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USDA Rural Development

Sustaining Relationships inIndian Country

2009 - 2013 Summary of Investments

$2.3 billion benefitting American Indians & Alaska Natives

Including: Home Ownership Loans = $594.1 million (4,724 loans) Water and Environmental = $388.6 million Community Facilities = $368.2 million Broadband/Telecom = $294 million Electric = $558.3 million Rural Business and Cooperative Programs = $96 million

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• Credit history must be established• FY 14 Funding ~ $900 million

• Lease & Ordinance Review (One-Stop)

• Low & Very-Low Income Borrowers

• Mortgages are fixed rate for 30-38 years

• Interest Rates (as low as 1%)

• 100% financing available. • Partial “Recapture” of

interest subsidy

Section 502-Single Family Housing

Direct Loans

www.rurdev.usda.gov/HAD-Direct_Housing_Loans.html 3

• Lease & Ordinance Review• Applications made with approved

lenders• Mortgages are 30 years fixed rate• 100% Financing Available• Interest rates are negotiated with

the lender• There is no maximum loan amount• In some cases, closing costs and

repairs can be financed with the home purchase

• FY 14 Funding ~ $24 Billion• Upfront Fees:

• Purchase & Refinance: 2%

• Annual Fees:• Purchase & Refinance:.40%

Section 502-Single Family Housing Guaranteed

Loans

www.rurdev.usda.gov/HAD-Guaranteed_Housing_Loans.html 4

Section 504-Single Family HousingHome Improvement Loan & Grant

Program

• “Note Only” feature facilitates Lease/Mortgaging problems (loans less than $7,500)

• If no experience with RD - this is a great place to start

• Applicant must be income eligible and 62 years of age or older to qualify for grant assistance

• Grant has 3 year recapture clause

• Roofs, plumbing, handicap accessible ramps, windows, etc.• Can’t be cosmetic

improvements504 Customer

Lummi Reservation, WA

www.rurdev.usda.gov/HAD-RR_Loans_Grants.html

FY 14 Funding~ $28.7 Million (grants)~ $26.2 Million (loans)

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• Screening & synchronizing the timing of families

• Problems of getting loans closed timely on Trust lands

• Recommend a variety of loan products be available

• FY14 ~ $25 million available

Section 523-Single Family HousingMutual Self Help Assistance Grant

Key Features

• Grants are to nonprofits• Typically 5-8 families or

individuals work together under the guidance of a construction supervisor

• Perform at least 65 percent of the construction work building their own homes and earn “sweat equity”

Issues

www.rurdev.usda.gov/HAD-Self-Help_Grants.html 6

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

32 39 43 40 42 25 16 6 25 6 15 12 6 10

250

222 202268 290 252

225 219 196 192

341

188144

156160

231209

282 291 278236

274

438

619

891884

209

1100

Direct On Trust Land

Direct Total

Guaranteed Total

502 SFH Loan Activity to AI/AN

Fiscal Years

Nu

mb

er

of

Loan

s 502 Direct 2000 – 2013

Total Loans = 3,145

Trust Land = 317

10% on Trust Land

2000

2002

2004

2006

2008

2010

2012

0

50

100

150

200

250

300

350

400

450

140

309

295

311341

384

304

270260

201214

264

194

222

5288

115

113

109

125 9290 70

34

69

123

88

76

Loans and Grants

Loans and Grants on Trust Lands

Fiscal Years

Nu

mb

er

of

Loan

s FY 2013 Highlights

Total Grants =175Total Loans = 4734.2% On Trust

Lands

504 SFH Activity to AI/AN

SFH Lending Process on Tribal Lands

• One Stop Mortgage Process– RD, HUD, VA– Model Ordinance, Model Lease, MOU– Leasehold Mortgage

• Recent Changes– Revised BIA Leasing Regulations (7/12)– Helping Expedite and Advance

Responsible Tribal Homeownership (HEARTH) Act (7/12)

• Lending on Native American Landswww.rurdev.usda.gov/supportdocuments/LendingOnNativeLands_RD.pdf

Contact informationTedd Buelow

(720) 544-2911Tedd.Buelow@wdc.usda.gov

www.rurdev.usda.gov/AI_ANHome.html

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USDA Rural Development Program Overview