Td Bank on-Reserve Home Loan Program

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Purpose

This report provides a brief overview of the first nation communities considered for the TD On-Reserve Home Loan Program, highlighting the Osoyoos Indian Band as the most suitable partner. The report contains all relevant information regarding initial contact with the band, potential challenges, as well as areas of sensitivity revolving the native community. It outlines the necessary steps and considerations that TD should adopt when establishing a presence within the Osoyoos Indian Band.

Overview of Potential First Nations for the TD Program

After careful consideration of the Tk’emlúps te Secwepemc Nation, the Osoyoos Indian Band, the Haisla Nation, and the Penticton Indian Band, we have concluded that the Osoyoos Indian Band is the best candidate for the TD On-Reserve Home Loan Program. We have provided a brief overview of each first nation that was considered. The goal is to communicate the pros and cons associated with each nation that provide reasoning for why the Osoyoos Indian Band is the best candidate. The information presented may also be useful when considering future first nations once the On-Reserve Home Loan Program has matured.

The Tk’emlúps te Secwepemc (TteS) Nation

Formerly known as the Kamloops Indian Band, the TteS First Nation was amongst the potential candidates that our team analyzed. Though the band offers a growing economy and increasing population, the members’ low income and education levels presents risks regarding the TD program. Much of the TteS’ economic growth is due to their goal of becoming self-sufficient. The band was successful in creating over 200 job opportunities for band members, which awarded the first nation the 2008 Community Economic Developer of the Year title. To further support the nation’s economic development, the band was able to produce 200 million dollars in economic revenues.

While the TteS Nation as a whole seems promising for the home loan program, the individual band members suffer from low income levels and low education statuses. Around 27% of TteS members have absolutely no education completion and the band’s unemployment rate exceeds the provincial average. These factors may indicate the inability to repay loans granted by TD’s program.

The TteS Nation lacks maturity. Though the band is showing exceptional economic progress, its members are not at a financial or educational state that pairs well with the sophistication of the TD program. Therefore, we have concluded the TteS should not be the pioneering first nation for the On-Reserve Home Loan Program.

The Haisla Nation

The Haisla Nation resides on land with an abundance of natural resources. The band’s economic success is highly dependent on the wellbeing of these resources. Reliance on natural resources as a source of capital is not as stable as a nation that has developed large businesses, presenting an unattractive trait of the Haisla Nation. However, the band is in demand for housing repairs due to their old infrastructures. Therefore, there is a need for home loans which TD’s program offers. Furthermore, the Haisla Nation welcomes partnerships with non-native professionals, a characteristic that not many first nations employ. Thus, it is likely that the adoption of TD’s program will align with the band’s interests.

The Haisla Nation is keen on working alongside the government and prefers to sign contracts with government officials as opposed to private corporations. This may create a barrier between the band and TD, making it difficult to create a partnership. The Haisla Nation recently signed a LNG Framework Agreement with the B.C. Provincial Government. The agreement states that the Haisla Nation will receive government support in creating job opportunities. The band consists of a relatively large labour force, of whom are finding more and more jobs since the signing of the LNG. However, Haisla members suffer from an even lower educational rate than the TteS Nation. In fact, 47% of Haisla members have no educational completion at all. They also suffer from a lower than average median income, a trait that unfortunately spans the majority of first nations.

The Haisla Nation unfortunately lacks in well-educated members and does not offer the financial stability that TD’s program requires. Their dedication to contracting with the government gives us reason to believe that the band will feel hesitant in a partnership with TD. Therefore, the Haisla Nation is not a sufficient candidate for the home loan program.

The Penticton Indian Band (PIB)

The Penticton Indian Band consists of three different reserves, making it the largest reserve land in British Columbia. With that being said, the PIB’s population relative to land mass is low. While there is potential for the PIB to increase its housing given the abundance of available reserve land, it is unlikely that the short term growth of the population will drive up demand for housing. In the long run, TD may consider revisiting the PIB. Should the band’s population spike, there may be a boom in housing demand resulting in an increase in potential clients for the home loan program.

The financial status of the PIB is promising. In 2016, the band’s financial surplus grew by ten percent. The Penticton Indian Band Development Corporation (PIBDC) strives to increase profits while remaining sustainable. The goal of the corporation is to increase jobs for band members and obtain capital revenues. Unfortunately, the band currently faces a higher than average unemployment rate and a low median income.

While the expenditure on housing and land has increased in the last couple of years, housing revenue has declined. This is most likely due to the lack of demand or a lack of housing availability. Furthermore, the majority of housing infrastructure found within the PIB was constructed prior to 1991 and have likely depreciated in value significantly. Substantial loans on these houses may not be available given the need for major housing repairs.

The Penticton Indian Band is a candidate TD should keep in mind for the future. The band has the potential of becoming a good recipient of the home loan program. However, the PIB requires development on their housing market before they can be considered.

The Best Candidate: The Osoyoos Indian Band (OIB)

While each first nation offers various factors that may be suitable for the program, the OIB is the most well-rounded as a whole. The OIB is economically prosperous - working alongside non-native business professionals to further develop the nation. Much of the OIB’s financial success revolves around the band’s business-oriented Chief and council. Chief Louie’s focus is to continue making business decisions, and partnering with well-established business professionals, to further the band’s independence from the government. As a result, the Osoyoos Indian Band has become one of the richest first nations in Canada. So far, the band has established several large business projects and continues to seek opportunities for growth.