For years, an alternative to high water prices was to live on leased land. In the Puget Sound area, this typically means land owned by Native American tribes that lease the property to individuals or businesses for an average of about 30 years. Many lenders borrow money on leased land as long as the lease is longer than the mortgage for a period of five to 10 years. In other words, prices and fees are pretty much the same as a traditional home. Kirby Johnson, broker and owner of La Conner Realty, has been hearing about leased land for over 30 years. Leota Pablo, manager of leased land and berths for the Tulalip tribes west of Marysville, said the average lease is about 7 to 9 percent of the value of the land. However, most of these properties do not have the value or appeal of rented waterfront properties and the view of the rented plots around Puget Sound. No. A few years ago, the tribe introduced its first building value tax on leased trust land on the reserve.
In particular, the tribe introduced a use and occupancy tax after federal courts ruled that the county and state were not allowed to tax buildings on land leased in trust. Trust lands belong in the United States in trust for the tribe or individual Indigenous landowners. In addition, individuals often do not have the weight of an entire business when it comes to negotiating leases or receiving services. While all leases in Shelter Bay are tied to the same year (2044), land in other areas could flow at different times. The Tribal Use and Occupancy Tax applies to buildings located on trust land leased by the Tribe or Indigenous landowners. The Tribe tax does not apply to buildings on privately owned land in Fee Simple – that is, the tax does not apply to buildings unless the building is on land leased in trust. “Some potential buyers pulled out of the purchase after realizing there were only a few years left on the lease itself or if the lease can be negotiated,” said Stanley Freisner, an experienced real estate agent at Century 21 All-Stars Realty in Marysville. “People just don`t seem to think of rented homes as the bargain they once were. Some houses on the territory of Tulalip have been sitting for a few months. Our constitution was drafted by the federal government in 1936. At that time, the United States ruled the tribes with a hard hand.
Our 1936 Constitution still contains elements of the paternalism of the federal government of the day. For example, it requires the tribe to obtain permission from the BIA before it can hire a lawyer, lease land, or perform other routine tasks. The BIA and the tribe agree that these elements must be removed from our Constitution. But some residents of the reservation do not own their land and instead lease it to the tribe or individual Native Americans. Our land tenants pay taxes to the tribe on the value of their homes and other structures. You may have heard of residents of the Shelter Bay neighborhood paying these taxes to the tribe. This is because the Shelter Bay development leases land to the tribe and individual natives. “There could be places near Anacortes where rented homes are 15 to 20 percent behind the paid simple house market,” said Grant Osberg of Osberg Construction in Seattle, whose family has held shelter Bay`s main or “general” lease since signing a development agreement with the Swinomish tribe in 1969. “But people love the amenities in and around Shelter Bay, so you don`t really see a gap.” If they had a choice, buyers would massively prefer to own the roof above their head and the floor under that roof. Coupled with historically low mortgage rates and flexible loan programs, more potential buyers are able to walk into the door of fee-based single homes.
While rented homes are appreciated, why take the risk of future lease negotiations when a conventional purchase allows you to have more control over the land on the road? Typically, the individual monthly rental payment can be adjusted every five to 10 years based on the consumer price index and other factors. For example, all shelter bay properties have a lease that runs until 2044. For example, if a potential buyer finds a home on leased land and the lease is for 25 years, the buyer could get a 15-year fixed-interest loan – if the buyer meets all the eligible conditions. Most of the time, there would be no 30-year conventional financing, unless the term of the lease is written for at least 35 years. While tenants are not required to pay county property taxes on the property, they are required to pay taxes on the value of improvements (homes and other buildings). However, homes on rented waterfront land – especially in popular areas like Shelter Bay near La Conner – are often sold as much as neighboring “paying” homes where the owners own the property. A hundred sales took place last year in Shelter Bay (there are 855 properties for sale) and most homes don`t last long on the market. Leased land is common in many states, including California, Hawaii, and Arizona. The U.S. Department of Housing and Urban Development and the Bureau of Indian Affairs have also joined forces to provide affordable housing through lump-sum agreements in many tribal areas.
Some lenders are equally concerned about how the lease handles assignment, transfer, default, and foreclosure. Some leases have been classified as “current,” while others are not as detailed and do not get financing from a commercial lender. I have read that the tribe claims any authority over any area in which it has fishing or hunting rights. This seems like a huge area. It`s true? The tribe has no tax on the land, whether it is trust land or simply fees. How is the tribe governed under the Swinomish Constitution? For many people, life by the water brings satisfaction and often a quick appreciation of real estate values and therefore a great aversion to property. Property is left to sons and daughters or sold by word of mouth to relatives and friends. And when the waterfront is available on the open market, the price is usually out of reach of the average person. 2020-11-13 Shelter Bay`s Main Lease Proposal to the Swinomish Senate pdf The Swinomish Constitution works in the same way as the U.S.
Constitution by organizing the tribal government. Essentially, the constitution describes the form of government and procedures by which the tribe governs itself and the Swinomish Reservation. The tribe is responsible for regulating the fishing, hunting and gathering activities of members of the Swinomish tribe or other Native Americans. This tribal jurisdiction was recognized by federal courts in the 1970s and has been exercised by the tribe ever since. The Swinomish Tribal Code establishes the jurisdiction of the Tribal Court in criminal and civil matters relating to or related to fishing, hunting and Treaty collection activities and is limited to all customary and habitual fishing areas and stations of the tribe, all open and unclaimed land contractually reserved for hunting or gathering, and to other countries and waters, necessary to access this fishery. Places of hunting and gathering.. .