Publicity was given to the program and applications began to arrive. In September 1976 a delivery system was developed by the Tribal Housing Corporation through meetings with the Minnesota Housing Finance Agency, our accountants, attorneys and bankers, insurance companies and tribal leaders. Thus, the only Indian operated Home Loan Program in the United States was established. The success of the Tribe's Program has been acknowledged by many authorities including the Bureau of Indian Affairs, the Farmers Home Administration, the U. S. Dept. of Housing and Urban Development and the Minnesota Housing Finance Agency. The first loan was closed with construction beginning on January 9, 1977. Now three years later, the Minnesota Chippewa Tribal Housing Corporation Home Loan Program has become a substantial lender with 257 mortgages worth $6,964,995 from appropriated funds from the Minnesota State Legislature. Who Is Eligible? * At least one spouse must be an American Indian enrolled in a federally recognized tribe and must plan to reside in the home being built or purchased. The family must have an annual adjusted gross income of not over $16,000. This refers to the yearly income of the family less certain deductions allowed by the Housing Corporation. The family must be a reasonable credit risk with financial ability to repay the mortgage loan. Tribal - Three Year Accomplishments Total State Funding - three years - $7,027,200. Net worth of Minnesota Chippewa Tribal Housing Corporation January 1, 1980 - $7,099,118. Total homes occupied as of January 15, 1980 231, under construction - 19, homes under development - 9. Utilization of revolving funding - 10 homes which were recaptured or sold were financed - $291,734. 9 homes were also financed from revolving funds $289,705. total financing by the Corporation was $581,439. - 19 additional homes. Indian labor - 90% of the contractors used were American Indian. Locations on reservation 223 homes - off reservation and rural 16 homes - urban 18 homes. Delinquency rate as of January 1980 - 2.9%. New Construction costs achievable - 3 bedroom split level $36,500 or $34 to $36 per sq. ft. 2 bedroom $31,200 or $29.75 per sq. ft. (costs include lot, water and septic). Housing Need In reviewing the general conditions of Minnesota Chippewa Tribal housing, it is immediately apparent that conditions are substandard. Housing surveys have revealed that more than 40% merit replacement, 56% needed either extensive repair or complete replacement. In other words, slightly more than six of every ten homes is considered in inadequate condition. Sewage Facilities 21% of the housing surveyed lacked inside plumbing. Overcrowded 16% of the housing is classified as severely overcrowded (more than 1.51 persons per room). * 33% of the housing is classified as overcrowded (more than 1.01 persons per room). It is the ultimate goal of the Minnesota Chippewa Tribal Executive Committee to develop mortgage financing for 500 tribal families. This goal is now only half accomplished. With the continued support of the Minnesota State Legislature, it is anticipated that this goal can be reached by 1983. At this point, the Tribal Home Loan Program could, without additional appropriations through the revolving basis of the program, develop an additional 50 units of housing per year thereby providing continuous home ownership opportunities for Minnesota Chippewa Tribal families. For further information contact, P. O. Box 217 Cass Lake, Minnesota 56633 Mr. LUNDINE. Thank you both very much for providing very valuable testimony. The subcommittee will be adjourned until 2 p.m. [Whereupon, at 11:15 a.m., the hearing was recessed, to reconvene at 2 p.m., this same day.] AFTERNOON SESSION Mr. AUCOIN [presiding]. The subcommittee will come to order. This afternoon we will resume the hearings on the Indian and Alaskan Native housing programs. This panel this afternoon will be the Indian housing authority directors. We have with us. Mr. Roy Cleveland, the executive director of the Navajo Indian Housing Authority, and we welcome you, sir, to the subcommittee; Mr. Lloyd LeBeau, who was here yesterday, and we welcome you back, executive director of the Cheyenne River Housing Authority; and third, Mr. Ronald Froman, executive director of the Creek Nation Housing Authority. Gentlemen, we appreciate your taking the time to give this subcommittee your insights into the matter we are holding hearings on. Mr. Cleveland, I would like to recognize you first, if I may. We have your testimony and it will be entered into the record. If you would like to summarize your statement, we would be happy to hear from you at this time. STATEMENT OF ROY J. CLEVELAND, EXECUTIVE DIRECTOR, NAVAJO HOUSING AUTHORITY Mr. CLEVELAND. Thank you. Mr. Chairman, members of the subcommittee, I am Roy J. Cleveland, executive director of the Navajo Housing Authority. We have submitted a statement on behalf of the Navajo Housing Authority. In addition to the statement, we have submitted a prototype cost study which was done by the Navajo Housing Authority. Mr. Chairman, I would like to briefly summarize my statement. The Navajo Housing Authority was chartered by the Navajo Tribal Council in May of 1963. This charter enabled the Navajo Tribe to participate in the low-income housing program which was available at that time in 1963. It was recognized that there was an immediate need to develop 10,000 dwelling units for the Navajo families. As you may know, the Navajo Nation is 25,000 square miles, which is equivalent to the size of the State of West Virginia. There is a population—the current population is in excess of 155,000. Currently our goal has been to develop about 1,000 dwelling units per year, but we have not been able to do so. What happened to our objective in developing these units? There were numerous things involved. If I may do so, Mr. Chairman, in our report which we have submitted, on page 5 it outlines various problems that we are faced with, and I would like to read those. And these are the recommendations of the Navajo Housing Authority for the subcommittee to look into. Mr. AUCOIN. Please do. |