Johnson Bill Enables Property, Home Purchases in Indian Country

Washington, D.C. – Today, U.S. Representative Dusty Johnson (R-S.D.) introduced the Tribal Trust Land Homeownership Act to advocate for homeownership and streamline the approval process for mortgages on tribal trust land. Senate Majority Leader John Thune (R-S.D.) introduced companion legislation in the Senate.

“Homeownership is a dream for many across America, and it’s no different on tribal lands,” said Johnson. “Unfortunately, the Bureau of Indian Affairs’ (BIA) bureaucracy has made it more difficult than it already is. There must be accountability for the BIA so purchasers and lenders can operate with certainty.”

“We strongly support the Tribal Trust Land Homeownership Act, which reinforces the essential role of the Bureau of Indian Affairs and encourages the flow of private capital on tribal land,” saidSharon Vogel, Chair of the South Dakota Native Homeownership Coalition. “This legislation clears the way for Tribal Nations to prioritize homeownership and self-sufficiency for tribal citizens. We thank Congressman Dusty Johnson and Majority Leader John Thune for his leadership on this important issue.”

Currently, in order to be finalized, mortgages involving property on tribal trust land must be reviewed and approved by the Bureau of Indian Affairs (BIA). The BIA Mortgage Handbook establishes timelines for BIA offices to process and approve these mortgages. However, these timelines are not always adhered to.

The Tribal Trust Land Homeownership Act would:

• Seek to cut through BIA red tape and provide timely processing of mortgages.
• Create statutory timelines in which the BIA would be required to process and approve mortgages involving property located on tribal trust land.
• Require the BIA to notify lenders upon receipt of such documentation and perform a preliminary review of such documents not later than 10 days after receipt and approve or disapprove of such documents within 20 or 30 days, depending on the type of application. 
• Require the BIA to notify the lender once the proposed residential leasehold mortgage, business leasehold mortgage, or right-of-way document has been received. 
• Enhance the ability of certain federal agencies to operate their tribal housing programs and improve communication between the BIA and tribes, tribal members, and lenders through the establishment of a realty ombudsman within the BIA who can communicate with relevant parties.

The Tribal Trust Land Homeownership Act is cosponsored by U.S. Representatives Ryan Zinke (R-MT), Tom Cole (R-OK), and Joe Neguse (D-CO). It is endorsed by the South Dakota Native Homeownership Coalition.

Click here for full bill text.