Housing Opportunities for Tribal Communities

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Presented by
Tanya Krueger
Vice President
Bay Bank
Green Bay, WI
920-490-7600
Bay Bank is owned by the Oneida Nation
Bay Bank is an approved HUD 184 Lender
We are the largest HUD 184 originator and servicer in the Great
Lakes area
Tanya is an enrolled member of the Oneida Nation
www.baybankgb.comtanya.krueger@baybankgb.com
 
2
Government to government relationships
Unique land status
Tribal Trust Land
Allotted Trust Land
Unrestricted Land
Underserved markets
Non-traditional credit
Limited access/exposure to financing
3
1992 Housing and Community Development
 
Act
Annual funding by Congress
Nationwide Program
4
 
THE TRIBE OR TDHE AS
BORROWER
5
Limited Housing Supply
Low turnover, vacancy rate
Limited availability of developed lots
Limited sales
Modest homes
Tribal developers
Financing generally grant based
Limited exposure/access to financial markets
Subsidies
Construction (grants, guarantees, interest rate)
Down payment & closing costs
6
When the Tribe or TDHE borrowers for the
construction/purchase of rental property,
they must demonstrate:
Property management skills
Rental and maintenance plan
Renters able to pay
7
These properties are eligible for
assumption by qualified borrowers:
Tribe/TDHE pays cash investment and loan
payments during construction
Qualified Borrowers able to assume
After qualifying assumption, Tribe or TDHE is
released from liability
8
Demonstrated ability to pay mortgage
loan:
Credit History (Dunn & Bradstreet)
Sources of funds to close
Income
Liabilities
9
Coverage of debt service
Skills, experience to undertake project
Demonstration of need
Marketing plan
Audited financial statements
10
Evidence of authority to borrow
Evidence of ability to obtain deficiency
judgment
Plans for projects exceeding 20 homes
must be built in phases
11
12
Based on HUD’s 2022 Loan Limits
13
Payments based on current rate of 6.875% for 30-year mortgage with APR of 7.077%
Mortgage loan designated specifically for Native
Americans
National Loan Program
23 entire states
On/off reservation
Fee simple land (on or off reservation)
Tribal trust with an executed lease
Individual allotment
Individual ownership
Fractionated ownership
14
Manual Underwrite by HUD
No Credit Scoring
NOTE:  Applicants must have acceptable Credit
Non-traditional credit acceptable
Market interest rate
Reduced monthly mortgage insurance
Minimum down payment
1.25% if $49,999 or less
2.25% if $50,000 or more
Seller contribution (up to exceed 6%)
100% of the cash requirement can be paid by an acceptable gift source
Tribe
Housing Authority
Family
15
Contact an approved Section 184 Lender
Visit our website at:
https://www.hud.gov/program_offices/public_indian_h
ousing/ih
Questions:
Section184@hud.gov
 
16
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Bay Bank, owned by the Oneida Nation, is a prominent HUD 184 lender in the Great Lakes area, offering financial support to underserved tribal communities. The government-to-government relationships, unique land status, and limited housing supply pose challenges for accessing financing. However, opportunities exist for tribal developers and borrowers to secure grants and subsidies for property construction and purchase, provided they demonstrate property management skills and the ability to pay. Qualified borrowers can assume loan liability, emphasizing the importance of credit history and income verification.

  • Housing opportunities
  • Tribal communities
  • Financial support
  • Limited housing supply

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  1. Presented by Tanya Krueger Vice President Bay Bank Green Bay, WI tanya.krueger@baybankgb.com 920-490-7600 www.baybankgb.com Bay Bank is owned by the Oneida Nation Bay Bank is an approved HUD 184 Lender We are the largest HUD 184 originator and servicer in the Great Lakes area Tanya is an enrolled member of the Oneida Nation 2

  2. Government to government relationships Unique land status Tribal Trust Land Allotted Trust Land Unrestricted Land Underserved markets Non-traditional credit Limited access/exposure to financing 3

  3. 1992 Housing and Community Development Act Annual funding by Congress Nationwide Program 4

  4. THE TRIBE OR TDHE AS BORROWER THE TRIBE OR TDHE AS BORROWER 5

  5. Limited Housing Supply Low turnover, vacancy rate Limited availability of developed lots Limited sales Modest homes Tribal developers Financing generally grant based Limited exposure/access to financial markets Subsidies Construction (grants, guarantees, interest rate) Down payment & closing costs 6

  6. When the Tribe or TDHE borrowers for the construction/purchase of rental property, they must demonstrate: Property management skills Rental and maintenance plan Renters able to pay 7

  7. These properties are eligible for assumption by qualified borrowers: Tribe/TDHE pays cash investment and loan payments during construction Qualified Borrowers able to assume After qualifying assumption, Tribe or TDHE is released from liability 8

  8. Demonstrated ability to pay mortgage loan: Credit History (Dunn & Bradstreet) Sources of funds to close Income Liabilities 9

  9. Coverage of debt service Skills, experience to undertake project Demonstration of need Marketing plan Audited financial statements 10

  10. Evidence of authority to borrow Evidence of ability to obtain deficiency judgment Plans for projects exceeding 20 homes must be built in phases 11

  11. 1 1- -Unit $420,680 $467,176 $459,860 Unit 2 2- -Units $538,650 $591,077 $591,016 Units 3 3- -Units $651,050 $632,622 $751,063 Units 4 4- -Units $809,150 $894,953 $883,872 Units Michigan Minnesota Wisconsin Based on HUD s 2022 Loan Limits 12

  12. $230,000 1 1- -Unit $1,498.46 $1,498.46 $230,000 Unit $420,000 2 2- -Unit $2,737.42 $1,368.71 $420,000 Unit $610,000 3 3- -Unit $3,975.73 $1,325.24 $610,000 Unit $800,000 4 4- -Unit $5,214.04 1,303.51 $800,000 Unit P&I Payment Monthly Cost Per Unit Required Down Payment $5,200 $9,500 $13,800 $18,000 Payments based on current rate of 6.875% for 30-year mortgage with APR of 7.077% 13

  13. Mortgage loan designated specifically for Native Americans National Loan Program 23 entire states On/off reservation Fee simple land (on or off reservation) Tribal trust with an executed lease Individual allotment Individual ownership Fractionated ownership 14

  14. Manual Underwrite by HUD No Credit Scoring NOTE: Applicants must have acceptable Credit Non-traditional credit acceptable Market interest rate Reduced monthly mortgage insurance Minimum down payment 1.25% if $49,999 or less 2.25% if $50,000 or more Seller contribution (up to exceed 6%) 100% of the cash requirement can be paid by an acceptable gift source Tribe Housing Authority Family 15

  15. Contact an approved Section 184 Lender Visit our website at: https://www.hud.gov/program_offices/public_indian_h ousing/ih Questions: Section184@hud.gov 16

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