Residential Leasing and Mortgaging on Indian Lands New Mexico Housing Summit August 21, 2014

Regulations 2 25 CFR § 162 Updated December 5, 2012

Subpart C – Residential Leasing 3 General Provisions §§ – Lease Requirements §§ – Rental Requirements §§ – Bonding and Insurance §§ –

4 Approval §§ – Amendments §§ – Assignments §§ – Subleases §§ – Subpart C – Residential Leasing

5 Leasehold Mortgages §§ – Effectiveness, Compliance, and Enforcement §§ – Subpart C – Residential Leasing

Requirements Legal Description – § Reference public or private survey, or Legal description Survey-grade GPS Registered land surveyor Rent – § Amount determined by the tribe to be in its best interest Appraisal at the request of the tribe Tribe not bound by the appraised FMV 6

Approval 7 Required documents – § Lease Tribal authorization Valuation (if required) Environmental clearance Legal description Lease Review – § May be requested prior to submittal for approval 10 days to review

Approval 8 Approval Process – § Best interest of the Indian landowners Review lease & supporting documents Ensure compliance with applicable laws “Promptly” notify if package is complete If incomplete, letter to tribe identifying missing documents If complete, BIA notifies tribe of date of receipt 30 days to approve or disapprove

Approval 9 BIA Decision-making Process – § Approval unless: Required consents not obtained Subpart requirements not met Protect best interest of landowner Recording of Lease – § Any residential lease, amendment, assignment, or leasehold mortgage must be recorded in the DLTR Residential subleases need not be recorded

Leasehold Mortgage 10 Consent Requirement – § Unless stated in lease, consent is required Approval Process – § BIA notifies tribe when package received 20 days to approve or disapprove

Leasehold Mortgage 11 BIA Decision-making Process – § Approval unless: Required consents not obtained Subpart requirements not met Protect best interest of landowner NOTE: Contact your local BIA agency early in the process because Environmental review, Section 106 concurrence, and TSR all take time.

Realty’s Steps 12 What happens when BIA receives a lease? Review per 25 CFR 162 Request approval from Regional Director Encode into electronic system of record Image into electronic system of record TIR log updated DLTR takes over

Contacts 13

14

The End 15