San Carlos Housing Authority 

Post Office Box 7 40 

Peridot, AZ 85542 

Phone 928.475.2346 

Fax 928.475.2349 

Office Hours: 8:00 AM - 4:30 PM Monday-Friday 

September 1, 2020 

Via Email 

Treasury Tribal Advisory Committee 

Department of the Treasury 

1500 Pennsylvania Avenue NW, Room 14260 

Washington, DC 20220 

trib a l.consu lt@treasury.gov; TTAC@treasu ry .gov 

Re: Public Comment to the Treasury Tribal Technical Advisory Committee 

The San Carlos Housing Authority (SCHA) submits this public comment to the Treasury Tribal 

Advisory Committee (TTAC) to update you regarding the challenging situation that SCHA faces 

as our successful partnership with the Community Development Financial Institutions Fund 

(CDFI Fund) is now in jeopardy. We request the TTAC's assistance in helping facilitate a 

dialogue between SCHA and the CDFI Fund so that we may restore our partnership, which has 

had a significant positive impact on the San Carlos Apache community. 

As I reported in my oral statement on March 31 and our written comments (attached), SCHA 

received a $1.0 million award from the CDFI Capital Magnet Fund (CMF) in 2010. We used that 

award to leverage nearly $13 million in Low Income Housing Tax Credits (LIHTC) and investor 

equity. Through that effort, SCHA built 31 new affordable housing units and renovated SO 

existing units for low-income and very low-income San Carlos Apache citizens residing on San 

Carlos Apache Reservation lands. In addition to these Bl low-income housing units, the 

projects also constructed two community buildings and a basketball court. 

SCHA fully utilized the funding made available by CMF and investors in project planning, design 

and construction, project administration, and program activity in order to establish the families 

residing in these housing units as part of the San Carlos Apache community. In 2014, the CDFI 

Fund recognized the significant, lasting improvements these projects offered San Carlos Apache 

community citizens. It featured our housing project as a "Success Story" in the CMF Impact 

Assessment the CDFI Fund published in March 2014. SCHA is honored by the success of our 
partnership with the CDFI Fund in bringing vitally needed affordable housing to our community. 

We are proud to have been a responsible steward of federal and private funds. 

Today, however, six years after CMF highlighted SCHA as a success story and years after we 

completed all construction and established residents in those housing units, SCHA's relationship 

with the CDFI Fund is at a crisis point. Due to staffing and technological challenges beyond 

SCHA's control, SCHA missed several reporting deadlines and the CDFI Fund issued two 

Confirmation of Default letters in 2019. In response, SCHA requested an extension to cure in 

late 2019. While the CDFI Fund provided us with an extension until January 31, 2020, SCHA did 

not have the capacity to meet this deadline because it continued to face substantial staffing 

challenges and the CDFI Fund had not granted SCHA access to its online CMF reporting portal, 

the Awards Management Information System (AMIS). The CDFI Fund subsequently issued a 

Confirmation of Default and Notice of Intent to Collect Indebtedness of $1.0 million from SCHA 

on February 28, 2020, which cautioned that, without repayment, the COFI Fund would impose 

other penalties. 

When I presented SCHA's serious concerns about the status ofthis situation during the TTAC's 

March 2020 meeting, I remained optimistic that through dialogue with the CDFI Fund, we 

would reach an accommodation that would enable us to resolve any reporting deficiencies and 

restore our positive partnership. At that time, we had just submitted a letter (dated March 27, 

2020) that provided the CDFI Fund with details explaining the circumstances that caused those 

delinquencies, reported on SCHA's efforts to gather the remaining documentation to cure its 

reporting delinquencies, and requested access to the CFDI Fund's online report portal, AMIS. 

We requested a telephone or video conference to discuss our request prior to any CDFI Fund 

final determination on Default and Collection. 

SCHA believed that by opening this line of clear and necessary communication, we might be 

able to engage with COFI Fund officials to establish a process that would lead to mutually 

beneficial results. Such a pathway would permit SCHA additional time to cure as well as 

provide access to AMIS, which we had not had for over a year. This would enable SCHA and 

CMF to come into full compliance with the program reporting obligations. Such a collaborative 

effort would also enable SCHA and the CDFI Fund to reestablish the SCHA low-income housing 

projects as an illustration of a successful CDFI Fund partnership with a tribal housing authority. 

The preliminary response we received from the CDFI Fund by email on April 21, 2020, 

confirmed receipt of our request and stated that it was under review. The email also said the 

CDFI Fund expected to make a determination "over the next several weeks" and that 

representatives would " arrange a conference call" with us once a decision was made. The next 

communication we received from the CDFI Fund came on June 12, 2020, through an email that 

included a formal Confirmation of Default and Notice of Intent to Collect Indebtedness. The 

CDFI Fund's email response also provided the option to discuss its decision in a conference 

call. 

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On June 23, 2020, we sent a letter and email to the CDFI Fund that supplemented our previous 

correspondence and repeated our request for access to AMIS, which would make it possible for 

SCHA to complete the delinquent CMF Activities Reports and the Certification of Material 

Events. Without access to AMIS, SCHA transmitted additional documentation in our June 23 

email including audited financial statements for the limited partnerships for the housing 

projects and for SCHA for the years requested by the CDFI Fund. SCHA also reaffirmed our 

request for a conference call. 

The CDFI Fund, on July 6, 2020, sent SCHA an email message confirming receipt of our June 23 

letter. As an attachment, the CDFI Fund issued a Confirmation of Default letter. The CDFI 

Fund's demand for return ofthe full amount of the CMF award, which SCHA expended properly 

to leverage financing for low-income housing construction, administration and program 

implementation, is disproportionate to SCHA's delinquency in reporting. SCHA regrets its 

reporting delinquencies, but remains hopeful that the CDFI Fund will work with SCHA to 

establish an open line of communication to pursue a mutually beneficial resolution ofthese 

issues. 

Given our grave concern that the CDFI has determined to pursue collection, SCHA has 

submitted two additional letters to the CDFI Fund, to which we have not received a response. 

SCHA submitted a letter to the CDFI Fund on August 11, 2020, containing four discreet requests. 

First, SCHA asked that the CDFI Fund waive its declaration of default and intent to collect $1.0 

million pursuant to the agency's broad discretion under law. Second, SCHA informed the CDFI 

Fund that it wishes to exercise its right to review records related to the collection action. Third, 

in the event that the CDFI Fund does not waive its declaration of default and intent to collect, 

SCHA requested that the CDF1 Fund provide SCHA with a review of the determination of the 

$1.0 million through an oral hearing, wherein representatives from SCHA and its legal counsel 

would present evidence relevant to the CDFI Fund's review ofthe $1.0 million. Fourth, SCHA 

requested that the CDFI Fund issue a waiver of any interest, penalties, and administrative costs 

pending the agency's decisions with respect to these matters. 

On August 19, 2020, SCHA wrote to the CDFI Fund to request confirmation of receipt of our 

August 11 letter and to schedule a conference call between the CDFI Fund and SCHA to serve as 

a status review prior to the CDFI Fund's determination regarding its declaration of default and 

intent to collect $1.0 million. In the August 19 letter, we informed the CDFI Fund that we are 

inviting staff from the offices of Senators McSally, Sinema and Representative O'Halleran to join 

that call. To date, the SCHA has not received a response to its request. 

SCHA is committed to its partnership with the CDFI Fund. SCHA's CMF award made it possible 

to expand affordable housing on the San Carlos Apache Indian Reservation. These housing 

projects have had significant and positive impacts for the San Carlos community. This fact 

cannot be overstated, especially amidst the tremendous challenges and uncertainties brought 

on by the COVID-19 pandemic. 

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We welcome the TTAC's assistance in helping facilitate a dialogue between SCHA and the CDFI 

Fund, so that we can move forward to cure the deficiencies and restore our positive 

partnership that has benefited the San Carlos Apache community. Thank you. 

Respectfully, 

Charles Hill 

Executive Director 

cc: Heather Hunt, Associate Program Manager, Office of Certification, Compliance 

Monitoring and Evaluation 

Tanya Mcinnis, Program Manager, Office of Certification, Compliance Monitoring and 

Evaluation 

Amber Kuchar-Bell, CDFI Program and Native Initiatives Program Manager 

Daniel Aiello, Program Manager, Capital Magnet Fund 

Senator Martha McSally 

Senator Kyrsten Sinema 

Congressman Tom O'Halleran 

Vince Lujan, Esq., Titla & Parsi, PLLC 

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March 31, 2020 

Via Email 

Treasury Tribal Advisory Committee 

Department of the Treasury 

1500 Pennsylvania Avenue NW, Room 14260 

Washington, DC 20220 

trihal.consult@ trcasury.gov 

Re: Public Comment to the Treasury Tribal Technical Advisory Committee 

On behalf of the San Carlos Housing Authority (SCHA), I am writing to inform you of a 

challenging situation that we are facing with respect to our successful partnership with the CDFI 

Fund. Several years ago, SCHA built and rehabilitated a total of 81 housing units for lowincome and very low-income San Carlos Apache citizens residing on San Carlos Apache 

Reservation lands through a $1.0 million Capital Magnet Fund (CMF) award. For many years, 

SCHA met its reporting requirements and maintained compliance. However, staffing and 

technological challenges beyond SCHA's control eventually resulted in delinquent reporting and 

the CDFI Fund's subsequent issuance of a Notice of Intent to Collect the $1.0 million CMF 

award, along with other penalties. Because the Treasury Tribal Advisory Committee (TIAC) 

plays a vital role in shaping U.S. Department of Treasury policy, we ask for your consideration 

in this matter. 

SCHA's CMF Award and Its Impact 

In 2010, the CDFI Fund's CMF provided SCHA with an award of$1.0 million. SCHA 

used that funding to leverage nearly $13 million in Low Income Housing Tax Credits (LIHTC) 

and investor equity to complete the building of 31 new affordable housing units and the 

renovation of 50 existing units. The projects also included two community buildings and a 

basketball court. 

In creating this important lasting change for community members residing on San Carlos 

Apache Indian Reservation lands, CMF featured our project as a "Success Story" in CMF's 

March 2014 Impact Assessment (Impact Assessment), which is attached for your reference. 

These SCHA affordable housing projects made possible by the CMF award are outstanding 

accomplishments in the CDFI Fund's experiences partnering with tribal governments and tribal 

housing authorities. As highlighted in the CDFI Fund's Impact Assessment, pursuant to this 

award, our SCHA Leverage Debt Fund, LLC, made two loans. The first loan of $459,308 

leveraged $6.44 million in equity from LIHTC, and the second loan of $401,458 leveraged $6.55 

million in equity investments. The CDFI Fund acknowledged the significance of these loans in 

its Impact Assessment, pointing out that "traditional borrowing and lending of money is virtually 

nonexistent on tribal trust land" while the need for housing is immense. 
SCHA is honored by the success of our partnership with the CDFI Fund in bringing 

vitally needed affordable housing to our community. We are also proud to have been a 

responsible steward of federal and private funds. SCHA fully utilized the funding made 

available by CMF and investors in project planning, design and construction, project 

administration, and program activity to establish the families residing in these housing units as 

part of the community. Further, SCHA completed the reporting process on the expenditure of 

those funds in the proper timeframes. 

Yet, today, six years after the CDFI Fund highlighted SCHA as a success story in its 

Impact Assessment, and yearl> after completed construction and the secure establishment of 

residents in those housing units, SCHA's relationship with the CDFI Fund is in jeopardy. SCHA 

has faced significant staff transitions that have caused breaks in CDFI Fund-SCHA 

communications, including a period in 2019 in which the SCHA was unable to timely cure 

several reporting delinquencies. In response, the CDFI Fund issued a Notice of Intent to Collect 

Indebtedness, which requires SCHA to return the entire $1.0 million CMF award and discusses 

other penalties such as a 30% administrative fee and the reduction of federal and state payments 

due to us. 

CDFI Fund's Intent to Collect tl,e $1.0 CMF Award and SCHA 's Challenges to CMF Award 

Reportitrg 

In May 2019, the CDFI Fund and SCHA agreed to a compliance site visit scheduled to 

occur in July 2019. However, due to missing documentation, the CDFI Fund issued a default 

notice on June 10, 2019 and canceled the compliance site visit. On November 6, 2019, the CDFI 

Fund issued a Notice of Default, requesting that SCHA submit the remaining delinquent reports 

within 30 days. In response, SCHA requested an extension ending January 31, 2020 to submit 

the missing documentation. As ex.plained below, SCHA was not able to meet the extension 

deadline and submitted another request on February 28, 2020 for an ex.tension ending March 31, 

2020. That same day, the CDFI Fund issued a Notice of Intent to Collect Indebtedness. The 

notice requested the entire $1.0 million CMF award and noted that, should SCHA fail to pay the 

entire amount within 60 days or fail to make payment arrangements, the Treasury Department 

would impose "additional administrative fees of up to thirty percent (30% )" on the balance 

owed. The CDFI Fund outlined other penalties, including the reduction of any eligible federal 

and state payments due to us. 

For several years, SCHA satisfied its CMF award reporting requirements. However, 

SCHA recently experienced a time of significant transition, which led to a breakdown in 

reporting. From 2016 to 2019, SCHA faced exceptional circumstances, particularly in regard to 

the staffing of three key positions associated with SCHA's administration and oversight of the 

project award- Executive Director, Finance Officer, and Housing Management Services 

Manager. These key officials oversee project reporting and abrupt and repeated staff transitions 

for these positions were acutely disruptive during the period when the CDFI Fund issued its 

Notice of Default. The transitions made it exceedingly difficult to respond to the CDFI Fund's 

Notice of Default issued in November 2019- the notice required SCHA to complete a number of 

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substantial reports during a period when SCHA was at its most unstable moment, with all three 

key officials having just assumed or exited their positions. 

Technological issues beyond SCHA's control have complicated matlers further. When 

the CDFI Fund issued the Notice of Default in November, CMF's own training on the financial 

reporting requirements was under com,truction. In addition, SCHA and our consultants have 

attempted to obtain access to the online CMF portal for over a year in order to complete the 

pending reports. However, CMF has not provided the assistance needed to ensure our access to 

the system. We find this particularly challenging as we have worked diligently to fill the key 

positions required to ensure stability in reporting. Without access to the CMF portal, our good 

faith effort to cure the remaining reporting delinquencies and bring SCHA into compliance is 

significantly hampered. 

SCHA 's Request to Cure Reporting Deficiencies 

Given SCHA's responsible stewardship and desire to cure any reporting deficiencies, the 

CDFI Fund's punitive measures are alarming. While the CDFI Fund has discretion to issue such 

penalties, we believe that doing so would counter the hest interest of either party and encumber 

the overall financial wellbeing of Indian Country. 

We want the opportunity to assist the CDFI Fund in meeting its compliance monitoring 

responsibilities and to display the meaningful, lasting impact that the CMF award has had on our 

Reservation. Accordingly, SCHA is requesting a telephone or video conference call with the 

CDFI Fund to discuss access lo the CMF portal, request additional opportunities to cure, and 

rebuild our relationship with the CDFI Fund. If granted access to the CMF portal, we are 

confident that we can meet these reporting obligations within 45 days. Further, we would like to 

invite the CDFI Fund to reschedule its compliance site visit for a date later in this fiscal year. 

SCHA appreciates your consideration of this written statement and the opportunity to 

have shared SCHA's concerns with you during the public comments in today's TIAC meeting. 

Thank you. 

Charles Hill 

Executive Director 

cc: Tara Mcinnis, CDFI Office of Certification, Compliance Monitoring and Evaluation 

Amber Kuchar-Bell, CDFI Program and Native Initiatives Program Manager 

. Daniel Aiello, Program Manager, the Capital Magnet Fund 

Ed Goodman, Hobbs Straus Dean & Walker, LLP 

Michael Willis, Hobbs Straus Dean & Walker, LLP 

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