A General Overview Prepared for the 2017 Alaska Providers Conference 7/21/2015 12:12 PM US Department Of The Interior Bureau of Indian Affairs LEASING & MORTGAGES ON TRIBAL LAND A General Overview Prepared for the 2017 Alaska Providers Conference Presented by: Sandra Dietz Realty Officer Real Estate Services Great Lakes Agency Midwest Region © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

PRESENTATION ROAD MAP What Brings the BIA Here Today BIA’s Administration of Leasing on Tribal Land Steps Taken at the BIA to Achieve An Approved Residential Lease and Mortgage Trust Asset Accounting Management System (TAAMS)

WHAT BRINGS THE BIA HERE TODAY WHAT BRINGS THE BIA HERE TODAY? (Why is the BIA involved in the lending process?) The long-standing legal and political relationship between Indian tribes and the federal government. Demonstrated through treaties, federal court decisions, statutes and implementing regulations. Resulting in the Federal Government’s responsibility for land and natural resources held in trust for the beneficial use of Tribes and Individual Indians in the United States. The Bureau of Indian Affairs oversees and administers the functions necessary to uphold the trust. BIA’s role in the lending process arises from its administration and oversight of leasing functions (i.e., leases, amendments, assignments, subleases, and leasehold mortgages) for tribal and individually owned trust or restricted lands.

WHAT KIND OF MORTGAGES DOES THE BIA APPROVE? TRUST LAND MORTGAGES Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), 25 U.S.C. §4211 25 U.S.C. § 5135 Public Law 450, March 29, 1956 - Mortgages and deeds of trust by individual Indian owners. 25 CFR 152.34 Approval of mortgages and deeds of trust. LEASEHOLD MORTGAGES

MORTGAGE ACTIVITY AT THE BIA NATIONWIDE - LEASEHOLD MORTGAGES APPROVED ANNUALLY - 350 NATIONWIDE - LAND MORTGAGES APPROVED ANNUALLY - 30 ALASKA REGION - 16 MORTGAGES Currently we have 500 pending Oldest is 3 years old Average processing time is

BIA’s ADMINISTRATION OF LEASING ON INDIAN LAND Federally-Recognized Tribes can negotiate long-term leases of tribal trust and restricted lands, for business, residential, agricultural, and other purposes under 25 U.S.C. § 415 (The Indian Long Term Leasing Act) and the BIA’s implementing regulations at 25 CFR Part 162 including: Subpart B: Agricultural Leases Subpart C: Residential Leases Subpart D: Business Leases Subpart E: Wind and Solar Resource Leases Leases entered into by tribes under 25 CFR Part 162 require approval by the Secretary of the Interior. The Secretary’s approval authority for leases is generally delegated to BIA Regional Directors and/or Agency Superintendents. The HEARTH Act provides a process where Federally Recognized Tribes can develop their own leasing regulations and execute leases without Secretarial approval of each lease and leasehold mortgage

BIA’s ADMINISTRATION OF LEASING ON INDIAN LAND, CONT. The BIA addresses many issues associated with administration of the leasing function including, but not limited to: Reviewing and approving leases, amendments, assignments, subleases, and leasehold mortgages. Encoding accurate contract/lease information into the BIA’s system of record, the Trust Asset and Accounting Management System (“TAAMS”). Monitoring lease activity for compliance issues (both monetary and non-monetary). Initiating efforts to resolve, or if necessary invoke enforcement actions, for contract violations. Enforcement actions can include cancellation of the lease contract. Verifying lease payments have been accurately encoded into TAAMS. Responding to tribal or Indian landowner inquiries and/or concerns regarding their trust lands. Keeping in mind that BIA’s responsibility is to the tribe or Indian landowner, respond to inquiries from lessees or the general public regarding leases on trust lands. Cooperate with other government agencies, as authorized, that are undertaking actions that overlap, intersect, are dependent upon, or are affected by the BIA’s trust responsibilities regarding Indian lands.

STEPS TAKEN AT BIA TO APPROVE RESIDENTIAL LEASE & MORTGAGE (25 CFR §§ 162.301- 162.374) With an approved lease contract, Tribes and Individual Indian owners of allotted trust land, can enter into mortgages of their leasehold interest. 25 CFR § 162.003: Leasehold mortgage means a mortgage, deed of trust, or other instrument that pledges a lessee’s leasehold interest as security for a debt or other obligation owed by the lessee to a lender or other mortgagee The BIA follows the provisions of 25 CFR §§ 162.301- 162.374 to review, process, and approve a residential lease and §§ 162.359 -162.360 address the approval process for a residential leasehold mortgage. As with leases, amendments, assignments, and subleases, the BIA must approve leasehold mortgages unless it finds a compelling reason not to do so, based on certain specified findings (see §§ 162.359 -162.360). Although ultimately each Region or Agency processing a Residential lease fulfills the requirements of the CFR, the internal steps taken to meet those requirements can differ. If a lender that wants to submit a proposed mortgage to the BIA for approval, it is critical that the lender contact the Region/Agency having jurisdiction over the land.

LOCATING YOUR CONTACTS AT THE BIA The first step is determine which of BIA’s 12 Region’s has jurisdiction over the land in question. Generally easily determined by which tribal state the land is located, however, in some cases more than one Region may have oversight of the same state. It is also helpful to know the Land Title and Records codes associated with the land.

LOCATING YOUR CONTACTS AT THE BIA http://www.bia.gov/ http://www.bia.gov/WhoWeAre/RegionalOffices/index.htm

LEASEHOLD MORTGAGE AUTHORITIES 25 CFR §162.244-.246, agricultural leasehold mortgages; 25 CFR §162.357-.360, residential leasehold mortgages; 25 CFR §162.457-.460, business leasehold mortgages; 25 CFR §162.582-.585, renewable energy leasehold mortgages; 25 CFR §169.210-.212, rights of way mortgages.

BIA MORTGAGE HANDBOOK Provides a basic framework of a streamlined and standardized process for all regions and agencies to administer Final Draft Form Leasehold Mortgages Trust Land Mortgages

BIA MORTGAGE HANDBOOK, cont. Leasehold Mortgages and associated documents Trust Land Mortgages and associated documents Checklists Templates Forms

WHAT IS THE BASIC LEASEHOLD MORTGAGE PROCESS? STEP 1 - RECEIVE STEP 2 - REVIEW STEP 3 - APPROVAL STEP 4 - RECORDING AND CERTIFIED TITLE STATUS REPORT STEP 5 - FINAL ACTIONS

WHAT IS THE BASIC PROCESS AND ASSOCIATED TIMEFRAMES? STEP 1 - RECEIVE STEP 2 - REVIEW STEP 3 - APPROVAL STEP 4 - RECORDING AND CERTIFIED TITLE STATUS REPORT STEP 5 - FINAL ACTIONS STEP 1 - START STEP 2 - 10 Days from Receipt STEP 3 - 20 Days from Receipt STEP 4 - 5 Days after Approval STEP 5 - 2 Days after Receipt of Certified TSR Every mortgage package requires two certified TSRs, One at Step 1 (to evidence approved recorded lease in place) and One at Step 4 (to evidence approved, recorded mortgage on title) Receive - Date stamp receipt date, log into tracking systems, preliminary determination of completeness Review - Complete application determination Approval - By Line Officer Recording and CTSR - LTRO states 30 days for CTSR Final Actions - Returning complete approved package with CTSR to applicant

Guidance for the Review of Leasehold Mortgages BIA will ensure: There is a signed, approved, and recorded lease regarding a leasehold mortgage request. The legal description is correctly cited in all documents and that it matches the lease document. Timeframes are followed closely. No defects on title or encumbrances. Paper trail. Every mortgage package requires two certified TSRs, One at Step 1 and One at Step 4

TAAMS Every mortgage package requires two certified TSRs, One at Step 1 and One at Step 4

TRUST ASSET AND ACCOUNTING MANAGEMENT SYSTEM (TAAMS) TAAMS is the official system of record Title and Ownership Encumbrances (land use contracts, mortgages) Name and Address

TAAMS WHO CAN ACCESS? Bureau employees LTRO Realty Natural Resources Forestry Other Agencies - view only BLM, ONRR, OST Tribes Contract or Compact LTRO-Land Titles and Records Office BLM- Bureau of Land Management ONRR- Office of Natural Resources Revenue OST- Office of Special Trustee

REQUIREMENTS FOR ACCESS TAAMS REQUIREMENTS FOR ACCESS Tribe must perform the trust function LTRO Realty Forestry Security background clearance Government equipment Training This presentation does not address equipment/costs for access.

TAAMS MANAGEMENT TAAMS Change Management Board (TCMB) TCMB Members BIA Trust Program Division Chiefs OST Office of Information Technology Regional Director Deputy Regional Director TCMB meets Quarterly TCMB approves enhancements to the system TCMB approves training schedule

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