Copyright © 2002 NLThomas
All Rights Reserved

Cherokee Nation Principal Chief
Chad Smith announces the new
$50 million dollar housing program,
during a ceremony in Jay, Oklahoma.

JAY, OKLAHOMA - The Cherokee Nation announced the largest Title VI housing program in history, which will provide a $50 million federally guaranteed loan to meet the housing needs of Native Americans within the Cherokee Nation’s jurisdictional boundaries in northeastern Oklahoma.

"This is a way to provide additional money to address the housing needs of Cherokee families", said Chad Smith, Principal Chief of the Cherokee Nation. "Working together with these other organizations, we are able to continue our current housing programs and help hundreds of additional families achieve the dream of home ownership. This investment is going to have a dramatic impact on the lives of Cherokee families throughout northeastern Oklahoma."

U. S. Representative Brad Carson (D-Okla.) joined representatives from the Cherokee Nation, Housing Authority of the Cherokee Nation (HACN), Bank One Oklahoma, the U.S. Department of Housing and Urban Development’s (HUD) Office of Native American Programs (ONAP), and Fannie Mae (FNM/NYSE), for the announcement of a $50 million loan. The Cherokee transaction is the largest loan ever originated under Title VI of the Native American Housing and Self-Determination Act (NAHASDA) and the largest Title VI loan ever sold to the secondary market.

"This is a tremendous opportunity for hundreds of Cherokee families to put down roots and own a piece of the land they hold sacred", said Rep. Carson, a member of the Cherokee Nation. "Through their leadership and commitment, HUD, Cherokee Nation, Bank One, Fannie Mae and the Housing Authority of the Cherokee Nation have demonstrated that partnerships can create solutions that make affordable housing possible for more Native American families."

"This Title VI program allows us to make tremendous strides in meeting the housing needs in our communities", said Ron Qualls, executive director of the Housing Authority of the Cherokee Nation. "To hold the first groundbreaking here in Jay is especially meaningful in our efforts to bring housing to our communities."

The $50 million Title VI program will be distributed in each of the 14 counties of the Cherokee Nation jurisdictional boundaries in the following manner: Cherokee ($8,620,689.66); Tulsa ($6,293,103.45); Sequoyah ($5,517,241.38); Adair ($5,344,827.58); Delaware ($5,344,827.58); Rogers ($5,086,206.90); Mayes ($4,137,931.03); Washington ($3,103,448.28); Muskogee ($2,413,793.10); Craig ($1,637,931.03); Nowata ($1,120,689.66); Ottawa ($603,448.28); Wagoner ($517,241.38); and McIntosh ($258,620.69).

"Tribal members interested in applying for this home ownership program need to be aware and cautioned that the Housing Authority does have an extensive waiting list of more than 4,200 for homeownership", Qualls said. “This Title VI Loan Guarantee Program, along with recent awards of three affordable housing programs from the Federal Home Loan Bank totaling $550,000 and the Low Income Housing Tax Credits totaling $3.877 million for two 40-unit congregate elderly apartment complexes, are examples that the Housing Authority is one of the most progressive Indian Housing Authorities in developing new programs for tribal members,” said Aylene Hogner, chairperson of the HACN Board. “As a commissioner of the board for 25 years, I fully endorse and support all Title VI efforts. I am very excited that the Housing Authority has a goal to provide in excess of over 300 homes per year, and look forward to the second Title VI announcement in 2004."

Under Title VI of the Native American Housing and Self-Determination Act (NAHASDA), tribes many obtain loans by collateralizing their current and future NAHASDA Indian Housing Block Grants for affordable housing development. These federal block grants, totaling $650 million nationally, are allocated either for the maintenance of existing inventory or construction of new single family housing owned by a tribe or it’s designated housing entity. The Cherokee Nation leveraged their current and future NAHASDA funds to finance the construction of this affordable housing activity under Title VI by borrowing funds from Bank One Oklahoma, who received a HUD guarantee for 95 percent of the loan.

"The Bush Administration is committed to helping more Americans become homeowners", said HUD Assistant Secretary Michael Liu, who sent his remarks. “HUD-guaranteed Title VI loans help increase standards of living among Native American populations and this particular loan will make the American Dream possible for almost 600 Native American families."

The $50 million loan was originated by Bank One Oklahoma. The Housing Authority of the Cherokee Nation will administer the Title VI Program. Selected families may acquire and rehabilitate existing homes or construct new single-family homes in the 14-county tribal jurisdiction of the Cherokee Nation in northeastern Oklahoma. The Title VI loan has a 20-year term, well beyond the typical horizon of most commercial banks, thereby drastically reducing monthly payments for the Cherokee Nation. The Housing Authority of the Cherokee Nation will offer tribal members 30-year low interest mortgages.

"We're extremely pleased to be a part of this cooperative effort to bring affordable housing opportunities to families living on Cherokee lands in Oklahoma", said Ed Keller, Chairman and CEO of Bank One Oklahoma. "With the cooperation of partners in the secondary market, we can help an unprecedented number of Native American families achieve the dream of homeownership throughout our state."

"Fannie Mae is committed to providing affordable housing opportunities to Native American populations throughout the United States", said Lorrie Davis, deputy director of Fannie Mae’s Oklahoma Partnership Office. "Bank One shares our vision and has joined with us to help more Cherokee families achieve the economic and social benefits associated with homeownership."

Through its American Communities Fund® (ACF), Fannie Mae purchased the Title VI loan from Bank One Oklahoma, thereby replenishing bank funds and ensuring that the Housing Authority of the Cherokee Nation benefit from the most affordable interest rates possible for the construction of homes for tribal members. ACF invests debt or equity in housing developments that support neighborhoods and community revitalization efforts. To date, total volume in the Title VI program has reached approximately $16 million. The first Title VI loan, to the Mountain Village tribe in Alaska in 2000, totaled $1.7 million; and the second, to the Catawba tribe of South Carolina, totaled $5.3 million.

Other Title VI transactions include $1.52 million to finance a mobile home park on the Salish and Kootenai Reservation in Montana, and $900,000 to finance 40 homes on the Lac Courte Oreilles Reservation in Winter, Wisconsin. In May 2002, White Sands Village, a 30-unit, single-family rental housing development on the Pojoaque Pueblo located outside Santa Fe, New Mexico, became the first federal HUD Title VI guaranteed loan to be purchased in the secondary mortgage market.

For more information about the Cherokee Nation Title VI loan program, contact the Housing Authority of the Cherokee Nation office in the area in which you reside or are wanting to reside: Area 1 (serving Cherokee County) 456-8374; Area 2 (serving Adair County) 696-2055; Area 3 (serving McIntosh, Muskogee, Sequoyah, and Wagoner Counties) 774-0922; Area 4 (serving Delaware and Ottawa Counties) 253-8315; Area 5 (Craig and Mayes Counties) 479-5128; Area 6 (serving Nowata and Rogers Counties) 342-2433; and Area 7 (Tulsa and Washington Counties) 274-3941.