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

Jun 23, 2023 •212 likes •575 views

TRAVOIS Travois & the Housing Tax Credit Program in Indian Country Travois 15-year family-owned small business with award-winning experts in LIHTC industry Headquartered in Kansas City Named one of Kansas Citys top 25

  1. TRAVOIS Travois & the Housing Tax Credit Program in Indian Country

  2. 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

  3. 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

  4. Travois Tribal Travois Tribal Developments Developments

  5. Historical Mistreatment

  6. Misperceptions of Tribal Culture Myths: • Insecure Collateral • Sovereign Immunity • Asset Preservation

  7. Misperceptions of Tribal Culture Constraints and Opportunities: • Trust Land • 30% Rule • Tribal Preference

  8. Tribal Culture •Tribes are “Dependent Sovereign Nations” or “Domestic Dependent Nations” •562 Federally Recognized Tribes in the United States •Hundreds of Different Languages and Traditions

  9. 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%

  10. Tribal Sovereignty • Choice of Law and Jurisdiction • General Waiver Versus Limited Waiver of Sovereign Immunity • PL 280 and Misunderstandings Thereto

  11. Understanding the Nuances of Indian Country Housing & Demographic Characteristics

  12. Indian Country Household Growth Household Growth 320,000 Households 310,000 Series1 300,000 290,000 280,000 2000 2005 2010 Year 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.

  13. Share of Population by Age Population Distribution 48.1% 50.0% 43.4% 45.0% 36.2% 40.0% Indian Country 35.0% 29.3% All of U.S. 30.0% 25.0% 20.0% 11.0% 12.6% 15.0% 9.3% 10.1% 10.0% 5.0% 0.0% 0 to 20 21 to 54 55 to 64 65+ Age Group 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.

  14. Indian Country Population Growth Trends by Age (2005-2010) Change In Population By Age: 2005 To 2010 18.0% 16.0% 14.0% 15.3% 12.0% Percent Growth 12.4% Overall 10.0% Age 0 to 20 8.0% 6.0% Age 21 to 54 4.0% Age 55 to 64 2.0% Age 65+ 3.0% 1.9% 0.0% -1.6% -2.0% -4.0%

  15. Disability Rates – Senior Households Disability Breakdown: Persons Age 65+ 33.9% 35.0% 28.6% 30.0% 22.7% 25.0% 20.4% 20.1% 20.0% 14.2% 14.3% Indian Country 15.0% 10.8% 10.3% 9.5% All of U.S. 10.0% 5.0% 0.0% Sensory Physical Mental Self-Care Go-Outside- Disability Disability Disability Disability Home Disability

  16. Disability Rates – All Households Disability Breakdown: Age 16+ 14.0% 12.1% 11.2% 12.0% 9.8% 10.0% 10.0% 8.6% 8.6% 8.0% 7.0% 5.9% Indian Country 6.0% 4.9% All of U.S. 4.2% 3.5% 4.0% 3.0% 2.0% 0.0% Sensory Physical Mental Self-Care Go-Outside- Employment Disability Disability Disability Disability Home Disability Disability

  17. Single-Parent Households Single-Parent Households 16.0% 14.2% Share of All Households 14.0% Indian Country 10.4% 12.0% All of U.S. 9.1% 10.0% 7.0% 8.0% 3.7% 6.0% 2.1% 4.0% 2.0% 0.0% Male Female Total

  18. Population Share of Large Family Households (4-person or Larger) Four-Person or Larger Households 40.0% 35.0% 33.1% 30.0% Indian Country 24.7% 25.0% All of U.S. 20.0% 15.0% 10.0% 5.0% 0.0% 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.

  19. Population Share by Persons per Household (4-person or Larger) 4-Person Or More Households 16.0% 14.1% 14.0% 14.0% 12.0% 9.2% 10.0% Indian Country 8.0% 6.5% All of U.S. 5.0% 4.9% 6.0% 4.0% 2.5% 1.7% 2.0% 0.0% 4-Person 5-Person 6-Person 7-Person 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.

  20. Overcrowded Households Share of Overcrowded Housing Units (1.01+ Persons per Room) Share of H ouseholds 14.0% 13.5% 12.0% Indian Country 10.0% All of U.S. 8.0% 6.0% 5.7% 4.0% 2.0% 0.0% 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.

  21. 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%

  22. Rent Overburdened Households Rent Overburdened Households 3 9 .0 % 40.0% 3 6 .8 % 3 2 .4 % 35.0% 30.0% 2 7.0 % 2 3 .2 % 25.0% 20.0% 17.0 % Indian Country 15.0% All of U.S. 10.0% 5.0% 0.0% Less than 20 to 29 Over 30 20 P ercent P ercent P ercent Gross Rent as a P ercentage of Income Tribal subsidies help keep rent burdens low

  23. Substandard Housing – Plumbing Lacking Complete Plumbing Facilities 5.9% 6.0% 5.0% 5.0% 4.0% 3.0% Indian Country 2.0% 1.0% All of U.S. 0.6% 1.0% 0.3% 0.3% 0.0% Ow ner- Renter- Total Occupied Occupied 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.

  24. Substandard Housing – Kitchens (2000) Lacking Complete Kitchen Facilities 5.8% 6.0% 5.2% 5.0% Indian Country 4.0% 3.1% All of U.S. 3.0% 2.0% 1.3% 0.7% 1.0% 0.3% 0.0% Owner-OccupiedRenter-Occupied Total Occupied 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.

  25. 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

  26. 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

  27. 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

  28. 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

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

  30. 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 often the homeless.

  31. Traditional LIHTC risks mitigated in Indian Country •Risk of Foreclosure •Management/Compliance Risk •Operating Risk •Market Risk •Construction Risk

  32. Due Diligence •Appraisals •Title Status Reports (in lieu of Title Insurance) •Government Approvals (building permits, zoning, etc.) •Pro-forma

  33. Asset Management •Site Visits (project versus location) •Vacancy Rates •Reporting •Compliance

  34. Tribal Developments Cuspes Park, Maine Yavapai Apache, Arizona Iscani Homes, Oklahoma

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