1. A General Overview Prepared for the 2017 Alaska Providers Conference
7/21/ :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
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2. 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)

3. 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.

4. 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, Mortgages and deeds of trust by individual Indian owners.
25 CFR  Approval of mortgages and deeds of trust.
LEASEHOLD MORTGAGES

5. 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

6. 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

7. 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.

8. 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 § : 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 §§ to review, process, and approve a residential lease and §§ 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 §§ ).
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.

9. 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.

10. LOCATING YOUR CONTACTS AT THE BIA

12. LEASEHOLD MORTGAGE AUTHORITIES
25 CFR § , agricultural leasehold mortgages;
25 CFR § , residential leasehold mortgages;
25 CFR § , business leasehold mortgages;
25 CFR § , renewable energy leasehold mortgages;
25 CFR § , rights of way mortgages.

13. 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

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

15. 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

16. 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 Days from Receipt
STEP Days from Receipt
STEP Days after Approval
STEP 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

17. 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

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

19. 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

20. 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

21. 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.

22. 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

23. THANK YOU!