LUMBEE TRIBE OF NORTH CAROLINA GAINS HUD APPROVAL TO PARTICIPATE IN NATIVE AMERICAN HOME LOAN PROGRAM

WASHINGTON - The U.S. Department of Housing and Urban Development announced today it has approved the request of the Lumbee Tribe of North Carolina to participate in a HUD guaranteed home loan program. Approval to participate in HUD's Section 184 Loan Guaranteed Loan program will enhance the tribe's ability to help more Native Americans become homeowners.

"This approval opens the door to numerous homeownership opportunities that were closed to Lumbee members," said HUD Assistant Secretary Michael Liu, who made the announcement at HUD's headquarters with Tribal Chairman Jimmy Goins and Housing Manager Marcus Bryant. "As a direct participant in the Section 184 program, the Lumbee Tribe will have the ability to leverage financing to supply immediate affordable housing opportunities for tribal members."

The 55,000-member Lumbee Tribe is concentrated in Robeson, Hoke, Scotland and Cumberland Counties in North Carolina. As a direct participant in the Section 184 program, the Lumbee Tribe will help address dire housing needs in this region by assisting those members who are not in a position to get direct mortgage loans from banks and other private-sector lenders. At present, the Lumbee Tribe is the single largest participant in the Section 184 program east of the Mississippi River with 17 closings totaling $1.7 million over the past 14 months.

HUD's Section 184 Loan Guarantee program, created in 1992, was established to address the lack of mortgage lending for Native Americans and designed to give Native American families the opportunity to purchase their own homes. Since 1995, when HUD guaranteed its first loan, there have been 2,209 loans guaranteed with a dollar-value of approximately $220 million. From 2003 to 2004 the volume of loans under the program increased by 240 percent. In 2004 there were 622 loans at $64 million up from 2003 where there were 271 loans at $27 million. The Section 184 program provides a 100 percent guarantee for mortgages on Indian lands, enabling private sector lenders to make mortgage loans to eligible Natives American families, tribes and tribal housing entities that are purchasing homes. The program can also be used to rehabilitate existing homes, build new homes and refinance higher interest rate loans.

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.

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