24 Cfr 1000

Pt. 1000

24 CFR Ch. IX (4–1–02 Edition)

PART 1000—NATIVE AMERICAN
HOUSING ACTIVITIES
Subpart A—General
Sec.
1000.1 What is the applicability and scope of
these regulations?
1000.2 What are the guiding principles in the
implementation of NAHASDA?
1000.4 What
are
the
objectives
of
NAHASDA?
1000.6 What is the nature of the IHBG program?
1000.8 May provisions of these regulations
be waived?
1000.10 What definitions apply in these regulations?
1000.12 What nondiscrimination requirements are applicable?
1000.14 What relocation and real property
acquisition policies are applicable?
1000.16 What labor standards are applicable?
1000.18 What environmental review requirements apply?
1000.20 Is an Indian tribe required to assume
environmental review responsibilities?
1000.22 Are the costs of the environmental
review an eligible cost?
1000.24 If an Indian tribe assumes environmental review responsibility, how will
HUD assist the Indian tribe in performing the environmental review?
1000.26 What are the administrative requirements under NAHASDA?
1000.28 May a self-governance Indian tribe
be exempted from the applicability of
§ 1000.26?
1000.30 What prohibitions regarding conflict
of interest are applicable?
1000.32 May exceptions be made to the conflict of interest provisions?
1000.34 What factors must be considered in
making an exception to the conflict of
interest provisions?
1000.36 How long must a recipient retain
records regarding exceptions made to the
conflict of interest provisions?
1000.38 What flood insurance requirements
are applicable?
1000.40 Do lead-based paint poisoning prevention requirements apply to affordable
housing activities under NAHASDA?
1000.42 Are the requirements of section 3 of
the Housing and Urban Development Act
of 1968 applicable?
1000.44 What prohibitions on the use of
debarred, suspended or ineligible contractors apply?
1000.46 Do drug-free workplace requirements apply?
1000.48 Are Indian preference requirements
applicable to IHBG activities?
1000.50 What Indian preference requirements apply to IHBG administration activities?

1000.52 What Indian preference requirements apply to IHBG procurement?
1000.54 What procedures apply to complaints arising out of any of the methods
of providing for Indian preference?
1000.56 How are NAHASDA funds paid by
HUD to recipients?
1000.58 Are there limitations on the investment of IHBG funds?
1000.60 Can HUD prevent improper expenditure of funds already disbursed to a recipient?
1000.62 What is considered program income
and what restrictions are there on its
use?

Subpart B—Affordable Housing Activities
1000.101 What is affordable housing?
1000.102 What are eligible affordable housing activities?
1000.104 What families are eligible for affordable housing activities?
1000.106 What families receiving assistance
under title II of NAHASDA require HUD
approval?
1000.108 How is HUD approval obtained by a
recipient for housing for non low-income
Indian families and model activities?
1000.110 Under what conditions may non
low-income Indian families participate in
the program?
1000.112 How will HUD determine whether
to approve model housing activities?
1000.114 How long does HUD have to review
and act on a proposal to provide assistance to non low-income Indian families
or a model housing activity?
1000.116 What should HUD do before declining a proposal to provide assistance to
non low-income Indian families or a
model housing activity?
1000.118 What recourse does a recipient have
if HUD disapproves a proposal to provide
assistance to non low-income Indian families or a model housing activity?
1000.120 May a recipient use Indian preference or tribal preference in selecting
families for housing assistance?
1000.122 May NAHASDA grant funds be used
as matching funds to obtain and leverage
funding, including any Federal or state
program and still be considered an affordable housing activity?
1000.124 What maximum and minimum rent
or homebuyer payment can a recipient
charge a low-income rental tenant or
homebuyer residing in housing units assisted with NAHASDA grant amounts?
1000.126 May a recipient charge flat or income-adjusted rents?
1000.128 Is income verification required for
assistance under NAHASDA?
1000.130 May a recipient charge a non lowincome family rents or homebuyer payments which are more than 30 percent of
the family’s adjusted income?

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Office of the Assistant Secretary, HUD

Pt. 1000

1000.132 Are utilities considered a part of
rent or homebuyer payments?
1000.134 When may a recipient (or entity
funded by a recipient) demolish or dispose of current assisted stock?
1000.136 What insurance requirements apply
to housing units assisted with NAHASDA
grants?
1000.138 What constitutes adequate insurance?
1000.140 May a recipient use grant funds to
purchase insurance for privately owned
housing to protect NAHASDA grant
amounts spent on that housing?
1000.142 What is the ‘‘useful life’’ during
which low-income rental housing and
low-income homebuyer housing must remain affordable as required in sections
205(a)(2) and 209 of NAHASDA?
1000.144 Are Mutual Help homes developed
under the 1937 Act subject to the useful
life provisions of section 205(a)(2)?
1000.146 Are homebuyers required to remain
low-income throughout the term of their
participation in a housing program funded under NAHASDA?
1000.150 How may Indian tribes and TDHEs
receive criminal conviction information
on adult applicants or tenants?
1000.152 How is the recipient to use criminal
conviction information?
1000.154 How is the recipient to keep criminal conviction information confidential?
1000.156 Is affordable housing developed, acquired, or assisted under the IHBG program subject to limitations on cost or
design standards?
1000.158 How will a NAHASDA grant recipient know that the housing assisted under
the IHBG program meets the requirements of § 1000.156?
1000.160 Are non-dwelling structures developed, acquired or assisted under the
IHBG program subject to limitations on
cost or design standards?
1000.162 How will a recipient know that nondwelling structures assisted under the
IHBG program meet the requirements of
1000.160?

Subpart C—Indian Housing Plan (IHP)
1000.201 How are funds made available under
NAHASDA?
1000.202 Who are eligible recipients?
1000.204 How does an Indian tribe designate
itself as recipient of the grant?
1000.206 How is a TDHE designated?
1000.208 What happens if an Indian tribe had
two IHAs as of September 30, 1996?
1000.210 What happens to existing 1937 Act
units in those jurisdictions for which Indian tribes do not or cannot submit an
IHP?
1000.212 Is submission of an IHP required?
1000.214 What is the deadline for submission
of an IHP?

1000.216 What happens if the recipient does
not submit the IHP to the Area ONAP by
July 1?
1000.218 Who prepares an submits an IHP?
1000.220 What are the minimum requirements for the IHP?
1000.222 Are there separate IHP requirements for small Indian tribes and small
TDHEs?
1000.224 Can any part of the IHP be waived?
1000.226 Can the certification requirements
of section 102(c)(5) of NAHASDA be
waived by HUD?
1000.228 If HUD changes its IHP format will
Indian tribes be involved?
1000.230 What is the process for HUD review
of IHPs and IHP amendments?
1000.232 Can an Indian tribe or TDHE amend
its IHP?
1000.234 Can HUD’s determination regarding
the non-compliance of an IHP or a modification to an IHP be appealed?
1000.236 What are eligible administrative
and planning expenses?
1000.238 What percentage of the IHBG funds
can be used for administrative and planning expenses?
1000.240 When is a local cooperation agreement required for affordable housing activities?
1000.242 When does the requirement for exemption from taxation apply to affordable housing activities?

Subpart D—Allocation Formula
1000.301 What is the purpose of the IHBG
formula?
1000.302 What are the definitions applicable
for the IHBG formula?
1000.304 May the IHBG formula be modified?
1000.306 How can the IHBG formula be modified?
1000.308 Who can make modifications to the
IHBG formula?
1000.310 What are the components of the
IHBG formula?
1000.312 What is current assisted stock?
1000.314 What is formula current assisted
stock?
1000.316 How is the Formula Current Assisted Stock (FCAS) Component developed?
1000.317 Who is the recipient for funds for
current assisted stock which is owned by
state-created Regional Native Housing
Authorities in Alaska?
1000.318 When do units under Formula Current Assisted Stock cease to be counted
or expire from the inventory used for the
formula?
1000.320 How is Formula Current Assisted
Stock adjusted for local area costs?
1000.322 Are IHA financed units included in
the determination of Formula Current
Assisted Stock?

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Pt. 1000

24 CFR Ch. IX (4–1–02 Edition)

1000.324 How is the need component developed?
1000.325 How is the need component adjusted for local area costs?
1000.326 What if a formula area is served by
more than one Indian tribe?
1000.327 What is the order of preference for
allocating the IHBG formula needs data
for Indian tribes in Alaska not located on
reservations due to the unique circumstances in Alaska?
1000.328 What is the minimum amount an
Indian tribe can receive under the need
component of the formula?
1000.330 What are data sources for the need
variables?
1000.332 Will data used by HUD to determine
an Indian tribe’s or TDHE’s formula allocation be provided to the Indian tribe or
TDHE before the allocation?
1000.334 May Indian tribes, TDHEs, or HUD
challenge the data from the U.S. Decennial Census or provide an alternative
source of data?
1000.336 How may an Indian tribe, TDHE, or
HUD challenge data?
1000.340 What if an Indian tribe is allocated
less funding under the block grant formula than it received in Fiscal Year 1996
for operating subsidy and modernization?

Subpart E—Federal Guarantees for
Financing of Tribal Housing Activities
1000.401 What terms are used throughout
this subpart?
1000.402 Are State recognized Indian tribes
eligible for guarantees under title VI of
NAHASDA?
1000.404 What lenders are eligible for participation?
1000.406 What constitutes tribal approval to
issue notes or other obligations under
title VI of NAHASDA?
1000.408 How does an Indian tribe or TDHE
show that it has made efforts to obtain
financing without a guarantee and cannot complete such financing in a timely
manner?
1000.410 What conditions shall HUD prescribe when providing a guarantee for
notes or other obligations issued by an
Indian tribe?
1000.412 Can an issuer obtain a guarantee
for more than one note or other obligation at a time?
1000.414 How is an issuer’s financial capacity demonstrated?
1000.416 What is a repayment contract in a
form acceptable to HUD?
1000.418 Can grant funds be used to pay
costs incurred when issuing notes or
other obligations?
1000.420 May grants made by HUD under
section 603 of NAHASDA be used to pay
net interest costs incurred when issuing
notes or other obligations?

1000.422 What are the procedures for applying for loan guarantees under title VI of
NAHASDA?
1000.424 What are the application requirements for guarantee assistance under
title VI of NAHASDA?
1000.426 How does HUD review a guarantee
application?
1000.428 For what reasons may HUD disapprove an application or approve an application for an amount less than that
requested?
1000.430 When will HUD issue notice to the
applicant if the application is approved
at the requested or reduced amount?
1000.432 Can an amendment to an approved
guarantee be made?
1000.434 How will HUD allocate the availability of loan guarantee assistance?
1000.436 How will HUD monitor the use of
funds guaranteed under this subpart?

Subpart F—Recipient Monitoring, Oversight
and Accountability
1000.501 Who is involved in monitoring activities under NAHASDA?
1000.502 What are the monitoring responsibilities of the recipient, the grant beneficiary and HUD under NAHASDA?
1000.504 What are the recipient performance
objectives?
1000.506 If the TDHE is the recipient, must
it submit its monitoring evaluation/results to the Indian tribe?
1000.508 If the recipient monitoring identifies programmatic concerns, what happens?
1000.510 What happens if tribal monitoring
identifies compliance concerns?
1000.512 Are performance reports required?
1000.514 When must the annual performance
report be submitted?
1000.516 What reporting period is covered by
the annual performance report?
1000.518 When must a recipient obtain public comment on its annual performance
report?
1000.520 What are the purposes of HUD review?
1000.521 After the receipt of the recipient’s
performance report, how long does HUD
have to make recommendations under
section 404(c) of NAHASDA?
1000.522 How will HUD give notice of on-site
reviews?
1000.524 What are HUD’s performance measures for the review?
1000.526 What information will HUD use for
its review?
1000.528 What are the procedures for the recipient to comment on the result of
HUD’s review when HUD issues a report
under section 405(b) of NAHASDA?
1000.530 What corrective and remedial actions will HUD request or recommend to
address performance problems prior to

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Office of the Assistant Secretary, HUD

§ 1000.2

taking
action
under
§ 1000.532
or
§ 1000.538?
1000.532 What are the adjustments HUD
makes to a recipient’s future year’s
grant amount under section 405 of
NAHASDA?
1000.534 What constitutes substantial noncompliance?
1000.536 What happens to NAHASDA grant
funds adjusted, reduced, withdrawn, or
terminated under § 1000.532 or § 1000.538?
1000.538 What remedies are available for
substantial noncompliance?
1000.540 What hearing procedures will be
used under NAHASDA?
1000.542 When may HUD require replacement of a recipient?
1000.544 What audits are required?
1000.546 Are audit costs eligible program or
administrative expenses?
1000.548 Must a copy of the recipient’s audit
pursuant to the Single Audit Act relating to NAHASDA activities be submitted
to HUD?
1000.550 If the TDHE is the recipient, does it
have to submit a copy of its audit to the
Indian tribe?
1000.552 How long must the recipient maintain program records?
1000.554 Which agencies have right of access
to the recipient’s records relating to activities carried out under NAHASDA?
1000.556 Does the Freedom of Information
Act (FOIA) apply to recipient records?
1000.558 Does the Federal Privacy Act apply
to recipient records?
APPENDIX A TO PART 1000—INDIAN HOUSING
BLOCK GRANT FORMULA MECHANICS
APPENDIX B TO PART 1000—IHBG BLOCK
GRANT FORMULA MECHANISMS
AUTHORITY: 25 U.S.C. 4101 et seq.; 42 U.S.C.
3535(d).
SOURCE: 63 FR 12349, Mar. 12, 1998, unless
otherwise noted.

Subpart A—General
§ 1000.1 What is the applicability and
scope of these regulations?
Under the Native American Housing
Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4101 et seq.)
(NAHASDA) the Department of Housing and Urban Development (HUD) provides grants, loan guarantees, and
technical assistance to Indian tribes
and Alaska Native villages for the development and operation of low-income
housing in Indian areas. The policies
and procedures described in this part
apply to grants to eligible recipients
under the Indian Housing Block Grant
(IHBG) program for Indian tribes and

Alaska Native villages. This part also
applies to loan guarantee assistance
under title VI of NAHASDA. The regulations in this part supplement the
statutory requirements set forth in
NAHASDA. This part, as much as practicable, does not repeat statutory language.
§ 1000.2 What are the guiding principles in the implementation of
NAHASDA?
(a) The Secretary shall use the following Congressional findings set forth
in section 2 of NAHASDA as the guiding principles in the implementation of
NAHASDA:
(1) The Federal government has a responsibility to promote the general
welfare of the Nation:
(i) By using Federal resources to aid
families and individuals seeking affordable homes in safe and healthy environments and, in particular, assisting
responsible, deserving citizens who
cannot provide fully for themselves because of temporary circumstances or
factors beyond their control;
(ii) By working to ensure a thriving
national economy and a strong private
housing market; and
(iii) By developing effective partnerships among the Federal government,
state, tribal, and local governments,
and private entities that allow government to accept responsibility for fostering the development of a healthy
marketplace and allow families to
prosper without government involvement in their day-to-day activities.
(2) There exists a unique relationship
between the Government of the United
States and the governments of Indian
tribes and a unique Federal responsibility to Indian people.
(3) The Constitution of the United
States invests the Congress with plenary power over the field of Indian affairs, and through treaties, statutes,
and historical relations with Indian
tribes, the United States has undertaken a unique trust responsibility to
protect and support Indian tribes and
Indian people.
(4) The Congress, through treaties,
statutes, and the general course of
dealing with Indian tribes, has assumed
a trust responsibility for the protection and preservation of Indian tribes

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§ 1000.4

24 CFR Ch. IX (4–1–02 Edition)

and for working with Indian tribes and
their members to improve their housing conditions and socioeconomic status so that they are able to take greater responsibility for their own economic condition.
(5) Providing affordable homes in safe
and healthy environments is an essential element in the special role of the
United States in helping Indian tribes
and their members to improve their
housing conditions and socioeconomic
status.
(6) The need for affordable homes in
safe and healthy environments on Indian reservations, in Indian communities, and in Native Alaskan villages
is acute and the Federal government
should work not only to provide housing assistance, but also, to the extent
practicable, to assist in the development of private housing finance mechanisms on Indian lands to achieve the
goals of economic self-sufficiency and
self-determination for Indian tribes
and their members.
(7) Federal assistance to meet these
responsibilities should be provided in a
manner that recognizes the right of Indian self-determination and tribal selfgovernance by making such assistance
available directly to the Indian tribes
or tribally designated entities under
authorities similar to those accorded
Indian tribes in Public Law 93–638 (25
U.S.C. 450 et seq.).
(b) Nothing in this section shall be
construed as releasing the United
States government from any responsibility arising under its trust responsibilities towards Indians or any treaty
or treaties with an Indian tribe or nation.
§ 1000.4 What are the objectives of
NAHASDA?
The primary objectives of NAHASDA
are:
(a) To assist and promote affordable
housing activities to develop, maintain
and operate affordable housing in safe
and healthy environments on Indian
reservations and in other Indian areas
for occupancy by low-income Indian
families;
(b) To ensure better access to private
mortgage markets for Indian tribes and
their members and to promote self-suf-

ficiency of Indian tribes and their
members;
(c) To coordinate activities to provide housing for Indian tribes and their
members and to promote self-sufficiency of Indian tribes and their members;
(d) To plan for and integrate infrastructure resources for Indian tribes
with housing development for Indian
tribes; and
(e) To promote the development of
private capital markets in Indian country and to allow such markets to operate and grow, thereby benefiting Indian
communities.
§ 1000.6 What is the nature of the
IHBG program?
The IHBG program is formula driven
whereby eligible recipients of funding
receive an equitable share of appropriations made by the Congress, based upon
formula components specified under
subpart D of this part. IHBG recipients
must have the administrative capacity
to undertake the affordable housing activities proposed, including the systems of internal control necessary to
administer these activities effectively
without fraud, waste, or mismanagement.
§ 1000.8 May provisions of these regulations be waived?
Yes. Upon determination of good
cause, the Secretary may, subject to
statutory limitations, waive any provision of this part and delegate this authority in accordance with section 106
of the Department of Housing and
Urban Development Reform Act of 1989
(42 U.S.C. 3535(q)).
§ 1000.10 What definitions
these regulations?

apply

in

Except as noted in a particular subpart, the following definitions apply in
this part:
(a) The terms ‘‘Adjusted income,’’
‘‘Affordable
housing,’’
‘‘Drug-related
criminal activity,’’ ‘‘Elderly families and
near-elderly families,’’ ‘‘Elderly person,’’
‘‘Grant beneficiary,’’ ‘‘Indian,’’ ‘‘Indian
housing plan (IHP),’’ ‘‘Indian tribe,’’

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Office of the Assistant Secretary, HUD

§ 1000.10

‘‘Low-income family,’’ ‘‘Near-elderly persons,’’ ‘‘Nonprofit,’’ ‘‘Recipient,’’ Secretary,’’ ‘‘State,’’ and ‘‘Tribally designated housing entity (TDHE)’’ are defined in section 4 of NAHASDA.
(b) In addition to the definitions set
forth in paragraph (a) of this section,
the following definitions apply to this
part:
Affordable housing activities are those
activities identified in section 202 of
NAHASDA.
Annual Contributions Contract (ACC)
means a contract under the 1937 Act
between HUD and an IHA containing
the terms and conditions under which
HUD assists the IHA in providing decent, safe, and sanitary housing for
low-income families.
Annual income has one of the following meanings, as determined by the
Indian tribe:
(1) ‘‘Annual income’’ as defined for
HUD’s Section 8 programs in 24 CFR
part 5, subpart F (except when determining the income of a homebuyer for
an
owner-occupied
rehabilitation
project, the value of the homeowner’s
principal residence may be excluded
from the calculation of Net Family assets); or
(2) Annual income as reported under
the Census long-form for the most recent available decennial Census. This
definition includes:
(i) Wages, salaries, tips, commissions, etc.;
(ii) Self-employment income;
(iii) Farm self-employment income;
(iv) Interest, dividends, net rental income, or income from estates or trusts;
(v) Social security or railroad retirement;
(vi) Supplemental Security Income,
Aid to Families with Dependent Children, or other public assistance or public welfare programs;
(vii) Retirement, survivor, or disability pensions; and
(viii) Any other sources of income received regularly, including Veterans’
(VA) payments, unemployment compensation, and alimony; or
(3) Adjusted gross income as defined
for purposes of reporting under Internal Revenue Service (IRS) Form 1040
series for individual Federal annual income tax purposes.

Assistant Secretary means the Assistant Secretary for Public and Indian
Housing.
Department or HUD means the Department of Housing and Urban Development.
Family includes, but is not limited to,
a family with or without children, an
elderly family, a near-elderly family, a
disabled family, a single person, as determined by the Indian tribe.
Homebuyer payment means the payment of a family purchasing a home
pursuant to a lease purchase agreement.
Homeless family means a family who
is without safe, sanitary and affordable
housing even though it may have temporary shelter provided by the community, or a family who is homeless as determined by the Indian tribe.
IHBG means Indian Housing Block
Grant.
Income means annual income as defined in this subpart.
Indian Area means the area within
which an Indian tribe operates affordable housing programs or the area in
which a TDHE is authorized by one or
more Indian tribes to operate affordable housing programs. Whenever the
term
‘‘jurisdiction’’
is
used
in
NAHASDA it shall mean ‘‘Indian Area’’
except where specific reference is made
to the jurisdiction of a court.
Indian Housing Authority (IHA) means
an entity that:
(1) Is authorized to engage or assist
in the development or operation of lowincome housing for Indians under the
1937 Act; and
(2) Is established:
(i) By exercise of the power of self
government of an Indian tribe independent of state law; or
(ii) By operation of state law providing specifically for housing authorities for Indians, including regional
housing authorities in the State of
Alaska.
Median income for an Indian area is
the greater of:
(1) The median income for the counties, previous counties, or their equivalent in which the Indian area is located; or
(2) The median income for the United
States.

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§ 1000.12

24 CFR Ch. IX (4–1–02 Edition)

NAHASDA means the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101
et seq.).
1937 Act means the United States
Housing Act of 1937 (42 U.S.C. 1437 et
seq.).
Office of Native American Programs
(ONAP) means the office of HUD which
has been delegated authority to administer programs under this part. An
‘‘Area ONAP’’ is an ONAP field office.
Person with Disabilities means a person who —
(1) Has a disability as defined in section 223 of the Social Security Act;
(2) Has a developmental disability as
defined in section 102 of the Developmental Disabilities Assistance and Bill
of Rights Act;
(3) Has a physical, mental, or emotional impairment which(i) Is expected to be of long-continued
and indefinite duration;
(ii) Substantially impedes his or her
ability to live independently; and
(iii) Is of such a nature that such
ability could be improved by more suitable housing conditions.
(4) The term ‘‘person with disabilities’’ includes persons who have the
disease of acquired immunodeficiency
syndrome or any condition arising
from the etiologic agent for acquired
immunodeficiency syndrome.
(5) Notwithstanding any other provision of law, no individual shall be considered a person with disabilities, for
purposes of eligibility for housing assisted under this part, solely on the
basis of any drug or alcohol dependence. The Secretary shall consult with
Indian tribes and appropriate Federal
agencies to implement this paragraph.
(6) For purposes of this definition,
the term ‘‘physical, mental or emotional
impairment’’ includes, but is not limited
to:
(i) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of
the following body systems: Neurological, musculoskeletal, special sense
organs, respiratory, including speech
organs; cardiovascular; reproductive;
digestive; genito-urinary; hemic and
lymphatic; skin; and endocrine; or
(ii) Any mental or psychological condition, such as mental retardation, or-

ganic brain syndrome, emotional or
mental illness, and specific learning
disabilities.
(iii) The term ‘‘physical, mental, or
emotional impairment’’ includes, but is
not limited to, such diseases and conditions as orthopedic, visual, speech, and
hearing impairments, cerebral palsy,
autism, epilepsy, muscular dystrophy,
multiple sclerosis, cancer, heart disease,
diabetes,
Human
Immunodeficiency Virus infection, mental retardation, and emotional illness.
§ 1000.12 What nondiscrimination requirements are applicable?
(a) The requirements of the Age Discrimination Act of 1975 (42 U.S.C. 6101–
6107) and HUD’s implementing regulations in 24 CFR part 146.
(b) Section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794) and HUD’s
regulations at 24 CFR part 8 apply.
(c) The Indian Civil Rights Act (Title
II of the Civil Rights Act of 1968; 25
U.S.C. 1301–1303), applies to Federally
recognized Indian tribes that exercise
powers of self-government.
(d) Title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d) and title VIII of
the Civil Rights Act of 1968 (42 U.S.C.
3601 et seq.) apply to Indian tribes that
are not covered by the Indian Civil
Rights Act. However, the Title VI and
Title VIII requirements do not apply to
actions by Indian tribes under section
201(b) of NAHASDA.
§ 1000.14 What relocation and real
property acquisition policies are
applicable?
The following relocation and real
property acquisition policies are applicable to programs developed or operated under NAHASDA:
(a) Real Property acquisition requirements. The acquisition of real property
for an assisted activity is subject to 49
CFR part 24, subpart B. Whenever the
recipient does not have the authority
to acquire the real property through
condemnation, it shall:
(1) Before discussing the purchase
price, inform the owner:
(i) Of the amount it believes to be the
fair market value of the property. Such
amount shall be based upon one or
more appraisals prepared by a qualified
appraiser. However, this provision does

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Office of the Assistant Secretary, HUD

§ 1000.14

not prevent the recipient from accepting a donation or purchasing the real
property at less than its fair market
value.
(ii) That it will be unable to acquire
the property if negotiations fail to result in an amicable agreement.
(2) Request HUD approval of the proposed acquisition price before executing a firm commitment to purchase
the property if the proposed acquisition payment exceeds the fair market
value. The recipient shall include with
its request a copy of the appraisal(s)
and a justification for the proposed acquisition payment. HUD will promptly
review the proposal and inform the recipient of its approval or disapproval.
(b) Minimize displacement. Consistent
with the other goals and objectives of
this part, recipients shall assure that
they have taken all reasonable steps to
minimize the displacement of persons
(households, businesses, nonprofit organizations, and farms) as a result of a
project assisted under this part.
(c) Temporary relocation. The following policies cover residential tenants and homebuyers who will not be
required to move permanently but who
must relocate temporarily for the
project. Such residential tenants and
homebuyers shall be provided:
(1) Reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the temporary relocation,
including the cost of moving to and
from the temporarily occupied housing
and any increase in monthly housing
costs (e.g., rent/utility costs).
(2) Appropriate advisory services, including reasonable advance written notice of:
(i) The date and approximate duration of the temporary relocation;
(ii) The location of the suitable, decent, safe and sanitary dwelling to be
made available for the temporary period;
(iii) The terms and conditions under
which the tenant may occupy a suitable, decent, safe, and sanitary dwelling in the building/complex following
completion of the repairs; and
(iv) The provisions of paragraph (c)(1)
of this section.
(d) Relocation assistance for displaced
persons. A displaced person (defined in
paragraph (g) of this section) must be

provided relocation assistance at the
levels described in, and in accordance
with the requirements of, the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended (URA) (42 U.S.C. 4601–4655)
and implementing regulations at 49
CFR part 24.
(e) Appeals to the recipient. A person
who disagrees with the recipient’s determination concerning whether the
person qualifies as a ‘‘displaced person,’’ or the amount of relocation assistance for which the person is eligible, may file a written appeal of that
determination with the recipient.
(f) Responsibility of recipient. (1) The
recipient shall certify that it will comply with the URA, the regulations at 49
CFR part 24, and the requirements of
this section. The recipient shall ensure
such compliance notwithstanding any
third party’s contractual obligation to
the recipient to comply with the provisions in this section.
(2) The cost of required relocation assistance is an eligible project cost in
the same manner and to the same extent as other project costs. However,
such assistance may also be paid for
with funds available to the recipient
from any other source.
(3) The recipient shall maintain
records in sufficient detail to demonstrate compliance with this section.
(g) Definition of displaced person. (1)
For purposes of this section, the term
‘‘displaced person’’ means any person
(household, business, nonprofit organization, or farm) that moves from real
property, or moves his or her personal
property from real property, permanently, as a direct result of rehabilitation, demolition, or acquisition for a
project assisted under this part. The
term ‘‘displaced person’’ includes, but
is not limited to:
(i) A tenant-occupant of a dwelling
unit who moves from the building/complex permanently after the submission
to HUD of an IHP that is later approved.
(ii) Any person, including a person
who moves before the date described in
paragraph (g)(1)(i) of this section, that
the recipient determines was displaced
as a direct result of acquisition, rehabilitation, or demolition for the assisted project.

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§ 1000.16

24 CFR Ch. IX (4–1–02 Edition)

(iii) A tenant-occupant of a dwelling
unit who moves from the building/complex permanently after the execution
of the agreement between the recipient
and HUD, if the move occurs before the
tenant is provided written notice offering him or her the opportunity to lease
and occupy a suitable, decent, safe and
sanitary dwelling in the same building/
complex, under reasonable terms and
conditions, upon completion of the
project. Such reasonable terms and
conditions include a monthly rent and
estimated average monthly utility
costs that do not exceed the greater of:
(A) The tenant-occupant’s monthly
rent and estimated average monthly
utility costs before the agreement; or
(B) 30 percent of gross household income.
(iv) A tenant-occupant of a dwelling
who is required to relocate temporarily, but does not return to the building/complex, if either:
(A) The tenant-occupant is not offered payment for all reasonable outof-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from
the temporarily occupied unit, any increased housing costs and incidental
expenses; or
(B) Other conditions of the temporary relocation are not reasonable.
(v) A tenant-occupant of a dwelling
who moves from the building/complex
after he or she has been required to
move to another dwelling unit in the
same building/complex in order to
carry out the project, if either:
(A) The tenant-occupant is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move; or
(B) Other conditions of the move are
not reasonable.
(2) Notwithstanding the provisions of
paragraph (g)(1) of this section, a person does not qualify as a ‘‘displaced
person’’ (and is not eligible for relocation assistance under the URA or this
section), if:
(i) The person moved into the property after the submission of the IHP to
HUD, but, before signing a lease or
commencing occupancy, was provided
written notice of the project, its possible impact on the person (e.g., the
person may be displaced, temporarily

relocated or suffer a rent increase) and
the fact that the person would not
qualify as a ‘‘displaced person’’ or for
any assistance provided under this section as a result of the project.
(ii) The person is ineligible under 49
CFR 24.2(g)(2).
(iii) The recipient determines the
person is not displaced as a direct result of acquisition, rehabilitation, or
demolition for an assisted project. To
exclude a person on this basis, HUD
must concur in that determination.
(3) A recipient may at any time ask
HUD to determine whether a specific
displacement is or would be covered
under this section.
(h) Definition of initiation of negotiations. For purposes of determining the
formula for computing the replacement
housing assistance to be provided to a
person displaced as a direct result of
rehabilitation or demolition of the real
property, the term ‘‘initiation of negotiations’’ means the execution of the
agreement covering the rehabilitation
or demolition (See 49 CFR part 24).
§ 1000.16 What labor standards are applicable?
(a) Davis-Bacon wage rates. (1) As described in section 104(b) of NAHASDA,
contracts and agreements for assistance, sale or lease under NAHASDA
must require prevailing wage rates determined by the Secretary of Labor
under the Davis-Bacon Act (40 U.S.C.
276a–276a–5) to be paid to laborers and
mechanics employed in the development of affordable housing.
(2) When NAHASDA assistance is
only used to assist homebuyers to acquire single family housing, the DavisBacon wage rates apply to the construction of the housing if there is a
written agreement with the owner or
developer
of
the
housing
that
NAHASDA assistance will be used to
assist homebuyers to buy the housing.
(3) Prime contracts not in excess of
$2000 are exempt from Davis-Bacon
wage rates.
(b) HUD-determined wage rates. Section 104(b) also mandates that contracts and agreements for assistance,
sale or lease under NAHASDA require
that prevailing wages determined or
adopted (subsequent to a determination under applicable state, tribal or

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Office of the Assistant Secretary, HUD

§ 1000.24

local law) by HUD shall be paid to
maintenance laborers and mechanics
employed in the operation, and to architects,
technical
engineers,
draftsmen and technicians employed in
the development, of affordable housing.
(c) Contract Work Hours and Safety
Standards Act. Contracts in excess of
$100,000 to which Davis-Bacon or HUDdetermined wage rates apply are subject by law to the overtime provisions
of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 327).
(d) Volunteers. The requirements in 24
CFR part 70 concerning exemptions for
the use of volunteers on projects subject to Davis-Bacon and HUD-determined wage rates are applicable.
(e) Other laws and issuances. Recipients, contractors, subcontractors, and
other participants must comply with
regulations issued under the labor
standards provisions cited in this section, other applicable Federal laws and
regulations pertaining to labor standards, and HUD Handbook 1344.1 (Federal Labor Standards Compliance in
Housing and Community Development
Programs).
§ 1000.18 What environmental review
requirements apply?
The environmental effects of each activity carried out with assistance
under this part must be evaluated in
accordance with the provisions of the
National Environmental Policy Act of
1969 (NEPA) (42 U.S.C. 4321) and the related authorities listed in HUD’s implementing regulations at 24 CFR parts 50
and 58. An environmental review does
not have to be completed prior to HUD
approval of an IHP.
§ 1000.20 Is an Indian tribe required to
assume environmental review responsibilities?
(a) No. It is an option an Indian tribe
may choose. If an Indian tribe declines
to assume the environmental review
responsibilities, HUD will perform the
environmental review in accordance
with 24 CFR part 50. The timing of
HUD undertaking the environmental
review will be subject to the availability of resources. A HUD environmental review must be completed for
any NAHASDA assisted activities not
excluded from review under 24 CFR

50.19(b) before a recipient may acquire,
rehabilitate, convert, lease, repair or
construct property, or commit HUD or
local funds used in conjunction with
such NAHASDA assisted activities
with respect to the property.
(b) If an Indian tribe assumes environmental review responsibilities:
(1) Its certifying officer must certify
that he/she is authorized and consents
on behalf of the Indian tribe and such
officer to accept the jurisdiction of the
Federal courts for the purpose of enforcement of the responsibilities of the
certifying officer as set forth in section
105(c) of NAHASDA; and
(2) The Indian tribe must follow the
requirements of 24 CFR part 58.
(3) No funds may be committed to a
grant activity or project before the
completion of the environmental review and approval of the request for release of funds and related certification
required by sections 105(b) and 105(c) of
NAHASDA, except as authorized by 24
CFR part 58 such as for the costs of environmental reviews and other planning and administrative expenses.
(c) Where an environmental assessment (EA) is appropriate under 24 CFR
part 50, instead of an Indian tribe assuming environmental review responsibilities under paragraph (b) of this
section or HUD preparing the EA itself
under paragraph (a) of this section, an
Indian tribe or TDHE may prepare an
EA for HUD review. In addition to complying with the requirements of 40 CFR
1506.5(a), HUD shall make its own evaluation of the environmental issues and
take responsibility for the scope and
content of the EA in accordance with
40 CFR 1506.5(b).
§ 1000.22 Are the costs of the environmental review an eligible cost?
Yes, costs of completing the environmental review are eligible.
§ 1000.24 If an Indian tribe assumes
environmental
review
responsibility, how will HUD assist the Indian tribe in performing the environmental review?
As set forth in section 105(a)(2)(B) of
NAHASDA and 24 CFR 58.77, HUD will
provide for monitoring of environmental reviews and will also facilitate
training for the performance for such
reviews by Indian tribes.

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§ 1000.26

24 CFR Ch. IX (4–1–02 Edition)

§ 1000.26 What are the administrative
requirements under NAHASDA?
(a) Except as addressed in § 1000.28,
recipients shall comply with the requirements and standards of OMB Circular No. A–87, ‘‘Principles for Determining Costs Applicable to Grants and
Contracts with State, Local and Federally recognized Indian Tribal Governments,’’ and with the following sections of 24 CFR part 85 ‘‘Uniform Administrative Requirements for Grants
and Cooperative Agreements to State
and Local Governments.’’ For purposes
of this part, ‘‘grantee’’ as defined in 24
CFR part 85 has the same meaning as
‘‘recipient.’’
(1) Section 85.3, ‘‘Definitions.’’
(2) Section 85.6, ‘‘Exceptions.’’
(3) Section 85.12, ‘‘Special grant or
subgrant conditions for ‘high risk’
grantees.’’
(4) Section 85.20, ‘‘Standards for financial management systems,’’ except
paragraph (a).
(5) Section 85.21, ‘‘Payment.’’
(6) Section 85.22, ‘‘Allowable costs.’’
(7) Section 85.26, ‘‘Non-federal audits.’’
(8) Section 85.32, ‘‘Equipment,’’ except in all cases in which the equipment is sold, the proceeds shall be program income.
(9) Section 85.33, ‘‘Supplies.’’
(10) Section 85.35, ‘‘Subawards to
debarred and suspended parties.’’
(11) Section 85.36, ‘‘Procurement,’’ except paragraph (a). There may be circumstances under which the bonding
requirements of § 85.36(h) are inconsistent with other responsibilities and
obligations of the recipient. In such
circumstances, acceptable methods to
provide performance and payment assurance may include:
(i) Deposit with the recipient of a
cash escrow of not less than 20 percent
of the total contract price, subject to
reduction during the warranty period,
commensurate with potential risk;
(ii) Letter of credit for 25 percent of
the total contract price, unconditionally payable upon demand of the recipient, subject to reduction during any
warranty period commensurate with
potential risk; or
(iii) Letter of credit for 10 percent of
the total contract price unconditionally payable upon demand of the recipi-

ent subject to reduction during any
warranty period commensurate with
potential risk, and compliance with the
procedures for monitoring of disbursements by the contractor.
(12) Section 85.37, ‘‘Subgrants.’’
(13) Section 85.40, ‘‘Monitoring and
reporting program performance,’’ except paragraphs (b) through (d) and
paragraph (f).
(14) Section 85.41, ‘‘Financial reporting,’’ except paragraphs (a), (b), and (e).
(15) Section 85.44, ‘‘Termination for
convenience.’’
(16) Section 85.51 ‘‘Later disallowances and adjustments.’’
(17) Section 85.52, ‘‘Collection of
amounts due.’’
(b)(1) With respect to the applicability of cost principles, all items of
cost listed in Attachment B of OMB
Circular A–87 which require prior Federal agency approval are allowable
without the prior approval of HUD to
the extent that they comply with the
general policies and principles stated
in Attachment A of this circular and
are otherwise eligible under this part,
except for the following:
(i) Depreciation methods for fixed assets shall not be changed without specific approval of HUD or, if charged
through a cost allocation plan, the
Federal cognizant agency.
(ii) Fines and penalties are unallowable costs to the IHBG program.
(2) In addition, no person providing
consultant services in an employer-employee type of relationship shall receive more than a reasonable rate of
compensation for personal services
paid with IHBG funds. In no event,
however, shall such compensation exceed the equivalent of the daily rate
paid for Level IV of the Executive
Schedule.
§ 1000.28 May a self-governance Indian
tribe be exempted from the applicability of § 1000.26?
Yes. A self-governance Indian tribe
shall certify that its administrative requirements, standards and systems
meet or exceed the comparable requirements of § 1000.26. For purposes of this
section, a self-governance Indian tribe
is an Indian tribe that participates in
tribal self-governance as authorized

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Office of the Assistant Secretary, HUD

§ 1000.38

under Public Law 93–638, as amended
(25 U.S.C. 450 et seq.).
§ 1000.30 What prohibitions regarding
conflict of interest are applicable?
(a) Applicability. In the procurement
of supplies, equipment, other property,
construction and services by recipients
and subrecipients, the conflict of interest provisions of 24 CFR 85.36 shall
apply. In all cases not governed by 24
CFR 85.36, the following provisions of
this section shall apply.
(b) Conflicts prohibited. No person who
participates in the decision-making
process or who gains inside information with regard to NAHASDA assisted
activities may obtain a personal or financial interest or benefit from such
activities, except for the use of
NAHASDA funds to pay salaries or
other related administrative costs.
Such persons include anyone with an
interest in any contract, subcontract
or agreement or proceeds thereunder,
either for themselves or others with
whom they have business or immediate
family ties. Immediate family ties are
determined by the Indian tribe or
TDHE in its operating policies.
(c) The conflict of interest provision
does not apply in instances where a
person who might otherwise be included under the conflict provision is
low-income and is selected for assistance in accordance with the recipient’s
written policies for eligibility, admission and occupancy of families for
housing assistance with IHBG funds,
provided that there is no conflict of interest under applicable tribal or state
law. The recipient must make a public
disclosure of the nature of assistance
to be provided and the specific basis for
the selection of the person. The recipient shall provide the appropriate Area
ONAP with a copy of the disclosure before the assistance is provided to the
person.
§ 1000.32 May exceptions be made to
the conflict of interest provisions?
(a) Yes. HUD may make exceptions
to the conflict of interest provisions
set forth in § 1000.30(b) on a case-bycase basis when it determines that
such an exception would further the
primary objective of NAHASDA and
the effective and efficient implementa-

tion of the recipient’s program, activity, or project.
(b) A public disclosure of the conflict
must be made and a determination
that the exception would not violate
tribal laws on conflict of interest (or
any applicable state laws) must also be
made.
§ 1000.34 What factors must be considered in making an exception to the
conflict of interest provisions?
In determining whether or not to
make an exception to the conflict of
interest provisions, HUD must consider
whether undue hardship will result, either to the recipient or to the person
affected, when weighed against the
public interest served by avoiding the
prohibited conflict.
§ 1000.36 How long must a recipient
retain records regarding exceptions
made to the conflict of interest provisions?
A recipient must maintain all such
records for a period of at least 3 years
after an exception is made.
§ 1000.38 What flood insurance
quirements are applicable?

re-

Under the Flood Disaster Protection
Act of 1973, as amended (42 U.S.C. 4001–
4128), a recipient may not permit the
use of Federal financial assistance for
acquisition and construction purposes
(including rehabilitation) in an area
identified by the Federal Emergency
Management Agency (FEMA) as having
special flood hazards, unless the following conditions are met:
(a) The community in which the area
is situated is participating in the National Flood Insurance Program in accord with section 202(a) of the Flood
Disaster Protection Act of 1973 (42
U.S.C. 4106(a)), or less than a year has
passed since FEMA notification regarding such flood hazards. For this purpose, the ‘‘community’’ is the governmental entity, such as an Indian tribe
or authorized tribal organization, an
Alaska Native village, or authorized
Native organization, or a municipality
or county, that has authority to adopt
and enforce flood plain management
regulations for the area; and
(b) Where the community is participating in the National Flood Insurance

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§ 1000.40

24 CFR Ch. IX (4–1–02 Edition)

Program, flood insurance on the building is obtained in compliance with section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012(a));
provided, that if the financial assistance is in the form of a loan or an insurance or guaranty of a loan, the
amount of flood insurance required
need not exceed the outstanding principal balance of the loan and need not
be required beyond the term of the
loan.
§ 1000.40 Do lead-based paint poisoning prevention requirements
apply to affordable housing activities under NAHASDA?
Yes, lead-based paint requirements
apply to housing activities assisted
under NAHASDA. The applicable requirements for NAHASDA are HUD’s
regulations at part 35, subparts A, B, H,
J, K, M and R of this title, which implement the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822–
4846) and the Residential Lead-Based
Paint Hazard Reduction Act of 1992 (42
U.S.C. 4851–4856).
[64 FR 50230, Sept. 15, 1999; 65 FR 3387, Jan.
21, 2000]SECTION≤
§ 1000.42 Are the requirements of section 3 of
the Housing and Urban Development Act
of 1968 applicable?

(a) General. Yes. Recipients shall
comply with section 3 of the Housing
and Urban Development Act of 1968 (12
U.S.C. 1701u) and HUD’s implementing
regulations in 24 CFR part 135, to the
maximum extent feasible and consistent with, but not in derogation of,
compliance with section 7(b) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450e(b)). Section 3 provides job training, employment, and contracting opportunities
for low-income individuals.
(b) Threshold requirement. The requirements of section 3 apply only to
those section 3 covered projects or activities for which the amount of assistance exceeds $200,000.
§ 1000.44 What prohibitions on the use
of debarred, suspended or ineligible
contractors apply?
In addition to any tribal requirements, the prohibitions in 24 CFR part
24 on the use of debarred, suspended or
ineligible contractors apply.

§ 1000.46 Do drug-free workplace requirements apply?
Yes. In addition to any tribal requirements, the Drug-Free Workplace
Act of 1988 (41 U.S.C. 701 et seq.) and
HUD’s implementing regulations in 24
CFR part 24 apply.
§ 1000.48 Are Indian preference requirements applicable to IHBG activities?
(a) Applicability. Grants under this
part are subject to section 7(b) of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
450e(b). Section 7(b) provides that any
contract,
subcontract,
grant
or
subgrant pursuant to an act authorizing grants to Indian organizations or
for the benefit of Indians shall require
that, to the greatest extent feasible:
(1) Preference and opportunities for
training and employment shall be
given to Indians, and
(2) Preference in the award of contracts and subcontracts shall be given
to Indian organizations and Indianowned economic enterprises as defined
in section 3 of the Indian Financing
Act of 1974 (25 U.S.C. 1452).
(b) Definitions.
(1) The Indian Self-Determination
and Education Assistance Act defines
‘‘Indian’’ to mean a person who is a
member of an Indian tribe and defines
‘‘Indian tribe’’ to mean any Indian
tribe, band, nation, or other organized
group or community including any
Alaska Native village or regional or
village corporation as defined or established pursuant to the Alaska Native
Claims Settlement Act, which is recognized as eligible for the special programs and services provided by the
United States to Indians because of
their status as Indians.
(2) In section 3 of the Indian Financing Act of 1974 ‘‘economic enterprise’’
is defined as any Indian-owned commercial, industrial, or business activity established or organized for the
purpose of profit, except that Indian
ownership must constitute not less
than 51 percent of the enterprise. This
act defines ‘‘Indian organization’’ to
mean the governing body of any Indian
tribe or entity established or recognized by such governing body.

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Office of the Assistant Secretary, HUD

§ 1000.52

§ 1000.50 What Indian preference requirements apply to IHBG administration activities?
To the greatest extent feasible, preference and opportunities for training
and employment in connection with
the administration of grants awarded
under this part shall be given to Indians.
§ 1000.52 What Indian preference requirements apply to IHBG procurement?
To the greatest extent feasible, recipients shall give preference in the
award of contracts for projects funded
under this part to Indian organizations
and Indian-owned economic enterprises.
(a) Each recipient shall:
(1) Certify to HUD that the polices
and procedures adopted by the recipient will provide preference in procurement activities consistent with the requirements of section 7(b) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.450e(b)) (An Indian preference policy which was previously approved by HUD for a recipient will meet the requirements of this
section); or
(2) Advertise for bids or proposals
limited to qualified Indian organizations and Indian-owned enterprises; or
(3) Use a two-stage preference procedure, as follows:
(i) Stage 1. Invite or otherwise solicit
Indian-owned economic enterprises to
submit a statement of intent to respond to a bid announcement or request for proposals limited to Indianowned firms.
(ii) Stage 2. If responses are received
from more than one Indian enterprise
found to be qualified, advertise for bids
or proposals limited to Indian organizations and Indian-owned economic enterprises.
(b) If the recipient selects a method
of providing preference that results in
fewer than two responsible qualified organizations or enterprises submitting a
statement of intent, a bid or a proposal
to perform the contract at a reasonable
cost, then the recipient shall:
(1) Re-advertise the contract, using
any of the methods described in paragraph (a) of this section; or

(2) Re-advertise the contract without
limiting the advertisement for bids or
proposals to Indian organizations and
Indian-owned economic enterprises; or
(3) If one approvable bid or proposal
is received, request Area ONAP review
and approval of the proposed contract
and related procurement documents, in
accordance with 24 CFR 85.36, in order
to award the contract to the single bidder or offeror.
(c) Procurements that are within the
dollar limitations established for small
purchases under 24 CFR 85.36 need not
follow the formal bid or proposal procedures of paragraph (a) of this section,
since these procurements are governed
by the small purchase procedures of 24
CFR 85.36. However, a recipient’s small
purchase procurement shall, to the
greatest extent feasible, provide Indian
preference in the award of contracts.
(d) All preferences shall be publicly
announced in the advertisement and
bidding or proposal solicitation documents and the bidding and proposal
documents.
(e) A recipient, at its discretion, may
require information of prospective contractors seeking to qualify as Indian
organizations or Indian-owned economic enterprises. Recipients may require prospective contractors to provide the following information before
submitting a bid or proposal, or at the
time of submission:
(1) Evidence showing fully the extent
of Indian ownership and interest;
(2) Evidence of structure, management and financing affecting the Indian character of the enterprise, including major subcontracts and purchase agreements; materials or equipment supply arrangements; and management salary or profit-sharing arrangements; and evidence showing the
effect of these on the extent of Indian
ownership and interest; and
(3) Evidence sufficient to demonstrate to the satisfaction of the recipient that the prospective contractor
has the technical, administrative, and
financial capability to perform contract work of the size and type involved.
(f) The recipient shall incorporate
the following clause (referred to as the
section 7(b) clause) in each contract

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§ 1000.54

24 CFR Ch. IX (4–1–02 Edition)

awarded in connection with a project
funded under this part:
(1) The work to be performed under
this contract is on a project subject to
section 7(b) of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450e(b)) (the Indian Act).
Section 7(b) requires that to the greatest extent feasible:
(i) Preferences and opportunities for
training and employment shall be
given to Indians; and
(ii) Preferences in the award of contracts and subcontracts shall be given
to Indian organizations and Indianowned economic enterprises.
(2) The parties to this contract shall
comply with the provisions of section
7(b) of the Indian Act.
(3) In connection with this contract,
the contractor shall, to the greatest
extent feasible, give preference in the
award of any subcontracts to Indian organizations and Indian-owned economic enterprises, and preferences and
opportunities for training and employment to Indians.
(4) The contractor shall include this
section 7(b) clause in every subcontract
in connection with the project, and
shall, at the direction of the recipient,
take appropriate action pursuant to
the subcontract upon a finding by the
recipient or HUD that the subcontractor has violated the section 7(b)
clause of the Indian Act.
§ 1000.54 What procedures apply to
complaints arising out of any of the
methods of providing for Indian
preference?
The following procedures are applicable to complaints arising out of any of
the methods of providing for Indian
preference contained in this part, including alternate methods. Tribal policies that meet or exceed the requirements of this section shall apply.
(a) Each complaint shall be in writing, signed, and filed with the recipient.
(b) A complaint must be filed with
the recipient no later than 20 calendar
days from the date of the action (or
omission) upon which the complaint is
based.
(c) Upon receipt of a complaint, the
recipient shall promptly stamp the
date and time of receipt upon the com-

plaint, and immediately acknowledge
its receipt.
(d) Within 20 calendar days of receipt
of a complaint, the recipient shall either meet, or communicate by mail or
telephone, with the complainant in an
effort to resolve the matter. The recipient shall make a determination on
a complaint and notify the complainant, in writing, within 30 calendar days
of the submittal of the complaint to
the recipient. The decision of the recipient shall constitute final administrative action on the complaint.
§ 1000.56 How are NAHASDA funds
paid by HUD to recipients?
(a) Each year funds shall be paid directly to a recipient in a manner that
recognizes the right of Indian self-determination and tribal self-governance
and the trust responsibility of the Federal government to Indian tribes consistent with NAHASDA.
(b) Payments shall be made as expeditiously as practicable.
§ 1000.58 Are there limitations on the
investment of IHBG funds?
(a) A recipient may invest IHBG
funds for the purposes of carrying out
affordable housing activities in investment securities and other obligations
as provided in this section.
(b) The recipient may invest IHBG
funds so long as it demonstrates to
HUD:
(1) That there are no unresolved significant and material audit findings or
exceptions in the most recent annual
audit completed under the Single Audit
Act or in an independent financial
audit prepared in accordance with generally accepted auditing principles; and
(2) That it is a self-governance Indian
tribe or that it has the administrative
capacity and controls to responsibly
manage the investment. For purposes
of this section, a self-governance Indian tribe is an Indian tribe that participates in tribal self-governance as
authorized under Public Law 93–638, as
amended (25 U.S.C. 450 et seq.).
(c) Recipients shall invest IHBG
funds only in:
(1) Obligations of the United States;
obligations issued by Government
sponsored agencies; securities that are
guaranteed or insured by the United

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Office of the Assistant Secretary, HUD

§ 1000.101

States; mutual (or other) funds registered with the Securities and Exchange Commission and which invest
only in obligations of the United
States or securities that are guaranteed or insured by the United States;
or
(2) Accounts that are insured by an
agency or instrumentality of the
United States or fully collateralized to
ensure protection of the funds, even in
the event of bank failure.
(d) IHBG funds shall be held in one or
more accounts separate from other
funds of the recipient. Each of these accounts shall be subject to an agreement in a form prescribed by HUD sufficient to implement the regulations in
this part and permit HUD to exercise
its rights under § 1000.60.
(e) Expenditure of funds for affordable housing activities under section
204(a) of NAHASDA shall not be considered investment.
(f) A recipient may invest its IHBG
annual grant in an amount equal to the
annual formula grant amount less any
formula grant amounts allocated for
the operating subsidy element of the
Formula Current Assisted Housing
Stock (FCAS) component of the formula (see §§ 1000.316(a) and 1000.320)
multiplied by the following percentages, as appropriate:
(1) 50% in Fiscal Years 1998 and 1999;
(2) 75% in Fiscal Year 2000; and
(3) 100% in Fiscal Years 2001 and
thereafter.
(g) Investments under this section
may be for a period no longer than two
years.
§ 1000.60 Can HUD prevent improper
expenditure of funds already disbursed to a recipient?
Yes. In accordance with the standards and remedies contained in
§ 1000.538 relating to substantial noncompliance, HUD will use its powers
under a depository agreement and take
such other actions as may be legally
necessary to suspend funds disbursed to
the recipient until the substantial noncompliance has been remedied. In taking this action, HUD shall comply with
all appropriate procedures, appeals and
hearing rights prescribed elsewhere in
this part.

§ 1000.62 What is considered program
income and what restrictions are
there on its use?
(a) Program income is defined as any
income that is realized from the disbursement of grant amounts. Program
income does not include any amounts
generated from the operation of 1937
Act units unless the units are assisted
with grant amounts and the income is
attributable to such assistance. Program income includes income from fees
for services performed from the use of
real or rental of real or personal property acquired with grant funds, from
the sale of commodities or items developed, acquired, etc. with grant funds,
and from payments of principal and interest earned on grant funds prior to
disbursement.
(b) Any program income can be retained by a recipient provided it is used
for affordable housing activities in accordance
with
section
202
of
NAHASDA. If the amount of income received in a single year by a recipient
and all its subrecipients, which would
otherwise be considered program income, does not exceed $25,000, such
funds may be retained but will not be
considered to be or treated as program
income.
(c) If program income is realized
from an eligible activity funded with
both grant funds as well as other funds
(i.e., funds that are not grant funds),
then the amount of program income realized will be based on a percentage
calculation that represents the proportional share of funds provided for the
activity generating the program income.
(d) Costs incident to the generation
of program income shall be deducted
from gross income to determine program income.

Subpart B—Affordable Housing
Activities
§ 1000.101

What is affordable housing?

Eligible affordable housing is defined
in section 4(2) of NAHASDA and is described in title II of NAHASDA.

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§ 1000.102

24 CFR Ch. IX (4–1–02 Edition)

§ 1000.102 What are eligible affordable
housing activities?
Eligible affordable housing activities
are those described in section 202 of
NAHASDA.
§ 1000.104 What families are eligible
for affordable housing activities?
The following families are eligible for
affordable housing activities:
(a) Low income Indian families on a
reservation or Indian area.
(b) A non-low income Indian family
may receive housing assistance in accordance with § 1000.110, except that
non low-income Indian families residing in housing assisted under the 1937
Act do not have to meet the requirements of § 1000.110 for continued occupancy.
(c) A non-Indian family may receive
housing assistance on a reservation or
Indian area if the non-Indian family’s
housing needs cannot be reasonably
met without such assistance and the
recipient determines that the presence
of that family on the reservation or Indian area is essential to the well-being
of Indian families, except that non-Indian families residing in housing assisted under the 1937 Act do not have to
meet these requirements for continued
occupancy.
§ 1000.106 What families receiving assistance under title II of NAHASDA
require HUD approval?
(a) Housing assistance for non low-income Indian families requires HUD approval only as required in §§ 1000.108
and 1000.110.
(b) Assistance under section 201(b)(3)
of NAHASDA for non-Indian families
does not require HUD approval but
only requires that the recipient determine that the presence of that family
on the reservation or Indian area is essential to the well-being of Indian families and the non-Indian family’s housing needs cannot be reasonably met
without such assistance.
§ 1000.108 How is HUD approval obtained by a recipient for housing
for non low-income Indian families
and model activities?
Recipients are required to submit
proposals to operate model housing activities as defined in section 202(6) of

NAHASDA and to provide assistance to
non low-income Indian families in accordance with section 201(b)(2) of
NAHASDA. Assistance to non low-income Indian families must be in accordance with § 1000.110. Proposals may
be submitted in the recipient’s IHP or
at any time by amendment of the IHP,
or by special request to HUD at any
time. HUD may approve the remainder
of an IHP notwithstanding disapproval
of a model activity or assistance to non
low-income Indian families.
§ 1000.110 Under what conditions may
non low-income Indian families participate in the program?
(a) A family who is purchasing housing under a lease purchase agreement
and who was low income at the time
the lease was signed is eligible without
further conditions.
(b) A recipient may provide the following types of assistance to non lowincome Indian families under the conditions specified in paragraphs (c), (d)
and (e) of this section:
(1) Homeownership activities under
section 202(2) of NAHASDA, which may
include assistance in conjunction with
loan guarantees under the Section 184
program (see 24 CFR part 1005);
(2) Model activities under section
202(6) of NAHASDA; and
(3) Loan guarantee activities under
title VI of NAHASDA.
(c) A recipient must determine and
document that there is a need for housing for each family which cannot reasonably be met without such assistance.
(d) A recipient may use up to 10 percent of its annual grant amount for
families whose income falls within 80
to 100 percent of the median income
without HUD approval. HUD approval
is required if a recipient plans to use
more than 10 percent of its annual
grant amount for such assistance or to
provide housing for families with income over 100 percent of median income.
(e) Non low-income Indian families
cannot receive the same benefits provided low-income Indian families. The
amount of assistance non low-income
Indian families may receive will be determined as follows:

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Office of the Assistant Secretary, HUD

§ 1000.118

(1) The rent (including homebuyer
payments under a lease purchase agreement) to be paid by a non low-income
Indian family cannot be less than: (Income of non low-income family/Income
of family at 80 percent of median income) × (Rental payment of family at
80 percent of median income), but need
not exceed the fair market rent or
value of the unit.
(2) Other assistance, including down
payment assistance, to non low-income
Indian families, cannot exceed: (Income of family at 80 percent of median
income/Income of non low-income family) × (Present value of the assistance
provided to family at 80 percent of median income).
(f) The requirements set forth in
paragraph (e) of this section do not
apply to non low-income Indian families which the recipient has determined
to be essential to the well-being of the
Indian families residing in the housing
area.
§ 1000.112 How will HUD determine
whether to approve model housing
activities?
HUD will review all proposals with
the goal of approving the activities and
encouraging the flexibility, discretion,
and self-determination granted to Indian tribes under NAHASDA to formulate and operate innovative housing
programs that meet the intent of
NAHASDA.
§ 1000.114 How long does HUD have to
review and act on a proposal to
provide assistance to non low-income Indian families or a model
housing activity?
Whether submitted in the IHP or at
any other time, HUD will have sixty
calendar days after receiving the proposal to notify the recipient in writing
that the proposal to provide assistance
to non low-income Indian families or
for model activities is approved or disapproved. If no decision is made by
HUD within sixty calendar days of receiving the proposal, the proposal is
deemed to have been approved by HUD.

§ 1000.116 What should HUD do before
declining a proposal to provide assistance to non low-income Indian
families or a model housing activity?
HUD shall consult with a recipient
regarding the recipient’s proposal to
provide assistance to non low-income
Indian families or a model housing activity. To the extent resources are
available, HUD shall provide technical
assistance to the recipient in amending
and modifying the proposal if necessary. In case of a denial, HUD shall
give the specific reasons for the denial.
§ 1000.118 What recourse does a recipient have if HUD disapproves a proposal to provide assistance to non
low-income Indian families or a
model housing activity?
(a) Within thirty calendar days of receiving HUD’s denial of a proposal to
provide assistance to non low-income
Indian families or a model housing activity, the recipient may request reconsideration of the denial in writing.
The request shall set forth justification
for the reconsideration.
(b) Within twenty calendar days of
receiving the request, HUD shall reconsider the recipient’s request and either
affirm or reverse its initial decision in
writing, setting forth its reasons for
the decision. If the decision was made
by the Assistant Secretary, the decision will constitute final agency action. If the decision was made at a
lower level, then paragraphs (c) and (d)
of this section will apply.
(c) The recipient may appeal any denial of reconsideration by filing an appeal with the Assistant Secretary within twenty calendar days of receiving
the denial. The appeal shall set forth
the reasons why the recipient does not
agree with HUD’s decision and set
forth justification for the reconsideration.
(d) Within twenty calendar days of
receipt of the appeal, the Assistant
Secretary shall review the recipient’s
appeal and act on the appeal, setting
forth the reasons for the decision.

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§ 1000.120

24 CFR Ch. IX (4–1–02 Edition)

§ 1000.120 May a recipient use Indian
preference or tribal preference in
selecting families for housing assistance?
Yes. The IHP may set out a preference for the provision of housing assistance to Indian families who are
members of the Indian tribe or to other
Indian families if the recipient has
adopted the preference in its admissions policy. The recipient shall ensure
that housing activities funded under
NAHASDA are subject to the preference.
§ 1000.122 May NAHASDA grant funds
be used as matching funds to obtain
and leverage funding, including any
Federal or state program and still
be considered an affordable housing activity?
There is no prohibition in NAHASDA
against using grant funds as matching
funds.
§ 1000.124 What maximum and minimum rent or homebuyer payment
can a recipient charge a low-income
rental tenant or homebuyer residing in housing units assisted with
NAHASDA grant amounts?
A recipient can charge a low-income
rental tenant or homebuyer rent or
homebuyer payments not to exceed 30
percent of the adjusted income of the
family. The recipient may also decide
to compute its rental and homebuyer
payments on any lesser percentage of
adjusted income of the family. This requirement applies only to units assisted with NAHASDA grant amounts.
NAHASDA does not set minimum rents
or homebuyer payments; however, a recipient may do so.
§ 1000.126 May a recipient charge flat
or income-adjusted rents?
Yes, providing the rental or homebuyer payment of the low-income family does not exceed 30 percent of the
family’s adjusted income.
§ 1000.128 Is income verification required
for
assistance
under
NAHASDA?
(a) Yes, the recipient must verify
that the family is income eligible
based on anticipated annual income.
The family is required to provide documentation to verify this determina-

tion. The recipient is required to maintain the documentation on which the
determination of eligibility is based.
(b) The recipient may require a family to periodically verify its income in
order to determine housing payments
or continued occupancy consistent
with locally adopted policies. When income verification is required, the family must provide documentation which
verifies its income, and this documentation must be retained by the recipient.
§ 1000.130 May a recipient charge a
non low-income family rents or
homebuyer payments which are
more than 30 percent of the family’s
adjusted income?
Yes. A recipient may charge a non
low-income family rents or homebuyer
payments which are more than 30 percent of the family’s adjusted income.
§ 1000.132 Are utilities considered a
part of rent or homebuyer payments?
Utilities may be considered a part of
rent or homebuyer payments if a recipient decides to define rent or homebuyer payments to include utilities in
its written policies on rents and homebuyer payments required by section
203(a)(1) of NAHASDA. A recipient may
define rents and homebuyer payments
to exclude utilities.
§ 1000.134 When may a recipient (or
entity funded by a recipient) demolish or dispose of current assisted
stock?
(a) A recipient (or entity funded by a
recipient) may undertake a planned
demolition or disposal of current assisted stock owned by the recipient or
an entity funded by the recipient when:
(1) A financial analysis demonstrates
that it is more cost-effective or housing program-effective for the recipient
to demolish or dispose of the unit than
to continue to operate or own it; or
(2) The housing unit has been condemned by the government which has
authority over the unit; or
(3) The housing unit is an imminent
threat to the health and safety of housing residents; or
(4) Continued habitation of a housing
unit is inadvisable due to cultural or
historical considerations.

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Office of the Assistant Secretary, HUD

§ 1000.146

(b) No action to demolish or dispose
of the property other than performing
the analysis cited in paragraph (a) of
this section can be taken until HUD
has been notified in writing of the recipient’s intent to demolish or dispose
of the housing units consistent with
section 102(c)(4)(H) of NAHASDA. The
written notification must set out the
analysis used to arrive at the decision
to demolish or dispose of the property
and may be set out in a recipient’s IHP
or in a separate submission to HUD.
(c) In any disposition sale of a housing unit, a sale process designed to
maximize the sale price will be used.
However, where the sale is to a low-income Indian family, the home may be
disposed of without maximizing the
sale price so long as such price is consistent with a recipient’s IHP. The sale
proceeds from the disposition of any
housing unit are program income under
NAHASDA and must be used in accordance
with
the
requirements
of
NAHASDA and these regulations.
§ 1000.136 What insurance requirements apply to housing units assisted with NAHASDA grants?
(a) The recipient shall provide adequate insurance either by purchasing
insurance
or
by
indemnification
against casualty loss by providing insurance in adequate amounts to indemnify the recipient against loss from
fire, weather, and liability claims for
all housing units owned or operated by
the recipient.
(b) The recipients shall not require
insurance on units assisted by grants
to families for privately owned housing
if there is no risk of loss or exposure to
the recipient or if the assistance is in
an amount less than $5000, but will require insurance when repayment of all
or part of the assistance is part of the
assistance agreement.
(c) The recipient shall require contractors and subcontractors to either
provide insurance covering their activities or negotiate adequate indemnification coverage to be provided by
the recipient in the contract.
(d) These requirements are in addition to applicable flood insurance requirements under § 1000.38.

§ 1000.138 What constitutes adequate
insurance?
Insurance is adequate if it is a purchased insurance policy from an insurance provider or a plan of self-insurance in an amount that will protect
the financial stability of the recipient’s IHBG program. Recipients may
purchase the required insurance without regard to competitive selection
procedures from nonprofit insurance
entities which are owned and controlled by recipients and which have
been approved by HUD.
§ 1000.140 May a recipient use grant
funds to purchase insurance for privately owned housing to protect
NAHASDA grant amounts spent on
that housing?
Yes. All purchases of insurance must
be in accordance with §§ 1000.136 and
1000.138.
§ 1000.142 What is the ‘‘useful life’’
during which low-income rental
housing and low-income homebuyer
housing must remain affordable as
required in sections 205(a)(2) and
209 of NAHASDA?
Each recipient shall describe in its
IHP its determination of the useful life
of each assisted housing unit in each of
its developments in accordance with
the local conditions of the Indian area
of the recipient. By approving the plan,
HUD determines the useful life in accordance with section 205(a)(2) of
NAHASDA and for purposes of section
209.
§ 1000.144 Are Mutual Help homes developed under the 1937 Act subject
to the useful life provisions of section 205(a)(2)?
No.
§ 1000.146 Are homebuyers required to
remain low-income throughout the
term of their participation in a
housing program funded under
NAHASDA?
No. The low-income eligibility requirement applies only at the time of
purchase. However, families purchasing
housing under a lease purchase agreement who are not low-income at the
time of purchase are eligible under
§ 1000.110.

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§ 1000.150

24 CFR Ch. IX (4–1–02 Edition)

§ 1000.150 How may Indian tribes and
TDHEs receive criminal conviction
information on adult applicants or
tenants?
(a) As required by section 208 of
NAHASDA, the National Crime Information Center, police departments, and
other law enforcement agencies shall
provide criminal conviction information to Indian tribes and TDHEs upon
request. Information regarding juveniles shall only be released to the extent such release is authorized by the
law of the applicable state, Indian tribe
or locality.
(b) For purposes of this section, the
term ‘‘tenants’’ includes homebuyers
who are purchasing a home pursuant to
a lease purchase agreement.
§ 1000.152 How is the recipient to use
criminal conviction information?
The recipient shall use the criminal
conviction information described in
§ 1000.150 only for applicant screening,
lease enforcement and eviction actions.
The information may be disclosed only
to any person who has a job related
need for the information and who is an
authorized officer, employee, or representative of the recipient or the
owner of housing assisted under
NAHASDA.
§ 1000.154 How is the recipient to keep
criminal conviction information
confidential?
(a) The recipient will keep all the
criminal conviction record information
it receives from the official law enforcement agencies listed in § 1000.150
in files separate from all other housing
records.
(b) These criminal conviction records
will be kept under lock and key and be
under the custody and control of the
recipient’s housing executive director/
lead official and/or his designee for
such records.
(c) These criminal conviction records
may only be accessed with the written
permission of the Indian tribe’s or
TDHE’s housing executive director/lead
official and/or his designee and are
only to be used for the purposes stated
in section 208 of NAHASDA and these
regulations.

§ 1000.156 Is affordable housing developed, acquired, or assisted under
the IHBG program subject to limitations on cost or design standards?
Yes. Affordable housing must be of
moderate design. For these purposes,
moderate design is defined as housing
that is of a size and with amenities
consistent with unassisted housing offered for sale in the Indian tribe’s general geographic area to buyers who are
at or below the area median income.
The local determination of moderate
design applies to all housing assisted
under an affordable housing activity,
including development activities (e.g.,
acquisition, new construction, reconstruction, moderate or substantial rehabilitation of affordable housing and
homebuyer assistance) and model activities. Acquisition includes assistance to a family to buy housing. Units
with the same number of bedrooms
must be comparable with respect to
size, cost and amenities.
[66 FR 49790, Sept. 28, 2001]

§ 1000.158 How will a NAHASDA grant
recipient know that the housing assisted under the IHBG program
meets
the
requirements
of
§ 1000.156?
(a) A recipient must use one of the
methods specified in paragraph (b) or
(c) of this section to determine if an assisted housing project meets the moderate design requirements of § 1000.156.
For purposes of this requirement, a
project is one or more housing units, of
comparable size, cost, amenities and
design, developed with assistance provided by the Act.
(b) The recipient may adopt written
standards for its affordable housing
programs that reflect the requirement
specified in § 1000.156. The standards
must describe the type of housing, explain the basis for the standards, and
use similar housing in the Indian
tribe’s general geographic area. For
each affordable housing project, the recipient must maintain documentation
substantiating compliance with the
adopted housing standards. The standards and documentation substantiating
compliance for each activity must be
available for review by the general
public and, upon request, by HUD.
Prior to awarding a contract for the

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§ 1000.162

construction of housing or beginning
construction using its own workforce,
the recipient must complete a comparison of the cost of developing or acquiring/rehabilitating the affordable housing with the limits provided by the
TDC discussed in paragraph (c) of this
section and may not, without prior
HUD approval, exceed by more than 10
percent the TDC maximum cost for the
project. In developing standards under
this paragraph, the recipient must establish, maintain, and follow policies
that determine a local definition of
moderate design which considers:
(1) Gross area;
(2) Total cost to provide the housing;
(3) Environmental concerns and mitigations;
(4) Climate;
(5) Comparable housing in geographical area;
(6) Local codes, ordinances and standards;
(7) Cultural relevance in design;
(8) Design and construction features
that are reasonable, and necessary to
provide decent, safe, sanitary and affordable housing; and
(9) Design and construction features
that are accessible to persons with a
variety of disabilities.
(c) If the recipient has not adopted
housing standards specified in paragraph (b) of this section, Total Development Cost (TDC) limits published periodically by HUD establish the maximum amount of funds (from all
sources) that the recipient may use to
develop or acquire/rehabilitate affordable housing. The recipient must complete a comparison of the cost of developing or acquiring/rehabilitating the
affordable housing with the limits provided by the TDC and may not, without
prior HUD approval, exceed the TDC
maximum cost for the project.
[66 FR 49790, Sept. 28, 2001]

§ 1000.160 Are non-dwelling structures
developed, acquired or assisted
under the IHBG program subject to
limitations on cost or design standards?
Yes. Non-dwelling structures must be
of a design, size and with features or
amenities that are reasonable and necessary to accomplish the purpose intended by the structures. The purpose

of a non-dwelling structure must be to
support an affordable housing activity,
as defined by the Act.
[66 FR 49790, Sept. 28, 2001]

§ 1000.162 How will a recipient know
that non-dwelling structures assisted under the IHBG program
meet the requirements of 1000.160?
(a) The recipient must use one of the
methods described in paragraph (b) or
(c) of this section to determine if a
non-dwelling structure meets the limitation requirements of § 1000.160. If the
recipient develops, acquires, or rehabilitates a non-dwelling structure with
funds from NAHASDA and other
sources, then the cost limit standard
established under these regulations applies to the entire structure. If funds
are used from two different sources,
the standards of the funding source
with the more restrictive rules apply.
(b)(1) The recipient may adopt written standards for non-dwelling structures. The standards must describe the
type of structures and must clearly describe the criteria to be used to guide
the cost, size, design, features, amenities, performance or other factors. The
standards for such structures must be
able to support the reasonableness and
necessity for these factors and to clearly identify the affordable housing activity that is being provided.
(2) When the recipient applies a
standard to particular structures, it
must document the following: (i) Identification of targeted population to
benefit from the structures;
(ii) Identification of need or problem
to be solved;
(iii) Affordable housing activity provided or supported by the structures;
(iv) Alternatives considered;
(v) Provision for future growth and
change;
(vi) Cultural relevance of design;
(vii) Size and scope supported by population and need;
(viii) Design and construction features that are accessible to persons
with a variety of disabilities;
(ix) Cost; and
(x) Compatibility with community
infrastructure and services.
(c) If the recipient has not adopted
program standards specified in paragraph (b) of this section, then it must

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§ 1000.201

24 CFR Ch. IX (4–1–02 Edition)

demonstrate and document that the
non-dwelling structure is of a cost,
size, design and with amenities consistent with similarly designed and
constructed structures in the recipient’s general geographic area.
[66 FR 49790, Sept. 28, 2001]

Subpart C—Indian Housing Plan
(IHP)
§ 1000.201 How are funds made available under NAHASDA?
Every fiscal year HUD will make
grants under the IHBG program to recipients who have submitted to HUD
for that fiscal year an IHP in accordance with § 1000.220 to carry out affordable housing activities.
§ 1000.202

Who are eligible recipients?

Eligible recipients are Indian tribes,
or TDHEs when authorized by one or
more Indian tribes.
§ 1000.204 How does an Indian tribe
designate itself as recipient of the
grant?
(a) By resolution of the Indian tribe;
or
(b) When such authority has been delegated by an Indian tribe’s governing
body to a tribal committee(s), by resolution or other written form used by
such committee(s) to memorialize the
decisions of that body, if applicable.
§ 1000.206

How is a TDHE designated?

TDHEs under NAHASDA. Nothing in
this section shall affect the allocation
of funds otherwise due to an Indian
tribe under the formula.
§ 1000.210 What happens to existing
1937 Act units in those jurisdictions
for which Indian tribes do not or
cannot submit an IHP?
NAHASDA does not provide the statutory authority for HUD to grant
NAHASDA grant funds to an Indian
housing authority, Indian tribe or to a
default TDHE which cannot obtain a
tribal certification, if the requisite IHP
is not submitted by an Indian tribe or
is determined to be out of compliance
by HUD. There may be circumstances
where this may happen, and in those
cases, other methods of tribal, Federal,
or private market support may have to
be sought to maintain and operate
those 1937 Act units.
§ 1000.212 Is submission of an IHP required?
Yes. An Indian tribe or, with the consent of its Indian tribe(s), the TDHE,
must submit an IHP to HUD to receive
funding under NAHASDA, except as
provided
in
section
101(b)(2)
of
NAHASDA. If a TDHE has been designated by more than one Indian tribe,
the TDHE can submit a separate IHP
for each Indian tribe or it may submit
a single IHP based on the requirements
of § 1000.220 with the approval of the Indian tribes.

(a)(1) By resolution of the Indian
tribe or Indian tribes to be served; or
(2) When such authority has been delegated by an Indian tribe’s governing
body to a tribal committee(s), by resolution or other written form used by
such committee(s) to memorialize the
decisions of that body, if applicable.
(b) In the absence of a designation by
the Indian tribe, the default designation as provided in section 4(21) of
NAHASDA shall apply.

§ 1000.214 What is the deadline for
submission of an IHP?

§ 1000.208 What happens if an Indian
tribe had two IHAs as of September
30, 1996?

If the IHP is not initially sent by
July 1, the recipient will not be eligible
for IHBG funds for that fiscal year.
Any funds not obligated because an
IHP was not received before the deadline has passed shall be distributed by
formula in the following year.

Indian tribes which had established
and were operating two IHAs as of September 30, 1996, under the 1937 Act shall
be allowed to form and operate two

IHPs must be initially sent by the recipient to the Area ONAP no later than
July 1. Grant funds cannot be provided
until the plan is submitted and determined to be in compliance with section
102 of NAHASDA and funds are available.
§ 1000.216 What happens if the recipient does not submit the IHP to the
Area ONAP by July 1?

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Office of the Assistant Secretary, HUD

§ 1000.230

§ 1000.218 Who prepares and submits
an IHP?
An Indian tribe, or with the authorization of a Indian tribe, in accordance
with section 102(d) of NAHASDA a
TDHE may prepare and submit a plan
to HUD.
§ 1000.220 What are the minimum requirements for the IHP?
The minimum IHP requirements are
set forth in sections 102(b) and 102(c) of
NAHASDA. In addition, §§ 1000.56,
1000.108, 1000.120, 1000.134, 1000.142,
1000.238, 1000.328, and 1000.504 require or
permit additional items to be set forth
in the IHP for HUD determinations required by those sections. Recipients
are only required to provide IHPs that
contain these minimum elements in a
form prescribed by HUD. If a TDHE is
submitting a single IHP that covers
two or more Indian tribes, the IHP
must contain a separate certification
in accordance with section 102(d) of
NAHASDA and IHP Tables for each Indian tribe when requested by such Indian tribes. However, Indian tribes are
encouraged to perform comprehensive
housing needs assessments and develop
comprehensive IHPs and not limit
their planning process to only those
housing efforts funded by NAHASDA.
An IHP should be locally driven.
§ 1000.222 Are there separate IHP requirements for small Indian tribes
and small TDHEs?
No. HUD requirements for IHPs are
reasonable.
§ 1000.224 Can any part of the IHP be
waived?
Yes. HUD has general authority
under section 101(b)(2) of NAHASDA to
waive any IHP requirements when an
Indian tribe cannot comply with IHP
requirements due to circumstances beyond its control. The waiver authority
under section 101(b)(2) of NAHASDA
provides flexibility to address the
needs of every Indian tribe, including
small Indian tribes. The waiver may be
requested by the Indian tribe or its
TDHE (if such authority is delegated
by the Indian tribe).

§ 1000.226 Can the certification requirements of section 102(c)(5) of
NAHASDA be waived by HUD?
Yes. HUD may waive these certification requirements as provided in section 101(b)(2) of NAHASDA.
§ 1000.228 If HUD changes its IHP format will Indian tribes be involved?
Yes. HUD will first consult with Indian tribes before making any substantial changes to HUD’s IHP format.
§ 1000.230 What is the process for HUD
review of IHPs and IHP amendments?
HUD will conduct the IHP review in
the following manner:
(a) HUD will conduct a limited review of the IHP to ensure that its contents:
(1) Comply with the requirements of
section 102 of NAHASDA which outlines the IHP submission requirements;
(2) Are consistent with information
and data available to HUD;
(3) Are not prohibited by or inconsistent
with
any
provision
of
NAHASDA or other applicable law; and
(4) Include the appropriate certifications.
(b) If the IHP complies with the provisions of paragraphs (a)(1), (a)(2), and
(a)(3) of this section, HUD will notify
the recipient of IHP compliance within
60 days after receiving the IHP. If HUD
fails to notify the recipient, the IHP
shall be considered to be in compliance
with the requirements of section 102 of
NAHASDA and the IHP is approved.
(c) If the submitted IHP does not
comply with the provisions of paragraphs (a)(1), and (a)(3) of this section,
HUD will notify the recipient of the determination of non-compliance. HUD
will provide this notice no later than 60
days after receiving the IHP. This notice will set forth:
(1) The reasons for noncompliance;
(2) The modifications necessary for
the IHP to meet the submission requirements; and
(3) The date by which the revised IHP
must be submitted.
(d) If the recipient does not submit a
revised IHP by the date indicated in
the notice provided under paragraph (c)
of this section, the IHP will be determined by HUD to be in non-compliance

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§ 1000.232

24 CFR Ch. IX (4–1–02 Edition)

unless a waiver is requested and approved under section 101(b)(2) of
NAHASDA. If the IHP is determined by
HUD to be in non-compliance and no
waiver is granted, the recipient may
appeal this determination following
the appeal process in § 1000.234.
(e)(1) If the IHP does not contain the
certifications identified in paragraph
(a)(4) of this section, the recipient will
be notified within 60 days of submission of the IHP that the plan is incomplete. The notification will include a
date by which the certification must be
submitted.
(2) If the recipient has not complied
or cannot comply with the certification requirements due to circumstances beyond the control of the
Indian tribe(s), within the timeframe
established, the recipient can request a
waiver in accordance with section
101(b)(2) of NAHASDA. If the waiver is
approved, the recipient is eligible to receive its grant in accordance with any
conditions of the waiver.
§ 1000.232 Can an Indian
TDHE amend its IHP?

tribe

consideration of the determination.
The request shall include the justification for the reconsideration.
(b) Within 21 days of receiving the request, HUD shall reconsider its initial
determination and provide the recipient with written notice of its decision
to affirm, modify, or reverse its initial
determination. This notice will also
contain the reasons for HUD’s decision.
(c) The recipient may appeal any denial of reconsideration by filing an appeal with the Assistant Secretary within 21 days of receiving the denial. The
appeal shall set forth the reasons why
the recipient does not agree with
HUD’s decision and include justification for the reconsideration.
(d) Within 21 days of receipt of the
appeal, the Assistant Secretary shall
review the recipient’s appeal and act
on the appeal. The Assistant Secretary
will provide written notice to the recipient setting forth the reasons for
the decision. The Assistant Secretary’s
decision constitutes final agency action.

or

Yes. Section 103(c) of NAHASDA specifically provides that a recipient may
submit modifications or revisions of its
IHP to HUD. Unless the initial IHP certification provided by an Indian tribe
allowed for the submission of IHP
amendments without further tribal
certifications, a tribal certification
must accompany submission of IHP
amendments by a TDHE to HUD.
HUD’s review of an amendment and determination of compliance will be limited to modifications of an IHP which
adds new activities or involve a decrease in the amount of funds provided
to protect and maintain the viability
of housing assisted under the 1937 Act.
HUD will consider these modifications
to the IHP in accordance with § 1000.230.
HUD will act on amended IHPs within
30 days.
§ 1000.234 Can HUD’s determination
regarding the non-compliance of an
IHP or a modification to an IHP be
appealed?
(a) Yes. Within 30 days of receiving
HUD’s disapproval of an IHP or of a
modification to an IHP, the recipient
may submit a written request for re-

§ 1000.236 What are eligible administrative and planning expenses?
(a) Eligible administrative and planning expenses of the IHBG program include, but are not limited to:
(1) Costs of overall program and/or
administrative management;
(2) Coordination monitoring and evaluation;
(3) Preparation of the IHP including
data collection and transition costs;
(4) Preparation of the annual performance report; and
(5) Challenge to and collection of
data for purposes of challenging the
formula.
(b) Staff and overhead costs directly
related to carrying out affordable housing activities can be determined to be
eligible costs of the affordable housing
activity or considered administration
or planning at the discretion of the recipient.
§ 1000.238 What percentage of the
IHBG funds can be used for administrative and planning expenses?
The recipient can use up to 20 percent of its annual grant amount for administration and planning. The recipient shall identify the percentage of

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Office of the Assistant Secretary, HUD

§ 1000.302

grant funds which will be used in the
IHP. HUD approval is required if a
higher percentage is requested by the
recipient. When HUD approval is required, HUD must take into consideration any cost of preparing the IHP,
challenges to and collection of data,
the recipient’s grant amount, approved
cost allocation plans, and any other
relevant information with special consideration given to the circumstances
of recipients receiving minimal funding.
§ 1000.240 When is a local cooperation
agreement required for affordable
housing activities?
The requirement for a local cooperation agreement applies only to rental
and
lease-purchase
homeownership
units assisted with IHBG funds which
are owned by the Indian tribe or TDHE.
§ 1000.242 When does the requirement
for exemption from taxation apply
to affordable housing activities?
The requirement for exemption from
taxation applies only to rental and
lease-purchase homeownership units
assisted with IHBG funds which are
owned by the Indian tribe or TDHE.

Subpart D—Allocation Formula
§ 1000.301 What is the purpose of the
IHBG formula?
The IHBG formula is used to allocate
equitably and fairly funds made available through NAHASDA among eligible
Indian tribes. A TDHE may be a recipient on behalf of an Indian tribe.
§ 1000.302 What are the definitions applicable for the IHBG formula?
Allowable Expense Level (AEL) factor.
In rental projects, AEL is the per-unit
per-month dollar amount of expenses
which was used to compute the amount
of operating subsidy used prior to October 1, 1997 for the Low Rent units developed under the 1937 Act. The ‘‘AEL
factor’’ is the relative difference between a local area AEL and the national weighted average for AEL.
Date of Full Availability (DOFA)
means the last day of the month in
which substantially all the units in a
housing development are available for
occupancy.

Fair Market Rent (FMR) factors are
gross rent estimates; they include shelter rent plus the cost of all utilities,
except telephones. HUD estimates
FMRs on an annual basis for 354 metropolitan FMR areas and 2,355 non-metropolitan county FMR areas. The
‘‘FMR factor’’ is the relative difference
between a local area FMR and the national weighted average for FMR.
Formula Annual Income. For purposes
of the IHBG formula, annual income is
a household’s total income as currently
defined by the U.S. Census Bureau.
Formula area. (1) Formula area is the
geographic area over which an Indian
tribe could exercise court jurisdiction
or is providing substantial housing
services and, where applicable, the Indian tribe or TDHE has agreed to provide housing services pursuant to a
Memorandum of Agreement with the
governing entity or entities (including
Indian tribes) of the area, including but
not limited to:
(i) A reservation;
(ii) Trust land;
(iii) Alaska Native Village Statistical Area;
(iv) Alaska Native Claims Settlement
Act Corporation Service Area;
(v) Department of the Interior NearReservation Service Area;
(vi) Former Indian Reservation Areas
in Oklahoma as defined by the Census
as Tribal Jurisdictional Statistical
Area;
(vii) Congressionally Mandated Service Area; and
(viii) State legislatively defined Tribal Areas as defined by the Census as
Tribal Designated Statistical Areas.
(2) For additional areas beyond those
identified in the above list of eight, the
Indian tribe must submit on the Formula Response Form the area that it
wishes to include in its Formula Area
and what previous and planned investment it has made in the area. HUD will
review this submission and determine
whether or not to include this area.
HUD will make its judgment using as
its guide whether this addition is fair
and equitable for all Indian tribes in
the formula.
(3) In some cases the population data
for an Indian tribe within its formula
area is greater than its tribal enrollment. In general, for those cases to

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§ 1000.304

24 CFR Ch. IX (4–1–02 Edition)

maintain fairness for all Indian tribes,
the population data will not be allowed
to exceed twice an Indian tribe’s enrolled population. However, an Indian
tribe subject to this cap may receive an
allocation based on more than twice its
total enrollment if it can show that it
is providing housing assistance to substantially more non-member Indians
and Alaska Natives who are members
of another Federally recognized Indian
tribe than it is to members.
(4) In cases where an Indian tribe is
seeking to receive an allocation more
than twice its total enrollment, the
tribal enrollment multiplier will be determined by the total number of Indians and Alaska Natives the Indian
tribe is providing housing assistance
(on July 30 of the year before funding is
sought) divided by the number of members the Indian tribe is providing housing assistance. For example, an Indian
tribe which provides housing to 300 Indians and Alaska Natives, of which 100
are members, would then be able to receive an allocation for up to three
times its tribal enrollment if the Indian and Alaska Native population in
the area is three or more times the
tribal enrollment.
Formula Median Income. For purposes
of the formula median income is determined in accordance with section 567 of
the Housing and Community Development Act of 1987 (42 U.S.C. 1437a note).
Formula Response Form is the form recipients use to report changes to their
Formula Current Assisted stock, formula area, and other formula related
information before each year’s formula
allocation.
Indian Housing Authority (IHA) financed means a homeownership program where title rests with the homebuyer and a security interest rests with
the IHA.
Mutual Help Occupancy Agreement
(MHOA) means a lease with option to
purchase contract between an IHA and
a homebuyer under the 1937 Act.
Overcrowded means households with
more than 1.01 persons per room as defined by the U.S. Decennial Census.
Section 8 means the making of housing assistance payments to eligible
families leasing existing housing pursuant to the provisions of the 1937 Act.

Section 8 unit means the contract
annualized housing assistance payments (certificates, vouchers, and
project based) under the Section 8 program.
Total Development Cost (TDC) is the
sum of all costs for a project including
all undertakings necessary for administration, planning, site acquisition,
demolition, construction or equipment
and financing (including payment of
carrying charges) and for otherwise
carrying out the development of the
project, excluding off site water and
sewer.
Total
Development
Cost
amounts will be based on a moderately
designed house and will be determined
by averaging the current construction
costs as listed in not less than two nationally recognized residential construction cost indices.
Without kitchen or plumbing means, as
defined by the U.S. Decennial Census,
an occupied house without one or more
of the following items:
(1) Hot and cold piped water;
(2) A flush toilet;
(3) A bathtub or shower;
(4) A sink with piped water;
(5) A range or cookstove; or
(6) A refrigerator.
§ 1000.304 May the IHBG formula be
modified?
Yes, as long as any modification does
not conflict with the requirements of
NAHASDA.
§ 1000.306 How can the IHBG formula
be modified?
(a) The IHBG formula can be modified upon development of a set of measurable and verifiable data directly related to Indian and Alaska Native
housing need. Any data set developed
shall be compiled with the consultation
and involvement of Indian tribes and
examined and/or implemented not later
than 5 years from the date of issuance
of these regulations and periodically
thereafter.
(b) Furthermore, the IHBG formula
shall be reviewed within five years to
determine if subsidy is needed to operate and maintain NAHASDA units or
any other changes are needed in respect to funding under the Formula
Current Assisted Stock component of
the formula.

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§ 1000.318

(c) During the five year review of
housing stock for formula purposes,
the Section 8 units shall be reduced by
the same percentage as the current assisted rental stock has diminished
since September 30, 1999.
§ 1000.308 Who can make modifications to the IHBG formula?
HUD can make modifications in accordance with § 1000.304 and § 1000.306
provided that any changes proposed by
HUD are published and made available
for public comment in accordance with
applicable law before their implementation.
§ 1000.310 What are the components of
the IHBG formula?
The IHBG formula consists of two
components:
(a) Formula Current Assisted Housing Stock (FCAS); and
(b) Need.
§ 1000.312 What
stock?

is

current

assisted

Current assisted stock consists of
housing units owned or operated pursuant to an ACC. This includes all low
rent, Mutual Help, and Turnkey III
housing units under management as of
September 30, 1997, as indicated in the
Formula Response Form.
§ 1000.314 What is formula current assisted stock?
Formula current assisted stock is
current assisted stock as described in
§ 1000.312 plus 1937 Act units in the development pipeline when they become
owned or operated by the recipient and
are under management as indicated in
the Formula Response Form. Formula
current assisted stock also includes
Section 8 units when their current contract expires and the Indian tribe continues to manage the assistance in a
manner similar to the Section 8 program, as reported on the Formula Response Form.
§ 1000.316 How is the Formula Current
Assisted Stock (FCAS) Component
developed?
The Formula Current Assisted Stock
component consists of two elements.
They are:

(a) Operating subsidy. The operating
subsidy consists of three variables
which are:
(1) The number of low-rent FCAS
units multiplied by the FY 1996 national per unit subsidy (adjusted to full
funding level) multiplied by an adjustment factor for inflation;
(2) The number of Section 8 units
whose contract has expired but had
been under contract on September 30,
1997, multiplied by the FY 1996 national
per unit subsidy adjusted for inflation;
and
(3) The number of Mutual Help and
Turnkey III FCAS units multiplied by
the FY 1996 national per unit subsidy
(adjusted to full funding level) multiplied by an adjustment factor for inflation.
(b) Modernization allocation. Modernization allocation consists of the
number of Low Rent, Mutual Help, and
Turnkey III FCAS units multiplied by
the national per unit amount of allocation for FY 1996 modernization multiplied by an adjustment factor for inflation.
§ 1000.317 Who is the recipient for
funds for current assisted stock
which is owned by state-created Regional Native Housing Authorities
in Alaska?
If housing units developed under the
1937 Act are owned by a state-created
Regional Native Housing Authority in
Alaska, and are not located on an Indian reservation, then the recipient for
funds allocated for the current assisted
stock portion of NAHASDA funds for
the units is the regional Indian tribe.
§ 1000.318 When do units under Formula Current Assisted Stock cease
to be counted or expire from the inventory used for the formula?
(a) Mutual Help and Turnkey III
units shall no longer be considered Formula Current Assisted Stock when the
Indian tribe, TDHE, or IHA no longer
has the legal right to own, operate, or
maintain the unit, whether such right
is lost by conveyance, demolition, or
otherwise, provided that:
(1) Conveyance of each Mutual Help
or Turnkey III unit occurs as soon as
practicable after a unit becomes eligible for conveyance by the terms of the
MHOA; and

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§ 1000.320

24 CFR Ch. IX (4–1–02 Edition)

(2) The Indian tribe, TDHE, or IHA
actively enforce strict compliance by
the homebuyer with the terms and conditions of the MHOA, including the requirements for full and timely payment.
(b) Rental units shall continue to be
included for formula purposes as long
as they continue to be operated as low
income rental units by the Indian
tribe, TDHE, or IHA.
(c) Expired contract Section 8 units
shall continue as rental units and be
included in the formula as long as they
are operated as low income rental units
as included in the Indian tribe’s or
TDHE’s Formula Response Form.

assisted stock and units developed
under NAHASDA weighted at 15 percent;
(d) AIAN households with annual income less than or equal to 30 percent of
formula median income weighted at 13
percent;
(e) AIAN households with annual income between 30 percent and 50 percent
of formula median income weighted at
7 percent;
(f) AIAN households with annual income between 50 percent and 80 percent
of formula median income weighted at
7 percent;
(g) AIAN persons weighted at 11 percent.

§ 1000.320 How is Formula Current Assisted Stock adjusted for local area
costs?

§ 1000.325 How is the need component
adjusted for local area costs?

There are two adjustment factors
that are used to adjust the allocation
of funds for the Current Assisted Stock
portion of the formula. They are:
(a) Operating Subsidy as adjusted by
the greater of the AEL factor or FMR
factor (AELFMR); and
(b) Modernization as adjusted by
TDC.
§ 1000.322 Are IHA financed units included in the determination of Formula Current Assisted Stock?
No. If these units are not owned or
operated at the time (September 30,
1997) pursuant to an ACC then they are
not included in the determination of
Formula Current Assisted Stock.
§ 1000.324 How is the need component
developed?
After determining the FCAS allocation, remaining funds are allocated by
need component. The need component
consists of seven criteria. They are:
(a) American Indian and Alaskan Native (AIAN) Households with housing
cost burden greater than 50 percent of
formula annual income weighted at 22
percent;
(b) AIAN Households which are overcrowded or without kitchen or plumbing weighted at 25 percent;
(c) Housing Shortage which is the
number of AIAN households with an
annual income less than or equal to 80
percent of formula median income reduced by the combination of current

The need component is adjusted by
the TDC.
§ 1000.326 What if a formula area is
served by more than one Indian
tribe?
(a) If an Indian tribe’s formula area
overlaps with the formula area of one
or more other Indian tribes, the funds
allocated to that Indian tribe for the
geographic area in which the formula
areas overlap will be divided based on:
(1) The Indian tribe’s proportional
share of the population in the overlapping geographic area; and
(2) The Indian tribe’s commitment to
serve that proportional share of the
population in such geographic area.
(3) In cases where a State recognized
Indian tribe’s formula area overlaps
with a Federally recognized Indian
tribe, the Federally recognized Indian
tribe receives the allocation for the
overlapping area.
(b) Tribal membership in the geographic area (not to include dually enrolled tribal members) will be based on
data that all Indian tribes involved
agree to use. Suggested data sources
include tribal enrollment lists, Indian
Health Service User Data, and Bureau
of Indian Affairs data.
(c) If the Indian tribes involved cannot agree on what data source to use,
HUD will make the decision on what
data will be used to divide the funds between the Indian tribes by August 1.

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Office of the Assistant Secretary, HUD

§ 1000.336

§ 1000.327 What is the order of preference for allocating the IHBG formula needs data for Indian tribes in
Alaska not located on reservations
due to the unique circumstances in
Alaska?
(a) Data in areas without reservations. The data on population and
housing within an Alaska Native Village is credited to the Alaska Native
Village. Accordingly, the village corporation for the Alaska Native Village
has no needs data and no formula allocation. The data on population and
housing outside the Alaska Native Village is credited to the regional Indian
tribe, and if there is no regional Indian
tribe, the data will be credited to the
regional corporation.
(b) Deadline for notification on
whether an IHP will be submitted. By
September 15 of each year, each Indian
tribe in Alaska not located on a reservation, including each Alaska Native
village, regional Indian tribe, and regional corporation, or its TDHE must
notify HUD in writing whether it or its
TDHE intends to submit an IHP. If an
Alaska Native village notifies HUD
that it does not intend either to submit
an IHP or to designate a TDHE to do
so, or if HUD receives no response from
the Alaska Native village or its TDHE,
the formula data which would have
been credited to the Alaska Native village will be credited to the regional Indian tribe, or if there is no regional Indian tribe, to the regional corporation.
§ 1000.328 What
is
the
minimum
amount an Indian tribe can receive
under the need component of the
formula?
In the first year of NAHASDA participation, an Indian tribe whose allocation is less than $50,000 under the
need component of the formula shall
have its need component of the grant
adjusted to $50,000. An Indian tribe’s
IHP shall contain a certification of the
need for the $50,000 funding. In subsequent years, but not to extend beyond
Federal Fiscal Year 2002, an Indian
tribe whose allocation is less than
$25,000 under the need component of
the formula shall have its need component of the grant adjusted to $25,000.
The need for § 1000.328 will be reviewed
in accordance with § 1000.306.

§ 1000.330 What are data sources for
the need variables?
The sources of data for the need variables shall be data available that is
collected in a uniform manner that can
be confirmed and verified for all AIAN
households and persons living in an
identified area. Initially, the data used
are U.S. Decennial Census data.
§ 1000.332 Will data used by HUD to
determine an Indian tribe’s or
TDHE’s formula allocation be provided to the Indian tribe or TDHE
before the allocation?
Yes. HUD shall provide notice to the
Indian tribe or TDHE of the data to be
used for the formula and projected allocation amount by August 1.
§ 1000.334 May Indian tribes, TDHEs,
or HUD challenge the data from the
U.S. Decennial Census or provide
an alternative source of data?
Yes. Provided that the data are gathered, evaluated, and presented in a
manner acceptable to HUD and that
the standards for acceptability are consistently applied throughout the Country.
§ 1000.336 How may an Indian tribe,
TDHE, or HUD challenge data?
(a) An Indian tribe, TDHE, or HUD
may challenge data used in the IHBG
formula. The challenge and collection
of data for this purpose is an allowable
cost for IHBG funds.
(b) An Indian tribe or TDHE that has
data in its possession that it contends
are more accurate than data contained
in the U.S. Decennial Census, and the
data were collected in a manner acceptable to HUD, may submit the data
and proper documentation to HUD. Beginning with the Fiscal Year 1999 allocation, in order for the challenge to be
considered for the upcoming Fiscal
Year allocation, documentation must
be submitted by June 15. HUD shall respond to such data submittal not later
than 45 days after receipt of the data
and either approve or challenge the validity of such data. Pursuant to HUD’s
action, the following shall apply:

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§ 1000.340

24 CFR Ch. IX (4–1–02 Edition)

(1) In the event HUD challenges the
validity of the submitted data, the Indian tribe or TDHE and HUD shall attempt in good faith to resolve any discrepancies so that such data may be included in formula allocation. Should
the Indian tribe or TDHE and HUD be
unable to resolve any discrepancy by
the date of formula allocation, the dispute shall be carried forward to the
next funding year and resolved in accordance with the dispute resolution
procedures set forth in this part for
model housing activities (§ 1000.118).
(2) Pursuant to resolution of the dispute:
(i) If the Indian tribe or TDHE prevails, an adjustment to the Indian
tribe’s or TDHE’s subsequent allocation for the subsequent year shall be
made retroactive to include only the
disputed Fiscal Year(s); or
(ii) If HUD prevails, no further action
shall be required.
(c) In the event HUD questions that
the data contained in the formula does
not accurately represent the Indian
tribe’s need, HUD shall request the Indian tribe to submit supporting documentation to justify the data and provide a commitment to serve the population indicated in the geographic area.
§ 1000.340 What if an Indian tribe is allocated less funding under the
block grant formula than it received in Fiscal Year 1996 for operating subsidy and modernization?
If an Indian tribe is allocated less
funding under the formula than an IHA
received on its behalf in Fiscal Year
1996 for operating subsidy and modernization, its grant is increased to the
amount received in Fiscal Year 1996 for
operating subsidy and modernization.
The remaining grants are adjusted to
keep the allocation within available
appropriations.

Subpart E—Federal Guarantees
for Financing of Tribal Housing
Activities
§ 1000.401 What
terms
are
throughout this subpart?
As used throughout title
NAHASDA and in this subpart:

used
VI

of

Applicant means the entity that requests a HUD guarantee under the provisions of this subpart.
Borrower means an Indian tribe or
TDHE that receives funds in the form
of a loan with the obligation to repay
in full, with interest, and has executed
notes or other obligations that evidence that transaction.
Issuer means an Indian tribe or TDHE
that issues or executes notes or other
obligations. An issuer can also be a
borrower.
§ 1000.402 Are State recognized Indian
tribes eligible for guarantees under
title VI of NAHASDA?
Those State recognized Indian tribes
that meet the definition set forth in
section 4(12)(C) of NAHASDA are eligible for guarantees under title VI of
NAHASDA.
§ 1000.404 What lenders are eligible for
participation?
Eligible lenders are those approved
under and meeting the qualifications
established in this subpart, except that
loans otherwise insured or guaranteed
by an agency of the United States, or
made by an organization of Indians
from amounts borrowed from the
United States, shall not be eligible for
guarantee under this part. The following lenders are deemed to be eligible under this subpart:
(a) Any mortgagee approved by HUD
for participation in the single family
mortgage insurance program under
title II of the National Housing Act;
(b) Any lender whose housing loans
under chapter 37 of title 38, United
States Code, are automatically guaranteed pursuant to section 1802(d) of such
title;
(c) Any lender approved by the Department of Agriculture to make guaranteed loans for single family housing
under the Housing Act of 1949;
(d) Any other lender that is supervised, approved, regulated, or insured
by any agency of the United States;
and
(e) Any other lender approved by the
Secretary.

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§ 1000.420

§ 1000.406 What constitutes tribal approval to issue notes or other obligations under title VI of NAHASDA?
Tribal approval is evidenced by a
written tribal resolution that authorizes the issuance of notes or obligations by the Indian tribe or a TDHE on
behalf of the Indian tribe.
§ 1000.408 How does an Indian tribe or
TDHE show that it has made efforts
to obtain financing without a guarantee and cannot complete such financing in a timely manner?
The Indian tribe or TDHE shall submit a certification that states that the
Indian tribe has attempted to obtain financing and cannot complete such financing consistent with the timely
execution of the program plans without
such guarantee. Written documentation shall be maintained by the Indian
tribe or TDHE to support the certification.
§ 1000.410 What conditions shall HUD
prescribe when providing a guarantee for notes or other obligations
issued by an Indian tribe?
HUD shall provide that:
(a) Any loan, note or other obligation
guaranteed under title VI of NAHASDA
may be sold or assigned by the lender
to any financial institution that is subject to examination and supervision by
an agency of the Federal government,
any State, or the District of Columbia
without destroying or otherwise negatively affecting the guarantee; and
(b) Indian tribes and housing entities
are encouraged to explore creative financing mechanisms and in so doing
shall not be limited in obtaining a
guarantee. These creative financing
mechanisms include but are not limited to:
(1) Borrowing from private or public
sources or partnerships;
(2) Issuing tax exempt and taxable
bonds where permitted; and
(3) Establishing consortiums or
trusts for borrowing or lending, or for
pooling loans.
(c) The repayment period may exceed
twenty years and the length of the repayment period cannot be the sole
basis for HUD disapproval; and
(d) Lender and issuer/borrower must
certify that they acknowledge and

agree to comply with all applicable
tribal laws.
§ 1000.412 Can an issuer obtain a guarantee for more than one note or
other obligation at a time?
Yes. To obtain multiple guarantees,
the issuer shall demonstrate that:
(a) The issuer will not exceed a total
for all notes or other obligations in an
amount equal to five times its grant
amount, excluding any amount no
longer owed on existing notes or other
obligations; and
(b) Issuance of additional notes or
other obligations is within the financial capacity of the issuer.
§ 1000.414 How is an issuer’s financial
capacity demonstrated?
An issuer must demonstrate its financial capacity to:
(a) Meet its obligations; and
(b) Protect and maintain the viability of housing developed or operated
pursuant to the 1937 Act.
§ 1000.416 What is a repayment contract in a form acceptable to HUD?
(a) The Secretary’s signature on a
contract shall signify HUD’s acceptance of the form, terms and conditions
of the contract.
(b) In loans under title VI of
NAHASDA, involving a contract between an issuer and a lender other than
HUD, HUD’s approval of the loan documents and guarantee of the loan shall
be deemed to be HUD’s acceptance of
the sufficiency of the security furnished. No other security can or will be
required by HUD at a later date.
§ 1000.418 Can grant funds be used to
pay costs incurred when issuing
notes or other obligations?
Yes. Other costs that can be paid
using grant funds include but are not
limited to the costs of servicing and
trust administration, and other costs
associated with financing of debt obligations.
§ 1000.420 May grants made by HUD
under section 603 of NAHASDA be
used to pay net interest costs incurred when issuing notes or other
obligations?
Yes. Other costs that can be paid
using grant funds include but are not

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§ 1000.422

24 CFR Ch. IX (4–1–02 Edition)

limited to the costs of servicing and
trust administration, and other costs
associated with financing of debt obligations, not to exceed 30 percent of the
net interest cost.
§ 1000.422 What are the procedures for
applying for loan guarantees under
title VI of NAHASDA?
(a) The borrower applies to the lender
for a loan using a guarantee application form prescribed by HUD.
(b) The lender provides the loan application to HUD to determine if funds
are available for the guarantee. HUD
will reserve these funds for a period of
90 days if the funds are available and
the applicant is otherwise eligible
under this subpart. HUD may extend
this reservation period for an extra 90
days if additional documentation is
necessary.
(c) The borrower and lender negotiate
the terms and conditions of the loan in
consultation with HUD.
(d) The borrower and lender execute
documents.
(e) The lender formally applies for
the guarantee.
(f) HUD reviews and provides a written decision on the guarantee.
§ 1000.424 What are the application requirements for guarantee assistance under title VI of NAHASDA?
The application for a guarantee must
include the following:
(a) An identification of each of the
activities to be carried out with the
guaranteed funds and a description of
how each activity qualifies as an affordable housing activity as defined in
section 202 of NAHASDA.
(b) A schedule for the repayment of
the notes or other obligations to be
guaranteed that identifies the sources
of repayment, together with a statement identifying the entity that will
act as the borrower.
(c) A copy of the executed loan documents, if applicable, including, but not
limited to, any contract or agreement
between the borrower and the lender.
(d) Certifications by the borrower
that:
(1) The borrower possesses the legal
authority to pledge and that it will, if
approved, make the pledge of grants required
by
section
602(a)(2)
of
NAHASDA.

(2) The borrower has made efforts to
obtain financing for the activities described in the application without use
of the guarantee; the borrower will
maintain documentation of such efforts for the term of the guarantee; and
the borrower cannot complete such financing consistent with the timely
execution of the program plans without
such guarantee.
(3) It possesses the legal authority to
borrow or issue obligations and to use
the guaranteed funds in accordance
with the requirements of this subpart.
(4) Its governing body has duly adopted or passed as an official act a resolution, motion, or similar official action
that:
(i) Identifies the official representative of the borrower, and directs and
authorizes that person to provide such
additional information as may be required; and
(ii) Authorizes such official representative to issue the obligation or
to execute the loan or other documents, as applicable.
(5) The borrower has complied with
section 602(a) of NAHASDA.
(6) The borrower will comply with
the requirements described in subpart
A of this part and other applicable
laws.
§ 1000.426 How does HUD review a
guarantee application?
The procedure for review of a guarantee application includes the following steps:
(a) HUD will review the application
for compliance with title VI of
NAHASDA and these implementing
regulations.
(b) HUD will accept the certifications
submitted with the application. HUD
may, however, consider relevant information that challenges the certifications and require additional information or assurances from the applicant
as warranted by such information.
§ 1000.428 For what reasons may HUD
disapprove an application or approve an application for an amount
less than that requested?
HUD may disapprove an application
or approve a lesser amount for any of
the following reasons:
(a) HUD determines that the guarantee constitutes an unacceptable risk.

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§ 1000.434

Factors that will be considered in assessing financial risk shall include, but
not be limited to, the following:
(1) The ratio of the expected annual
debt service requirements to the expected available annual grant amount,
taking into consideration the obligations of the borrower under the provisions of section 203(b) of NAHASDA;
(2) Evidence that the borrower will
not continue to receive grant assistance under this part during the proposed repayment period;
(3) The borrower’s inability to furnish adequate security pursuant to section 602(a) of NAHASDA; and
(4) The amount of program income
the proposed activities are reasonably
estimated to contribute toward repayment of the guaranteed loan or other
obligations.
(b) The loan or other obligation for
which the guarantee is requested exceeds any of the limitations specified
in sections 601(d) or section 605(d) of
NAHASDA.
(c) Funds are not available in the
amount requested.
(d) Evidence that the performance of
the borrower under this part has been
determined to be unacceptable pursuant to the requirements of subpart F of
this part, and that the borrower has
failed to take reasonable steps to correct performance.
(e) The activities to be undertaken
are not eligible under section 202 of
NAHASDA.
(f) The loan or other obligation documents for which a guarantee is requested do not meet the requirements
of this subpart.
§ 1000.430 When will HUD issue notice
to the applicant if the application is
approved at the requested or reduced amount?
(a) HUD shall make every effort to
approve a guarantee within 30 days of
receipt of a completed application including executed documents and, if unable to do so, will notify the applicant
within the 30 day timeframe of the
need for additional time and/or if additional information is required.
(b) HUD shall notify the applicant in
writing that the guarantee has either
been approved, reduced, or disapproved.
If the request is reduced or disapproved, the applicant will be in-

formed of the specific reasons for reduction or disapproval.
(c) HUD shall issue a certificate to
guarantee the debt obligation of the
issuer subject to compliance with
NAHASDA including but not limited to
sections 105, 601(a), and 602(c) of
NAHASDA, and such other reasonable
conditions as HUD may specify in the
commitment documents in a particular
case.
§ 1000.432 Can an amendment to an
approved guarantee be made?
(a) Yes. An amendment to an approved guarantee can occur if an applicant wishes to allow a borrower/issuer
to carry out an activity not described
in the loan or other obligation documents, or substantially to change the
purpose, scope, location, or beneficiaries of an activity.
(b) Any changes to an approved guarantee must be approved by HUD.
§ 1000.434 How will HUD allocate the
availability of loan guarantee assistance?
(a) Each fiscal year HUD may allocate a percentage of the total available
loan guarantee assistance to each Area
ONAP equal to the percentage of the
total NAHASDA grant funds allocated
to the Indian tribes in the geographic
area of operation of that office.
(b) These allocated amounts shall remain exclusively available for loan
guarantee assistance for Indian tribes
or TDHEs in the area of operation of
that office until committed by HUD for
loan guarantees or until the end of the
second quarter of the fiscal year. At
the beginning of the third quarter of
the fiscal year, any residual loan guarantee commitment amount shall be
made available to guarantee loans for
Indian tribes or TDHEs regardless of
their location. Applications for residual loan guarantee money must be submitted on or after April 1.
(c) In approving applications for loan
guarantee assistance, HUD shall seek
to maximize the availability of such
assistance to all interested Indian
tribes or TDHEs. HUD may limit the
proportional share approved to any one

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§ 1000.436

24 CFR Ch. IX (4–1–02 Edition)

Indian tribe or TDHE to its proportional share of the block grant allocation based upon the annual plan submitted by the Indian tribe or TDHE indicating intent to participate in the
loan guarantee allocation process.
§ 1000.436 How will HUD monitor the
use of funds guaranteed under this
subpart?
HUD will monitor the use of funds
guaranteed under this subpart as set
forth in section 403 of NAHASDA, and
the lender is responsible for monitoring
performance with the documents.

Subpart F—Recipient Monitoring,
Oversight and Accountability
§ 1000.501 Who is involved in monitoring activities under NAHASDA?
The recipient, the grant beneficiary
and HUD are involved in monitoring
activities under NAHASDA.
§ 1000.502 What are the monitoring responsibilities of the recipient, the
grant beneficiary and HUD under
NAHASDA?
(a) The recipient is responsible for
monitoring grant activities, ensuring
compliance with applicable Federal requirements and monitoring performance goals under the IHP. The recipient is responsible for preparing at least
annually: a compliance assessment in
accordance with section 403(b) of
NAHASDA; a performance report covering the assessment of program
progress and goal attainment under the
IHP; and an audit in accordance with
the Single Audit Act, as applicable.
The recipient’s monitoring should also
include an evaluation of the recipient’s
performance in accordance with performance objectives and measures. At
the request of a recipient, other Indian
tribes and/or TDHEs may provide assistance to aid the recipient in meeting
its performance goals or compliance requirements under NAHASDA.
(b) Where the recipient is a TDHE,
the grant beneficiary (Indian tribe) is
responsible
for
monitoring
programmatic and compliance requirements of the IHP and NAHASDA by requiring the TDHE to prepare periodic
progress reports including the annual

compliance assessment, performance
and audit reports.
(c) HUD is responsible for reviewing
the recipient as set forth in § 1000.520.
(d) HUD monitoring will consist of
on-site as well as off-site review of
records, reports and audits. To the extent funding is available, HUD or its
designee will provide technical assistance and training, or funds to the recipient to obtain technical assistance
and training. In the absence of funds,
HUD shall make best efforts to provide
technical assistance and training.
§ 1000.504 What are the recipient performance objectives?
Performance objectives are developed
by each recipient. Performance objectives are criteria by which the recipient will monitor and evaluate its performance. For example, if in the IHP
the recipient indicates it will build new
houses, the performance objective may
be the completion of the homes within
a certain time period and within a certain budgeted amount.
§ 1000.506 If the TDHE is the recipient,
must it submit its monitoring evaluation/results to the Indian tribe?
Yes. The Indian tribe as the grant
beneficiary must receive a copy of the
monitoring evaluation/results so that
it can fully carry out its oversight responsibilities under NAHASDA.
§ 1000.508 If the recipient monitoring
identifies programmatic concerns,
what happens?
If the recipient’s monitoring activities identify areas of concerns, the recipient will take corrective actions
which may include but are not limited
to one or more of the following actions:
(a) Depending upon the nature of the
concern, the recipient may obtain additional training or technical assistance
from HUD, other Indian tribes or
TDHEs, or other entities.
(b) The recipient may develop and/or
revise policies, or ensure that existing
policies are better enforced.
(c) The recipient may take appropriate administrative action to remedy
the situation.
(d) The recipient may refer the concern to an auditor or to HUD for additional corrective action.

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§ 1000.524

§ 1000.510 What happens if tribal monitoring identifies compliance concerns?
The Indian tribe shall have the responsibility to ensure that appropriate
corrective action is taken.
§ 1000.512 Are performance reports required?
Yes. An annual report shall be submitted by the recipient to HUD and the
Indian tribe being served in a format
acceptable by HUD. Annual performance reports shall contain:
(a) The information required by sections 403(b) and 404(b) of NAHASDA;
(b) Brief information on the following:
(1) A comparison of actual accomplishments to the objectives established for the period;
(2) The reasons for slippage if established objectives were not met; and
(3) Analysis and explanation of cost
overruns or high unit costs; and
(c) Any information regarding the recipient’s performance in accordance
with HUD’s performance measures, as
set forth in section § 1000.524.
§ 1000.514 When must the annual performance report be submitted?
The annual performance report must
be submitted within 60 days of the end
of the recipient’s program year. If a
justified request is submitted by the
recipient, the Area ONAP may extend
the due date for submission of the performance report.
§ 1000.516 What reporting period is
covered by the annual performance
report?
For the first annual performance report to be submitted under NAHASDA,
the period to be covered is October 1,
1997, through September 30, 1998. This
first report must be submitted by January 31, 1999. Subsequent annual performance reports must cover the period
that coincides with the recipient’s program year.
[64 FR 3015, Jan. 20, 1999]

§ 1000.518 When must a recipient obtain public comment on its annual
performance report?
The recipient must make its report
publicly available to tribal members,

non-Indians served under NAHASDA,
and other citizens in the Indian area,
in sufficient time to permit comment
before submission of the report to
HUD. The recipient determines the
manner and times for making the report available.
The recipient shall include a summary of any comments received by the
grant beneficiary or recipient from
tribal members, non-Indians served
under NAHASDA, and other citizens in
the Indian area.
§ 1000.520 What are the purposes of
HUD review?
At least annually, HUD will review
each recipient’s performance to determine whether the recipient:
(a) Has carried out its eligible activities in a timely manner, has carried
out its eligible activities and certifications in accordance with the requirements and the primary objective of
NAHASDA and with other applicable
laws and has a continuing capacity to
carry out those activities in a timely
manner;
(b) Has complied with the IHP of the
grant beneficiary; and
(c) Whether the performance reports
of the recipient are accurate.
§ 1000.521 After the receipt of the recipient’s performance report, how
long does HUD have to make recommendations under section 404(c)
of NAHASDA?
60 days.
§ 1000.522 How will HUD give notice of
on-site reviews?
HUD shall generally provide a 30 day
written notice of an impending on-site
review to the Indian tribe and TDHE.
Prior written notice will not be required in emergency situations. All notices shall state the general nature of
the review.
§ 1000.524 What are HUD’s performance measures for the review?
HUD has the authority to develop
performance measures which the recipient must meet as a condition for
compliance under NAHASDA. The performance measures are:
(a) Within 2 years of grant award
under NAHASDA, no less than 90 percent of the grant must be obligated.

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§ 1000.526

24 CFR Ch. IX (4–1–02 Edition)

(b) The recipient has complied with
the required certifications in its IHP
and all policies and the IHP have been
made available to the public.
(c) Fiscal audits have been conducted
on a timely basis and in accordance
with the requirements of the Single
Audit Act, as applicable. Any deficiencies identified in audit reports
have been addressed within the prescribed time period.
(d) Accurate annual performance reports were submitted to HUD within 60
days after the completion of the recipient’s program year.
(e) The recipient has met the IHP
goals and objectives in the 1-year plan
and demonstrated progress on the 5year plan goals and objectives.
(f) The recipient has substantially
complied with the requirements of 24
CFR part 1000 and all other applicable
Federal statutes and regulations.
§ 1000.526 What information will HUD
use for its review?
In reviewing each recipient’s performance, HUD may consider the following:
(a) The approved IHP and any amendments thereto;
(b) Reports prepared by the recipient;
(c) Records maintained by the recipient;
(d) Results of HUD’s monitoring of
the recipient’s performance, including
on-site evaluation of the quality of the
work performed;
(e) Audit reports;
(f) Records of drawdown(s) of grant
funds;
(g) Records of comments and complaints by citizens and organizations
within the Indian area;
(h) Litigation; and
(i) Any other reliable relevant information which relates to the performance measures under § 1000.524.
§ 1000.528 What are the procedures for
the recipient to comment on the result of HUD’s review when HUD
issues a report under section 405(b)
of NAHASDA?
HUD will issue a draft report to the
recipient and Indian tribe within thirty
(30) days of the completion of HUD’s review. The recipient will have at least
thirty (30) days to review and comment
on the draft report as well as provide

any additional information relating to
the draft report. HUD shall consider
the comments and any additional information provided by the recipient.
HUD may also revise the draft report
based on the comments and any additional information provided by the recipient. HUD shall make the recipient’s
comments and a final report readily
available to the recipient, grant beneficiary, and the public not later than
thirty (30) days after receipt of the recipient’s comments and additional information.
§ 1000.530 What corrective and remedial actions will HUD request or
recommend to address performance
problems prior to taking action
under § 1000.532 or § 1000.538?
(a) The following actions are designed, first, to prevent the continuance of the performance problem(s);
second, to mitigate any adverse effects
or consequences of the performance
problem(s); and third, to prevent a recurrence of the same or similar performance problem. The following actions, at least one of which must be
taken prior to a sanction under paragraph (b), may be taken by HUD singly
or in combination, as appropriate for
the circumstances:
(1) Issue a letter of warning advising
the recipient of the performance problem(s), describing the corrective actions that HUD believes should be
taken, establishing a completion date
for corrective actions, and notifying
the recipient that more serious actions
may be taken if the performance problem(s) is not corrected or is repeated;
(2) Request the recipient to submit
progress schedules for completing activities or complying with the requirements of this part;
(3) Recommend that the recipient
suspend, discontinue, or not incur costs
for the affected activity;
(4) Recommend that the recipient redirect funds from affected activities to
other eligible activities;
(5) Recommend that the recipient reimburse the recipient’s program account in the amount improperly expended; and
(6) Recommend that the recipient obtain appropriate technical assistance
using existing grant funds or other

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§ 1000.538

available resources to overcome the
performance problem(s).
(b) Failure of a recipient to address
performance problems specified in
paragraph (a) above may result in the
imposition of sanctions as prescribed in
§ 1000.532 (providing for adjustment, reduction, or withdrawal of future grant
funds, or other appropriate actions), or
§ 1000.538 (providing for termination, reduction, or limited availability of payments, or replacement of the TDHE).
§ 1000.532 What are the adjustments
HUD makes to a recipient’s future
year’s grant amount under section
405 of NAHASDA?
(a) HUD may, subject to the procedures in paragraph (b) below, make appropriate adjustments in the amount of
the annual grants under NAHASDA in
accordance with the findings of HUD
pursuant to reviews and audits under
section 405 of NAHASDA. HUD may adjust, reduce, or withdraw grant
amounts, or take other action as appropriate in accordance with the reviews and audits, except that grant
amounts already expended on affordable housing activities may not be recaptured or deducted from future assistance provided on behalf of an Indian tribe.
(b) Before undertaking any action in
accordance with paragraphs (a) and (c)
of this section, HUD will notify the recipient in writing of the actions it intends to take and provide the recipient
an opportunity for an informal meeting
to resolve the deficiency. In the event
the deficiency is not resolved, HUD
may take any of the actions available
under paragraphs (a) and (c) of this section. However, the recipient may request, within 30 days of notice of the
action, a hearing in accordance with
§ 1000.540. The amount in question shall
not be reallocated under the provisions
of § 1000.536, until 15 days after the
hearing has been held and HUD has
rendered a final decision.
(c) Absent circumstances beyond the
recipient’s control, when a recipient is
not complying significantly with a
major activity of its IHP, HUD shall
make appropriate adjustment, reduction, or withdrawal of some or all of
the recipient’s subsequent year grant
in accordance with this section.

§ 1000.534 What constitutes substantial
noncompliance?
HUD will review the circumstances of
each noncompliance with NAHASDA
and the regulations on a case-by-case
basis to determine if the noncompliance is substantial. This review is a
two step process. First, there must be a
noncompliance with NAHASDA or
these regulations. Second, the noncompliance must be substantial. A noncompliance is substantial if:
(a) The noncompliance has a material effect on the recipient meeting its
major goals and objectives as described
in its Indian Housing Plan;
(b) The noncompliance represents a
material pattern or practice of activities constituting willful noncompliance
with
a
particular
provision
of
NAHASDA or the regulations, even if a
single instance of noncompliance
would not be substantial;
(c) The noncompliance involves the
obligation or expenditure of a material
amount of the NAHASDA funds budgeted by the recipient for a material activity; or
(d) The noncompliance places the
housing program at substantial risk of
fraud, waste or abuse.
§ 1000.536 What happens to NAHASDA
grant funds adjusted, reduced,
withdrawn, or terminated under
§ 1000.532 or § 1000.538?
Such NAHASDA grant funds shall be
distributed by HUD in accordance with
the next NAHASDA formula allocation.
§ 1000.538 What remedies are available
for substantial noncompliance?
(a) If HUD finds after reasonable notice and opportunity for hearing that a
recipient has failed to comply substantially
with
any
provisions
of
NAHASDA, HUD shall:
(1)
Terminate
payments
under
NAHASDA to the recipient;
(2)
Reduce
payments
under
NAHASDA to the recipient by an
amount equal to the amount of such
payments that were not expended in
accordance with NAHASDA;
(3) Limit the availability of payments under NAHASDA to programs,
projects, or activities not affected by
the failure to comply; or

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§ 1000.540

24 CFR Ch. IX (4–1–02 Edition)

(4) In the case of noncompliance described in § 1000.542, provide a replacement TDHE for the recipient.
(b) HUD may, upon due notice, suspend payments at any time after the
issuance of the opportunity for hearing
pending such hearing and final decision, to the extent HUD determines
such action necessary to preclude the
further expenditure of funds for activities affected by such failure to comply.
(c) If HUD determines that the failure to comply substantially with the
provisions of NAHASDA is not a pattern or practice of activities constituting willful noncompliance, and is a
result of the limited capability or capacity of the recipient, HUD may provide technical assistance for the recipient (directly or indirectly) that is designed to increase the capability or capacity of the recipient to administer
assistance under NAHASDA in compliance with the requirements under
NAHASDA.
(d) In lieu of, or in addition to, any
action described in this section, if HUD
has reason to believe that the recipient
has failed to comply substantially with
any provisions of NAHASDA, HUD may
refer the matter to the Attorney General of the United States, with a recommendation that appropriate civil action be instituted.
§ 1000.540 What hearing procedures
will be used under NAHASDA?
The hearing procedures in 24 CFR
part 26 shall be used.
§ 1000.542 When may HUD require replacement of a recipient?
(a) In accordance with section 402 of
NAHASDA, as a condition of HUD
making a grant on behalf of an Indian
tribe, the Indian tribe shall agree that,
notwithstanding any other provisions
of law, HUD may, only in the circumstances discussed below, require
that a replacement TDHE serve as the
recipient for the Indian tribe.
(b) HUD may require a replacement
TDHE for an Indian tribe only upon a
determination by HUD on the record
after opportunity for hearing that the
recipient for the Indian tribe has engaged in a pattern or practice of activities that constitute substantial or will-

ful noncompliance with the requirements of NAHASDA.
§ 1000.544

What audits are required?

The recipient must comply with the
requirements of the Single Audit Act
and OMB Circular A–133 which require
annual audits of recipients that expend
Federal funds equal to or in excess of
an amount specified by the U.S. Office
of Management and Budget, which is
currently set at $300,000.
§ 1000.546 Are audit costs eligible program or administrative expenses?
Yes, audit costs are an eligible program or administrative expense. If the
Indian tribe is the recipient then program funds can be used to pay a prorated share of the tribal audit or financial review cost that is attributable to
NAHASDA funded activities. For a recipient not covered by the Single Audit
Act, but which chooses to obtain a
periodic financial review, the cost of
such a review would be an eligible program expense.
§ 1000.548 Must a copy of the recipient’s audit pursuant to the Single
Audit Act relating to NAHASDA activities be submitted to HUD?
Yes. A copy of the latest recipient
audit under the Single Audit Act relating to NAHASDA activities must be
submitted with the Annual Performance Report.
§ 1000.550 If the TDHE is the recipient,
does it have to submit a copy of its
audit to the Indian tribe?
Yes. The Indian tribe as the grant
beneficiary must receive a copy of the
audit report so that it can fully carry
out its oversight responsibilities with
NAHASDA.
§ 1000.552 How long must the recipient
maintain program records?
(a) This section applies to all financial and programmatic records, supporting documents, and statistical
records of the recipient which are required to be maintained by the statute,
regulation, or grant agreement.
(b) Except as otherwise provided
herein, records must be retained for
three years from the date the recipient

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Office of the Assistant Secretary, HUD

Pt. 1000, App. A

submits to HUD the annual performance report that covers the last expenditure of grant funds under a particular grant.
(c) If any litigation, claim, negotiation, audit or other action involving
the records has been started before the
expiration of the 3-year period, the
records must be retained until completion of the action and resolution of all
issues which arise from it, or until the
end of the regular 3-year period, whichever is later.
§ 1000.554 Which agencies have right
of access to the recipient’s records
relating to activities carried out
under NAHASDA?
(a) HUD and the Comptroller General
of the United States, and any of their
authorized representatives, shall have
the right of access to any pertinent
books, documents, papers, or other
records of recipients which are pertinent to NAHASDA assistance, in order
to make audits, examinations, excerpts, and transcripts.
(b) The right of access in this section
lasts as long as the records are maintained.
§ 1000.556 Does the Freedom of Information Act (FOIA) apply to recipient records?
FOIA does not apply to recipient
records. However, there may be other
applicable State and tribal access laws
or recipient policies which may apply.
§ 1000.558 Does the Federal Privacy
Act apply to recipient records?
The Federal Privacy Act does not
apply to recipient records. However,
there may be other applicable State
and tribal access laws or recipient policies which may apply.
APPENDIX A TO PART 1000—INDIAN
HOUSING BLOCK GRANT FORMULA
MECHANICS
This appendix shows the different components of the IHBG formula. The following
text explains how each component of the
IHBG formula works.
1. The Indian Housing Block Grant (IHBG)
formula is calculated by initially determining the amount a tribe receives for Formula Current Assisted Stock (FCAS) (See
§§ 1000.310 and 1000.312. FCAS funding is comprised of two components, operating subsidy

(§ 1000.316(a))
and
modernization
(§ 1000.316(b)). The operating subsidy component is calculated based on the national per
unit subsidy provided in FY 1996 (adjusted to
a 100 percent funding level) for each of the
following types of programs—Low Rent,
Homeownership (Mutual Help and Turnkey
III), and Section 8. A tribe’s total units in
each of the above categories is multiplied
times the relevant national per unit subsidy
amount. That amount is summed and multiplied times a local area cost adjustment factor for management.
2. The local area cost adjustment factor for
management is called AELFMR. AELFMR is
the greater of a tribe’s Allowable Expense
Level (AEL) or Fair Market Rent (FMR) factor, where the AEL and FMR factors are determined by dividing each tribe’s AEL and
FMR by their respective national weighted
average (weighted on the unadjusted allocation under FCAS operating subsidy). The adjustment made to the FCAS component of
the IHBG formula is then the new AELFMR
factor divided by the national weighted average of the AELFMR (See § 1000.320).
3. The modernization component of FCAS
is based on the national per unit modernization funding provided in FY 1996 to Indian
Housing Authorities (IHAs). The per unit
amount is determined by dividing the modernization funds by the total Low Rent, Mutual Help, and Turnkey III units operated by
IHAs in 1996. A tribe’s total Low Rent, Mutual Help, and Turnkey III units are multiplied times the per unit modernization
amount. That amount is then multiplied
times a local area cost adjustment factor for
construction (e.g. the Total Development
Cost) (See § 1000.320).
4. The construction adjustment factor is
Total Development Cost (TDC) for the area
divided by the weighted national average for
TDC (weighted on the unadjusted allocation
for modernization) (See § 1000.320).
5. After determining the total amount allocated under FCAS for each tribe, it is
summed for every tribe. The national total
amount for FCAS is subtracted from the Fiscal Year appropriation to determine the
total amount to be allocated under the Need
component of the IHBG formula.
6. The Need component of the IHBG formula is calculated using seven factors
weighted as set forth in § 1000.324 as follows:
22 percent of the allocated funds will be allocated by a tribe’s share of the total Native
American households paying more than 50
percent of their income for housing living in
the Indian tribe’s formula area, 25 percent of
the funds allocated under Need will be allocated by a tribe’s share of the total Native
American households overcrowded and or
without kitchen or plumbing living in their
formula area, and so on. The current national totals for each of the need variables
will be distributed annually by HUD with the

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Pt. 1000, App. B

24 CFR Ch. IX (4–1–02 Edition)

Formula Response Form (See § 1000.332). The
national totals will change as tribes update
information about their formula area and
data for individual areas are challenged (See
§§ 1000.334 and 1000.336). The Need component
is then calculated by multiplying a tribe’s
share of housing need by a local area cost adjustment factor for construction (the Total
Development Cost) (See § 1000.338).
7. No tribe in its first year of funding will
receive less than $50,000 under the Need component of the formula. In subsequent allocations to a tribe, it will receive no less than
$25,000 under the Need component of the formula. This increase in funding for the tribes
receiving the minimum Need allocation is
funded by a reallocation from all tribes receiving more than $50,000 under their Need
component. This is necessary in order to
keep the total allocation within the appropriation level. Such minimum Need allocations will only continue through FY 2002
(See § 1000.328).
8. A tribe’s total grant is calculated by
summing the FCAS and Need allocations.
This preliminary grant is compared to how
much a tribe received in FY 1996 for operating subsidy and modernization. If a tribe
received more in FY 1996 for operating subsidy and modernization than they do under
the IHBG formula, their grant is adjusted up
to the FY 1996 level (See § 1000.340). Indian
tribes receiving more under the IHBG formula than in FY 1996 ‘‘pay’’ for the upward
adjustment for the other tribes by having
their grants adjusted downward. Because
many more Indian tribes have grant
amounts above the FY 1996 level than those
with grants below the FY 1996 level, each
tribe contributes very little relative to their
total grant to fund the adjustment.
[63 FR 12373, Mar. 12, 1998; 63 FR 13105, Mar.
17, 1998]

APPENDIX B TO PART 1000—IHBG BLOCK
GRANT FORMULA MECHANISMS
1. The Indian Housing Block Grant Formula consists of two components, the Formula Current Assisted Stock (FCAS) and
Need. Therefore, the formula allocation before adjusting for the statutory requirement
that a tribe’s minimum grant will not be less
than the tribe’s FY 1996 Operating Subsidy
and Modernization funding, can be represented by:
unadjGRANT = FCAS + NEED.
2. NAHASDA requires the current assisted
stock be provided for before allocating funds
based on need. Therefore, FCAS must be calculated first. FCAS consists to two components, Operating Subsidy (OPSUB) and Modernization (MOD) such that:
FCAS = OPSUB + MOD.

3. OPSUB consists of three main parts:
Number of Low-Rent units; Number of Section 8 units; and Number of Mutual Help and
Turnkey III units. Each of these main parts
are adjusted by the FY 1996 national per unit
subsidy, an inflation factor, and local area
costs as reflected by the greater of the AEL
factor or FMR factor. The AEL factor as defined in § 1000.302 as the difference between a
local area Allowable Expense Level (AEL)
and the national weighted average for AEL.
The FMR factor is also defined in § 1000.302 as
the difference between a local area Fair Market Rent (FMR) and the national weighted
average for FMR. So, expanding OPSUB
gives:
OPSUB = [LR * LRSUB + (MH+TK) * HOSUB
+ S8 * S8SUB] * INF * AELFMR
Where:
LR = number of Low-Rent units.
LRSUB = FY 1996 national per unit average
subsidy for Low-Rent units = $2,440.
MH+TK = number of Mutual Help and Turnkey III units.
HOSUB = FY 1996 national per unit average
subsidy for Homeownership units = $528.
S8 = number of Section 8 units.
S8SUB = FY 1996 national per unit average
subsidy for Section 8 units = $3,625.
INF = inflation adjustment determined by
the Consumer Price Index for housing.
AELFMR = greater of AEL Factor or FMR
Factor weighted by national average of
AEL Factor and FRM Factor.
AEL FACTOR = AEL/NAAEL.
AEL = local Allowable Expense Level.
NAAEL = national weighted average for
AEL.
FMR FACTOR = FMR/NAFMR.
FMR = local Fair Market Rent.
NAFMR = national weighted average for
FMR.
NAAELFMR = national weighted average for
greater of AEL Factor or FMR factor.
For estimating FY 1998 allocations:
NAAEL = 240.224.
NAFMR = 459.437.
NAAELFMR = 1.144.
4. MOD considers only the number of LowRent, and Mutual Help and Turnkey III
units. Each of these are adjusted by the FY
1996 national per unit subsidy for modernization, an inflation factor and the local Total
Development Costs relative to the weighted
national average for TDC. So, expanding
MOD gives us:
MOD = [LR + (MH+TK)] * SUB * INF * TDC/
NATDC.
Where:
LR = number of Low-Rent units.
MH+TK = number of Mutual Help and Turnkey III units.
SUB = FY 1996 national per unit average subsidy for modernization.

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Office of the Assistant Secretary, HUD

Pt. 1000, App. B

INF = inflation adjustment determined by
the Consumer Price Index for housing.
TDC = Local Total Development Costs defined in § 1000.302.
NATDC = weighted national average for
TDC.
For estimating FY 1998 allocations:
SUB = $1,974.
NATDC = $103,828.
5. Now that calculation for FCAS is complete, we can determine how many funds will
be available to allocate over the NEED component of the formula by calculating:
NEED
FUNDS
=
APPROPRIATION—
NATCAS.
Where:
APPROPRIATION = dollars provided by Congress for distribution by the IHBG formula.
NATCAS = summation of CAS allocations for
all tribes.
For estimating FY 1998 allocations:
APPROPRIATION = $590 million.
NATCAS = $236,147,110.
6. Two iterations are necessary to compute
the final Need allocation. The first iteration
consists of seven weighted criteria that allocate need funds based on a tribe’s population
and housing data. This allocation is then adjusted for local area cost differences based
on TDC relative to the national weighted average. This can be represented by:
NEED1 = [(0.11 * PER / NPER) + (0.13 *
HHLE30 / NHHLE30)
+ (0.07 * HH30T50 / NHH30T50) + (0.07 *
HH50T80 / NHH50T80)
+ (0.25 * OCRPR / NOCRPR) + (0.22 * SCBTOT
/ NSCBTOT)
+ (0.15 * HOUSHOR / NHOUSHOR)] * NEED
FUNDS * (TDC/NATDC).
Where:
PER = American Indian and Alaskan Native
(AIAN) persons.
NPER = national total of PER.
HHLE30 = AIAN households less than 30% of
median income.
NHHLE30 = national total of HHLE30.
HH30T50 = AIAN households 30% to 50% of
median income.
NHH30T50 = national total of HH30T50.
HH50T80 = AIAN households 50% to 80% of
median income.
NHH50TO80 = national total of HH50T80.
OCRPR = AIAN households crowded or without complete kitchen or plumbing.
NOCRPR = national total of OCRPR.
SCBTOT = AIAN households paying more
than 50% of their income for housing.
NSCBTOT = national total SCBTOT.
HOUSHOR = AIAN households with an annual income less than or equal to 80% of
formula median income reduced by the
combination of current assisted stock
and units developed under NAHASDA.
NHOUSHOR = national total of HOUSHOR.

TDC = Local Total Development Costs defined in § 1000.302.
NATDC = weighted national average for
TDC.
For estimating FY 1998 allocations:
NPER = 953,254.
NHHLE30 = 78,496.
NHH30T50 = 52,514.
NHH50T80 = 59,793.
NOCPR = 80,581.
NSCBTOT = 34,080.
NHOUSHOR = 23,840.
NEEDFUNDS = $353,852,890.
NATDC = $104,956.
7. The second iteration in computing Need
allocation consists of adjusting the Need allocation computed above to take into account the $50,000 baseline funding for the
first year only and then $25,000 per year for
each year thereafter through FY 2002. So, if
in the first Need computation you have less
than the minimum Needs funding level, your
Need allocation will go up. But, if you have
more than the minimum Needs funding level,
your Need allocation will go down to adjust
for the other Need allocations going up. We
can represent this by:
If NEED1 is less than MINFUNDING, then
NEED = MINFUNDING.
If NEED1 is greater than or equal to
MINFUNDING, then NEED = NEED1—
{UNDERMIN$
*
[(NEED1—
MINFUNDING) / OVERMIN$]}.
Where:
MINFUNDING = minimum needs funding
level.
UNDERMIN$ = for all tribes with NEED1 less
than MINFUNDING, sum of the differences between MINFUNDING and
NEED1.
OVERMIN$ = for all tribes with NEED1
greater than or equal to
MINFUNDING, sum of the difference between NEED1 and MINFUNDING.
For estimating FY 1998 allocations:
MINFUNDING = $50,000.
UNDERMIN$ = $4,919,224.
OVERMIN$ = $335,022,114.
8. Now we have computed values for FCAS
and NEED. This final step in computing the
grant allocation is to adjust the sum of
FCAS and NEED to reflect the statutory requirement that a tribe’s minimum grant will
not be less than that tribe’s FY 1996 Operating Subsidy and Modernization funding.
So, before adjusting for the minimum grant
compute:
unadjGRANT = FCAS + NEED
where both FCAS and NEED are calculated
above.
9. Now, apply test to determine if the
GRANT (unadjusted for FY 1996) levels is
greater than or equal to FY 1996 Operating
Subsidy and Modernization funding.

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Pt. 1003

24 CFR Ch. IX (4–1–02 Edition)

Let TEST = unadjGRANT—OPMOD96 .
If TEST is less than 0, then GRANT =
OPMOD96.
If TEST is greater than or equal to 0, then
GRANT = unadjGRANT—[UNDER1996 *
(TEST / OVER1996)].
Where:
OPMOD96 = funding received by tribe in FY
1996 for Operating Subsidy and Modernization
UNDER1996 = for all tribes with TEST less
than 0, sum of the absolute value of
TEST.
OVER1996 = for all tribes with TEST greater
than or equal to 0, sum of TEST.
For estimating FY 1998 allocations:
UNDER1996 = $5,378,558.
OVER1996 = $326,095,837.
GRANT is the approximate grant amount in
any given year for any given tribe.
[63 FR 12373, Mar. 12, 1998; 63 FR 13105, Mar.
17, 1998]

PARTS 1001–1002 [RESERVED]
PART 1003—COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKA NATIVE VILLAGES
Subpart A—General Provisions
Sec.
1003.1 Applicability and scope.
1003.2 Program objective.
1003.3 Nature of program.
1003.4 Definitions.
1003.5 Eligible applicants.
1003.6 Waivers.

1003.208 Criteria for compliance with the
primary objective.

Subpart D—Single Purpose Grant
Application and Selection Process
1003.300 Application requirements.
1003.301 Selection process.
1003.302 Project specific threshold requirements.
1003.303 Project rating.
1003.304 Funding process.
1003.305 Program amendments.

Subpart E—Imminent Threat Grants
1003.400
1003.401
1003.402

Criteria for funding.
Application process.
Availability of funds.

Subpart F—Grant Administration
1003.500 Responsibility for grant administration.
1003.501 Applicability of uniform administrative requirements and cost principles.
1003.502 Agreements with subrecipients.
1003.503 Program income.
1003.504 Use of real property.
1003.505 Records to be maintained.
1003.506 Reports.
1003.507 Public access to program records.
1003.508 Grant closeout procedures.
1003.509 Force account construction.
1003.510 Indian preference requirements.
1003.511 Use of escrow accounts for rehabilitation of privately owned residential
property.

Subpart G—Other Program Requirements

Subpart B—Allocation of Funds
1003.100 General.
1003.101 Area ONAP allocation of funds.
1003.102 Use of recaptured and unawarded
funds.

Subpart C—Eligible Activities
1003.200 General policies.
1003.201 Basic eligible activities.
1003.202 Eligible rehabilitation and preservation activities.
1003.203 Special economic development activities.
1003.204 Special activities by CommunityBased
Development
Organizations
(CBDOs).
1003.205 Eligible planning, urban environmental design and policy-planning-management-capacity building activities.
1003.206 Program administration costs.
1003.207 Ineligible activities.

1003.600 Constitutional prohibition.
1003.601 Nondiscrimination.
1003.602 Relocation and real property acquisition.
1003.603 Labor standards.
1003.604 Citizen participation.
1003.605 Environment.
1003.606 Conflict of interest.
1003.607 Lead-based paint.
1003.608 Debarment and suspension.

Subpart H—Program Performance
1003.700
1003.701
1003.702
1003.703

Review of grantee’s performance.
Corrective and remedial actions.
Reduction or withdrawal of grant.
Other remedies for noncompliance.

AUTHORITY: 42 U.S.C. 3535(d) and 5301 et seq.
SOURCE: 61 FR 40090, July 31, 1996, unless
otherwise noted. Redesignated at 62 FR 12349,
Mar. 12, 1998.

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