Leasing tribal land Leasing
Tribal Trust Land. To receive a loan guarantee on tribal trust lands, the borrower
must establish a leasehold interest in the land on which the home will be located. Leasehold
documents Below is a link to a standard lease form that has
been approved by the Bureau of Indian Affairs (BIA) for use on tribal trust land.
This sample lease form contains certain provisions that are required to be included
in leases for trust and restricted land used as collateral for the Section 184
Program.
Lease
modifications Modifications to the lease form can be made with
the approval of the BIA and the Office
of Native American Programs (ONAP). No lease modification may serve to obstruct
the right of the Department and/or evict the borrower or foreclose on, or sell
the property in the event of foreclosure. Parties
to the lease The lease must be executed by the Tribe, the borrower,
and approved by the BIA. Leasehold payments Payments,
if any, are negotiated between the tribe and the borrower. Lease
transfers and assignments The tribe, HUD/lender must approve
all transfers or assignments of the leasehold interest, except foreclosure. Lease
status at foreclosure HUD or the lender may assume title to the
leasehold interest without tribal approval of such transfer. However, anyone who
subsequently purchases or rents the leasehold property must be approved by the
tribe, HUD/Lender. Termination
The lease may not be terminated, while the Section 184 guarantee is in effect.
Likewise, in the event of foreclosure, the lease will not be subject to any forfeiture
or reversion and will not be otherwise subject to termination. |