Senator Rounds Updates Coalition about Progress Toward Increasing Access to Mortgages for Native American Veterans
Today, Senator Mike Rounds (R-SD) provided an update letter to the South Dakota Native Homeownership Coalition on his reformation efforts of the Department of Veterans Affairs’ Native American Direct Loan (NADL) program. Although the NADL program is intended to provide mortgage financing for Native American veterans living in reservation communities, levels of participation have historically been very low.
Earlier this month, Rounds, a member of the Senate Veterans’ Affairs Committee (SVAC), along with SVAC Chairman Jerry Moran (R-KS) and Ranking Member Jon Tester (D-MT), called on the Government Accountability Office (GAO) to review the NADL program. The Senators requested the evaluation of the NADL program out of concern that it is not effectively serving Native American veterans. This request is a critical step towards programmatic improvements through legislative or other means.
“It’s been a long-time coming but thanks to Senator Rounds’ leadership, we are finally starting to see some progress with reforming the VA’s Native American Direct Loan program,” says Robert Dunsmore, Tribal Veteran Service Officer for the Cheyenne River Sioux Tribe and also the Co-Chair of the South Dakota Native Homeownership Coalition’s Native Veterans Homeownership Committee.
Over the past several months, Rounds and his staff have met with VA officials and several tribal communities to gain a thorough understanding of the challenges within the NADL program. During this time, they have also worked collaboratively with the South Dakota Native Homeownership Coalition’s Native Veterans Homeownership Committee to explore potential solutions that would result in higher rates of homeownership for Native American veterans.
“We appreciate the time Senator Rounds and his staff have taken to come here to the Lake Traverse Reservation to see the homes we have built and hear about our concerns. Our veterans deserve to be homeowners, especially after serving our country in higher numbers than any other ethnic group in America,” says Geri Opsal, Tribal Veteran Service Officer for the Sisseton Wahpeton Oyate and also Co-Chair of the South Dakota Native Homeownership Coalition’s Native Veterans Homeownership Committee.
Click below to download and read the letter from Senator Rounds to the South Dakota Native Homeownership Coalition.
Now Accepting Applications from Coalition Member Organizations for Mortgage and Small Business Relief
At the beginning of June, we launched the Native Homeownership Protection Plan, a program designed to channel financial support through our member organizations to homeowners and small businesses that are facing challenges due to the COVID-19 pandemic.
Applications are now open and will continue to be accepted until funds are exhausted!
Program Guidelines
• Coalition member organizations that are current on their membership dues can refer their clients to receive Native Homeownership Protection Plan funds. If you are not sure if you are current on your dues, please contact Kelsie Whiting at kwhiting@lakotafunds.org. If you are not a member, but would like to become one, please visit www.sdnativehomeownershipcoalition.org/joinus to fill out our online membership application.
• Coalition member organizations can refer clients to apply for funds if they: 1)are a Native homeowner or small business owner; and 2) have lost business revenue or have experienced a reduction or loss of income because of the COVID-19 pandemic.
• Mortgage relief funds can be used for a mortgage payment, utilities payment, or housing related expenses (e.g., emergency repairs).
• Small business assistance funds can be used for business rent or utilities, operating expenses, salaries, or COVID-related expenses.
How to Access Funds
Download and complete the simple two-part application. Part 1 is completed by the member organization and Part 2 by the homeowner or small business. Submit the completed application to the appropriate Native CDFI.
Thank You!
We’d like to thank Four Bands Community Fund, Lakota Funds, and Mazaska Owecaso Otipi Financial for helping us administer these funds. And, we’d like to express our appreciation to an anonymous donor, Fannie Mae, Freddie Mac, South Dakota Community Foundation, and Wells Fargo for their generous support for the Native Homeownership Protection Plan.
Debra Phelps Becomes 5th Homeowner in Thunder Valley Regenerative Community
Although many things came to a halt with the onset of the COVID-19 pandemic, some aspects of life carried on. After nearly a year of hard work and dedication, Debra Phelps, a Sisseton Wahpeton Oyate tribal member and a Marine Corps veteran, became a first-time homeowner at the end of March, when she purchased a 3-bedroom, 1 ½ bath home in the Thunder Valley Regenerative Community on the Pine Ridge Reservation in South Dakota.
Although she hadn’t thought of it yet, Debra began preparing for homeownership a year before she actually began the mortgage process. As an employee of Thunder Valley Community Development Corporation (TVCDC), she was required to complete financial literacy classes.
“I’m up there in age, so I thought I knew everything about financials. I’m glad we had to do it, though. It makes you think about things you hadn’t before,” says Debra.
That was a turning point for her. She took some steps to increase her credit score, and also started talking to her three grown children about credit. Most importantly, she began transforming her financial habits.
“I started paying attention to my spending and asking myself at the cash register if this was a need or a want,” she explains.
As time went on, Debra began thinking about aging and her future. “I didn’t want to put the burden on my kids, so that is how I started thinking about homeownership.”
Debra began working with her colleagues, Ana Garibaldi and Star Means who are part of the Housing and Homeownership Initiative at TVCDC, to become mortgage-ready, figure out the best-fit loan product, and identify potential subsidies. Ana and Star are also active participants on the South Dakota Native Homeownership Coalition’s Homebuyer Readiness Committee and Native Veterans Homeownership Committee. Debra says the most challenging thing along the way was the paperwork.
“There is a lot to know – what you are reading, what it really means. It is a scary process if you don’t know what you are doing, but Ana and Star were there to help me through it,” says Debra.
TVCDC leveraged partnerships with Oglala Sioux Lakota Housing and the South Dakota Housing Development Authority to help Debra secure over $50,000 in subsidies to offset loan processing fees and construction costs. Ana from TVCDC explains that the subsidies are a critical piece to making homeownership possible for many people, especially because construction costs in a rural area average about 20% higher than in urban areas.
“We really appreciate our partners, because the subsidies are key to making homeownership affordable on the Pine Ridge Reservation. They help keep monthly mortgage, property tax, and insurance payments within a reasonable range for our homeowners,” says Ana.
Debra says the most rewarding part of her homeownership journey was getting approved for her VA Home Loan, which was through First National Bank in Rapid City.
“I always wanted to own my own home, but I never thought I would or could. Just being able to qualify was good,” she says.
Debra loves her new home, especially the high ceilings on the first floor, natural light, and mud room that is really great for her two dogs. She is still getting used to the idea of being a homeowner, though.
“Sometimes when I turn on the TV, I worry about being too loud. I’ve lived in apartments my whole life, and I forget that I’m in my own home and I can be as loud as I want,” she laughs.
Debra looks forward to helping her children become homeowners when they are ready. In the meantime, she continues to provide guidance on credit and spending.
“This was another thing I was able to experience before them, so I can help them with it when they go through it,” she says.