This piece was originally published in the Fall 2025 Edition of the NAFOA Navigator.
The Washoe Tribe of Nevada and California has achieved remarkable success in housing development, leveraging the Low-Income Housing Tax Credit (LIHTC) program to complete more projects in recent years than in the previous two decades. This accomplishment, achieved with minimal investment of Tribal dollars, is a valuable model for other Tribal Nations seeking to maximize resources for outsized community impact. Washoe Housing Authority (WHA) Executive Director Martin Montgomery and Tribal Chairman Serrell Smokey shared their successful approach to garnering buy-in and implementing this financing tool to bring high-quality housing to the Washoe community.
Laying the Foundation for a Lasting Legacy
The WHA is spearheading an ambitious project to construct a 50-home subdivision in Washoe’s Stewart Community near Carson City. The project has secured over $15 million in funding, including $7.6 million from Redstone Equity Partners through LIHTC, $5.5 million from the Homes Nevada Initiative, $1.6 million from the Federal Home Loan Bank of San Francisco’s Affordable Housing Program, and $800,000 of ARPA funding. Phase One includes 20 homes and a community building. Phase Two will prepare the site for 30 additional homes, supported by $5 million from the Indian Housing Block Grant (IHBG) Competitive Grant Program for infrastructure. Additional funding will be sought for the construction of the homes themselves. This diversified funding strategy enabled the Tribe to leverage just $400,000 of its own funds into a $15 million project—a testament to the power of LIHTC when strategically combined with supplementary funding.
Understanding LIHTC
The Low-Income Housing Tax Credit program is an initiative with the Internal Revenue Service (IRS) in which a Tribe partners with a private equity investor to complete a housing development. The investor provides upfront capital for the development and, in turn, becomes a co-owner of the project, alongside the Tribe. The private equity investor’s primary interest is to collect tax credits and receive a 10-year tax write-off.
Montgomery emphasizes that LIHTC cannot be the sole funding source for infrastructure like utilities or site preparation. He suggests Tribes allocate a minimum of $1 million for infrastructure and soft costs like consultant fees and design adaptations.
Overcoming Challenges
The decision to leverage LIHTC did not go unchallenged. “There was a lot of apprehension,” Montgomery admits, and clear and transparent communication was paramount. Montgomery stepped into his role when mistrust in Tribal government was debilitatingly high, making it virtually impossible for the housing authority to conduct business. Chairman Smokey says that there was significant pushback when housing projects were finally presented to the community councils. “They wanted cheaper houses, but Martin and I explained that we had the funding to build quality homes that would be sustainable,” he says. Together, the pair worked diligently to address concerns and rebuild confidence in their vision.
Montgomery set out to educate himself on the ins and outs of LIHTC implementation. He credits Travois, a consulting firm specializing in Tribal community development, as his primary teacher. He also acknowledges mentorship from Bill Niblick and the late Robert Gauthier, who bolstered his confidence. Montgomery still draws on Gauthier’s reassurance that “Tax credits are not that difficult once you learn them. They can do huge things for your community.”
While Montgomery immersed himself in LIHTC education, Chairman Smokey analyzed and synthesized complex information about LIHTC for Tribal Council consideration. “Martin would get very technical and explain the projects,” the Chairman recalls. “Then I would simplify it for the Council, explaining that we were using other people’s money and didn’t have to pay it back. It’s a simple program that’s profitable through tax credits. We just have to stay in compliance for 10 years.” This teamwork was crucial for securing the necessary buy-in to move forward. As a result of their persistence, Washoe is forging ahead on a housing development that represents their first construction of this scale since the early 1990s.
As the project progresses, excitement grows. In a recent long-term planning session, Montgomery noted the creativity in the room—a marked shift from the initial skepticism. “Somebody asked, ‘Hey, could we build a pool?’” says Montgomery. “I explained that with tax credits, we can develop all kinds of homes, plus amenities. If we work together toward the same goal, there’s so much opportunity.”
Sharing the Blueprint
Both the Chairman and Montgomery demonstrate a commitment to advocacy, fueled by a relentless drive to address the needs of their Tribe. Chairman Smokey recalls when their proactive approach secured the $5 million housing grant from the Nevada Governor simply because Washoe was “the only Tribe that asked.” For the Chairman, this was just another example of what comes from “just being at the table.” For those reasons, Montgomery and the Chairman make a concerted effort to meet face-to-face with state, congressional, and Tribal representatives and maintain a strong rapport with those who hold the keys to valuable resources.
Knowledge-sharing has also been crucial to Washoe’s advocacy success. During the pandemic, Montgomery initiated the Nevada Tribal Directors Forum to promote collaboration among Tribal directors on funding and program requirements. The forum continues to be a wellspring of resources and has empowered other Tribes to launch their own tax credit initiatives with more confidence and support. Collective advocacy at the state level led to a Tribal set-aside in 2021, which designates state and federal funds for Nevada Tribal governments and organizations.
Montgomery’s success in advocating for expanded tax credits for Tribes stems from his clear communication of mutual benefits. “In Nevada, we’re less than 2% of the state population, so it may not seem like there’s a pressing need,” he explains. “But when you focus on a Tribe, the value you’re getting for the dollar in that community is profound.” He highlights the Tribe’s new lumber mill, the only full-scale sawmill in the Lake Tahoe basin, as an example of how Washoe has improved the supply chain, providing better lumber at lower rates, and offering savings and tax advantages for vendors. “When we approach the State, we can say that we are an underserved community capable of delivering a strong return on investment in labor and materials, and that supporting Tribal housing development is good for developers, contractors, and vendors.”
The Washoe Tribe’s success in housing development is a testament to the power of persistence, collaboration, and a willingness to learn. Their journey, driven by a deep commitment to community betterment, shows how strategic partnerships and an open-minded approach can overcome significant obstacles. “I’m not a PhD with 100 years of experience; I’m just somebody from a little rez in Nevada who wanted to figure this out for my Tribe,” Montgomery says. “So if I could do it, you can do it. Don’t be afraid to knock on doors.”
AUTHOR
Amber Richardson (Haliwa-Saponi Indian Tribe)
Amber Richardson is a contributing writer for NAFOA. Amber is a dedicated advocate and communications strategist with a deep commitment to advancing opportunities for Indigenous and historically marginalized communities.
