WHITERIVER, Ariz. - The Apache Dawn housing project here has done well in the latest round of Federal Home Loan Bank affordable housing financing, earning funding from two separate district banks.
Native projects in Alaska, Hawaii, Utah, and South Dakota also received funding from the first of two 2003 rounds in the highly competitive Affordable Housing Program (AHP). Total funding for Indian projects in the round is in excess of $3 million.
Apache Dawn was funded by the Federal Home Loan Bank of Seattle and the Federal Home Loan Bank of Dallas. This funding was unusual, since projects are usually only funded by the district bank whose territory they are in. In this case, both grants came from out-of-territory banks (Arizona is in the district of the Federal Home Loan Bank of San Francisco).
Phase IV of Apache Dawn, which is in the process of building 250 houses on the Fort Apache reservation, received $396,000 from FHLB-Seattle and $350,000 from the FHLB-Dallas.
In the case of Dallas, the project is out-of-territory but the sponsoring financial institution, Bank of Albuquerque, is located in New Mexico, which is part of the Dallas district. Each project funded needs to be sponsored by a member institution of the district Federal Home Loan Bank (Washington Mutual FSB is the Seattle sponsor).
The Seattle funding will go to subsidize water and sewer infrastructure costs for 99 lease-to-purchase single-family homes. The Dallas funding is for construction of 71 multi-family units included in Apache Dawn.
AHP funding is intended as "gap" financing to make a project viable in tandem with other sources of money. In the case of Apache Dawn, a $25 million mortgage revenue bond was issued by the White Mountain Apache Housing Authority in a unique and complicated financial structure.
The project also is making use of the federal Department of Housing and Urban Development section 184 guaranteed Indian mortgage and the Low Income Housing Tax Credit.
A New Mexico project funded by AHP money from previous years, the Tsigo Bugeh Village, opened in July with 40 units of multi-family housing on the San Juan Pueblo. The San Juan Tribal Council donated the land, and the project got funds from the New Mexico Mortgage Finance Authority and three other sources as well as the FHLB Dallas money through project sponsor Wells Fargo.
There are 12 Federal Home Loan Banks around the country which are regulated by the Federal Housing Finance Board in Washington, D.C. They were mandated by the Financial Institutions Reform, Recovery and Enforcement Act to set aside 10 percent of their earnings for affordable housing projects.
Districts that have funded Indian housing projects include Seattle, Dallas, San Francisco, Chicago, Des Moines, Atlanta and Topeka, and total funding in Indian country has been about $35 million since program inception in 1990. The money has gone towards finance or construction of more than 4,000 homes. There are two rounds of funding each year.
The Seattle district bank also funded projects in Utah, Alaska and Hawaii in the first round of 2003 AHP funding.
In Alaska, it provided $400,000 to help the Louden Tribal Council build a 13 unit assisted living facility for elderly members of the Louden tribe. The Yukon-Koyukuk Assisted Living Home will be located in Galena. Plans also call for 1,200 square-feet of commercial space. The sponsoring institution is Wells Fargo Bank Alaska, NA.
In Hawaii, the district bank awarded $424,875 for the Kula Residential Hawaiian Homelands Lots project. This would help the Hawaiian Community Development Board construct 25 homes for low-income Native Hawaiians in Waiohuli/Kula. American Savings Bank FSB was the sponsor.
Also getting funded was the Nanakuli-Waianae Kauhalepono Project, for $324,526. The Hawaiian Community Development Board will build 25 manufactured homes for low-income Native Hawaiians, and also a commercial center for retail, restaurants and offices.
FHLB-Seattle also awarded $1.06 million for Hale Mahaolu Ehiki in Kihei. This project is building 53 one-bedroom elderly rental units, a senior center, and an adult day care building. Sponsors are Bank of Hawaii and First Hawaiian Bank; the developer is Hale Mahaolu. In 2002, FHLB-Seattle funded two Native projects in Hawaii and two in Alaska.
In Utah, FHLB-Seattle awarded $192,000 to the Aneth UNDC Housing Rehabilitation project. Zions National Bank sponsored the project, which will rehab 24 homes on the Utah section of the Navajo Nation.
FHLB-Des Moines awarded $200,000 to the Buffalo Lodge Homes project being developed by Oti Kaga, Inc. Eagle Butte, S.D., on the reservation of the Cheyenne River Sioux Tribe. It will help build 26 single-family rental units, and Wells Fargo Bank of South Dakota is the sponsor.
Robin Puanani Danner, president of the Council for Native Hawaiian Advancement, Anahola, Hawaii, was on the Seattle district bank's 2002 Affordable Housing Advisory Council. Jerald D. Smith Sr., of the New Mexico Native American Housing Initiative, Casa Blanca, NM, was on the Dallas bank's 2002 Advisory Council.