Recommendations

Based on the findings and analysis above, the following recommendations proposed for (1) The Department of Housing & Urban Development and (2) Pueblo TDHE in New Mexico.

The Department of Housing & Urban Development Recommendations:

I. STRENGTHEN NAHASDA NON-COMPETITIVE BLOCK GRANT FUNDING

The funding capacity for NAHASDA non-competitive block grants must be strengthened and take into consideration the rise in construction cost and inflation rate today. Without proper funding support, TDHEs are not able to provide adequate housing support to tribal members. Although in 2019, HUD has attempted to offer competitive-IHBG funding as a means for TDHEs to acquire upwards at max $5 million USD. The competitive-IHBG allocation cycle is sporadic and applying is a time-consuming process in itself. Thus far less than 9% of 574 tribes have been awarded funds. In lieu of uplifting the competitive-IHBG; I propose HUD allocates at minimum $1,229,775,847 to noncompetitive IHBG funds for 2021 and makes a valid effort to adjust funds annually to keep pace with construction material cost and inflation.

II. ELIMINATE MAXIMUM RENT LEVELS CAPS FOR IHBG PROJECTS

Pueblo TDHEs are developed to primarily serve low income households on tribal land. According to HUD guidelines, any IHBG funded project has a rent cap of 30% of a household’s income and households who fall under the national or county 80% AMI are eligible for IHBG projects. The only expectation to this rule is if a TDHE provides housing to a higher income essential worker, such as a police officer or firefighter, in which they must get approved by HUD. I propose HUD seeks to offer tribes and TDHEs more self-determination in providing housing services to middle/high income tribal households who currently are not eligible for IHBG units. By permitting TDHEs to allocate at least 30% of IHBG funds to provide housing to middle/higher income households. TDHEs will be able to develop housing for households who might opt to relocate off tribal land to find built housing in surrounding cities in lieu of building new on tribal land. Lastly servicing middle/higher income households will enable TDHEs to generate more revenue collected through rent or mortgage payments that can be saved or utilized for maintenance or infrastructure development projects.

III. MAKE ACCESS TO INNOVATIVE APPROACHES TO HOUSING DEVELOPMENT MORE ACCESSIBLE TO TDHE

Create an online database featuring tribal housing development categorized by sections such as cultural development, in-house financing, LIHTC, building construction by type, cost, and more, that TDHEs can access online. For featured innovative projects, I propose financially compensating respected TDHE staff to travel and present their work to other tribes and/

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or at conferences. Creating an online platform of innovative approaches to tribal housing development, will give TDHEs around the nation exposure to new approaches to housing development they can potentially reference in their projects.

Lastly, I propose HUD provide upon either in person or online training of tips and strategies of housing development for tribal councils and boards. These in person and/or online training will help educate tribal boards of directors and councils of housing development methods and challenges that will better enable them to work efficiently with TDHEs. Providing tribal boards and tribal councils workshops on housing development can potentially help bridge the disconnect between TDHEs and internal tribal governing agencies.

IV. WAIVE DAVIS-BACON FEES

To better encourage more Pueblo TDHEs to pursue LIHTC. I propose HUD removing the Davis-Bacon wages requirement for Indian tribes pursuing federal funds via LIHTC. Cutting construction cost for tribes will better allow them to budget projects and make more projects feasible at a lower cost. Removal of Davis-Bacon construction wages has the potential to reduce construction cost anywhere between 10 - 26%. 99 The savings in construction cost will better enable tribes to develop more units at a lower cost.

Pueblo of Tribally Designated Housing Entity Recommendations:

I. IN-HOUSE OR MULTI-TRIBAL COLLABORATIVE CONSTRUCTION TEAM

I recommend Pueblo TDHEs seek to develop an in-house construction workforce team. This will help TDHEs mitigate rising cost of construction as well as provide employment opportunities for tribal members. For smaller TDHEs, I recommend partnering with surrounding Pueblo TDHEs and leverage funds together to develop a multi-tribal construction workforce.

II. SELF-REPORT RENT PAYMENT TO CREDIT BUREAU

To help tribal members establish credit histories, I recommend TDHEs explore credit reporting services. I recommend selecting a credit reporting service that can be shared with tribal members, who are interested in reporting their rent or mortgage payment histories. Reporting rent and mortgage payments to the Credit Bureau can help raise tribal members’ credit scores. A strong credit score provides tribal members more access to financial resources which further helps acquire a new home or repair an existing home.

99 Dunn, Sarah., Quigley, John., & Rosenthal, Larry. (2005). The Effects of Prevailing Wage Requirements on the Cost of Low-Income Housing. Industrial and Labor Relations Review, 59(1), 141-157. Retrieved from www.jstor.org/stable/25063019

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III. UTILIZE THE HEARTH ACT

The HEARTH Act provides tribes the ability to lease tribal land for public, religious, educational, recreational, business, and other purposes requiring the grant of long-term leases without the approval of the Secretary of Interior’s Bureau of Indian Affairs. This selfdetermination rooted policy offers tribes the opportunity to accelerate economic development and generate revenue that can be captured through lease agreements. Through the HEARTH Act, tribes can potentially create construction regulations standards that explicitly waive all Davis-Bacon wage fees on all project types. Waiving Davis-Bacon wages can help a tribe save upwards of 10-26% on construction cost. 100 I recommend tribes immediately begin the procedures to apply for approval from the BIA to utilize the HEARTH Act.

IV. ESTABLISH STRATEGIC PARTNERSHIPS AND ALLIANCES

The challenges faced by TDHEs are unique and vary by tribe. The high expectations of TDHEs to execute and perform in a historically anti-Indian field and with increasingly limited funds can be overwhelming. To help ameliorate some of these complex challenges, I recommend Pueblo TDHEs consider partnering with universities. Universities or research institutions can potentially provide TDHEs additional skilled researchers/labor to help address complex issues as well as connect TDHEs to other additional resources.

V. MULTI-TRIBAL PUEBLO BANK

Despite HUD’s efforts through the Section 184 Home Loan program, that incentivizes private lenders to provide tribal members mortgages. Pueblo TDHE housing directors and national studies are showing many tribal members are routinely denied housing loans. As a result, Pueblo TDHEs find alternative solutions to provide tribal members access to capital and loans through funds acquired from grants. To better collectively assist all Pueblo tribes in the region, I propose within the next 8-10 years all 19 Pueblo tribes seek to establish a Puebloan tribal bank. Furthermore, I recommend the all 19 Pueblo tribes take cue from Pinnacle Bank, located in Iowa and owned by Sac and Fox tribe of the Mississippi, and opt to purchase a local small bank if possible, in lieu of starting from scratch. According to David Burnell, CEO/ Chairman of Pinnacle Bank, starting a new bank would require between 15-20 million in equity upfront. 101

Moreover, a Puebloan owned tribal bank could potentially provide several benefits to all Pueblo tribes and tribal members. For instance, a Puebloan owned tribal bank can work exclusively with tribal members on Section 184 Home Loan approval and help more develop housing on tribal land. Secondly, smaller tribal governments can invest at minimum between $300-$400K in investment portfolios, which is typically denied for being too small of an investment in non-Indian banks. Last, tribes can create a trust account similar to an IRA for tribal members at youth and disperse trust funds to members upon reaching a set age. A trust can further help tribal members acquire a house or repair inherited property on tribal land once they come of age.

100 101 Ibid. Dunn, Sarah., Quigley, John., & Rosenthal, Larry. (2005). Burnell, David. (2020, March 16). Pinnacle Bank Interview [Phone].

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