[Senate Hearing 111-756]
[From the U.S. Government Publishing Office]
S. Hrg. 111-756
INNOVATIVE SOLUTIONS TO ADDRESSING HOUSING NEEDS IN OUR INDIAN
COMMUNITIES
=======================================================================
JOINT FIELD HEARING
before the
COMMITTEE ON
BANKING,HOUSING,AND URBAN AFFAIRS
and the
COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED ELEVENTH CONGRESS
SECOND SESSION
ON
EXAMINING SOLUTIONS TO THE HOUSING NEEDS IN OUR INDIAN COMMUNITIES
__________
AUGUST 25, 2010
__________
Printed for the use of the Committee on Banking, Housing, and Urban
Affairs
Available at: http: //www.fdsys.gov /
----------
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COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
CHRISTOPHER J. DODD, Connecticut, Chairman
TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama
JACK REED, Rhode Island ROBERT F. BENNETT, Utah
CHARLES E. SCHUMER, New York JIM BUNNING, Kentucky
EVAN BAYH, Indiana MIKE CRAPO, Idaho
ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee
DANIEL K. AKAKA, Hawaii JIM DeMINT, South Carolina
SHERROD BROWN, Ohio DAVID VITTER, Louisiana
JON TESTER, Montana MIKE JOHANNS, Nebraska
HERB KOHL, Wisconsin KAY BAILEY HUTCHISON, Texas
MARK R. WARNER, Virginia JUDD GREGG, New Hampshire
JEFF MERKLEY, Oregon
MICHAEL F. BENNET, Colorado
Edward Silverman, Staff Director
William D. Duhnke, Republican Staff Director
Erin Barry, Legislative Assistant
Kenneth Martin, Legislative Assistant
Elli Wicks, Staff Assistant and Tribal Liaison
Beth Cooper, Professional Staff Member
Dawn Ratliff, Chief Clerk
Shelvin Simmons, IT Director
Jim Crowell, Editor
______
COMMITTEE ON INDIAN AFFAIRS
BYRON L. DORGAN, North Dakota, Chairman
JOHN BARRASSO, Wyoming, Vice Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
KENT CONRAD, North Dakota LISA MURKOWSKI, Alaska
DANIEL K. AKAKA, Hawaii TOM COBURN, M.D., Oklahoma
TIM JOHNSON, South Dakota MIKE CRAPO, Idaho
MARIA CANTWELL, Washington MIKE JOHANNS, Nebraska
JON TESTER, Montana
TOM UDALL, New Mexico
AL FRANKEN, Minnesota
Allison C. Binney, Majority Staff Director and Chief Counsel
David A. Mullon, Jr., Minority Staff Director and Chief Counsel
(ii)
C O N T E N T S
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WEDNESDAY, AUGUST 25, 2010
Page
Opening statement of Senator Johnson............................. 1
Prepared statement........................................... 20
WITNESSES
Shaun Donovan, Secretary, Department of Housing and Urban
Development.................................................... 2
Prepared statement........................................... 20
Theresa Two Bulls, President, Oglala Sioux Tribe, and Chairman,
Great Plains Tribal Chairman's Association..................... 9
Prepared statement........................................... 26
Responses to written questions of:
Senator Johnson.......................................... 50
Paul Iron Cloud, Chief Executive Officer, Oglala Sioux Lakota
Housing........................................................ 11
Prepared statement........................................... 27
Responses to written questions of:
Senator Johnson.......................................... 50
LeRoy Quinn, Jr., Executive Director, Sisseton Wahpeton Oyate
Housing Authority.............................................. 13
Prepared statement........................................... 32
Responses to written questions of:
Senator Johnson.......................................... 51
Russell Sossamon, Treasurer and Member of the Board, Region IV,
National American Indian Housing Council....................... 15
Prepared statement........................................... 33
Responses to written questions of:
Senator Johnson.......................................... 54
Additional Material Supplied for the Record
Statement submitted by Charles W. Murphy, Chairman, Standing Rock
Sioux Tribe.................................................... 58
Statement submitted by Colleen Steel, Executive Director, Mazaska
Owecaso Otipi Financial, Inc................................... 59
Statement submitted by Amos Prue, CEO, Sicangu Wicoti Awayankapi
Corporation.................................................... 61
Statement submitted by Deborah DeSantis, President and CEO,
Corporation for Supportive Housing............................. 63
(iii)
INNOVATIVE SOLUTIONS TO ADDRESSING HOUSING NEEDS IN OUR INDIAN
COMMUNITIES
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WEDNESDAY, AUGUST 25, 2010
U.S. Senate,
Committee on Banking, Housing, and Urban Affairs,
Committee on Indian Affairs,
Rapid City, SD.
The Committees convened at 10:03 a.m., at the South Dakota
School of Mines and Technology, Classroom Building Room 204,
501 East Saint Joseph Street, Rapid City, South Dakota, Senator
Tim Johnson, presiding.
OPENING STATEMENT OF SENATOR TIM JOHNSON
Senator Johnson. Good morning and welcome to this joint
hearing of the Banking, Housing, and Urban Affairs Committee
and the Senate Indian Affairs Committee.
To begin this morning, I would like to open with a prayer
and would like to call on Joann Conroy, a longtime Lutheran
minister in Rapid City, who also established the first Native
American Lutheran Church in South Dakota. She has served in
United Ministries here at South Dakota Mines. Joann is
currently the Executive Director for the Center for Restorative
Justice in Rapid City. Please stand.
Reverend Conroy. Thank you. Let us pray. Oh God, our
creator, we gather before You today as leaders and people
concerned about housing and the many issues that are
confronting our people. We gather to promote our unity, to work
together to better their life and lives.
Give to these leaders gathered here the blessing of sound
judgment, the skill of making wise decisions, and the patience
to act in the best interest of all the people. Help the leaders
to resolve any differences in the interest of justice and to
guide those who are entrusted with the Administration of
Government programs to strong and right decisions. Encourage
cooperation and unity from those who lead and those who promote
all things for the good of the people. In Your name we pray,
amen.
Senator Johnson. Please be seated.
Thank you, everyone. I would like to call this hearing to
order.
We are here to receive testimony on housing issues in
Indian Country. I am very pleased to welcome Secretary Shaun
Donovan of the U.S. Department of Housing and Urban
Development. We are honored to have him visit South Dakota and
especially at this joint hearing. I would also like to welcome
our second panel testifying this morning. In addition, I would
like to acknowledge many of our Tribal leaders that I see in
the audience, some I have known for many years, and some new
faces, as well.
Finally, I would also like to thank Dr. Robert Wharton and
his staff at South Dakota Mines for their efforts in helping to
host today's event. Thank you all, and welcome to this hearing.
I have requested this hearing to focus on the housing
crisis that we are facing in Indian Country. Yesterday, I
escorted Secretary Donovan to the Rosebud Reservation to see
conditions firsthand that we are facing here in South Dakota.
As we all know, four of the seven poorest counties in the
country are reservation counties right here in South Dakota.
Todd County, home of the Rosebud Reservation, is included in
that list.
The Census Bureau reported in 2008 that Native Americans
are almost twice as likely to live in poverty as the rest of
the population. In the same year, the GAO reported that nearly
46 percent of Native American households were overcrowded, a
rate that was almost three times as high as the rest of the
country.
According to the 2009 Annual Homelessness Assessment
Report, which was produced by Secretary Donovan's Department,
American Indians make up 8 percent of the country's homeless
population while American Indians make up less than 1 percent
of the general population.
These statistics are not news to my friends in Indian
Country. It is my hope that this joint hearing will provide
more focus on the housing shortages, overcrowding,
homelessness, and infrastructure problems our Indian Tribes
encounter. It is also my hope that this hearing reminds the
Federal Government of the treaty and trust responsibilities
that it owes to our First Americans. I look forward to the
testimony this morning and again want to welcome everyone to
this hearing. Thank you.
Secretary Donovan.
STATEMENT OF SHAUN DONOVAN, SECRETARY, DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT
Secretary Donovan. Good morning, Chairman Johnson, and I
want to thank you very personally for inviting me here today to
testify before you on ``Innovative Solutions to Housing Needs
in our Indian Communities.'' I also want to thank all of the
Tribal leaders that are here today and to say I look forward to
your testimony and to hearing your input and thoughts on
progress--further progress we can make in Indian Country.
I am pleased to be here, my third trip to Indian Country
since becoming Secretary last year, because my trips to Montana
and Alaska and now South Dakota have opened my eyes further to
the unique challenges faced in these communities, but also how
HUD investments, when made smartly, can spark community
transformation. The lessons from these trips are clear. By
bringing Federal and State agencies together with Tribal
Governments and private sector stakeholders, we can leverage
the resources and partnerships we need to create economic
stability and opportunity in Indian Country.
There are many challenges to providing safe and stable
housing for our First Americans, and today, I would like to
discuss what HUD and the Obama administration are doing to
tackle those challenges through innovation and how, going
forward, we can be a better partner. I have submitted written
testimony for the record.
First, let me say that despite the word ``urban'' in our
name, HUD has a very real presence in Indian Country. In the
past decade, the Indian Housing Block Grant Program built or
acquired more than 25,000 affordable homes and rehabbed another
52,000 units. Since it began 10 years ago, the Title 6 Loan
Guarantee Program has financed the development or rehab of over
2,000 affordable housing units, while the Section 184 program
has guaranteed more than $1.6 billion in mortgages for more
than 11,000 Indian families, all with a foreclosure rate
remaining consistently below 1 percent.
The Indian Community Development Block Grant has helped
Tribes build everything from fire stations to day care centers
and finance infrastructure projects like extending electric
service and improving water and road systems. And continuing
that commitment, just yesterday, I was pleased to announce with
you a Notice of Funding Availability making available $65
million in competitive ICDBG Grants for Tribes to apply for in
this fiscal year.
But, Mr. Chairman, even with these commitments,
historically, we on the Federal side have not always gotten it
right. Despite the financial investment, Federal Native
American housing policy has often failed to meet the needs of
Native communities. The Obama administration is committed to a
new chapter. Let me talk today about how we are doing that,
first through financial resources, but also through innovation
and making those investments in a smarter way.
The Obama administration has made an unprecedented
financial commitment to Native American housing and Native
American communities as a whole. That commitment began with the
Recovery Act, and I want to say here personally to thank you
for your leadership in ensuring that the Recovery Act contained
$3 billion dedicated to meeting the needs of Native American
communities around the country. That commitment has been
followed by a proposed investment of nearly $18.5 billion for
next fiscal year in Native American communities, a 5-percent
increase over the fiscal year 2010 budget in what you know are
very difficult financial times for the Federal Government.
Specifically at HUD, you can see that commitment in the
$700 million appropriated for the Native American Housing Block
Grant in 2010, a $55 million increase and the highest level
that program has ever seen. And it is reflected in the $510
million in HUD Recovery Act funding invested to fund new
construction, acquisition, rehabilitation, including energy
efficiency and conservation and infrastructure development
activities. This historic injection of Federal Recovery Act
funding is unprecedented. Combined with the annual Indian
Housing Block Grant funds, Tribes received over $1 billion in
housing funding for fiscal year 2009, and the impact of these
funds goes beyond just housing. It has created jobs, fostered
community and economic development, and created hope in
communities where there sometimes was none.
Here in South Dakota, where Tribes received $12.9 million
in Recovery Act formula funds and $8 million in competitive
funds, creating more than 200 jobs in the State, these funds
are making a real difference.
There are many examples of the innovative use of these
funds, whether on the Flandreau Santee Sioux Housing Authority
or at the Oglala Sioux Housing Authority in Pine Ridge. Just
yesterday, I had the great privilege to see with you examples
of the 15 different projects that the Recovery Act has funded
on the Rosebud Reservation, and as we saw, the SWA Corporation
has used that housing investment not just to create decent
housing, but also to spur economic development by building a
plant that will supply not only the housing needs of their own
reservation, but hopefully surrounding reservations and non-
reservation land, as well, creating the jobs that are so
critical to spur economic development going forward.
We also met with the Kills In Water family, who are living
in deplorable conditions with their three young children. And
despite their adversity, we also heard the hopeful news that
Mr. Kills In Water had received job training as a result of the
Recovery Act, and now that he has a full-time job is hopeful of
being able to get his own home for his family in the coming
months as a result of Recovery Act and other HUD investments.
We believe that this is important progress, Mr. Chairman.
That said, as I mentioned earlier, the challenges with Indian
housing aren't only due to a lack of funding. They also stem
from a lack of understanding when it comes to the needs in
Indian Country. These unique needs require innovative
solutions. That is why HUD is embarking on a comprehensive
needs study. Studies on housing needs in Indian communities
have been conducted in the past, but most of these studies were
limited in scope and the last occurred in 1996.
And so in consultation and collaboration with Tribal
leadership and our Federal and State partners, HUD is embarking
on a comprehensive needs assessment, and not just housing
needs. Through these partnerships, we will develop a long-term
and long overdue economic and community reinvestment strategy
looking not only at housing, but other obstacles, including
access to quality health care, schools, transportation, and
employment, and to prepare, our Office of Native American
Programs will be holding a series of seven regional outreach
workshops beginning in late fall of this year. We will invite a
diverse group, including Tribal leaders, Native housing
professionals, other Federal agencies, and community service
providers.
If our goal is to put Native communities on a sustainable
footing, then we must first understand what sustainability
means in Indian Country, and that is where HUD is targeting its
investments. For Indian Country, I have learned that building
sustainable Native communities requires sustainable Native
economies, institutions, human capital, and legal frameworks
that promote economic diversity and leverages other sources of
capital.
In that sense, housing is vitally important. We all know
that housing has a tremendous impact on a surrounding
community. But for Tribal communities, this is especially true.
I don't have to tell you, Mr. Chairman, how Tribal economies
suffer from a lack of housing. People move to border towns.
Money and resources leave the reservation. And perhaps most
devastating of all, the reservation's cultural integrity
suffers.
That is one reason I am excited that Tribes are eligible to
apply for the Regional Planning Grant Program and the Joint
HUD-Transportation TIGER II Community Challenge Grant Program
that are run by HUD's Office of Sustainable Housing and
Communities, which specifically targets rural communities. The
fiscal year 2010 appropriations bill included a $25 million
set-aside in the sustainable grants for communities that are
500,000 in population or less, and we took it one step further
to ensure that some of the funding would be awarded to even
smaller communities, targeting areas with no more than 200,000
in population.
This is all part of HUD's ongoing efforts to ensure that
the needs of our rural communities are being met. Indeed, just
yesterday, Mr. Chairman, HUD Deputy Secretary Ron Sims attended
a roundtable discussion with other deputies from the
Departments of Agriculture and Transportation and the
Environmental Protection Agency on the issue of community
development in rural areas and small towns.
Along the same lines, I want to thank you, Mr. Chairman,
for securing language in the Livable Communities Act that
creates a 15 percent funding set-aside for small communities
and specifies that Indian Tribes will be eligible to apply for
the Comprehensive Planning Grant and the Sustainability
Challenge Grant Programs.
HUD has also collaborated with the Bureau of Indian Affairs
to streamline its title status report process. Streamlining the
title process will directly impact home ownership and housing
construction, leading to increased community development and an
environment more conducive for lending on reservations. Today,
HUD and the BIA developed a Standardized National Mortgage
Transaction Process. Six joint training sessions were conducted
throughout Indian Country from February 2010 through July 2010.
The target audiences for this training include HUD and BIA
staff, Tribes, lenders, and housing practitioners.
As a result of this collaboration, the average days to
record a mortgage transaction decreased from 33 days in fiscal
year 2009 to 16 days in fiscal year 2010, or a cut of more than
half. The data also shows an increase in the percentage of
transactions completed within 30 days, from 78 percent in 2009
to 87 percent in 2010. This may seem like a technical issue,
Mr. Chairman, but it has real life implications.
Last year, I had the privilege of visiting the Northern
Cheyenne Nation in Montana. While there, I spoke with Brian
Redstar. He told me about the difficulties he encountered in
purchasing his grandmother's home. He applied for a Section 184
home loan, and because the home was located on trust land, a
title status report was needed. It took over 2\1/2\ years to
get a certified title status report from the BIA.
Based on that experience, I came back to Washington, had my
team sit down with Ken Salazar's team, and we have begun to see
the improvements that I talked about earlier, and I am pleased
to learn that Brian's transaction is now complete. I said then
that this must change, and I am proud to say that we are
changing.
This speaks to a larger point, Mr. Chairman. Whether it is
the Interagency Infrastructure Task Force or our work with
Departments of Agriculture, Health and Human Services, Energy,
and the EPA to improve financial literacy, use housing as a
platform to address health care and domestic violence and
weatherize homes to increase energy efficiency, the Federal
Government's ability to work more smartly across agency silos
is essential to our ability to promote more sustainable
economic development on Indian lands.
In all of these efforts, success won't be measured simply
by what HUD does, but whether we are able to work
collaboratively to break down Federal barriers that for too
long have kept Federal funds from effectively reaching the
Tribal communities that need the most help.
And so thank you again, Mr. Chairman, for the opportunity
to appear before you today to discuss the unique challenges in
Indian Country, and even more importantly, for your ongoing and
strong leadership to make sure that Indian Country has the
resources and the partnerships that it deserves. These are
difficult times, but together with a clearer understanding of
what works, what doesn't, and how we can break down barriers, I
believe we can build more sustainable reservation economies and
ensure that all Native Americans have a decent, safe,
affordable place to call home. That is our goal today.
And with that, I would be happy to answer any questions you
may have. Thank you.
Senator Johnson. Thank you, Secretary Donovan.
We have talked previously about travel eligibility for the
HUD-VASH program. One of the things that we saw yesterday was
the Rosebud Sioux Tribe's soon-to-be-opened homeless shelter
that is a cooperation of HUD and VA. This would seem to be an
ideal place for HUD-VASH. Can you discuss why HUD-VASH isn't
available to Tribes? Could they be made eligible through
regulations, or would it need to be done legislatively?
Secretary Donovan. I think it is important that we discuss
the eligibility of Tribes for VASH as something that might be
changed in legislation going forward. We are having
discussions, as you know, right now about the 2011 budget
process, and I do believe that that could be one way to attack
the needs.
But let me speak for a moment about the broader needs
around homelessness. Obviously, veterans are an important piece
of the puzzle. Too large a share of our veterans are homeless.
Just as Indian Country and Native Americans make up too large
of a share of our homeless, the same is true of veterans. But
those needs go beyond veterans, as well, and that is why this
year, for the first time ever, we created a targeted program
aimed specifically at rural homelessness. And so we have $91
million proposed in our 2011 budget that would be directed at
the needs of homelessness in rural areas and in Indian Country
specifically.
As you know, homelessness is different in rural areas,
whether it is, as we saw yesterday, families doubling or
tripling or quadrupling up in small homes, the manifestation of
homelessness is different in Indian Country, and that is why we
need different kinds of solutions and we are doing that through
a targeted rural homelessness program for the first time in the
country's history.
Senator Johnson. Do HUD, the VA, and USDA Rural Development
adequately coordinate their efforts to support Indian
communities?
Secretary Donovan. I think the honest answer to that,
Senator, is that we have begun to coordinate better, but there
is more work that we can do. One of the reasons I think this
trip has been important and why I look forward to the testimony
is to hear more specifically about the kind of coordination
that we could do.
I talked in my testimony about the title status report
process as being one example of where a lack of coordination
between HUD and BIA stood in the way of economic development
and access to home ownership. But there is more that we could
do. The meeting that I talked about that happened yesterday
between my Deputy Secretary and the Deputy Secretary of
Agriculture and Transportation and also leadership from EPA is
aimed exactly at that kind of coordination that you are talking
about.
And specifically, we want to make sure that the sustainable
communities investment that we are making that you fought for
in the Livable Communities Act, that that funding is not only
available to rural communities, but that we are coordinating
better in terms of the way that we bring our resources and to
make sure that we don't have conflicting rules on the way those
programs can be used.
Senator Johnson. After hearing from several housing
authorities both on and off the reservations, I introduced the
Public and Indian Housing Crime and Drug Elimination Program
Reauthorization Act. This would establish a program that was
defunded during the last Administration. Are there
opportunities within current HUD programs that could fill the
role that this program filled?
Secretary Donovan. As you know, the history here is that in
2002, the Drug Elimination Grant Program was defunded and that
the--even though activities that are targeted with the Drug
Elimination Grant Program are eligible in the general funding
under the operating subsidy that we provide, and so those kind
of activities can continue, there was not an offsetting
increase in operating funds to make up for the elimination of
that program.
And so our first priority when we came in as an
Administration was to begin to restore the operating grant to a
level that it could fund not only the basic needs of running
housing for housing authorities, but also to begin to pay for,
again, some of the kinds of activities that you are talking
about. And for the first time in many years, we have fully
funded the operating subsidy for public housing and we are
proposing once again in 2011 to fully fund that operating
subsidy, which can make a real difference for housing
authorities and being able to cover some of these expenses.
But I think we can do more than that and I applaud your
introduction of this Act. I think we should look at ways to go
beyond just fully funding the operating subsidy to ensure that
there is targeted funding. Too often, as you know, on
reservations families do not feel safe and we need to make sure
that there is funding available to ensure that housing is not
only of a decent quality, but protects our children and is
safe.
Senator Johnson. Could you talk about the announcement
yesterday you made about the block grant program?
Secretary Donovan. Well, as you know so well, housing is
only one piece of the puzzle when it comes to Native American
communities becoming stronger and more sustainable, and the
Indian Country Development Block Grant Program is our most
flexible tool to be able to do just what the title would
suggest, to build communities. And so whether it is the lack of
running water and electricity that we saw at the Kills In Water
home, whether it is the lack of adequate infrastructure,
whether it be roads or other forms of infrastructure, in too
many Native American communities today, or the lack of services
like day care that make it difficult for an adult to take up
work because they need to be home with their children because
they have no other good alternative, all of those activities
are eligible through the Indian Country Development Block Grant
Program.
I was proud to make the announcement with you that $65
million is now available through that program for this year and
we look forward to seeing some of the innovative kinds of
solutions that we saw in Rosebud and that we have seen across
South Dakota in applications for that fund.
Senator Johnson. One of the difficulties that our Tribes
and housing authorities face is budgeting. Many times, our
housing authorities have to borrow against their anticipated
Indian housing block grants. Could you explain the process and
time line involved in the notification and award process?
Secretary Donovan. This is a concern that we have heard in
a number of places and we are working hard to ensure that we
get funding out as quickly as possible. I think you saw with
the Recovery Act, for example, that we were able to get funding
out, both allocations and actual commitments, very quickly. But
one of the barriers that we have is we need to ensure that the
formula incorporates all of the needs for each Tribe that are
required by the law, and that does take some time for us to be
able to do those calculations, to make sure we have all of the
data, and then to meet the needs of the statutory requirements
that are in the program.
I think it would be a useful discussion to have with you
and the appropriators to look at ways that we might be able to
streamline that process to ensure that funding gets to all
communities around the country as quickly as possible.
Senator Johnson. Are there things that you can suggest to
fast track this process?
Secretary Donovan. What I would propose that we do is that
we put together, rather than trying to go through all the
details here, that we could put together for the record a set
of suggestions for you and the Committee on the specific
changes that might improve the process and to respond to your
question.
Senator Johnson. Thank you, Secretary Donovan, and you are
invited to join me on the dais.
Secretary Donovan. Thank you.
Senator Johnson. The second panel is invited to come
forward. This includes the Honorable Theresa Two Bulls,
President of the Oglala Sioux Tribe of South Dakota, and Paul
Iron Cloud accompanying President Two Bulls; Mr. LeRoy Quinn,
Executive Director, Sisseton Wahpeton Oyate Housing Authority;
and Mr. Russell Sossamon, Treasurer and Region IV
Representative of the National American Indian Housing Council
Board of Directors. Please come forward.
President Two Bulls, will you begin.
STATEMENT OF THERESA TWO BULLS, PRESIDENT, OGLALA SIOUX TRIBE,
AND CHAIRMAN, GREAT PLAINS TRIBAL CHAIRMAN'S ASSOCIATION
Ms. Two Bulls. Thank you. First of all, I want to say good
morning, Senator Johnson, Mr. Donovan, and all Members who are
here, all the organizations. Chairman Johnson, I, Theresa Two
Bulls, President, appear before you at this hearing on behalf
of the Oglala Sioux Tribe.
Before I proceed further, I want to thank you personally
for all the support and assistance that you have provided for
Tribal housing over the years. Your attention and contributions
to Indian housing have been enormous, and your presence here
today is evidence your continued commitment to assisting Tribes
in addressing our Indian housing needs.
It will be 50 years ago next month that candidate John F.
Kennedy announced during his campaign for the U.S. Presidency
that he would, if elected, expand the Federal Public Housing
Program to American Indian Tribes. Less than a year later after
his election, the Oglala Sioux Tribal Council created the first
Indian Housing Authority in the United States and President
Kennedy, public housing administrators, Oglala Tribal Attorney
Richard Shifter, and then-Tribal President Johnson Holy Rock
gathered in the White House Oval Office to sign documents
providing the first Indian housing funding in the country to
the Oglala Sioux Housing Authority. We did bring a picture for
everyone to see the signing of the document, over here on your
right.
I would like to take a moment, if I may, to recognize in
the audience today the presence of Mr. Johnson Holy Rock.
President Holy Rock was in 1960 and is still today a powerful
and straight-talking advocate for Tribes and Tribal housing,
and we all owe him deep gratitude for his important
contributions to Indian housing. Members of this Committee, I
present President Johnson Holy Rock.
[Applause.]
Ms. Two Bulls. In the past 50 years, through both the
Public Housing Tribal Program and now the HUD Native American
Housing Assistance and Self-Determination Act Program, Federal
assistance has helped build and modernize over 800,000 Indian
housing units throughout the United States, including 2,500 new
units and thousands of modernizations at Pine Ridge. Some of
that original housing, including the very first Indian housing
units in the country, lies just 80 miles south of where we sit
today, still standing and providing a valuable housing resource
for our people.
Though our Tribe appreciates the assistance that has been
provided by the Federal Government, I must state on behalf of
my Tribe and my Tribal members that the level of Federal
assistance has been wholly inadequate. Your assistance, I am
afraid, has not satisfied the treaty and trust responsibilities
or obligations of the U.S. Government, nor has it resulted in a
majority of our low-income Tribal members living in decent,
safe, and affordable housing.
Furthermore, our Tribal members now have to compete in 2010
with over 450 Tribes, an increase in excess of twice the number
of recipients in 1996, for a piece of the meager NAHASDA
funding pie, which in real value has actually decreased in
value in the 15 years since the Federal NAHASDA Housing Program
was created by Congress. Instead of housing conditions
improving for our low-income Tribal members, they have sadly
grown worse over the past five decades since President Johnson
Holy Rock and John F. Kennedy gathered in the White House to
herald the beginning of the Federal assistance for Indian
housing.
The Oglala Sioux Tribe does thank the Senate Indian Affairs
Committee and the Senate Banking, Housing, and Urban Affairs
Committee for holding today's hearing in the Dakotas. We
welcome your interest in, number one, better understanding of
our needs; number two, addressing the often hidden overcrowding
that certainly occurs in Indian housing in the Northern Plains;
and number three, learning how successful our Tribes have been
effective in spending American Recovery and Reinvestment Act
funds.
However, I must say, in recent years, the large needs of
large land-based Tribes like Oglala Sioux Tribe have been
marginalized in comparison to national housing and, frankly, to
many other Tribes, as well. We and many other land-based Tribes
remain the poorest in the United States. Our brave and
patriotic Tribal members deserve better and we ask for more
help. We simply need more funding and we believe it is
appropriate and wise that such additional funding be provided
to only those Tribes with the worst housing conditions, and
then only if they can demonstrate a capacity to effectively
spend such funding.
The Oglala Sioux Tribe and the Oglala Sioux Lakota Housing
offer to work with Congress, HUD, and national Tribal
associations to try to develop this new program under NAHASDA,
but the funding for this new initiative should, in our
judgment, be in addition to current funding for the existing
NAHASDA Indian Housing Block Grant Programs.
As you may be aware, Oglala Sioux Tribe and many other
large land-based Tribes are banding together under a new
advocacy group known as ``A Coalition for Indian Housing'' to
try to more effectively advocate for some of our particular
needs and interests in Indian housing. I hope that these
Committees will now begin to work with this group to find new
solutions to improving housing conditions on reservations.
Thank you, Senator Johnson, again, and we are grateful to
your Committees for coming to Indian Country to better
understand both our needs and our successes. With your
permission, I would like to reserve the right to provide
additional testimony in the next week. I will also have--I am
putting on a different hat, not--as Chairman of the Great
Plains Tribal Chairmen's Association, we do have testimony that
we would like to submit for the record.
Senator Johnson. It will be received.
Ms. Two Bulls. Thank you. Thank you very much.
Senator Johnson. Thank you, President Two Bulls.
Mr. Iron Cloud, do you have anything to add?
STATEMENT OF PAUL IRON CLOUD, CHIEF EXECUTIVE OFFICER, OGLALA
SIOUX LAKOTA HOUSING
Mr. Iron Cloud. Chairman Johnson, it is always nice to see
you. My name is Paul Iron Cloud. First, I would like to thank
both of these Committees for holding the Indian Housing field
hearing here in Rapid City near the Pine Ridge Reservation. As
a formal Tribal Chairman and current CEO of the Oglala Sioux
Lakota Housing, it is again an honor and pleasure to come
before this Committee and provide testimony on housing, an
issue of great importance to both Indians and Alaska Natives.
I, of course, also want to take a moment to express
particular appreciation to you, Chairman Johnson. Senator, you
have always been a friend and a strong advocate for Indian
housing and we thank you for both arranging the field hearing
and for your leadership on Indian housing.
There are many issues confronting Indian housing. With your
permission, I will just briefly outline or highlight six of
them today.
Number one, Mr. Chairman, there is a need to reinstate last
year's NAHASDA funding. We in Indian Country are afraid that
most Tribes and other members will be terribly impacted if the
President's proposed reduction in NAHASDA Indian Housing Block
Grants is approved or a 5-percent across-the-board budget
reduction is enacted for fiscal year 2011. If either of these
proposals is to pass, we project that the Pine Ridge--our
program alone would suffer a devastating $2.9 million cut.
Number two, we have demonstrated program capacity. The
Oglala Sioux Lakota Housing was one of only a few Tribal
housing programs in the Northern Plains to receive both
competitive and formula money under the American Recovery and
Reinvestment Act. We are pleased to say we were successful in
utilizing $7.3 million special funding and we did so in record
time. Unfortunately, in Washington, statements have been passed
that Federal Tribal housing funds are often not utilized or are
slow to be spent. We know that this is not true in the case of
the Oglala Sioux Housing and not for most Indian ARRA
recipients. Please assist us, finally, and put this to rest,
these unfounded statements.
Number three, there is a terrible overcrowding in our
housing. Many large land-based Tribes have a strong need for
additional funding. That need, however, has at times been
obscured by traditional practice in taking in our homeless
Tribal members and our practices have resulted in terrible
overcrowding in many of our units. Occupancy for a single unit
in our program often exceeds 12 to 15 persons. We welcome your
efforts and that of the U.S. Department of Housing and Urban
Development to understand this overcrowding and its impact on
families and units.
Number four, assistance is desperately needed to address
violence in the housing. These Committees will recall that
earlier this year, at both a hearing on the President's fiscal
year 2011 budget and a hearing on violence in Indian Country, I
and the Oglala Sioux Tribe provided testimony regarding
violence, gang activities, and suicides on our reservation. The
growing prevalence of this violence is really attacking and
destroying the social structure of our reservation, creating
unacceptable injuries, deaths, and a fear in our communities
and undercutting our ability to protect our units and tenants.
It is in many ways a reservation-wide situation, but Oglala
Sioux Housing, as the primary landlord on the reservation, is
uniquely impacted. The multitude of solutions will be required
if Tribes like ours are to have a chance to both respond to and
prevent this violence. There is, however, a growing
understanding on our part that increasing funding in law
enforcement, the courts, and housing alone will not be enough
and the political and the community changes will be required to
roll back such violence.
Number five, we believe, Mr. Chairman, that a new program
is needed to direct new funding to the Tribe and the greatest
housing needs. Housing needs in Indian Country vary based on
Federal funding levels and local needs. Many of the most needy
programs simply never get enough money to really improve their
housing. Often, these are Tribal housing programs of large
land-based Tribes, such as Oglala Sioux. As President Two Bulls
stated in her testimony at this hearing, the Oglala Sioux
believes that the time has come to develop an additional
NAHASDA funding block grant program that would additionally
target the Tribes most in need. Such a program would operate in
addition to NAHASDA funding.
The existing Housing Block Grant provides a floor for
funding Indian Country housing that should be maintained.
However, in addition to this block grant, a new program should
be developed for those Tribes with the most need, but funding
should go only to those that can demonstrate the capacity to
efficiently utilize the funds.
Last, number six, I would like to inform you of the new
organization, A Coalition for Indian Housing, and its new
Housing Report Card. ACIH is a new alliance of large land- and
treaty-based Tribes. Along with our membership in national
organizations such as the National American Indian Housing
Council, Congress of American Indians, we in our Tribe have
participated in this new advocacy group because we believe that
large land-based Tribes need to have at times their own voice
in Indian housing matters so that our unique issues can be
addressed.
One idea coming from ACIH is the Housing Report Card. A
copy is attached to my testimony. ACIH has developed this form
as a reporting system for Indian housing. The ACIH Report Card
is a simple, one-page self-reporting information sheet that can
be both an administrative tool for Indian housing entities and
monitoring and evaluation documents for Congress. This simple
snapshot or reporting card we believe can become an important
universal evaluation instrument for Indian housing. ACIH is now
encouraging its members and other Tribal housing programs
across the country to start using this form on a voluntary
basis.
I have submitted my full written testimony for the record,
Mr. Chairman.
Senator Johnson. It will be included.
Mr. Iron Cloud. I am glad to answer any questions that you
may have.
Senator Johnson. Thank you, Paul.
Mr. Quinn.
STATEMENT OF LeROY QUINN, Jr., EXECUTIVE DIRECTOR, SISSETON
WAHPETON OYATE HOUSING AUTHORITY
Mr. Quinn. Thank you, Senator Johnson, the Honorable
Secretary Donovan, and the members that testified before me and
our audience. On behalf of the Sisseton Wahpeton Sioux Housing
Authority and the 13,000 members of the Sisseton Wahpeton
Oyate, I wish to thank you for giving me the opportunity to
share a few of our innovative solutions our Housing Authority
has taken to address our housing needs. I have served as
Executive Director for the past 5 years. I am an enrolled
member of the Sisseton Wahpeton Oyate.
Our Housing Authority currently owns and manages about 560
units of affordable housing consisting of 472 units and 88 home
ownership units. We are a small Housing Authority that operates
22 housing sites in three counties in Northeast South Dakota.
Before I discuss some of our innovative solutions that we
have accomplished this year, I would like to thank Senator
Johnson for his leadership on Tribal housing issues and helping
us develop and implement new creative tools necessary to
develop culturally relevant, safe, decent, and affordable
housing for our Tribal members.
I also want to thank Senator Johnson and the other Members
of the Committee for approving the Indian Veterans Housing Act
and for helping expedite and advance the Responsible Tribal
Home Ownership Act, known as the HEARTH Act. Both of these
bills are vital to our Tribe, as we serve many veterans and
recognize the need to reform the Federal leasing requirements
and allow us to speed up the leasing process for individual
Tribal members, which will allow them to get into their new
homes much quicker.
Another bill that I would like to thank Senator Johnson,
and I know he addressed it earlier with Secretary Donovan, is
the Public and Indian Housing Drug Elimination Program, which
will help us reduce illegal drugs in our affordable housing
areas.
I also want to acknowledge the continued efforts of the
Committee in our joint task of improving housing conditions for
Indians across America. I am proud to relate to you today
several of the innovative solutions we have developed at our
Housing Authority under the opportunities presented under the
Native American Housing Assistance and Self-Determination Act,
known as NAHASDA. I will provide written testimony for the
record that asks for more coordination of the Federal agencies
that have resources available to American Indians, and that is
attached.
Since NAHASDA became law in 1997, the Housing Authorities
have developed an excellent working relationship with the South
Dakota USDA Office of Rural Development and have built 56
subsidized Section 515 units. This is a critical program,
because unlike NAHASDA, the 515 Program provides rental
subsidies to low-income families. We have also collaborated
with USDA Rural Development to sensibly apply and receive $2
million in set-aside funds to assist in the development of
water and waste systems in several of our affordable housing
communities. We have also built a 7,300-square-foot office
building for our Administration in cooperation with USDA. We
recently have been informed that Rural Housing Services has set
a 5-year goal to provide funding for two-hundred 504 grants and
150 home loans under the 502 Program.
In short, we have benefited greatly from our relationship
with the South Dakota Rural Development Office and their
outstanding staff. It is my understanding that our relationship
with USDA is unique and not all Tribal housing programs have
enjoyed this successful partnership we have experienced. While
this relationship is not necessarily innovative, we believe
that tribes with significant unmet housing and infrastructure
needs cannot succeed without developing a similar relationship
with USDA.
The second activity our Housing Authority has innovated is
the creation and capitalization of the Dakota Nation Housing
Development Corporation. This Corporation, created in 2005, has
successfully developed approximately 50 housing sites
designated for affordable housing. In addition, they have
successfully applied for and built a 24-unit affordable housing
complex funded with Low-Income Tax Credits and a 21-unit three-
bedroom housing project.
The third activity I would like to discuss is the creation
of T-YAMNI, a one-stop home ownership program that represents
the Housing Authority, Development Corporation, and our Home
Buyers Program. This entity is providing support for our Tribal
members with financial literacy programs, home buyer education
classes, and loan origination assistance, utilizing all lending
resources available. The program is designed to be an entry way
to home ownership with resources and support provided by the
staff.
The final innovation I would like to share with you is the
Housing Authority's purchase of a local 29-unit motel. Ten of
the units are set aside to provide transitional housing for
eligible members of the Sisseton Wahpeton Oyate. The
transitional units are supported by income from the operation
of the remaining 19 motel units. So far, the project has been a
success and is self-supporting.
I also want to report that our Housing Authority is
rehabilitating 30 of our low-rental units with the stimulus
funding we were awarded last year. We were able to create
several jobs with the funding. We are on schedule to complete
the rehabilitation project in a timely manner and within
budget.
Some of the other accomplishments achieved by the Sisseton
Wahpeton Housing Authority, that we acquired 38 FEMA trailers
in the last 3 years. We also obtained three Governors' homes
through the BIA HIP Grant. We are in the process of developing
a Title VI program through the provisions of NAHASDA. All of
these programs were established to put Tribal members in their
own homes.
Again, I thank you for the opportunity to share some of the
success stories. I am looking forward to working with you and
other Members of the Committee as we continue to meet the
housing needs of the Sisseton Wahpeton Oyate, which includes
assisting 550 families on our current waiting list.
I will address the needs factor later, but this is the
solution factor. Thank you, Mr. Johnson.
Senator Johnson. Mr. Sossamon.
STATEMENT OF RUSSELL SOSSAMON, TREASURER AND MEMBER OF THE
BOARD, REGION IV, NATIONAL AMERICAN INDIAN HOUSING COUNCIL
Mr. Sossamon. Good morning, Senator Johnson, Secretary
Donovan, and I would like to recognize our Tribal leaders here
and thank you for the opportunity to present today to this
Committee. My name is Russell Sossamon. I am the Treasurer and
a member of the Board of Directors or the National American
Indian Housing Council representing Region IV out of the
Southern Plains Region. The NAIHC is the only Tribal nonprofit
organization dedicated solely to advancing housing, physical
infrastructure, and economic development in Tribal communities
throughout the United States, the Lower 48 States and Alaska. I
am an enrolled member of the Choctaw Nation of Oklahoma and I
serve people as the Executive Director of the Choctaw's Housing
Authority.
First of all, I would like to thank you, Senator, for your
commitment to the Indian Tribes and for your efforts to
understand the treaty obligations of the Federal Government and
protect those for the Tribes and for your appreciation of self-
determination of the Tribal Governments. I appreciate you
taking the interest in the Tribes and really understanding who
we are. Thank you.
I would also like to thank the Committee for holding this
field hearing here in Rapid City and the Northern Plains, an
area that is deeply affected by the lack of housing and
adequate infrastructure. Of course, through your tours that you
spoke of, you see the need and the stark reality that exists in
our areas.
While Tribes are very appreciative of the funds that they
receive under the Native American Housing Act and self-
determination, out of necessity, we have spent a substantial
amount of time, energy, and resources exploring innovative home
design and building programs. We have to make choices between
research and development and meeting immediate Tribal needs
that you experienced on your trips. So that is why a lot of
these efforts are just now reaching fruition over the 10-year
period of NAHASDA. That is why I think particular attention
needs to be paid to the funding levels so that we can continue
research and development while we meet the acute needs that we
have.
The ARRA funding that we received was greatly appreciated.
It gave us, when we talk about budgeting, it gave us a little
flexibility in our budget to meet some of those dire needs and
continue this long-term community development plan, and that
is--everyone thinks the answer is more money. In this case, the
adequate funding really is an investment. It is making the
payoff in sustainable long-term planning.
In my oral testimony, I would also just like to highlight a
couple of the innovations that exist. These are just two
examples of many across the United States and Alaska as a
result of research, development, planning. The two I would like
to focus on is, first, the Isleta Pueblo of New Mexico and the
Puyallup Tribe of Washington State.
After familiarizing myself with these projects, it appears
that they have--their secret is to apply Tribal principles that
are part of our heritage, and basically that means just using
common sense, which a lot of times it was commonly practiced.
The Isleta Pueblo is utilizing a familiar building layout,
local natural resources, and local labor to create a green
building technique that is easily exportable to other
communities.
The lava block construction project is based on a concept
that was started in 1996 by Ken Detjen, a retired engineer.
Lava blocks, which will form a home's exterior walls, are made
out of lava cinder and cement along with other ingredients.
Lava rock walls have been tested to have an R-value or an
insulation value of 50 and can withstand up to 300-mile-an-hour
winds. The concept was introduced to the Isleta Pueblo Housing
Authority in 2007 and was well received by the Housing
Authority and the Tribal Council.
The lava block project has numerous advantages. The method
is environmentally friendly in that no drywall or sheetrock is
needed in the construction process and no insulation is
required. Lava rock walls are naturally fireproof and
soundproof, termite resistant, and maintenance-free, and the
home will have reduced energy costs because of its efficient
design and construction. Labor costs are also lower by
approximately 50 percent with lava rock homes because no
specialized training in masonry or any other construction art
are required.
In 2008, the Isleta Tribal Council approved the use of
Tribal funds to designate and create a lava block building
machine. A Memorandum of Agreement was executed between the
Tribe, Habitat for Humanity, and Lava Living LLC in which the
Tribe agreed to allow its old cinder and gravel plant to be
used in the production of the lava blocks. In doing so, the
Tribe created jobs for its citizens and created a mechanism for
providing sustainable, energy efficient, affordable homes for
their Tribal families.
On August 26, 2008, the Isleta Pueblo Housing Authority
held a groundbreaking ceremony to launch a home renovation
project for Tribal members Jose and Mary Keryte. This was the
first lava block building project in the Pueblo. The plan is
now up and running and has created jobs for Tribal members and
has been an invaluable resource in creating at least 15 newly
efficient homes for Tribal members today, and there is a
growing waiting list of people who want to participate in this
program.
In April of this year, the Isleta Pueblo Housing Authority
received a Certified Outstanding Achievement Award from the
U.S. Department of Housing and Urban Development, from their
Office of Native American Programs, for their project design
and resource conservation. Soon, the Tribe hopes to explore the
idea by selling blocks to other Tribes or nearby construction
firms--and nearby construction firms.
The Puyallup Tribe, they put--they have roots in the design
and strategy of the traditional longhouse. This design emulates
a traditional rectangular shed-roofed coastal Salish longhouse
design utilized by Tribes for centuries. The central feature of
the longhouse is a central linear common area for gathering and
circulation and private areas are accessible from the common
spaces. The concept, created by the Puyallup Tribe using the
American Recovery and Reinvestment Act funds, fuses this
traditional design with a modern townhouse courtyard structure.
The project is being constructed on a 4-acre parcel adjacent to
27 existing units and will create 10 new units in the first
phase. The design will incorporate community meeting space, be
culturally responsive, and employ green building and design
techniques.
As in a traditional longhouse, the modern building
configuration utilized by the Puyallup Tribe creates a
defensible space hierarchy of public to private space. Level
changes and material modulation create a flow and transition
from public spaces or common areas into the private space. The
conscientious design imparts ownership to individuals while
fostering active use of shared space. The Tribe has created
both one- and two-story designs, and in both models the main
floor is handicapped accessible. The one-bedroom units are
fully accessible.
In traditional longhouses, the ventilation and illumination
were provided by removing roof planks. The modern adaptation
utilizes an open roof over the courtyard to evoke this historic
strategy and employs an innovative cross-section ventilation
air system. Air will be drawn through the low windows on the
south side of the homes and exhausted through the high windows
on the north side. The same high windows allow daylight to
penetrate the space. Some of the windows in each of the homes
will face the courtyard, a common area, further embracing the
traditional concept of community living.
The Puyallup modern design embraces energy efficiency in
several ways. The solar orientation is optimized, as all the
homes are located on an east-west axis so that the windows will
have a northern exposure or southern exposure. The homes
feature generous roof overhangs so that passive solar and
daylighting strategies are employed for maximum benefit.
Compact floor designs are utilized as they are easier to heat
and cool. Other home features, such as appliances, windows,
faucets, and lighting, are all energy efficient and designed to
conserve energy in every way possible. The Tribe is also
looking forward to the future with the longhouse design as they
are exploring and researching ways to actually generate on-site
energy through renewable sources.
Both of these projects that I have described are prime
examples of the types of home building design and innovation
taking place across Indian Country today. It is our hope that
both the Committee present here today and the Tribal leaders,
as well as the Department of Housing and Urban Development are
inspired to continue the support of self-determination that was
utilized when we looked to use local natural resources to
create the sustainable economies that the Secretaries both have
urged.
And so we also encourage the Committee and the
Administration to continue with the financial support needed
not only to do the critical research and development in all of
the areas across the United States and Alaska, but also
adequate funding to meet the acute needs we see on a daily
basis.
This concludes my testimony and I would be glad to answer
any questions. Thank you.
Senator Johnson. Thank you, Mr. Sossamon.
President Two Bulls, we know that overcrowding is a
constant problem in the housing on our reservations. Can you
describe what families are experiencing in those instances and
give a rough estimate of how many families are living in
overcrowded homes? Please pass the microphone down.
Ms. Two Bulls. Thank you. According to my Housing Director,
we estimate at least a third of the homes on the reservation
are overcrowded, and that also includes not only the HUD
housing, but also private housing and individual because of the
young families having nowhere to go, so they stay with their
parents or their grandparents. So it is common across the
reservation. But we estimate it at least a third of the homes
on the reservation.
Senator Johnson. That number of homes overcrowded leads to
black mold and other unhealthy conditions. Mr. Iron Cloud and
Mr. Quinn, in your best estimate, how many additional housing
units does the Tribe need to fully house Tribal members?
Mr. Iron Cloud. I estimate 4,000 homes at Pine Ridge.
Senator Johnson. Four thousand more?
Mr. Iron Cloud. Four thousand more homes.
Senator Johnson. Yes. Mr. Quinn?
Mr. Quinn. We have a housing fair every June coordinated
with our Rural Development during Home Buyers Month and the
last estimate was 400 new houses on our reservation.
Senator Johnson. Mr. Iron Cloud and Mr. Quinn, can you tell
us about the work being done with community and faith-based
organizations on the reservation?
Mr. Iron Cloud. This year, we had a conference with faith-
based. We had the opportunity to meet with a lot of people that
are coming in, helping us with different renovations. You know,
they are well-grouped people that really helped our reservation
and that took a--you know, we had materials. Some of the faith-
based people went into these homes and not even--in not just
our homes, but individual homes and did renovation work with
them. They made handicapped accessible. They did ramps. They
were very--a group that was really out there to help Indian
housing.
Senator Johnson. Mr. Quinn.
Mr. Quinn. For the past 3 years, they have been coming up,
I think, like, from Georgia and Tennessee, and this last
summer, they were here from the end of June until the middle of
August and they painted 15 of our houses for them, both
ownership and our Housing Authority low-rent units.
Senator Johnson. Mr. Sossamon, is there enough flexibility
in NAHASDA to coordinate the efforts of Tribally designed
housing entities with other organizations if the Tribe chooses
to do so? Is there enough flexibility in NAHASDA?
Mr. Sossamon. Over time, the areas that presented
challenges and being able to meet the local conditions across
the United States and Alaska, we have come back to your
Committee and you have been instrumental in helping us to have
legislative corrections, and then we have worked through
negotiated rulemaking to correct some of the regulatory changes
that have been needed to allow us to leverage with other funds.
But there is still a significant amount of work that needs to
be done.
I think there has been progress made. There are some
initial steps been taken in the Interagency Agreements, which
NAIHC played a role in fostering and encouraging the Federal
agencies to work together to identify these barriers to provide
the maximum flexibility to the Tribes to allow for self-
determination. What works in one area is not necessary what the
focus in another area is, and one size does not fit all. And so
we can't--we find it very difficult to work with government
agencies that sometimes think seem to focus in silos and
actually contradict one another and make it very difficult for
even our Federal partners to be able to work together.
Senator Johnson. Thank you, Mr. Sossamon.
I would like to thank Secretary Donovan for his testimony
and visit here to South Dakota. The needs we face in Indian
Country are great, and I hope this puts a face to this crisis.
I would also like to thank our second panel, President Two
Bulls, Paul Iron Cloud, LeRoy Quinn, and Russell Sossamon.
Thank you for your efforts to improve housing on our
reservations in Indian communities.
We have a lot of work ahead of us to fulfill our treaty and
trust responsibilities, but it is my hope that hearings like
this shed light on the housing situation our Indian Tribes
face. I will continue to use my position on the Banking
Committee, Appropriations Committee, and Indian Affairs
Committee to work toward improving the housing on our
reservations.
For the other Members of this Committee, statements and
questions for the record may be submitted within 10 days.
With that, this hearing is adjourned. Thank you.
[Applause.]
[Whereupon, at 11:16 a.m., the hearing was adjourned.]
[Prepared statements, responses to written questions, and
additional material supplied for the record follow:]
PREPARED STATEMENT OF SENATOR TIM JOHNSON
Good morning. Welcome to this joint hearing of the Senate Banking,
Housing, and Urban Affairs Committee and the Senate Indian Affairs
Committee. To begin this morning, I would like to open with a prayer
and would like to call on Joann Conroy, a long-time Lutheran minister
in Rapid City, who also established the first Native American Lutheran
Church in South Dakota. She has served in United Ministries here at
South Dakota Mines. Joann is currently the Executive Director for the
Center for Restorative Justice in Rapid City. Please stand.
Please be seated. Thank you everyone. I'd like to call this hearing
to order. We are here to receive testimony on housing issues in Indian
Country. I am very pleased to welcome Secretary Shaun Donovan of the
U.S. Department of Housing and Urban Development. We are honored to
have him visit South Dakota and especially at this joint hearing. I
would also like to welcome our second panel testifying this morning. In
addition, I would like to acknowledge many of our tribal leaders that I
see in the audience, some I have known for many years and some new
faces as well. Finally, I would also like to thank Dr. Robert Wharton
and his staff at South Dakota Mines for their efforts in helping to
host today's event. Thank you all and welcome to this hearing.
I have requested this hearing to focus on the housing crisis that
we are facing in Indian Country. Yesterday, I escorted Secretary
Donovan to the Rosebud Reservation to see the conditions firsthand that
we are facing here in South Dakota. As we all know, four of the seven
poorest counties in the country are reservation counties right here in
South Dakota. Todd County, home of the Rosebud Reservation, is included
in that list.
The Census Bureau reported in 2008 that Native Americans are almost
twice as likely to live in poverty as the rest of the population. In
the same year, the GAO reported that nearly 46 percent of Native
households were overcrowded, a rate that was almost three times as high
as the rest of the country. According to the 2009 Annual Homeless
Assessment Report, which is produced by Secretary Donovan's department,
American Indians make up 8 percent of the country's homeless population
while American Indians make up less than 1 percent of the general
population.
These statistics are not news to my friends in Indian Country. It
is my hope that this joint hearing will provide more focus on the
housing shortages, overcrowding, homelessness and infrastructure
problems our Indian Tribes encounter. It is also my hope that this
hearing reminds the Federal Government of the treaty and trust
responsibility that it owes to our first Americans. I look forward to
the testimony this morning and again want to welcome everyone to this
hearing. Thank you.
I would like to thank Secretary Donovan for his testimony and visit
here to South Dakota. The needs we face in Indian country are great and
I hope your visit put a face to this crisis. I would also like to thank
our second panel. President Two Bulls, Paul Iron Cloud, LeRoy Quinn,
and Russell Sossamon, thank you for your efforts to improve housing on
our reservations and Indian communities. We have a lot of work ahead of
us to fulfill our treaty and trust responsibilities but it is my hope
that hearings like this shed light on the housing situation our Indian
Tribes face. I will continue to use my position on the Banking
Committee and Indian Affairs Committee to work toward improving the
housing on our reservations. For the other Members of the Committees,
statements and questions for the record may be submitted within 10
days. With that, this hearing is adjourned. Thank you.
______
PREPARED STATEMENT OF SHAUN DONOVAN
Secretary, Department of Housing and Urban Development
August 25, 2010
Good morning Chairman Johnson, and Members of the Committees. Thank
you for inviting me today to testify before you on innovative solutions
to housing needs in Indian Country. There are many challenges to
providing safe and stable housing in Indian communities, and today I
would like to discuss what HUD and this Administration are doing to
tackle those challenges through innovation, and how, going forward, we
can be a better partner.
And I am pleased to be here in South Dakota--my third trip to
Indian Country since becoming Secretary last year. Each of my trips has
opened my eyes further to the unique challenges faced in these
communities--but also how HUD investments could spark community
transformation.
In Montana, I saw firsthand some of the most severe cases of
families living in overcrowded and substandard housing conditions.
In Alaska, I witnessed how one neighborhood in decline--with the
lowest incomes in all of Anchorage, the highest crime rates, and
deteriorating homes--could rise from the ashes with just a little help.
From an investment of $14 million, I saw a regional housing authority
that leveraged public and private commitments to the tune of $100
million, reducing crime, improving schools, and creating opportunity
for families.
The lessons from these trips were clear: by bringing Federal and
State agencies together with tribal governments and private-sector
stakeholders, we can leverage the resources and partnerships we need to
create economic stability and opportunity in Indian Country.
As such, today I will describe HUD's efforts to do just that. I
will provide an overview of the programs HUD's Office of Native
American Programs (ONAP) has available to address the housing needs and
challenges in Indian Country. I will also discuss the positive impact
that President Obama's American Recovery and Reinvestment Act has had
in these areas; provide an update on the progress of negotiated
rulemaking with tribal members to implement recent statutory amendments
to HUD's Native American housing programs; describe the upcoming Native
American Housing Needs Study and workshops; and illustrate how the
Department is seeking to improve the delivery of housing and housing-
related services to the families we serve.
A Commitment to Native Communities--ONAP Programs
Let me review with you the programs HUD has that are specifically
geared toward Native Americans.
HUD administers four programs specifically targeted to American
Indian and Alaska Native individuals and families. In implementing
these programs, the Department recognizes the right of tribal self-
governance and the unique relationship between the Federal Government
and the governments of Indian tribes, established by long-standing
treaties, court decisions, statutes, Executive Orders, and the United
States Constitution. There are 564 federally recognized tribes in the
Nation today, each with its own culture, traditions, and government.
The Department strives to balance respect for these individual tribes
with regulations and procedures that ensure accountability and
consistency nationwide.
HUD also administers two programs specifically targeted to Native
Hawaiians eligible to reside on the Hawaiian Home Lands. The block
grant program for Native Hawaiians is administered through the State
Department of Hawaiian Home Lands and is augmented by a home loan
guarantee program.
Indian Housing Block Grant
The Indian Housing Block Grant (IHBG) is ONAP's largest program,
both in terms of dollars appropriated and population served. It was
authorized by the Native American Housing Assistance and Self-
Determination Act (NAHASDA) in 1996. The block grant approach offers
each tribe the flexibility to design, implement, and administer unique,
innovative housing programs, based on local need. Some of these local
programs would not have been eligible activities under the 1937 Housing
Act, such as down-payment and other mortgage assistance programs,
transitional housing, construction of domestic abuse shelters, and the
creation of revolving loan funds.
From Fiscal Year (FY) 1998 through FY2009, the IHBG program
received slightly more than $7.58 billion, or an average of about $632
million annually. During that time, more than 25,000 affordable housing
units have been constructed or acquired, and more than 52,000 housing
units have been rehabilitated.
Annual IHBGs are awarded to eligible Indian tribes or their
tribally designated housing entities (TDHE) for a range of affordable
housing activities that primarily benefit low-income Indian families
living on Indian reservations or in other Indian service areas. The
amount of each grant is based on a formula that considers local needs
and the number of units developed with 1937 Housing Act funding and
currently managed by the tribe or its tribally designated housing
entity (TDHE).
In FY2010, more than $701 million was distributed through the IHBG
program to about 360 recipients, representing more than 540 tribes,
including the Oglala Sioux which received $11.5 million in IHBG funds.
In total, South Dakota received over $38 million of IHBG funds in
FY2010. The minimum IHBG in FY2010 was $54,019, awarded to 90 tribes.
In FY2010, as of July 29, 2010, IHBG recipients had built or acquired
more than 1,400 affordable housing units and rehabilitated more than
1,700. The goal for FY2010 is to build or acquire 2,028 units and
rehabilitate 3,767.
Title VI--Loan Guarantees
NAHASDA also authorized the Title VI program, which offers
recipients of the IHBG (tribes and their TDHEs) a loan guarantee
program that encourages long-term projects and the leveraging of a
variety of funding sources. Under Title VI, HUD can guarantee 95
percent of a loan for affordable housing activities. Borrowers pledge a
portion of their current and future IHBG funds as security. This
program has provided an incentive for lenders to get involved in the
development of tribal housing.
Since the program began in 2000, ONAP has issued 59 Title VI loan
guarantees, totaling more than $137 million. The eligible activities
are the same as for the IHBG program: Indian housing assistance,
housing development, housing services, housing management services,
crime prevention and safety activities, and model activities as
approved by HUD. The predominant use of Title VI loans has been the
construction of housing units-more than 2,000 since the program began-
and housing infrastructure.
Section 184--Single Family Home Loan Guarantees
The Section 184 program was authorized by the Housing and Community
Development Act of 1992, as amended. It is a single-family mortgage
loan program that provides a 100 percent guarantee for private mortgage
loans issued to eligible borrowers. Eligible borrowers include American
Indian and Alaska Native families and individuals, Indian tribes, and
TDHEs. There are no income limits. Loans are used to purchase,
construct, rehabilitate, refinance, or purchase and rehabilitate a home
located on a reservation or within an Indian area. A one-time, one
percent guarantee fee is charged; it can be financed or paid in cash at
closing. The maximum mortgage term is 30 years.
In FY2003, 271 Section 184 loans were guaranteed for $27 million.
Six years later, in FY2009, 2,401 Section 184 loans were guaranteed for
$395 million. Since the program's inception in 1995, through June 30,
2010, 11,064 loans were guaranteed, for more than $1.6 billion. The
foreclosure rate has consistently remained low with a historical
default rate under 4 percent.
Native Hawaiian Housing Block Grant (NHHBG)
The NHHBG program, Title VIn of NAHASDA, was authorized by the
Hawaiian Home Lands Home Ownership Act of 2000. The Department of
Hawaiian Home Lands (DHHL) is the sole recipient. The NHHBG is designed
to primarily benefit low-income Native Hawaiians who are eligible to
reside on the Hawaiian Home Lands. Eligible activities are the same as
for the IHBG program. DHHL provides many housing services, including
counseling and technical assistance, to prepare families for home
purchase and ownership. DHHL is also using NHHBG and other funds to
invest in infrastructure for future housing development.
FY2002 was the first year the DHHL received funding. Since that
time more than 300 units have been constructed, acquired or
rehabilitated with NHHBG funds. The program has an average annual
appropriation of approximately $9 million. For FY2010, the
appropriation was $13 million. In FY2009, 49 affordable homes became
available to eligible Native Hawaiian families through construction
(34), acquisition (14), and rehabilitation activities (1).
Section 184A--Native Hawaiian Loan Guarantee Program
Section 184A was established by Section 514 of the American Home
Ownership and Economic Opportunity Act of 2000, which amended the
Housing and Community Development Act of 1992. The program is similar
to Section 184, but is intended for Native Hawaiians eligible to reside
on the Hawaiian Home Lands. Appropriations have ranged from $956,000 in
FY2002, to $1 million in FY2009. As of June 2010, the program had
guaranteed a total of 87 loans for almost $20 million.
Indian Community Development Block Grant Program (ICDBG)
This program was authorized by the Housing and Community
Development Act of 1974. ICDBG is a competitive program, open to
federally recognized tribes and certain tribal organizations. Each
year, approximately 1 percent of the Community Development Block Grant
appropriation is set-aside for ICDBG. In FY2010, the ICDBG set-aside is
$65 million. Funding in recent years has ranged from $71 million to $65
million. About $4 million is set aside each year from the ICDBG fund
for imminent threats to health and safety.
Some examples of ICDBG projects include construction of health
clinics and other public facilities including gymnasiums and cultural
centers; housing rehabilitation; health and education facilities;
infrastructure, including roads, power, water, and phone lines; and
waste water systems.
Recovery Act Impacts in Indian Country
On February 17, 2009, President Obama signed the American Recovery
and Reinvestment Act (ARRA) into law. I would like to thank the Members
of the Committees for their role in providing funds to tribal areas as
part of that law. As a result, HUD has made a historic investment in
Indian Country, including $510 million in American Indian, Alaska
Native, and Native Hawaiian communities across the country. Of that
amount:
$255 million was distributed to eligible IHBG recipients
using the IHBG formula. There were 362 primary recipients,
representing 542 tribes.
$242,250,000 was awarded to 102 IHBG recipients out of 327
applicants who applied through a Notice of Funding Availability
(NOFA).
$10.2 million was awarded to the Department of Hawaiian
Home Lands (DHHL) to be distributed through the NHHBG program.
An additional $10 million was provided for the ICDBG
program through the Community Development Fund. The entire
amount was awarded to 19 grantees.
Nationally, as of August 7, 2010, tribes had expended 59 percent of
their Recovery Act formula funds, and 42 percent of the competitive
funds. The Department of Hawaiian Home Lands had spent 35 percent of
its Recovery Act Grant. A number of tribes have already completed and
closed out their Recovery Act Grant.
Impact on South Dakota Tribes
The tribes of South Dakota received $12.9 million in Recovery Act
formula funds, and $8 million in competitive funds (two tribes). Tribes
have expended 68 percent of the formula funds, well before the
deadline. One tribe in South Dakota has expended its entire grant, and
completed its project. More than 200 jobs have been created by ARRA
projects in the State.
Allow me to briefly describe how this funding is being used in
various communities and how it reinforces that while HUD may be seen as
an ``urban'' agency, we have a broad reach in some of America's
smallest, most rural places, including Indian Country.
Cheyenne River Housing Authority, Eagle Butte, South Dakota,
received $2,116,518 in Recovery Act formula funds. The grantee plans to
substantially rehabilitate 143 units, moderately rehabilitate 57 units,
replace the roof of the maintenance building, complete site work
(fencing and sidewalks) on its maintenance building, and create
temporary construction jobs. To date, renovation of 28 units is
underway, with a total of 23 units in progress, and 4 units completed.
Furnace replacement for 115 units is occurring, with 59 units in
progress and 55 units completed. The fencing and sidewalk project is
underway.
The Crow Creek Sioux Tribe, Fort Thompson, South Dakota, received
$618,031 in Recovery Act formula funds. The grantee plans to
rehabilitate 13 rental units with Energy Star materials in order to
make the units more energy efficient. Two units have been completed to
date.
The Flandreau Santee Sioux Housing Authority in Flandreau, South
Dakota, received $159,011 in Recovery Act formula funds. The grantee
plans to provide down payment assistance. This project will provide
home ownership opportunities to eight low-income families in the
community. To date, seven families have received down-payment
assistance.
The Lower Brule Housing Authority, Lower Brule, South Dakota,
received $511,735 in Recovery Act formula funds. The grantee plans to
substantially rehabilitate nine rental units with the replacement of
Energy Star certified materials and appliances. Seven units have been
completed.
The Oglala Sioux Housing Authority, Pine Ridge, South Dakota,
received $4,381,821 in Recovery Act formula funds. The grantee has
completed the substantial rehabilitation of 124 units, and roof
replacement of 150 units, using Energy Star certified materials and
appliances, and plans were completed for future subdivisions and an
administration building.
The Oglala Sioux Housing Authority also received a $4 million
competitive Recovery Act grant. The grantee plans to construct 18 units
for low-income families using Energy Star appliances and materials, and
green building techniques. The grantee also will develop site
infrastructure for future housing projects. To date, construction of 13
units is underway.
Sicangu Wicoti Awanyakapi (Rosebud), Rosebud, South Dakota,
received $3,014,581 in Recovery Act formula funds. The grantee plans to
upgrade the parking lot of the housing authority, upgrade the parking
lot of an elderly complex to improve accessibility, rehabilitate 10
vacant units, construct a centralized propane distribution facility,
and develop 10 new rental units. Additionally, solar heat panels will
be installed in 100 housing units, and a wastewater treatment facility,
serving 90 households, will be upgraded. To date, the parking lot at
the housing authority is complete, and the one at the elderly complex
is 50 percent complete. The rehabilitation of the 10 vacant units is
complete; all have Energy Star materials and appliances. Construction
is underway for the centralized propane distribution facility and the
wastewater treatment facility. A contract has been signed for the
construction of new rental units, and the solar panel project is
complete.
Sicangu Wicoti Awanyakapi also received a $4 million competitive
Recovery Act grant. The grantee plans to develop site infrastructure
(construct/upgrade wastewater treatment, water, and streets) for 65 new
housing units. Construction is underway with excavation and rough
grading.
The Sisseton Wahpeton Housing Authority, Sisseton, South Dakota,
received $1,285,646 in Recovery Act formula funds. The grantee plans to
rehabilitate 30 rental units. To date, 10 of the 30 units have been
completed.
The Yankton Sioux Housing Authority, Wagner, South Dakota, received
$842,392 in Recovery Act formula funds. The grantee plans to
rehabilitate 12 units with Energy Star materials, fund the acquisition
of 9 mobile homes from FEMA, and replace 18 roofs and 11 furnaces. To
date, 10 units have been rehabilitated, 9 FEMA trailers have been
acquired, and 10 energy-efficient furnaces have been installed.
National Housing Needs
Despite these unprecedented investments, Mr. Chairman, the truth is
that no one fully understands the needs in Indian Country--certainly
not in the Federal Government. We do know that there are approximately
5 million American Indian and Alaska Native people living in the United
States, slightly less than half of whom live on Indian lands. According
to the Millennial Housing Commission's 2002 report, welfare reform has
led to many Native Americans moving back to their reservations,
creating even more of a demand for housing and other basic services.
Within the last decade, numerous studies have attested to the
critical housing and economic development needs on tribal lands--though
most were limited in scope. HUD's Office of Policy Development and
Research, using 2000 Census data, determined that, nationwide, almost
543,000 American Indian and Alaska Native households have ``severe
housing needs,'' which are defined as living in conditions that are
overcrowded, substandard, or cost-burdensome.
And we know that in many Indian communities, when housing is
scarce, instead of homelessness, we see overcrowding. Extended families
doubling and tripling up in modest housing, rather than leaving family
members to fend for themselves. According to a Harvard University study
in 2002, approximately 40 percent of on-reservation housing is
considered inadequate, as compared with roughly 6 percent nationwide.
The Community Development Financial Institutions (CDFI) Fund, in its
Native American Lending Study, published in 2001, identified 17 major
barriers to capital access, relating to legal infrastructure;
government operations; economic, financial, and physical
infrastructure; and education and cultural issues. A decade later, many
of these barriers remain. It is generally accepted that at least 90,000
Indian families live in either overcrowded or substandard conditions,
and there is a need for 200,000 new housing units.
For the last 6 years (FY2004-FY2009), with average annual funding
of about $622 million, the IHBG program has assisted approximately
7,500 families each year by providing the funds for a new home, or
substantially rehabilitating an existing home. At the current rate of,
assistance, it will be decades before the program can ``catch up'' to
the current need.
Housing Need Study
Given these challenges and the lack of current data, HUD is about
to conduct a comprehensive housing needs study to help inform future
budget requests and improve program implementation. Our objective is to
ensure that the study reflects current conditions and needs within
Indian Country. The Department's Office of Policy Development and
Research will manage the study with input from tribal communities
nationwide.
To prepare for this, HUD's Office of Native American Programs will
hold outreach meetings in each of its six regions, and in Hawaii, to
ensure that key questions, current conditions and needs are considered.
A diverse group will be invited to these meetings, including tribal
leaders, native housing professionals, and other Federal agencies. The
meetings are anticipated to start in late fall of this year and
continue through spring of 2011.
Through these partnerships, we will work toward developing an
economic and community reinvestment strategy--looking not only at
housing but at other needs, including access to quality health care,
schools, transportation, and employment.
Revising HUD's Government-to-Government Tribal Consultation Policy
On November 5, 2009, President Obama signed an Executive Memorandum
on Tribal Consultation (President's Memorandum) directing all Executive
Departments and Agencies to engage in regular and meaningful
consultation and collaboration with tribal officials of federally
recognized Indian tribes when developing Federal policies that have
tribal implications. The President's Memorandum further directed each
Federal agency to establish an initial plan of actions to accomplish
this by February 3, 2010. By August 2, 2010, and annually thereafter,
all Agencies were to report on their progress implementing the action
plans.
In 1994, HUD adopted an American Indian and Alaska Native Policy
Statement. On June 28, 2001, the Department issued a more comprehensive
Tribal Government-to-Government Consultation Policy (66 FR 49784,
September 28, 2001) that comports with the enhanced consultation and
coordination requirements expressed in Executive Order 13175. HUD is
now reassessing this policy in response to the President's Memorandum,
and is revising it, after appropriate consultation with tribal
government officials.
The guiding principles that originally shaped HUD's 2001
Government-to-Government Tribal Consultation Policy remain viable
today. HUD is cognizant of the unique legal and political relationship
that exists between the United States and Indian tribal governments, as
established by the U.S. Constitution, treaties, statutes, executive
orders, and judicial decisions. HUD strives to honor the government-to-
government relationship, promote tribal self-determination, and ensure
that communication and consultation between the Department and
federally recognized Indian tribes is meaningful, and occurs on a
regular basis.
In examining the existing policy, it was determined that minor
changes were needed to improve it. HUD reached this conclusion based on
the comments and recommendations made at the regional Tribal
Consultation Policy meetings held throughout the country.
The revised Tribal Consultation Policy will become final after HUD
publishes the revised version in the Federal Register, reviews all
public comments received, and incorporates any additional changes.
Breaking Down Silos To Improve Delivery of Native American Programs
I understand that the Committees are interested in how HUD programs
can further assist in meeting the continued housing need in Indian
Country. At the outset, it is important to acknowledge the reality of
the fundamental challenges to housing development that tribes
perennially face: the remote, rural location of many tribes; the
extreme weather conditions in both northern and southern climates that
limit the building season to only a few months; the high costs
associated with obtaining and shipping construction materials to remote
areas; the dearth of qualified construction companies and skilled
labor; the inordinately high cost of infrastructure in tribal areas;
the need to coordinate among several Federal agencies to complete a
housing project; and the lack of experienced housing staff on some
reservations.
But there are opportunities to mitigate these and other challenges,
and the Department is working with tribes toward that end. One way HUD
is seeking to improve services to Indian Country is to coordinate its
rural housing efforts by establishing a rural housing working group.
Recently, HUD's Office of Sustainable Communities issued two Notice of
Funds Available (NOFAs) for the Regional Planning Grant program and the
joint HUD-Transportation TIGER II/Community Challenge Grant program
which included a set aside for rural communities. Tribes were eligible
to apply for these grant funds.
Additionally, I want to thank you, Mr. Chairman, for securing
language in the Livable. Communities Act that creates a 15 percent
funding set-aside for small communities with populations of no more
than 200,000 and specifies that Indian tribes are eligible applicants
for the Comprehensive Planning Grant and the Sustainability Challenge
Grant programs.
This month, HUD will meet with tribal representatives for its sixth
negotiated rulemaking session to implement amendments to NAHASDA
enacted in 2008 and earlier. This marks the third time HUD has
participated in negotiated rulemaking with tribal representatives to
develop program regulations. This process has helped make the programs
more flexible, user-friendly and appropriate for Indian Country.
HUD is also increasing collaboration, both internally and
externally, to improve program delivery to tribal communities. There
are many Federal programs that support housing, health, and social and
economic development for Native people. Although short- and long-term
cost savings are impossible to project at this time, economies of scale
should result from enhanced coordination and collaboration. Increasing
the dialogue between and within agencies will help ensure that Native
Americans are truly receiving the support they need from these
programs.
I have partnered with heads of other Federal agencies to visit
tribal communities in Montana and Alaska. We have met with community
leaders to look at issues related to housing, education,
transportation, energy, communication infrastructure, and agriculture.
The ultimate objective is to foster a holistic approach to community
and economic development.
The Office of Native American Programs, under the direction of
Public and Indian Housing Assistant Secretary Sandra Henriquez,
continues to collaborate with the Bureau of Indian Affairs (BIA) to
streamline its Title Status Report (TSR) process. Lengthy delays in
obtaining a TSR from BIA have hampered the Section 184 Loan Guarantee
program. HUD and BIA have worked together to streamline activities
related to mortgage processing, as well as provide regional trainings
to HUD and BIA staff. The goal is to create a more efficient TSR
system, which would dramatically increase Section 184 activity on trust
lands.
This may seem like a technical issue. But streamlining the title
process will directly impact home ownership and housing construction,
leading to increased community development and an environment more
conducive for lending on reservations.
Mr. Chairman, the Federal Government's ability to work across
agency silos is essential to our ability to promote more sustainable
economic development on Indian lands--whether it is the interagency
Infrastructure Task Force, or our work with the Departments of
Agriculture, Health and Human Services and Energy, and the EPA to
improve financial literacy, use housing as a platform to address health
care and domestic violence, and weatherize homes to increase energy
efficiency.
In all of these efforts, success won't be measured simply by what
HUD does--but whether we're able to work collaboratively to break down
Federal silos that for too long have kept Federal funds from reaching
the tribal communities that need the most help.
A New Era of Partnership and Consultation
And so, thank you again, Mr. Chairman, and Members of the
Committees, for the opportunity to appear before you today to discuss
the unique challenges in Indian Country. I look forward to working with
you on these issues now and in the future.
I recognize that these are difficult times--and that fostering
relationships isn't easy after years of neglect. But together, with a
clearer understanding of what works, what doesn't, and how we can break
down barriers, I believe we can make a difference.
We can build more sustainable reservation economies and ensure that
all Native Americans have a decent, safe, affordable place to call
home.
And perhaps most importantly of all, we can remove barriers to
opportunity for tribal communities across the country.
That is our goal today. And with that, I would be happy to answer
any questions you may have. Thank you.
______
PREPARED STATEMENT OF THERESA TWO BULLS
President, Oglala Sioux Tribe, and Chairman, Great Plains Tribal
Chairman's Association
August 25, 2010
Chairman Johnson, I, Theresa Two Bulls, President of the Oglala,
appear before you at this hearing on behalf of the Oglala Sioux Lakota
Tribe. Before I proceed further I want to thank you personally for all
the support and assistance that you have provided for tribal housing
over the years. Your attention and contributions have been enormous and
your presence here today is evidence your continued commitment to
assisting tribes in addressing our Indian housing needs.
It will be 50 years ago next month that candidate John F. Kennedy
announced during his campaign for the U.S. presidency, that he would,
if elected, expand the Federal public housing program to American
Indian tribes. Less than a year later, after his election, the Oglala
Sioux Tribal Council created the first Indian housing authority in the
United States and President Kennedy, public housing administrators,
Oglala tribal attorney Richard Shifter, and then Tribal President
Johnson Holy Rock gathered in the White House oval office to sign
documents providing the first Indian housing funding in the country to
The Oglala Sioux Housing Authority.
I would like to take a moment, in may, to recognize in the audience
today the presence of Mr. Johnson Holy Rock. President Holy Rock was in
1960--and is still today--a powerful and straight talking advocate for
tribes and tribal housing and we all owe him deep gratitude for his
important contributions to Indian housing. Members of this Committee,
President Johnson Holy Rock. [President Holy Rock stands.]
In the past 50 years, through both the Public Housing tribal
Program and now the HUD Native American Housing Assistance and Self-
Determination Act Program (NAHASDA), Federal assistance has helped
build and modernize over a hundred thousand Indian housing units
throughout the United States, including 2,500 new units and thousands
of modernizations at Pine Ridge. Some of that original housing,
including the very first Indian housing units in the country, lies just
80 miles south of where we sit today, still standing and providing a
valuable housing resource for our people.
Though our Tribe appreciates the assistance that has been provided
by the Federal Government, I must state, on behalf of my Tribe and my
tribal members, that the level of Federal assistance has been wholly
inadequate. Your assistance, I am afraid, has not satisfied the treaty
and trust responsibilities or obligations of the United States
Government nor has it resulted in a majority of our low-income tribal
members living in decent, safe, and affordable housing.
Furthermore, our tribal members now have to compete in 2010 with
over 450 tribes (an increase in excess of twice the number of
recipients in 1996) for a piece of the meager NAHASDA funding pie,
which in real value has actually decreased in value in the 15 years
since the Federal NAHASDA Housing program was created by Congress.
Instead of housing conditions improving for our low income tribal
members, they have sadly grown worse over the past 5 decades since
Presidents Johnson Holy Rock and John F. Kennedy gathered in the White
House to herald the beginning of Federal assistance for Indian housing.
The Oglala Sioux Tribe does thank The Senate Indian Affairs
Committee and the Senate Banking, Housing, and Urban Affairs Committee
for holding today's hearing in the Dakotas. We welcome your interest in
(1) better understanding of our needs, (2) addressing the often hidden
overcrowding that certainly occurs in Indian housing in the Northern
Plains, and (3) learning how successful our tribes have been effective
in spending American Recovery and Reinvestment Act funds.
However, I must say, in recent years, the enormous needs of large,
land-based tribes like Oglala Sioux have been marginalized. In
comparison to national housing, and frankly to many other tribes as
well, we and many other, land-based tribes, remain the poorest in the
United States. Our brave and patriotic tribal members deserve better
and we ask for more help.
We simply need more funding and we believe, it is appropriate and
wise that such additional funding be provided to only those tribes with
the worst housing conditions and then only if they can demonstrate a
capacity to effectively spend such funding. The Oglala Sioux Tribe and
Oglala Sioux (Lakota) Housing offer to work with Congress, HUD and
national tribal associations to try to develop this new program under
NAHASDA, but the funding for this new initiative should, in our
judgment, be in addition to current funding for the existing NAHASDA
Indian Housing Block Grants Program.
As you may be aware, Oglala Sioux and many other large, land-based
tribes are banding together under a new advocacy group known as ``A
Coalition for Indian Housing'' to try to more effectively advocate for
some of our particular needs and interests in Indian housing. I hope
that these Committees will now begin to work with this group to find
new solutions, improving housing conditions on reservations.
Thank you, Senator Johnson, again and we are grateful to your
Committees for coming to Indian country to better understand both our
needs and our successes. With your permission, I would like to reserve
the right to provide additional testimony in the next week.
______
PREPARED STATEMENT OF PAUL IRON CLOUD
Chief Executive Officer, Oglala Sioux Lakota Housing
August 25, 2010
Chairman Johnson, it is always nice to see you. My name is Paul
Iron Cloud. First I would like to thank the Senate Indian Affairs and
the Senate Committee on Banking, Housing, and Urban Affairs for this
Indian housing field hearing and for holding it here in Rapid City near
our Pine Ridge Reservation. As a former Tribal Chairman and current CEO
of Oglala Sioux Lakota Housing (OSLH), it is again an honor and
pleasure to come before these Committees and provide testimony on
housing, an issue of great importance to both Indians and Alaskan
Natives. I of course also want to take a moment to express particular
appreciation to you Chairman Johnson. Senator Johnson, you have always
been a friend and strong advocate for Indian housing and we thank you
for both arranging this field hearing and for your leadership on Indian
housing.
There are many issues confronting Indian housing and with your
permission I will just briefly outline and highlight a few of them
today. However, with your permission, I will reserve the right in the
coming week, through an amendment, to add additional written testimony
for the Committee's consideration.
1. Need To Reinstate Last Year's NAHASDA Funding
We in Indian Country are afraid that most tribes and their members
will be terribly impacted if the President's proposed reduction in the
NAHASDA Indian Housing Block Grants is approved or if a 5 percent
across-the-board budget reduction is enacted for fiscal year 2011. If
either of these proposals is to pass, we project that at Pine Ridge our
program alone would suffer a devastating $2.9 million dollar cut.
Furthermore, such reductions would negate all of the benefits that we
received last year through the special American Recovery and
Reinvestment Act (ARRA). We need your continued support to keep current
IHBG funding at the $700 million dollar level, as well as, seek
additional funding of at least another $175 million.
2. Demonstrated Program Capacity
Oglala Sioux (Lakota) Housing was one of only a few tribal housing
programs in the Northern Plains to receive both competitive and formula
funding under the American Recovery and Reinvestment Act (ARRA). And we
are pleased to say we were both most successful in utilizing this $7.3
million special funding and we did so in record time. Unfortunately, in
Washington, statements have been made in the past that Federal tribal
housing funds are often not utilized or are slow to be spent. We know
that this is not true in the case of Oglala Sioux (Lakota) Housing and
not for most Indian housing ARRA recipients. Please assist us finally
to put to rest these unfounded statements. We and most other tribes
have demonstrated our capacity to promptly and effectively utilize
funding. (See Attachment A.)
3. Terrible Overcrowding in Our Housing
Many large, land-based tribes have a strong need for additional
funding. That need however has at times been obscured by our
traditional practice of taking in our homeless tribal members and our
practices have resulted in terrible overcrowding in many of our units.
Occupancy for a single unit in our program often exceeds 12 to 15
persons. We welcome your efforts and that of the U.S. Department of
Housing and Urban Development to understand this overcrowding and its
impact on families and units.
4. Assistance Needed To Address Violence in Housing
These Committees will recall that earlier this year at both a
Hearing on the President's Fiscal Year 2011 Budget and a Hearing on
Violence in Indian Country, I and Oglala Sioux Lakota Housing, provided
testimony regarding violence, gang activities and suicides on our
reservation. The growing prevalence of this violence is really
attacking and destroying the social structure of our reservation,
creating unacceptable injuries, death and fear in our communities and
undercutting our ability to protect our units and tenants. It is in
many ways a reservation-wide situation, but Oglala Sioux Lakota
Housing, as the primary landlord on the reservation, is uniquely
impacted. A multitude of solutions will be required if tribes, like
ours, are to have any chance to both respond to and prevent this
violence. There is, however, a growing understanding on our part that
increased funding in law enforcement, the courts and housing alone will
not be enough and that political and community changes will also be
required to roll back such violence.
One program that we have sought, and so far have been unsuccessful
in getting, reauthorization in Indian country, is the Drug Elimination
Program. You, Mr. Chairman, have been helping us in this fight and
ultimately also getting funding for the program once it is
reauthorized. If reauthorized, this program could again become an
important and effective prevention and security tool for tribal
housing.
5. A New Program Is Needed To Direct New Funding to the Tribes With the
Greatest Housing Needs
Housing needs in Indian country vary and, based on current Federal
funding levels and local needs, many of the most needy programs simply
never get enough money to really improve their housing. Often these are
the tribal housing programs of large, land-based tribes such as Oglala
Sioux. As President Two Bulls stated in her testimony at this Hearing,
Oglala Sioux and some other similarly situated tribes believe that the
time has come to develop an additional NAHASDA block grant program that
would additionally target the tribes with most need. Such a program
would operate in addition to the current NAHASDA funding.
The existing Indian Housing Block Grant Program provides a floor
for funding Indian Country housing that should be maintained. However,
in addition to these block grants, a new program should be developed
for those tribes with the most need but funding should go only to those
that can demonstrate the capacity to efficiently utilize the funds. We
understand that to request additional funds, tribes have the
responsibility and a need to ensure accountability and effective
performance. We and other tribes are prepared to work with your staff
and others to explore how this new targeted funding can be structured
and incorporated into the NAHASDA program.
6. Introducing ACIH and Its Housing Reporting Card
Lastly, I would like to inform you of A Coalition for Indian
Housing (ACIH). It is a new alliance of large land and treaty based
tribes. Along with our membership in national organizations such as the
National American Indian Housing Association and Congress of American
Indians, we and our Tribe are participating in this new advocacy group
because we believe land-based tribes need to have at times their own
voice on Indian housing matters so that our unique issues are
addressed.
One idea from ACIH is the attached Housing Reporting Card. ACIH has
developed this form as an accurate reporting system for Indian housing.
The ACIH Reporting Card is a simple, one page, self-reporting
information sheet that can be both an administrative tool for Indian
housing entities and a monitoring and evaluation document for Congress.
This simple snapshot or Reporting Card we believe (See Attachment B) or
a variation of it, may become an important universal evaluation
instrument for Indian housing. ACIH is now encouraging its members and
other tribal housing programs across the country to start using this
form on a voluntary basis.
Again, thank you to the Indian Affairs and Banking, Housing, and
Urban Affairs Committees for making the effort once again to come out
to Indian Country and talk with tribes and tribal housing programs. I
would be glad to answer any questions that you might have.
Attachment A
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Attachment B
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
PREPARED STATEMENT OF LeROY QUINN, Jr.
Executive Director, Sisseton Wahpeton Oyate Housing Authority
August 25, 2010
On behalf of the Sisseton Wahpeton Housing Authority and the 13,000
members of the Sisseton Wahpeton Oyate, I wish to thank you for giving
me the opportunity to share a few of the innovative solutions our
Housing Authority has taken to address our housing needs. I have served
as the Executive Director of the Sisseton Wahpeton Housing Authority in
Sisseton, South Dakota, for the past 5 years. I am an enrolled member
of the Sisseton Wahpeton Oyate.
Our Housing Authority currently owns and manages about 560 units of
affordable housing consisting of 472 rental units and 88 home ownership
units. We are a small Housing Authority that operates 22 housing sites
in three (3) counties in Northeast South Dakota.
The mission of our Housing Authority is to strive to provide
decent, safe, and sanitary housing for all our tribal members and seek
to eradicate substandard housing along with eliminating homelessness
and increasing affordable housing opportunities through the provision
of supportive services and financial assistance programs.
Before I discuss the innovative solutions we have taken to address
our housing needs, I want to take this opportunity to thank Senator
Johnson for your leadership on tribal housing issues and helping us
develop and implement new and creative tools necessary to develop
culturally relevant, safe, decent and affordable housing for our tribal
members.
I also want to thank Senator Johnson and the other Members of the
Committee for approving the Indian Veterans Housing Opportunities Act
and for helping expedite and advance the Responsible Tribal Home
Ownership Act known as the HEARTH Act. Both of these bills are vital to
our tribe as we serve many veterans and recognize the need to reform
the Federal leasing requirements and allow us to speed up the leasing
process for individual tribal members which will allow them to get into
their new homes much quicker. Another bill that I would like to thank
Senator Johnson for sponsoring is the Public and Indian Housing Drug
Elimination Program which will help us reduce the use of illegal drugs
in our affordable housing areas.
I also want to acknowledge the continued efforts of the Committee
in our joint task of improving housing conditions for Indians across
America. I am proud to relate to you today several of the innovative
solutions we have developed at our Housing Authority under the
opportunities presented under the Native American Housing Assistance
and Self-Determination Act. I will provide written testimony for the
record that asks for more coordination of the Federal Agencies that
have resources available to American Indians.
Since NAHASDA became law in 1997, the Housing Authority has
developed an excellent working relationship with the South Dakota USDA
office of Rural Development and has built 56 subsidized Section 515
units. This is a critical program because unlike NAHASDA, the 515
program provides rental subsidy to low income families. We have also
collaborated with USDA Rural Utilities to successfully apply for and
receive over $2,000,000 in set-aside funds to assist in the development
of water and waste water systems in several of our new affordable
housing developments. We have also built and occupy a 7,300 square foot
housing administration building built in cooperation with USDA. We were
recently informed that Rural Housing Services has set a 5 year goal to
provide funding for two-hundred, 504 grants and 150 home loans under
the 502 program. In short, we have benefited greatly from our
relationship with the South Dakota Rural Development office and their
outstanding staff. It is my understanding that our relationship with
USDA is unique and not all tribal housing programs have enjoyed the
successful partnership we have experienced. While this relationship is
not necessarily innovative, we believe that tribes with significant
unmet housing and infrastructure needs cannot succeed without
developing a similar relationship with USDA.
The second activity our Housing Authority has innovated is the
creation and capitalization of the Dakota Nation Housing Development
Corporation. This corporation, created in 2005, has successfully
developed approximately 50 sites designated for the development of
affordable housing. In addition, they have successfully applied for and
built a 24 unit affordable housing complex funded with Low Income
Housing Tax Credits and a 21 unit three-bedroom housing project.
The third activity we are involved with was the creation of T
Yamni, a one-stop home ownership program that represents the Housing
Authority, Development Corporation and our Homebuyers Program. This
entity is providing support for our tribal members with financial
literacy programs, homebuyer education classes and loan origination
assistance utilizing all lending resources available. The program is
designed to be an entry way to home ownership with resources and
support provided by the staff.
The final innovation I would like to share with you is the Housing
Authority's purchase of a local 29 unit motel. Ten of the units are set
aside to provide transitional housing for eligible members of the
Sisseton-Wahpeton Oyate. The transitional units are supported by income
from the operation of the remaining 19 motel units. So far, the project
has been a success and is self-supporting.
I also want to report that our Housing Authority is rehabilitating
30 of our low rental units with the stimulus funding we were awarded
last year. We were able to create several jobs with the funding. We are
on schedule to complete the rehabilitation project in a timely manner
and within budget.
Thank you again for the opportunity to share some of our success
stories. I am looking forward to working with you and the other Members
of the Committee as we continue to meet the housing needs of the
Sisseton-Wahpeton Oyate; which includes assisting 550 families on our
current housing waiting lists.
______
PREPARED STATEMENT OF RUSSELL SOSSAMON
Treasurer and Member of the Board, Region IV, National American Indian
Housing Council
August 25, 2010
Introduction
Good morning, Senator Johnson and distinguished Members of the
United States Senate Committee on Indian Affairs (SCIA) and the Senate
Committee on Banking, Housing, and Urban Affairs. I would like to
acknowledge and thank the Honorable Shaun Donovan, Secretary of the
United States Department of Housing and Urban Development, for being
present today to testify and for visiting Indian Country on August 24
to see, first-hand, the living conditions and challenges faced in some
of the Nation's poorest tribal communities. The Secretary's interest in
and support of Indian Country housing is greatly appreciated.
My name is Russell Sossamon and I am the Treasurer of and a member
of the Board of the National American Indian Housing Council (NAIHC),
the only national tribal nonprofit organization dedicated solely to
advancing housing, physical infrastructure, and economic development in
tribal communities in the United States. I am also an enrolled member
of the Choctaw Nation of Oklahoma and the Executive Director of the
Choctaw Nation Housing Authority in Hugo, Oklahoma.
First, I want to thank the Committee for holding this field hearing
in Rapid City, South Dakota, the heart of Plains Indian Country--an
area that is deeply affected by the lack of resources to build and
maintain adequate, safe, and affordable tribal housing. It is my honor
to be here to present testimony on behalf of tribal communities across
the Nation.
Background on the National American Indian Housing Council (NAIHC)
The NAIHC was founded in 1974 and has, for 36 years, served its
members by providing valuable training and technical assistance (T&TA)
to all tribes and tribal housing entities; providing information to
Congress regarding the issues and challenges that tribes face in terms
of housing, infrastructure, and community and economic development; and
working with key Federal agencies in an attempt to address such issues
and meet such challenges. The membership of NAIHC is expansive,
comprised of approximately 271 members representing more than 463 \1\
tribes and tribal housing organizations. The primary goal of NAIHC is
to support tribal housing entities in their efforts to provide safe,
quality, affordable, and culturally relevant housing to native people.
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\1\ There are approximately 564 federally recognized Indian tribes
and Alaska Native villages in the United States, all of whom are
eligible for membership in NAIHC. Other NAIHC members include State-
recognized tribes that were deemed eligible for housing assistance
under the 1937 Act and grandfathered in to the Native American Housing
Assistance and Self-Determination Act.
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Brief Summary of the Challenges Regarding Housing in Indian Country
While the country has been experiencing an economic downturn in
general, this trend is greatly magnified in tribal communities. The
national unemployment rate has risen and has hopefully passed its peak
at an alarming rate of nearly 10 percent; \2\ however, that rate does
not compare to the unemployment rates in Indian Country, which average
49 percent. \3\ The highest unemployment rates are right here in the
Dakotas, on the Plains reservations, where the average unemployment
rate is 77 percent. \4\
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\2\ See, http://www.bls.gov/news.release/empsit.nr0.htm.
\3\ Bureau of Indian Affairs Labor Force Report (2005).
\4\ Many of these reservations are here in the State of South
Dakota, which, ironically, has one of the lowest unemployment rates in
the Nation. On some SD reservations, the unemployment rate exceeds 80
percent.
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Because of the remote locations of many reservations, there is a
lack of basic infrastructure and it is often difficult for tribes to
identify and pursue economic development opportunities. As a result,
the poverty rate in Indian Country is exceedingly high at 25.3 percent,
nearly three times the national average. \5\ These employment and
economic development challenges exacerbate the housing situation in
Indian Country. Our first Americans face some of the worst housing and
living conditions in the country and the availability of affordable,
adequate, safe housing in Indian Country falls far below that of the
general U.S. population.
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\5\ United States Census Bureau, American Indian and Alaska Native
Heritage Month: November 2008. See, http://www.census.gov.
According to the 2000 U.S. Census, nearly 12 percent of
Native American households lack plumbing compared to 1.2
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percent of the general U.S. population.
According to 2002 statistics, 90,000 Indian families were
homeless or under-housed (meaning overcrowded).
On tribal lands, 28 percent of Indian households were found
to be overcrowded or to lack adequate plumbing and kitchen
facilities. The national average is 5.4 percent.
When structures that lack heating and electrical equipment
are included, roughly 40 percent of reservation housing is
considered inadequate, compared to 5.9 percent of national
households.
Seventy percent of the existing housing stock in Indian
Country is in need of upgrades and repairs, many of them
extensive.
Less than half of all reservation homes are connected to a
sewer system.
There is already a consensus among many members of Congress, U.S.
Department of Housing and Urban Development (HUD), tribal leaders, and
tribal organizations that there is a severe housing shortage in tribal
communities; that many homes are, as a result, overcrowded; that many
of the existing homes are in need of repairs, some of them substantial;
that many homes lack basic amenities that many of us take for granted,
such as full kitchens and plumbing; and that at least 200,000 new
housing units are needed in Indian Country.
The Native American Housing Assistance and Self-Determination Act
In 1996, Congress passed the Native American Housing Assistance and
Self-Determination Act (NAHASDA) to provide Federal statutory authority
to address the above-mentioned housing disparities in Indian Country.
NAHASDA is the cornerstone for providing housing assistance to low-
income Native American families on Indian reservations, in Alaska
Native villages, and on native Hawaiian Home Lands. Since the passage
of NAHASDA in 1996 and its funding and implementation in 1998, the
Indian Housing Block Grant (IHBG), the primary funding component of
NAHASDA, has been the single largest source of funding for housing for
Native Americans on reservations and in Alaska Native villages.
Administered by the Department of Housing and Urban Development
(HUD), NAHASDA specifies which activities are eligible for funding. \6\
Not only do IHBG funds support new housing development, acquisition,
rehabilitation, and other housing services that are critical for tribal
communities; they cover essential planning and operating expenses for
tribal housing programs. Between 2006 and 2009, a significant portion
of IHBG funds, approximately 24 percent, were used for planning,
administration, housing management, and services. Without critical
Federal funding, many tribal housing authorities would be unable to
operate.
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\6\ Eligible activities include but are not limited to down-
payment assistance, property acquisition, new construction, safety
programs, planning and administration, and housing rehabilitation.
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Despite the positive developments in Federal law and the impact of
NAHASDA, the funding it provides is plainly and simply insufficient to
meet the existing and, in fact, growing housing need in our tribal
communities. While NAHASDA funds are immensely appreciated by tribes
and are tremendously helpful in beginning to meet tribal housing needs,
they have never, in the history of the program, been sufficient to meet
all of the basic housing needs of Indian tribes or to accomplish the
purposes for which NAHASDA was designed. Like many Government programs,
it is consistently and continuously underfunded. Therefore, tribes have
been forced to think outside of the box and come up with unique and
innovative tools to meet the housing needs in their communities.
Innovative Tribal Housing Programs
Out of sheer necessity and in the interest of promoting tribal
self-determination and self-governance, tribes across the Nation have
begun developing innovative programs that complement NAHASDA programs
in order to meet the tremendous housing backlog in Indian Country. Such
developments generally fall into two categories: financing innovations
and actual program or housing development innovations. I will offer
examples of innovations in each category in my testimony for the
Committees' review and consideration.
Financing Innovations
Problems With Tribal Access to Traditional Home Financing Options
As recently as a little over a decade ago, few lenders made
mortgages on Indian reservations. \7\ Mortgages on reservations are
complicated by various issues, particularly land title status. On many
reservations, land is held in trust by the United States for the
benefit of the tribe as a whole or for the benefit of an individual
tribal member. The lack of ownership of the full ``bundle'' of property
rights, otherwise known as fee simple absolute title, has long been a
deterrent to real estate investment in Indian Country. Therefore, the
market functions differently in Indian Country than it functions
anywhere else in the country. Much like the aforementioned economic
factors, the mortgage and real estate investment factors that plague
the rest of the country are greatly magnified in tribal communities.
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\7\ http://www.indiancountrytoday.com/living/80707512.html, 1/8/
2010.
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During a 5 year period in the 1990s (1992-1996), a Government
Accountability Office (GAO) study could find just 91 mortgages made on
the more than 300 reservations that constitute United States Indian
Country. Those 91 mortgages were made to members of two tribes, the
Tulalip in Washington State and the Wisconsin Oneida, which had forged
relationships with local banks. Though the numbers improved by 1999 to
approximately 471 mortgages that were closed in Indian areas, the
average was still less than one per federally recognized tribe. Now, 11
years later, the situation is not much different.
Since the mortgage peak in 2005, mortgages to native people, one of
the most underserved if not the most underserved population in the
country, have fallen by more than two-thirds, according to data
collected pursuant to the 2008 Home Mortgage Disclosure Act. \8\ This
is due, in large part, to the lack of a traditional mortgage market in
Indian Country. During the past few decades, a majority of the
mortgages extended to tribal members were underwritten by ``subprime''
lenders. Because of the current mortgage crisis, the subprime lending
market has virtually ceased to exist and, as a result, the number of
mortgages extended to tribal members has dropped dramatically. The
stark reality is that loans to Native Americans went from $51.6 billion
in 2006, just after the real estate market peak, to barely $17.5
billion in 2008. \9\
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\8\ This includes mortgages made to Native Americans both on and
off reservations, as the study did not distinguish between the two. Id.
\9\ Id.
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United States Housing and Urban Development Section 184 Indian Home
Loan Program
The HUD Section 184 program is a mortgage loan product designed to
resemble a conventional, or private, housing loan program. There are no
income limits for the Section 184 program. Initially, the program
gained acceptance in areas such as Oklahoma and Alaska, where much of
the property in Indian areas has passed out of trust status and into
``fee'' status, meaning that the Federal Government no longer holds
title to the individual parcel for the benefit of the individual tribal
member. Over time, the program has gained some traction on trust lands.
Because the Section 184 Indian Home Loan program is guaranteed by the
Federal Government, the program has provided much-needed access to
capital to many individual natives that might otherwise find home
financing difficult. The Section 184 program is the most successful
Indian Country mortgage program. However, it should be noted that fewer
than 20 percent of the Section 184 loans made to tribal members have
been made on tribal trust or individual allotment land. Of the 11,000
Section 184 loans, 9,034 have been made on fee simple land. More than
half of these loans have been made in Alaska and Oklahoma, and nearly
all of them were made on fee simple land rather than trust land.
Title VI Tribal Housing Activities Loan Guarantee Program
Under Title VI of NAHASDA, HUD is authorized to guarantee notes or
other obligations issued by Indian tribes, or tribal housing entities,
if approved by the tribe, for the purpose of financing affordable
housing activities as described in Section 202 of NAHASDA. Eligible
borrowers must be a tribe or a tribal housing entity that is an IHBG
program recipient. IHBG funds may be used as security for the guarantee
or other obligation. The objectives of the program are to enhance the
development of affordable housing activities, increase access to
capital to further economic growth, and encourage the participation, in
the financing of tribal housing programs, of financial institutions
that do not normally serve tribal areas.
Creating a Nonprofit To Enhance Access to Funding Opportunities
Some tribes, such as the Ho-Chunk of Wisconsin, have formed
501(c)(3) nonprofit corporations for the purpose of establishing an
independent housing agency that could access additional sources of
housing funding. For NAHASDA purposes, tribal departments and
governments must endorse the 501(c)(3) concept. The structure of any
housing entity has pros and cons; nonprofits are no different. Pros
include organizational autonomy, enhanced nonprofit relationships,
flexibility of leveraging and financing, a limitation on tribal
liability, being able to serve as a housing developer, and the ability
to receive tax-free donations. Cons may include less financial support
from the tribe, fewer educational opportunities, a lessened ability to
build capacity, and added paperwork and Government scrutiny.
Forming a 501(c)(3) is a multistep process. First, the concept must
be endorsed by the tribe's governing body. Once the concept is
sanctioned by the tribal government, a charter must be developed. Once
developed, it must be submitted to and approved by the tribe. Once
approved and chartered, the nonprofit must go through the somewhat
extensive process of IRS approval as a nonprofit entity.
Based on the Ho-Chunk experience, perhaps the most difficult part
of operating a tribal nonprofit housing entity is striking a balance
between tribal government's support of the housing entity and the
nonprofit's independence. On the other hand, one of the most persuasive
reasons to pursue such an option is increased access to a variety of
funding possibilities and a greater ability to serve the individual
housing needs of tribal members.
Tribal Use of Low Income Housing Tax Credits
The Low Income Housing Tax Credit (LIHTC) Act was authorized as a
rental program in the 1986 Federal tax code and has been utilized by
several tribes to offer rent-to-own opportunities to their members.
Under the program, in return for providing funds to help developers or
builders renovate housing for low income households, those who invest
in tax credit projects receive a credit against Federal taxes owed.
The Salish-Kootenai Housing Authority in Pablo, Montana, is one of
the pioneer tribes in this area. It used the LIHTC Act to finance a 24-
unit lease-to-purchase housing development. After 15 years of
occupancy, residents may purchase their individual units. Other tribes
are utilizing similar approaches with the LIHTC program and achieving
some degree of success.
One limitation on this program that has received national attention
at NAIHC and National Congress of American Indians (NCAI) conferences
is a limitation on tribal access to this program because of how program
benefits are disseminated by the Federal Government. The tax credits
are distributed via formula to the States, and the access to the
credits depends entirely on the relationship between States and tribes.
Some States do not cooperate and share with tribal communities. This
issue has highlighted the need for tribal set-asides in any Federal
program that is designed to address low income housing needs. Tribal
members are often among the neediest of the needy, yet their access to
effective Federal low income housing programs may be barred by the
States when they have the authority to make determinations about how
funds are distributed. Tribal set-asides should always be a
consideration in funding such programs.
Leveraging Funds
Leveraging funds is simply investing with borrowed money in a way
that amplifies potential gains. Tribes are increasingly exploring
innovative ways to utilize NAHASDA grant funds, combined with tribal
funds and other resources, to maximize housing project outputs. The
passage of NAHASDA in 1996 and its funding in 1998 have spurred several
tribes into exploring creative partnerships with lenders or utilizing
existing funds to enhance the effectiveness, efficiency, and success of
housing projects.
Bay Mills Housing Authority Tri-Party Agreement: The Bay Mills
Housing Authority in Michigan has a tri-party agreement that includes
the Central Savings Bank as a partner. The bank can offer the HUD
Section 184 loan program, United States Department of Agriculture Rural
Development loans, or conventional loans to members of the tribe. The
tribe hired a tribal member who is a former banker to provide credit
and home ownership counseling to prospective borrowers. NAHASDA funds
are used to provide down payment assistance of up to 10 percent of the
loan (not to exceed $8,000) to families with incomes at or below 80
percent of the area median. The tribe provides similar down payment
assistance to families with higher incomes. At least 15 loans have been
processed under this innovative program.
White Mountain Apache Tribe (WMAT) Project: For the first time,
funding for an Indian Country project is being provided by a blend of
NAHASDA grant funds, Section 184 guarantees, and tribally issued tax-
exempt bonds. The 250-unit single-family housing project is being
sponsored by the WMAT but will initially be owned by the White Mountain
Apache Housing Authority. When completed, the project will provide
long-term rentals with the housing entity as lessor. Each family's
ability to pay will be assessed and the amortized debt service will be
attributable to each home. Under the program, tenants will have the
opportunity to purchase their units.
Saginaw Chippewa Tribe--Assignment of Per Capita Payments: The
Saginaw Chippewa Tribe is one of a growing number of tribes that has
utilized income gained from profitable gaming operations to enhance
home ownership opportunities for tribal members. The Tribal Council,
the tribe's governing entity, recently approved a resolution
authorizing gaming profit payments that would normally be paid to an
individual tribal member (referred to as tribal member per capita
payments) to be used to secure mortgage loan payments. Under the
resolution, leasehold mortgage payments are secured by the tribe
through the assignment of per capita payments from the tribal member.
An agreement is executed and the per capita payments are direct
deposited to a restricted savings account. The local bank partner
assisting with development and implementation of this program, Isabella
Bank and Trust, deducts the mortgage and escrowed insurance payments
from the account each month. The actual application and underwriting
process is extensive and is managed by the tribal housing office. As
the tribe has a fully staffed loan and credit department, licensed
realtors, complete title work on-site, and full credit and budget
counseling services, the tribal housing office is able to provide
tribal members complete homebuyer and home improvement financial
services.
Program Innovations
In addition to exploring innovative financing options, tribes have
spent substantial time, energy, and resources exploring innovative home
design and building programs. The following section highlights a few
tribes' program successes that could serve as models for other
communities.
Rosebud Sioux Manufactures Its Own Energy Efficient Tribal Homes
Almost a decade ago, the Rosebud Sioux tribe had a revolutionary
idea: why not manufacture tribal homes ourselves, using tribal
facilities and tribal labor? That germ of an idea has grown to fruition
this year. Though it was not an easy road and has taken years of
creative financing and hard work, the project, managed by Sicangu
Wicoti Awayankapi (SWA) Corporation, a tribally owned subsidiary, is
now a reality. The tribe is poised to roll out five complete tribal
homes using American Recovery and Reinvestment Act (ARRA) funds and
seven homes using Bureau of Indian Affairs Housing Improvement Program
(HIP) funds in the imminent future.
Moreover, rather than being stick-built on home sites, the homes
will be built from scratch in the SWA home building facility. The
facility was only recently completed and is energy efficient. It uses
geothermal heating and cooling technology, \10\ which has brought the
total monthly costs of heating and cooling the entire facility, which
is sizable, down to approximately $50 per month. The building is air
powered and the homes will move through it on air casters as they are
being produced. The facility is capable of producing approximately six
homes at a time, each at a different stage of production.
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\10\ Geothermal heat pumps (GHPs) are a relatively new technology
that can save home and business owners money. These ground-source heat
pumps use the natural heat storage capacity of the earth or ground
water to provide energy efficient heating and cooling. GHPs should not
be confused with air-source heat pumps that rely on heated air. They
use the relatively constant temperature of the ground or water several
feet below the earth's surface as source of heating and cooling.
Geothermal heat pumps are appropriate for retrofit or new homes or
business locations, where both heating and cooling are desired. In
addition to heating and cooling, geothermal heat pumps can provide
domestic hot water. They can be used for virtually any size home or lot
in any region of the United States.
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While the homes are being manufactured, a contractor is busy
developing the infrastructure and home sites. When both processes are
complete, a home will simply be loaded onto a truck, delivered, set up,
and ready for occupancy.
The tribe will soon have approximately 76 home sites developed and
ready for use. The tribe's wastewater treatment facility is being
updated, and such upgrades should be completed by November 2010. The
tribe is hoping to receive funding for an additional 15 homes through a
low-income housing tax credit project and is actively pursuing other
funds to develop houses for the planned sites. When the building
facility is fully up and running, the SWA anticipates that the home
building corporation will provide 15-20 full-time jobs to tribal
members.
Isleta Pueblo Housing Authority ``Lava Block Homes'' \11\
The Isleta Pueblo, located in central New Mexico, is utilizing a
familiar building layout, local natural resources, and local labor to
create a green building technique that is easily exportable to other
communities. The ``Lava Block Construction'' project is based on a
concept started in 1996 by Ken Detjen, a retired engineer. Lava blocks,
which will form a home's exterior walls, are made out of lava cinder
and cement, along with other ingredients. Lava rock walls have been
tested to have an R-value \12\ of 50 and can withstand winds of up to
300 miles per hour. The concept was introduced to the Isleta Pueblo
Housing Authority in 2007 and was well-received by the housing
authority and the tribal council.
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\11\ See, Appendix A hereto for photographs of this project.
\12\ The ``R-value'' is defined as a measure of the capacity of a
material, such as insulation, to impede heat flow, with increasing
values indicating a greater capacity.
---------------------------------------------------------------------------
The lava block project has numerous advantages. The method is
environmentally friendly in that no drywall or sheetrock is needed in
the construction process; no insulation is required; lava rock walls
are naturally fire proof, sound proof, termite resistant, and
maintenance free; and the home will have reduced energy costs because
of its efficient design and construction. Labor costs are also lower,
by roughly 50 percent, with lava rock homes because no specialized
training in masonry or any other construction art is required.
In 2008, the Isleta Tribal Council approved the use of tribal funds
to design and create a lava block building machine. A Memorandum of
Agreement was executed between the tribe, Habitat for Humanity, and
Lava Living, LLC, in which the tribe agreed to allow its old cinder and
gravel plant to be used for the production of lava blocks.
In doing so, the tribe created jobs for its citizens and created a
mechanism for providing sustainable, energy efficient, affordable homes
for tribal families. On August 26, 2008, the Isleta Pueblo Housing
Authority held a ground-breaking ceremony to launch a home renovation
project for tribal members Jose and Mary Keryte. This is the first lava
block building project in the pueblo. It is expected to be the first of
many and the tribe is already in discussion with other tribes to market
the lava rock to other reservations.
Now, just 2 years after the ground-breaking ceremony, the tribe has
made substantial progress in building and enhancing the lava block
project. The plant is now up and running, has created jobs for tribal
members, and has been an invaluable resource in creating at least 15
energy-efficient homes for tribal members. There is a waiting list for
people who want to participate in the program.
In April of this year, the Isleta Pueblo Housing Authority received
a ``Certificate of Outstanding Achievement'' from the United States
Department of Housing and Urban Development's Office of Native American
Programs, for ``project design and resource conservation.'' Soon, the
tribe hopes to export the idea by selling blocks to other tribes or
construction firms.
Puyallup Tribal Housing Authority Longhouse Design Strategy \13\
The Puyallup ``Longhouse'' design for homes emulates the
traditional rectangular, shed-roofed coastal Salish longhouses utilized
by tribes for centuries. A central feature of a longhouse is a central,
linear common area for gathering and circulation, and private areas are
accessible from the common space. The concept created by the Puyallup
Tribe using American Recovery and Reinvestment Act (ARRA) funds fuses
this traditional design with a modern townhouse courtyard structure.
The project is being constructed on a 4-acre parcel adjacent to 27
existing units and will create 10 new housing units in Phase I of the
project. The design will incorporate community meeting space, be
culturally responsive, and employ green building and design techniques.
---------------------------------------------------------------------------
\13\ See, Appendix B hereto for a photographic illustration of
this project.
---------------------------------------------------------------------------
As in a traditional longhouse, the modern building configuration
utilized by the Puyallup tribe creates a ``defensible space'' hierarchy
of public to private space. Level changes and material modulation
create a flow and transition from public spaces, or common areas, into
private space. The conscientious design imparts ownership to
individuals while fostering active use of shared space. The tribe has
created both one and two-story designs, and in both models the main
floor is handicap accessible. The one bedroom units are fully
accessible.
In traditional longhouses, ventilation and illumination were
provided by removing roof planks. The modern adaptation utilizes an
open roof over the courtyard to evoke this historic strategy and
employs an innovative cross-section ventilation system. Air will be
drawn through the low windows on the south side of the homes and
exhausted through the high windows on the north. The same high windows
allow daylight to penetrate the spaces. Some of the windows in each
home will face the courtyard, a common area, further embracing the
traditional concept of communal living and sharing space.
The Puyallup's modern design embraces energy efficiency in several
ways. Solar orientation is optimized, as all homes are located on an
east/west axis so that windows will have a northern or southern
exposure. The homes feature generous roof overhangs so that passive
solar and day lighting strategies are employed for maximum benefit.
Compact floor plans are utilized, as they are easier to heat and cool.
Other home features, such as the appliances, windows, faucets, and
lighting, are energy efficient, designed to conserve energy in every
way possible.
The tribe is also looking toward the future with the longhouse
design and hopes that someday the units will actually generate energy
on-site. The tribe is making every unit solar-ready and is looking
toward utilizing solar hot water and photovoltaic \14\ panels in the
future.
---------------------------------------------------------------------------
\14\ Photovoltaic means that a material is capable of producing a
voltage when exposed to radiant energy, especially light.
---------------------------------------------------------------------------
Conclusion
Given the funding constraints in the tribal housing arena and the
need to not only maintain existing units but keep up with growing
tribal populations and meet the tremendous existing housing backlog,
tribes have, out of necessity, been very creative in crafting
innovative solutions to meet their unique housing needs. Some
innovations are in the form of utilizing nontraditional financing
mechanisms or leveraging limited financial resources to realize their
maximum benefit. Other innovations are in the actual design and
building arena.
In spite of the forward movement detailed herein, Federal funding
under NAHASDA, including the Indian Housing Block Grant program, the
Indian Community Development Block Grant program, and the provision of
invaluable Training and Technical Assistance to help tribes develop,
enhance, manage, and improve tribal housing programs, is essential and
cannot be overstated. One of the important functions that the T&TA
provided by NAIHC serves is to provide a forum in which to share such
innovations among tribal communities. We do so with hope that such
strategies might be more broadly adapted and utilized.
Thank you, Senator Johnson and distinguished members of the Senate
Committee on Indian Affairs and the Banking, Housing, and Urban Affairs
Committee, for allowing us to testify here today regarding potential
innovative solutions to meeting the overwhelming housing needs in
tribal communities. Your continued support of tribal communities is
truly appreciated, and the NAIHC is eager to work with you and your
professional staff on any and all issues pertaining to tribal housing
programs, living conditions for America's indigenous people, and ways
to meet the growing housing needs in Indian Country. Again, I express a
heartfelt thank you to Secretary Donovan for his interest in Indian
Country housing conditions and his willingness to be here and testify
today.
This concludes my testimony. I would be glad to answer any
questions you may have.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
RESPONSES TO WRITTEN QUESTIONS OF SENATOR JOHNSON
FROM THERESA TWO BULLS
Q.1. As President of the largest tribe in South Dakota and
Chairwoman of the Great Plains Tribal Chairman's Association,
you have worked to improve the quality of life for tribal
members. How have positive changes in tribal members' housing
situations affected other aspects of their lives?
A.1. Housing is a basic human need. Tribal members who do not
have homes cannot maintain jobs to provide for their families.
Our children cannot attend school regularly when they do not
have a place to live. The individuals who are positively
impacted by having a place to live are more likely to keep
their jobs and their children are more successful at school.
The housing situation at Pine Ridge has a tremendous impact on
our society at large. Conditions such as homelessness and
overcrowding increase criminal activity. Lack of housing also
takes tribal members away from our reservation. The positive
impacts of providing homes for tribal members are felt
throughout the entire reservation.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR JOHNSON
FROM PAUL IRON CLOUD
Q.1. Paul, you have been an advocate for the Public and Indian
Housing Drug Elimination Program. How did the original program
benefit members of the Oglala Sioux Tribe?
A.1. The original program primarily benefited the Oglala Sioux
Tribe through education. The program provided funding that
allowed us to reach out to the children and young adults at
Pine Ridge to teach them about the dangers of drug use and
criminal activity. When we had the drug elimination program
funding we also used the funding to give our younger tribal
members after school activities, and alternatives for the youth
other than just hanging around. We used the funding for
sporting activities and allowed our young tribal members
opportunities to attend local and regional sporting
competitions. It also helped improve safety for the members of
the tribe. We desperately need this program again to help
combat crime and drug use on our reservations.
Q.2. In your written testimony, you mention the need for a
snapshot of a housing authority that is currently unavailable
despite rigorous reporting standards from Federal agencies. How
could the current reporting be streamlined to maintain
accountability while also providing an accurate picture of the
state of housing?
A.2. At this time the APR and other monitoring processes are
filled with a lot of program information and issues such that
it becomes impossible to be an effective way of getting a
snapshot of a single program or to assemble uniform data for a
national picture.
I believe a separate reporting card or system that can be
limited to a single page of questions and answers is essential
to make a snapshot of housing authority operations successful.
One very helpful form Oglala Sioux (Lakota) Housing is
currently using is called the ``Low Income Tribal Housing
Report Card.'' This report card was developed with a number of
tribes and some programs have begun to use it voluntarily. It
has also been endorsed by A Coalition for Indian Housing.
This report card strives to create individual snapshots of
each housing authority, but the information it contains could
also be used to compile a program wide overview. It allows
TDHE's to summarize their units, activities, and their budget
in a few lines. On the local level the report card gives TDHE's
an opportunity to effectively communicate information to
tribes, employees and other interested parties and
stakeholders. Another benefit of the report card is that it
could allow HUD to develop nationwide data as well as regional
and statewide data. This is something they have had great
difficulty accomplishing in the past. The report card can also
be shared with Congress where evaluation of the data could be
used to understand need operations and performance.
The report card shows how TDHE's are spending their funds,
but it also shows their progress in expending those funds.
Using the ARRA reporting system as a model, the report card
tracks funds that are committed and funds that have been
expended. One of the best ways to show progress is to first see
how quickly funds are committed and how quickly they are
expended. An effective reporting system needs to show that. It
also provides data from the current year and the previous year
since sometimes funds will not always be committed in the first
year of the program, depending on when funds are allocated.
Funds may not be expended until the following fiscal year. It
would be helpful in monitoring progress and utilization of fund
to look over a 2-year cycle.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR JOHNSON
FROM LeROY QUINN, Jr.
Q.1. There are several Federal agencies that fund projects on
reservations throughout the country. Can you talk about how
regulations differ for that funding and how, if at all, it
could be streamlined?
A.1. The two (2) Federal agencies that the Sisseton-Wahpeton
Housing Authority utilizes most frequently to compliment our
NAHASDA Grant are USDA/Rural Development and the BIA/HIP
Program. We have funded Affordable Housing Projects with both.
I recommend procedures that should be streamlined as follows:
The environmental review process: so we don't have
to complete two (2) separate procedures for the same
housing project. All government agencies should follow
one standard procedure.
Income eligibility guidelines should be streamlined
so that each agency doesn't have a different set of
income guidelines. It becomes very confusing for the
applicants. I recommend the 30 percent income rule
should be reduced to 20 percent income. It would
benefit the poorer applicants that reside in Indian
Country.
Matching funds for grants and loans creates
hardships for the poorer and less resourceful Tribes. I
recommend a waiver for the Tribes whom are building and
being innovative in meeting their Tribe's utmost needs.
Another suggestion; designate more ``pilot projects''
to assist Tribes in their efforts to secure housing,
law enforcement, health, and economic development
projects. Set up a system of waivers to address
particular Federal inconsistencies. Finally, develop a
common lease form that will be accepted by all
agencies.
Q.2. Can you talk about the T Yamni program started by the
Sisseton-Wahpeton Oyate and the tribe's effort to develop
successful home ownership programs?
A.2. In December 2008 a survey was conducted in which 375
Sisseton-Wahpeton Oyate members participated. The survey
results supported the need for a home ownership program. In
February 2009, T Yamni was created through Tribal Council
Resolution. In 2010, the Tribal Council made it mandatory that:
1. Tribal members attend homebuyers education class prior to
receiving tribally funded down payment assistance and
2. As a requirement of receiving tribally funded down
payment assistance, tribal members must sign a release
authorizing the lender to notify T Yamni for
intervention should the homeowner ever become 30 days
or more delinquent in payment.
T Yamni is a collaborative partnership between the
Sisseton-Wahpeton Oyate Homebuyers Program, Dakota Nation
Housing Development Corporation and the Sisseton-Wahpeton
Housing Authority. Each entity provides one staff person for T
Yamni. Within the first 6 months, T Yamni received over 200
contacts from tribal members interested in home purchasing.
In a nutshell, T Yamni walks with the tribal member from
start to finish in home purchasing and home rehabilitation. Our
classes are held in the new Sisseton-Wahpeton Housing Authority
Administration Building.
T Yamni provides the following services:
Credit Repair
Financial Management
Home Ownership Education
Financing Options
Loan Packaging
Default Counseling and Foreclosure Intervention
T Yamni assists tribal members with the following
processes:
Home site selection (fee, tribal, allotted lands)
Home site clearances
Soil Testing
Utilities
Roads
Water and Sewer
T Yamni utilizes the Fannie Mae Tracking System.
T Yamni pulls credit reports through DCI Credit Services of
Bismarck North Dakota.
T Yamni staff has attended the following training:
Training the Trainer--NeighborWorks
Post-Purchase Housing Counseling--HAC
Homebuyer Counseling--NAHASDA
Pathways Home, A Native Home Ownership Guide--NCAI,
NAIHC, NRC
Foreclosure--NeighborWorks
HUD 184 Lender Training
Financial Education Curriculum--OWEESTA
HUD Grant Writing
Rural Housing Playbook
SD Community Foundation
Outreach efforts:
Financial Management Class
Financial Management Class for Tribal School
Juniors
District Elderly Meetings
Reservation Elderly Meetings
Weekly Ad in the Sota Iya Ye Yapi (our Tribal
Paper)
Brochures distributed to every tribal program and
the seven districts on a periodic basis.
Annual Homebuyers Fair
Section 504 Community Meetings
Monthly Homebuyer Education Class
T Yamni Partnerships:
USDA Rural Development Section 504--Packaging
Agreement
Northeast South Dakota Community Action Program
(NESDCAP) USDA/RD Section 502--Packaging Agreement
Goals:
Become a HUD Approved Housing Counseling Agency.
Become certified counselors.
T Yamni, become in itself, a separate entity.
Implement a rebuilding credit program, a revolving
loan program.
Financial management classes for adults and
students on a quarterly basis.
Home ownership classes on home purchasing, home
maintenance, fire prevention, minor repairs, etc. on a
regular basis.
Develop a more extensive down payment assistance
program to maximize efforts with other agencies and
someday serve members off the reservation.
T Yamni Staff:
Rhonda LaBatte, Sisseton-Wahpeton Homebuyers
Program--(605) 698-7707
Cari Ironheart, Dakota Nations Housing Development
Corporation--(605) 698-3200
Angie Johnson, Sisseton-Wahpeton Housing
Authority--(605) 698-3901
Q.3. What are the greatest obstacles facing tribal members who
are able and interested in buying a home?
A.3. The Sisseton-Wahpeton Oyate is a small Tribe of
approximately 13,000 members located in the farthest
Northeastern corner of South Dakota. We essentially operate in
three (3) counties in South Dakota but do claim parts of
Minnesota and North Dakota as our service area. Until recently
acquiring housing lenders for our Tribal Members was a huge
obstacle. Because of our properties being located on Federal
Indian Lands, not many lenders were willing to take the risk.
Now with enhanced cultural relationships and understandings,
plus loan guarantee programs like the HUD Section 184 and the
Title VI Program through NAHASDA and our improved working
relationship with local banks; our goals have become more
attainable. The following is a list of current obstacles:
Limited knowledge of the home buying process
Differences of cultural expectations
Lack of affordable quality housing
Credit issues
Lack of available land
Prejudices/Discrimmination
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR JOHNSON
FROM RUSSELL SOSSAMON
Q.1. Mr. Sossamon, you work with tribes across the country to
help address housing needs and questions regarding regulations.
While each tribe has unique circumstances, can you talk about
the similar challenges they face when trying to address their
housing needs?
A.1. All tribal housing authorities must overcome the varying
regulations that apply to different Federal Government
programs. Various grant and loan programs designed to improve
housing in tribal communities and provide the infrastructure
development that is so critical for housing development and
other community and economic development programs. These grant
and loan programs can come from multiple agencies that often
have separate and substantially different reporting
requirements.
Many tribal housing programs must comply with separate
administrative requirements and laborious reporting standards
to leverage and provide housing services. There are instances
when environmental review requirements must be approved by
separate Federal agencies for identical tracts of land.
Reporting required by Federal agencies and departments are
generally burdensome and often duplicative. Tribes are
encouraged to leverage their Indian Housing Block Grand (IHBG)
funds with other Federal grant programs, yet grant management
and reporting requirements vary from agency-to-agency and
department-to-department. The result is increased reporting
requirements, and that means fewer homes are constructed,
inspected, repaired, or renovated, and more time is spent on
administrative matters.
One of the most vexing issues that challenge our tribes and
tribal housing entities is, stately simply, inadequate funding.
According to a February 2010 General Accountability Office
(GAO) report on the effectiveness of funding under the
authority of the Native American Housing Assistance and Self-
Determination Act (NAHASDA), the funding levels between fiscal
year (FY) 1998 and FY2009 have remained constant in actual
dollars, but have lost value when inflationary factors are
taken into consideration. Funding under NAHASDA is in the form
of formula grant funds identified in NAHASDA as the Indian
Housing Block Grant (IHBG).
The GAO report notes that ``NAHASDA's first appropriation
in fiscal year 1998 was $592 million, and average funding was
approximately $633 million between 1998 and 2009. The highest
level of funding was $691 million in 2002, and the lowest was
$577 million in 1999. For fiscal year 2009, the program's
appropriation was $621 million. However, when accounting for
inflation, constant dollars have generally decreased since the
enactment of NAHASDA. The highest level of (IHBG) funding in
constant dollars was $779 million in 1998, and the lowest was
$621 million in 2009.'' NAHASDA funding has, in short, not met
the housing needs in tribal communities.
It is also interesting to note that of the 360 IHBG
recipients in fiscal year 2008, 102 received less than
$250,000, with 22 of those reporting that they had developed
new housing over the life of their participation in the
program. Fewer than 30 percent of the smaller recipients were
able to actually construct new housing. Therefore, many IHBG
recipients are only able to provide some tenant-based rental
assistance and similar services for their tribal membership.
NAIHC and Congressional appropriators viewed the $700
million appropriated in FY2010 as a turning point in the
Federal investment to meet the housing needs in tribal
communities. Moreover, the additional $500 million for tribal
housing included in American Recovery and Reinvestment Act
(ARRA) funding signed into law by President Obama in February
2009, provided an immediate source of funds to meet the large
backlog in housing construction projects yet to be completed.
The unparalleled funding reductions in tribal housing
investments, from $700 million to $580 million, recommended in
the President's FY2011 Budget Request, reversed the upward
trajectory realized in the FY2010 appropriations level and ARRA
funding. While NAIHC understands that the Administration and
Congress are faced with difficult budget decisions in the
coming FY, a funding reduction of this magnitude would erode
the very foundation of the Federal investment in Indian
housing. Moreover, a 3 year freeze on domestic spending would
have a devastating impact on any progress tribes have made to
improve housing conditions on reservations and in other tribal
communities.
The justification for the budget cuts was based on the
false premise that IHBG recipients were sitting on large
reserves of Federal funds when, in fact, HUD recently reported
that nearly 90 percent of all NAHASDA funding since NAHASDA was
first funded in FY98 has been expended by tribal recipients.
Moreover, as of September 25, 2010, HUD reports that
approximately 65 percent of ARRA-IHBG formula funds and 49
percent of ARRA-IHBG competitive funds have been expended. The
spend out rate for tribes far exceeds the rate for nontribal
grant funds administered by HUD.
Further, there seems to be a basic lack of understanding on
the part of the Administration, and sometimes the leadership of
HUD-ONAP, regarding how tribal housing authorities are
different from other, nontribal public housing agencies, and
how NAHASDA dollars are spent on the ground in Indian Country.
Although the Federal Government has a trust responsibility to
tribes, it has yet to provide adequate funding to any tribe to
enable them to fully serve their citizens in the housing arena.
Housing is more than bricks and mortar, and NAHASDA funds are
often a tribe's sole source of providing housing and housing-
related services to tribal citizens, which include addressing
safety concerns, actual operating expenses for tribal housing
authorities, infrastructure improvements, housing-related
economic development, housing renovations and danger abatement,
and more. For example, in terms of providing safe housing,
tribes need funds for crime prevention, proper lighting, some
form of security services, and activities for the youth to
deter vandalism and crime. The funds provided under NAHASDA
are, purely and simply, insufficient to allow tribes and tribal
housing authorities to meet the tremendous and ever-growing
needs that exist in their respective communities.
Q.2. In your experience, because the agencies use varying
regions, are there examples of coordination that could be
applied to the rest of the country?
A.2. It is hard to pinpoint a real life example of Federal
agency coordination that serves as an example to apply to the
rest of the country. The agencies and the Administration have
made genuine attempts to logically combine programs that are
mutually supportive, i.e., infrastructure development, housing,
energy efficiency, community centers, and transportation.
The lack of coordination is not for the lack of effort. In
many cases, regions, both in terms of numbers and locations,
vary greatly from agency-to-agency and department-to-
department. The single largest source of capital investment in
tribal housing is the IHBG program, which is administered by
the U.S. Department of Housing and Urban Development's (HUD)
Office of Native American Programs (ONAP). ONAP maintains two
headquarter offices, one in Washington, DC, and one in Denver.
There are six area ONAP area offices located in Chicago,
Oklahoma City, Denver, Phoenix, Seattle, and Anchorage.
The Bureau of Indian Affairs, the Indian Health Service,
and other Federal agencies and departments have offices that
may or may not be in the same regions, and more often are not.
Many of the programs for each of these agencies are often
complementary and a necessary adjunct to the housing programs
administered by ONAP. The U.S. Department of Agriculture has
many programs that complement the IHBG programs, including
housing grant and loan programs, water and waste water system,
and other infrastructure programs primarily administered by
Rural Development (RD) State offices.
There are 48 State RD offices located throughout the
country. Connecticut, Massachusetts, and Rhode Island are
combined into a single RD office, but other offices are located
in cities and towns that are often associated with the State's
agriculture school. Federal coordination of Federal programs
that benefit tribal communities is a daunting task based simply
on the structure of Federal offices and programs.
Q.3. As mentioned earlier, our housing authorities have
difficulty budgeting based on the notification and award
process. Is this something that occurs throughout Indian
Country?
A.3. Yes, tribal housing authorities throughout the country
must attempt to plan and budget for housing repair,
renovations, construction, and other eligible housing program
activities based on budgets that are uncertain and, in many
instances, as many as 6 months after the end of the Federal
fiscal year. The late enactment of appropriations bills coupled
with internal processes within HUD often delays the obligation
and distribution of funds which, in recent years, has even
further impaired the ability for tribal housing programs to
obligate and spend money. NAIHC recognizes that HUD must wait
for a Congressional notification process that can further
restrict the availability of funding for use by tribal housing
programs for their communities.
For example, 2010 IHBG funds were not available for draw
down until late July, 2010 for many tribes and tribal housing
authorities. Housing authorities, particularly the smaller
ones, rely heavily on Federal funds in order to operate.
Therefore, they have to carry over enough funds from the
previous year's IHBG to ensure that they can make payroll and
keep the doors open until the new award is received. This is
the reason that a majority of tribes have some form of
carryover/pipeline monies: to ensure their survival. Because
the issue is one of HUD's processes for distributing funds, it
should not then be used as a justification to cut tribal
housing funds. These so-called ``pipeline'' issues, where they
do exist, are of HUD's own making or are out of necessity for a
housing authority's survival from year to year.
Thank you again, Senator Johnson, for hosting this
important hearing in Indian Country and for all that you do to
assist tribes and promote tribal self-sufficiency and
sovereignty.
Additional Material Supplied for the Record
PREPARED STATEMENT OF CHARLES W. MURPHY
Chairman, Standing Rock Sioux Tribe
August 25, 2010
Mr. Chairman and Members of the Committees. I am Charles W. Murphy,
Chairman of the Standing Rock Sioux Tribe. I appreciate the opportunity
to provide this testimony for the record of this Field Hearing. I would
like to thank Senator Tim Johnson for his leadership in bringing this
hearing to South Dakota, and for his longstanding support for the
Tribes in our efforts to provide decent housing to all our people. We
greatly appreciate the work of Senator Johnson and our entire
Congressional delegation, but we also feel it is very important that
other Members see the very significant challenges the Tribes in this
part of the country face with regard to our housing needs. We hope that
this hearing will lead to a greater understanding in that regard, and I
would like to extend an invitation to all the Members of both
Committees to visit Standing Rock, to learn firsthand about the issues
that we will discuss today.
As Senator Johnson is well aware, the conditions we face in Indian
country remain very troubling. While nationwide it is viewed as a
crisis when unemployment nears 9 or 10 percent, at Standing Rock we
have long-term unemployment, year after year, in excess of 50 percent.
Poverty on our reservation remains widespread, with 4 in every 10 homes
on the reservation earning less than 30 percent of Median Family income
for the area. According to HUD figures, 116 families at Standing Rock
face what HUD describes as severe housing costs, meaning they pay more
than 50 percent of their disposable income for housing expenses. Beyond
that, far too many of our people live in homes that are significantly
overcrowded--with HUD reporting that 4 in every 10 families living long
term in overcrowded conditions. This is a serious problem, as a large
number of our people live with 10 or 12 persons in a home that was
sized to accommodate only 3 or 4, simply because no adequate housing is
available to serve them all.
While these conditions at Standing Rock have persisted for years,
over the last few years we have faced additional challenges as well.
First, the recession that undermined the economy nationwide had adverse
impacts for us as well, further isolating the Tribe and diminishing
opportunities for advancement. Many Tribal members returned from off
the reservation because jobs were scarce elsewhere, only to find a lack
of adequate housing on the reservation. Second, this past winter we
faced a series of terrible winter storms, which knocked down thousands
of electrical poles and power lines, paralyzed transportation, stranded
our members in their homes without heat and electricity for days and
hurt families in their efforts to make needed repairs and keep their
homes safe and winterized. The bottom line is that at Standing Rock,
and at many other reservations, poverty remains a fact of life for all
too many of our people, and the promise of decent housing remains, in
far too many cases, unfulfilled.
We know that Congress intends it to be otherwise. For example, when
Congress enacted NAHASDA in 1996, Congress found that providing
``affordable homes in safe and healthy environments is an essential
element in the special role of the United States in helping tribes and
their members to improve their housing conditions and socioeconomic
status.'' This language makes it clear that Congress, in enacting
NAHASDA, recognized the fundamental trust responsibility of the United
States to provide good housing for tribes and their members. NAHASDA
block grants provide tribes with a great deal of discretion in meeting
housing needs, and that flexibility is important. But funds remain
limited and the needs remain great.
We understand that these are difficult times from the perspective
of the Federal budget. Nevertheless, we were extremely disappointed to
see that the Administration's FY2011 budget called for the NAHASDA
Indian Housing Block Grant program to be cut by $120 million. This
great country must stand by its most impoverished citizens and must not
deny them the most basic of human needs--safe and decent housing. We
know we are not alone in this view. We were pleased that the House has
voted to restore some of the money cut in the budget regarding NAHASDA.
We were also pleased that the Senate Appropriations Subcommittee voted
to restore NAHASDA Block Grant funding to the FY2010 enacted level. We
request that the members of the Banking and Indian Affairs Committees
do all you can to support the Senate Subcommittee action in the full
Senate and in conference with the House, to preserve NAHASDA funding
for the Tribes and our people.
But while restoring NAHASDA funding is vitally important, that
alone will not be sufficient to address the problem. For example, at
Standing Rock, we have a large Tribal population, so we have a large
existing housing stock. The majority of this housing stock is comprised
of low rent units--as we have nearly 600 such units. The Tribe has 222
Mutual Help units that contribute to the Tribe's NAHASDA funding. As a
result of the manner in which NAHASDA funds are allocated--in
particular, with only 20 percent of the allocation addressing housing
need--the vast majority of the Tribe's NAHASDA funds are needed for the
upkeep, maintenance and repair of existing housing units. This leaves
us with few funds to address our dire need for additional housing
units. So, even with full NAHASDA funding at last year's levels, more
needs to be done.
Finally, in addressing housing needs in Indian country, it is
important to consider infrastructure and other related needs as well.
New housing units on the reservation require roads, sewers, and water
and utility lines to serve the new housing units. New housing may also
require additional resources in terms of law enforcement and public
safety--to serve the new areas where new homes are built. And all of
these together--adequate housing, proper infrastructure and public
safety--contribute to the ability of the Tribe both to provide for our
people and to recruit needed doctors, nurses, teachers, police, and
others who are needed to serve our reservation community. We urge the
Committees to take these factors into account when addressing the needs
of large, rural reservations like Standing Rock. All of these issues
need to be considered together--and adequate resources need to be
allocated--to provide the conditions necessary for successful economic
advancement and community stability.
In conclusion, there is much to be done and we look forward to
working with these Committees to address our housing needs and related
matters. We also hope that all Members of these Committees will have an
opportunity to come to the Standing Rock Sioux Reservation to learn
more about the challenges we face.
______
PREPARED STATEMENT OF COLLEEN STEEL
Executive Director, Mazaska Owecaso Otipi Financial, Inc.
August 25, 2010
Mazaska: An Overview of Our Organization
Mazaska Owecaso Otipi Financial (Mazaska) is a 501(c)3 nonprofit
Community Development Financial Institution (CDFI) located on the Pine
Ridge Indian Reservation in southwestern South Dakota. Founded by the
Oglala Sioux Tribe Partnership for Housing in 2004, Mazaska's mission
is to ``provide loans, guarantees and other financial arrangements to
individuals or organizations for the purpose of home ownership for new
housing and for the rehabilitation of substandard housing.'' To meet
this mission, Mazaska provides reasonably priced, fixed rate loans for
home purchase, home renovation, and new home construction. We
collaborate with local organizations to provide financial literacy and
homebuyer counseling to applicants and borrowers. In the Lakota
language, Mazaska Owecaso Otipi means ``Lending Money for Housing.''
Accomplishments
Mazaska's accomplishments include the following:
Since 2004, Mazaska has originated 18 loans totaling
$773,997: 94 percent were to first-time homebuyers; 16 were new
construction; 89 percent of Mazaska's borrowers were low or
very low income and could not obtain financing from a bank.
Year to date, Mazaska has closed five loans totaling
$111,850 that enabled four very-low income families to purchase
their first homes and a fifth borrower to purchase a new home
after the death of her husband. These loans were funded by the
U.S. Treasury CDFI Fund Native American CDFI Assistance Program
and the HUD Rural Housing and Economic Development Program.
Mazaska has five loan applications pending--totaling
$462,000, all for first-time homebuyers. These loans will be
funded from our CDFI Fund NACA award.
Innovations
Since its inception, Mazaska has been able to develop programs and
deliver loan products that are critical to overcoming the challenges
that are faced by the residents of the Pine Ridge Reservation,
including:
Created a loan product for renovation/rehabilitation to
address the housing stock shortage on Pine Ridge and increase
Energy Efficiency.
To mitigate risk, Mazaska has developed a loan loss
reserve, capitalized with RHED (HUD) funds.
In partnership with OSTPH and Lakota Funds, another CDFI on
the reservation, Mazaska ensures that all of its borrowers
participate in credit counseling, financial education, and
first time homebuyer classes.
Successfully partnered with OST Housing Authority to
address the critical housing shortage on Pine Ridge through
their NAHASDA set-aside.
Mazaska provides ongoing support to borrowers by reviewing
credit reports with borrowers on an annual basis and assisting
with financial education as needed.
Working To Meet Housing Needs on the Pine Ridge Reservation
The need for affordable housing on the Pine Ridge Reservation is
extensive:
According to the Oglala Lakota Home Coalition, there is a
need for 5,000 new homes on the reservation. In 2007 it was
sitting 3,000 new homes needed.
According to the Oglala Sioux (Lakota) Housing Authority,
there are over 1,000 families on the waiting list for low-rent
and home ownership units.
More than 85 percent of the households on Pine Ridge are
overcrowded, with three or more families living in one home.
Historically, there has been minimal housing lending on the
reservation. The Oglala Sioux Housing (Lakota) Authority provides the
majority of homes to tribal members on a rental basis and some families
eventually become homeowners through a rent-to-own process. Land tenure
has been an obstacle to housing lending, as tribal land is held in
trust and cannot be used as collateral for a mortgage. A lack of credit
or poor credit histories, extreme poverty and the corresponding high
debt to income ratios, and a lack of down payment funds on the
reservation have prevented many families from successfully building
assets and owning homes.
Tribal members can access financial services in towns bordering the
reservation, and nearby Rapid City. However, these services--including
pawnshops, check cashers, and payday lenders--do not contribute to
asset building on the reservation. Most employ predatory lending
practices with usurious interest rates and fees, and provide short-
term, quick money, rather than the long-term financing needed for home
loans.
In spite of these challenges, Mazaska has been innovative by
creating loan products and partnerships that are meeting the needs on
Pine Ridge.
Mazaska: Making an Impact
As the only housing lender on the Pine Ridge Indian Reservation,
Mazaska, is in a unique position to make quantifiable impact with the
loan products it has developed. Mazaska reaches and assists communities
in ways that third party lenders and financial services in border towns
cannot. In order to continue this impact, however, Mazaska must be able
to count on continued Federal support--through the CDFI Fund, and HUD
programming targeted to rural areas (such as the former RHED--Rural
Housing and Economic Development Program), as well as other programs.
We do our best to earn income to reduce our reliance on grant funds and
have had some success with raising funds from foundations, but these
Federal programs have been our most reliable source of the capital we
lend to low income homeowners.
Recommendations:
Continue funding the U.S. Treasury CDFI Fund program,
including the Native Initiatives Program (NACA) in the Fund's
annual budget appropriations.
Provide outreach to the Tribes for HUD Funding that will
affect housing development, especially since RHED is no longer
an authorized program.
Support the South Dakota Tribes in quantifying the housing
needs with direct market research.
Protect NAHASDA funding levels to Tribes to continue to
meet the critical need on South Dakota reservations.
PREPARED STATEMENT OF AMOS PRUE
CEO, Sicangu Wicoti Awayankapi Corporation
August 25, 2010
I would like to thank the Members of the Committees and especially
Chairman Johnson for coming to South Dakota to hold this Indian housing
field hearing. I am the CEO of the Sicangu Wicoti Awayankapi (SWA)
Corporation, which is the tribally designated housing entity of the
Rosebud Sioux Tribe. The Rosebud Reservation is located in south
central South Dakota.
Our current housing stock is not adequate to meet the needs of the
people we serve and many of our tribal members reside in overcrowded
households. We have high rates of alcoholism and suicide that plague
the communities we serve. The Rosebud Reservation also suffers from
some of the worst unemployment numbers in the United States of America.
The Bureau of Indian Affairs estimates that the unemployment rate on
our reservation is eighty-two percent (82 percent). We can not solve
our housing issues without addressing unemployment and economic
development. Housing, unemployment, and economic development are all
related and we can not fix one without improving the others. The
Federal Government can assist us with these issues however, tribal
leadership and support for the promotion of new business is the most
important element to our success. Emphasis needs to be placed on the
development of individual entrepreneurship.
The SWA Corporation has formed a subsidiary limited liability
company, Ojinjintka Housing Development Corporation (OHDC), LLC to
manufacture housing on the Rosebud Reservation. OHDC was formed to spur
economic development on the Rosebud Reservation, to provide much needed
jobs, and to build housing for tribal members. Houses are being built
with American Recovery and Reinvestment Act funds. Additionally, there
is a market opportunity for OHDC to expand beyond providing services to
Indian entities and sell the homes to non-Indian customers.
Construction companies are vacating rural South Dakota and there is a
market for housing construction that OHDC hopes to fill. SWA
Corporation has taken note of the lessons learned from previous tribal
housing manufacturing companies to ensure success with OHDC. OHDC will
create economic development on the Rosebud Reservation while providing
jobs and housing for its members.
I appreciate the assistance provided to SWA Corporation under the
Native American Housing Assistance and Self-Determination Act Indian
Housing Block Grant (IHBG) Program; however, the level of Federal
assistance has been inadequate to meet the housing needs of the Sicangu
Oyate on the Rosebud Reservation. We need your support to keep current
IHBG funding at a minimum of $700 million dollars. In an effort to
advocate for this continued funding, the Rosebud Sioux Tribe has banded
together with many other large, land-based tribes to form a new
advocacy group known as ``A Coalition for Indian Housing'' (ACIH). This
group seeks to try to more effectively advocate for some of our
particular needs and interests in Indian housing. As part of this
advocacy, ACIH has recommended that Tribes and their TDHES provide a
simple self-reporting information sheet. I have attached a one page
self-reporting information sheet on our program for your information.
(See Attachment A.)
Thank you again Members of the Committees and Senator Johnson for
coming to South Dakota to better understand both our needs and our
successes.
Attachment A
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
PREPARED STATEMENT OF DEBORAH DeSANTIS
President and CEO, Corporation for Supportive Housing
August 25, 2010
Chairman Dodd, Ranking Member Shelby, Senator Johnson, and Members
of the Committee, on behalf of the Corporation for Supportive Housing
(CSH) I thank you for holding this very important hearing and for
inviting us to submit testimony about our experience preventing and
ending homelessness for Native Americans both on and off of tribal
lands. We offer this testimony in conjunction with Enterprise Community
Partners, our partner in the Initiative explained below. We also would
like to express our appreciation to Secretary Donovan for traveling
across the country to personally attend this hearing; your presence in
South Dakota is indicative of your commitment and genuine desire to
expand housing opportunities for the lowest income and most vulnerable
Americans.
The Corporation for Supportive Housing is a national nonprofit and
Community Development Financial Institution with the mission of
preventing and ending homelessness by helping communities create
supportive housing. CSH has 14 offices in 12 States across the country,
focusing our efforts on policy and systems reform, technical assistance
and capacity building, and lending--all aimed at increasing the supply
of permanent supportive housing.
As Members of the Committee may know, permanent supportive housing
is a combination of housing with supportive services that is widely
recognized as a highly successful intervention to homelessness for
those with complex barriers to housing stability. As evidenced in HUD's
Annual Homeless Assessment Report to Congress, supportive housing has
played a critical role at reducing chronic homelessness in the United
States. In recent years CSH has worked to demonstrate how the same
permanent supportive housing model that reduced chronic homelessness is
an effective solution to ending homelessness for families, individuals
returning to communities following incarceration, veterans, and since
2005 we've also looked to expand supportive housing for Native American
populations on and off the reservation.
Homelessness Among Native Americans
Homelessness is a significant and growing problem among American
Indians, both on tribal lands and in urban centers. Native Americans
represent 8 percent of the homeless population, but only 1.5 percent of
the U.S. population. On reservations, 30 percent of homes are
overcrowded and 18 percent of homes are severely overcrowded. While we
need to learn a lot more about the scale, scope, and dynamics of
homelessness in tribal communities, it is clear there is a substantial
cohort of American Indians who experience homelessness in a variety of
ways.
Many American Indians experiencing homelessness have serious health
conditions, including mental illness and addiction that exacerbate the
problem. Based on data in Minnesota (from the first-ever homeless
survey on reservations) in 2006 which identified 1,239 people who were
homeless or near-homeless on six reservations, about one-third of
respondents reported at least one chronic health condition, 29 percent
considered themselves chemically dependent, and 23 percent of
respondents had received inpatient or outpatient care for mental health
treatment in the previous 2 years. The survey identified 450 children
who were considered homeless under the Federal definition and we know
there were additional children with doubled-up parents who were not
surveyed. Children living in overcrowded and less stable housing are at
a higher risk for poor educational outcomes compared to children in
more stable housing.
To effectively address the complex housing and health needs of
American Indians that experience homelessness, a comprehensive approach
is necessary that meets the myriad needs of American Indians.
Supportive housing is a promising solution to address and end
homelessness among American Indians. Furthermore, it is adaptable and
can build upon the unique strengths of the American Indian culture,
traditions and values, and the unique governance structure of tribes
and tribal human service systems.
CSH's American Indian Supportive Housing Initiative (AISHI)
In 2005, the Corporation for Supportive Housing along with
Enterprise Community Partners, created the American Indian Supportive
Housing Initiative (AISHI) in its Minnesota program office as a means
of assisting tribes and Indian communities across the State in
addressing the issue of homelessness. This initiative resulted from a
recognized need for increases in the quantity and quality of supportive
housing for American Indians, both on and off the reservation, and the
lack of adequate resources to get the work done. AISHI focuses its
efforts on opening the doors of supportive housing to American Indians
by offering capacity building and training, project-specific technical
assistance, and financial assistance to tribes and American Indian
nonprofit organizations. To date, we have worked with tribes in
Minnesota and North Dakota to develop 12 permanent supportive housing
(PSH) programs on reservations (approximately 200 units); assisted five
off-reservation projects for American Indians (approximately 77 units);
delivered more than 30 presentations and workshops to tribal partners;
and collaborated with Minnesota tribes, the Department of Human
Services and a nonprofit research entity to conduct a survey of
homelessness on Indian reservations in both 2006 and 2009.
Regarding the homelessness survey, recognizing that there was
almost nothing known about the scale and scope of homelessness for
American Indians CSH worked closely with six tribal governments, the MN
Department of Human Services, and Wilder Research as part of the
State's triennial statewide survey of homelessness. Tribal
representatives and leaders in the American Indian community wanted to
document homelessness in their communities.
CSH helped identify a collaborative team among the tribes
interested in participating in the survey. The collaboration included
tribal staff from each participating reservation, CSH, the Minnesota
Department of Human Services (DHS) and Wilder Research. Importantly,
tribal staff represented multiple departments--housing, human services,
and planning agencies, along with homeless shelters. The commitment and
actions of tribal elected officials were key as they communicated with
colleagues at other tribal governments to answer questions, assuage
worries and build political support.
Lessons learned included:
Building trust and relationships with tribal leadership is
the first, most critical and fundamental step. This must
involve culturally sensitive, sustained outreach, with a core
focus on the needs and desires of the tribes themselves.
Cultivating champions within each tribe's staff is
necessary to guide conversations and relay information between
the collaborative group and tribal councils.
Allowing flexibility in how and when the tribes conducted
the survey is critical. The statewide survey had to be
completed on one specific day, but the tribes were allowed up
to 2 weeks to complete their interviews. Tribes were allowed
flexibility in how and where the survey was conducted, which
questions were asked, the stipend amounts paid and who
conducted the interviews.
Identifying homelessness on reservations is different than
off reservation. Tribal members do not call themselves
``homeless'' when they lack their own permanent housing (i.e.,
being doubled and tripled up for long periods of time.)
Therefore the Federal HUD definition of homelessness utilized
off reservation does not fit tribal communities. Needs
assessments should reflect this dynamic.
As I mentioned earlier, CSH developed a partnership with Enterprise
Community Partners to expand and strengthen our support for tribal
communities. Enterprise's partnership has been invaluable, and
combined, our two organizations' financial investments total
approximately $3.2 million in tax credit equity and $1.6 in loans and
grants for capital and predevelopment of permanent supportive housing
projects in Indian country. With the assistance of Congress, the
Administration, tribal leaders and philanthropy we hope to vastly
expand this initiative, facilitate the production of thousands more
units and end homelessness for so many Native Americans.
CSH and Enterprise briefed both HUD and Senator Johnson's staff on
the AISHI initiative and would be happy to meet further with any of the
Committee Members or other interested parties to further discuss our
experience with AISHI and the resources we believe are needed to
further expand it.
We would like to offer a few suggestions to the Committee about how
the Federal Government can help tribal communities develop more
permanent supportive housing to address the severe housing needs for
their most vulnerable residents.
We understand HUD is exploring a national needs assessment
in Indian country. We urge Congress and the Administration to
support this endeavor and are ready to assist as needed.
HUD's Native American Housing Block Grant program provides
critical resources to tribes. HUD has proposed reducing funding
for this program, and we are grateful Congressional
appropriators have restored funding. Congress should consider
increasing funds for this important grant program.
Tribal governments have difficulty accessing mainstream
resources for housing and health care supports that are needed
to prevent and end homelessness. CSH recommends HUD and other
Federal agencies identify these barriers and explore options
for removing them.
HUD's Office of Native American Programs has been receptive
to increased focus on the solution permanent supportive housing
can play in preventing and ending homeless for Native
Americans. Congress and the Administration should encourage
continuation of this trend.
CSH has utilized USDA's Rural Community Development
Initiative (RCDI) to advance AISHI and urge Congress to
increase funding for this program.
CSH intends to expand our AISHI initiative in other parts of the
country, including South Dakota, and we welcome the Committee's
assistance as we encourage additional homelessness surveys and needs
assessments, deliver supportive housing trainings, provide direct and
project-specific technical assistance, and convene regional forums to
bring together tribal leaders, philanthropy, developers, and others
interested in creating new permanent supportive housing.
Again, please accept CSH's gratitude for holding this important
hearing and for accepting our testimony. If we can ever be of
assistance please do not hesitate to contact me directly, or our
Director of Federal Policy, Jordan Press, at [email protected].