIGIBILITY REQUIREMENTS FINANCIAL AND ADMINISTRATIVE INFO.

APPLICATION AND AWARD PROCESS INFORMATION CONTACTS

RELATED PROGRAMS ASSISTANCE CONSIDERATIONS

PROGRAM ACCOMPLISHMENTS POST ASSISTANCE REQUIREMENTS

14.869 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: The Borrower must be a Federally recognized Indian tribe or TDHE that is an approved recipient for Indian Housing Block Grants (IHBG) funds.

Beneficiary Eligibility: Indian tribes and their members are the ultimate beneficiaries. TDHEs act on behalf of tribes, as authorized by Tribal resolutions.

Credentials/Documentation: Borrower must provide to the lender information contained in the application kit, the certifications required under 24 CFR Section 1000.424, and be willing and able to pledged IHBG and other grant funds as security.

14.869 APPLICATION AND AWARD PROCESS:

Preapplication Coordination: Borrower shall request HUD's preliminary acceptance that the project is an eligible project. Once acceptance, the borrower chooses a lender. This program is excluded from coverage under E.O. 12372.

Application Procedure: The Lender shall compile the components listed in the application package and the certifications of 24 CFR 1000.424 and submit to HUD. HUD shall review for eligibility with the NAHASDA statute and regulations and for compliance with the tribal Indian Housing Plan.

Award Procedure: Once the application is approved by HUD, a firm commitment is issued and the package is returned to the lender for closing. The lender then returns the package to HUD and a Certificate of Loan Guarantee is issued, provided there have been no adverse changes in the borrower's financial (or other) status.

Deadlines: None.

Range of Approval/Disapproval Time: Regulations at 24 CFR state that HUD will make every effort to approve a guarantee within 30 days and if unable to do so, will notify the applicant within the 30 day time frame of the need for additional time and/or information.

Appeals: Borrowers whose obligations have been disapproved may appeal the disapproval and correct the concern or submit the documentation necessary to overturn the determination.

Renewals: Not applicable.

Criteria for Selecting Proposals: Project must be eligible and accepted by HUD prior to submission of the application to the Lender; Lender shall review for underwriting criteria such assets, ability and willingness to repay; HUD required certifications.

Examples of Funded Projects: Development of multiple-family housing projects; integration of infrastructure resources on reservations lands; large scale developments such as subdivisions; increase access to private capital through the issuance of bonds; and mortgage assistance to Native American families.

Range and Average of Financial Assistance: Obligations held by a Borrower may not exceed an amount equal to five times the Indian Housing Block Grant funds(with consideration required to operate and maintain units under the 1937 Act), pursuant to Title III of the NAHASDA.

14.869 RELATED PROGRAMS:

14.865 Public and Indian Housing: Indian Loan Guarantee Program.

14.869 PROGRAM ACCOMPLISHMENTS:

Title VI is a permanent program under Title VI of the NAHASDA; however, language in the annual appropriations designated fiscal year 1999 as demonstration years.

14.869 FINANCIAL AND ADMINISTRATIVE INFO:

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

Type of Assistance: Guaranteed/Insured Loans.

Obligations: (Insured Loans) FY 99 $0; FY 00 est $54,600,000; and FY 01 est $43,360,000.

Budget Account Number: 86-0313-0-1-604.

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

Regulations, Guidelines, and Literature: 24 CFR Part 1000, subpart E; application kit.

14.869 INFO CONTACTS:

Regional or Local Office: Director of the Office of Loan Guarantee, National Office of Native American Programs, 1999 Broadway, Box 90, Denver, CO 80202 Phone: (303) 675-1600.

Headquarters Office: None.

(See Appendix IV for more contact info.)

14.869 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 shall determine the length of the repayment period for each project.

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, as approved by the Secretary.

14.869 POST ASSISTANCE REQUIREMENTS:

Reports: Participating Lenders shall provide HUD with copies of loan files and must keep HUD apprised of the obligation status even after the obligation is closed and guaranteed. This information shall consist of amount defeased and unpaid principal balance.

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 shall maintain a loan file for the line of the obligation plus 3 years.