Grant programs by FHLBank Indianapolis bring relief to Native American families in the U.P.

Over the past four years, several Native American families have been beneficiaries of financial assistance amounting to thousands of dollars. This funding, which has been critical for major and minor household repairs – ranging from roofing needs to water heater replacements – came from the Neighborhood Impact Program (NIP), a program of the Federal Home Loan Bank (FHLBank) in Indianapolis, Indiana. This became possible due to a successful partnership with the Lake Superior Community Development Corporation.

The NIP, a grant initiative from FHLBank Indianapolis, was designed specifically to provide Native American families with up to $10,000 in financial assistance. This financial assistance is targeted toward essential household repairs, including roof replacements, furnace repairs, water heater replacements, and water and sewer issues, among others. The NIP is part of a larger cooperative effort between FHLBank Indianapolis and the nonprofit Lake Superior CDC, aimed at promoting homeownership and entrepreneurship among Native American families in Michigan.

Eddy Michael Edwards, the executive director of Lake Superior CDC, points out that the grant program has been a significant help to low-income households that would otherwise struggle to finance necessary home repairs. “For someone relying on social security, raising $9,000 for a new roof or $8,000 for window replacements and new insulation can be a daunting task,” says Edwards. “Therefore, this program makes a substantial impact on the living conditions of these households.”

Understanding the unique needs of tribal communities is at the heart of Lake Superior CDC’s mission. This includes the ability to navigate the unique challenges involved in obtaining capital, such as identifying knowledgeable lenders and fostering relationships with supportive external entities.

American Indians historically haven’t focused on wealth accumulation, explains Edwards. Unlike in other cultures, where assets like stocks, bonds, and property are passed down through generations, this practice was uncommon in Indian Country for many years. This program provides an opportunity for American Indian families to enhance their asset bases and promote self-sufficiency.

Finding banks that understand tribal court systems and are willing to invest in reservation communities can be challenging. However, Lake Superior CDC found a beneficial partner in the Federal Home Loan Bank (FHLBank) Indianapolis. As a regional cooperative bank owned by its member institutions in Indiana and Michigan, FHLBank Indianapolis is part of the national Federal Home Loan Bank system. This system ensures that its members – including banks, credit unions, insurance companies, and Community Development Financial Institutions – have access to liquidity to support their local communities.

Michigan, which is part of the FHLBank Indianapolis district, is home to more than 60,000 Indigenous people and 12 federally recognized Indian tribes, including the Bay Mills Chippewa Indian community, Hannahville Potawatomi Indian community, Keweenaw Bay Indian Community, Lac Vieux Desert Band of Lake Superior Chippewa Indians, and the Sault Ste. Marie Tribe of Chippewa Indians.

MaryBeth Wott, Senior Vice President of Community Investment and Underwriting/Collateral Operations Officer at FHLBank Indianapolis, expresses the bank’s pride in its partnership with Lake Superior CDC. “We are always honored to support Lake Superior CDC’s mission of promoting homeownership and asset-building within Native tribal communities,” she says. Wott commends Edwards for his leadership and dedication to his community.

Edwards finds the task of providing families with the opportunity to own homes and pass them on to future generations both rewarding and honorable. He believes that helping his community, especially in Michigan, to become self-sufficient and increase their assets is critical. The dream is to extend the reach of the nonprofit to any American Indian in Michigan, a vision supported by programs such as the nonprofit, Native Community Development Financial Institution (CDFI).

Traditional banks often hesitate to work with tribal governments, limiting many Native communities’ access to capital funds for improvement and, subsequently, stunting development and sustainability. However, the collaboration with FHLBank Indianapolis has been instrumental in helping Lake Superior CDC guide Native American residents to homeownership.

Through FHLBank’s Homeownership Opportunity Program (HOP), the Accessibility Modification Program (AMP), and the Neighborhood Impact Program, many low-income households have received assistance for critical home renovations. The difference these programs have made is significant, says Edwards.

Looking forward, Edwards envisions utilizing FHLBank Indianapolis’s Community Investment Program, which offers reduced-rate lending for projects such as affordable housing and commercial economic development in qualifying neighborhoods.

Work to boost accessibility and sustainability for native families is a significant cause for Edwards, and he is proud to witness the nonprofit’s growth, facilitated in part by FHLBank. He notes that inadequate access to capital has historically fostered a sense of dependency on the federal government among American Indians.

Programs offered by FHLBank Indianapolis are slowly changing this narrative, increasing the assets and self-sufficiency of Indian families and allowing the FHLBank the opportunity to invest in Indian countries in America. Edwards finds this a great and promising development.

Sarah Spohn is a Lansing native, but every day finds a new interesting person, place, or thing in towns all over Michigan, leaving her truly smitten with the mitten. She received her degrees in journalism and professional communications and provides coverage for various publications locally, regionally, and nationally — writing stories on small businesses, arts and culture, dining, community, and anything Michigan-made. You can contact her at [email protected].