1. 1 USDA Rural Development Sustaining Relationships in Indian Country

2. 2009 - 2013 Summary of Investments $2.3 billion benefitting American Indians & Alaska Natives Including: Home Ownership Loans = $594.1 million (4,724 loans) Water and Environmental = $388.6 million Community Facilities = $368.2 million Broadband/Telecom = $294 million Electric = $558.3 million Rural Business and Cooperative Programs = $96 million 2

3. Credit history must be established FY 14 Funding ~ $900 million Lease & Ordinance Review (One-Stop) Low & Very-Low Income Borrowers Mortgages are fixed rate for 30-38 years Interest Rates (as low as 1%) 100% financing available. Partial “Recapture” of interest subsidy Section 502-Single Family Housing Direct Loans www.rurdev.usda.gov/HAD-Direct_Housing_Loans.html 3

4. Lease & Ordinance Review Applications made with approved lenders Mortgages are 30 years fixed rate 100% Financing Available Interest rates are negotiated with the lender There is no maximum loan amount In some cases, closing costs and repairs can be financed with the home purchase FY 14 Funding ~ $24 Billion Upfront Fees: Purchase & Refinance: 2% Annual Fees: Purchase & Refinance:.40% Section 502-Single Family Housing Guaranteed Loans www.rurdev.usda.gov/HAD-Guaranteed_Housing_Loans.html 4

5. Section 504-Single Family Housing Home Improvement Loan & Grant Program “Note Only” feature facilitates Lease/Mortgaging problems (loans less than $7,500) If no experience with RD - this is a great place to start Applicant must be income eligible and 62 years of age or older to qualify for grant assistance Grant has 3 year recapture clause Roofs, plumbing, handicap accessible ramps, windows, etc. Can’t be cosmetic improvements 504 Customer Lummi Reservation, WA www.rurdev.usda.gov/HAD-RR_Loans_Grants.html FY 14 Funding ~ $28.7 Million (grants) ~ $26.2 Million (loans) 5

6. Screening & synchronizing the timing of families Problems of getting loans closed timely on Trust lands Recommend a variety of loan products be available FY14 ~ $25 million available Section 523-Single Family Housing Mutual Self Help Assistance Grant Key Features Grants are to nonprofits Typically 5-8 families or individuals work together under the guidance of a construction supervisor Perform at least 65 percent of the construction work building their own homes and earn “sweat equity ” Issues www.rurdev.usda.gov/HAD-Self-Help_Grants.htm l 6

7. 502 SFH Loan Activity to AI/AN Fiscal Years Number of Loans 502 Direct 2000 – 2013 Total Loans = 3,145 Trust Land = 317 10% 10% on Trust Land

8. Fiscal Years Number of Loans FY 2013 Highlights Total Grants =175 Total Loans = 47 34.2% On Trust Lands 504 SFH Activity to AI/AN

9. SFH Lending Process on Tribal Lands One Stop Mortgage Process –RD, HUD, VA –Model Ordinance, Model Lease, MOU –Leasehold Mortgage Recent Changes –Revised BIA Leasing Regulations (7/12) –Helping Expedite and Advance Responsible Tribal Homeownership (HEARTH) Act (7/12) Lending on Native American Lands www.rurdev.usda.gov/supportdocuments/LendingOnNativeLands_RD.pdf

10. Contact information Tedd Buelow (720) 544-2911 Tedd.Buelow@wdc.usda.gov www.rurdev.usda.gov/AI_ANHome.html 10 USDA Rural Development Program Overview