Overview. Lenders who are processing IHA/TDHE-borrower or Tribal-borrower applications must follow the procedures outlined below. The requirements for an IHA/TDHE apply also to a Tribally Designated Housing Entity (TDHE) and any reference to an IHA/TDHE also applies to a TDHE.
The Department anticipates that there will be two types of IHA/TDHE or tribal applications:
| a. | IHAs/TDHEs or Tribes that plan to develop and sell homes but who have not yet identified individual households. |
| b. | IHAs/TDHEs or Tribes that will retain ownership and management of the units. |
The following sections describe each of these approaches, explain the pre-qualification information required, and highlight the process for any subsequent purchase of the units.
| c. | IHA Loans Originated Prior to 10/1/97. Under the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), most Indian Housing Authorities will no longer exist, under their present operation , after 10/1/1997. Therefore, the lender must obtain from the Tribe with authority over the Indian area where the home is located, evidence of the following: |
| 1. | A resolution passed by the Tribe which appoints their current Indian Housing Authority (the loan applicant) as their Tribally-Designated Housing Entity; or |
| 2. | A resolution passed by the Tribe whereby the Tribe agrees to assume full responsibility for the mortgage loan obligation after October 1, 1997. In this case, the lender must obtain qualifying income documentation, which shows that the Tribe has the financial capacity to make the loan payments. . |
