HELPING IMPOVERISHED CALIFORNIA RESERVATION INCREASE SELF-SUFFICIENCY AND IMPROVE HOUSING

Hoopa Development Fund
Hoopa, Calif.

Situation:

The Hoopa Valley Indian tribe suffers from crushing poverty, including 30 to 75 percent unemployment. It is located in a beautiful but remote part of northern California. The Hoopa Tribal Government wanted to improve tribal life through a homeownership program. They also hoped to spur economic development by financing a Wildfire Station where members of the Hoopa tribe could be trained for employment fighting forest fires through the region. Because the tribe is a sovereign nation, it was difficult for mainstream lenders to invest in the tribe.

Solution:

CRF helped the tribe deal with the lending barriers by providing a tribal Uniform Commercial Code. We also helped them develop the financial structure to achieve CDFI status so they could attract grants and secondary market investors. Besides extensive consulting, CRF provided a $1 million advanced commitment for housing loans. CRF also contributed additional financing for the Wildfire Station, which when combined with $2.5 million from HUD and BIA, completed the deal.

Benefits:

Sixteen more families have the housing they need, which has a far-reaching impact on the small reservation. Not only are individual lives improved, but hope and pride are also fostered. The Wildfire Station added 131 well-paying jobs in place where good jobs are scarce. CRF’s advice and funding helped the Hoopa Tribe achieve dramatic, culturally appropriate improvements.