By Elliott Bochstein, Rural Community Assistance Corporation staff writer
Santa Ana Pueblo, New Mexico – Owning a home represents more than just a marker of stability for many Americans; it’s a crucial step toward financial security and the opportunity to create a lasting legacy for their descendants. However, low-income households and communities often find this dream out of reach due to systemic barriers and a lack of affordable financing options.
Through the Homeownership to Increase Racial and Wealth Equity (HIRWE) initiative, Rural Community Assistance Corporation is dedicated to broadening access to affordable homeownership for Indigenous households and households of color. This is achieved by collaborating with local partners across RCAC’s 13-state region to build essential community capacity.
U.S. Department of Agriculture’s 502 Direct Home Loan Program is integral to these efforts supporting rural homeownership for low- and very-low-income individuals by providing long-term mortgages of 33 to 38 years without requiring a down payment. The 502 Direct loans have a fixed interest rate, currently 4.75%, but a payment assistance subsidy can reduce the effective interest rate to as low as 1%, making homeownership more accessible in underserved communities.
“When we consider the vast wealth disparity in this country and how affordable homeownership is a cornerstone of wealth generation, securing an affordable mortgage is paramount,” said Gina Chamberlain, homeownership program manager at RCAC. “USDA 502 Direct is a wonderful mortgage product, truly one of the best available.”
Barriers to access
Understanding the HIRWE initiative’s impact requires recognizing the historical and ongoing injustices that shape the housing market. For generations, systematic discrimination in traditional lending practices, including redlining and restrictive covenants, have blocked households of color and Indigenous households from becoming homeowners, fueling today’s persistent and vast wealth disparities.
Beyond immediate housing and financial considerations, these systemic obstacles have also stifled communities’ ability to establish safe, lasting homes for future generations.
Despite the USDA 502 program’s clear benefits and role in easing the wealth gap, many prospective applicants remain unaware of it, and the application process can feel daunting. Indigenous communities, especially those residing on tribal trust lands, face additional hurdles such as navigating approval processes for land lease agreements with the Bureau of Indian Affairs and mortgage lenders. These processes, often perceived as risky and cumbersome, deter potential homebuyers and lenders alike.
“If someone wants to apply but lacks support from local affordable homeownership advocates, the effort can easily fall by the wayside,” said Chamberlain.
RCAC’s approach
RCAC’s Homeownership Program, launched in 2022, centers on the HIRWE initiative, which aims to increase affordable homeownership, including access to USDA 502 Direct loans for underserved households of color and Indigenous households.
After two years of outreach, listening and participating with local Native homeownership coalitions, RCAC organized a training event for Indigenous communities on USDA 502 Direct loan application packaging. In April 2023, with funding from Wells Fargo Foundation and in partnership with USDA, RCAC hosted this training in Santa Ana Pueblo, New Mexico. The event also featured workshops that addressed specific challenges related to tribal trust land issues. Andria Hively, special programs branch chief for USDA RD Single Family Housing Direct Programs, led a workshop that provided training and facilitated a discussion on navigating the leasehold approval process with USDA RD for tribal trust land.
Thirty-four leaders from 21 organizations participated, each representing local affordable housing agencies to maximize the potential impact within their communities. The interactive sessions included problem-solving exercises and discussions to deepen understanding of the application process.
Chamberlain noted that Wells Fargo Foundation’s funding allowed RCAC to “expand our program, allowing staff to dedicate time for outreach, retool for efficiency and offer additional training,” especially to communities lacking packagers. The foundation also provided scholarships for 23 participants to attend the packager training which RCAC offers through a cooperative agreement with USDA RD.
The curriculum addressed different communities’ specific challenges. Participants learned strategies for working with USDA while navigating complex land leases on tribal lands and received step-by-step guidance on the application process so they could assist members of their respective communities.
“This class and home loan option is the answer for our tribal members that are in need of home loans at a rate that is affordable,” said Isaac DeAnda, a Siletz Tribal Housing Department employee.
Local tribal leaders shared a welcome each day to honor and acknowledge those whose land and history surrounded the training location. Networking opportunities allowed participants to exchange ideas and form connections, and feedback indicated a significant increase in knowledge and confidence in navigating the program’s complexities.
“The pace of this course felt comfortable, like you had time for the information to really sink in,” said Shelby Hughes, a Native American Community Development Corporation Financial Services employee new to loan packaging. “Unlike previous trainings, this course felt more comfortable, even though it was fast-paced and dealt with a large amount of material.”
Challenges remain, hope persists
Despite the recent training efforts, questions remain about whether these workshops can significantly increase the use of USDA 502 Direct loans on tribal trust lands. Systemic barriers and a complex relationship between communities and federal agencies pose ongoing challenges. Addressing these disparities will require sustained partnerships between community organizations, tribal housing departments and the federal government.
“Collaborative efforts like the RCAC tribal training are needed and valuable as we recognize that the challenges in making loans in tribal communities exist; however, we continue to strive to make improvements and find innovative solutions to help tribal communities with homeownership,” said Andria Hively, the special programs branch chief at USDA-RD SFHD programs. “One innovative solution has been through our Native Community Development Financial Institution Relending Program, established in 2018, which continues to see growth annually and further builds and sustains collaborations in tribal communities.”
Chamberlain acknowledged the longstanding challenges of securing mortgages on tribal trust land but expressed confidence that the recent training would empower more professionals to utilize the 502 Direct loan program.
RCAC remains dedicated to dismantling systemic barriers and facilitating access to affordable home loans for Indigenous households and households of color. Through initiatives like HIRWE, RCAC strives to make the dream of owning a home a reality for these communities.
“It’s about more than just having people in the same room,” Chamberlain said. “We’re bringing communities together to form partnerships to address these issues, ensuring resources reach our most underserved populations.”
Also in this issue of Network News:
RCAC helps Guam subdivisions fight for basic infrastructure, housing after typhoon
When Typhoon Mawar devastated Guam in May 2023, it laid bare a long-simmering crisis for residents in the northern village of Yigo. Subdivisions like Gill Baza, Gill-Breeze, and Zero Down, established in the 1990s to accommodate the island’s expanding Micronesian workforce, suffered from decades of neglected infrastructure and broken promises made by exploitative developers.
M&J Mobile Home Park
M&J Mobile Home Park, located in Fielding, Box Elder County, Utah, is a very low-income community of about 22 people that has struggled with high arsenic levels and contamination risks in its drinking water in recent years. RCAC began working with M&J in fall 2017, after the Utah Division of Drinking Water issued a “Do Not Use” order due to the system’s dire state.
