Coalition Celebrates USDA 502 Relending Pilot
The US Department of Agriculture’s Assistant to the Secretary for Rural Development, Anne Hazlett visited the Pine Ridge Reservation to meet with Four Bands Community Fund, Mazaska Owecaso Otipi Financial, and other regional partners to discuss the launch of a pilot program to increase homeownership opportunities on tribal lands. Through the 502 Relending Pilot, USDA Rural Development is partnering with Four Bands and Mazaska, both Native community development financial institutions and active Coalition members, to deploy a total of $2,000,000 to eligible Native American homebuyers located in tribal communities of South Dakota and North Dakota. According to USDA, the CDFIs’ deep ties in local communities will help them to reach homebuyers more effectively than other lenders.
The Coalition is excited to see this new development and has been actively advocating for this model as a solution to increase access to USDA’s home loan programs for Native American families. Our efforts, led by our Policy Committee Co-chairpersons, JC Crawford and Sharon Vogel, have included engaging partners and policy makers in various meetings and briefings over the past four-plus years. By creating alliances and identifying champions, we continued to raise awareness of challenges and opportunities related to homeownership and Native American communities.
We’d like to express our gratitude especially to U.S. Senator John Thune (R-SD), as well as U.S. Senator Mike Rounds (R-SD) and U.S. Representative Kristi Noem (R-SD). The South Dakota delegation requested that USDA implement the pilot and recognized that while the 502 Direct Loan program is highly utilized, only 23 of the 7,187 loans made through the program in fiscal year 2017 went to Native American families on tribal lands. We’d also like to recognize U.S. Senators John Hoeven (D-ND) and Heidi Heitkamp (D-ND) who were instrumental in launching the pilot.
The Coalition will continue working with these legislators and USDA Rural Development as the pilot experiences great success. We anticipate that the 502 Relending Program will expand throughout Indian Country and hope it will be a model for creating greater access to other federal mortgage programs on tribal lands.
Thanks to the US Department of Agriculture for contributing photos of Ms. Hazlett’s visit!
Yankton Sioux Tribe Hosts Coalition’s 5th Annual Tour & Convening
On June 6, 2018, over 50 of our members joined with more than 25 members of the Yankton Sioux Tribe for the Coalition’s 5th Annual Homeownership Tour & Convening. Hosted by the Business and Claims Committee of the Yankton Sioux Tribe, the day opened with a Veterans flag presentation and drum group, and welcome remarks by Tribal Chairman Robert Flying Hawk as well as other members of the Committee.
The convening provided the opportunity to learn about:
- The Tribe’s plans for homeownership
- Preview the Coalition’s new video series showing that “Native Homeownership is Possible”
- Share updates and accomplishments
For many Coalition members, the tour of the Reservation was the highlight of the day. During the tour, David LeCompte, the BIA Deputy Superintendent, pointed out different sites that had been identified for future homeownership development. Many of these sites already have existing infrastructure, including water, wastewater, and access to roads.
According to Tawney Brunsch, Executive Director of Lakota Funds and a Coalition member,
“I was struck by the opportunity for homeownership with all of the land available.”
As part of the day’s agenda, Coalition members also heard directly from homeowners about their experiences and the benefits of homeownership. Tribal Veterans Service Officer Dennis Rucker shared his experience in qualifying for a Native American Direct Loan from the US Department of Veterans Affairs, while Kenny Cook, the Treasurer of the Yankton Sioux Tribe, shared his experience in accessing a 502 Direct Loan through USDA Rural Development.
During reflections at the conclusion of the day, Coalition members recognized the importance of the Tribe’s support.
According to one Coalition member,
“The support we have seen from the Tribe is outstanding. Thank you to Tribal Council for promoting homeownership.”
Green Living Practices
The day following the Tour & Convening, several homeownership practitioners gathered for a training session, “Healthy Homes, Healthy Communities.” Focusing on eco-friendly living practices, the training was born out of recognition of the importance of incorporating healthy living practices into post-purchase counseling. It also took into account how green practices can reduce utilities and maintenance costs associated with homeownership, which is a top priority for low-income communities. Training participants were immersed in lessons on using traditional plants, incorporating efficiency into daily habits, and utilizing nontoxic products for maintenance.
Ana Catches, Homeownership and Housing Initiative Coordinator at Thunder Valley Community Development Corporation, attended the training and said this,
“I was able to learn about traditional plants – how they are used for different remedies for homes and families and for clean air quality in homes. I learned about behavior on how to be a smart homeowner and consumer when making purchases on building products and cleaning supplies, and when building a new house to avoid products with high volumes of VOC.”
Upon completing the training, attendees all agreed that practicing sustainable and green living to create a healthy home environment was well worth the investment as it reduces long-term expenses for homeowners and their communities.
Coalition Partners Join Forces to Make Homeownership Dream a Reality
In early June, Sherry Morgan, an enrolled member of the Crow Creek Sioux Tribe, realized her dream of homeownership with the help and support from several of our Coalition members. She now owns a home located on her parents’ leased land where she lived as a young girl.
In recognizing her great accomplishment, a celebratory event was held at Sherry’s home on June 5, 2018, and attended by several partner organizations, family, and community members. During the event, a Crow Creek elder blessed Sherry’s home, and an honor song was performed by the local drum group Bad Nation. USDA Rural Development Director, Julie Gross, presented Sherry with a certificate, and a meal was shared by all who attended.
During the event, Sherry said,
“The feelings are overwhelming for me as a first-time homeowner. Having this home built on the previous site of where my mom and dad lived makes it bittersweet.”
The innovative way in which Coalition members worked together created a path to homeownership for Sherry. This project is USDA Rural Development’s first 502 New Construction Direct Loan with the South Dakota Housing Development Authority’s Governor’s House Program on the Crow Creek Indian Reservation. USDA Rural Development leveraged the 502 Loan with Federal Home Loan Bank’s Native American Homeownership Initiative (NAHI) program through Dacotah Bank, as well as the Crow Creek Housing Authority to assist Sherry with the purchase of the Governor’s House. She also received funds through the Homes are Possible, Inc. (HAPI) grant program for closing costs.
Although Sherry’s homeownership journey was nearly two years, she was driven and committed through the entire process. She hopes that by sharing her story, it will inspire others to jump in with both feet to obtain homeownership.
Coalition Launches “Native Homeownership is Possible” Campaign
We are pleased to announce that we have launched our “Native Homeownership is Possible” campaign through a new website at www.nativehomeownership.com. The website includes a series of short videos designed to:
- Raise awareness of the concept of homeownership in reservation communities.
- Implore that homeownership is possible for Native Americans.
- Inspire and encourage Native American individuals and families to start on the path to homeownership.
In addition, the website features contacts listed by reservation and off-reservation areas that people can access to start on their path to homeownership.
We encourage all of our stakeholders to share these inspiring videos to help spread the message that “Native Homeownership is Possible.”
Coalition Members Head to Washington to Advocate for Native Homeownership
Earlier this month, representatives of the Coalition’s Policy Committee traveled to Washington, DC to advocate for policies to promote Native homeownership in conjunction with the National American Indian Housing Council (NAIHC) Legislative Conference. While in DC, the delegation held meetings with representatives from US Department of Housing and Urban Development, US Department of Agriculture, and US Department of Veterans Affairs (VA). The delegation discussed the proposed 502 relending demonstration (where Native CDFIs would relend 502 funds to qualified borrowers) as well the HUD 184 guaranteed loan product and strategies to increase the number of Native American Direct Loans (NADL) originated by the VA. The delegation also meet with the North Dakota and South Dakota Senators, and Senate Committee on Indian Affairs staff.
Featured in image: Members of the SD Native Homeownership Coalition met with Senator John Thune (R-SD) to discussion Native homeownership. From left to right, Mark Witt, Rosebud Tribal Veteran Service Officer (TVSO); Robert Dunsmore, Cheyenne River Sioux Tribe TVSO; Darrel Hernandez, Oglala Sioux Tribe TVSO; Senator John Thune; JC Crawford, Executive Director, Sisseton Wahpeton Housing Authority; and Joanna Donohoe, Co-Facilitator, SDNHOC.
Coalition Working on Multiple Fronts to Support Native Construction Industry
Recognizing that the lack of housing stock is a real barrier to homeownership in Native communities, the Coalition is working hard to support local contractors and encourage them to build more homes. We are excited about developing the following programming to support our Native construction industry:
Construction Internship Pilot Program – Summer 2017
After hearing from contractors that finding employment-ready workers is a challenge, in summer 2017, the Coalition launched a pilot internship program to place building trades students from Oglala Lakota College with local contractors. Through the program, students on the Pine Ridge and Cheyenne River Reservations gained valuable hands-on construction experience, while contractors had the chance to test out potential employees in a risk-free setting. The program was managed by our Native CDFI partners – Four Bands Community Fund on Cheyenne River and Lakota Funds on Pine Ridge – who also provided financial education classes to participants. Based on input from interns, contractors, and partners, the program was a huge success; of the 11 students who completed the internship, 9 received job offers from their contractors.
Building on this success, we plan to expand to additional tribal communities in summer 2018. To learn more about the construction internship program, click below to download your copy of the program report.
Contractor Workshop – Jan 31, 2018 – Rapid City
In January 2018, the Coalition’s Veterans Committee organized a one-day workshop for contractors focused on how to work with loan products available for building on trust land. With over 65 participants and contractors from around the state, the workshop was very well attended, and feedback was overwhelmingly positive.
According to one contractor:
“It was a great turnout. A lot of beneficial information provided and networking.”
The day’s agenda included contractor and lender perspectives on working with the HUD 184 loan, information on the VA’s Native American Direct Loan (NADL) and USDA’s 502 loan, resources provided by Native CDFIs, and recognition of the summer 2017 interns and contractors.
Inspector Certification Training – February 27-March 2, 2018 – Rapid City
Understanding that the shortage of certified building inspectors can delay the construction process, the Coalition is also working to increase the number of certified inspectors working in tribal communities. Our goal is to have at least one certified inspector on each reservation in South Dakota. This winter, we held an intensive four-day training to prepare participants for the inspector certification exam, with the actual exam administered on the fourth day of the training. Thirty-one participants attended the training, a combination of independent contractors and housing authority staff. The training was conducted by the International Code Council (ICC), who sent their top instructors to work with our Coalition participants. Feedback about the training was extremely positive; in the words of one participant, “the training was extremely helpful and I appreciate the opportunity to participate.” Another participant stated, “I liked the training – best one I have been at.” Recognizing the value of building codes in providing safety standards, a number of participants have requested support to promote the adoption of building codes in their tribal communities.
Coalition Members Develop Innovative Approach to Increase Native Veteran Homeownership
Two Coalition members, Mazaska Owecaso Otipi Financial (Mazaska) and Lakota Funds, have teamed up to increase homeownership rates for Native American veterans through an innovative new approach that simplifies the path to homeownership. In late February, both organizations were present to support George O’Rourke and Darrel Hernandez as they closed their VA Native American Direct Loans (NADL) and took the final steps toward homeownership on the Pine Ridge Reservation.
Colleen Steele, Executive Director of Mazaska, explains the new approach was born out of listening sessions that were hosted by the Coalition. Through the listening sessions, she heard the stories of several Native American veterans and gained a solid understanding of the barriers they face in achieving homeownership.
“Some of the veterans we talked to had been trying to access mortgage products designed specifically for veterans for more than two years, and we realized that Mazaska could make things a lot easier for them,” says Steele.
Through the new model, Mazaska provides a construction loan to the veteran and then helps them refinance with the Veterans Affairs Native American Direct Loan once the home is constructed. Mazaska also provides homebuyer education and assistance throughout the loan process. Especially during the complex refinance, Mazaska and Lakota Funds work together to provide intensive support to the homebuyer and coordinate with the U.S. Department of Veterans Affairs to keep things moving forward.
George O’Rourke comments on his experience, “The Mazaska program helped make refinancing my home with the Native American Direct Loan a simple quick process. I would like to thank Veterans Affairs for working with Mazaska to create this opportunity for future veterans.”
“It was a long time coming,” says Darrell Hernandez. “I really appreciate the help I received from Mazaska to get the loan finalized so that my family could move into our new home. I am more committed than ever to work with the U.S. Department of Veterans Affairs to streamline the Native American Direct Loan process so that other Native veterans won’t have to wait so long.”
“Our Native American veterans have sacrificed a lot by serving our country. We are glad to serve them as they pursue their homeownership dreams,” says Steele.
Coming Soon: Membership Dues
Moving Towards Sustainability
Our Coalition is Launching Membership Dues!
Over the past three years, our Coalition has been discussing strategies to sustain our operations by diversifying our sources of revenue. To date, we’ve enjoyed terrific support from our funders on the local, state, and national levels.
Last fall at our Coalition planning meeting, we created an ad hoc membership committee to explore these issues more formally. The committee met several times to discuss and develop a membership dues strategy. After approval by the executive committee, the new membership benefits and dues structure is nearly final. We will be rolling out our new membership structure in the coming weeks.
We are excited to enter this new phase of growth of the Coalition. We have heard from many stakeholders how beneficial the Coalition’s activities have been to your operations. We look forward to continuing to collaborate with partners who share our mission to increase homeownership opportunities for South Dakota’s Native people to build strong and healthy communities.
Exciting Homebuyer Education Trainings on the Horizon
Based on the input of Committee members, the Coalition’s Homebuyer Readiness Committee is planning two exciting trainings this spring to support homebuyer practitioners working to teach and support new homebuyers in their communities. We invite you to participate in these classes! Registration information will be coming soon.
Designing and Strengthening Your Homebuyer Education Program
Many of our practitioners have attended financial education and homebuyer instructor trainings and are very familiar with different training curriculums. This training will go a step further – looking at how to design a homebuyer education program, or strengthen an existing program. Discussion will include:
- What should agendas cover?
- What activities can should be included?
- How should training modules be structured?
Through this training, participants will have an opportunity to:
- Engage in hands-on activities to expand and practice their facilitation skills
- Learn and test new interactive training activities
- Create participants’ and trainers’ agendas
- Develop pre- and post- training checklists
- Learn new concepts related to adult education methodology
The training will provide valuable opportunities for peer sharing and discussions, and time to for participants to enhance and strengthen their new and their existing financial and homebuyer education programs.
Creating a Healthy Home
Homeownership means more than budgets and monthly payments. Homebuyer educators can also share important information about home maintenance and creating a healthy home environment. In this class, we will look at practical energy-saving tips, how to make non-toxic, healthy cleaning products with readily-available materials, and how healthy homes contribute to healthy communities. We will also spend time looking at local, native plants and their uses.
Coalition Members Learn How to Integrate Coaching into Homebuyer Readiness Programs
In November, 17 practitioners in the Native homeownership field completed a three-day training where they learned about new financial coaching methods to integrate into their programs. The training, hosted by the Coalition and co-facilitated by CNM Ingenuity and Seven Sisters Community Development Group, focused on a coaching model that is designed to empower clients. Different from the traditional case management model where practitioners advise clients, coaching asks powerful questions so that the client can identify their own goals and create their own path to attain those goals.
“This approach reminds me of how our elders talk to us. They allow silence and reflection so you know what you need to do,” says Vickie Oldman John of Seven Sisters who helped facilitate the training.
Training participants learned how to avoid reacting to crises along with several important components of coaching, such as whole body listening and personal self-talk. They also participated in several interactive exercises where they were able to put their new skills to the test.
“Learning the tools to be a financial coach has been an exciting process. It forces you to think outside the box to come up with creative questions,” says Kimberly Claymore from Cheyenne River Housing Authority.
The training also included a segment on how to integrate the coaching model into an organizational culture. This segment allowed participants to brainstorm ideas and develop plans on how to use this new method in their work with clients.
“Financial coaching is something I’ve been interested in since I began my job as an Individual Development Account coach. I plan to put my financial coaching training to immediate use,” said Elaine MatoTama Hece from the Oglala Sioux Tribe Partnership for Housing on Pine Ridge.
The financial coaching training was inspired out of a need expressed by the Coalition’s Homebuyer Readiness Committee who established it as a milestone to complete in 2017. All training participants received text book and a financial calculator.