PRP.7.7.050 Investment Policy

(a) Authority. Pursuant to § 204 of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), tribally designated housing entities may, for the purpose of carrying out affordable housing activities, invest Indian Housing Block Grant (IHBG) funds as approved by the Secretary of the Department of Housing and Urban Development. The Secretary has established limitations on the investment of IHBG funds in 24 C.F.R. § 1000.58. The Secretary has further prescribed administrative requirements for investing IHBG funds in program guidance notices. The Housing Authority is authorized to invests funds not needed for immediate disbursement pursuant to Section PRP.7.3.010(d)(16) of this ordinance.

(b) Purpose. The purpose of the Housing Authority's investments is to carry out affordable housing activities. Such activities shall be consistent with the Housing Authority's current Indian Housing Plan.

(1) IHBG funds subject to the approval of the Secretary of HUD may be invested pursuant to this section.

(2) Other funds may be invested pursuant to this section provided that such investment is permissible under the law relating to the source of the funds and that such investment is performed pursuant to any applicable law, and provided further that any such investment is held separately from IHBG funds invested so as to fully comply with 24 C.F.R. § 1000.58 (d).

(d) Investments Allowed.

(1) No investment shall be made which has a duration of more than two years.

(2) All IHGB investment accounts shall be separate from other funds of the Housing Authority.

(3) The Housing Authority shall invest IHGB funds only in:

(A) Obligations of the United States: obligation issued by Government sponsored agencies; securities that are guaranteed or insured by the United States; mutual (or other) funds registered with the Securities and Exchange Commission and which invest only in Obligations of the United State or securities that are guaranteed or insured by the United States; or

(B) Accounts that are insured by an agency or instrumentality of the United States or accounts that ensure the continuous and full collateralization of deposits that are in excess of FDIC insurance amounts to ensure protection of the funds, even in the event of bank failure. Collateralization shall consist of identifiable U.S. Government securities as prescribed by HUD and specific authority contained in the agreement permitting HUD to exercise its rights pursuant to 24 C.F.R. § 1000.60.

(e) Staff Authority and Duties. Subject to the oversight by the Tribal Governing Board, Housing Authority staff is assigned authority to implement this policy as follows:

(1) The Executive Director shall serve as the custodian of all investment securities and shall keep such securities separate from the accounting records, the maintenance of which shall be the responsibility of the Housing Authority's accounting department.

(2) The Executive Director shall obtain authorization for all investment transactions from the Tribal Governing Board. All depository agreements shall be approved by resolution presented to the Tribal Governing Board by the Executive Director. All investment transaction shall be documented in the official records of the Housing Authority, which shall be maintained by the Executive Director.

(3) The Executive Director shall insure that safekeeping procedures for the security of investment documents are maintained.

(4) The Executive Director shall assure that all investments shall be made only in name of the Lac Courte Oreilles Housing Authority and shall be maintained in a custodial or trust account, as appropriate.

(5) The Executive Director shall assure that all investments are recorded in detail in an investment ledger, and that the investment ledger is periodically reconciled. The Executive Director shall further assure the use of a system to ensure that all investment income is collected, recorded, and credited to the appropriate accounts. The investment records shall be audited annually.

(6) The Housing Authority's accounting department shall maintain an investment maturity schedule evidencing that the investments and proposed investments will mature on the approximate dates the funds will be needed and that the investment maturity dates do not exceed two years.