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Tunica-Biloxi Housing Authority and Hibernia to help Native Americans become homeowners with first-time grant from Federal Home Loan Bank of Dallas.

NEW ORLEANS, LA - Heather and Willie Casiano had spent nearly 18 months trying to get a traditional mortgage loan so they could move from their single-wide trailer in Jennings, La., into a larger home to accommodate the massive amount of medical equipment and supplies needed to keep their two sons alive.

The Casiano Family - A kiss from dad. Keeping these two special children alive requires a houseful of medical equipment and supplies, but parents Willie and Heather Casiano could only afford to rent trailer. Caleb, 2, and Baron, 3, suffer from mosaic variegated aneuploidy and microcephaly, rare and severe genetic disorders that have stunted their growth and caused various medical problems.

"The house just got small fast," recalled Mrs. Casiano, whose husband is a member of the Tunica-Biloxi tribe. Their sons - Caleb, 2, and Baron, 3 - suffer from mosaic variegated aneuploidy and microcephaly, rare and severe genetic disorders that have stunted their growth and caused various medical problems. "We have oxygen tanks, we have medical equipment, we have five cases of formula per child per month, and we have a nurse in the house now, too. So there are not just four of us but five."

But because the Casianos have a low income and lots of expenses, the answer was always the same. "They didn't want to work with us. We tried applying to banks and to a whole bunch of places, but we didn't get approved," she said. "Then I opened the tribal newspaper and read an article about the tribe wanting to help families get a home."

She called the Tunica-Biloxi Housing Authority and reached housing coordinator Arlene Leviege. Before long, Leviege was working with Laurie Vignaud Marshall of Hibernia National Bank on the Casianos' behalf.

"There were some real challenges concerning qualifying them for a mortgage," said Marshall, Hibernia's vice president and affordable-housing manager. "Their debt-to-income ratio was an issue, and the type of property they wanted did not fit the norm. We had to change the package about three times, and it took us about six months. But, by being very patient, working through various entities, working with the Tribal Council and having my boss, Willie Spears, step up and get involved, we were able to figure out a way to make this work. We did it."

Last Thanksgiving, the Casiano family moved from the single-wide trailer into a new, double-wide manufactured home.

"It's like a mansion," Mrs. Casiano said. "We have so much room for everything." She is deeply grateful to Hibernia for helping when others would not. "They're a wonderful bank," she said. "Hibernia is a bank with people who have a heart and went out of their way to help us."

Spears, president of Hibernia Community Development Corp., said the Casianos "are a perfect example" of how Hibernia is living up to its purpose of helping people achieve their financial goals and realize their dreams.

"Their dream was to own a home. It was a very complex situation with a lot of challenges, but we were committed to helping them overcome those obstacles," Spears said.

Along the way, Marshall and Leviege developed a shared determination to help other members of the Tunica-Biloxi tribe become homeowners. Their joint effort resulted in an application to the Federal Home Loan Bank (FHLBank of Dallas) for a $50,000 grant to help 15 tribe members purchase homes anywhere in Louisiana. That application was approved late last year, and Marshall and Leviege are now working to identify the families who can benefit from the affordable-housing initiative.

The Tunica-Biloxi grant will provide up to $5,000 for each family to help with the down payment, cover closing costs, reduce the principal amount of the mortgage or assist with other expenses related to the home purchase.

The FHLBank of Dallas is a privately owned wholesale financial institution that provides low-cost funding and grants to its members, which include commercial banks, credit unions and insurance companies.

Officials of the FHLBank of Dallas say the Tunica-Biloxi grant is unusual. Not only is it the first ever awarded in Louisiana for tribal housing, but it also is one of only a handful nationwide to go to a tribe for single-family homeownership. Most Native American housing grants are for single- or multi-family rental units or rehabilitation, as opposed to home purchases.

"Typically, you have other obstacles to overcome when dealing with housing for Native Americans," said Sonia Brown, FHLBank of Dallas senior vice president and director of industry communications. "In many cases, you're dealing with tribal land, and it's more complicated, because there are restrictions on tribal property."

"Assuming all goes as planned, this will show other financial institutions how to work for homeownership on Native American land," added Criss Murdoch, senior vice president of community investment for the FHLBank of Dallas.

The Tunica-Biloxi tribe consists of 921 members, many of whom live on or around the reservation in Marksville. Last year, the tribe surveyed members and found about 30 families interested in buying a home and with incomes at or below 80% of the area's median, which is the requirement for the FHLBank of Dallas Affordable-Housing Program.

Of that 30, Leviege and Marshall narrowed the group to 15 households that could be mortgage-ready in 12 months. They now are working with those families on their credit, finances and mortgage applications.

"We want to teach them the value of their investments. The process may be a little time-consuming, because you want to make sure they're making wise choices," Marshall said. "Twelve months is enough time to help educate them and make them better consumers."

The biggest problem facing most potential homeowners is lack of money for a down payment, Leviege said. The FHLBank of Dallas grant of up to $5,000 to each household can help with costs associated with the purchase, Marshall said. The tribal housing authority also will provide $5,000 per family to help with expenses. But, typically, the family may still be as much as $10,000 short. So Marshall will step in, check other available mortgage products and seek additional gap funding.

"We may have to go through three or four scenarios to find a product that works," Marshall said. "It's a matter of pooling every resource out there and bringing the money to the table. Not everybody takes the time. That's my job. Not every lender has someone on staff whose job is to find affordable-mortgage products and grants."

Marshall and Leviege said that once the first 15 families are settled in homes of their own, they expect to seek FHLBank of Dallas affordable-housing grants for additional low-income Native American families on the reservation.

A Forbes 500 company, Hibernia has $16.3 billion in assets and 260 locations in 34 Louisiana parishes and 16 Texas and two Mississippi counties. Hibernia Corporation's common stock (HIB) is listed on the New York Stock Exchange. Product and service information, and other useful data are available on Hibernia's web site. Requests for information about products and services can be e-mailed to mailus@hibernia.com.