Banks in Alaska have been active in making HUD Title VI loans for 15 years.  The village or the regional housing authority develops with the residents of the village or region - what housing priorities are be it senior housing, single family homes, or multifamily housing.  Local banks are making those loans regularly because HUD guaranties 95% of the loan if it goes bad.  For reasons discussed in other comments here, it is illogical for bank management make direct loans that would not be in the interest of it's shareholders due to risk of default.