Native Community Development Financial Institution Relending Demonstration Program

Brian Hudson
brian.hudson@usda.gov

This demonstration program will provide loans for Native Community Development Financial Institutions (CDFIs) to use for relending to increase homeownership opportunities for Native American tribes, Alaska Native communities, and Native Hawaiian communities in rural areas

Funding must be used to provide direct loans to recipients to buy, build, rehabilitate, improve, or relocate a primary residence on eligible land. The borrower must use the dwelling as their permanent residence.

Eligible participants are entities certified as Native Community Development Financial Institutions by the U.S. Treasury Secretary.

Eligible areas:

• Tribal lands
• Land as defined in the Alaska Native Claims Settlement Act
• Hawaiian Homelands as defined in the Native American Housing Assistance and Self-Determination Act of 1996
• Areas designated by the Assistant Secretary, Indian Affairs for the U.S. Department of the Interior as being near, or next to, reservations where financial assistance and social service programs are provided to Native Americans

Loan terms:

• The minimum loan request for the participating Native CDFI is $800,000.
• The participating Native CDFI must provide a 20% matching funds contribution.
• Individual loans have terms of 33 years at 1% fixed interest.
• USDA Rural Development will defer principal and interest payments for the first 3 years of the loan.
• Relending Demonstration loan funds must be provided to individual loan recipients within 3 years of the loan closing date.

A link to the application instructions is available on the program website.

Applications may be emailed to Brian Hudson or mailed to:

USDA Rural Development
Washington State Office
Attention: Andria Hively
1835 Black Lake Blvd. SW
Olympia, WA 98512