Red Lake Tribe, Housing Authority and First National Bank Closes Loan for $4.9 M
Phase I construction of 45 of 90 unit Housing Development
The Loan Closing between the Red Lake Band of Chippewa, Red Lake Reservation Housing Authority and the First National Bank of Bemidji for $4,905,140.00 was signed August 12, 2013 for the construction of Phase I which consists of 45 units of a 90 unit Housing Development.
On hand to sign the documents were Floyd Jourdain, Jr., Chairman of the Red Lake Band, Richard Barrett, Sr., Chairman of the Board of Commissioners for the Red Lake Reservation Housing Authority and Hugh Welle of the First National Bank.
The project has been worked on for several years. The Red Lake Band first had to put in the roads, and water and sewer lines. This was funded by Tribal Roads, Bureau of Indian Affairs funds and a loan/grant from the U.S. Department of Agriculture.
Funding for Phase I of the development of the units involved a Red Lake Indian Housing Block Grant, the Red Lake Housing Finance Corporation, Minnesota Housing Finance Corporation, Greater Minnesota Housing Fund and the Title VII loan from First National Bank. Phase II will include the same funding sources, as well as New Market Tax Credits.
The cost of construction per unit is $108,500.00. Because of cooperation of the many funding sources used for the project, the units will be sold at an affordable price of $78,000.00 to Red Lake Band members.