The South Dakota Native Homeownership Coalition recently gathered in Yankton to discuss housing opportunities across South Dakota’s nine native tribal reservations. The annual meeting brings together Tribal leaders, federal and state partners

The coalition has recently created a practitioner’s guide, designed to provide lenders with a step-by-step process for financing homeownership on Tribal lands.

April Anderson, Senior Loan Specialist with Four Bands Community Fund in Eagle Butte, said they hope this guide provides valuable insight into homeownership lending that people may not be familiar with. “It’s really no different than any other type of lending,” said April. “It comes down to understanding how the land management works, ideas on working with the Tribes, and the various funding opportunities available to Tribal members and this guide will be the roadmap to make that possible.”

While in Yankton, attendees spent time discussing past successes, such as the Construction Internship Program. April explained that in the past year, roughly 60 individuals participated in the program. Interns spend 200 hours learning land management, working with utilities, working as financers or builders, or becoming educated in records management. “For example, the interns have learned how to check the hundreds of homesites across our reservations to see if the homes have been built or are still in the process of building,” said April. When a Tribal member receives a permit to build on the land, the construction must be started and completed within a set amount of time, or that permit may be revoked. “It’s the entire ecosystem. It all has to work together and this internship is offering people the chance to get involved, to work in these fields to improve homeownership on Native lands.”

April said most of the interns become full time employees following the program. “We also provide financial education and other training like OSHA and CPR trainings.”

Helping them understand how homeownership is different really sets them up for success

The coalition, which was formed 12 years ago, is also credited with launching the Single Family Housing 502 Relending Program. Because of the efforts by members working closely with lawmakers in Washington, D.C., South Dakota became the first state in the nation to pilot the program. This pilot program awards Rural Development 502 funding to Native Community Development Financial Institutions, who in turn create home loans for members on Tribal reservations.

“We made our first loan in 2019, and we just closed three more in May of this year,” said April. This marks 34 loans by Four Bands utilizing these funds. “Because we service these loans, we personally know the borrowers. To this day, we have not seen a single homeowner default on their loan. We have them structured in a way that works well for the homeowners, but it starts even before the loan is made.” Four Bands works closely with potential borrowers, putting them through finance classes to teach them how to budget, how to manage and pay off debt, and most importantly, how to live as a homeowner. “Many of our borrowers have always been renters, so helping them understand how homeownership is different really sets them up for success as they transition from renter to homeowner.”

One such homeowner is Philomine, one of the newest homeowners on the Cheyenne River reservation.

“I just moved into my home in early June,” explained Philomine. “I never really had stable housing. My mother passed away 20 years ago, and I had spent time living with her. She said I’d always have a bed in her home. When she passed, I had nowhere left to go. I was living in a motel or even in my car.”

But she got back on track, getting a job cleaning dorms in Eagle Butte, and eventually settled into a one-bedroom apartment. Then life threw her another turn.

“My grandsons were removed from their home, and I was asked if I would take them. I would never turn my grandkids away,” said Philomine.

Eventually three of her grandsons would come to live with her. Space was tight, but they made it work. She was introduced to the team at Four Bands, who began providing her with financial classes and walked her through the programs to become a homeowner.

“The staff at Four Bands are so wonderful. I never would have thought I’d become a homeowner, but they did such a nice job explaining everything,” said Philomine. “They were so eager to help me and I made sure I attended all the classes, got them the documents requested, and filled out my application to purchase a home.”

You’ll always have a bed in my home

The family continues to settle into their new five-bedroom home in the Badger Park neighborhood. She’s proud of the home she has and is excited to provide a safe place for her grandsons to grow up. “My youngest grandson came up to me and said, ‘thank you for this home’ and gave me the longest hug. He’s so happy that he walks around, takes pictures inside and outside the home,” said Philomine. “I think they all feel so at home here.”

As Philomine’s oldest grandson, Elijah, prepares for graduation next year, he shares his excitement for going out into the world and trying new things. She reminds him of the same thing her mother told her many times. “Life will throw a lot of things at you and you’re going to be challenged in many ways but always remember that you’ll always have a bed in my home.”

To learn more about Rural Development’s Single Family Housing programs, visit RD.USDA.Gov. Information on Four Bands programs can be found at fourbands.org. Learn more about the work being done to advocate for Native Americans living on Tribal lands by visiting sdnativehomeownershipcoalition.org.