1 USDA Rural Development Sustaining Relationships in Indian Country.
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Transcript of 1 USDA Rural Development Sustaining Relationships in Indian Country.
1
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) [email protected]
www.rurdev.usda.gov/AI_ANHome.html
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USDA Rural Development Program Overview