Leasing Technicians

Cori D Rummel PH: 360.312.2129 Email: CoriR@lummi-nsn.gov

Rachel J Phair PH: 360.380.6652 Email: RachelP@lummi-nsn.gov

What is a 105 (I) Facility Lease?

Section 105 (I) of the Indian Self-Determination and Education Act (25. U.S.C § 5324(1)) provides that Tribes and Tribal Organizations (T/TOs) carrying out Federal functions under a self-determination contract or self governance compact may enter into a lease agreement with Indian Affairs for the tribally owned or rented facility used to carry out those functions

•  Are not traditional leases· 
• Are facility cost agreements that compensate the owner for facility operational expenses associated with using the facility to administrator or deliver P.L. 9.-638 (ISDEAA) contracted/compacted services. 
•  Are a statutory agreement 
•  Tribe or Tribal Organization 

Eligibility Requirements 

• T/TO must have one of the following: · 
• Title to the facility, or 
•  A leasehold interest in the facility, or 
•  A trust interest in the facility 
• The facility must be occupied and used by the Tribe to carry out an ISDEAA contract or compact program, 100-297 grant function service or activity—this includes 477 programs incorporated in funding agreements.  

Types of Compensation  

• Compensation must be based on one of the following: 
• Fair Market Rental (third party appraiser analysis); or 
• The cost elements listed in 25 C.F.R. § 900.70 (a-h) only; or 
•  A combination of fair market renal and cost elements.
•  Costs must be reasonable and not duplicative 

Facility Lease Details  

• The location and address.​· 
• An architectural floor plan that shows gross square footage for all floors.​· 
• The date the facility was placed into service.​
•  The Certificate of Occupancy.​
• Recent photos of the facility’s interior and exterior.​
•  A recent inspection report of the condition of the facility if available.​
•  A floor plan showing all the PFSAs, and any non-PFSAs, or if there are other tenants in the facility.·
• A 105(l) lease can only compensate for the space associated with IA ISDEAA PFSAs.​·
• One lease per facility even if multiple PFSAs are operating in the same location.​
• A proposal may contain multiple facilities. ​
• We have lease templates for both Self-Determination (Title I) and Self-Governance (Title IV).   

What could the 105(l) funds be used for? 

The lease may compensate the Tribe forthe following costs, excluding duplicate costs.

• Rent 
•  Depreciationand use allowance
•  Contributionsto a reserve for replacement of facilities 
• Principaland interest 
• Operationand maintenance expenses, including but not limited to water, sewage,utilities, fuel, insurance, fire protection, and so forth
•  Scheduledand unscheduled maintenance like replacing floor coverings, lighting fixtures,or repainting 
• Securityservices and management fees 
• Buildingand equipment repairs 
• Alterationsneeded to meet contract requirements 
• Fairmarket rental for buildings or portions of buildings and land, excludingfederal share of building construction or acquisition costs or fair marketrental for buildings constructed with federal funds, excluding fee or profit,and for land
• Otherreasonable expenses

PL 93-638 Statues 

Solution 2 – Statutory Authority for Leasing of Tribal Facilities PL 93-638 was amended in 1988 to add a new provision as follow: PL 93-638 Statutes “Building Capacity in Indian Country” ™ 10 Section 105(l)(1) provides that, “Upon the request of an Indian tribe or tribal organization, the Secretary shall enter into a lease with the Indian tribe or tribal organization that holds title to, a lease interest in, or a trust interest in, a facility used by the Indian tribe or tribal organization for the administration and delivery of such services under the Act”

Current Accomplishments and What is Next: 

• Resolution #2022-059 Section 105 (l) Lease of Facilitiesunder the Authority of The Indian Self Determination Education and AssistanceAct (ISDEAA) Formation of a Lummi Nation 105 (l) Task Force to support LeaseApplication was passed March 29, 2022
• Currently submitted lease for the CARE Building and waiting for Lease finalized. 
• Attended the annual Tribal Self Governance conferenceheld in Tulsa, Oklahoma in June. There was networking with othertribes who have successfully completed 105 (l) leases, or just startingout like Lummi is currently.
• We are starting on 2 potential leases, which arethe Lummi Admin Building and Early Learning Center. We are also  taking pictures of ALL LIBC properties,completing a full “Priority List” for full approval. 
• We are working on the process and time frame that willallow the team to be succesful in submitting 105 (l) leases. We have  a list of 15 facilities that we will bestarting the process once the Administration Building and Early ChildhoodCenter are submitted. 

Section105(l) - Tribal Self-Governance (tribalselfgov.org)