October 29, 2026
No application. No waiting list. Community Development explains who qualifies, how the program works and what Elders should know about receiving mortgage relief.
By Vivian LaMoore, Inaajimowin Editor
If you're a Mille Lacs Band Elder who is still making payments on a home purchased through the Band, you may qualify to have your remaining mortgage balance forgiven. The Elder Home Loan Forgiveness Program, enacted May 29, 2026, provides debt relief to qualifying Band members age 55 and older who have repaid at least half of their original home loan principal.
Administered through the Community Development Department, the permanent program is available to all eligible Band members with qualifying home loans. There is no application process or waiting list. Instead, the Housing Loan Department reviews loan balances and borrower ages each month to identify those who qualify or are approaching eligibility.
Since the program began, the Band has forgiven 45 Elder home loans totaling $2,655,953 in mortgage debt.
For District || Representative Wendy Merrill, who introduced the legislation, the program reflects the importance of caring for the Elders who have spent their lives caring for others.
"The Elders are the knowledge keepers," Merrill told Inaajimowin in June. "They are the ones who helped raise us and share their knowledge. We always have to take care of our relatives."
The legislation grew out of conversations with Elders who approached Merrill about the financial challenges they faced. For many, the opportunity to eliminate years of remaining mortgage payments offers a measure of financial security and peace of mind.
A DREAM COME TRUE FOR ONE ELDER
For Mille Lacs Band member Rick Anderson, 66, the program has been life-changing.
Anderson purchased his home through the Mille Lacs Band in June 2004 and spent the next 22 years making mortgage payments. He began working at age 14 and retired at 62, but his original 35-year mortgage meant he would still be making payments until 2039, when he would be 79.
When Anderson first heard about the proposed legislation last summer, he began following its progress closely, watching Band Assembly meetings online as lawmakers considered the proposal.
The possibility of having his remaining mortgage balance forgiven was almost too good to believe.
"I can't really put into words how I was feeling at the time and knowing this is really happening," Anderson said, describing his excitement and gratitude as the legislation moved forward.
Today, his mortgage is paid off.
"It is like a dream come true. Knowing my home is completely paid off is a huge relief," he said.
Anderson expressed his appreciation to the elected officials who made the program possible. "I am so grateful to all of Band Assembly and the Chief Executive. Chi-Miigwech."
WHO QUALIFIES FOR LOAN FORGIVENESS?
The Elder Home Loan Forgiveness Program is available to enrolled Mille Lacs Band members who meet the following requirements:
• Age: Must be 55 years of age or older.
• Home loan: Must have a mortgage through the Mille Lacs Band Home Loan Program.
• Principal paid: Must have repaid at least 50 percent of the original loan principal. Interest and fees do not count toward that requirement.
• Payments: Must be current on mortgage payments, property taxes and required escrow obligations. Elders with an escrow shortage may contact Community Development to arrange payment of the amount owed.
• Residency: Must own and occupy the home as their primary residence and agree to retain ownership and continue living there for at least three years after forgiveness.
• Escrow participation: Must sign a General Welfare Exclusion (GWE) deduction authorization allowing the Band to pay homeowners insurance and applicable property taxes through its escrow program for three years after forgiveness.
The benefit is available only once during a Band member's lifetime. Non-Band member spouses do not independently qualify, and forgiveness cannot be granted to deceased borrowers.
No application or waiting list.
Unlike many assistance programs, the Elder Home Loan Forgiveness Program does not require an application, and there is no waiting list.
The Housing Loan Department reviews mortgage balances and borrower ages each month to identify Band members who qualify or are approaching eligibility. Birthday information is provided by the Enrollment Department.
When an Elder qualifies or is nearing eligibility, Community Development mails a letter explaining the program and identifying the information needed to complete the process, including homeowners insurance and applicable property tax statements.
A second reminder letter is mailed approximately two months later. No additional reminders are sent.
Elders are encouraged to open and review their mail from Community Development.
Band members who believe they may quality but have not received a letter, or who are unsure how much of their original mortgage principal they have repaid, should contact the Housing Loan Department.
Those wishing to reach the 50 percent principal repayment requirement sooner may also make additional payments toward their loan.
Once all eligibility requirements are satisfied and the required funding is available, the remaining principal balance may be forgiven, along with associated interest, fees and other loan charges.
WHAT HAPPENS AFTER FORGIVENESS?
Although the remaining mortgage debt is eliminated, homeowners remain responsible for maintaining insurance coverage and paying applicable property taxes.
For the first three years after loan forgiveness, the Band provides escrow services through the General Welfare Exclusion program to cover those expenses.
After three years, homeowners may choose to continue participating in the escrow program or sign an opt-out form and assume responsibility for paying their own homeowners insurance and applicable property taxes.
Elders must also retain ownership and continue living in their homes for at least three years after forgiveness. Selling the home before that period ends may require repayment of a prorated portion of the forgiven loan.
The program was established under Act 25-26, which Band Assembly unanimously approved May 20 and Chief Executive Virgil Wind signed into law May 29, 2026. The legislation followed an earlier proposal and a compromise process addressing concerns about long-term funding and potential tax consequences.
The program incorporates provisions of the federal Tribal General Welfare Exclusion Act, which allows qualifying general welfare assistance to be excluded from taxable income.
HONORING THOSE WHO CAME BEFORE US
For Merrill, the legislation represents a commitment to the values passed down through generations.
She often reflects on advice from her wenh'eh, the late Joe Nayquonabe Sr. "He always said, We always have to take care of each other. We have to listen to each other and love each other, respect each other. I think about that all the time." For Anderson, that commitment has translated into something tangible: a home he spent more than two decades paying for is now his, free of mortgage debt.
And for other qualifying Elders, the program offers the possibility of the same financial relief and peace of mind.
THINK YOU MIGHT QUALIFY?
Band members age 55 and older who have a home loan through the Mille Lacs Band are encouraged to contact the Community Development Department's Housing Loan Department to review their loan status and learn more about the Elder Home Loan Forgiveness Program.