GREEN BAY, Wis., Oct. 16, 2023 – U.S. Department of Agriculture (USDA) Rural Housing Administrator Joaquin Altoro today announced at the 2023 Tribal Housing Summit that the Department is partnering with eight Native Community Development Financial Institutions (NCDFIs) to expand homeownership opportunities for Native Americans living on Tribal lands in eight states.
In the Midwest, Wisconsin Native Loan Fund is receiving a $1 million loan to finance eight homes. Lake Superior Community Development Corporation in Michigan is receiving a $500,000 loan to finance five homes. White Earth Investment Initiative in Minnesota is receiving an $800,000 loan to finance eight homes. In South Dakota, Mazaska Owecaso Otipi Financial is receiving a $500,000 loan to finance four homes and Four Bands Community Fund will receive a $1 million loan to finance eight homes.
In the West, Hawaii Community Lending is receiving a $2.4 million loan to finance 10 homes. NACDC Financial Services, Inc. in Montana is receiving a $1 million loan to finance 10 homes. Native Community Capital which services Arizona and New Mexico is receiving an $800,000 loan to finance 10 homes.
USDA is providing funding to each institution through the Native CDFI Relending Demonstration Program. This USDA program provides loans to NCDFIs to relend to eligible homebuyers on Native lands. The pilot program is being administered under the Single Family Housing Direct Loan program.
Background
The Biden-Harris Administration made funding available for the Native American Relending Demonstration program through the Consolidated Appropriations Act of 2023.
The demonstration program was launched with two Native CDFIs in South Dakota. Initial loans of $800,000 were provided to Mazaska Owecaso Otipi Financial (Mazaska) and Four Bands Community Fund (Four Bands), that financed 16 homes. In Fiscal Year 2022, USDA lent an additional $1 million to Mazaska and $3 million to Four Bands. Both NCDFIs have deep ties to the local communities and were integral in demonstrating the effectiveness of this approach.
Mazaska Owecaso Otipi Financial is located on the Pine Ridge Reservation in South Dakota. It creates homeownership opportunities for the members of the Oglala Sioux Tribe.
Four Bands Community Fund, headquartered in Eagle Butte, South Dakota on the Cheyenne River Reservation, provides home mortgages and other financial products to businesses across the Cheyenne River Reservation and throughout service areas in South Dakota and North Dakota.
Today's announcement expands the Native American Relending Demonstration program to include six additional native lending institutions, to continue to address this historical disparity and demonstrate USDA’s commitment to Tribal communities.
To learn more about investment resources for rural areas, visit www.rd.usda.gov or contact the nearest USDA Rural Development state office.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.
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