Native Community Development Financial Institution Relending Demonstration Program

It’s very easy to get lost in where to start in the home buying process, between the application, documentation and the housing market it can be overwhelming. That’s when having support and subject matter experts really helps. For the diligent men and women who work in Rural Development’s (RD) Single Family Housing program it’s an everyday conversation. Where are the barriers, and how can we help?

Our target areas are rural America and ensuring these places remain places to call home for millions requires us to be innovative with our programs. Often running a pilot program helps us find ways to meet people where they are. One such pilot started in South Dakota and hearing our partners in Tribal Communities we realized that we could also extend the program to help meet a common goal.

In creating this partnership, it would allow the program to provide mortgage lending capital to Native CDFI’s through a 33-year loan at one percent, with a three-year payment deferral at loan onset. While using at least 20 percent matching funds provided by Native CDFI’s.

Native CDFI’s currently span over 27 states with 69 certified lenders in network. While their focus is on many needs for rural reservation communities, this partnership with USDA RD will be geared toward homeownership. USDA RD in FY23 received 10 applications through advertisement with a National Office Funding Announcement (NOFA) and were able to successfully fund 9 applications.

One of those applications being New Mexico Community Capital, who received $800,000 based on their application scoring and work plan. They are eager to get started indicating they are already focusing on projects with Jemez Pueblo, Pueblo Laguna and Ohkay Owingeh.

“One of the good things about us, is we have top notch board members and staff, we have the right vision and principles,” replied Ben Nuvamsa, President/CEO of New Mexico Community Capital.

State Director Patricia Dominguez met with the president and board members to sign the closing documents for the funding award. “We will see where this goes as it has the potential to move us into other lending opportunities, because housing is a critical foundation piece as is doing work with small businesses or renewable energy projects that are also vital to our Native Communities,” Patricia Dominguez said, “We are excited about the opportunities that this partnership could yield!”

For more information about Native CDFI program or to learn about FY24 NOFA opening you may visit us at https://go.usa.gov/xJHPE .