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- By Chez Oxendine
- Real Estate
The Bureau of Indian Affairs has approved a residential leasing ordinance adopted by the Mohegan Tribe of Indians of Connecticut under the Helping Expedite and Advance Responsible Tribal Homeownership (HEARTH) Act of 2012.
The approval clears the way for the tribe to issue its own residential leases without needing to further engage the Secretary of the Interior in the process. The tribe now has more control over their economic and housing development efforts.
The HEARTH Act approval enables tribes like Mohegan to significantly expedite residential leasing processes that traditionally face lengthy BIA reviews, potentially removing barriers to tribal members seeking mortgages and homeownership, per prior Tribal Business News reporting. Tribes that have implemented HEARTH Act authority, such as the Pueblos of Isleta and Jemez in New Mexico, report that self-governance over leasing helps tribal members access government loan programs more efficiently, including HUD Section 184 and USDA Section 502 loans.
The HEARTH Act amended the Indian Long Term Leasing Act of 1955 to allow tribes to develop regulations around residential and business development, then submit those to the Department of the Interior. If approved, tribes can utilize those frameworks to issue their own leases, as opposed to working through the Department of Interior’s approval process, which could slow down or stymie new leasing efforts entirely if the department was thoroughly backlogged.
Under the approval, the Mohegan Tribe can enter into residential leases with a primary term of up to 75 years without further BIA approval. The HEARTH Act also authorizes tribes to negotiate business leases with primary terms of 25 years, plus up to two renewal terms of 25 years each.
The Federal Register notice states that improvements, activities, and leasehold interests on Mohegan lands may be subject to taxation by the tribe, but are not subject to state and local taxes under federal rules.
The approval, issued on March 18 by BIA Director Bryan Mercier, is the first such approval under President Donald Trump’s second administration and Sec. Doug Burgum’s Department of Interior.
