One example is the Tohono O’odham Ki:Ki Association (TOKA) San Miguel Homes project on the Tohono O’odham Nation in southern Arizona. The development is believed to be one of the first NMTC‑financed developments to support affordable, for‑sale homes on tribal land.

Addressing a persistent housing gap

Housing shortages and deteriorating housing stock remain among the most urgent challenges facing tribal communities nationwide. Developers regularly leverage the Low-Income Housing Tax Credit to expand access to rental housing on tribal land, but affordable homeownership opportunities remain limited.

“TOKA is proud to work with U.S. Bank to utilize New Market Tax Credits to bring much needed new housing to our tribal members,” said Marcos Ysmael, TOKA board chairman. “The waitlist for new housing on the Tohono O’odham Nation exceeds 600 applicants.”

TOKA Development Corp., a tribally affiliated developer, set out to address that challenge through the San Miguel Homes project — a planned 12-home subdivision in the San Miguel neighborhood. TOKA secured competitive federal grant funding to support the development, but a significant financing gap remained.

“There isn’t a federal program designed specifically for affordable, for-sale housing,” said Drew Hammond, senior vice president and business development officer with U.S. Bancorp Impact Finance, the community development financing division of U.S. Bank. “In situations like this, New Markets Tax Credits can be an effective tool to close financing gaps.”

Applying NMTCs where experience matters

The NMTC Program, administered by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund, is designed to attract private investment into low‑income communities by providing tax credits to investors that support qualified projects through Community Development Entities.

Using NMTCs for homeownership is not new, but it remains specialized. Projects must carefully align construction timelines, home sales and the program’s seven‑year compliance requirements. U.S. Bancorp Impact Finance led the way in applying NMTCs to affordable homeownership, experience that informed the approach for TOKA San Miguel Homes, Hammond said.

Advised by Travois, a national leader in tribal housing and economic development, TOKA explored whether NMTCs could responsibly support homeownership on the reservation. Travois helped bring NMTC allocation to the project through a strategic partnership with Chickasaw Nation Community Development Endeavor (CNCDE).

From there, long-time partners Travois and U.S. Bancorp Impact Finance teamed up to execute the transaction, Hammond said.

“This deal came together because each partner brought valuable experience to the table,” he said. “Travois brought deep knowledge of tribal housing, TOKA brought a clear vision for homeownership, Chickasaw Nation Community Development Endeavor brought the allocation and U.S. Bank brought experience structuring New Markets Tax Credits for homeownership.”

Turning financing into homes

NMTC financing supported the first phase of TOKA San Miguel Homes, enabling the construction of seven new homes as part of the broader subdivision. The NMTC structure helped reduce the amount of capital the tribe needed to contribute, supporting affordability and making it possible for the homes to be sold to low- and middle-income families, Hammond said.

“This new and vital funding opportunity affords another mechanism to address this pressing need for affordable housing,” Ysmael said.

Construction began in late 2024, and the first homes are now complete.

"Chickasaw Nation Community Development Endeavor, LLC is proud to work with long-time partner Travois and U.S. Bank on the TOKA San Miguel Homes development,” said Chris Tweedy, president and CEO of the Chickasaw Nation’s Capital Access.

“Travois’ expertise was critical in advancing an innovative and cutting-edge use of New Markets Tax Credits to support affordable, for-sale housing, while U.S. Bank’s depth of experience in structuring complex NMTC transactions made them a strong and trusted partner for this effort,” Tweedy said. “Together, this collaboration offers a new way forward for New Markets Tax Credits to support critical housing needs for tribes."

For partners involved in the project, San Miguel Homes offers a model that could be adapted by other Native communities seeking to expand homeownership using federal tools.

"The NMTC can create homeownership opportunities for working families across the country,” said Phil Glynn, president of Travois. “We applaud TOKA and CNCDE on this innovative effort to make the dream of homeownership a reality for Tohono O’odham families."

“As the need for affordable homeownership opportunities grows nationwide, projects like TOKA San Miguel Homes demonstrate how experience, partnership and disciplined execution can help bring complex tools to life — one home at a time,” Hammond said.

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