Native American communities continue to face a challenging road to homeownership in Montana, and one congressman is calling for a new path forward on Capitol Hill.
Rep. Troy Downing, Republican of Montana, said Native Americans in his state face some of the toughest challenges on the path to homeownership. Downing spoke Thursday during a U.S. House Committee on Financial Services hearing seeking housing solutions in rural areas.
“Some of the unique challenges include pretty significant rates of poverty. When you have that kind of impoverishment in any community, it is going to be difficult for them not just to pay their rent but give any sort of money towards a downpayment and build wealth,” said David Garcia, policy director for Up for Growth, a housing policy advocacy firm based in Oakland, California. Garcia joined three other panelists to discuss housing solutions for rural parts of the country during Thursday’s meeting.
Only 12% of Montana’s Native Americans own their home, according to the Montana Native Homeownership Coalition.
Panelist David Lipsetz of the Housing Assistance Council said he sees two solutions.
One opportunity? Native Community Development Financial Institutions, or CDFI, focus financial advising and lending efforts on marginalized populations, including indigenous populations. More agencies, Lipsetz said, can help give aspiring buyers the resources they need. Based in Washington, D.C., his nonprofit focuses on housing development and homeownership efforts in rural communities nationwide.
Some Native American CDFIs help make it less risky for private lenders to give out home loans, he said. They do this by covering part of the cost of the house, which makes the loan smaller and safer for the private lender. These private lenders aren’t trying to dominate the market, he continued. "Being able to fund those CDFIs is a small piece of the puzzle."
The second solution rests with the Department of Agriculture's 502 program, which is dedicated to providing financing for buyers in rural communities and on tribal land. They could lend a portion of that funding to the tribe, and then "the tribe itself can make the loan to the individual household on the ground."
They have done this successfully in demonstration programs," he said.