Indian Housing Fact Sheet

Indian Housing FACT SHEET

Immediate Need

An estimated 200,000 housing units are needed immediately in Indian country. *
Homeless: Approximately 90,000 Native families are homeless or under-housed. *

* (U.S. Commission on Civil Rights, "A Quiet Crisis: Federal Funding and Unmet Needs in Indian Country," 2003)

Overcrowded and Substandard Conditions

In tribal areas, 14.7% of homes are overcrowded, compared to 5.7% of homes of the general U.S. population. (Census Bureau, 2000)
Lack of Plumbing: On Native American lands, 11.7% of residents lack complete plumbing facilities, compared to 1.2% of the general U.S. population. (Census Bureau, 2000)
Lack of Telephone Service: 16.9%, compared to 2.4%. (Census Bureau, 2000)
Lack of Kitchen Facilities: 11%, compared to 1% (Government Accounting Office, 2005)
Lack of Utility Gas: 72%, compared to 49% (Government Accounting Office, 2005)

Indian Housing Primary Funding

The Native American Housing Block Grant (NAHBG) was funded at $623.7 million for FY 2006, marking the fourth straight year that it has been either cut, flatlined, or minimally increased since FY02, when it reached $650 million. In FY05, of the $622 million total, about $340 million was designated for new construction (NAIHC figures based on Annual Performance Reports from tribes).
The Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), the program in which NAHBG is the economic centerpiece, has helped more than 60,000 families in some capacity, including down payment assistance, rental assistance, home rehabilitation, and new home construction (NAIHC Housing Survey, 2004).

Cost of New Homes

The average cost of a new home on a reservation is $125,000. (U.S. Department of Housing and Urban Development [HUD], 2003)

Demographics

Number of Tribes: There are 561 federally recognized tribes, of these, 229 are Alaska Native Villages. (Federal Register, 12/05/03; Vol. 68, No. 234)
NAIHC membership: The National American Indian Housing Council has 253 member housing entities representing the 454 of the 561 federally recognized tribes. (As of June 2005)
Total Population: More than three-quarters of a million Native Americans live on reservations or in other tribal areas. (Another 1.68 million live outside tribal areas.) (Fannie Mae 2005 report based on Census statistics)
High Schoolers: As of 2003, almost 8% of AIANs, Native Hawaiians, and other Pacific Islanders were high school-age children (14-17), tops among all racial/ethnic groups. (Census Bureau, 2003)
Rural: A total of 34% of the Native population resides in rural areas, where many reservations are located. (Census Bureau, American Indian/Alaska Native Heritage Month, 2003)
Western: Four of ten American Indians live in Western states: AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY. (Census Bureau, 2003)

Poverty and (Un)employment

Poverty Rate: The poverty rate for Native Americans is approximately 26%—2.6 times higher than that for whites and more than twice the average for all Americans, at approximately 12%.
Unemployment Rate: rates for Indians living in Indian areas remains more than twice as high as the U.S. rate of 6%. In all Indian areas the unemployment rate is 22% for non-gaming tribes and 15% for gaming tribes. (Harvard Project on American Indian Economic Development: A Databook of SocioEconomic Change between the 1990 and 2000 Censuses)

A NAIHC survey of its membership (August 2005) showed an average unemployment rate of 43% and 42% among tribes with gaming. The Rosebud Indian Reservation in South Dakota has an unemployment rate of 80%. (Harvard Project on American Indian Economic Development report on Native Americans at the New Millennium.)
Income: Native Americans have the second lowest median household income, $32,116, while whites have the highest at $46,305. (Census Bureau press release, 9/24/2002)

Entrepreneurship

There were 206,125 American Indian and Alaska Native-owned businesses in 2002, with receipts of $26.4 billion. AIAN-owned firms were prevalent in many industries, with the largest concentrations in construction; retail trade; professional services; health care; and other services. Receipts were highest in retail trade and construction. AIAN-owned businesses accounted for 8% of firms in Alaska and about 5% of firms in both Oklahoma and New Mexico. (U.S. Census Bureau, 7/28/2005 press release)

Gaming

The proceeds of Indian gaming, unlike that of commercial gaming, are not "profit," but rather go toward funding of tribal programs, such as housing. For many gaming tribes, the primary purpose is employment. Currently 224 tribes operate 354 facilities, providing 400,000 jobs—75% of them to non-Indians; 73 of the gaming tribes distribute a per-capita payment to tribal members (who pay federal taxes on that income). (National Indian Gaming Association, 8/3/2005)
Disparate benefits: Of the gaming tribes, 90 (40%) make less than 1% of the industry's gross revenue and less than that in net revenue. Two-thirds of the gaming operations account for just 10% of the overall revenue with annual gross revenue of $25 million or less. The remaining one-third account for 90% of the revenue. (NAIHC: "Home Not Sweet: The Effect of Poor Housing Conditions on Native Americans and Their Children")

Mortgage Financing

The Native American homeownership rate is estimated to be as low as 33%, lowest among all ethnic groups and less than half the rate for the general U.S. population. ("Homeownership in Indian Country," The Enterprise Institute, 2004)
HUD Section 184 Indian Housing Loan Guarantee Program: Created in 1992, the program provides 100% reimbursement to private lenders in case of default. It has facilitated 2,647 loans amounting to almost $277 million; more than 280 individual financial institutions, a number of which have multiple branches, have become participants in Section 184; 27 of them are new in FY 2005. Of the 2,647 loans, 1,628 were fee simple, 119 on individual allotments and 900 on tribal trust. From 2004-2005 production increased: 2004- 619 loans for over $62 million; 2005- 634 loans for almost $77 million. (HUD as Nov. 7, 2005)
Fannie Mae Invests in Indian Country: Over the most recent five years, Fannie Mae provided $640 million for more than 7,100 families on tribal lands. From year to year their investment grew exponentially, from $30.2 million in 1999 to $290 million in 2003. (Fannie Mae as of October 2004)
Denial Rates for Conventional Home Purchase Loans

In 2002 In 2003

Native American 23 % 23 %

White 12 % 11.6 %

Hispanic 18 % 18.4 %

Black 26 % 24.3 %

Asian 10 % 11.4 %
Number of Conventional/Government-Backed Home Purchase Loans Made to Americans

In 2002 In 2003 % change

Native American 18,752 17,850 -4.8 %

White 3,341,732 3,717,880 11.3 %

Hispanic 449,893 528,529 17.5 %

Black 291,491 334,658 14.8 %

Asian 206,909 240,407 16.2 %

(All loan data from: Federal Financial Institutions Examination Council for institutions covered by the Home Mortgage Disclosure Act, August 2004)
A review of Home Mortgage Disclosure Act (HMDA) data revealed a 39-percent increase in housing loans to American Indians and Alaskan Natives between 1997 and 2001. ("Overcoming Challenges and Seizing Opportunities in Indian Country," speech by Governor Mark W. Olson, 2002)