Members of K'atlodeeche First Nation (KFN) voted overwhelmingly on Oct. 15 in support of a process called lands designation.
"It was solid support for the land designation," said Peter Groenen, CEO of the First Nation.
Of the 84 ballots cast in a referendum, 73 votes were in favour, eight were opposed and three were spoiled.
The referendum was conducted by the Department of Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).
"Initially, the idea was to be able to have land available where band members would be able to get mortgages for a house," said Groenen.
The CEO explained that all land on the reserve is held in trust for the band by the federal government and the land could only be assigned to band members.
However, lands designation, when it is implemented, will allow land to be leased and people would then be able to get a mortgage on a house because a bank or some other lender could use the house and lease as security. If necessary, a bank could repossess the house and then put it up for sale, along with control of the land for as long as the lease exists.
Groenen said not many financial institutions would mortgage anything on a reserve if land is not designated, although he noted it has happened in rare cases.
"It's a very common practice," he said of lands designation. "Some land here has already been designated, but we're designating some additional lands mainly to free up some houses that the Housing Corporation has here. And once that's done, then we'll be able to sell those houses to people and they can get mortgages on them."
The change was supported by KFN band council and the federal department.
Groenen said it will probably take a few months to be implemented.
"Because it has to go back to CIRNAC and the minister has to eventually sign off on it. Then it's done," he said.
Groenen noted it would be possible for non-members of KFN to live or even perhaps operate a business on the Hay River Reserve, if there's no band member interested in buying a particular house or leasing a piece of land.
"They can apply to lease land," he said. "The council would be able to lease land. Without the designation, land can only be assigned to band members."
On its website, CIRNAC explains that, in general, designated lands are reserve lands that a First Nation has agreed to lease for commercial, agricultural, recreational or other purposes.
"Similar to how a municipality would zone land for a specific purpose off a reserve, First Nations who operate under the Indian Act identify lands on their reserve for specific purposes following a land designation process," the CIRNAC explanation states. "Designated lands remain reserve lands."
CIRNAC said the arrangement allows First Nations to economically benefit from their lands and to manage them according to their bylaws.
Over 400 KFN members were eligible to vote in the referendum.
Groenen noted that, under CIRNAC rules, only a simple majority of those who voted is required for lands designation to be approved in a referendum.