hud 184 -tdhes making it work for you today as borrower

HUD 184 -TDHES

Making it work for you today as borrower

100% owned by the Chickasaw Nation

Mowa

Choctaw

Housing

Authority

Nancy Bainbridge Senior Vice President

Tribal & Construction Lending

Bank2

,

BEFORE

after

BEFORE

after

WHAT IS THE HUD 184 MORTGAGE PROGRAM?

HOW DOES IT WORK?

HUD 184 LOAN PROGRAMWHO CAN BORROW

• Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s office of Native American Programs” (ONAP).

•

• Borrower can

• ENROLLED tribal member of a federally recognized tribe

• Alaskan Native villages and corporations

➢Tribes❖Tribal housing departments within the tribe

➢Tribal Housing Authorities➢TDHEs-

Tribes, HAs and TDHEs must be on the HUD participating tribal list.

• The homes and property can be in any area participating tribes have determined to be eligible. There are 39 states of which 26 are 100% eligible (see HUD map

• *HUD 184 web

HUD 184 LOAN PROGRAM• Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s office of Native American Programs” (ONAP).

•

• Borrower can

• Construct• Rehab existing• Purchase• Purchase and Rehab• Construct a modular home• Purchase (have constructed) a new Manufactured home• Refinance existing home

A home can be a single family residence up to a 4-plex

• The homes and property can be in any area participating tribes have determined to be eligible. There are 39 states of which 26 are 100% eligible (see HUD map

• *HUD 184 web

HOW TRIBES & TDHESCAN USE THE PROGRAM TO

LEVERAGE THEIR RESOURCES

• Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s office of Native American Programs” (ONAP).

• Leverage your …….• Funds• Land• Tribal & Local Construction crews• Tribal & Local businesses & suppliers• Tribal & local craftsman

• Training and apprenticeships

• The homes and property can be in any area participating tribes have determined to be eligible. There are 39 states of which 26 are 100% eligible (see HUD map

• *HUD 184 web

BUILDING BETTER LIVES

$2,250 (plus closing costs) $97,750

Tribal funds

Bank funds

2.25% down payment plus

closing costs

Remaining 97.75% of cost of residence

whether it is Single family, duplex, triplex and/or quadplex

$100,000 House

Erna Reeves, Deputy Director,

Housing Authority of the Cherokee Nation

Build

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HUD 184 Title VI

From this to

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To this

➢ Housing Authority- Construction Department

or

➢ Contractors- Bids depending on location

Construction

Tenants choice of …………

FLOOR PLANS

2 Bedroom

3 Bedroom

4 Bedroom

Cherokee Territory 14 counties

Using their

own land

➢ Long-term lease➢ At the end 30 years- own home➢ Allows for sublease➢ Repairs & maintenance on tenant➢ Tenant can assume the loan If want to earlier than 30

years ( must credit & income qualify)

➢ HA responsible for insurance➢ No real estate taxes while owned by HA

Cherokee ProgramLease/ home ownership

Cherokee ProgramSelf- Sustainable

To be self-sustainable the rent should cover the cost of➢ the mortgage payment➢ Insurance➢ otherNo RE taxes

As the mortgage payment is fixed for 30 years, so is the lease payment.

The program needs to provides the ability to adjust the lease payments over time (before the lease is signed) for rising interests rates and/or higher construction costs to maintain its- self-sustainability.We try to have the rent payment cover its costs as noted

Providing Homes Today

BUILDING BETTER LIVES

Knik TribLori Canady Deputy Director / Housing Director e

Knik Tribal Council

4-plex

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WASILLA, ALASKA

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BUILDING BETTER LIVES

Purchase duplexes

BUILDING BETTER LIVES

MarketMarket Rate Rentals

Purchase

BUILDING BETTER LIVES

Design to standards and then purchase when completed

New project -market rate and low income

Designed duplexes

BUILDING BETTER LIVES

Stretch Tribal funds

by using bank funds NOT tribal funds

8 9 8

46

383 532

66

88

3

1653

62 7 7

597

4 6

2 5

2441

4618

244

156

2686

1439

162

323

19645

18

34 35

46

33

1113 5

LeaLease

Standardized

Acknowledged by

BIA &HUD

50 years ( can be

25yrs auto

renewable)

HUD language

How to Facilitate the process

Your responsibilities as tribal housing

Certified TSRSurvey

Environmental

Current

Signed

Refinance –

lease

recorded

Current

No

construction

/improvement

restrictions

Easements

Current

Required

On all tribal

lands

Side note- Also need to determine internally who is responsible -on the individual loans for getting,

ordering and paying- including ‘above income “ members

If you- the Housing Department , had $100,000

would you build

1 home …………. or

Or 10

BUILDING BETTER LIVES

$2,250 (plus closing costs) $97,750

Tribal funds

Bank funds

2.25% down payment plus

closing costs

Remaining 97.75% of cost of residence

whether it is Single family, duplex, triplex and/or quadplex

Finance Example

Average cost* $110,000Loan amount $107,525Tribally funds $ 2,475

Does not include closing costs

Rent $600Mortgage payment* $567Excess for insurance and other expenses $ 33

* Not exact just an example

Mortgage payment estimated at 4.5% and includes the HUD monthly mortgage insurance

Coronado

Park

Eagle River

Alaska

Manufactured home

Coronado

Park

Eagle River

Alaska

Modular or Pre-fab home

BUILDING BETTER LIVES

REFINANCE

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WHY USE THE HUD 184? TRIBES & TDHES

➢No income restrictions for tenants ➢ As long as no other government low income funds involved

➢Uses Bank2 funds not tribal funds to build

➢Collateral is 1st mortgage

➢Assumable , allowing a tribal member to step into the loan

➢Home can be on or off native lands

➢Permits single family up to a quadplex

➢Various purposes

IT CAN BE…………………

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Single Family

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Lummi Nation Housing Authority

Triplex

QUAD-PLEX

MOWA CHOCTAW Housing Authority

51

PURPOSE POSSIBILITIES

• Housing - no income restrictions

➢Rentals

➢Lease to own

➢Build to sell

----------------------------------------▪ All are assumable to enrolled tribal

members of a tribe

▪ Can be any income level

▪ Low income to market rate

▪ Rents established by you

Own the homes for additional purposes

• Employees Housing

• Professionals Housing

• Doctors, Teachers, Medical, etc.

• Retirement

• Elder Housing

• Senior independent living

• Group homes

• Student Housing

• Other

• ( no temporary housing)

BUILDING BETTER LIVES

Li e

Lillie Steiner, Executive Director

MOWA Choctaw Housing Authority

MOWA CHOCTAW ELDERLY HOUSING

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PHASE II

Eagles View

Started in April 2019

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BUILDING BETTER LIVES

1 2

4 3

Need all the pieces of the puzzle= Success!

TDHE- construct,

purchase or rehab

Education

Home buyers

Credit Counseling

Assumable

loan

Or

internal funds

Rent

covers

costsSelf-sustainingTransfer ownership

Assume or

convey

Success!

LeaLease

Standardized

Acknowledged by

BIA &HUD

50 years ( can be

25yrs auto

renewable)

HUD language

How to Facilitate the process

Your responsibilities as tribal housing

Certified TSRSurvey

Environmental

Current

Signed

Refinance –

lease

recorded

Current

No

construction

/improvement

restrictions

Easements

Current

Required

On all tribal

lands

Side note- Also need to determine internally who is responsible -on the individual loans for getting,

ordering and paying- including ‘above income “ members

A 100% tribally owned bank by the

Chickasaw Nation

THANK YOU!

Questions