The Tohono O’odham Ki:Ki Association (TOKA) has achieved a significant housing milestone with the San Miguel Homes development — the first New Markets Tax Credit-financed project to support affordable, for-sale housing on Tribal land.
The San Miguel Homes development is a planned 12-home subdivision located in the San Miguel neighborhood of the Tohono O’odham Nation in southern Arizona. Designed by Travois Architecture, the subdivision features three- and four-bedroom homes tailored to meet the needs of the community.
Bringing affordable homeownership to Tribal families
Housing shortages are a critical issue for Tribal communities nationwide. While the Low-Income Housing Tax Credit (LIHTC) has been effective in expanding rental housing on Tribal land, affordable options for homeownership have been limited, with no federal program specifically designed to address this gap. In the Tohono O’odham Nation alone, the waitlist for new housing exceeds 600 applicants. TOKA sought to directly address this need.
How New Markets Tax Credit (NMTC) financing made the project possible
The NMTC program, managed by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund, has traditionally been used for commercial and community facility development. This program provided the necessary mechanism to bridge the financing gap for TOKA. By using NMTC, TOKA was able to reduce the capital required for upfront contributions, allowing them to sell homes to low- and middle-income families at affordable prices.
“This deal came together because each partner brought valuable experience to the table,” said Drew Hammond, senior vice president and business development officer with U.S. Bancorp Impact Finance, a community development financing division of U.S. Bank. “Travois brought deep knowledge of Tribal housing, TOKA brought a clear vision for homeownership, Chickasaw Nation Community Development Endeavor (CNCDE) brought the allocation and U.S. Bank brought experience structuring New Markets Tax Credits for homeownership.”
“TOKA is proud to work with U.S. Bank to utilize NMTCs to bring much-needed new housing to our Tribal members,” stated Board Chairman Marcos Ysmael. “This exciting endeavor marks the first time NMTC has been applied to housing development. With over 600 applicants on the waitlist for new housing on the Tohono O’odham Nation, this new funding opportunity offers an essential way to address the pressing need for affordable housing.”
Creating a new path forward for Tribal housing
The use of NMTCs in the San Miguel Homes project serves as a model for other Tribal nations in need of middle-income housing to meet their communities’ needs. Chris Tweedy, president and CEO of the Chickasaw Nation’s Capital Access, commented, “Together, this collaboration will expand homeownership opportunities for TOKA San Miguel and also offer a new way forward for NMTCs to support critical housing needs for Tribes.”
As one of the first NMTC-financed developments to support affordable, for-sale homes on Tribal land, the San Miguel Homes development demonstrates how innovative financing can help address housing needs and expand homeownership opportunities in Tribal communities.
“The NMTC can create homeownership opportunities for working families across the country,” said Phil Glynn, president of Travois. “We applaud TOKA and CNCDE on this innovative effort to make the dream of homeownership a reality for Tohono O’odham families.”