Three Affiliated Tribes see new housing in their future
October 21, 2003

Denver, CO -- Thanks to the combined efforts of the Native American Community Development Corporation and the Housing Department of the Three Affiliated Tribes (the Mandan, Hidatsda and Arikara Nations), tribal members will have 34 housing units available for lease to purchase.

This is a success story that Stephanie Harmon describes as “very exciting.”

Harmon works under Elouise Cobell, who is the executive director, with the Native American Community Development Corporation (NACDC). The NACDC is the community development affiliate of Native American Bancorporation, focusing its efforts on the infrastructure, individual (including housing), financial literacy and small business enterprise development needs of Native American tribes and people.

“We’re the corporation responsible for business architectural strategies which provide the technical assistance toward building capacity within a tribal organization. We provide technical assistance where tribes are looking to develop housing or a food store and other types of development,” Harmon said.

Every project, Harmon said, has its own opportunities and challenges. On the part of the Three Affiliated Tribes, there was a need and desire to build housing for tribal members, but there was a problem with their original structure using a bond issuance for the first phase, she continued.

“NACDC helped by assisting the housing director with identifying a financing structure that would work for the tribe and is now assisting with identifying mortgage lenders who will originate the permanent loan. NACDC provided additional assistance to the Affiliated Tribes in obtaining a loan through the Native American Bank; there was a funding gap of $750,000 in the project.”

“Three Affiliated Tribes has been very fortunate in obtaining Bank One, Fisher, Indiana, as our lender of thirty-four (34) Section 184 Guaranteed mortgage loans. Native American Bank provided a short-term construction loan to the tribe to begin construction while the 184 loans are pending closing,” said Connie R. Wilkinson, Tribal Housing Director, Mandan, Hidatsa & Arikara Nations.

At a recent conference, Harmon heard the story of one individual waiting over two years to go through the process of obtaining a mortgage.

“The biggest challenge in Indian Country is home ownership,” Harmon said. “There is a lengthy process involved with the Bureau of Indian Affairs, where the individual has to go through many phases in order to apply for a mortgage. Going through the mortgage process is difficult, to settle is cumbersome,” she explained.

“Let’s say a tribe decides they’d like to build 34 housing units. They must draft a master lease and a sublease, and the BIA must approve both documents.”

Harmon said that the situation could be improved if the BIA were willing to develop templates and standardized documents to expedite the process.

Still, she has seen improvement in the process.

“I think the climate is changing. Every six months we see improvement.”

Harmon has been with Native American Bank since December of 2002. She previously worked for Fannie Mae where an important facet of her work was in designing low energy home loan products, which will help in housing development and production in her position at NACDC.

“There is a use for that sort of program in Indian Country,” Harmon said. “Many tribes are working towards sustainable and low energy use homes. It’s a matter of individuals understanding that there are energy efficient loan products available.”

“Indian Country is very fortunate to have Native American Bank, which is already familiar with the Governmental and legal structures of tribes nationwide,” Wilkinson said. “We look forward to one day being able to use the Native American Bank as our 184 Lender.”

Native American Bank’s corporate offices are in Denver, Colorado, 999 18th Street, Suite 2460, Denver, CO 80202; (303) 988-2727; fax: (303) 988-5533, and its principal banking office is located in Browning, Montana, 125 North Public Square, P.O. Box 730, Browning, MT 59417; (406) 338-7000; fax (406) 338-7008; toll free (800) 307-9199.