Ch 4. HOMEOWNERSHIP ASSISTANCE PROGRAMS

    Ch 4 Outline

  1. 1. DOWN PAYMENT AND MORTGAGE ASSISTANCE PROGRAM (“DPMAP”)
    1. A. Application
    2. B. Criteria for Assistance
      1. 1) Eligibility Criteria
      2. 2) Tribal Membership
      3. 3) Non-Native/Non-Tribal Member Exception
      4. 4) Income Requirements
      5. 5) Approval of Outside Financing
      6. 6) Terms of the Agreement
      7. 7) Lifetime Limit
      8. 8) Funding Disbursal Condition
      9. 9) Outstanding Debts
      10. 10) Use of Funds
      11. 11) Prospective Home Cost Limit
    3. C. Selection Procedure and Requirements
      1. 1) General Provision
      2. 2) Order of Selection
    4. D. Procedural Guidelines for the DPMAP
      1. 1) Group 1 (Purchase of Stick-Built or Modular Homes)
      2. 2) Group 2 (Mortgage Assistance Payments)
      3. 3) Group 3 (Non-NAHASDA Down Payment Assistance)
      4. 4) Group 4 (Non-NAHASDA Initial Occupancy Assistance / Handicap Access Assistance)
      5. 5) Group 5 (NAHASDA Delinquency Assistance / Non-NAHASDA Foreclosure Assistance)
  2. 2. HOMEOWNERSHIP IN-HOUSE FINANCING PROGRAM –Applicability
    1. A. Criteria for Assistance
      1. 1) General Eligibility
      2. 2) Tribal Enrollment
      3. 3) Income Requirements
      4. 4) Debt Status
    2. B. Selection Procedure and Requirements
      1. 1) Homeownership Waiting List Requirement
      2. 2) Family Size and Home Fit
      3. 3) Income Verification
      4. 4) Income Stability
      5. 5) Debt-to-Income Ratio:
      6. 6) Ability to Meet Financial Obligations
      7. 7) POLICY FOR APPLICANTS WITH PRIOR HISTORY WITH LNHA
      8. 8) POLICY FOR APPLICANTS WITHOUT PRIOR HISTORY WITH LNHA
    3. C. General Requirements for All Applicants
      1. 1) Order of Selection
      2. 2) LNHA Point System:
    4. D. Procedural Guidelines for the HIHFP
      1. 1) Group 1 – New Construction (Pilot Program – Two Recipients)
      2. 2) Group 2 – Rental to Homeownership
      3. 3) Group 3 – New Construction (Tribal Land)
  3. 3. OVER-INCOME REPAIR/REHAB LOANS
    1. A. Determination of Amount of Assistance
      1. 1) Non-NAHASDA Sources
      2. 2) Income Factor
      3. 3) Health & Safety Repairs
      4. 4) File Assignment:
      5. 5) Submission of Repair/Rehab Requests
      6. 6) Contractor Selection
      7. 7) Contract Issuance
    2. B. Description of Eligible Parties
      1. 1) Case-by-Case Selection
      2. 2) Proof of Income and Employment
      3. 3) Principal Place of Residence
      4. 4) Location
      5. 5) Repayment Eligibility
    3. C. Description of Assistance
      1. 1) Administrative Fee
      2. 2) Loan Term
      3. 3) Maximum Loan Amount
      4. 4) Payment to Contractors
      5. 5) Program Participation
    4. D. Terms of Agreement
      1. 1) Promissory Note
      2. 2) Payroll Deduction/Direct Deposit:
  4. 4. LNHA HUD 184 FINANCING – OVER-INCOME TRIBAL MEMBER PROGRAM (OITMP)
    1. A. Introduction
    2. B. Program Requirements
      1. 1) Loan Availability
      2. 2) Assistance Format
      3. 3) Property Criteria
      4. 4) New Construction Requirements
      5. 5) Down Payment Assistance
    3. C. Criteria for Assistance
      1. 1) General Eligibility
      2. 2) Tribal Enrollment
      3. 3) Proof of Income
      4. 4) Mortgage Affordability
      5. 5) Debt Status
      6. 6) Future Credit Worthiness
    4. D. Selection Procedure
      1. 1) Announcement of Program
      2. 2) Applicant Selection and Waiting List
    5. E. Terms of Agreement
      1. 1) Written Agreement
      2. 2) Payment to Seller
      3. 3) Property Ownership and Insurance
      4. 4) Loan Terms
      5. 5) Promissory Note
      6. 6) HUD 184 Loan Assumption
      7. 7) Successor Requirement
      8. 8) Principal Residence
      9. 9) Violation and Termination

1. DOWN PAYMENT AND MORTGAGE ASSISTANCE PROGRAM (“DPMAP”)

A. Application

This chapter provides additional information, policies, procedures, and guidelines applicable to the LNHA DPMAP, DPMAP Homebuyers, and DPMAP Contractual Agreements. These rules shall be applied fairly and equally to all DPMAP applicants and Homebuyers. LNHA reserves the right, in its sole discretion, to revise or otherwise modify the DPMAP and any associated policies, procedures, or guidelines. Program availability is dependent on the amount of DPMAP funding available and may change without notice.

B. Criteria for Assistance

1) Eligibility Criteria

Applicants for the DPMAP must meet all general eligibility criteria detailed in Section 1(B) of this policy. Only the applicant(s) whose name(s) will appear on the home’s title or on the application for outside funding shall be subject to drug testing.

2) Tribal Membership

The applicant must be a member of the Lummi Nation and provide proof of Tribal enrollment, either via a tribal enrollment card or a Certificate of Degree of Indian Blood (CDIB) form issued by the Bureau of Indian Affairs.

3) Non-Native/Non-Tribal Member Exception

Non-Native and/or non-Tribal members who are or were legally married to a Lummi Tribal Member and share a life estate interest in a home may be exempt from the tribal membership requirement.

4) Income Requirements

Applicants must have sufficient income to meet the obligations of homeownership.

5) Approval of Outside Financing

Any outside financing secured by an applicant must be approved as reasonable by LNHA.

6) Terms of the Agreement

The applicant must be able to meet the applicable “Terms of the Agreement.”

7) Lifetime Limit

Applicants are subject to a one-time maximum lifetime limit of up to $25,000 or $40,000, contingent on funding availability.

8) Funding Disbursal Condition

For purchases, the initiation of funds disbursal is contingent upon LNHA’s receipt of documentation showing the participant’s approval for funding from an outside lending institution.

9) Outstanding Debts

The applicant must have no outstanding debts owed to LNHA or must have been in compliance with a Payback Agreement for at least six months.

10) Use of Funds

Funds awarded under DPMAP may not be used to purchase homes that are part of LNHA’s currently assisted stock.

11) Prospective Home Cost Limit

Prospective homes shall not exceed the current Total Development Cost schedule.

C. Selection Procedure and Requirements

1) General Provision

LNHA shall select eligible applicants from the DPMAP waiting list according to the selection preferences (priority groups) outlined below and the applicant’s respective eligibility dates.

2) Order of Selection

Applicants in the DPMAP program will be placed on waiting lists based on their respective categorization in the following groups: Group 1 through 5 of this Chapter.  All applicants for DPMAP must be enrolled Lummi Tribal Members.

D. Procedural Guidelines for the DPMAP

1) Group 1 (Purchase of Stick-Built or Modular Homes)

  1. Determination of Assistance Amount:
    Applicants whose income is between 0 and 80 percent of the median income for Whatcom County or the United States, whichever is higher, are eligible for a grant of up to $40,000 for “stick-built” homes and up to $10,000 for modular homes. If the price of a “stick-built” home is less than $80,000 or a modular home is less than $20,000, the applicant shall be eligible for a grant of up to 50 percent of the purchase price.
  2. Description of Assistance
    Assistance shall be awarded in the form of a grant, to be used towards a down payment, closing costs, or the purchase of a lower interest rate.
  3. Terms of the Agreement
    The terms and conditions specified in this section shall be documented in a separate agreement executed between LNHA and the participant.

    1. The unit/house must be located in Whatcom County, WA.
    2. The unit/house must be the applicant’s principal place of residence.
    3. The applicant must be the principal or joint owner of the home.
    4. The grant shall be in the form of a lump sum and paid at the time of closing.
    5. Disbursement of the grant shall be made to the closing agent/broker.
    6. If a $10,000 or $40,000 grant recipient voluntarily sells or transfers ownership of the house at any point within five years of purchase, the participant shall refund the entire original grant amount to LNHA.
    7. If a $40,000 grant recipient voluntarily sells the home after the fifth year but before the end of the sixth year after purchase, the recipient shall refund 50% of the original grant amount to LNHA. If a grant recipient voluntarily sells the home after the sixth year but before the end of the seventh year after purchase, the recipient shall refund 40% of the original grant amount to LNHA. If a grant recipient voluntarily sells the home after the seventh year but before the end of the eighth year after purchase, the recipient shall refund 30% of the original grant amount to LNHA. If a grant recipient voluntarily sells the home after the eighth year but before the end of the ninth year after purchase, the recipient shall refund 20% of the original grant amount to LNHA. If a grant recipient voluntarily sells the home after the ninth year but before the end of the tenth year after purchase, the recipient shall refund 10% of the original grant amount to LNHA.
    8. To recoup any funds owed as a result of early sale, LNHA shall record a Memorandum of Grant Agreement with the appropriate authority.
    9. Any debts to LNHA incurred through this grant/loan category must be fully satisfied within three years of their inception.
    10. If the grant recipient should die or be rendered mentally incompetent before the grant is fully forgiven, LNHA will allow sale or transfer of the unit/house without penalty.
    11. If the grant recipient should require medical treatment that necessitates long-term absence from the residence, LNHA may waive the “Principal Place of Residence” requirements of Section (ii) above.
    12. Failure to satisfy debts within the above noted time period will result in the participant losing his or her active status on all LNHA waiting lists. Active status may then only be reacquired through the submission of a new application.
    13. Funds received as assistance under Group 1 will be deducted from the $25,000/$40,000 maximum lifetime award limit of the DPMAP.

2) Group 2 (Mortgage Assistance Payments)

  1. Determination of Amount of Assistance
    1. Applicants for assistance under Group 2 whose income is between 0 and 80 percent of the median income for Whatcom County or the United States, whichever is greater shall be eligible for a grant of up to $10,000 to assist with mortgage payments.
    2. Applicants must provide proof of financial ability to monthly mortgage payment.
    3. Applicants whose household is comprised of one person shall be eligible for a maximum award of $300 per month for the first $5,000, $225 per month for the next $2,500, and $200 per month for the final $2,500.
    4. 1. Applicants whose household is comprised of two or more people shall be eligible for a maximum award of $400 per month for the first $5,000, $300 per month for the next $2,500, and $250 per month for the final $2,500.
  2. Description of Assistance
    All applicants shall be eligible for an additional one-time payment of arrearages not to exceed the maximum lifetime award of the DPMAP.

    1. Assistance shall be in the form a grant.
    2. Assistance shall be used to supplement required participant payments to a lending institution or to pay arrearages that have been delinquent for no more than 90 days.
  3. Terms of the Agreement
    1. The terms and conditions delineated in this Section shall be specified and reduced to writing in a separate agreement executed between LNHA and the grant recipient.
    2. Award of this grant is exclusive and specific to the Recipient, and monies awarded under this grant shall not be used to benefit any other individual or entity (other than the entity holding the loan).
    3. The unit/house must be located in Whatcom County, WA.
    4. The unit/house must be the applicant’s principal place of residence.
    5. The applicant must be the principal or joint owner of the home.
    6. When this type of assistance is awarded, grant recipients shall remit their portion of the mortgage payment to LNHA who will then attach these payments with supplemental grant funds and forward the monies to the grant recipient’s lending institution. If LNHA does not receive the grant recipient’s portion of the loan payment, the accompanying supplemental payment will not be made by LNHA.
    7. Recipient’s payments to his or her lending institution shall be either a cashier’s check or a money order.
    8. If LNHA does not receive the grant recipient’s portion of the loan payment, LNHA will suspend all assistance under the DPMAP. pending a showing of good cause by the grant recipient as to why the required payment was not timely made. The determination of good cause shall be made by the LNHA Executive Director. If good cause is not shown within 30 days after the due date of the first missed payment, or the recipient fails to make timely payment a second time, LNHA will terminate the award of assistance to the grant recipient.
    9. Participants shall not voluntarily sell or transfer ownership of unit/house within a five-year period beginning at the disbursal of the grant’s first monthly installment. If the grant recipient violates the above sale/transfer restriction, he or she will be required to immediately return all funds previously disbursed to them under this program. Funds not returned within 30 days of sale or transfer will accrue interest at 5% per annum.
    10. To recoup any funds owed as a result of early sale, LNHA shall record a Memorandum of Grant Agreement with the appropriate authority.
    11. If the grant recipient should die or be rendered mentally incompetent before the grant is fully forgiven, LNHA will allow sale or transfer of the home without penalty.
    12. If the grant recipient should require medical treatment that necessitates long-term absence from the Residence, LNHA may waive the “Principal Place of Residence” requirements of §iv above.
    13. Failure to satisfy debts incurred under this grant program within 12 months will result in the participant losing his or her active status on all LNHA waiting lists. Active status may then only be reacquired through the submission of a new application.
    14. Recipients of funds under Group 2 must verify their income on a yearly basis. If, at any point, the recipient’s income rises above the applicable income limitations for Group 2, or fails to timely reverify, all assistance under the DPMAP shall cease until such time as the recipient reapplies and is selected for further assistance under the DPMAP.
    15. Credit repair counseling shall be required over the entire period of assistance.
    16. Funds received as assistance under Group 2 will be deducted from the $25,000/$40,000 maximum lifetime award limit of the DPMAP.

3) Group 3 (Non-NAHASDA Down Payment Assistance)

  1. Determination of Amount of Assistance.
    Applicants with income between 80% and 200% of the median income for Whatcom County or the United States, whichever is greater, shall be eligible for a grant of up to $10,000 from non-NAHASDA funding sources, subject to availability, to augment funds for the purchase of a home.
  2. Description of Assistance
    1. Assistance shall be in the form of a one-time grant. Not to exceed the maximum lifetime award of the DPMAP.
    2. Assistance shall be used towards a down payment, closing costs, or the purchase of a lower interest rate.
  3. Terms of the Agreement
    1. The unit/house must be located in Whatcom County.
    2. The unit/house must be the applicant’s principal place of residence.
    3. The applicant must be the principal or joint owner of the home.
    4. The grant shall be paid in a lump sum at the time of closing.
    5. Disbursement of the grant shall be made to the closing agent/broker.
    6. If a $10,000 grant recipient voluntarily sells or transfers ownership of the unit/house within five years of purchase, the participant shall refund the entire original grant amount to LNHA. Funds not returned within 30 days of sale or transfer will accrue interest at 5% per annum.
    7. Failure to timely return funds shall result in the grant recipient losing his or her active status on all LNHA waiting lists. Active status may then only be reacquired through the submission of a new application.
    8. Participants shall be limited to one lifetime award under Group 3.
    9. Funds received as assistance under Group 3 will be deducted from the $25,000/$40,000 maximum lifetime award limit of the DPMAP.

4) Group 4 (Non-NAHASDA Initial Occupancy Assistance / Handicap Access Assistance)

  1. Determination of Assistance Amount
    1. Income shall not be a factor in determining eligibility for grants awarded under Group 4.
    2. Assistance shall be awarded from non-NAHASDA funding sources in the form a $5,000 grant to assist with initial occupancy of non-rental units or to provide handicap access to a current residence. Assistance must be applied for within the first six months of an applicant’s occupancy, and the applicant(s) must be the owner(s) of the home to which the assistance is applied.
  2. Terms of the Agreement
    The terms of grants awarded under Group 4 shall be specified and reduced to writing in a separate agreement executed between LNHA and the participant.

    1. The unit/house must be located in Whatcom county, WA.
    2. The unit/house must be the applicant’s principal place of residence.
    3. Funds received as assistance under Group 4 will be deducted from the $25,000/$40,000 maximum lifetime award limit of the DPMAP.
    4. Manufactured homes must be built after 1976. Travel trailers are excluded from this program.

5) Group 5 (NAHASDA Delinquency Assistance / Non-NAHASDA Foreclosure Assistance)

  1. Determination of Amount of Assistance
    1. Applicants for assistance under Group 5 whose income is between 80 and 100 percent of the median income and who are more than three months delinquent on their home payments shall be eligible for a loan of up to $5000 from NAHASDA funding sources.
    2. Applicants for assistance under Group 5 whose income is between 100 and 125 percent of the median income for Whatcom County or the United States, whichever is greater and who are in danger of foreclosure shall be eligible for a loan of up to $5,000 from non-NAHASDA funding sources to assist with payment of mortgage arrearages.
  2. Description of Assistance
    1. Assistance shall be in the form of a zero percent loan.
    2. The term of the assistance shall not exceed twenty-four months.
    3. The maximum loan amount shall be $5,000.
    4. Applicants under Group 5 shall be eligible for assistance only once within an eight-year period.
  3. Terms of Agreement
    1. Assistance shall be conditioned on a determination by LNHA that the applicant/participant can maintain the mortgage payments and the LNHA loan repayment schedule with his or her own resources after LNHA has assisted with curing the applicant/participant’s delinquencies.
    2. The terms and conditions delineated in this Section shall be specified and reduced to writing in a separate agreement executed between the LNHA and the participant(s).
    3. Award of this loan is exclusive and specific to the Recipient, and monies awarded under this grant shall not be used to benefit any other individual or entity (other than the entity holding the loan).
    4. The unit/house must be located in Whatcom County, WA.
    5. The unit/house must be the applicant’s principal place of residence.
    6. The applicant must provide a current statement from the lender of the amount owed and the name of the lender. The applicant’s address must be the same as the property address.
    7. The applicant must be the principal or joint owner of the home.
    8. Participant(s) shall execute a Promissory Note setting forth the amount and terms of the loan agreed to under this agreement.
    9. Participant(s) must agree to execute documents necessary to establish bi-weekly payroll deductions from primary wage earner or establish direct deposit from participant’s banking facility.
    10. Participant(s) shall not voluntarily sell or transfer ownership of unit/house during the term of the loan. If the participant violates the above sale/transfer restriction, he or she will be required to immediately return all funds previously disbursed to them under this program. Funds not returned within thirty days of sale or transfer will accrue interest at 5% annum.
    11. In the event of default and in order to recoup any funds owed as a result of early sale, LNHA may record a copy of the Down Payment Assistance Program Loan Agreement Group 5 with the appropriate authority.
    12. If the participant should die or be rendered mentally incompetent before the loan is fully repaid, LNHA will allow sale or transfer of the home without penalty.
    13. If the participant should require medical treatment that necessitates long-term absence from the residence, LNHA may waive the “Principal Place of Residence” requirements of Section (v) above.
    14. Failure to satisfy debts incurred under this loan program within 24 months will result in the participant losing his or her active status on all Housing waiting lists. Active status may then only be reacquired through the submission of a new application.
    15. Funds received as assistance under Group 5 will be deducted from the $25,000/$40,000 maximum lifetime award limit of the D.P.M.A.P.

2. HOMEOWNERSHIP IN-HOUSE FINANCING PROGRAM –Applicability

The following policies shall apply to the Homeownership In-House Financing Program (HIHFP)

A. Criteria for Assistance

1) General Eligibility

Applicants for the HIHFP must meet all general eligibility criteria detailed in Chapter 1.

2) Tribal Enrollment

The applicant must be a member of the Lummi Nation and provide proof of tribal enrollment to the LNHA.

3) Income Requirements

Applicants must have sufficient income to meet the obligations of homeownership. LNHA will follow the debt-to-income ratio guidelines provided in these policies below.

4) Debt Status

Applicants must have no outstanding debts owed to LNHA or must have been in compliance with a Payback Agreement for at least six months.

B. Selection Procedure and Requirements

LNHA shall select initial eligible applicants based on the following criteria:

1) Homeownership Waiting List Requirement

Applicants must be on the LNHA Homeownership waiting list.  

2) Family Size and Home Fit

LNHA will use utilize the following schedule in selecting the first family on the list that fits the size of the home being screened.

NUMBER OF BEDROOMS NUMBER OF PERSONS
1 BR 1-2
2 BR 2-4
3 BR 3-6
4 BR 4-8
5 BR 5 -10

3) Income Verification

The head of household and/or spouse must demonstrate a stable and verifiable source of income for the past 12 months. Acceptable forms of income verification include but are not limited to:

  • Pay stubs or salary statements.
  • Bank statements showing regular deposits.
  • Tax returns and W-2 forms.
  • Letters from employers verifying income and employment duration.

4) Income Stability

Applicants must have continuous employment or a stable income source for at least 12 months prior to the application. This includes employment in the same job or industry, consistent freelance or contract work, or stable self-employment income.

5) Debt-to-Income Ratio:

The applicant’s debt-to-income (DTI) ratio must not exceed 43%. This is calculated by dividing total monthly debt payments by gross monthly income. Applicants must provide documentation of all outstanding debts, including but not limited to:

  • Credit card statements.
  • Loan agreements.
  • Mortgage statements.
  • Any other recurring monthly obligations.

6) Ability to Meet Financial Obligations

Applicants must demonstrate the ability to meet all financial obligations associated with homeownership, including mortgage payments, homeowner’s insurance, property taxes, and maintenance costs. This will be assessed based on:

  • A thorough review of the applicant’s financial statements.
  • Verification of no late payments or defaults on significant financial obligations in the past 12 months.
  • A comprehensive budget review to ensure affordability of the homeownership costs.

7) POLICY FOR APPLICANTS WITH PRIOR HISTORY WITH LNHA

  1. Positive Rental History:
    Applicants must have a positive rental history with the LNHA for the last 12 months, including but not limited to:

    • On-time rental payments for the last 12 months.
    • Good housekeeping practices and ongoing cleanliness of the exterior of current and previous rental units for the last 12 months.
    • No major complaints from neighbors, police, or previous landlords.
    • No major policy violations from the landlord.
  2. Inspection History:
    • Applicants must have passed all inspections of any previously occupied LNHA property with no significant repair reports except for regular maintenance issues.
  3. Police Contact
    • There must be no history of police contact related to disturbances, criminal activity, or other issues at any previously occupied LNHA property.
  4. Verification Process
    • LNHA will verify all records pertaining to the applicant’s history, including inspection reports, maintenance records, police reports, and payment history to ensure compliance with these criteria.

8) POLICY FOR APPLICANTS WITHOUT PRIOR HISTORY WITH LNHA

  1. Positive Rental History
    Applicants must be able to prove positive rental history for the last 12 months, including but not limited to:

    • On-time rental payments for the last 12 months.
    • Good housekeeping practices and ongoing cleanliness of the exterior of current and previous rental units for the last 12 months.
    • No major complaints from neighbors, police, or previous landlords.
    • No major policy violations from the landlord.
    • Verification will be done through references and documentation from previous landlords and property management companies.
  2. Alternative Proof of Payment History
    Applicants without prior rental history, such as those who have lived in a self-built home, traditional home, or resided with family, must provide alternative proof of payment history. Acceptable forms of alternative proof include:

    • Utility bills showing regular payments for the past 12 months.
    • A letter of credit from a recognized creditor with a minimum 12-month account history.
    • Proof of regular payments for other recurring obligations such as insurance premiums, mobile phone bills, or other regular monthly expenses.
    • Verification from family members or community leaders confirming the applicant’s history of timely payments and responsible financial management must be submitted as a notarized statement under penalty of perjury.
  3. Background Check:
    Applicants without prior history with LNHA must consent to a thorough background check. This includes:

    • Criminal background check.
    • Credit history check.
    • Verification of employment and income stability.
  4. Reference Checks:
    Applicants must provide at least three references, including previous landlords, employers, and personal references who can attest to the applicant’s reliability and suitability for homeownership.

C. General Requirements for All Applicants

1) Order of Selection

LNHA shall create a waiting list for eligible applicants for this program. The categories below are listed in order of priority for placement. All applicants for the HIHFP must be enrolled Lummi Tribal Members.

2) LNHA Point System:

Points Category
7 Enrolled Lummi Parent with Enrolled Lummi Child(ren)
6 Non-Lummi Parent with Enrolled Lummi Child(ren)
5 Enrolled Lummi Tribal Member and Veteran of the U.S. Armed Forces
4 Enrolled Lummi Tribal Member and Physically Disabled Point Preference applies for Housing Units developed and reserved for Disabled Use Only.
3 Enrolled Lummi Tribal Member and 18 years or older
2 Non-Lummi Enrolled Tribal Elder (55 years or older), Veteran, and/or Disabled (must be from federally recognized tribe).
1 Non-Lummi Enrolled Tribal Member 18 years or older (must be from federally recognized tribe).

D. Procedural Guidelines for the HIHFP

1) Group 1 – New Construction (Pilot Program – Two Recipients)

    1. Description of Assistance
      1. Assistance will be in the form of a loan.
      2. Assistance shall be used towards payments directly to contractors and vendors.
      3. Assistance will not exceed $130,000.00.
  2. Terms of the Agreement
    The terms and conditions outlined in this Section shall be specified and documented in a separate agreement executed between LNHA and the recipient(s). 

    1. The unit/house must be located in Whatcom County, WA.
    2. The unit/house must be the recipient’s principal place of residence.
    3. Recipient must be the principal or joint owner of the home.
    4. Individual landowners will lease the land to the LNHA for the term of the loan.
    5. Loan term will be an amortized 30-year loan.
    6. Interest rate will be fixed at 5%.
    7. A Promissory Note will be signed and notarized.
    8. Recipient is required to name successor who meets all the eligibility requirements.
    9. Successor may assume the Loan Agreement.

2) Group 2 – Rental to Homeownership

  1. Description of Assistance
    1. Assistance will be in a form of a loan.
    2. Assistance shall be used towards establishing 20-year amortized loan
    3. Assistance will not exceed $70,000.
  2. Terms of the Agreement
    The terms and conditions delineated in this Section shall be specified and reduced to writing in separate agreement executed between LNHA and the recipient(s).

    1. The unit/house must be original Mutual Help Occupancy Home.
    2. The unit/house must be the recipient’s principal place of residence.
    3. Recipient must be the principal or joint owner of the home.
    4. Sale price will be based on the original amortized schedule and date of sale.
    5. Loan term will be an amortized twenty-year loan.
    6. No interest rate will be charged.
    7. Promissory Note will be required.
    8. Recipient is required to name successor who meets all the eligibility requirements.
    9. Successor may assume the Loan Agreement.
    10. Recipient must recertify annually.

3) Group 3 – New Construction (Tribal Land)

  1. Description of Assistance
    1. Assistance will be in a form of a loan.
    2. Assistance shall be used towards establishing 30-year amortized loan.
    3. Assistance will be determined by the amount of the construction costs to build the home.
  2. Terms of the Agreement
    The terms and conditions delineated in this Section shall be specified and reduced to writing in separate agreement executed between LNHA and the recipient(s).

    1. The unit/house must be located within the exterior boundaries of the Lummi Nation.
    2. The unit/house must be the recipient’s principal place of residence.
    3. Recipient must be the principal or joint owner of the home.
    4. Sale price will be based on the construction cost to build the home.
    5. Loan term will be an amortized thirty-year loan.
    6. No interest rate will be charged.
    7. Promissory Note will be required.
    8. Recipient is required to name successor who meets all the eligibility requirements.
    9. Successor may assume the Loan Agreement.
    10. Recipient must recertify annually.

3. OVER-INCOME REPAIR/REHAB LOANS

A. Determination of Amount of Assistance

1) Non-NAHASDA Sources

Assistance shall be awarded from non-NAHASDA sources.

2) Income Factor

Income shall not be a factor in determining eligibility for participation in this program.

3) Health & Safety Repairs

Assistance shall be used exclusively for Health & Safety Repair and Rehabilitation.

4) File Assignment:

The file will be given to the Social Services Manager, who will assign it to the Repair/Rehab department. No application shall be processed until a physical inspection is conducted by the Repair/Rehab Department and the scope of work is approved, when required.

5) Submission of Repair/Rehab Requests

The applicant will submit a list of items to be covered under the Repair/Rehab request. Upon determination by Housing Staff of items approved for funding, the applicant must provide three bids from licensed contractors for the approved work, when required.

6) Contractor Selection

Upon receipt of three bids, a contractor will be selected based on LNHA staff criteria, when required.

7) Contract Issuance

No work will be permitted without the issuance of a contract or purchase order.

B. Description of Eligible Parties

1) Case-by-Case Selection

Applicants for assistance shall be selected on a case-by-case basis.

2) Proof of Income and Employment

Proof of income and employment verification shall be required of all applicants.

3) Principal Place of Residence

The unit/house must be the applicant’s principal place of residence.

4) Location

The unit/house must be located in Whatcom County.

5) Repayment Eligibility

The recipient must be eligible to repay the loan through a payroll deduction sent directly to LNHA.

C. Description of Assistance

1) Administrative Fee

In lieu of interest charges, the recipient will be charged an administrative fee calculated based on the loan amount and repayment schedule.

2) Loan Term

The loan term shall not exceed thirty-six months.

3) Maximum Loan Amount

The maximum loan amount shall be $12,500.00.

4) Payment to Contractors

Payment shall be issued to approved contractors upon inspection by Repair/Rehab Department personnel and completion of all work covered in a bid, when required.

5) Program Participation

Participation in the program is limited to an initial loan, which must be paid in full before applying for another loan. Exceptions may be made for major/emergency requests, which will be determined by the LNHA Executive Director or designee.

D. Terms of Agreement

1) Promissory Note

Participant(s) shall execute a Promissory Note setting forth the amount and terms of the loan.

2) Payroll Deduction/Direct Deposit:

Participant(s) must agree to execute documents necessary to establish bi-weekly payroll deductions from the primary wage earner or establish direct deposit from the participant(s)’ banking facility.

4. LNHA HUD 184 FINANCING – OVER-INCOME TRIBAL MEMBER PROGRAM (OITMP)

A. Introduction

The LNHA Board establishes this program for enrolled Lummi Tribal members who wish to purchase an existing home or build a new home on fee land but are unable to secure a HUD 184 Loan due to reasons such as: (1) lack of stable income sources due to changes in occupation, higher education enrollment, or residential moves; or (2) credit history that does not meet HUD 184 requirements.

B. Program Requirements

1) Loan Availability

This program will have only three approved loans available at any time, subject to LNHA’s ability to obtain credit for the Housing HUD 184 Loan.

2) Assistance Format

Assistance will be provided in the form of an assumable LNHA HUD 184 loan through an approved HUD 184 loan financial institution.

3) Property Criteria

Any land and structure purchased under this program must:

  1. Be within the boundaries of the Lummi Reservation; and
  2. Be marketable.

4) New Construction Requirements

For the purchase of new construction, the following criteria must be met:

  1. The builder must be an approved LNHA contractor; and
  2. Assistance for the build will be made directly to LNHA and the contractor through draws; and
  3. Assistance will not exceed the allowed Total Development Costs.

5) Down Payment Assistance

If funds are available, the applicant may qualify for down payment assistance through LIBC funds. Down payment assistance documents will be signed prior to closing following the guidelines of the down payment assistance program.

C. Criteria for Assistance

1) General Eligibility

Applicants for the OITMP must meet all general eligibility criteria detailed in Chapter 1, with the exception that only the applicant(s) whose name(s) will appear on the home’s title or who are on the application shall be subject to drug testing.

2) Tribal Enrollment

The applicant must be an enrolled member of the Lummi Nation and provide proof of Tribal enrollment to the LNHA.

3) Proof of Income

Applicants must show proof of income sufficient to meet the obligations of homeownership. The applicant(s)’ income must be over 80% of the median income for Whatcom County or the United States, whichever is greater.

4) Mortgage Affordability

Monthly mortgage payments, including insurance and taxes (when applicable), made by LNHA will not exceed 30% of the applicant’s monthly income at the time of entering into the agreement.

5) Debt Status

The applicant(s) must have no outstanding debts owed to the LNHA.

6) Future Credit Worthiness

Applicants must provide a plan demonstrating credit worthiness and/or income eligibility required to obtain HUD 184 loan acceptance within three years.

D. Selection Procedure

1) Announcement of Program

A notice outlining the program requirements and seeking applications with a specified deadline will be posted throughout the Lummi Reservation and published in the Squol Quol.

2) Applicant Selection and Waiting List

LNHA will select qualified applicants and, if necessary, create a waiting list based on membership in the following categories, listed in order of priority:

  1. Enrolled Lummi Current LNHA Tenant (10 pts):
    A tenant with at least a one-year history with LNHA, demonstrating timely payment, maintaining the residence in good condition, and compliance with LNHA Housing Policies and Procedures.
  2. Enrolled Lummi Elder (8 pts):
    An enrolled Lummi member who is 55 years or older.
  3. Enrolled Lummi Parent (7 pts):
    A parent with enrolled Lummi child(ren).
  4. Enrolled Lummi Veteran (5 pts):
    A veteran of the U.S. Armed Forces.
  5. Enrolled Physically Disabled Lummi (4 pts):
    An enrolled member with a physical disability.
  6. Enrolled Lummi (3 pts):
    An enrolled Lummi member who is 18 years of age or older.

E. Terms of Agreement

1) Written Agreement

The terms and conditions outlined in this Section shall be specified and documented in a separate agreement executed between LNHA and the applicant(s).

2) Payment to Seller

Assistance shall be paid directly to the seller through escrow.

3) Property Ownership and Insurance

The property will be held in the name of the LNHA and insured through the LNHA agent for structure only.

4) Loan Terms

The loan term will be an amortized 30-year loan with a fixed interest rate.

5) Promissory Note

A promissory note will be signed and notarized.

6) HUD 184 Loan Assumption

Applicant(s) will apply to assume the HUD 184 Loan within three years of the closing date on the LNHA loan. Failure to assume the loan by this deadline will result in LNHA terminating the agreement and initiating eviction procedures.

7) Successor Requirement

Applicant(s) are required to name a successor who meets all eligibility requirements. The successor may assume the loan if qualified at the time.

8) Principal Residence

The unit/house must be the applicant’s principal place of residence for the duration of the qualification period for the loan.

9) Violation and Termination

If the applicant(s) violate their agreement or LNHA policies, the agreement will be terminated, and the provisions of LNHA Policies and Procedures, Chapter 2, will be implemented.

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