JUNEAU, Nov. 1, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director Alaska Julia Hnilicka today announced the Department is partnering with the Ha Yaakawu Financial Corporation (HYFC) who is receiving a $876,000 loan to finance approximately 5 homes.
“Homeownership is a cornerstone of stability and economic security. Tribal communities have faced additional barriers to achieving this dream, especially in rural Alaska,” Hnilicka said. “Through strengthening our partnership with Ha Yaakawu, with a second round of awards, we’re proud to support financing for five homes, bringing more opportunities for families in Southeast Alaska.”
USDA Rural Development is funding the HYFC through the Native CDFI Relending Demonstration Program, part of the Single Family Housing Direct Loan Program. This program aims to increase homeownership opportunities for Alaska Native communities by providing mortgage lending capital through 33-year loans at a 1 percent interest rate, with a three-year deferral on initial payments.
The demonstration program enables Native CDFIs to work within their communities to offer financing that allows eligible homebuyers on Native lands to build, purchase, or repair homes. Since the start of the Biden-Harris Administration, USDA Rural Development has invested $18.5 million to 11 Native CDFIs, assisting about 150 families and individuals in achieving homeownership on their Native lands.
The Native CDFI Relending Demonstration Program is a successful model for government-supported affordable homeownership. Through this USDA Rural Development partnership, HYFC has provided affordable housing to nine low-income, rural Tribal citizens in Southeast Alaska. With access limited by icefields or water, these remote communities can only be reached by air or sea. Alaska’s extremely rural conditions drive construction costs as high as $400 per square foot, and rising market interest rates and high living costs make homeownership nearly unattainable for many. Tribal villages also face increasing competition from corporations buying property and converting it into vacation rentals for non-tribal citizens.
This program helps keep Tribally owned homes within Tribal communities. With HYFC retaining servicing rights, measures for foreclosure prevention can be maximized, supporting sustainable, affordable homeownership for Tribal citizens.
Background
The Biden-Harris Administration made funding available for the Native CDFI Relending Demonstration Program pursuant to the Consolidated Appropriations Act of 2024.
To learn more about investment resources for rural areas, visit www.rd.usda.gov or contact the Palmer USDA Rural Development State Office.
USDA 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.
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