TRAVOIS Travois & the Housing Tax Credit Program in Indian - - PowerPoint PPT Presentation

Travois & the Housing Tax Credit Program in Indian Country

TRAVOIS

Travois

• 15-year family-owned small business

with award-winning experts in LIHTC industry

• Headquartered in Kansas City
• Named one of Kansas City’s top 25

companies with fewer than 25 employees

• Mission driven company

Travois Track Record

• Travois has generated more than $350

million in equity to build or rehabilitate 3,700 housing units

• Provided financing for 140 projects with more

than 50 tribes – with no disputes

• No recapture or sustained non-compliance on

any of Travois tribal developments

• Recipient of $110 million in NMTC from U.S.

Treasury

Travois Tribal Travois Tribal Developments Developments

Historical Mistreatment

Misperceptions of Tribal Culture

Myths:

• Insecure Collateral
• Sovereign Immunity
• Asset Preservation

Misperceptions of Tribal Culture

Constraints and Opportunities:

• Trust Land
• 30% Rule
• Tribal Preference

Tribal Culture

• Tribes are “Dependent Sovereign

Nations”

• r “Domestic Dependent

Nations”

• 562 Federally Recognized Tribes in

the United States

• Hundreds of Different Languages and

Traditions

Tribal Economies

• 227 Tribes and Native Alaska

Villages (40% of all Tribes) Operate Casinos (440 total establishments)

• Annual Gross Revenues of about

$27 Billion

• About 50 Casinos (9%) Generate

70% of all Revenues

• Most Tribes have never seen

unemployment under 25%

Tribal Sovereignty

• Choice of Law and Jurisdiction
• General Waiver Versus Limited Waiver
• f Sovereign Immunity
• PL 280 and Misunderstandings

Thereto

Understanding the Nuances

• f Indian Country Housing &

Demographic Characteristics

Indian Country Household Growth

The number of Indian Country households increased by The number of Indian Country households increased by 7.4% between 2000 & 2010, but is likely undercounted. 7.4% between 2000 & 2010, but is likely undercounted.

Household Growth

280,000 290,000 300,000 310,000 320,000 2000 2005 2010 Year Households Series1

Share of Population by Age

36.2% 29.3% 43.4% 48.1% 9.3% 10.1% 11.0% 12.6%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 0 to 20 21 to 54 55 to 64 65+

Age Group

Population Distribution

Indian Country All of U.S.

Indian Country has a higher share (36.2%) of younger Indian Country has a higher share (36.2%) of younger people (less than age 21) than the overall U.S. share. people (less than age 21) than the overall U.S. share.

Indian Country Population Growth Trends by Age (2005-2010)

Change In Population By Age: 2005 To 2010

3.0%

• 1.6%

1.9% 15.3% 12.4%

• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Percent Growth

Overall Age 0 to 20 Age 21 to 54 Age 55 to 64 Age 65+

Disability Rates – Senior Households

22.7% 14.2% 33.9% 28.6% 14.3% 10.8% 10.3% 9.5% 20.1% 20.4%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Sensory Disability Physical Disability Mental Disability Self-Care Disability Go-Outside- Home Disability

Disability Breakdown: Persons Age 65+

Indian Country All of U.S.

Disability Rates – All Households

7.0% 4.2% 12.1% 9.8% 5.9% 4.9% 3.5% 3.0% 8.6% 8.6% 11.2% 10.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Sensory Disability Physical Disability Mental Disability Self-Care Disability Go-Outside- Home Disability Employment Disability

Disability Breakdown: Age 16+

Indian Country All of U.S.

Single-Parent Households

3.7% 2.1% 10.4% 7.0% 14.2% 9.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Share of All Households Male Female Total

Single-Parent Households

Indian Country All of U.S.

Population Share of Large Family Households (4-person or Larger)

33.1% 24.7%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

Four-Person or Larger Households

Indian Country All of U.S.

The share of large family (4-person or larger) The share of large family (4-person or larger) households in Indian Co households in Indian Country is more than a untry is more than a third higher than the overall U.S. share. third higher than the overall U.S. share.

Population Share by Persons per Household (4-person or Larger)

14.1% 14.0% 9.2% 6.5% 5.0% 2.5% 4.9% 1.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 4-Person 5-Person 6-Person 7-Person

4-Person Or More Households

Indian Country All of U.S.

The disparity of large fam The disparity of large family households is more ily households is more pronounced as the household size increases in Indian pronounced as the household size increases in Indian Country. Country.

Overcrowded Households

13.5% 5.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Share of H ouseholds

Share of Overcrowded Housing Units (1.01+ Persons per Room) Indian Country All of U.S.

The share (13.5%) of overcrowded households The share (13.5%) of overcrowded households (those with 1.01+ persons per room) in Indian (those with 1.01+ persons per room) in Indian Country is more than double the overall U.S. share. Country is more than double the overall U.S. share.

Median Household Incomes

Community Reservation County Difference Whiteriver, AZ $26,476 $36,295 37.1% Mandaree, ND $33,834 $36,833 8.9% Hays, MT $27,910 $31,820 14.0% Indian Twp., ME $25,565 $31,697 24.0%

Rent Overburdened Households

3 9 .0 % 3 2 .4 % 17.0 % 2 3 .2 % 2 7.0 % 3 6 .8 %

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Less than 20 P ercent 20 to 29 P ercent Over 30 P ercent Gross Rent as a P ercentage of Income Rent Overburdened Households Indian Country All of U.S.

Tribal subsidies help keep rent burdens low

Substandard Housing – Plumbing

5.0% 0.3% 1.0% 0.3% 5.9% 0.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Ow ner- Occupied Renter- Occupied Total

Lacking Complete Plumbing Facilities

Indian Country All of U.S.

The share of occupied housing units that lack The share of occupied housing units that lack complete plumbing facilities is nearly 10 times complete plumbing facilities is nearly 10 times greater greater in Indian Country than the overall U.S. share. in Indian Country than the overall U.S. share.

Substandard Housing – Kitchens (2000)

5.8% 0.3% 3.1% 1.3% 5.2% 0.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Owner-OccupiedRenter-Occupied Total Occupied

Lacking Complete Kitchen Facilities

Indian Country All of U.S.

The share of occupied housing units that lack The share of occupied housing units that lack complete kitchen facilities is over 7 times greater complete kitchen facilities is over 7 times greater in in Indian Country than the overall U.S. share. Indian Country than the overall U.S. share.

Demand Considerations

• Under traditional demand methodologies,

it is not unusual for a project to have a high capture rate (sometimes exceeding 100%).

• Alternative demand analysis

methodologies in Indian Country projects should account for: – Large-family households – Overcrowded households – Substandard housing units

Rent Considerations

• Rents need to be affordable to tribe

members, particularly those on the Housing Authorities wait list

• Market Rent Advantage often requires

analysis of off-reservation housing

Site Issues

Many state finance agencies award points in the Tax Credit application process for site location issues: – Proximity to community services – Surrounding land uses – Visibility and access Rules for proximity to community services proximity to community services usually don’t apply in Indian Country (long commutes are more acceptable & rural settings are desirable) Site access and visibility access and visibility are less of a factor (most people know where housing is located) Surrounding land uses Surrounding land uses typically consist of undeveloped land and do not impact marketability

Amenity Issues

Some state finance agencies award points in the Tax Credit application process for amenities offered: Most housing in Indian Country has basic unit amenity packages, which is acceptable and marketable, as it keeps rents low Dishwashers, microwave ovens, washers & dryers are considered “luxuries” Since most tribal projects are scattered single-family homes, they don’t have project amenities. Single- family homes are very marketable

Travois & the Housing Tax Credit Program in Indian Country (continued)

TRAVOIS

Typical Project

• New Construction or Substantial

Rehabilitation ($75,000 + in rehab costs)

• New Construction is almost always

built for eventual tenant ownership.

• Serves the lowest income tenants and
• ften the homeless.

Traditional LIHTC risks mitigated in Indian Country

• Risk of Foreclosure
• Management/Compliance Risk
• Operating Risk
• Market Risk
• Construction Risk

Due Diligence

• Appraisals
• Title Status Reports (in lieu of Title

Insurance)

• Government Approvals (building

permits, zoning, etc.)

• Pro-forma

Asset Management

• Site Visits (project versus location)
• Vacancy Rates
• Reporting
• Compliance

Cuspes Park, Maine

Tribal Developments

Yavapai Apache, Arizona Iscani Homes, Oklahoma

Please visit our website for more information www.travois.com

TRAVOIS