Rule2025-16979
Revising Residency Requirements for the Section 184 Indian Housing Loan Guarantee Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 4, 2025
Effective
October 6, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
This interim final rule revises the Department of Housing and Urban Development's (HUD) regulations governing the Section 184 Indian Housing Loan Guarantee Program (the "Section 184 Program") by modifying the residency requirements for Borrower eligibility for Section 184 Program insured mortgages. This revision aligns HUD's requirements with recent executive actions that emphasize the prioritization of federal resources to protect the financial interests of American citizens and ensure the integrity of government-insured loan programs.
Full Text
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<title>Federal Register, Volume 90 Issue 169 (Thursday, September 4, 2025)</title>
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[Federal Register Volume 90, Number 169 (Thursday, September 4, 2025)]
[Rules and Regulations]
[Pages 42704-42706]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16979]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1005
[Docket No. FR-6544-I-01]
RIN 2577-AD25
Revising Residency Requirements for the Section 184 Indian
Housing Loan Guarantee Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Interim final rule.
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SUMMARY: This interim final rule revises the Department of Housing and
Urban Development's (HUD) regulations governing the Section 184 Indian
Housing Loan Guarantee Program (the ``Section 184 Program'') by
modifying the residency requirements for Borrower eligibility for
Section 184 Program insured mortgages. This revision aligns HUD's
requirements with recent executive actions that emphasize the
prioritization of federal resources to protect the financial interests
of American citizens and ensure the integrity of government-insured
loan programs.
DATES:
Effective date: October 6, 2025.
Comment due date: November 3, 2025.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule. <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> All submissions must refer to
the docket number and title. There are two methods for submitting
public comments.
1. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
<a href="http://www.regulations.gov">http://www.regulations.gov</a>.
2. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW, Room 10276,
Washington, DC 20410-0500.
FOR FURTHER INFORMATION CONTACT: Hilary Atkin, Acting Deputy Assistant
Secretary, Office of Native American Programs, U.S. Department of
Housing and Urban Development, 451 7th Street SW, Washington, DC 20410
telephone number 202-402-5378 (this is not a toll-free number). HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech or communication
disabilities. To learn more about how to make an accessible telephone
call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
On March 20, 2024, HUD published a final rule titled
``Strengthening the Section 184 Indian Housing Loan Guarantee Program''
(the final rule) in the Federal Register, at 89 FR 20032. The final
rule amended the regulations to the Section 184 Indian Housing Loan
Guarantee Program (Section 184 Program) to minimize potential risk and
increase program participation by financial institutions. Among the
various amendments, the final rule added eligibility and participation
requirements for Lender Applicants, Direct Guarantee Lenders, Non-
Direct Guarantee Lenders, Holders and Servicers and other Section 184
Program participants. Notably, the final rule established underwriting
requirements concerning a Borrower's residency status under 24 CFR
1005.405. Consistent with past Federal Housing Administration (FHA)
residency requirements in place at the time, this section provided
that: ``(a) An eligible Borrower who is an Indian must be: (1) A U.S.
citizen; (2) A lawful permanent resident alien; or (3) A non-permanent
resident alien.''
II. This Interim Final Rule
Under this interim final rule, HUD is excluding ``non-permanent
resident alien[s]'' from participation in the Section 184 Program by
removing existing 24 CFR 1005.405(a)(3). This update aligns HUD's
requirements with recent executive actions that emphasize the
prioritization of federal resources to protect the financial interests
of American citizens and ensure the integrity of government-insured
loan programs. The Administration has reaffirmed its commitment to
safeguarding economic opportunities for U.S. citizens and lawful
permanent residents while ensuring that federal benefits, including
access to loans guaranteed under the Section 184 Program, are reserved
for U.S. citizens and individuals who hold lawful permanent resident
status. Currently, non-permanent residents are subject to immigration
laws that can affect their ability to remain legally in the United
States. This uncertainty poses a challenge for HUD as the ability to
fulfill long-term financial obligations depends on stable residency and
employment. Under 24 CFR 1005.407, HUD requires a Direct Guarantee
Lender or Non-Direct Guarantee Lender to evaluate a Borrower's ability
to sustain long-term financial obligations.
This update ensures that the Section 184 Program is administered in
accordance with Administration priorities while fulfilling its mission
of providing access to homeownership to Native American borrowers. This
update is similar to the changes to the FHA-insured mortgage programs,
reflected in the FHA published Mortgagee Letter (ML) 2025-09, Revisions
to Residency Requirements and Title I Letter 490 (TIL-490).
[[Page 42705]]
III. Justification for Interim Rule
In general, HUD publishes a rule for public comment in accordance
with both the Administrative Procedure Act (APA), 5 U.S.C. 553, and the
agency's regulation on rulemaking at 24 CFR part 10. Both the APA and
Part 10, however, provide for exceptions from that general rule where
HUD finds good cause to omit advance notice of the opportunity for
public comment. The good cause requirement is satisfied when prior
public procedure is ``impracticable, unnecessary, or contrary to the
public interest.'' 5 U.S.C. 553(b)(B). In order to publish a rule for
effect prior to receiving and responding to public comments (i.e., an
interim final rule), the agency must make a finding that ``good cause''
exists.
HUD determined that good cause exists to promulgate this interim
final rule because immigration status is rarely at issue under the
Section 184 Program. To qualify for a Section 184 Guarantee Loan, a
Borrower must be an enrolled Tribal member. Accordingly, in almost all
cases, Tribal members applying for a Section 184 loan are already U.S.
citizens. Additionally, this interim final rule aligns with Borrower
residency requirements for FHA-insured financing programs. Therefore,
advance notice of the opportunity for public comment is unnecessary, as
this rule is technical in nature and does not have a significant
impact.
IV. Tribal Consultation
HUD's policy is to consult with Indian Tribes early in the
rulemaking process on matters that have Tribal implications. Because
all individual eligible borrowers under the Section 184 Program must
already be enrolled Tribal members to qualify for Section 184 loan, HUD
does not believe that this change to the residency requirements of the
Section 184 regulations will have a substantial direct effect on Tribal
governments. However, HUD welcomes public comments from Tribes and
Tribal members on this interim rule.
V. Findings and Certifications
Executive Orders 12866 and 13563, Regulatory Planning and Review
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and therefore, subject to review by the Office of Management and Budget
(OMB) in accordance with the order's requirements. Executive Order
13563 (Improving Regulations and Regulatory Review) directs executive
agencies to analyze regulations that are ``outmoded, ineffective,
insufficient, or excessively burdensome, and to modify, streamline,
expand, or repeal them in accordance with what has been learned.''
This interim final rule revises HUD's regulations governing the
Section 184 Program by updating residency requirements for Borrower
eligibility to remove a provision that permits non-permanent residents
to be eligible borrowers. These changes will not have a significant
impact given that, in almost all cases, Tribal members applying for a
Section 184 loan are already U.S. citizens. As a result, this rule was
determined not to be a significant regulatory action under section 3(f)
of Executive Order 12866 and therefore was not reviewed by OMB.
Executive Order 14192, Regulatory Costs
Executive Order 14192, entitled ``Unleashing Prosperity Through
Deregulation,'' was issued on January 31, 2025. Section 3(c) of
Executive Order 14192 requires that any new incremental costs
associated with new regulations shall, to the extent permitted by law,
be offset by the elimination of existing costs associated with at least
10 prior regulations. This rule is an immigration-related rule that is
expressly exempt from the requirements of Executive Order 14192.
Executive Order 13132, Federalism
Executive Order 13132, entitled ``Federalism,'' (64 FR 43255)
prohibits an agency from publishing any rule that has federalism
implications if the rule either imposes substantial direct compliance
costs on State and local governments and is not required by statute, or
the rule preempts State law, unless the agency meets the consultation
and funding requirements of section 6 of the Executive Order. This rule
will not have federalism implications and would not impose substantial
direct compliance costs on State and local governments or preempt State
law within the meaning of the Executive order.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant
Impact is available for public inspection between the hours of 8 a.m.
and 5 p.m. weekdays in the Regulations Division, Office of General
Counsel, Room 10276, Department of Housing and Urban Development, 451
Seventh Street SW, Washington, DC 20410-0500. The Finding of No
Significant Impact will also be available for review in the docket for
this rule on <a href="http://Regulations.gov">Regulations.gov</a>.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally
requires an agency to conduct a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements, unless the
agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. As discussed above,
this interim final rule's modification of the regulations that govern
the Section 184 Program would have minimal effect and HUD has
determined that this rule would not have a significant economic impact
on a substantial number of small entities.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520), an agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information, unless the
collection displays a valid Office of Management and Budget (OMB)
control number. The information collection requirements contained in
this proposed rule have been approved by the OMB under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control
number 2577-0200.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes requirements for Federal
agencies to assess the effects of their regulatory actions on state,
local, and Tribal governments, and on the private sector. This rule
does not impose any Federal mandates on any state, local, or Tribal
government, or on the private sector, within the meaning of the UMRA.
VI. Electronic Access and Filing
Comments submitted electronically through the <a href="http://www.regulations.gov">http://www.regulations.gov</a> website can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
All comments and communications properly submitted to HUD will be
available for public inspection and copying between 8 a.m. and 5 p.m.
weekdays at the above address. Due to security measures at the HUD
Headquarters building, an advance
[[Page 42706]]
appointment to review the public comments must be scheduled by calling
the Regulations Division at (202) 708-3055 (this is not a toll-free
number). HUD welcomes and is prepared to receive calls from individuals
who are deaf or hard of hearing, as well as from individuals with
speech or communication disabilities. To learn more about how to make
an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
List of Subjects in 24 CFR Part 1005
Borrower residency status.
Accordingly, for the reasons described in the preamble, HUD amends
24 CFR part 1005 as follows:
PART 1005--LOAN GUARANTEES FOR INDIAN HOUSING
0
1. The authority citation for part 1005 continues to read as follows:
Authority: 12 U.S.C. 1715z-13a; 15 U.S.C. 1639c; 42 U.S.C.
3535(d).
0
2. In Sec. 1005.405, revise paragraph (a) to read as follows:
Sec. 1005.405 Borrower residency status.
(a) An eligible Borrower who is an Indian must be:
(1) A U.S. citizen; or
(2) A lawful permanent resident alien.
* * * * *
Scott Turner,
Secretary.
[FR Doc. 2025-16979 Filed 9-3-25; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on September 4, 2025.
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