Policy & Advocacy

Building a Foundation for Homeownership in Indian Country

While homeownership in general has been on a decline across the United States, it is increasing on reservations in South Dakota. More tribes are recognizing the capacity for homeownership to build individual and community wealth, wellness, and stability, thanks in large part to individuals from tribal communities who have become strong homeownership advocates.  Homeownership advocates Sharon Vogel and JC Crawford, for example have both worked tirelessly in their respective communities to tackle the unique obstacles related to becoming a homeowner on their reservations, and others are taking notice.

Government policies that dismantled traditional ways of living in tribal communities have created a housing system that largely keeps people in a system of life-long renting, preventing families from building their personal equity and assets. As tribal communities begin to revitalize and empower themselves economically, government prescribed housing options are continuing to fall short of what many tribal housing authorities see as necessary to adequately serve their communities. Families of various income levels often compete for the same housing since a limited housing stock is available.

“The thing about housing on reservations is we focus so much on low income housing, which is necessary” says Elsie Meeks, former USDA – Rural Development State Director in South Dakota.  “But we’ve also filled up a lot of houses that could have gone to low income families with people that could afford to buy homes and benefit from homeownership.”

Sharon Vogel, Executive Director of the Cheyenne River Housing Authority, sees homeownership as a strategic tool for strengthening tribal communities. Her work helps families have a comprehensive understanding of the complex process of Native homeownership and their options in accomplishing homeownership. “There are far reaching impacts of homeownership that go beyond financial benefits,” says Vogel. “Homeownership really puts families in control. People can decide everything from the location of their home to the design of it, making sure the home meets their family’s needs. Research shows that children who grow up in a family home that is owned have better outcomes in school.”

On the Sisseton Wahpeton reservation in South Dakota, Housing Authority Executive Director and homeownership advocate James “JC” Crawford also works to co-create a more successful housing system for his tribe. For instance, to address the issue of banks that were hesitant to lend in Native communities, Sisseton Wahpeton created a “risk pool” that would enable the tribe to purchase any home potentially in foreclosure, and resell the home to another tribal member.  By thinking ahead, JC helped put lenders at ease and helped ensure that potential homeowners have the opportunity to build their future through homeownership.

“In Indian Country the nature of things is that ‘homeownership isn’t for us’ is a common mentality,” says Crawford, “but I think when we are looking at how we create self-sufficiency in our tribes, we are using our sovereignty to move out of the cycle of renting and into building our equity through homeownership.”

by Justin Williams

Sisseton Wahpeton Oyate Housing Authority Secures Victory Through Advocacy!

Through a persistent effort, the Sisseton Wahpeton Oyate Housing Authority has secured an important tax victory which will result in more affordable mortgages for tribal members. Through this effort, individual home buyers constructing their homes have been granted a sales tax exemption for “Indian Use Only Projects,” which means that they will not have to pay sales tax on materials used to build their homes on trust land.  According to JC Crawford, Executive Director of the Sisseton Wahpeton Housing Authority, “eliminating the sales tax makes a real difference for home buyers.  At the end of the day, the savings can determine whether or not one of our tribal members can qualify for their mortgage.”

Initial advocacy efforts around the sales tax provision began back in 2012, when five families building in the Long Hollow subdivision filed a request for consideration of the tax exemption – which is  one-page, on-line fillable form.  When their request was denied, the Sisseton Wahpeton Oyate and their legal group got involved, and the tribal chairman set up a meeting with the Governor.  Following this meeting, the decision to deny the exemption request was reversed, and the exemption was granted.  Through the exemption process, the contractor building the home on trust land gets a letter indicating that all materials purchased for the home will be exempt from state sales tax.

When a new group of families began home construction in June 2016, the Housing Authority assumed that based on the prior decision, their exemption requests would granted.  They were surprised to learn in August 2016 that the requests were denied.  The Housing Authority worked with the Sisseton Wahpeton Oyate Tax Office to begin advocacy efforts once again to secure the exemption for tribal families, and in November 2016, a tribal delegation traveled to Pierre to meet with the Secretary of the SD Department of Revenue, Andy Gerlach.  In this meeting, the delegation needed to show that the tribe had involvement with families throughout the home construction and buying process. At the meeting, the decision to deny the exemption was reversed, and the exemption was granted.

According to Angie Johnson, Administrator/Counselor of the T Yamni ~ Sisseton Wahpeton Oyate, this policy victory shows the importance of “pushing forward, pushing forward, and not giving up.” She states, “What’s critical here is that we’re saving our homebuyers money.  Most are low-income, and we try to save as much as we can on their home – which they’ll have for the rest of their lives.”

by Justin Williams