WHITERIVER, Ariz. ? Construction is beginning on 122 more units of housing as part of an ambitious $25-million project on the Fort Apache reservation that is funded under complicated and unique financing structure.

The White Mountain Apache Tribe recently held a completion ceremony for 128 new homes and the construction start on the remainder of the 250-unit project. It also has completed a rental housing project and a new office building for its housing authority.

The “Apache Dawn” home project is being financed by a $25 million mortgage revenue bond that is the first of its kind in Indian country. The complicated financing has no fewer than a dozen outside financial entities involved in its structure.

Also finished are the $2.1 million Apache Ridge Apartments, which provide 22 apartments to low-income tribal members. These were financed in part by the Low-Income Housing Tax Credit program. The tax credits were sold by Enterprise Social Investment Corp. Fannie Mae made a $750,000 investment.

Victor Velasquez, chairman of the White Mountain Apache Housing Authority, noted that the new construction would put a nice dent in the tribe’s waiting list of more than 1,400 families. He was joined at the ribbon-cutting by tribal chairman Duane Massey Sr., Mary Martuscelli of Bank One Arizona, Elisa de la Vara of Fannie Mae’s Arizona office, and Paul Jurkowski, head of the Department of Housing and Urban Development’s Native lending programs.

In addition to using the first tax-exempt bond to finance Indian housing, the project also is the largest use to date of the HUD 184 Mortgage program. Bank One is using the proceeds of the bond offering to lend money to Apache Dawn occupants through HUD 184. The borrowers have the option to buy the units in ten years from the WMAHA, which issued the bonds. Ten million dollars worth of mortgages have been completed with another $7 million in the works.

Residents will accumulate a maintenance stipend so they can take care of their homes. The money left over can be used for a down payment on the mortgage in ten years. In the meantime, the housing authority provides the prospective mortgage-takers with homebuyer education on how to become successful homeowners.

The financing of Apache Dawn may be one of the most complicated to date in Indian housing. The White Mountain tribe provided the land and infrastructure and authorized money from its housing block grant to be used on the project. HUD provides and guarantees the Section 184 mortgages. Bank One will originate the HUD 184 mortgages, which will be serviced (monthly collection of payments, maintenance of escrow accounts) by Countrywide Home Loans, which is also using the loans as collateral to issue Ginnie Mae securities.

But that’s only half of it. National Bank of Arizona is serving as bond trustee, and Kutak Rock LLP of Scottsdale, Ariz., as bond counsel. US Bancorp Piper Jaffray of Minneapolis was in charge of selling the bonds, which were bought by SIT Investments and mortgage agencies Fannie Mae and Freddie Mac. And finally, Washington Mutual Bank’s Phoenix office sponsored the project for a grant from the Federal Home Loan Banks of Seattle and San Francisco.