May 30, 2007
COEUR d'ALENE TRIBE "INDIAN AREA" EXPANSION
Action Increases Homeownership Opportunities For Native Americans throughout Idaho
SEATTLE - The U.S. Department of Housing and Urban Development approved the Coeur d'Alene Tribe's request to expand its "Indian area" to include the entire state of Idaho. This approval allows all members of federally
recognized tribes wider use of a HUD guaranteed home loan program that will help Native Americans in Idaho
The Coeur d'Alene Tribe is joining a growing number of tribes across the country using HUD's expansion of the
Section 184 Loan Guarantee program to increase the number of Native American homeowners outside reservation boundaries. Tribal housing agencies can now designate wider regions as an "Indian area" – meaning tribes can go beyond their reservation borders to help tribal members and members of other federally recognized tribes to obtain loans through the Section 184 program. Allowing the expansion of tribal Indian areas provides greater opportunity
for banks and other lenders to make mortgage loans to Native Americans.
The Section 184 program offers a very low downpayment (1.25% to 2.25% based on loan amount) and high loan
limits (150% of the FHA limit for the area) – which make the program very attractive. Loans are not limited to low income borrowers. Because the mortgage is 100 percent guaranteed by HUD, lenders apply more flexible
underwriting criteria. Private sector lenders can make mortgage loans to eligible Native American families, tribes,
and tribal housing entities. The program can also be used to rehabilitate existing homes, build new homes, and refinance higher interest rate loans.
From inception of the program in FY 1994 to date, the HUD Section 184 Indian Home Loan Guarantee Fund has guaranteed approximately 4,381 home mortgage loans worth over $554 million for Native American families living in Indian Country. Mortgage financing on tribal trust lands is available only for those tribes that are participating 184 tribes.
The Section 184 program has increased in volume by 126 percent from 2005 to 2006; from 634 loans and $76 million to 1,139 loans and $172 million. HUD anticipates insuring more than $200 million in fiscal year 2007.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.