PAGENO="0001" 200 (3) The proposed legislation must provide for more efficient utilization of precious federal dollars by allowing tribes some flexibility in tailoring minimum property standards to meet the needs of reservations and correspondingly lower the cost per housing unit. (4) The proposed legislation streamline the governmental bureucracy that diverts precious federal dollars from outright construction expenditures. (5) The proposed legislation must take into consideration the differences between the tribes and be cognizant of the fact that what might work for one reservation might not necessarily work for another one, and be responsive to the need to construct scatter-side housing as opposed to tract development. (6) The proposed legislation must avoid waivers of tribal sovereign immunity and not allow tribal trust fund reserves to be unilaterally attached. (7) The proposed legislation must provide tribal governments maximum flexibility to utilize federal housing dollars in a way which will best meet the needs of the people each tribal government serves. PAGENO="0002" 201 (8) The proposed legislation must provide for the provision of funds for water and sanitation needed to complete currently obligated housing units as well as future approved housing units. (9) The proposed legislation must provide for a review of existing regulations, laws, and executive orders affecting Indian housing with an eye toward simplifying the procedures and eliminating bureaucratic requirements which make no sense in the context of Indian reservations, as well as tailoring Indian housing to the needs and desires of the people they are intended to serve. (10) The proposed legislation must take into account the tribal need to offer a mix of housing programs ranging from public housing to support which can be utilized by persons of various levels of income. (11) The proposed legislation must provide for more flexible financing for Indian housing given the uniqueness of the economic condition of the reservation such as the trust status of the land. (12) The proposed legislation must take into account the specific needs of various catagories of Indians including veterans who have demonstrated military service to their country and the need for tribes to provide housing for categories of 18-934 O-83--14 PAGENO="0003" CONTENTS Hearings held: Page April 1, 1982 (Washington, D.C.) . 1 April 14, 1982 (Tucson, Ariz.) 75 April 24, 1982 (Rapid City, S. Dak.) 101 April 29, 1982 (Washington, D.C.) 161 Text of H.R. 5988 2 THURSDAY, APRIL 1, 1982 WASHINGTON, D.C. Statements: Cleveland, Roy J., executive director, Navajo Housing Authority 56, 172 Froman, Ronald, National American Indian Housing Council 62, 181 Savilla, Elmer M., executive director, National Tribal Chairmen's Association 49, 167 Thompson, Gene, executive director, Cherokee Tribal Housing Authority 67, 185 Wilson, Harold 0., executive director, Housing Assistance Council, Inc .... 69, 191 WEDNESDAY, APRIL 14, 1982 TUCSON, ARIZ. Statements: Anderson, Ned, president, Inter-Tribal Council of Arizona: and chairman, San Carlos Apache Tribe 80, 250 Jones, Gilbert, executive director, Fort McDowell Housing Authority 98 Panel consisting of: Delfm J. Lovato, chairman, All Indian Pueblo Council 83, 254 Salamon Garcia, executive director, All Indian Pueblo Housing Au- thority 85 Lamar Parrish, counsel 86 Don Montoya, executive director, Laguna Pueblo Housing Authority.. 86 David Perez, executive director, Northern Pueblo Housing Authority. 86 Panel consisting of: Eugene Pasqua, executive director, Inter-Tribal Council of California 89, 260 Ben Roberts, Santa Rose Rancheria 92 Panel from the Colorado River Indian Tribes consisting of: Anthony Drennan, spokesman 93, 264 Elliott Booth, councilman 95 Elvin Kelly, housing director 96 Panel from the Ute Mountain Tribe of Colorado consisting of: Judy Knight, chairman of the housing authority 97 Bradley Hight, executive director 97 Toro, Harriet, on behalf of the Papago Tribe 77, 238 Valencia, Anselmo, director, Administration for Native Americans, Pascua Yaqui Tribe 79, 240 (III) PAGENO="0004" Iv SATURDAY, APRIL 24, 1982 RAPID CITY, S. DAK. Statements: Page Begay, Eugene, councilman, Lac Courts Oreilles Tribe, Wisconsin 121, 284 Blackbird, Elmer, chairman, Omaha Tribe, Nebraska 119, 282 Cadu, M. Ken, chairman, Kickapoo Tribe 115 Farrell, Rick, housing director, Confederated Salish and Kootenai Tribes, Montana 124, 291 Good Voice, Donald, Chippewa-Cree Tribe, Montana 144 Ground, Leland, councilman, Blackfeet Tribe, Montana 137, 304 Jones, Ramona, on behalf of the Lower Sioux Community Council, Mon- tana 157 LaRose, Louis, council member, Winnebago Tribe, Nebraska 134 Oldman, Joseph, Northern Arapahoe Tribe, Wyoming 158, 325 Panel from the Northern Cheyenne Tribe, Montana, consisting of: Virginia Toews, executive director, housing authority 102, 268 Allen Rowland, president 105 Panel from the Oglala Sioux Tribe, South Dakota, consisting of: Joe American Horse, president 108 Don Steel, vice president 111 Joe Little, housing director 111 Panel from the Fort Berthold Tribe, North Dakota, consisting of: Auguste Little Soldier, vice chairman 117 Nathan Paul Goodiron, member, housing authority 117 Roy Bird Bear, member, housing authority 118 Panel from the Devils Lake Sioux Tribe, South Dakota, consisting of: Frank Myrick, council member 127, 294 Roger Yanktron, executive director, housing authority 127 Panel from the Cheyenne River Sioux Tribe, South Dakota, consisting of: Robert Chasing Hawk, chairman 128 Ira Grinnel, director, housing authority 128 Panel from the Standing Rock Sioux Tribe, South Dakota, consisting of: Allen White Ligthning, councilman 145, 317 Phyllis Young, secretary, housing authority 147 Panel from the Yankton Sioux Tribe, South Dakota, consisting of: George Cournoyer, executive director, housing authority 153 Al Zephier, councilman; and chairman, housing authority 153 Philbrick, Robert, chairman, Crow Creek Sioux Tribe, South Dakota 148 Shields, Caleb, council member, Fort Peck Tribe, Montana 132 Stands, Pat, council member, Crow Tribe, Montana 151, 321 Wadena, Darrell, president, Chippewa Tribe, Minnesota 112 WaIn, Carl, chairman, Rosebud Sioux Tribe, South Dakota 140, 315 THURSDAY, APRIL .29, 1982 WASHINGTON, D.C. Statements: Dunbar, Dave, on behalf of National Congress of American Indians 164, 331 Garrow, Leonard, president, United South and Eastern Tribes 162, 327 APPENDIX I THURSDAY, APRIL 1, 1982 Additional material submitted for the hearing record from: Committee on Interior and Insular Affairs: 1. Paper entitled "Background on H.R. 5988: The Indian Housing Act of 1982" 2. Paper entitled "Section-by-Section Analysis of H.R. 5988" 37 National Tribal Chairmen's Association: Prepared statement of Elmer Savilla, executive director 167 Navajo Housing Authority: Prepared statement of Roy J. Cleveland, executive director 172 Pueblo de la Laguna: Prepared statement 179 PAGENO="0005" V National American Indian Housing Council: Prepared statement of Ronald Page Froman 181 Cherokee Tribal Housing Authority: Prepared statement of Gene Thompson, executive director 185 Housing Assistance Council, Inc.: Prepared statement of Harold 0. Wilson, executive director 191 Navajo Tribal Council: Prepared statement of Peter McDonald, chairman 199 Publication by Native American Rights Fund entitled "Indian Housing, Worst in the Nation 203 APPENDIX II WEDNESDAY, APRIL 14, 1982 Additional material submitted for the hearing record from: Papago Tribe of Arizona: Prepared statement of Harriet Toro 238 Pascua Yaqui Tribe: Prepared statement of Anselmo Valencia, director, Ad- ministration for Native Americans 240 Inter-Tribal Council of Arizona: Prepared statement of Ned Anderson, presi- dent 250 All Indian Pueblo Council: Prepared statement of Delfin J. Lovato, chairman.. 254 Inter-Tribal Council of California, Inc.: Prepared statement of Eugene Pasqua, executive director 260 Colorado River Indian Tribes: Prepared statement of Anthony Drennan, spokesman 264 APPENDIX III SATURDAY, APRIL 24, 1982 Additional material submitted for the hearing record from: Northern Cheyenne Housing Authority: Prepared statement of Virginia Toews, executive director 268 Oglala Sioux Tribe: Prepared statement of Joe American Horse, president 274 Minnesota Chippewa Tribe: Prepared statement of Darrell Wadena, president. 278 Omaha Tribe of Nebraska: Prepared statement of Elmer Blackbird, chairman. 282 Lac Courte Oreilles Band of Lake Superior Chippewa Indians of Wisconsin: Prepared statement of Eugene Begay, councilman 284 Salish and Kootenai Housing Authority: Prepared statement of Rick Farrell, executive director 291 Devils Lake Sioux Tribe: Prepared statement of Gertrude Cavanaugh, vice chairman 294 Assiniboine and Sioux Tribes of the Fort Peck Reservation: Prepared state- ment of Caleb Shields, member, tribal executive board 300 Winnebago Tribe of Nebraska: Prepared statement of Sam Tebo, chairman 302 Blackfeet Tribe of Indians: Prepared statement of Leland Ground, member, tribal council 304 Rosebud Sioux: Prepared statement of Carl Wain, chairman 315 Standing Rock Sioux Tribe: Prepared statement of Pat McLaughlin, chairman 317 Crow Tribal Housing Authority: Prepared statement of Pat Stands, chairman. 321 Lower Sioux Indian Community: Resolution No. 13-82, disapproving H.R. 5988 324 Arapahoe Tribe: Prepared statement of Joseph Oldman, member, business council 325 APPENDIX IV THURSDAY, APRIL 29, 1982 Additional material submitted for the hearing record from: United South and Eastern Tribes, Inc.: Prepared statement of Leonard Garrow, president 327 National Congress of American Indians: Prepared statement of David Dunbar, general counsel 331 Crow Creek Housing Authority: Prepared statement of Dallas B. Harrison, executive director 336 PAGENO="0006" VI Confederated Tribes of the Colville Reservation: Prepared statement of Al Page Aubertin, chairman 340 Mississippi Band of Choctaw Indians: Prepared statement of Phillip Martin, chief 342 Papago Tribe of Arizona: Prepared statement of Max H. Morris, chairman 349 Letter from Hon. Ken Salt, Assistant Secretary, Bureau of Indian Affairs, U.S. Department of the Interior, to Hon. Frederick N. Khedouri, Associate Director for Natural Resources, Energy and Science, Executive Office of the President, Office of Management and Budget, dated April 14, 1982, request- ing findings of the Interagency Indian Housing Study (with enclosures) 351 Enclosure 1: U.S. Department of the Interior, Bureau of Indian Affairs: Prepared statement entitled "Position Paper on the Indian Housing Program" 352 Enclosure 2: U.S. Department of the Interior, Bureau of Indian Affairs: Staff report entitled "0MB Task Force for a New Indian Housing Delivery System 372 Letter from Hon. Neal Sex Johnson, Acting Deputy Administrator, Program Operations, U.S. Department of Agriculture, to Hon. Kenneth L. Smith, Assistant Secretary, U.S. Department of the Interior, dated April 14, 1982, recommending that H.R. 5988 be enacted 386 Letter from Hon. Everett R. Rhoades, M.D., Assistant Surgeon General, Direc- tor, Indian Health Service, U.S. Department of Health and Human Serv- ices, to Hon. Kenneth Smith, Assistant Secretary for Indian Affairs, U.S. Department of the Interior, dated April 14, 1982, reviewing H.R. 5988 (with attachment) 387 Memorandum from Hon. Bill F. Pearson, P.E., Director, Environmental Health, Indian Health Service, dated April 12, 1982, entitled "Task Force Meeting-April 12, 1982 388 APPENDIX V GENERAL Additional correspondence and statements pertaining to the committee's hearings on the Indian Housing Act of 1982 were also received from the following: Indian Tribe of the Northern Cheyenne Indian Reservation: Prepared state- ment of Rowland Allen, president 391 Chippewa-Cree Tribe: Prepared statement of Donald Good Voice, Chippewa- Cree Housing Authority 399 Pueblo of Zuni: Letter dated May 19, 1982 (with attachment) 400 Attachment: Pueblo of Zuni: Position paper by Robert E. Lewis, governor. 402 Cheyenne River Sioux Tribe: Letter from Robert Chasing Hawk, chairman 414 Northern Cheyenne Tribal Council: Prepared statement of Allen Rowland, tribal president 416 Nez Perce Indian Tribe: Prepared statement of David HoIt, member, execu- tive committee 424 National Congress of American Indians: 1. Memorandum from Ronald P. Andrade, to NCAI executive committee entitled "Analysis of Interior Committee's Indian Housing Bill" 428 2. Letter from Robin R. Shield, administrator 430 3. Letter from Ronald P. Andrade 432 4. Housing committee's position paper on housing 433 5. Housing committee's report to the 39th annual convention 439 National Tribal Chairmen's Association: Resolution No. 82-30 supporting pas- sage of H.R. 5988 and S. 2847-Indian Housing Act of 1982 447 Northern Arapahoe Tribe of the Wind River Reservation: Letter written by R. Anthony Rogers, Wilkinson, Cragun and Barker, attorneys (with attach- ment) Attachment: Admendment to H.R. 5988 453 Great Lakes Inter-Tribal Council, Inc.: Resolution No. 4-23-82-B opposmg H.R. 5988 as written 454 Navajo Nation: Letter from Peter MacDonald, chairman 456 Shoshone and Arapahoe Tribes: Letter from Alfred Ward and Joseph Oldman. 458 Spokane Tribal Business Council: Resolution 1982-197 to include language that would make Indian preference mandatory 460 Choctaw Nation of Oklahoma: Letter from Hollis E. Roberts, chief (with attachment) 461 PAGENO="0007" VII Attachment: Prepared statement of Ronald Froman, National American Page Indian Council 463 Affiliated Tribes of Northwest Indians: Letter from Connie Skanen, executive director (with attachment) 472 Attachment: Prepared statement 473 Salt River Pima-Maricopa Indian Community: Letter from Aaron Osife, Laurie Thomas, and Lorna Ray, Residential Training and Counseling Pro- gram (with attachment) 478 Memorandum: Concerning recommendations to proposed legislation 479 Muscogee (Creek) Nation: Letter from Claude A. Cox, principal chief 482 Red Lake Band of Chippewa Indians: Letter from Roger A. Jourdain, chair- man 483 Amerindian Architecture: Letter from Dennis Sun Rhoades 486 Pablo de Acoma: Letter from Merle L. Garcia, governor (with attachment) 489 Attachment: Resolution supporting passage of H.R. 5988 and 5. 2847 490 Salish and Kootenai Housing Authority: Prepared statement of Rick Farrell ... 494 Montana Indian Targeted Jobs Demonstration Project: Letter from Carl B. Schildt, executive director 499 Ziontz, Pirtle, Morisset, Ernstoff and Chestnut: 1. Letter from Samuel J. Stiltner regarding fiscal year 1982 Indian hous- ing program 501 2. Letter to Senator Dale Bumpers from Samuel J. Stiltner 502 3. Comments of the Colville Housing Authority concerning funding for Indian housing programs 504 Santee Sioux Tribe of Nebraska: 1. Letter from Richard L. Kitto, chairman 512 2. Letter from Roger Trudell, business manager 514 Association of Western Washington Indian Housing Authorities: 1. Letter from Theodore J. St. Hilaire 515 2. Position paper of the Association of Western Washington and East Cascade Indian Housing Authorities 516 Housing Authority of the Cherokee Nation of Oklahoma: Letter from Nathan H. Young, III 522 United Indian Tribes of Western Oklahoma and Kansas: Letter from Newton Lamar, president 523 Ussery and Parrish, P.A.: Letter from L. Lamar Parrish (with enclosure) 524 Enclosure: All Indian Pueblo Housing Authority: Prepared statement of Clyde Ranch, chairman 525 Red Lake Reservation Housing Authority: Memorandum from George Gaas- vig, executive director, to Terry Brown 528 Chemehuevi Indian Tribe: Letter from Conkie Hoover, housing commissioner (with enclosure) 530 Enclosure: Prepared statement on the Indian Housing Act of 1982 531 Hopi Tribal Housing Authority: Letter from Harold Joseph, Jr., chairman, board of directors 534 Cherokee Nation of Oklahoma: Prepared statement of Ross 0. Swimmer, principal chief 540 Sault Ste. Marie Tribe of Chippewa Indians: Letter from Joseph K. Lumsden, tribal chairman 546 Oneida Housing Authority: Resolution is supportive in having H.R. 5988 redrafted with tribal participation 547 Navajo Housing Services Department: Prepared statement 548 Navajo Veterans Housing Assistance Program: Prepared statement of Ray- mond C. Etcitty, veterans housing officer 552 Mississippi Band of Choctaw Indians: Letter from Phillip Martin, chief (with enclosure) 558 Enclosure: Prepared statement of Phillip Martin, chief 559 Shoshone-Bannock Tribes: Letter from R. Willis Dixey, chairman 566 American Indian Council of Architects and Engineers: Letter from Charles Archambault, chairman 567 Hopi Tribe: Letter from Ivan L. Sydney, council chairman 569 Colville Confederated Tribes: Letter from Al Aubertin, chairman 570 Telegrams and mailgrams were received from the following: Fallon Paiute Shoshone and Lovelock Housing Authorities 571 Oneida Tribe of Indians of Wisconsin, Gary Metoxen, chairman 572 Northern Arapaho Tribe, Joseph Oldman, chairman 573 Shoshone and Arapahoe Tribes of Wind River, Reservation, Wyoming 574 Association on American Indian Affairs, Steven Unger, executive director 576 Mississippi Band of Choctaw Indians, Phillip Martin, chief 577 PAGENO="0008" PAGENO="0009" INDIAN HOUSING ACT OF 1~82 THURSDAY, APRIL 1, 1982 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Washington, D.C. The committee met, pursuant to notice, at 9:45 a.m., in room 1324, Longworth House Office Building, Hon. Morris K. Udall (chairman of the committee) presiding. The CHAIRMAN. The Committee on Interior and Insular Affairs will be in session. Today we begin hearings on H.R. 5988, which is legislation devel- oped by this committee based on our oversight activities in. this Congress with respect to Indian housing. Without objection, a copy of the bill and the background and the section-by-section analysis prepared by. the staff will be made a part of our record at this point. [The bill, H.R. 5988; background on H.R. 5988; and section-by-sec- tion analysis of H.R. 5988 follow:] (1) PAGENO="0010" 2 I 97TH CONGRESS 2D SESSION To provide for an Indian housing program for construction and financing of housing for Indians, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 30, 1982 Mr. TJDALL (for himself, Mr. KILDEE, Mr. WILLIAMS of Montana, and Mr. SAN- TINI) introduced the following bill; which was referred to the Committee on Interior and Insular Affairs A BILL To provide for an Indian housing program for construction and financing of housing for Indians, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Indian Housing Act of 4 1982". 5 SEC. 2. (a) Oongress finds, based upon the Federal 6 Government's historical and special legal relationship with, 7 and resulting responsibility to, American Indian people, that 8 the goal of decent, safe, and sanitary housing has not been 9 realized for many Indian families and elderly residing on 10 Indian reservations and in Indian communities; that nearly PAGENO="0011" 3 2 1 40 per centum of all Indian housing is in substandard condi- 2 tion as compared with a national figure of 12 per centum; 3 that this situation is of grave concern; and that special efforts 4 are needed to mobilize public and private resources for the 5 realization of this goal. 6 (b) It is hereby declared to be the policy of the United 7 States to provide grants, financing, and loan guarantees to 8 assist Indians in obtaining decent, safe, and sanitary housing. 9 Sec. 3. For the purposes of this Act, the term- 10 (1) "adjusted family income" means gross family 11 income less $1,000 for each member of the household, 12 plus a further deduction of $3,400 or the amount of 13 itemized deductions from the family's current Federal 14 income tax return, whichever is higher; 15 (2) "amortization payment" means that payment 16 that would be the equivalent of the level monthly 17 amount needed to amortize the capital cost of a house 18 over the term of a housing assistance* contract for 19 twenty-five years at the average Treasury bill rate for 20 the 12 months prior to October 1 of the year in which 21 a house was available for occupancy; 22 (3) "family" means one or more persons maintain- 23 ing a household. The tribal housing agency shall deter- 24 mine which adult members of a family will be required 25 to execute a housing assistance contract; HR 5988 III PAGENO="0012" 4 3 1 (4) "housing assistance contract" means the ex- 2 ecuted agreement between the tribal housing agency 3 and an eligible family which specifies the terms, condi- 4 tions, rights, and responsibilities of the parties; 5 (5) "Indian" means a person who is a member of 6 an Indian tribe or who is an Indian as defined in sec- 7 tion 19 of the Act of June 18, 1934 (48 Stat. 988; 25 8 U.S.C. 479); 9 (6) "mortgage" means a mortgage, deed of trust, 10 or any other instrument establishing a lien on real 11 property; 12 (7) "project" means the entire undertaking to pro- 13 vide housing under a project agreement, including the 14 minimum number of housing units to be developed or 15 rehabilitated with funds allocated under such agree- 16 ment; 17 (8) "Secretary" means the Secretary of the Inte- 18 nor; 19 (9) "standard housing" means a dwelling in a 20 condition which is decent, safe, and sanitary so that it 21 at least meets the following minimums- 22 (i) general construction conforms to applica- 23 ble standards for the region; 24 (ii) the heating system has the capacity to 25 maintain a minimum temperature of sixty degrees HR 5988 III PAGENO="0013" 5, 4 1 Fahrenheit in the dwelling during the coldest 2 weather in the region. It must be safe to operate 3 and maintain and deliver a uniform distribution of 4 heat. Applicable local heating codes are to be fol- 5 lowed or, if there are no applicable local codes, 6 county and State codes are to be used as a guide; 7 (iii) the plumbing system includes a properly 8 installed system of piping. Fixtures consist of a 9 kitchen sink and a partitional bathroom with lava- 10 tory, toilet, and bath or shower. The water 11 supply, plumbing and sewage disposal systems 12 meet minimum standards of the Indian Health 13 Service, tribe, county, or State, whichever is ap- 14 plicable; 15 (iv) the electrical system includes wiring and 16 equipment properly installed to safely supply elec- 17 trical energy for adequate lighting and for oper- 18 ation of appliances. The tribal, county, or State 19 electrical code, whichever is applicable, must be 20 used as an alternative standard. If no codes exist, 21 a minimum of two circuits per dwelling must be 22 installed with provision for at least one additional 23 circuit for future use; and 24 (v) family size per dwelling is not less than- HR 5988~ IH PAGENO="0014" 6 5 1 (I) five hundred and seventy square feet 2 for a family~ of up to four members; 3 (II) eight hundred and fifty square feet 4 for a family of five to seven members; and 5 (UT) one thousand and twenty square 6 feet for a family of eight or more members: 7 Provided, That, in appropriate circumstances, the 8 Secretary may waive these minimum standards 9 for dwelling size; 10 (10) "tribal housing agency" means that entity or 11 administrative unit of the tribal government which has 12 been designated or established by the tribe to adminis- 13 ter housing programs under this Act; 14 (11) "tribe" means any Indian tribe, band, nation, 15 group, pueblo, or community, including any Alaska 16 Native village or group, which is federally recognized 17 as eligible for the special programs and services pro- 18 vided by the United States to Indians because of their 19 status as Indians; and 20 (12) "trast land" means land title to which is held 21 by the United States for the benefit of an Indian or 22 Indian tribe or title to which is held by an Indian or 23 Indian tribe subject to a restriction against alienation 24 imposed by the United States. HR 5988 IH PAGENO="0015" 7 6 1 TITLE I-INDIAN hOUSING IMPROVE~[ENT 2 PROGRAM 3 SEC. 101. (a) There is hereby established an Indian 4 housing improvement program for the purpose of making 5 grants or providing assistance to preserve existing housing, 6 make repairs, and construct or acquire standard housing for 7 Indians. 8 (b) The Secretary is authorized, upon application of an 9 Indian tribe or individual, to make grants or provide assist- 10 ance to assist Indian families who are not eligible for housing 11 assistance under titles II and III of this Act because of low 12 income or extremely isolated circumstances. 13 (c) Grants or assistance provided under this title shall be 14 consistent with plans and priorities established by tribes. In 15 providing assistance under this title, the Secretary may- 16 (1) make direct grants to individual Indians; 17 (2) enter into agreements with tribes or tribal 18 housing agencies; 19 (3) contract with private construction firms pursu- 20 ant to standard Federal contracting procedures; or 21 (4) have repairs or new construction performed di- 22 rectly by the Bureau of Indian Affairs. 23 (d) With respect to assistance provided under agree- 24 ments entered into pursuant to subsection (c)(2) of this sec- 25 tion, a tribe or tribal housing agency, in their discretion, may HR 5988 IH PAGENO="0016" 8 7 1 require an assisted family to make a monthly payment not to 2 exceed the administrative charge established for such tribe or 3 tribal housing agency pursuant to section 210 of title II of 4 this Act or, if no such amount has been approved, an amount 5 satisfactory to the Secretary. Receipts from such payments 6 shall be used solely for housing-related activities of such 7 tribe. 8 SEc. 102. (a) Grants or assistance may be provided 9 under this title to- 10 (1) finance minor repairs and additions to existing 11 substandard housing to improve safety and sanitary 12 conditions until such time as standard housing assist- 13 ance can be made available to such family; 14 (2) finance major repair, renovations and/or en- 15 largement of existing dwellings that are structurally 16 sound, but deteriorated, and which can be economically 17 placed in standard condition; and 18 (3) finance the construction or acquisition of new 19 standard housing where severe need is demonstrated 20 and it is established that there is no reasonable pros- 21 pect that standard housing can be financed from other 22 sources. 23 (b) Appropriate insurance shall be required on* housing 24 constructed, acquired, or improved under subsection (a) (2) or 25 (3) of this section, unless waived by the Secretary. HR 5988 III PAGENO="0017" 9 8 1 SEC. 103. (a) Where a house constructed, acquired, or 2 repaired pursuant to section 102(a) (2) or (3) of this title is 3 located on trust land, the Secretary shall not approve the sale 4 or lease of such land, unless the provisions of section 104 of 5 this title have been met. 6 (b) Where a house constructed, acquired, or repaired 7 pursuant to section 102(a) (2) or (3) of this title is located on 8 fee land, the Secretary shall insure that a lien upon such land 9 is recorded under appropriate State law, noting the encum- 10 brance imposed by section 104 of this title. 11 SEC. 104. Any house constructed, acquired, or repaired 12 pursuant to section 102(a) (2) or (3) of this title may be sold: 13 Provided, That the funds provided for such housing under 14 this title shall be reimbursed to the United States in an 15 amount to be determined by reducing the initial cost by 10 16 per centum per year: Provided further, That, where such 17 house is located on tribal land, the tribe shall have the right 18 of first refusal on the sale of such house. Amounts collected 19 pursuant to this section shall be credited to the appropriation 20 authorized by section 105 of this title. * 21 SEC. 105. There is hereby authorized to be appropri- 22 ated, without fiscal year limitation, not to exceed 23 $30,000,000 in each fiscal year beginning in fiscal year 1983 24 for the purpose of carrying out the provisions of this title. HR S988 IH 18-934 O-88-----2 PAGENO="0018" 10 9 1 TITLE 11-INDIAN HOUSING FINANCE FUND 2 SEc. 201. There is hereby established an Indian hous- 3 ing finance fund (hereinafter referred to as the "fund") for the 4 purpose of providing financing to Indian tribes for the con- 5 struction, acquisition, or rehabilitation of standard housing for 6 Indian families who are unable to obtain financing from other 7 sources on reasonable terms and conditions and who are not 8 eligible for assistance under title 1111 of this Act, but who can 9 meet the minimum monthly payment required by this title. 10 SEc. 202. As a prerequisite for eligibility for financing 11 from the fund, a tribe must prepare and submit to the Secre- 12 tary for approval a tribal housing plan. Such plan, at a mirn 13 mum, shall include an inventory of existing housing; an as- 14 sessment of housing needs; a proposed tribal administrative 15 structure to implement a housing program; an assessment of 16 the tribe's capacity to administer such program; and a projec- 17 tion of how the tribe intends to meet its housing needs over a 18 multiyear period. 19 SEC. 203. (a) Applications for financing from the fund 20 shall be submitted to the Secretary and shall specify the 21 number of housing units to be developed and methods of pro- 22 duction and development; shall include preliminary drawings 23 and specifications; and shall otherwise be consistent with the 24 approved tribal housing plan. IEIIR 5988 11I--2 PAGENO="0019" 11 10 1 (b) Applications for funding shall be evaluated and ap- 2 proved, subject to the availability of appropriations, based 3 upon, but not limited to, the following criteria- 4 (1) a priority for those tribes who have not re- S ceived financing from the fund in prior fiscal years; 6 (2) a determination of the administrative, manage- 7 ment, and accounting capability of the tribe to imple- 8 ment the proposed housing project; 9 (3) a determination of the percentage of tribal 10 housing units in a substandard condition; and 11 (4) the housing needs of such tribes as contained 12 in the biannual housing inventory required by section 13 405 of this Act. 14 (c) The application shall include a tribal ordinance or 15 other evidence of action of the governing body of the tribe 16 designating or establishing a tribal housing agency (herein- 17 after referred to as the "agency") which shall be responsible 18 for implementing the project agreement. 19 (d) Nothing herein shall preclude the submission and ap- 20 proval of multitribal applications and the Secretary shall en- 21 courage, but shall not require, multitribal applications to 22 achieve economy of scale in housing projects. 23 SEC. 204. Upon approval of an application, the Secre- 24 tary and the agency shall enter into a project agreement 25 which shall specify the amount of funds to be made available, HR 3988 IH PAGENO="0020" 12 11 1 the minimum number of housing units to b~ developed with 2 such funds, the production method, and such other terms and 3 conditions as may be reasonable and consistent with the pro- 4 visions of this title. 5 SEC. 205. (a) Notwithstanding any other provision of 6 law, the Secretary is hereby empowered, as provided in this 7 section, to attach any obligated or unobligated funds held by 8 the United States in trust for the benefit of any Indian or 9 Indian tribe. 10 (b) The project agreement must contain a provision that 11 the tribe specifically agrees that- 12 (1) its trust funds shall be subject to attachment 13 as provided in subsection (a) of this section in the 14 amount and to the extent that its agency fails to pay 15 into the fund the amounts agreed to by such agency 16 pursuant to the provisions of this title; and 17 (2) it shall require any Indian executing a housing 18 assistance contract to authorize the Secretary, upon his 19 own motion or at the request of the agency, to attach 20 the trust funds of such Indian upon his failure to meet 21 the financial obligations incurred in such contract. 22 Funds attached hereunder shall be paid into the fund as re- 23 sidual receipts. 24 (c) In no event may the Secretary reject an application 25 under section 203 or refuse to enter into a project agreement HR 5988IH PAGENO="0021" 13 12 1 under secti6n 204 of this title nor may an agency refuse to 2 execute a housing assistance contract under section 209 on 3 the basis that a tribe or individual Indian has no trust funds 4 to their credit. 5 (d) Prior to the attachment of trust funds as provided in 6 this section, the Secretary shall provide the Indian or Indian 7 tribe, as the case may be, with thirty days written notice of 8 his intent. Within such thirty-day period, the Indian or 9 Indian tribe shall be entitled to (1) pay the amount in default; 10 (2) negotiate a repayment schedule satisfactory to the Secre- 11 tary; or (3) institute such administrative appeals as may be 12 otherwise authorized. Subject to the requirements of this sub- 13 section, the decision of the Secretary shall be final and con- 14 clusive. 15 SEC. 206. (a) An initial disbursement may be made from 16 the fund, under a project agreement, to cover costs incurred 17 by the agency for preliminary planning and administration: 18 Provided, That this initial disbursement shall not exceed 19 $50,000 or 2 per centum of the total funding of the project. 20 Further disbursements under the project agreement shall be 21 made based upon the percentage of completion of the project 22 as specified in the project agreement and as determined pur- 23 suant to the plans and specifications approved under section 24 207 of this title. HR 5988 111 PAGENO="0022" 14 13 1 (b) All moneys disbursed from the fund shall be main- 2 tamed by the agency in an account separate from all other 3 funds of the tribe or the agency and shall be accounted for as 4 provided in the project agreement. 5 (c) All housing units provided for in the project agree- 6 ment shall be placed under construction or acquisition con- 7 tracts within one year of the execution of the project agree- 8 ment: Provided, That, where the Secretary determines that 9 the inability of the agency to place units under contract is 10 due to circumstances beyond the control of the agency, he 11 may extend the period for an additional ninety days. Funds 12 for units not placed under contract within such time shall be 13 returned to the fund or such amount shall be deducted from 14 approved allocations from the fund for such tribe in subse- 15 quent years. 16 SEc. 207. Within one hundred and twenty days of the 17 initial disbursement of funds as provided in section 206, the 18 agency shall submit to the Secretary the final plans and 19 specifications for housing units to be developed under the 20 project agreement. Such plans and specifications shall include 21 a phased construction schedule necessary to facilitate periodic 22 disbursements from the fund as provided in section 206. The 23 Secretary shall approve such plans and specifications if they 24 meet the standard housing criteria as defined in section 3(9) HR 5988 1ff PAGENO="0023" 15 14 1 of this Act and are otherwise consistent with the project 2 agreement. 3 SEC. 208. (a) Prior to the construction or acquisition of 4 any housing units under a project agreement, the agency 5 must secure either a fee title to, or a lease of, such lands as 6 may be necessary for the construction or acquisition of such 7 units. 8 (b) Where the housing site is upon tribal or individual 9 trust land, the agency must secure, without cost to itself, a 10 twenty-five year lease with option to renew for not to exceed 11 an additional twenty-five years. Where the housing site is on 12 fee land, the agency shall require, without cost to itself, the 13 transfer of the fee title to such lands. 14 (c) Where the Secretary determines that no suitable 15 lands are available to the tribe for construction of housing, he 16 may authorize the use of project funds for land purchase: 17 Provided, That such land purchase cost shall be a part of the 18 total project cost. 19 SEC. 209. (a) An eligible Indian family shall make appli- 20 cation for housing assistance to the agency. Upon approval of 21 the application by the agency, the family and the agency 22 shall enter into a housing assistance contract (hereinafter re- 23 ferred to as the "contract") in which the~ agency shall agree 24 to construct or acquire a standard housing unit or rehabilitate HR 5988.IH PAGENO="0024" 16 15 1 an existing house to standard condition for such family upon 2 lands to be provided by the family or the tribe. 3 (b) The family shall agree in such contract that it 4 shall- 5 (1) at no cost to the agency, lease or transfer its 8 trust or fee lands if required by the agency; 7 (2) make monthly payments to the agency in the 8 amount of 20 per centum of the adjusted family 9 income: Provided, That the adjusted family income 10 shall be reviewed annually during the twenty-five year 11 period of the contract and the monthly payment shall 12 be adjusted upward or downward as indicated: Pro- 13 vided further, That such monthly payment shall be not 14 more than the amortization payment and not less than 15 the minimum payment established in section 210 of 18 this title; 17 (3) accept responsibility for all utilities and main- 18 tenance; and 19 (4) subject the trust funds of its adult members to 20 attachment as provided in section 205 of this title. 21 (c) Where the~ housing site is located on the trust or fee 22 lands of the family which has fully met its obligations under 23 the housing assistance contract, at the end of twenty-five 24 years, the land will revert to its former status and the agency 25 will transfer full ownership of the house to the family. Where HR5988 Ill PAGENO="0025" 17 16 1 the housing site is located on tribal lands and the family has 2 fully met its obligations under the housing assistance con- 3 tract, the lands will revert to their former status and the 4 agency will transfer ownership of the house to the family: S Provided, That the tribe may not deny the family the contin- 6 ued use of the land site unless it shall offer the family fair 7 market value for the house. 8 SEc. 210. The project agreement shall provide for a 9 minimum monthly payment to be made by families receiving 10 assistance under this title. Such minimum monthly payment 11 shall be composed of- 12 (1) an administrative charge which shall be in an 13 amount deemed sufficient by the Secretary to enable 14 the agency to perform the administrative functions re- 15 quired by this Act; 16 (2) a premium for insurance; and 17 (3) an amount deemed reasonable by the Secre- 18 tary as a contingency reserve for maintenance. Such 19 amounts shall be deposited by the agency into an inter- 20 est-bearing account as a reserve for maintenance which 21 may be used, principal and interest, as provided in sec- 22 tion 214 of this title. 23 The minimum payment shall be reviewed annually and may, 24 subject to the approval of the Secretary, be adjusted upward 25 or downward as warranted. `HR 5988 III PAGENO="0026" 18 17 1 SEC. 211. (a) The project agreement shall require the 2 agency to establish an account for residual receipts. Residual 3 receipts shall be the amount of the monthly payments collect- 4 ed by the agency less the minimum payment to be retained 5 by the agency as provided in section 209. 6 (b) Residual receipts shall be deposited by the agency in 7 the fund quarterly on a fiscal year basis. Initial residual re- 8 ceipts due the fund are those that are the result of monthly 9 payments established by the agency and which have been 10 certified by an independent audit or agreed to by the Secre- 11 tary in the project agreement. Thereafter, residual receipts 12 due to the fund shall be in accordance with amounts estab- 13 lished by an annual independent audit of the adjusted family 14 incomes of the participating families. 15 (c) Residual receipts due the fund from an agency shall 16 not fall below 90 per centum of the amount due. Within ten 17 days after a determination of a default by an agency in its 18 quarterly payment of residual receipts to the fund, the Secre- 19 tary shall notify the tribe and the agency in writing of such 20 determination. The tribe or the agency shall have thirty days 21 within which to satisfy the default. Upon a failure of the tribe 22 or agency to do so, the Secretary may- 23 (1) declare such tribe to be ineligible for further 24 housing assistance from the fund; HR 5988 III PAGENO="0027" 19 18 1 (2) take any other action to satisfy the default as 2 may be otherwise authorized by law; or 3 (3) attach tribal or appropriate individual trust 4 funds as provided and authorized in section 205 of this 5 title: Provided, That the Secretary may exercise this 6 authority only after all other reasonable action has 7 been exhausted. 8 SEC. 212. (a) The agency shall be responsible for the 9 implementation of monitoring and construction inspection 10 procedures necessary to assure the Secretary of satisfactory 11 quality control and fund utilization, including compliance 12 with the minimum housing standards and the approved draw- 13 ings and specifications of a project. When the Secretary de- 14 termines that the monitoring and inspection procedures are 15 not adequate, he shall initiate action to assure implementa- 16 tion of such procedures by the agency as a requirement for 17 continuation of the project. 18 (b) The technical staff of the Indian Health Service 19 within the Department of Health and Human Services shall 20 be responsible for providing written recommendations to the 21 Secretary with respect to the adequacy of the monitoring and 22 construction inspection procedures of the agency to assure 23 compliance with the minimum housing standards and the ap- 24 proved plans and specifications for each project. HR 5988 IH PAGENO="0028" 20 19 1 SEc. 213. (a) Tribal and agency officials and employees 2 who are responsible for the receipt and disbursement of fimds 3 under this title shall be bonded in an amount not less than the 4 funds obtained in the initial disbursement provided in section 5 206. No such disbursement shall be made until a bond satis- 6 factory to the Secretary is obtained. 7 (b) The agency shall require performance bonds from its 8 contractors except for those projects where settlement is on 9 the basis of turnkey constuction. 10 (c) The agency shall also require irrevocable letters of 11 credit, mechanics' and workmen's lien bonds or a cash equiv- 12 alent from its contractors at the rate of 71/2 per centum 13 above and beyond all the liens of record and a 2½ per 14 centum warranty maintenance bond shall be required of the 15 contractor based upon the construction contract amount. 16 SEc. 214. Maintenance and cost of utilities for the 17 house shall be the responsibility of the participating family. 18 Upon the failure of the family to perform adequate mainte- 19 nance to the extent necessary to prevent health hazard or 20 preserve the capital value of the unit, the agency shall use 21 the reserve for maintenance established by section 210 of this 22 title to correct any deficiencies. At the end of the contract 23 period, the amount remaining in the maintenance reserve ac- 24 count to the credit of the family, excluding any accrued inter- 25 est, shall become the property of the family. HR 5988 IH PAGENO="0029" 21 20 1 SEC. 215. All contracts under this title shall be awarded 2 in accordance with bidding procedures satisfactory to the 3 Secretary and shall result in the judicious use of Federal 4 funds. The agency may formulate an Indian affirmative 5 action plan satisfactory to the Secretary. 6 SEC. 216. A family may, subject to the approval of the 7 Secretary and the agency, sell or purchase a house construct- 8 ed, acquired, or rehabilitated with funds under a project 9 agreement. The minimum sale or purchase price of the house 10 shall be the amount of the principal remaining on the amorti- 11 zation schedule for such house: Provided, That, where a 12 family has a deficit in their reserve for maintenance account, 13 such minimum sale Or purchase price shall be increased by 14 that amount. The minimum sale or purchase price shall be 15 reimbursed to the fund and any amount in excess of the mini- 16 mum sale price shall be the property of the family. 17 SEc. 217. (a) The contractual interest of a family in 18 housing constructed, acquired, or rehabilitated with moneys 19 provided from the fund may be. inherited or assigned: Pro- 20 vided, That heirs, devisees, or assignees must agree to 21 assume the responsibilities and obligations under the original 22 contract: Provided further, That an assignee of such interest 23 must otherwise be eligible for assistance under this title. HR 5988 IH PAGENO="0030" 22 21 1 (b) Abandoned houses shall revert to the agency and 2 shall be available to another eligible family under a new 3 housing assistance contract. 4 Sec. 218. Tribal housing agencies may use funds made 5 available under a project agreement, if the agreement so pro- 6 vides, to assist Indian families in making a downpayment, 7 including closing costs, on standard housing to be financed 8 through other sources of credit. The family shall be obligated 9 to repay such amount, without interest, over a period of not 10 to exceed ten years. Exclusive of closing costs, assistance 11 provided under this section shall not be in excess of 10 per 12 centum of the purchase price of the house. 13 SEc. 219. If an agency, in establishing the adjusted 14 family income of an applicant family, determines that the 15 income of such family is sufficient to support the payment of 16 a reasonable economic rent, the agency shall acquire such 17 family to provide evidence that at least two lending institu- 18 tions in the area making home mortgage loans has rejected 19 loan applications submitted by such family before the family 20 is eligible for housing assistance under this title. 21 SEc. 220. There is hereby authorized to be appropriated 22 for the purpose of carrying out the provisions of this title, 23 without fiscal year limitation, $100,000,000 in fiscal year 24 1983; $200,000,000 in fiscal year 1984; and, annually there- 25 after, such sums as may be necessary which, when added to HR 5988 ill PAGENO="0031" 23 22 1 the total residual receipts and other deposits paid into the 2 fund during the preceding fiscal year, will restore the balance 3 in the fund to $250,000,000 at the beginning of each fiscal 4 year. 5 TITLE ffl-INDIAN HOUSII~G LOAN GUARANTY 6~ FTIND 7 SEC. 301. In order to provide access to sources of pri- 8 vate financing for Indian families who otherwise would not be 9 eligible for housing credit because of Federal laws restricting 10 mortgage or other encumbrance of trust land, there is hereby 11 established an Indian housing loan guaranty fund (hereinafter 12 referred to as the "guaranty fund") as provided in section 13 3llofthistjtle. 14 SEC. 302. The Secretary is authorized to guarantee not 15 to exceed 100 per centum of the unpaid principal and interest 16 due on any loan made to an Indian for the acquisition or 17 construction of a standard house on trust land. Such loans 18 may be secured by a mortgage executed pursuant to the Act 19 of March 29, 1956 (70 Stat. 62; 25 U.S.C. 483a); by an 20 appropriate lien on a leasehold in trust land; or by an assign- 21 ment of income from trust land or other assets. 22 SEC. 303. Loans guaranteed pursuant to this title shall 23 bear interest (exclusive of premium charges for guarantee 24 and service charges, if any) at a rate agreed upon by the 25 borrower and the lender and determined by the Secretary to HR 5988 HI PAGENO="0032" 24 23 1 be reasonable, but which is not more than that being charged 2 in the area by lenders for home mortgage loans without a 3 guaranty or insurance by a Federal agency or instrumentali- 4 ty. 5 S~c. 304. The Secretary shall fix such premium 6 charges for the guarantee of loans as are in his judgment 7 adequate to cover expenses and probable losses, and deposit 8 receipts for such charges in the Guaranty Fund. 9 S~c. 305. the application for a loan to be guaranteed 10 hereunder shall be submitted to the Secretary for prior ap- 11 proval. Upon approval, the Secretary shall issue a certificate 12 as evidence of the guaranty. Such certificate shall be issued 13 only when the Secretary determines there is a reasonable 14 prospect of repayment. 15 SEC. 306. Any loan guaranteed hereunder, including 16 the security given therefore, may be sold or assigned by the 17 lender to any financial institution subject to examination and 18 supervision by an agency of the United States or of any State 19 or the District of Columbia. 20 SEc. 307. Any loans guaranteed hereunder shall be re- 21 stricted to those made by a financial institution subject to 2~ T examination and supervision by an agency of the United 23 States, a State or the District of Columbia and to loans that 24 meet the following requirements: BR 59S8 Ill PAGENO="0033" 25 24 1 (1) the maturity of any loan guaranteed hereunder 2 shall not exceed thirty-three years; 3 (2) loans guaranteed hereunder may be made by 4 any lender satisfactory to the Secretary except loans 5 insured or guaranteed by an agency or instrumentality 6 of the Federal Government or made by an organization 7 of Indians from funds borrowed from the United States 8 shall not be eligible for guarantee hereunder; 9 (3) the liability under the guaranty shall decrease 10 or increase pro rata with any decrease or increase in 11 the unpaid portion of the obligation pursuant to the 12 provisions of the loan agreement; and 13 (4) any loan made by any national bank or Feder- 14 al savings and loan association, or by any bank, trust 15 company, building and loan association or insurance 16 company, authorized to do business in the District of 17 Columbia, at least 20 per centum of which is guaran- 18 teed hereunder, may be made without regard to the 19 limitations and restrictions of any other Federal statute 20 with respect to (i) ratio of amount of loan to value of 21 property, (ii) requirement of mortgage or other secu- 22 rity, (iii) maturity of loans; (iv) priority of lien; .or (v) 23 percentage of assets which may be invested in real 24 estate loans. HR 5988 III 18-934 O-83---3 PAGENO="0034" 26 25 1 SEc. 308. Whenever the Secretary finds that any lender 2 or holder of a guaranty certificate fails to maintain adequate 3 accounting records or to demonstrate proper ability to service 4 adequately loans guaranteed or to exercise proper credit 5 judgment, or has willfully or negligently engaged in practices 6 otherwise detrimental to the interests of a borrower or the 7 United States, the Secretary may refuse, either temporarily 8 or permanently, to guarantee any further loans made by such 9 lender or holder, and may bar such lender or holder from 10. acquiring additional loans guaranteed hereunder: Provided, 11 that the Secretary shall not refuse to pay a valid guaranty on 12 loans previously made in good faith. 13 SEc. 309. (a) In the event of a default on a loan guaran- 14 teed hereunder, the lender holding the guaranty certificate 15 must notify the Secretary of the default in writing and may 16 thereupon proceed under either of the following methods for 17 obtaining payment under the guaranty- 18 (1) the lender may initiate foreclosure proceedings 19 in a court of competent jurisdiction after providing 20 prior written notice of such action to the Secretary and 21 upon a final order authorizing foreclosure by such a 22 court and upon submission to the Secretary of a claim 23 for payment under the guaranty, the Secretary shall 24 pay to such holder the full pro rata portion of the 25 amount guaranteed plus reasonable fees and expenses HR 5988 HI PAGENO="0035" 27 26 1 as approved by the Secretary: Provided, That the Sec- 2 retary shall be subrogated to the rights of the holder of 3 the guaranty and receive an assignment of the obliga- 4 tion and security; or 5 (2) without seeking a judicial foreclosure or in the 6 event that a foreclosure proceeding initiated by or on 7 behalf of the lender as authorized under paragraph (1) 8 above continues for a period in excess of one year, the 9 lender may submit a claim for payment under the guar- 10 antee: Provided, That the Secretary shall only pay to 11 such holder for a loss on any one loan an amount equal 12 to 95 per centum of the pro rata portion of the amount 13 guaranteed; Provided further, that the Secretary shall 14 be subrogated to the rights of the holder of the guaran- 15 ty and receive an assignment of the obligation and se- 16 curity. 17 (b) Upon receipt from the lender of a notice of default, 18 the Secretary may, in his sole ~1iscretion, accept assignment 19 of such loan if such action is determined by the Secretary to 20 be in the best interest of the United States and shall there- 21 upon pay to the holder the pro rata portion of the amount 22 guaranteed and shall be subrogated to the rights of the holder 23 of the guaranty and receive an assignment of the obligation 24 and security. HR 5988 IH PAGENO="0036" 28 27 1 (c) Before any reimbursement is made under subsection 2 (a) above, all reasonable collection efforts shall have been 3 exhausted by the lender. Upon reimbursement, in whole or in 4 part, to the lender, the note or judgment evidencing the debt 5 shall be assigned to the United States and the lender shall 6 have no further claim against the borrower or the United 7 States. The Secretary shall then take such further collection 8 actions as may be warranted. 9 SEC. 310. Any evidence of guaranty issued by the Sec- 10 retary shall be conclusive evidence of the eligibility of the 11 loan for guaranty under the provisions of this title and the 12 amount of such guaranty. Such evidence shall be incontesta- 13 ble in the hands of the bearer and the full faith and credit of 14 the United States is pledged to the payment of all amounts 15 agreed to be paid by the Secretary as security for such obli- 16 gations: Provided, That nothing in this section shall preclude 17 the Secretary from establishing, as against the original 18 lender, defenses based on fraud or material misrepresentation 19 or bar him from establishing by regulations in force on the 20 date of such issuance or disbursement, whichever is earlier, 21 partial defenses to the amount payable on the guaranty. 22 SEc. 311. (a) There is hereby created an Indian housing 23 guaranty fund which shall be available to the Secretary as a 24 revolving fund without fiscal year limitation for carrying out 25 the provisions of this title. The guaranteed loan program HR 5988 SR PAGENO="0037" 29 28 1 under this title shall be operated separately from the Indian .2 housing finance fund established under title II of this Act and 3 no funds designated for one program may be transferred to 4 the other program. There is authorized to be appropriated 5 not to exceed $2,500,000 in fiscal year 1983; $3,000,000 in 6 fiscal year 1984; $3,500,000 in fiscal year 1985, 1986, and 7 1987; and thereafter such sums as may be necessary to main- 8 tam a guaranty fund balance of $20,000,000. 9 (b) The Secretary may use the guaranty fund for the 10 purpose of fulfilling the obligations with respect to loans 11 guaranteed under this title, but the aggregate outstanding 12 principal amount guaranteed by the Secretary shall be limited 13 to $400,000,000 or such lesser amount as may be provided 14 in appropriations Acts. 15 (c) All funds, claims, notes, mortgages, contracts, and 16 property acquired by the Secretary under this section, and all 17 collections and proceeds therefrom, shall constitute assets of 18 the guaranty fund. All liabilities and obligations of such 19 assets shall be liabilities and obligations of the guaranty fund. 20 The Secretary is authorized to make agreements with respect 21 to servicing loans acquired or guaranteed under this title and 22 to purchase such guaranteed loans on such terms and condi- 23 tions as the Secretary may prescribe. 24 (d) The Secretary may utilize the guaranty fund to pay 25 taxes, insurance, prior liens, expenses necessary to make HR 5988 IH PAGENO="0038" 30 29 1 fiscal adjustments in connection with the application and 2 transmittal of collections, and other expenses and advances to 3 protect the Secretary for loans which are guaranteed under 4 this title or held by the Secretary, to acquire such security 5 property at foreclosure sales or otherwise, and to pay admin- 6 istrative expenses. 7 TITLE IV-~HSCELLANEOUS PROVISIONS 8 SEc. 401. (a) The Secretary shall establish in the 9 Bureau of Indian Affairs an Office of Indian Housing Pro- 10 grams which shall be vested with the primary responsibility 11 for administering the programs created by this Act. The 12 Office of Indian Housing Programs shall be under the super- 13 vision of a Director of Indian Housing Programs who shall be 14 under the immediate supervision of the Assistant Secretary of 15 the Interior for Indian Affairs. 16 (b) The authority to approve applications as provided in 17 section 203, execute project agreements as provided in sec- 18 tion 204, approve loan guarantees under title 1111, and to al- 19 locate and assign personnel of the Office of Indian Housing 20 Programs within the administrative structure of the Bureau 21 of Indian Affairs shall not be delegated below the Office of 22 the Director of Indian Housing Programs. 23 (c) Funds appropriated under authorization of this Act 24 shall include employee costs and other administative ex- 25 penses of the Office of Indian Housing Programs. Annual HR 5988 !H PAGENO="0039" 31 30 1 appropriation requests for the Office of Indian Housing shall 2 specify the number of employees by location, employee costs 3 and related administrative expenses. Funds made available for 4 such purposes shall not be available for any other purposes. 5 SEC. 402. (a) The Secretary is authorized to provide 6 technical assistance to Indian tribes to assist them in devel- 7 oping tribal housing plans, preparing and submitting applica- 8 tions for financing, and implementing housing programs 9 funded under this Act. 10 (b) The Secretary shall provide for the establishment of 11 a training program to develop an understanding by the par- 12 ticipating families of the respective roles and responsibilities 13 of the tribal housing agency, the Federal Government, and 14 the participants under titles I and II. Such program shall 15 include basic home maintenance training for participating 16 families. 17 (c) Not to exceed 1 per centum of the funds appropriated 18 under authority of titles I and II may be used to provide the 19 technical assistance and training authorized by this section. 20 SEC. 403. The Indian Health Service in the Depart- 21 ment of Health and Human Services shall be responsible for 22 the provision of water and sanitation facilities for houses con- 23 structed, acquired, or rehabilitated with assistance provided 24 under this Act. The Secretary shall coordinate with the Sec- HR 5988 IH PAGENO="0040" 32 31 1 retary of Health and Human Services with respect to such 2 activities and responsibilities. 3 S~c. 404. All-weather access roads to multiunit proj- 4 ects constructed under this title shall continue to be provided 5 by the Secretary through existing road programs and authori- 6 zations. 7 S~c. 405. The Secretary shall conduct a biannual hous- 8 ing inventory of current Indian housing needs and conditions 9 to be used as a basis for determining housing. assistance needs 10 for the purposes of sections 202 and 203 of this Act. The 11 Secretary shall submit a copy of such inventory to the 12 Congress. 0~ HR 5988 IH PAGENO="0041" 33 BACKGROUND ON ILR. 5988 THE "INDIAN HOUSING ACT OF 1982" H. R. 5988 provides for the creation, in the Bureau of Indian Affairs, of a comprehensive Indian housing program to provide financial assistance to Indian families who are otherwise unable to secure adequate housing. Because of the legal and historical evolution of the special, unique re- lationship between itself and the Indian tribes, the United States has, over the years, assumed a responsibility to assist Indian tribes and their members in obtaining basic human services and meeting basic human needs. The wide range of economic and social programs made available by the Federal government to Indian tribes through the Bureau of Indian Affairs, the Indian Health Service, and other federal agencies have been founded upon this legal and moral obligation. There are nearly 270 Indian tribes, ranging in size from fewer than a hundred members to several thousand members, which are recognized by the Federal government and the members of which are eligible for the many Federal programs. In addition, there are scores of native villages in Alaska for whom the United States has a similar obligation. These tribes and Native villages receive little, if any, financial aid through the states and local government. Except for their own scarce funds, they are totally reliant upon the Federal government for basic government needs. Included in those needs is housing assistance. The service population of the Bureau of Indian Affairs is approaching 1,000,000 people. The Bureau of Indian Affairs estimates that, as of the beginning of 1981, this population comprises 165,000 families. These families are living in approximately 136,400 housing units, 59,600 of which are in substandard condition. Many are two or three room houses of tar paper or like construction housing 10 or more persons. In some cases, they are no more than car bodies. 36~o of all Indian families are now living in substandard housing. PAGENO="0042" 34 Over 43% of Indian housing is in a substandard condition as compared with only 12% for the rest of the Nation. The deplorable state of Indian housing derives primarily from three causes. First, unemployment and poverty is the norn on most Indian reservations. The overwhelming majority of Indian families exist at or below the poverty level and unemployment rates of 50% or more are coomon. Indian people simply cannot afford housing. Secondly, Indian reservations are remote and geographically isolated. The general lack of housing in rural America is magnified on Indian reservations. The general unavailability of mortgage credit in rural areas is an unflexible rule on Indian reservations. In addition, the support facilities of water, sanitation, and roads are totally inadequate. Finally, the trust or restricted nature of Indian lands, both tribal and individual, make the extension of private credit, even with Federal subsidies or guarantees, wholly unrealistic. In 1937, Congress enacted national housing legislation which set as a goal the attainment of a safe, decent, and sanitary house for all Americans. Com- prehensive Federal housing assistance programs were developed to achieve that goal, with a primary emphasis on the housing needs of the urban areas. It was not until the mid-l960's that Indian tribes were deemed eligible to apply for this assistance and it was not until the early 1970's that the HUt) Indian housing program began to be available to meet Indian housing needs. Since then, Indian tribes arid people have received most of their housing assistance from the flU)) public assisted housing program. Through February, 1981, nearly 39,000 units were made available for occupancy from the liii)) Indian housing program. This primary source of funding has been supplemented by funding from PAGENO="0043" 35 the BIA's Housing Improvement Program for housing repair and minimal new con- struction; by minimal financing from BIA's credit program; arid by a few houses being financed through conventional financing. While serious problems have been identified in the implementation and administration of the HUB Program on Indian reservations, it has met Indian housing needs with some degree of success. However, the HUB public assisted housing program, including the Indian program, has been targeted by the Administration for termination. The Administration has charged that this program, and in particular, the Indian part, is excessively costly. This is based upon the deep principal and interest subsidy feature of the HUD program. For instance, the 4,000 units set aside for Indian housing in the fiscal year 1982 HUB budget requires the obligation of the United States to $703,000,000 over a 30 year period. This cost coupled with charges of waste and inefficiency in the program and the operating subsidies, including utilities and maintenance, has led the Administration to target the program for elimination. In line with this decision, the Administration has requested no money for FY 1983 for the program. H.R. 5988 was developed by the Committee staff working with various elements of the Indian coimminity and the Federal agencies. It was developed under the general direction of the Chairman and was based upon the Indian hou~ing oversight hearing held by the Committee on April 3, 1982. H.R.5988 establishes programs designed to meet the housing needs of three identified income levels on Indian reservations. First, the bill gives a statutory basis to BIA's Housing Improvement Program in order to make housing available to Indian families who have no ability to pay for their own housing or who, because of extreme geographic isolation or other extreme circumstances, simply cannot PAGENO="0044" 36 housing. The HIP program would simply provide these families with housing by a grant. It is estimated that between 20 to 30 per cent of Indian families would be in this category. Title II of the bill would establish a Indian Housing Finance Fund to provide housing assistance to Indian families who, because of their income level, have some ability to pay for their housing, but who could not realistically support a full mortgage payment. Financing would be made available to Indian tribes to provide housing assistance to its members. Assisted families would be required to make payments to the tribe based upon their ability to pay. After the deduction of administrative expenses, insurance premiuns and a maintenance reserve charge, the balance of these payments would be returned to the Indian Housing Finance Fund to be available for other Indian tribes. The title imposes sanctions on both the tribe and the individual for failure to pay. It is estimated that 60 to 70 per cent of Indian families are in this category. Title III seeks to provide housing assistance to that 10 per cent or less of Indian families who have income sufficient to support an average house mortgage, but who, because of the trust nature of their land cannot get a mortgage loan. For these families, the bill would provide a Federal guaranty for their loan. PAGENO="0045" 37 SECTION-BY-SECTION ANALYSIS OF H.R. 5988 SECTION 1 Section 1 cites the act as the "Indian Housing Act of 1982'. SECTION 2 Section 2 contains congressional findings and declarations relating to Indian housing needs. SECTION 3 Section 3 contains definitions of various terms and concepts of the Act. TITLE I: INDIAN HOUSING IMPROVEMENT PROGRAM SECTION 101 Subsection (a) provides for the establishment of an Indian Housing Improvement Program to make housing grants and assistance available. Subsection (b) provides that such grants and assistance shall be made available to assist Indian families of very low income who would not be eligible for other assistance under this Act or because of extremely isolated circumstances. Subsection (c) provides that the Secretary can provide such grants or assistance by direct grants to individuals, through Indian tribes, by contract with private firms, or directly through the Bureau of Indian Affairs (BIA). Subsection Cd) provides that, where such assistance is made available through an Indian tribe, the tribe is authorized, in its discretion, to require assisted families to pay a small monthly payment to the tribe to be used for other tribal housing programs. SECTION 102 Subsection (a) provides that grants or assist~1nce can be used to (1) make minor repairs to substandard housing for health or safety purposes until standard PAGENO="0046" Q housing can be made available; (2) to make major `repairs or renovations to existing substandard houses which can be economically placed in a standard condition; and (3) finance new construction or acquisition of standard housing. Subsection (b) provides that insurance shall be required for new housing or housing receiving major repairs unless waived by the Secretary. SECrION 103 Subsection (a) provides that, where a house constructed, acquired or subj ect to major repair under this title is located on trust land, the Secretary may not approve a sale or lease of that land unless the provisions of section 104 are met. Subsection (b) provides that where such assisted housing is located on fee lands, the Secretary mist insure that a lien is recorded on such lands noting the encumbrance of section 104. SECTION 104 Section 104 provides that a house constructed, acquired, or the subject of major repair under this title may be sold. However, the Indian family would be required to reimburse the United States out of the proceeds based upon the value of the assistance provided reduced 10% each year. In addition, if the house is located on tribal land, the tribe is given the right of first refusal on any sale. SECTION 105 Section 105 authorizes not to exceed $30,000,000 to be appropriated, without fiscal year limitation for each fiscal year. TITLE II: INDLAN EK)(JSING FINANCE FUND SECTION 201 Section 201 provides for the establishment of an Indian Housing Finance Fund to assist Indian families in financing construction, acquisition, or major PAGENO="0047" 39 rehabilitation of standard housing for Indian families who are ineligible for assistance under the guaranteed loan program of title III, but who can contribute something to their housing costs. SECTION 202 Section 202 provides that an Indian tribe, in order to be eligible for housing financing under this title, must prepare and submit a tribal housing plan to the Secretary for approval and further provides that the plan must contain certain minimum information. SECTI~~ 203 Subsection (a) provides for the submission of applications for financing to the Secretary and notes minimum data required in such application. Subsection (b) lists non-exclusive factors to be considered by the Secretary in evaluating and approving applications. Subsection (c) provides that a tribal application must establish or designate a Tribal Housing Agency to administer the program. Subsection (d) provides that the Secretary should encourage, but may not require, multi-tribal applications where necessary to achieve economy of scale. SECTION 204 Section 204 provides that, after approval of an application, the Secretary and the Tribal Housing Agency shall enter into a Project Agreement which sets out the terms of the housing project. SECTION 205 Subsection (a) authorizes the Secretary, notwithstanding any other law, to attach tribal or individual trust funds solely for the purpose of this act. Subsection (b) requires that the Project Agreement must contain specific agreement of the tribe that their trust funds will be subject to attachment PAGENO="0048" 40 if they fail to make payments as agreed and that they must agree to require families assisted with funds under this title to agree that their funds will be subject to attachment for failure to make agreed-upon payments Subsection (c) provides that the Secretary may not refuse to provide financial assistance solely because a tribe or Indian has no trust funds. Subsection (d) establishes the procedures the Secretary must follow in attaching trust funds which provides the tribe or Indian with due process. SEC~IGN 206 Subsection (a) provides that an initial disbursement from the Finance Fund can be made under a Project Agreement for start-up costs in an amount not to exceed $50,000 or 2% of the total. Thereafter disbursements ~euld be based upon percentage completion of the project. Subsection (b) requires a separate account to be established by a Tribal Housing Agency for such funds. Subsection (c) requires that all housing units under a Project Agreement to be placed under contract by the Agency within one year with a possible 90-day extension. If they are not, the cost of such units would be returned to the Fund or credited against the tribe's future allocations from the Fund. SEO~ION 207 Section 207 provides that the Agency must submit final plans and specifications for the project to the Secretary for approval 120 days after the initial dis- bursenient of funds. The plans and specifications must meet minimum requirements of the Act. SEOI~ 208 Subsection (a) requires a Housing Agency to obtain either a fee title or a lease in the lands to be used for housing. PAGENO="0049" 41 Subsection (b) provides that, if the land is tribal or individual trust land, the Agency must secure a 25 year lease with option to renew for 25 years. hhere the land is fee, the Agency must secure a fee title. In each case, it must be at no cost to the Agency. Subsection (c) authorizes the Secretary, in certain cases, to permit project funds to be used for land purchase. SECTION 209 Subsection (a) provides that the Tribal Housing Agency and an Indian family approved for assistance must enter into a Housing Assistance Contract, in which the Agency will agree to provide the requested housing assistance. Subsection (b) provides that the family shall agree, in such contract, that it shall make available its lands if requested by the Agency, shall make certain monthly payments to the Agency based upon its ability to pay in an amount not to exceed the amortization payment for such house and not less than a certain minimum payment, shall accept responsibility for utilities and maintenance, and shall subject the trust funds of adult members to attachment. Subsection (c) provides that, at the end of the contract period, if the family is current on its required payments, the Agency will transfer ownership of the house to the family and the lands will revert to their former status. Where the lands are tribal trust lands, the house will still belong to the family and the tribe cannot deny them the use of the land without making an offer to pay fair market value for the house. SECTION 210 Section 210 provides that the Project Agreement shall require each assisted family to make at least a minimum monthly payment which is tO be composed of an administrative charge to be determined by the Secretary and used by the Agency for administrative purposes; a premium for insurance; and a contingency reserve for maintenance determined reasonable by the Secretary. The contingency reserve 18-934 O-83----4 PAGENO="0050" 42 for maintenance is to be deposited in an interest-bearing account to be used by the Agency, principal and interest, for maintenance perposes as provided in section 214. SECTION 211 Subsection (a) provides that the Agreement shall require the Agency to establish an account for residual receipts which shall be the monthly payment of the assisted families minus the minimum payment to be retained by the Agency. Subsection (b) provides that the Agency shall deposit the residual receipts into the Fund quarterly. Under any Proj ect Agreement, the initial residual receipt payment shall be as determined by the Agency based upon an audit or as agreed to by the Secretary. Thereafter, residual receipt payment shall be as determined by an independent audit. Subsection (c) provides that payments by an Agency shall not fall below 90% of what is due. If they do, the Secretary shall notify the Agency and the tribe of such a default and they shall have 30 days in which to rectify the matter. If they do not, the Secretary may (1) declare the tribe ineligible for further aid under the title, (2) take any other action which is authorized by law; or (3) attach tribal or individual funds, as warranted. Attachment of trust funds can only be done as a last resort. SECTION 212 Subsection (a) provides that the Agency will be primarily responsible for establishing necessary monitoring and inspection procedures on any project work. If the Secretary determines that such procedures are not adequate or are not being implemented, he is required to take such action to assure that this is so, including stopping the project. PAGENO="0051" 43 Subsection (b) imposes an obligation on the Indian Health Service, using existing resources, to make recommendations on the adequacy ot the Agency's procedures and implementation. SECTION 213 Section 213 requires various necessary bonds and liens to be required by the Agency and its contractors. SECTION 214 Section 214 provides that the cost of utilities and maintenance shall be the responsibility of the families and if they fail to maintain the house to the extent that health is endangered or the value of the house imperiled, the Agency can use the reserve for maintenance to correct deficiencies. It further provides that the balance in a family's reserve account, less accrued interest, shall be theirs at the ~d of the contract period. SECTION 215 Section 215 provides that Agencies shall let contracts with bidding procedures satisfactory to the Secretary and would permit them to establish Indian affirmative action programs. SECTION 216 Section 216 authorizes the family to sell or purchase a house under this title, but further requires the family to pay back the balance of the principal on the amortization schedule of the house, including any deficit the family may have in their maintenance reserve accounts. The sale price in excess of that amount is the property of the family. SECTION 217 Subsection (a) makes provision for the inheritance, devise, or assignment of a family's contractual interest in the house during the contract period. PAGENO="0052" 44 Subsection (b) makes provision for abandoned houses to revert to the Agency for re-assignment. SECTION 218 Section 218 authorizes the Agencies, if approved by the Secretary, to use Project funds to provide Indian families with down payments on a housing mortgage and provides that the amount most be paid bac%-, without interest within ten years. The døwn payment, exclusive of closing costs, can not exceed 10% of the cost of the house. SECTION 219 Section 219 requires a family which could otherwise bear a reasonable mortgage to obtain evidence of at least two denials of their mortgage loan application before becoming eligible for assistance under this title. SECtION 220 Section 220 authorizes the appropriation of $100,000,000 for FY 1983, $200,000,000 for FY 1934, and such sums as are necessary thereafter to maintain the Fund at $250,000,000. TITLE III: INDIAN HWSING GUARPr~TrY FUND SECTION 301 Section 301 pi~ovides for the establishment of an Indian Housing Loan Guaranty Fund to guarantee mortgage loans of Indians living on trust lands. SECTION 302 Section 302 authorizes the Secretary to guarantee not to exceed 100% of such a loan and provides that such loans may be secured by certain mortgages or other liens authorized by law. SECTION 303 Section 303 provides that loans guaranteed shall bear interest as agreed by the parties, but not more than the Secretary determines is being charged in the area for other non-guaranteed loans. PAGENO="0053" 45 SECTION 304 Section 304 authorizes the Secretary to fix charges for guarantees and to deposit such receipts in the Fund. SECTION 305 Section 305 provides that applications for guarantees must be sUbmitted to the Secretary for prior approval and that the Secretary shall issue a certificate of guaranty only when there is a reasonable prospect of repayment. SECTION 306 Section 306 provides that a maker of a guaranteed loan can sell the loan to a financial institution subject to examination by the United States, a state, or the District of Columbia. SECTION 307 Section 307 provides that loans can only be guaranteed when made by a lender subject to the same examination and to loans which mature in not to exceed 33 years; which are not guaranteed by other Federal agencies or made by an Indian tribe to its members; which provides that the liability under the guaranty shall decrease or increase as the unpaid portion of the loan fluctuates; and which is not subject to several limitations and restrictions otherwise imposed by Federal latq on lending institutions. SECTION 308 Section 308 provides that, where the Secretary determines that a lender or holder of a guaranty certificate fails to maintain certain minimum banking practices, he may refuse to guarantee further loans made by such institution, but must honor any existing guaranty certificates held by such lender. SECTION 309 Subsection (a) provides that, when there is a default on a guaranteed loan, the lender may elect to porsue one of two options: PAGENO="0054" 46 .{1)~ the lender may initiate apprbpri~te foreclosure proc~e4ings in a court of competent jurisdiction, with written notice to the Secretary, and, upon a final order authorizing foreclosure, the lçnder shall be entitled to 100% of the amount due on the loan from the Secretary. The Secretary sha1~ be subrogatedto the lender's rights after payment of the guaranty. (2) the lender may iianediately seek reimbursement from the Secretary under the guaranty without foreclosure proceedings, but will be limited to 95% of the amount due. Subsection (b) providus~that the Seetetary, in his discretion, may accept an assigrmont of the loan from a lender when it is in default if that is in the interests of the United States. The Secretary shall pay the amount due and shall be subrogated to the rights of the Thhder. SubsectiOn (c) provides that all reasonable collection efforts most be used before rembursemnt is available. Upon such payment, the note must be assigned to the United States and the lender shall have no further claim against the United States. SECTION 310 Section 310 provides that the certificate of guaranty shall be conclusive evidence of the eligibility of the loan for guaranty and the full faith and credit of the United States is pledged to the payment, but the Secretary shall have all the legal defenses against the original lender arising out of fraud or misrepresentation. SECTION 311 Subsection (a) provides for the establishment of the Fur~I as a revolving fund without fiscal year limitation. The Guaranty Fund is to operate separately from the Finance Fund established by ~tle II and the funds are not to be mixed. PAGENO="0055" 47 $2,500,000 is authorized for FY 1983; $3,000,000 for FY 1984; $3,500,000 for FY 1985, 1986, 1987; and thereafter such sunis as are necessary to maintain the fund at $20,000,000. Subsection (b) provides that the fund may be used to guarantee loans in the aggregate amount of not to exceed $400,000,000. Subsection Cc) defines the assets and liabilities of the (liaranty Fund and authorizes the Secretary to make agreements to service loans acquired or guaranteed under this title. Subsection Cd) authorizes the Secretary to use the fund to make various required payments such as insurance or taxes, to acquire security property at foreclosure sales, and for administrative expenses. TIThE IV: MISCELLANE(XJS PROVISIONS SECTION .401 Subsection (a) provides for the establishment of an Office of Indian Housing Programs in the 8ureau Of Indian Affairs to administer housing programs established by this Act. The Office is to be heeded by a Director subject to the imediate supervision of the Assistant Secretary for Indian Affairs. Subsectith (b) provides that certain basic authorities and powers under the Act and the authority to assign and állotate personnel shall hot ~e delegated below the Director of the Office of Indian Housing Programs. Subsection Cc) provides that employee costs and other administrative expenses shall be paid out of funds authorized by this Act, that the annual appropriation request for such funds most specify employees, location, and related administra~ tive expenses, and that the funds may not be used for any other p.irposes. SECTION 402 Subsection (a) authorizes the Secretary to use the Fund to provide technical assistance to Indian tribes. PAGENO="0056" 48 Subsection (b) requires the Secretary to establish training programs for assisted families, including a home maintenance program. Subsection (c) authorizes the use of not to exceed 1% of the funds for those pirposes. S~TICt~ 403 Section 403 provides that the Indian Health Service shall be responsible for providing sanitation facilities for housing developed under this Act and that the Secretary shall coordinate his activities with the Secretary of Health and Hunan Services in this respect. SECFIW 404 Section 404 requires the Secretary to provide all-weather access roads to nulti-unit projects under this Act as he currently does for the hiD program. SECFION 405 Section 405 requires the Secretary to conduct a biannual inventory of Indian housing and to submit a copy of stEh report to the Congress. The CHAIRMAN. Before hearing from our witnesses today, I would like to make a brief comment or two as sponsor of this legislation. As the witnesses in the Indian community are fully aware, the Department of Housing and Urban Development under its public housing program has been the major provider of desperately needed Indian housing for the last 20 years. While there has been some clearly justified criticisms of HUD's Indian housing program, it has done a credible job of meeting Indian housing needs. I would like the witnesses here today and other concerned par- ties to clearly understand that I am not proposing the elimination of the HUD Indian housing program, nor its transfer to the Interi- or Department. The bill which I have introduced, H.R. 5988, does not provide for the elimination of the HUD program or for its transfer to Interior. If it is possible to continue the HUD program, despite the admin- istration's firm commitment against it, and if this is what the Indian tribes want, I will work with them now as I have in the past. Nevertheless, the administration is determined to eliminate the program, according to present indications, and unfortunately they have a pretty good batting average up here. They have not offered a clear alternative for Indians, but have floated some vague alter- natives which, in my judgment, are not realistic in terms of meet- ing Indian needs. I understand that there is some tribal skepticism about this bill, perhaps to the point of opposition. I understand that some of the tribal housing authorities have been noting opposition, probably at the urging of some of the regional HUD people. I would urge the Indian tribes and the leaders of various Indian organizations to examine very closely the present state of Federal PAGENO="0057" 49 Indian housing programs and to examine very closely this bill before they reject it. Even though we think it is a fine solution to Indian housing needs on its own merits, it may well be the only alternative that you have this year. Mr. Bereuter, do you have any opening comments or remarks? Mr. BEREUTER. Yes; thank you, Mr. Chairman. First, I would like to commend you for bringing this legislation to the attention of the committee and your cosponsorship with Mr. Williams, Mr. Kildee, and Mr. Santini. It is innovative. We need to make some changes in Indian housing programs so that those housing programs can better serve the needs of Native Americans. - I am enthusiastic about some parts of the bill, and yet undecided about other parts. So I look forward to the testimony that we are going to receive from the witnesses here today and in further as- sisting you in examining this legislation. Thank you, Mr. Chairman. The CHAIRMAN. The gentleman from Nebraska, as I have indicat- ed previously, has been a true friend of our Indian people and has been a real stalwart here in our committee this year and in the Congress trying to develop effective Indian legislation. I under- stand the misgivings he has and the Support he may or may not have of various elements of the bill, but we will work together. Mr. BEREUTER. Mr. Chairman, if you will yield, it is not misgiv- ings at this point, just uncertainty. The CHAIRMAN. I understand. We will work closely with you as we try to develop some alterna- tive programs this year. We are going to hear today from some of the national Indian or- ganizations, and we will begin first with Mr. Elmer Savilla, who is executive director of the National Tribal Chairmen's Association. Mr. Savilla, we are delighted to have you with us again, and we would be pleased to hear from you. [Prepared statement of Elmer Savilla may be found in appendix I.' STATEMENT OF ELMER M. SAVILLA, EXECUTIVE DIRECTOR, NATIONAL TRIBAL CHAIRMEN'S ASSOCIATION Mr. SAVILLA. Thank you, Mr. Chairman. Mr. Chairman and members of this committee, it is a pleasure to be able to provide you with the views of the elected leadership of the federally recognized tribes on this important proposed legisla- tion which, if enacted, would provide the tribes with the means to work toward meeting the needs of adequate housing. But before continuing in my testimony, I would like to express our deep appreciation to the entire committee staff for their efforts in developing this proposed bill. Mr. Chairman, it has only been slightly more than 10 years since the Indian tribes have been able to take advantage of the public assistance housing program, but it was during this same period that other types of community development programs were made available to tribes. PAGENO="0058" 50 The resultant surge in reservation development did encourage a migration or return of relocated urban tribal members who had longed to return home. Consequently, the need for adequate hous- ing stayed at a high level, and the HUD-operated Indian program has not, since then, been able to meet the still serious deficiency of reservation housing stock. In the fall of last year, it was made known that the administra- tion and HUD would seek to phase out the Indian housing program and proposed, instead, to use a form of block grant and a voucher system for housing programs on reservations, and while there have been some persons who purported to speak for the tribes and had endorsed the use of block grants and vouchers, I would like to make it crystal clear here that the Tribal Chairmen's Association does not now and has never endorsed that concept. The Indian Housing Act of 1982 would provide a much more de- sirable and fair alternative. So contrary to administration hyper- bole, block grants would not allow a greater flexibility in meeting local housing needs, and, instead, we believe would create addition- al problems. There are other reasons why block grants for housing are not feasible, and rather than go through the liturgy of those, which I think you know, it is our hope that this committee will encourage the Congress to provide a continuity of housing construction. In January of 1982, the Board of Directors of NTCA declared that the National Tribal Chairmen's Association has patiently and diligently and in good faith worked for a recognition by the admin- istration of the need for a continuation of the HUD Indian housing program, and in spite of meetings and conferences, the administra- tion has forged ahead with their own plans to eliminate the Indian housing program. Additionally, the NTCA called upon the administration to con- vene a meeting to discuss a mutually agreeable plan for Indian housing, but to this date we have received no reply to our request. So we must now assume that our pleas and requests have fallen on deaf ears, which are aggravated by a lack of concern. Therefore, it is encouraging to us to be presented this opportuni- ty to discuss with you today this proposed act. It is, to us, a shining ray of hope in an otherwise dark future. The recommendation of the National Tribal Chairmen's Associ- ation is that this committee move for passage of this bill in the Congress. However, while recommending the bill, we do have several condi- tions, naturally, that we wish to address. Our first concern is that the construction of Indian housing should not be stopped, and if the legislation is enacted, it is likely that there could still be a con- siderable time lapse before the program could actually be operable within the BIA. We think it is obvious that the BIA now has more operational problems than they can presently manage. While we will pursue efforts to convince the administration to continue the HUD Indian program for at least 1 more year as a stop-gap measure, we feel that the act should contain language that would, number one, man- date that the Secretary should meet a timetable for program start- up. PAGENO="0059" 51 Two, provide for an appropriation of advanced funds specifically for skeleton staffing to develop regulations, develop operational and administrative plans, and to insure as much as possible that problems which were inherent in the HUD operations would not occur in this program. If proper care and planning occurs, then the program could be fully operational according to a timetable. We feel that such language would be helpful in convincing the administration of the feasibility of a 1-year extension of the HUD program. To continue, we ask that section 3 under 5 be amended to read, and I will not go through that, but the language that we propose is the same as contained in Public Law 93-638, which is the Indian self-determination language. This is the same language in Public Law 93-638, and the definition of "Indian," et cetera, would not differ from the established and congressionally accepted meaning. It is our goal that all Indian-oriented legislation should be con- sistent in this area. Section 3 under 9(u), (iii), and (iv) should be amended to reflect the use of the U.S. Uniform Code for heating, plumbing, sewers, and electrical rather than the ambiguous reference to local codes, which could conceivably lead to local jurisdictional problems, espe- cially in those States subject to Public Law 83-280. The U.S. Uniform Codes now offer minimum standards which are accepted in many rural areas. Section 3 under 11 would be deleted as it is covered in section 3(5) amendment above. Title 1, the Indian housing improvement program, it would seem consistent with the intent of the act to have housing assistance under this title, that is, section 101, to flow through the tribal gov- erning body or, if designated, the tribal housing agency. Section 101 under (c)(3) provides for the Secretary to bypass the local authorities, that is, the tribal agency or the tribal council, and to contract with private construction firms. We recommend that this authority should remain with the tribal government or their tribal agency. Section 103(b) provides for a lien to be placed on fee land, making it subject to foreclosure and sale. This seems to be highly unnecessary for repairs to a dwelling and could be detrimental to Indians, especially in the State of Oklahoma, where there are no reservations. We recommend that the term "major repairs" be defined as cost- ing over $10,000. In a case of foreclosure, whether on fee land or on tribal land, the tribes should have the right of first refusal, and that is under section 104 and provides for right of first refusal only on tribal lands. Continuing to title 2, the Indian housing finance fund, in section 203(c), it should be made clear that it is the intent of the act, in our view, that the tribal housing agency should be directly responsible and answerable to the tribal government in all matters. In the HUD program, a major problem developed because of the autonomy practiced by many Indian housing authorities and which seemed to be encouraged by HUD in many cases. When troubles PAGENO="0060" 52 erupted and when scapegoats were identified, the bottom line was that the tribal governments were ultimately responsible. Therefore, this act should be explicit in where the authority and responsibility lies, and that is with the tribal government. During 1981, the greatest improvement of problem Indian hous- ing authorities were those where the local tribal goverment reas- sumed or asserted their operational control. Section 205, we believe, needs more in-depth study and research. This deals, of course, with the question of the Secretary being al- lowed to attach tribal trust funds, and I believe that the committee assumed that there would be some controversy over this, and there is. The idea of mortgaging the tribe's trust funds is a new idea which the tribes will probably not accept readily, even to build houses. On the face of it, we would reject the provision of allowing the Secretary to attach trust funds, especially because the act is not yet explicit as to what remedies can be employed before the at- tachment would take place. Generally, even State laws allow procedures which give the debtor, in some cases, up to a year to redeem. So we request that we be allowed to submit a more detailed statement and recommen- dation on this crucial issue at a later date. The Chairman. We would welcome that. We are going to try to develop some alternatives, some amendments and modifications, and the specific kinds of things you are giving us now are very val- uable, and we will take a look at them and work with you to see if we can put some consensus together. Mr. SAvIu~A. Thank you. In section 215 of title 2, in accordance with local self-determina- tion and the stated federalism philosophy of greater local control, it seems only proper that the tribal government should have the authority to approve an affirmative action plan, not the Secretary. So we recommend that the words "the Secretary" be stricken and replaced with "the tribal government." Title 3, the Indian housing loan guarantee fund, while we are in favor of establishing a program under this title, we suggest that it might not be adequately funded at the proposed levels for fiscal year 1983 through fiscal year 1987. The $2.5 million for fiscal year 1983 would provide approximately 50 houses nationwide at an esti- mated $50,000 each and approximately 75 houses for the other years. Administrative overhead would reduce this accordingly. For the obvious reason of administrative cost versus results, it would seem that a larger appropriation request would be more cost-effective. I realize that a budget conscious Congress might frown on this, but it does not seem to make good sense to operate a program which only builds 50 houses nationwide each year. Therefore, we recommend that the appropriation request be at least doubled for each of the funding years and until the fund bal- ance of $20 million can be maintained. Mr. Chairman, this concludes my testimony on this subject today, but before I leave, I do want to leave with you and your committee the best regards and appreciation from our President, Chief Phillip Martin, and from our board of directors, who are all PAGENO="0061" 53 duly elected tribal chairmen, for your past and present concern and consideration for Indian affairs. Thank you. The CHAIRMAN. Thank you very much. I intended to announce earlier in my opening statement that we are planning to move ahead fairly rapidly on this matter. It seems that many of the Indian tribes and some of my colleagues want to have field hearings. We will have at least one field hearing. We have set the date of the 24th of April in Rapid City for a field hear- ing on this matter. I wanted to announce that to the folks here today and to my colleagues. Mr. Bereuter? Mr. BEREUTER. Thank you, Mr. Chairman. Mr. Savilla, I want to thank you very much for your testimony on - this matter. The kind of specific recommendations that you have made here, in addition to your general comments, are really most welcome. That is exactly what we need. I guess the last thing that you said struck me as something that I need to comment on first, and that is your concern about the $2.5 million, I think that concern is perhaps based on a misunderstand- ing. That $2.5 million is not money to be used for home construction. It is the fund for loan guarantee purposes. The construction funds will come from the private sector, and this $2.5 million is the backup at the Federal level for the guarantees of that money. So I would hope maybe you could take a look at that in that light and see if we have not made that clear. We need to make that clear to everybody. The CHAIRMAN. Would the gentleman yield? Mr. BEREUTER. I would be pleased to yield. The CHAIRMAN. I am told by staff that $2.5 million in authoriza- tion will support about $80 million of actual housing construction loans. With a little bit of money you can support many loans from the private sector. Mr. BEREUTER. That is exactly right. I was not sure of the amount, and I appreciate the chairman bringing that specific amount into the discussion. Going back to the beginning of your testimony, you made some comment about the definition of "tribe" on page 5. Under that defi- nition only federally recognized tribes would be recognized for housing assistance. Do you think that State recognized or non-federally recognized should be eligible for assistance under this bill? Mr. SAVILLA. No; the answer to that question, of course, is no. The federally recognized tribes believe that any trust responsibility that the Federal Government has is to the federally recognized tribes and their tribal members. Of course, tribal members, wherever they may live, could include urban areas, but the State recognized and nonrecognized tribes, of course, it is obvious that they are eligible under other titles of Farmers' Home, and so forth, FHA and the other general public as- sistance, if there is one. But the answer to your question would just be a no. PAGENO="0062" 54 Mr. BEREUTER. All right. In your comments a few minutes ago, you addressed yourself to what I think is a very real problem, and that is occasional divisiveness between the tribal housing authority and the tribal council itself. If the tribal council were to designate itself to administer the housing assistance provided under this bill, do you see any prob- lems with the question of liability to suit in the event of an alleged breach of contract by the tribe? Mr. SAVILLA. No; I do not. I think that has to be answered prob- ably in two parts. No. 1, the tribal governments themselves now re- alize that they cannot operate successfully a program and at the same time operate or take care of the tribal business, and they have been delegating these responsibilities to other groups. So I do not think they would undertake operating a housing pro- gram by themselves. I have had this indicated to me by several of the tribal chairmen. Second, I do not think it would pose a problem because they are able to give a limited waiver. In fact, myself, I have used this limit- ed waiver in construction of a local water and sewer project. So in order to get it built, we did have to give that limited waiver, and I do not see any problem there. Mr. BEREUTER. This bill, as I understand it, does not address itself specifically to such a limited waiver, but you feel that it is unnecessary at this point? Mr. SAvILLA. Yes. Mr. BEREUTER. I guess the major point of concern with your testi- mony would be with respect to the recommendations you make which come down to matters of tribal autonomy, and I understand why you feel as you do on that. But we are faced with the situation where, for example, in the State adjacent to my own we have had so many problems with tribal councils being able to supervise adequately the kind of con- struction that is taking place under existing programs and a great difference in capacity among tribes. So I would look for any kind of further elaboration on your argu- ments with respect to your comments on title 1 with respect to the local authority's ability to contract with private construction firms, and section 215 where you prefer the striking of the word "Secre- tary" and replacing it with "tribal government." I guess I would welcome any kind of encouraging or additional support for your concerns in that area, and to eliminate some of the concerns that I might have based upon some of the record we have had with various housing authorities. HUD witnesses have said that a major concern of HUD Indian housing programs has been excessive development costs. As intro- duced, this bill does not set any maximum development cost limita- tions. In your view, should your bill specify maximum development cost limitations? Mr. SAvILLA. No; I do not think so. It is addressed in one section of the act, let's see, where it addresses the matter of the cost of a house should be judicially determined. I do not recall the exact words right now. I do not find it right away, but it is mentioned somewhere where the cost of the house shall be reasonable. PAGENO="0063" 55 As we know, the inflationary cost each year, it is hard to even estimate what a house is going to cost you this time next year, and by putting a limit on it, it might be causing more problems than are needed. Mr. BEREUTER. I know that you are testifying, Mr. Savilla, on behalf of the association, but if I could ask you to make your com- ments based on your experience in your own tribe, do you have any rough idea about what portion of the Indian families on your own reservation or in other areas adjacent to it would be eligible for as- sistance under title 2 and title 3? I am not sure I understand which tribe you are a member of, first of all. Mr. SAvIu~. The Quechuan Indian Tribe. It is near Yuma, Ariz. Mr. BEREUTER. Could you address yourself to that particular situ- ation then, as an example? Mr. SAVILLA. Sure. Under titles 2 and 3, of course, there probably would be on my reservation about a third, I think, of the people that might be able to, as the head of the families, might be able to qualify under titles 2 and 3. Mr. BEREUTER. Now, in contrast, what would be your estimate of families on that reservation that could receive assistance under the Federal Housing Administration or the Farmers' Home Adminis- tration, currently? Mr. SAvILI~. Probably a quarter. Mr. BEREUTER. That is high maybe for some areas, but perhaps not for the Yuma area. Mr. SAV1LLA. Yes; we are fairly close to a sizable city. For the other outlying reservations, the figure would be lower, of course. Mr. BEREUTER. What are the duties of the Indian Housing Au- thority with respect to the HUD projects that are completed on a reservation now, as you understand it? Mr. SAvILr~. The housing authorities, as I understand it, were to do all those things that a normal business does, which are collec- tions and payments and seeing to upkeep, education of the home- owners to maintenance, the whole realm of things that a normal homeowner has to put up with. The housing authorities were to make sure that the Indian homeowners learned these things, and that all these issues were taken care of. Mr. BEREUTER. The chairman is being generous with my time, but I would ask you finally to comment and generalize on what you think the major points of strife are between Indian housing au- thorities and tribal councils where such strife exists from time to time. Mr. SAVILLA. The major difficulty between the housing authori- ties and the tribes stems from a lack of communication and the wish for autonomy. The housing authorities would have preferred to work without strings attached to them, but the point I would like to bring out on that matter is that there is nothing wrong with that, as long as all parties agree that the tribal governments have the ultimate responsibility for debts, repayments. Therefore, the oversight responsibility, some housing authorities refuse to allow that oversight, and that is my main point. The CHAIRMAN. Aren't most of them appointed by the tribal council or the tribal chairman? PAGENO="0064" 56 Mr. SAVILLA. Yes; but they are appointed by the tribal councils, but on many reservations, politically, they tend to lose control. Mr. BEREUTER. It sounds like mayors and city councils to me. The CHAIRMAN. Yes; I have the same reaction. Mr. BEREUTER. Thank you, Mr. Chairman. Thank you. The CHAIRMAN. Thank you, Mr. Savilla. We appreciate your helping us out today here. Mr. SAVILLA. Thank you, Mr. Chairman. The CHAIRMAN. We will now hear from Mr. Roy Cleveland of the Navajo Tribal Housing Authority. Yes, sir, you may proceed. [Prepared statement of Roy J. Cleveland may be found in appen- dix I.] STATEMENT OF ROY J. CLEVELAND, EXECUTIVE DIRECTOR, NAVAJO TRIBAL HOUSING AUTHORITY; ACCOMPANIED BY JOHN SCHUELKE, COUNSEL Mr. CLEVELAND. Mr. Chairman and members of the committee on Interior and Insular Affairs, I sincerely appreciate the opportu- nity to appear today before this committee. My name is Roy J. Cleveland. I am executive director of the Navajo Housing Authority. I have with me members of the board of commissioners and our legal counsel, John H. Schuelke, is sit- ting to my left. Before I go into my statement, Mr. Chairman and members of the committee, I would like to state for the record that the Pueblo de la Laguna in New Mexico have requested that we submit a statement for them; likewise, the Laguna Housing Authority. The CHAIRMAN. All right. We have those statements, and they will be a part of our record. [Prepared statement of Pueblo of Laguna and Pueblo of Laguna Housing Authority may be found in appendix I.] Mr. CLEVELAND. Thank you, Mr. Chairman. We are pleased to be invited to present our position with respect to the proposed Indian Housing Act of 1982. Our presentation will be by way of comments and recommendations to the specific sec- tion of the proposed act. Comment No. 1, there are no provisions for public rental in the proposed act. Recommendation, the present public rental program should be continued with adequate funding to properly address the needs or the proposed act should be expanded to accommodate public rental. Comment No. 2, the proposed act does not address the existing HUD public housing programs which exist in most Indian commu- nities. Recommendation, the HUD Indian housing assistance programs should be continued with sufficient funding to finalization or the act should make provisions to properly handle the present HUD program. Comment No. 3, the act fails to make reference to present laws applicable to labor standards, Davis-Bacon wage requirements, af- firmative action programs, Indian preference, archeological clear- PAGENO="0065" 57 ance, environment statements, contract preference_and other present restrictions. Recommendation, since the act requires the Indian tribe to build a certain number of houses to acceptable, minimum property standards for the gross dollar amount, each tribe should be given the authority to determine which of the present requirements should apply to the particular tribe. Comment No. 4, the act makes no provision for scattered-site housing in remote areas. It requires plumbing and utilities systems for each dwelling unit, which eliminates scattered-site housing as being too costly. Recommendation, the act should relax the minimum property standard in certain exceptional cases to allow construction of dwelling units in remote areas. This could be accomplished by uti- lizing other systems of waste disposal and heating. Comment No. 5, the minimum family size per dwelling provided in the act section 395 appears to be directly related to the dollar allowed for each unit, for each dwelling. Recommendation, if the dollars allowed per unit are related to the family size per dwelling, then the minimum dwelling size should be increased by 33 ~/s to 50 percent. Comment No. 6, title 1, Indian housing improvement program of the proposed act expands the present BIA housing improvement program, HIP, and proposed funding not to exceed $30 million in each fiscal year, beginning in fiscal year 1983. Recommendation, the present BIA budget for HIP programs is $23 million. The $30 million per year is totally inadequate for this program. The majority of the people proposed to be served under this program do not have financial ability to pay. Any charge would create a hardship, not an assistance. Therefore, any requirement of payment by individuals should be eliminated. Comment No. 7, title 1, Indian housing improvement program, section 104, allows the sale of houses under the proposed act. Recommendation, the proposed act should restrict the sale to persons or entities first approved by the tribe to preserve the land status and the control of the lands. Comment No. 8, title 2, Indian housing finance fund is an appar- ent attempt to replace the present HUD mutual help, rehabilita- tion and modernization programs. Section 203 of the proposed act requires submittals of preliminary drawings and specifications with program applications, but fails to provide funding for the prepara- tion of such before approval of the application. Recommendation, preliminary funding should be available to Indian tribes to prepare the necessary submittals to present with the application. Comment No. 9, sections 205 (a) and (b) of the proposed act em- power the Secretary of Interior to attach individual or tribal trust funds held by United States in the event an individual or tribe fails to meet its financial obligation. Recommendation, include suitable provisions to protect due proc- ess requirements and lessen the harsh sanction imposed by the pro- posed act. 18-934 O-83---5 PAGENO="0066" 58 Comment No. 10, section 205(c) prevents the Secretary from rejecting an application because an individual or tribe has no trust funds. Recommendation, this section is patently unfair to individual or tribes with trust funds. It should be changed to treat everyone in the same manner. No trust funds should be subject to attachment. Comment No. 11, the entire sanction provisions of title 2 are very severe. Lessen the severity of the sanctions proposed in the act. Comment No. 12, section 212(b) requires the Indian Health Service to monitor construction inspection. Recommendation, the tribe should be responsible for monitoring inspection of construction. This would eliminate the cumbersome interdepartmental agreements and replace the responsibility with one agency. Comment No. 13, section 213(b) requires a contractor perform- ance bond. Recommendation, require a contractor to provide a 100 percent performance and payment bond from a bonding company on the approved Department of Treasury list of such companies. Also re- quire all other insurance and bonding now required in the present HUD housing construction programs. Comment No. 14, section 220 provides for funding limitation of $100 million in fiscal year 1983 to eventually reach a level of $250 million. Recommendation, the funding request is grossly inadequate. The HUD funding request for fiscal year 1982 is $703 million. $600 mil- lion is a more reasonable and necessary amount. Comment No. 15, title 3, Indian housing loan guarantee fund, under this title of the proposed act, there would be established a loan guarantee program under which the Secretary of the In- terior would guarantee loans to private sources with procedure for foreclosures. Recommendation, these programs should remain with HUD and Agriculture, Farmers' Home. BIA does not have the technical capa- bility in housing insurance. This would establish a new bureaucra- cy for a function already provided. As an alternative, establish an Indian housing direct loan pro- gram in HUD, expand the Farmers' Home program or devise a pro- gram which does not involve the land in the guarantee. Comment No. 16, section 309 provides for foreclosure in the court of competent jurisdiction in the event of default. Recommendation, require the foreclosure in the tribal court. If there is no tribal court, then a court of competent jurisdiction. Comment No. 17, title 3 speaks of foreclosure which implies taking the incidence of ownership through legal proceedings from one and transferring it to another. Recommendation, land is the basis of Indian culture. We suggest land should not be involved in such proceedings. Perhaps land could be eliminated from the guarantee program and trust the loan guarantee would be adequate security. Most tribes now have forcible entry and detainer laws which could be utilized. PAGENO="0067" 59 Comment No. 18, section 311 establishes guarantee fund maximums and limits the aggregate outstanding principal amount guaranteed by the Secretary. Recommendation, create a realistic funding level of at least $50 million. Remove the restriction on the aggregate principal amount the Secretary may guarantee. Comment No. 19, title 4, miscellaneous provisions, section 403 requires the Indian Health Service, IHS, to be responsible for the provision of water and sanitation facilities. Recommendation, one agency should have the responsibility for the entire program. To involve IHS would, again, require a cumber- some triagency agreement which is objectionable. Comment No. 20, section 404 requires all weather access roads through existing programs. Recommendations, the funding for such roads should be ear- marked for access roads to housing projects only. In conclusion, Mr. Chairman and committee members, we have operated a public housing program since 1963. We believe this pro- gram could be less costly and more efficient with proper modifica- tion. The Navajo people comprises almost one-fifth of the entire Indian population. We are very concerned about the continuation of our housing program. Approximately one-half of the entire Indian population resides in the States of California, Nevada, Ari- zona, and New Mexico. We respectfully request a further hearing in respect to Indian housing programs be conducted in either Albuquerque, Phoenix, or Las Vegas, and that the delegated tribal representative be allowed to present testimony rather than other national Indian organiza- tions who do not represent the rural, grassroot tribal members. Thank you. Respectfully submitted, Roy J. Cleveland. Thank you, Mr. Chairman. The CHAIRMAN. Thank you, Mr. Cleveland. What is the current reservation population of the Navajo? Mr. CLEVELAND. 152,000, plus. The CHAIRMAN. Plus what? Mr. CLEVELAND. Plus 864, I believe it was. The CHAIRMAN. As the housing authority for the tribe which is the biggest, most numerous in the whole country, obviously you have a great stake in what we are doing here and the programs we are considering. Could you give me just a quick kind of summary of your housing authority, the Navajo Housing Authority? Last year, how many homes did you fill and hOw many rentals do you have? What is your budget? Give me a general outline of the size of your housing program operated by the Navajo Housing Authority. Mr. CLEVELAND. Mr. Chairman, currently the Navajo Housing Authority has approximately 2,525 units under managment. Ap- proximately half of that is mutual help and the other half is public rental. Currently we have 661 units under construction; 1,366, I believe, are under various phases of development. Last year we had com- pleted approximately 200 units. PAGENO="0068" 60 The CHAIRMAN. How badly is your construction program going to be affected if we do not do something, if present law applies at present appropriations levels? Mr. CLEVELAND. Right now, we are told that the HUD could deobligate themselves on the 1,366 units that is currently under the various phases of development. If that should be the case, Mr. Chairman, that would mean that we would lose another 1,366 units that is already under planning, and that would hurt us tremen- dously. On our reservation, each dwelling unit, the average family per dwelling unit is about five persons. So if that happens, you are talking well over 6,000 families or people that will be without homes. The Navajo Reservation at the present time has a housing need of 10,519 units. The CHAIRMAN. Are the units you have built and are operating, are they pretty well scattered among the Navajo places or are they concentrated in Window Rock and Tuba City and some of your major population centers? Mr. CLEVELAND. They are in the subdivisions, most of your major dense population areas, as you mentioned, Window Rock, Keyanta, Tuba City, Chin Le, and areas like that for the simple reason that in those locations, water and sewer, electricity and other power sources are more readily available than in the remote areas. The CHAIRMAN. Mr. Bereuter. Mr. BEREUTER. Thank you, Mr. Chairman. Mr. Cleveland, thank you for your testimony. Some of the points that you make here, I think, are very important to us and would help us refine the legislation. We have the problem, of course, of dealing with Indian tribes with such diverse capacities in their housing authority programs, and I suspect yours, based upon the size of the tribe and the good things I know about how you run your business, is certainly one of the best in the country. I would say that I gather there is not much about the bill that you like. That is the impression I get. I think if we accepted all of your objections, we would not have a bill we could move through the Congress. Some of the things you are suggesting are clearly out of tune with the direction of things in this country, and we simply could not move it through, and I would hope that there would be a gener- al recognition that Indian housing programs in this country have been very poorly run, in general, and I am not talking about the Indian tribes; I am talking about the administrative structure up here in Washington and the regional offices; and that there is de- clining support for them in the Congress, and that we need to make some fundamental changes. If we do not, we are simply going to have fewer resources for Indian housing programs, and I guess I would encourage you to take a more positive and politically realistic look at some of the recommendations you are making here because if we do not accept some of these changes, we are just not going to have a housing pro- gram for Indians in the future. PAGENO="0069" 61 I welcome any kind of comment you might want to make in re- buttal or in response on that. Mr. CLEVELAND. Mr. Chairman and members of the committee, we felt that the bill in itself is a positive measure. Our recommen- dations are something that we feel should be included in the bill. We, the Navajo Nation, have a great interest in our land. Many people feel that we have a large piece of real estate, but if you really come down to it, we have a large number of people which need a large area to live in. So based on these reasonings, Mr. Chairman, we did not mean to~ be critical, but we felt that these are the things that will have to be addressed, and again, I apologize if the statement appears to be very critical. It was not intended. It was merely recommendations. Mr. BEREUTER. Let me be specific at the risk of offending some people. The idea of us putting Davis-Bacon wage requirements in any kind of legislation and moving it through this Congress is not realistic today. The reverse is true. We are taking it out systemati- cally. I think there is some confusion, too, about the HUD appropri- ation and what period of time that covers. Staff tells me that for fiscal year 1982 we are talking about 4,000 units under the HUD $703 million. That is over a 28-year period, to be specific. The high cost of the HUD program is one reason why we are looking at some way of getting the private sector involved in pro- viding funds for Indian housing. I must say that you have a much higher opinion of the Farmers' Home Administration in dealing with housing programs than I have, and they are extremely active in my State. I have nothing but administrative and bureaucratic grief with them. They are not able to handle that program there. Their agents are not atuned to housing. Even their specialists are not atuned to housing. So I think you overstate the kind of assistance and expertise that the Farmers' Home Administration has in some parts of the coun- try, at least, and I know we all have different experiences. I want to end on a positive note by saying some of the recom- mendations that you make here are very helpful and certainly are on point, and they bring up things that perhaps we had not thought about. Thank you. - Mr. CLEVELAND. Thank you. The CHAIRMAN. Mr. Cleveland, let me ask one additional ques- tion here. I notice on your letterhead that the main office of the Navajo Housing Authority is in Window Rock, and you list project offices, seven or eight of them on the side of your letterhead, which is the cover sheet of your testimony here. How many employees do you have total in Window Rock, and then if you could give me' an idea of the aggregate number for the other project offices listed? How many employees are there cur- rently? Mr. CLEVELAND. The Navajo Housing Authority currently em- ploys 123 persons. Out of the 123, approximately 45 persons are sta- tioned in Window Rock, and the remaining are stationed in the various suboffices that we have as listed on the letterhead. PAGENO="0070" 62 The CHAIRMAN. Just an average then, you have six, eight, or nine in each of these project offices? Mr. CLEVELAND. In each of these project offices, yes, sir. The CHAIRMAN. All right. I guess that is all I have. Thank you very much for being with us today. Mr. CLEVELAND. Thank you, Mr. Chairman and members of the committee. The CHAIRMAN. We will now hear from Mr. Ron Froman of the National American Indian Housing Council. [Prepared statement of Ronald Froman may be found in appen- dix I.] STATEMENT OF RONALD FROMAN, BOARD MEMBER, NATIONAL AMERICAN INDIAN HOUSING COUNCIL Mr. FROMAN. Thank you, Mr. Chairman. The CHAIRMAN. Thank you, sir, and you can proceed. Mr. FROMAN. Mr. Chairman and members of the committee, we are pleased to testify on the Indian Housing Act of 1982. First, the National American Indian Housing Council would like to express our deep appreciation to you and the other members of this committee for your support over the years on our behalf. We are especially thankful for your assistance this last year in dealing with the 1982 HUD housing appropriations. Absent your efforts, it is our firm belief that the HUD Indian housing program would have suffered an early death, and who knows how many Indian families would have suffered as a conse- quence. We feel your concern further manifests itself in the Indian Hous- ing Act of 1982. The act is a daring, innovative and cost-conscious concept, while at the same time, long overdue, and you are to be commended. For the last year we have seen a critical examination of the HUD Indian housing program with the professed goal of making the program more cost-effective, more simple, and improving the program's integrity. As so often is the case, it is easier to criticize, but much more difficult to do something about it. To accomplish these goals, appar- ently HUD is proposing a program based primarily on section 8 voucher type of system under the handle of certificates. We consider this totally unrealistic since such a program de- pends upon the availability of existing rental units, which we all know are simply not available in Indian areas. In addition, the certificate program, in our opinion, would be more complex and more costly than the present HUD program. The Indian Housing Act of 1982 shows that the committee has maintained the history of the Indian housing effort. To paraphrase a famous quote, congressional committees who do not study their history are doomed to repeat it. Well, it is quite evident that there is no danger of that occurring with this act. For the first time, we have a proposed Indian housing program designed for the special needs of Indians and not an aber- ration of some existing urban program. PAGENO="0071" 63 The need for such a program has been well documented by past testimony. We commend the committee for taking into account the past testimony and incorporating such into the act. We believe this act accomplishes those goals mentioned above. This act consolidated the program into two agencies, requiring the same authorizing and appropriations committees. No longer will we have to deal with the much criticized triagency agreement or the myriad of congressional committees. Also, the Congress will not be put into an embarrassing posture of one agency requesting funds, the other agency requesting no funds, with the Indians and the field bureaucrats trying to make sense out of it all. The present HUD Indian housing program requires 16 separate committees. This alone will make this act much simpler to admin- ister. The revolving loan fund established by title 2 of the act will result in diminishing financial involvement of the Federal Govern- ment and is in tune and makes more sense in these times of dimin- ished resources. It also answers one of our major concerns of a long-term commitment of the trustee. Why shouldn't we make the payments made by the Indians work for the program, as well as the taxpayers? Section 206 of the act may cause many tribes to have reserva- tions about risking their trust funds in the event of nonpayment. Without question, this section will greatly enhance the program's integrity. Of greater importance to us, no longer will one tribe op- erating its program effectively suffer the consequence of another tribe's transgressions. Put simply, only the tribal government itself has the authority to carry out its responsibilities, and where they do not, then only that tribe alone should suffer the consequences and be held accountable to its tribal members. Ultimately, the long-term economic development impact of the act may be its most meaningful feature. Low income housing alone, by definition, limits its impact upon economic development activi- ties. Housing opportunity for a broad range of incomes and eco- nomic development are synonymous. Absent one or the other, nei- ther can go forward with any assurance of success. Today, economic development and the resulting jobs are woefully lacking in Indian areas. This act, if passed, will finally put in place the basic ingredient so vital to this activity and heretofore absent. The inclusion of rehabilitation as an eligible item under all titles of this act will lower the unit cost and will enable the tribes to house more people than thought possible with the same amount of money under the HUD Indian housing program. No longer will a $10,000 to $20,000 problem result in us razing a house and building a $50,000 house in its place. All of the forces, such as maximum payment, lower payments on rehabilitated houses and simplicity of program design, work towards a more judi- cious use of Federal funds. This act does not give the Indians an open checkbook. Section 405 requires the Department of Interior to report to the Congress biannually a housing inventory. This has never been required. The PAGENO="0072" 64 inventory will greatly assist the Congress in determining need and the subsequent appropriations necessary to meet that need. Section 405 will also assure, as far as is possible, a fair allocation of housing resources to the tribe. In conclusion, we stand ready to assist the committee in this en- deavor. If ultimately we fail and no housing program remains, the lifestyle of the reservation will remain bleak and may become in- tolerable. We hope we are not reverting to that forgotten area of Federal Indian policy many of us refer to as benign neglect. That concludes my statement, and I would be glad to answer any questions. The CHAIRMAN. Thank you for a very excellent statement. Mr. Bereuter. Mr. BEREUTER. Thank you, Mr. Chairman and Mr. Froman, thank you very much for illuminating some of my concerns about the direction or nondirection of Indian housing programs in the future. Your last few comments, I think, summarized my concerns and the need to look closely at something innovative. I would like to get specific with you concerning development costs. HUD witnesses have said a major concern with the Indian housing programs run by HUD has been exceSsive development costs. As introduced, this bill does not set any maximum development cost limitations. In your view, should the bill specify maximum de- velopment costs limits; and if so, why; if not, why not? Mr. FROMAN. I am not sure it should. I think you have to look back as to what caused maximum development costs. Under the HUD program, we had a maximum number of units that we could build for the dollars allocated. Under this act, we have a minimum amount of units that can be built for the dollars allocated. In years past, under the HUD program, x number of dollars would come out to a tribe to build, say, 100 units, whatever it was, and if the tribe, after they went through the whole process, if there was any money left on the table, it went back. So all the forces under the HUD program were to spend the money. Mr. BEREUTER. There was no incentive. Mr. FROMAN. There was never any incentive for a tribe to maxi- mize the units and the dollars because they could not do it. It was forbidden. Under this act, we are talking about a minimum number of units that has to be built. There is no maximum. Under the HUD pro- gram, you had a maximum that could be done under the dollars. So what HUD testifies to is correct. The concerns over the life of the program were the excess development cost. Bear in mind that throughout the region of the country under the HUD program, ev- erybody knew exactly how much money they got at the time the units were allocated to them. So a tribe would go to an architect and say, "Here's how much money I've got. Design me 100 houses." The architect says, "Well, my fee is 7 percent." The architect is not going to leave anything on the table. He is going to design a house to get 7 percent of the total money up front. He knew what he was going to get from the beginning. PAGENO="0073" 65 This program does not work that way. So we are talking about reversing the forces, and in the part in my statement where I say all the forces of this act will be worked for a more judicial use of the funds, that is my firm belief. Now, we would not necessarily have any objection to setting a maximum. Maybe there should be. I am not sure, but I think the forces of the thing are such that the marketplace will work and we get it done. Mr. BEREUTER. Thank you. I think your comments on that are very well taken. My limited experience certainly bears them out. On pages 4 and 5 under the definition of standard housing in sec~ tion 395, there are minimum unit size requirements laid down, but there are no maximum size limits per unit. HUD officials have cited Indian pressure for, quote, larger than necessary dwelling units as a factor leading to the higher cost. From your experience, would you comment on the need, if any, for including maximum dwelling sizes in the bill? Could you also comment on what has been described as Indian pressure for larger than necessary housing units? Mr. FROMAN. I think I just finished that comment. The whole comment of the thing is that if you have the next number of units, you know, if you specify the minimum number of units that has to be done, you have prior approval with the program itself now. That can be handled at that stage. Now, maybe we would be too trusting of the persons operating the program. Mr. BEREUTER. Are you saying that the tendency was then to in- crease the size of the dwelling, as opposed to using it in other areas? Mr. FROMAN. You could not use it in other areas. You could not. Mr. BEREUTER. You could not use it? Mr. FROMAN. So you increased the size of the unit. You increased the prerequisite of that unit. In other words, in many cases I think some of the tribes have built basements and so forth and so on, and this was an idea. HUD had maintained a size limit. Mr. BEREUTER. Rather than changing housing materials, con- struction materials. Mr. FROMAN. Changing or fixing a square foot maximum for so many persons in and of itself does not hold down ~development costs, because we could go in with a gold plated toilet, for instance, or what have you. So the square foot cost alone will not or the square foot maximums alone will not hold down cost. It will help, but by itself will not do it. Mr. BEREUTER. I have a copy here of HUD's minimum property standards, and indeed, they are very, very detailed. Do you~ think this bill should require the use of these minimum property stand- ards? The bill provides for waiver of its minimum standards. Do you think we should even reference the HUD standards, or should we specifically suggest that something else may be appropriate? What is your opinion on the minimum property standards? Mr. FROMAN. I will go back to the comments that we have heard over the years from various members of the tribes, and that is, No. 1, they do not like the minimum property standards because it PAGENO="0074" 66 deals in bedroom sizes and so forth, and to many of the tribes this has created a heck of a problem in some of the northern areas where some of the tribes like open housing, for instance. They like open structures within the system. It also has created a monstrous problem in the beginning in Alaska. The minimum property standard in Alaska, it was a mon- strous problem in the beginning, and finally after they operated up there for 6 or 7 years, they finally recognized that the MPS was a problem for them, and about 3 to 4 years ago-my dates may be wrong, but it was no longer than that-they finally got a waiver on MPS so that it would allow them to build up there because the MPS in Alaska and in cold regions and so forth is just simply im- practical. It does not make any sense. Mr. BEREUTER. Thank you. I would say to the chairman and for the record here that looking back to my experience in January, I met first with the people from HUD's Honolulu area office before visiting our trust territories and the flag territories out there. The people in the Honolulu office have been trying for years in the course of three administrations to get approval on waiving the minimum property standards. Nobody is willing to put his name on the line, and therefore, we continue, contrary to the best advice of the HUD people in Honolulu, to build housing in our trust territor- ies and in our flag territories, like Guam, which is extremely ex- pensive, inappropriate for the climate, inappropriate for the cul- ture. We have provided waiver opportunities for them, but nobody wants to put his name on the line on the waiver. So we have to do something else, it seems to me, besides providing some weak kind of waiver provision that nobody is willing to use. I think there are some things in that situation that are very rele- vant to what we are proposing to do for Indian housing, and I wanted to bring that example to the attention of the committee. The CHAIRMAN. I thank the gentleman. Mr. BEREUTER. I thank you for your testimony. Mr. FROMAN. Thank you. The CHAIRMAN. Thank you, sir. Mr. FROMAN. Mr. Chairman. The CHAIRMAN. Yes. Mr. FROMAN. I would like to ask the committee's indulgence for just a few minutes. I talked with the chief last night, and he asked me if I could to make a few comments. It will only be a short state- ment, if I could please. The CHAIRMAN. All right. We are going to run out of time here in a little, but go ahead. Mr. FROMAN. All right. The Creek Nation, in speaking in their behalf, stated that if they had a choice between the continuation of the HUD public housing program or this bill, that they would take this bill for the following reasons. One is that they feel that they have run the program according to Hoyle, and yet that is not taken in account, and they are going to be suffering under some of the transgressions of other tribes, and so forth, as far as the maximum development cost, as far as PAGENO="0075" 67 the management of those programs, and they want to be held ac- countable on their own merit, and they feel that many people will suffer because of what has transpired. M~ny good employees will, but ultimately it will be the Creek Indian himself living in the blackjack that is going to suffer. Thank you. The CHAIRMAN. Thank you, sir. Now we will hear from Mr. Gene Thompson of the Cherokee Tribal Housing Authority. [Prepared statement of Gene Thompson may be found in appen- dix I.] STATEMENT OF GENE THOMPSON, EXECUTIVE DIRECTOR, CHEROKEE TRIBAL HOUSING AUTHORITY; ACCOMPANIED BY NATHAN YOUNG, DEPUTY DIRECTOR AND COUNSEL Mr. THOMPSON. Thank you, Mr. Chairman. The CHAIRMAN. Thank you, sir. You may proceed. Mr. THOMPSON. On my left is Nathan Young, the deputy director and legal counsel. We want to thank, Mr. Chairman, the committee for giving us an opportunity to speak in regard to the Cherokee Nation Housing Authority of Oklahoma. Our area of operation is in 14 counties in northeastern Oklaho- ma. At the present we have 3,600 units. That includes 2,200 mutual help, 1,000 low rent, and approximately 600 section 8. We have on record 2,500 unsolicited applications for housing, and we serve 42,000 Cherokees in this area, and which 75 percent of these homes are substandard, and 20 percent of all the adult males are unemployed, and 50 percent of the adult males working make less than $5,000 annually. We have been dug at, more or less, by HUD by saying that we have high cost of management and construction cost. I am speak- ing with regard to the Cherokee Housing Authority. We just completed 220 units with the average cost of $41,200, which is much less than what has been quoted before, and in the last 2 years, we have reduced our staff by 25 percent, and we real- ize that on accounts receivables, which a lot of digs have been made that we had to do something on our own, in January of 1980, our accounts receivables were 39 percent, and we attacked it like a business matter, and we are down to 6 percent for accounts receiv- ables averaged in the last 9 months. We have gone over the bill, and we like the idea of putting the responsibility on to the tribe, and which we consider an improve- ment over the HUD programs because of their overregulations, and also we like on the bill the unification of all three phases, the rehab, the HIP program and revolving funds and the loan guaran- tee. Also, we like the ability to monitor these programs by having annual audits, and by having moneys, we will be able to increase the number of units by having competitive bids, and what we are planning on doing is called force account building. Some of the changes in the bill we would like to see is to recom- mend that the housing authorities with the ability to have a force PAGENO="0076" 68 account system and the BIA personnel, we recommend that they would consider hiring some HUD personnel who have had the ex- pertise in the building. There are some good HUD people. We do urge that you consider this bill because the need is far from being met in our community. Thank you. The CHAIRMAN. Thank you, sir, for your statement. Mr. Bereuter? Mr. BEREUTER. Could I defer? I am trying to catch up here, Mr. Chairman. The CHAIRMAN. Without objection, we will have your full state- ment put in the record. I have glanced over it, and it looks like you have some very good material and some very specific suggestions, which are welcome. Mr. THOMPSON. Thank you, Mr. Chairman. The CHAIRMAN. Hold it just a minute. Mr. Bereuter is getting his act together here. Mr. BEREUTER. I am getting my act together. Mr. THOMPSON. Yes, sir. Mr. BEREUTER. Thank you, Mr. Chairman. I appreciate very much your comments about force accounts. I think that language regarding force accounts would be an addition to the bill that probably would be a good idea. Would you elaborate on this method, and could you suggest spe- cifically what language we might include in the bill? Perhaps you might want to do that at a later point. Mr. THOMPSON. I would prefer a later point on that. I will have this guy handle it. Mr. BEREUTER. I understand we are talking about the use of tribal personnel, for example. Mr. THOMPSON. Yes, sir. Mr. BEREUTER. Not necessarily members of any official entity of the tribe, but simply using your own labor resources, your own equipment to make a contribution toward that. Mr. THOMPSON. That is correct. Mr. BEREUTER. Do you feel that is something that would not now be provided by the bill as written? Mr. THOMPSON. Yes; we feel like it should be more specific to bring this out. Mr. BEREUTER. Would you limit it to equipment and time of tribal council employees or would you try to open it up to equip- ment that might be provided by individual members of the tribe and time of individual members of the tribe that might be hired for that purpose? Mr. THOMPSON. We would have to talk to the principal chief on that, but at present on our force account and the ones that we have, the tribe is involved on different phases of it, but also we do have competitive bidding on subcontractors and this type of things; their expertise, and we feel that we can construct the houses for as much as 15 to 20 percent less. Mr. BEREUTER. There are many precedents in Federal programs for the use of force accounts, but in all those instances that I am familiar with, a specific statutory provision must be provided to use force accounts. PAGENO="0077" 69 For instance, in the old HUD open space land program, it was specifically authorized in the statutory language. Cities and coun- ties made exceptional use of force account to meet their share of the total project cost, and I think the taxpayer was the beneficiary. So I welcome your recommendation on this and would look for specific suggestions for bill language. Mr. THOMPSON. OK. Mr. BEREUTER. Thank you. Mr. THOMPSON. Thank you, Mr. Chairman. The CHAIRMAN. Our last witness today is Mr. Harold Wilson, Housing Assistance Council. [Prepared statement of Harold 0. Wilson may be found in appen- dix I.] STATEMENT OF HAROLD 0. WILSON, EXECUTIVE DIRECTOR, HOUSING ASSISTANCE COUNCIL, INC. Mr. WILSON. Thank you, Mr. Chairman. The CHAIRMAN. Thank you, Mr. Wilson. We have your state- ment, and it will be made part of our record, and we would be glad to hear any comments you may wish to make. Mr. WILSON. Thank you very much. I would like to make a brief summary statement of the remarks, of the written statement, that you have. First, I would like to introduce Ms. Virginia Spencer on the staff of the Housing Assistance Council, who is an Indian housing spe- cialist with our organization. I would like to thank you for the opportunity to appear before the committee and express our views on the current legislation, and let me commend the committee for your excellent work on behalf of the Indian communities and for your timely consideration of this bill. There is no other group in our Nation more in need of housing assistance than American Indians, and it is a well documented fact that they suffer the lowest incomes, the fewest economic and edu- cational opportunities, the highest mortality and morbidity rates, and the worst housing of any group in the United States. Almost half of all Indians live in substandard housing conditions, which wreak a terrifying emotional and social toll on their lives, resulting in expenses to society far beyond the cost of providing decent housing assistance. As you are aware, the administration response to this condition has been the proposed elimination of the Indian housing program and zero funding for the Indian Health Service water and sanita- tion facilities program. Programs that are being suggested in their place, as you have al- ready heard this morning, are totally inappropriate for Indian res- ervations. We would like to strongly urge that the Indian housing program be preserved at a minimum yearly level of 4,000 units. Even though the program has had its problems, it has developed over 40,000 badly needed units of housing and developed and supported a housing delivery structure that is crucial to Indian communities. PAGENO="0078" 70 If it is not possible to keep this program, however, then we strongly urge the passage of the Indian Housing Act of 1982 as a viable alternative. In fact, Mr. Chairman, I would like to suggest that Indians need all of the resources that they can muster at the present time, and both programs would certainly not represent too much assistance to Native Americans in our society today. In this context, let me highlight a number of the recommenda- tions made in our written statement. First of all, we would like to make sure and suggest that the act not exclude Indians from being eligible for other federally assisted housing programs. In spite of the fact that the Farmers' Home Administration program has not been completely successful or effective on Indian reservations, we would like to make sure that this program is not considered the only program that Indians would be eligible for, and I am sure the committee had nothing of that in mind, but we wanted to make that statement anyway. Second, we would like to suggest that the assistance provided by the program be extended to those Indian tribes that are only State recognized at the present time. They are eligible currently, as I un- derstand it, for the HUD programs, and we would like to under- stand that all of the Indians eligible for the HUD programs would also be eligible under this program, as well. In addition, we would like to recommend the addition of a provi- sion for operating expenses should that become necessary or possi- ble under this act. We have a concern under title 2 that the pro- gram might not be able to reach the very low income American In- dians on reservation, and we would like to see within the bill at least the possibility of providing a deeper subsidy to those Indians perhaps some time in the future. In addition, we would like to suggest that there be some kind of limit or cap set for the administrative charge, which is to be a part of the minimum payment. We would like to see the committee put some thought into what kind of charge that ought to be and what level it ought to represent. We also suggest that under the definition of housing, that stand- ard housing would mean a dwelling in a condition which is decent, safe, sanitary, and perhaps the addition of the words "modest in size and design" so that it then meets the following minimums that are set out in the bill. In conjunction with that, to assist in keeping development costs down, it might also be possible for the bill to strongly suggest that prototype projects be designed with plans, with specifications, with quantity takeoffs and so forth, and suggested to applying entities in order to cut down both time and cost in the development process, and those obviously would be promulgated under a modest in size and design category. Finally, we would recommend that the preliminary planning and administrative fund that is disbursed be limited to around 2 per- cent of the total fund amount. I think some guide needs to be put on the amount of money in the total fund that is going to be used for planning, preliminary planning, and administrative disburse- ments. PAGENO="0079" 71 You certainly do not want a major portion of the fund to be used for simply planning. I would like to also mention and reiterate what Ron Froman stated, that we are very pleased to see that this program is a pro- gram designed with the Indian community in mind. Housing Assistance Council works in rural communities across the United States, and as he indicated, most of the programs that we see used in rural communities are urban designed programs that have been changed a little bit and forced to work in rural communities. We are very pleased to see this committee design a program for the cultural and rural needs of the Indian community. Let me again commend the committee for your concern, and I know you are aware the House Housing Subcommittee has recom- mended retaining the Indian housing program, and perhaps be- tween their effort and your effort there will be the capacity to con- tinue to serve American Indians with some form of housing assist- ance in the years to come. Thank you very much. The CHAIRMAN. Thank you very much. We appreciate the good work your organization does, and we will try to work with you as we develop some legislation this year. Mr. Bereuter? Mr. BEREUTER. Thank you, Mr. Chairman. Mr. Wilson, your comments are very helpful. What was the comment you just made, however, about the House committee on what has approved what? Mr. WILSON. It is my understanding that the Gonzalez bill does contain a provision to continue the Indian housing program. Mr. BEREUTER. But that is a bill that has been introduced. It is not a committee bill. Mr. WILSoN. That is correct. Mr. BEREUTER. As far as any action taken on it. Mr. WILSON. I stand corrected on it, Mr. Chairman. There at least a bill being suggested there that continues the program, yes, sir. Mr. BEREUTER. Your recommendation No. 9 about bonding sounds good but have you looked at the practical problems of the cost of bonding of tribal and agency officials? Sometimes it is really impossible to get these officials bonded. We have that problem occasionally with elected State officials. Mr. WILSON. Yes; we understand that. Ms. SPENCER. We just suggested that the bonding be expanded a little bit to cover people for the residual receipt and maintenance reserve account, and it is not a large amount. The bonding lan- guage is already in there for the initial disbursement of .$50,OIJO, but over time it could be that the maintenance reserve accounts, 10 years down the line, could be quite large, and I think you would want to protect the people who are working there and protect that account. I know it is not easy to get fidelity bonds sometimes. Mr. BEREUTER. You are requiring it though by the language that you suggest. Ms. SPENCER. We are just offering an amendment. PAGENO="0080" 72 Mr. BEREUTER. I know, but this amendment would require the bonding of such officials. Ms. SPENCER. Yes; but it is required in the bill now for the initial disbursement amount. We are just suggesting two minor additions to that. Mr. BEREUTER. I think I see. How do either one of you feel about the applicability of mini- mum property standards to units to be constructed under either title of this act? Mr. WILSoN. I think that we feel in this situation the minimum property standards are probably inappropriate. Mr. BEREUTER. Inappropriate? Mr. WILsoN. Inappropriate. There need to be some kinds of standards, minimum shelter standards or some kinds of standards, used to guide the development of the projects, but I think we would have some concern about the application of the minimum property standards. Mr. BEREUTER. What do we hitch our wagon to then with respect to the minimum property standards' replacement, whatever that might be, as minimum shelter requirements? Do you know of an appropriate standard that we might reference in the legislation or should we develop one in the course of requiring Interior to move ahead with this program if the bill is enacted, or what do you rec- ommend? Mr. WilsoN. Yes; go ahead. Ms. SPENCER. The standards that are in the bill now represent the standards from the Bureau's HIP program, and I think they are tried and true in Indian country. Hopefully, and we mention in our testimony that it is only a minimum, and we are concerned about quality design and energy efficiency and the ease of mainte- nance. Mr. BEREUTER. So you think they would be sufficient to utilize? Ms. SPENCER. Yes. Mr. WILSON. I would assume they would need some expansion and some work, however. Mr. BEREUTER. Thank you. How do we justify the proposed additional language in the rec- ommendation number seven, "modest in size and design"? What can you say to us that will be helpful in defending the possible in- clusion of those words? Mr. WILSON. The reason we came up with those words is simply the fact that we were trying as we talked about the bill, we were trying to get a sense of what would be built, and we have had an awful lot of experience in construction with the Farmers' Home Administration. The Farmers' Home Administration uses that language as a guide in their requirements, and our sense has been that that has worked fairly well across the United States in the development of the types of housing that Farmers' Home builds. If you used "modest in design" and then developed, as Farmers' Home has done in the past, some prototype plans, some prototype specifications that would go with "modest in design," then I think that would be a way of defining what one would mean by "modest." PAGENO="0081" 73 Mr. BEREUTER. A few minutes ago Mr. Cleveland made some sug- gestions which relate to the autonomy issue and who should have contractual responsibilities, for example, for moving ahead with title 2 programs, and he would prefer the tribal council as opposed to the Secretary. What are your feelings about that? Mr. WILsoN. I think that we would probably defer to the tribal councils and defer to the housing authorities in terms of who should be responsible for those contracts. Mr. BEREUTER. On a case-by-case basis, or are you saying in gen- eral it should be the tribal authority that is contractual agent? Mr. WILSON. No; I think that in terms of my answer to that, I would defer to their knowledge of the situation. I think the only thing that I would add on that is that there ought to be-I do not know what the experience has been with force accounts in terms of contracting and using local construction crews to do work, but I would like to offer some suggestion that the committee look, again, fairly strongly at the possibility of allowing force account activities to take place on reservation. Mr. BEREUTER. Force account, of course, comes from the tribal re- sources or the tribe would regulate, I suppose the word would be, the force account from individual members of the tribe, and there you would have no check on whether or not force account is being used appropriately. Doesn't this really require some sort of supervisory, regulatory role for the Secretary or some other entity outside of the tribe when they use force accounts, because it is an opportunity for great abuse and great savings at the same time, depending on how it is used? Mr. WILSON. Yes; it is an opportunity. It is an opportunity for both, but I would simply suggest that the committee take a good look at the history of force account, and the cost savings and the type of employment that could be created on reservation might well warrant that activity. Mr. BEREUTER. One more question I have. You recommend that the titles 2 and 3 be applicable to State recognized tribes, and that would include State recognized tribes that are not also federally recognized tribes. This whole act is based upon the Secretary's trust responsibility to the federally recognized tribes. So you are proposing to take the Secretary out of his normal trust relationship role when you open it up to State recognized tribes. How do you justify that? Mr. WILSON. I think we approach that simply from a position of equity in the sense that if this is designed to replace the mutual help and the low rent programs that HUD currently administers, then how is one going to care for the other tribes that are recog- nized and can use that program? Mr. BEREUTER. I cannot speak for the authors of the legislation, but I guess it is my understanding that this is not necessarily a re- placement for existing Indian housing programs, although it may be come to be seen by some as a replacement. We are not sure. Thank you, Mr. Chairman. Thank you for the answers. The Chairman. That concludes our hearing this morning, but before we adjourn, I wanted to include in the record a statement of 18-934 O-83--6 PAGENO="0082" 74 Chairman Peter MacDonald of the Navajo Tribal Council discuss- ing this legislation and giving his position on it, and that will be a part of our hearing today. [The prepared statement of Peter McDonald, Navajo Tribal Council, referred to above may be found in appendix I.] The CHAIRMAN. I think we have had a good start here, and I think we are well on the way, if we keep our momentum, to getting something done this year. We are going to make a good try. We thank you all for coming. [Whereupon, at 11:30 a.m., the committee was adjourned, sub- ject to the call of the Chair.] [Additional material received on today's hearing may be found in the general appendix.] PAGENO="0083" INDIAN HOUSING ACT OF 1982 WEDNESDAY, APRIL 14, 1982 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Tucson, Ariz. The committee met, pursuant to notice, at 1:30 p.m., in Salon D, Doubletree Hotel, 445 South Alvernon Way, Hon. Morris K. Udall, (chairman of the committee) presiding. The CHAIRMAN. This is a special hearing of the House Committee on Interior and Insular Affairs, and the committee will be in order. Today is the second day of hearings on H.R. 5988, providing for a comprehensive Indian housing program in the Bureau of Indian Af- fairs. Our committee began hearings on this bill April 1. On April 24, a couple of weeks from now, Congressman Pat Williams of Montana, will chair a field hearing on this same bill to be held in Rapid City, S. Dak. We will have a final day of hearings on April 29, in Wash- ington, D.C., and after that I hope maybe we can sit down and find a consensus and go to work on actual legislation. I realize that hearings on this bill have been greatly expedited and that many of the tribes have had little time to fully formulate a position on the bill. However, if the programs established by this legislation are to be eligible for funding in fiscal year 1983, we are required by the Congressional Budget Act to have the bill reported from the committee by May 15, so I think you can see that we don't really have much time, and that if we are going to do some- thing, we ought to move along. I recognize there are some people who are not yet convinced of the need for doing anything but at least we are going to see if we can develop a consensus on that issue. Today we are going to take testimony from what I hope will be a representative cross section of Indian witnesses from the South- west. Before going to the witnesses, I wanted to make a brief comment as the sponsor of this legislation. As the witnesses in the Indian community are fully aware, the Department of Housing and Urban Development, through its public housing program, has been the major provider of desperate- ly needed Indian housing for the last 20 years. While there have been some clearly justified criticism of the HUD Indian housing program, in many respects it has done a credible job of meeting Indian housing needs and I certainly don't view these hearings or my bill as some attack on the total failure (75) PAGENO="0084" 76 of HUD housing; It has had some good programs and it has done some good things. I want the witnesses here today and other concerned parties to clearly understand that I am not proposing elimination-I empha- size that-I am not proposing elimination of the HUD Indian hous- ing program or its transfer to the Interior Department. The bill I've introduced, H.R. 5988, does not provide for the elimi- nation of the HUD program and it does not provide for its transfer to Interior. If it's possible to continue the HUD program, despite the administration's firm commitment otherwise and if this is what the Indian tribes want, I will work with them now, as I have in the past. Nevertheless, the administration is determined to eliminate the program and they have had a pretty good batting average in this area, unfortunately. They have not clearly offered any alternative for Indians, but have floated some vague alternatives that I don't think are realistic in terms of meeting Indian needs. I understand there is some tribal skepticism about this bill, per- haps to the point of opposition. I understand that some of the tribal housing authorities have been noting opposition, some of them clearly at the urging of regional HUD people, who are worried about some of these programs being taken from their jurisdiction. So I would urge the Indian tribes and leaders of Indian organiza- tions to examine very closely the present state of Federal Indian housing programs and to examine very closely this bill before they reject it. Even though we think it is a fine solution to Indian~ hous- ing needs on its own merit, it may well be the only alternative that you have. I'd simply like to add one other thing. I talked with my staff, and particularly Frank Ducheneaux here, 5 or 6 months ago, after we had held a number of hearings on Indian problems generally. I said I didn't think that we were going to be able to get through the Con- gress in an election year, 1982, very many major changes in Indian programs. I said to Frank Ducheneaux, "What could we do? What is achievable that would have the most impact and maybe give our Indian people the most help of all these programs that are under fire and under attack and either being eliminated or cut back dras- tically?" He talked and I talked to a number of Indian leaders and knowl- edgeable people and we both came to the same conclusion, that housing was the area; that if there was one place we could do something that might stand a chance of getting by the battle of the budget, that it would~ be in the housing area. So this is the origin and history of this bill which we drafted and the bill that we're going to take testimony on today. Interest in this legislation is shown by the presence here today of a lot of people from both House and Senate Indian staffs. Let's identify the staff people who are here. Ms. YOUNGBIRD. Marilyn Youngbird, with Senator Domenici's office. The CHAIRMAN. Glad to have you with us. Ms. BOYLAN. Virginia Boylan, with the minority staff of the Senate Select Committee on Indian Affairs. PAGENO="0085" 77 Mr. JACKSON. I'm Mike Jackson. I am with the minority staff on the Interior Committee. Ms. BROKENROPE. Debbie Brokenrope, of the Interior Committee staff. Mr. MAHSETSKY. Mike Mahsetsky, Senate Select Committee on Indian Affairs. The CHAIRMAN. Frank Ducheneaux, I identified earlier as staff director for Indian matters on my committee. All right, let's go to work. The first witness today is Ms. Harriet Toro, council member, Papago Tribe, a very talented and able lady and a person whom-i have had the pleasure of working with and talking to on these pro- grams. [Prepared statement of Harriet Toro may be found in appendix II.] STATEMENT OF HARRIET TORO, ON BEHALF OF THE PAPAGO TRIBE OF ARIZONA Ms. T0RO. Mr. Chairman, my name is Harriet Toro, a member of the Papago Council, who has been delegated as the official repre- sentative to speak on behalf of the Papago Tribe at these hearings on the Indian Housing Act of 1982. This bill is to provide for an Indian housing program, for con- struction and financing of housing for Indians, and for other pur- poses. We would not like to take a position for or against the bill at this point, although we endorse the concept of the bill. We cannot en- dorse the total bill until further clarification is obtained on certain sections. One concern is whether or not the Bureau can manage a housing program along with its other duties, and will it be handled like all other 638 contracts and their hangups in paperwork? Mr. Chairman, the Papago Tribe has experienced numerous ob- stacles and barriers set up by the BIA that sometimes make it almost impossible to operate under or complete our 638 contracts. Also consideration should be given that many tribes do not relate well to the BIA. Although there are some questions on specifics on all three titles, title II poses the biggest question from our tribe and many others. We are asking for more clarification on the extent of a tribe's commitment of their trust moneys. The objection to this section is almost unanimous. Also, could there be clarification on what happens to tribal land if a family or tribe defaults on any contract? Many tribes also feel that this bill infringes on its tribal sover- eignty. More clarification would be helpful. Mr. Chairman, we agree on the concept of this bill, but there are some requests that we feel should be made. No. 1, the 4,000 units that were allocated and now face a possibil- ity of being rescinded be given to Indian Housing for 1982. No. 2, that housing be kept under HUD with modifications. No. 3, that support be given to this bill if HUD does pull out of Indian housing. PAGENO="0086" 78 No. 4, that the record remain open for at least 30 days to enable the Papago Tribe time to file additional written comments in regard to H.R. 5988. Thank you. The CHAIRMAN. Thank you very much. With regard to your last request, let me say that the record will be kept open. Today is the 14th. If we're going to beat the budget deadline of May 15, we probably ought to hold you to 20 days, so any witness here, any person here, who would like to extend views or give us further information or opinion on this legislation will have 20 days from now, which is roughly May 4 or 5. We will keep the record open for an additional 20 days, and we-would welcome comments you might have on this. Also, all of the statements that are presented here today, includ- ing yours, will be made a part of our official record and I will en- courage all of the witnesses to tell us what's on your mind and your heart and get down to basics. If you have a lengthy statement, you may wish to summari2e it. Ms. ToRo. Thank you very much. The CHAIRMAN. Let me ask Mr. Ducheneaux to comment on something here. You expressed this concern to me when we talked the other day and it's mentioned in your statement: What happens to tribal land if a family or tribe defaults on any contract? This has caused a good deal of concern. What were the argu- ments on this and why did we put it in there, after talking to dif- ferent groups? Mr. DUCHENEAUX. Mr. Chairman, where an Indian tribe, only has tribal lands upon which to build housing or if they choose to build their housing on tribal land, the bill requires that the tribe give a lease on the tribal land for 25 years with an option to renew. This is not different than the current HUD program. HUD also requires the tribe to give a lease on the tribal land. The tribal land would remain tribal in a default situation. It would just mean that for the period of the lease, whoever fore- closed or whoever took the land would have that lease. At the end of the lease period, the land would revert back to tribal ownership just as any other lease of tribal lands. The CHAIRMAN. You were concerned about that, Harriet. Does that answer your question or make you any more comfortable? Ms. ToRo. Yes; I was and we are concerned about it, but still we felt we should include that, as well as some of the other comments that we have already submitted to you. The CHAIRMAN. Let me say to my friends at the table here, it has been the rule. of the House Interior Committee, as Michael and others know, that questions are asked only by Members of Con- gress. I understand they have a different practice on the Senate side sometimes. I have only a limited amount of time this afternoon, but I am not going to enforce that rule. If there are really important things you think we are missing here with the witnesses, give us your opinion or maybe ask a question or two, but I want to move along at a fairly rapid pace here. With that, anybody want to comment or have a question for Har- riet? PAGENO="0087" 79 [No response.] The CHAIRMAN. If not, thank you very much. Ms. ToRo. Thank you. The CHAIRMAN. Mr. Anselmo Valencia, executive director of the Pascua Yaqui's is our next witness. An old friend of mine and a good leader of his people. We are delighted to have you with us today. [Prepared statement of Anselmo Valencia may be found in ap- pendix II.] STATEMENT OF ANSELMO VALENCIA, DIRECTOR, ADMINISTRA- TION FOR NATIVE AMERICANS, PASCUA YAQUI TRIBE, TUCSON, ARIZ. Mr. VALENCIA. Thank you, Mr. Udall, ladies and gentlemen. The CHAIRMAN. We're scheduled to come out to your place to- morrow or the next day and look at some of your housing and other problems. Mr. VALENCIA. Yes, sir. I submitted a lengthy testimony attached to my first statements that I sent in to the Intertribal Council. I would just like to add that the bill is very, very satisfactory, although it does contain some wordings that need clarification for a lot of us Indians. I would like to stress the point, though, that as far as the Yaqui Tribe is concerned, we would like to be funded directly to the tribe because in your visit you will see that we can prove to people-to anybody-that we have built sturdy, well-insulated, well-inspected houses, four-bedroom houses, for $29,000, with a labor cost of $1,300, as compared to contractors who build houses where labor costs them $17,000 to $20,000 plus, and at $50,000 to $56,000 a house. If the Indian tribes learn the HIP program, or really self-help, I mean family-by-family self-help, we would lower that price down to, I would venture to say, $35,000, depending, of course, on the ever-rising cost of materials. Anyway, I would venture that Indian tribes could build very good housing for $30,000, and save our poor people who most of them are on some kind of public assistance, monthly checks, that could not afford to live in $55,000, or $60,000, or $70,000 homes. What is going to happen, the Indian tribe cannot oust their mem- bers out of a house, so therefore the funding agencies, in many cases, would force the Indian tribes to work against their own people, their own relatives. If we were funded directly-even through HIP, we could still save the individual family literally thousands of dollars. Once they sign on the dotted line, they are, so to speak, hooked. But if we do our own, most tribes have people that know con- struction-one phase of construction or another-and in my tribe the only trade that we do not have living within the tribe is sheet- metal workers and we subcontract those out. But if we could build out of frame, out of sunburned adobe, our own adobe, emulsified adobe or whatever, we could still save the individual families who are going to live forever there, whose chil- dren are going to grow in that house, many thousands of dollars. PAGENO="0088" 80 I realize that time is very short and always has been for Mr. Udall-he's a busy man-and so are you, ladies and gentlemen, so I will not stress any other points, and I hope to be able to answer any questions that you ladies and gentlemen may have. The CHAIRMAN. The new area that you have south of Tucson, how many homes do you have now on that piece of land? Mr. VALENCIA. We have 100 and some homes. I've got it in the statement. As usual, I am not a businessman so I never bring a copy for me to read from. But the facts are in the statement. The CHAIRMAN. What kind of sewage facilities do you have? Mr. VALENCIA. Recently our sewer system was completed with IHS funding, very recently, several months ago, and they are work- ing very satisfactorily. Once in awhile we do have problems with the pumps and all that. But with that corrected, we will not have any problems with it. The CHAIRMAN. Is this a leaching field or do you connect up with the city facilities? Mr. VALENCIA. We started out with leaching fields, septic leach- ing fields, but several months ago, our sewer system was completed and it's connected to the county sewer system. The CHAIRMAN. Any comments or questions? [No response.] The CHAIRMAN. Thank you, Anselmo. Mr. VALENCIA. Thank you very much. The CHAIRMAN. We will now hear from Mr. Ned Anderson, who is president of the Inter Tribal Council of Arizona, and chairman of the San Carlos Apaches; and a lawyer. There aren't very many Indian lawyers around. [Prepared statement of Ned Anderson may be found in appendix II.] STATEMENT OF NED ANDERSON, PRESIDENT, INTER TRIBAL COUNCIL OF ARIZONA; CHAIRMAN, SAN CARLOS APACHES Mr. ANDERSON. It is good to see you again, Mo. The CHAIRMAN. Good to be with you, Ned; glad to hear from you. Mr. ANDERSON. Thank you. As you have indicated, I am president of the Inter Tribal Council of Arizona. There are 19 tribes in the membership. I am also tribal chairman of the San Carlos Apache Tribe. For your information, Mo, I was reelected the other day to a 4- year term. The CHAIRMAN. I read that in the paper. I wish to hell I could say the same thing. I need a 4-year term myself. [Laughter.] Mr. ANDERSON. I might give you a little help next time. The CHAIRMAN. Well, we could switch places. I'll go run the Apaches and you run the Congress. Mr. ANDERSON. I beat my main opponent only two to one. In your case, I will probably do it three to one for you. The CHAIRMAN. All right, I will look forward to that. [Laughter.] Mr. ANDERSON. Mo, you stated a couple of things that we are very pleased to hear; No. 1 is that it is not the intent of the bill to eliminate the HUD program. No. 2, you indicate also that there PAGENO="0089" 81 would be no transfer of programs to the Interior. Hopefully, that means the Bureau of Indian Affairs. BIA, as you know, is an agency that has been the sole authority to help the tribes, especial- ly when it comes to the trust relationship. But nevertheless, there have been a lot of shortcomings as far as what the Bureau can do. We really feel that when in administering the housing program, we, ourselves, the tribes, are having a hard time. Just imagine what it will be like for the Bureau if it were given the responsibility of administering such a program. I think when it comes to administering a program like this, I would like to state for my tribe-I am going to give you what the other tribes feel as far as Arizona is concerned-that even when it comes to having HUD into housing programs, there have been problems. I would like to relate a couple of them to you. If nothing else, just so that it will be in the record. One, at one time HUD had a policy whereby you could use laymen to administer housing programs. Well, we did that. The San Carlos Apache Tribe did. As a result, because of the fact that it was mismanaged by, unfortunately, the board at that time-I didn't know my opponents were here yet-but nevertheless because of the way the program was admini~tered at the time, it resulted in some people being jailed. We didn't want anything like that, but the program became so detached that we, the ones who were grant- ees, the tribal council members, were not able to do anything. So we just let this thing happen and it happened and some people were jailed. Consequently, after that, HUD instituted another policy which' was to go ahead and use tribal council members. We did that and it also created another, in a way, empire, where we, the tribal council members as a group, could not even do anything. That also results in our being detached from the administration. We don't like to see anything like that because when a problem develops, who is called on the carpet? Unfortunately, it's always me, the chairman, or the vice chairman, so whatever we do here as far as having Indian housing programs, I think it ought to touch that I, the vice chair- man, and the tribal administration are in charge so that we will make sure that things go in accordance with whatever the policy is at the time. I feel that as a very responsible person, as I indicated to you a moment ago, the people gave me their vote of confidence two to one. I can run a program like this and that's what I'd like to do because I know there is a need for housing for my people and that is true, also, with the other Indian tribes. As far as what the Inter Tribal Council of Arizona feels, it needs to point out a couple of sections from the bill, itself. Section 205, if you will read that, it allows that Indian tribes would risk losing their trust fund if housing payments are not made by individual Indians and the housing agency is unable to make quarterly payments into the Indian Housing Finance Fund. I think this section would subject tribal governments to conse- quences that are not applied to any other public housing authority in the United States. The CHAIRMAN. Is this different from what we do now? How are we going to go to the bank and get some money if they can't treat PAGENO="0090" 82 you like they would treat me and come and foreclose and take my assets or take the house back? What is different here? Mr. ANDERSON. I think what you ought to do here is, you know, if you're going to help, you ought to help like the way the mecha~ nism has been set up. I think if you will look to the history that has been in place here for a long, long time, it is true that we are Indian tribes and we need help. I think if you would just treat us as if we have not been able to develop ourselves-and that is the case, Mo. There are only a few of us who can operate at a level that you and others can who are not from the reservation. To be specific, I am not eligible for any housing program like this. I happen to be at a level as far as wage earners are concerned, where I can't go out and buy a home but I am not eligible for any of these programs that are being proposed by you and the other politicians. But what I am saying is the people that we are trying to address here are the ones that really need help. If it were me, I would not hesitate in using any kind of security so that I will get housing for my family. But it so happens that you are not talking about me and people that are at a level that I, fortunately, can operate on and that's because of the time that I spent getting educated. So we are talking about people who are not at that level. The CHAIRMAN. I understand that and you make a pretty good distinction here. But the administration is urging very strongly the principle of more participation by the beneficiaries of Federal Pro- grams and, more support for the Government we are just not going to be able to sell programs with a potential for defaults. This is one way we were trying to meet the argument that, if we do this kind of a housing bill this year, it will increase the deficit even further and there will be more losses to the Federal Government and so on. We were trying to set this up so that it will be appealing as a pro- gram and quite likely isn't going to result in losses that will be the responsibility of the Federal Government. Mr. ANDERSON. We understand that and we appreciate that, Mo, and I don't know whether the Republicans are making an inroad as far as your philosophy is concerned, but we have already lost one Democrat to the Republicans here in the State. We hope that you will not be the next one following suit there. The CHAIRMAN. I hope that's true. I join in that sentiment. Mr. ANDERSON. Mo, the other sections-this merely refers to the trust and I think that was ably responded to by your aide so those are the concerns that we have. The Inter Tribal Council of Arizona, however, reserves final statement on the bill until the membership has had an opportunity to further study the bill and we have not done that. So I do appre- ciate this opportunity. The CHAIRMAN. I hope the Inter Tribal Council will get busy and tell us where we stand. Let me be frank with everyone. I tried to find, as I said earlier, one program where maybe we could bust the budget in the sense of getting the President and 0MB to go along with some sort of initia- tive this year that is in contrast to all the cutjacks we're going to have. I am not about to take my time, with all the things I've got PAGENO="0091" 83 pending this year, to try to ram a bill down the throats of the Indian leaders such as yourself if it's the consensus of the tribes after they look at this and have these hearings that they don't like it or don't want it or it has more dangers than opportunities. That's the end of the bailgame, as far as I'm concerned. We've got only about 6 months until the election and probably 5 months or 4 months until Congress is under pressure to close down and go home. So I hope you will try to find a consensus and if we are on the right track and some changes could be made to make this accept- able, would you let us know about it and we'll go to work. But clearly the tribes here and in the West generally have a veto on this in the sense that I am not about to go ahead with it unless there is a clear consensus that this is the way to go and that it offers some help. Mr. ANDERSON. Mo, it's laudible, I believe, given the philosophy of this administration to do away with housing altogether, that you are proposing the bill. Whenever you try to have hearings on any bill, whether it's good or bad, people become skeptical and wonder, what's he up to this time. But, one thing that I would like to say is that as far as the reap- portioning bill that they tried to ram down our throats-yours and mine-we won and we feel that if the San Carlos Apache Tribe had not done its part, maybe you would not have fared that well and we would like you to understand that. With that in mind, I would like to ask you to be present for my inauguration which will be, hopefully, within the first 2 weeks of May. So an invitation will be sent to you. The CHAIRMAN. Send me an invitation as soon as you can and if I can arrange my schedule, I'll be here. I always wanted to go to a Presidential inauguration myself. [Laughter.] Mr. ANDERSON. This is going to be higher than that. Thank you, Mo. The CHAIRMAN. Thank you very much. The next witness is Mr. Delfin Lovato of the All Indian Pueblo Council. [Prepared statement of Delfin J. Lovato may be found in appen- dix II.] PANEL CONSISTING OF: DELFIN J. LOVATO, CHAIRMAN, ALL INDIAN PUEBLO COUNCIL; SALAMON GARCIA, EXECUTIVE DI- RECTOR, ALL INDIAN PUEBLO HOUSING AUTHORITY; LAMAR PARRISH, COUNSEL; DON MONTOYA, EXECUTIVE DIRECTOR, LAGUNA PUEBLO HOUSING AUTHORITY; AND DAVID PEREZ, EXECUTIVE DIRECTOR, NORTHERN PUEBLO HOUSING AU- THORITY Mr. LOVATO. Mr. Chairman, I am going to summarize my state- ment. The gentlemen that accompany me are what you might call the expert witnesses. They represent the housing authorities, Pueblo Indian housing authorities, in the State of New Mexico and, if I can, Mr. Chairman, I'd like to introduce them. The CHAIRMAN. It looks like you've got the whole first team here: the quarterback and four halfbacks. PAGENO="0092" 84 Mr. LOVATO. We even brought an attorney with us. Mr. Chairman, to my left is the executive director of the Laguna Housing Authority, Mr. Don Montoya. To my immediate left is Sal- amon Garcia who is executive director for the All Pueblo Housing Authority. To my right, Mr. Lamar Parrish, and he is the attorney for all of the housing authorities. To my immediate right is Mr. David Perez, who is the executive director for the Northern Pueblo Housing Authority. Mr. Chairman, I want to take this opportunity to generally cover four points that we have discussed. They are generally areas of concern that we've previously raised before the Interior Commit- tee. They are issues that we feel should be addressed in H.R. 5988. Before I do that, I want to go on record to commend the chair- man, and members of the committee, for the efforts they have made in putting together a housing bill. I think it is timely; it is certainly necessary; and considering the reality that we find our- selves in today, with the efforts of this administration to basically wipe out Indian housing, I think it's going to give the Indian people of this country something to fall back on should the administra- tion continue in their efforts and should they succeed in basically cutting out Indian programs within HUD as we know them today. I strongly feel that H.R. 5988, although there are some concerns, some questions that still need to be answered and clarified, is a bill which is flexible. It provides ample opportunity for Indian housing, and for Indian tribes across this country, to implement many of the concerns, many of the requests that they have had with HUD that have gone unanswered. It provides them an opportunity to contin- ue with the successful programs that we have had with some inno- vation and some modification to accomplish a better socioeconomic situation for their people on each one of their reservations. The four areas that I want to generally cover in regard to the bill, Mr. Chairman, are first that H.R. 5988 seriously consider the establisment of an advisory committee or a board. We can call it whatever we want, but we need something at the level in Washing- ton to advise the Director, to advise the Bureau in the formulation of regulations in the development of policy and to help in the im- plementation of this important program if we are successful in get- ting this legislation through the Congress. Second, I would hope that H.R. 5988 would also consider what has already been brought out here before this committee and other committees, and that is the need to give tribal governments and Indian housing authorities more flexibility in the development, the planning, and the construction of Indian housing. To allow them to use force account, if you will, for the lack of a better terminology. To allow the tribes to basically construct their own homes, with the flexibility to use their native materials. In the State of New Mexico, Mr. Chairman, we have been build- ing our own homes for centuries; adobe units that still stand today. Yet, we have been unable to convince officials within HUD of the quality, the suitability, and the adequacy of our homes and the need for our people to build the type of homes that are suited to us. We have basically had "Suburbia, U.S.A." forced down our throats. Some of these homes stick out like a sore thumb in what once were beautiful Pueblo communities. PAGENO="0093" 85 Mr. Chairman, one other area that I think warrants serious con- sideration is this entire area of interagency inneraction or inaction on Indian housing programs. As you know, at present we've got Indian House Service, HUD, we've got BIA, and countless other subagencies that are involved in Indian housing. As a result, we've got delays, and bureaucratic redtape that we have to put up with. It takes 5 to 7 years in some cases from the intitial program stage to the time an individual moves into his house. We think it is not necessary. We would like H.R. 5988 to serious- ly consider a one-agency type of operation. We think it is possible. We think it will not only assist in the overall planning but also save a great deal of time and headaches and delays later on as the project gets into construction. Indian House Service, BIA, this new office that will be estab- lished, I think, can be combined into one operation. I would like to see that particular area seriously considered. The last area that I wanted to briefly cover also, Mr. Chairman, is the need for H.R. 5988, to take into consideration the fact that there are tribal governments in this country that have very ad- quate codes. I speak of construction codes. I speak of codes in terms of architecture. There are some Pueblo communities who will not allow frame-type pitch-roof homes within the confines of a certain area of their communities. There are some Pueblo communities who do not want multi-col- ored homes within the pueblo confines. It has worked very well. It beautifies and maintains the authenticity of our community while, at the same time, provides a very adequate and safe home for the individual families. I again want to emphasize, before asking my friends for a few remarks on title I, II, and III, that I don't really feel any danger in terms of minimizing the importance of HUD Indian housing. I think that is there. It is up to the Indian community to make their voices known to their respective delegations, to fight for continued HUD Indian housing programs and Indian programs in general. But at the same time, we cannot close our minds to the fact that we are faced with the possible danger of losing the entire Indian HUD housing program. I think it is timely that the Indian commu- nity in this country join forces and support H.R. 5988, and to present constructive alternatives and recommendations if they have them. Mr. Chairman, if the Chair will allow, I would like to ask Mr. Sal Garcia to make a few brief remarks. The CHAIRMAN. Mr. Garcia. Mr. GARCIA. Thank you. I would like to refer to title I, which is the HIP program. I think most everybody is familiar with HIP program as it now stands. We already have this HIP program, but I think it is being expanded to cover some new construction and it also is being expanded to cover a type of payback. As I understand, the HIP program is a grant. Now the thing that bothers me is the payback. We don't know how this payback is going to affect those poor people. Those are poor people to begin with and how they are going to pay back is something that is to be thought about. PAGENO="0094" 86 The CHAIRMAN. Mr. Ducheneaux tells me that the concept here is that the payback is entirely discretionary. If the tribe didn't want it, you won't have to have it. If that isn't clear in the lan- guage of the bill, we will try to make it clear. Mr. GARCIA. Fine. Mr. PARRISH. It appears that discretion might lie with the Secre- tary, as well. The CHAIRMAN. That's not what we intended, I am told. We want your doubts and reservations to be met if we possibly can and if you don't like our language, give us some you think will do what we just said we want to do. Mr. PARRISH. Good; that's what we were trying to address. As far as the present funding, what you are proposing is about $30 million. We feel that it's not adequate. I think $100 million would be a better figure. At this point I think I will turn it over to David or Don. Mr. MONTOYA. Mr. Chairman, I'd like to address title II. I think this is more familiar to our housing authorities as far as what is being proposed in the bill. There are many but I'd like to go ahead and get right on section 205, and I think the people called upon previously addressed this already. This is in regard to the trust funds being attached. We certainly understand that there has to be some recourse in the event that some difficulty-I don't know quite how to put this. We have our problems. I am housing authority director and we go through this on a daily basis. But now that we know this is a separate bill and you don't want to get yourself into this dilemma, something should be done to address this at the outset. I think I can say in our par- ticular case and in many instances, not only my tribe but I think along with many of the other Pueblos, that we have resorted to putting a lot more emphasis on the tribe getting behind our estab- lished tribal courts and I think that if you will gather the latest statistics from HUD, that you will see quite an improvement in our collections in this respect. I think rather than attachment, we would like to suggest maybe that you look more heavily toward some alternatives, one of which I have mentioned. Others which might be, perhaps, if we don't achieve this within, let's say, a satisfactory time frame, that maybe you deprive us of any additional funding until somehow we are able to catch up or rid our delinquent accounts. I think at this point in time it would be worthy of consideration because I think you will be addressing primarily, to a large extent, those housing authorities that are now doing this and making acceptable collec- tions as we see it. Under title II, Dave, I think I'd like you to talk about that be- cause you spoke on it the other day. Mr. PEREZ. Mr. Chairman, on the application process, we also feel that that is too long of a process and submit a program reser- vation to HUD or whatever agency will be involved, we feel it's too long and housing authorities are demanding upon HUD to meet deadlines. And we feel that if this bill does go through or whatever agency responsible, that they be also given deadlines to respond such as 30 days to give us approval or disapproval of the program. PAGENO="0095" 87 Mr. PARRISH. Historically, Mr. Congressman, the delays have always been on the part of the Government or specifically HUD. It's not the tribe or the housing authority that delays. What Mr. Perez is suggesting as he well said is that you place a deadline on the Government to approve or disapprove within a period of time. Mr. PEREZ. Along in that it has initial funding, we would like to recommend that it be 3 percent instead of the 2 percent that is shown there. In residual payments, it says that we should take these and pay back to the fund within 90-or quarterly-and we feel that this should be changed to once a year at the fiscal year. The reason for that is I think that the investment of that money can help the housing agency to meet their bills a little better. The rent delinquency rate, 90 percent is a little bit high. We kind of feel that maybe that should be more like 50 percent. Be- cause the thing is, these things could get 90 percent very quickly. Monitoring and inspection, that should be left up to the housing agency, the housing authority. Bidding should be left up to the housing authority and they should be able to say whether they can negotiate on these things, too. If they can negotiate, I think that gives them a very broad background. A lot of times they have to go back and rebid and I think a negotiation phase should be consid- ered. Don, do you want to close up? Mr. LOVATO. Mr. Chairman, one other area that I think we want to briefly comment on. You require a performance bond but no payment bond. I think payment bond ought to be included in the bill, itself. But the importance of the comments that the housing directors have made, I think, are very important. The residual pay- ment thing is one which I think the housing authorities can use to their benefit. They can reinvest this money over a period of 9 to 10 months, draw interest on. They can use the interest moneys for renovation, for updating some of the mistakes that are made in construction. I think that's an important point. The bidding versus negotiation is extremely important. Right now every housing authority is forced to bid out their project. We have contractors who could, if negotiated properly, build a house for less. There are situations where that flexibility ought to be left to the housing authorities to negotiate rather than be forced to bid every project. Title III basically, very briefly, the guaranteed loan program, I think, is much needed. There are families that, as has been brought out, don't qualify for title II or title I programs. These in- dividuals are living on the reservations subject to the same isola- tion, the same economic conditions. We are asking that serious con- sideration be given to bring the guarantee to 100 percent. If we are going to guarantee 90, what's another 10 percent? Attachment of property in the entire bill, I think, needs to be ad- dressed from the sense that it should be the tribal government to do the attachment. It ought to be the tribal government to say, "OK, you're not paying your rent. We're going to bring in some- body else to move into that house, and until the term of that note is completed, that individual has that house or makes some other arrangements." Most tribes already have procedures for that. PAGENO="0096" 88 Lastly, no matter who the individual might be, we think that there ought to be some subsidy considered in title III to the individ- ual. It might be interest subsidy or something to that effect. The entire impact, Mr. Chairman, in title II, III, and the bill, itself, Mr. Chairman, that I think is worth noting here, that if properly implemented, it will not only create housing, it will also stimulate the employment, stimulate the economy and build the type of houses that the Indian people will want for a change, and not something that is being forced upon them by somebody else. And that is an element that is key throughout H.R. 5988. It is an element which is lacking right now within HUD. Thank you, Mr. CHAIRMAN. We will be happy to answer any questions that you or any of the staff might have. The CHAIRMAN. Mr. Lovato, you have given us a very specific cri- tique and this is what I had hoped, that at this hearing we could get witnesses to focus on what they consider weaknesses or uncer- tainties in the drafted bill and this has been very helpful. I particularly appreciate your emphasis on the adobe construc- tion and I wish you'd expand on that just a little bit. Who tells you now if you're building a house in one of your pueb- los that you can't use adobe and why? What rationale? Mr. LOVATO. The rationale, Mr. Chairman, is this: HUD regula- tions and requirements specifications, if you will, minimum stand- ards are such that there is an RH factor-heat retention, cold, what- ever they call it. The fact of the matter is they are telling us that adobe houses in the State of New Mexico do not retain enough heat to meet HUD requirements; therefore we can't build these things. Now, you know, we've been living in them for hundreds of years before the white man set foot on this continent. The CHAIRMAN. The best house I ever had in Tucson was an adobe house. Mr. LOVATO. Absolutely. But that basically is it. It is the prototype cost restrictions. It is the ridiculous minimum standards that exist that basically force the cost of our housing throughout Indian country. So the blame really is not on the type of houses we are building. It is just the way the system has been set up. The CHAIRMAN. Have you had any difficulties with this dilemma that we have had in other parts of the country where you get the houses built by one agency and the sewers are to be built by an- other and you've got to board them up when people are desperate for housing? Have you had this problem? Mr. LOVATO. No; we've had some problems, Mr. Chairman, but I ran a housing authority myself, and we have had a good coopera- tive-type working relationship with the Indian House Service. We get into some difficulties when funding does not become available on a timely basis or is not synchronized with the development of that housing and so forth. This is something that I think can be eliminated by having one agency responsible for both areas. The CHAIRMAN. Could you expand a little bit, Mr. Lovato, on the points you made about force account approach? If we adopt your recommendation on the use of force accounts, how can we guard against these kinds of abuses that we have had in the past? PAGENO="0097" 89 Mr. LOVATO. Mr. Chairman, I know there have been abuses and no doubt there will be abuses in the future. I think one of the im- portant reasons and the need for force accounts is that we can, through this process, through this committee, this advisory board, through working with committee staff, devise procedures to avoid past mistakes, 1. No. 2, because of the reality of unemployment and all the other things that are facing us now, I think it is going to mean the difference between welfare and a job. I think these safe- guards can be developed and can be properly monitored by both the tribe, the housing authority, and the funding agency in this case. The CHAIRMAN. All right. Thank you very much. Mr. MONTOYA. One more thing here: I don't know how you are going to treat-something that has bothered our housing authori- ties that is now very traditional-we have to deal with the Davis! Bacon wage rates. Those govern, to a large extent-you mentioned adobe-what it costs me to hire a bricklayer versus an adobe layer or a rocklayer. Those are what drive our costs up. And if force ac- count could be utilized and if somehow this could be addressed in this bill that at least gives us a chance to have a choice of paying Davis/Bacon or the prevailing scale within our area, I think that this, to a large extent, would eliminate the dilemma we have been in. Mr. UDALL. You've touched on an important point. Thank you, gentlemen. It's nice to have you with us today. We will now hear from the California Inter Tribal Council, Eugene Pasqua. [Prepared statement of Eugene Pasqua may be found in appendix II.] PANEL CONSISTING OF: EUGENE PASQUA, EXECUTIVE DIREC- TOR, INTER-TRIBAL COUNCIL OF CALIFORNIA, INC.; AND BEN ROBERTS, SANTA ROSA RANCHERIA Mr. PASQUA. Mr. Chairman and committee members, with me today is Ben Roberts of the Santa Rosa Rancheria. He was appoint- ed by the chairman to come with me on this trip. He works for the housing authority and I would like to mention before I start that I am a recipient of a HUD home in California on my rancheria. On behalf of the Inter-Tribal Council of California, representing 40 federally recognized tribes and 60 Indian organizations, we will give our general support on the proposed Indian Housing Act of 1982. Many of the tribes in California-and I will make this clear- have not yet received the bill as of this time. I am sure comment will be sent to the committee from the California tribes at a later date and they will fill in more specifically on the parts of the legis- lation. We would like to thank the committee for providing this oppor- tunity to present our concerns on the Federal housing that will affect California. The Federal Indian housing effort has been inadequate in Cali- fornia and a new and better coordinated program is greatly needed. Here I'd like to comment why we say a more coordinated effort. In California on my rancheria, there is no coordination between 18-934 O-83---7 PAGENO="0098" 90 the Bureau of Indian Affairs, the Indian House Service, and HUD, themselves. A road was put in by the Bureau, pushed in to put new houses in. Maybe 8 months later they had to dig that same road up again because the Indian House Service came in then to put the sewer in after they had paved the road and put it in. It cost a lot of money. Things were not in priority areas. Then HUD came in-and our rancherias are about 30 to 60 areas in California-and we got assignments. Most of us have assignments. They might be 75 by 225. We're talking about a situation where the housing authorities bring us into an urban setting, and I've been to the city most of my life. We are bunched up close together in the new houses and look- ing into each other's windows. We told the authority, "You're trying to urbanize us. You are going to cause some social problems, fighting among ourselves, because you're getting us too close." The problem could have been eliminated had they just staggered the houses. But the thing came up, no money, "Sorry, I can't move you back 2 feet to straighten this out." I don't want to get off my text too much. My speech was written because we are in the tribal council and sanctioned by the chair- man of the board, so I want to stay on it and fmish it first. Indians living on the reservation have relied heavily on Federal funding and it has been further complicated by the fact that many tribal groups are either terminated or unrecognized and have not been eligible for Federal funding. But proposed legislation is greatly needed, in our estimation. A 1980 summary report by the BIA indicated that 11,092 housing units on California reservations were needed-7,964 were substan- dard and that 8,046 new units were needed. This is 1980. We particularly like the fact that the proposed program provides for grants directly to individuals as well as tribal housing agencies. However, there are a few areas that concern us. Many California tribes do not have the resources needed to ad- minister or to manage such a program. We anticipate that smaller tribes will turn to organizations such as ours to help them and we would like to be assured that we will be able to help them if asked to do so. We're talking about 40 people on a rancheria and 30 and 70, that haven't the human resources to manage so they generally come to the Inter-Tribal Council for management. We approve of section 215, ~vhich calls for the formation of an Indian affirmative action plan but we would like to see guidelines spelled out in the legislation. It is our belief that Indian contrac- tors should be used wherever possible to do so and that a separate program is needed to train Indians in the building trades. The CHAIRMAN. Before you go on, my staff tells me that the fol- lowing language is on page 10, section 203(d): Nothing herein shall preclude the submission and approval of multitribal applica- tions and the Secretary shall encourage but shall not require multitribal application to achieve economies of scale. So we've already provided at least an approach in that direction. Maybe we can tighten it up. You do have a special problem in Cali- fornia with these small rancherias where maybe 10 of you grouped PAGENO="0099" 91 together could do something for all of you rather than having 10 applications. Mr. PASQUA. Right; we just don't have the human resources on those rancherias to administer the program. One area that disturbs us is that the program is to be adminis- tered by the Bureau of Indian Affairs. We understand that great efforts have been made in title IV to insure that the Bureau will administer the program as Congress intends. We believe that the requirements and restrictions of title IV are good, but they do not go far enough. At a time when Federal programs are being cut back because it is believed that such programs are too large and costly, we would like to see further controls put on the Bureau to insure the success of the program. We view the fact that Congress will review admin- istrative expenses of the Office of Indian Housing yearly as a posi- tive step, but we still have fears that the program may become un- popular if administrative costs are considered too high. You are no doubt aware of BIA's reputation when it comes to its ability to ad- minister and coordinate programs. We would also like to be assured that the housing to be built will not add to the problems of the reservation. In the past such hous- ing has been built with each unit right next to each other. Though it may be cheaper to build a house this way, it sometimes creates urban problems not found on the reservations before such houses were built. It is understood. that the tribal housing agency will have some say on how the houses are to be built and this may solve some of the problems. But we feel that every effort should be made to provide housing that will truly add to the quality of life on the reservation and not create a new set of problems. Other questions are, section 209(b)(3) states that a family shall be responsible for maintenance. Yet, in section 210(3), minimum monthly rent payments provide for a contingency reserve for main- tenance. It would seem that the low-income family might find it difficult to come up with the extra cost of maintenance and that they have already paid for it in their rent payments. This may need further explanation. We didn't understand that part. Under section 211(c), if a tribe defaults on its quarterly payment, it becomes ineligible for further assistance. What provisions are available to assist those individual families who have met and maintained their contract obligations and will continue to need services? We understand the need for accountability and even possible at- tachment of trust funds if that becomes necessary. However, we know the difficulty we have had in California in obtaining quality housing and we hope that you will consider our remarks today. If any changes are made in this legislation, we would hope that you consider that it will be necessary for small California tribes to form a housing consortium to provide a more feasible and cost-ef- fective method of meeting the housing needs of its members. And we would also like you to remember that we consider control of such programs by the tribal council as necessary. As a whole, the bill provides Indian people with a continuing commitment from the Federal Government to assist them in ad- dressing the inadequate housing conditions that exist on reserva- PAGENO="0100" 92 tions. We support and will work with you for the passage and en- actment of the Indian Housing Act of 1982. Thank you for your consideration. Like I say, I am a participant in the HUD housing on a small rancheria in northern California. Mr. Roberts here also works for the housing authority even though he's from the rancheria. I thought maybe he could talk about some problems that would occur, or maybe not, with this bill. The CHAIRMAN. Mr. Roberts. Mr. ROBERTS. Mr. Chairman, on behalf of the Santa Rosa Ran- cheria, the Hitache Indian Tribe of Kings County, Calif., I thank you for allowing us the opportunity of appearing here today and stating our concerns regarding the national indian housing pro- gram. My name is Ben Roberts. I also work for the Indian Housing Au- thority of Central California. At the present time we have three tribal groups involved with the housing authority. We, as the Hitache Indian community, through many years of broken promises and substandard housing, have somehow made it through all of these procedures. Once again today, we find our- selves with some obstacle along our path for we have recently heard that HUD has announced their fiscal year 1983 budget re- quests include zero funding for Indian housing programs through- out this country. We oppose this. We would like to see that funding put back into the system. However, if for some strange reason that this cannot be done, we would fully and wholeheartedly support this H.R. 5988. Once again, I believe Mr. Pasqua has stated that we have had many problems in California pertaining to housing. Now, we have many agencies involved with the construction of homes in Califor- nia and at times they do step on each other's toes, so to speak. One. will construct in one area and one will tear down in another and thereby creating a problem of the funding loss and this has oc- curred for many years, not only on my rancheria but others. An example of housing situations in California, Santa Rosa Ran- cheria: During the mid-1930's, there were approximately 25 homes erected on the rancheria and to this day those same 25 homes are still there. Twenty percent of those homes were brought in from other areas because no one else wanted them. So what we did was move them in to the rancheria and rehabilitate these houses. We have approximately 250 residents on our rancheria at the present time in 25 homes. Now, there is a clear example of overcrowded conditions. - This has existed for many years and it still exists today. We have never had any new homes on a rancheria for the past 10 years. Fi- nally, a housing authority was formed 3 years ago. During this period of 3 years, we have finally come up with a program where houses are finally going to be constructed but they are still in the construction stage and we are having problems with agencies. in- volved in construction of those homes. The cooperation between various agencies is not there. I have heard many people laugh about the Bureau in the past and for many good reasons. We have been promised many things and noth- ing has been brought forth. Therefore the people that I have PAGENO="0101" 93 spoken with in the past weeks in reference to this bill give their wholehearted support in hopes that something can be done in the future. Thank you. The CHAIRMAN. Thank you, gentlemen; appreciate having you. We will now hear from Anthony Drennan of the Colorado River Tribe. [Prepared statement of Anthony Drennan may be found in ap- pendix II.] PANEL FROM THE COLORADO RIVER INDIAN TRIBES CONSIST- ING OF: ANTHONY DRENNAN, SPOKESMAN; ELLIOTT BOOTH, COUNCILMAN; AND ELVIN KELLY, HOUSING DIRECTOR Mr. DRENNAN. Mr. Chairman, members of the committee, mem- bers of the staff, I would like to introduce to my right here Elliott Booth. My name is Anthony Drennan of the Colorado Tribes. Mr. Booth is councilman for the tribe. On my left here is Elvin Kelly, the housing director. The Colorado Tribe welcomes and commends the efforts of Con- gressman Udall and the members and the staff to provide a con- tinuing Indian housing program in the face of proposed cutbacks by the present administration. However, the tribes find it unfortunat~ but necessary to oppose H.R. 5988 in its present form. With amendments to this bill along the lines I will outline, the tribe would strongly endorse the bill. The Colorado Indian Tribe's opposition to the bill stem from those provisions which have concerned many other tribes. The pro- visions in sections 205 and 211, as well as those in section 103. As provided in sections 205 and 211, the Secretary would have the authority to attach tribal trust funds to secure defaults in the payments of mortgages due to be deposited in residual receipts fund under section 211(b). This provision makes no distinction as to whether such default is due to the fault of the agency or to the inability of the agency to collect amounts due from the participating families. Were such attachment authorized only where default is due to the agency's mismanagement, such attachment perhaps could be reasonable, but it is surely unfair and unwise to require the tribes to be guarantors of amounts due from families, particularly when the tribe, itself, has no right of recourse against the trust funds of defaulting families or even receives any equity in the homes, pay- ment for which would be required to guarantee. - Even if default of the agency were due to agency mismanagment, the tribes feel that remedy for such default is adequately provided by the bonding requirements of section 213(a). It is unclear wheth- er section 103 gives the Secretary the authority to sell trust lands without the consent of the landowner, whether it be the tribe or an individual allottee. If this section only adds increased burdens upon the Secretary before approval is given for sales otherwise allowed under existing law, the Colorado River Indian Tribes would have no objection to the section, except an objection to the sale of trust lands in general. If this is the case, it should be made clear in the bill, as many have already interpreted this section to give the Sec- PAGENO="0102" :94 retary authority to sell lands. It would be tragic if it were to be so read by the Secretary and the Bureau of Indian Affairs. The Colorado River Indian Tribes also note that certain provi- sions of the bill do not adequately protect the right of tribes to enact governing law within their respective territories. For example, section 103(b) provides for liens upon fee lands to be recorded under State law. While this is certainly proper where lands are located outside of tribal boundaries, within tribal terri- tory, recordation should also occur pursuant to any tribal recorda- tion requirements which may exist, as well as under State statutes. Also under section 307, guaranteed loans are restricted to those made by financial institutions subject to supervision by agencies of the United States, a State or the District of Columbia. No mention is made of institutions which may be regulated under tribal law, rather than State law, as would be the case within tribal territory where tribal law regulating such institutions may exist. Were a comprehensive scheme of tribal regulation to exist, the Colorado River Indian Tribes take the position that tribal and not State law would govern. This concern is also applicable to section 302, which proyides that mortgages may be executed pursuant to 25 U.S.C. section 483(a), which provides that the law of the State will govern mortgages, even though it is Indian trust land which is being mortgaged. In line with the above-stated objections to the bill, as well as other minor problems, the Colorado River Indian Tribes recom- mend that the bill be amended as follows: One, section 205 should be deleted. Two, section 205(a) should be amended to provide only for attach- ment of trust funds of defaulting individuals. Three, section 211(c) should be deleted. Four, section 103(b) should be amended to read: 103(b)(1). Where a house constructed, acquired, or repaired pursuant to section 102(a) (2) or (3) is located on land outside the boundaries of tribal territory, or upon fee land within such boundaries, the Secretary shall insure that a lien upon such land is recorded under appropriate State law, noting the encumbrance imposed by section 104 of this title. (b)(2). `Where a house constructed, acquired, or repaired pursuant to section 102(a) (2) or (3) is located on land within the boundaries of the tribal territory, the Secretary shall insure that a lien upon such land or house as may be applicable is recorded under appropriate tribal law, noting the encumbrance imposed by section 104 of this title. Five, section 307 should be amended to read in part: "A financial institution subject to examination and supervision by an agency of the United States, a tribe, a State or the District of Columbia." Six, section 302 should be amended to provide that liens and mortgages are to be governed by existing tribal law or by State law if no applicable tribal law exists. Seven, subsections 1 and 5 of section 3 should be amended as fol- lows: Subsection 1 should read: Adjusted family income means adjusted gross income as stated in the family's most recent Federal income tax return, less $1,000 for each member of the house- PAGENO="0103" ~,95 hold plus a further deduction of $3,400 ~r the amount of itemized deductions from the family's most recent Federal income tax return, whichever is higher. This will assure that gross income reflects all standard above- the-line deductions as well as those below the line. Subsection 5 should read: "`Indian' means a person who is an Indian as defined in section 19 of the act of June 18, 1934 (48 Stat. 988; 25 U.S.C., sec. 479)." This change is made because the definition is otherwise redun- dant, as 25 United States Code section 479 already includes all members of Indian tribes, unless member of an Indian tribe is deemed to include members of nonfederally recognized tribes, in which case that could be specifically stated. Although the Colorado River Indian Tribes feel that the intent behind this bill is admirable and that a housing bill is imperative, this bill contains flaws which require opposition to the bill. Were the bill to be amended along the lines stated above, as well as to remedy the concerns of other tribes and Indian organizations, the tribes would provide their wholehearted support for the bill. Because of the lack of time provided to study the bill before hear- ings were scheduled, there may be other provisions of the bill which deserve comment. The Colorado River Indian Tribes there- fore reserve the right to submit further comments at a later date. Such comments, if any, will be submitted at the hearing in Wash- ington, D.C., on April 29, 1982. On behalf of the Colorado River Indian Tribes, I thank you for this opportunity to present this testimony and thereby state our views. Another section in there that should be flexible is the clarifica- tion of contracting, 638. The CHAIRMAN. Thank you. Do your friends have any additional comments? Mr. BOOTH. Much talk has been made in regards to the coopera- tion among the Bureau of Indian House Service and the tribe. One of the concerns that I have-and I'm pretty sure the com- mittee knows-the appropriations for Indian House Service and the Bureau for sanitation and sewer and water systems have been drastically reduced or eliminated. If this is a companion bill, if we are going to shoot for new housing construction, then there must be appropriation in the IHS authorizing bills themselves, because without water, sewer, and lights, electrical services and roads, and so forth, you're not going to make any progress at all unless there is a different section added to this to complement those types of functions required by the other agencies. The other problem that I see in looking about fee land and at- taching fee land, there may be a possible problem in that many of our allotted lands or fee lands have become fractionated. If people feel that this requirement is in there that it might be attached, some of the allotted landowners or those that have inherited inter- est in that land may not grant that individual to build any homes on that particular piece of ground. To tie it up for 33 years, or so, it may not work out for some other interests. The CHAIRMAN. Let me emphasize that trust lands are not at- tachable under this bill. Only trust funds can be attached. We can make that clear. PAGENO="0104" 96 Mr. DRENNAN. I think it needs to be more clear in the bill. The CHAIRMAN. You've done a constructive job in your testimony of the things that concern you and the specific changes that need to be made; We don't claim that this is a perfect bill and we want to amend it and change it so we can give people the reassurance that I have been talking about here today. Mr. BooTH. I do want to commend you also. I think this bill is really great which gives tribal governments more control of the housing program and I think that is vitally needed. I am kind of sad to report that in some cases we have seen tribal housing au- thorities getting away from the auspices of the tribe and I really like that feature of the bill in here. The CHAIRMAN. Thank you, gentlemen. Mr. KELLY. The gentleman from the All Pueblo Council earlier made a comment about money and also too many agencies in- volved. - I question this because we put a figure here of $30 million and we're talking about now. At a later date, inflation, et cetera, is going to contradict this and we are talking about $30 million should be a base and shouldn't be looked at as to say $30 million is what we are going for and if it should be shot down, it will be less than that and we are not going to have the adequate housing we're talking about. It should go up from $30 million on up. The CHAIRMAN. Let me emphasize page 21 of the bill, we're talk- ing about a separate title and a separate authorization of $100 mil- lion, which is in addition to the $30 million in title I, right? Mr. KELLY. OK, that was the clarification I needed because when it comes to the dollars and cents, we really want to know where it's going because of the commitments we have to our people that the houses are needed. Along that line, too, of course, you have the initialed agencies, IHS, et cetera, who BIA is going to be working on the roads, and also you're talking about IHS bringing in water, et cetera. Now, we don't know about their appropriation because as it is, there is a drag right now presently. They say, "We are shorthanded; we can't go over there and do this. We have prior commitments." So we are considered secondly. So the Bureau needs to realine that and really come out with some statement to say, "This is what we are going to do," along with this bill if it is accepted and goes. I just need to have that put in there because we would like to hear the commitment from the other agencies, what their appropri- ation is going to be, et cetera. In all, it seems like if one is to summarize, you'd have-you are asking for constructive alternatives-and I think if that's open, you have until 20 days that you have allowed, so I think that's all in order. The CHAIRMAN. We will look forward to hearing from you. Thank you, gentlemen; appreciate your coming here today. We will now hear from Judy Knight from the Ute Mountain Tribe of Colorado. PAGENO="0105" 97 PANEL FROM THE UTE MOUNTAIN TRIBE OF COLORADO CON- SISTING OF JUDY KNIGHT, CHAIRMAN OF THE HOUSING AU- THORITY; AND BRADLEY HIGHT, EXECUTIVE DIRECTOR Ms. KNIGHT. Good afternoon, Mr. Chairman. This afternoon I come representing the Ute Mountain Tribe. I am treasurer of the tribal council. I am also the chairman of the housing authority. With me I have the executive director. We don't have a written testimony this morning and we will be getting one to you. But this afternoon, we would like to tell you that we do support this bill because we realize that our tribal mem- bers are in need of housing and there were some things that were brought out like the trust moneys, which I would like to state here that I know that there was something brought out on that and I would like a little clarification on that. But I would like to make a recommendation also that I think that rather than using the trust moneys of the tribe, that maybe if a certain amount of money was set aside specifically for the pur- pose of this bill, if tribes were agreeable to it. But basically we do agree with this bill and we do support it. At this time I would turn the mike over to the executive director to see if he has any comments to add to what I said. The CHAIRMAN. Thank you. Mr. RIGHT. Good afternoon, Mr. Chairman. I just recently came in from a meeting with Mr. Froman from Chickasaw Tribes and the meeting was held in North Dakota and this bill, it really represents what the people like, because we do need homes. We have two generations living in our homes now and we have 88 people on the waiting list. HUD can't seem to come up with any funds to give homes to us. This bill here and if it does pass, I think it would be really great for the tribes. The CHAIRMAN. It's really tragic that these particular programs have been cut back-not just cut back, they are zeroed out in many instances. I think the hearing here today underlines what I said in the beginning. We talked around to the different tribal leaders and groups and asked, "If you could only do one thing this year, what should we go after? What would be the program that might help people the most?" I am confirmed in the feeling that housing is the area and that we're on the right track. Mr. RIGHT. Building our own homes the way we want to con- struct them would be the most logical thing for the tribes. We don't want to live in suburbia homes. We like to design our own homes and the homes we live in now are designed for Arizona. We live in Colorado and we just can't pay the electricity of one of those homes. The way HUD stipulates their program, they make us commit to other things like an improvement program. We make that commit- ment and we fulfill it but we don't get anything back from them. With this bill, I think it would help individual tribes. The CHAIRMAN. We thank you and we look forward to having specific comments from you before we finally try to write a bill and hold our last hearing in Washington. PAGENO="0106" 98 Our last scheduled witness today is Mr. Gilbert Jones of the Fort McDowell Housing Authority. STATEMENT OF GILBERT JONES, EXECUTIVE DIRECTOR, FORT McDOWELL HOUSING AUTHORITY Mr. JONES. Mr. Chairman, my name is Gilbert Jones and I am executive director of the Fort McDowell Mojave Apache Indian Reservation. I don't have a prepared statement. We only received this bill a couple of weeks ago and I have been in contact with the tribal council and they asked that I come here and let you all know that we are going to review the bill and we will be submitting a written statement. The only thing that I would like to clarify is the time limit 20 days from today or is it 20 days from May 19? The CHAIRMAN. From now. We're having the hearings on the 29th, which is 15 days from now, and I guess that would be about May 4 when the time is up~ But we've had a lot of interest in the Washington hearings and we will have a lot of groups testifying there on April 29. We would welcome your testimony or your comments before or shortly after that. Mr. JONES. Mr. Udall, I would also like to give you a brief de- scription of the problems that we have at Fort McDowell. I know that you are very aware of the problems that we have had over the years concerning the Orme Dam controversy. The CHAIRMAN. We could build that dam and then give you hou- seboats to live on the lake. Mr. JONES. That has been proposed to us. One of the alternatives to building houses was under HUD, during that controversy, they asked us if we would be agreeable in building relocatable houses and we told them, "Why don't you give us a boat and stay here." But the houses we have, we are one of the smallest housing au- thorities in the State and probably in region IX. We only have 24 units. The first 10 units were built back in the 1960's, and they were flexipanel homes. These flexipanel homes are now worse than the adobe homes that they moved us out of. I, myself, was born and raised in an adobe house, one of the original buildings there, and I was very shocked when the Indian House Service came and said that I was being raised in a home that was substandard and that wasn't fit for my children. My own personal bills were running about $20 a month until they put me in a five-bedroom house and now my own personal bills have jumped up to over $100 a month just for electricity. But we felt all along that we need houses for our people and we have sort of felt neglected as far as HUD is concerned, because they have finally come out and told us that we are not going to be receiving any more homes. This was before they knew that the cut- backs eliminating the funds for HUD for 1983, this was way before that they told us we were not receiving anymore homes under the HUD program. As a result, I don't know what occurred, but the Bureau of Indian Affairs has been funding us through the HIP program. And under the HIP program, within the last 5 years, we have built and PAGENO="0107" 99 constructed 11 homes for our elderly people and we just received funding for 2 more homes. One is already completed. The other is halfway completed and we are just starting construction under the HIP program. Public House Service has been working closely with us and this is something that has really changed because we never could get the agencies to work together. But looking at what you have here and this bill that you have here, I see this as another alternative that is really going to benefit us. I am going to recommend to the tribal council that the com- ments that were made by the previous speakers that were sitting here before me pertaining to certain sections of this bill, that we wholeheartedly approve this. With the establishment of this program, I feel the Fort McDowell Tribe is really going to benefit because we look at this as alterna- tives for us. I don't feel that it's going to jeopardize HUD's position. I look at HUD's program now and I have only been on board as housing director for the last 3 months, and within the last 3 months, I have had to bring up to date over the last 3 years the previous director's neglect of the housing authority office. We have been trying to work the delinquency problem out and the most comments I heard was that the Bureau of Reclamation during the Orme Dam controversy were saying, "Don't worry about your house. When the Orme Dam goes in, we're going to completely eliminate the payments on your house and we are going to give you a home free and clear." Most of the participants stuck to this in the belief that the Orme Dam was going to be built. But when that fell through, the delinquency problem was way high and we're trying to bring it under control. But my main concern is with HUD, and I've spoke to them about it in the HUD office in San Francisco. They said when an embez- zlement occurs within a housing authority, for some reason or an- other, the individual that does the embezzling, that there is no punishment whatsoever that is given to him. This encourages, in my opinion, other housing directors to continue to do this. We have this on our reservation. This is one of the reasons why HUD said we weren't being funded, because of the embezzlement that oc- curred. This was an admitted embezzlement, investigated and we know for a fact, but because of this, HUD has been withholding our operating funds for 1981 and 1982, and you could say that we are just bankrupt, period, but we are still functioning as a housing au- thority. So in looking at this bill here, I was hoping that perhaps you could really get something in this bill that would not just let people that embezzle from their own people to get away with it. The CHAIRMAN. Thank you very much. This concludes our hearing but I want to say to those people rep- resenting the different tribal groups that you have got a real op- portunity here. We've had quality people, important people from the Senate staff, Senator Domenici's office, from the minority staff on the House Interior Committee, and so on. They will be around informally for awhile to answer your questions or maybe to discuss specific amendments. I am sure they would be glad to hold on a PAGENO="0108" 100 few minutes here and talk to anybody who might wish to talk to them. I think this hearing has been important, helpful, and I, personal- ly, look forward to having the wrapup of the hearings on April 29, and then sit down with our people and see if we can put a bill to- gether. I thank you very much and this concludes this hearing. [Whereupon, at 3:24 p.m., the committee was adjourned.] [Additional material received on today's hearing may be found in the general appendix.] PAGENO="0109" THE INDIAN HOUSING ACT OF 1982 SATURDAY, APRIL 24, 1982 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Rapid City, S. Dak. The committee met, pursuant to call, at 9:30 a.m., in the Hilton Hotel, Rapid City, S. Dak., Hon. Pat Williams, presiding. Mr. WILLIAMS. This hearing of the House Interior and Insular Affairs Committee is called to order. This is the third day of hearings the committee has held on the Indian Housing Act of 1982, H.R. 5988. A day of hearings was held in Washington, D.C., on April 1. Another day of hearings was held in Tucson, Ariz. on April 14. Our Interior Committee will complete hearings on this legisla- tion in Washington on April 29. This legislation creates within the Bureau of Indian Affairs a comprehensive Indian housing program. Although the existing De- partment of Housing and Urban Development's Indian housing program has met Indian housing needs with some degree of suc- cess, the administration has targeted public assisted housing pro- grams for termination. No moneys have been requested by President Reagan for Indian housing for the coming year or years. H.R. 5988 has been developed by the Interior Committee and we are utilizing it as our discussion point in an effort to determine, first, how best to meet the needs regarding Indian housing and, second, to protect Indian housing from termination, should the ad- ministration proposals be accepted. During the development of this legislation, various elements of the Indian community, as well as several Federal agencies, were in- volved. There are three main parts to this legislation. First, the bill gives a statutory basis to BIA's existing housing improvement program in order to make housing available to Indian families who have no ability to pay for their own housing or who, because of extreme geographic isolation or other extreme cir- cumstances, simply cannot acquire housing. It is estimated that 20 to 30 percent of Indian families are in this category. Title II of the bill would establish an Indian housing finance fund to provide housing assistance to Indian families who, because of their income level, have some ability to pay for their housing, but cannot support a full mortgage payment. Financing would be available to Indian tribes to provide housing assistance to tribal members. Under this title sanctions on both the (101) PAGENO="0110" 102 tribes and individuals would be instituted for failure to pay. It is estimated that 60 to 70 percent of Indian families would qualify for the Indian housing finance fund. Title III of the legislation provides housing assistance for the ap- proximate 10 percent of Indian families who have income sufficient to support an average house mortgage but who, because of the trust nature of their land, cannot get a mortgage loan. A Federal guarantee would be provided for their loan. The purpose of this hearing and other hearings that have been and will be held on this legislation is to receive advice from a broad range of witnesses. I want to emphasize that this bill is open for change. It is not final. We are here today to receive your advice. Today we will be taking testimony from tribal witnesses from the Great Plains and Great Lakes areas. While the committee will not be able to hear from all Indian tribes and organizations today, our hearing record will remain open until May 4 for submission of written statements. Before going to the many witnesses we have scheduled today, I would like to reiterate a statement made by Congressman Udall, chairman of this committee, at earlier hearings on this bill. For Chairman Udall, myself, and for my colleague, Tom Daschle, I want to make it very clear that we are not proposing the elimina- tion of the HUD Indian housing program, and this bill does not provide for the transfer of that program to BIA. We will continue to support an effective HUD program and will work with the Indian tribes toward that goal if that is what the tribes want. But, if the President is successful in terminating the HUD pro- gram, we want to assure that American Natives are not denied an aggressive, workable, and needed housing effort. Our Interior Committee has worked with representatives of the Indian community and other interested people to develop this legis- lation. Let me repeat and emphasize that this is not a final bill. I am informed that our committee has received many fine suggestions for improving the legislation. I know that we will hear from the tribes here today with addi- tional suggestions to improve this bill. I am delighted that I have an opportunity to share this committee with my colleague and friend from this State, Tom Daschle. As fate-has it, Tom and I serve on different committees in the U.S. Congress, but I know of his good work on his committees and I am pleased to have his expertise with us here on the Interior Com- mittee. Tom. Mr. DASCHLE. Thank you, Mr. Chairman. I think I can say for all those present in this room, as well as for the many residents of South Dakota who are not able to be here today, how honored we are that you have brought this committee to South Dakota for these most important hearings. Without question you have established yourself as a recognized leader on the Interior Committee and for us to have a man of your capability and stature here is indeed a memorable time for us. This is an innovative approach to housing. I am delighted to have an opportunity to sit with you at these hearings this morning PAGENO="0111" 103 to obtain the testimony, the valued input that we are going to get from the many tribes represented today. I think that we need to reiterate, we are not looking upon this as a substitute, but simply as one other option, should it not be within our power to keep the housing program within HUD. We want to do that. We want to insure that we maintain con- tinuity in the program, but we also want to make sure that the housing needs of all Indian tribes are met. That seems to be the purpose of this legislation and I am anx- ious, as you are, to get on with the testimony this morning. Mr. WILLIAMS. Thank you very much, Congressman. We have a good many witnesses plus some additional witnesses who have asked to be added to the list, and we have done that. In addition, we will have some substitutes as the day progresses. Because we want to hear from everyone and because this is a 1- day hearing, I am going to enforce time constraints. I am going to have an absolute limit for all testimony of 10 minutes. I would like those 10 minutes to include questions. So, at about 8 minutes in your testimony I am going to tap my gavel here lightly and at 10 minutes in your testimony I am going to ask, if you have gone that long, that you complete. I hope we can hear all it is that each of you has to say in 10 minutes, because we do want to hear everything all of the wit- nesses want to say. If we are going to get that done today, we will have to enforce strict time limits. Our first witness today is the chairman of the Northern Cheyenne Tribe in Montana, Mr. Allen Rowland. Allen, if you will come to the witness table please, we will be de- lighted to hear your testimony. [Prepared statement of Virginia Toews may be found in appendix III.] PANEL CONSISTING OF VIRGINIA TOEWS, EXECUTIVE DIRECTOR, NORTHERN CHEYENNE HOUSING AUTHORITY, LAME DEER, MONT.; AND ALLEN ROWLAND, PRESIDENT, NORTHERN CHEY- ENNE INDIAN TRIBE Mrs. TOEWS. Honorable Mr. Williams, we are pleased to be invit- ed here and I think that this is significant. If this bill goes through and we get housing, Park Service may allow us to recommend your statue on the great monument out at the hills here because this is a very, very important act for Indian people and Indian housing. My name is Virginia Toews. I am executive director of the Northern Cheyenne Housing Authority at Lame Deer. Mr. Chairman and members of the Committee on Interior and Insular Affairs, it is a pleasure to be invited to comment today on the Indian Housing Act of,1982. Receiving good news into an area of so much to the contrary, this bill is a source of hope from your committee who are taking an active part in solving the persisting need of a large supply of decent, safe, and sanitary housing for Indian communities. The Department of Housing and Urban Development has been the vital resource in meeting Indian housing needs over the past 20 PAGENO="0112" 104 years. This special program has been destined for extinction since the early seventies, and received the final blow when Philip Abrams, General Deputy Assistant Secretary for HUD, testified before your committee on March 4, 1982, when he said our actions regarding Indian housing were taken care of high costs, excessive Federal requirements, management problems and the consequent need to initiate a more effective and less costly Indian housing pro- gram. Despite HUD's inadequacies, approximately 40,000 units were de- veloped for American Indians nationwide. Though progress has been made, fewer than half of the targeted 90,000 new units have been achieved. For the Northern Cheyenne, this translates into 648 families in desperate need of housing, not to mention those on the verge of needing housing or the needs of new family formations which the tribe and the housing authority are incapable of servic- ing. To have the only significant Indian housing program wiped out in a poison pen letter to the Office of Management and Budget tying an emotional bond between the Department and administra- tion accelerated panic among the applicants on the very lengthy waiting list at our housing authority. We commend your committee and staff for developing a compre- hensive housing bill taking all levels of family income into consid- eration. We have reviewed H.R. 5988. The No. 1 commendable feature is, it seeks to eliminate a contri- bution to the Federal deficit. Your committee should be getting love notes from the adminis- tration for such an heroic effort instead of poison pen letters. Other commendable features in comparison to bondage under HUD are: One, it provides a comprehensive housing program with less fed- eralism and less Federal control. Two, it provides for greater flexibility for tribal leadership and tribal control and encourages climatic and cultural design of units, a cost effective delivery system with built-in management controls, accountability and promotes local flexibility in decisionmaking. Three, its requirements provide for minimal need of technical as- sistance and allows an accounting system that any certified public accountant would understand as opposed to HUD's complicated - system that even they don't understand. Four, it provides for standard housing for all income levels in- cluding substantial rehabilitation and acquisition of new or stand- ard housing. Five, it eliminates the hassle of tribes dealing with 16 congres- sional committees as it now does with the HUD Indian programs. Not only would the enactment of this law reduce that number to six committees, but would put the housing program in committees that traditionally deal with the affairs of Indians. Six, it dovetails and coordinates only two agencies-the Bureau of Indian Affairs and the Indian Health Service, instead of the non- functioning, complex and cumbersome tn-agency requirement under HUD. PAGENO="0113" 105 Seven, it allows each tribe to carry out its own responsibilities; and when it does not, only that tribe is given due process without penalizing other tribes. Eight, it mandates, without fiscal limitation, funds under each title to carry out related housing activities. Those major concerns I will leave to the president of our tribe, Mr. Allen Rowland, sitting to my right, to address to you. The Northern Cheyenne Tribe has given considerable thought to the bill and are ready to offer suggestions and improvements to insure a workable program. While the Northern Cheyenne Housing Authority still supports the existing HUD-assisted Indian programs, in their present form we would also support HR. 5988, provided major revisions such as those outlined by president Allen Rowland of the Northern Chey- enne Tribe would be incorporated in the act. In conclusion, we also need assurance that the intent of this bill won't fade into oblivion within a short time because of frightening words found in section 203(b) "p * * Subject to the availability of appropriations. * * Thank you for your due consideration of these comments and re- quests in behalf of the 648 Northern Cheyenne families who des- perately need decent housing and for tl~se about to declare their need. Mr. WILLIAMS. Thank you very much, Virginia. Chairman Rowland, it is nice to have you here today and you may proceed. Mr. ROWLAND. Thank you. My name is Allen Rowland. As president of the Northern Chey- enne Indian Tribe, I wish to extend my personal thanks to Mr. Udall, Mr. Kildee, Mr. Williams, and other congressional cospon- sors for recognizing the grave and serious housing problems con- fronting the majority of Indian tribes today. The sincere concerns of these congressional members have result- ed in the drafting of H.R. 5988, which I interpret as proposing spe- cific alternatives and options for Indian people who reside within Indian territories to acquire safe, decent, and suitable housing. After careful deliberation and consultation with members of the Northern Cheyenne Tribal Council, I wish to address some rather serious assumptions within the proposed bill which, in my opinion, must be corrected before I or the Northern Cheyenne legislative body can extend our full support in the proposed action. For the past 20 years, the Northern Cheyenne Tribe has system- - atically and intentionally consolidated its land holdings within the exterior boundaries of the reservation. Because of this extraordinary foresight, the Northern Cheyenne Tribe is one of the few tribes which owns 99 percent of all lands within its reservation confines, 90 percent being in trust status. To further clarify this statement, this means that only 1 percent of the land within the reservation area is not Indian owned or con- trolled. The tribe has dearly sacrificed its social and economic well- being in order to insure that its reservation is intact and solely owned and controlled by its membership. Still, these tribal lands are considered the last and final home of the Northern Cheyenne people. 18-934 O-83---8 PAGENO="0114" 106 As I apply these facts about the Northern Cheyenne Tribe and its land base to the proposed bill, I am deeply distressed and con- fused about those provisions within sections 103, 104; sections 205(a), 205(b)(1), 205(d), 208(b), 209(b)(1), 209(c), 211(c) (2) and (3); sec- tion 302, section 309(a)(1), section 309 (b) and (c), section 310, which allude to the pledging and assignment of trust lands as viable mortgages for those Cheyenne landowners who may wish to con- struct, acquire, or rehabilitate a home on the reservation. Personally I am outraged with the assumption that trust status land is suggested as proper security for tribal housing, given the fact that the Northern Cheyenne Tribe has consistently rejected those proposals which were simply diminishing tribal trust lands status. Certainly the Northern Cheyenne Tribal Council and I are in no way opposed to the concept of attaching trust accounts of individu- al tribal members to insure payment on an incurred housing loan. Yet if trust land is the crux for a mortgaging procedure which gravely jeopardizes the status of Indian-owned land, I implore you to reconsider this characterization and immediately omit the pledg- ing of trust lands as collateral pledges from the bill. The second presumption which distresses me as much as does the suggestion to obligate individual trust lands for Indian housing se- curity is that of a tribe being liable for the debts of its individual tribal members and this is stated in section 205. As the bill is currently drafted, a tribe must pledge its current and future trust funds, which I might add are normally derived from the leasing of tribally owned lands and leasing or sale of other natural resources, as security for the proposed housing. Again, I must stress that the Northern Cheyenne Tribal Council and I are in absolute agreement that an individual tribal member or family desirous of acquiring decent reservation-based housing must, indeed, obligate his or her individual assets other than trust land. However, for the Northern Cheyenne Tribal Council and myself to pledge existing and future trust funds is not only absurd, corpo- rately and legislatively irresponsible, but constitutionally illegal. I draw your attention to the fact that neither the U.S. Govern- ment, nor Exxon Corp., for that matter, is liable for the debts of its individual citizens or employees. Certainly it is ridiculous to assume that the Northern Cheyenne Tribal Government in its legislative and corporate authorities shall, with the adoption of such proposed language, be liable for all debts of individual tribal members. I have attached a copy of the amended Northern Cheyenne Tribal Constitution and Corporate Charter which specifically define the legislative powers and responsibilities of the tribal council and the restrictions and latitudes for uniform tribal economic develop- ment. Amended tribal constitution: Article IV, section 1, C, E, and N; article V, section 1; article IX, section 2, 3, 4, and 5; Corporate Charter; provision 1, provision 5(b) (1), (c), (d), (f); provision 7. More specifically, it is not a responsible legislative nor corporate action of the tribal governing body to pledge already limited tribal assets to be used for the benefit of all tribal members, as just compensa- PAGENO="0115" 107 tion for members who ignore or abuse legal obligations or individu- al debts. I am, therefore, suggesting that the Northern Cheyenne Tribe through its corporate authorities charter a tribal housing corpora- tion approved by the U.S. Secretary of the Interior and that all ex- isting reservation HUD units, yet unpaid for, be transferred to the corporation and thereby considered as corporate assets. This housing corporation would realistically operate as a reserva- tion-based housing loan institution for housing excluding the com- mitment of tribal assets, such as trust lands or funds. Quite frankly, I and the Northern Cheyenne Tribal Government cannot nor will not consider obligating assets or trust funds to the proposed legislative action as drafted. My last concern in the proposed bill is that of statutorily obligat- ing Indian individuals and families to a loan repayment schedule of 20 percent of the adjusted gross income. Refer to section 209(a), (b) (1), and (4). This suggested statutory repayment schedule was designed for a national inflationary period and is totally inconsistent with the economic realities on an Indian reservation that is experiencing a 47-percent unemployment rate of its employable labor force. I must point out that there is no industry nor private business sector on the Northern Cheyenne Reservation. Consequently, em- ployment of employable tribal members hinges on the legal abili- ties of the tribe to negotiate employment agreements with off-reser- vation industry. Normally such industry has expressed extreme reluctance to fully commit tribal employment opportunities which will extend 5 years or longer, least of all 25 years or the proposed life of a hous- ing loan. I therefore implore the committee members and staff to omit this section from the draft bill and address such loan repayment proce- dures and schedules, preferably subject to negotiable repayment schedules which do not exceed an excess of 17 percent in the forth- coming regulations as the bill is redrafted and ratified. In conclusion, I am requesting that the committee reconsider these major problematic concepts within H.R. 5988, as drafted, so that the Northern Cheyenne Tribal Council and I may offer our full and unconditional support for a comprehensive Indian housing bill which will allow Northern Cheyenne tribal members the oppor- tunity to finance housing of their choice, at reasonable costs and without jeopardizing their last and final homelands. I can personally insure the committee that the Northern Chey- enne Tribal Council and I will design and adopt all tribal laws nec- essary to enforce adequate housing construction on the reservation and provide viable collection mechanism for fair and just operation of a reservation-based housing bank. I thank you for your time, consideration, and commitment to im- prove housing opportunities on the Northern Cheyenne Reserva- tion. Mr. WILLIAMS. Thank you very much. Virginia, I want to com- mend both of you, particularly you, Allen, for your succinct and frank statement here today. PAGENO="0116" 108 We have taken close notice of both your support and your objec- tions to certain parts of the bill. We appreciate you both being here. Thank you. Our next witness is Mr. Joe American Horse, president, Oglala Sioux Tribe. With him is Joe Little, housing director. [Prepared statement of Joe American Horse may be found in ap- pendix III.] PANEL FROM THE OGLALA SIOUX TRIBE CONSISTING OF: JOE AMERICAN HORSE, PRESIDENT; DON STEEL, VICE PRESIDENT; AND JOE LITTLE, HOUSING DIRECTOR Mr. AMERICAN HORSE. Good morning, Mr. Chairman. On behalf of the Oglala Sioux Tribe, I wish to express my appre- ciation for this opportunity to present testimony regarding the House of Representatives bill H.R. 5988, the Indian Housing Act of 1982. My name is Joe American Horse and I am the president of the Oglala Sioux Tribe. The Oglala Sioux Tribe is the second largest tribe in the United States with an on-reservation population of 13,500 members. The Pine Ridge Indian Reservation covers approximately 2 mil- lion acres and is located in southwestern South Dakota. The 1981 housing inventory compiled by the Bureau of Indian Affairs showed that one-third of the existing housing units on the reservation are substandard and there is an immediate need for 2,500 additional housing units. I am pleased that the Congress of the United States has seen fit to express its special relationship with the Indian peoples and tribes of this Nation through the legislative effort outlined in H.R. 5988. The proposed legislation provides a framework within which sorely needed housing requirements can be realized while main- taining the spirit of local Indian self-determination. However, I feel there are some areas of the bill requiring clearer definitions, changes in language, and additions, -which I will ad- dress following the format of the bill. Section 3(1). I feel there must be provisions developed to consider the rancher, farmer, fisherman, artisan, or other self-employed businessperson so the gross sales of his business are not used to de- termine his income, thereby creating a class of persons who are un- fairly charged. The need for housing on the Pine Ridge Indian Reservation cuts across all economic categories and I feel we must be open to meet- ing those needs. Section 102(a)(3). I recommend the committee consider the addi- tion of the words "and or used" to be inserted after "new" and before "standard housing" thereby allowing the tribe or tribal housing agency expanded options in developing alternatives to meeting housing needs. The option to purchase housing developed under other funding authorities should not be limited, particularly in view of the very limited refinancing opportunities available on reservations. PAGENO="0117" 109 Section 203(b)(2). I recommend the addition of language requiring technical assistance for tribes and tribal housing agencies not meeting a determination of the administrative, management, and accounting capability to implement a proposed housing project. Without such protection and direction, the potential for bureau- cratic arbitrary abuses will be unchecked. I further recommend that the involvement of tribes and tribal housing agencies be required in establishing the details of funding criteria. Section 205(a). I recommend the development of language pro- tecting the lands of the tribe as well as any funds obligated to the purchase of lands or the repayment of loans for the purchase of lands. The Oglala Sioux Tribe has the income from many units of acre- age assigned for the repayment of loans to the Farmers Home Ad- ministration. I do not feel that it would be appropriate to jeopard- ize the standing with a Federal agency or even the status of lands by leaving the language as it is currently in the bill. Section 205(b) (1) and (2). I recommend the development of lan- guage requiring due process through tribal courts and offering full faith and credit to tribal courts and judicial systems. I feel this provision is necessary to prevent administrative laxity and abuse under the current language in the two provisions, and to continue meeting the direction of numerous court decisions regard- ing due process requirements. Section 205(d). I feel a 30-day period may be too short a time period for due process principles to be served and recommend a 90- day period to pay the amount in default and to provide the option to negotiate a payment plan. Section 206(a). I recommend there be added after "Provided, That this initial disbursement shall not exceed $50,000 or 2 percent of the total project" the statement "or whichever is greater." This addition will insure that an agency developing a large project has adequate resources to properly plan and execute such projects. Section 211(b). I feel the tribe and tribal housing agency should have the option of making annual payments to the Government. This method will allow the tribal housing agency to invest the funds and give a larger amount to the Government on an annual basis. Section 401(a), (b), (c). I recommend there be included a provision limiting administrative and employee costs with the Office of Indian Housing Programs to an amount not to exceed 2 percent of the total appropriations, to insure that the costs of administration does not cut into the program. Too often we have seen the bureaucratic structure grow un- checked while the people for whom Congress appropriates moneys receive less and less services. Finally, because we have experienced, time and time again, the administrative agency responsible for promulgation of rules frus- trates, ignores, and outright violates the intent and spirit of con- gressional action with the rulemaking process, I respectfully re- quest that a provision be developed and inserted to insure that pro- tection be provided. PAGENO="0118" 110 While there are distinct principles of separation of powers, the administration has not always acted in the best interests of the law, and it is incumbent upon Congress to insure the creative use of the checks and balances which exist to require full implementa- tion of the law, in its full spirit and intent. To this end, I recommend that Congress set a specific timeframe for full implementation of the act, consistent with their appropri- ations authority, and require a representative task force to be in- volved in the rule formulation process. In my review of H.R. 5988, I found the bill to meet many stand- ards and qualifications necessary for fulfilling the pressing housing needs on the Pine Ridge Indian Reservation and which are con- cerns of the Oglala Sioux Tribe. I feel the bill will allow more control and accountability in the process of providing safe, decent, and sanitary housing to Indian people, and I support this concept. While we have had many problems with the Bureau of Indian Affairs and the Department of the Interior in the past, we feel their records of advocacy for Indian peoples and tribes is a solid one and they can work with us to resolve the housing needs which now exist on reservations. I hope the adoption and implementation of the Indian Housing Act of 1982 will effect a streamlining of the congressional process now being used by the Federal Indian housing authorities under the Department of Housing and Urban Development. I hope my concerns were stated in reasonable but concise detail to be of service to the hearing team and the committee personnel. Again on behalf of the Oglala Sioux Tribe, I wish to thank you for this opportunity to express my concerns and offer my ideas and support. I hope we can continue to work together to resolve the housing needs existing on my and other Indian reservations. Thank you. Mr. WILLIAMS. Thank you very much, Joe. For the record will you identify the people who are with you at the witness table? Mr. AMERICAN HORSE. The gentleman on my right is Mr. Joe Little, housing director for the Oglala Sioux Tribe Housing Author- ity, and on my left is Mr. Don Steel, vice president of the Oglala Sioux Tribe. Mr. WILLIAMS. You mentioned that a recent housing inventory demonstrated that about one-third of the existing housing units on your reservation are substandard. You further stated there is immediate need for about 2,500 addi- tional housing units. Will you discuss for the committee your general sense of the housing conditions on the reservation? Mr. STEEL. First, I would like to thank you for coming down and getting the tribal input on this new bill. Thank you for not introducing it in the Congress without our input, and thanks, too, to Mr. Daschle, for his concern and interest in attending here. It seems that our great need for housing is being shown by you in this bill. We appreciate HUD's endeavor, but this seems to ad- dress our needs with the changes that we recommend. PAGENO="0119" 111 The housing on the reservation, not through any fault of anyone, there has become a deficit in several housing authorities. It is the fault of the national level HUD, regional level HUD, the housing authority, politicians on the reservation, tenants, everyone, and over a long period of time. It seems it came about by HUD not knowing exactly what their rules and regulations are, and these are spelled out in the bill that you are presenting. The HUD houses we have need maintenance and upkeep on them. They are very limited in serving the needs of the Oglala people. We have young families just trying to get established with no housing. They have to live with their in-laws, relations. This cre- ates a conflict with the families. We have young families disintegrating, falling apart. The other housing besides the HUD houses I know for a known fact are some log houses. This is addressed~ in title I. I don't believe there is enough money in there to address all of these situations. I know it is not under your authority, but I have a lot of people that haul water in cans for the basic necessities of life. For cooking, for washing. I have people that don't have any electricity in their houses. Through your HIP program we have tried to improve the envi- ronment of these types of houses by providing sheetrock for the in- sides of the houses and to winterize the houses, fix the roofs so they don't leak, and to fill up the cracks so they are not as cold. We appreciate your effort in this area, but we do need more money in that field. Our housing is substandard, like we said, one- third of it. I think BIA, in the census figures, our reservation has an unem- ployment rate of about 82 percent. The housing needs they have stated are 2,500 units, but it is greater than this. This is not taking into account the younger families getting started. Mr. WILLIAMS. Would you care to add anything to that, Mr. Little? Mr. AMERICAN HORSE. Mr. Joe Little. Mr. LITTLE. Again, I would just like to reiterate the vice chair- man and the chairman's greetings to you and your interest in Indian housing. Our tribe, as well as the housing authority, feels that this pro- gram is a viable one and that it meets many of the needs of all of our people. The very low income to the very high income. Again, we do ap- preciate your time and concern in coming here. Mr. WILLIAMS. Thank you very much. We appreciate having all of you gentlemen with us today. Mr. STEEL. Could I say one more thing, please? Mr. WILLIAMS. You bet. Mr. STEEL. I would like to stress what the Northern Cheyenne have brought out in using as collateral the trust land. It is one of our objectives to establish a land base of our people. We believe this is where the future of our people lies. This is where our culture and heritage are going to be kept alive, with the PAGENO="0120" 112 land, and we would like to stress that point that Northern Chey- enne made on using the trust land as collateral. Also, in our bill, using obligated trust funds as collateral and pos- sibly taking of obligated trust funds because in establishing this land base that we are trying to do, we have, through FHA, several loans and trust funds obligated to FHA. Thank you. Mr. WILLIAMS. Thank you, gentlemen. Our next witness is Mr. Darrell Wadena, president, Minnesota Chippewa Tribe. Darrell. [Prepared statement of Darrell Wadena may be found in appen- dix III.] STATEMENT OF DARRELL WADENA, PRESIDENT, MINNESOTA CHIPPEWA TRIBE, ACCOMPANIED BY GEORGE V. GOODWIN, EXECUTIVE DIRECTOR Mr. WADENA. Mr. Chairman, members of the committee, staff. This is going to be brief. We have got a plane to catch so we have to get going. My name is Darrell Wadena; I am president of the Minnesota Chippewa Tribe, comprised of six distinct bands, White Earth, Leech Lake, Nett Lake, Fond du Lac, Grand Portage, and Mille Lacs. Accompanying me is Mr. George V. Goodwin, executive direc- tor of the tribe. We are opposed to the bill as proposed. The concept of providing for Indian housing through a mechanism other than the Depart- ment of Housing and Urban Development has merit and could be supported. With the reality of the administration's position to elim- inate public housing, we must explore other options for Indian housing. It has long been argued that the public housing system, through the Department of HUD, was inappropriate for Indians and was thrust on us as an afterthought. This was done without considera- tion for the consequences of its complex and inappropriate delivery and management systems. These systems were developed for large metropolitan housing authorities with large trained staffs. Now, after years of struggling with this cumbersome system and winning congressional and administrative concessions, we have achieved success in the establishment of an Office of Indian Pro- grams within the Department that is responsive to our circum- stances. Now, because of an unconcerned, insensitive President, we are faced with losing our housing program. We are strongly supporting the continuation of the public hous- ing program for Indians presently being delivered by the Depart- ment of HUD Office of Indian Programs. In the event that the administration does achieve its inhuman goal of dismantling the public housing system, we could support the proposed housing program being considered here today. This bill could be acceptable if the following amendments are made to it: The first and most significant of our concerns regards section 205 of title II where the Secretary is proposed to be empowered to attach any obligated or unobligated funds held by the United PAGENO="0121" 118 H States for the benefit of any Indian or Indian tribe. This proposi- tion, as presented, is an insult to the integrity of tribal leaders. The Minnesota Chippewa Tribe, in cooperation with the State of Minnesota, has developed a housing program which we are proud of and which is somewhat similar to that being proposed in title II of this bill. Since the program's inception in 1976, the State of Minnesota has appropriated over $11 million for the housing needs of the Min- nesota Chippewa Tribe which have been loaned to us without the intolerable restrictions the U.S. Government is proposing here. Over the 5-year period that we have had State funding, we have developed 370 houses on scattered sites without any loss of the principal sum loaned to us. The U.S. Government, within its trust responsibility, should be responsible for adequately housing its Indian people. Yet, while proposing to support Indian self-determination with resources far beyond the magnitude of the State of Minnesota, it cannot supply these needs without overly restricting tribal leaders with section 205 of this bill. I implore this distinguished body to take a look at and a lesson from the State of Minnesota and treat us as fairly as the Minneso. ta Legislature and Governor have. To make this bill acceptable to tribal governments, section 205 of title II of this bill, with its supporting sections 209 No. 4 and 210 No. 3 must be stricken. It is our belief that there are already sufficient safeguards within this bill to assure the program's integrity. We also question the administrative capability of the Bureau of Indian Affairs to develop and implement a program of this magni- tude. We also question the administrative ability of the Bureau of Indian Affairs' ability to administer this bill. This is as important as the proposed program. There are many examples of the Bureau's inability in this area. It is our belief that if this bill is implemented as it is proposed, the Bureau of Indian Affairs could not develop the staffing capabil- ity anywhere near that of the existing Office of Indian Programs within the Department and, if history repeats itself as it always does with the Bureau of Indian Affairs, we will never achieve the delivery and management capabilities that are proposed to be eliminated. - We are proposing that if the Department public housing pro- grams are eliminated, as the administration is proposing, that the existing Office of Indian Programs' staffs, dealing with develop- ment of Indian housing, be folded into this new program. It would be a shame to lose this efficient supportive staff capability. We believe this bill should also be revised to limit the Secretary's discretionary powers over the proposed housing. This bill, as pro- posed, is in direct opposition to the principle of Indian self-determi- nation and herein is striving to limit the elected tribal leadership role, while strengthening that of the Secretary. This question must be addressed and revised throughout the entire bill. At a minimum, determination, when made, must be PAGENO="0122" 114 made by the Secretary or his designates in consultation and with the approval of the tribal government. We see that there is too much leeway here for Bureau staffs to make determinations which are not in line with the tribal govern- ment's wishes. There are also references throughout the bill that include the Indian Health Service as responsible for providing facilities and as- sistance. We believe that these references must be stricken and the water and sanitation responsibility should be incorporated into the hous- ing bill and provided for with appropriate authority being trans- ferred from the Indian Health Services appropriatiori~ We have too often encountered administrative incompetency and runarounds by the Indian Health Service which has proven its in- ability to work together with the housing programs when needed. We feel the triagency agreement of the 1960's did not work and that the biagency cooperation called for herein will not work any better. Unless the delivery mechanism necessary for this housing is pro- vided for under one administrative structure, the problems of the triagency agreement are inevitable. The restrictions on housing being built only on trust lands should also be revised to allow for utilization of fee lands both on or near reservations. The Minnesota Chippewa Tribe, in development of housing, has repeatedly found it necessary to purchase land for housing pur- poses. A large proportion of our lands are low and inaccessible and not adaptable to housing construction. We have found that lands are available on a scattered site basis that can be purchased at rea- sonable costs. The annual review of income proposed without restrictions could cause considerable problems, as it does now within the HUD re- quirements. We propose that a 5 percent maximum per year be inserted here so that motivated self-improvement in our society is not stifled by overly penalizing homeowners for improving their financial posi- tion. In the area of construction by Indian-owned enterprises, allow- ances should be made to allow for letters of credit and/or 10 per- cent holdbacks to assure quality and completion of the projects. Housing construction has been and should continue to be recog- nized as a form of labor for Indians and all efforts should be made to assure this construction to go to Indian enterprises. There should also be consideration of and allowance for the man- agement and modernization of the existing HUD housing stock. Without incorporating existing HUD programs with this program, unnecessary confusion will result. It is also inevitable that because of the lack of concern by the administration for public housing, with the ensuing administrative funding cuts, the existing housing will deteriorate. This must not be allowed to happen. We also see the need for an Indian advising group made up of tribal designated leaders to assist in the drafting and reviewing of the regulations and program. PAGENO="0123" 115 In conclusion, the Minnesota Chippewa Tribe strongly opposes the proposed Indian housing bill as written. In the event that the public housing program does get eliminat- ed, we could support the proposal but only after considerable revi- sion. Thank you for the opportunity to testify on this most important issue. Mr. WILLIAMS. Thank you very much, Darrell. The committee has noted your suggestion in opposition to the legislation as it is now written. We appreciate you taking the time to come up here and share your thoughts with us. We will let you go catch that plane. Mr. WADENA. Thank you. Mr. WILLIAMS. We also have another person who has a transpor- tation difficulty. I am going to ask that they come forward now. I am going to insert them in our list of witnesses. That is Ken Cadu with the Kickapoo Tribe in Kansas. STATEMENT OF M. KEN CADU, CHAIRMAN, KICKAPOO TRIBE, KANSAS Mr. CADU. Thank you, Mr. Williams. Mr. Williams and staff members, I want to thank you for this op- portunity to testify here today. Just as my ancestors have done in the past, I have traveled many miles to meet the people who represent the Great White Father. I think what comes to my mind and the Kickapoo people when reading this bill is that it is a good bill which needs some revision. One of the problems that exists is that it does not, and I could very easily bring out the importance of the tribe's ability to negoti- ate with the people on the staff who are going to be running this program if the bill is adopted. Many times bills such as these are written to alleviate a needed problem, just as this is. All of the tribes have the need for housing. The problem and the danger comes not so much in the bill as it is written, but in the mechanism that follows in writing up the imple- mentation of the bill. I think here the real danger lies in how the bill is going to be administered, how the program is going to be run, because we have problems in the HUD program, not because of the need for the pro- gram, but because too many bureaucratic regulations are written into the program. - These regulations act as a constraint in allowing the tribes to run the kind of program that would be more beneficial to each in- dividual tribe. I think this bill needs to bring out that individual- ness of each tribe and allow that the housing committees or hous- ing agencies, as the bill speaks to, can have the power to negotiate each individual problem area. When I say each individual, it is because each tribe is not the same. It would be impossible for one bill to fit the needs of every tribe. Every tribe has its own individual characteristics and its own individual problems, and the bill, as it is written, or any bill as it is PAGENO="0124" 116 written, does not answer or meet all of the needs, or answer all the problems. So we must add to this bill, to every section of it, add that the final decisions in all areas would rest and rely on the negotiation of the housing agency and the program staff because no tribe wants to weaken or bring into jeopardy the trust responsibility. The trust responsibility could be endangered by this bill. I think we have to be on guard against that happening. I think every tribe here is aware of that danger, and every tribe in its own way voices that danger. The trust responsibility is something that was brought about not by a single administration or by legislation, but it was brought about because of treaties between ~each individual tribe and the U.S. Government as one nation to another. We must remember that, always keep that foremost in our minds, and it is a good thing because of that it is a good thing that this bill is being introduced, because the Indian people should have a separate housing bill. We should not be included in other housing programs because we do not enjoy special trust relations because we are a member of a minority group or because we are poor people, but it is because we are members of nations, individual tribal nations. So this is what we must always keep foremost in our minds' and work to make this bill a successful housing bill for the Indian tribes. I want to say here that the Kickapoo people will support this bill, given that these considerations can be added to the bill. Mr. WILLIAMS. Thank you very much, Ken. We appreciate know- ing the thoughts of the Kickapoo Tribe. You raise an interesting matter, and that is the suggestion that the Congress write laws in such a way that they meet and allow flexibility for each tribe. When Congress has tried to do that in the past, we find that sometimes such legislation is unworkable and the American citizen objects to a laxness and a flexibility that allows what many people believe to be a misuse of their funds. Not necessarily tribal misuse of funds, but by localities, States, counties, cities. So, as the Congress tries to tighten up the law, and make the law or the regulation more constrained, there are then objections on the other side saying this is inflexible and it fits fine for New York City, but it doesn't fit very well for Rapid City. It is a difficult problem for the Congress. I appreciate the diffi- culties that you have, likewise, trying to deal with it. Mr. CADU. Yes, sir. I would like to add a little more in that area. I hear what you are saying, and I appreciate your responsibilities and your position. When I talk about the things that I talked about there in regard to that area, I think what I am wanting is to have the Congress depend more upon the tribal governments to become responsible. More that the Congress would allow them to become responsible. I know in our HUD program just as many, we have a problem in our accounts receivable area. The problem started from the begin- ning because the HUD regulations, or the program as it is written, did not give the tribe full authority to run its own program. PAGENO="0125" 117 If that full authority was given to the tribe, we would very defi- nitely at this time have a better run program. This is what I am talking about. This bill needs to allow each tribe to negotiate and come to an understanding on the areas where the tribe knows what has to be done. We have never had in our program the jurisdiction to really run our program. We want that responsibility. Mr. WILLIAMS. Thank you very much. The next witness is Mr. Auguste Little Soldier, vice chairman, Fort Berthold Tribe, North Dakota. PANEL FROM THE FORT BERTHOLD TRIBE OF NORTH DAKOTA CONSISTING OF: AUGUSTE LITTLE SOLDIER, VICE CHAIRMAN; NATHAN PAUL GOODIRON, MEMBER HOUSING AUTHORITY; AND ROY BIRD BEAR, MEMBER HOUSING AUTHORITY Mr. LITTLE SOLDIER. Mr. Chairman, members of your committee, it is an honor to be asked to speak in behalf of the three tribes on the Fort Berthold Reservation in North Dakota. I have with me one of the board members of the housing authori- ty. To my left Roy Bird Bear and to my right is Nathan Paul Good- iron, also a council member from the tribes. We do not have any statements here at the present time but we would sure get them to you has soon as possible. Mr. WILLIAMS. Our hearing record will remain open until May 4. If you will send them, we will include them in the record. Thank you. Mr. LITTLE SOLDIER. Our reservation is more or less kind of a unique situation. We are scattered into five different counties. We lost the heart of our reservation to the Garrison Dam, which has been a problem to us, for us throughout all these years, since 1950. We are still suffering the effects of that Garrison Dam. We have five counties we are involved in. We feel we have been treated unjust. We have lost a lot of our opportunities that we have. We are scattered into five different segments due to the Gar- rison Dam. My place is on the south southern segment. It takes me 21/2 to 3 hours, due to the weather, to go from my place to our headquarters in New Town. It has affected us, especially on the south side. In our housing, I think the bill, as it is, needs to be revised. I think that what you are doing here is very commendable, that you are looking at the Indian side of it, the problems we have and the problems that are existing and are going to exist for many years. I think you are doing a wonderful job when you come to the Indian people and say just what we would like to have. So at this time I would like to turn the microphone over to Mr. Goodiron. The other thing I want to say before I turn it over is I speak better when I have a TV camera on me. But since they are gone, I will have to turn it over to my copartner. Mr. GOODIR0N. Mr. Williams, because the ever-present need for new housing for Indian reservations has been dampened by current budgetary cuts by the Federal Government I recommend passage of PAGENO="0126" 118 H.R. 5988, also known as the Indian Housing Act, with, but not limited to these modifications. This pamphlet contains recommended modifications of the Indian Housing Act by J. F. Wagonlander, retained by the Fort Berthold Housing Authority. The key is section 205. The three affiliated tribes use trust funds from the yearly operating budget. It is not inconceivable but possi- ble that the three affiliated tribes could operate a percentage, rather than all trust funds, of their yearly interest moneys to meet delinquent financial obligations. In closing, I am keenly aware of the May 4 deadline for com- ments and will address this to other tribal officials for further com- ments. Thank you. Mr. BIRD BEAR I also want to thank you for appearing here before the tribes and giving us a chance to say what we would like to say about the act before Congress takes it and passes it or does whatever it wants to. My experience, I have been elected in 1972. I have been around here for 10 years and I have seen a lot of programs come and go, some good ones I could say and some not so good. Anyway, to me this is a new program, another program for us. How long will it go before we have to orientate ourselves with a new program? We just got through with HUD at Fort Berthold. We finally came to understand some of the regulations, what it really means to the U.S. Government in their dealing with us in housing. This new act, nobody knows where it is going to be administered from. The Bureau of Indian Affairs, or Interior. But there is noth- ing definite said about what would be handling or monitor. I realize the tribes will be involved, but to how much, the extent of it. Like he was reading, Mr. Wagonlander said this will just be transferred into the Bureau from the Indian program under HUD. This should be done before. We have been dealing with the Bureau for many years and maybe we understand the Bureau. At Fort Berthold we need the housing. But the U.S. Government officials seem to tell us that it is up to the U.S. citizens. Every little thing has to go back to the public citizen of the United States who pay the taxes that we are subject to. Whether we are calling ourselves a nation or a tribe, we should somehow, the Congress of the United States should find a way to deal with us tribes because if we are going to be talking as a nation and not some tribal person under the U.S. Government, we must have some ways to negotiate housing, whatever we have. What I would say about the act here is that it sounds all right to me. But when it comes to trust property, trust land, that is where I would disagree with the title III, or whichever title that was. Anyway, it concerns the trust land. Like I say, if we are a nation, we are going to deal with this U.S. Government as a tribal people, we just go further in depth in hous- ing, not just treat it as another ordinary program that is going to PAGENO="0127" 119 come here for maybe 3, 4 years, and disappear and another new program appear. So, with that, I guess I would turn this over. I thank you for being here. Mr. WILLIAMS. Thank you very much, gentlemen. Roy, let me note that in my judgment you are correct. That just about the time you become used to one program and stability sets in, you become comfortable with it, the Congress undoes it and puts a new program in its place. Let me assure you that is not our intention. We want the current program administered by Housing and Urban Development to con- tinue. Your problem and our problem, those of us such as Tom Daschle and myself and Chairman Mo Udall, who support the current Indian housing programs, have is that the President wants to ter- minate the current program. If that happens, you need a workable effort to take its place and we simply have this legislation as backup so that your housing pro- grams don't fall through this safety net that someone is supposed to have constructed out there. We thank you gentlemen for your testimony. Mr. LITTLE SOLDIER. I would like to make one more comment for the record. They call me Gus Little Soldier. That is my rodeo name. I would like it changed to my real name, Auguste Little Sol- dier. I want to thank you again for giving us this opportunity and I hope that from now on you contact the tribes through the Nation on problems that exist, that are going to exist throughout our Nation, because we all are concerned about our Indian people which we represent. I want to thank you very much. Thank you. Mr. WILLIAMS. Auguste, let me ask you this. Did you stay on the horse longer when the TV lights were on? Mr. LITTLE SOLDIER. That is the only time I performed good. Mr. WILLIAMS. You performed just fine today and we appreciate having you here. [EDITOR'S NOTE: The prepared statement referred to above had not been received at time of printing, and will be placed in the committee's files of today's hearing when received.] Our next witness is Mr. Elmer Blackbird, chairman of the Omaha Tribe, Nebraska. [Prepared statement of Elmer Blackbird may be found in appen- dix III.] STATEMENT OF ELMER BLACKBIRD, CHAIRMAN, OMAHA TRIBE, NEBRASKA Mr. BLACKBIRD. Mr. Chairman, members of the committee, I am Elmer Blackbird, chairman of the Omaha Tribe of Nebraska. Prob- ably some of the testimonies covered some of the things that we have to present. However, I would like to testify on behalf of the Omaha people in regards to what we feel about the new Indian Housing Act of 1982. PAGENO="0128" 120 The past efforts of the concerned Congressmen and committee members in restoring the 4,000 units for the Indian housing is greatly and deeply appreciated. I also would like to add that this is a first hearing that I have attended that we have officials from Washington offices. I feel like maybe we may be heard at this hearing. Thank you for coming. The Omaha Tribe is experiencing lack of decent and safe housing for families of the reservation. In addition to seriously substandard housing, we have a shortage of housing that is causing overcrowd- ing. Two, three, and four families are living in many of the recent- ly constructed homes. We are encouraged by the directions suggested in the Indian Housing Act of 1982. Efforts to maximize the tribe's planning, im- plementation, and control of housing efforts for its people are good. The local tribal government is in the best position to turn limit- ed housing resources into effective housing to meet needs of fami- lies that vary greatly from reservation to reservation. We ask that as regulations are written to implement this act em- phasis is made to eliminate the vast amount of delaying procedures and paper presently hobbling the construction programs of the De- partment of Housing and Urban Development. I feel most tribes are able to construct housing at cost signifi- cantly below those now experienced through HUD by reducing many of the nonconstruction costs. In addressing the specific language of the act we would make the following comments: Title I. Indian housing improvement program continues the HIP program as we are now using it. With good management this pro- gram has been very effective on the Omaha Reservation. We en- courage full funding of title I as the best deterrent to further re- duction of the limited housing stock on the reservation. Title II. Indian housing finance fund offers the best possibilities and perhaps some of the greatest problems. The people of my tribe are responding well to a homeownership program. Pride in ownership, opportunity for location selection, gardening, and other self-sufficiency efforts are all emerging as families change from "renters" to "owners." More than 150 families applied for the new 32 units being devel- oped. Waiting lists of over 100 exist for the rental housing units. The financing process under title II seems fair and reasonable. Even with our lower family incomes, the majority of our Omaha people could afford payments as described in the title II program. We are concerned with the provision of section 205(a), allowing the Secretary to attach trust funds. We believe that many tribes may be able to give adequate assurance to the Secretary through the provision of other guarantees for the proper repayment of funds due to be collected from homeownership participants. We would recommend the security requirements be negotiated as part of the agreement as defined in section 204 and be individual- ized as appropriate for each tribe. It should also be the intent of the Secretary to consider the tribe's present management capabilities and specifically its demon- strated capabilities in housing program management in assessing the risks in loans from the fund. PAGENO="0129" 121 Section 206 related to disbursement of moneys to the tribe for construction may have been usefully changed to allow for one addi- tional type of construction. By allowing for an advance drawdown for an estimated 30 days of direct construction costs, a tribe with housing construction capabilities in place could build a small project of 5 to 20 units on a reoccurring basis. This would improve local employment, reduce costs of construc- tion by out-of-the-area contractors, and eliminate construction fi- nancing costs. On smaller reservations this could reduce signifi- cantly overall development costs while making a maximum impact on the reservation economy. Title III. Indian housing loan guaranty fund is a good addition to housing options for Indian families. Although it should work well for families with good incomes, we expect it will take a long time to develop. In our area, Indians with fee title to land and a good credit position still find it difficult to obtain housing loans. Under title IV, I would emphasize the need for training pro- grams for new homeownership families. Basic home maintenance training is a need for many of our families. In conclusion, I appreciate the opportunity to come before you on behalf of my tribe. I know that a continued Indian housing pro- gram, particularly now, is vitally important to Indian people every- where. My thoughts and words have not been expressed lightly as I speak for my people. Please give them your utmost consideration. I will be happy to answer any questions you may have. Thank you for your time. Mr. WILLIAMS. Thank you, Mr. Blackbird. We appreciate having your testimony on behalf of the Omaha people. You have made spe- cific suggestions and we are glad to have them. Thank you. We will now hear from Mr. Eugene Begay, councilman of the Lac Courte Oreilles Tribe, Wisconsin. [Prepared statement of Eugene Begay may be found in appendix III.] STATEMENT OF EUGENE BEGAY, COUNCILMAN, LAC COURTE OREILLES TRIBE, WISCONSIN, ACCOMPANIED BY R. DUANE SLAYTON, ESQ. Mr. BEGAY.My name is Eugene Begay and I am an elected coun- cil member of the Lac Courte Oreilles Tribe in Wisconsin. I would like to thank you for. this opportunity to testify on the Indian Housing Act of 1982. It is also good to see Mr. Daschle and Debbie Brokenrope this morning. I have with me, gentleman, legal counsel of our tribe, Mr. Duane Slayton, assisting me this morning also. We have 25 copies of our written statement. Mr. WILLIAMS. Without objection, we will accept the full state- ment for the record. Thank you. Mr. BEGAY. What I will try to do is abbreviate our statement and divide it into 5 or 6 minutes and have time for questions. Mr. WILLIAMS. Thank you. 18-934 O-83----9 PAGENO="0130" 122. Mr. BEGAY. On balance we applaud your efforts in coming up with H.R. 5988. We can live with it with several changes. Your good intentions are noteworthy, especially in light of HUD's lack of funding emphasis. As a complete substitute for most of HUD's housing programs, however, it does nOt entirely do the job. We would like H.R. 5988 to include, as we detail in our written statement, the following: First, there should be grants for tribally-owned rental housing in- cluding low-income rent subsidies. Nowhere in the bill do I find the provisions for rental units. Second, to allow flexibility so tribes can build high quality ade- quate housing which meets the different needs of tribal people rea- sonable features must be allowed. Common meeting areas, road constructions, all basic utilities such as water, electrical power, telephone and including necessary cable TV and other modern con- veniences now enjoyed by the majority of society. We believe the bill does not adequately provide enough money to meet the housing needs of our tribe or tribal housing throughout the country. We believe the amounts proposed in the bill should be increased at least by four to five times the amount. We would like to also promote and help implement tribal Indian preferences in the bill so that tribal construction companies will have the opportunity to participate in the construction of these new housing units. The bill does not address Indian preference or contract prefer- ence in the bill. That should be addressed. We also believe that the BIA does not have capable housing per- sonnel to administer this program. We would recommend that the Office of Indian Housing Programs be staffed with capable Indian people to administer the program. We would also recommend that the new Office of Indian Housing Programs not be funded out of this bill, but that additional moneys, appropriations, be provided, rather than taking it out as recommended here. We also recommend tribes and housing authorities be allowed to negotiate and make agreements with other agencies of the Federal Government and State agencies also, if necessary. Housing authorities under this bill should not be locked into ex- clusive arrangements or agreements with the Office of Indian Housing Programs as proposed. We consider that perhaps the most important issue in this bill is the jeopardy of trust funds suggested to be used as security or col- lateral in making disbursements against the fund. We believe there are other means of collateralization that exist for security purposes. We also recommend that the definition of Indians as designated in the bill be changed.to that as used in Public Law 93-638. We also recommend that the prime legal authority in this bill as it may relate to foreclosures or other legal actions, that the prime authority on an Indian reservation is the tribal government and the tribal court, and that we do not recommend that any reference or actions be made such that we would have to go through State, PAGENO="0131" 123 through the State court system or other local units of governmnent for assistance. We also recommend that sales for the new housing be allowable after 5 years as described, as 5 years, rather than 10 years, as de- scribed in section 104. We also recommend that administrative funding be included in the administration of a new housing program in the nature of con- tract support funds, sometimes called indirect costs, for the tribe. We also recommend that the bill permit funding to be used to acquire land, even if a tribe has other land, to allow tracts larger than just for the housing units to be acquired. - We also recommend that tribal housing authorities and housing plans be developed as uniform as possible across the country, with recommendations made by Indian leadership as to the basic crite- ria, for example, for housing authorities' responsibilities. One of the problems we experience on our reservation is that without the lack of enforcement or outside provisions by the Gov- ernment we find that housing authorities become entrenched in fa- voritism and also in politics. Housing is a very important issue and should be kept out of poli- tics as much as possible. We also recommend that the 60° Fahrenheit minimum tempera- ture in the coldest weather be increased to at least 72°, because el- derly people are unable to sustain and maintain good, healthy con- ditions in 60° Fahrenheit in a home. It is important that that be increased to 72° at least. The BIA should be kept out of direct service delivery under this bill. The BIA has trust responsibility to protect tribes under law. They should be in the capacity of an enabling agency, rather than providing direct services. We also recommend section 212(b) where it pertains to the Indian Health Service. We believe that the tribe should have the first option to develop its own standards for construction, plumbing, and heating, and the standards for water quality and sewage disposal systems. There also should be addressed in the bill the issue of archeologi- cal clearances. On our reservation, for example, there are many burial grounds where our people were buried during the epidemic about 50 years ago. A lot of those graves are unidentified. There should be provisions in there of what to do in case such as that where there may be archeological disturbances to burial grounds. We recommend that the loan guaranty program remain in HUD and the Farmers Home Administration be expanded with appropri- ations and special provisions for Indian people. Last, I would like to also say that the bill should also address the standards of construction that tend to develop housing of a match- box-type housing. We need housing that looks to the future. I would recommend that we deal with the issue of appropriate technology, where housing, Indian housing can utilize solar energy and natural lighting and earth mounding, and other appropriate technology techniques where we do not need to use a lot of electri- cal power to provide light and heat for our homes. There are many innovative housing constructions going on like that throughout the world. PAGENO="0132" 124 I thank you for this opportunity again to present this testimony, and we are open for questions. Mr. WILLIAMS. Thank you very much, Gene. We appreciate these specific suggestions on behalf of the Lac Courte Oreilles people. I have noticed you indicate perhaps we need an appropriation as much as four or five times as much as this bill provides. Perhaps we do. But you know the politics in this Congress and the adminis- tration. Many of us believe we will be lucky to get what this bill provides in the way of dollars. We certainly can't in my judgment get much more. You are correct in your concern that there is no provision in here for rental units. If the President is successful in accomplish- ing the termination of the current program, then we would indeed have to find a way to deal with rental units. With regard to the 600 temperature provision, that simply is a minimum. If the tribe wants to set it higher, we leave that to them. We thank you for your testimony here today. Mr. BEGAY. Thank you. Mr. WILLIAMS. Mr. Rick Farrell, housing director, Confederated Salish and Kootenai Tribes in Montana. Mr. DASCHLE. Mr. Chairman, in the interest of time I have with- held many of the question and comments that have occurred to me as the testimony has been presented. But one persisting question that comes to mind as each of the witnesses comes forth is section 205 and the collateralization requirements here. Just about every witness has made reference to the fact that there are means other than what is provided in the legislation. So, if the remaining witness, as they go through their comments with regard to section 205, will be more specific as to what those other means are, it would be very helpful to me. Also, any changes re- garding other collateralization that exists would be helpful. I would hope other witnesses could address that. Mr. WILLIAMS. That is helpful, Tom. As you know, we want folks here to understand that the Con- gress is absolutely adamant about requiring proper security for tribal housing. If the occupants of the house are unable to make the payments, the Congress wants to find some reasonable way in negotiations with the tribe that the tribe make the payments. But let me assure you that any bill which does not provide proper security cannot pass the Congress, period. So we have got to come to some kind of agreement. *Rick, it is nice to see you here. Please proceed. [Prepared statement of Rick Farrell may be found in appendix III.] STATEMENT OF RICK FARRELL, hOUSING DIRECTOR, CONFEDERATED SALISH AND KOOTENAI TRIBES, MONTANA Mr. FARRELL. Mr. Williams, Mr. Daschle, members of the com- mittee, my name is Rick Farrell. I am here today representing the Salish and Kootenai Housing Authority and the Confederated Salish and Kootenai Tribes of the Flathead Reservation. PAGENO="0133" 125 I would first like to extend my appreciation for allowing us this opportunity to express our views of the congressional bill, provid- ing for a new Indian housing program and for the extensive time and effort all of you connected with this bill have put forth. It is refreshing to behold something positive for a change coming from the political arena in regard to tribes and Indian people. You and your constituents are to be congratulated for this endeavor; it reflects a sentiment and concern that is welcomed at this end. Whether or not HUD has admitted that they do not wish to con- tinue the current Indian housing program, I think the indicators are obvious. One, zero funding for the 1983 budget. Two, the proposed recision of the 4,000 units allocated for fiscal year 1982 and the subsequent impounding of those funds not re- cinded by Congress as per the administration's request. Three, the proposed action to recapture any of the units in prior fiscal years that have gone unused. Four, decreased and delayed operating subsidies for fiscal years 1981 and 1982. With figures like these, the outlook for Indian housing is bleak. The certificate system which is the administration's alternate to a subsidized housing program is not a realistic solution for housing assistance on the reservations because of the trust status of the land. This information points out three things: One, that the HUD housing program as it stands today, even after repeated attempts to correct problems and to transfer the total blame for failure to the Indian housing authorities, is in trou- ble because of its inability to effectively meet its own expectations and abide by its own obligations. Two, that we have been totally omitted from the administration's plans for Federal housing assistance and have been shown little or no concern in response. Three, that there is a need and consequent support for a new Indian housing program that will be responsive to the Indian People and will satisfy a desperate need for housing in Indian country. We are therefore endorsing this bill, proposing the new Indian housing program, and will commit our assistance and cooperation to seeing it become what we view were the author's primary in- tents, a housing program more deregulated, locally controlled, and responsive to the housing needs of the targeted Indian people. The basic concept of the bill reveals considerable and careful preparation and detail and reflects nearly all concerns I am aware exist in regulation to the issue of Indian housing. In answer to the burden of overregulation and complexity of the existing program, the bill purports simplification on the Federal processing level as well as in the local management areas. In response to concerns of all kinds with financial accountability and program integrity, the bill advocates a partial payback system supported by a tribal guarantee to insure accountability and re- sponsibility. PAGENO="0134" 126 To cut appropriation hassles and congressional committee coordi- nation, the program has been ifitered down to one administrative agency with fewer committee contacts for funding reviews. In answer to a program that for years did not adequately cover the housing needs of certain and large segments of people on the reservation, this new housing provides a title of assistance for fami- lies of every level of income. Where once we were limited to specific types of housing assist- ance and avenues of delivery, production, and management under HUD, we now have the potential for more diverse and locally ap- propriate and discretionary methods. On a whole, the bill challenges all the problems which we have or are presently experiencing and incorporates sound and reason- able solutions that should enable us, in the tribal housing business, to run a program that accomplishes what it intended without being eaten alive. I recognize that the purpose of this hearing is to comment on and review the proposal in question and to provide my views and those of the people I represent to consider its workability and insure its sucess. I am therefore providing an attachment for the record containing general comments and an in-depth analysis of the bill to point out items that I feel should be brought to your attention as possible ad- justments or modifications to the bill before it is enacted. In conclusion I would like to restate on behalf of our tribes our support of the bill and the respectable attitude it is presenting for Indian housing. We are encouraged that someone is ultimately con- cerned that this program be continued on the reservation and will do all we can to assist in this bill becoming reality. Mr. WILLIAMS. Thank you, Rick. Your analysis of the bill and the general comments you have mentioned will be included in the hearing record. Your statement is concise and to the point. We appreciate your support of the legislation on behalf of the people you represent. Let me ask you the question on everybody's mind. How do you get from Pablo, Mont., to Rapid City? Mr. FARRELL. Well, let's see. This time-before, I had to change planes four times, but this time it is only two. Mr. WILLIAMS. Tell me how you do it. Mr. FARRELL. I drive an hour and a half to Missoula, then we fly to Salt Lake and then to Denver, then change planes in Denver and fly up to here. Mr. WILLIAMS. We obviously should have had this hearing in Pablo. Thanks for making that effort. It is good to see you here today. Mr. FARRELL. It is my pleasure. Thank you. Mr. WILLIAMS. Next, because of a time constraint, we are going to ask that Mr. Frank Myrick, council member, Devils Lake Sioux, come forward to testify. I know you have a scheduling problem,~ so we are pleased to ac- commodate you and accept your testimony at this time. [Prepared statement of Gertrude Cavanaugh may be found in ap- pendix III.] PAGENO="0135" 127 PANEL FROM THE DEVILS LAKE SIOUX TRIBE CONSISTING OF: FRANK MYRICK, COUNCIL MEMBER; AND ROGER YANKTRON, EXECUTIVE DIRECTOR, HOUSING AUTHORITY Mr. MYRICK. Thank you, Mr. Chairman. Mr. WILLIAMS. We will submit your full statement for the record. Mr. MYRICK. Thank you, Mr. Williams, for having us comment on the bill. This is Roger Yankton beside me from Fort Totten housing. This is the statement of the Devils Lake Sioux Tribe regarding proposed Indian Housing Act of 1982. The attorneys for the tribe and the housing authority have prepared comments and sugges- tions relating to the proposed Indian Housing Act of 1982 which we attach to this statement and endorse. Modification of the proposed act on the lines indicated will much improve this legislation and insure greater support in Indian coun- try. The issue that disturbs us most in the legislation is the proposed lien on trust assets that would result in an undermining of the entire trust relationship between Indian tribes people and the United States. The proposed tribal guarantee of participant payments is com- pletely unacceptable as presently stated. The proposal would set a most un.fortunate precedent that could radically change the rela- tionship between Indian people and the United States that has slowly developed over the last 200 years. As is suggested in our comments and recommendations, there is a solution to the thorny problem of collection of rents and mort- gage payments which does not alter the fundamental trust rela- tionship between Indian people and the United States. We most strongly urge the adoption of another mechanism for the tribal guarantee of participant payments than is presently set out. I will now turn it over to Roger. Mr. YANKTRON. I am executive director for the Devils Lake Sioux Tribal Housing Authority. It is with all the reasons addressed today that Devils Lake Sioux Tribe and Housing Authority endorse the basic concepts of the bill but contingent upon certain modifica- tions. It is possible that a more appropriate relevant locally adminis- trated program might evolve. The Devils Lake Sioux Tribe thanks you for allowing us to put this on the record. Mr. WILLIAMS. My thanks to both of you. Your full statements will be entered into the record on behalf of the Devils Lake Sioux Tribe. Thank you for being here. Mr. MYRICK. Thank you, sir. Mr. WILLIAMS. I understand we now have a substitution. Ira Grinnel, housing director of Cheyenne River Sioux Tribe, South Dakota. I understand the chairman, Robert Chasing Hawk, is also with us. PAGENO="0136" 128 PANEL FROM THE CHEYENNE RIVER SIOUX TRIBE, SOUTH DAKOTA, CONSISTING OF: ROBERT CHASING HAWK, CHAIR- MAN; AND IRA GRINNEL, DIRECTOR, HOUSING AUTHORITY Mr. CHASING HAWK. Mr. Chairman, members of the committee, Mr. Williams, and Ms. Brokenrope, Mr. Daschle, wecome home. I am accompanied by the housing director. We appreciate the opportunity to come before the committee to give testimony regarding H.R. 5988, Indian Housing Act of 1982. Mr. Grinnel will elaborate further on the bill itself later on. We are a treaty tribe of Fort Laramie of 1868. The reservation is located in the north central part of South Dakota. We have approximately 1.5 million acres of trust land and within the exterior boundaries of the reservation are 15 Indian communi- ties with a population of 4,800. In the past, five Indian communities were without HUD housing due to lack of water. However, recently the rural water distribu- tion system was completed to facilitate all Indian communities and rural homes with ample water supply. Today it has a severe economic impact on Indian nations with mass unemployment, reduction of human services, and potential elimination of the Indian housing program under HUD is a major setback for the Indian tribes to upgrade the conditions for the poeple. On H.R. 5988 I am quite satisfied with the contact of the bill. I fully support this bill. I would like to congratulate the Honorable Morris Udall and Congressman Daschle. At this time I would turn the mike over to Mr. Grinnel. Mr. GRINNEL. Thank you, Mr. Chairman. Mr. Chairman, Congressman Daschle, the staff and other tribal representatives and leaders. Much of the current difficulty in pro- viding adequate housing for the people of the Cheyenne and Sioux Reservation and as described by other tribal and Indian housing representatives, flows from the current administration's concern for the elimination of the costly programs offered under HUD. As members of the Cheyenne River Tribal Council can attest, much of the original need of Indians for housing on the Cheyenne River Sioux Reservation has been ameliorated and reduced. In 1980 approximately 16 percent of the existing housing was considered substandard by the BIA. Of the nearly 500 qualified ap- plicants on the waiting list for housing, nearly a third could have been reduced by HUD housing in the pipeline; the current stop- page of all regional housing programs and threat of loss of existing allocations, however, have led to much uncertainty. Indeed, much planning and related nonhousing development have receded and might well result in a waste of non-HUD funding if the pipeline units are not constructed. Because of the potential loss of the HUD Indian housing program the Cheyenne River Board of Housing Commissioners views the housing bill as a most favorable alternative to the present impasse in housing development. The board has voiced serious concern with regard to the authori- zation of the Secretary of the Interior to attach and claim tribal trust lands for the repayment of funds. PAGENO="0137" 129 Although the taking of these funds will occur only if the pro- posed Indian tribal housing agency is unable to make residual pay- ments to the Indian housing fund on a timely basis, the original intent of the Indian housing authority's creation was the limitation of tribal involvement including financial responsibility in reserva- tion housing affairs. At the same time, the board does take cognizance of the need for adequate assurances that the tribes and individuals receiving as- sistance make sufficient effort to repay based upon their financial capability. Because unemployment on the reservation has now touched 75 percent, the tribal wherewithal is limited at this time. The final point is that many Indians are too poor to afford home- ownership even though houses may be available. The unusually high cost of heating fuels and electricity on remote Indian reserva- tions has resulted in many Indian families having insufficient income to meet these costs. No satisfactory alternative to subsidized low-rent housing has been found at this point. The housing authority board and tribal council both seek new so- lutions for the dilemma. We are hopeful of continued assistance from HUD with this problem. We welcome any new assistance available from BIA in this search for answers. Finally, we request the opportunity to make additional informa- tion and comments available before the May 4, 1982, deadline. We are pleased the Congress is aware of the needs of the Indian people as we progress, become civilized and are entering the main- stream of society. I thank you. Mr. WILLIAMS. Thank you, Ira. We appreciate your testimony today. I will note at this time the tribal membership of Frank Duchen- eauz who sits at Mo Udall's right hand. So you are well represent- ed on the Interior Committee in the U.S. Congress as are all of the Indian tribes. Ira, you mentioned an astonishing 75 percent unemployment rate among your people. When times are good, how good do they get for your people? Mr. GRINNEL. I would imagine it probably drops to about 20 per- cent during good times. Mr. WILLIAMS. How long has it been since it has been 20 percent? Mr. GRINNEL. A couple of years. As the economic conditions in the rest of the country are worsened, of course, opportunities on the reservation diminish. Many of them who have moved off the reservation come home. Mr. WILLIAMS. How long has it been over half? Mr. GRINNEL. I can't be sure of this because I only came back to the reservation last September. I would assume a year and a few months, probably. Mr. DASCHLE. I want to thank you both for what I think has been some of the best testimony I have heard this morning with regard to this bill and the issue at hand. PAGENO="0138" 130 Let me ask you in a general sense: How important do you believe ownership of housing is, as opposed to the maintenance of quality housing that would be acceptable? The emphasis on this legislation and apparently in the HUD pro- gram is one that would entitle an Indian family to ownership of the unit. Is that their greatest concern, or what are their concerns from your point of view? Mr. GRINNEL. I am sure that most Indians would themselves like to own the home they live in. Most of them did. Unfortunately, many of them were substandard back in the 1950's and 1960's. I think marked improvements have happened since then. I believe in 1963 our substandard housing stood at approximately 80 percent then. It has been substantially reduced. There is no doubt about that. For that we are very, very grateful. The maintenance of these homes I think is primarily a concern of Congressman Daschle's and certainly is one of mine. I don't like to think of myself as the largest slumlord on the Cheyenne River Sioux Reservation. - We have had a lot of problems with maintenance situations. Some of it is based on simply lack of knowledge of the people. The average homeowner, for example, knows how to change a washer in a faucet. An Indian family may not. Many old people don't un- derstand how to do that. So you have maintenance men making trips out to do little things like that. On our reservation it is a pretty big outfit. We may have to send a maintenance man 30 miles to change a washer. That doesn't make much sense to HUD. We have gotten bound up in HUD requirements which, of course, are based on the needs of an urban community. They don't really fit out here. If I, as director, need the services of an electrician I may have to import one from Oak Ridge or Gettysburg or from here, or possibly Phillip, or Faith. In addition to paying something comparable to union scale, $17, $18 an hour, I also must pay mileage at probably 30 cents a mile. If the repair job takes more than 1 day I may end up paying sub- sistence as well or double mileage for him to go back and come back again. So the maintenance costs have skyrocketed on many of these units. Not all of it can be blamed on construction deficiency. Cer- tainly that is an element. HUD does not use custom house standards; they use commercial standards. With a commercially built custom house building code you might have such a thing as deferred maintenance. But with this other, with our houses, there is no such thing as deferred maintenance. If you don't fix it immediately, 3 or 4 months down the road it might cost three or four times as much to do the same repair job simply because of increased damage. Mr. WILLIAMS. Isn't there a basic home maintenance program, a course, simple classes, to show people how to change that washer? Sending a maintenance man 30 miles to change a washer not only doesn't make much sense to HUD, it doesn't make much sense to me either. PAGENO="0139" 131 I had understood that there was at least a minor effort to try to show folks moving into these homes how to maintain them. Are you aware of that? Mr. GRINNEL. Oh, yes, we have a resident housing program. Mr. WILLIAMS. Is it working? Mr. GRINNEL. It works, yes. Unfortunately sometimes it works too well. A lot of-and I don't think this is strictly Indians, I think most likely a lot of farmers feel this way. If something looks fairly simple, they think they can fix it. Sometimes they do it right, sometimes they don't do it right. This is OK with a faucet. Usually you can't do too much; if you screw it down too tight all you have done is smash the washer. If you start fooling around with a furnace, however, this is quite a different matter. There is a limit to how much you can expect your tenants to do. We will provide the materials in many instances, if we have some understanding-if the individual involved has some under- standing of what he is about to do. If he wants to replace a window and knows something about glazing, why, this is fine. If he wishes to retile part of his house, we will do that. If they want to repaint, frequently we provide paint because it saves us time and effort. Mr. WILLIAMS. The bill before us does have a requirement that the Secretary shall provide these courses in basic home mainte- nance. We appreciate having both of you before us, appreciate your taking the time to share your thoughts with us. Mr. GRINNEL. Incidentally, there is one additional item that has to do with maintenance, or training. That is that all housing au- thorities are stuck with the budget line items from 1972. There is no provision for training in that HUD line item. We depend on the Bureau of Indian Affairs for some assistance in this area right now. Mr. WILLIAMS. Thank you. Mr. CHASING HAWK. I would like to make one comment on Mr. Daschle's question. As far as ownership is concerned, I would rather see the contrac- tor build the house right rather than have somebody else build it and then move into a substandard house that costs about $40,000. As far as unemployment, I would like you to support Senator Kennedy's bill replacing the CETA prOgram. In 1981 when Presi- dent Reagan got in there we had 650 people employed. Today we have 250 employed. Mr. WILLIAMS. How many? Mr. CHASING HAWK. Six hundred and fifty employed. Today we have 250 employed. About 400 people are unemployed and they all end up in welfare programs. Thank you very much. Mr. WILLIAMS. Thank you. [EDITOR'S N0TE.-The statement referred to above had not been submitted at time of printing, and and will placed in the commit- tee's files of today's hearing when received.] I am going to substitute another name now again because of transportation problems. Mr. Caleb Shields, council member of Fort Peck Tribe in Montana. PAGENO="0140" 132 [Prepared statement of Caleb Shields may be found in appendix III.] STATEMENT OF CALEB SHIELDS, COUNCIL MEMBER, FORT PECK TRIBE, MONT.; ACCOMPANIED BY JERRY JOHNSON, MEMBER FORT PECK HOUSING BOARD, AND COBOY LONGHAIR, MEMBER FORT PECK TRIBAL COUNCIL BOARD Mr. SHIELDS. Thank you, Mr. Chairman. Mr. WILUAMS. It is nice to see you today, Caleb. You may pro- ceed. Mr. SHIELDS. Thank you, Mr. Chairman, members of the commit- tee. My name is Caleb Shields, a member of the Tribal Executive Board of the Assiniboine and Sioux Tribes. In the audience we have another member of the housing authori- ty, Mr. Butch Crow, and the Director of our housing improvement program, John Achico, and a tribal member, Debby Johnson. I am happy to appear before this committee, Mr. Chairman, to present the views of the Fort Peck Tribes on the Indian Housing Act of 1982. You and the committee are to be commended for introducing leg- islation which continues a Federal progam of housing assistance to Indians. We would also like to commend the committee staff for all the hard work they have done in the past year getting the bill togeth- er. The proposed legislation provides a more comprehensive housing program than is presently available under the HUD Indian hous- ing program in that it provides assistance for three separate Indian income groups, including the means for middle-income Indians, living on trust land, to finance housing from the private market. The Fort Peck Tribes generally support the legislation. However, we also wish to briefly discuss some concerns we have about the Indian Housing Act of 1982. In my concluding statement I will address the concern and sug- gest maybe an alternative be provided in that section 205. First, we are concerned that title I only authorizes an appropri- ation of $30 million to provide for repairs, renovation, and con- struction. The proposed level of funding authorized by the legisla- tion must provide for sufficient funds to continue a viable Indian housing program. Substandard housing is rampant on reservations and housing repair and construction is urgently needed. Title I funds are insuf- ficient to provide anything more than a skeletal program. Second, title I provides grants to finance "major repair or con- struction." Section 102(a) (2) and (3). The definition of major repair or construction should be more clearly defined in the legislation. For example, an amount over $10,000 or $15,000. Because the bill provides that a lien may be placed on fee land when major repair or construction occurs. Sec- tion 103(b). As you know, a lien makes a property subject to foreclosure and sale in case of default and smaller grants for repairs or construc- tion should not subject the property to this risk. PAGENO="0141" 133 Third, section 10(4) provides for the sale of houses acquired or re- paired pursuant to title I. At present when a house is to be sold the legislation grants the tribe the right of first refusal when the hous- ing is located on trust land. We suggest that tribes be given the right of first refusal on property located on either trust or fee land in order to increase tribal control of our Indian communities. Fourth, the Fort Peck Tribes strongly oppose the Secretary's right to attach tribal trust funds held by the United States in the event of default by the tribal housing agency. Section 205. This provision waives tribal sovereign immunity and permits tribal trust funds held by the Government to unilateral seizure. Tribal trust funds should not be held hostage to the failure of a tribal housing agency to repay obligations to the Indian Housing Finance Fund. This provision should be deleted. Finally, we urge that nothing in the Housing Act be construed to prohibit a tribal housing agency from participation in the housing programs of other Government departments and agencies. In conclusion, on comments on section 205, I can only relate what has happened on our reservation and what our housing au- thority has done in the not so distant past here. We went through the period of having to address debt obligations of noncollections or low collections. The housing authority on Fort Peck has developed collection policies. The tribal court has adopted a tribal ordinance in setting up a claims court that the housing au- thority could take their collections to. I would like to add that since the housing authority at Fort Peck started enforcing their new claims policy, we have had 100-percent collection on those debts. I think one of the alternatives to section 205 could be spelled out-in the detail plan submitted to the Secretary could be leaving it to the tribal governments to include in their plans the necessary ordinances or property governmental ordinances setting up and adopting a claims division in the tribal court. That could be one al- ternative. But I would like to, for the record, state that we understand the attitude of the administration of the housing program for Indians and the public in general. We understand the concern for the need of something in the sec- tion that would guarantee payments for the needed housing. We would like to continue in this next week, by April 29, no later than May 4, to provide the committee and staff some specific language changes in relation to section 205. I think we have to come up with alternative by May 4, because there will be no alternative for future Indian housing if the HUD program is terminated and this bill does not get passed by Con- gress. We would like to thank you for allowing us to appear here today. We stand ready to assist the committee and committee staff in any way we can. We would be happy to answer any questions you may have. Mr. WILLIAMS. Caleb, we appreciate receiving what has been ex- cellent testimony, and it is refreshing to hear your suggestion as to what the proper security and procedures might be to assure pay- ment. We will look forward to receiving your written suggestions. PAGENO="0142" 134 This hearing record will close by May 4. However, I know you have obviously given great thought to proper mechanisms for secu- rity, and we are not going to hold you to a May 4 deadline with regard to continued discussions with the committee as to how we might best write that section. We would appreciate having whatever printed material you wish to have included in this record, however, by May 4. Mr. SHIELDS. Yes, Mr. Williams. I would like to point out in section 205 we would like to insure that the committee is aware of the tribal concern of the so-called government-to-government relationship between the Federal Gov- ernment and Indian tribes. I was talking with committee members yesterday, committee staff yesterday, on this particular issue. The way our tribe looks at section 205, it is not only a violation of a tribal sovereignty, but it is a double standard in that it appears discriminatory, if we are talking about government-to-government relationships. For instance, if New York City had-if they established a public housing authority, the city will set it up, appoint the members. But if they go into foreclosure or default, the Federal Government does not come in and seize the funds of New York City, nor do they seize the funds of the local agency or local government, nor do they seize the funds of the State of New York. So we wanted to bring that to light, that if this was passed as written, today, section 205, there is no government-to-government relationship. As opposed to the Federal Government and State gov- ernment. Mr. WILLIAMS. Our thanks to all of you for being here today. We will take one more witness before lunch, and then we will break after that testimony, to return here and begin the hearings again at 1:30. Our final witness for this morning is Louis LaRose, Council member, Winnebago Tribe, Nebraska. [Prepared statement of Louis LaRose may be found in appendix III.] STATEMENT OF LOUIS LaROSE, COUNCIL MEMBER, WINNEBAGO TRIBE, NEBR. Mr. LAROSE. My name is Louis LaRose. I am a council member of the Winnebago Tribe of Nebraska. I want to welcome you to South Dakota, though I am from Ne- braska. I appreciate your coming here and your willingness to listen to Indian people as they address the issues of H.R. 5988. Mr. WILLIAMS. Can we get you to pick up the microphone? Mr. LAROSE. I am going to really bear down, get melodramatic. You should see me if there are cameras over there. I really get going. I have a prepared statement I have submitted that will address the issue on section 205, title II. The tribes have not-I don't think it is a very good option for our tribe to be going into. As sure as the Sun shall rise in the East and set in the West, some Winnebago will fail to pay their rent. [Laugh- ter.] PAGENO="0143" 135 We don't even have any Winnebagos that are able to own a Win- nebago camper, so you know we will immediately be in default. What I think that we should look at is that there have been problems in dealing with HUD in rent collections. I think that al- though this legislation attempts to deal with that issue in working with Indian tribes in the future, we have not resolved that problem in dealing with HUD. I think that if we can find a successful solution to working that problem out among reasonable men, that will help us and we won't have to have this kind of legislation imposed on us. There is another question that I would like to bring out. We have found that the individual ownership of homes is a better concept, and people that know that they are going to own that house take better care of it. They have more responsibility. There is limited responsibility. I think that the substandard HUD houses that were brought to the reservations do not adequately meet the needs of the Indian people. If you live in one, the houses were hastily constructed; they cost a tremendous amount of money to live in one. People in low or set incomes are not able to afford them. So when you put all of those factors together, we are running into trouble. The area that I would like the bill to address is the development of energy efficient houses that are adaptable to the climate and to the cultures of the people that they serve. Some of the houses that were brought to the reservation might be fine for some white guy living in Chicago, Omaha, or Denver. But they do not fit the windy plains of Nebraska. They are not de- signed. They are inadequate. I think one area that you have to look at, I have to build a tough house for a reservation. We don't need those little flimsy sheetrock. A good fight, you know, and you could break one. But you can design and you can build houses that are tough and durable. If you spend a little extra time and a little extra money understanding Indian people, how they are and how they live, HUD rules and regulations are not going to change the way people live. But you can design, and you can build a house that is tough, that will survive the elements and that will survive people that live in them, because they, and I am not saying we are that tough, I am just saying HUD houses are that inadequate. Mr. WILLIAMS. Louis, I think this Government probably has enough money to design a house to withstand the Nebraska wind, but I am not sure we have enough money to design a house that will withstand a Winnebago fight. We are trying to balance this budget, Louis. Mr. LAROSE. I am trying to help you. [Laughter.] I have another comment. I think we can design, and to move from a 2 by 4 to a 2 by 6 stud wall. You know, that is not very much in construction terms. But you can add other things inside that house that will make it stronger. You can increase the R values in the walls and ceilings. You can design a house that will be designed so that you can use the wood stove. I mean, be nice to the Arabs. We can't afford all their oil and gas and what it costs. But we do have wood. PAGENO="0144" 136 We have other alternatives on the reservation to heat houses. Those alternatives ought to be made available, and we can use those. So I think that what we have to do is take a look at how we can design a house that really fits the needs of the people. That is the most important concept. Another important concept to deal with is contracting. We have a 75-percent unemployment rate on the Winnebago reservation. We have most of these reservations beat. But that is a high ratio. That is unfortunate. That is unfair. Supply side economics just doesn't mean anything to an Indian on a reservation. All it means is hardship and poverty because small business is not coming to the reservation and providing em- ployment. That iswhat we have to do. When you take a look at the patterns of housing and how they were constructed on the reservation, the bill and the legislation only provides the opportunity for a large construction company to come to the reservation. Because the small contracting companies, even those white-owned on the reservation, are not able to build these houses because a great, big operation that can find bonding for 50 to 100, they will get it. This is a very important factor. I think if there were provisions in the law that would allow them to be constructed under, say, three to five or a smaller increment, that would provide more em- ployment for people on the reservation. That would address the un- employment problem. I want to thank you for listening to me. Once again, I do appreci- ate your coming and hearing what we have to say. Thank you. Mr. WILLIAMS. Louis, thank you very much. You make excellent points about building these houses in such a way that they are energy efficient, that they do withstand the lifestyle of the people that live in them, and that they take into account whether they are in the mountains, built on the plains, or wherever. You are right in recognizing that HUD has not always done that. We think if it is required, our bill would correct that to a major degree. I think you will be pleased to find, if our bill becomes law, that houses are going to be built more in tune with the needs and they will be more energy efficient than homes in the past have been. I am especially thankful for giving us that truism at the begin- ning of your talk. I heard another one the other day. There are certain things that people say that you just know are universally true. I heard a fellow the other day say, in paraphrasing the Bible, "The lion may lie down with the lamb, but the lamb ain't going to get much sleep." Today you have said the Sun may rise in the East and set in the West and just as sure as it does a Winnebago is going to miss his rent. So now we have two great truisms with us today. Thank you very much, Louis. We appreciate your being here today. This committee will be in recess until 1:30. [Whereupon, at 12 noon the committee was recessed, to recon- vene at 1:30 p.m. the same day.] PAGENO="0145" 137 AFTER RECESS Mr. WILLIAMS. We will convene the afternoon hearing of the In- terior and Insualar Affairs Committee on the matter of Indian housing, and specifically H.R. 5988. Our first witness this afternoon is Leland Ground, councilman from the Blackfeet Tribe in Montana and he has someone with him. [Prepared statement of Leland Ground may be found in appendix III.] STATEMENT OF LELAND GROUND, COUNCILMAN, BLACKFEET TRIBE MONT.; ACCOMPANIED BY IRVIN SPOTTED EAGLE, DE- PARTMENT OF NATURAL RESOURCES Mr. GROUND. To the Committee on Interior and Insular Affairs, U.S. House of Representatives, Congressman Daschle and Congress- man Williams. My name is Leland Ground, member of the Black- feet Tribal Community, delegate to the Blackfeet Housing Authori- ty and delegate to the Montana Internal Tribal Policy Board. I have with me Irvin Spotted Eagle, Department of Natural Re- sources and Office of Natural Resources Development. There is now completed and in the implementation phase a Department of Housing for the Blackfeet Tribe. All housing functions, Indian action team functions and central maintenance are housed within this department. The Blackfeet Tribe is in an ongoing process to upgrade its man- agement, financial, and technical capabilities to address the needs of the people of the reservation. To speak of the housing situation for all Indian tribes is to actually address many associated prob- lems that reflect the inadequacy of their well-being. Indian tribes, and especially my tribe, are not in the condition that we want to be in. The Blackfeet do not want to be dependent on a U.S. Government for every single need. The Blackfeet are real people, proud, with, an abundance of natural resources and a pris- tine environment. We are in a developing period of time whereby eventually de- pendency will be overcome by self-sufficiency. Indian tribes are yet unique but alike where they share major problems such as housing. It is our concern H.R. 5988 passes as it will address the housing problems of our tribe and will enable the development of a coopera- tive effort of all tribes to fiuicl the solution to their housing needs. A tribal resolution in support of RR;~5~8 will be forthcoming. To do this we feel that an economic trade relationship must be started amongst tribes and as a result of H.R. 5988, could provide a vehicle for tribes to engage in aiding and helping themselevs in the pursuit to finding solutions to housing and associated problems. The Blackfeet are very positive in their thinking and believe that with the assistance of the Federal Government, they can eventual- ly manage, control, and finance the housing industI~y needed on the reservation, for employment purposes as well as hou~ing needs. That stability is apparent by the following facts. We have devel- oped a centralized accounting system with IBM 34 computer capa- bility. 18-934 O-83---iO PAGENO="0146" 138 We have developed a records management department with IBM information processor capability. The Natural Resource Department consisting of oil and gas func- tions, timber assessment and monitoring are tied in with the cen- tralized IBM computer. We have consolidated all housing development functions under one housing department. This also includes the community devel- opment block grant process. The Indian action team and the cen- tralized building maintenance team, the language of the bill must contain enough flexibility to allow Indian tribes to help themselves. The language of the bill as well as the intent is clear. The Blackfeet Tribe is concerned about the development of the rules and regulations to implement the bill. At all times we feel that we should have an opportunity to provide input regarding all aspects so that the bill, as well as the implementation, is designed to assist the tribes as much as possible. The intentions of Congress are honorable and the bill poses great possibilities to address Indian housing needs. The Blackfeet Tribe feels the following should be addressed. As the tribes develop hous- ing plans and mechanism and a mobilization of their natural re- sources, for example, timber, we would like the Department of the Interior to develop concurrent plans and emphasize tribal goals and objectives. Should this bill be administered through the Bureau of Indian Affairs, we request that appropriations be kept separate from the zero-base budgeting process; that the discretion to utilize funds be placed mainly through the tribal housing plans; that a formula, denoting factors identifying which tribes will be the recipient be developed so as to allow fairness in distribution, that economic development in relationship to the housing industry- sawmills, log home projects, masonry development, et cetera-be considered a vital part of assisting tribes with multiple problems. Tribes will be kept aware of funding for Indian health service and also that additional funding be provided IRS for increased water and sewer development and services. That emphasis of Public Law 93-638 be utilized to enhance the tribes economic self-sufficiency. In doing so many aspects of the in- dividual tribe's capabilities can be developed which may include but not be limited to the following: One, management and finance; two, utilization of tribe's own natural resources to control costs of housing development; and three, where one tribe lacks the re- sources trades may be made to provide essential materials for those tribes to work with. This is called specialization. That emphasis on individual family self-sufficiency be foremost. A good example is: Many families are clustered in urban areas which makes them dependent on the economy of that town or center. Should a house be placed on suitable land the family could raise food to offset food expense. Juvenile and other law and order problems arise as you put rural people in urban settings. Appropriate technology be considered and utilized in the con- struction and designing of housing. That proven track records of development be considered in the design and development of houses-A&E designs and acquisition concepts as well as force account. PAGENO="0147" 139 That energy issues be addressed appropriately as they relate to housing. Minimum standards and acceptance of tribal building codes be developed for each tribe. That consideration of seasons be vital in the implementation of housing development projects. The Blackfeet Tribe consistent with the language of the bill has adopted the following approach after the implementation of the housing department. This will enable and enhance the tribe to de- velop a healthy housing industry and also to control development costs. Develop tribal timber/housing industry: Phase I. Assessment of timber and other building material. Phase II. Labor assessment. Phase III. Natural resource development: One, classify by prod- uct, and two, develop feasibility of criteria screen. Phase IV. Administrative assessment. Phase V. Management and financial assessment. Capitalization toward economic development is essential and nec- essary in order to allow tribes to help themselves. Full passage is requested and the Blackfeet Tribe will be ready to assist in any way possible. I have included an overview of the housing needs. Also, addition- al testimony will be forthcoming upon the findings and recommen- dations of the Blackfeet Housing Task Force and recommendations from the council. I have also included some figures on our timber and the species and the types. Mr. WILLIAMS. Thank you, Leland. The information will be very helpful. I note in some of the material that you are providing to us for the record, the notations that there are documented to be 480 Blackfeet people on the waiting list for homes. You mentioned that a good many of them are young families, and most of them now rely on staying with their parents or rela- tives. I am familiar with that situation. I have been in several homes, "I", and I use that word pretty lightly, because some of the places I have been in where two and three and four families have lived could not really be called a very good home. You also mention that 25 percent of the existing housing is in the form of trailer houses, or mobile units. I wasn't aware that a fourth of the homes on the reservations were mobile units. Are they clustered in one place on the reservation? Mr. GROUND. Clustered, and also separate. They are all through the reservation. It is one of the cheaper means of getting housing, but it is a more inadequate type of house. Mr. WILLIAMS. What is the name of that fairly new housing unit behind the tribal complex toward the highway? Mr. GROUND. We have housing units that number all the way to eight. It goes by 8, 23. We have fairly new housing units on the res- ervation. But that does not address the tougher needs of the recom- mendations of the reservation, and it does not take into considera- tion many of the people that are still living in substandard houses, as well as these trailer houses. The names of the units are just by number only. PAGENO="0148" 140 Mr. WILLIAMS. I see. The ones I am referring to, I think, are on the road out of town toward Heart Butte. Don't you have a project in there? Mr. GROUND. Yes; this was kind of like a force account project. It was a tribal contractor, tribal company on the reservation that was privately owned and that was going through the process by force account. They did a really good job on the houses. Mr. WILLIAMS. Are those single-unit homes, or are they double- family homes that are joined? Are they like duplexes? Mr. GROUND. Yes; there are duplexes. Mr. WILLIAMS. Are there some single family dwellings there? Mr. GROUND. The newer ones, there are some singles, then there are also duplexes. Mr. WILLIAMS. Thank you very much for your testimony. We ap- preciate having you here today. Mr. GROUND. All right, we would like to thank the committee, we would like to thank your efforts in the passage of this bill, if at all possible. Mr. WILLIAMS. Thank you. The next witness is Carl Waln, president of the Rosebud Sioux Tribe here in South Dakota. [Prepared statement of Carl Waln may be found in appendix III.] STATEMENT OF CARL WALN, CHAIRMAN, ROSEBUD SIOUX TRIBE, S. DAK., ACCOMPANIED BY KAREN DUBRAY, COORDINATOR FOR HOUSING PROGRAM; AND VERNON SCHMITT, MEMBER, HOUSING BOARD Mr. WALN. Thank you, Chairman Williams, Congressman Daschle, Mr. Ducheneaux, and members of the committee. We would like to make some general statements on the bill. More details and written testimony will be submitted to the com- mittee at a later date stating the Rosebud Sioux Tribe's recommen- dations for amendments and modifications. My name is Carl Waln, chairman of the Rosebud Sioux Tribe. Accompanying me is Karen DuBray, resident counselor coordinator for the housing program. On my right, Vernon Schmitt, member of the housing board. We would like to thank you for giving us the opportunity to par- ticipate in this hearing regarding the Indian Housing Act of 1982. It is obvious to us that a great deal of thought, research and hard wQrk have gone into the development of this bill. We are happy to be able to make comments and some recommendations regarding H.R. 5988. In general, we view the contents of this bill as a positive attempt to provide a comprehensive Indian housing program. The three programs described in titles I, II, and III appear to make it possible for Indian families who are otherwise unable to secure adequate housing to obtain the necessary financial assistance to do so. Without these programs, there will be no other way for our tribal people to get housing now that HUD will no longer make the development of new housing units available to Indian people. Currently, in our housing office there are 2,288 applications on file of families needing immediate housing. This bill would seem to PAGENO="0149" 141 provide for the variety of housing needs that are needed by our higher income families-this bill does not consider the needs of the elderly, handicapped, traditional people that are very low income and have not yet been reached. However, of great concern to us is the meaning of section 205 as it relates to the use of trust funds to guarantee payback of funds obligated under title II. We believe our tribe can come up with a plan by which payment can be made without use of trust funds. We recommend that section 205 be re- written or removed completely. As expressed by some other tribes here earlier, we all have a concern to protect our homeland, our home reservations. I feel we should limit the trust-limit the responsibility on the trust assets. We feel section 205 should be fine tuned more to meet the approval of the tribes. In other words, approval other than the trustee, the BIA. In regard to title IV of this bill, we completely support section 401 (a) and (b), which eliminates the bureaucracy and redtape which Indian people have had to live under in the past years. We like the idea of having an Office of Indian Housing under the immediate supervision of the Assistant Secretary of the Interior for Indian Affairs. Having this kind of organization will allow the tribes and our housing office to get faster, more knowledgeable re- sponses and services that have been impossible under the current organization and procedures. In section 401(c), although we can appreciate the concept and rec- ognize the need for assuring administrative expenses of the Office of Indian Programs, we have some reservations regarding the use of title I and II moneys appropriated under this act. Perhaps ad- ministrative expenses or preferably an additional amount could be appropriated for this purpose. We support section 402 with the following modifications: One, we would like to recommend changes in the bill in regard to the training program. This should not only allow for a training program for families but should also allow for staff training for the people who work with families. Staff training should also be includ- ed for the entire administrative staff and board of the housing au- thority. Two, under "C", funds for technical assistance and training should be separate. Funds for technical assistance should be higher during the first few years of this program but the cost would di- minish as a housing authority becomes more skilled, but by no means should technical assistance be eliminated. In other words, we agree that both technical assistance and training programs should be funded, but we believe that 1 percent of $280 million which equals $2.8 million is not sufficient for both. In conclusion, we would like to state our admiration of Mr. Udall for his support for continued funding for HUD, but we would like to recommend that this bill take preference over the continuation of HUD's housing development program for Indian families. We would also like to express our appreciation to the Congress- men and to this committee for their commitment and concern for our Indian people. In sponsoring this bill, Mr. Udall has shown that he truly has faith in the credibility of Indian tribes and we PAGENO="0150" 142 believe this bill is giving Indian nations the opportunity for true self-determination. Thank you. Mr. WIu~IAMs. Thank you very much, Carl. We appreciate having that statement, and are not unmindful that you have sug- gested that this bill takes preference over the continuation of the existing program. Although it is not the intention of the sponsors of the bill or in- tention of Congressman Udall to replace the current program, it is nice to know that we have drafted a bill that you think you might like better than what you have now. We appreciate your testimony. Mr. DASCHLE. Carl, I would like to ask one question with regard to the statement you made on the first page where you indicate there are 2,288 applications on file. What do you find the current status of these people to be? Where are they? What are they living in? Mr. SCHMITT. I would like to comment on that. My name is Vernon Schmitt and I have been working pretty closely with our local housing authority. At the present, we have roughly 642 units on the reservation; 504 of them are our low-rent units and 138 mutual. We also have in the pipeline, out of Denver, another 223 units that are on the freeze right now. I am not trying to get away from your question where the people live because we have a history on the reservation of living in ex- tended households. It has just come along with the way we live. You could find three to four families at times living in different units, and in some of our units, as well. I would like to thank the committee staff members for going over this bill with us yesterday. We had a chance to ask some questions of Mr. Ducheneaux, and I think he did a pretty good job of explaining this. But Denver HUD recently has put a lot of constrictions on the tribes. They have really pressured us into making rent collections and what have you. They have been dangling these new units at us. Now, we are getting paranoid on the Rosebud that there is a pos- siblity we might not get these units that are in the pipeline. We got word from Denver recently that they are interested in putting our allocation, which totals $17 million, into a program that they call comprehensive improvement and assistance program. It is another modernization program to go into bringing the standards up, bring- ing the existing units up to standards on the reservation. So we have been battling it out within the Jaws, ever since the moratorium was put on in May in getting these units freed up. I expressed to Mr. Ducheneaux yesterday that we have been making these very positive strides. It hasn't been easy. It has been, to some of us, political suicide. But we realize more important than anything that a lot of people are starting to move back to the reservations, people that were re- located during the Eisenhower years and into the 1970's. They have been trying to make a go of it, and a lot of them are coming back. We have got a lot of young college students. It used to be that they would prefer to just move off the reservation and get into the mainstream of life. PAGENO="0151" 143 But, see, all these trends are reversing now. My paranoia on this bill is that it will eventually take the place of HUD. It is reassuring to know that we have people in Congress like Mr. Williams and Mr. Daschle that I think are honestly trying to im- prove the basic standards of life for the disadvantaged and low- income people. I have heard a lot of good comments about Mr. Wil- liams from the people of Montana. It is really reassuring to know we have got people like you, you know, that are supporting the dis- advantaged, the minority groups in this country. But we have had a lot of shortcomings with construction on the reservation. When they came up with the Indian Preference Act, we have had a lot of our own people that were fronting for non- Indian firms on the outside. We got poor quality construction. But insofar as our mutuals are concerned, you know, our rent collec- tions are at the point now where we could say they were between 90- and 100-percent collections. So I don't think there is any need for the section 205 in the bill. We have proven that fact, that we are making these strides. As a young individual just sitting here today is a learning experience for myself, because I am going to be around quite some time at the local level. I just appreciate the experience I am getting through this hearing. Thank you. Mr. WILLIAMS. Our thanks to each of you. We appreciated your testimony here today. Mr. WALN. Thank you. Mr. WILLIAMS. I want to rearrange the schedule one more time because of someone who has to catch a plane. If any of you are in that situation, if you will let the staff know, we will try to move you up if it is absolutely necessary. Donald Good Voice with the Chippewa-Cree Tribe, Rocky Boy Reservation in Montana, has an airline problem and we would be happy to accommodate him. If he will come forward now, we will hear his testimony. Mr. DASCHLE. Pat, if I could, I want to excuse myself for a brief period of time. I have a meeting that I am going to have to get to. But just as soon as I am finished there, I will be back. Mr. WILLIAMS. We appreciate that, Tom. You are not catching a plane, too, are you? Mr. DASCHLE. No. Mr. WiLLIAMS. I also want to mention that when we sent out hearing notices to the other members of Congress, and particularly the members of the House Interior Committee, they were sent out late by the staff. That is the great thing about being in Congress. You get to blame all of the faux pas on the staff. So Debbie and Frank sent the notices out. Several other Mem- bers of Congress had expressed interest in being here, but with only a couple of day's notice, they couldn't do it. One of them was the Congressman from this district, Clint Roberts, who was good enough to send one or two members of the staff. They have been sitting through the entire hearing and taking notes so that the Congressman from this district can lend his good efforts and advice to our efforts to assure Indian people of good housing. We appreci- ate the Congressman from this district's interest. All right, you may proceed. PAGENO="0152" 144 STATEMENT OF DONOLD GOOD VOICE, CHIPPEWA-CREE TRIBE, ROCKY BOY RESERVATION, MONT. Mr. GOOD VOICE. Thanks for the consideration on the schedule. Mr. Chairman, committee members, my name is Donold Good Voice, I am an enrolled member of the Chippewa-Cree Tribe. I am also an employee of the Chippewa-Cree Housing Authority as coor- dinator of resident training/counseling program. First of all let me thank this committee for its excellent job on H.R. 5988, and appreciate the committee's hard work in getting this piece of legislation introduced and numbered. When we received H.R. 5988, we realized that you, as a commit- tee, did something that is really remarkable. I know how important wording is when a piece of legislation might become law. Words must be chosen carefully. In the Chippewa-Cree culture we, too, choose our words carefully. Words in our culture are sacred and must be used accordingly. We agree that the Bureau of Indiana Affairs does have a very bad reputation among Indians, with regard to their ability to ad- minister programs and their lack of responsiveness to Indian con- cerns. But I must agree that H;R. 5988, title IV, does have those specific requirements and restrictions that will meet those fears and criticisms. However, we are concerned that a large portion of the appropriation for construction and acquisition could be sy- phoned off for administration of this proposed law. We, therefore, make this recommendation, that the appropri- ation for construction and acquisition be left intact and a separate appropriation be made for the administration of these programs. We would also bring the committee's attention to section 105, line 22, to be rewritten from "not to exceed", but to be read "not less than". Mr. WILLIAMS. Give me the line number again, Donold. Mr. GooD VOICE. Section 105, line 2. Mr. WILLIAMS. All right. Mr. GooD VoICE. We, therefore, as a tribe, feel reasonably as- sured that this law will mutually benefit our people. With the in- clusion of the aforementioned recommendations we can fully sup- port H.R. 5988. I would like to thank this committee for giving me this opportu- nity to testify. Mr. WILLIAMS. Thank you. You are most welcome, and we parti- culary appreciate your traveling here on behalf of the Chippewa- Cree Tribe. That is good, to the point testimony, and we are happy to receive it. Thank you very much. We have a substitution witness, Allen White Lightning, accompa- nied by Renee Yellow and George Waters of the Standing Rock Sioux Tribe. [Prepared statement Of Pat McLaughlin may be found in appen- dix III.] PAGENO="0153" 145 PANEL FROM THE STANDING ROCK SIOUX TRIBE, S. DAK., CON- SISTING OF: ALLEN WHITE LIGHTNING, COUNCILMAN; AND PHYLLIS YOUNG, SECRETARY, HOUSING AUTHORITY Mr. WHITE LIGHTNING. Mr. Williams, I would like to make a cor- rection. I have Mr. Charles Murphy, vice chairman of the tribe here and I also have Mrs. Phyllis Young, who is going to be sitting in for the housing authority committee. I would like to also com- mend your staff. They have been receptive to the tribal demands. To continue with the testimony, Mr. Williams, we are pleased that you have asked the Standing Rock Sioux Tribe to testify on H.R. 5988, the Indian Housing Act of 1982. We want to commend you, the members and the staff of the committee for your concern for the housing needs of Indian people. My name, is L. J. White Lightning. Mr. Pat McLaughlin, duly elected chairman of the Standing Rock Sioux Tribe, is unable to make it today because of vehicle problems on his way over. I have with me the members of the health, education, welfare and housing committee of the Standing Rock Sioux Tribe in the au- dience. Mrs. Young and Mrs. Yellow are members of the Standing Rock Housing Authority, and who have spent countless numbers of hours going over your proposed Indian housing legislation. Also, I would like to commend Mr. Bill Gibb, also an enrolled member of the tribe, who has been here all day and who has ex- pressed a very sincere interest in the housing legislation. Mr. Chairman, our position will not be in favor or against the bill; however, we will address questions which we have that are un- answered. First of all, I must briefly acquaint you with the Standing Rock Sioux Tribe. We have a population of about 6,300 Indian people living on the reservation with an additional 2,500 Indian people living near or adjacent to the reservation. At present, our real un- employment rate is hovering around 90 percent with virtually no industry on the reservation which is comprised of 2.3 million acres of land with about 800,000 acres of tribal and/or allotted lands. Your committee's concern on Indian housing is well-founded. The committee is all too familiar with the incredible state of Indian housing nationwide and the negative statistics are evidenced at our reservation as well. Our general position on the bill is one of apprehension. The rela- tionship that Indian tribes have with HUD is similar to the often described love/hate relationship with the Bureau of Indian Affairs. Our apprehension about the bill could be crudely described as won- dering if we are not going from the frying pan into the fire, but due to the fact the winters are very cold in the Dakotas, we would like to be in one of the two. We must really question if the BIA is capable of operating this program. The Standing Rock Sioux Tribe would prefer that HUD continue to operate the Indian housing program. We would like to force, through legislation if necessary, significant changes upon HUD that would make that agency more responsive to the needs of our Indian people. However, we realize we are like an unwanted child at HUD and that the program might be cut out. If that is the case, we agree PAGENO="0154" 146 that there should be an alternative in place. We would, therefore, like to address some specific concerns we have with H.R. 5988 and ask some questions; $30 million is simply and factually an insuffi- cient amount of money to meet the needs of the number of people who would qualify for assistance under this section. We request that the authorized level for title I be increased to $60 million. In section 202 we are wondering where the funding will come from for the tribe to prepare what will be a fairly comprehensive housing plan. We suggest an amendment to section 402(a) that will not just allow the BIA to provide technical assistance to tribes in preparing these plans but that allow for financial assistance to the tribe to prepare the housing plan. We also feel it would be wise to insure that the tribes have available to them funding for contract- ing the services of architects to perform the services envisioned in section 203. We question if the language in section 203(b)(1) might not inadvertently punish those tribes who have performed well in previous fiscal years. As the committee is aware, we have problems with section 205. Indian tribes often have only two things of value; land and trust assets. We do not want to put up our trust assets and gamble that they might be lost. This could set a very negative precedent. Never before through statute has anyone suggested that trust assets be compromised in such a manner. We do not think it's time to start. We urge that section 205 (a) and (b) aiad 209(b)(4) be stricken from the bill. This bill makes provision for the situation where a family not paying the agency what it has agreed to pay may be taken to tribal court and we feel that this is sufficient to legally protect the agency and guarantee payments. Section 209(b)(1) needs to be clarified to make clear what lands this relates to. We assume this was intended to refer to the imme- diate lands on which the house lot sits; however, this is not stated in section 209(b)(1). As presently stated, this section could allow an agency to require that a family transfer all of its trust lands to the agency. Section 209(b)(3) requires the homebuyer to pay all utilities and maintenance and in section 210, the family is asked to pay admin- istrative charges, insurance premiums, and a contingency reserve for maintenance. We really question whether people eligible for as- sistance under title II will be able to pay all these costs. In the winter months on our reservation, utility bills can easily be $500 and more per month.~ HUD presently subsidizes the families cost in this area. We think people will hold back on their administrative charges and this will result in the agencies going broke and having no operating expenses. When you ad& up utility charges, adminis- trative charges, insurance premiums, a contingency charge for maintenance and 20 percent of adjusted family income, it will in many cases total much more than the 30 percent of income that HUD is proposing to charge. We suggest that either an additional provision be added to this bill authorizing appropriations for the housing agencies or that section 3(1) of title I be amended allowing for a utility allowance adjustment in the definition of "adjusted family income". We feel obliged to point out in reference to section 211 dealing with residual receipts that the tribes are being asked to do some- PAGENO="0155" 147 thing that HUD has never been able to accomplish; that being the collection of residual receipts. We feel this is a serious issue be- cause of the contribution of residual receipts to the fund. We have some concerns with section 302. We are all familiar with how much Indian land was lost in the early part of this cen- tury when lands were parceled into allotments and through var- ious schemes lost by Indian people forever. This could happen in section 302 and we must oppose any situation which could result in such a loss. We are very apprehensive about the ability of the BIA to operate such a large-scale financial loan guarantee program. We would, therefore, request that the Congress do all in it's power to oversee this program and insure that the Bureau remains accountable. Politically we question whether this bill will fly in Congress. Will Congressmen Gonzalez and St Germain of the Authorizing Commit- tee and Congressman Boland of the Appropriations Committee be willing to give up this turf? The same must be asked of Senators Garn and Lugar. This is a lot of money for these subcommittee and committee chairmen to give to the Interior Authorizing and Appro- priating Committees. We need to get a clear message from these and other congressional leaders. If Indian country keys it's efforts to support H.R. 5988 and lets HUD cut out the Indian program, we would be faced with disaster if H.R. 5988 then did not pass Con- gress, with funding and/or was vetoed by the President. Our final recommendation is that the bill be amended in the ap- propriate section to allow for the construction of group homes. There is often a need for group homes for youth, for elderly and for people with alcoholism related problems. This bill presently does not authorize the construction of such homes and no other agency will either. We feel this would be an important and cost effective expenditure. Mr. Chairman, this concludes our comments. Again, we thank you for your attention and concern for Indian housing and we would be glad to answer any questions you may have. Mr. WILLIAMS. Thank you, Allen, let me ask this. Do you prefer the current housing program under HUD to this bill? Mr. WHITE LIGHTNING. I would answer this way, Mr. Congress- man. I would rather have something in hand rather than in a bush. I would prefer to have the present HUD program be changed, have the HUD people educated in Indian ways and make darn sure that it works this time, if there is. Mr. WILLIAMS. Your concern, as I understand it, is that I may lose both. If the President has his way, you lose the program oper- ated by HUD, and if this bill doesn't pass or is vetoed, you are left with nothing. Mr. WHITE LIGHTNING. Right on. Mr. WILLIAMS. We appreciate your testimony here. Mr. WHITE LIGHTNING. Mr. Williams, I have one more comment. I believe Mrs. Young here has a comment that she wants to ad- dress to the committee and I think it is very pertinent. Mr. WILLIAMS. All right, proceed. Mrs. YOUNG. Thank you, Mr. Congressman. First of all, I am insulted by a former gentleman that said that we are uncivilized. I am a full blood. I am representative of a large PAGENO="0156" 148 part of our communities. We have to understand that this is all part of the assimilation program. That we are a distinct people with our own culture. We didn't ask to be put in square boxes. We do not know about the basic home upkeep, about screws and wash- ers, et cetera. This bill has bureaucrats in Washington as well as local Indian people floundering because it is a new aspect under the trust responsibility. I think we will all be more comfortable once all of us recognize that it is a new concept and we deal with it on Indian terms. There are a number of things in this bill that I would like to address. One, and the foremost is the growing trend for Americans to seek isolated areas so that they can have a home up in the woods with no water facilities, and so they can be alone, away from the rat race. In this bill there is no alternative for Indian people who would like to live on their land in remote areas, because they are not within the construction or within the pipelines of a water system, because they don't have the facilities for water and sewer. I ques- tion that because it is a growing trend for middle class America. Yet you have standards that Indian people, you are trying to up- bring our living standards. So there is a conflict here, I think, in this bill. The other thing is section 205 is based on Public Law 450. You are utilizing a bill that was established for cattle operators back in 1956 that was pushed by a certain segment of people, of Indian people, but is having an impact on the Indian people with land, with trust funds. The other thing that section 205 does, it increases the dependen- cy concept, because you are talking about establishing an economic operation for housing on the reservation. Is that tribal housing agency going to take the funds from the JAM Act and justify it di- rectly to housing? How are Indian people going to learn to deal with their own economic mix if we are dependent on that process to be carried out by the interdepartment representatives between housing and tribal. I appreciate the opportunity to talk here. I think its quite differ- ent from Indian policy that many times had been established be- tween conservatives and the moral majority, liberals, et cetera, rather than listening to the Indian people ourselves. Thank you. Mr. WILLIAMS. Thank you very much. STATEMENT OF ROBERT PHILBRICK, CHAIRMAN, CROW CREEK SIOUX TRIBE Mr. PHILBRICK. Thank you, gentleman. We have a housing director from Fort Thompson. I wish he could come up if he is in the crowd here. Mr. WILLIAMS. If he is here, he is certainly welcome to come to the witness table. Mr. PHILBRICK. Yes; first of all, I want to thank Chairman Udall for this hearing and I know he is a Congressman from, I don't know, I was asking somebody whether it is Arizona? Mr. WILLIAMS. Yes. PAGENO="0157" 149 Mr. PHILBRICK. Somebody said, no, it is Utah. So they got me kind of puzzled. Yet I knew Mr. Frank Ducheneaux is working for him and he is from South Dakota. So that makes it quite a little pair, you know, a Congressman from down in Arizona and Mr. Du- cheneaux working withhim for several years now. I wanted to also state that I thank the other committee mem- bers, all the committee members for giving us a chance to talk here and express our views and opinions. I know you have heard a lot of them today. I listened to a lot of them. This probably is not the last time you are going to get people together here, Indian people. I did put down a view, this here, that I thought I would like to bring out. It is just my own opinion. I don't like to say I am going to be in politics, but we did just get through on the election with the Crow Creek just a week ago, so we are going to have four new members on our council. We have seven members on the council. We have a small reservation, about 1,500 enrolled members and maybe 300 or 400 that are not enrolled. Then we have non- members. I can remember back about 20 years ago when President Kenne- dy had made it possible for low-rent housing to come on the reser- vation. In those days, I was working with Frank Fauts, here, on the Cheyenne River. Of course, I was still in Crow Creek, but the chair- man worked a little closer together in them days, I would say. Anyway, it seems like just 20 years is a short time. Then we have a President now that wants to do away with the housing on Indian reservations. The only reason that I can think they have is because he wants to save money. Now, the Indian people, we have been under a treaty since 1868. That is the treaty that most of the Sioux people are involved with. I have talked to many of the elderly people on not only Crow Creek, but the other reservations. They have also told me we must stand by that treaty, and try to uphold it clear, as long as we live. It says on there that the U.S. Government is going to take care of the Indian people so long as even there is a single one, so long as the Sun shines and the grass grows. But it looks as though the treaty with the Indian people have been broken. They are still wanting the Indian people to suffer. There is nobody that suffered more in the United States than the Indian citizens. They were made citizens back in 1924. I was 13 years old at that time. I didn't know whether I was a citizen or. not at that time. But I know I was going to school, and they told me later that this is a time Congress thought we better be citizens. I am wondering today whether we are better off as citizens, or if they left us not being citizens. I know that Congress sent more money across the ocean to people that are poor and are needy than they send to our reservations. I know there had been some conflicts in these housing authori- ties, and they claim they have lost money and they didn't collect all rents. But I don't feel like it is all the Indian's fault. When we first got these houses, they were designed so that Indian people would have a place to live. PAGENO="0158" 150 I would say that maybe over 50 percent of the Indian people were on welfare. There weren't any jobs, even way back there on the reservations. There were few jobs and very few cattle operators. So that when these houses were built, a lot of the Indians were afraid to move into them. They were afraid that they were going to lose something that they had before. Just so as they put out bids, I guess. They spent just about as much money on engineering as they did in building the house. After they built the house and put all the bids out, they find out that all the appliances were the kind of appliances that you couldn't get parts for them anymore. When they went bad, when they found out, they would try to get parts and fix the stoves up. Yet there was no place to get them. On our reservation we had 20 new houses. All those houses had to have the stoves replaced. Whenever they would get something, it was always obsolete, somebody else didn't want. So I wanted to bring this out because I know it is not all the Indian's fault that they didn't pay the rent. Now, up to today, I could go back to Fort Thompson. I know they got things wrong with the sewer system or the water system, or else the ovens don't work, some part of the stove doesn't work. This goes on and on. A 1~t of the Indians say, well, I am not going to pay my rent until they fix these things up. I have talked to people in Denver, and they say, well, it is up to your local housing authority. But when you talk to them, they don't have the money because people don't pay their rent. So this goes on and on. I know if I was living in a house in Chamberland, we will say, that is the closest town, and if some- thing didn't work, I would have to tell the owner. If the owner didn't fix it, then I probably won't want to pay the rent. So these things I want to bring out so that if this administration thinks that the Indian people are poor payers, why, I want them to know that it is not all their fault. Another thing, the houses that were built, I would say they are substandard houses. If some other citizen wants to build a house, and they were the kind of houses that were available, I am sure he wouldn't want to pay them, because you can't keep warm in it in the wintertime, and you can't keep cool in the summertime. Somebody mentioned today that there are two-by-fours in houses. But we got houses over there that don't have any two-by-fours in them. They were just plain wall and outside, and they keep on put- ting more siding on until they were about 3 or 4 inches thick. But that doesn't make the house very solid, warm. I feel that this bill that you folks have drafted up is something good, and you are thinking about the Indian people. I am sure I don't have to be telling you all these things. I know young Frank here knows a lot of these things because his dad and I lived with these and I am sure he told him. Now, in this bill I would say that I only have to give my opinion as the chairman of the tribe, since we are going to have four new members, and we have a seven-member council. We are going to be PAGENO="0159" 151 sworn in the fourth day of May. So that is when our new council will start. I would like to say that we will send a statement in about the bill, what position we want to take. I know we don't want to be too choosy about it, because it seems like we should be satisfied with anything we get, because of all the years I know of, no matter what we want, we never did get it. I am glad there are such people on this committee that can bring out something here that would benefit the Indian people. I don't want to take anymore time. I think there are some other people here that would like to have also. But I want to thank you gentleman again for giving me the time. Mr. WILLIAMS. Thank you very much, Bob. We appreciate that interesting account, and are glad to see you here today. Mr. Pat Stands and Ted Hogan of the Crow Tribal Council, Mon- tana. [EDITOR'S NOTE.-The statement referred to above had not been submitted at time of printing, and will be placed in the committee's file of today's hearing when received.] STATEMENT OF PAT STANDS, CROW TRIBAL COUNCIL, MONTANA; ACCOMPANIED BY ARTHUR PLENTY HAWK, DIRECTOR, HOUS- ING AUTHORITY Mr. STANDS. Thank you Honorable Congressman Williams. My name is Pat Stands and the gentleman to my left is the di- rector of our Crow Tribal Housing Authority. If it pleases the hearing committee, I would like to express my appreciation and sincere thanks for being invited here today to participate in this hearing on the bill designated H.R. 5988. I know the other members feel likewise. I have the entire Crow Housing Authority with me here in the audience. I will submit a copy of my statement for the records. If I may, I would like to proceed with my statement. Like other Montana Indian tribes, the Crows first heard of H.R. 5988 at a meeting held in Billings, Mont., on April 6,. 1982, and after discussing it among ourselves, we are very much in favor and would like to lend our support in seeing this bill become law. It seems that at best, the Office of Regional Indian Programs, De- partment of HUD, future is uncertain. This is especially untimely since at Crow-and other Indian tribes probably have the same problem-the demand for housing has always outdistanced the supply. Perhaps I could be wrong, but I feel that adequate shelter is basic in the beneficiary trustee relationship created by treaties entered into between Indian tribes and the U.S. Government. The fact that 40 percent of all Indian housing is substandard as com- pared to the national average figure of 12 percent is a sad statistic. In analyzing H.R. 5988, it is felt that its major strong points are: One, particularly with so-called Reaganomics which to our un- derstanding stresses involvement by the private sector of the econo- my. This bill will attempt to marshal, not only public, but also pri- vate resources. Incidentally, however, I might add that my ances- tors signed treaties with the U.S. Government. PAGENO="0160" 152 Two, the bill is simple and straightforward and is somewhat of a conglomerate of housing programs established for Indians but ex- isting under different departments of the Government. Under title I, for example, it is my understanding that this pro- gram is designed for persons who do not qualify for the other pro- grams under title II and III. Therefore, the recipients benefits under title I will be in the very low-income category and, therefore, I would assume the major emphasis of this program will be the grant portion. I think this is good since Indian people simply do not have money in many cases and the economy on many reservations is certainly not improving. As far as the $30 million being appro- priated for fiscal year 1983, while this sounds like a lot of money, I think the figure and request should be closely scrutinized and per- haps more will need to be requested. Under title II, it is my understanding that this will constitute the direct loan program. One concern that I do have is in regards to the criteria that will be used to establish priorities in identifying Indian tribes that will receive houses. Under the existing program, for example, some tribes have faired better than others regarding the overall housing programs and perhaps some consideration should be given to this. I am not sure why this is so. A comment regarding this area would be that if, in fact, Indian tribes are going to allow the Secretary of Interior to attach tribal trust funds, this must be very clear to the entire tribe. It would seem to me to be rather unfair for housing recipients to be able to jeopardize non- participants' share in tribal trust moneys. The provision allowing Indian families to use this program to make a down payment on housing is very good. I would hope that this could be done in communities not technically on the reserva- tion but adjacent to the reservation. Regarding title III, this establishes the guarantee program and is the effort to marshall private resources. I believe this is somewhat analogous to the Small Business Adminstration's guaranteed loan program. With a 100 percent guarantee, I am sure this will become very attractive for lenders in the housing area, however, it can have adverse effect whereby with the protection of this guarantee, the valid credit criteria tends to be ignored. Three, another strong point is placing Indian housing programs under one agency. Presently, the BIA has an Office of Regional Indian Programs, HUD has a program, and Indian Public Health Service is supportive in regards to sewer and water. Needless to say, it sometimes becomes very difficult to coordinate all these three governmental agencies in the housing construction effort on Indian reservations. Four, I foresee Indian tribes taking a very strong and dominant role in this area if this bill is enacted into law. Presently in place are the housing authorities and these could very well serve as the agency. Furthermore, Public Law 93-638 will permit tribes to contract this program if they feel that they should. In other words, much of the ground has already been laid for this type of bill. Mr. WILLIAMS. Thank you very much, Pat. Pat, approximately how many people live on your reservations? Mr. STANDS. About 6,300 people. PAGENO="0161" 153 Mr. WILLIAMS. Do you know what the unemployment rate is now? Mr. STANDS. I would guess about this time it should be around 60, 70 percent. Mr. WILLIAMS. Do you have a waiting list for homes? Mr. STANDS. Oh, we have a waiting list of about 2,000 applica- tions for homes. We have about one of the lowest amounts of housing that was allocated in the past. A little over 300 homes have been constructed on the reservation so far. Mr. WILLIAMS. Do you have a lot of mobile units on the reserva- tion,trailer homes? Mr. STANDS. Privately owned mobile units? There are some, but I cannot say how many. There are some. Mr. WILLIAMS. I assume that there are many houses that have more than one family living in them as we have heard from other reservations. Mr. STANDS. Oh, yes, definitely. Mr. PLENTY HAWK. Yes. Mr. WILLIAMS. A good many one-room houses? Mr. STANDS. Yes; there are a lot, still a lot of substandard homes. That is the reason why we have such a long waiting list. We are a new committee, but somehow, the tribe, the Crow Tribe has never really attained as many houses as other tribes have so far. Mr. WILLIAMS. Let me ask you, what do you think caused that? Mr. STANDS. I really can't say. The tribe as a whole never started participating in HUD until about 2 years after most tribes had. That could be one of the reasons. They were late in getting started. Mr. WILLIAMS. Pat, thank you very much. We appreciate your being here along with the other members of the Crow Tribe. Mr. STANDS. On behalf of the Crow Tribe, I would like to com- mend the job that you have performed inasfar as this bill is con- cerned and we thank you very much. Mr. WILLIAMS. Thank you. Next is Mr. Larry Cournoyer, chairman, Yankton Sioux Tribe here in South Dakota. PANEL FROM THE YANKTON SIOUX TRIBE, SOUTH DAKOTA, CON- SISTING OF: GEORGE COURNOYER, EXECUTIVE DIRECTOR, HOUSING AUTHORITY; AND AL ZEPHIER, COUNCILMAN AND CHAIRMAN, HOUSING AUTHORITY - Mr. COURNOYER. Larry Cournoyer will not be here today because of some prior commitments so he sent us up to represent the tribe and housing authority. Mr. WILLIAMS. Please identify yourselves for the record. Mr. COURNOYER. I am George Cournoyer, executive director for the Yankton Sioux Housing Authority. On my right is Mr. Al Ze- phier, councilman for the tribe and also chairman of our Yankton Sioux Housing Authority. Before I get into my testimony, I will turn it over to Al for some comments he would like to make. Mr. ZEPHIER. Mr. Chairman, members of the committee, I would like to make a little statement for the record. We appreciate your 18-934 0-83--il PAGENO="0162" 154 coming to our area so it will make it easier for us to make state- ments concerning this bill. Also, we appreciate the fact that there are Members on the Hill that are willing to carry out the wishes and words of their ances- tors. We are grateful you could introduce this bill. I would like to make one comment concerning the issue that was brought up quite a few times during this hearing concerning the trust lands and tribal responsibilities concerning the housing. I would like to introduce something to the committee that may solve part of this by letting tribal courts carry out a bankruptcy clause that could be added to this bill whereby the responsibility would be up to the individual that signs for these houses. I would like to in- troduce that to the committee. Thank you for listening. Mr. WILUAMS. Thank you. Mr. COURNOYER. Mr. Chairman, members of the committee, I am pleased to submit the following testimony on behalf of the Yankton Sioux Tribe of Greenwood, S. Dak., and the Yankton Sioux Housing Authority. The unmet needs of the Yankton Sioux Tribe consisting of some 5,000 persons of which 2,800 live in lower Charles Mix County, S. Dak., are many; but no need is greater than housing and no need is less likely to be met unless the Federal Government takes an active and positive approach toward resolving. The lack of capital that prevents our tribal members from building their own homes stems from unemployment, lack of land base and lack of equity; these very same problems prevent the tribe itself from building these homes for its people; we, therefore, turn to the Federal Gov- ernment. We hope that the following comments are taken in the constructive and positive spirit in which they have been written to enhance the passage of the Indian Housing Act of 1982. The Yankton Sioux Tribe has attempted to operate a housing au- thority, construction company, and home improvement program for the past several years with varying degrees of success. While our viewpoint is perhaps biased it is nonetheless our viewpoint and some observations should bear listening to as a matter of back- ground. Through either planned lack of cooperation or through typical bureaucratic bumbling the Department of Housing and Urban Development has held up dozens of units of new housing to our reservation for over 3 years; letters take months to be an- swered, documents are lost and not discovered missing for weeks and months, technical assistance is totally lacking in any meaning- ful sense of the term and the net result is confusion, resentments, mistrust and an absence of new housing starts. During the years of working with the Indian Health Service [IHS], Department of Housing and Urban Development [HUD] and the Bureau of Indian Affairs [BIA] the one consistent reality a tribe or tribal housing authority can experience is that it is more an accident when all three Federal entities have competent, well- trained staff capable of assisting then in moving forward with their housing needs. The usual experience is that on any one project, new staff come on board at any of the three organizations and work stops until the "new" person can be brought up to par with the project. In some cases, the project has been shelved leaving PAGENO="0163" 155 roads to homes undone, sewers not hooked up to completed but un- inhabitable homes; tenants frustrated, disappointed and angry at a system that has been offered to them as the only way. Housing is a complex, expensive, and technical field that cannot afford to be shuffled back and forth between three Federal entities and dozens of bureaucrats without resulting in unreasonably high costs per unit and relatively poor administrative control at the local level. The projects requested by the tribes rarely are funded as requested and are modified, amended, deleted, and revitilized into unrecognizable and resented projects by the time they emerge from the maze required prior to approval and actual construction. The act proposed goes a long way to resolving all of these monsters of the past and with them hopefully most of the errors, problems, and resentments as well. The Indian Housing Act of 1982 is in general the most positive and constructive legislation offered on behalf of Indian people in the last several years and its passage can bring about a tremen- dous impact on tribes and Indian people. Specific suggestions that will be offered should be considered as late contributions from per- sons and groups who want to see a great idea become even more solid and operational. The concept of being operated out of the Bureau of Indian Af- fairs has both positive aspects; the Bureau is certainly more at- tuned to tribal needs, strengths and weaknesses than the Depart- ment of Housing and Urban Development, but nonetheless, the Bureau has not always demonstrated its ability to act in a positive and constructive manner toward resolving problems and operating projects in an objective and cost-effective manner. Reducing the number of Federal entities involved from three: The Bureau, HUD, and the Indian Health Service to two: the Bureau and the IHS is a step in the right direction and will go a long way toward reducing delays and improving coordination. It is unfortunate that the pro- posed legislation does not go to the logical conclusive end of having one entity responsible for the entire housing package. Why not transfer the appropriation from Indian Health Service to the Bureau, for water and sewer systems, thereby eliminating a major coordination hurdle and eventually phase out that portion of IHS and create a sub-unit within the BIA which could do the very same things without the interagency hassles, delays, and coordination problems. The existing road programs and appropriations are inadequate to meet the current needs of some areas and increased coordination as well as increased funding will be needed for at least a few years to catch up on past projects which were not at all coordinated through HUD, IHS, and the Bureau. For example, homes which went without sewer systems for some time, and still do not have roads to them, will need to be identified, funded, and built, before normal operations can be assumed. The major obstacle to total support of the act from our perspec- tive is the inclusion of section 205 whereby the Secretary is empow- ered to attach funds of the tribe for non-payment. While we agree that this no doubt builds the act's credibility, it ignores the key ele- ment or issues; that being, the Federal Government's legal rela- tionship and responsibility to Indian people. If safeguards to this PAGENO="0164" 156 section could be written into the legislation which could prevent appointed Federal officials from usurping elected officials responsi- bilities, then some consideration of such would be possible. But as written, and as we have experienced in the past, this section alone negates any other positive aspects of the act and would preclude our tribe from taking part in such housing efforts. The three components of the act shows the input, analysis of need, and efforts of the committee, and they should be commended for their work. The funding levels appear to be adequate for title I and title II, but perhaps the level should actually have been dou- bled for title III in the initial years until the level indicated has been reached. The major difference as we see this act is that the money will: First, actually get out to the reservations; second, be used more effectively than ever before possible under HUD; and third, through innovations implied throughout the legislation local decisions alone can result in more cost effective housing. What we have read from the act is that if the persons in the Bureau want to have staff in the various area offices that it would be possible to do so. We obviously want authority as local as is le- gally possible with oversight or right of appeal to the central office reserved for use if necessary. Again, past experiences have taught us that far too many decisions reached have been arbitrary and without basis in fact. Although the act is not intended to lay out all the administrative details, we do believe that efforts to coordinate all three titles through the act, administrative guidelines and the rules and regu- lations should be done in a manner that encourages and maximizes the potential of a coordinated local effort. The act as written will enable our tribe to once again be optimis- tic about housing on our reservation. Under current legislation a recent analysis of our housing needs revealed that it would take some 15 years and $20 million plus to reach a point where we could say that the current population needs had been addressed insofar as safe and decent housing and yet another half a million dollars per year for the next 15 years to maintain the current housing. Under this legislation we should be able to spend the money that we need on significant home rehabilitation now and upgrade exist- ing structures into safe and decent dwellings so that this timetable and budget can be reduced substantially. As any legislation written is only as good as the staff hired to write the administrative procedures and operating guidelines, we sincerely hope that if passed great effort will be taken to insure that skilled competent staff with local experience and knowledge can be hired to operate the activites outlined in this act. It would be a total disappointment and exercise in futility to pass the act and then have incompetent staff attempt to learn as they go in what could well be the last effort to build safe and decent homes for the American Indian people. The act as written contains the elements needed to address the housing needs for our people; it is more concise and less cumber- some than existing legislation and would encourage cost effective- ness at the local level in construction, rehabilitation, administra- tion, and maintenance of safe, decent, sanitary homes. We urge its passage with the above comments taken into account and incorpo- PAGENO="0165" 157 rated as applicable improvements to an interesting and promising piece of legislation. Thank you. Mr. WILLIAMS. We all thank you, gentleman. Your testimony will be helpful to the committee, and we are glad that you came and presented it. Thank you very much. Our next witness is Ramona Jones, Lower Sioux from Minnesota. STATEMENT OF RAMONA JONES, CONSULTANT, LOWER SIOUX COMMUNITY COUNCIL, MINNESOTA Ms. JONES. Mr. Chairman, committee members, thank you for of- fering this opportunity for all of us to have. I would like to sumbit for the record from the Lower Sioux Community Council a letter designating myself, Ramona Jones, as their representative to act on their behalf today and an official copy of resolution 13-82 stat- ing the Lower Sioux Indian communities position on H.R. 5988. [EDIToR'S NOTE-A copy of the resolution may be found in appen- dix III.] The Lower Sioux Community Council has disapproved the bill. The reason stated is that they objected to the use of tribal trust funds or lands as collateral. At a later point and before May 4, the Lower Sioux Community will submit to you their written testimony. I would like to point out for you a couple pieces of information. The Lower Sioux Com- munity had a fast-growing community located in the central west- ern part of Minnesota. HUD keep for 3 years on their desk the Indian housing rules and regulations. Finally in December of 1981, HUD finally made the housing authority. In the interim, the State of Minnesota had allocated the four Minnesota Sioux communities over $1 million of State funds for a revolving loan fund up to 99 years at 3.5-percent interest for afford- able mortgage rates for the Indian families, of which the Lower Sioux Community built approximately 20 newly purchased existing homes on or near the reservations on scattered sites, and they also rehabilitated some of the substandard housing, not to standard con- ditions, but at least a little bit better than before. In the 4 years of program operations of the Sioux home loan pro- gram, there have been no defaulted payments or foreclosures. That is the reason why section 205 is asked to be stricken from the bill because it is an insult. Here is a case where tribes have attempted to work another housing alternative and have succeeded in show- ing what can be done. In the event default payments should happen, the alternative plan is to rent or lease the mortgage prop- erty. This is an Indian homeowner, whether they are on trust, title lands, or fee lands. They are entitled to own that house and then can, at their option, rent or lease it with the proper lease or rental agreement to bring the defaulted payments up to rent at a rate so that the defaulted payments after a period of time would no longer exist. I would like to just say that formerly I was the administrator of the State tribal housing for the State of Minnesota, so my experi- ence was with all the tribes. This program turned out to be in PAGENO="0166" 158 excess of $20 million for 5 years so far, and it has a very good suc- cess rate. I would like to also point out that continuously, the small tribes find themselves unable to use all the programs. For instance, under title III, there is such a limited trust land or trust funds for small tribes that this is just, title III guaranteed program limited to trust lands is just impossible. The phased con- struction will be important in meeting some of the Indian unem- ployment needs as illustrated through the rehab program and through the new construction of the State housing funds. A small construction could develop over the last couple of years and has employed from 5 to 15 people in this particular small community. Even with your criteria for housing, you are going to prioritize based on need, it is almost impossible to see how small tribes will benefit from the program without some kind of allocations formula. So the question is, there is just very little that we see important. Another thing for you to remember is that Indians are taxpayers, too. Those Indian persons, where it is 25 percent of the Indian pop- ulation in a community that is working, pays Federal income taxes. In States where States collect income tax on income, they pay that, and they pay sales tax. When you make a statement, you are representing U.S. citizens, it almost sounds as if Indians are not citizens, when they also pay taxes. As I said earlier, the written testimony will come later, but before May 4. Thank you. Mr. WILLIAMS. Ramona Jones, thank you very much. You bring expertise to the committee, and we were pleased to here from you. We take the Lower Sioux Indian Community resolution serious- ly. Let me say to you that this committee is in full agreement with you that Indians are citizens, too. The point is that Indians, too, want to make sure these programs are paid back. We simply want to establish a mechanism to do that. Ms. JONES. Right. Mr. WILLIAMS. Again, our thanks for your excellent testimony. Ms. JONES. Thank you. Mr. WILLIAMS. Joe Oldman, chairman, Arapahoe, Wind River, Wyo. [Prepared statement of Joseph Oldman may be found in the ap- pendix III.] STATEMENT OF JOSEPH OLDMAN, CHAIRMAN, NATIONAL ARAPA- HOE BUSINESS COUNCIL; ACCOMPANIED BY LAVERNE FAULK- NER, MEMBER, HOUSING BOARD; AND BURNETT WHITEPLUME, PLANNER Mr. OLDMAN. My name is Joseph Oldman. Here with me is our tribal planner, Mr. Whiteplume, and also of the housing board, La- verne Faulkner. Also, we have accompanying us Burton Hutchinson. Chairman Williams, staff, ladies and gentleman, I represent the Northern Arapahoe Tribe of Wyoming. We, the Northern Arapa- hoe Tribe share the Wind River Indian Reservation with another tribe. Our current enrollment is approximately 3,400 and is the PAGENO="0167" 159 largest of two tribes on the reservation. Our tribe is supporting the concept of the Indian Housing Act of 1982 and would like to recom- mend some changes. First, we want specific language on the allocation of housing units. That is, we want the allocation to be based on population. For example, our Public Law 93-638 allocation is based on popula- tion. We receive 54 percent of the 638 funds that come to the Wind River Reservation. We recommend that our tribe be allowed to submit a single tribal application based solely on the Northern Arapahoe Tribal population under section 203(d). Under the HUD administration, the housing allocation is split 50-50. The housing needs of the Northern Arapahoe people are not being adequately met. Second, the amortization payment should be in line with the rates established in other Federal programs, for example the Veter- ans' Administration and Farmers Home Administration. Finally, this bill should provide a vehicle to solve the differences that may arise between or among the parties involved in a dispute. The Bureau of Indian Affairs has not exercised it's responsiblity regarding the trust relationship. The oil thefts from the Wind River Indian Reservation is an example of what happens when there is no recourse. Interpretation of the law is often a problem once a plan is implemented. * We recommend that a special commission made up of tribal memberships sit in and provide input into the formulation of the rules and regulations for this bill, Indian Housing Act of 1982, with the Bureau of Indian Affairs and responsible authorities. Further we recommend that an on-going commission be estab- lished to work closely with the appointed Director of Indian Hous- ing Programs to assure fair interpretations of the Indian Housing Act. In all cases, the integrity of the Indian tribes should be pre- served. We recommend that the interests of the Indian tribes be protected as well as the Federal Government. We will forward additional written comments after further study of the meaning of certain sections of this bill. Thank you. Mr. WILLIAMS. We all thank you very much. We appreciate greatly your testimony. And we particulary appreciate your pa- tience in waiting until the end of the witness list to be heard. Your testimony will be helpful as we adjust this bill, if and when it begins to work its way through the committee and we thank you for being here. Let me try again to see if Lawrence Wunna is with us. We thank all of you for your testimony and presence here today. This hearing of the Committee on Interior and Insular Affairs is adjourned. [Whereupon, at 3:07 p.m, the committee was adjourned.] PAGENO="0168" PAGENO="0169" INDIAN HOUSING ACT OF 1982 THURSDAY, APRIL29, 1982 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Washington, D.C. The committee met, pursuant to notice, at 10 a.m., in room 116, House Annex No. 1, Hon. Morris K. Udall (chairman of the com- mittee) presiding. The CHAIRMAN. The committee will be in order. Today, the committee completes its hearings on H.R. 5988 provid- ing for the establishment of an Indian housing program in the Bureau of Indian Affairs. The committee has already had 3 days of hearings on this legisla- tion and has heard from Indian witnesses representing nearly 70 Indian tribes and from two major Indian organizations. Over- whelmingly, these witnesses, while opposing and expressing con- cern about certain provisions of the bill, have endorsed and sup- ported the bill itself. Some have indicated that they would prefer to retain the existing HUD program, if possible, but would support this bill if that is not possible. In view of the desperate housing conditions among Indians, it is vital that there be a continuity of program effort of housing assist- ance. If HUD is to continue to be the answer, 1 will support the continuation of that program. If the administration is successful in terminating that program, it is important there be an alternative program to take its place. We think our bill can provide that alter- native. We had requested testimony from the administration for this hearing. However, the Department of the Interior has indicated that they have not had a position approved by 0MB and are not ready to present a statement. They have asked that they be permit- ted to submit their report at a later time. While we will, of course, accept their report when it is ready, this committee is facing a May 15 deadline for reporting this legis- lation. We must move ahead with the markup of this bill. While we understand that 0MB officials are opposed to this bill, we do have a copy of a letter from Assistant Secretary Smith to 0MB recom- mending administration support for the bill. This is not a leaked document. It has already been made public by the Bureau. There- fore, without objection, the letter will be made part of the record at the conclusion of my remarks. (161) PAGENO="0170" 162 For the information of the members, I have listed this bill for markup on Wednesday, May 12, in order to meet the deadline of the Congressional Budget Act. For the remainder of this week and next week, the staff will be~ reviewing the legislation and the testimony so that we can have the many recommended amendments before us for consideration. [The letter from Assistant Secretary Smith referred to above by Chairman Udall follows:] Our first witness today is Mr. Leonard Garrow, president, United South and Eastern Tribes. Will you take the witness chair and we will be glad to hear from you. [Prepared statement of Leonard Garrow may be found in appen- dix IV.] STATEMENT OF LEONARD GARROW, PRESIDENT, UNITED SOUTH AND EASTERN TRIBES; ACCOMPANIED BY H. PERRY POLCHIES, CHAIRMAN, HOLTON BAND OF MALISEETS; AND JOE FRANCIS, LIEUTENANT GOVERNOR, PENOBSCOT NATION Mr. GARROW. Good morning, sir. I have with me two of my associates who are members of the United South and Eastern Tribes, Mr. H. Perry Polchies, who is chairman of the Holton Band of Maliseets' and Mr. Joe Francis, who is lieutenant governor of the Penobscot Nation. My name is Mr. Leonard Garrow. I am the chairman and presi- dent of the United South and Eastern Tribes. I am pleased to tes- tify on the Indian Housing Act of 1982 on behalf of the 12 federally recognized member tribes. First, the United South and Eastern Tribes would like to express our appreciation to you and other members of this committee for your support and assistance over the years in behalf of HUD Indian housing appropriations. As you are aware, in many places the HUD Indian housing program has produced very acceptable housing. Nevertheless, there is still a great need. Unfortunately, it appears that the HUD Indian housing program is coming to an end. It is our understanding the administration plans to stop the present program through Department of Housing and Urban De- velopment. This is of paramount concern to us at this time and we wish to make it very clear that the housing program for Indians must continue. With this understanding in mind, we wish to com- pliment you and the other members of this committee for introduc- ing H.R. 5988 which finally sets out a housing program tailored to the situation in which Indian people live. H.R. 5988 proposes sever- al innovative and cost conscious concepts while at the same time promotes the idea of self determination by giving the tribal govern- ments the flexibility to establish tribal housing agencies. Placing the authority as well as the responsibility for housing programs with the tribal governments instead of imposing an outside struc- ture upon us is commendable. As an overall observation, we at USET also appreciate the sec- tions of the bill that allow us discretion and flexibility to build in a PAGENO="0171" 163 manner we wish, with the materials we wish, while placing a pre- mium on constructing as many good houses as possible. We also point out that the administration of the program would be simplified. It would be a program developed for Indian reserva- tions rather than an urban program applied to Indian reservations. It would also reduce the number of Federal agencies involved in this program from three to two, but more importantly, the two that work with tribal governments. The three titles of the bill address the needs of three different income levels of Indian families: Low income, those which can afford a minimum monthly payment and those which could afford to obtain financing except for problems associated with the legal status of trust land. Furthermore, the in- clusion of rehabilitation in all titles is commendable. Before addressing several sections of the bill in a more detailed fashion, I would be remiss if, at this point, I did not mention our outright opposition to the sections of the bill that provide for at- tachment of our trust funds. We understand that along with au- thority goes responsibility, but we feel this responsibility should be of a contractual nature without the sanctions of attaching our tribal trust funds. With this in mind, USET recommends the fol- lowing amendments to the bill: Page 3, line 19, "standard housing." While we do not object to the definition of "standard housing" in the bill, we recommend it be made very clear that the standards in the bill are only mini- mums. Page 6, section 101(c). We understand this bill has to address sit- uations across the country but we would like this section to make it clear that the preferred method of handling this title is by agree- ment with tribal governments or their housing agencies. On page 8, section 103. This section is somewhat unclear with regard to the protection from the loss of trust land and we recom- mend line 4 to be changed to eliminate the reference to land. On page 9, section 203, requires the submission of preliminary drawings and specifications with the initial application. There should be provisions for funding to prepare these drawings and specifications. Page 11, section 205. This section harbors the most potential damage for tribal governments and empowers the Secretary to attach tribal trust funds. The provisions of this section are inequi- table in that tribes with trust funds are put at risk while tribes without trust funds face no collective loss for failing to meet the requirements of the project agreement. This makes the whole con- cept of uniform sanctions meaningless. All tribes should be put at the same risk or none at all. Page 12, section 206, line 19. I would like to see that changed from 2 per centum to at least 3 per centum, with a maximum at $50,000. Page 18, section 212(b). Eliminate this section. Separating respon- sibility for construction and inspection is not a good idea and may slow project construction and cause bickering and inefficiency. Page 22, section 301, line 8. Insert on line after "families" "or tribes". Page 29, section 401. We feel strongly that section 401 should be rewritten in order that the Bureau will have moneys to handle this PAGENO="0172" 164 important and large effort. We also feel it important that section 401(b) be rewritten in order that it be public knowledge so the tribes can know what it costs to run this program. The CHAIRMAN. Thank you very much. I appreciate, particularly, specific suggestions and comments. It is always better for us, rather than have somebody say "we don't like your bill, to have them say, We don't like parts of your bill and here are the words that we would like to change." We will study all this. I think some of your complaints and sug- gestions are valid. Some of them may come from a misunderstand- ing of what we are trying to do or a reading of the language that we didn't intend, so we will take those in the constructive spirit in which you offered them and see what we can do. Thank you very much. Our next witness is Mr. Sam Kito, who is representing the Alas- kan Federation of Natives. Not here. We have listed Mr. Roland Andrade, executive director of NCAI, as our final witness. You're Dave Dunbar. I have just been told that you are substitut- ing for Mr. Andrade. We will appreciate hearing what you have to say. [Prepared statement of David Dunbar may be found in appendix IV.] STATEMENT OF DAVE DUNBAR, ON BEHALF OF NATIONAL CONGRESS OF AMERICAN INDIANS Mr. DUNBAR. Mr. Chairman, I realize there are many comments that have been made on the bill the past days. I would like to sum- marize our concerns on the bill as briefly as possible. First of all, we recommend in section 3(5) that it be amended to include Alaskan Natives as defined by the Alaska Native Claims Settlement Act (43 U.S.C. 1601). We further recommend section 3(11) also be amended to include the definition as specified by the Alaska Native Claims Settlement Act. Under title I, Indian Housing Improvement Fund, we recom- mend that to eligible individuals and families assistance be made through the tribe rather than directly by the Secretary of the Inte- rior. We believe that this will promote greater self-determination. Under title I, section 101(c)(3), we recommend that the contract- ing be done through the tribe by tribal contracting procedures, and, further, that language be added to require application of Indian preference as specified by Public Law 93-938, section 7(b). Under title II, Indian Housing Finance Fund, we recommend that section 203(c) be amended to allow the tribe to decide for itself whether or not it should establish a tribal housing authority and whether or not it wants to. Section 205, we would recommend that this section be entirely eliminated because of the many concerns that have been expressed by the witnesses as well as the massive amount of communication we have received from the field. PAGENO="0173" 165 The mechanism which attaches part of the trust fund moneys would be very hard to justify concerning the trust responsibilities of the Government. I believe that some sort of other equitable consideration can be given, such as the chattel mortgage concept, in which the Secretary may have some sort of security interest in cooperating with the tribe and some sort of waiver of sovereignty which will allow a ter- mination of interest in payment of the moneys. We believe that under the same section, that should it continue, the notification be extended to allow a tribe to perpetuate remedial cures for the attachment of the trust moneys. Section 211(c). We would recommend it be amended by deleting language authorizing attachment of tribal trust funds under that section also. Section 215 should also be amended to require the application of Indian preference as stipulated in Public Law 93-638 section 7(b). Under title II, Indian Housing Loan Guaranty Fund, we recom- mend section 309(a)(1) be amended to include tribal courts as "court of competent jurisdiction" in escalating efforts in this coun- try to date to place tribal courts in a position of parity with the State courts, and this is of monumental importance to many of our tribal constituents. Title IV for Miscellaneous Provisions. We recommend that sec- tion 401(c) be amended to define the percentage of moneys appro- priated for administration of the programs or add a new section authorizing administration costs. We have several other recommendations that include allowing tribes to contract all or any of the programs under 638 contracting provisions. This will reduce the Bureau's costs and would provide gainful employment and self determination. We also recommend, under title IV, authorizing funding for re- pairs or new construction performed directly by the Bureau be au- thorized and, in addition, as an alternative, that this activity be al- lowed to further contract under tribal authority under section 638 contracting provisions. Section 104 of that title does not contain any guarantees that houses built or acquired will remain under the control and jurisdic- tion of the tribe. We believe that provisions must be accorded to available tribal revenues and market demand in terms of ability of the tribes to pay, under construction of these units. We also believe that section 209(c) states that a house financed under this title could be reacquired by the tribe at "fair market value". We would suggest that prevailing market conditions, the lo- cation of the housing, and the utilization potential should be con- sidered in appraising these units. Essentially, that is an overview of the concerns of the council, Mr. Chairman, and I would be happy to answer any questions that I can on behalf of NCAI as far as working with the staff in the future in trying to promote alternative suggestions that we have. The CHAIRMAN. I appreciate that very much. We have had a lot of advice and suggestions in the hearings that have been held and I appreciate those specific suggestions. As I said, we're going to mark this up on May 12, and any persons in the room or your organiza- tion or others who have testified, we welcome further constructive PAGENO="0174" 166 comments, within the next few days, and then we're going to have to close the doors and see what kind of bill we can put together and come up with. That's not only to you, but others in the room. If you have further comments and suggestions, we would appreci- ate them very soon. We have just set an all-time record of Indian housing hearings. I appreciate you all coming. Let's close the hearing. [Whereupon, at 10:15 a.m., the hearing was closed.] PAGENO="0175" APPENDIX I THURSDAY, APRIL 1, 1982 ADDITIONAL MATERIAL SUBMITTED FOR THE HEARING RECORD TESTIMONY OF THE NATIONAL TRIBAL CHAIRMEN'S ASSOCIATION ON "THE INDIAN HOUSING ACT OF 1982" Hr. Chairman and Members of this Committee: It is indeed a pleasure to be able to provide you with the views of the elected leadership of the federally recognized tribes on this im- portant proposed legislation which if enacted would provide the tribes with the means to work towards meeting the needs of adequate housing. Before continuing I would like to express our deep appreciation to the entire Committee staff for their efforts in developing this proposed bill. Mr. Chairman, it has only been slightly more than 10 years since the Indian tribes have been abie to take advantage of the Public Assist-. ance Housing program. It was during this same period that other types of community development programs were made available to tribes. The resultant surge in reservation development, encouraged a migration or return of `relocated" urban tribal members who longed to return home. Consequently the need for adequate housing stayed at a high level and the IIUD operated Indian Housing Program has not been able to meet the still serious deficiency of reservation housing stock. In the Fall of 1981 it was made known that the Administratjon',arjd HUD would seek to phase-out the Indian Housing Program and proposing in- stead to use a form of Block Grant and a Voucher system for housing programs on reservations. While there has been some p~~pns who pur- pted to speak for the tribes and endorsed the use of Block Grants and Vouchers, I wish to make it crystal clear that the Tribal Chair- men's Association do not now and have' never endorsed that coç~pj~. The Indian Housing Act of 1982 would provide a much more desirable and fair alternative. Contrary to Administration hyperbole BlOck Grants would not allow a greater flexibility in meeting local housing needs. It would instead allow for possible fragmentation of a given program, especially during this crucial period when a temptation might exist to side track housing funds for a perceived greater priority. It must first be recpgnized that there is no reasonable guarantee that greater local control of housing production would occur by using a Block Grant. or tbat other housing-related problems would improve. (167) PAGENO="0176" 168 Housing Testimony Page Two There are other reasons why Block Grants for housing is not feasible. One is that for any housing program to meet the needs there must be a commitment for at least multi-year funding or budget authority. Even then the problems presented by establishing a new untested program in a community of underprivileged people are many, especially when the Administration proposing that program has already exhibited its' wil- lingness to ignore the real needs. Therefore it is our hope that this Committee will encourage the Congress to provide a continuity of hous- ing consttuttiOfl. In January of 1982 the Board of Directors of NTCA declare4, "The Nat- iopal Tribal Chairmen's Association has patiently and 4jiigently, and in good faith worked for a recognition by the AdrniwLstr~l3°n of the need for a continuation of the BUD Indian Housing Program. In spite of meet- ings and conferences the Administration has forged ahead with their own plans to eliminate the Indian Housing Program. Additionally the NTCA called upon the Administration to convene a meet- ing to discuss a mutually agreeable plan for Indian housing program im- plementation. To this date we have received no reply to our request. We must now assume that our pleas and requests have fallen on deaf ears ag- gravated by a lack of concern. Therefore it is encouraging to us to be presented this opportunity to discuss with you today this proposed Act. It is to us a shining ray of hope in an otherwise dark future. The recc ion ~j~!ioJi~L Tribal C1airmen'~A~sOc1ati90 that this ~ However, while recommending the bill we do have several conditions that we wish to address. Our first concern is that the construction of Indian houses should not be stopped. If the legislation is enacted it is likely that there would still be a considerable time lapse before the program could actually be operable within the BIA, and it is obvious that the BIA now has more operational problems than it can presently manage. While we will pursue efforts to convince the Administration to continue the HUB Indian Program for at least one more year as a stop.~gap measure, we feel that the Act should contain language that would: 1. Mandate that the Secretary meet a timetable for program start-up. 2. Provide for an appropriation of advance funds specifically for skeleton staffing to develop regulations, develop op- - erational and administrative plans, and to ensure as much as possible that problems which were inherent in the HUB operations would not occur in this program. If proper care and planning occurs then the program could be fully oper- ational according to a timetable. We feel that such language would be helpful in convincing the Adminis- tration of the feasibility of a one-year extension of the UTJD program. PAGENO="0177" 169 Housing Testimony Page Three To continue, we ask that Section 3.(5) be amended to read: - (a) "Thdian" means a person who isi ii~chib~Fofiis India's tribe; (b) "Indian tribe" mealis any Indian tribe, hand, nation, or other organized group or community, including any Alaska Native village or'regional or village corporation as defined in or eetsblisl:ed pursuant to the Alaska Native (lainis Suttlemeut Act (85 Stat. 688) which is recognized as eligible for th~ special pro. grams and services provided by the United States to Indian. because of their status as Indians' (c) "Tribal organization" means t~he recognized governing body of any Indian tribe; any legally established organization of Indiana Which is controlled, sanctioned, or chartered by such governing body or which is democratically elected by the adult members of the Indian community to be served by such organiza- tion and which includes the maximum participation of Indians in all phases of its activities: ProvWcd, That in any case where a contract is let or grant made toan organization to perform services beneflttin~ more than one Indian tribe, the approval of each such Indian tribe shall be a prerequieitc to the letting or making of such contract or grint: This is the same language as is contained in Public Law 93-638 and the definition of "Indian", et cetera, would not differ from the est- ablished and Congressionally eccepted meaning. It is our go~i.1. that all Indian-oriented legislation should be consistent in this area. Section 3.(9)(ii)(iif)(fv) should be amended to reflect the use of the U.S. Uniform Code for Heating, Plumbing and Sewers, and Electrical--- rather than an ambiguous reference to local codes which could conceiv- ably lead to local jurisdictional problems especially in those states subject to Public Law 83-280. The U.S. Uniform Codes now offer mini- mum standards which are accepted in many rural areas. Section 3.(ll) would be deleted as it is covered in Section 3.(5) am- endment above. Title I: Indian Housing Improvement ~~c~aram. It would seem consistent with the intent of the Act to have housing as- sistance under this Title, at Section 101., to flow through the Tribal governing body or if designated, the Tribal Housing Agency. Section 101 (c)(3) provides for the Secretary to bypass the local authorities to contract with private construction firms. We recommend that this authority remain with the Tribal government. Section 103.(b) providesfor a lien to be:placed:on fee land, making it subject to forclosure and sale. This seems to be highly unnecessary for repairs to a dwelling and could be detrimental to Indians, especially in the state of Oklahoma where there are no reservations. We recommend that the term "major repairs" be defined as costing over $10,000. In any case of forclosure whether on fee land or on tribal land, the tribe should have the right of first refusal.(Sect. 104) 18-934 O-83----12 PAGENO="0178" 170 Housing Testimony Page Four Title II: Indian Housing Finance Fund. In Section 203.(c), it should be made clear that it is the intent of the Act (in our view) that the Tribal Housing Agency should be direct- ly responsible and answerable to the Tribal government in all matters. In the HUD program a major problem developed because of the autonomy practiced by many Indian Housing Authorities. When troubles erupted and scapegoats were identified the bottom-line was that the Tribal gov- ernments were ultimately responsible. Therefore, this4ct should beex- licit in where the authority and responsibility lies and that is with the Tribal government. During 1981, the greatest improvement of problem Indian Housing Author- ities were those where the local Tribal government reassumed, or asserted, their operational control. Section 205, we believe needs more in-depth study and research. The idea of ~mortgaging" the tribes trust funds is a new idea whtch the tribes will probably not accept readily, even to build houses. On the face of it we would reject the provision of allowing the Secretary to attach trust funds, especially because the Act is not yet explicit as to what remedies can be employed before the attachment would take place. Generally, even state laws allow procedures which give the dehtor in some cases up to a year to rt~leem. Werequ~hat we beal1~~4~ submit a more detailed statement and recommendatiO~ on this crucial issue at a later date. Section 215. In accordance with local self-determination and the stated "Federalism'1 philosophy of greater local control, it seems only proper that the Tribal government should have the authority to approve an Af- firmative Action plan,NOT the Secretary. We recommend that the words 9±e Secretary"be stricken and replaced with 1he Tribal government." - Title III: Indian Housing Loan Gtnmaty Fund. While we are in favor of establishing a program under this Title, we suggest that it might not be adequately funded at the proposed levels for FY 1983 through FY 1987. The $2,500,000 dollars for FY 83 would provide approximately 50 houses nationwide (at an estimated 50,000 dollars each), and approximately 75 houses in FY 85-86-87. AdmInis- trative overhead would reduce this accordingly. PAGENO="0179" 171 Housing Testimony Page Five For the obvious reason of Atlministratjve C~t versus Resi~lts it would seem that a larger appropriation request would be more cost-effective. I realize that a budget conscious Congress might frown on this but it does not seem to niake good sense to operate a program which only builds 50 houses nationwide each year. Therefore we recommend that the approp- riation request be at least doubled for each of the Funding Years and until the Fund ba1~nice of $20,000,000 dollars can be ~naintained. Mr. Chairman, this concludes my testimony on this subjec~t for today but before I le~ve I do want to leave with you and yo4r Committee the best regards and appreciation from ou~ President, C~iiefPhi1lip Ma~t1n, and from our Board of Directors who are all duly elected Tribal Chair- men, for your past and present concern and consideratjQn for Indian affairs. Thank you, and good day. PAGENO="0180" Project 015cc Project 015cc Project 015cc Project0f5co Project OOoo Projcct0ftcc Project OfOco Project 011cc Projcct0tficc P.O. Boo 348 P.O Boo 586 P.O. Boo 427 P 0. too 000 P 0 Boo 97 P.O 764 P 0. Boo 137 P 0.80*557 P.O. Boo 187 TcboCOy, 6206045 Koyortr, AZ86033 Chrrfo, AZ06503 Sh~prock, NM07420 Tohotchj, NM 07325 Frotloed, NM07415 Necojo, NM 07328 Ft Ortoeco, AZ06504 Crooocpoort, NM87313 p 833 0 >< 01 p = 0 H H 01 01 o (1113 (10 01 o ~ 80 t-o 01 0 0 01(13 B) 0 200 e-3 01(1301 c4 (11 (0 0 -4 20 20 0 00 01 0 Ccl Z ~ 03 001 0 C/) 000 (11 PP 0 738-8 o-3 912 -~ 0 20 20 (91 01 o 20 Ccl C) 01 3 03 H (01 0 - 017301 2x° 01 :8° 0010101 ~< C/I H c-i Ccl 01 o 01 01 0 09 t H (9 , 7c(j~ 00 00 200 71 C/I -o 20° 0 0 CD 0) (9* (5) 03 H PAGENO="0181" 173 Mr. Chairman and members of the Committee on Interior and Insular Affairs, I sincerely appreciate the opportunity to appear today before this committee. My name is Roy J. Cleveland. I am the Executive Director of the Navajo Housing Authority. I have with me members of the Board of Commissioners and our Legal Counsel, John H. Schuelke. We are pleased to he invited to present our position with respect to the proposed "Indian Housing Act of 1982". Our presentation will he by way of comments and recommendations to specific sections of the proposed Act. Comment No. 1. There are no provisions for public rental in the proposed Act. Recommendation. The present public rental program should he continued with adequate funding to properly address the needs or the proposed Act should be expanded to accommodate public rental. Comment No.2. The proposed Act does not address the existing HUD Public Housing programs which exist in most Indian communities. Recommendation. The HUD Indian Housing assistance pro- grams should he continued with sufficient funding to finaliza- tion or the Act should make provisions to properly handle the present HUD programs. Comment No.3. The Act fails to make reference to present laws applicable to labor standards, Davis-Bacon wage requirements, Affirmative Action programs, Indian Preference, archaeological clearances, environmemtal statements, contract preference, and PAGENO="0182" 174 other present restrictions. Recommendation. Since the Act requires the Indian tribe to build a certain number of houses to acceptable minimum pro- perty standards for a gross dollar amount, each tribe should be given the authority to determine which of the present require- ments should apply to the particular tribe. Comment No. 4. The Act makes no provision for scattered site housing in remote areas. It requires plumbing and utility systems for each dwelling unit which eliminates scattered site housing as being too costly. Recommendation. The Act should relax the minimum property standard in certain exceptional cases to allow construction of dwelling units in remote areas. This could be accomplished by utilizing other systems of waste disposal and heating. Comment No. 5. The minimum family size per dwelling provided in the Act (Section 3 (9) (v)) appears to he directly related to the dollars allowed for each dwelling. Recommendation. If the dollars allowed per unit are related to the family size per dwelling, then the minimum dwelling size should he increased by 33 1/3 to 50~. Comment No. 6. Title I, Indian Housing Improvement Pro- gram, of the proposed Act expands the present BIA Housing Improvement Program (HIP) and proposes funding not to exceed $30,000,000 in each fiscal year beginning in fiscal year 1983. Recommendation. The present BIA budget for the HIP program is $23 Million. Thirty Million Dollars ($30,000,000) per year is totally inadequate for thisprogran. PAGENO="0183" 175 The majority of the people proposed to he served under this program do not have the financial ability to pay. Any charge would create a hardship not an assistance. Therefore, any requirement of payments by individuals should he eliminated. Comment No. 7. Title I, Indian Housing Improvement Pro- gram, Section 104, allows the sale of houses under the proposed Act. Recommendation. The proposed Act should restrict the sale to persons or entities first approved by the Indian tribe to preserve the trust status and control of the lands. Comment No. 8. Title II: Indian Housing Finance Fund, is an apparent attempt to replace the present HUD Mutual Help, rehabilitation and modernization programs. Section 203 of the proposed Act requires submittal of preliminary drawings and specifications with program applica- tions hut fails to provide funding for the preparation of such before approval of the application. Recommendation. Preliminary Funding should he available to the Indian tribe to prepare the necessary submittals to present with the applications. Comment No. 9. Section 205 (a) and (h) of the proposed Act empowers the Secretary of the Interior to attach Individual or tribal trust funds held by the United States in the event an individual or tribe fails to meet its financial obligations. Recommendation. Include suitable provisions to protect due process requirements and lessen the harsh sanctions imposed by the proposed Act. PAGENO="0184" 176 Comment No.10. Section 205 (c) prevents the Secretary from rejecting an application because an individual or tribe has no trust funds. Recommendation. This section is potently unfair to individuals or tribes with trust funds. It should he changed to treat everyone in the sane manner. No trust funds should he subject to attachment. Comment No. 11. The entire sanctions provisions of Title II are very severe. Recommendation. Lessen the severity of the sanctions proposed in the Act. Comment No. 12. Section 212 (h) requires the Indian Health Service to monitor construction inspection. Recommendation. The tribe should he responsible for monitoring inspection of construction. This would eliminate the cumbersome interdepartmental agreements and place the responsibility with one agency. Comment No.13. Section 213 (b) requires a contractor's performance bond. Recommendation. Require a contractor to provide a 100 percent performance and payment bond from a bonding company on the approved Department of the Treasury list of such companies. Also require all other insurance and bonding now required in present Indian housing construction programs. Comment No. 14. Section 220 provides for funding limita- tions of $100 Million in fiscal year 1983 to eventually reach a level of $250 Million. PAGENO="0185" 177 Recommendation. The funding request is grossly inadequate. The HUD funding request for fiscal year 1982 is $703 Million. Six Hundred Million Dollars ($600,000,000) is a much more reason- able and necessary amount. Comment No.15. Title III: Indian Housing Loan Guaranty Fund. Under this title of the proposed Act, there would he established a loan guarantee program under which the Secretary of the Interior would guarantee loans to private sources with procedures for foreclosures. Recommendation. These programs should remain with HUD and Agriculture (FHm). BIA does not have the technical capacity in housing insurance. This would establish a new bureaucracy for functions already provided. As alternatives, establish an Indian Housing direct loan program in HUD, expand the Farmer's Home program or devise a program which does not involve the land in the guarantee. Comment No.16. Section 309 provides for foreclosure in a court of competent jurisdiction in the event of default. Recommendation. Require the foreclosure in the tribal court or if there is no tribal court, then in a court of compe- tent jurisdiction. Comment No. 17. Title III speaks of foreclosure which implies taking the incidents of ownership through legal proceed- ings from one and transferring to another. Recommendation. Land is the basis of the Indian culture. We suggest the land should not he involved in such proceedings. Perhaps land could he eliminated from the guarantee program and just the loan guarantee he adequate security. PAGENO="0186" 178 Most tribes now have forcible entry and detainer laws which could be utilized. Comment No. 18. Section 311 establishes Guaranty Fund maximums and limits the aggregate outstanding principal amount guaranteed by the Secretary. Recommendation. Create a realistic funding level of at least $50 Million. Remove the restriction on the aggregate principal amount the Secretary may guarantee. Comment No. 19. Title IV: Miscellaneous Provisions, Section 403 requires the Indian Health Service (IHS) to he respon- sible for the provision of water and sanitation facilities. Recommendation. One agency should have the responsibility for the entire program. To involve IHS will again require a cumbersome inter-agency agreement which is objectionable. Comment No. 20. Section 404 requires all-weather access roads through existing programs. Recommendation. The funding for such roads should he ear- marked for access roads to housing projects only. In conclusion, Mr. Chairman and committee members, we have operated a public housing program since 1963. We believe this program could be made less costly and more efficient with proper modifications. The Navajo people comprise almost one fifth of the entire Indian population. We are very concerned about the continuation of our housing program. Approximately one half of the entire Indian population reside in the States of California, Nevada, Arizona, and New Mexico. We respect- fully request that further hearing in respect to Indian Housing programs he conducted at either Albuquerque, Phoenix or Las Vegas and that delegated tribal representatives he allowed to present testimony rather than other national Indian organiza- tions who do not represent the rural grassroots tribal members. Thank you. Respectfully submitted, ~ R y . `Cleveland Executive Director Navajo Housing Authority PAGENO="0187" 179 PUEBLO OF LAGUNA P.O. BOX 194 OHi~ ~f: LAGUNA. NEW MEXICO 87028 Th, ~ (505) 2433718 Tb, S~,.t,,,. (505) 2433717 Tb, ~ (30~) 2433718 STATEMENT The PUEBLO OF LAGUNA and the PUEBLO OF LAGUNA HOUSING AUTHOR- ITY would like to make a statement regarding the proposed Indian Housing Act of 1982. We have been informed that this Act is to take the place of HUD programs which pres- ently furnish housing for needy Indian people. If this Act is to serve as a pretext for the Federal Government to abandon subsidized Indian housing on a large scale, then this Act is both inadequate and unfair to the Indian people and to the Tribes. If, on the other hand, it is to supplement existing programs in meeting the very considerable Indian housing needs, then it contains some new ideas which are certainly worth considering and which, with changes, could serve to meet some Indian housing needs. Title I is similar to the familiar HIP program, with the added provision for some new houses. The funding referred to is grossly inadequate as anything more than a minor supplementary program. The provision for repayment is entirely inappropriate. Title III, the loan guaranty portion of the Act, may meet the needs of affluent Indian families living on reservations. The monthly payments which would result, how- ever, would be so high as to be out of reach of almost all of the reservation Indian popu- lation. There should be some provision in this Title to subsidize part of the extremely high cost of Indian housing on reservations, taking into account the unique and frequently severe circumstances which exist even for the more affluent Indian persons living on Indian reservations. Before specifically addressing Title II, which apparently would be applicable to the bulk of reservation Indian people, it should be noted that any legislative action which would remove Native Americans from the National Housing Program is unacceptable to LAGUNA. The Housing Act of 1937 applied to all Americans from the outset, except for American Indians. The first HUD houses were constructed on our reservation in the mid- 1960's, some twenty-five years after public housing was made available to all other Americans. The need for housing for American Indians is unquestioned. 12% of the general population of Americans have inadequate housing; 60% of American Indians have inadequate housing. American Indians should not receive less than their proportionate share of housing from any national housing effort. HUD housing has been successful in that it has delivered many houses to needy Indian people. It has been unsuccessful in that the delivery system is slow, burdened with red tape, overregulated, and results in a needlessly expensive structure. This has resulted in harsh criticism of Indian programs, and the critics in Congress have ammunition to attack the entire concept of Indian housing. The system needs to be changed, but the answer is certainly not to deny Indian people participation in a national housing program. Whatever its intended scope, Title II of this Act has some serious flaws. Few, if any, tribes would give up their sovereignty and subject the trust funds held by the Government to unilateral seizure. That the Government holds tribal funds in trust in the PAGENO="0188" 180 first place is not of the tribe's choosing, but is the law of the same Government which now proposes to seize them. The pitifully inadequate trust funds which now exist for most tribes illustrate the poverty of most Indian tribes. Title II stands as evidence that we have learned little from our years of involvement with the HUD programs. Its lan- guage is inadequate to deter the growth of overregulation, red tape, and layers of bu- reaucracy. The involvement of other Government agencies which has proven so frus- trating is once again provided for by Title II. The computation of monthly payments for participants is unfair and is too high. On the other hand, the total dollars provided is absurdly low. The flat contract period set out does not give a participant the sense of "paying off" an asset, nor of establishing an equity. The overriding danger in this pro- posed program is that Congress is unaccustomed to appropriating hundreds of million of dollars to Interior for housing, and it is likely that such funding will be lost in the shuffle. Congress would be more likely to pay attention, in all good faith, to HUD pro- grams or other similar programs than to pay proper attention to an isolated Indian hous- ing program. As stated before, if the Indian Housing Act of 1982 is to supplement rather than supplant the HUD-type programs, then it should be seriously considered, rectified, and made into law. If, instead, it is to serve as a rationale for doing away with current meaningful Indian housing programs, then it should not be viewed favorably. PAGENO="0189" 181 NATIONAL AMERICAN INDIAN HOUSING COUNCIL 1001 N. MOUNTAIN ST. * WATERS BLDG. . SUITE 2-J . SIERRA PROFESSIONAL COMPLEX CARSON CITY, NEVADA 89701 TELEPHONE (702) 882-1766 TESTIMONY SUBMITTED BYf RONALD FROMAN NATIONAL AMERICAN INDIAN HOUSING COUNCIL April 1, 1982 HOUSE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS PAGENO="0190" 182 Mr. Chairman, members of the Committee, we are pleased to testify on the Indian Housing Act of 1982. First, the National American Indian Housing Council would like to express our deep appreciation to you and the other members of this committee for your support over the years in our behalf. We are especially thankful for your assistance this last year in dealIng with the 1982 Indian housing appropriations. Absent your efforts, it is our firm belief the HTJD Indian Housing program would have suffered an early death and who knows how many Indian families would have suffered as a consequence. We feel your concern further manifests itself in the Indian Housing Act of 1982. The Act is a daring, innovative, and cost- conscious concept, while at the same time, long overdue., and you are to be commended. -` For the last year, we have seen a critical examination of the HTJD Indian Housing Program with the professed goal of making the program more cost effective, more simple and improving the program's. integrity. As so often is the case, it is easier to criticize, but much more difficult to do something about it. To accomplish these goals, apparently HIJD is proposing a program based primarIly on a Section 8 voucher type of system, under the handle of "Certificates". We consider this totally unrealistic since such a program depends upon the `availability of existing rental units which we all know are simply not available in Indian areas. In additions the certifi- cate program, in our opinion, would be more complex and more costly than the pres~ent HUD program. The Indian Housing Act of 1982 shows that the Committee has maintained a history of the Indian housing effort. To paraphrase a PAGENO="0191" 183 famous quote, `Congressional Committees who don't study their history are doomed to repeat it". Well, it's quite evident there is no danger of that occuring with this Act. For the first time, we have a pro- posed Indian housing program designed for the special needs of Indians and not an aberration of some existing urban program. The need for such a program has been well documented by past testimony. We commend the Committee for taking into account the past testimony and imcorpo~. rating such into the Act. We believe this Act accomplishes those goals mentioned above. This Act consolidates the program into two agencies requiring the same authorizing and appropriations committees. No longer will we have to deal with the much criticized "Tn-Agency Agreement", or the myriad of Congressional committees. Also, the Congress will not be put into an embarrassing posture of one Agency requesting funds, the - other Agency requesting no funds, with the Indians and bureaucrats trying to make sense out of it all. The present HUD Indian Housing Program requires 16 separate committees. This alone will make this Act much sImpler to administer. The revolving loan fund established by Title Two of the Act will result in diminishing financial involvement of the Federal Government and is in tune and makes more sense in these times of diminished federal resources. It also answers one of our major concerns of a long term committment of the Trustee. Why shouldn't we make the payments made by the Indians work for the program as well as the taxpayers? Section 206 of the Act may cause many tribes to have reserva- tions about risking their trust funds in event of non-payment. Without question, this section will greatly enhance the programs' PAGENO="0192" 184 integrity. Of greater importance to us, no longer will one tribe operating its program effectively, suffer the consequence of another tribes' transgressions. Put simply, only the trIbal government itself has the authority to carry out its responsibilities, and where they do not, then only that tribe alone, should suffer the consequences and be held accountable to its tribal members. Ultimately, the long term economic development impact of the Act may be its most meaningful feature. Low-income housing alone, by definition, limits its impact upon economic development activities. Housing opportunity for a broad range of incomes and economic deve- lopment are synonomous. Absent one or the other, neither can go forward with any assurance of success. Today, economic development and the resulting jobs are woefully lacking in Indian areas. This Act, If passed, will finally put in place the basic ingredient so vital to this activity and heretofore absent. The inclusion of rehabilitation as an eligible item under all titles of this Act will lower the unit costs and enable the Tribes to house more people than thought possible wIth the sane amount of money under the HUD Indian Housing Program. No longer will a $10,000 to $20,000 problem result in us razing a house and building a $50,000 house in its place. All the forces, such as maximum payment, lower payments on rehabilitated houses, and simplicity of program design, work towards a more judicious use of Federal funds. This Act does not give the Indians an open checkbook. Section 405 requires the Department of Interior to report to the Congress biannually a housing inventory. This has never been required. The inventory will greatly assist the Congress in determining need and the subsequent appropriation~ necessary to meet that need. Section 405, will also assure as far as is possible, a fair allocation of housing resources to the Tribe. In conclusion, we stand ready to assist the Committee in this endeavor. If ultimately we fail and no housing program remains, the lifestyle of the reservation will remain bleak and nay become intolerable. We hope we are not reverting to that forgotten era of Federal IndIan Policy, many of us refer to as "Benign Neglect". PAGENO="0193" 185 Statement by Gene Thompson Executive Director of the Housing Authority of the Cherokee Nation of Oklahoma Before the Housing Committee on Indian and Insular Affairs April 1, 1982 Mr. Chairman and Members of the Committee, I am pleased to be given the opportunity to testify on behalf of the Cherokee Nation of Oklahoma and the housing Authority of the Cherokee Nation of Oklahoma as to the Indian Housing Act of 1982. The Cherokee Nation is appalled to have learned that the Administration has not requested any Indian Housing units through the Department of hlousinq and Urban Development for FY 1983 and is seeking to rescind the FY 1982 funds for Indian Dousing that were appropriated by Congress. We would like to bring to the Committee's attention the strong need for an Indian Housing Program in Eastern Oklahoma. The Cherokee Nation covers fourteen counties in Northeastern Oklahoma. As of January 1982, there were 42,995 Cherokees residing in Northeastern Oklahoma. According to a 1978 study by the Cherokee Nation and the Bureau of Indian Affairs, there are in excess of 10,000 substandard units of housing inhabited by Cherokee families. This includes an overwhelming flumber of units without indoor sanitation facilities and indoor running water. Furthermore, unemployment of adu] t Indian males in Non hteastern Oki ahoma runs at approximately 20% (Oklahoma Employment Service). 18-934 O-83---13 PAGENO="0194" 186 presently, there are over 2500 unsolicited applications pending with the Cherokee Housing Authority. This does not include applications for rehabilitation of substandard units. It should be interesling to note of the 8400 Indians now residing in Cherokee Housing Authority units, 44.2% are under the age of 18 and 20.2% are over the age of 55. FurthermOre, over 50% of the families have an annual gross income under $5,000.00. In addition to its Mutual Help program the Housing Authority also serves as the Public Housing Agency for over 14 small rural Oklahoma towns. After an examination of the proposed Indian Housing Act, one advantage is readily apparent. Historically, the Secretary of the Interior has served as the principal Trustee for the Native American. Generally, the Secretary has the respons- * ihility of executing the policies of the government towards Native Americans. Other programs designed to improve the well being of the Native American generally operate through the Departm~flt of the Interior. The Department of Housing and Urban Development does not have that historical relationship with the tribes. Therefore, this Indian oriented program will be placed in a department that already has the goal of serving the Indian people. One of the major failures of the HUD Indian flouning [)1O(JEaIfl has been the inability t:o meet the umi ique needs 01 t1i~ PAGENO="0195" 187 various Native American communities. This is apparent in several ways. First BUD has forced a housing structure on the Native American that is over-built. This Act sets forth certain minimum standards that must be met. Whereas, BUD over-regulated the type of house that must be built. Second, the BUD guidelines for admission are so restrictive that many Native Americans who are capable of being homeowners are eliminated from the Mutual Help program. As everyone is aware, homeownership can be very expensive including the cost of maintenance and utilities. Under the HUD program only the *very, very poor are qualified for admission. Unfortunately, these families can not afford to undertake the routine maintenance nor pay the prohibitive cost of utilities. Finally, the present location of an Indian Housing program in BUD actually increases administrative problems due to the Tn-Agency Agreement. A Tribal Housing Authority must maintain a working relationship with three government departments, HUD, Indian Health Service and the Bureau of Indian Affairs. By transferring this program to Interior the number of government departments is reduced to two. This proposed Act has several strong features that the BUD program doesn't possess. This program allows for the servicing of a more diverse economic group that the present BUD program does not serve. Under this Act both the very low income, the wage earner and the moderate income may be served. Second, it PAGENO="0196" 188 unifies all Indian Housing programs in one department. The Housing Improvement Program, the Indian Housing Finance Fund and the Indian Housing Loan Guarantee Fund will be unified in one department. Presently, an Indian Housing Authority under the HUD program does not participate in substantial rehabilitation, such as that allowed by the Housing Improvement Program, nor are they allowed to participate in Loan Guarantee Programs for the moderate income Native American who resides in Indian Country, such as allowed by the Indian Loan Guarantee * Program. A further feature of this bill is that it provides appropriate sanctions for the failure of a Tribal Housing Agency to properly administer their program. One of the most glaring fundamental weakness of the HUD Mutual Help program is the alarmi.ng size of delinquent Account Receivables. The sanctions provided by this Act transfer the ultimate responsibility for the collection of accounts to the tribal government. Furthermore, this bill allows for quarterly monitoring of the residual receipts and an annual audit. This will allow the Secretary to give or stop assistance to a Tribal Housing Agency when a problem begins and not after it has developed over several years. Furthermore, this bill allows an incentive for a Tribal Housing Agency to develop a maximum number of housing units for. PAGENO="0197" 189 the yearly allocation. For example, under the HUD program an allocation is given based on a number of units. Only this number of units may be built and there is no incentive to reduce the Total Development Cost, i.e. achieve maximum usage of their dollar. Under this act only a minimum number of units must be built out of the yearly allocation. If a Tribal Housing Agency wishes to increase its number of units from its yearly allocation, and serve more Native American families, they may do so as they meet the minimum standards of housing construction as established by the Act and the Secretary. There are several recommendations that we believe should be embodiedin the Act. The Act makes no specific reference to the ability of a tribe or Tribal Housing Agency to Force Account their yearly allocations. Some tribes possess the necessary expertise, both managerial and technical, which would allow them to construct their own units. This would allow a * maximal use of the dollar. For example, the cost of producing a unit could be reduced by 15 to 20 percent by a tribe or Tribal Housing Agency building their own. This would further allow a tribe to house more families and increase maximum usage of their dollar. Therefore, we would recommend that language be inserted to allow the Force Account method of construction. A second recommendation would be that this Act he subject t:o the I~dj.azi Self-Determination Act (93-638). An Indian PAGENO="0198" 190 tribe, if it should possess the capacity, should be allowed to contract this program from the Bureau of Indian Affairs. Another problem area is in the fact that the Department of the Interior (BIA) does not have any personnel who are experts in housing production. Without securing qualified personnel from other departments, this program could be burdened with many problems and delays. Therefore, we urge that great consideration be given to the placement of qualified housing experts in this program. A final recommendation would be that nothing in this Act would be~ construed to prohibit a Tribal Housing Agency from participating in housing programs of other government departments and agencies. In summation, we urgently ask for your consideration on this Act. This Act properly transfers the responsibility of housing to tribal government, providing tribal government the necessary flexibility to meet the needs of all of its members. PAGENO="0199" 191 HAC Housing Assistance Council Inc. * 1025 Vermont Ave., NW. * Suite 606 * Washington, D.C. 20005 * (202) 842-8600 fN *LL~L ~ - ~ ~tL *~ TESTIMONY OF HAROLD 0. WILSON, EXECUTIVE DIRECTOR HOUSING ASSISTANCE COUNCIL BEFORE THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS UNITED STATES HOUSE OF REPRESENTATIVES APRIL 1, 1982 Endorsed by: National American Indian Housing Council National Rural Housing Coalition Northern Cheyenne Housing Authority PAGENO="0200" 192 HAC. Housing Assistance Council Inc. * 1025 Vermont Ave., NW. * Suite 606 * Washington, D.C. 20005 n (202) 842~86O0 - ~--~-___1__~___ --- - -_~---J__-_._- HOUSING ASSISTANCE COUNCIL TESTIMONY BEFORE THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS U.S. HOUSE OF REPRESENTATIVES APRIL 1, 1982 Mr. Chairman, and members of the Committee, it is a pleasure to be invited to testify today on the "Indian Housing Act of 1982." You are to be commended for your timeliness, concern and excellent work on behalf of Indian communities of this nation. On March 10, 1981, the Administration proposed termi- nation of the MUD Indian housing program and zero funding for the Indian Health Service water and sanitation facilities program. For FY'83, the Administration has again proposed zero funding for the MUD and INS programs providing housing assistance to Indians. Likewise, no new development money is proposed for any MUD assisted housing program for FY'83. The lack of production funds is a move by the Administration to save Federal dollars. A proposed substitute is a modified Section 8 certificate program which allows eligible low-income PAGENO="0201" 193 households to find housing in the private market. For Indians, this type of proposal is unrealistic -- there is no private market housing on reservations. On December 7, 1981, the Congressional Record published the BUD budget request to the Office of Management and Budget. In that budget request, BUD stated, No addi-tional funds will be requested in the 1983 budget for any Indian housing program pending completion of the interagency task force review. No further funds are being requested for the water and sanitation pro- grams of the Indian Health Services. The Indian Housing construction pipeline is assumed to be completed. However, to the extent that added water and sewer facilities are needed to complete the current Indian housing pipeline, those funds will have to come from deobligations of Indian housing units. Despite its inadequacies, the HUD Indian housing program remains a vital resource in meeting Indian housing needs. BUD has developed over 40,000 housing units on Indian reservations over the past twenty years. Indian housing authorities have been established, staffs hired and trained, procedures and inter-agency working relationships developed. Tribes and Indian individuals have invested and borrowed to form construction compa- nies in reliance of the BUD program. They, and Indians employed on BUD-funded projects, will be out of work and forced to take their place in unemployment and welfare lines if the BUD program is ended. Additionally, while a new program alternative is highly PAGENO="0202" 194 desirable, start-up time is bound to be slow as shown by past experience. Thus, we believe that this important progran should be kept intact but u~dified to cut costs, streamline delivery and make it more responsive to Indian needs. However, if this proves to be impractical and unacceptable in this era of fiscal austerity, HAC supports the "Indian Housing Act of 1982' as a viable alternative to the HUD program. The proposed Act is a more comprehensive program than is being carried out now in that it provides housing assistance for three separate Indian income groups. However, we do have the following concerns: (1) This Act should not exclude Indians from being eligible for other Federally-assisted housing programs. (2) Sec. 3(11) limits the programs to Federally recognized tribes. Since the Bill is substitute for the HUD program, it will discriminate against those tribes without Federal recognition. The proposed Office of Indian Housing Programs, to be established within the Bureau of Indian Affairs, should have the authority to serve, at least, those tribes currently served under the HUD program. PAGENO="0203" 195 (3) Tribes, and Indian individuals, may be reluctant to have trust funds attached for nonpayment of residual receipts. We would hope that this would be the last sanction used. - (4) The Bill is not clear on the minimum incone necessary for eligibility under Title II. HAC believes this should be stated in the legislation. (5) HAC recommends the addition of a provision for opera- ting expenses should they become necessary. (6) HAC believes there should be a limit, or cap, set for the administrative charge which is part of the minimum payment. (7) HAC recommends under Sec. 3(9) that the language for a standard house be changed to read: `standard housing" means a dwelling in a condition which is decent, safe, sanitary, and modest in size and desi~ so that it meets the following minimums--" (Underlining demotes proposed change). (8) Under Sec. 206(a), HAC recommends that preliminary planning and administration disbursements be limited to two percent of the total Fund amount. PAGENO="0204" 196 (9) Under Sec. 213(a) HAC recommends that the language be changed to read, `Tribal and Agency officials and employees who are responsible for the receipt, dis- bursement and accounting for funds under this title shall be bonded in an amount not less than the funds obtained in the initial disbursement, the average quarterly residual receipts balance and the aver~g~ annual balance of the maintenance reserve accounts. No initial disbursement shall be made until a bond satisfactory to the Secretary is obtained.." (Underlining denotes proposed change). (10) Under Sec. 203, MAC recommends that applications in- clude prelimina~y specificatidnS but not drawings as this may be too expensive for tribal housing agencies that have not received preliminary planning funds. (11) Minimum standards sometimes become the standard for housing and we would recommend that quality homes be developed for Indians with maximum attention paid to energy efficiency and ease of maintenance. (12) MAC recommends a minimum of a five-year authorization for the Act to assure a continuing commitment for housing assistance, to Indians. Some of the features of this bill that are particularly commendable include: PAGENO="0205" 197 (1) This housing program was obviously designed for Indian tribes, it is not an adaption of an urban program to the reservation setting. It is a far less complicated program than the HUD program, and the ease of admini- stration alone will save money and speed up delivery. (2) The payback of residual receipts to the Indian Housing Finance Fund will assure a continuing program of housing assistance to Indians while the annual appropriation request to Congress can be decreased as the amounts returned to the Fund increase. (3) It provides a means for middle-income Indians, liv- ing on trust l~nd, to finance housing from the private market. (4) It consolidates the funding and administration of the program into the Federal agencies and Congressional Committees traditionally responsible for Indian Affairs. (5) It provides for substantial rehabilitation, as well as acquisition and construction, for Indian families with an ability to pay a minimum amount for housing. (6) Legislative enactment of the Housing Act of 1982" would constitute a fairly comprehensive plan, along with other housing assistance programs, to eradicate the PAGENO="0206" 198 deplorable and unacceptable Indian housing conditions which presently exist in this country. The Interagency Task Force, chaired by Mr. Kenneth Smith, Assistant Secretary of the Bureau of Indian Affairs, has yet to make its recommendations for an Indian housing program. We understand from testimony before this Committee on March 4, 1982, that the Task Force recommendations would be forthcoming any tine from two to eight weeks. Thus, the timeliness of your pro- posal is to be cbrnmended. In reference to the need for help from the Federal government to decently house American Indians, I would like to provide to each member of the Committee, a copy of a recent publication by the Native American Rights Fund, "Indian Housing -- Worst in the Nation.' The fact that this Congress has made the effort to continue the existing program as well as to develop an alternative to it, shows a deep commitment and special concern which is especially important because of the trust responsibility the United States Government has with Indian Tribes. Without that commitment, overcrowding and substandard conditions will continue to worsen, and improvements in health and sanitary conditions will decline. It is truly grim to realize that the progress that has been made in improving living condi- tions for American Indians and Alaska Natives will be so quickly and devatatingly ended. Without your commitment, there is no safety net. PAGENO="0207" 199 Statement of Peter MacDonald, Chairman Navajo Tribal Council, Navajo Nation, Arizona Before the House Committee on Interior and Insular Affairs April 1, 1982 Today, there is a critical need to immediately. construct 10,000 homes on the Navajo Reservation. Of the existing houses, 18,000 are so substandard as to be nearly uninhabitable. Additionally 12,000 other units are in urgent need of substantial rehabilitation. Needless to say, there is a dire need to continue the federal Indian housing program. This commitment must be both with respect to existing commitments as well as to initiate new units. The federal commitment to Indian housing must be a multiyear commitment which will escape the annual wrangling for the federal budget. The criteria utilized in evaluating the various pieces of legislation being proposed to continue Indian housing should not get caught up in a battle of turf between various federal agencies. Instead, the following factors should be of paramount consideration: 4, (1) The proposed legislation must contain a sufficient level of expenditure to insure that all obligated units will be constructed without the necessity to deobligate any of the units already in the pipeline. (2) The proposed legislation must provide for sufficient funds to continue the Indian housing program at a sufficient level to make a meaningful commitment to the continuation of the - provision of housing to Indians. PAGENO="0208" 202 people who provide special services to the reservations such as medical personnel at hospital complexes. (13) The proposed legislation must take into account the specific needs currently provided by various housing programs including construction of new units, and rehabilitation of existing substandard housing. (14) The proposed legislation oust be cognizant of the fact that there is a tremendous need for a housing program which will be devoted exclusively to Indians and respect the integrity of a specific Indian housing initiative. In conclusion, the issue of which legislative proposal should be enacted should not turn on the question of where the program is going to be located in the federal bureucracy. The true issue here is how can we work together to better use precious federal dollars to build more Indian housing which will accommodate the specific needs of particular Indian tribes as determined by the individual tribal governments. Thank you. PAGENO="0209" INDIAN HOUSING, WORST IN THE NATION By: Margaret S. Treuer Edited By: Virginia Spencer Housing Assistance Council Anita Remerowski Native American Rights Fund Published By: Native American Rights Fund 1506 Broadway Boulder, Colorado 80302 This publication was prepared with funds from the National Rural Housing Coalition under contract with the Native American Rights Fund. PAGENO="0210" Introduction Across the length and breadth of the United States, tucked away in isolated rural areas and in urban ghettos, live over 1.4 million American Indians who rank as the worst housed population group in the United States. And when the Reagan Administration took office, it became apparent that American Indians were to suffer the largest percentage cut in the federal housing budget - the elimination of HUD's Indian housing program, the main program for construction and upgrading of Indian housing. The Administration has proposed zero funding for the HUD Indian housing program and the Indian Health Service water and sanitation facilities construction program for FY `83. Likewise, no new development money is proposed for any HUD assisted Indian housing program for FY `83. The lack of construction funds is a move by the Administration to save federal dollars. A proposed substitute is a modified Section 8 certificate program which allows eligible low-income households to find housing in the private market. For Indians, this type of proposal is absurd--there is no private market housing on reservations. In addition, it is clear that the 1982 Administration proposal to terminate the HUD Indian housing program is being carried out even though Congress appropriated $25 million for 4,000 units for FY `82. A proposed cancellation of the FY `82 units was made by the Administration on February 10th. HUD will thus defer spending for at least 45 congressional working days while Congress deliberates the cancellation proposal (160 units of Indian housing for FY `82 are being held back from the proposed cancellation due to existing commitments). HUD also plans to cancel as many units previously obligated as possible, following the terms agreed to under the Annual Contributions Contract. This means that housing projects can be cancelled if deadlines are not met by Indian housing authorities (IHA), or if cost overruns occur and there is no amendment money. IHAs could lose approximately 9,400 units in the HUD pipeline that are not already actually under construction. Another problem will be proposed cutbacks in operating subsidies for low-rent units, requiring higher rent payments from the lowest income participants. The effect will be death to many IHAs and no housing for Indians on reservations because there is no other means available to build homes. Overcrowding and substandard conditions will continue to worsen, and health and sanitary conditions will decline. It is truly grim to realize that the progress that has been made in improving living conditions for American Indians and Alaska Natives will be so quickly and devastatingly ended. This is no safety net. Alarmed at those early indications from the Reagan Administration that sounded the death knell for Indian housing, Indian tribes and organizations around the country began casting about for some means of documenting the housing conditions of their people, identifying present delivery problems, and offering viable, cost- effective, solutions to the problem to present to PAGENO="0211" C?1 Pho Administration proposes to terminate the IIUD Indian Housing Program in 1982, There is no reason to continue this program. President Reagans Budget Message PAGENO="0212" Congress and the Administration. What eventually grew out of the ensuing meetings and discussions was a series of citizens hearings. Through first- hand testimony of Indian people and of people working in Indian housing and related fields, it is hoped that some understanding and sympathy could be gained and action taken to improve living conditions of American Indians. With limited financial assistance provided through a National Rural Housing Coalition grant to transcribe the proceedings and summarize testimony, hearings were held throughout the Summer and Fall of 1981. The day-long hearings were presented to panels consisting, variously, of congressional staff members; federal officials representing the Department of Housing and Urban Development, Bureau of Indian Affairs, and Farmers Home Administration; tribal and state officials; and housing specialists. Each hearing was formally conducted with witnesses submitting written and oral statements to the panel, and answering questions presented by panel members. All testimony was transcribed ver batim. The testimony of some witnesses documented in painful detail, the exact nature of the housing in which they lived. Other witnesses testified to their experiences in attempting to deliver housing at the local level with limited funds and ~cianpower while living up to the myriad of conflicting regulations of different federal agencies. Still other witnesses who worked directly with Indian people - social workers, tribal court personnel, advocates, medical staff - testified to their experiences and frustrations at being unable to help the many Indian people they encountered daily who desperately needed better housing. What has emerged from these hearings is a graphic record of the human price Indian people, and our society in its turn, is paying in shattered families, trauma, disease, loss of dignity and loss of life itself for lack of decent housing. No report, including this one, can possibly convey all facts, nuances, and innuendo which can be gotten from first-hand information. Any serious student of Indian housing problems must read the hearing transcripts themselves. However, in order to circulate the salient points of the hearings to the broadest possible audience this summary was prepared. Statistical background information has been added to supplement the witnesses testimony. Every attempt has been made to adhere faithfully to the record and to emphasize those points emphasized by the witnesses themselves. PAGENO="0213" Contents Part I: Indian Housing Conditions Introduction 2 A. Miserable for Nothing 7 Margaret Treuer is a member of the Minnesota Chippewa Tribe and grew up on the Leech Lake B. Doubling Up and Splitting Families . 8 Indian Reservation. Prior to law school, Mrs. Treuer - a registered nurse - worked as a health C. Barely Shelter 11 program director and advocate on her home reservation and other Minnesota reservations. U. No Housing At All 13 After graduating from Catholic University School of Law in 1977, she worked in Washington, D.C., E. Federal Indian Housing: Programs & as an Indian housing advocate. She is now in Problems 15 private practice in Bemidji, Minnesota. 1. Indian Housing Programs. . . . 15 2. Current Problems 16 3. The Future9 19 Virginia Spencer is a Indian housing specialist for the Housing Assistance Council in Washington, D.C. Hearings on Indian Housing: List of Participants 21 Anita Rem erowski is a staff attorney with the Selected Bibliography on Indian Native American Rights Fund, and the director of Housing 27 its Indian Law Support Center Project. PAGENO="0214" A. Miserable for Nothing "In the city I made more money, but I had to spend it all on miserable housing. Here I can be miserable for nothing." Young Reservation Indian Woman, Montana Citizen Hearing on Indian Housing, May 13, 1981. According to the 1980 census, there are 1.4 million American Indians in the United States. About 50% live on Indian reservations or in rural areas near those reservations. It is well documented that Indians and Alaskan Natives have the "lowest incomes, the fewest economic opportunities, the highest mortality rates, the least education and notably the worst housing.* With few exceptions, the economy of the typical reservation is tied directly to the federal budget. The slashing of federal programs, including housing, will undoubtedly push the present poverty rate of 45% to even higher levels. According to BIA labor force statistics unemploy- ment among Indians presently ranges between 40- 70% in some areas and the expected loss of housing development funds will exacerbate this already dismal figure. Despite 18 years of HUD and BIA housing programs, American Indians suffer from the worst housing conditions of any United States' citizens. 12% of all Americans live in substandard housing, but 49% of all Indians live in substandard housing (1970 census, no update yet available). 1.9% of all Americans live in overcrowded housing, but 27.6% of all Indians live in overcrowded housing (1970 census, no update available). According to 1981 BIA statistics, there is a backlog of nearly 90,000 units of substandard Indian housing needing repair or total replacement. The latest BIA figures (Oct. 1980) show that there are 165,000 Indian families living in reservation areas. Of these 28,600 families have no housing of their own. This figure includes the tent, car, and wickiup people. Of the 136,400 existing Indian units, 60,184 need repair while another 32,048 need replacement. Thus, some 92,232 reservation families were living under substandard conditions in 1980, whereas in 1970 this figure was 63,000. Moreover, available statistics do not include the significant numbers of Indians living in urban centers* and in off-reservation, rural areas, since *Written statements from the National Urban Indian Council and the Indian Rights Association of Philadelphia on urban Indian housing needs are available from NARF. *U5 Senate Select Committee on Indian Affairs, Report on Indian Housing, GPO, 1979. PAGENO="0215" they are not within the BIAs jurisdiction. Indians from non-federally recognized tribes are also left out of official counts. Thus, the full extent of~ the need for Indian housing is unknown. More than likely, it is at least twice that of official estimates. Health statistics, traceable in part to poor housing conditions, are grim. According to 1981 BIA statistics, 19 of every 1,000 Indian babies between 30 days and II months die. This figure is twice that of the national average. Gastroen- teritis and pneumonia, both environmentally related causes of death, claim the lives of most of these infants. The Indian accident rate runs four times that of non-Indians. Forty percent of accidents, the leading cause of death among Indians, occur in and about the home. The suicide rate for Indian youngsters is twice the national average and although difficult to document, poor housing is undoubtedly a contributing factor to this heart breaking statistic. Witnesses at the citizens hearings emphasized three aspects of the Indian housing crisis: the overcrowding, the housing conditions, and the homeless. B. Doubling-Up & Splitting Families Unlike urban areas with block after block of boarded-up buildings, vacant units of any kind are practically unheard of in Indian country. Even the most dilapidated, rudimentary structures are occupied. As one reads the transcripts of the hearings, the pervasiveness of overcrowding due to the lack of existing housing is striking. The 1970 census shows that 27% of all Indians live in overcrowded conditions compared to 1.9% of the general population. It is not uncommon to find two or three or more families living in a structure inadequate even for a single family. Because the median age of reservation Indians is 23 years (according to the 1980 census), a sharp increase in population and family formations is developing. Housing for new families is simply not available and none is in sight. Thus, the housing shortage is causing social disruption and breaking up Indian families. The story of Holly and Danny B., a young couple from a Midwest Indian reservation is illustrative. Holly and Dan were married in 1976. In 1977 a son was born to them. In 1979, while Holly was carrying their second child, they were divorced. Why? Holly says it was mostly because they never had a place of their own to live in. PAGENO="0216" ~ / It, Right- now wo hovo 1 ~Thmily, a young woman with three children. She I tera I ly has no p aco to go, so she s liv inq in a car . Now, i If we a harsh winLor, I don't know what's going to happen to them. Di rector , for I 13n 1 knap Roservat ion Noun ing Authority, Montana, PAGENO="0217" I. A problem in many Indian homes is ~he plurnhing,which, if existent at all, is generally in need of repair or replacement. PAGENO="0218" Dan had a steady job so they could have rented a place, but nothing was available. Mostly they moved back and forth between the homes of their respective families. Her folks, with three other children, had a two-bedroom trailer which had been discarded by the BIA as temporary housing for its employees. His family's home was a two- room log cabin housing his father and two teenage brothers. There was friction between Holly's mother and Dan, and Dan's brothers and Holly. Family feuding and lack of privacy were straining the marital relationship to the breaking point. In the summers they would camp in a nearby U.S. Forest Service campground which had water and bathing facilities, but only for five days at a stretch (campground regulations prohibited longer, continuous stays). So on weekends they went to relatives' homes or slept in their truck. After three years of this they separated for good. Holly and the children presently receive AFDC benefits and live with her family in the trailer. Cultural and survival imperatives among Indian peoples dictate that resources, however scarce, be shared among family members and the tribe. This sharing ethic is applied to shelter as well. Witness after witness at the citizens' hearings attested to shelter-sharing among Indian families. Most commonly found are extended family households with grandparents, parents, and grandchildren together under one roof. Witnesses who work with elderly programs flatly stated that "traditional single-bedroom elderly housing," as such, had no place in Indian communities. "The elderly need 2-3 bedroom units because they always have their children and grandchildren with them," was one statement. Another witness stated: "They need a big enough house for them (the children) to stay with the grandparents. Because Apache people are proud people and they don't want the children to go into foster homes...all the grandmothers are the ones who take care of the children." Indian families in' BUD assisted housing expressed difficulty in comprehending regulations aimed at preventing overcrowded BUD units. Many of them had lived in 2-4 room shacks with their large extended families for so long that it had become almost normal. Gloria McCullough, a woman from the Hannahville Indian community in Michigan, who had been asked to testify about overcrowding, had this to say about her own situation: "I have 10 children, all living at home. My oldest daughter is married and she lives with us. We have a four- bedroom BUD house with a basement. My boys built bedrooms downstairs (in the basement). It is not overcrowded. Each one of my children has his own bed." Under HOD regulations Mrs. McCullough's home was overcrowded but to Mrs. McCullough, if no child had to share a bed, it was adequate. A witness from the Hat Creek area in California testified about overcrowding among his community of 147 people: "There are three families living in a two-bedroom house - three families. There are four families living in PAGENO="0219" another two-bedroom house. So how crowded can you get? And then we have a family of at least 15 people living in one small house and they have more when there are other people who come along. They don't turn anyone away." Incidentally, the 1980 census count of this same Hat Creek Community was 15 people. Severe overcrowding sometimes results in a physical breakup of Indian families. Some children are parceled out to relatives. Others end up in foster homes. The mental and emotional harm to the child victims cannot be calculated. The family of Mrs. Apkaw, a registered nurse from the Gila River Apache reservation in Arizona, was one such family forced to split up. In 1980 she, her husband and nine children acquired a new HIP- funded house* measuring 15' x 32', a little over 43-square-feet per person. A bathroom was planned, but ultimately not included because it would take up too much space. After an older daughter and her family had to move in, it became necessary to take some action. Mrs. Apkaw stated: "We couldn't all fit in our house anymore so I left some of my children with my brother in Sacaton and son with my folks about a mile away. The remaining family would spend the night as comfortably as we could in our home. And then when we got ready to go, I'd gather up my children again." A San Carlos Apache woman employed by her tribe to assist reservation elderly testified about her frustrations in attempting to secure used mattresses from a condemned hospital for one family. The family consisted of an elderly couple, 13 grandchildren and a grown son. The house they lived in consisted of four small rooms with no plumbing whatever. The family had only two beds so that all the children except the baby slept on the bare floor. They had floor room enough for six mattresses, single size. Figuring that two children could sleep together on one mattress, they asked for help in getting six mattresses. By the time the worker went after the mattresses they had already been taken by other families and the children continued to sleep on the floor. Given this kind of situation, which is not particularly rare, it is not surprising that Gloria McCullough felt that because her children each had a bed, her home was not overcrowded. Witnesses from the Southwest, Midwest, Eastern and Northwest areas of the United States also testified about instances of legal intervention and removal of children due to over-crowded, inadequate housing. Colleen Clark, a juvenile officer from a Montana reservation stated: "We just recently had a family that lived on the reservation. There was an elderly woman taking care of her grandchildren. There is no running water, no sanitation facilities. These children had to be taken out of that home and be placed in foster care. This is just one example; there's more." *Housing Improvement Program administered by the Bureau of Indian Affairs. PAGENO="0220" y~ ~ #~ ~ nil 13n `When my dad was sick with cancer and he had to go to the outhouse -- his pride - - he didn't want mom taking him there so he'd go by himself, One night he didn't come back and finally she went out, He was so sick she picked him up and helped him into the wheelchair." Pima Indian ii `If 1~ 4 I ~ il" ~/f ) PAGENO="0221" Colleen went on to state: "Cutbacks in Indian housing are another form of genocide which started four hundred years ago because when you break up your Indian families, they don't have anything left. Things like this can be prevented and that is why I'd like to see results somehow because in the meantime I have to face more families tomorrow." C. Barely Shelter If such a thing as a "typical" modern-day Indian house existed, it could be described as a two- to four-room wood frame structure, lacking insulation, lacking complete indoor plumbing, with one or more major structural defects and sheltering a minimum of six people. In addition, one could probably add that the house would be without access to safe drinking water and without means of refrigerating food. The President's Commission on Housing reports that 7.5% of all U.S. housing units are sub- standard. According to the 1970 census approximately 50% of the existing Indian housing units are substandard. Although little hard data is available, it is probably safe to say that the majority of the 90,000 Indian units classified as substandard have several defects. A great deal of housing described at the hearings consisted of housing abandoned by others as no longer useful or fit. For example, at St. Regis Mohawk in New York 138 trailer homes with 2" walls, provided by the government for flood victims in Pennsylvania, were acquired by PAGENO="0222" Mohawks for the cost of transportation. So far, 22 have burned down due to inherent defects. The remainder are unable to maintain a temperature of 7096 F. mandated by state law, and winters in St. Regis are severe. The witness describing the trailers stated that 1/2' thick frost forms on interior walls, two and three feet above floor level. These trailers constitute roughly 25% of the available housing at St. Regis. Witnesses from the Gila River Indian Community in Arizona reported living in barracks left over from a World War II concentration camp for Japanese-Americans. And, at Leech Lake Reservation in Minnesota, for a nominal sum, several Indian families were able to acquire trailer homes discarded by the Bureau of Indian Affairs after they had served their purpose as temporary housing for its employees. A random sampling of individual units described by witnesses follows: Crow Reservation Montana: Wife, husband, five children ranging in age from 2-14, live in a house with four rooms, a kitchen, living room, and two bedrooms. The house has no closets and no water supply. Water is hauled 26 miles. They have good credit ratings, work, and could afford to make mortgage payments, but every agency and private lending institution they went to turned them down because of the trust status of their land. Confederated Salish and Kootenai, Flathead Reservation, Montana: Wife, husband, and three children occupy a three-room house with one bedroom. During the cold winter months the whole family slept in the living room near the stove to keep warm and in summer they slept outside. All the plaster had fallen off the walls, holes in the ceiling, running water (lots of iron and calcium in it) for the kitchen sink only, snow came in underneath the door. Lookout, California: Indian couple living at a rancheria. Wife is 45, husband is 64, he is an invalid and can't walk, they have no water, their well is contaminated. The electricity has been shut off. Syracuse, New York: A 63-year-old Indian man with diabetes lived alone in a one-room apartment with a shared bathroom at the end of the hall which was filthy. Ilis diabetes caused open sores to develop on his feet. As his feet got worse, he became bedridden and unable to change bandages or socks, or go down the hell to the bathroom. He lay in bed for five days before someone noticed the odor coming from his room. Gangrene - he lost one leg above the knee and three toes on the other foot. Now he is in a hospital where he has been for months. Salt River Indian Reservation, Arizona: Wife, husband, brother-in-law and two children live in tiny two-bedroom house. The ceiling in the kitchen is coming down and the floor has partly caved in. The children can walk up to an electrical outlet and reach back in and touch the wiring. The children can't sleep alone because of the danger of mice biting them, so they share their parents' bed. San Carlos Apache, Arizona: An old man, his wife, and 30-year-old blind son live in 10' x 12' PAGENO="0223" a "They sleep in cars on our reservation because we do not have Other facilities for them to stay. A lot of homes are filled with double occupancy because the Indian people do take them in." Housing Commissioner, Lac Du Flambeau, Wis- cons in. PAGENO="0224" An ci dr ly No z Pc roe man 1~ ives in th i house on t:h~ idctho no rvnt ion. hau so is so u no tah i.e thi L the n»=concl f 1 nor n inset: be used rh 1 3 ~(> mr ny ho .1 e s i n the on t t h :r t the on 1 y it r y p o t I ri tb 1. boo so i w h ii r m in si cops. Ho her; put: ci ritbon nit on tho cc iii nq over his bed, PAGENO="0225" frame shack with an open air arbor outside for cooking. No electricity, no running water, no plumbing. Nearly all of the witnesses testifying at the hearings stressed that the specific examples they cited were not unusual hardship cases, but rather were somewhat typical of existing conditions in D. No Housing At All their communities. To a smaller, but not insignificant, number of Indian people, Indians living crowded together in small ramshackle units are considered lucky. They at least have a roof over their head and means of preparing a hot meal. Members of this group are literally homeless. Many of them sleep in cars - which may or may not be operable - tents, or other "temporary" shelter. "A number of what they term the Indian ghettos in Wolf Point, Montana, have been torn down - the families are out on the streets. We had to go and find children that are staying behind grain elevators, under porches, inside doorways, things like that, because they didn't have anyplace to go." Juvenile Officer Fort Peck Reservation, Montana Indian people, mostly from the nearby Rocky Boy Reservation, were living in a "community" next to the city dump of Havre, Montana. The "homes" had been constructed of paper, rags and lumber scraps salvaged from the dump. The City of Havre solved this embarrassing problem by ordering that all Indian shacks in and near the dump be bulldozed immediately. PAGENO="0226" "When the shacks were bulldozed, some of the Indians' belongings were still stacked where they had once lived, homeless, displaced, no money, and no place to go. Some returned to Rocky Boy where relatives took them in, causing more overcrowding." Indian Witness Rocky Boy Reservation, Montana A tribal court administrator testified about some of the problems the tribal court encountered because of the housing shortage: "One problem we encounter Is that newborn babies, born in the Public Health Hospital, sometimes can't go home with their parents because their housing is unsuitable for a newborn. Also, we encounter men who come to jail and ask to be arrestd so they would have a place to sleep." Blackfoot Reservation, Montana A witness from San Carlos Apache presented slides of housing conditions of the elderly on that reservation. Many of the elders live in 10' x 10' shanties expanded with an open-air arbor used during warm weather for cooking and sleeping. One slide showed the "house" of an old woman which consisted of a tent pitched under a permanent roof structure supported by poles. For her this was home, winter and summer. Homeless Indians are found in urban as well as rural areas. Some years ago an enterprising group of urban Indians from Minneapolis managed to secure funding for an Indian housing project. The units are always filled and there is a long waiting list. Indian families who can't get a unit or find a family willing to take them in, sleep in their ears in the parking lot. The director of the project had this to say: "I don't think it is funny to see people out there in the street and in the parking lot. I have had families of six, seven and eight children sleeping in cars for days. We send them to the welfare department, and the welfare department says, you have a reservation there, you take care of them... It is a vicious cycle." A witness from the Winnebago Tribe in Wisconsin testified that in the outlying areas of his reservation several families continued to live as they had in the 1950s in wigwams, without, of course, plumbing and electricity. Most of them are elders who are adamant about continuing to live on the same land they grew up on. Money for modern housing is not available so they construct traditional structures. It is a hard life, but to these people it is harder to live elsewhere. And, in northern California, as recently as 1976, 30 Indian families were living, somehow, in the snow in the wilderness without any kind of shelter. At that time, the Karok Tribe, to which these families belonged, was not federally recognized. PAGENO="0227" there ar' no off i ~t t Li 04 Ct I he 040. lee of hazel ~`04 roth nn'~ . iari', I' md orueri iv oh e I r o t ii fri ``nd n oh rc :~ I . A van no.; I oe eve a: home for' I h to Ca i i torn i: oh `in. PAGENO="0228" E. Federal Indian Housing: Programs & Problems I. Indian Housing Programs During the administration of Franklin Roosevelt, it became evident that much of the lower income population was residing in housing that was not decent, safe nor sanitary. In an effort to correct this problem and improve the economy, Congress passed the Federal Housing Act in 1937. However, the Native American population was denied any housing assistance under this federal program, or any other housing act, due to its unique problem of restricted land status. Indian land, in trust status, cannot be alienated, thus prohibiting mortgage lenders from holding the land and the home for security. Only in 1961 was it administratively decided that public housing could be made available on reservation lands. Even then, many Indian communities did not get housiing programs started until the 1960s. The postwar housing booms that revitalized most communities never happened on reservations despite the eligibility of many Indian veterans who served this country honorably in World War II and the Korean conflict. Veterans Administration housing benefits have been consistently denied to reservation Indians because their trust lands could not be considered as security for VA housing programs. Today, Indians are still denied access to most federally-assisted housing except for three small programs: (1) HUD Indian Housing created under the authority of the regular HUD Public Housing Program; (2) HUD Community Development Block Grant Program, which may be used for housing rehabilitation; and, (3) the Bureau of Indian Affairs' Housing Improvement Program (HIP) created in 1964. "Apparently when the Indian soldiers took off their military uniforms when they were discharged they had also taken off the appreciation (of their govern- ment) for serving their country honor- ably. . . The war dust in Italy and Germany did not even settle back to the ground when the United States government began sending billions of dollars for reconstruction of buildings and rehabil- itation purposes. Also, before the atomic bomb's dust returned to the ground of Japan, Uncle Sam was there with billions of dollars for mass construction of modern buildings, mass rehabilitation, including the best medical doctors the United States had had to offer and excellent hospitals. Meanwhile, we, the Rocky Boy Indian people, are still living under the same bad living conditions." - Indian veteran of World War II from the Rocky Boy Reservation in Montana. Since 1961, the BUD Public Flousing Program has remained the only significant housing resource available to Indian people. The BIA uses a simple grant approach, which provides funds primarily for home repairs which most threaten the health or safety of the occupants. It does not bring units PAGENO="0229" up to minimal standards in all cases. In addition, a handful of new homes are constructed with HIP funds each year. The program has always been grossly underfunded. Despite these shortcomings, it is a much sought-after program among Indian people because of the grant mechanism, administrative simplicity and tribal orientation. Due to its relative simplicity, rural orientation, and family centered approach, the FmHA Section 502 program is better suited to the reservation setting than are most federal housing programs. However, few FmHA loans or grants are made to Indians despite the fact that rural areas are where most Indian reservations are located. Currently, under the FmHA Section 502 program, only moderate income families are eligible, thus not meeting the large need at the lower income end of the scale. In addition, FmHA's county offices are generally located in the county seats far removed from reservation centers. As a result FmHA *has little visibility among Indian groups. The 1974 Housing and Community Development Act made it possible for the first time for the FmHA to accept a security interest in a 50-year leasehold on Indian trust lands. It was thought that this provision would remove a major obstacle to Indian participation in FmHA loan programs. However, Indians living on allotted trust lands are reluctant to use FmHA programs because FmHA and the BIA have agreed that the trust feature of such lands will evaporate in the event of foreclosure. Even in the case of tribal trust lands, FmHA loans are viewed with suspicion because a foreclosure would result in non-Indians taking possession of the land for the remainder of the lease term. Other factors which inhibit FmHA loans to Indians are "steady job" requirements, and the general unaffordability of the programs for a large percentage of the Indian population, even with an interest subsidy. As stated previously, the unique legal status of Indian land effectively prevents Indian use of conventional mortgage financing and the use of the various state and federal mortgage insurance programs. Even if the security interest requirement could somehow be overcome, it is doubtful whether such programs would work without an alternative loan servicing feature because many reservations are far removed from the service area of conventional banking institutions. Excluding various mortgage insurance programs such as VA and FHA, it is estimated that the govern m ant provides housing assistance sufficient to meet approximately 5% to 6% of the need f or the total U.S. population, and between 2.5% to 4% of the need for Indian housing (Testimony before the Subcommittee on Rural Housing and Development of the Committee on Banking, Housing and Urban Affairs, U.S. Senate). This is obviously unfair when one considers the percentage of Indian families living in substandard housing compared to that of the general population, and when the relative quality of housing between Indians and other population groups is considered. 2. Current Problems The delivery of effective and efficient housing assistance to Indians in rural areas defies easy solutions. First, most Indian communities lack the physical infrastructure comprised of roads, streets, sewer, water, and utility lines normally found in PAGENO="0230" I PAGENO="0231" non-Indian communities. Second, the the trust status of Indian land, so necessary to the economic, cultural, and political survival of the Indian tribes, means that conventional real estate financing and federal mortgage insurance programs as presently structured are unavailable to most Indians. Third, extremely low incomes, high unemployment, the seasonal nature of employment on many reservations, and the lack of a stable economic base on most reservations all complicate the problem. Additionally, the cultural, legal, and geographic diversity of the 300-plus Indian tribes must somehow be accomodated. At the present time, the majority of housing assistance for Indians must be met out of a single HUD program initially created for use in large urban centers and not administratively adapted for rural use. In past years, the federal goal for HUD's Indian Housing Program has been set at 6,000 units. However, because inadequate unit development cost figures were used and because inflation projections were generally overly optimistic, the contract authority amounts provided have rarely been sufficient to actually build 6,000 units. A lengthy delay between appropriation of money, allocation to the regional offices, and construction starts have further eroded the number of units that could be built with available funds due to inflation. In addition, because of HUD's financial feasibility requirements, very small tribes cannot participate in HUD's Indian Housing Program. The market for units, in terms of numbers, is too small to support the necessary IHA administrative structure even with payment of the low-rent type operating subsidy. The development of a "HUD" Indian housing project involves three federal agencies, plus the tribal government and the Indian housing authority. Pursuant to a tn-agency agreement, the Bureau of Indian Affairs approves and funds access roads; the Indian Health Services approves and funds sewer and water facilities; and HUD funds actual construction of the homes, streets, and other facilities within the boundaries of the projects. However, since the appropriations process is different for the three agencies,there is never any assurance that funds for water, sewer, and roads, will all be available at the same time for any given HUD Indian housing project. Nor is there any assurance that agency regulations will be complementary. In 1980, according to the National American Indian Housing Council, the average total development cost for Indian housing was approximately $62,000. This figure includes costs of housing in Alaska and on the Navajo reservation, where, due to extreme isolation and climatic conditions, as well as a specialized labor program, costs have been well above the average. If you leave out these higher cost areas, the national average is $57,875 per unit. While this cost is certainly comparable to non-Indian public housing, many tribal and Indian housing authority officials can point to government imposed requirements that needlessly hike the costs of Indian housing. A. Davis-Bacon Wage Rates Davis-Bacon wage rate requirements imposed on HUD-financed Indian housing are a factor contributing to the high cost of Indian housing and the low rate of local Indian employment on HUD projects. Indian reservations do not generally C?1 PAGENO="0232" have separately established Davis-Bacon rates, and the rates used are based on the county or counties encompassing a given reservation. Thus, the wage rates IHA's have to work with are generally much higher than those actually prevailing on the reservation. Data used to establish rates is often outdated, from outside the local area, and may even be based on construction other than housing. The March 1978 GAO Report on Indian Housing states that wage rates are often taken from those established for the nearest metropolitan area and increased to provide for a travel differential. The artifically high wage rates increased housing costs both directly and indirectly. Delays, which translate into higher costs, occur because union contractors often do not operate in Indian areas and the required higher rates make non- union contractors reluctant to bid on Indian projects. Some Indian housing authorities have also encountered construction delays because there were no rates established for their area at all. B. Minimum Property Standards In past years, regulations, which reflect judgements about resale market factors and which are generally irrelevant in a reservation setting, have been the cause of much dissention between HUD, the IHAs and the tribes. Examples of insensitive and senseless minimum property standards (MPS) or HUD design requirements regarding Indian housing abound. For instance, adobe has been used for housing by the Pueblo Indians for hundreds of years and in the Southwest it is used extensively in housing built for the private market. BUD, however, refuses to allow it in Indian housing unless additional insulation and metal supports are added, driving the cost beyond the reach of the program. In Alaska, Wyoming, and elsewhere, log homes have been traditionally in wide use by Indians and non-Indians alike. Until 1980, BUD did not allow IHAs to build log homes despite engineering studies showing that they were as energy efficient as conventional frame construction. In a remote Alaska Native village, where no one owned a car and where the permafrost made it impossible to maintain a road, BUD and the BIA required the IHA to include streets in a housing project. In the Indian housing regulations issued in November 1979, HUD now states that MPS "shall be taken into account, but shall not be controlling." Additionally, the regulations make mandatory attention to maximum economy in energy consumption and encourage the use of alternative energy sources. It is hoped that these changes in property and design standards will allow housing based on the cultural preferences of the various tribes, and will result in reduced maintenance costs and reduced operating costs by encouraging energy efficiency and the use of indigenous fuels. C. Comprehensive Planning The current HUD program lacks meaningful local control and does not respond to local initiative. On most reservations it is probably fair to say that housing is built at irregular intervals, depending on fund availability and the decisions of distant agencies. Comprehensive community development planning is rare, and when it is done, it can serve little useful purpose without the means to carry such plans into effect. PAGENO="0233" 227 PAGENO="0234" In addition, 701 planning funds for Indian tribes have been so meager that many tribes are denied the means to carry out any planning activities at all. Ideally, tribes without sufficient resources of their own should receive planning grants to conduct comprehensive housing inventories, to assess housing needs, to project for population and family increases, and to develop an over-all plan encompassing housing assistance, com munity development, and land use plans. 3. The Future? The Reagan Administration proposes to dispose of the Indian housing program altogether on grounds of expense and fiscal austerity. There is no question that the development of housing, any housing, is expensive. However, it would seem that the policy questions that the federal government should address insofar as Indian housing costs are concerned are along these lines: Is it more expensive to provide housing assistance up front or withhold it and pay it out later in health care, social services, courts, prisons, alcohol and drug treatment centers, mental health clinics, foster care and welfare payments? What is the cost to Indian tribes and American society, in turn of the needless loss of potentially productive, useful citizens whose potential went underdeveloped because of death, illness and other problems associated with bad housing? To illustrate, take the ease of Joe B., an Indian male, age 35. Joe was a bright kid, a good athlete and a reasonably good student until high school. He and five brothers and sisters were raised in a two-room log house, kitchen and sleeping room, without electricity. The school bus picked him up at 7:15 a.m. and brought him home at 4:15 p.m. High school brought more pressure to study outside of class than had elementary and junior high school. During the winter it was dark when he left and dark when he returned home. Crowding, noise, and lack of light made studying impossible. His grades slipped. At 16 he dropped out of school. He couldn't get a job and began drinking. One night he got in a ear accident and underwent two operations. He spent three weeks in the hospital. Later he got in trouble with the law and spent a year in a juvenile detention center. At age 19, he got married and had a child. They lived with his wife's family. He still couldn't get a job. He broke the law again while drinking and spent 3-1/2 years in prison. His wife and child received AFDC, food stamps and other benefits during this period at a cost of about $500 per month. It costs around $10,000 a year to keep a man in prison in his state. He is out on parole now and things are a little better but not good. It remains to be seen what next may happen to him and his family. Altogether, the state and federal governments spent about $70,000 for his health care, imprison- ment and care of his family. How much was lost in taxes he didn't pay and contributions he didn't make to society can only be guessed. Would decent housing really have made a difference in his life? Such questions are difficult to answer, but ... probably. PAGENO="0235" Where it has been available, decent housing has enabled Indian tribes to keep talented and educated tribal members at home where their skills are sorely needed. Teachers, health pro- fessi onals, administrators, accountants, and others are remaining with their tribal groups rather than leaving for cities and other off-reservation areas for lack of decent housing at home. Discrimination, distrust and lack of adequate income for urban Indians means a continued denial of opportunities for decent housing. Lacking knowledge of the urban "system," very few Indians seek or receive whatever housing assistance may be available on the "outside," while most on reservations wait and wait and wait.... PAGENO="0236" / ~ I/I I k ir4i ~,// / ~ /P~i~eoj~~ *Riq1~ now wr have a family, a young woman with three children. She 1 1. to ra ii y ha/I no p1 ace to go, no she a 1.1 v I ng in a car . Now , if we ii ave a 1 a r a h w a to r , I ci C) n * t k now wh a 1: a go I nq to happen to them. I) rod or , 1~oC: t LIe knap Poser vat ion Hous inq Author I ty , Montana, PAGENO="0237" Citizens Hearings on Indian Housing Billings, Montana May 13, 1981 Sponsor: Montana Inter-Tribal Policy Board Panel Members: Conway, James, Attorney, Havre, Montana Emil, Shelly, Field Representative for U.S. Representative Pat Williams, Missoula, Montana Spencer, Virginia, Housing Assistance Council, Washington, D.C. Stephenson, Evelyn, Attorney, Flathead and Kootenai Tribes Witnesses: Beaumont, Phillip Bunch, Steven, Attorney, Helena, Montana Clark, Colleen, Juvenile Officer, Tribal Court, Fort Peck Indian Reservation Farrell, Rick, Executive Director, Salish & Kootenai Housing Authority Grant, Sandra, Member, Crow Tribe Gray Horn, Beverly, Billings Area Office, BIA Howard, Dallas, Executive Director, Fort Belknap Indian Housing Authority Mottinger, Steve, Attorney, Wolf Point, Montana Old Coyote, Lloyd, Member Crow Tribe Porter, Lila, Court Administrator, Blackfe et Tribal Court Rock Roads, Jr., Tom, Member Northern Cheyenne Tribe Round Face, Tommy, Member, Crow Tribe Small, Clayton, Montana Inter-Tribal Policy Board Sloan, Gary, Confederated Salish & Rootenai Tribes Standing Rock, Duncan, Rocky Boy Reserva- tion Todd, Elliot, Director, Fort Peck Housing Authority Toews, Virginia, Executive Director, Northern Cheyenne Housing Authority Wippert, George, Member, Blackfeet Tribe, Browning, Montana PAGENO="0238" Treuer, Peggy, Attorney, Bemidji, Minnesota Midwest Regional Hearing on Indian Housing University of Wisconsin, Stevens Point University Center Building May 20, 1981 Association of Michigan, Minnesota & Wisconsin Housing Authorities; Inter-Tribal Council of Michigan, Inc.; Michigan Commission on Indian Affairs; and the Minnesota Sioux Tribes Panelists: Ferch, Ken, Projects Assistant for Senator Bob Kasten, Wisconsin Hock, Sue, Caseworker for U.S. Representa- tive Steve Gunderson, Wisconsin Jacobs, Leon, Director of Office of Indian Programs, HUD, Chicago, Illinois Miller, Diana, Chairperson of Governor's Indian Advisory Council; also representing Anita Herrera, Advisor for Minority/Ethnic Initiatives for Governor Dryfus, Wisconsin Pattison, Thomas, Home Secretary for U.S. Senator William Proxmire, Wisconsin Polinski, Sandy, District Liaison for U.S. Representative Dave Obey, Wisconsin Sm yth, K el, Regional Representative/Upper Peninsula for U.S. Senator Carl Levin, Michigan Witnesses: Allson, Tom, Commissioner, Lac du Flambeau Housiirig Commission Burtt, Barry, Bay Mills Tribal Center, Brimley, Michigan Cameron, Carl, Inter-Tribal Council of Michigan, Inc. Crooks, Edith, Chairperson, Minnesota/Dakota Indian Housing Authority Day, Alberta, Chairperson of the Board of Neesh-la Inc., Wisconsin Dells Lowe, C hloris, Executive Director, llochunk Housing Authority McCullough, Gloria, llannahville Indian Community, Wilson, Michigan O'Brian, Bill, Wisconsin Winnebago Tribal Member Range, Edward, Housing Management Specialist, BIA Regional Office, Ashland, Wisconsin Skenandore, Artley, Executive Director, Little Earth of United Tribes, Minneapolis Housing and Redevelopment Authority PAGENO="0239" 00 0 Citizens Hearings on California Indian Housing Need Redding, California June 11, 1981 ~p~sor: Housing Action League Panel Members: Herrea, Vince, Executive Director, Local Indians for Education Mitchell, Mike, Director of Self Help Improvement Project Solinas, Sal, Assistant Chief, Rural Housing, State of California Department of Housing and Community Development Witnesses: Jenkins, Laverna, Chairperson, Hut Creek Development Association Martinez, Ted, Shasta County, California McNeal, Betty, Karok Tribe Montoya, Art Shelley, Pat, Native American Affairs Coordinator, California Indian Assistance Program, California State Department of Housing and Community Development Thom, Charles, Alcohol and Drug Counselor, Karok Tribe Timmons, Mary, Shasta County, California Titus, Terry, Housing Coordinator, Karok Tribe Southwest Regional Citizen's Hearings on Indian Housing Gallup, New Mexico June 29-30, 1981 Sponsor: Southwest Indian Housing Authorities Association Panelists: Moyah, Courtney, Director for Gila River Housing Authority and President of SWIHAA, SW Indian Housing Authorities Association Spencer, Virginia, Housing Assistance Council, Washington, D.C. Witnesses & Participants: Abeyta, Gloria, San Juan Pueblo Apkaw, Eugenia, Gila River Indian Reserva- tion PAGENO="0240" Callado, Mary, Pueblo of Acoma, Health Center Cata, John, Department of Housing & Urban Development, Albuquerque Chino, Julian, All Indian Pueblo Housing Authority Davis, Dixie, Fort McDowell Housing Authority Davis, Valerie, Pine Springs Boarding School, Window Rock Dixon, Joan, Gila River Indian Reservation Garskof, Tina, Legal Ass't, Pinal & Gila Counties Legal Aid Harvey, Maylene, Navajo, Chinle, Arizona Hoyema, Randa, Attorney, Four Rivers Indian Legal Services Johnson, Betty, Gila Indian Housing Authority Paytiamo, Stanley, Director, Health & Social Services Division, Pueblo of Acoma Petoskey, John, Attorney, Indian Pueblo Legal Services Romero, Wilson, All Indian Pueblo Indian Housing Authority Shorten, Lucille, San Carlos Tenorio, Frank, Secretary-Treasurer, All Indian Pueblo Council, Pueblo of San Felipe Thomas, Marie, Salt River Indian Reservation Veneno, Georgia, Jicarillo-Apache Reserva- tion Citizens Hearings on Eastern Indinn Housing Mystic, Connecticut July 31, 1981 Sponsor: Association of Eastern Indian Housing Authorities Panel Members: Block, John, National Rural Housing Coalition Enders, Keith, Indian Housing Service, Nashville, Tennessee Jacobs, Leon, Director, Office of Indian Programs, BUD, Chicago, Illinois Pearson, Bill, Director, Office of Environ- mental Health, IHS, Rockville, Maryland Spencer, Virginia, Housing Assistance Council, Washington, D.C. PAGENO="0241" Snyder, Barry, President, Seneca Nation of Indians White, Lucille, Chairperson, Seneca Nation, Housing Authority Witnesses & Participants: Atfield, Sr., Francis, Passamoquoddy Tribe Ballas, Jim, Seneca Nation Housing Authority Burk, John, Executive Director, New York State Rural Housing Authority Codwalder, Sandy, Director, Indian Rights Association, Philadelphia, Pennsylvania Cook, Carl, Director of Housing, St. Regis Mohawk, Revine, New York Lamb, Trudy, Schaghticoke Tribe, Long Island, New York Martin, Philip, Chief, Mississippi Band of Choctaw Indians, Philadelphia, Mississippi Mitchell, Richard, Pennobscot Tribe, Maine Osceola, Eloise, Seminole Tribal Housing Authority, Florida Tsosie, Phil, Director of Field Services, BUD, Chicago, Illinois White, Lucille, Chairperson, Seneca Nation Housing Authority Irving, New York August 27, 1981 Sponsors: Seneca Nation of Indians, Seneca Nation Housing Authority Panel Members: Barton, Boyd, Director of Housing, BUD, Buffalo, New York Bly, Frank, District Director, Farmers Home Administration, Salamanca, New York Duggan, Judy, Field Representative, Neighborhood Re-investment Corp., Cattaraugus County Goldman, Jay, Representing Commissioner Richard A. Berman, Counsel State Division of Housing, New York City, New York Sagar, Dean, Legislative Assistant to Repre- sentative Stanley Lundine Snyder, Barry E., President, Seneca Nation of Indians Spencer, Virginia, Housing Assistance Council, Washington, D.C. Hearing on Housing Needs of Indians in New York State PAGENO="0242" Tsosie, Phil, Director of Field Services, Chicago Regional Office of Indian Programs Witnesset: Angus, Sherry, North American Indian Club (NAIC), Syracuse, New York Breidinger, Bill, Departmcnt of State, New York Burk, John, New York State Rural Housing Coalition Cook, Carl, Director of Housing, St. Regis Mohawk's Regional & Tribal Council Doctor, Ginny, Executive Director, HAIC, Syracuse, New York Patterson, Elma, Department of Social Services, New York State, Member of Tuscarora Tribe Smith, Marguerite, Shinnecock Indian, Long Island, New York White, Lucille, Chairperson, Seneca Nation Flousing Authority Written Testimony was submitted by Sandra Codwalder, Executive Director, Indian Rights Association, Philadelphia, Pennsylvania, and Gregory Frazier, Executive Director, National Urban Indian Council, Denver, Colorado, on the housing needs of urban Indians. PAGENO="0243" Selected Bibliography on Indian Housing Indian Housing Roles: Bureau of Indian Affairs, Indian Health Service, Report by Housing Assistance Council, Inc., 1975, 1025 Vermont Ave., N.W., Washington, D.C. 20036. Substandard Indian Housing Increases Despite Federal Efforts -- A Change is Needed, General Accounting Office, Report to Congress, March 31, 1978. The Indian Housing Effort in the United States, Report of the American Indian Policy Review Commission, Appendix III, 1976. Indian Housing: 1961-1971, A Decade of Con- tinuing Crisis, Steinberg and Bishop, N.D. Law Review, Vol. 48, No. 4, Summer, 1972. Report on Indian Housing, U.S. Senate Select Committee on Indian Affairs, GAO, 1979. Hearings on Indian Housing, U.S. Senate Com- mittee on Banking, Housing and Urban Affairs, Subcommittee on Rural Housing and Development, April 1, 1980, 96th Cong., 2d Sess. Indian Housing Improvement Program, Rucker Research Report 5, Rural America, Washington, D.C. 20036. Indian Housing in the U.S., A Staff Report on the Indian Housing Effort in the U.S. With Selected Appendixes, Committee on Interior and Insular Affairs, U.S. Senate, 94th Cong., 1st Sess., Feb. 1975. Indian and Alaska Native Housing Programs, Hearings Before the Subcommittee on Housing and Community Development of the Committee on Banking, Finance and Urban Affairs, H.R. 96th Cong., 2d Sess., February 20-21, 1980. PAGENO="0244" APPENDIX II WEDNESDAY, APRIL 14, 1982 ADDITIONAL MATERIAL SUBMITTED FOR THE HEARING RECORD H.R. 5988 Statement of Harriet Toro Representative of Papago Tribe of Arizona Before the House Interior Committee April 14, 1982 Mr. Chairman, my name is Harriet Toro, a member of the Papago Coun- cil, who has been delegated as the official representative to speak on behalf of the Papago Tribe at these hearings on the Indian Housing Bill of 1982. This Bill is to provide for an Indian Housing Program for construction and financing of housing for Indians and for other purposes. We would not like to take a position for or against the bill at this point, although we endorse the concept of the bill. We cannot en- dorse the total bill until further clarification is obtained on certain sections. One concern is whether or not the Bureau can manage a Housing Program along with its other duties, and will it be handled like all other 638 contracts and their hangups in paperwork? Mr. Chairman, the Papago Tribe has experienced numerous obstacle~B and barriers set up by the BIA that sometimes make it almost impossible to operate under or complete our 638 contracts. Also, considerapion should be given to the fact that many tribes do not relate well to the BIA. Although there are some questions on specifics on all three titles, Title II poses the biggest question from our Tribe and many others. (238) PAGENO="0245" 239 We are asking for more clarification on the extent of a tribe's com- mitment of their Trust monies. The objection to this section is almost unanimous. Also, could there be clarification on what happens to tribal land if a family or tribe defaults on any contract. Many tribes also feel that this bill infringes on its Tribal Sovereign- ty. More clarification would be helpful. Mr. Chairman, we agree on the concept of this bill, but there are some requests that we feel should be made: 1. The 4,000 units that were allocated and now face a possibility of being rescinded be given to Indian Housing for 1982. 2. That Housing be kept under H.tJ.D. with modifications. 3. That support be given to this bill if H.U.D. does pull out of Indian Housing. 4. That the record remain open for at least thirty days to enable the Papago Tribe time to file additional written comments in regard to H.R. 5988. Thank you, Harr' t Toro PAGENO="0246" 240 PAS~UA* YAQUI~. TRIBE it~Ii~JIi SUBMITTED BY ANSELMO VALENCIA DIRECTOR ADMINISTRATION FOR NATIVE AMERICANS (ANA) APRIL 14., 1982 4821 West Calle Vican~ - Tucson,ArizOfla 85706 - Phones (602)883-2838 PAGENO="0247" 241 TO PROVIDE A BRIEF ADDITION TO MY PREVIOUS STATEMENT REGARDING HUD HOUSING FUNDS (ATTACHMENT I). SINCE THE STATEMENT WAS SUBMITTED THIS TRIBE COMPLETED NEGOTIATIONS FOR 60 MORE HOUSES, AS OF THIS DATE, THERE ARE CURRENTLY 193 FAMILIES SEEKING HOMES THROUGH THE PASCUA YAQUI HOUSING AUTHORITY. OF THOSE FAMILIES 158 ARE LOW INCOME, 25 ARE MIDDLE INCOMES AND 10 ARE HIGH INCOME. TO DATE WE HAVE 148 FAMILIES IN RENTALS AND 12 ELDERLY PEOPLE IN PROJECT AZ 40-1 AND 60 FAMILIES GOING INTO THE MUTUAL- HELP HOUSES IN PROJECT AZ 140-2, PROJECT AZ 40-3 WILL HOUSE 35 FAMILIES) HOWEVER, THOSE HOUSES WON'T BE CONSTRUCTED FOR ANOTHER 8 - 12 MONTHS. HOUSING APPLICATIONS HAVE BEEN RECEIVED ON THE AVERAGE OF TWO A DAY BY THE HOUSING AUTHORITY. THERE IS A TREMENDOUS NEED FOR MORE HOUSING AT THE NEW PASCUA VILLAGE. BECAUSE OF THE FAMILIES LOW INCOME, COUPLED WITH THE PROBLEMS OF THE LAND STATUS, LOANS FROM LEI4DING INSTITUTIONS ARE OUT OF THE QUESTION. THEREFORE, THE ONLY HOMES AVAILABLE FOR THESE PEOPLE WILL BE FROM THE HOUSING AUTHORITY (HUD) OR BY TRIBAL MEANS (HIP BLOCK GRANTS, ETC.) INDIAN PEOPLE SHOULD BE GIVEN AN OPPORTUNITY TO BUILD THEIR HOMES WITHIN THE RESERVATION CONSISTENT WITH THEIR OWN TRADITIONAL STYLE OF LIVING. TRADITIONAL HOMES CAN BE BUILD WITH MODERN FACILITIES) MOST TRIBES HAVE HOUSING IMPROVEMENT PROGRAMS (HIP) WHICH CAN BE VERY SUCCESSFUL WHEN PROVIDED WITH A GOOD BOOKKEEPING SYSTEM. PAGENO="0248" 242 THIS TRIBE HAS BUILD THREE COMPLETE HOUSES FOR AN AVERAGE COST OF $29000. ATTACHMENT II ARE THE ITEMIZED TABULATION OF MATERIAL AND LABOR COST OF THE THREE HIP HOUSES BUILD COMPARED TO THE 60 UNITS BUILD IN THIS RE- SERVATION WITH HUD FUNDING IN 1981 WHOSE AVERAGE COST WAS APPROXIMATELY $60,00 PER UNIT. THIS RESERVATION WILL COM- MENCE BUILDING 60 MORE UNITS FOR A COST OF $56,000 + AT A LABOR COST OF $17,733 PER UNIT. THE HIP BUILD HOUSES HAVE AN INSULATION OF APPROXIMATELY R-3O VALUE AND HAVE TAKEN ABOUT 70 DAYS FROM START TO COMPLETIONS INDIAN TRIBES WHO HAVE NATURAL RESOURCES (LUMBER, SAND, ETC,) IN THEIR RESERVATION COULD WELL BE ABLE TO CUT DOWN THE COST OF MATERIAL USING THEIR OWN MATERIAL. DIRECT, SELF-HELP, MUTUAL HELP AND/OR INDIAN HIP PROGRAMS WOULD IN ALL PROBABILITY DELETE HUD INDIAN HOUSING AUTHORITIES THEREBY SAVING AN APPROXIMATE $814,000 WHICH COULD FINANCE AT LEAST THREE MORE UNITS PER YEAR UNDER THE MUTUAL, SELF-HELP OR HIP PROGRAM. THIS PROGRAM CAN BENEFIT ALL INDIAN TRIBAL HOUSING PROGRAMS. THANK YOU SIN2E~LY, ANSELMO VALENCIA AMA DIRECTOR PASCUA YAQUI TRIBE PAGENO="0249" 243 PASCUA YAQUI TRIBE ATTACHMENT I HUD HOUSING FUNDS GREAT CONCERN IS BEING FELT BY THE YAQUI TRIBE OF TUCSON, HUD HAS FUNDED ~8 RENTAL HOMES IN THE YAOUI RESERVATION, THE FUNDING, OF COURSE, CAME AT A TIME WHEN IT WAS MOST NEEDED, THE CONCERN IS FOR THE FUTURE OWNERSHIP HOUSING UNDER THE PROPOSED HUD FUNDING, THE HIGH UNEMPLOYMENT SITUATION IN THE YAQUI RESERVATION AND THE DESIRE OF THE LEADERS OF THE TRIBE TO AVOID HIGH HOUSE PAYMENTS FOR THE FAMILIES THAT MAY QUALITY FOR SUCH HOUSING HAS BEEN TAKEN INTO CONSIDERATION IN PREPARING THIS PRESENTATION, - UNEMPLOYMENT IN THIS RESERVATION IS AT A HIGH OF 37% AT THIS TIME AND THE INCOME PER CAPITAL IS LESS THAN $1,500. - THE AVERAGE FOUR BEDROOM HOUSE IS APPROXIMATELY $E01000 - PAYMENTS ARE DUE ACCORDING TO FAMILY INCOME, THAT IS DUE PROCESS, PAGENO="0250" 244 THE PASCUA YAQUI TRIBE IS IN THE PROCESS OF STARTING AN ADOBE MANUFACTURING YARD NOW THAT PIMA COUNTY IN ARIZONA HAS CODES. THE ADOBE MANUFACTURED BY THE YAQUI TRIBE WILL BE USED TO BUILD FUTURE HOMES FOR THOSE THAT WILL NEED HOUSING IN THE RESERVATION. A COMPLETE FEASIBILITY STUDY ON ADOBE YARDJ TECHNICAL, MANAGEMENT, AND MARKETING STUDY IS BEING CONDUCTED NOW. THE PLAN IS TO BUILD HOUSES ON A SELF-HELP BASIS WHEREAS INTERESTED FAMILIES MAY WORK WITH EACH OTHER MAKING THE ADOBES AND BUILDING THEIR OWN HOUSES, THUS SEEKING FUNDS FROM HUD, FHA, OR OTHER AGENCIES FOR ESSENTIAL MATERIALS ONLY, ELIMINATING CONSTRUCTION CONTRACTOR FEES AND PROFITS. THE SOUTHWEST INDIANS HAVE LIVED IN SUN-BAKED ADOBES FOR HUNDRED OF YEARS IN THE TUCSON AREA. THERE ARE SUN-BAKED ADOBE HOUSES WELL OVER ONE HUNDRED YEARS OLD THAT ARE STILL INHABITED. THE YAQUI ADOBE HOUSING WOULD BE INSULATED ONLY IN THE CEILING AND INTERIOR WALLS AND IT WOULD DELETE THE OUTER WALL SYTROFOAM INSULATION. IT IS THE DESIRE OF THE SOUTHWEST INDIAN TRIBES TO LIVE IN SELF-BUILD ADOBE HOMES WITH MODERN HEATING AND COOLING CONVENIENCES. SUCH ADOBE HOUSES WOULD NOT NEED THE ADDED COST OF INSULATION ON THE EXTERIOR WALLS. THE YAQUI TRIBE WOULD BUILD A MODEL HOUSE FOR INSPECTION. TWO FRAME HOUSES HAVE BEEN BUILD IN THE YAQUI RESERVATION BY OUR OWN CONSTRUCTION CREW AT THE COST OF APPROXIMATELY $26,000. FRAME HOUSES HAVE A GREATER FIRE HAZARD THAN ADOBE HOUSES. PAGENO="0251" 245 THE TRIBE BELIEVES THAT THROUGH SELF-HELP HOUSING, THE COST OF A FOUR BEDROOM HOUSE COULD BE BROUGHT DOWN TO APPROXIMATELY $22,000. THE TRIBE IS ALSO TRYING TO GET AWAY FROM THE CONVENTIONAL BUILDING AND GO INTO THE PUEBLO ARCHITECTURE. TEST ADOBES HAVE BEEN MADE WITH THE SOIL IN THIS RESERVATION AND WERE TESTED AT THE UNIVERSITY OF ARIZONA AND SURPASSED THE HUD REQUIREMENTS OF 300 PSI BY TESTING TO 480 PSI AND 930 PSI. SOUTHWESTERN ARIZONA IS A SEMI-ARID CLIMATE AND IDEAL FOR ADOBE STURCTURES. THEREFORE, DIRECT FUNDING TO THE TRIBE FOR SELF OR MUTUAL HELP HOUSING IS SOUGHT. I AM AVAILABLE FOR FURTHER DISCUSSION ON THIS SUBJECT. ANSELMO VALENCIA DIRECTOR PASCUA YAQUI TRIBE NOVEMBER, 1981 PAGENO="0252" 246 ATTACHMENT II HOUSING IMPROVEMENT PROGRAM SUB-CONTRACTORS TOTAL A&A Concrete 3,200.00 Eagle extermination 150.00 New Pueblo Electric 1,810.00 Independent Roofing Co. 994.50 Prestion Insulation Service, Inc. 582.40 Antonick Drywall Co. Inc. 1,575.00 Moreno Bros. Plastering Inc. 2,488.00 Ortiz Painting Contractor 1,250.00 Vasquez Cabinet Shop 1,960.00 Fiesta Floor Covering Center Inc. 1,259.85 Pima Sheet Metal 1,784.00 TOTAL $ 17~O53..75 VENDORS Lumber Country 239.28 Lumber Country 3,958.95 San Xavier Rock & Material 4621 Lumber Country 210.76 San Xavier Rock & Material 56.81 D & S Construction & Supply 292.75 Astro Blueprint co. , Inc. 11.12 Tucson Sand & soil 135.20 Lous Plumbing 255.42 K-Mart 20.31 Mountain Bell 3.13 J.B. Enterprises 9~QQ. TOTAL 6.57116 MISC. 2,362.41 TOTAL $ 25,987.32 MAN HOURS 3,204.00 $ 29,191.32 TOTAL PAGENO="0253" A & A CONCRETE PIMA SHEET METAL NEW PUEBLO ELECTRIC INDEPENDENT ROOFING PIMA INSULATION ANTONICK DRYWALL VASQUEZ CABINETS RUDY ORTIZ PAINTING FIESTA FLOOR COVERING MORENO BROS. PLASTERING LUMBER COUNTRY LUMBER COUNTRY SAN XAVIER SAND & GRAVEL LUMBER COUNTRY LUMBER COUNTRY ORCO LOU'S PLUMBING O & S CONSTRUCTION J.B. ENTERPRISES MOUNTAIN BELL P .0 . .4 2055 1034 1252 1203 1205 1227 1117 1364 1420 1257 P.O. 1127 2045 2114 1169 2127 1014 1021 2113 TOTAL 3,200.00 1,820.00 1,712.50 1 210 00 993.00 1,575.00 1,915.00 1 300 .00 1,259.85 2,488.00 17,473.35 TOTAL 106 . 49 2,842.83 258.38 1 , 155 . 46 347. 69 168.62 570 . 87 206.76 1 015. 90 3. 13 $6,675. 23 2,414.85 TOTAL $26,563.43 3,204.00 TOTAL 29,767.43 247 SUB - CONTRACTORS VENDOR VENDOR TOTAL TOTAL MISC. MAN HOURS PAGENO="0254" 248 SUB-CONTRACTORS New Pueblo Electric Pima Sheet Metal Vasquez Cabinets Calistro Estrella TOTAL 1,765.00 1,600.00 1,590.00 60.00 TOTAL $ 5,015.00 VENDOR P .0 1311 1339 1422 1918 VENDORS VENDOR Naughton Plumbing 1152 2148 15.61 375.44 San Xavier 1,372.93 Lumber Country 1167 239.20 Action Euipment 1183 237.68 Dorway Inc. 1155 176.39 San Xavier 289.44 San Xavier 1154 55.88 Smith Pipe & steel . 1183 1219 152.64 San Xavier Rock 178.22 Lumber Country D & S Construction Supply 1309 1242 1253 275.75 42.61 Smith Pipe & Steel True Value 1197 41.56 406.79 12TH Ave Rental 1156 127.64 True Value 1344 87.45 12TH Ave Rental 1338 26.12 True Value 1377 242.52 Sherwin Williams 1316 . 252.16 True Value 1425 1,300.41 Lumber Country 1426 1459 450.00 Pima Insulation 175.60 Orco Const. Supply J.B. Enterprises Sherwin Williams 1418 1362 1377 970.00 122.67 26.12 True Value 1317 190.13 Lumber Country True Value 1363 1911 56.74 66.72 Tucson Electric 1901 TOTAL 7,954.42 MISC. 1,296.94 MAN HOURS 9,712.00 TOTAL 18,963.36 PAGENO="0255" WKLY RATE NO. JOB DISCRIPTION HRLY RATE DLY RATE WKLY RATE x 3 WEEKS FOREMAN PLUMBER LABORER II LABORER II LABORER I LABORER I 1 1 6.00 5. 00 4. 10 4. 10 3. 75 3.75 TOTAL HOURS 48.00 40.00 32 . 80 32. 80 30.00 30. 00 240.00 200.00 164. 00 164.00 150. 00 150. 00 720.00 600.00 492.00 492.00 450.00 450.00 120.00 120.00 120.00 120.00 120.00 120.00 $3,204.00 720 HOURS PAGENO="0256" 250 ~~INTER TRIBAL Co UN~IL~K~ ARIZONA Comments on `Indian Housing Act of 1982 Prepared for The Interior and Insular Affairs Committee U. S. House of Representatives April lII, 1982 Tucson, Arizona 124 WEST THOMAS ROAD * SUITE 301 * PHOENIX. ARIZONA 85013 * (602) 248-0072 PAGENO="0257" 251 Comments on "Indian Housing Act of 1982" The Indian Housing Act of 1982 is an attempt to address serious problems of federal Indian housing policy. The proposed bill would: - Establish formal statutory authority for Bureau of Indian Affairs programs in Indian housing; - Formalize the BIA's Housing Improvement Program; - Create in the BIA an Indian Housing Finance Fund; - Establish an Indian Housing Loan Guarantee Fund. Positive Features of the Bill The proposed bill has several positive features. These include: - A clear and strong role for Indian tribal governments in overseeing Indian housing efforts on Indian lands; - Housing standards that can be appropriately applied to the cultural traditions as well as the economic needs of the tribes; - Housing programs that can be utilized by both very low-income families and middle and higher income families. Concerns with the Bill There are several serious concerns with the bill in its current draft that need to be addressed. The major concern is the potential endangerment to tribal trust funds and ultimately, the potential for endangering the trust status of Indian lands. These concerns, and suggestions for resolving them are discussed below. 1. Trust Funds Section 205 of the bill provides that: Notwithstanding any other provision of law, the Secretary is hereby empowered, as provided in this section, to attach any obligated or unobligated funds held by the United States in trust for the benefit of any Indian or Indian tribe. This provision has the potential to cause serious problems for Indian tribal governments. Under this provision, Indian tribes would risk losing their trust funds if housing payments are not made by individual Indians and the housing Agency is unable to make quarterly payments into the Indian Housing Finance Fund. This Section would subject tribal governments to consequences that are not applied to any other public housing authority in the United States. When non-Indian individuals do not make their payments to `public housing authorities, and those authorities do not make their payments, the federal governments does not confiscate the financial assets of corresponding city, county or other local governments. PAGENO="0258" 252 The potential threat of attaching obligated trust funds removes the security for tribal governments to enter into contracts for programs financed with trust funds, including economic development efforts. If obligated trust funds are attached, then the tribe would be unable to meet its obligations to contractors. If there is the threat of attaching obligated trust funds, con- tractors would be reluctant to enter into agreements with tribal governments. If individuals fail to make their housing payments, thus making it hard for tribal housing programs to make their quarterly payments, then the trust fudns of the tribe can be attached. Therefore, the individual defaults, but the entire tribe must pay for his or her failure. Only tribes that have trust funds are subject to this provision. There are no enforcement provisions for those tribes that have no trust fund assets. Thus this provision unfairly discriminates against tribes with trust funds. The concept of attaching tribal trust funds fails to recognize that different tribes have different economic situations. There are alternative methods for providing financial security which should be considered. These include: - Establishment of a "Default Fund" made up of a percentage of collections from all tribal programs; - Individual surcharges within tribes to cover the costs of those who fail to make payments; - Require mortgage insurance; - Denial of further housing assistance to tribes that default. These and other possible alternatives would provide the financial security sought by the federal government without risking the loss of tribal trust funds. Reasonable approaches to addressing the question of tribal housing financial management need to be explored. This bill has the potential for including provisions for improving tribal housing management. This bill allows for a role for tribal governments in overseeing tribal housing efforts. The relationship between tribal governments and the housing programs needs to be strengthened. There is a need for coordination between housing and other tribal efforts including human services and economic develop- ment. There is also a need for stronger coordination between Indian housing programs and the judicial and legislative structures of Indian tribes. This bill allows for one percent of the total funds appropriated under Title I and Title II to be used for training and technical assistance. This resource should be used to provide housing management technical assistance to tribal governments. This technical assistance should be designed around the needs of the tribal governments. Section 203(c) requires that the tribe include in its application for assistance under Title II a tribal ordinance designating or establishing a Tribal Housing Agency. This ordinance, in practice, should be a comprehensive tribal housing ordinance. The tribal housing ordinance should include a PAGENO="0259" 253 statement of tribal housing policy, tribal housing standards, eligibility for participation in tribal housing programs, penalties for failure to meet obli- gations, foreclosure procedures, and tribal enforcement procedures. 2. Trust Lands Another concern with the bill is the provision for sale of trust lands by the Secretary in Section 103. This Section provides that the Secretary may sell a house constructed or acquired with Housing Improvement Program funds, along with the land upon which it sits, if: 1) HIP funds, minus 10% per year, are reimbursed to the federal government, and 2) The tribe has been given the opportunity to buy the house. This presents a danger for~tribal trust lands. Say thirty houses are built with HIP funds, and for some reason, the Secretary decides to sell those houses. The tribe cannot purchase the thirty houses, so they are sold to someone else, along with the land. The tribe ends up losing part of its lands. This problem could be resolved if the word "land" in the second instance in Section 103 is changed to the word "house". Another solution would be to strike the words "sale or". Other Concerns There are other technical questions on the bill that need to be addressed in detail. The two concerns discussed above -- Trust Funds and Trust Lands -- seem to be the most serious problems with the bill in its current draft. These preliminary comments have arisen in discussion with elected tribal officials -and--indian -housing--peraonnel.~ --- - - --------- - --------- - - - - - - Inter Tribal Council of Arizona reserves formal statement on the bill until the membership has had an opportunity to further study the bill. PAGENO="0260" 254 ALL INDIAN PUEBLO COUNCIL msrno~~ OF DELFIN J. LOVAID, IRMAN APRIL 14, 1982 H.R. 5988 Mr. Q~airaxan and urairbers of the House Ccnmittee on Interior and Insular Affairs, ray naire is Deif in Lovato, I am Chairman of the All Indian Pueblo Council which is composed of the Pueblos of: Acana, Cochiti, Isleta, Jmrez, Laguna, Nanbe, Picuris, Pjjoaque, San Felipe, Sandia, San Ildefonso, Santa Ana, San Juan, Santa Clara, Santo Djmingo, Taos, Tesuque, Zia, and Zuni. I am accaspanied by: Mr. Den Montoya, Director of the Laguna Pueblo Housing Authority; Mr. Salarrnn Garcia, Director of the All Indian Pueblo Housing Authority; and, Mr. David Perez, Director of the Northern Pueblos Housing Authority. Also, Governor Gilbert Pena of Nairbe Pueblo is present. With the exception of Zuni Pueblo, these gentlaren are responsible for the planning, developirent, and construction of all HU1) Indian housing progranra in the other 18 Pueblos. Needless to say, these gentlensn also endure the frustrations and rrental anguish which cares along with the federal bureaucracy. I hope that the Canrrittee will allow these gentlanen the opportunity to aomrent and/or answer any questions you nay have. Please note that while rrnny ironths have been spent on salvaging Indian housing within HUt), ow have not had anple time to study scare provisions of H.R. 5988 to our satisfaction, and to adequately consult with all Pueblo tribes. We therefore, ask that we be allowed to submit additional testiinDny within the next 30 days. PAGENO="0261" 255 TESTIM3NY: H.R. 5988 Delfin J. Lovato Page 2 Mr. Chairman, I must cczmend you and mwnbers of the Interior Caanittee staff for your efforts in developing a bill which not only addresses Indian housing, but also provides an alternative approach to complex, but much needed services to the Indian people. Having worked as a housing director, I can appreciate the difficult task which is before us all. Since the objective of this Administration is clearly carrnitted to terminating Indian Housing Programs, irrespective of the devastating impact such action will have on the health and social well-being of Indian people, we must find an alternative to continue a federal housing assistance program for Indians. After limited consultation with tribal governments and the Indian Housing directors in our State, the following is a sumsary of our concern and recaiTnendations on HR. 5988. INTRODILTION: Section 3 - Definition: 1. Adjusted Family Incorre: While we strongly support the $1,000 deduction for each merrber of a household, plus the $3,400 or mare deduction, we strongly feel that all deductions that are presently available in HUD Regulations should also be included in H.R. 5988. MUD presently allows deductions for child care, transportation, training, etc. 2. Miniisum Standards: a. The tribal governments, through their tribal housing authority should determine what constitutes minimum standards for decent, safe, and sanitary housing on a given reservation. Adobe and other native products have produced safe housing for Pueblo Indians before a white man set foot in North America. Adobe houses in our Pueblo comsunities, several hundred years old,continue to provide shelter to our people. Still, Govern- nmnt regulations and requirements established for suburbia USA ,virtually prohibits the use of native rrmterials in HUD construction. PAGENO="0262" 256 TEHflMJNY: H.R. 5988 L~lf in J. Lovato Page 3 h. H.R. 5988 should provide for the recognition and use of related tribal codes as part of the minimun property standards. C. Lastly, the Tribal housing agency, and not the BIA should decide the size of hcines to be built based on econcinics and comann sense rather than having the family size (only) dictate this irrportant factor. TITLE I - INDLA~N IfltJSING IMP30VEMENI P1DCaAM: This section is basically an expansion of the present BIA Hcine Improvmrent Program to include new construction. While the present Housing Improverront Program has corked well on our reservations, the most limiting factor has been funding. Unless adequate funding is provided for this Section, the addition of new construction will only vacillate the project even more. SECIION 102: Renovation and New Construction - Insurance SUBSECIION b: Provides that insurance for renovation must be required unless waived by the Secretary. Insurance aflocations, appraisals, and papnsnt on repairs and renovation are extrerriely difficult to ascertain and we thereby reccimEnd that insurance be required only on new construction. SIt3IC~ 103: Eliminate portion. SECIION 104: Eliminate portion. SECIICI~ 105: Appropriations H.R. 5988 authorizes a funding level of $30,000,000. We strongly recaimund a funding level of $100,000,000. As stated before, the present BIA-HIP program provides for repairs and renovation at a funding level of approxinately $23,000,000; H.R. 5988 now proposes to expand this program to allow new construction as well as acquisition of standard housing. Additional funding is necessary. // / / PAGENO="0263" 257 TCTTIMJNY: H.R. 5988 Delfin J. Lovato Page 4 TIThE II - INDIAN HOUSING FINANCE SEED SECTICX~ 203: Submission of Application We strongly recomrend that the Act provide that the Secretary shall have a iraxiinum of 30 days upon receipt of application to reject the application. Otherwise, approval will be autcmatic. SECTION 205: Attachment of TribalJlndividual Trust Funds We are strongly opposed to the attachment of tribal or individual trust funds, or inclusion of this section in H.R. 5988. We are not aware of any other unit of government who participates in a public housing project which is subjected to this penalty; this requirement is discriminating in that respect. Secondly, we strongly feel that adequate penalties can be set up by the Secretary as part of the project agreement. A penalty which deprives a tribe of any future housing until an acceptable level of rent collection is reached, is much core acceptable. Lastly, we strongly feel that all tribes have sufficient means by which to handle the high incidence of delinquent rents, through tribal councils and tribal courts. SECTION 206: Initial Fu~i~ç~4p~g SUBSECTION a: This limits tribal housing agencies to a start-up cost of $50 million or 2% of total project costs. We strongly reconmend that a ~staft-up cost is much core realistic. This is the present rate on HO) contracts. We further reconuend that the total anount of the project cost be provided to the tribal housing agency as soon as final project approval and construction begins. Payments can then be made by the housing agency directly to the contractor based on percentage of caspletion. Submissions to the Secretary for payment would be too untimely and costly to all concerned. SUBSECTION c: The Secretary should be required to assure conpletion of a project within one year of contract execution. SECTION 207: Submittal of Final Plans and Specifications We strongly recomnend that the Secretary be required to approve the final plans and specifications no later than 30 days after submittal by the tribal housing agency, and as provided for in Section 10, Subsection 9. PAGENO="0264" 258 TESTIMHY: ILR. 5988 Dalfin J. Lovato Page 5 ~HTI09 208: Acquisition of Pro~perfl~ ~e strongly reconmend that any land purchased for the benefit of a tribal housing project will beccme part of the tnist lands of the tribe. ~E'LI0N 209: Rent Schedule SUBSELTI(1 b: This section should provide or establish a rate of no mere than 15% of a household~ adjusted family incaee. This limitation on rent collection should be contained in the regulation, not in the Act. SUBSH~f ION c: Is an interference into the relationship between tribal govern- rrents and its nastership, and should be eliminated. SECIION 211: Papeent of Rent to U.S. GDvernment by Tribal Housing Au~q~tv H.R. 5988 requires the agency to deposit residual payments on a quarterly basis. We strongly reccimend that the agency be allowed to n~ke deposits only once a year to allow the agency to generate income for renovation and repairs or cover other administrative costs out of investments of this fund. SUBSB~f ION c: Provides that an agency cannot fall below 90% collection rate without being penalized. We strongly recomnsnd that the 90% require- ment be changed to 50%. We further recaurend that the `~0%~rate be flexible to acconmime for the high unenployment rate on rrost reservations. We further reccerrend that the 50% rent collection rate may be further reduced by the Secretary after analysis of the mecial-econcelic conditions on a reservation. SEC~TIC~ 212: Lbnitoring and Inspection SUBSECIION b: Requires IHS to insure adequacy of agency plans and inspections. We strongly reccimnend that this responsibility be limited to the Agency to prevent duplication. PAGENO="0265" 259 J~I~Y: H.R. 5988 Deli in J. Lovato Page 6 SECTION 213: Bonds We strongly recarmnsnd the inclusion of payment bonds. SECTION 215: Bidding Procedures We strongly reccimwnd that H.R. 5988 allow for negotiated contracts and that the agency have the discretion of utilizing Davis Bacon wage scales, or other prevailing scales in the area. Economic and social-economic stimulation is an important factor. III - THE LOAN GUARANTY FUND 1. There is definitely a need for a loan guaranty program to meet the needs of the scwawhat affluent Indian families on Indian reservations who otherwise cannot finance their homes because, asong other problmus, of the legal status of Indian lands. This Title represents a good start in meeting this need. 2. In order to encourage an influx of private ironey on Indian reservations for home building, the Government guaranties should be very close to lOC)% in every instance. 3. Consideration should be given to omitting the realty as a factor in the guaranty arrangement. Tribes look unfavorably upon strangers owning property within their reservations, as the Secretary would in case of default as conteuplated by this Bill. The Secretary would likely find it unfeasible to dispose of the real estate to any economic advantage following a default. A provision could be made authorizing an agreement whereby the Tribe would place another in the realty, and the new owner's menthly payments could go toward paying off the Government. The Government, of course, could continua its recourse against the original hcmuowner. In short, the foreclosure systom envisioned by the Bill should be avoided. 4. Consideration should be given toward a subsidy or other device to reduce the rronthly payment which a homeowner would have to nske under Title III. Those menthly payments for a standard 3-bedroom, 2-bathroom dwalling could approach $1, 000 per rronth. This represents a substantial gap between the payment obligations of a Title II participant on one hand and a Title III participant on the other. Title III should recognize the undeniable fact that because of isolation and other circurrstance, private Indian housing is extrmrely expensive on reservations. PAGENO="0266" 260 Testimony on Indian Housing Act of 1982 for the Inter-Tribal Council of California, Inc. by Executive Director, Eugene W. Pasqua and Ben Roberts of the Santa Rosa ~Pr-ibe to the House Interior Committee at Tucson, Arizona. APRIL 14, 1982 Mr. Chairman and Committee Members: On behalf of the Inter-Tribal Council of California, Inc., representative of forty (40) federally recognized tribes and sixty (60) Indian organiza- tions, we will give our general support on the proposed Indian Housing Act of 1982. Many of the tribes in California have not received the Bill as of this time. I am sure more written comments will be sent to the Committee from the California tribes at a later date. We would like to thank the Committee for providing us the opportunity to present our concerns regarding the federal Indian Housing program, it's future and the potential impact of the proposed new program on Indian tribes in California. (1) The federal Indian housing effort has always been inadequate in Cal- ifornia and a new and better coordinated program is greatly needed. In- dians living on reservations have had to rely heavily on federal funding and it has been further complicated by the fact that many of our tribal groups are either terminated or unrecognized and have not been eligible for federal assistance. The proposed legislation is greatly needed. A 1980 summary report by the BIA indicated that of the 11,092 housing units on California reservations, 7,964 were substandard and that 8,046 new units were needed. We particularly like the fact that the proposed program provides for grants directly to individuals as well as to tribal housing agencies. However, a few areas concern us. PAGENO="0267" 261 Testimony by E. W. Pasqua and B. Roberts Page 2. (2) Many California tribes do not have the resources needed to adminis- ter and manage such a program. We anticipate that many smaller tribes will turn to organizations such as ours to help them and we would like to be assured that we will be able to help when asked to do so. We approve of Section 215 which calls for formulation of an Indian Affirm- ative Action Plan, but we would like to see guidelines spelled out in the legislation. It is our behief that Indian contractors should be used where it is possible to do so, and that a separate program is needed to train Indians in the building trades. One area that disturbs us is that the program is to be administered by the Bureau of Indian Affairs. We understand that great effort has been made in Title IV to insure that BIA will administer the program as Congress intends. We believe that the requirements and restrictions of Title IV are good, but that they do not go far enough. At a time when federal pro- grams are being cut back because it is believed that such programs are too large and costly, we would like to see further controls put on BIA to ensure the success of the program. We view the fact Congress will re- view administrative expenses of the Office of Indian Housing yearly as a positive step, but we still have fears that the program may become un- popular if administrative costs are considered to be too high. You are no doubt aware of BIA's reputation when it comes to it's ability to ad- minister and coordinate programs. PAGENO="0268" * 262 Testimony by E.W. Pasqua and B. Roberts Page 3. We would also like to be assured that the housing to be built will not add to the problems of the reservation. In the past, such housing has often been built with each unit right next to the other. Though it may be cheaper to build that way, it sometimes creates urban problems not found on the reservation before such housing was built. It is understood that a tribal housing agency will have some say in how such housing is to be built and that may solve some of the problems, but we feel that every effort should be made to provide housing that will truly add to the qual- ity of life on the reservation and not create a new set of problems. Other questions are: Section 209 (b) (3) states that a family shall be responsible for maintenance. Yet, in Section 210 (3), minumum monthly rent payments provide for a contingency reserve for maintenance. It would seem that low-income families may find it difficult to come up with the `extra' cost for maintenance that they have already paid for in their rent payments. This may need further explanations. Under Section 211 (c), if a tribe defaults on it's quarterly payment and becomes ineligible for further housing assistance, what provisions are available to assist those individual families who have met and maintained their contract obligations and will continue to need services? We understand the need for accountability and even possible attachment of trust funds if that becomes necessary. However, we know the difficulty we have had in California in obtaining quality housing and we hope that you will consider our remarks today. If any changes are made in this legislation, we would hope that you con- sider that it will be necessary for small California tribes to form a PAGENO="0269" 263 Testimony by E.W. Pasqua and B. Roberts Page 4. housing consortium to provide a more feasible and cost effective method meeting the housing needs of it's members. And we would also like you to remember that we consider control of such programs by the tribal coun- cil as necessary. As a whole, the Bill provides Indian people with a continuing commitment from the federal government to assist them in addressing the inadequate housing conditions that exist on reservations. We support and will work with you for the passage and enactment of the "Indian Housing Act of 1982". Thank you for your time and consideration. PAGENO="0270" 264 TESTIMONY of the COLORADO RIVER INDIAN TRIBES Regarding the Indian Housing Act of 1982, H.R. 5988 The Colorado River Indian Tribes welcome the attempt by Representative Udall and others to provide for a continued Indian housing program in the face of proposed cutbacks by the present administration. However, the Tribes find it unfortunate but necessary to oppose the present bill, H.R. 5988, in its present form. Were amendments to be made to the bill along the lines outlined below, the Tribes would strongly endorse the bill. The Colorado River Indian Tribes' opposition to the bill stems from those provisions which have concerned many other tribes -- the provisions in Sections 205 and 211, as well as those in Section 103. As provided in Sections 205 and 211, the Secretary would have the authority to attach tribal trust funds to secure defaults in the payment of amounts due to be deposited in the residual receipts fund under Section 211(b). This provision makes no distinction as to whether such default is due to the fault of the agency, or to the inability of the agency to collect amounts due from the participating families. Were such attachment authorized only where default is due to agency mis- management, such attachment perhaps would be reesonable, but it is surely unfair and unwise to require the tribes to be guarantors of amounts due from families, particularly where the tribe itself has no right of recourse against the trust funds of defaulting families, nor even receives any equity in the homes, payment for which it would be required to guarantee. Even if default of the agency were due to agency mismanagement, however, the Tribes feel that remedy for such default is adequately provided by the bonding requirements of Section 213(a).. It is unclear whether Section 103 gives the Secretary the authority to sell trust lands without the consent of the landowner, whether it be the tribe or an PAGENO="0271" 265 ~fldividua1 allottee. If this Section only adds increased burdens upon the. Secretary before approval is given for sales otherwise allowed under existing law, the Colorado River Indian Tribes would have no objection to the Section, except an objection to the sale of trust lands in general. If this is the case, it should be made clear in the bill, as many have already interpreted this Section to give the Secretary authority to sell lands. It would be tragic if it were to be so read by the Secretary and the Bureau of Indian Affairs. The Colorado River Indian Tribes also note that certain provisions of the bill do not adequately protect the right of tribes to enact governing law within their respective territories. For example, Section 103(b) provides for liens upon fee lands to be recorded under State law. While this is certainly proper where lands are located outside of tribal boundaries, within tribal territory recordation should also occur pursuant to any tribal recordation requirements which may exist, as well as under State statutes. Also, under Section 307, guaranteed loans are restricted to those made by financial institutions subject to supervision by agencies of the United States, a State or the District of Columbia. No mention is made of institutions which may be regulated under tribal law, rather than State law, as would be the case within tribal territory where tribal law regulating such institutions may exist. Were a comprehensive scheme of tribal regulation to exist, the Colorado River Indian Tribes take the position that tribal and not State law would govern. This concern is also applicable to Section 302, which provides that mortgages may be executed pursuant to 25 U.S.C. section 483a, which provides that the law of the State will govern mortgages, even though it is Indian trust land which is being mortgaged. In line with the above stated objections to the bill, as well as other minor problems, the Colorado River Indian Tribes recommend that the bill be amended as follows: 18-934 O-83---18 PAGENO="0272" 266 1) Section 205(b)(l) should be deleted; 2) Section 205(a) should be amended to provide only for attachment of trust funds of defaulting individuals; 3) Section 211(c) should be deleted; 4) Section 103(b) should be amended to read: "103. (b)(l) Where a house constructed, acquired, or repaired pursuant to Section 102(a)(2) or (3) is located on land outside the boundaries of tribal territory, or upon fee land within such boundaries, the Secretary shall insure that a lien upon such land is recorded under appropriate State law, noting the encumbrance imposed by Section 104 of this title. (b)(2) Where a house constructed, acquired, or repaired pursuant to Section 102(a)(2) or (3) is located on land within the boundaries of tribal territory, the Secretary shall insure that a lien upon such land or house, as may be applicable, is recorded under appropriate tribal law, noting the encumbrance imposed by Section 104 of this title. 5) Section 307 should be amended to read in part: "a financial institution subject to examination and supervision by an agency of the United States, a tribe, a State or the District of Columbia . . 6) Section 302 should beamendedto provide that liens and mortgages are to be governed by existing tribal law, or by State law if no applicable tribal law exists; 7) Subsectioun (1) and (5) of Section 3 should be amended as follows: Subsection (1) should read: (1) `adjusted family income' means adjusted gross income as stated family's most recent Federal income tax return, less $1000 for .~ber of the household, plus a further deduction of of $3,400 unt of itemized deductions from the family's most recent Fe~ tax return, whichever is higher." This will qross income reflects all standard "above the PAGENO="0273" -267 line" deductions, as well as those "below the line." Subsection (5) should read: (5) `Indian' means a person who is an Indian as defined in Section 19 of the Act of June 18, 1934 (48 Stat. 988; 25 U.S.C. section 479)." This change is made because the definition is otherwise redundant, as 25 U.S.C. Section 479 already includes all members of Indian tribes, unless "member of an Indian tribe" is deemed to include members of non-federally recognized tribes, in which case that should be specifically stated. Although the Colorado River Indian Tribes feel that the intent behind this bill is admirable, and that a housing bill is imperative, this bill contains flaws which require opposition to the bill. Were the bill to be amended along the lines stated above, as well as to remedy the concerns of other tribes and Indian organi- zations, the Tribes would provide their wholehearted support for the bill. Because of the lack of time which has been provided to study the bill before hearings were scheduled, there may be other provisions of the bill which deserve cement. The Colorado River Indian Tribes therefore reserve the right to submit further comments at a later date. Such comments, if any, will be submitted at the hearing in 1Iashington, D.C. on April 29, 1982. On behalf of the Colorado River Indian Tribes, I thank you for this opportunity to present this testimony and thereby state our views. PAGENO="0274" APPENDIX III SATURDAY, APRIL 24, 1982 ADDITIONAL MATERIAL SUBMITTED FOR THE HEARING RECORD TES~IM3NY OF VIRGINFA TOEWS, EXECUTIVE DIPECIOR NORTHERN CHEYENNE HOUSING AUTHORITY ~EOPE THE ~1v1ITTEE ON INTERIOR AND INSUlAR AFFAIRS FIELD HE7~RINGS ON H.R. 5988 RAPID CITY, SOUTH DAKOTA ~APRII~ 24, 1982 "INDIAN HOU~ING ACT OF 1982' REVIEI~ED AND ENDORSED Th': Allen Rowland President Northern Cheyenne Tribe (268) PAGENO="0275" 269 NORThERN CIi1~ENNE JICUSING AUTHORITY P.O. Box 327 lame Doer Montana 59043 My name is Virginia Tomis, Executive Director of the Northern Cheyenne Housing Authority, Lace Deer, Montana. Mr. Chairman, and rmnithers of the Cairnittee on Interior and Insular Affairs, it is a pleasure to be invited to ccxrment today on the Indian Housing Act of 1982. Receiving good news in an era of so much to the contrary, this bill is a source of hope fran your Camiittee who are taking an active part in solving the persisting need for a large supply of decent, safe and standard housing for Indian caimunities.. The Deparirnent of Housing and iJrban Developeant (HUD) has been the vital resource in coating Indian housing needs over the past twenty years. This special program has been destined for extinction since the early 70' S and received the final blow when Philip Abrams, General Deputy Assistant Secretary for BUD testified before your Camnittee on March 4, 1982, when he said, `Our actions regarding Indian housing were taken because of the high develojxnent costs, excessive Federal requireirents, management problems and the conseauent need to initiate a more effective and less costly Indian housing prcgram." Despite HUD'S inadequacies, approximately 40,000 units were developed for American Indian tribes nationwide. Though progress has been made, Lower than half of the targeted 90,000 new units have been achieved nationwide. For the Northern Cheyennes this translates into 648 families in desperate need of housing, not to mention those on the verge of needing housing or the needs of new family formations, which the Tribe and the Housing Authority are incapable of servicing. `lb have the only significant Indian housing prcxjrsrn `wiped out' in a poison pen letter to PAGENO="0276" 270 the Office of Hanagarent oral Budget tying an emotional bond between the Deparbeant and the Adrrdnistration accelerated panic amorq the applicants on the ever lengthening waiting list at our Housing Authority. BUD has provided 523 hares for our people yet there are still 700 homes irest of which are severely over-craeded, sane having no source of heat except for a plug-in electric type heater - if the hare even has electricity; and some in critical need of repair beyond the financial capability of the families. Therefore, the need persists for a large supply of warm, standard and uncrosded shelter. We caerrend your Comnittee and staff for developing a caiprehensive housing bill taking all levels of family income into consideration. We have reviewed H.R.5988. The nunber one ccamendable feature is it seeks to eliminate a contribution to the Federal deficit. Your Caimittee should be getting love notes from the Atranistration for such an heroic effort instead of poison pen letters! Other caiieendable features in coeparison to bondage under HUI) are: 1. It provides a cczrprehensive housing program with less federalism and less federal control 2. It provides for greater flexibility for Tribal leadership and Tribal control and encourages cli'matic and cultural design of of units, a cost effective delivery system with built-in manage- ment controls, accountability and prometes local flexibility in decision making. 3. It's requirements provide for minirrel need of technical assistance and allais an accounting system that any Certified Public Accountano would understand as opposed to BUD's conplicated systng that even they don't understand. PAGENO="0277" 271 4. It provides for standard housing for all incare levels including substantial rehabilitation and acquisition of new or standard housing. 5. It eliminates the hassel of Thibes dealing with 16 Congressioal Ccamittees as it is nc~ with the BUD Indian programs. Not only would the enactment of this law reduce that nunter to six Camsittees but would put the housing program in Conmittees that traditionally deal with the affairs of Indians. 6. It dove-tails and coordinates only two Agencies - the Bureau of Indian Affairs and the Indian Health Service instead of the non- functioning, complex and currbersorrt Thi-Agency requiremant under BUD. 7. It allcws each Tribe to carry out it's ci~n responsibilities and when it does not, only that Tribe is given due-process without penalizing other Tribes. 8. It mandates, without fiscal limitation, funds under each Title to carry out related housing activities. While the above are only a few of the ccsirrendablo provisions under the proposed Housing Act, we do have sase very major concerns. These are: 1. Section 103. Land issues under this section should be left for each Tribe to govern and should not ho subjected to the Secretary's wisdcm and control. Tribes should never have to lose control of their trust status land for this Housing Act or any other program. 2. Funding should be assured for a minimum of 5,000 units per year under Title II. We have qreat concern the way bite bill rcc~is - It PAGENO="0278" 272 says that only after all administrative staff, related administrative expenses and technical assistance to tribes and involved families aro deducted fran the annual appropriation, the rest of the money will be allocated to qualified tribes for housing related activities under the Act. Before this bill is passed, we request the Secretary `s estimate budget shoring maximum Administrative expenses and the maximum number of units particularly under Title II the money will provide. We fear that annual allocations could provide more jobs and related expenses within the bureaucracy than housing under the Act. 3. A system rrrust be established for program implementation at the Secretary's level for the rule making process. Such a ccnueittee should involve not less than five field personnel (grass roots Tribal members) knorledgeable in Indian housing and financing. We don' t want to get caught up in reams of worthless regulations that don't apply as we are nor under the BUD program. 4. Section 209 (b) (2), "Contract" requirement of 20% of the adjusted family income as monthly payment should be deleted and addressed in the rule making process to insure flexibility during the 25 year contract for payment as the econany rises and falls. This is a serious part of the* Act and must be given great consideration. The Northern Cheyenne Tribe has given considerable thought to the bill and are ready to offer suggestions and improvements to ensure a workable program. Wnile the Northern Cheyenne Housing Authority still supports the existing (?) HUB assisted Indian programs, in their present form, we would alno support H.R. 5988 provided major revisions such as those outlined by President PAGENO="0279" 273 Allen Roulanci, of the Northern Cheyenne Tribe, would be incorporated in the Act. In conclusion, we also riced assurance that the intent of this bill won' t fade into oblivion within a short time because of frightening words found in section 203 (b) ". .. .subject to the availability of appropriations,...'. Thank you for your due consideration of these comoents and requests in behalf of the 648 Northern Cheyenne families who desperately need decent housing and for those about to declare their need. Sincqrely; ~t%4 -A~' North~rn Cheyenne Housing Authority Board Floyd Waters, Chairman Joe Walks Along, Vice Chairman Kenneth Beartusk, Secretary Treasurer Herbert l3earchum, Corrmissioner Llevando Fisher, Carmissioner Taii Rockroads, Jr. Canmissioner Virginia Toais, Executive Director PAGENO="0280" 274 TESTIMONY ON THE iNDIAN HOUSING ACT OF 1982 SUBMITTED BY THE OGLALA SIOUX TRIBE JOE AMERICAN HORSE, PRESIDENT On behalf of the Oglala Sioux Tribe, I wish to express my appreciation for this opportunity to present testimony re- garding the house of Representatives Bill HR. 5988, `The Indian Housing Act of 1982". My name is Joe American Horse and I am the President of the Oglala Sioux Tribe. The Oglala Sioux Tribe is the second largest tribe in the United States with an on-reservation population of 13,500 members. The Pine Ridge Indian Reservation covers approximately two [2] million acres and is located in southwestern South Dakota. The 1981 Housing Inventory compiled by the Bureau of Indian Affairs showed that one-third of the existing housing units on the reservation are substandard and there is an immediate need for 2,500 additional housing units. I am pleased that the Congress of the United States has seen fit to express its special relationship with the Indian Peoples and Tribes of this Nation through the legis- lative effort outlined in House Bill 5988. The proposed legislation provides a framework within which sorely needed housing requirements can be realized while maintaining the spirit of local Indian self-determination. However, I feel there are some areas of the Bill requiring more clear defini- tions, changes in language, and additions, which I will address following the format of the Bill: Sec. 3(1) I feel there must be provisions developed to consider the rancher, farmer, fisherman, artisan, or other self-employed businessperson so the gross sales of his busi- ness are not used to determine his income, thereby creating a class of persona who are unfairly charged. The need for housing on the Pine Ridge Indian Reservation cuts across all economic categories and I feel we must be open to meeting those needs. PAGENO="0281" 275 Sec. 102(a)(3) I recommend the Committee consider the addition of the words "and or used" to be inserted after "new" and before "standard housing" thereby all lowing the Tribe or Tribal Housing Agency expanded options in developing alternatives to meeting housing needs. The option to pur- chase housing developed under other funding authorities should not be limited, particularly Ia view of the very limited refinancing opportunities available on reservations. Sec. 203(b)(2) I recommend the addition of language requiring technical assistance for Tribes and Tribal Housing Agencies not meeting a determination of the administrative, management, and accounting capability to implement a proposed housing project. Without such protection and direction, the potential for bureaucratic arbitrary abuses will be unchecked. I further recommend that the involvement of Tribes and Tribal Housing Agencies be required In establishing the details of funding criteria. Sec. 205(a) I recommend the development of language protecting the lands of the Tribe as well as any funds obli- gated to the purchase of lands or the repayment of loans for the purchase of lands. The Oglala Sioux Tribe has the income from many units of acreage assigned for the repayment of loans to the Farmers Home Administration. I do not not feel that it would be appropriate to jeopardize the standing with a federal agency or even the status of lands by leaving the language as is currently in the Bill. Sec. 205(b)(1)&(2) I recommend the development of language requiring due process through Tribal Courts and offering full faith and credit to Tribal Courts and judicial systems. I feel this provision is necessary to prevent ad- ministrative laxity and abuse under the current language in the two provisions, and to continuing meeting the direction of numerous Court decisions regarding due process requirements. PAGENO="0282" 276 Sec. 205(d) I feel a thirty day period may be too short a time period for due process principles to be served and recommend a ninety day period to pay the amount in default and to provide the option to negotiate a payment plan. Sec. 206(a) I recommend there be added after `Provided, That this initial disbursement shall not exceed $50,000 or two per cent of the total project." the statement `or whichever is greater". This addition will insure that an Agency developing a large project has adequate resources to pruperly plan and execute such projects. Sec. 211(b) I feel the Tribe and Tribal Housing Agency should have the option of making annual payments to the govern- ment. This method will allow the Tribal Housing Agency to invest the funds and give a larger amount to the Government on an annual basis. Sec. 401(a)(b)(c) I recommend there be included a pro- vision limiting administrative and employee costs with the Office of Indian Housing Programs to an amount not to exceed two [2] per cent of the total appropriations, to insure that the costs of administration does not cut into the program. Too often we have seen the bureaucratic structure grow unchecked while the people for whom Congress appropriates monies receive less and less services. Finally, because we have experienced, time and time again, the administrative agency responsible for promulgation of rules frustrate, ignore and outright violate the intent and spirit of Congressional action with the rule making process, I respectfully request that a provision be developed and inserted to insure that protection be provided. While there are distinct principles of separation of powers, the Administration has not always acted in the best interests of the law, and it is incumbent upon Congress to insure the creative use of the checks and balances which exist to require full implementation of the law, in its full spirit and intent. To this end, I recommend that Congress set a specific time frame for full implementation of PAGENO="0283" 277 of the Act, consistent with their appropriations authority, and require a representative Task Force to be involved in the rule formulation process. In my review of FI.R. 5988, I found the Bill to meet many standards and qualifications necessary for fulfilling the pressing housing needs on the Pine Ridge Indian Reservation and which are concerns of the Oglala Sioux Tribe. I feel the Bill will allow more control and accountability in the process of providing safe, decent and sanitary housing to Indian people, and I support this concept. While we have had many problems with the Bureau of Indian Affairs and the Department of the Interior in the past, we feel their records of advocacy for Indian peoples and Tribes is a solid one and they can work with us to resolve the housing needs which now exist on reservations. I hope the adoption and implementation of the "Indian Housing Act of 1982" will effect a streamlining of the congressional process now being used by the federal Indian housing authorities under the Department of Housing and Urban Development. I hope my concerns were stated in reasonable but concise detail to be of service to the hearing team and the committee personnel. Again, on behalf of the Oglala Sioux Tribe, I wish to thank you for this opportuniLy to express my concerns and offer my ideas and support. I hope we can continue to work together to resolve the housing needs existing on my, and other, Indian reservations. Thank you. PAGENO="0284" 278 COMMITTEE ON INTERIOR & INSULAR AFFAIRS STATEMENT OF DARRELL WADENA, PRESIDENT MINNESOTA CHIPPEWA TRIBE CASS LAKE, MINNESOTA Mr. Chairman and Members of the Subcommittee: My name is Darrell Wadena; I am President of the Minnesota Chippewa Tribe, comprised of six distinct bands (White Earth, Leech. Lake, Nett Lake, Fond du Lac, Grand Portage and Mille Lacs). Accompanying me is Mr. George V. Goodwin, Executive Director of the Tribe. We are opposed to the bill as proposed. The concept of providing for Indian Housing through a mechanism other than the Department of Housing and Urban Development has merit and could be supported. With the reality of the administration's pOsition to eliminate public housing, we must explore other options for Indian Housing. It has long been argued that the Public Housing system, through the Department of HUD, was inappropriate for Indians and was thrust on us as an after thought. This was done without consideration for the consequences of its complex and inappropriate delivery and management systems. These systems were developed for large metropolitan housing authorities with large trained staffs. Now, after years of struggling with this cumbersome system and winning congressional and administrative consession, we have achieved success in the establishment of an office of Indian Programs within the Department (HUD) that is responsive to our circumstances. Now, because of an unconcerned, insensitive President, we are faced with loosing our housing Program. We are strongly supporting the continuation of the Public Housing Program for Indians presently being delivered by the Department of HUD Office of Indian Programs. In the event that the administration does achieve its inhuman goal of dismantling the Public Housing system, we could support the proposed housing program being considered here today. This bill could be acceptable if the following amendments are made to it: I - The first and most significant of our concerns regards~ Section 205 of Title II - where the Secretary is proposed to be impowered to attach any obligated or unobligated funds held by the United States for the benefit of any Indian or Indian Tribe. PAGENO="0285" 279 This proposition as presented is an insult to the integrity of Tribal Leaders and the people they represent and is nothing more than another attempt by our enemies to terminate us. It is also apparent to us that the in- stigators of the inclusion of this section in the bill do not trust us or believe we can manage the proposed housing funds. The Minnesota Chippewa Tribe,, in cooperation with the State of Minnesota, has developed a housing program which we are proud of and which is somewhat similar to that being proposed in Title II of this bill. Since the programs inception in 1976, the State of Minnesota has appropriated over eleven million dollars ($11,000,000) for the housing needs of the Minnesota Chippewa Tribe which have been loaned to us without the intolerable restrictions the United States Government is proposing here. Over the five year period that we have had State funding we have developed three hundred and Seventy houses on scattered sites without any loss of the principle sum loaned to us. The United States Government, within its trust responsibility, should be responsible for adequately housing its Indian people. Yet, while proposing to support Indian self- determination with resources far beyond the magnitude of the State of Minnesota, it cannot supply these needs without overly restricting Tribal Leaders with Section 205 of this bill.. I implore this distinguished body to take a look at and a lesson from the State of Minnesota and treat us as fairly as the Minnesota Legislature and Governor have. To make this Bill acceptable to Tribal Governments Section 205 of Title II of this Bill, with its supporting Section 209 #4 and 210 #3 must be stricken. It is our belief that there are already sufficient safeguards within this Bill to assure the programs integrity. II - We also question the administrative capability of the Bureau of Indian'Af fairs to develop and implement a program of this magnitude. We are continously confronted with the Bureau of Indian Affair's inability to administer and are extremely hesitant to allow them the opportunity to delay and mismanage something as important as this proposed housing program. There are many examples of the Bureau's inability in this area. PAGENO="0286" 280 It is our belief that if this Bill is implemented as it is proposed the Bureau of Indian Affairs could not develop the staffing capability anywhere near that of the existing Office of Indian Programs within the Department (HUD) and, if history repeats itself as it always does with the Bureau of Indian Affairs, we will never achieve the delivery and management capabilities that are proposed to be eliminated. We are proposing that if the Department (HUD) Public Housing programs are eliminated, as the Administration is proposing, that the existing Office of Indian Programs staffs, dealing with development of Indian Housing, be folded into this new program. It would be a shame to lose this efficient supportive staff capability. III - We believe this Bill should also be revised to limit the Secretar4~ps discretionary powers over the proposed housing. This Bill, as proposed, is in direct opposition to the principle of Indian Self-Determination and herein is striving to limit the elected Tribal Leadership role, while strengthening that of the Secretary. This question must be addressed and revised throughout the entire Bill. At a minimum, determination, when made, must be made by the Secretary or his designates in consultation and with the approval of the Tribal Government. We see that there is too much leeway here for Bureau staffs to make determinations which are not in line with the Tribal Governments' wishes. - There are also references throughout the Bill that Include the Indian Health Service as responsible for providing facilities and assistance. We believe that these references must be stricken and the water and sanitation responsibility should be incorporated into the Housing Bill and provided for with appropriate authority being transferred from the Indian Health Services appropriation. We have too often encountered administrative incompetency and runarounds by the Indian Health Service which has proven its inability to work together with the housing programs when needed. We feel the Tn-Agency agreement of the 1960's did not work and that the Bi-Agency cooperation called for herein will not work any better. Unless the delivery mechanism necessary for this housing is provided for under one administrative structure, the problems of the Tn-Agency agreement are inevitable. V - The restrictions on housing being built only on trust lands should also be revised to allow for utilization of fee lands both on or near reservations. PAGENO="0287" 281 The Minnesota Chippewa Tribe, in development of housing, has repeatedly found it necessary to purchase land for housing purposes. A a large porportion of our lands are low and inaccessable and not adaptable to housing construction. We have found that lands are available on a scattered site basis that can be purchased at reasonable costs. VI - The annual review of income proposed without restrictions could cause considerable problems, as it does now within the HUD requirements. We propose that a 5% maximum per year be inserted here so that motivated self-improvement in our society is not stifled by overly penalizing homeowners for improving their financial position. VII - In the area of construction by Indian owned enterprises, allowances should be made to allow for letters of credit and, or 10% holdbacks to assure quality and completion of the projects. Housing construction has been, and should continue to be, recognized as a form of labor for Indians and all efforts should be made to assure this construction to go to Indian enterprises. VIII - There should also be consideration of and allowance for the management and modernization of the existing HUD housing stock. Without incorporating existing HUD programs with this program, unnecessary confusion will result. It is also inevitable that because of the lack of concern by the administration for Public Housing, with the insuing administrative funding cuts, the existing housing will deteriorate. This must not be allowed to happen. IX - We also see the need for an Indian Advising Group made up of Tribal designated leaders to assist in the drafting and reviewing of the regulations and program. Conclusion The Minnesota Chippewa Tribe strongly opposes the proposed Indian Housing Bill as written. In the event that the Public Housing Program does get eliminated, we could support the Proposal but only after considerable revision. Thank you for the opportunity to testify on this most important issue. 18-934 O-83----19 PAGENO="0288" 282 OMAHA TRIBE OF ~NEBRASKA Omaha Tribal Council P. 0. Box 368 Macy, ~ebraskà 68039 Phone (402) 837-5391 flI'iE ~fFIC(RS MEMBERS ElMER K. BLACKBIRD. CHAIRMAN HOWS 0. STABLER JR. MARK A. MERRICK, VICE CHAIRMAN DORAN K. MORRIS LEMUSE A. HARLAN, SECRETARY EDWiN WALKER DRUMS F. TURNER, TREASURER TESTIMONY OF THE OMAHA TRIBE OF NEBRASKA PRESENTED BEFORE THE COMMITTEE OF INTERIOR AND INSULAR AFFAIRS ON THE INDIAN HOUSING ACT OF 1982 RAPID CITY, SOUTH DAKOTA APRIL 24, 1982 Introductory Remarks: Mr. Chairman, Members of the Committee, I am Elmer Blackbird, Chairman of the Omaha Tribe of Nebraska, testifying on behalf the Omaha People in regards to what we feel about the new Indian Housing Act of 1982. The past efforts of concerned Congressmen and Committee Members in restoring the 4,000 units for Indian Housing is greatly and deeply appreciated. Testimony: The Omaha Tribe is experiencing the lack of decent and safe housing for fam- ilies of the reservation. In addition to seriously sub-standard housing, we have a shortage of housing that is causing over crowding. Two, three and four family ~s are living in many of the recently constructed homes. We are encouraged by the directions suggested in the Indian Housing Act of 1982. Efforts to maximize the Tribe's Planning, implementation and control of housing efforts for it's people are good. The local Tribal Government is in the best position to turn limited housing resources into effective housing to meet needs of families that vary greatly from reservation to reservation. We ask that as regulations are written to implement this Act, emphasis is made to elimirate the vast amount of delaying procedures and paper presently hobbling the construction programs of the Department of Housing and Urban Development. I feel most Tribes are able to construct housing at cost sign- ificant~y below those now experienced thru HUD by reducing many of the non- construction costs. PAGENO="0289" 283 In addressing the specific language of the Act we would make the following comments: Title I - Indian Housing Improvement Program continues the HIP Program as we are now using it. With good management, this program has been very effective on the Omaha Reservation. We encourage full funding of Title I as the best deterrant to further reduction of the limited hous- ing stock on the Reservation. Title II - Indian Housing Finance fund offers the best possibilities - and perhaps some of the greatest problems. The people of my Tribe are responding well to a home ownership program. Pride in ownership, opportunity for location selection, gardening and other self sufficiency efforts are all emerging as families change from "Renters" to "owners". More than 150 families applied for the new 32 units being developed. Waiting lists of over 100 exist for the rental housing units. The financing process under Title II seems fair and reasonable. Even with our lower family incomes, the majority of our Omaha people could afford pay- ments as described in the Title II Program. We are concerned with the provision of Section 205(a) - allowing the Secret- ary to attach trust funds. We believe that many Tribes may be able to give adequate assurance to the Secretary thru the provision of other guarantees for the proper repayment of funds due to be collected from home ownership participants. We would recommend the security requirements be negotiated as part of the agreement as defined in Section 204 and be individualized as appropriate for each Tribe. It should also be the intent of the Secretary to consider the Tribe's pre- sent management capabilities, and specifically, its demonstrated capabilities in Housing Program management in assessing the risks in loans from the fund. Section 206 related to disbursement of monies to the Tribe for construction may been usefully changed to allow for one additionally type of construction. By allowing for an advance drawdown for an estimated 30 days of direct con- struction costs, a Tribe with housing construction capabilities ir~ place could build a small project of 5 to 20 units on a re-occuring basis. This would improve local employment, reduce costs of construction by out-of-the area contractors and eliminate construction financing costs. On smaller reservations, this could reduce significantly, over all development costs while making a maximum impact on the Reservation economy. Title III - Indian Housing Loan Guaranty Fund is a good addition to housing options for Indian families. Although it should work well for families with good incomes, we expect it will take a long time to develop. In our area, Indians with fee title to land and a good credit position still find it difficult to obtain housing loans. Under Title IV, I would emphasize the need for training programs for new home ownership families. Basic Home maintenance training is a need for many of our families. In conclusion, I appreciate the opportunity to come before you on behalf of my Tribe. I know that a continued Indian Housing program, particularly now, is vitally important to Indian people everywhere. My thoughts and words have not been expressed lightly as I speak for my People. Please give them your utmost consideration. I will be happy to answer any questions you may have. Thank you for your time. Elmer Blackbird Chairman PAGENO="0290" 284 d~S~TE o~ -4 J/~r ~ GoVERt4\~3 Pride Of the Ojibwa Route 2 * Hayward Wisconsin 54843 (715~834-8934 STATEMENT OF: LAC COURTE OREILLES BAND OF LAKE SUPERIOR CHIPPEWA INDIANS OF WISCONSIN ADDRESSED TO: COMMITTEE ON INDIAN AND INSULAR AFFAIRS, UNITED STATES HOUSE OF REPRESENTATIVES HEARING IN RAPID CITY, SOUTH DAKOTA APRIL 24, 1982 RE: H.R. 5988 "INDIAN HOUSING ACT OF 1982" Greetings, once again, from Wisconsin'S foremost Ojibwa Tribe. We thank you for this opportunity. Since being constitutionalized and reorganized in 1966, we have pursued an increasing active and comprehensive housing program for our people on our 125 square mile Reservation in Northern Wisconsin. With Tribal Members continually returning "home" our on~or~near Reservation popula- tion has continued to increase for the last 10 years to now almost 2400 of our total membership of 3600. PAGENO="0291" 285 Hearing - H.R. 5988 Indian Housing Act of 1982 Page 2 We have much substandard housing left, but we are mighty proud of the over 200 units built by our own Tribal Construction Company under HUD Programs. In addition, about 400 homes have been "HIPped" through the BIA Program over the last 15 years, all with Tribal labor. We are also proud of our Housing Management Improvements. We feel a great deal of our housing successes stem from our "team" approach to housing: Housing Authority Staff and Board, Central Tribal Government Staff. and Governing Board~and Tribal Construction Company Enterprise people all working together to plan, obtain, construct, improve and manage our housing. Preliminarily, but of great importance, we must state our perception of what the Bureau of Indian Affairs should be; its MISSION: To protect and enhance, as a solemn trust responsi- bility, the inherent rights of Indian Tribes to govern, to manage Tribal people and resources and to provide services for Tribal people and to protect the rights, status and assets of Indians and Tribes; ITS OBJECTIVE: To provide adequate funding and technical assist- ance to Tribes, but primarily funding,. to fulfill the above mission and to thus directly enable Tribes to function as governments and to also provide requisite services and additional funding to protect the health, safety, welfare and .property bf Indians and Tribes.. PAGENO="0292" 286 Hearing - H.R. 5988 Indian Housing Act of 1982 Page 3 We have yet to see the BIA fully actualize the foregoing, but we are disturbed that HUD feels no "Trust Responsibility" toward Indians and hence has sought to retreat from the responsibility of providing decent and adequate housing for Indians. It is also unfortunate that HUD has not been allowed to undertake a compre- hensive mission, as above, particularly in assisting Tribes to develop their management and governance capacities. It is encouraging to see Congress taking steps to fill a possible void or lag in Indian Housing Development in the light of HUD re- trenchment under the guise of "cost containment". The intent of H.R. 5988 cannot be criticized. We offer constructive comments, only to make it better. I. First as to scope, the Bill should include: 1. Grants or other reasonable long-term financing to enable Tribes to build, own and manage, Public rental units to meet the unique needs of each Tribe. If HUD discontinues such, it becomes even more imparative that this Bill contain same. 2. Assurances that sufficient flexibility can be exercised so as to meet unique Indian Housing needs; multi-agency funding efforts should not be disallowed; kinds and types of units permitted could include single-family grouped and scattered homes, elderly and handicapped units, group homes, PAGENO="0293" 287 Hearing H.R. 5988 Indian Housing Act of 1982 Page 4 2. nursing and special care housing and homes that are modest and decent, but more than adequate if built' within reasonable costs; necessary amenities should be recognized and permitted. 3. Sufficient funding levels. As stated all amounts appear low. 4. Encouragement to Tribes to construct and improve housing with Tribal Members and other Indians, if at all possible; assistance should be given to combine meeting housing needs with Tribal economic development through Tribal enterprise preference, Indian affirmative action, force..~accoimt usage, vocational education programs, Department of Labor initiatives and other creative efforts. 5. A mandate that the BIA provide expert, technical assistance and reasonable support and administrative funding as well as the basic funding. BIA staffing should be experienced and highly-qualified rather than typical, bureaucratic, high-turnover, over- staffing patterns. We need people to work with us, not around or about us. From initial investigat- ing and preparation of the "Tribal Housing Plan' through planning, drawing~ financing, construction and management, BIA staff should be always ready and capable of helping Indians help themselves. PAGENO="0294" 288 Hearing - H.R. 5988 Indian Housing Act of 1982 Page 5 6. Sonic reference to present (or future) HUD pro- grams so as to at all tines coordinate this legislation with HUD's. II. As to the Bill's specific provisions, we critique and suggest as follows: 1. Definition, Sec. 3 (5) "Indian" and Sec. 3 (11) "Tribe" should be changed to that in Public Law 93-638 and as pointed out by the National Tribal Chairmens Association in their testimony offered 3/31/82. 2. Definition, Sec. 3 (9) "Standard Housing" should not necessarily be tied to state, region or county regulations standards. More than adequate/are available in IHS, FmHA, MUD and even BIA pronouncements. The suggested reference to U.S. Uniform Code(s) is worth exploring. As to Sec. 3 (9) (v) "family size per dwelling", HUD "M.P.S." Chapter 4, Building Design appears more realistic than as stated in the Bill. 3. Definition, Sec 3 (10) "Tribal Housing Agency" should read: Means the Governing Body of the Tribe and/or that entity or administrative unit of the Tribal Government which has been designated, PAGENO="0295" 289 Hearing - H.R. 5988 Indian Housing Act of 1982 Page 6 3. delegated or established by the Tribe to admin ister a housing program or programs under this Act. This is in keeping with the recognition of Tribal Authority to organize and manage its affairs as it deems necessary. 4. Section 101 (b) and 201 are too restrictive and further contain no clear-cut guidelines or def i- nitions of "low income' "extremely isolated cir- curnstances" or eligibility under Title III, seem- ingly leaving the latter up to the individually managed policies of sundry financial institutions. Flexibility should be permitted to the Secretary, Tribes and Indians so as to allow choice(s) among the three titles. 5. Section 101 (c) (3) must be eliminated - Tribal Sovereignty must be recognized and enhanced by this Bill. Sec. 101 (c) (1) must be amended to include involvement by the Tribe, even if only some kind of Tribal right of first refusal in the event the Tribe is not in a position toinanage an agreement with the BIA. 6. Section 102 (a) should also allow enlargements and additions to standard housing; responsible people should not have to wait for deterioration to make improvements which enhance living conditions, parti- cularly where family. sizes increase and needs multiply. PAGENO="0296" 290 Hearing- H.R. 5988 Indian Housing Act of 1982 Page 7 7. Section 104 should specify that certain trans- actions are not "sales~ such as divorce settle- ments1intra-family conveyances, with or without consideration, estate settlements and the like. Better yet, Tribal Government can define exempt sales and also approve sales so as to protect and perpetuate the trust status of the land. Consideration should be given to reducing the cost by 20% per year (5 year restriction vs. 10 year). 8. Sec. 202 contains all the seeds of potential rule-making delay and future interpretation differances by various administrators. Certain minimums are stated, but additional features could be required which would bog down or even eliminate a less..~than..creative Tribe. At the very least, funding should be provided for the adequate yet affordable preparation of these plans. 9. Sec. 203 (a) funding to aid in application, draw- ings and specification preparation must be pro- vided to equalize competitive advantages among Tribes. Sec. 203 (c) would take on an expanded meaning in the light of our suggestion in #3 [Sec. 3 (10)] above. PAGENO="0297" 291 SAUSH & KOOTEtIAI tIOUSItIG AUTHORITY OF ThE FLAThEAD RESERVATION TESTIMONY SUBMITTED TO THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS FIELD HEARING - RAPID CITY, SOUTH DAKOTA RE: INDIAN HOUSING ACT - 1982 APRIL 2~, 1982 RICK FARRELL EXECUTIVE DIRECTOR, SALISH & KOOTENAI HOUSING AUTHORITY FLATHEAD RESERVATION, MONTANA CHAI RMAN, NORTHERN PLAINS INDIAN HOUSING AUTHORITY ASSOC IAT ION (TRIBAL HOUSING AUTHORITIES IN MONTANA AND WYOMING) P.O. BOX 38 * PABLO, MT 59855 * 406-675-4491 PAGENO="0298" 292 Mr. Williams, Members of the Committee: My name is Rick Farrell. I am here today representing the Salish and Kootenai Housing Authority and the Confederated Salish and Kootenai Tribes of the Flathead Reservation. I would first like to extend my appreciation for allowing us this opportunity to express our views of the Congressional Bill, providing for a new Indian Housing Program, and for the extensive time and effort all of you connected with this `Bill' have put forth. It is re- freshing to behold something positive, for a change, coming from the political arena in regard to Tribes and Indian people. You and your constituents are to be congratulated for this endeavor; it reflects a sentiment and concern that is welcomed at this end. Whether or not HUD has admitted that they do not wish to continue the current Indian Housing Program, I think the indicators are obvious. i.)~ Funding for the 1983 budget; 2.) The proposed recission of the 4000 units allocated for FY 1982 (and the subsequent impounding of these funds, if not recinded by Congress as per the Administration's request); 3.) The proposed action to recapture any of the units in prior fiscal years that have gone unused; and, 4.) Decreased and delayed operating subsidies for FY's 1981 and 1982. With figures like these, the outlook for Indian Housing is bleak. The Certificate System which is The Administration's alternate to a subsidized housing program, is not a realistic solution for housing assistance on the Reservations, because of the trust status of the land. This information points out thra~.-things: I.) That the HUD Housing Program as it stands today. (even after repeated attempts to correct pro- blems and to transfer the total blame for failure to the Indian Housing Authorities) is in trouble because of its inability to effect- ively meet its own expectations and abide by its own obligations. 2.) That we have been totally omitted from the Ad- ministration's plans for federal housing assistance, and have been shown little or no concern in response. 3.) That there is a need and consequent support for a new Indian Housing Program that will be responsive to the Indian People and will satisfy a desperate need for housing in Indian country. PAGENO="0299" 293 We are therefore endorsing this Bill, proposing the new Indian Housing Program, and will commit our assistance and cooperation to seeing it become what we view were the author's primary intents - a Housing Program more deregulated, locally controlled, and responsive to the housing needs of the targeted Indian people. The basic concept of the bill reveals con- siderable and careful preparation and detail and reflects nearly all concerns I am aware exist in relation to the issue of Indian Housing. In answer to the burden of over-regulation and complexity of the existing program, the bill purports simplification on the Federal processing level as well as in the local management areas. In response to concerns of all kinds with financial accountability and program integrity, the bill advocates a partial pay-back system supported by a Tribal guarantee to insure accountability and responsibility. To cut appropriation hassles and congressional committee coordination, the program has been filtered down to one administrative agency with fewer committee contacts for funding reviews. In answer to a program that for years did not adequately cover the housing needs of certain and large segments of people on the Reservation, this new program provides a title of assistance for families of every level of income. Where once we were limited to specific types of housing assistance and avenues of delivery, production, and management under HUD, we now have the potential for more diverse and locally appropriate and discretionary methods. On a whole, the bill challenges all the problems which we have or are presently experiencing and incorporates sound and reasonable solutions that should enable us, in the Tribal housing business, to run a program that accomplishes what it intended without being eaten alive. I recognize that the purpose of this hearing is to comment on and re- view the proposal in question and to provide my views and those of the people I represent to consider its workability and insure its success, am there- fore providing an attachment for therecord containing general comments and an in-depth analysis of the bill to point out items that I feel should be brought to your attention as possible adjustments or modifications to the bill before it is enacted. In conclusion I would like to restate on behalf of our Tribes our support of the bill and the respectable attitude it is presenting for Indian Housing. We are encouraged that someone is ultimately concerned that this Program be continued on the Reservation and will do all we can to assist inthis bill becoming reality. PAGENO="0300" 294 TRIBAL COUNCIL FORT TorrEN. NORTH DAKOTA 58335 Chairman: Carl McKay Councilman: Paul Little Vice-Chairman: Gertrude Cavanaugh Councilwoman: Bernice Juarez Secy-Treas.: Jeanette M. Smith Councilman: Frank Myrick phone 766-4221 STATEMENT OF THE DEVILS LAKE SIOUX TRIBE REGARDING THE PROPOSED INDIAN HOUSING ACT OF 1982 The attorneys for the Tribe and the Housing Authority have prepared comments and suggestions relating to the proposed Indian Housing Act Of 1982 which we attach to this statement and endorse. Mødification of the* proposed Act on the lines indicated will much improve this legislation and knsure greater support in Indian country. The issue that disturbs us most in the legislation is the proposed lien on trust assets that would result in an undermining of the entire trust relationship between Indian Tribes/people and the United States. The proposed Tribal guarantee of participant payments is completely unacceptable as presently stated. The proposal would set a most unfortunate precedent that could radically change the relationship between Indian people and the United States that has slowly developed over the last two hundred years. As is suggested in our comments and recommendations, there is a solution to the thorny problem of collection of rents and mortgage payments which does not alter the fundamental trust relationship between Indian people and the United States. We most strongly urge the adoption of another mechanism for the Tribal guarantee of participant payments than is presently set out. April 24, 1982 PAGENO="0301" 295 KEY MODIFICATIONS PROPOSED 1. ALL3 PROGRAMS ADMINISTERED BY A SINGLE TRIBAL AGENCY. In addition to locally administering the Indian Housing Finance Fund the "tribal housing agency" should also ad- minister the HIP program and provide local processing for the Loan Guarantee Program. (Tribal involvement in approving and processing these loan guarantees is.currently lacking in the Bill). There exists too much fragmenta- tion of Indian housing efforts and federal.assistance should be channeled to one agency to simplify pro- cedures, reduce costs, and build up expertise. Such agencies could also be recognized later to administer existing BUD units. 2. ESTABLISHING IDENTIAL APPLICATIONS AND DEVELOPMENT PRO CEDURES FOR THE HIP PROGRAM AND THE HOUSING FINANCE FUND. The Bill may be rightfully holding onto HIP as the pro gram through which low income housing needs can be add- ressed, but it fails to update or coordinate its program procedures and development standards with the new Housing Finance Fund Program. Again to simplify, streamline and avoid fragmentation there is a need to match program pro- cedures wherfe possible. Considerable re-working of Title I should occur~ so as to repeat application and development re- quirements contained in Title 1.1. 3.. * RE-DIRECTION FOR THE HIP PROGRAM AND INCREASED FUNDING. ~he proposed Bill provides too little funding for low in- * come housing. It merely continues the HIP program at its current almost insignificant funding levels. Though recognizing the needs of the middle and upper income population the Bill basically ignores the truly needy. Obviously it is trying to avoid programs weighted down * from a Federal perspective with operating subsidies. Yet. a majority of many reservation populations (particularly* those in the northern sectors of the country) are unable to afford home ownership even when subsidies are provided for all but utilities, administrative expenses and main- tenance. Additionally, their needs will not be met by existing BUD housing. Without some modification this Bill would either induce people into homeownership who cannot afford it or turn its back on the very low income. There also remains the issue of whether all Indian communities want to provide only ownership housing and what effects this ownership housing has on tribal property practices * and social customs. The.possibility of using HIP funds to construct rental units (as well as providing small grants * *to ownership units) should be placed into the Bill. This PAGENO="0302" 296 would allow tribal agencies to explore other housing approaches (including tribal operating subsidies) which in combination with HIP funds could result in viable rental housing projects for the very low income. The crisis in Indian housing and the present consideration of new pro- grams should not just result in the continuation of current programs or the mere modification of those programs. An opportunity exists now to set out a frame work through which new approaches can develop and evolve which are innovative and cost effective. The HIP program if ade- quately funded could provide the structure through which seed funds or grant monies, when combined with the tribal and private sector, could produce some new forms of rental housing. In the meantime the federal government can be assured that it is not comrniting itself under this Bill to providing operating subsidies and it can carefully * review all project applications to insure the ongoing viability of the particular proposals. For this to have a chance at being successful an annual funding level of .at least 90.million dollars is required. To do so without disturbing the overall funding proposed under the Bill we recommend reducing initial funding of the Home Financ- ing Program from 100 million dollars to 40 million dollars. 6. CONCERN AB0U~ GENERAL FUNDING LEVELS. Including adminis- trative costs in the funding proposals requires an estimate for these expenses so housing dollars can be -projected. Additionally, the current proposal appears to meet only the most minimal Indian housing needs and there must be a recognition that it will probably only maintain current conditions arid not improve them. En- actment of the Bill at funding levels below what is pro- posed would be insignificant, useless and counter product- lye. Should such reductions occur there should be con- * sideration of withdrawing support for the Bill. 5. TOO MUCH WASHINGTON CENTRALIZATION OF THE PROGRAM. For whatever reason or motivation, the Bill proposes * extreme centralization and control in one Washington office with delegation of that authority prohibited. This ignores the need for and benefits of regional flexi-. bility and Federal monitoring at the regional or area offices level. Specifically, approval of applications and * execution of Project Agreements should not normally be * * done at the Washington level and the Bill should be*so modified. * PAGENO="0303" 297 6. RE-WORKING OF TRIBAL GUARANTEE OF PARTICIPANT PAYMENTS (HOME FINANCING PROGRAM). Requiring tribal support to guarantee participant payments is an effective col- lection device and probably is a necessary prerequisite to getting the Bill enacted. However, identifying it as a lien on trust assets is a new and precedent sett- ing practice that could endanger fundamental tribal sovereignty and land principles. Instead of specifically requiring the tribes to pledge tribal assets (which could include lands) and agreeing to attachment of such property, why not require the tribes to guarantee collection through a binding written contract? This would permit the BIA to recover losses through this agreement.wjthout the additional consent to a lien on trust assets. This arrangement would probably make the Bill acceptable to the tribes. Procedures in the proposed Bill for collect- * ing from the tribes also needs to be re-wOrked to pro- * vide more due process than the 30 days' notice proposed. 7. APPLICATION STANDARDS. As proposed the Opplication * process would penaIi~e tribes who received funding in * previous years. This should be struck. The only ap- propriate st~ndards should be need and capability. Com- petent and successful past administration of the program should be awarded with continued funding. This would under- score and enhance local accountability and program efficiency. 8. PAYMENT FORMULA CHANGES (HOME FINANCING PROGRAM). The percentage charged in this program should be pegged to the statutory rates charged on HUD units. At the direction of Congress, MUD will soon impose a require- *ment of 30% of adjusted income, yet, this Bill establishes a 20% formula. Varying programs with differing payment rates merely confuse local administrators and participants. * Simplification is badly needed in Indian housing programs and establishment of still another payment percentage should be avoided. The Bill proposes that a simplified deduction calculation be used. This is beneficial and we recommend that this not be eliminated. However, a modification might be made to in~rease the standard $3,500 deduction if the 20% formula is raised to 30%. Also, an additional $1,000 extra utility deduction might be authorized for projects in northern areas of the Country where utility costs are substantially higher. * 18-934 O-83----20 PAGENO="0304" 298 OTHER RECOMMENDED MODIFICATIONS 1. The submission of an annual housing plan for each tribe should be required as proposed, but no approval by BIA should be insisted upon. Furthermore this particular provision might be more appropriately placed in Title IV - * Miscellaneous Provisions. (101(b)). 2. The mechanics of the Home Financing Program as to the interest of the participants and the homeownership elements needs tobe addressed and explained more fully. (Sec. 209). * 3. The Home Financing Program implies that a minimum in- come level might be required for a participant's ad- mittánce into the program, but no further explanation or definition is made. The program should be establish- ed or at least administered in a manner to avoid parti- cipation of people who cannot afford the fixed costs (utilities, maintenance and administration fee). This to avoid over-burdening these families as well as preserving the units. (Title II). 4. The maintenaiZtce reserve concept in the Home Financing Program is cumbersome and unnecessary. A similar concept exists in the Turnkey III and Mutual Help programs and they are unworkable and administratively expensive. * participants should be held responsible for the mainten- * ance pure and simple and they should come to understand like any other homeowner that they should build up their own reserves. Tribal agencies should be given the right to terminate participation however whenever appropriate and necessary maintenance is not performed by the parti- cipant. (Sec. 214). . 5. There needs to be a definition of "trust funds". Does this include trust property and land? (Sec. 2(13) as used in Title II). 6. The funding source for the tenant training program is unclear. (Sec. 602(b)). * 7. The Loan Guarantee Program requires a service charge or mortgage insurance premium to be aded to monthly princi- pal and interest payments. It appears that such ach~arge is to cover all costs and expenses of the program. This could be a very sizable amount to the point of negating the marketability of the program. Are there projections or estimates for these charges? `Could not the Bill simply permit BIA to determine this issue by using the words "The Secretary may fix such premium...". (Sec. 304). PAGENO="0305" 299 8. Under the proposed HIP program funding levels are inad- equate to meet low income housing needs and must be in- * creased. (Sec. 105). 9. Placing in the Bill a requirement to put units under construction or acquisition contract within one year is overly restrictive and as a statutorily fixed standard `is unreasonable. (206(c)). 10. Administrative charges should be set by the tribal agency and not BIA if local management and accountability is * to. be encouraged. (210(1)). 11. Bonding requirements in the Bill are inappropriate. The Bill should only require surety protection satisfactory to the Secretary. This would allow more proper and flexible requirements to be set by BIA. (213). 12. The section regarding sale of a house under the Home Financing Program (in actuality an assignment of `the * purchase agreement) should only require the approval of the, tribal agency. Furthermore, this section should not refer to an~undefined and unexplained amortization schedule, * but rather allow the BIA to establish administratively. repayment or compensation requirements. (Sec. 216) 13. A Tribal Housing Agency shoul¬ be required by defin- ition to "bind the tribe" but allow as an option the use of separate housing authorities ifthe tribes so chose, insulating the tribes for any liability other than * specific tribal guarantee prescribed in the Bill. (Sec. 2(10). 14. Tribes should not be forced to open their programs up to non-enrolled Indians. . Yet the Bill's definition sections seems to so require. (Sec. *2(5)). * . . . . . - PAGENO="0306" 300 TESTIMONY OF THE ASSINIBOINE AND SIOUX TRIBES OF THE FORT PECK RESERVATION ON THE INDIAN HOUSING ACT OF 1982 AT RAPID CITY, SOUTH DAKOTA ON APRIL 24, 1982 Mr. Chairman, and members of the committee. My name is Caleb Shields, a member of the Tribal Executive Board of the Assiniboine and Sioux Tribes of the Fort Peck Reservation. I am happy to appear before you to present the Fort Peck Tribes' views on the Indian Housing Act of 1982. You and your committee are to be commended for introducing legislation which continues a federal program of housing assistance to Indians. The proposed legislation provides a more comprehensive housing program than is presently available under the BUD Indian Housing Program in that it provides assistance for three separate Indian income groups - including the means for middle income Indians, living on trust land, to finance housing from the private market. The Fort Peck Tribes generally support the legislation. How- ever, we also wish to briefly discuss some concerns we have about the Indian Housing Act of 1982. First, we are concerned that Title I only authorizes an appro- priation of $30,000,000 to provide for repairs, renovation and construction. The proposed level of funding authorized by the legislation must provide for sufficient funds to continue a viable Indian housing program. Substandard housing is rampant on reserva- tions and housing repair and construction is urgently needed. Title I funds are insufficient to provide anything more than a skeletal program. Second, Title I provides grants to finance "major repair or construction." (Sec. 102(a) (2) and (3). The definition of major repair or construction should be more clearly defined in the legisla- tion (for example - an amount over $10,000 or $15,000) because the bill provides that a lien may be placed on fee land when major repair PAGENO="0307" 301 Testimony of the Assiniboine and Sioux Tribes by Caleb Shields Page 2. or construction occurs. (Sec. 103(b). As you know, a lien makes a property subject to foreclosure and sale in case of default and smaller grants for repairs or construction should not subject the property to this risk. Third, Section 104 provides for the sale of houses acquired or repaired pursuant to Title I. At present when a house is to be sold the legislation grants the tribe the right of first refusal when the housing is located on trust land. We suggest that tribes be given the right of first refusal on property located on either trust or fee land in order to increase tribal control of our Indian communities. Fourth, the Fort Peck Tribes strongly opposes the Secretary's right to attach tribal trust funds held by the United States in the event of default by the Tribal Housing Agency. (Sec. 205). This provision waives tribal sovereign immunity and permits tribal trust funds held by the government to unilateral seizure. Tribal trust funds should not be held hostage to the failure of a Tribal Housing Agency to repay obligations to the Indian Housing Finance Fund. This provision should be deleted. Finally, we urge that nothing in the Housing Act be construed to prohibit a Tribal Housing Agency from participation in the housing programs of other government departments and agencies. Thank you for the opportunity to appear today on behalf of the Fort Peck Tribes. We stand ready to assist you in any way we can to assure continued assistance for urgently needed Indian housing programs. I will be happy to answer any questions you may have. PAGENO="0308" 302 House Resolution Ntither 5988 entitled "The Indian Housing Act of `82" purports to offer an alternative in the event of the denise of the HUT) public-assisted housing progran; Fran a tribal viewpoint, the proposed legislation is very attractive, with the exception of the provisions outlined in Section 205 of Title II. This section authorizes the Secretary of the Interior to attach any and all funds held in trust by the United States for the benefit of any Indian or Indian Tribe when said Indian or Indian Tribe fails to make payment if full for their housing obligations. This clause, in effect, eliminates the tine-tested legal principle that trust funds cannot be touched. Not only would tribal inccme be subject to seizure, but also any other funds held by the United States in trust, in-. cluding judgment funds fran lands claims The Winnebago Tribe of Nebraska views this legislation as just another veiled attanot to circuavent the Bureau's obligation ta protect tribe s trust properties. There can hr little doubt, considering the nearly 757~ unesployment rate on the Winnebago Reservation, that tribal and individual trust funds would ultimately be seized, pursuant to section 205. If the purpose of the legislation is to seek a remedy for the high rate of non-payment, then why not attack.the problem at its source, and atteipt to provide increased employment opportunities, rather than chip awoy at the very fabric of tribal sovereignty. According to a 1980 housing survey conducted on the Winnebago Reservation, less than IF of the population cwn their ewn bane. WINNEBAGO TRIBE of NEBRASKA April 21, 1982 Committee on Interior and Insular Affairs U.S. House of Representative Washington, D.C. 20515 PAGENO="0309" 303 Ccmsittee on Interior and Insular Affairs Page 2 coot. HR. 5988 would provide lOO7~ loan guarantees to those vfno would attempt to purchase. In spite of the liberal payment provisions in the bill, it is not difficult to forecast, because of high unemployment, that purchasers woold default eventually. At that point, the government ~ruld attach the very things, that under treaty and two hundred year old case law, it is bound by a fiduciary duty to protect Clearly, this is unconscionable and cannot be allowed to happen. PAGENO="0310" 304 Prepared statement of the Blackfeet Tribe of Indians presented~ by Leland Ground, member, tribal council - IT GIVES ME GREAT PLEASURE TO OFFER THE FOLLOWING TESTIMONY IN SUPPORT OF H.R. 5988 (Resolution will be forth corning). PRESENT WITH ME TODAY ARE; DON PEPION, DIRECTOR OF THE BLACKFEET HOUSING DEPARTMENT; GEORGE WIPPERT, DIRECTOR H.U.D. PROJECTS FOR THE TRIBE, IRVIN SPOTTED EAGLE, DEPARTMENT OF NATURAL RESOURCES, OFFICE OF NATURAL RESOURCE DEVELOPMENT AND MYSELF, LELAND GROUND, MEMBER OF THE BLACKFEET TRIBAL COUNCIL,CHAIBNAN OF THE NATURAL RESOUCES, MINERAL COMMITTEE,COUNCIL DELEGATE TO THE BLACKFEET HOUSING AUTHORITY, AND DELEGATE TO THE MONTANA INTER-TRIBAL POLICY BOARD. THERE IS NOW CREATED AND IN THE IMPLEMENTATION PHASE, A DEPARTMENT OF HOUSING FOR THE BLACKFEET TRIBE. ALL HOUSING FUNCTIONS, INDIAN ACTION TEAM FUNCTIONS AND CENTRAL MAINTENANCE ARE HOUSED WITHIN THIS DEPARTMENT, COMMUNITY DEVELOPMENT BLOCK GRANTS ARE CURRENTLY BEING ADMINISTERED THERE ALSO. THE DEPARTMENT IS MANDATED TO ADDRESS THE FUTURE AND CURRENT NEEDS OF THE RESERVATION (See attached Reservation overview) THE BLACKFEET TRIBE IS IN AN ON-GOING PROCESS TO UPGRADE IT'S MANAGEMENT, FINANCIAL, AND TECHNICAL CAPABILITIES TO ADDRESS THE NEEDS OF THE PEOPLE OF THE RESERVATION. TO SPEAK OF THE HOUSING SITUATION FOR ALL INDIAN TRIBES, IS TO ACTUALLY ADDRESS MANY ASSOCIATED PROBLEMS THAT REFLECT THE INADEQUACEY OF THEIR WELL- BEING. INDIAN TRIBES AND ESPECIALLY, MY TRIBE ARE NOT IN THE CONDITION THAT WE WANT TO .BE IN. THE BLACKFEET DO NOT WANT TO BE DEPENDANT ON THE U.S. GOVERNMENT FOR EVERY SINGLE NEED. THE BLACKFEET ARE REAL PEOPLE, PROUD, WITH AN ABUNDANCE OF NATURAL RESOUCES AND A PRISTEEN ENVIRONMENT. WE ARE IN A DEVELOPING PERIOD OF TIME WHEREBY EVENTUALLY, DEPENDANCY WILL BE OVERCOME BY SELF-SUFFICIENCY. PAGENO="0311" 305 INDIAN TRIBES ARE ~ UNIQUE IN THEIR OWN SITUATION~'1jJT ARE SO MUCH ALIKE t~1EN TH~ 5~~(E COMMON MAJOR PROBLEMS, SUCH AS HOUSING. IT IS OUR ~ 5988 PASSES, AS IT WILL ADDRESS THE HOUSING PROBLEMS OF OUR TRIBE AND WILL ENABLE THE DEVELOPNgNT OF A COOPERATIVE EFFORT OF ALL TRIBES TO FIND THE SOLUTION TO THEIR HOUSING NEEDS. TO DO THIS WE FEEL THAT AN ECONOMIC TRADE RELATIONSHIP MUST BE STARTED AMONGST TRIBES. AN ACT AS A RESULT OF HR 5988 COULD PROVIDE A VEHICLE FOR TRIBES TO ENGAGE IN AIDING AND HELPING THEMSELVES IN THE PERSLJIT TO FINDING SOLUTIONS TO THE HOUSING AND ASSOCIATED PROBLEMS. The Blackfeet are very positive in their thinking and beleive that with the assistance of the federal government, they can eventually manage, control and finance the housing industry needed on the res- vation for employment purposes as well as housing needs. That stability is apparent by the following facts. 1. We have developed a Centralized accounting system with IBM 34 Computer Capability 2. We have developed a records management Department with IBM information processor capability. 3. The Natural Resource Department consisting of Oil and Gas functions Timber Assessment and nonitoring are tied in with the Cen- tralized IBM Computer. 4. We have consolidated all Hou~3ñ~develop- ~nt. functions under one Housing Department. This also~includes the Community Development Block Grant pro~cess. The Indian Action team and the centralized~biiilding maintenance team. PAGENO="0312" 306 S SS~~S The languag~~of the Bill must contain enou~h flexibility to allow Indian Tribes to help themselves. The language of the bill as well as the intent is clear. ~ Blackfeet Tribe is concerned about the development of the rules and regulations to implement the Bill. At all times we feel that we should have an opportunity to provide input regarding all aspects, so that the Bill as well as the implementation is designed to assist the tribes as much as possible. The intentions of Congress are honorable and the Bill possess great possibilities to address Indian Housing needs. The Blackfeet Tribe feels the following should be addressed: 1. As the tribes Develop Housing plans and mechanisms and the mobilization of their Natural Resources i.e. timber. We would like the Department of the Interior to develop concurrent plans and emphasize Tribal goals and objectives. 2. Should this Bill be administrated through the Bureau of Indian Affairs, We request that oppropriations be kept seperate from the Zero-Base Budgeting process. That the Discretion to utilize funds be placed mainly through the Tribal Housing plans. 3. That a formula, denoting factors identifying which tribes will be the recipient be developed so as to allow fair- ness in distribution. 4. That Economic Development in relationship to the housing industry be (i.e., Saw mills, Log home projects, masonry development. etc) considered a Vital part of assisting Tribes with multiple problems. PAGENO="0313" 307 5. Tribes will be kept aware of funding for Indian Health Service and also that additional funding be provided IRS for increased water and sewer development and services. 6. That emphasis of P.L. 93-638 be utalized to enhance the Tribes Economic Self-sufficiency. In doing so many aspects of the individual Tribe's capabilities can be developed. Which may include but not be limited to the following: a. Managment & finance b. Utilization of tribe's own Natural Resources to control costs of Housing development. (i.e., conversion of Timber into lumber or log homes. Masonry type material is found on the reservation and has been utilized in the past. c. Where one tribe lacks the resources trades may be made to provide essential materials for those tribes to work with. (This is called specialization) 7. That Emphasis on individual family self sufficiency be fore most. A good example is: Many families are clustered in Urban centers which makes them dependent on that economy of that town or center. Should a house be placed on suitable land the family could raise food to offset food expense. Juvenile and other Law and Order problems arise as you put rural people in urban settings. 8. Appropriate technology be considered and utilized in the construction and designing of housing. 9. That proven track records of development be considered in the design and development of houses.(i.e. A & E designs and acquistion concepts as well as force account.) PAGENO="0314" 308 10. That energy issues be addressed appropriately as they relate to housing. 11. Minimum standards and acceptance of Tribal Building Codes he developed for each tribe. 12. That consideration of seasons be vital in the implementation of housing development projects. The Blackfeet Tribe consistent with the language of the Bill has adopted the following approach after the implementation of the Housing department. This will enable and enhance the tribe to develop a healthy housing industry and also to control development costs. I. Develop Tribal Timber/Housing Industry Phase I. Assessment of Timber & other Building Material. Phase II. Labor Assessment. Phase III. Natural Resource Development. a. classify by product b. develop feasibility or criteria screen. Phase IV. Administrative Assessment Phase V. Management & Financial Assessment. Capitalization toward Economic development is essential and necessary in order to allow Tribes to help themselves. Full passage is requested and the Blackfeet Tribe will be ready to assist in any way possible. PAGENO="0315" 309 OVERVIEW-OF--HOIJS INC-NEEDS The reservation is bordered on the West by Glacier National Park the North by Canada and the South by Lewis and Clark Forest. The reservation has a variety of Timber species with an annual allowable cut of 4.1 million board feet. The Blackfeet have begun to mobilize their personnell, equip- ment and efforts into providing clean safe adequate housing for the future needs of the reservation. We are concerned whether or not we will be able to meet those demands placed on us. Each year the need for permanent and temperary housing increases. The winters are unpredictable and are often severe, increasing usual and complex problems associated with health i.e. ability to heat homes, water and sewer problems, illnesses, and poor diet. Employment is seasonal with a large dependency on the housing industry for jobs as well as generating income locally as well as state wide. Federal dollars do not entirely stay on the reservation economy but multiply to segments of other economies that provide needed equipment materials, technical expertise etc. More and more members of the tribe return to the reservation setting each year. Tribal population is 13,000, while 6500 members reside on the reservation. While population growth in the nation is down for the reservation it has increased ~"~mensely. Schools are becoming over crowded. We have 9 elementary schools, 1 Jr. High, 1 High School and a boarding school that provides substantial living quarters for 100 students. A combined juvinile and child abuse center as well as a detox center that provides lodging PAGENO="0316" 310 for many street people. We have a waiting list of 320 people for low rent and 160 people for mutual homes. Substantial numbers of young couples with young families are in search of their own houses. Most have to rely on staying with parents or relatives. It is not uncommon to find multiples of families occupying the same house. These cases are well documented. 25~ of existing housing is in the form of trailer houses. These usually experience damage by high winds, below freezing temperatures or fire by out dated wiring. Houses provided in 1964 as a result of a massive flood were designed to last for a period -of 10 years. Incidents of fire is always fearful as loss of life as occured has a result of fire. These types of houses have burnt in a matter of minutes. PAGENO="0317" TABLE Il-I RESERVATION SUMMARY ACREAGE OF MAJOR COVER TYPES BY OVEERSHIP CLASSES (As of October, 1976) Major Tribal Allotted Tribal Allotted TOTAL Cover Trust Trust Fee Partial INDIAN Type Lands Lands Lands Fee Lands LANDS Sawtimber Virgin 25,039 5,932 879 322 32,171 Cutover 1,250 34 46 - 1,330 Inaccessible 780 657 19 31 1,487 Pole, seedling, sap1in~ Virgin 11,758 3,449 125 529 15,861 ` Cutover 2,805 29 - 1,834 Inaccessible 677 419 27 45 1,168 Hardwood1' Commercial site 15,622 29,584 2,044 1,924 49,173 Inaccessible 531 21 20 572 Scrub Timber 5,117 5,378 126 203 10,824 Unstocked Cutover 1,434 241 143 - 1,818 Other Commercial site 1,157 447 53 , - 1,657 Non-Commercial site2' 691 598 55 9 2,353 Non-Forest 27,472 60,983 3,155 2,940 94,550 TOTAL, ALL CLASSES 93,332 107,771 6,692 6,003 213,798 1/Although included in the commercial forest the Hardwood Component was not included in the AAC Computations. 2/Includes scrub timber site and inaccessible. PAGENO="0318" TABLE 11-2 MANAGEMENT UNIT I SUMMARY ACREAGE OF MAJOR COVER TYPES BY OWNERSHIP CLASS (As of October, 1976) Major Tribal Allotted Tribal Allotted TOTAL Covcr Trust Trust Fee Partial INDIAN Type Lands Lands Lands Fee Lands LANDS Savtirnber Virgin 24,180 4,650 866 179 29,875 Cutover 1,250 34 46 - 1,330 Inaccessible 641 352 1 26 1,020 Pole, seedling, sap1~g Virgin 11,133 2,571 123 241 13,068 Cutover 1,805 29 - - 1,834 Inaccessible 377 70 5 - 452 Hard wood1 Cormncrcial site 14,432 21,981 1,715 1,284 39,412 Inaccessible 531 21 20 - 572 Scrub Tirrbcr 4,250 1,122 105 20 5,497 Unstocked Cutover 1,434 241 143 - 1,818 Other Cozrrnercial si5~ 869 44 - ,- 913 Non-Commercial site 503 30 - 9 542 Non-Forost 23,988 34,377 2,231 781 61,377 TOTAL, ALL CLASSES 85,393 64,522 5,255 2,540 157,710 1/Although included in the commercial forest the Hardwood Component was not included in the AAC Computations. 2/Includes scrub timber site and inaccessible. PAGENO="0319" TABLE 11-3 1/ MANAGEMENT UNIT II SUMMARY ACREAGE OF MAJOR COVER TYPES BY OWNERSHIP (As of October, 1976) Major Tribal Allotted Tribal Allotted TOTAL Cover Trust Trust Fee Partial INDIAN Type Lands Lands Lands Fee Lands LANDS Sawtlmbor virgI~ 859 1,281 13 143 2,296 Cutover - - - - - Inaccessible 139 305 18 5 467 Pole, Seedling, Sap~4~~ Virgin 625 1,878 2 288 2,793 Cutover - - - - - Inaccessible 300 349 22 45 716 Hardwood Commercial site 1,189 7,603 329 640 9,761 Inaccessible - - - - - Scrub Timber 867 4,256 21 183 5,327 Unstocked Cutover - - - - - Other Commercial site 288 403 53 - 744 Non-Commercial site2' 188 568 55 - 811 Non-Forest 3,484 26,606 924 2,159 33,173 TOTAL, ALL CLAS,5ES 7,939 43,249 1,437 3,463 56,088 1/Although acreage data of Management Unit II is included here in summary, no AAC was computed since the 1976 Forest Inventory did not cover Management Unit II. 2/Includes scrub timber site and inaccessible. PAGENO="0320" All Fir and WB Pine Ages 1-2 Ages 3-4 All Ages Acreage does not include unstocked. BMCKFEET 1976 INVENTORY VOLUME SUMMARY MANAGEMENT UNIT I ROARD FOOT VOLUME TABLE 11-4 ALL TIMBER TYPES VIRGIN & RESIDUAL ~sc r~ II, TOTAL 46,107 `~ ACRES Species Age Class Douglas-fir 1-2 Douglas-fir 3-4 All Douglas-fir Lodgepole Pine 1-2 Lodgepole Pine 3-4 All Lodgepole Pine Engelmann Spruce Engelmaflfl Spruce. All Engelmann Spruce Alpine Fir & NB Pine 1-2 Alpine Fir & NB Pine 3-4 Gross Net Vol/ Gross Vol/ Ac Volume Dot Volume AC Volume 1,664,462.7 60.9 854.1 2,807,916.3 39,379,988.7 9.05 14.70 2,553,799.9 33,591,130.4 200.98 9,266,584.9 915.0 42,187,905.0 14.32 36,146,597.0 237.08 10,931,047.6 195.1 1,486.5 1,681.6 8,995,475.7 68,538,055.5 77,533,531.2 10.46 15.28 14.72 8,054,548.9 58,065,440.6 66,120,595.4 262.61 620.08 882.69 l~2,l08,l59.3 28,590,028.6 40,698,187.8 137.6 . 2,128.1 6,344,323.2 98,120,306.7 4.83 8.51 6,037,892.4 89,770,268.6 76.53 538.60 3,528,568.7 24,833,230.2 2,265.7 104,464,629.9 0.29 95,804,512.1 615.13 44.99 28,361,798.9 2,074,353.9 30.2 1,392,431.4 17.00 1,155,718.1 580.2 26,751,281.4 26.67 19,616,714.7 311.67 14,370,168.7 610.4 28,143,712.8 26.20 21,051,497.2 356.66 16,444.522.6 423.8 5,048.9 19,540,146.6 .232,789,632.3 8.89 13.64 17,803,027.6 201,037,126.5 420.23 1,671.33 19,375,544.6 77,060,012.3 1/Acreage as of~October~ 1976. ~--,~- PAGENO="0321" 315 Prepared statement of the Rosebud Sioux Tribe presented by Carl Wain, chairman Mr. Chairman and members of the committee, my name is Carl Waln, chairman of the Rosebud Sioux Tribe, Rosebud, South Dakota. We would like to thank you for giving us the opportunity to:: participate in this hearing regarding the Indian Housing Act of 1982. It is obvious to us that a great deal of thought, research, and hard work have gone into the development of this bill. We are happy to be able to make some comments and some recommenda- tions regarding. II.R. 5988. In general, we view the contents of this bill as a positive attempt to provide a comprehensive Indian Housing Program. The three programs described in Titles I, II, and III appear to make it possible for Indian families who are otherwise unable to secure adequate housing to obtain the necessary financial assistance to do so. Without these programs, there will be no other way for our Tribalpeople to get housing now that MUD will no longer make the development of new housing units available to Indian people. Currently, in our housing office there are 2,288 appli- cations on file of families needing immediate housing. This bill would seemto provide for the variety of housing needs that are neededby our higher income families--this does not consider the needsof the elderly, handicapped, and traditional people that are very low income and have not beel reached yet; However,of great concern to us is the meaning of section 205 as it relates to the use of trust funds to guarantee pay back of funds obligated under Title II. We believe our Tribe can come up with a plan by which payment can be made without use of trust funds. We recommend that section 205 be rewritten or removed from this bill completely. In regard to Title IV of this bill, we completely support section 4OlCa) and (b) which eliminates the bureaucracy and red tape which Indian people have had to live under in the past years. We like the idea of having an Office of Indian Housing under the immediate supervision of the Assistant Secretary of the Interior for Indian Affairs. Having this kind of orgalization will allow the Tribes and our housing office to get faster, more knowledgable responses and services that have been impossible under the current organization and procedures. In section 401(c), although we can appreciate the concept and recognize the need for assuing administrative expenses of the Office of Indian Programs, we have some reservations regarding the use of Title I and II moneys appropriated under this act. Perhaps administrative expenses or preferably an additional amount could be appropriated for this purpose. PAGENO="0322" 316 We support section 402 with the following modifications: 1. We would like to recommend changes in regard to the training program. This should not only allow for staff training for the people who work with families. Staff training should also be included for the entire administrative staff and Board of the Housing Authority. 2. Under "C", funds f or technical assistance and training should be separate. Funds for technical assistance should be higher during the first few years of this program but the cost would diminish as a Housing Authority becomes more skilled, but by no means should technical assistance be eliminated. In other words, we agree that botf tecnical assistance and training programs should be funded, but we believe that 1 percent of $280 million which equals $2.8 million is not sufficient for both. In conclusion, we would like to state our admiration of Representative Udall for his support for continuing funding for HUD, but we would like to recommend that this bill take preference over the continuation of HTJD's housing development program for Indian families. We would like express our appreciation to the Congressmen and to this committee for their commitment and concerl forour Indian people in sponsoring this bill, Representative Udall has shown that he truly has faith in the credibility of Indian Tribes and we believe this bill is giving the Indian Nation the opportunity for true self-determination. Written testimony will be submitted to the committee at a later date stating the Rosebud Sioux's Tribe's recommendations for amendments and modifications. Thank you. PAGENO="0323" 317 TESTIMONY OF THE STANDING ROCK SIOUX TRIBE Mr. Chairman: We are sincerely pleased that you have asked the Standing Rock Sioux Tribe to testify on H.R. 5988, the "Indian Hot sing Act of 1982". We want to commend you, the members and the staff of the Committee for your concern for the housing needs of Indian people. My name is Pat McLaughlin, duly elected Chairman of the Standing Rock Sioux Tribe. I have with me the entire Health, Education, Welfare and Housing Committee of the Tribal Council; Mrs. Phyllis Young and Renee Yellow of the Standing Rock Housing Authority, who have spent countless number of hours going over your proposed Indian housing legislation. Our position will not be in favor or against the bill; however, we will address questions which we have that are unanswered. First of all, I must briefly acquaint you with the Standing Rock Sioux Tribe. We have a population of about 6,300 Indian people living on the reservation with an additional 2,500 Indian people living near or adjacent to the reservation. At present, our real unemployment rate is hovering around 90% with virtually no industry on the reservation which is comprised of 2.3 million acres of land with about 800,000 acres of tribal and/or allotted lands. Your Committee's concern on Indian housing is well founded. The Committee is all too familiar with the incredible state of Indian housing nationwide and the negative statistics are evidenced at our reservation as well. Our general position on the bill is one of apprehension. The relationship that Indian tribes have with MUD is similar to the often described love! hate relationship with the Bureau of Indian Affairs. Our apprehension about the bill could be crudely described as wondering if we are not go- ing from the frying pan into the fire.. .but due to the fact the winters are very cold in the Dakotas, we would like to be in one of the two. We must really question if the BIA is capable of operating this program. The Standing Rock Sioux Tribe would prefer that MUD continue to operate the Indian housing program. We would like to force, through legislation if necessary, significant changes upon MUD hat would make that agency PAGENO="0324" 318 more responsive to the needs of our Indian people. However, we realize we are like an unwanted child at HUD and that the program might be cut out. If that is the case, we agree that there should be an alternative in place. We would therefore like to address some specific concerns we have with H.R. 5988 and ask some questions: TITLE I $30 million is simply and factually an insufficient amount of money to meet the needs of the number of people who would qualify for assistance under this section. We request that the authorized level for Title I be increased ;o $60 million. TITLE II In Section 202 we are wondering where the funding will come from for the Tribe to prepare what will be a fairly comprehensive housing plan. We suggest an amendment to Section 402(a) that will not just allow the BIA to provide technical assistance to tribes in preparing these plans but that allow for financial assistance to the Tribe to prepare the housing plan. We also feel it would be wise to ensure that the tribes have available to them funding for contracting the services of architects to perform the services envisioned in Section 203. We question if the language in Section 203(b)(l) might not inadvertently punish those tribes who have performed well in previous fiscal years. As the Committee is aware, we have problems with Section 20c. Indian tribes often have only two things of value: land and trust assets. We do not want to put up our trust assets and gamble that they might be lost. This could set a very negative precedent. Never before through statute has anyone suggested that trust assets be compromised in such a manner. We do not think it's time to start. We urge that Section 205(a) and (b) and 209 (b)(4) be stricken from the bill. This bill makes pro- vision for the situation where a family not paying the agency what it has agreed to pay may be taken to Tribal Court and we feel that this is sufficient to legally protect the agency and guarantee payment. Section 209(b)(l) needs to be clarified to make clear what lands this relates to. We assume this was intended to refer to the immediate lands PAGENO="0325" 319 on which the house (lot) sits; however, this is not stated in Section 209(b)(1). As presently stated, this section could allow an agency ~`/ ~4 ;~- `~ to require that a family ~ to the agency. Section 209(b)(3) requires the homebuyer to pay all utilities and main- tenance and in Section 210, the family is asked to pay administrative charges, insurance premiums and a contingency reserve for maintenance. We really question whether people eligible for assistance under Title II will be able to pay all these costs. In the winter months on our reservation, utility bills can easily be $500 and more per month. HUD presently subsidizes the families cost in this area. We think people will hold back on their administartive charges and this will result in the agencies going broke and having no operating expenses. When you add up utility charges, administrative charges, insurance premiums, a contingency charge for maintenance and 20 percent of adjusted family income, it will in many cases total much more that the 30 percent of income that BUD is proposing to charge. We suggest that either an additional provision be added to this bill authorizing appropriations for the housing agencies or that Section 3(1) of Title I be amended allowing for a utility allowance adjustment in the definition of "adjusted family income". We feel obliged to point out in reference to Section 211 dealing with residual receipts that the tribes are being asked to do something that BUD has never been able to accomplish; that being the collection of residual receipts. We feel this is a serious issue because of the contribution of residual receipts to the fund. We have some concerns with Section 302. We are all familiar with how much Indian land was lost in the early part of this century when lands were parcelled into allotments and through various schemes lost by Indian people forever. This could happen in Section 302 and we must oppose any situation which could result in such a loss. We are very apprehensive about the ability of the BIA to operate such a large scale financial loan guarantee program. We would therefore request that the Congress do all in it's power to oversee this program PAGENO="0326" 320 and ensure that the Bureau remains accountable. Politically we question whether this bill will fly in Congress. Will Congressmen Gonzalez and St. Gerinaine of the Authorizing Committee and Congressman Boland of the Appropriations Committee be willing to give up this turf? The same must be asked of Senators Garn and Lugar. This is a lot of money for these Subcommittee and Committee Chairmen to give up to the Interior Authorizing and Appropriating Committees. We need to get a clear message from these and other congressional leaders. If Indian Country keys it's efforts to support H.R. 5988 and let HUD cut out the Indian program, we would be faced with disaster if H.R. 5988 then did not pass Congress, with funding and/or was vetoed by the President. Our final recommendation is that the bill be amended in the appropriate section to allow for the construction of group homes. There is often a need for group homes for youth, for elderly and for people with alco- holism related problems. This bill presently does not authorized the consturctiOn of such homes and no other agency will either. We feel this would be an important and cost effective expenditure. Mr. Chairman, the concludes our comments. Again, we thank you for your attention and concern for Indian housing and we would be glad to answer any questions you may have. PAGENO="0327" 321 TESTIMONY HR 5988 CROW TRIBE Nay it please the Hearing Committee. My name is Pat Stands and I am Chairman of the Crow Tribal Housing Authority. Also here with me today is Arthur Plenty Hawk, Executive Director of the Crow Tribal Housing Authority. We are here today, not only representing the Crow Housing Authority but also the Crow Tribe. First, if I may, I would like to express my appreciation and sincere thanks for being invited here today to participate in this hearing on the bill designated HR 5988. I know other members feel likewise. With that introduction, Mr. Chairman, I would like to get right into my statement. May I proceed? I will submit a copy of my statement for the record. Like other Montana Indian Tribes, the Crows first heard of HR 5988 at a meeting held in Billings, Montana on April 6, 1982 and after discussing it among ourselves, we are very much in favor and would like to lend out support in seeing this bill become law. It seems that at best, the office of Regional Indian Programs, Department of HUD, future is a-be.s4 uncertain. And this is especially untimely since at Crow - and other Indian Tribes probably have the same problem - the demand for housing has always out-distanced the supply. Perhaps I could be wrong but I feel that adequate shelter is basic in the beneficiary trustee relationship created by treaties entered into between Indian Tribes and the United States Government. The fact that 40% of all Indian housing is sub-standard as compared to the national average figure of 12% is a sad statistic. In an analyzing HR 5988, it is felt that its major strong points PAGENO="0328" 322 are: (1) Particularly with so-called Reganomics which to our understanding stresses involvement by the private sector of the economy. This bill will attempt to marshall, not only public, but also private resources. (Incidently, however, I might add that my ancestors signed treaties with the United States Government). (2) The bill is simple and straight-forward and it somewhat of a conglomerate of housing programs established for Indians but existing under different departments of the government. (A) Under Title I , for example, it is my understanding that this program is designed for persons who do not qualify for the other programs under Title II and III. Therefore, the recipients benefits under Title I will be in the very low income category and therefore, I would assume the major emphasis of this program will be the grant portion. I think this is good since Indian people simply do not have money in many cases and the economy on many reservations is certainly not improving. As far as the 30 million dollars being appropriated for this Title for FY-83 while this sounds like a lot of money, I think the figure and request should be closely scrutinized and perhaps more will need to be requested. (B) Under Title II, it is my understanding that this will constitute the direct loan program. One concern that I do have is in regards to the criteria that will be used to establish priorities in identifying Indian Tribes that will receive houses. Under the existing program, for example, some tribes have faired better than others regarding the overall housing programs and perhaps some consideration should be given to this. I am not sure why this is so. A coment regarding this area would be that if, in fact, Indian Tribes are going to allow the Secretary of Interior PAGENO="0329" 323 to attach tribal trust funds, this must be very clear to the entire tribe. It would seem to me to be rather unfair for housing recipients to be able to jeopardize non-participants share in tribal trust monies. The provision allowing Indian families to use this program to make a down payment on housing is very good. I would hope that this could be done in communities not technically on the reservation but adjacent to the reservation. (C) Regarding Title III, this establishes the guarantee program and is the effort to marshall private resources. I believe this is somewhat analogous to the Small Business Administration's guaranteed loan program. With a 100% guarantee, I am sure this will become very attractive for lenders in the housing area, however, it can have adverse effect whereby with the protection of this guarantee, the valid credit criteria tends to be ignored. (3) Another strong point is placing Indian Housing Programs under one agency. Presently, the B~A has an Office Regional Indian Program, HUD has a program and Indian Public Health Service is supportive in regards to sewer and water. Needless to say, it sometimes becomes very difficult to coordinate all these three governmental agencies in the housing construction effort on Indian Reservations. (4) L foresee Indian Tribes taking a very strong and dominant role in this area if this bill is enacted into law. Presently in place are the Housing Authorities and these could be very well serve as the agency. Furthermore, P.L. 93638 will permit tribes to contract this program if they feel that they should. In otherwords, much of the ground has already been laid for this type of bill. PAGENO="0330" 324 Lower Sioux Indian Community POST OFFICE BOX MORTON MINNESOTA 56270 PHONE 507 597-6185 RESOLUTION NO. 13-82 WHEREAS, The Lower Sioux Community Council has the power under the Constitution and By-laws of the Lower Sioux Community to promulgate resolutions govern- ing the conduct of business in the community; and WHEREAS, Congress by enactment of P.L. 93-638 provided a - mechanism for Indian Tribes to exercise the right of Self-Determination; and NOW THEREFORE BE IT RESOLVED, That the Lower Sioux Community Council hereby disapproves proposed Bill # H.R. 5988, changing H.U.D. Housing to B.I.A. Housing. Reason being Lower Sioux Council objects to using tribal ,~14i~c6r' land as collateral. CERTIFICATION: We hereby certify that Resolution No. 13-82 was duly presented and enacted upon by the Lower Sioux Community Council at a meeting held thid date April 14th, J~2~ by a vote of ...~ forand 0 against with a quorum being present. L ~- Ann Larse chad Pr scott Chairperson Secretary Lower Sioux Community Council Lower Sioux Community Council PAGENO="0331" 325 ARAPAHOE TRIBE Box 217 1 Ft. Washakie, Wyoming 82514 CHIEF BLACK COAL APRIL 24, 1982 Chairman Williams, ladies and gentlemen, represent the Northern Arapahoe Tribe of Wyoming. We, the Northern Arapahoe Tribe share the Wind River Indian Reservation with another Tribe. Our cuirent enrollment is approximately 3,400 and is the largest of two Tribes on the Reservation. Our Tribe is supporting the concept of the indian Housing Act of 1982 and would like to recommend some changes. First, we want specific language on the allocatIon of housing units. That is, we want the allocation to be based on population. For example, our P. L. 93-638 allocation is based on population. We receive fifty- four percent (54%) of the 638 funds that come to the Wind River Reservation We recommend that our Tribe be allowed to submit a single Tribal application based solely on the Northern Arapahow Tribal population under Section 203 (d). Under the HUD Administration, the housing allocation is split 50-50. The housing needs of the Northern Arapahoe people are not being adequately met. Second, the amortization payment should be in line with the rates established, in other federal programs, for example the Veterans Administra- tion and Farmers Home Administration. Finally, this bill should provide a vehicle to solve the differences that may arise between or among the parties involved in a dispute. CHIEF BLACK COAL PAGENO="0332" 326 The Bureau of Indian Affairs has not exercised it's responsibility regaz~ing the trust relationship. The oil thefts from the Wind River Indian Reservation is an example of what happens when there is no recourse. Interpretation of the law is often a problem once a plan is implemented. We recommend that a special commission made up of Tribal Memberships sit in and provide input into the formulation of the rules and regulations for this bifl, "Indian Housing Act of 1982", with the Bureau of Indian Affairs and responsible authorities. Further we recommend that an on-going commission be established to work closely with the appointed Director of Indian Housing Programs to assure fair interpretations of the Indian Housing Act. In all cases, the integrity of the Indian Tribes should be preserved. We recommend that the interests of the Indian Tribes be protected as well as the Federal Government. We will forward additional written comments after further stuly of the meaning of certain sections of this bill. Thank you. PAGENO="0333" APPENDIX IV THURSDAY, APRIL 29, 1982 ADDITIONAL MATERIAL SUBMITTED FOR THE HEARING RECORD The Honorable Morris K. tUall thairiren, Cannittee on Interior and Insular Affairs U. S. House of Representatives Washington D. C. 20515 Mr. Chairrrtan and rrrenbers of the Ccmrrittee, my narre is Leonard Garrov, President of the United South and Eastern Tribes and I am pleased to testify on the "Indian Housing Act of 1982" on behalf of the twelve federally recognized rrrenber tribes. First, the United South and Eastern Tribes would lire to express our appreciation to you and other members of this Carrnittee for your support and assistance over the years in behalf of HUD Indian housing appropriations. As you are aware, in many places the HUD Indian Housing program has produced very acceptable housing. Nevertheless, there is still a great need and unfortunately it appears that the HUD Indian housing program is caning to an end. "Because there is strength in Unity" UNITED SOUTH AND EASTERN TRIBES, INC. 1101 KermIt Drive * Suite 800 * Nashville, TN 37217.2190 (615) 361.8700 April 29, 1982 Executive Director Rex J. Evans Officers Michael D. Tiger, President Seminole Leonard Garrow, Vice President St. Regis Mohawk Curtis Osceola, Secretary Miccosukee Frank Steve, Treasurer Choctaw Member Tribes Cherokee Chitimacha Choctaw Coushatta Maliseet Miccosukee Mohawk Passamaquoddy Penobscot Seminole Seneca. ~I~1 (327) PAGENO="0334" 328 It is our understarxIing the ~ministration plans to stop the present program through t~partrrent of ibusing and Urban Develo~xtent. This is of paranrunt concern to us at this tine and we wish to make it very clear to you that a housing program for Indians irrust continue. With this understanding in mind we wish to cxxrplirrent you and the other rrwsrbers of this Carrnittee for introducing H. R. 5988 which finally sets out a housing program tailored to the situation in which Irx3Ian people live. H. R. 5988 proposes several innovative and cost conscicus concepts while at the sane tine prarotes the idea of self determination by giving the tribal ~vernrrents the flexibility to establish tribal housing agencies. Placing tie authority as well as the responsibility for housing programs with tie tribal goverrTrents instead of irrposing an outside structure upon us is carrrendable. As an overall observation, we at USEr also appreciate the sections of the bill that allcM us discretion and flexibility to build in a manner we wish, with the materials we wish, while placing a pramium on constructing as many good houses as possible. We also point out that the administration of the program would be sinplified - - it would be a program developed for Indian Reservations rather than an urban program applied to Indian Reservations. It w~ild also reduce the nusber of federal agencies involved in this program fran three to two, but sore inrportantly the two that work with tribal governnents. The three titles of the bill address the needs of three different incare levels of Indian families - 1CM incare, those which can afford a minirmrn sonthly paynent, and those which could afford to obtain financing except for problens associated with the legal status of trust land. Furtherrrore, the inclusion of rehabilitation in all titles is carirendable. PAGENO="0335" 329 Before addressing several sections of the bill in a itore detailed fashion I would be roniiss, if at this point I did not mantion our outright cpposition to the sections of the bill that provide for attachrrent of our trust funds. We understand that along with authority goes responsibility, but we feel this responsibility should be of a contractual nature without the sanctions of attaching our tribal trust funds. With this in mind, USE'r recaimands the following anendrnents to the bill: ~gg~3, line 19 -- "standard housing". While we do not object to the definition of "standard housing" in the bill, we recczrnend that it be made very clear that the standards in the bill are only niinimurns. ~ 6, Sec. 101 (c) -- We understand this bill has to address situations across the country, but we would like this section to make it clear that the preferred trethod of handling this title is by agreenents with tribal governrrents or their tribal housing agencies. ~gg 8, Sec. 103 -- This section is sanewhat unclear with regard to the protection fran the loss of trust land and we recatrnend line 4 be changed to eliminate the reference to land. ~ge 9, Sec. 203 -- Section 203 requires the suhnission of preliminary drawings and specifications with the initial application. There should be provisions for funding to prepare these drawings and specifications. ~ 11, Sec. 205 -- This section harbors the mast potential damage for tribal governrrents and sepowers the Secretary to attach tribal trust funds. The provisions of this section are inecuitable in that tribes with trust 18-934 O-83-----22 PAGENO="0336" 330 funds are put at risk while tribes without trust funds face no collective loss for failing to neet the requirmrents of the Project AgreanEnt. This makes the whole concept of uniform sancticns neaningless. All tribes should be put at the sane risk, or none at all. Tribes which do not perform in accordance with the agreeTents they have signed shaald be prohibited fran receiving additional financing until they have achieved ~epliance with the agreeTents. Page l2~, Sec. 206, line 19 - Cnange 2 per centum to at least 3 per centurn. Page 18, Sec. 212 (b) - Eliminate this section. Separating respensibility for construction and inspection is cot a good idea and may slcm~ project construction arid cause biOkering and inefficiency. Page 22, Sec. 301, line 8 - Insert on line after "families", "or tribes'. Page 29, Sec. 401 - We feel strongly that section 401 be re-written in order that the Bureau will have conies to handle this irrportant and large effort. We also feel it inportant that section 401 (b) be rewritten in order that it be public knc~ledge so that the tribes can knci~s' what it costs to run this program. PAGENO="0337" 331 STATEMENT OF THE NATIONAL CONGRESS OF AMERICAN INDIANS BEFORE THE HOUSE INTERIOR AND INSULAR AFFAIRS COMMITTEE ON H.R. 5988, "THE INDIAN HOUSING ACT OF 1982" APRIL 29, 1982 Mr. Chairman and members of the Committee. My name is David Dunbar, General Counsel for the National Congress of American Indians. I want to thank you for allowing NCAI to present testimony on the proposed Indian Housing Act of 1982. The National Conqress of American Indians is the oldest and most reoresentative national Indian organization in the country today. Over 170 Indian Tribes and Alaska Native Villages, ~~hose combined popula- tions total aooroximately half a million people, are members of our organization. The Indian Housing Act of 1982 is a bold and innovative effort designed to increase the availability of housinq to Indian oeoole. The difficulties Tribes have faced with regard to meeting the housina needs of their people in the past as well as those they will face in the future are of monumental concern, We believe that H.R. 5988 is a positive measure that could potentially meet these tribal housing problems. However there are certain provisions contained in the bill which have a serious adverse effect on Tribes. Therefore, we oropose the followinq amendments and recommendations to H.R. 5988 which we feel will alleviate many of the concerns that our member Tribes have with the bill in its oreserit form. We recommend: 1) Section 3(5) be amended to specif- icallv include Alaska Natives as defined by the Alaska Native Claims Settlement Act, 43 U.S.C. 1601. PAGENO="0338" 332 2) Section 3(11) be amended to include any Alaska Native village or group also as defined by the Alaska Native Claims Settlement Act. Title I: Indian Housing Improvement Fund We recommend that: 1) Section 101(b) and (c)(1) be amended to state that all assistance under this title to eligible individuals and families will be made throuqh the Tribe rather than directly by the Secretary of the Interior. As the hill is currently written, Tribal authority and self-determination are undermined by permitting the Secretary to bypass the Tribes and deal directly with individuals and families. 3) Section 101(c) (3) be amended to state that contracting will be done through the Tribe by tribal contracting procedure rather than permitting the Secretary to contract directly with orivate construction firms. Aqain, we feel that the bill, as currently written, mermits the Secretary and the construction firms to bypass the Tribes resultinq in an undermininq of Tribal authority and self-determination. Further, that lanquaqe be added to require the application of Indian Preference as specified in P.L. 93-938, Section 7(b). Title II: Indian Housing Finance Fund We recommend that: 1) Section203(c) be amended to allow the Tribe to decide for itself whether or not it should PAGENO="0339" 333 establish a tribal housing agency, and include language stating that should a tribal government wish to admin- ister the program itself, then a waiver of sovereign immunity from suit would be required. 2) Section 205 should be elimited. We seriously question this Section in its present form. tjnwillingness to com- promise tribal trust funds should not be a prerequisite *to the securement of services under the Act. We stongly recommend that other language be used or other methods less disasterous to Tribes be sought as an alternative to the present requirement. However, if Section 205 remains, we recommend that Section 205(d) he amended. The 30-days written notice is too short. If a loss of trust funds is to occur, then a longer period of time -- 90 days -- should be offered in order to effectuate remedial as well as long-term alternatives. 4) Section 211(c) he amended by deleting lanquaqe authoriz- ing attachment of Tribal trust funds. Also, given that the Secretary is permitted to place sanctions against a Tribe, we recommend that the Section he amended by chanqing the time from 30 days to 90 days, thereby giving the Tribe an opportunity to cure ootential defaults. 5) Section 215 be amended to reauire the application of Indian Preference as stipulated in P.L. 93-638, a 7(b) 7(b). Title III: Indian Housing Loan Guaranty Fund Section 309(a)(1) be amended to snecificallv include Tribal courts as "court of comtetent jurisdiction" in PAGENO="0340" 334 the event of foreclosures proceedings and/or include languaq stating that an appropriate tribal forum will be utilized toe resolve a foreclosure action before going outside of the Tribe for resolution. Title IV: Miscellaneous Provisions We recommend: Section 401(c) be amended to specifically define the percentage of monies appropriated for administration of the programs, or add a new section authorizing administration costs. Other Recommenda~pp5 We further recommend that: 1) allowing Tribes to contract all or any of the programs unclet 638 contracting provisions, this reducing the Bureau's costs involved with administeriflo the program(s), and would provide gainful employment at ~the tribal level, and affirm Tribal authority and self-determination. 2) the addition of a new section to Title IV authorizing funding for repairs or new construction performed directly by the Bureau as authorized by Section 101(c)(4). A separate source of money must be identified for this activity so that the orimarv program funds will not he affected. In the alternative tribes should also have authority to contract these activities from the Bureau under 638 contracting provisions. If Tribes are allowed to contract it would further reduce the Bureau's costs involved with administering new construction and reoair activities, PAGENO="0341" 335 provide gainful employment at the tribal level, and affirm tribal authority and self-determination. 3) Section 104 does not contain any assurances or guarantees that the houses built, acquired or reoaired under this Title will remain under the central and jurisdiction of the Tribe upon whose land it resides. Provisions must he accorded to available tribal revenues and market demand in terms of ability to oay. 4) Section 2O9(c) states that the house financed under this Title could be reacquired by the Tribe at fair market value." Prevailing market conditions, locations and utilization potential~should be considered in ampraisinq these units. In closinq, we want to say that H.R. 5988 brings to the attention of everyone concerned the housing needs of Indian and Alaska Native people. There is a need for innovative methods to improve financing of Indian housinq construction, acquisition, rehabilitation and reoair. We encourage this and other Committees responsible for and concerned about housing needs of Indian and Alaska Native oeople to continue to assist in seeking such methods for the betterment of all Indian and Alaska Native people. I will he happy to resoond to questions at this time. Thank you. PAGENO="0342" 336 STATEMENT OF DALLAS B. HARRISON, EXECUTIVE DIRECTOR CROW CREEK HOUSING AUTHORITY FORT THOMPSON, SOUTH DAKOTA BEFORE THE HOUSING COMMITTEE ON INDIAN AND 1NSULAS AFFAIRS APRIL 20, 1982 Mr. Chairman and Members of t~e Co~nnitt~e, thank you for giving me this oppor- tunity to testify on behalf of the Crow Creek Ind~an Reserva::ion of South Dakota and the Housing Authority of the Crow Creek Sioux The is to the Indian Housing Act of 1982. 275 units of Low-Income housing have been built under programs funded by Housing Urban Development (HUD) These inciuc~i 187 units of Low-rent housing and 88 units of Mutual Selp Help. All have been constructed on the Crow Creek Indian Reserva- tion, the Local Housiry Authority has an approved program for twenty (20) more units that were scheduled 10 be built in FY 81. Furthar, a Comp~oensive Modern- ization Project has been ~uhmitLed Lo HUD for renovuLion of existing substandard un I ts. However, even with :h~ `OlE housing conditions and the propo~ed modernization project, there still exists a severe h~usng shortage on the Crow Creek Indian Reservation. There it a rental waiting list file consisting of 80 people or more, some of these people have families of 5 or 6, and have been on the waiting list for three (3) years or more. Families have been doubling up in their units which is against HUD regulations and the cause of many domestic problems. The Crow Creek Reservation' have learoed that the present Administration has not requested any Indian Housing units through the MUD orogram for FY 83 and is seeking to recind the FY 82 funds for Indian Housing that were appropriated by Congress. We would like to bring to the Committee's attention the strong need for an Indian Mousing Program for all South Dakota Indian Reservations. PAGENO="0343" 337 Presently, there are over200 unsolicited applications pending ;:ith the Crow Creek* Housing Authority. This does not tclud~ appi icat ions for renov;'t ion of exisLinq substandard units. It should be interesting to know of t~e 275 Indian families now residing in Crow Creek Housing Authority units, over 5O~ of these Indian families are receiving some type of Government Assistance. Furthermore, the Crow Creek Indian Reservation is presently experiencing a 752~ unemployment rate. After an examination of the proposed Indian Housing Act 1982, one advantage is readily apparent. Historically, the Secrntary of the Interior has served as the principal trustee for the Indian peaple. i~nera''y, the Secretary has the respon- sibility of executing ~ic policies of the government tow.rds Indian people. Other programs designed to imprcve the wel1 being of indianpeople generally operate through tin, Depa rtmen I tin. Inter or Tin Depar teen I of Hous im,cj and Urban Development does not have that historical relationship with the tribes. There- fore, this proposed Indian Housing Act 1982 will be placed in a department that already has the goal of serving Indian people. One of the major failures of the PUP Indian Ho~sing program has been the inability to meet the unique needs of the various indian coninunities. Ths is apparent in several ways. First, HUt) Ins forced a housing structure on the Indian people that is over-built. This iict sets forth certain minhnum ~talldards that must be met, whereas, HUD over-regulated the type of house that must be built. Second, the HUD guidelines for admissions are so restrictive that many Indian people who are capable of being homeowners are eliminated from the Mutual Help program. As everyone is aware, homeowriership can be very expensive includnq the conl of main- tenance and Ut iii t i us. Ilmmde r LIme HUll mm ram on 1 y tile Very 1)00 r a rI qua I iii ed admission. Unfortunately, these families cannot afford the routine maintenance and high cost of utilities. Finally, a Tribal Housing Authority must maintain a working relationship with three (3) qovernme~ dcpartment., IIUD, Indian u1~)ltii PAGENO="0344" 338 Service and the Bureau of Indian Alloir'. By transferrint, hi rtr.vu to th Inte ior, the number of qovernment departments is reduced to `mo (?) This proposed Act has several stronq features that the HUE' proqra~it doe' ut l,.,vu. Under this Act both the very low income, the tage earner and the moderate income may be served. Second, it combines a'I Indain Housing programs into one depart- ment; i.e. Housing Improvement Program, Indian Hous'ig Finance turd and the Indian Housing Loan Guarantee Fund. A further feature of this bill is that is provides appropriate sanctic~s for the failure of a tribal Housing Agency to eroperly administer their reram. Further- more, this bill allows for quarterly mo: - :orino ot the residual receipts and an annual audit. This will allow the Secretary to give or stop assistance to a Tribal Housing Agency when a problem begins and not after it has developed over several years. However, there are some recomedations th: we believe should be included in the Act. The Act makes no specific reference to the abiiity of a tribe or Tribal Housing Agency to Force Account their yearly alcr~tions. Some tribes ha~ the capability and expertise, which would allow them to construct their own units. A Tribal Housing Agency building their own units would reduce the cost of pro- ducing a unit by 20 - 25 percent. This woo' allow the tribe to build rtre houses with their yearly allocations. Therefore, we would recommend that language be included to allow the Force Account ~thod of construction. A second recorretendation would be that this Act be subject to the Indian Self- Determination Act (93-638). An Indian tribe, if it should have the capacity, should be allowed to contract this program from the Bureau of Indian Affairs. We recommend the Department of the Interior (BIA) to take great consideration in the hiring and placteit at cualifiod housing proessionals in Is program. PAGENO="0345" 339 A final recommendation would be that nothing in this Act would be construed to prohibit a Tribal Housincj Agency trots participating in housing projrams of other government departments arid agencies. In conclusion, we urgently ask for you~ consideration on this Act. This Act properly transfers the responsibility ol housing to Iriba! government, providing tribal government the necessary flexibH~ty to meet the needs of all of its members. PAGENO="0346" 340 ST1~TEMENT OF AL AUBERTIN, CHAIRMAN COLVIILE BUSINESS COUNCUJ AT HEARINGS ON H. R. 5988 CO~4ITIBE ON INEERIOR AND INSULAR AFFAIRS April 29, 1982 The Confederated Tribes of the Colville Reservation support, in prin- ciple, enacbsent of H. R. 5988 -- the Indian Housing Act of 1982. * We are troubled, however, by the provision of section 205 which empow- * ers the Secretary of the Interior to attach any trust funds of an Indian * tribe in the event that its tribal housing agency fails to pay to the In- dian housing finance, fund the arrount agreed to in the project agreement. To the best of our knowledge, no federal housing laws providing assist- ance to States or local units of government for non-Indian housing programs empower the United States to resort to similar attachments. We are concerned that similar rarpiirarnents may', in the future, be irn- posed with respect to other credit programs benefiting Indian tribes. With tribal credit needs far in excess of tribal trust funds, tribes with trust funds could be subject to credit rationing, while tribes without trust funds ~u1d not be, under the principle established in the present bill. The provisions, of section 205 have the effect of penalizing certain tribes for their prudence in establishing trust funds, since those tr~ibes that have been able, but have not chosen, to establish trust funds will be eligible for funding on the same footing .as mare prudent tribes.* t~reover, section 205 nay act as a disincentive for the creation of new funds. It will also alrrost certainly encourage tribes in the gears ahead to seek provisos in new trust fund legislation which would exempt them fran this section, thus creating a double standard for funding. We are also concerned that section 205 could provoke strong political~ opposition to Title II housing projects within Indian tribes fran machers who believe that the beneficiaries of a housing program as a class, rather than the tribal narr~bership as a whole, are the mare appropriate party to look to for repayment. We urge,, therefore, that section 205 be amended to delete the provision empowering the Secretary to attach tribal trust funds and that the Corumittee explore mare appropriate ways to help assure payment of rronies owing to the fund. PAGENO="0347" 341 We have the following additional cciiments : Title III, which establishes the Indian housing loan guarantee fund for Indian families, should be amended to enable Indian tribes to partici- pate in the fund. Section 302 should be amended to make clear what we understand to be the intent of this section -- that it does not authorize, as security for loans, any encu~nbrance of trust land, liens on leaseholds in trUst lands or assignments of inccma fran trust lands or other assets,* which are not à.l- ready authorized under existing law. Finally, the Colville Tribes reccernend that H. R. 5988 be amended to authorize Indian tribes to issue irortage revenue bonds. Under section 103 of the Tax Code, this authority is granted to state and local unite of govern- ment, but not to Indian tribes. The proposed Indian Tribal Governmental Tax Status Act (H.R. 3760), sponsored by a nucher of* meithers of this Coirmittee, ~ould cure this and a nunber of defects in the Code as it affects tribes. No action, hcMeve.r, is scheduled on H. R. .3760 by the Ways and Means Carrinittee. Rather than let this important opportunity to broaden the sources of financ- ing for Indian housing pass without addressing the rrmrtgage revenue bond is- sue and recognizing the jurisdictional problem raised by the Interior Com- mittee acting on a tax matter, we suggest adoption of the amendment and sub- sequent referral of H. R. 5988 to the Ways and Means Ccrrrnittee. In closing, the Colville Confederated Tribes wish to express their ap- preciation to the sponsors of H. R. 5988 and to the Ccernittee ~taff for this landmark initiative to remedy the deplorable housing conditions under which so many Indian families live. PAGENO="0348" 342 WRITTEN TESTIMONY on H. R. 5988, THE INDIAN HOUSING ACT OF 1982 Submitted to: THE HONORABLE MORRIS UDALL, CHAIRMAN HOUSE INTERIOR ~j) INSULAR AFFAIRS COMMITTEE U. S. House of Representatives by: PHILLIP MARTIN, CHIEF MISSISSIPPI BAND OF CHOCTAW INDIANS and PRESIDENT, NATIONAL TRIBAL CHAIRMEN'S ASSOCIATION Route 7 Box 21 Philadelphia MS 39350 April 29, 1982 PAGENO="0349" 343 My name is Phillip Martin, and I am the elected Chief of the Mississippi Band of Choctaw Indians, a federally-recognized tribe of some 4,800 members in east central Mississippi, as well as the current President of the National Tribal Chairmen's Assocation. Most all of the recognized tribes are extremely pleased that the Congress has taken steps to obtain a comprehensive view of the Indian housing situation and to try to bring some measure of reason and coordi- nation to an effort which is currently fragmented and oftentimes confusing to tribal governments. While we at Choctaw realize there is nothing in H.R. 5988 addressing the BUD housing program, it is obvious that upon enactment the Administration will doubtless move to eliminate the HUD program. I believe we can live with this if and when it happens, if the bill can be fine-tuned to avoid the problems we have run into with HUD over the years. Many of these problems have arisen because MUD officials have treated Indian housing programs as a sort of "step-child," which I hope would not happen with this BIA program. Current MUD programs could be made much more workable through the establishment of a position of Assistant Secretary for Indian Programs; but 14 months of our request on this matter have fallen on deaf ears. Perhaps the most appealing feature of the proposed Indian Housing Program to me, as a tribal elected official firmly committed to the idea of Self-Determination, is the flexibility given to tribes in the establishment of the "tribal housing agency" defined in section 3 (10). One of the really major barriers to effectiveness in the current program has been the imposition by HUD of aHousing Authority structure which is exactly like that in major urban centers and of course totally foreign to the PAGENO="0350" 344 rural, reservation environment. This imposition of an alien organizational unit has caused a high level of dissention at the reservation level. I would venture to guess that even today on most reservations the Housing Authorities and the tribal governments are working at cross purposes. Basing authority for the tribal housing agency in the tribal government will be welcomed by the progressive tribes. Within this context, I have several suggestions to make which could improve the proposed bill significantly and help the tribal governments to avoid some of the pitfalls which we have encountered in the past. Title I, Sec. 103 (a): This section authorizes the Secretary to approve the lease or sale of trust land if provisions in Section 104 are met. Since Section 104 merely provides for the Government to recoup its investment and for the tribe to have first refusal rights on the sale of the house, it would appear, should the tribe be unable to purchase the house, the Secretary is authorized to sell the house and the trust land on which it sits. The language in this section should be changed to make it absolutely clear that the Secretary has no authority to sell any trust land. Title II, Sec. 203 (a): The application process for new housing construction is set up in a manner that requires preliminary drawings and specifications to be submitted with the initial application. Following submission of the application, the project is approved or disapproved. If approved, a Project Agreement is entered into, and following this an initial disbursement for preliminary planning purposes can be made. This will not work. It requires tribes or tribal housing agencies to expend funds they do not have for a project they do not know they will PAGENO="0351" 345 be awarded. It is unnecessary to have preliminary drawings and specifications as part of the initial application process. The units should first be reserved, based on the initial application, followed by disbursement of preliminary planning funds, and the Project Agreement can be entered ~:~- ~ ~-~~E.oilo~ ing submission and approval of drawings and specifications and all the other requirements of a development project. Title II, Sec. 203 (b): This subsection sets forth criteria for evaluating and approving applications for new construction financing. The criteria listed here in (b) (1), (2) and (3) repeat mistakes of the past by allocating housing units on a basis other than performance and capacity. Section (b) (1) gives priority to tribes which have not received funding in prior years. This type of priority removes competition from the process, ignores the quality of the application, and penalizes tribes with high performance records simply because they won in prior years. Section (b) (2) requires the BIA to `determine" the administrative and accounting capability of Tribes to implement the proposed project. The language here should be more specific and this should be the number one criterion for determining if a project is to be approved or not. The determining factors should be: financial and management audit findings; status of accounts receivable; status of land, water and sanitation facilities for the project; the tribal housing agency's performance in moving previous development projects from award of funding to construction; and the quality of previous construction contract administration. Competent review and enforcement of these factors will eliminate pipeline buildup and deobligations following award of financing. PAGENO="0352" 346 Section (b) (3) makes the percentage of substandard housing units of the Tribe a determining factor in the award of financing for new projects. Like (b) (1), this is an irrelevant criterion which penalizes high performance. It means that a tribe which has successfully reduced the number of substandard units in its area must wait for the others to catch up before it can compete with them. In effect, no tribe will ever be able to meet all of its housing needs. Looking at only percentage of substandard units also ignores the fact that overcrowding is probably as big a problem as substandard units. Standard units with three families occupying them soon become substandard units. The provisions of (b) section (4) require the BIA to check the unmet housing needs of tribes applying for assistance. This will insure that tribes are not awarded more units then they need. Once it has been determined that the units a tribe is applying for are actually needed, there should be no other consideration other than its performance record in developing and managing housing projects. Title II, Sec. 205: This section which harbors the most potential damage for tribal governments, empowers-the Secretary to attach tribal trust funds, requires inclusion in Project Agreements tribal consent to attachment of trust funds to the extent that tribal housing agencies fail to pay agreed upon amounts to the Indian Housing Finance Fund, and provides 30 days' written notice of the Secretary's intent to attach the trust fund. Subsection (C) of this section, however, prohibits the Secretary from refusing to enter into a Project Agreement with a tribe that does not have a trust fund. The provisions of this section are inequitable in that tribes with trust funds are put at risk while tribes without trust funds face no collective loss for failing to meet the requirements of the Project Agreement. This makes the whole concept of uniform sanctions meaningless. All tribes should be put at PAGENO="0353" 347 the same risk, or none at all. Effective enforcement of the regulations by the administering federal agency would prevent a serious buildup in collection problems. Tribes which do not perform in accordance with the agreements they have signed should be prohibited from receiving additional financing until they have achieved compliance with the agreements. That alone would be incentive enough for tribes to place their tribal housing agency under proper management. The provision for attachment of trust funds should be eliminated. Title II, Sec. 212(b): Responsibility for construction inspection is placed in the Indian Health Service. This is a bad idea. First, the IHS does not have the qualified staff to perform this function. Secondly, it requires rival bureaucracies to work hand-in-glove on the same project. The construction project will suffer from time-lags, confusion, bickering, inefficiency, and two slow-moving bureaucracies instead of one. It is bad enough having water and sewer development in an agency separate from housing development. We do not need to make it worse. Allow the BIA to inspect its own projects. Title II, Sec. 212 (c): This sets out in specific detail the types and percentages of bonds required on construction contracts. The law should simply require bid bonds, performance bonds, and payment bonds. The regulations can set percentages. Some flexibility is needed here. Title II, Sec. 215: A sentence should be added here requiring Indian Preference in Contracting in line with the current HUD Indian Housing Regulations. There is no point in leaving this to chance and PAGENO="0354" 348 hoping it will emerge in whatever regulations are written by the BIA for this program. It will simply waste everyone's time in refighting the same old battles. Title III, Sec. 309 (a): This section makes provision for lenders to collect on guaranteed loans made on trust land in the event of default. Subsection (a) (1) provides for the lender to initiate foreclosure proceedings in Tribal Court, while (a) (2) provides that the lender may go directly to the Secretary and receive 95 per cent of the amount guaranteed. It is doubtful that much lender interest will be generated under these provisions. A 95 per cent guarantee (resulting in a five per cent loss) is probably worthless as an enticement to lenders. The prospect of going into Tribal Court on a foreclosure will not gladden many hearts in the banking industry. If a Guaranteed Housing Loan program is to have some chance of success, federal preemption in foreclosure situations is required. Thank you. PAGENO="0355" 349 STAPEMENF OF MAX H. NORRIS, CHAIRMAN PAPAGO TRIBE OF ~RIZOHA AT HEARINGS ON H.R. 5988 CONMITPEE ON INPERIOR 1~ND INSULAR AFFAIRS April 29, 1982 Mr. Chairman, the Papago Tribe of Arizona supports, in principle, enactment of H. R. 5988 -- the Indian Housing Act of 1982. We appre- ciate your sponsorship of this important legislation, the bipartisan concern of the canrnittee with the acute housing needs of Indian tribes, and the hard work of conmittee staff in helping frame the bill. We object, however, to the provision of section 205 which empowers the Secretary of the Interior to attach any trust funds of an Indian tribe in the event that its tribal housing agency fails to pay to the Indian housing finance fund the arrount agreed to in the project agreement. Section 205 is in direct conflict with the intent of section 9 of H,R. 5118 -- the Southern Arizona Water Rights Settlement Act -- which you sponsored and which was passed by the House in March 1982. Section 9 of H.R. 5118 establishes a trust fund to be used exclusive- ly for water development on the Papago Reservation. This trust fund is part of the settlement of our claims for water and for past damages for injuries to water rights in Upper. Santa Cruz and Avra/Altar water basins. The limitation imposed on the use of the trust fund, in H.R. 5118 is included to assure that income fran the fund would be devoted to the economic development of the Tribe s trust land and not dissipated through per-capita payments. Section 205 of H.S. 5988 would allow the Secretary to recapture conies from our water-rights settlement in the event the tribal housing agency is unable to repay its obligations under Title II of the housing bill. Re- capture of the trust fund income would have the effect of impairing the Tribe's ability to develop its trust land and place the United States in' a position of violating its owr~ trust obligation to the Papago Tribe to do nothing to impair the ability of the Tribe to protect and develop its water and land resources. We submit that the best guarantee of repayment of Title II financing would be a strong tribal economy. We urge, therefore,' that section 205 be amended to delete the provision `empowering the Secretary to attach tribal trust. funds and `that the Corrinittee explore core appropriate ways to he1p~assure payment `of. conies owing to thO fund. PAGENO="0356" 350 We have the following additional camenta: Section 203(b), which estab]ishes the criteria for evaluating funding applications, should be amer~od to include the craditworthiness of the tribe. Such intent rray be irnpliod in section 203(b) (2), but neods to be made explicit. We note. that the Secretary may, under Section 211(c) (1), declare a tribe ineligible for further hot~sing assistance fran the fund if the tribe or agency is in default. Making .the repayment record of the tribe one of the explicit criteria under section 203(b) affords the Secre- tary an optional middle ground between perrç~issiyeness and an outright bar to further funding. Title III, which establishes the Indian housing loan guarantee fund for Indian families, should be ainendod tO enable Indian tribes to partici- pate in the fund. Section 302, should be amended to make clear that we understand to be the intent of this section - that it does r~t authorize, as security for loans, any encuithrance of trust land, liens on leaseholds in trust lands or assignments of incare fran trust, lands or Other assets, which are n~t already authorized under existing law. Finally, the Papago Tribe recarrrends that H.R. 5988 be an ended to authorize Indian tribes to issue rrortgage revenue bonds. Under section 103 of the Tax Code, this authority is granted to state and local units of government, but not to Indian tribes.. The proposed Indian Tribal Gnvern- mental Tax Status Act (H.R. 3760), sponsored by a nuither of irembers of this Corrinittee, would cure this and a nuither of defects in the Code as it affects tribes. No action, however, is scheduled on H. R. 3760 .by the Ways and Means Coitinittee. Rather than let this important opportunity to broaden the sources of financing for Indian housing pass without addressing the rrortgage revenue bond issue and recognizing the jurisdictional problem raised by the Interior Committee acting on a tax matter, we suggest adop- tion of the amendment and subsai~uent referral of H.R. 5988 to the Ways and Means Carmnittee. Your support of the Papago Tribe and other Indian tribes in sponsoring this legislation will hasten the day when Indian parents can expect their children to grow up in decent, safe, and affordable housing. PAGENO="0357" 351 United States Department of the Interior OFFICE OF THE SECRETARY WASHINGTON, D.C. 20240 AR~ 14~ Mr. Frederick N. Khedouri Associate Director for Natural Resources Energy and Science Executive Office of the President Office of Management and Budget Washington, D. C. 20503 L~ar Mr. Khedouri: Thank you for your letter requesting the findings of the Interagency Indian housing study. The findings are incorporated in the enclosed position paper on the Indian housing program. Also enclosed are the cost estimates for the program recommendations. The analysis you request of the five alternative housing program mechanisms discussed at a prior task force meeting is enclosed in the "Staff Report" on the Indian housing delivery system prepared by HUD. HUD has indicated a preference for Option 116 in that Report. I cannot endorse the MUD prefered Option 116 because it is apparently a more expensive approach, administratively complex, and involves a 30-year Federal annually variable subsidy commitment to each housing unit produced. More importantly, it provides no assurance that housing will actually be produced in Indian areas. Also enclosed is correspondence from the other two task force members (r~partment of Agriculture and HHS) indicating their support for our enclosed position paper. The recommendations in that position paper are consistent with H.R. 5988. We are preparing a report on that bill which will include some recommended amendments. I have appreciated your cooperation on this difficult Indian housing study. My staff is available to meet with you or your staff should you have questions or wish further information on the position paper. Sincerely, Assis ant Secretary - Indian Affairs Enclosures PAGENO="0358" 352 DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS POSITION PAPER I. BACKGROUND The housing goal for Indian people follows the national housing goal for a decent home in a suitable living environment. In Indian areas it is not necessarily that one is an Indian that one cannot obtain decent housing, but it is because one lives on trust land and is normally of modest means and income that has thus far limited the progress of Indian housing. The Federal trust responsibility with respect to Indian lands is one of the most important manifestations of the trust relationship. Under the trust responsibility, the Federal Government has applied special ptotections on both tribal and allotted Indian lands for the benefit of the Indian owners. In most cases, the Federal Government actually holds legal title to tribal or allotted lands in trust for the Indian owners. In other cases, although the Indians hold legal title to the land, Federal law imposes special trust restrictions on the land. In both cases, Indians are the beneficial owners of the land, but the Federal Government imposes or may impose restrictions on the use and disposition of the land necessary to the fulfillment of its trust responsibility. Indian people live in reservation areas (except for Oklahoma, most of Alaska, and some of California) stretching from Maine to California and Florida to Alaska. Most of these reservations or PAGENO="0359" 353 areas aremade up of trust or restricted land. The population of individual reservations or locations range from a few families to the large Navajo reservation that has some 30,000 families. The economic situation also varies greatly with relatively decent incomes in those areas with natural resources and/or industries to areas that are isolated and lack any economic resources making the families almost solely dependent on public assistance. The degree of integration in the surrounding society ranges from Oklahoma, Alaska, and parts of California where there are a few reservations to the upper plains and Southwest areas that are almost all reservation areas. Present BIA Statistics (annual inventory attached) show 84,200 housing units in standard condition and 60,800 housing units in substandard condition. Of those in substandard condition, 28,800 need to be replaced. In addition, there are 31,400 families needing housing, making for some 60,200 new housing units required. It is estimated that between l57~ and 20~h of those families needing housing or substantial repairs cannot afford to pay for either the housing or the repairs, or under the best of circumstances, can afford to pay only the very minimum. It is also estimated that some 10% of those families requiring new housing could pay an economic rent if long term mortgage money were available. The remainder of the families lie in between the two extremes, with some ability to pay but requiring some form of subsidy. PAGENO="0360" 354 The major housing program supplying housing to Indian people is financed by the Departnent of Housing and Urban Developnent (HUD) under the United States Housing Act of 1937, as amended. The second most important Indian housing program, the Housing Improvement Pro- gram (HIP) is funded by the Bureau of Indian Affairs (BIA). For the most part, the water and sanitation facilities for these programs are funded by the Indian Health Service (IHS). Some new housing is also supplied to the housing stock, by the FrnBA, VA, Tribal Credit programs, and private financing sources. Some of these housing efforts have met with limited success but their use is only on a very small scale and the number of units constructed have not been significamt, mainly due to the trust land situation. These programs are sporadic or "ome~ shot" efforts and have not been successful in providing rural areas with a low income housing delivery system on a continuing basis. The Public Housing Program, the major HUD housing program for Indian areas financed i.nider the United States Housing Act, is the same program that finances the heavily subsidized urban housing programs in the United States. Although the Public Housing Program went through several changes as a -result of new directions for urban housing, the backbone of the program in use in Indian areas continues to be the traditionally financed Public Housing Program. This particular housing program was chosen to finance Indian housing because of the deep subsidy the program provided. The BIA PAGENO="0361" 355 and the t~hen Public Housing Administration (PHA) developed and implemented the program in use in Indian areas by a series of agreements beginning in 1963. The key program then being implemented, i.e., the Mutual Help Program, required a rather large housing staff and direct administrative support. The BIA's willingness to supply this staff and technical support was decisive in having PHA begin the program. In fact, this commitment was the basis for the original Agreement which essentially was an agreement to subsidize the PHA by supplying staff for an agonizingly slow and administratively expensive housing effort. As the program expanded, evolved and changed, the realities of the situation dictated a change in the BIAs role to one of supplying technical assistance to the housing authorities and technical and financial support for certain of the infrastructure necessary for an urban type housing project effort. For example, as the trustee, the BIA assists with and supplies leases required by the HUD Indian Housing Program. The BIA also does appraisal work, provides advice to the housing authorities, and is responsible for construction of access roads. In addition to agreements setting out responsibilities, as the HUD program grew and became more complex, HUD, BIA and IHS also required better budget coordination. As a result, an agreement was reached in 1969 that set out production targets. This "level of effort" agreement for a five year period increased the HUD production targets dramatically and provided the basis that enabled the IHS to obtain the necessary funding to serve the Housing programs. The growth of the HIP effort was also tied to the IHS PAGENO="0362" 356 responsibility for water and sanitation facilities. The admin- istratively set production targets in the 1969 memo of under- standing. however, were not re-enforced by legislation until the set-aside of contract authority for Indian housing which appeared in the 1974 Housing Act. Although the program changed little in recent years, regu- lations were finally published in 1976 and were revised again in 1979. Regulations and administrative changes, notwithstanding, the program continued to be plagued with overly long construction times resulting in a backlog or "pipeline", high cost and a co~p1icated and difficult delivery system. In spite of these drawbacks, housing production began to accelerate and by the end of the 70's was in the 4,000 to 5,000 units per year range. The housing produced in most cases was also of an acceptable quality. II. PRESENT SITUATION In response to the zeroing of the HUD Indian housing program and a reduction in sanitation facilities construction in the Indian Health Service (IHS), the Administration has been on record as being firmly committed to undertaking a complete review of Indian housing and related programs with the objectives of: (1) drawing private capital to Indian reservations for housing development; and (2) improving housing delivery mechanisms. The Administration's objections to the present HUD program were as follows: (1) the program is too expensive; (2) its PAGENO="0363" 357 delivery system is too cumbersome/complicated to administer; (3) too many units are in the pipeline; and (4) there is poor management by Indian housing authorities. While the review of Indian housing was getting underway, the President's Commission on Housing was established to advise the President and the Secretary of HUD with respect to options for the development of a national housing policy and the role and objectives of the Government in future housing availability. The Committee on Federal Housing Programs and Alternatives of the President's Commission issued draft recommendations for the low-income housing program on September 15, 1981. These recommendations would markedly alter present subsidized housing programs. One of the programs to undergo change is the Public Housing Program which, as was mentioned, subsidizes the bulk of new housing in Indian areas. This basically urban program is to be modified and would follow lines that would ultimately transform it into a Consumer Housing Payments Program. The cornerstone of the proposed housing plan is a recommendation that the primary Federal program for helping low-income families achieve decent housing should be a voucher system. One major drawback that makes housing vouchers an impractical and unacceptable concept for Indian areas is the absence of a supply of standard rental units on Indian lands. The Committee PAGENO="0364" 358 also recOmmends that new construction be added as an eligible activity for Community Development Block Grants (CDBG) to expand local flexibility. The Committee recognizes that this will require additi?y~al funding to support this additional activity when budget circumstances are favorable. In addition, the report emphasizes that the use of Block Grants for new construction is an additional use to be combined with other options and financial incentives such as tax exempt bonds. Clearly, should Block Grants be used for ~ew construction in Indian areas, this would be their sole use and not an additional use to expand local flexibility. More- over, Block Grants carry with them no long term commitment. We are, therefore, faced with a situation wherein the major program now in use for financing new housing in reservation areas will be~ drastically altered to the point of being unworkable without a viable alternative available. The situation is further complicated because to provide for an exception and thus continue the present program for Indians, while discontinuing it for others in the society, may create an administrative anomaly for BUD. In order to continue to meet the commitment to decently house the Indian people, and, therefore not break the promise of decent shelter - a promise made by statute less than 20 years ago - an approach needs to be agreed upon that would be able to provide for a housing program tailored to the special conditions existing in Indian areas. In mid-September, 1981, a task force, headed by Kenneth Smith, Assistant Secretary for Indian Affairs at Interior, PAGENO="0365" 359 and including policy officials from HUD, Health and Human Services (HHS), and the United States Department of Agriculture (USDA) began work on review of the programs. Naturally, the review of Indian housing programs must deal with the special conditions found in Indian areas as well as the objections to the present HUD Indian housing program. III. SPECIAL CONDITIONS For some years now there has been an emerging middl.e income group, who, were they not living on trust land, would have availed themselves of the conventional financing opportunities available to such groups. Conventional lenders, however, are unwilling to lend to Indians living on Indian reservations and in Indian areac, especially those on trust land, because they are neither able to enforce the lein nor are they able to market the house in case of default. This has created a situation where those people who can afford housing are the ones least likely to have decent housing available to them. One major result of the lack of conventional financing has been an adverse effect on economic development. Housing opportunities for the people needed to work and manage new or developing reservation businesses are almost non-existent. In the absence of availability of housing, economic development is adversely impacted. Another special condition is presented by remote Alaskan villages. The location and climatic conditions and for many the subsistance nature of these villages require a separate PAGENO="0366" 360 housing effort. The logistics alone needed to supply everything from materials, tools, and appliances are so exacting and costly that they must be an important part of any housing effort. Severe geographic and climatic conditions which cause permafrost, extremes of temperature, lack of a suitable construction season, and truly different site conditions make separate treatment for a housing program almost a requirement. In addition to the above differences, the distances involved in am Alaskan effort require a distinct administrative structure. Spread through an Indian housing effort, whether in Alaska or elsewhere, is also the recognition that location, lifestyles, culture and tradition nay call for different designs and building methods. At a minimum, flexible standards to meet local conditions should be a part of any Indian housing effort. A third special condition speaks to the overall situations found in Indian areas. Many reports and studies in past years including several GAO reports recognize the necessity of a coordinated and consolidated approach to Indian housing that acknowledges as very special conditions, very low incomes, isolated rural geographical locations, special relationships to the Federal Government, and the unique situation with regard to trust land. These reports also go on to say these conditions are so special that for a program that already requires the PAGENO="0367" 361 support of a complex infrastructure, the housing effort should be consolidated into a single agency. This one agency approach will eliminate or ameliorate the conditions that cause the program to be so terribly expensive, the process so time-consuming and frustrating, and in some cases, the product after all this effort so un-satisfactory. IV. CONCLUSIONS S The opportunity to obtain decent housing should be made available to all income segments of the Indian population living on trust land. This should be accomplished by creating a situation that will provide for an available range of financing in order to house those persons who need to be subsidized and those who do not. The program should recognize the very special conditions under which and the uniqueness of the land situation on which Indian families live. This recognition should extend to an understanding that has become evident during the years that the HUD housing program has been in operation. This understanding simply stated is that it is too cumbersome, too time-consuming and un-economical to have three (3) Federal Agencies build one house. Accordingly, because the housing effort is inexorably tied to the land upon which it is built; because in Indian areas this land for the most part is trust land; because the Interior 18-934 O-83----24 PAGENO="0368" 362 Department supplies the infrastructure needed for a housing program; therefore, the one Agency that should be designated the housing responsibility is the Department of the Interior. V. RECOMMENDATIONS Develop or support legislation that establishes a compre- hensive Indian housing program in the Bureau of Indian Affairs. This legislation should at a minimum provide for the following programs: Loan Guarantees Serve the growing segment of the population that can afford housing by a guarantee program that will remove the obstacles now present that inhibit lenders from making long term mortgage money available on trust land. This guarantee segment of the comprehensive housing program will enable conventional lending sources to operate on trust land by removing the problems of the enforceability of the lien and the marketability of the product. The loans guaranteed under this program will bear market rate interest no greater than that being charged by lenders for home mortgages in the general area. The mortgage can be made for up to thirty-three (33) years by any lender satisfactory to the Secretary of the Interior. The program will address the major obstacles to home mortgage lenders by providing for a satisfactory arrangement in case of defaults. PAGENO="0369" 363 Revolving Housing Fund Serve the largest segment of the population - those that need some subsidy - by establishing an Indian housing f~nancing fund for the purpose of providing financing for the construction or rehabilitation of standard housing. This segment of the program will require a repayment in accordance with the families' "ability to pay". The recipients of housing under this part of theoverall housing program will pay in accordance with their income for a fixed period of time. The basic program thrust will be for horneownership, obtainable if the individual meets the monthly payment. The participant will be responsible for maintenance and utilities. The tribe or tribal housing authority will administer the program and return to the Federal Government the receipts collected over and above the cost of administration. This program will serve those people who cannot be served under the guarantee and would by virtue of being able to make some payment be ineligible for a grant. Housing Improvement Pr~g~ Serve the very poor, very isolated people who cannot be helped by any other program by a grant program similar to the present HIP, with an increased emphasis on making repairs that will place housing in standard condition and thus preserve the existing housing stock. It will also PAGENO="0370" 3M build some new housing for those who cannot be assisted by the revolving housing fund or the guarantee. The money will be allocated to the tribe or tribal housing agency, granted ditrectly to an individual, or administered by the Government, whichever is the most effective. It will generally follow the present HIP where the benefits are direct and the program has proven cost effective and a very satisfactory way to serve persons who need this type of assistance. This part of the comprehensive program will also be used to serve remote Alaskan villages. The remote village effort will incorporate different standards and energy saving features. These different standards will also relate to heating, plumbing, and electricity and the overall unit size. There will be provision for direct negotiations with the village in order that the Government can facilitate purchase and transportation of materials and assist with contracting arrangements. The overall objective of this special segment of the HIP will be to control the Government's cost as well as be able to provide the type of cooperative assistance with the Native villages so necessary to handling housing construction in Alaska. There will also be provision for repayment similar to those provisions under the revolving fund for those Alaskan Natives and Indian people whose incomes are such that a payment is not only fair but required. PAGENO="0371" 365 R)RM 5-6406 10/79 CONSOLIDATED HOUSING INVE~'TORY FISCAL YEAR 19 81 \\- j~124 10.230 1,894 677 1,217 1,062 2,279 ALBUQUERQUE 9,807 6,561 3,246 2,099 1,147 2,409 3,556 ANADARKO 5,855 3,171 2,684 1,601 1,083 2,060 3,143 BILLINGS 9,300 6,879 2,421 1,126 1,295 1,705 3,000 EASTERN 5,064 3,615 1,449 681 768 873 ~LUNEAU 4,987 1,712. 6,699 MINNEAPOLIS ~, 113 j~7~S 1,815 983 1,683 2,666 ~USKOGEE ~2.? 2,611 2,986 6,017 9,003 NAVAJO 26,613 9,283 17,330 11,256 6,074 5,783 11,857 PHOENIX j~7 819 3,421 2,506 5,927 PORTLAND 1,681 954 727 1,564 2,291 SACRAMENTO ~~Q6 9.645 4,067 4.055 8,122 TOTAL 145,009 84,205 60,804 32,049 28,755 31,429 60,184 PAGENO="0372" 366 COST ESTIMATES FOR INDIAN HOUSING PROGRAM RECOENDAT~~ The opportunity to obtain decent housing will be made available to all income segments of the Indian population living on trust land. Tb~~s will be accomplished by creating a situation that will provide for an available range of financing that runs from an un- subsidized housing guarantee program to the present Housing Improve- ment Program (HIP) grant now available. I. LOAN GUARANTEES There is a growing segment of the population that could afford housing if a source of long term mortgage financing were available. This group will be served under a guarantee program that will remove the obstacles now present that inhibit lenders from making long term mortgage money available on trust land. This guarantee segment of the comprehensive housing program will enable conventional lending sources to operate on trust land by removing the problems of the enforceability of the lien and the marketability of the product. The loans guaranteed under this program will bear market rate interest no greater than that being charged by lenders for home mortgages in the general area. The mortgage can be made for up to thirty-three (33) years by any lender satisfactory to the Secretary of the Interior. The program will address the major obstacles to home mortgage lenders by providing for a satis- factory arranaement in case of defaults. PAGENO="0373" 367 II. REVOLVING HOUSING FUND This part of the housing program will serve the largest segment of the population. The housing fund will be for the purpose of providing funds to Indian tribes for the construction or rehabilitation of standard housing for those families who are unable to obtain financing from other sources and by virtue of income being ineligible for a grant under the HIP. The recipients of housing under this part of the overall housing program will pay in accordance with their income for a fixed period of time. The - basic program thrust will be for homeownership, obtainable if the individual meets the monthly payment requirement. The participant will be responsible for maintenance and utilities. The tribe or tribal housing authority will administer the program and return to the Federal Government the receipts collected over and above the cost of administration. III. HOUSING IMPROVEMENT PROGRAM This part will serve the very poor, very isolated people who cannot be helped by any other program. The HIP will concentrate on repairing housing to a standard condition to preserve the existing housing stock. It will also build some new housing for those who cannot be assisted by other parts of this effort. The money will be allocated to a tribe or tribal housing authority, granted directly to an individual, or administered by the Government, whichever is most cost effective. It will generally follow the PAGENO="0374" 368 present H~P where the benefits are direct and the program has been proven a very satisfactory way to serve persons who need this type of assistance. The attached costs are for a housing program to be carried out by the Bureau of Indian Affairs. More specifically, the program will have the following parts: * ~l) A loan guarantee to authorize some $80,000,000 worth of new construction per year for five years and will require * an appropriation of $4,000,000 per year. This loan guarantee aspect of the comprehensive program should produce some 1,000 units per year. Although the accompanying cost estimates do not include any income from charges for the guarantee, there probably will be a charge that will contribute towards the cost of administration of the program. (2) A revolving housing fund of $200,000,000 to subsidize new housing construction of some 4,000 units per year. (3) A Housing Improvement Program for $25,000,000 to emphasize repair and renovation of housing to standard condition and to provide some new housing for people who cannot be served by any other part of the housing program. The cost estimates envision some 1,750 repairs per year and the construction of 225 new homes. PAGENO="0375" 369 The cost-estimates are presented for a 5-year period and do not include the cost for the provision of water and sanitation facilities except in the case of the guarantee program where these costs ate included in the per unit costs. The average costs listed are based on the estimates of the BIA. It is also assumed that a start-up time of six months will be required for both the revolving fund and the guarantee program. Therefore, the initial year production is costed at half the production rate of subsequent years. The administrative cost of $5,000,000 per year is presented without lapse under the assumption that the program will be fully staffed in the initial year. The housing revolving fund will incorporate an ability to pay principle. The amounts collected over and above the costs of the tribes to operate the program will be returned to the fund. The return to the revolving fund is calculated on an average of $50 per unit month with the first return based on initial occupancy beginning in the second year. Subsequent years appropriation from the authorized $200,000,000 are reduced by the amounts returned to the fund. PAGENO="0376" COST ESTIMATES FOR AN INTERIOR HOUSING PROGRAM L~AN GUARANTEE PROGRAM Cost Ave. Cost (Contingent Units 1_per house / Liability) REVOLVING IAXJSIN(; FUND Reteipt a Ave. Cost Total to Revolving Fund Actual Unlts_J per house_f cost I $50 I ao. I house 1 cost 2000 I *50,000 /$l00.(~4/ /1100.014 Year 1983 1000 / $80,000 / $4014 (t*n t51'l 1984 1000 / 180,000 / $4014 (80.014) 4000 1 $50,000 /$200.014/ $1214 /$198.*14 4000 I $50,000 /$200.014/ 33.614 /3196.414 1985 1000 / $80,000 / $4,014 (80.014) 1986 1000 / $80,000 / $4014 (80.014) 4000 I $60,000 /$240.014/ *6.014 /$234.G4 4000 / $60,000 /1240.014/ *8.414 /3231.614 -~ 1987 1000 / $80,000 / *4.014 (80,14) - -~ 5000 / $80,000 /320.014 ~j~40O.014) - 18,000 I Variable /1980.014/ /*960.814 PAGENO="0377" COST ESTIMATES FOR AN INTERIOR HOUSING PROGRAM---Contlnued l~uSlNG INI'POV(MENT PROCRAM Ave. Cu't Total. Ave. Cust Total Units/per house/ New Units/per house/Repair 125 /133.000 111.514 1750 /310,000 1*11.514 TOTAL PRXRAMS Units /Cost n~J~st 3225 / *116.514 1750 1 117.514 ~L11ifi~~ Cofl, Personnel I 0ff1t~a Cn~t~ *5.124 ~TAL Ifl1S1M ~iocu~ tie *134.9w 225 /133,000 /17.514 1750 /310,000 /317.514 $ 5.014 5225 / 1215.314 1750 1 1*1.514 $232.$M 225 /133,000 /31.514 1150 /310,OóO /117.514 * 5.124 5225 / $21 2.9w 1750 1 111.514 *230.414 215 /135,000 /11.514 1460 /312,000 /311.514 $ 5.124 5215 / *250.514 1460 I $17.SM *264.014 215 /135.000 /11.514 1460 /112.000 /311.514 $ 5.9w 5215 /~3248.1M - 24,105/ 31,043.94 1460 I *11.514 -~ $170 / 387.514 *265.~14 - *1.130.814 ! 111)5 /Variable /31.514 8170 /Varjable /387.514 325.9w PAGENO="0378" 372 ;`r~ ) tr~ ~ 3 STAFF REPDRT G4B TASK FORCE FOR A N~ INDIAN HCUSING DELIV~Y SYSTE~4 ~Dc&thICN ~ND Stfl~ARY At the February 28, 1982 rreeting of the ~B Task Force on Indian 1~sing, it was decided that staff fran HUD, BIA, IHS arid Farmers Hone ?~ninistration ~ould describe five delivery rrechani~is for a future Indian housing program. Following are the delivery rrr~dels presented arid analyzed: ~tion *1 - Housing Block Grant ~tion *2 - Canprehensive Block Grant Cption 43 - Direct Loan Program ~tion *4 - Loan G.iarantee Program C~tion *5 - Hodified Certificate Program (to be used in canbination with other options) ~tion *6 - Canbination of a Loan O~arantee with a Housing Block Grant arid ?~3ified Certificate Program (Cptions `bs. 1, 3 arid 5. See pages 11-14). ~ch irodel is based on the preiiise that the Tribe would be responsible for the program and could use the IHA to administer the program, if desired. In general, all rrodels `a.ould provide greater Tribal autonany arid flexibility. For each irrdel the following will be discussed: description of the delivery syst~n, the ~cpulation served, infrastructure supçort (i.e., water arid se~r facilities), cost levels (both program and administrative as applicable), arid the basic advantages and disadvantages of the mx3el. o~rict~ *1 - Indian Housing Block Grant Program 1. telivery System: ~n Indian housing block grant program ~uld be proposed as a legislative initiative for all federally and state recognized Tribes. The Tribes s~ould have the flexibility to use funds to increase the supply of housing or to u~rade existing housing (i.e *, new construc- tion, rehabilitation or rrodernizatiOn). Given the scarcity of existing stock on reservations, it is asst.rned that the block grant funds s.vuld be used prinarily for new construction. The housing grant could be used for up to 100 percent of the total developiient or rehabilitation costs of Indian housing (Tribes could use CDBG or other funds or leverage private funds to suppl~ient this grant). The Tribes, if desired, could propose to use funds for housing down payments or for a revolving loan fund. Tribes ~uld also be free to propose their mix of hcineownershiP arid rental units. Certificates ~~vuld be available for low-incar~ renter arid hat~ownership families. The ~cperirnental Housing Allowance hat~ownership voucher program ~uld be used as a irodel for the hcrreownership certificate (i.e., equity in the hone s~ould count as incane for eligibility purposes arx~ determination of family contribution). Cption 5 provides further discussion of how a certificate program ~ould operate. PAGENO="0379" 373 Federal requir~rents would be limited to the folloving: o Fw~)s could only be used for low and moderate incane families. o Fbr consistency with other assisted housing programs, families would be required to contribute a percentage (such as 30 percent) of their inccire for housing. As stated previously, low-inccxne families could obtain certificates to reduce the family's share of housing costs. `lb assure that rents or hanebuyer payments ~re cxllected, the Federal ~vermnent could require that when a Tribe `s tenant accounts receivables wore more than 15 percent of monthly charges, that -other Federal funds given to the Tribe could be used to offset against this debt. o Basic health, safety and durability housing standards would apply to housing rehabilitated or developed under this program. (i.e., MPS for durability standards; model ~es for health and safety standards) o A developnent "cap per unit could be established. o Tribes would be required to keep accurate bocks of account and report annually on overall performance. Tribes would apply for funds on an annual basis. Funds would be distributed canpetitively on the basis of 1) need, 2) reservation assets (wealth) 3) quality of proposal, and 4) capacity or track record. Funds could be consolidated fran all current low-incane housing programs, including the current BUD Mutual Help and rental program, the BIA HIP program and the Farmers Bane Loan program. 2. Population Served: low and moderate incc*te 3. Infrastructure Support: The costs of off-site water and sewer facilities (as well as access roads) would be provided as a part of the per unit costs. PAGENO="0380" 374 4. Annual Purr3irx~ Levels:* ~tion A - per unit costs $58,000 (includes $8000 per unit for water/sewer) Cption B - per unit costs $48,000 (includes $8000 per unit for water/sewer) CptiOn C - sane as tB, $11,589 CA per unit, $57,947 BA per tn-ut 2000 units 4000 units 5000 units Cption A $116 million $232 million $290 iiilllion ~tion B $ 96 million $192 million $240 million cption C $ 23.2 rnillion(CA) $46.4 million(CA) $ 58 milliorx(CA) $115.9 million(BA) $232 million(BA) $289.7 million (BA) *CA is contract authority (outlay); BA is budget authority for a 5-year term. 5. ~tion Analysis: - ~nsolidating all current Ir~ian housing programs into a block grant program could result in less government long-term obligation for Ir~ian housing. - Providing a irore flexible program respart~s to Tribal interest arx3 less government red tape. W - Less government involvement could lessen HUD Federal staff costs. - Sinos waste or misuse of fur~s ~ould result in fewer units fran the grant, the Tribe could have rrore incentive to control costs arx3 limit waste or misuse. Cc~ - &x~e Tribes/IHAs have questionable capacity to ~rninister such a program without greater Federal involvement. Snail tribes do not have the capacity, including expertise for start-up. PAGENO="0381" 375 - Ho sore than relatively m~1l rnsther of units could be built in any one year wi~iout multi-year budget authority. (Hote: Cption C provides for 5 years of budget authority - similar to the Certificate Program) Even if a future program could be simplified, it would be difficult to phase-in the current HUD program since MUD has long-term (25 to 40 year) contracts with IHAs. XMAs therefore could not be readily phased out. OPTION *2 - Canprehensive Indian Block Program 1. t~livery Syst~n: A conprehensive Indian Block Grant Program would be propDsed as a legislative initiative for all federally and state recognized Tribes. This canprehensive block grant could give the Tribes the flexibility to use funds received for all housing, econcrnic, cctrmunity develo~xnent, caiinunity facilities and related man~x~wer and social service programs. Housing requirements could be the same as those described in C~tion *1 but Tribes would have the flexibility to use funds for whatever purposes meet their needs (not necessary housing). Funds could be distributed on a needs formula which would include factors such as tribal assets/wealth, extent of suhetandard * housing, unemplo~nent level, etc. Tribes not performing could be restricted fran future funding. 2. I~pulation Served: All incare levels 3. Infrastructure Supçort: Access roads and water/sewer facilities would be eligible itens under this canprehensive block grant. 4. Annual Funding Levels:* Approximately $385 million annually (includes 10 percent or about $35 million for Tribal administration). The ccxitprehensive grant could include but not be limited to the foll~ing current programs: BUD Housing ($40 million), BIA/HIP housing ($23 million); ~HA/Indian related housing ($40 million), lBS Infrastructure ($50 million), *The specific programs identified and cost estimates were provided only as a general illustration of such a canprehensive block grant and are based on conversations with BIA and ONE staff. PAGENO="0382" 376 BIA F~ncin.ic ~velop~ent ($26 million); WJD/t~ ($30 million); BIA Direct Etiployrrent ($10 million), BIA Misc. ~Xcationa1/A3ult ~ucation ($20 million); BIA Fire Protection ($56 million); BIA Tribal ~vemrent Services ($24 million), BIA Self-t~terinina- tion grants ($7 million); BIA Discretionary Sz)cial Services ($25 million). 5. Qtion Analysis P1 ~nsolidating all current social services, capital construction and related econanic developient prograrra into a canprehensive block grant could result in less goverr~nent obligation. - - Providing a rrore flexible program res~nds to sane Tribal interest for greater flexibility to emphasize specific needs - for example, to emphasize job developtent rather than to build ITore housing units. - Since waste or misuse of funds ~ould result in less funds in the future, the Tribe could have ITore incentive to control costs and limit waste or misuse. cas - This cariprehensive grant is contrary to BIA' s statutory rrandate to group together (as a block grant) certain BIA funded projects on a derronstration basis. U~er BIA~s 1981 legislation the Tribes have the flexibility to determine which projects should be grouped together. For the six Tribal pro~sals being * actively considered, econcxnic developnent and social services are separate $blocksN fran housing and carrnunity developlient. - Sane Tribes have questionable capacity to ~niinister such a program without greater Federal involverrent. - If the Tribe did not choose to use its funds for housing the Indian housing need ~uld not be rret thereby creating a future potential governrrent obligation. - It could be a difficult and lengthy process to phase all the current programs (especially but not limited to the HUD housing program) into this consolidated grant. PAGENO="0383" 377 o~ria~ t3 - DIRECr LOAN PI~JGRAM 1. ~livery ~chani~: th3er this prqx)sed option, Federal and state recx)gnized Tribes ~uld be authorized to make loans to eligible Indian applicants to build hzes for Indian fai~ilies. The nirtgage term could be 33 years. The interest on the loan ~uld be on a graduated basis, depending on incare level (one percent for low inccrne applicants up to seven percent for rroderate incare applicants). The Federal Coverrurent ~uld be authorized to foreclose with the first option to purchase the property to be given to .the Tribe. 2. Ppulation Served: Lc~ and ircderate incone applicants, up to 110 percent of the median !ncare of the area. 3. Infrastructure Sup~x)rt: Water/sewer facilities ~uld be incl~ed in the unit costs. 4. Annual Cost Levels: * Per t~iit 2000 units 4000 units 5000 units ~tual cost $ 40,000 $ 80 million $160 million $200 million Contract Authority $ 3,500 $ 7 million $ 14 million $ 17.5 million Ba~get ~ithority (33 years) $115,000 $231 million $462 million $577.5 million *Cost figures provided by the I~parbrent of Ariculture. 5. Cption Analysis: PR~ - 1'buld provide a mechani~ir to attract sare private investhient to reservations. - Would provide a mechaniam to serve hoth low and rxx3erate incxine Indian families. - The Farmers Hare Prcx3ram (which is similar to this rrodel) is in place and could be ecpanded without developing a new program requiring Congressional action. Farmers Hone has had sate success negotiating land agreements with Tribes to build on Indian land. 18-934 0-83-25 PAGENO="0384" 378 There is ronsiderable ~position to ~ntinuing Federal ~err~r~nt direct loan housing pr~r~ns. The current Fariters Hone Prngran (which is similar to this altez~iative) is currently being phased dc~. -` - A direct ioan prngran does not deal with the pr~l~n of security in building on Tribal land which has not been resolved on a wide- spread basis. o~ria~ #4 - LQN ~PA~~EE PR~X~M 1. ~scription of ~livery Systen ?brtgage credit has been alsost non-existent on Indian reservations because lenders and builders are uncertain as to their ability to foreclose on trust lards. In addition, Indian land tends to be rerrrte which creates a marketing problen for rep~sessed hones. BIA propases a guarantee prngran that rray attract private investn~nt for housing on Indian reservations. EHA currently has the capacity to insure low down paymant 30-year rrortgages made by private financial institutions but there is little activity in reservations because (1) applicants cannot qualify for FHA, and (2) FHA does not accept Trust land as security for loan. T~ assure that a loan guarantee prngran administered either by BIA or FHA is ~rkable on reservations, certain legislation is recaiTnended. This legislation s~uld entail the following canpaients: ° The value of leasehold interests in Trust land should be increased by authorizing 99-year leases. Subsequent Irortgage resale requires sore than a 25 plus 25-year leases to be attractive. o Procedures ~.ould need to be developed to enable the Federal Government to make sortgage insurance available, without regard to the marketability of the title on Indian resevation land. o If the BIA option is selected, there bould need to be a Federal guarantee of 100 percent. Qiarantee of 90 percent is not sufficient to attract adequate private investnent to Indian country. (FHA insures 95 or 97 percent) PAGENO="0385" 379 2. ~pulatiori Served: Middle incxire families (above $25,000 or $30,000) Private investeent requires higher standards for credit than ~vermnent program even when guaranteed. 3. Infrastructure Su~,rt: Since nost reservations are in rerrote areas, infrastructure ~uld need to be provided by the ~ibe through a block grant or other sources as an incentive for the lenders or developers to invest on Indian reservations. Infrastructure supçort required is as follows: o ~cess in the form of roads to construction areas and individual buildiog lots. o Utilities - in the form of water, sewer, and power to the construction site and individual buildiog lots. o Site Mitigation in the form of archeological clearance of the site or lot. If not otherwise provided, these itens should be specified as part of the cost of the unit. 4. Cost Levels: FHA option - Sane outlays in future years, due to foreclosures, can be expected especially if the FBA special risk fund is used. Historic experience fran HUD' s other FHA insured programs suggests that as each fiscal year invesbnent increases, losses will exceed incxxne fran nortgage insurance premiums. BIA option - $4 million annually for 1000 units. (BIA proposes $4 million annually for 5 years or $20 million total costs. NDte: BIA's estimate of defaults at 5 percent appears low based on HUD's other F~IA insured programs.) PAGENO="0386" 380 5. qtion ~zia1ysis: P~s - A loan guarantee prngram ~uld supply private investhent to Indian country for housing. t~per~3ence on ~verreent subsidized prngrarns b~Uld be reduced. Private investhent ~uld deliver ~ising at a faster rate. Private investhent ~uld produce housing at a lesser oust. A loan guarantee progran may not supply sufficient private investierit to Indian country for housing. If the provision for the lender to thtain only 90 percent of the renaming irortgage balance rather than 100 percent is selected there ~ild not be sufficient incentive to attract lenders to Indian reservations. - There ~ould be limited access to secondary ianney markets if the BIA option is selected. Sane Tribes may not have the financial resources to a~uire units offered on first right of refusal. OPTI~V $5 - C~TIFICkTE OP'rIcV 1. ~1ivery MechanisTt: In order to assure that low incone persons are able to afford to occ'~y~' units prop~sed to be developed (or renovated) under Cptions 1, 2 and 3, each Tribe ~uld received a special allocation of proposed Certificates. The Certificate ~u1d be irodified to be appropriate for Indian areas. That is, the Certificate ~uld be wtiedR to the house constructed or rehabilitated with block grant funds or financed by the PAGENO="0387" loan guarantee program. These Certificates ~xuld be available both to eligible tenants and hanebuyers (hai~eowners) (since haneownership is ~znportant to Indian families and since the majority of Indians have their own land allotments). For haneowners, the equity in the hane could count as incane for eligibility purposes and for family contribution as was done in the E~cperinEntal Housiog Allowance Program. Other program requirenents ~uld generally be the same as the proposed Certificate Program. Eligibility ~uld be linited to households at or below 50 percent of the median family incane of the area. The payment standard, which ~uld represent the maximtm~ assistance, ~uld be based on costs attributed to the unit includirq debt service (if applicable) maintenance, insurance and other a3ministrative expenses, and utility costs. The family contribution (30 percent of inoane) ~uld be deducted fran the payment standard to determine the maxirnt~n housing assistance. The edrninistering agency ~u1d be the tribe who could contract with the Housing Authority if desired. The ~ibe could qualify as a `Public Housing Agency" within the current statute under the concept. 381 2. Fopu.lation Served: L~ incane families, i.e., those under 50 percent of the median incare of the area (not reservation). 3. Infrastructure Support: (~bt applicable) 4. Annual Cost Levels:* Per unit costs $2150 (CA) inc1~r3es $2000 per unit for payment standard plus $150 per unit a~1ministration fee.** For 2000 units For 4000 units For 5000 units $ 4.3 million(CA) $ 8.6 million(CA) $10.8 million(CA) $21.5 mi11ion(~A) $43 million(BA) $53.8 million(BA) * *CA is annual outlay (contract authority); B~ is bndget authority for 5 years. **~ payment standard level is the sane as HUD's legislative proposal for Certificates. PAGENO="0388" 382 5. ~tion Maly~: Provides low-tho~tie families on reservations the site benefits as non-reservation low-inccee families - i.e., families are provided certificates to make housing affordable and, at the same time, families are required to make a reasonable housing parent (30 percent of incane). - Will sot require design of an entirely mew program for reservation Indians, since the prc~xsed Certificate Program can be used with some irodificaticris. - FeITnits reservation Indian to take advantage of a funding stream proposed to general population. ~ C~s - Several elarents of the Certificate approach (such as the incentive to rent under the pa~ment standard) are not applicable to Indian reservations. - Will add additional goverr~nent obligation to an Indian housing program. *OPT~ 6 - ~INATICt4 OF A LOAN ~JARANTEE WI~ A HCUSING BLOCK GRANT AND MODIFIED C~TIFICATE P~M (Cptions N3s. 1, 3 and 5) 1. ~livery System: An Indian housing block grant would be proposed as a legislative initiative for federally and state recognized tribes. The Tribes could use the funds (up to a fixed per unit arount) as a front-end `write down' of housing construction costs. The remainder of the housing construction cost (minus a rrodest down paye~nt) would be financed through a fliPs loan guarantee. The FBA legislation would be amended to permit use of this Federal loan guarantee without regard to restrictions relative to the marketability of the title. For low- in~ne families (those below 50 percent of the median for the area), a Certificate would be tied to the unit constructed to support the difference bet~en the housing costs (i.e., cost of the FHA insured nortgage for a 30-year term at 15-1/2 percent interest, insurance, maintenance and possibly utilities) and 30 percent of the family's PAGENO="0389" 383 a~justed incate. As an incentive for the tribe (and Tribal Court) to minimize defaults and claims to the insurance fund, the level of block grant funds could be reduced by a percentage of claims against to the FBA insurance fund. 2. ~pulation Served: Lo~.-incx~ familIes. Also, soderate and middle incane families without the nrx1ified certificate. 3. Infrastructure &1p~x)rt: Water and sewer facilities could be par.t of per unit costs or could be provided by the Tribe or by Indian Health Service. 4. Oznbined wd C~st Levels: ~ options are prcçosed, both are based on a housing cc~.s of $50,000. Cption A assunes a certificate cost of $2000; Cption B a certificate cost of $2700. Therefore the cost assunptions used in these options are: OPTIC~ A OPTICt B Housing Costs(minus down payment) $50,CO0 $50,000 Block Grant Write-t~)wn $37,224 $32,752 Annual Certificate Costs $ 2,000 $ 2,700 (1~bt Service) ($12,776 ($17,248 Trortgage) nortgage) ~bte: C~tions #A and #B assune the certificate covers the debt service (principle and interest at 15-1/2 percent for 30 years) and that the other housing costs listed below ~u1d be ass~d by the family or Tribe. Other annual housing costs include: Insurance $ 180 Utilities $1200 Maintenance (both routine and and nonroutine) $ 300 $1680 TLbder Cptions tA and fB the average Indian reservation family ~uld have to have an adjusted incane of $5,600 to spend a maxiirnzn of 30 percent of its adjusted inccxi~ on housing costs (other than debt service). PAGENO="0390" 384 Annual Funding Levels - ~thined ~tions (in millions of dollars) 2000 units 4000 units 5000 units OPTICVA Block (rant Write-~zn $74.~ $l4~tt $l86.lm $~ CA, $~ CA, $lQt CA $2CknBA $4QttBA $5(~nBA Certificate (Atnin. Fee)** $3~ $~ F~A Insurance Fuix)*** OP~ICN B Block want $65.Sm $l3iiti $163.8m Certificate* $5.~n CA $lO.&n CA $l3.Sin CA, $27M BA $5~n BA $67.Srn BA Certificate (A±nin. Fee)** $~ $Q~. FHA Insurance Furx1*** ~ outlay (contract authority - CA) for a 5-year term (budget authority -. BA). **~~te~ an annual outlay of $150 per unit for Tribal administrative costs. ***There will be sate loss to the FHA insurance fund; estimates are not available. 5. ~ditiona1 Issues: o ~pu1ation Served. (Cr~ly1ow-in~xxne or muderate and middle inccxne populations in need of standard housing) If the program is targeted solely at the 1~ti-incane reservation papulation the Federal costs will cbviously be higher, since the certificate costs will be necessary for all participants. o ~Mnpayment. (Qirrent FHA level or a higher level): A downpayrtent (based on a percentage of incxxte) above current FHA requiretrents (tied to percentage of incate) coul~~ure greater family respansibility, thereby reducing defaults and claims to the ~~iA insurance fund. Low-incorre families could be permitted to obtain a loan for the downpa~Tent if they couldn't afford a lunp-sun payrTent. }bvever the issue the Indian catntunity could raise is whether or not they thould be treated °differently.° FHA only insures 97 percent of the first $25,000 and 95 percent of the balance, up to theceiling for the area (i.e, a 3-5 percent downpayirent). PAGENO="0391" 385 o Housing Costs. (State and/or Tribal Contribution): The current cost asstznption of approximately $50,000 annually may not cover all costs in r~rote areas. Coe way of addressing this probl~n, without raising the $50,000 plus ceiling, is to require states and/or Tribes to support costs above this $50,000 limit. (For example, the Alaska de~nstration irodel, where the state contributes a substantial share of the construction costs, could be applied. It should be noted that about 10 percent of the 499 Tribes have substantial assets according to BIA and possibly could invest in housing.*) o Budget Authority for the Modified Certificates vis a vis FHA Mortgage ~rm: If the Modified Certificate is only cont~nplated for a five year term, without an autonatic renewal clause, it may be risky to target assistance to lciw-incaie families as there ~uld not be long-term security in the mortgage payment. *The BIA statute wuld need to be amanded since it currently restricts long-term investment of Tribal and individual Indian assets. PAGENO="0392" Honorable Kenneth L. Smith Assistant Secretary of the Interior Washington, DC 20240 Dear Mr. Smith: We have reviewed the draft bill H.R. 5988, "To provide for an Indian Housing program for construction and financing of housing for Indians, and for other purposes." We have recommended to the Department that the bill be enacted. We are also in support of the position paper on Indian Housing Program as prepared for Assistant Secretary Indian Affairs, which was presented and discussed at the Task Force meeting held on Monday, April 12, 1982. We have no objection to the proposal and observe no conflict with the single family housing loan program administered by this Agency. =~ 1 `S Al, St t" 386 -. ~ United States Department ot' "`~,~_j Agriculture Farmers Home Administration Was~en9tOfl D.C. 20250 April 14, 1982 NEAL Acting Deputy Program Operations PAGENO="0393" 387 DEPARTMENT OF HEALTH & HUMAN SERVICES Public Health Service Health Services Administration Indian Health Service Rockville, Maryland 20857 April 1~, 1982 Kenneth Smith Assistant Secretary for Indian Affairs Department of Interior 18th & E Street NW Washington, D. C. 20024 Dear Mr. Smith~ This office has reviewed the Bureau of Indian Affairs (BIA) position paper on the Indian Housing Program and concurs with observations made by Mr. Pearson on the attached memorandum dated April 1~. The BIA proposal has significant merit and H.R. 5988, the proposed Indian Housing Act of 1982, appears to accomplish the dual objectives of the Task Force To Study Indian Housing by providing a mechanism to (a) attract private capital onto Indian reservations for houaing development and (b) improve the delivery system for Indian housing programs. However, the Indian Health-Service cannot make a commitment for the Department of Health and Human Service (HItS). A copy of the BIA position paper is being provided to the DHHS with a recoea,endation that Comments be provided to you and the Office of Management and Budget as soon as possible to assist in the development of the Administration comments regarding H.R. 5988. Sincerely yours, ~ ~`-~cerett R. Rhoaäes, M.D. Assistant Surgeon General Director, Indian Health Service PAGENO="0394" 388 DEPARTMENT OF HEALTH & HUMAN SERVICES Pub~c Health Serace Memorandum APR 3 ~ I~DIA1l HEALTH SERVICE Date From Director, Environmental Health Indian Health Service Subject TASK FORCE ~ETING - April 12, 1982 To For the Record A meeting of the Task Force To Study Indian Rousing was held on April 12 at the Department of Interior Building (Dol) in Washington, 0. C. A list of the * attendees is enclosed. The Chairman, Mr. Kenneth Smith, Assistant Secretary for Indian Affairs, 001, presented a position paper recosmtending legislation to establish a comprehensive Indian housing program in the Bureau of Indian Affairs (BIA) for * the purpose of accomplishing the two major objectives of the Task Force, i.e. (1) attract private capital to Indian reservations for housing development, and (2) improve the housing delivery mechanisms. Assistant Secretary Smith has received a letter from the Office of Management and Budget (o~) requesting a report from the Task Force to be used by the Administration in preparation for testimony on April 29 on H.R. 5988, The Indian Housing Act of 1982, which is proposed by a bipartisan congressional task force. Mr. Smith reviewed the ETA position paper and the congressionally-proposed legislation with the participants in the Task Force. He indicated that the congressionally-proposed legislation was essentially compatible with the recotmeendations of the BIA. In the Task Force review, selected elements of H.R. 5988 as listed below were discussed: (1) The proposed legislation places the responsibility for the success of the tribal housing program upon each tribe instead of a Federal agency or another Indian entity. (2) The legislation requires each tribe to make a firm cocetiteerit of its trust revenue to assure payment of the financial obligations for the housing project. This tribal caumtitment should also assure enforcement of cotretitnents by tribal members, which is apparently a problem with existing Indian housing programs. (3) The Indian Housing program would be concentrated in one agency instead of two Federal agencies as presently exists. (4) The Federal housing progran would not be involved in rent management or the payment of costly home operation, maintenance and utility subsidies for the future. PAGENO="0395" 389 (5) There are significant provisions for repair and rehabilitation of homes to standard condition in lieu of more costly new construction. This factor can increase the number of homes served with a given amount of funding. - (6) There is motivation for a tribe to be innovative and cost-effective in their housing plans to increase the number of homes to be provided. Motivation of cost savings and collection enforcement were said to be lacking in the existing Indian housing programs. (7) There is a provision requiring each tribe to have their project under contract for construction within one year, with provisions for a 120 day extension. This provision shoud eliminate a long pipeline of unbuilt homes. (8) There are provisions for the establishment of a mandatory revolving fund from the return receipts from the projects. (9) There is a provision to provide a level of surveillance by existing Federal employees to avoid fraud or abuse and to insure quality control. (10) There are provisions for technical assistance to the tribes in their expanded responsibilities. (11) N.E. 5988 does not cancel or amend the HOD Indian housing program or any other housing program. American Indians and Alaska Natives, as citizens, remain eligible for other Federal programs. Representatives of the BIA, Farmers Home Administration and the Department of Health and Human Services (HHS) indicated agreement that the BIA proposal is worthwhile and accomplishs many of the objectives of the Task Force To Study Indian Housing. In considering other options discussed by the Task Force, the group reviewed the options listed in the HOD staff report. the group expressed considerable concern about the workability on Indian reservations of non-specific block grants and cash voucher systems. These same concerns have been discussed on numerous occasions in more detail. It was noted that elements of the two remaining options from the HOD staff report, loan guarantees and direct loans, were included in the BIA proposal and the draft legislation. The group indicated concurrence with Mr. Smith's recommendation that the sanitation facilities, and the funding thereof, be provided by HHS, IHS, as indicated in H.R.5988. Mr. Pearson, Director, Office of Environmental Health, lndian Health Service, attended the Task Force meeting as a member of the Task Force Work Group and a staff resource person for Dr. Koop, the Surgeon General of the Public Health Service and the designated JIMS task force member. Mr. Pearson concurred in the discussed merits of the MA proposal and noted that tr,~ srososcd le~islatson appears to accomplish the stated objectives of the PAGENO="0396" 390 Mr. Pearson reminded the group of Dr. Koop's previous announcement that the HHS and 0MB had determined that the funding for sanitation facilities for new housing would not come from the IHS budget, and that he could not indicate fillS approval or disapproval of the budgeting of the sanitation facilities within IllS until a decision has been obtained from the appropriate departmental level. Representatives of the Department of Housing and Urban Development (MUD) were not present at the meeting. Mr. Smith said that he would call the HOD representatives to discuss the events of the meeting with them and give them the opportunity to submit written comments to accompany his report to the 0MB. Mr. Smith said that it would be necessary to receive written comments from the Task Force participants by COB, April 13, 1982 for inclusion in his written recommendations to 0MB. Bill F. Pearson, P.E. PAGENO="0397" APPENDIX V GENERAL ADDITIONAL MATERIAL SUBMITTED FOR THE HEARING RECORD TEST I MONY ON H.R. BILL NUMBER 5988 TO PROVIDE F.OR AN INDIAN HOUSING PROGRAM FOR CONSTRUCTION AND FINANCING OF HOUSING FOR INDIANS AND FOR OTHER PURPOSES. BEFORE THE COMMITTEE ON INTERIOR INSULAR AFFAIRS PRESENTED BY MR. ALLEN ROWLAND, PRESIDENT OF THE NORTHERN CHEYENNE INDIAN TRIBE OF THE NORTHERN CHEYENNE INDIAN RESERVATION APRIL 24, 1982 RAPID CITY, SOUTH DAKOTA MY NAME IS ALLEN ROWLAND. AS PRESIDENT OF THE NORTHERN CHEYENNE INDIAN TRIBE I WISH TO EXTEND MY PERSONAL THANKS TO MR. UDALL, MR. KILDEE, MR. WILLIAMS, AND OTHER CONGRESSIONAL CO-SPONSORS FOR RECOGNIZING THE GRAVE AND SERIOUS HOUSING PROBLEMS CONFRONTING THE MAJORITY OF INDIAN TRIBES TODAY. THE SINCERE CONCERNS OF THESE CONGRESSIONAL MEMBERS HAVE RESULTED IN THE DRAFTING OF H.R. BILL NUMBER 5988 WHICH I INTERPRET AS PROPOSING SPECIFIC ALTERNATIVES AND OPTIONS FOR INDIAN PEOPLE WHO RESIDE WITHIN INDIAN TERRITORIES TO ACQUIRE SAFE, DECENT AND SUITABLE HOUSING. PAGENO="0398" 392 TESTIMONY BY ALLEN ROWLAND PAGE 2. AFTER CAREFUL DELIBERATION AND CONSULTATION WITH MEMBERS OF THE NORTHERN CHEYENNE TRIBAL COUNCIL, I WISH TO ADDRESS SOME RATHER SERIOUS ASSUMPTIONS WITHIN THE PROPOSED BILL (NUMBER 5988) WHICH, IN MY OPINION, MUST BE CORRECTED BEFORE I OR THE NORTHERN CHEYENNE LEGISLATIVE BODY CAN EXTEND OUR FULL SUPPORT IN THE PROPOSED ACTION. FOR THE PAST 20 YEARS, THE NORTHERN CHEYENNE TRIBE HAS SYSTEMATICALLY AND INTENTIONALLY CONSOLIDATED ITS LAND HOLDINGS WITHIN THE EXTERIOR BOUNDARIES OF THE RESERVATION. BECAUSE OF THIS EXTRAORDINARY FORESIGHT, THE NORTHERN CHEYENNE TRIBE IS ONE OF THE FEW TRIBES WHICH OWNS NINETY-NINE PER CENT (99%) OF ALL LANDS WITHIN ITS RESERVATION CONFINES, 90% BEING IN TRUST STATUS. TO FURTHER CLARIFY THIS STATEMENT, THIS MEANS THAT ONLY 1% OF THE LAND WITHIN THE RESERVATION AREA IS NOT INDIAN OWNED OR CONTROLLED. THE TRIBE HAS DEARLY SACRIFICED ITS SOCIAL AND ECONOMIC WELL-BEING IN ORDER TO ENSURE THAT ITS RESERVATION IS INTACT AND SOLELY OWNED AND CONTROLLED BY ITS MEMBERSHIP. STILL, THESE TRIBAL LANDS ARE CONSIDERED THE LAST AND FINAL HOME OF THE NORTHERN CHEYENNE PEOPLE. PAGENO="0399" 393 TESTIMONY BY ALLEN ROWLAND PAGE 3. AS I APPLY THESE .FACTS ABOUT THE NORTHERN CHEYENNE TRIBE AND ITS LAND BASE TO THE PROPOSED BILL I AM DEEPLY DISTRESSED AND CONFUSED ABOUT THOSE PROVISIONS WITHIN SECTIONS 103, 104, SECTIONS 205 (a), 2O5 (b)(1), 205 (d), 208 (b), 209 (b)(1) 209 (c), 211 (c)(2) and (3), Section ~O2, Section 309 (a)(1), Section 309 (b) and Cc), Section 310 WHICH ELUDE TO THE PLEDGING AND ASSIGNMENT OF TRUST LANDS AS VIABLE MORTGAGES FOR THOSE CHEYENNE LANDOWNERS WHO MAY WISH TO CONSTRUCT, ACQUIRE, OR REHABILITATE A HOME ON THE RESERVATION. PERSONALLY, I AM OUTRAGED WITH THE ASSUMPTION THAT TRUST STATUS LAND IS SUGGESTED AS PROPER SECURITY FOR TRIBAL HOUSING, GIVEN THE FACT THAT THE NORTHERN CHEYENNE TRIBE HAS CONSISTENTLY REJECTED THOSE PROPOSALS WHICH IMPLY DIMINISHING TRIBAL TRUST LANDS STATUS. CERTAINLY, THE NORTHERN CHEYENNE TRIBAL COUNCIL AND I ARE IN NO WAY OPPOSED TO THE CONCEPT OF ATTACHING TRUST ACCOUNTS OF INDIVIDUAL TRIBAL MEMBERS TO ENSURE PAYMENT ON AN INCURRED HOUSING LOAN. YET, IF TRUST LAND IS THE CRUX FOR A MORTGAGING PROCEDURE WHICH GRAVELY JEOPARDIZES THE STATUS OF INDIAN-OWNED 18-934 0-83-26 PAGENO="0400" 394 TESTIMONY BY ALLEN ROWLAND PAGE 4. LAND, I IMPLORE YOU TO. RECONSIDER THIS CHARACTERIZATION AND IMMEDIATELY OMIT THE PLEDGING OF TRUST LANDS, AS COLLATERAL PLEDGES, FROM THE BILL. THE SECOND PRESUMPTION WHICH DISTRESSES ME AS MUCH AS DOES THE SUGGESTION TO OBLIGATE INDIVIDUAL TRUST LANDS FOR INDIAN HOUSING SECURITY IS THAT OF A TRIBE BEING LIABLE FOR THE DEBTS OF ITS INDIVIDUAL TRIBAL MEMBERS (Refer to-Section 205). AS .THE. BILL IS CURRENTLY DRAFTED A TRIBE MUST PLEDGE ITS CURRENT AND FUTURE TRUST FUNDS, WHICH I MIGHT ADD ARE NORMALLY DERIVED FROM THE LEASING OF TRIBALLY OWNED LANDS AND LEASING OR SALE OF OTHER NATURAL RESOURCES, AS SECURITY FOR THE PROPOSED HOUSING. AGAIN, I MUST STRESS THAT THE NORTHERN CHEYENNE TRIBAL COUNCIL AND I ARE IN ABSOLUTE AGREEMENT THAT AN INDIVIDUAL TRIBAL ME~1BER OR FAMILY DESIREOUS OFACQUIRING DECENT RESERVATION BASED HOUSING MUST, INDEED, OBLIGATE HIS OR HER INDIVIDUAL ASSETS, OTHER THAN TRUST LAND. HOWEVER, FOR THE NORTHERN CHEYENNE TRIBAL COUNCIL AND MYSELF TO PLEDGE EXISTING AND PAGENO="0401" 395 TESTIMONY BY ALLEN ROWLAND PAGE 5. FUTURE TRUST FUNDS IS NOT ONLY ABSURD, CORPORATELY AND LEGISLATIVELY IRRESPONSIBLE, BUT CONSTITUTIONALLY ILLEGAL. I DRAW YOUR ATTENTION TO THE FACT THAT THE UNITED STATES GOVERNMENT NOR EXXON CORPORATION, FOR THAT MATTER, IS LIABLE FOR THE DEBTS OFIT5 INDIVIDUAL CITIZENS OR EMPLOYEES. CERTAINLY, IT IS RIDICULOUS TO ASSUME THAT THE NORTHERN CHEYENNE TRIBAL GOVERNMENT IN ITS LEGISLATIVE AND CORPORATE AUTHORITIES SHALL, WITH THE ADOPTION OF SUCH PROPOSED LANGUAGE, BE LIABLE FOR ALL DEBTS OF INDIVIDUAL TRIBAL MEMBERS. I HAVE ATTACHED A COPY OF OF THE AMENDED NORTHERN CHEYENNE TRIBAL CONSTITUTION AND CORPORATE CHARTER WHICH SPECIFICALLY DEFINE THE LEGISLATIVE POWERS AND RESPONSIBILITIES OF THE TRIBAL COUNCIL AND THE RESTRICTIONS AND LATITUDES FOR UNIFORM TRIBAL ECONOMIC DEVELOPMENT. (AMENDED TRIBAL CONSTITUTION: Article IV, Section 1, C,E, and N; Article V, Section 1; Article IX, Section 2, 3, 4, and 5: CORPORATE CHARTER; Provision 1; Provision 5(b((l), (c), (d), (f); Provision 7). MORE SPECIFICALLY, IT IS NOT A RESONISIBLE LEGISLATIVE NOR CORPORATE ACTION OF THE TRIBAL GOVERNING BODY PAGENO="0402" 396 TESTIMONY BY ALLEN ROWLAND PAGE 6. TO PLEDGE ALREADY LIMITED TRIBAL ASSETS TO BE USED FOR THE BENEFIT OF ALL TRIBAL MEMBERS, AS JUST COMPENSATION FOR THOSE MEMBERS WHO IGNORE OR ABUSE THE LEGAL OBLIGATIONS OF INDIVIDUAL DEBTS. I AM, THEREFORE, SUGGESTING THAT THE NORTHERN CHEYENNE TRIBE THROUGH ITS CORPORATE AUTHORITIES CHARTER A TRIBAL HOUSING CORPORATION APPROVED BY THE U.S.. SECRETARY OF THE INTERIOR AND THAT ALL EXISTING RESERVATION H.U.D. UNITS, YET UNPAID FOR, BE TRANSFERRED TO THE CORPORATION AND, THEREBY, CONSIDERED AS CORPORATE ASSETS. THIS HOUSING CORPORATION WOULD REALISTICALLY OPERATE AS A RESERV~TION-BASED HOUSING LAON INSTITUTION, FOR HOUSING EXCLUDING THE COMMITTMENT OF TRIBAL ASSETS, SUCH AS TRUST LANDS OR FUNDS. QUITE FRANKLY, I AND THE NORTHERN CHEYENNE TRIBAL GOVERNMENT CAN NOT, NOR WILL NOT CONSIDER OBLIGATING ASSETS OR TRUST FUNDS TO THE PROPOSED LEGISLATIVE ACTION AS DRAFTED. MY LAST CONCERN IN THE PROPOSED BILL IS THAT OF STATUTORIALLY OBLIGATING INDIAN INDIVIDUALS AND FAMILIES TO A LOAN REPAYMENT PAGENO="0403" 397 TESTIMONY BY ALLEN ROWLAND PAGE 7. SCHEDULE OF 20% OF THE ADJUSTED GROSS INCOME. [Refer to Section 209 (a), (b)(1), and (4)] THIS SUGGESTED STATUTORY REPAYMENT SCHEDULE WAS DESIGNED FOR A NATIONAL INFLATIONARY PERIOD AND IS TOTALLY INCONSISTENT WITH THE ECONOMIC REALITIES ON AN INDIAN RESERVATION THAT IS EXPERIENCING A 47% UNEMPLOYMENT RATE OF ITS EMPLOYABLE LABOR FORCE. I MUST POINT OUT THAT THERE IS NO INDUSTRY NOR PRIVATE BUSINESS SECTOR ON THE NORTHERN CHEYENNE RESERVATION. CONSEQUENTLY, EMPLOYMENT OF EMPLOYABLE TRIBAL* MEMBERS HINGES ON THE LEGAL ABILITIES OF THE TRIBE TO NEGOTIATE EMPLOYMENT AGREEMENTS WITH OFF-RESERVATION INDUSTRY. NORMALLY, SUCH INDUSTRY HAS EXPRESSED EXTREME RELUCTANCE TO FULLY COMMIT TRIBAL EMPLOYMENT OPPORTUNITIES WHICH WILL EXTEND FIVE YEARS OR LONGER, LEAST OF ALL TWENTY FIVE YEARS OR THE PROPOSED LIFE OF A HOUSING LOAN. I THEREFORE IMPLORE THE COMMITTEE MEMBERS AND STAFF TO OMIT THIS SECTION FROM THE DRAFT BILL AND ADDRESS SUCH LOAN REPAYMENT PROCEDURES AND SCHEDULES,PREFERRABLY SUBJECT TO NEGOTIABLE REPAYMENT SCHEDULES WHICH DO NOT EXCEED AN EXCESS OF 17%, IN THE FORTHCOMING REGULATIONS AS THE BILL IS REDRAFTED AND RATIFIED. PAGENO="0404" 398 TESTIMONY BY ALLEN ROWLAND PAGE 8. IN CONCLUSION, I AM REQUESTING THE COMMITTEE TO RECONSIDER THESE MAJOR PROBLEMATIC CONCEPTS WITHIN H.R. BILL NUMBER 5988, AS DRAFTED, SO THAT THE NORTHERN CHEYENNE TRIBAL COUNCIL AND I MAY OFFER OUR FULL AND UNCONDITIONALSUPPORT FOR A COMPREHENSIVE INDIAN HOUSING BILL WHICH WILL ALLOW NORTHERN CHEYENNE TRIBAL MEMBERS THE OPPORTUNITY TO FINANCE HOUSING OF THEIR CHOICE, AT REASONABLE COSTS AND WITHOUT JEOPARDIZING THEIR LAST AND FINAL HOMELANDS. I CAN PERSONALLY ENSURE THE COMMITTEE THAT THE NORTHERN CHEYENNE TRIBAL COUNCIL AND I WILL DESIGN AND ADOPT ALL TRIBAL LAWS NECESSARY TO ENFORCE ADEQUATE HOUSING CONSTRUCTION ON THE RESERVATION AND PROVIDE VIABLE COLLECTION MECHANISM FOR FAIR AND JUST OPERATION OF A `RESERVATION-BASED HOUSING BANK.' I THANK YOU FOR YOUR TIME, CONSIDERATION AND COMMITTMENT TO IMPROVE HOUSING OPPORTUNITIES ON THE NORTHERN CHEYENNE RESERVATION. PAGENO="0405" 399 Donald Good Voice Chippewa-Cree Tribe Rocky Boy Indian Reservation Box Elder, MT 59521 Mr. Chairman, Committee, My name is Donold Good Voice,~ I am an enrolled member of the Chippewa Cree Tribe. I am also an employee of the Chippewa-Cree Housing Authority as coordinator of Resident Training/Counseling Program. First of all let me thank this committee for its excellent job on H.R. 5988, and appreciate the committees hard work, in getting this piece of legislation introduced and numbered. When we received H.R. 5988, we realized that you as a committee, did some- thing, that is really remarkable. I know how important wording is, when a piece of legislation might become law. Words must be chosen carefully. In the Chippewa-Cree culture, we too must choose our words carefully, words in our culture are sacred and must be used accordingly. We agree that the Bureau of Indian Affairs does have a very bad reputation among :ndians, with regard to their ability to administer programs and their lack of responsiveness to Indian concerns. But I must agree that H.R. 5988 Title IV does have those specific requirementsand restrictions that will meet those fears and criticisms. However, we are concerned that a large portion of the appropriation for construction and acquisition could be syphoned off for administration of this proposed law. We therefore, make this recommendation, that the appropriation for construction and acquisition be left intact and a separate appropriation be made for the administration of these programs. We therefore, as a tribe, feel resonably assured that this law will mutually benefit our people. With the inclusion of the afore mentioned recommendations we can fully support H.R. 5988. PAGENO="0406" 400 PUEBLO OF ZUNI P.O. BOX 339 ZUNI. NEW MEX1C087327 ROBERT E. LEWiS MILO OWALEON Go~e~o~ C~l~ ThEODORE EDAAKIE FRED BOWANNIE, SR. It G~ttto Co,ifrttatt SEFFERINOERIACHO, SR. ALEX BOONE HttdCo~lttttt C~tc~tttt PESANCIO LAS1LOO hi rsplyref.rto: PlAY ~982 The Hona&cthee Mov~4 K. Udafl ChaAjwian, InWt.Lo'~ and l~uu2an A~aL'~4 235 Cannon ffou,5e O~I~Lee &tLLcUng Wa.th.Lng~on, V. C. 20515 Vea,'L Chaijtrnan Udail: The PuebLo oiS Zun-L T.'tLbaL Enrpeoymen-t RLght~ O~.ce (TERO) ~s a ptoglui.m that wa.o etabV..ohed by the ZwvL T/LLbai Cowtc~U, by te.~oLwt'on, makLng incUan P.'ce~e.&enee on ~he ZwvL Re4vtva,tLon a T't.~ba2 Law. The TeLbcl EmpLoyment RLght6 O~Lce £~ the p.'togeam that en~o'rce4 the Ti~LbaL Law a~ weLL a~s EEOC and OFCCP Law4 that govexn Tnd&zn p~e~eJcenee on aLL empLoyex~s LocaL, p.~Lva.te, 4ta.te, and £edenaL who opvLa-te on/an nean the Re4eAva,tLon. TERO'4 main .`~espon.~Lbi~LLty L6 to monitan and en~anee the.~se Law~s and to ~ee that empLoyment ~`t.ight~ o~ LocaL IndLwu.~ axe pxotected. The TERO Pxog'cam ha.6 eXpanded t'Lemendou.4Ly .Lnto ~LeLd~s o~ VoeatLoncv8 ThaAniiig, EconomLe. VeveLoprnent, and wo~da.Lng wLth the govvLnmen.tol agenc.Le4 4aCJi an the alA, (US, and HUD. WLth.Ln a yeaA Zwii TERO han contacted aLL FedexaL Agenc..Le.o and han antabLJ~hed a good woxtzi.ng xeLa,t~Lon4hLp wLth tho4e agene..Lan. Thxoagh con4tant xermLnde't.~ and ~n~oxniaLLon ~sha'tLng, the vaeLow5 ~ede&aL agennieo have become pant o~ the TERO pnocei~ and have them.~eLve4 a.&~umed theLe own xanpoan.LbL&tLeo ~n en~oitaing indian pxe~exence Law4s. Koweve'L, beeaane o~ the coantant change lit £edenaL IndIan Law~s govennJ~ng the~se agenc-Lan, Zwvci TERO han been ~o'~ce to faeep abxea4t on aLL c.hange.~, whLc.h mewu voIcing .It'4 concexn-6 on the new pnopo4ed U.R. 5988, the "TNVIAM HOUSING ACT OF 1982," that you and yowL coLLeagu.e'4 axe p.topoMng to enact. May 19, 1982 PAGENO="0407" 401 The Konoitab.P..e Moiuti~ K. Udali May 19, 1982 Page Two Zwu TERO and HUP have continaoa4&J engaged £n policy qae4-tion ba~tt~e4 coneQJtnJitg the w~e o~ lndiizn pke~e.kence )teqwLkeme~vt6. In the pxe~sen~t NW) policy addke4~Ang indLan Pxe~exence, we have Lowid iiiat ~the clau4e ~anguage L6 vexy weak arid L~s non-4uppoxtLve o~ T'tLbcJ indLan pxe~eitenee xate.6 and xegulatLon4. Thexe~oxe, L~ £ux~he'c IiidLan ffouJ~Lng ~uLe4 and xegutation~ axe to be made and Ln~a&mented, we a'.~ concvtned cLtizen4 and xepxe~enta,tive~s o~ owi T'iLba2 Govexnment~ wouLd like ~to ~ee £egL6&vtion entaAi 4t'iorigVi indLan pxe~exence taw4, and La addLtZon have coritinuouA 4appoxt ~tom eongtei onot commLttee4 who pliOpo4e to deveLop ox mocU~y LedeiiaL indLan policie4. PaxtLeuLcvt Lmpoiitance to thL~ teque4.t4 £& Lhe deveLopment oL out eeonomLc ba6se and contliuted enrployment oL out peopLe. We a'.~ txLbaL govexnmant6 cannot a~oxd to be Lest oat oL con4ultatLorj oL rnajox Ledexat IndLan LegLoLatLon. SLnce Lt La beLng advocated that md-Lan Txbe6 tLL.kn to -theA owe xe-6ouxee4, the px-Lvtvte 4ec.tox, and Lndui,t&Le4 whLch we do not have (a.6 weLL ax many othet t'tLbe~), we 4tLLL need 4uppott J.n deveLopAg the poten~tLa2 that exL-st~s to Lmptement p.tojecLs that can ciiea,te -6ttch, Lox income geriexa~tiitg puxpo4e4. We axe doing thi4 tiutough conrpltehen4ve pLanning Lox both 4hoxt and Long xange gooL6 which teLate to economLc 4eLL-4aLLicIency Lox the Lutuxe. We de4Ae to 4hate ou.'t panivLng expexiance wLLh othet conlnunWe4 who axe in the 4ame 4tuotion ax we axe, e4pec~LaLLij ut itu.kaL ateax. The attached Po4-ition Statement 4kouLd be ~tevLewed cLo4eLy and given eaiineot con-6-Ldexation Lox pLacement in H.R. 5988, which wilL be gxeatLy appxecLated. RO6ERT E. LEWIS GOVERNOR, PUET3LO OF ZUNI EncLo4wie6 PAGENO="0408" 402 POSITiON STATEMENT ON H.R. 59~8 THE "INVIAN HOUSING ACT OF 19~2" FOR PUE~L() OF ZUNI P. 0. l3ox p339 ZLIWI, NEW MEXICO 87327 13~~ Robext E. LewL~s Goveitrio)L, Pae.b.~!o o~ Zw'ui PAGENO="0409" 403 The PuebLo o~ ZwvL Tit~baL Gouvcnmen.t, thitoughoat At~ goue'~nmentcJ endecwo/t4 have conUnuowsLq .Ln ct dLpLomatic mannvt endo~ed and 4appoltted Fede~aL Ind~Lan LegL~sLat~on that catts £o'~ SeL~-de m~nat~on and EconormLc 4eL~-ce~encij. The concept o~ 4aL~-dete.kmZnat~on to the Zwu teLbe ha~s Long been a vLtae Jng'~edLent to the L~fflment o~ trAhaL g0014 and objecUve4, £n pLanning ~oJt tt.Lba.L 4eL~-4u~Lnienetj. P'tobabltj the toot6 o~ 4eL~-dete~'uthtation can be ~owtd on the Land~s o~ the ZwvL Re4e.'tva.ti.on. The Zwti teLbe ~ôt Lts e~oet~ to uphoLd the doctit~&ie o~ ~eL~-detvtmLncvtLon and to e~cpand on the concep~ would L.üze to voLce £t4s conceitn~ on the pltopo4ed How6e Re4oLat~on 5988 "THE INVIAN HOUSING ACT OF 1982." HOUSE RESOLUTiON 5988, "THE 1NVIAW HOUSING ACT OF 1982" The act L6 ue.'ty p~o1~.Lcient £n addfLe46Lng the IndJan How&Lng need4 and Jtecognize4 the need to continue an Ind~&zn Houthig Pxog'tam. Howeve&, owt connnent6 cvte dL'tected towaxd, Section 215; page 20, tine 1-5, nh.Lch ~tead4 a4S tSoLLow4: Section 215: ALL con.ttact6 undvt the tULe 4haLL be a.waAded £n a&to*dance w~Lth b~Ldd~ng p'cocedu~te.~s 4L~acto.'~y to the Seceeta&y and 4haLL ~te~~suLt ~n the jud~c~LouA u4e o~ Fedettcl ~und4. The agency may ~oiunulale an Indian a~iarnative action pLan 4ati4- Lacto/Ly to th~ Sec~tetaiuj. CONCERNS Qae4tion No. 1 Voe4 the bidding p'Locedwte.6 compLy to the exi4ting Swteau o~ç Ind.Lan A~aia4 (BIAI `uLLe4 and xeguic.tion4, Section 7(b) o~ PL 93-638? PAGENO="0410" 404 Q~aeAt~on No. 2 Wh~Lcth a~eiicy, FedexalITitJ~bal oi~ both, ha,5 the pon4J~bJ2ity to £o~tmweate. and ovex4ee the IndZan a~L&ma~t~ve ctct~on p&zn? it ~s obuLow~ that the pitopo4ed Ind&zn Kow&i~tg Act o,S 1982 ~s to be ~tegL~st~~ted wideit the SIA Li~ the £egJ~latLon L-~ pa~&~ed; that 81A ~`tu&~ arid ~`tegula~tLon4 govenn~ng the Ind~Lan pIte~eILence ~tequJJ~ement4 4how&L become pant o~ the £egL~s&vtLon. ExL~tôig £aw~ 4howed be hono'ied and not `teVitqaJ.~shed. in adcUt~on, 4ectLon 7(b) would p'tobabey be mane w~Lde!y ~`iecognLzed and accepted by both the Bwieau. o~ incUan A~aL'rA and the va.'uow5 IncUcit TxibaL Govvtnment~ that would Lilac to ~ee incUan Piae~exence /aequi/aement-6 en~o'aced. 8ELOW iS A COMPLETE ANALYSTS OF SECTION 7(b) OF P.L. 93-638 Section 7(b) o~ P.L. 93-638, `iead4 C~6 £oLloW4: One uvay &npo'atant pJaovJ~4~Lon o~ the Act caLLo ~o~t Indian Pite~enence in ~`_`iaJ~nJ~ng and empLoyment undvt cont'ac~ct6 a~ g/aant6 which bene~Lt~s IncUan.6. The Act 4tcle4 in Section 7(b). (8) Any contitczct, 4uhcont'aaet, gicant, olt ~stth- gliant pwt4uant to th.&~ act, the Act o~ Ap'cul 16, 1934 (48 4tat. 569), a~s amended olt any othvi act aathoitizing Fede.kaL Cont&act~s o~ indLan4, 4h011 xeqwL'ae that the g'teate4t extent £ea4LbLe give. (1) P~'ae~enence and oppantunitie2 ~o't t aining and empLoyment in connection with the admiLnL- 4tiiaton O~ 4uch contJaacts o.'t gitant.6 4haLZ be given to Indian~~; and (2) P~te~eJtence in the awa'ad o~ 4u.bcont)iacts and thgiiant4 in connection with the admJ~nL~t'iation o~ ~sach contitacts an g)acUvt4 4halJL be given to Indian o'aganization4 and to indian-owned economic PAGENO="0411" 405 en~pici~e.~s a~ de~Jned i,n Sec,t~on 3 o~ the indilan F~ôianeôtg Act o~ 1974 (SS 4tat. 77). Thi.A 4ectLon addice&se4s one o~ the ez~sent~a.~ componenJ~ o~ 4et~-demLna,t~on. Foit 4eC.~-detvcmJ~zatjon to be optimalltj e~ectLve. Indian t~e~be4 mw~t have econom& 4-4u,~f~ciencij, whLch xequL'ce4 a 6u~b4tant&1~ xedaat~on in the high unempLoyment xate4 that now pxevalL on mo4t /ce.~sexvation4. Et~ectLve impLemen~tatlon o~ Section 7(b) couLd mean many new job4 Lox indian4 in PubLic and Pitivate Envcpiti~se~ on/cit newt the indian Rvva.tion4. Fox e~campLe, e~ective enLoxcement wouLd mean enrpLoyment o~ indian4 on all Fedvcaily Lwtded conat&actLon pxojects on/ox newt indian Re.4exvatLOn4, a~o weLt a~ on Pxocwce- ment and 4efcvice cont&act~s. On mo4t ite4e/tvatjon,6 unempLoyment Jta,te4 ave/cage io-go~. RATiONALE While pxeLenence to indian.6 ha.~ been pexmi~ib& in the pc~t thi~ in Lice Lixat time that Fedeitat Law6 make~ it a itequixement Lox FedexaL cont'cactox4 4e'tving indian-6. AL-6o, it in appLicabLe to aLL Fedenat Agencie4 which Let cont'tact~s Lox the beneLit oL indian4s and in not jwst Limited to the ~IA and THS. (The p. L. 93-63g xegulatLon4 have 4peci~ic Language on the obtigation4s oL the tkibe4 to give indian empLoyment pxe~exence tthen the txibe contitacti a ~IA ox il-IS Pitogicam. The-6e 4peciaL pxovi4lon4 271.44(d) gave t'tibe4 gxea-tex LLe~cibiL-LLy in the adminint'tation oL indian pxe~exence and t'cibe4 would not be wideit the 4t'tictex enLoxcement ~y~tem deveLoped to coven non-titibal cont'tactox4 4ack a~6 cobv6txctction companie4). in the pa~t, the Lack oL con4i/~tant Fede.xaL poLicy CL xeqa-&ting cont'tactox4 to give liLting pxeLexence to indian.~s itenutted in a 4itua-tion ctheitein cont'tactox4 u4u.aLLy bxought theijt own citew6 to the pitoject 4ite4 and hL'ted Lew indian4 Litom the Local community. Given the va4t amount oL con4t'utction and pxocuxenient conticacting being pLanned Lox xe4exva,t-ion6, eLLective enLoxcemettt would i,uujte that indian4 xeceive the many job oppoxtilnLtie4 that othvcwine wiLt LikeLy go to non-indian4. in a itecent 111W/indian HouAing Pxoject Located on the Zwti Re4envation, the TERO Pitogitam and the Ca.stpentvc'4 Union 1319 out oL Atbuquexqae, PAGENO="0412" 406 Wew MexZco woitized ou~ a rnemo.'~andum o~ undew~andJ~ng ag~'r.eemeivt a oi~dv~ ~o Iuwe. a cwtpen~4 ôthi9 p~'togxam eoLneJ~de wLth .the HLIVI1HA PxojecL Thene. wene. a totaL o~ 25 Indian eaitpen.teA app~entie.e4 o~ which 5 wene aduancad ~o jouxneyman Level th'tou9hoWt the pitoject. Atso, o~hvt app~teJvtLc2~4 wene advanced to higheA aLa ca~ti.on4 4ach a~ Md and 4th yeax appltentLce4. The t'taining con4ii~ted o~ on-the-job and c1a~w~oom t&aJitLng. The tiuththtg mi ~acto~t and aLL the tkainiitg mat.VtL014 wexe pxovided bb' the Caxpenteit'4 Union with a~s~Wance ~om Zwi.L TERO. With thi~ hind o~ widen~tanding and coopenatLve e~o~'Lts to t'Lan lndian4, indian pie~enence Law~s 4houLd be 4t)Lengthened to its wtmo4t e~iciency. SectLon 1(b) now pJtovJ4e~6 the oppolttunLt4 £o~'t the deveLopment oic a GovvLnmervt-wide poL~icg, 4et o~ ~teguLation3, and en~oM~eme~vt 4y4tem £thicJL wiLL iiuwte the comp'tehen4ive and en~otcectbLe appitoach to indian pi~e~exence that ha4 been LarLfzing in the pa4t. TJr.ibe4 and the BTA 4hould woxfz togethe'L to in.6tute that the Fede.'taL Govvtnment deveLop an e1~ec.tive ~`~y~&tem to en~oJLae the~se new indian p~e~e_&ence i~ights. &c4ic components o~ the .~y~te.m 4hould incLude: 1. The e4tabL-L6hment o~ a Fe.dexol O~ice (in the BIA, p&e~e~&abLy SIA contxacting o~ice4) which ha4 aLLtho/uilJ oven contjtaato~s to aLL Fede/taLIT/~ibal Agencie4. 2. The deveLopment o~ ~st'wn,g JteguLation4 which ~teqaJAe a covvted conttaetoJ~ to e4tabLL6h goaL-s and timetabLe-s ~oit the empLoy- ment o~ india.n-6 unde~t the conttaet. Fo-'t exampLe, in a cont'wetion cont&act, be~o~te the contitact even begLn-6, thene hoaLd be an agi~eement obLigating the cont'tacto-'t to h-ujte a Lined pencentage oL indian~s. (The pvtcentage -should be bcAed on the nwnben oL quoli~ied indian-s avaiLabLe in the aitea). Thi4 i~s a mach -st~&ongen appitoach than jut JtequiAng a gene.tal obLigation to give indian pite~enence. 3. Titibal invoLvement is essentiaL i~ an enLancement pi~ogJwin i!=s to be e1~ective. Fin-sC, ThihaL Contitution and LegaL opinion maize it cLean that Thibe-s have the -`tights to `tequine indian PiteLe.'tence by cont'tacto't which the Tx-Lbe hine, o't to itequ.ine an empLo yen to give indian pJte~enence as a condition to giving the enrpLoyen a Licene to do ba-sine-ss on Indian Land, etc. This tizibaL authoitity may be wsed to coven non-Ledvtal corttitaèto/~4 we weLL a4 LedenaL one-s. Whene a tsibe is ex- excising the ~`tight_5, the Lede-'taL enLo~'tcement pitog-'tam ~shouLd be cooitdinated with that oL the T-'tibe. Koweven, among t.&ibe-s thene ha-s been ,sub,stantiaL conLu2ion about Indian pfieLe-'tence PAGENO="0413" 407 and non-dL~sctijn~üj(ztLon. The~'te ~ a need to edaectte TJL~Lbe~~ about theLit n'ght~ and the na~twte o~ the Fede.nai.~ en~once- ment pkog/tam to ~n4wte 4mooth £mpee.mentatzon o~ the ~edvuzL poeLcy. Expei~Lenee ha~s 4hown that FedeAci Agenc&~ *a~&eLy have the Manpowe.~& to e~eetLve&j mon~to~'t eont'taat compLiance /tegu&vt.~on4. In many Ca4e.4, the o -L~LcL6 who w~LLL be `Le~pono.~LbLe ~oi~ hanctUng Ind~Lan Pne~enence gw~deVne~s w~&1 be the 4ame one~ who ane aLiteady ovenwoidzed. The,ce~o,ce, t&~LbaL (TERO) 4hould be £nvoLved ôt the ~ede'caL e.~ont5 A.n ondea to p/tov~de a 4uppLementany Ice4oWcce to tho4e o~ the ~edv~a1 agenc.~Le4. Atso, Indilan pice~enenee en~o'ceement -shouLd be eooxcUna;ted with Tn.ebaL Manpowen P~'cogJtam~s 40 that t'ta&ied lncUwvo w~iLL be ava~LLabLe when job4 open up. RECOMMENVATIONSTO We Jcecommend that Section 215, entaiL SectLon 7(b) Language a~ 4et i~o'tth ~n, "Pnopo4ed Sec.t~on 215, as Amended Item 111. In addiiUon to the 7(b) Language, the -6ect~Lon 4hoaLd aeiznowLedge ticibai Law4 an oitdLnances that aL5o govenn 4wth actLvLt~e4. The PuebLo o~ Zwi~L TERO doe6 have a T'ubaL Laboit Code/OitdZnance that govvc~u lncUizn pite~exence ~teqw&cements. A4 you can bee, w-Lth the above P.L. 93-638 Act, S1A haA been gLven a ta,,s(z to do and ~oit ~iit to 4uppoitt and impLement FedeitaL Law4 4uppoxtLng InctLan pite~exence iteqw&cement~. ALong with 131A, the Ticibe.6 them4etves wowed be a vitaL ingitedient -to the total en~o/tcement o~ 4uch LegL~,LatLon. The PuebLo o~ Zwti £~s `teque6tôig that a compLete neview o~ P.L. 93-638 be p-'ce-6ented and given 4ticong con~ideitation ~oit pLacement in the KJ~. 5988, in o-'tdex ~o.'t the indian Titibe4 to be.ne1ç~it. AL4o, attached ~on yowt -teview and coni,,idvcatjon i4 a 131A-FES (Novembe& 1979), addee44ing the 4ame i44ue. The 4ection on Indian pne~e-tence waA deveLoped by the ALbuquvtque ~iA A/tea O~ice, contact peJc~on M&. No~'cman Tippiconnic. The Indian pice~e/cenee cLaw6e i,~ veicy 4uppoxtive o~ Ticibal Law4 that `teguLate incUan pJte~eicence (4ee 4ection 50, indian pitet6e.itence p.'tog~'tam~s). PAGENO="0414" 408 SOLUTION In oxde.x to on~nodo~te. the. concvtn4 oL the. vax~Low~s ~td~wi TxLbe.4, the. Pae.b~o oL ZwiL xe.que.-~t'~ that LaL~ con4J~dVuzt_LoJt hi v~Lei~Jiig the.~e. in JihtZ6 be. g~Lue.n and that pxope.x athnow~edge.mQ~}Vt o~ 4ach conce.xn4 be. p&zce.d Lii the. p~'wpo4e.d K.R. 5988, `THE INDIAN HOUSiNG ACT OF 1982." PROPOSED SECTION 215, AS Ak~ENVEV INCLUDES 1(b) LANGUAGE, P.L. 93-638 INDIAN PREFERENCE Se.ctLon 215: Any Contfie.ct, ~or.thcontxcct, gxan~t ox 4ab9xafl~ unde.x thh~ titee. 4haLE be. awcvtde.d Lit ctccoxdance. to Se.ct.~on 1(b) o~ the. lncUan 4e.f.~-de.tvunLncit~~on and EdacatLon M~sL.4tance. Act (P.L. 93-638), 88 Stat. 25, U.S.C. 4O5~_ (b) -~tate's: (B) Any cont'to~ct, t~abcon~txact, gxant ox ~abgxant pax4aant to thL~.s Act, the. Act oL ApxiE 15, 1934 (48 i~tat. 569) a-ó ame.nde.d, to the. John~on O'MaLee.y Act) ox any othe.x Act authoxl-ng Fe.d~ita2 Contxctcts w~Lth ox gxant6 to lnd.Lan oxg~izat~on~ ox Lox the. be.ne.L~Lt oL IndLan.-6, ~h~t& xe.quixe. that the. gxe.ate.-~t e.,tte.nt £e.a~LMe.. (1) Pxe.Lexe.nce. and oppoxtwv~~ty Lox txainiitg and e.rnp~oy- me.nt Lii connection utLth the. admLnL6t'tatLon oL ~ttch conte.act4 ox gxant4 4hctF~L be. gLve.n to IndLan~s; and (2) Pxe.Lvte.nce. Lit the. awaxd oL ~&tbcontJto~ct4 and ~eu~b- gxant~6 hi conne.ctLon wLth admijvLat&a,tLon oL 4u0J1 cont~&act4 ox gxant4 4hoJi be. gLve.n to Indhin oxgan.Lzat~Lon4 and to indLan owned e.conomic e.nte.xpxL4e.4 a4 de.~Lne.d hi ,se.ct.Lon 3 o~ the. Indian FLnancLng Act oL 1914 (88 4t0f2. 71). INDIAN PREFERENCE PROGRAM (A) In addition to the xe.qaL/te.me.nt6 oL the. c&iw~e. oL thhs bill, e.ntLtLe.d "Indian Pxe.Lexence.," the. contxactox a~xe.e4 to abide. by Zocol indian Pxe.Le.xe.nce. taw4, oxdLnance.4 ox xe.guLo.tLorL4 and to adhexe to aLt Fe.de.xa~ and TxLbaL £aw6 gove.xnLng thLo 4e.cton. PAGENO="0415" 409 49. I~IAN PREFERINCE Bli-FES (Novenber 1979) a. The Contractor agrees to give preferences to Indians who can petforo the work'required regardless àf age (subject to existing laws and regulations), sex, religion, or trIbal affiliation for training and enloynent opportunities `under this contract and, to the extent feasib1~ consistent with the efficient poerfor~ance of this contract, training and enploynen: preferences and opportunities shall be provided to Indians *egardless of age (subject ~o existing laws and regulations), sex, religion, or tribal affiliation who are not fully qualified to pe~o~ under this contract. The Contractor also agrees to give preference .to Indian organ~ations and Indian owned econonic enterprises in the awarding of' any subtontracts consistent with the efficient perfo~ance of this contract. The Contractor shall nsinzain such records as are necessary to indicate conpliance with this paragraph. b. In connection with the Indian ezploynent preference require- nents of this clause, the Contractor shall also provide oppornutinies for training incIdent to such enploynsnt. Such training shall inclnde on-the-job, classroon, or apprenticeship training which is dasi~ed no increase the vocational effectiveness of an Indian eployee. c. Ii the Contractor iS unable to fill ins training and ~?1oY- neon needs after giving full consideration no Indians as required by this c.~ause, those needs ay be satIsfied by selecticn of persons ocher than. Indians in accordance with the clause ci this contract entitled `Zçuai C??orzunitY. 18-934 O-83--27 PAGENO="0416" 410 d. If no Indian organirations or Indian-owned econonic enter- prizes are available for awarding of subconttacts in connection with the wok perfoned under this contract, the Contractor agrees to ccnply w±th the provisions of this contract involving utilizatIon of stall business concerns, stall business concerns owned- and controlled y so tinIly and econctically dis advantaged individuals, or labor surplus area concerns. - e. .&s used in this clause: (1) ~IndLan" uean.v a person who is a nether of an Indian Tribe. If the Contractor has reason to doubt that a person seeking erploynan: preference is an Indian, the Contractor shall grant the preference but shall require the individual witkin~ thirty (30) days to proride evidence fran the T:lbe concerned that the person is a tanber of that Tribe. (2) lndian Tribe~ mans an Indian T~be, band, nation, or othet organized group or cconiny, including any Alaska Native village or regior.a.!. or village corporatIon as define4 in or established. pu~an to the Alaska ~Zative Clams Se:tlenan: Act (85 Stat. 688; 43 U.S.C. 1601) which is reognined as eligible for the special prograns and services. pravidof- by the United States to Indians because of their status as Indians. (3) lndian organizacion~ neans the governing body of any Indian Tribe or entity established or :eco~ized by such governing body in accordance with the Indian Ylnancing Ac: of 1974 (88 Scat. 77); 23 U.S.C. 1451); and (4) ~Indian-owned econcoic enterprise~ naans any Indian- owned cc~nercia1, Industrial, or business activity established or o~anise~ for the purpose of prof it provided that such Indian owner- ship shall constirnne not less than 51 percent of the enterprise. I. he Contractor agrees :~ include the provisions of this clause including this paragraph (I) in. each subcontract awarded under this contract. g. In the event of nonccrpliance with this clause, the Con- tractor `s :1ghz to proceed nay be ta.rnina:ed in whole or in parn by the Contracting OffIcer and the work corpleted in a tanner de:ernined by the Contracting OffIcer to be in the best interests of the Gowernaent. 50. L~ PII3Z2~CZ PP~0CL~~h 3IA~IS (~ovezber L970) a. In additIon to the :equi:enents of the clause of this contract entItled ~Indian Praference,~ the Contractor agrees to establish and cccduc: an Indian preference progmnn which will ernand the opportuninias for o~grniations and Indisn-twned econonic enterprises to receive PAGENO="0417" 411 a preference in the awarding of subcontratts and which will expand opportunities for indians to receive preference for training and etployt~nt in- connection with the work to be perforned under this Contract. In this connection, the Contractor shall: (1) DesIgnate a liaison officer who will (i) naintain liaison with, the Government and the Tribe(s) on Indian preference matters; (ii) supervise conpiiance with the provisions of this clause; and (iii) adi:Isoer the Contractor's Indian preference progran. (2) Advise its recruitnent sources in writing and include a statemant In all advertisements for employnent that Indian applieants will be given preference in enploynent and training incident to such employment. (3) ~ot less than tuenty (20) calendar days prior to ccn- encemen~ of work under this contract, post a wrItten notice, in the Tribal office of any reservatio~ on which or near where the work ~der this contract is to be performed, which sets forth the Contractor's employment needs and related- training opportunities. The notice shall include the approximate numbers and types of enployees needed, the appron~nate dates of employment; the experience or special skills required for employment, if any; training opportunities available; and all other pertinent informatIon necessary to advise prospective employees of any other employnent requirenents. The Contractor shall also request the Tribe(s) on or near whose reservation(s) the work is to be perfored to provide assistance to the Contractor in filling its erploymenc needs and training opportunities. The Contracting OffIcer will advise the Contractor of the name, location, and phone number of the Tribal officials to contact in regard to the posting of notices and requests for Tribal assistance. - (4) Establish and conduct a subcontracting progran which -gives preference - to ~ndian organizations and Indian-owned economic enoarorises as subcontractors and suppliers under this contract. Consistent with the efficient performance of this contract, the Contrzctor shall give public notide of existing subcontracting oppor:unizics by soliciting bids or proposals only from Indian crgarizztions or Indian-owned economic enterprises. The Contractor shall request assistance and information on Indian firms qualified as su?pliers or subcontractors fron the Tribe(s) on or near whose rese~amicn(s) the work `under the contract is to be perforned. The Contracting Officer will advise the Contractor of the name, location, and phoma nmber of the Tribal officials to be contacted in regard to tha re:uest for assistance and information. Public notices and solicitations for existIng subcontractIng opportunities shall provide an ezitable opportunity for Indian firms to submit bids or proposals by inoloding (i) a clear descrIption of the supplies or services re~ui:ed including quantitIes, speclflcatlocs, and delIvery schedules which facili:ate the participatIon of Indian fIrms; (ii) a statement that preference will be given to Indian orgar.ioations and ndizz-owed economic enterprises in accordance with Sectaca ~b) of PAGENO="0418" 412 Pwhlic Law 9~'638 [8~ Stat. 2205; 25 U~S.C. 450e(b)); (lii) dofijo~s for the tarts ~indian organ±:a:~on~ and ~Indian-owne.d econcoic ter-~ prise as escrihed under the ~indian P:e±erence~ clause of this contact; (Iv) a representation to be corplened by the bidder or offeror than in is an Indian organisacion of Indian-owned econctic enterprIse;- and :~) a c2.osir~ date for receIpt of bids or proposals which provides suffinjen: tice is: preparation and subtission of a bid or proposal. If sf:er sol±~ing bIds fro Indian orgatinations and Inlet-owned eco~in enterprises, no responsive bid is received, the Contractor shall. cc=ly with the requirensnns of paragraph Cd) of the Thdiat Preference" clause of this contract. If one or tore responsive bids ate received, award shall. be nada to the low responsible bidda~r if the bid prIce is denatnined to be reasosable. If the low responsIve bid is de:erine4 no be unseasonable as to pricsj' the Contractor shall, aetenpa to negotiate a reasonable price and award a subcontract. If a reasonable price cannot be agreed upon, the Contractor shall cooply with the reqi.~icanen:s of paragraph (d) of the "Indian Preference" clause of this contrac. (5) Ifainnain wrItten records under this contract which - iodi~ta: (I) the nanes and ad'daesses of all, Indians seebiag enploynenn for each enployne.nt position available under this contract; (ii) the ncnber and types of positions filled by- (A) Indians and (3) non-" IndIans, and the tans, address and posItion of each Indian enployed under this contract; (iii) for those positions where there are both Indian and nan-Indian app~.icznts and a non-Indian is selected for euploynent, the reason(s) why the Indian applicant was no: selected; (iv) actions taken to ~ve preference to Ind.iat organizations and Indian-owned econonmc enterprises for subconnractI~ opport.inies which e~.s: - under this contract; Cv) reasons why preference was not given to Indiet flrns as subcontractors or suppliers for ea da requirenen: where In was de:e.ined by the Contractor that such prefewrence would not be consistent with the efficient perdorsance of the contract, and (vi) the anes and addresses of all Indian orgnnizaions and Itd,iit- owned eccnonio enterprises (A) contracted, ar.d (3) receiving sub- :?ttract awands under this contract. (6) The Contractor shall subtit tn the Con:ractI~g OffIcer for £?proval. a quarterly repor which suarizes the Contractor's Indian preference progran and indicates (i) the nunber and types of avaIlable positions fIlled and dollar a:ouncs of all subcontracts awarded to (a) Indian organiactlons and Indian-owned econonic enter-' prizes and (b) all other flats. (7) Records naintainad pursuant to thiS clause will be kept available for review by the Coverrtenn until expiratIon of one (I) rear after fInal. paynant under this contract or for such longer period as nay be required by any ocher clause of this contract or by an-olisabla or rsuLaclon. (`a) Zo: purposes of this clause the following deflni:Ions of tarts shall apply: PAGENO="0419" 413 (1) The terns "Ind1an,~ "Indian Tribe," "Indian Organizac1on,~ and "indian-owned' econonic enterprise" are defined ifl the clause of this contracn entitled "Indian Preference." (2) "Indian reservation" includes Indian ras~rvations, public donain Indian allotcents, forer Indian reservations in Okiahona, and lind held by incorporated Native groups, regional corporations, and village corporation~ under the provisions of the Alaska Native Clams Set:iean: Act (83 Stat. 688, 43 U.S.C. 1801 et.seq.). (3) "On or near an Indian Reserva don" nenas on a reservation or reservations or within, that area surrounding an Indian reservation(s) where a person seeking enploynent could reasonably be erpectad to co:e to and fron in the course of a work day. Cc) Nothing in the requirenents of this clause shall be interpreted to precluda Indian Tribes fron independently developing and enforcing their *ovn Indian preference requirene~ts. Such requirenents cued not hinder the Gôvernnen: `s right to award contracts and to adninister their provisions. Cd) The Contractor agrees `to include the provisions of this clause inci~dig this paragraph (d) in each subcontract awarded under this contract and to notify the Contracting Officer of such subcontracts. (e) In the event of noncoepliance with this clause, the Con- tractor's right to proceed cay be tercinated in whole or in part by the Contracting Of f~cer and the work cocpleted in a canner detercined by * the Contracting Officer to be in the best interest of the Governnent. PAGENO="0420" 414 CHAIRMAN Robert Chasing Hawk SECRETARY Arlene Thompson TREASURER Mona Cudmore I ViCE-CHAIRMAN Lanny La Plante MAY Honorable Morris K. tJdall 235 Cannon House Office BUilding Washington, D. C. 20515 Dear Congressman Udall: House of Representatives Bill 5988, "to provide for an rndian Housing Program for construction and financing of housing for Indians, and for other purposes, is in our view not at all in the best interests of the Cheyenne River Sioux Tribe. In a long tern aspect, the Bill appears to be very detrimental to the tribes. Thus, it is our recommendation in amending the Bill to be acceptable and beneficial to Indian tribes. First of all, the recommended appropriation is not adequate to meet Indian housing needs. It has been estimated for FY i983 according to Title I that a level of $30,000,000 is needed, However, the current funding for the BIA Housing Improvement Program is $23,000,000. By simple mathe- matics, the tribe will be operating on a deficit and will then proceed into an irreversible financial situation. Failure to adequately fund this program is only a mockery of appeasing the tribes, and forcing thee to abide by federal regulations wfthout any input from the tribes is totally absurd. Secondly, it sounds like the Bill will make the federal government violate its own trust responsibility with the tribes. For attaching tribal trust funds as collateral to meet the financial stipulations of the contract in case of delinquency is contrary to its trust responsibilities. If such a bill was to be passed, it would then set precedence to disavow any legal obligations by the Federal government to protect the rights of tribes. The present language of the Bill states that the tribes, after thirty days written notice, would be entitled to pay on default contracts as specified by the Secretary. Thus, we believe that language is needed The blue represents the thunder clouds above the world where live the thunderbirds who control the four winds. The rainbow is for the Cheyenne River Sioux people who are the keepers of the Most Sacred Cult Pipe, a gift from the White Buffalo Calf Maiden The eagle feathers at the edges of the rim of the world represent the spotted eagle who is the protector of all the Lakota. The two pipes fused together are for unity. One pipe is for the Lakota, the other for all the other tndian Nations. The yellow hoops represents the Sacred Hoop, which stroll not be broken. The Sacred Cult Pipe Bundle in red represents Wakan Tanka.The Great Mystery. All the colors of the Lakota are visible. The red, yellow, black and white represent the four major races. The blue is for heaven, and the green for Mother Earth. May 19, 1982 PAGENO="0421" 415 Page 2 Indian Housing Act of 1982 for some kind of sanction for nonpa3lsent which is currently lacking in the HUD Indian housing program. Also, the tribe has to maintain 90 percent of the amount due at anytime or the Secretary may declare the tribe in- eligible for any further assistance and attach the tribal trust funds in order to satisfy the debt, Thirdly, Title IV of the proposed legislation will create an Office of Indian Housing Programs within the Bureau of Indian Affairs for technical assistance and training to Indian tribes. This is all well and good, however, we would like to see some follow-up by the Bureau of Indian Affairs. Time after time, new appendages are added to the Bureau of Indian Affairs, but no real service is ever provided to the tribes. Therefore, we think that the recommended levels of appropriation for this program should be at least equivalent to the funding levels proposed in this legislation. This would involve recommending an increase for purposes of the First Budget Resolution of $35,000,000 in Indian Housing Assistance Fund and $10,000 in the Indian Housing Improvement Program. Also, a re-evaluation of the federal government trust responsibilities should be taken. bflthout a firm commitment to the tribes, no self- sufficiency can ever be achieved. Sincerely, Robert Chasing Ha k, Chairman Cheyenne River Sioux Tribe cc: W. Richard West, Jr., Attorney, Fried, Frank, Harris, Shriver & Kampelman House Committee on Interior & Insular Affairs Ira Grinnell, Executive Director, Cheyenne River Housing Authority PAGENO="0422" 416 TESTIMONY N1END~'ENT IN THE NATURE OF A SUBSTITUTE TO !IR ~3 THE INDIAN HOUSING ACT OF 1932 SUGGESTED REVISIONS AND COt'?~ENTS AS SUBMITTED BY THE NORThERN CHEYENNE TRIBAL COUNCIL AND TRIBAL PRESIDENT ~`R. ALLEN R(W&AND JULY 27 1932 AFTER CONSIDERABLE DELIBERATION AND ANALYSIS OF THE CONTEXT IN THE MOST RECENT S1JBSTI11S~E TO HR5983, THE INDIAN HOUSING ACT oF~J932, I, ALLEN ROWLAND FOR AND IN BEHALF OF THE NORTHERN CHEYENNE TRIBAL COUNCIL, ADAMENTLY SUGGEST THE FOLLOWING REVISIONS TO THE ABOVE CITED LEGISLATIVE SUBSTITUTE. PLEASE, BE ASSURED THAT AS THE SUBSTITUTE IS PRESENTLY DRAFTED, I NOR THE NORTHERN CHEYENNE TRIBAL COUNCIL WILL SUPPORT OR RECO~'Y'END ADOPTION OF THE BILL tJNTIL SPECIFIC REVISIONS ARE INTRODUCED, AS OUTLINED BELOW. STRIKE THE FOLLOWING SECTIONS AFTER THE ENACTING CLAUSE AND SUBSTITUTE THE FOLLOWING: "THE INDIAN HOUSING ACT OF 1932", AS CITED. PAGE L SECTION 3.(2) "AMORTIZATION PAYMENT" MEANS THAT PAYMENT THAT HOULD BE EQUIVILENT OF THE LEVEL M)Nil-LY AMOUNT NEEDED TO AMORTIZE THE CAPITAL COST OF A HOUSE OVER THE TERM OF A HOUSING ASSISTANCE CONTRACT SUBJECT TO A NEGOTIATED REPAYMENT SCHEDULE AND CONSISTANT WITH THE FEDERAL HOUSING ADMINIS- TRATION RATE CURRENT ON THE DATE OF THE EXECUTION OF A PROJECT A(~REEMENT~ CO~T'ENTS AS THE SJJBSTI11JTE IS PRESENTLY DRAFTED, SUCH LANGUAGE IMPLIES THAT ALL HOUSING ASSISTANCE CONTRACTS MUST BE EXECUTED FOR A MINIMUM OF 25 YEARS, EVEN IF THE HOME BUYER OR BORROWER IS CAPABLE OF REPAYMENT IN A LESSER PERIOD OF TIME. PAGE 2~ SECTION 3.(6) "MORTiAGE" MEANS A MORTGAGE, DEED, OR ANY Oil-ER PAGENO="0423" 417 TESTIMONY BY ALLEN ROWLAND PAGE 2. INSTRUMENT ESTABLISHING A LIEN ON REAL PROPERTY IN FEE TITLES COt~?1ENTS AS CITED IN PREVIOUS TRIBAL TESTIMONIES, THE NORTHERN CHEYENNE TRIBE WILL NOT SUPPORT NOR ALLOW FOR THE ENCUMBERANCE OF TRIBAL OR INDIVIDUAL TRUST PROPERTIES, PAGE 2~ SECTION 3. (9) "STANDARD HOUSING" MEANS A LY~'!ELLING IN A CONDIDTION WHICH IS DECENT, SAFE, SANITARY, AND SUITABLE IN SIZE AND DESIGN, SO THAT IT AT LEAST MEETS THE FOLLOWING MINIMUMS -- J COt~T~1ENTS ThE PRESENT USE OF THE ADUECTIVE. "MODEST" IMPLIES THAT RESERVATION HOUSING WILL, AGAIN, MEET MINIMUM CONSTRUCTION STANDARDS AND CONSEQUENTLY PROVE INSUFFICIENT FOR LONG TERM USE AND DURABILITY, PAGE 3, SECTION 3.(1O) "TRIBAL HOUSING AGENT" MEANS THAT BUSINESS OR TRIBAL CORPORATE ENTITY OR ADMINISTRATIVE UNIT RECOGNIZED AND SANCTIONED BY THE TRIBAL GOVERNMENT AND WHICH HAS BEEN DESIGNATED OR ESTABLISHED BY THE TRIBE TO PLAN, MANAGE, ADMINISTER, AND ENFORCE TRIBAL PROGRAMS UNDER THIS ACT; (INSERT THE HORD AGENT IN LIEU OF AGENCY IN ALL SECTIONS HEREINAFTER) CO~?'jENT~ AS THIS SECTION IS PRSENTLY DRAFTED, THE LANGUAGE IMPLIES THAT ThE `TRIBAL HOUSING AGENCY" IS AN ARM OF TRIBAL GOVERNMENT PAThER THAN A TRIBALLY SANCTIONED BUSINESS OR CORPORATE AUTHORITY WHICH MUST CONDUCT THE FUNCTION `OF SECURING HOUSING FOR INDIAN INDIVIDUALS AND FAMILIES. THE NORTHERN CHEYENNE TRIBAL COUNCIL I4JST INS 1ST THAT RESERVATION HOUSING BE PROVIDED AS A BUSINESS FUNCTION, RATHER THAN A WELFARE PROGRAM WHICH ULTIMATELY WILL JEOPARDIZE THE CONSTITUTIONAL AND ECONOMIC STABILITY OF TRIBE AS A UNIT. AS PREVIOUSLY TESTIFIED, ThE NORTHERN CHEYENNE TRIBAL COUNCIL WOULD GRANT CORPORATE AUTHORITIES TO THE HOUSING AGENT AND REQUEST TRANSFER, AS CORPORATE ASSETS OF ALL RESERVATION-BASED I-LJD UNITS, YET UMPAID FOR AND TO INCLUDE RENTAL UNITS AND COMPLEXES, PAGENO="0424" 418 TESTIMONY BY ALLEN ROML4ND PAGE 3. THE NORTHERN CHEYENNE TRIBAL GOVERNMENT SHALL ASSUME NO LIABILITIES FOR THE "HOUSING AGENT" YET, SHALL INSIST THAT THE "HOUSING AGENT" AS A TRIBAL CORPORATE AUTHORITY, SECURED WITH TRIBAL LAW WHICH EMPCfl~1ERS THE AGENT TO ENFORCE REPAYMENT PROCEDURES, ESTABUSH A DEFAULT CONTINGENCY RESERVE AT THE HOME BUYER'S EXPENSE TO ENSURE TIMELY PAYMENT, AS ESTABLISHED IN SECTION 211. (a), OF RESIDUAL RECEIPTS DUE THE FUND. PAGE 6~ SECTION 105. THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED FOR THE PURPOSES OF THIS TITLE, NOT TO EXCEED $50,000,000. IN FISCAL YEAR 198Lf, $60,000,000. IN FISCAL YEARS 1985 ~ 1986, p~r~r ~7Q,00O,000, IN FISCAL YEAR 1987, ~A OIAtED SUM THEREAFTER, YET, NOT LESS THAN $50,O03~000. ANNUALLY. CCflIENTS AS PRESENTLY DRAFTED IN TIE SUBSTITUTE, THE ANNUAL APPROPRIATIONS ARE SERIOUSLY INADEQUATE FOR WHAT WILL GENERALLY ENCOMPASS RENOVATION OF EXISTING RESERVATION HOUSING STOCK. RENOVATION OF STRUCTUALLY UNSOUND HOUSING AVERAGES BETHEEN $]3~000, AND $22,000. ON THE NORTHERN CHEYENNE LAND BASE. PAGES 6~7~ SECTION2OL THERE IS HEREBY ESTABLISHED AN INDIAN HOUSING FINANCE FUND (HEREINAFTER REFERRED TO AS THE "FUND") FOR TIE PURPOSE OF PROVIDING FINANCING TO INDIAN TRIBES FOR THE CONSTRUCTION, ACQUISITION, OR REHABILITATION OF STANDARD HOUSING FOR INDIAN FAMILIES WHO ARE UNABLE TO OBTAIN FINANCING FROM OTHER SOURCES OR REASONABLE TERMS AND CONDITIONS AND WHO ARE NOT ELIGIBLE FOR ASSISTANCE UNDER TITLE III OF THIS ACT BUT WHO CAN MEET THE MINI~ii MONTHLY PAYMENT REQUIRED BY THIS TITLE. COt~?1ENTS~ TIE FINAL SENTENCE OF THIS SECTION, AS DRAFTED IN THE SUBSTITUTE SERVES NO REASONABLE NOR LOGICAL PURPOSE. PAGE 7~ SECTION 202 AS A PREREQUISITE FOR ELIGIBILITY FOR FINANCING~ FROM THE FUND, A TRIBE OR THE TRIBAL HOUSING AGENT ~JST PREPARE AND SUPMIT TO THE SECRETARY FOR APPROVAL, WITHIN A REASONSBLE PERIOD OF TIME, A TRIBAL HOUSING PLAN, AT THE SECRETARY'S EXPENSE. PAGENO="0425" 419 TESTIMONY BY ALLEN ROWLAND PAGE 14, SUCH PLAN, AT A MINIF4JM, SHALL INCLUDE AN INVENTORY OF EXISTING HOUSING,' AN ASSESSMENT OF HOUSING NEEDS,' A PROPOSED TRIBAL BUSINESS AND ADMINISTRATIVE STRUCTURE TO IMPLEMENT A HOUSING PROJECT,' AN ASSESSMENT OF TRIBAL ADMINISTRATIVE AND CORPORATE CAPACITIES TO IMPLEMENT SUCH PROGRAM,' A PROJECTION OF HOW THE* TRIBE INTENDS TO ADDRESS AND MITIGATE IT'S HOUSING NEEDS OVER A MULTI-YEAR PERIOD,' AND AN ASSESSMENT OF INDIVIDUAL TRIBAL MEMBERSHIPS' ABILITIES TO REPAY SUCH INDEBTEDNESS. COf4~1ENTS REFER TO SECTION 3. (10) OF THIS DOCUMENT. ?AGE 7, SECTIOI( 203. (A) APPLICATIONS FOR FINANCING FROM THE FUNDS SHALL BE SUBMITTED TO THE SECRETARY AND SHALL SPECIFY THENUJIBER OF HOUSING UNITS TO BE DEVELOPED AND METHODS FOR PRODUCTION AND DEVELOPMENT,' SHALL INCLUDE PRELIMINARY DRAWINGS AND SPECIFICATIONS,' AND SHALL OTHERWISE BE CONS ISTANT WITH THE APPROVED TRIBAL HOUSING PLAN. THE SECRETARY SHALL APPROVE AN APPLICATION FOR ASSISTANCE UNDER THIS TITLE ON A PROJECT BY PROJECT BASIS AND WHERE TOTAL CONSTRUCTION COSTS ARE DETERMINED BY AVERAGE AREA AND REGIONAL CONSTRUCTION COST STANDARDS FOR SIMILAR HOUSING UNIT CONSTRUCTION. COMU~1ENTS THE FINAL SENTENCE OF THIS SECTION AS DRAFTED IN THE SUBSTITUTE SUGGESTS THE INCONSISTANCY OF PROVIDING "SAFE AND DECENT HOUSING FOR INDIAN TRIBES~ WITHOUT COMUIITIING NOR ALLOCATING REALISTIC DOLLARS FOR ALL-RELATED CONSTRUCTION COSTS. IT IS THE INTENTION OF THE NORTHERN CHEYENNE TRIBAL COUNCIL TO ENCOURAGE THE TRIBAL HOUSING AGENT TO CONSTRUCT QUAILTY HOUSING ON THE RESERVATION AS TO ENSURE LONG-TERM DURABILITY, SUITABILITY, AND LOW MAINTENANCE REOUTREMENTS FOR THE INDIVIDUAL OR FAMILY HOME BUYER. AND GIVEN THE FACT THAT HOME CONSTRUCTION COSTS IN SOUTHEASTERN MONTANA ARE GENERALLY HIGH, SUCH CONSTRUCTION COST CEILINGS ARE ABSURD. IF A SPECIFIC CONSTRUCTION COSTS/REPAYMENT FORt4JLA WAS DEVELOPED FOR THE PURPOSES OF LEGISLATING CONSTRUCTION COST CEILINGS IN THIS SECTION AND TITLE THE LOGIC LACKS STATISTICAL SIGNIFICANCE OR FORTFRIGIr EVIDENCE FOR SUCH LANGUAGE.* PAGENO="0426" 420 TESTIMONY BY ALLEN R(Y?LAND PAGE 5. fAGES 7-8~ SECTION Z(J3~(B) APPLICATIONS FOR FUNDING SHALL BE EVALUATED AND APPROVED, BASED UPON, BUT NOT LIMITED TO, THE FOLL(Y.~IING CRITERIA -- (1) A DETERMINATION OF 1}E ADMINISTRATIVE, MANAGEMENT, AND ACCOUNTING CAPABILITIES OF THE TRIBE OR THE TRIBAL HOUSING AGENT TO IMPLEMENT THE PROPOSED HOUSING PROJECT) (2) A DETERMINATION OF THE PERCENTAGE OF RESERVATION HOUSING UNITS IN SUBSTANDARD CONDITION) (3) THE HOUSING NEEDS OF SUCH TRIBES AS CONTAINED IN THE ANNUAL HOUSING INVENTORY REQUIRED BY SECTION LbS OF THIS ACT) AND (4) THE SECRETARY DETERMINES REASONABLE PROSPECTS FOP REPAYMENT. ?AGE 8~ SECTION 203JC) THE APPLICATION SHALL INCLUDE A TRIBAL ORDINANCE OR OTHER EVIDENCE OF ACTION FROM THE TRIBAL GOVERNING BODY DESIGNATING OR CORPORATELY ESTABLISHING A TRIBAL HOUSING AGENT (HEREINAFmR REFERRED TO AS ThE AGENT) WHICH SHALL BE RESPONSIBLE FOR MANAGING, IMPLEMENTING, AND ENFORCING THE PROJECT AGREEMENT. RAGES 8-9, SECTION 205. (A) THE PROJECT AGREEMENT SHALL SET FORTH THE ADMINISTRATIVE MANAGEMENT, AND JUDICIAL AUTHORITIES, FORUMS, PROCEJ)JRES, REMEDIES, AND SANCTIONS THAT THE TRIBE OR TRIBAL HOUSING AGENT WILL EMPLOY TO INSURE COLLECTIONS OF MONTI-LY PAYMENTS AND DEPOSIT OF RESIDUAL RECEIPTS AS REQUIRED BY SECTION 211 OF ThIS TITLE. IT SHALL ALSO CONTAIN PROVISIONS THAT THE TRIBE SPECIFICALLY AGREE THAT: (1) IT SHALL REQUIRE ANY INDIAN INDIVIDUAL OR FAMILY EXECUTING A HOUSING ASSISTANCE CONTRACT TO AUTHORIZE THE SECRETARY AT THE REQUEST OF THE AGENT, TO ATTACH UNOBLIGATED TRUST FUNDS OF THE INDIVIDUAL AND ADULT MEMBERS OF SUCH FAMILY FOR A FAILURE TO MEET THE OBLIGATIONS INCURRED IN SUCH CONTRACT) (2) IT SHALL REQUIRE THE TRIBAL HOUSING AGENT TO ESTABLISH AND MAINTAIN AN INTEREST-BEARING "DEFAULT" CONTINGENCY FUND, AT THE HOME BUYERS' EXPENSE, PAGENO="0427" 4~~1 TESTIMONY BY ALLEN ROWLAND PAGE 6. WHICH SHALL BE SUBJECT TO ATTACHMENT FOR FAILURE OF THE HOUSING AGENT TO MEET THE REQUIREMENTS OF SECTION 233. (B) TRIBAL REPAYMENT AND COLLECTION OPDINANCES SHALL, AT MINIMUM, PROVIDE THE DESIGNATED TRIBAL HOUSING AGENT AN It~?1EDIATE PROSECUTION AND COLLECTION PROCEDURE FROM THOSE ADULT TRIBAL MEMBERS FAILING TO MEET THE OBLIGATIONS INCURRED AND IMPOSED IN T'-~E HOUSING ASSISTANCE CONTRACT. (C) ASSETS OF THE TRIBAL HOUSING AGENT SHALL BE SUBJECT TO LIQUIDATION ONLY WHEN A (1) TRIBAL HOUSING AGENT HAS FAILED TO MEET THE FINANCIAL OBLIGATIONS IMPOSED UNDER SECTION 211 OF THIS TITLE~ (2) THE SECRETARY HAS REASONABLY EXHAUSTED ALL OTHER AVAILABLE REMEDIES TO SATISFY THE DEFAULTJ - AND (3) THE SECRETARY HAS MADE A SPECIFIC FINDING, BASED ON VALID EVIDENCE AND FACT, THAT THE TRIBAL HOUSING AGENT HAS NOT ACTED IN GOOD FAITH IN CARRYINGOUT ThE REQUIREMENTS IN SUB SECTION (A) OF THIS SECTION. THE TRIBE SHALL BE GRANTED FIRST PRIORITY TO PURCHASE THE AGENTS' ASSETS IF DISSOL'IE OF THE AGENT IF REQUIRED AS REMEDY FOR DEFAULT. ~b) PRIOR TO THE ATTACI-P'lENT OF ANY INDIVIDUAL TRUST FUNDS AS PROVIDED IN THIS SECTION, THE SECRETARY AND AUTHORIZED HOUSING AGENT SHALL PROVIDE THE RESPONSIBLE INDIAN ADULT WITH WRITTEN NOTICE OF INTENT, WITHIN SIXTY DAYS OF SUCH NOTICE, THE INDIAN INDIVIDUAL OR FAMILY SHALL BE ENTITLED TO~Ct) PAY THE AMOUNT IN DEFAULTJ (2) NEGOTIATE A REPAYMENT SCHED'JLE SATISFACTORY TO THE SECRETARY AND TRIBAL HOUSING AGENT,' OR (3) INSTITUTE SUCH ADMINISTRATIVE APPEALS OR JUDICIAL ACTIONS AS MUST BE AUTHORIZED. CO1~?1ENTS AS PREVIOUSLY DISCUSSED IN SECTION 3.(1~) THE NORTHERN CHEYENNE TRIBE ENVISIONS DELEGATING A BUSINESS OR CORPORATE AUTHORITY TO ITS SANCTIONED HOUSING AGENT. HENCEFORTH, ASSEST AND LIABILITIES SHALL BE ASSIJIED BY THE CORPORATE FUNCTION. IT MUST, ALSO, BE NOTED THAT THE NORTHERN CHEYENNE TRIBAL COUNCIL IS CONSTITUTIONALLY PROHIBITED FROM THE PROPOSED ACTION OF ATTACHING TRIBAL TRUST FUNDS, AS IS THE CASE WITH TRUST PROPORTIES. THE NORTHERN CHEYENNE PAGENO="0428" 422 TESTIMONY BY ALLEN R(Y~tAND PAGE 7. TRIBAL COUNCIL AND PRESIDENT WILL NOT SUPPORT THE PROPOSAL TO ATTACH TRIBAL TRUST FUNDS, AS IS THE CASE AND PRINCIPAL IN SUGGESTING A1TACEMENT TO TRUST PROPERTIES. PAGE 13~ SECTION 210(4) AN AMOUNT DEENED REASONABLE BY THE SECRETARY, TRIBE, AND TRIBAL HOUSING AGENT AS A CONTINGENCY RESERVE FOR DEFAULTS SUCH AMOUNTS SHALL BE DEPOSITED BY TEE AGENT INTO AN INTEREST-BEARING ACCOUNT AS A RESERVE FOR DEFAULT WHICH MAY BE USED, PRINCIPAL AND INTEREST, AS PROVIDED IN SECTION 205 OF THIS TITLE. ATTHE END OF THE CONTRACT PERIOD THE AMOUNT REMAINING IN DEFAULT RESERVE ACCOUNT TO THE CREDIT OF TEE FAMILY, EXCLUDING ANY ACCRUED INTEREST, SHALL BECO~'E TEE PROPERTY OF THE FAMILY. CO('tENTS REFER TO SECTION 205 OF THIS TITLE. PAGE 14~ SECTION 21L(C1 RESIDUAL RECEIPTS D'JE TEE FUND FROM AN AGENT SHALL NOT FALL BELOM 90 PER CENTUN OF THE AMOUNT WE BASED UPON AN AMOUNT ESTABLISHED BY THE ANNUAL INDEPENDENT AUDIT AS REQUIRED BY SECTION 211 (B). WITHIN TEN DAYS AFTER A DETERMINATION OF A DEFAULT BY AN AGENT IN ITS QUARTERLY PAYMENT OF RESIWAL RECEIPTS TO THE RiND, TEE SECRETARY SHALL NOTIFY THE TRIBE AND AGENT IN WRITING OF SUCH DETERMINATION. THE AGENT SHALL HAVE FO DAYS WITHIN WHICH TO SATISFY THE DEFAULT. UPON FAILURE OF THE AGENT TO DO SO, THE SECRETARY MAY - (3) AUACH APPROPRIATE INDIVIDUAL TRUST FUNDS AND CONTINGENCY RESERVES AS PROVIDED AND AUTHORIZED IN SECTION 205 OF THIS TITLE: PROVIDED THAT THE SECRETARY MAY EXERCISE HIS/HER AUTHORITY ONLY AFTER ALL OTHER REASONABLE ACTION HAS BEEN EXHAUSTED. C~+ENTS REFER TO SECTION 2(15 OF THIS TITLE. PAGE IL SECTION 220 (B TEE TRIBAL HOUSING AGENT SHALL REQUIRE MONThLY RENTAL PAYMENTS FROM ELIGIBLE INDIAN FAMILIES AS DETERMINED BY SECTION 209 EXCEPT THAT TEE MAXIIIII MONTELY PAYMENT SHALL BE AN AMOUNT A!~REED UPON BY THE SECRETARY AND THE AGENTJ PAGENO="0429" 423 TESTIMONY BY ALLEN RC1r~lLAND PAGE 8. PAGE 17~ SECTION 220 (2) A MINIMUM MONTHLY RENTAL PAYMENT SHALL BE ESTABLISHED AS PROVIDED AND THE TRIBAL HOUSING AGENT SHALL BE RESPONSIBLE FOR THE PAYMENT OF THE RESIDUAL RECEIPTS AS PROVIDED IN SECTION 233..; PAGE 17~ SECTION 220. (3) THE AGENT SHALL BE RESPONSIBLE FOR THE PAYMENT OF UTILITIES AND MAINTENANCE COSTS) PAGE2k~ SECTION L102 (A) THE SECRETARY IS AUTHORIZED TO PROVIDE TECI+IICAL ASSISTANCE TO INDIAN TRIBES TO ASSIST AND FINANCE THEM IN DEVELOPING TRIBAL HOUSING PLANS, PREPARING AND SUBMITTING APPLICATIONS FOR FINANCING, IMPLEMENTING HOUSING PROGRAMS FUNDED UNDER THIS ACt AND CONTRACTING WITH TRIBES OR TRIBAL HOUSING AGENTS TO CONDUCT THOSE IMPLEMENTATION FUNCTIONS OF THE ACT WHICH MAY OTHERWISE BE DELEGATED TO THE BUREAU OF INDIAN AFFIARS. PAGE 25~ SECTIOI~L4[~ THE SECRETARY SHALL CONDUCT AN ANNUAL HOUSING INVENTORY OF CURRENT INDIAN HOUSING NEEDS AND CONDITIONS TO BE USED AS A BASIS FOR DETERMINING HOUSING ASSISTANCE NEEDS FOR THE PURPOSES OF SECTIONS 212 AND 203 OF THIS ACT. THE SECRETARY SHALL SUBMIT COPIES OF SUCH INVENTORY TO THE CONGRESS. PAGE 25.. SECTION LIC~. STRIKE THIS ENTIRE SECTION FROM THE ACT. I AM GRATEFUL FOR THE OPPORTUNITY TO SUGGEST LANGUAGE REVISIONS IN TEE ABOVE CITED ACT, RESPECTFULLY SUBMITTED BY ~. ALLEN RoWLAND CC: NO. CHEY. TRIBAL COUNCIL rbRTHERN CHEYENNE TRIBAL PRESIDENT REP, 1~bRRIS L~ SEN. Joi+i MELCHER SEN. MAx RAUCUS REP. RON rARLENEE Re'. PAT ~ILLIAMS CALVIN !4ILSON~ ~ CHAIRMAN JOE I'MERICAN HORSE P4~S. VIRGINIA TOEWS PAGENO="0430" 424 STATEMENT OF THE NEZ PERCE INDIAN TRIBE BEFORE THE HOUSE INTERIOR AND INSULAR AFFAIRS COMMITTEE - ON THE INDIAN HOUSING ACT OF 1982 Mr. Chairman and members of the Committee, I an David Holt, a member of the Nez Perce Tribal Executive Committee. I want to thank you for the opportunity to submit written testimony in con- nection with H.R. 5988, a bill "to provide for an Indian Housing Program for construction and financing of housing for Indians, and for other purposes." We heartily commend the boldness and dedication with which this Committee has worked to increase the availability of decent housing to Indian people. We must oppose the proposed Indian Housing Act of 1982 at this time, however, on several grounds. First, we must object to the extent to which our tribe and many other tribes in the northwestern United States were not consulted or communicated with in connection with the development of this legislation. We feel that a field hearing on the legislation should have been held in the northwest region which would have afforded our tribe an earlier opportunity to comment on the bill at little cost to the tribe. Second, we object to substantive provisions of the~ bill, in particular, which we feel impact adversely on the authority of tribal government and thereby offend the spirit and intent of Public Law 93- 638, the Indian Self-Determination and Education Assistance Act. PAGENO="0431" 425 Statement of Nez Perce Tribe Page Two We urge the complete removal, for example, of section 205 of the legis- lation, which would require a housing contract to contain a provision in which the tribe agrees to allow its trust funds to be subject to attach- ment in the event the tribal housing authority or Indian family fails to meet the financial obligations agreed to by the authority in the project agreement, or agreed to by the family in its housing contract. In like manner, we urge the deletion of language in Section 211(c) of the bill which would authorize the Secretary of the Interior to declare a tribe ineligible to receive any further housing assistance or to attach tribal or individual trust funds to satisfy debts arising from a shortfall in the residual receipts account when funds in the account due from the tribal agency to the Secretary fall below 90 percent of the amount due at any time. We think both of the foregoing provisions violate the trust res- ponsibility of the federal government to Indian tribes by authorizing the Secretary of the Interior to act contrary to the traditional fiduciary relationship which exists between his office and tribal governments. We feel that the attachment of tribal or individual trust funds should not be allowed without the consent of the tribal government or individuals affected. In short, we think that to legislate otherwise would be a clear violation of the sovereignty and political integrity of tribal governments. Finally, we must oppose the legislation on the ground that it does not provide sufficient funding to the proposed Indian Housing Program in 18-934 O-83--28 PAGENO="0432" 426 Statement of Nez Perce Tribe Page Three F.Y. 1983 to adequately meet Indian housing needs. We understand that the House Interior Committee has recommended to the House Budget Committee a level of funding of $65,000,000 for the Indian Housing Assistance Fund and approximately $20,000,000 for the Indian Housing Improvement Program in F.Y. 1983. We think that the levels of appro- priations for these programs should equal, if not exceed, the original funding levels proposed in this legislation. As this Committee may well know, there is every indication that Indian housing needs will increase and not diminish in the coming years. The Indian population has doubLed in the last decade, and because the median age of Indians is 20.4 years, there is a sharp increase in the formation of Indian families. In order to meet this need, Bureau of Indian Affairs statistics suggest that annual starts under Indian housing programs would have to increase by 48 percent to prevent any further increase in the number of substandard or otherwise overcrowded Indian housing units. In view of the fact that funding for the Indian housing program in F.Y. 1981 was $471,529,000 we do not think that the recommended level of appropriation of $85,000,000 in F.Y. 1983 for the program cam posi- tively mitigate the growth of inadequate housing on reservations. The level of funding for the new program would have to be increased four- fold from the current recommended level in order to have a positive and PAGENO="0433" 427 Statement of Nez Perce Tribe Page Four decisive impact on poor living conditions on many reservations. Mr. Chairman, we appreciate the diligence and compassion which this Committee has demonstrated in connection with their efforts to improve critical Indian housing programs on many reservations today. We feel we must stress, however, the need for more extensive consultation, dis- cussion and planning in addressing these critical housing needs. We would like to encourage the Committee to continue in their efforts, to re- solve the problem of inadequate Indian housing and we would be glad to assist this Committee in developing legislation which provides satisfactory mechanisms through which the urgent housing needs of Indian people can be met. PAGENO="0434" 428 NATIONAL CO NOR ESS OF AMERICAN MEMORANDUM INDlANS~ Date:i~iarth29, To: NCAI Executive Ccxrrnittee From: Ronald P. Andrade, Executive DIrector /~- Subject: Analysis of Interior Cannittee' s Indian Housing Bill The folloeing is an analysis of the sthject bill: Section 3(5)--This section does not make specific rrention of Alaska Natives as defined by ANCSA. Section 3(lO)--The lar~ provides for a Tribal Housing Agency. This Act does not provide for the Tribe to utilize PL 93-638 to contract the housing fonda. The ability to contract would end many of the problerar suffered by Tribes. Section 3(ll)--This segrent only speaks of the federally-reco~-iized Tribes, but does not tienticri ANCSA. TTFLE I: INDIAN HOUSING IMPROVE2~~ FUND Section lOl(b)--The Secretary is authorized to make grants directly to "individuals". This would ixidermine the Self-Determination Act. ant should be made only by the Tribe or through the housing authority established by the Tribe. This could also begin a nes political patronage system. This would alloe Area Directors to make direct grants aroind the wishes of the Tribal Coincil. Section 101(c) (3)--Does not include application of Indian Preferenoe. Section 101(c) (4)--Is not taken into consideration ret adninistrative costs inder Title IV, Section 401(c). Also couldn't Tribe 638 this arid save additional BIA adrrdnistrative expenses. Section 104--MDst recent draft of bill includes provision that Tribe has first right of refusal on sale of house built tnder this Title on tribal land. Should mare than one or two houses be put t~ for sale at the sara tian, what happens if the Tribe doesn't have enough fonda to purchase the houses. TI11E II: INDIAN HOUSING FINANCE Ft~D Section 203(c)--This section appears to mandate that there shall be a separate housing authorIty. This should be totally at the option of the Tribe especially in light of the fact that this Act allc~s ñ PAGENO="0435" 429 Page 2 the encurrberipg of Trust funds. To place this authority in the hands of a housing authority would appear to be a dangerous - precedent. Also, Act does not state that should the Tribe wish to operate program itself, a waiver of sovereigo iiirranity from suit would be involved. Section 205--Brings t~ the sai~ concerns as in Section 203. Section 205(c)--The 30 days written notice is too short a tinE. If a loss of trust funds is to occur, then a longer period of tiam, 90 days, should be included. * Section 209(b)--This highlights the concern with the housing agency. Conceiv- ably, the "Agency" could becoew the largest landowner on the reservation. Section 209(c)--The land could be re-acquired by the Tribe at "fair market value." This would anan saieone would have to establish the * market value and the. Tribe would have to accept it. Section 2ll(c)--See cousants on Section 205(c). * Section 215--Does not require or stress application of Indian Preference as stated under PL 93-638, Section 7(b), for request for bids arinouncerrents, etc. TITLE III: INDThN HOUSING LOAN GUARANTY FUND Section 309(a) (l)--Act does not specifically include Tribal courts under "court of coripetent jurisdiction" in the event of foreclosure proceedings. Not even language stating the utilization of an appropriate Tribal forum for the resolution of a foreclosure before going outside the Tribe. TITlE IV: MISCELLANEOUS PROVISIONS Section 40l(c)--Allcws for housing nnnies to be used for program administration thereby reducing the arrount of funds available for services. Our study of the draft did not reveal any provision under the Act for the use of 638 contracting by Tribes for housing nor did we see sovereige inmunity addressed-- two areas of extrerre ixrportance to Tribes and Tribal self-determination. A copy of the draft bill was sent to all the nerrrbers of the Executive Corrnnittee. Upon review of this n~no, please contact Robin Shield, of urj staff, with your corarent or concerns inirediately. PAGENO="0436" NATIONAL CO NOR ES S OF AMERICAN INDIANS EXECUTIVE DIRECTOR R~&d P. A~d~ade L~ise~Dieg~.~ EXECUTIVE COMMITTEE PRESIDENT J~ D~ L~ C~z FIRST VICEPRESIDENT R&ph Ek~,k~ RECORDING SECRETARY TREASURER H~Uis 0. St~bA~, J~. AREA VICE PRESIDENTS ABERDEEN AREA Ch,y~s,~ Ri~ ALBUQUERQUE AREA ~ SA,th~ Ut~ ANADARKO AREA BILLINGS AREA E.W.(BIII) MoAg,~ S~llshKo~f~,~i JUNEAU AREA Ctiff~d A. BI~k MINNEAPOLIS AREA MUSKOGEE AREA eeyWh,~ NORTHEASTERN AREA ~ PHOENIX AREA PORTLAND AREA SACRAMENTO AREA SOUTHEASTERN AREA Eddi~ Thilis 430 202 E STREET, N.E., WASHINGTON, D.C. 20002 (202) 546.1168 March 31, 1982 Mr. Pranklin Ducheneaux Special Coizisel on Indian Affairs Caasittee on Interior and Insular Affairs 422 House Annex I C and New Jersey Averroe, S .E. Washington, D.C. 20515 Dear Mr. Th.icheneauz: The fo1l~ing are ccxiirents and concerns of NCAI with regard to the draft of the "Indian Housing Act of 1982". NCAI will be continuing to review the draft and submitting any additional crsrmants during the coming weeks: Section 3(5)--This section does not make specific nemtion of Alaska Natives as defined by ANCSA. Section 3(10)--The lew provides for a Tribal Housing Agency. This Act does not provide for the Tribe to utilize FL 93-638 to contract the housing funds. The ability to contract weuld end many of the problena suffered by Tribes. Section 3(ll)--This segnant only speaks of the federally- recogeized Tribes, but does not nantion ANCSA. T~iIE I: INDIAN H0USI~ ThTR0V~1ENT ~JMD Section lOl(b)--The Secretary is authorized to make grants directly to "individuals". This weuld inder- urine the Self-Determination Act. Any graiL should be made only by the Tribe or through the housing authority established by the Tribe. This could also begin a new political patronage system. This would. allew Area Directors to make direct grants aroirid the wishes of the Tribal Council. Section loljc)(3)--Dees not include application of Indian Preference. Section l0l(c)(4)--Is not taken into co~isideration re: adainistrative costs under Title IV, Section 401(c). Also couldn't Tribe 638 this and save additional BIA ac¾ninistrative expenses. PAGENO="0437" 431 Letter to Franklin Ducheneaux March 31, 1982 Page 1t~o Section 104--Most recent ~1raft of bill includes provision that Tribe has first right of refusal on sale of house built under this Title on tribal land. Should mare than one or two houses be put up for sale at the same tins, what happens if the Tribe doesn't have enough funds to purchase the houses. TITLE II: INDIAN H0L~ING FINANCE ~JND Section 203(c)--This section appears to mandate that there shall be a separate housing authority. This should be totally at the option of the Tribe especially in light of the fact that the Act allows the en- cithering of Trust funds. To place this authority in the hands of a housing authority woul~appear to be a dangerous precedent. Also, Act does not state that should the Tribe wish to operate program itself, * a waiver of sovereige imnunity from suit would be involved. Section 205--Brings up the same concerns as in Section 203. Section 205(c)--The 30 days written notice is too short a time. If a loss of trust funds is to occur, then a longer period of tine, 90 days, should be included. Section 209~--This highlights the concern with the housing agency. Conceivably, the "Agency" could become the largest landowner on the reservation. Section 209(c)--The land could be re-acquired by the Tribe at "fair mar- hat value." This would mean someone would have to establish the market value and the Tribe would have to accept it. Section 21l(c)--See conirents on Section 205(c). Section 215--Does not require or stree application of Indian Preference as stated under PL 93-638, Section 7(b), for request for bids announcements, etc. TITLE III: INDIAN HOUSING LOAN GUARANTY FuND Section 309(a) (l)--Act does not specifically include Tribal courts under "court of conpetent jurisdiction" in the event of foreclosure proceedings. Not even language stating the utilization of an appropriate Tribal forusi for the resolution of a foreclosure before going outside the Tribe. TITLE IV: MtSCELLANEOUS PROVISIONS Section 401 c --Allows for housing inunies to be used for program adminis- tration there y reducing the aninunt of funds available for services. Our study of the draft did not reveal any provision under the Act for the use of 638 contracting by Tribes for housing nor did we see sovereigo irimunity addressed--two areas of extreme inportant to Tribes and Tribal self-determination. We look forward to ccxrrmriicating further on this matter with you. Sincerely, Robin R. Shield Administrator RRS :ror PAGENO="0438" EXECUTIVE DIRECTOR s~es P. A~d~d~ L~ispoDi,~~~ EXECUTIVE COMMITTEE Mr. Franklin Ducheneaux Special Counsel on Indian Affairs Committee on Interior and Insular Affairs 422 House Annex 1 C and New Jersey Avenue, S.E. Washington, D. C. 20515 Dear Mr. Ducheneaux: As you know, NCAI was scheduled to present testimony on H.R. 5988 at the Committees hearing today, yet we did not do so. Yesterday, Robin Shield informed Ms. Brokenrope that we did not want it misconstrued that NCAI declined to testify. Rather, we feel that right now it is necessary to withhold any testimony until all members of NCAI's Executive Committee have been heard from. Since we understand that additional hearings in Washington, D. C. are planned, we request that NCAI be invited to present testimony on H.R. 5988 at that time. ~s~eetful 1y~ /V~~ /~4u,t ~`~`~" -~ / 1~ona1d P. Andrade Executive Director NATIONAL C ONOR ES S OF AMERICAN INDIANS 432 202 E STREET, N.E., WASHINGTON, D.C. 20002 (202) 546~1168 April 1, 1982 PRESIDENT FIRST VICEPRESIDENT R~Iph Eh~sk~ RECORDING SECRETARY TREASURER AREA VICE PRESIDENTS ABERDEEN AREA ALBUQUERQUE AREA S~flh~'~ Ut& ANADARKO AREA BILLINGS AREA EW.(Rw M~ig~~ JUNEAU AREA Ckff~d & B5~k MINNEAPOLIS AREA MUSKOGEE AREA NORTHEASTERN AREA PHOENIX AREA C~J~-~d~ Ri~p,Thdth,, T,ib~~ PORTLAND AREA SACRAMENTO AREA SOUTHEASTERN AREA Eddi~ Thilis cc: NCAI Executive Committee PAGENO="0439" 433 N7~rIONAL cx~c~~ss OF AMERICAN INDIANS 39TH ANNUAL ~~VENTION NCAI HOUSING CCX4MIT~EE `S POSITION PAPER ON HOUSING The Cmrrnittee met to review and discuss several ioportant housing issues to develop and recamnend position statements and types of action that it felt the National Congress of American Indians (NCAI) should take on them. Detailed and lengthy discussions were held on fourteen issues, two of which are considered controversial. The Carrnittee s findings and reccimendations are: Department of Housing and Urban Develo~itent (D-HUD) Indian Housing Program 1. The ConTnittee recasnends that the National Congress of American Indians continue to adovcate for funding for the Department of Housing and Urban Development's Indian Housing Program at the level of 4,000 units per year. 2. The Camnittee found that it is not always feasible to build 3-, 4- and 5-bedroan units because of higher cost, the demand for smaller 1- and 2-bedroan units by single individuals and couples, and the difficulty of heating the entire house which often contributes to high heating costa. The Ccrrrnittee recaTroends that the National Congress of American Indians advocate for Tribes to be given greater flexibility by the Department of Housing and Urban Develojsnent in* determining unit sizes that meet the needs of their rnerribers. The Ccesnittee further recarmends that the National Congress of American Indians seek an amendment to current Department regulations to provide Tribes with this flexibility. 3. The Cceioittee finds that the Department of Housing and Urban Developient's policy to restrict or prohibit amenities in housing projects, i.e., garages, carports, basements, etc., is unnecessarily restrictive. It causes undue hardships on those living in areas where such amenities are considered essential. The Camnittee recamrends that the National Congress of American Indians advocate for sore flexibility by the Departeent of Housing and Urban Developtent in its application of such restrictions and that it allow local Indian Housing Authorities to develop cost containment designs which could include necessary amenities within prototype. The Camiittee further recaanends that the Departnent evaluate carefully each Indian Housing Authority's reguest for inclusion of amenities based on special regional needs and allow local Indian Housing Authorities to design units that could include necessary and cost-effective amenities that are within the prototype. The CcTrmittee also recaanends that the National Congress of American Indians work toward amendment of the Department's policy. 4. The CamTittee finds that the increase in low-income rental fees fran 25% to 30% and the reduction of family deductions and exenptions as expressed in the Department of Housing and Urban Development's PAGENO="0440" 434 regulations (24 CFR 805 and 860) will inflict unnecessary hardships on Indians desiring to live on trust and reservation lands - Because of the depressed Tribal and national econcznies coupled with cuthacks in many programs en loying Tribal rrenbers locally, the Carrnittee feels it is an inooptrtune time to increase low-income housing rents. The CaiTnittee also finds that such an increase discourages families in their efforts to irtprove their conditions by robbing thee of needed extra incare. The Ccsrrnittee recamends that the National Congress of Arrerican Indians oppose the increase of the rental rats to 30% of the adjusted low- incnore family income and to support the maintenance of the current criteria of 25% of income for rental purposes. 5. The Ccirrnittee is aware that the Departrrent of Housing and Urban Developaent is studying various alternatives to its Indian Housing Program. The Ccnrnittee is very concerned that the Department is considering such alternatives without consulting with the Tribes and Indian Housing Authorities. The Ccernittee therefore reccirrrends that upon return fran this convention, the National Congress of American Indians obtain information about alternatives the Department is considering and send the information to the Tribal leadership, the Indian Housing Authority Associations and individusl Indian Housing Authorities so that they nay also study the proposed alternatives, and that the opportunity be given then to careent on, oppose or support thee. Rural Housing Block Grant The Carrnittee understands that the Rural Housing Block Grant legislation, as proposed by Senator Harrision Schmitt and contained in S. 2607, the Housing and Carinunity Develognrent Amendments of 1982, as presently written, contains no provisions for direct funding of Tribal governments. Instead, Indians living on reservations cost apply to the state to receive assistance under this legisla- tion. The Carinittee feels that the lack of direct funding to the Tribes violates the goverrsnent-to-government relationship of Tribes with the federal government. The Ccxrrnittee also feels that the negative relationship between Tribes and states will prohibit Tribes £ ran receiving such funds fran the states. The Carrnittee recarimends that the National Congress of American Indiana oppose the funding of Tribes through the states under block grants and the transfer-in fufl or in part-of the responsibility of the federal goverrsnent to finance Indian housing construction fran it to the states. The Carinittee further recarrnends that the National Congress of American Indians continue seeking to add language to the legislation that ~ould allow Tribes to be funded directly instead of through the states. This recarirendation reaffirms the position taken by the Carrnittee and the National Congress of American Indians at its 38th Annusl Convention. Indian Preference The Ccirrnittee finds that there are differing opinions among Tribes on the benefits of irrplenenting Indian Preference in the awarding of contracts for PAGENO="0441" 435 housing construction, rehabilitation or repairs as well as hiring and training by contractors and subcontractors. The Carrnittee also finds that the Administra- tion, through the Department of Housing and Urban Developnent, seeks to eliminate, weaken or avoid irrplamenting Indian Preference by citing it as a major contributing factor to high costs in the developoent of Indian housing. The CcxTrnittee recognizes the ioportance of Indian Preference as a tool to achieve greater econcinic and eoplo~nent opportunities for Indians and Alaska Natives within both federally and non-federally funded programs. The Camnittee therefore recorrrnends that the National Congress of American Indians oppose any att~r~t by the Department to avoid, weaken, distort or eliminate the inpiementation of Indian Preference in housing construction contract awards, hiring and training by contractors and subcontractors on Indian projects, and Department hiring for Indian and Alaska Native programs. The Caunittee further recarrnends that iJT~lementation of Indian Preference in the awarding of contracts, etc., at the Tribal level ought to be a perogative of the Tribes since they know best about the availability of Indian contractors and subcontractors in their areas. Davis-Bacon Pequirerrents The Ccnrnittee, after lengthy and in-depth discussion, finds that the Davis- Bacon law does not set prevailing wage rates; that the Deparbrent of Labor is charged with that responsibility and has a process to establish prevailing wage rates. The Ccirrnittee finds that there is a difference of opinion airong Indian Housing Authorities about hcM much Davis-Bacon increases the development cost of an Indian housing project. The Ccrrmittee further finds that while Davis- Bacon wage rates are considered by sane Indian Housing Authorities to be a very real contributor to high Indian housing developmnent costs, other Indian Housing Authorities do not find this to be the case in their areas. The Carmittee further finds that any atteipt by the National Congress of American Indians to amend the Davis-Bacon Act to exenpt Tribes would be futile given the strong support of the law by the unions. The Cairiittee also finds that there is an unequal application of wage rates by the Department of Labor on Indian Tribes. The Cciunittee does feel, however, that Tribes should be allowed to decide* whether or not to apply Davis-Bacon wage rates on their reservations and that they be allowed to set their own wage rates if they so choose. The Carniittee therefore recarrrends that the National Congress of American Indians work to amend the process which establishes the prevailing wage rates with the objective of gaining a rrore equitable and workable application of wage rates for Indian areas. The Ccsmnittee further recczmnends that the National Congress of American Indians seek out a way for Tribes to formally contest or appeal the application of the prevailing rates prior to the letting of contracts for bid if the rates are determined by the Tribes to be inordinately high. In addition, the Carnnittee recaunends that, should the Davis-Bacon prevailing w~ge rate be extremely high and cause construction costs to over-run, the Tribe should have the option of negotiating the prevailing rate. State Financing of Indian Housing The Camiittee is concerned that the Department of Housing and Urban Develop- ment is considering state financing of housing construction on Indian reservations PAGENO="0442" 436 through state financing agencies. The Ca~mittae is aware that at least one Tribe has elected to obtain financing for housing construction on its reserva- tion through this method, and the Carrnittee feels that individual Tribes have the right and authority to do this. The Camnittee feels, ha~ever, that the Deparninent should not seriously consider this method of financing as a viable option for Tribes nor should go forward with any plans for encouraging or mandating such a financing method as a policy for funding Indian housing. Given that the Departhant of Housing and Urban Development is considering state financing of Indian housing construction through state financing agencies as an alternative to federal funding, the Camrtittee very strongly recamnends that the National Congress of American Indians oppose any attanpt by the Depart- ment to mandate this method in its Indian Housing Prcgram. The Carmittee further recarmsnds that the National Congress of American Indians oppose the transfer--in full or in part--of the responsibility of the federal government to finance Indian housing to the states. The Indian Housing Act of 1982 (ILR. 5988 and S. 2847) 1. The Caninittee finds that both versions of the Indian Housing Act of 1982 do not address giving Tribes greater flexibility in choosing methods of construction. The Ccrrrnittee finds that many Tribes have successfully contracted programs fran the Bureau of Indian Affairs under the 638 provisions. The Carrnittee is also aware that there are Tribes who would prefer .to use the force account method of construction for their Indian housing projects. The Cairnittee therefore reamrmends that the National Congress of American Indians advocate for language in both H.R. 5988 and S. 2847 that would provide Tribes with the flexibility to choose their methods or construction with specific attention given to the unigue needs, i.e., cultural and climatic conditions, of each region. 2. The Carrnittee is concerned that Title I, section 101, of H.R. 5988 and S. 2847 authorizes the Secretary of the Interior to given grants directly to individuals and to contract directly with private construction firms. The Carrnittee feels that such authority allais the Secretary to bypass Tribal goverrments instead of going through then as is the case under the present Housing Lrnrovenant Program. Such authority would go against the spirit and intent of self-determination and would~ undermine the Tribes' authority to handle their o~n internal af fairs with resoect to housing assistance. The Ccrrrnittee recarmends that the National Congress of American Indians support an amendment to Title I which will not permit the Secretary to bypass Tribal goverrirents and which will flatly state that all housing assistance and contracts funded under the Act shall go through Tribal governments. 3. The Ccsrrnittee finds that both H.R. 5988 and S. 2847 establish an Office of Indian Housing Programs within the Bureau of Indian Affairs, and creates the position of Director of Indian Housing Programs to supervise the office and administer the programs. The Carmittee further finds that the Director shall be under the irrinediate suoervision of the Assistant Secretary for PAGENO="0443" 437 Indian Affairs. The Ccimdttee feels that the Director s position will, should the Indian Housing Act of 1982 become law, carry with it a high degree of authority and responsibility in order to administer the programs efficiently and effectively as they are intended to be. The Ccsuiittee recarmends that the National Congress of American Indians support the selection of a qualified American Indian or Alaska Native to be Director of the Office of Indian Housing Programs and the selection of qualified American Indians arid Alaska Natives to staff the new office. The Carrnittee recarrrends that the National Congress of American Indians call on the Bureau of Indian Affairs to irmmlamnent Section 12 of the Indian Reorganization Act when the time comes for selecting the Director and program staff. 4. The Ccrrrnittee estimates if and when the Indian Housing Act of 1982 becomes law that there will be a lag period of amproximately two years before Tribes will see any housing constructed on their reservations under the Act's programs. In addition, the Carrnittee is fearful that once the bill becrres law the Department of Housing and Urban Development may decide to terminate all housing assistance it provides to Tribes. The Ccirrnittee therefore recommnends that the National Congress of American Indians request that the Administration irrmose a 2-year transition period so that Tribes will not be placed in danger of suddenly being without housing assistance from the Department while the new programs are geared up and being to produce units. 5. The Ccmnittee feels that if and when the Indian Housing Act of 1982 be- comes law Tribes will have an excellent opportunity to monitor the effectiveness and efficiency of the new programs from their very beginning. The CceTnittee therefore reccirmends that the National Congress of American Indians call upon the Tribes and Indian Housing Authorities as well as the National Tribal Chairmen s Association and the National American Indian Housing Council to join with it to oversee the effective administration of the programs by the Bureau of Indian Affairs. Attachment of Tribal Trust Funds (Section 205) Section 205 of Title II of both H.R. 5988 and 5. 2847 requires that in order for Tribes with trust funds to be eligible to participate under this Title, they must agree to allow any or all of their unobligated trust funds to be subject to attachment by the Secretary of the Interior in the case of default. The Tribe has a period of sixty (60) days fran the time the Secretary notifies it in writing of his intent to attach the funds to clear up the default. The National Congress of American Indians has si~ated in testirrony before the Housing Carmittee on Interior and Insular Affairs and the Senate Select Carrnittee on Indian Affairs its qualified support for the two bills. The National Congress of American Indians' position has been that: 1. It supports the intent of the legislation to meet the housing needs of Indian and Alaska Native people of all income levels living in Indian Country. PAGENO="0444" 438 2. It adairantly opposes section 205--the attachment of tribal trust funds recuireirent. The National Congress of American Indians feels that a willingness to cangranise tribal trust funds should not be a pee- reiguisite to the securement of services under the Act. The National Congress of American Indians also feels that Tribes without trust funds are in danger of being inequitably treated under the Act--that they will get fewer units because they have no trust funds to use a security. 3. If section 205 must remain a part of the legislation, then it should be amended. The National Congress of American Indians has recarmended that language be added to this section that would authorize the Secretary to extend or waive the sixty (60) day deadline for a Tribe to respond to the Secretary's notification of intent to attach trust funds should the Tribe in question be a victim of circanstances beyond its control, for exarngle: an extremely high uneirnloynent rate due to a sagging econany, or a natural disaster. The Carinittee has debated and discussed this issue in-depth. It feels that the prcgrams proposed by the legislation would be of benefit to Tribes and Indian arid Alaska Native people in general. The Carrnittee supports the legislation in general, but opposes it in principal on grounds that section 205 departs fran the established policy of the United States that Indian trust property (natural resources, monies, etc.) should not be subject to attachments, liens or encrrnbrances of any kind. Unfortunately, the Ccrrrnittee is all too painfully aware that it is unlikely that the Indian Housing Act of 1982 legislation would, at this time, be enacted without section 205. Therefore, the Carmittee feels that it can only recaTmend that the National Congress of American Indians continue to give qualified support for H.R. 5988 and 5. 2487 as stated before. But the Ccornittee further reccornends that the National Congress of American Indians continue to advocate for the removal of the offending section as wefl as all related sections and/or subsections of the two bills. Resolutions The Carrnittee considered housing resolution nrrnber 68-83-MS which was passed by the National Tribal Chairmen's Association at its convention in Nashville, Tennessee this year. The resolution was submitted to the National Congress of American Indians' Resolutions Ccimiittee where it was assigned the above nuster and then given to the Housing Ccrrmittee to act upon. In the resolution, the National Tribal Chairmen's Association states it urqualified endorserrent of the passage and enactment of H.R. 5988 and 5. 2847. The resolution does not address the issue of attachment of tribal trust funds. After discussion of the resolution, the Carinittee voted 7 to 2 in favor of disapproving it based on the fact that it does not address the trust fund issue, yet gives uncualified support to both bills. Resolutions by the Western Washington Indian Housing Authorities Association and the National American Indian Housing Council/Tn-State Indian Housing Associa- tion of Minnesota, Michigan and Wisconsin addressing the increase of low-inccire rental fees fran 25% to 30% and the cutback in deductions have been included in the body of this report. Adoption by the Housing CaiTnittee This report was unaninrously approved by the Camrittee on Thursday, Septern- ber 30, 1982. PAGENO="0445" 439 REPORT OF THE NCAI HOUSING CONMITTEE 39th Annual Convention Bismarck, North Dakota September 27 - October 1, 1982 INTRODUCTION The Committee met to review and discuss several important housing issues to develop and recommend position statements and types of actions that it felt NCAI should take on them. Detailed and lengthy discussions were held on fourteen issues, two of which are. considered controversial. The Committee's findings and recommendations are: HUD INDIAN HOUSING PROGRAM The Committee recommends that NCAI continue to advocate for funding for the HUD Indian Housing Program at the level of 4,000-units per year. 1. The Committee found that it is not always feasible to build 3-, 4- and 5- bedroom units because of higher cost, the demand for smaller one- and two-bedroom units by single individuals and couples, and the difficulty of heating the entire house which often contributes to high heating costs. The Committee recommends that the NCAI advocate that Tribes be given greater flexibility by MUD in determining unit sizes that meet the needs of their members. The Committee further recommends that NCAI seek an amendment to current HUD regulations to provide Tribes with this flexibility. 2. The Committee finds that HUD's policy to restrict or prohibit amCnities in housing projects, i.e., garages, carports, basements, etc., is unnecessarily restrictive. It causes undue hardship on those living in areas where such amenities are considered essential. The Committee recommends that NCAI advocate for more flexibility by HUD in its application of such restrictions and that it allow local IHAs to develop cost containment designs which could include necessary amenities within prototype. The Committee further recommends that HUD evaluate carefully each IHA's request for inclusion of amenities based on special regional needs and allow local IMPs to design PAGENO="0446" 440 units that could include necessary and cost affective amenities that are within tue prototype. The Committee also recommends that the SCAI work toward amendment of this policy. 3. The Committee finds that the increase in low-income rental fees from 25% to 30% and the reduction of family deductions and exemptions as expressed in HOD regulations 24 CFR 805 and 850 will inflict unnecessary hardships on Indians desiring to live on trust and reservation lands. Because of the depressed Tribal and national economy coupled with cutbacks in many programs employing Tribal members locally, the Committee feels it is an inopportune time to increase low-income housing rents. The Committee also finds that such an increase discourages families in their efforts to improve their conditions by robbing them of needed extra income. The Committee recommends that the NCAI oppose the increase of the rental rate to 30% of the adjusted low-income family income and to support the maintenance of the current criteria of 25% of income for rental purposes. 4. The Committee is a~:are that HUD is studying various alternatives to its Indian Housing Program. The Corr~nittee is very concerned that HUD is considering such alternatives s:ithout consulting with the Tribes and WAs. The Committee therefore recommends that upon return from this convention, NCAI obtain information about alternatives OW is considering and send the information to the Tribal leadership, IHA associations, and individual IHAs so that they nay also study the proposed alternatives, and that the opportunity be given them to comment, oppose or support them. RURAL HOUSING BLOCK GRANT The Committee understands that RHBG legislation, as proposed by Senator Harrison Schmitt and contained in S. 2607, the Housing and Community Development Amendments of 1982, as presently ~sritten, contain no provisions for direct funding of Tribal governments. Instead, Indians living on reservations must apply to the state to receive assistance urder this legislation. The C~:snittee feels that the lack of direct funding to the Tribes violates the goverr.ment-to-government relations:sip of Tribes PAGENO="0447" 441 with the federal government. The Committee alno feels that the negative relationship between Tribes and states will prohibit Tribes from receiving such funds from the states. The Committee recommends that NCAI oppose the funding of Tribes through the tates under block grants and the transfer -- in full or in part -- of the responsi- bility of the federal government to finance Indian housing construction from it to the states. The Committee further recommends that NCAI continue seeking to add language to the legislation that would allow Tribes to be funded directly instead of through the states. This recommendation reaffirms the position taken by the Committee and NCAI at the 38th Annual Convention. INDIAN PREFERENCE The Committee finds that there are differing opinionsamong Tribes on the benefits of implementing Indian Preference in the awarding of contracts for housing construction, rehabilitation or repairs as well as contractor and subcontractor hiring and training. The Committee also finds that the Administration, through HUD, seeks to eliminate, weaken or avoid implementing Indian Preference by citing it as a major contributing factor to high costs in the development of Indian housing. The Committee recognizes the important of Indian Preference as a tool to achieve greater economic and employment opportunities for Indians and Alaska Natives within both federally and non-federally funded programs. The Committee, therefore, recommends that NCAI oppose any attempts by HUD to avoid, weaken, distort or eliminate the implementation of Indian Preference in housing construction contract awards, confractor and subcontractor hiring and training on Indian projects, and HUD hiring for Indian and.Alaska Native programs. The Committee further recommends that implementation of Indian Preference in the awarding of contracts, etc., at the Tribal level ought to be a perogative of the Tribes since they know best about the availability of Indian contractors and manpcwer. 18-934 0-83-29 PAGENO="0448" 442 DAVIS-BACON REOUiREI~EFTS The Committee, after lengthy and in-depth discussion, finds that the Davis- Bacon law does not set prevailing wage rates; that the Department of Labor is chargedwith that responsibility and has a process to establish prevailing wage rates. The Committee finds that there is a difference of opinion among IHA5 about how much Davis-Bacon increases the development cost of an Indian housing project. The Committee further finds that while Davis-Bacon wage rates are considered by some IHA5 to be a very real contributor to high Indian housing develcpment costs, other IHA5 do not find this to be the case. The Committee further finds that any attempt by the NCAI to amend the David-Bacon Act to exempt Tribes would be futile given the strong support of the law by the unions. The Committee also finds that there is an unequal application of wage rates by the DOL on Indian Tribes. The Committee does feel, however, that Tribes should be allowed to decide whether or not to apply David-Bacon wage rates on their reservations and that they be allowed to set their own wage rates it they so choose. The Committee therefore recommends that HCAI work to amend the process which establishes the prevailing wage rates with the objective of gaining d more equitable and workable application of wage rates for Indian areas. The Committee further recommends that NCAI seek out a way for Tribes to formally contest or appeal the application of the prevailing rates prior to the letting of contracts for bid if the rates are determined by the Tribes to be inordinately high. In addition, the Committee recommends that, should the David-Bacon prevailing wage rate be extremely high and cause construction costs to over-run, the Tribe should have the option of negotiating the prevailing rate. STATE FINANCING OF INDIAN HOUSING The Committee is concerned that HUD is considering state financing of housing construction on Indian reservations through state financing agencies. The Cocimittee is aware that at least one tribe has elected to obtain financing for housing PAGENO="0449" 443 construction on its reservation through this method, and the Committee feels that individual Tribes have the right and authority to do this. The Committee feels, however, that HUG should not seriously consider this method of financing as a viable option for Tribes nor should go forward with any plans for encouraging or mandating such a financing method as a policy for funding Indian housing. Given that HUG is considering state financing of Indian housing construction through state financing.agencies as an alternative to federal funding, the Committee very strongly recommends that NCAI oppose any attempt by HUD to mandate this method in its Indian Housing Program. The Committee further recommends that NCAJ oppose the transfer either in full or in part -- of the responsibility of the federal government to finance Indian housing to the states. THE INDIAN HOUSING ACT OF 1982 (HR. 5988 and S. 2847j 1. The Committee finds that both versions of the Indian Housing Act of 1982 do not address giving Tribes greater flexibility in choosing methods of construction. The Committee finds that many Tribes have successfully contracted programs from the BIA under the 633 .provisions. The Committee is also aware that there are Tribes who would prefer to use the force account method of construction for their Indian housing projects. The Committee therefore recommends that NCAI advocate for language in both HR. 5938 and 5, 2347 that would provide Tribes with the flexibility to choose their methods of construction with specific attention given to the unique needs, i.e,, cultural and climatic conditions, of each region. 2. The Committee is concerned that Title I, section 101, of H.R. 5988 and 5. 2847 authorizes the Secretary of the Interior to give grants directly to individuals and to contract directly with private construction firms. The Committee feels that such authority allows the Secretary to bypass Tribal govern- ments instead of going through them as is the case under the present Housing Improvemvnt Progrum (HIP). Such authority ~ou1d go against the spirit and intent of self-determination and would undermine the Tribes' authority to Hendle their PAGENO="0450" 444 cm internal affairs with respect to hcusinn assistance. The Committee recommends that UCAT support an amendment to Title I which will not permit the Secretary to bypass Tribal governments and which will flatly state that all housing assistance and contracts funded under the Act shall go through Tribal governments. 3. The Committee finds that both H.R. 5988 and S. 2247 establishes an Office of Indian Housing Programs within the Bureau of lndian Affairs, and creates the position of Director of Indian Housing Programs to supervise the office and administer the programs. The Committee further finds that the Director shall be under the immediate supervision of the Assistant Secretary for Indian Affairs. The Committee feels that the Directors position will, should both bills be enacted and signed into law, carry with it a high degree of authority ~nd responsibility in order to administer the programs as efficiently and effectively as they are intended to be. The Committee recommends that ICAI support the selection of a qualified American Indian or Alaska Hative to be Director of the Office of Indian Housing Programs and the selection of qualified American Indians and Alaska Natives to staff the new office. The Committee recommends that CAl call on the BIA to implement Section 12 of the Indian Reorgenization Act when the time comes for selecting the Oirector and program staff. 4. The Committee estimates if an when the Indian Housing Act of 1982 is enacted and signed into law that there will be a lag period of approximately two years before Tribes will see any housing constructed on their reservations under the Act's programs. In addition, the Coramittee is fearful thatonce the bill becomes law the Department of Housing and Urban Development may decide to terminate all housing assistance it provides to Tribes. The Committee therefrre recommends that 11CM request that the Administration impose a 2-year transition period so that Tribes will not be placed in danger of suddenly bain9 xithout housing assistance from -NJD while the ncr: programs are PAGENO="0451" 445 geared up and begin to produce units. 5. The Committee feels that if and when the Indian Housing Act of 1982 is enacted and signed into law, Tribes will have an excellent opportunity to monitor the effectiveness and efficiency of the new programs from their very beginning. The Committee therefore recommends that NCAI call upon the Tribes and IHA5 as well as the National Tribal Chairmen's Association and the National American Indian Housing Council to join with it to oversee the effective administration of the programs by the BIA. 6. Attachment of Tribal Trust Funds (Section 205) Section 205 of Title II of both HR. 5988 and S. 2847 requires that in order for Tribes with trust funds to be eligible to participate under this Title, they must agree to allow any or all of their unobligated trust funds to be subject to attachment by the Secretary of the Interior in the case of a default. The Tribe has a period of sixty (60) days from the time the Secretary notifies it in writing of his intent to attach the funds to clear up the default. NCAI has stated in testimony before the House Committee on Interior and Insular Affairs and the Senate Select Committee on Indian Affairs its qualified support for the two bills. NCAI's position has been that: 1. It supports the intent of the bill to meet the housing needs of Indian and Alaska Native people of all income levels living in Indian Country. 2. It adamantly opposes section 205, the attachment of tribal trust funds requirement. NCAI feels that a willingness to compromise tribal trust funds should not be a prerequisite to the securement of services under the Act. NCAI also feels that Tribes without trust funds are in danger of being ineq~itably treated under the Act -- that they will get fewer units because they have.no trust funds to use as security. 3. NCAI has recossnended that if section 205 must remain a part of the legislation then section 205 (c) be amended. NCAI has recommended that language be added to this section that would authorize the Secretary to extend or waive the sixty (60) day PAGENO="0452" 446 deadline for a Tribe to respond to the Secretary's notification of intent to attach trust funds should the Tribe in question be a victim of circumstances beyond its control, for example: an extremely high unemployment rate due to a sagging economy, or a natural disaster. The Committee has debated and discussed this issue in-depth. It feels that the programs proposed by the legislation would be of benefit to Tribes and Indian and Alaska Native people in general. The Housing Corixnittee supports the bill in general but opposes the bill in principal on grounds that section 205 departs from the established policy of the United States that Indian trust property (natural resources, monies, etc.) should not be subject to attachments, liens or encumbrances of any kind. Unfortunately, the Committee is all too painfully aware that it is unlikely that the Indian Housing Act legislation would, at this time, be enacted without section 205. Therefore, the Committee feels that it can only recommend that UCAI continue to give qualified support for H.R. 5988 and S. 2847 as stated before. But the Committee further recorraxends that NCAI continue to advocate for the removal of the offending section as well as all related sections and/or subsections of the two bills. RESOLUTIONS The Committee considered housing resolution #68-83--HS which was passed by the National Tribal Chairmen's Association at its convention in Nashville, Tennessee this month. The resolution was submitted to the NCAI Resolutions Comittee where is was assigned the above number and then given to the Housing Committee to act upon. In the resolution NTCA states its unqualified endorsement Qf the passage and enactment of H.R. 5988 and S. 2847. The resolution does not address the issue of attachment of tribal trust funds. After discussion of the resolution, the Committee voted 7 to 2 in favor of disapproving it based on the fact that it does not address the trust fund issue yet gives unqualified support to both bills. Resolutions by the Western Washington Indian Housing Authority and the National American Indian Housing Council/Tn-State Indian Housing Association of Ilinnesota, Michigan and Wisconsin addressing the increase of low-income rental fees to 30% from 25% and the cutback in deductions have been included in the body of this report. ADOPTION BY THE HOUSING CONMITTEE This report was unanimously approved by the Committee. PAGENO="0453" 447 NATIONAL TRI1IAL CiIA1RNEN S ASSOCIATION R ES 0 LU TI 0 U A RESaLUTION TO SUPPORT PASSAGE OF9OHPANI0N BILLS HR. 5988 AND S. 2347 THE INDIAN HOUSING ACT OF 1982 WHEREAS, Congressman Morris Bdail and Senator Thad Cochran have introduced bills providing for an "Indian Housing Act of 1982" to provide for an indian Housing Program and for construction and financing of housing for Indians, an,d WHEREAS, the bills were drafted with input from Indian Country, and provide for the first time a legislative aoswer to the problems of obtaining finsncing for the constructioo of private homes on trust land, a st~tutory basis for the operations of 5IA'~ lousing Improvement Program, and an alternative to overly long-term federal commitments in the constuction of housing for low- and moderate-income Indian families on reservation, and WHEREAS, there is no direct connection between the companion bills and the ongoing Indian Housing program of the Department of Housing and Urban development, though enactment of the proposed Act vould assure continuation of the Indian housing effort were HUD programs to be curtailed, and WHEREAS, the `bills' provisions giving flexibility to elected tribal ;overnments in the structuring, establishment, or designation of "tribal housing agencies," are supportive of the self-determination policy, now theTefore be it sESOLVED, membership of the National Tribal Chairmen's Association in convention assembled does hereby endorse the passage and enactment of H.R. 5988 and S. 2847. CERTIF ICAT ION The foregoing resolution was duly adopted by the membership of the National Tribal Chairmen's `Association at its duly constituted Convention on this day of September, 1982, at which time a quorum was present.' PRESIDENT ATTEST: -..-. // ~ / (..` ` PAGENO="0454" 448 NATIONAL TRIBAL CHAIRMEN'S ASSOCIATION Suite 910 * 1010 Vermont Avenue, N. W. Washington, D. C. 20005 - 4949 202-737-7011 RESOLUTION NTCA No. 82-30 A RESOLUTION TO SUPPORT PASSAGE OF COMPANION BILLS H.R.5988 AND S. 2847, "THE INDIAN HOUSING ACT OF 1982'. WHEREAS, Congressman Norris Udall and Senator Thad Cochran have introduced bills providing for an "Indian Housing Act of 1982" to provide for an Indian Housing Program, and for construction and financing of housing fol Indians, and WHEREAS, the bills were drafted with input from Indian Country, and provide for the first time a legislative answer to the prob- lems of obtaining financing for the construction of 0r~vate homes on trust land, a statutory basis for the operations of BIA's Housing Improvement Program, and an alternative Cc overly long- term federal commitments in the construction of housing for low and moderate income Indian families on reservations., and WHEREAS, there is no direct connection between the companion bills and the ongoing Indian Housing program of the Department of Housing and Urban Development, though'enactment of the proposed Act would assure continuation of the Indian housing effort were BUD programs to be curtailed, and WHEREAS, the bills' provisions giving flexibility to elected tribal governments in the structuring, establishment, or designation of "tribal housing agencies", are supportive of the self-determination policy, now THEREFORE BE IT RESOLVED that the membership of the National Tribal Chairmen's Association in convention assembled does hereby endorse the passage and enactment of H.R. 5988 and S. 2647. CERTIFICATION The foregoing Resolution was duly adopted by the membership of The National Tribal Chairmen's Assoqiation at its' duly con- stituted Convention in Nashville, Tennessee, on this 24th day of September, 1982, at which time a qu was present. ~ PAGENO="0455" 449 WILKINSON, CRAGUN & BARKER HAND DELIVERED May 10, 1982 ~A~I1ee~di, ~ ,4 ~ ~ ~,4 The Honorable Morris K. Udall, Chairman Committee on Interior and Insular Affairs United States House of Representatives 235 Cannon House Office Building Washington, D. C. 20515 Re: Indian Housing Act of 1982 - H.R. 5988 Dear Chairman Udall: On behalf of the Northern Arapahoe Tribe of the Wind River Reservation, Wyoming, for whom we are general counsel, we submit these comments on H.R. 5988, and we respectfully request that they be incorporated into the record and considered by the Committee in their deliberations on this bill. The Arapahoe Tribe strongly supports the Indian Housing Act of 1982, with certain amendments. The Arapahoe Tribe is deeply concerned by the Reagan Administration's recommendation that Congress terminate the MUD public- assisted housing program, including the Indian housing program. Although the Administration may believe that the HUD program is excessively costly or inefficient, it has not yet proposed or supported any alternative to remedy the deplorable condition that exists, namely, that 36 percent of all Indian families now live in substandard housing, and that over 43 percent of Indian housing is in substandard condition. The Tribe understands the current effort to reduce the federal budget, and it has first-hand experience with.the problems that have occurred in the implementation and administration of the existing HUD program. Nevertheless, PAGENO="0456" 450 The Honorable Morris K. Udall May 10, 1982 Page Two abandonment of the federal responsibility to insure that Indian families are decently housed ignores both the measure of success achieved by the existing programs and the United States' obligation, as trustee, to protect and promote the welfare of Indian tribes and their people. The Arapahoe Tribe supports the Indian Housing Act of 1982 as a sensible alternative to the HUD Indian housing program. The bill adopts a balanced, efficient system -designed to satisfy the needs of different income levels on Indian reservations. The Tribe is concerned, however, about certain provisions of the bill, and here proposes certain changes by which the Tribe believes the bill will be more in accordance with tribal needs. The Tribe opposes Section 101(c) (3) of the bill, giving the Secretary of the Interior authority to contract with private construction firms under standard federal con- tracting procedures, for two reasons. This section inter- feres with the Tribe's right to govern its own affairs by negotiating contracts itself, and it fails to require the Secretary to give a preference to Indians and Indian enter- prises. The Tribe therefore believes that this section should be eliminated. If the section is retained, it should at least require an Indian contracting preference similar to that provided for in Section 7 of the Indian Self-Determination and Education Assistance Act, Pub. L. No. 93-638, 25 U.S.C. § 450(e). The Tribe strongly opposes Sections 205 and 209(a) (4) of the bill, which allow the attachment of individual or tribal trust funds to pay outstanding debts of the Tribe or individual Indians, and make the Tribe the guarantor of individual Indians who receive housing benefits under the bill. It is grossly unfair to require the Tribe to become responsible for the debts of its individual members. In addition, these provisions are inequitable because they would not apply to tribes and individual Indians that have no trust funds. Although the Arapahoe Tribe receives significant amounts of trust income, largely from present production of exhaustible mineral resources, the Tribe already has committed these funds to a number of welfare and other programs designed to assist its members. Similarly, the trust resources of individual Arapahoes, who like most-Indians suffer from high unemployment and low income, are needed for the basis necessities of life. The lien proposed by the bill would place an unacceptable additional burden on tribal and individual trust funds. As an alternative, the Tribe suggests that the tribal court, or Court of Indian Offenses, on each reservation be used to enforce individual Indians' financial obligations. PAGENO="0457" 451 The Honorable Morris K. Udall May 10, 1982 Page Three Finally, the Tribe believes that H.R. 5988 nay serve as a vehicle to solve sone of the specific problems encountered by the Arapahoe Tribe in the administration of housing programs on the Wind River Reservation. The Arapahoe Tribe shares the Wind River Reservation with the Shoshone Tribe, and both Tribes are owners in common of all land and resources held in trust for the Tribes on the Reservation. Although the Tribes' governing bodies act jointly on matters of mutual interest and concern, the Tribes continue to be separate entities that must share a Reservation in common. Administration of all housing programs by the Wind River Housing Authority, which operates the HUD housing pro- grams for both the Arapahoe and Shoshone Tribes, has been an extremely unsatisfactory arrangement for the Arapahoe Tribe. Funding received by the housing authority is split 50-50 between the two Tribes, even though the Arapahoe Tribe has almost twice as many members ad the Shoshone Tribe, and thus twice as great a need for housing. That fact, combined with inequitable and inept administration of the program, has resulted in a much greater proportion of the money being used to build homes for Shoshones, while the Arapahoes' housing waiting list grows longer. As a solution to this problem, the Arapahoe Tribe favors elimination of the Wind River Housing Authority. Instead, there should be separate administration of housing programs by each Tribe on the Wind River Reservation. This, combined with distribution of housing units and funding on the basis of the population and housing needs of each Tribe, rather than on the basis of a 50-50 split, would greatly alleviate the serious housing problems faced by the Arapahoe Tribe and its members. The Tribe realizes that H.R. 5988 cannot completely solve the specific problems of the Arapahoe Tribe. However, to facilitate implementation of the system suggested herein, the Tribe requests that Section 203(c), which requires a tribal governing body to establish or designate a tribal housing agency, be amended to allow the Tribe itself to administer Title II housing programs. In conclusion, the Arapahoe Tribe wishes to express its appreciation for the Committee's attention to the housing needs on Indian reservations. The Tribe supports the passage PAGENO="0458" 452 The Honorable Morris K. Udall May 10, 1982 Page Four of H.R. 5988 and the implementation of a unified Indian Housing Program within the Bureau of Indian Affairs, and hopes that the Committee will consider the above recommended amendments, attached hereto. Sincerely, WILKINSON, CRAGUN & B ER B~ %Roge~~~ Attachment Copy, with attachment: Franklin 0. Ducheneaux, Esg. (with copies for Committee) PAGENO="0459" 453 2~ENDMENTS TO H * R. Proposed by the Northern Arapahoe Tribe ofthe Wind River Reservation, Wyoming 1. Section 101(c) (3) of H.R. 5988 is hereby deleted; Section 101 Cc) (4) is hereby renumbered as Section 101 (c) (3). In the alternative, substitute the following for the existing Section 101(c) (3): Section 101. (c) "(3) contract with private construction firms, and, to the greatest extent feasible, give preference to Indian organizations and to Indian-owned economic enterprises, as defined in 25 U.S.C. § 1452(3) (1976), in the award of such contracts and subcontracts." 2. Section 205 is hereby deleted in its entirety. 3. Section 209(b) (4) is hereby deleted. 4. Substitute the following for Section 203(c): "Cc) The application shall include a tribal ordi- nance or other evidence of action of the governing body of the tribe designating the tribal governing body itself, or designating or establishing a tribal housing agency (hereinafter referred to as the `agency'), as the organization responsible for implementing the project agreement." PAGENO="0460" 454 *4 *4~\ Ojibway * One~a * Potawatomi * Stock~idge-Munsee * Winnebago ) Y~ ~LIT~ I1\JC:~EAT LAKES INTER-TR~8AL COUNCIL I~JC POST OFFICE BOX 9, LAC DU FLAMBEAU, WISCONSIN 54538 PHONE (7151 5883324 RESOLUTION NO. 4-23-82-B "INDIAN HOUSING ACT OF 1982" WHEREAS, legislation numbered H.R. 5988, titled "The Indian Housing Act of 1982" has been introduced to the U.S. House of Representatives by Mr. Udall, Mr. Kildee, Mr. Williams, and Mr. Santini, and WHEREAS, the proposed legislation as introduced would render tribal trust funds available for Bureau of Indian Affairs seizure in cases of tribal housing agency default, which is unprecedented in any other program of either Bureau of Indian Affairs or any other federal agency, and WHEREAS, the proposed legislation vests with the Secretary of Interior excessive authority over allocations, distribution, management and recoupment of tribal housing program funds, and provides inadequate safeguards from the exercise of Secretarial descretion which has in the past proven to be wielded in arbitrary fashion, and WHEREAS, Tribes nationally find themselves increasingly isloated from development assistance due to the federal policy of exempting tribal eligibility for any and all programs not specifically administered under the Secretary of the Interior, and WHEREAS, the proposed legislation provides for increasing state court jurisdiction over tribal housing and land foreclosures, and WHEREAS, the legislation fails to provide opportunities for tribal enterprise, and WHEREAS, proposed funding allocations are grossly inadequate to meet the housing needs of the Tribes, now THEREFORE BE IT RESOLVED, the Tribes of Wisconsin represented by Great Lakes Inter Tribal Council, Inc. and the Menominee Tribal Chairperson, hereby oppose H.R. 5988, as currently written, and BE IT FURTHER RESOLVED, the Tribes represented urge the House Committee on Interior and Insular affairs to redraft HR. 5988, to address the previously identified concerns, and to allow tribal involvement and input in the drafting of any and all legislation affecting Tribes nationally. PRESIDENT VICE-PRESIDENT Dr. Riot, St. Oermaine WIlliam Wildcat SECRETARYITREASURER EXECUTIVE DIRECTOR Norbert Hill Sr Robert MilIerJr. PAGENO="0461" 455 RESOLUTION NO. 4-23--824B CERTI FICATION I, the undersigned, as Secretary of the Great Lakes Inter-Tribal Council, Inc. Board of Directors, and Tribal Representive for the Menominee Tribal Government, do hereby certify that the Board is comrised of ten (10) Tribes and one (1) Menominee Representive those being: Sokaogon Chippewa Tribe Mole Lake Band Red Cliff Band of Lake Superior Chippewa Wisconsin Winnebago Oneida Tribe of Wisconsin Stockbridge-Munsee Indians of Wisconsin St. Croix Chippewa Tribe Lac Courte Oreilles Band of Lake Superior Chippewa Indians Forest County Potawatomi Community Bad River Band of Lake Superior Chippewa Indians Lac du Flambeau Band of Lake Superior Chippewa Indians Menominee Tribes of Wisconsin of~horw.~9 were present, thus constituting a quorum, at a meeting duly called, ndt~f,I cph~,ened and held on the 23rd day of April , ig82, and that the foregoing /~bqol51)ticrn.~t~s~ passed at said meeting by an affirmative vote of 10 members for, ~,S~'mv~be~4gainst, and 0 members abstaining~ Secretary/Treasurer PAGENO="0462" * 456 411 THE NAVAJO NATION WINDOW ROCK, ARIZONA 86515 PETER MacDONALD The Honorable Morris K. Udall United States House of Representatives 235 Cannon House Office Building Washington, D.C. 20515 Re: Indian Housing Act of 1982 Dear Congressman Udall: I have reviewed with great interest the draft Indian Housing Act of 1982 which you have had the foresight to have drafted and for which I commend you. Your legislation will fill a critical gap in the housing delivery system available to the 400 Indian Tribes across the nation. On the Navajo Reservation alone, our unmet housing needs for new construction and rehabilitation are so massive as to overwhelm our resources. For example, a 1981 needs assessment by the Navajo Housing Services Department found a need for new construction of 11,857 housing units and the substantial rehabilitation of an additional 11,256 housing units. The capital requirements of these needs are staggering: New Construction Estimated Requirement of 11,857 Units At $55,000 Per Unit $625,135,000 Rehatilitation, 11,256 Units at $15,000 Per Unit $168,840,000 PAGENO="0463" 457 Morris K. Udall Page Two As you may recall, we provided testimony on this Bill supporting it with certain amendments, which will allow us (Native Americans) more flexibility to make housing available to our people. We genuinely laud your creative initiative in proposing this worthy measure. Sincerely, Peter Donald, Chai an Navajo Trbal Council 18-934 O-83--~O PAGENO="0464" 458 SHOSHONE & ARAPAHOE TRI~l'"~~ BOX 217 FORT WASHAKW, WIDMING 82514 CHIEF WASHAKIE CHIEF BLACK COAL SHOSHONE BUSINESS COUNCIL ARAPAHOE BUSINESS COUNCIL May 10, 1982 Honorable Morris Udall Chairman, Committee on Interior and Insular Affairs Mouse of Representatives 235 Cannon House Office Building Washington, D.C. 20510 Re: H.R. 5988, Indian Housing (138.21) Dear Mr. Udall: The Shoshone and Arapahoe Tribes of the Wind River Indian Reservation in Wyoming strongly support your efforts to obtain legislation that will continue the federal policy of providing housing for reservation Indians. The Tribes commend you and your cosponsors for your recognition that reservation Indians must look to the United States for aid in the con- struction and financing of housing. The States have no responsibility. Your statement in the March 30, 1982 Congressional Record makes clear to the Tribes that you understand the desperate need. Title I of the bill would authorize an appropriation of $30 million each fiscal year for the housing improvement program (HIP). The Tribes are sure that you are aware that $30 million annually will not do the HIP job. They appreciate that the $30 million figure is imposed by current budgetary restrictions that hopefully will be overcome in future Congresses. The Tribes are much concerned and strongly oppose Section 205 of the bill as discriminatory and grossly unfair. Section 205 would make the Tribes the guarantor of every individual recipient of a housing benefit. Section 205 would subject all tribal trust funds to attachment for pay- ment of the debts that individual Indians owe to the reservation housing authority. PAGENO="0465" 459 Page 2 The provision is discriminatory because no such burden is cast on any other political entity in the United States. No city in the United States is compelled to guarantee payment of moneys owing by its housing authority. Certainly, municipal funds are not subjected to attachment. The provision is unfair because it requires all the people of the Tribes to assume the debts of some individuals, members and nonmembers. Keep in mind that under the Indian Civil Rights Act, tribes cannot discriminate among Indians on the reservation. Section 3(5) of H.R. 5988 authorizes the benefits for any Indian on the reservation whether or not a member of the tribe of that reservation. In this fashion the bill would use tribal property to pay the debts of strangers to the Tribes. As we see it, unless tribes are eliminated from Section 205, the only tribes who will participate are those without any tribal trust funds or any prospect of receiving such funds. Thus, the objective of the bill would be defeated and eligible Indians would be denied housing benefits. Sincerely, OC)ótkj Chairman, Shos1ne Business Counc\l Ch~Lrman,~rapahoe Businesslouncil PAGENO="0466" 460 RESOLUTION Spokane Resolution 1982- 197 WHEREAS, the Spokane Tribe has been notified that through the U.S. Congress a bill has been introduced in regard to Indian housing; and WHEREAS, the bill has such language that would move the H.IJ.D. (Housing and Urban Development) Program under the direction of the Bureau of Indian Affairs; and WHEREAS, in the language of the bill, Indian preference is not mentioned; and WI-IEREAS, it is the feeling of the Spokane Tribe that Indian preference be manditory in the Indian Housing Bill; and WHEREAS, Section 7(b) of P.L. 93-638 of the Self-Determination Act should be added to Section 215 of the Indian Housing Bill. NOW, ThEREFORE, BE IT HEREBY RESOLVED by the Spokane Tribal Business Council meeting in Special Session this 7th day of May, 1982, that the Spokane Tribe hereby requests that within the Indian Housing Bill presently being considered by the U.S. Congress that they include in the Bill, language that would make Indian preference manditory. CERTIFICATION The foregoing was duly enacted by the Spokane Tribal Business Council on the 7th day of May, 1982, by a vote of 4 for and 0 against under authority contained in Article VIII of the Constitution of the Spokane Indians ratified by the Spokane Tribe on November 22, 1980. V. arnue s, Chairman Spokane Tribal Business Council PAGENO="0467" .461 Choctaw Nation of Oklahoma Draeerl2lO'Dunnt. Okla.74701 .(406)924.e280 RobertL. Gardner A~cW~f April 9, 1981 Honorable Morris K. Udall House of Representatives 235 Cannon House Office Building Washington, D.C. 20515 Dear Congressman Udall: I am deeply concerned, indeed shocked, that the Reagan Administration's budget proposal completely eliminates housing for Indians. For over 40 years the federal govern- ment has spent billions of dollars providing decent housing for most low and moderate income Americans. But it was only in the middle sixties that the poor among the Indian popu- lation were allowed to participate and, then, only in a modest way. The housing allocations for low income Indian families have never been sufficient to meet our demands. However, the Indian people were content to accept what little they could get. The Administration now proposes to cut the Fy 81 budget for Indian housing by one-third or from 6,000 units to 4,000. There is a move on to rescind one-half of the 4,000 unit allocation because the HUD area offices have been directed to refrain from obligating more than 50% of the alloCation. The final death-dealing blow to the program is contained in the Fy 82 budget which cuts Indian housing and the public health service appropriation for sewer and water by 100% and at the same time the proposal only cuts other public housing by 17% this year and 33% next year. viewed in the most favorable light, this is out-and-out discrimination against the native Americans of this country. The argument made by the Administration for the proposal is that Indian housing is too expensive and the Tribes take too long to deliver housing allocated to them. This is absolutely not true. As you can see from the enclosed text of the testimony of Ronald Froman with the National American Indian Housing Council before the House Committee on Interior and Insular Affairs, housing for Indians is the least expen- sive program the federal government has. It is true that PAGENO="0468" 462 Honorable Morris K. Udall April 9,1981 Page 2 Indians have had their problems delivering the housing but it must be remembered that they were 25 years behind other programs in getting started. In spite of over-regulation and unnecessary bureaucratic red tape which can and should be eliminated, most Indian Housing Authorities are now quite efficient. It is saddening that this Administration would totally deprive the poorest Americans, namely Indians, of safe, sanitary and decent homes. Statistics show that 12% of all Americans now live in substandard housing while 49% of all Indians live in such housing. 1.9% of all Americans live in overcrowded housing but 27.6% of all Indians live in overcrowded housing. As long as this country has a housing. program, there is not any justifiable reason to prevent Indians from participating. Mutual-help housing for Indians is the best thing that has happened for Native Americans. Contrary to the "gimme" type programs, it has long-lasting effects which encourages poor Indians to improve their economic station in life. You only have to observe the difference in the self-esteem demonstrated by little Indian boys and girls after they have moved from a tar-papered shack into a decent attractive home. They begin to feel they can compete with their white counter-parts. Compared to other minorities and others dependent upon the. government, our numbers are small and our voices are weak. The dominant society placed us under the protection of the Congress after our defeats in the 19th century, when our lands were confiscated. If the Congress does not protect our interests, we have no place to turn. I invite you to study the entire record of the evidence presented before the Committee on Interior and Insular Affairs on April 3, 1981. I believe you will agree that there is absolutely insuffi- cient justification for destroying the Indian housing program. In closing, let me say that the Indian people, as Americans, are willing to shoulder our share of reduced government spending but the proposed Fy 82 budget asks too much of us. S e ely, HOLLI E ROBERTS * Chief of the Choctaw Nation of Oklahoma PAGENO="0469" 463 TESTiMONY SUBMITTED BY RONALD iiON\N NAtIONAL .\MERICAN INDIAN ILOUS INC COUNCIL Mr. Chairman, members of the Committee, it is a pleasure to he invited tc testify on behalf of Indian housing. Fir SlIMlY i)urio the odmiaistr~;t ion of Fr;nkiin I). Rocscvel.t, it ee;i"~ ovid~nt that much of the lower incooe po~ulatic~ ros id ma in toes in~ tLa~ tm mt 0. cent, sal. nor sanitary. In an effort to correct this grob I~m, Congress misted tue Federal Housing `ct in `1937 to I or... ;`u~ I no caid it i ms for c I uuc~ ~` n;u lot icu. Tb i~ ~ r, f~ :. .~ to ~m fret; I tie p rob cm of Nat 1 cc' .\.:or i c ins vu' have h;istoric.iILv ru~Iued in ind~ceut, unsafe end unsanitary !ieu~int conditions. The Native American ropulation ras denied any housie.; ass furnace under this federal .ct or nov othu.- hots inc act due to its oniquc problem 1 N stride! land status. [c (ode; ni d.o.rnmnnt, ogrit Inc is trustee (or tn»= End!;;; ;u! tin, prevcnts priete entererise from dev~lo~iu~ housing on re;trictd nod. Otis is true :rin;ril.v i)eca..se such restricted lands held it' trust na: or b ii ianated, Ic. rortgaged, thus prcventtng private devel.OEment r.gar.Jless of etn.r economic factors. Ti; is prab leo of rat r ic ted lie! status ins 01 cmiv.:.! nit ii I ml `chin nb ic housing was made available on rho reserv.:;tccn lands. `the cloud ocr `estricted land development was not resolved in Oklahoma until l9r5. thus putting the Oklahoma * . .tr. behind It; t~;ut.' Onc .1; It is ironic to note that the Indian hEousin~ rs~;r:;.I I:; lit aol ::.;rrs of providing PAGENO="0470" 464 decent, safe and sanitary housing for Native Americans rcsiding on restricted land. Other traditional methods of housing for lover income groups (V.A. assisted, Farmers Home) cannot ease the situation since they too are prevented from developing on lands held in trust. The end result of the aboLishment of Indian Housing is the abanlonment of the only feasible solution to the Indian housing problem. In terms of current noeds, census statistics reveal that A9~. of all Indians live in substandard housing. Since 1974, the total number of substandard housing unitS occupied by Indian fm~ilies has nevet dropped below 50,000 and in 1976, reached the -. phenos~nal fir-are of 6°,900. The Indian pugulation also exhibits a severe degree of overcrowding in lousing standards. Ti-s L~.5. Bureau of the Census identifies 1.51 or more parsons per roan as being critical housing conditions. The national average for the rural population is 2~i of the entire population living in critical conditions. The percentage of rural Indians living in critical hìousing conditions is 2$.6~, 26 points above the national average. The same census statistics also reveal that 67.4~ of the rural Indian pa~~ulatian live in hr-using without water facilities. As we view the problem it is necessary to est~blisl- two ~oints to justify cur position. The first point is the fact that the present program has been the only available avenue for Native Americans to substantially improve their housing conditions. The second poinL relates to the cost effectiveness of tie present prooram as compared to other areas of public housing. 1m centmnd that b~- establishing thcse poiats and reviewing the Office of ~lanagemant and Budget's recent cast figur.a wi Ii a.hguately just ifv wur poaitiar. PAGENO="0471" 465 COst EFFECr[VENLSS Upon review of the ONB's recently relta:;ed cost figures, wi Found it iecess;Lrv to pursue our own independent investigation of the actual cost per unit of the Nutual Help program. We cannot concur with the OXB's findings based on the fact that their estimations were either derived from a typical circumstances or simply ballooned to justify their positioo. The 018 recently announced that the total extended cost per unit was 5175,000, based on a national average of S72,OijO per unit. Invcstia:iticr, of these findings revealed that this figure was arrived at by calculating the i~ta debt service of $72,000 at 6.2g for a period of 28 "ears. Our own fincJin'~; chal1en~e the vaUditv of tb devole-~~ot cost cf $72,000 per unit. We contend that the national average of develepment east is in reality only $62,172 per unit. Even this figure is higher than Oklahoma's average deveio~ment cost of $49,933. The actual iurrent national average of S62,472 wculd be even less if one were to disallow the extremely high average of the Navajo reservation and remote Alaskan projects. Ccn:;idor the following rationale for the exclusion of thc~e averages, The Navajo reservation in the past two years has developed 873 units at am average cost of S77,ll5 per unit. This extreme cost was the result of HUD allowing wage rates far in excess of the already high Davis-Bacon Wage Scales. This is an isolated instance that does not occur any~bore else The Alaskan project's average cost was $84,579 for 33s units. The :ireurastances surrounding these costs are also atypical and do not represent average indian Housing costs. The Alaskan project's cost is attributed to the difficult': of HUD P in xc coos v rc's,t. loc'.t tom.; md ii'. seer' C! jycit ic certi it lens, In areas such as Alaska the flEA, it would seem, can ~roduce ho0sing core cost PAGENO="0472" 466 the Bt.\ for $50,000 per unit which are ccmperihle to tI;use huilt by lID. The national average without these isolated instaeces is $57,875 per unit for 4,602 units. Ue extended this average cost out to determine the total debt service per unit. Utilizing the sane calculation peocadure ac the 0~l8 based their costs on, we have determined the total cost per unit to be $132,000. This figure is approximately $43,000 per unit less than 01B's estimate and depicts the Indian housing program in more realistic 1i,ht. These figures as can be seen.are teas than regular public hausing costs as given last week before the Senate Select Committee by Acting Deputy Assistant Secretar~ Hihhc of 145,000 for 1981 and Iel.000 far l9i~2. Also of partici.ar concern is the cost of maintaining the units developed under the Indian housing program ~.s compared to other public housing programs. The 2~utual Help program does not require a maintenance subsidy as do other housing prograns. Other housing programs, such as Low Rent, have maintenance and modernization subsidies which h~ in some cases hsve-om~Il more than double the initial capitol investment per unit. It; addition, the Indian Housing program is theonly public housing program that requires-t~ participnntSto retire a portion of.the debt themselves. Simply put, hbe Indian Projectcost for less than regular public housing projects. The (D1B's figures stated there was a current backlog of 22,000 units in the pipe- line that had not been completed by the Authorities. Our own investigation of this statement revealed a somewhat different perspective of the housing gipeline. labIa .1 (attacked) details a e~ioaal analesi~ the `i ac Los and roveals that the total is actually only 16,352 units. lie contend that rhis figure is insufficient to have any noticeable effect on the problem based on current needs. Consider the. PAGENO="0473" 467 following example of the needs of one housing authority: The current waiting list for one Oklahoma md ion iousin~ Authority is 2796 applicants. This figure represents unsolicitaJ applicatjo,,~ and in addition, the wait in~ list is extended by' three to four applicants per day. Projected forward, this reveals a total of 2376 new applicants each year. Trend line ar.alvsis of this data shows that at current rates of progression by 1985, this Authority's waiting list will be 12,300. it is easy to see that the se-called backlog could cell be used by one Authority and should net h~ ali~wed to distort the effectiveness of the program. The lark ef complete understanding of the Indian Housing Program by 0MB is further tllu~t~~ted by their r.:cees.,,ded giolishnent of 1n~11an Hal Ui Scrv ice Gadget or sin itiry comet ru t ion. if these budget abol ishsients itand#, the present regulations will require oliver or amendment othe~cfse those projects in the r'ipeli;ie will never see the light of day because we simply won't be able to get them tp construction or be able to build them. The 4832 units under construction at the present tine is the highest total that has ever been achieved since inception of this program and most if not all, these units will leave the pipeline in the next six to eight months. CONCLUSIOl;s In summary, we must question the validity of the figures released by the 0MB. II would appear that the~' have been inflated to justify the abolishme~,t of the Indian - housing Program. The 0MB has proposed to reduce all public housing programs by about ~52. The indian iiausirg Program had already been prc~ra:raed for a 330 cut from the 1981 funding levels and now we are faced with a total ahalisliment of the reaCt cast aft.ctive progrea in IWO. This Leads us to bet ieve that the Indian programs will be forced to burden a disproportionate share of the budget reductions. PAGENO="0474" 468 It is ironic to note that the Native American population, however needy, is not represented by a lobbying group with extreme political power. We must somehow question the fairness of budget reductions that nay only penalize those who can- not rally enough political support to fight them. The federal government must realize that, contrary cc what they iaa~ believe, they dp have a moral and legal obligation to mcet the needs of the Native American population. The government as truarees for the Indian population ~e obligated to act in their best intrests and for the furtherance of their race. When the federal government, as trustees; excersing total control nver the ass~ts, lard and 1 ifest';le of pcrJ lit ~:`fl, shirks the-it re~pnnsibility as Trustofr, then God help the beneficiary. We w~d encouraze the committee to investigate our findings as we are confident that they will support our n~eition. Thank you. Ronald fronan NATIONAL ANCRICAN INDIAN HOCStN( COUNCIL PAGENO="0475" LJ~ NATIONAL AM~RI('AN INr)IAN 1!O(ISEN(; COuNCIL. 1001 N. MOu~ !AI~J sr. * ~.r: wi; ui ii j * s i;:~ p ;;-rp;Io~';L cO~0'Lr;~ (.,u"o:l lily N[V..;. ~LL; 1~l2} *.;.~.1 ,~; tlarch 13, 1981 AVERAGE ESTIMATED TOTAL DEVELOPMENT COST HUD INDRThOUSTh~pRO~~ LGION NO. UNITS NO. PROJECTS ESTIMATED TOTAL DEVELOPMEMT COST AVERAGE PER UNIT 90 3 3,902,388 43,360 I 145 4 7,687,206 53,015 V 200 1 8,237,950 41,190 0 0 0 0 (adjusted) 435 8 19,827,544 45,531 (subtotal) ncluding I,II,IV `1 1,542 47 76,997,411 111 - - III 1,184 59 76,320,368 64,460 IX 2,043 50 143,374,397 70,178 : 271 13 \laska 386 26 16,982,172 32,647,463 62,665 84,579 - --- -- IOTALS 5,861 203 366,146,355 62,472 ~ ------ -- -- -------~ 469 49,933 )ukotas 710 34 ovajo 873- 19 44,550,382 67,321 254 62,748 77,115 PAGENO="0476" 470 NATIONAL AMERICAN INDIAN HOtISIN(; COUNCIl. 1(10) )~. t.1O~i;~1AIN ST. * ;1ATU~ t;to~. * 21!) 2-1 * !;IU(!Th r OF(12102!-!,S( 0MLEX - CA021(1~ c1TY !it/4O\ allot 702) (1(2-1760 1-larch 13, 1981 DEPARTMENT OF HOUSING & URBAN DEVELOPMENT INDIAN HOUSING PROGRAM FY 1981 ALLOCATiON ALLOCATION EG1ON CORTRA&T AuTHOR:7 LOAN AUTHORITY NO. UNI1S HO. UNDER PROGRAM RESERVATION - - 5,570,000 - 67,157,000 1,100 -0- I - 3,256,000 39,257,000 750 55 ready - III &,455,000 77,827,000 1,050 -0- - (3 projects (+ 150 units) - in process) 12,039,000 145,153,000 2,050 50 Seattle 2,418,400 30,823,000 1,050 -0- Anchorage 4,820,600 88,334,000* 925-950 -0- :OTE: Regional offices have been instructed to conmit no more than 50% of the above allocations. Including I,II,IV PAGENO="0477" 471 NATIONAL AMERICAN !NI)IAN 1101 lSIN; (`OITNCfl. 001 N. MOUNTaIN ST. * WA/LOS I/LOG. * SUI /0 2-i * S/LI/NA I' 01000/0/AL COO//MO CA//SO/I CITY. /4CVAOA 83/0/ TELEPHONE 702/ 1/02-1 750 March 13, 1981 REGION BY REGION PIPELINE* ~GION PROGRAM RESERVATIOI4 ANNUAL CONTRIBUTIONS CONTRACT UNDER CONSTRUCTION TOTAL 1,255 64 - 619 - 1,938 Includes I,II,IV) 1,888 40 1,251 3,179 III 1,466 261 1,039 2,766 3,422 1,718 1,269 6,409 342: 117 311 - ` 770 ASKA 870 89 331 1 ,290 ~TALS 9,243 2,289 4,820 16,352 DOTNOTE: Approximately 150 units in Region VIII shown under the Program Reservation total. - ~ to be purged becuase they have-unresolvable problems. 1,195 of 1,888 units shown under rogram Reservation in Region VI should be under ACC by September 30. 1981 because they are linde/I from 1980 monies. Anticipating a construction time span of 9 to 18 months, depending ;pon the region, all units shown under ACC and/or Construction will be out of the pipeline y September 1982. Uoe~ not include FY 1981 allocations. PAGENO="0478" 472 JIThhated Cnbes of flortbwest Tndians May 11, 1982 ~Honorable Morris K. Udall Member of Congress 235 Cannon house office Building 4asington, D.C. 20515 RE: HR 5988 YAKIMA Dear Mr. Udal 1: 1ST VICE PRESIDENT Our testimony was to be given orally but due to lack of CALVINJPEIERS funds and timely co~iisitments, we are sending you our SQCAXIN ISLAND ccrrnents. - 2~DV1CEPRESIDE\T We agree with your comitrnent to HUD Indian Housing. DELRERTFRANK If the program is eliminated we have concerns to be WARM SPRINGS addressed as noted. tie have concern for the growth in unemployemnt at an 3RDSICEPRESIDENT average of about 50% in reservation areas. SNOI-IOMISH Homes lack adequate space, and health conditions have begun to deteriorate as the HiS funding cutbacks in SECRETARY environmental protection has affected our populations. PAULINERIm~S It is necessary that homes continue to be available rn to those of our membership who have need. We must protect that vital right of an Individual to have ASSISTANTSECRETARY adequate shelter. VIRGINIA REAVERT YAKIMA Sincerely, E= A. MAKAR - Connie Skanen, Executive Director EXECETIVE DIRECTOR CONNIE SXANCN UMATILLS Et~CLOSURE: CS/kad cc: ~j~seesll Jim, President Pauline Ricks, Secretary PAGENO="0479" 473 Jiffiliated Cribes of florthwest Tndlans TESTIMONY TO HR-5988 On behalf of the Affiliated Tribes of Northwest Indians, we are proud to have this opportunity to speak to the Indian Housing Act of 1982. The Affiliated Tribes is appalled to learn that the administration has not requested any Indian Housing Units through the Department of Housing and Urban Development for FY 83 and is seeking to rescind the FY 82 funds for Indian Housing that were appropriated by Congress. We would like to bring this Committee's attention the strong need for an Indian Housing Program in the Northwest area. For the last year, we have seen a critical examination of the HUD Indian Housing Program with the professed goal of making the program more cost effective, more simple and improvement of the program's integrity. As so often is the case, it is easier to criticize, but much more difficult to do something about it. To accomplish these goals, apparently HUD is proposing a program based primarily on a Section 8 voucher type of system, under the handle of "Certificates'. We consider this totally unrealistic since such a program depends upon the availability of existing rental units which we all know are simply not available in Indian area. In addition, the certificate program, in our opinion, would be more complex and more costly than the present HUD program. Despite its inadequacies, the HUD Indian Housing Program remains a vital resource in meeting Indian housing needs. HUD had developed over 40,000 housing units on Indian reservations over the past twenty years. Indian Housing Authorities have been established, staffs hired and trained procedures and inter-agency working relationships developed. Tribes and individuals have invested and borrowed to form construction companies in reliance of the HUD program. They and Indians employed on HUD-funded projects will be 18-934 O-83---31 PAGENO="0480" 474 out of work and forced to take their place in unemployment and welfare lines if the HUD program is ended~ Additionally, while a new program alternative is highly desirable, start-up time is bound to be slow as shown by past experience. Thus, we believe that this important program should be kept intact but modified to cut costs, streamline delivery and make it more responsive to Indian needs. However, if this is impractical and unacceptable in this era of fiscal austerity, ATNWI supports the Indian Housing Act of 1982 as a viable alternative to the HUD program. The Indian Housing Act of 1982 shows that the Committee has maintained a history of the Indian Housing effort. To paraphrase a famous quote, "Congressional Committees who don't study their history are doomed to repeat it". It is quite evident there is no danger of that occuring with this Act. For the first time, we have a proposed Indian Housing Program designed for the special needs of Indians and not an aberration of some existing urban program. This proposed Act is a more comprehensive program than is being carried out in that it provides housing assistance for three (3) separate Indian income groups. However, we do have the following concerns: 1). The act should not exclude Indians from being eligible for other federally assisted housing programs. 2). Section 3 (11) limits the programs to federally recognized tribes. Since the bill is a substitute for the HUD program, it will discriminate against those tribes without federal recognition~ The proposed office of Indian Housing Programs, to be established within the Bureau of Indian Affairs, should have the authority to serve, at least, those tribes currently served under the HUD Program. PAGENO="0481" 475 3)~ Tribes, and Individual Indians, may be reluctant to have trust fUnds attached for nonpayment of residual receipts. We would hope that this would be the last sanction used. 4), The Bill is not clear on the minimum income necessary for eligibility.under Title II. We believe this should be stated in the legislation. 5). We recommend the addition of a provision for operating expenses should they become necessary. 6). We believe there should be a limit, or cap, set for the administrative charge which is part of the minimum payment. 7). We recommend under Sec. 3 (9) that the language fOr a standard house be changed to read: `standard housing" means a dwelling in a condition which is decent, safe, sanitary, and modest in size and de~jg~ so that it meets the following minimums --" (Underlining denotes proposed change). 8). Under Sec. 206 (a), we recommend that preliminary planning and administration disbursements be limited to two (2) percent of the total fund amount. 9). Under Sec. 213 (a) we recommend that the language be changed to read, "Tribal and Agency officials and employees who are responsible for the receipt disbursement and accounting for funds under this title shall be bonded in an amount not less than the funds obtained in the initial disbursements, PAGENO="0482" 476 the aver~9e annual balance of the maintenance reserve accounts. No initial disbursement shall be made until a bond satisfactory to the Secretary is obtained. Underlining denotes proposed'change). 10). Under Sec. 203, we recommend that applications include preliminary specifications but not drawings as this may be too expensive for tribal housing agencies that have not received preliminary planning funds~ 11). Minimum standards sometimes become the standard for housing and we would recommend that quality homes be developed for Indians with maximum attention paid to energy efficiency and ease of maintenance. 12)~ We recommend a minimum of a five-year authorization for the act to assure a continuing commitment for housing assistance to Indians. Some of the features of this bill that are particularly commendable include: 1). This housing program was obviously designed for Indian Tribes, it is not an adaption of an urban program to the reservation setting. It is a far less compTicated program than the HUD program, and the ease of administration alone will save money and speed up delivery. 2). The payback of residual receipts to the Indian Housing Finance fund will assure a continuing program of housing assistance to Indians while the annual appropriation request to Congress PAGENO="0483" 4717 can be decreased as the amounts returned to the Fund increase. 3). It provides a means for middle-income Indians living on trust land, to finance housing from the private market, 4). It consolidates the funding and administration of the program into the Federal agencies and Congressional Committees traditionally responsible for Indian Affairs. 5). It provides for substantial rehabilitation, as well as acquisition and construction, for Indian families with an ability to pay a minimum amount for housing, 6). Legislative enactment of the `Indian Housing Act of 1982", would constitute a fairly comprehensive plan, along with other housing assistance programs, to eradicate the deplorable and unacceptable Indian Housing conditions which presently exist in this country, The fact that this Congress has made this effort to continue the existing program as well as to develop an alternative to it, shows a deep commitment and special concern which is especially important because of the trust responsibility the United States Government has with Indian Tribes. Without that commitment, overcrowding and substandard conditions will continue to worsen and improvements in health and sanitary conditions will decline, It is truly grim to realize that the progress that has been made in improving living conditions for American Indians and Alaska Natives will be so quickly and devastatingly ended. Without your commitment, there is no safety net. PAGENO="0484" 478 SALT RIVER PIMA - MARICOPA HOUSING AUTHORITY RI. 1,BOX 215 * SCorrSDALEARIZ.85258 * PHONE 949-7234 EXT.381 May 12, 1982 Congressman Morris Udall Room 335 House of Representatives Kannon Office Building Washington, D.C. Dear Sir: We would like to thank you for the opportunity to present our recommendations and improvements on the 1f.R. 5988 proposing The Indian Housing Act of 1982. We feel that The Indian Housing Act of 1982 is in many ways advantageous to the Indian Tribe. However, we feel that the Bill in its present draft would need improvements. Therefore, we have attached a list of our recommendations concerning the proposed legislation. Respectfully, SALT RIVER PIMA-JIARICOPA HOUSING AUTHORITY o4?4 ~2/~ Aaron Osife Laurie Thom~-s~ Coma Ray RESIDENTIAL TRAINING & COUNSELING PROGRAM Attachment PAGENO="0485" 479 Salt River PIMA-MARICOPA INDIAN COMMUNITY RT. I BOX 216 . SCOTTSDALE, ARIZONA 85256 * PHONE (602) 949-7234 TO : Eunice Sampson Coordinator, R.T.C.P. FROM Aaron Osife, Laurie Th~as, Lo~&Ray Trainer/Counselors DATE: May 12, 1982 SUBJECT: H.R. 5988, PROPOSED INDIAN HOUSING BILL RECOMMENDATI ONS Attached is the listing of our recommendations on the proposed Indian Housing Bill (H.R. 5988). At tachment cc: Herschel Andrews, S.R.P.M.I.C. President Filmore Carlos, Executive Director, Housing Board of Commissioners, Chairman Memorandum PAGENO="0486" 480 STATEMENT (page 5) SEC. 3. For the purposes of this Act, the term - (10) "Tribal Housing Agency" means that entity or administrative unit of the tribal government which has been designated or established by the tribe to adminis- ter housing programs under this Act; Term Tribal Housing Agency would be confusing as to which governmental agency the Bill is referring to. We recommend that the term "Tribal Housing Agency" be changed to the Tribal Housing Department. STATEMENT (page 6) SEC. 101. (a) There is hereby established an Indian housing improvement program for the purpose of making grants or providing assistance to preserve existing housing, make repairs, and construct or acquire stan- dard housing for Indians. The type of program would cause less confusion as which Housing program would be eligible for assistance. We recommend that the grants be provided to preserve existing housing; shall specifically name other housing programs as HIP, FHA, HUD. STATEMENT (page 6) SEC. 101. (c) (1.~) have repairs or new construction performed di- rectly by the Bureau of Indian Affairs. The term "repairs or new construction" are not clearly def i ned. We recommend statement specifically define the type of construction that will be performed by the B.I.A. STATEMENT (page 7) SEC. 102. (a) (3) finance the construction or acquisition of new standard housing where severe need is demonstrated and it-is established that there is no reasonable prospect that standard housing can be financed from other sources. We recommend that the paragraph phrase as such - finance the new construction or acquisition of new standard housing where severe need is demonstrated and it is established that there is no reasonable prospect that standard housing can be financed from other sources. PAGENO="0487" 481 STATEMENT (page 8) SEC. 105.There is hereby authorized to be appropri.- ated, without fiscal year limitation, not to exceed $30,000,000 in each fiscal year beginning in fiscal year 1983 for the purpose of carrying out the provi- sions of this title. We recommend that the phrase be changed from not to exceed" to not less than in order that the appropriated funds of $30,000,000 b~ granted each fiscal year. STATEMENT (page 10) SEC. 203 (b) Applications for funding shall be evaluated and approved, subject to the availability of appropriations, based upon, but not limited to, the following criteria-- There is a question on who will be responsible for eval- uations and approval of the applications for funding. We recommend this subsection state who will be responsi- ble for evaluating and approvihg. STATEMENT (page 12) SEC. 206. (a) An initial disbursement may be made from the fund, under a project agreement, to cover costs in- curred by the agency for preliminary planning and admin- istration: Provided, That this initial disbursement shall not exceed~~ö,000 or 2 per centum of the total funding of the project. We recommend that the initial disbursement phrase should be changed from "shall not exceed" to not less than 2 per centum of total funding of prOject. STATEMENT (page 30) SEC. ~02. (b) The Secretary shall provide for the establishment of a training program to develop an understanding by the participating families of the respective roles and respon- sibilities of the tribal housing agency, the Federal Govern- ment, and the participants under titles I and I . Such program shall include basic home maintenance training for participating families. We recommend that the responsibility of the tribes be given an option to choose the training program that benefits their local needs, whether it be Indian or Non-Indian. PAGENO="0488" J~!4cofee (~e41~'Va&i~,& ~4c~s 1~ March 30, 1982 The Honorable Morris Udall Chairman, House Committee on Interior and Insular Affairs 1324 Longworth House Office Building Washington, P. C. 20515 Dear Congressman Udall: The Creek Nation wishes to thank you and the other members of the Committee for your work and efforts concerning the "Indian Housing Act of 1982". We are convinced that the Department of Housing and Urban Development intends to terminate the Indian Housing Program as we know it. The HUD options we have reviewed to date are totally unacceptable to the Creek Nation and would leave the Creek Nation incapable of housing its members. The Indian Housing Act of 1982 fills the many gaps we as tribal leaders must confront daily. We wish you godspeed and will assist you in every way to bring the Act to reality. Sincerely, ` Claude A. Cox Principal Chief CAC :ec cc: Oklahoma Congressional Delegation 482 d ~ ~iVat~m ~ ç4~~/ `~`øc,44~v-.?~øay 75a1 .2~4 56 58O~ ~~4ee. ~&~zhm~a 741147..Q187568700 PAGENO="0489" 483 I); TRIBAL COUNCIL Organized April 18, 1918 UFF~C(RS (R.nis.d Constitufiun and By-Laos, January 6, 9591 ~ RED LAKE BAND of CHIPPEWA INDIANS Phone 218/679-3341 RED LAKE MINNESOTA 56671 The Honorable Morris K. Udall Chairman Committee on Interior and Insular Affairs U.S. House of Representatives Washington, D.C. 20515 Mr. Chairman and members of the Committee, my name is Roger A. Jourdain, Chairman of the Redlake Band of Chippewa Indians and I am pleased to submit this testimony on the "Indian Housing Act of 1982" on behalf of our tribe. The Redlake Band of Chippewas wish to go on record complimenting you and other members of this Committee for producing a housing act that is comprehensive, innovative, and addresses the needs of Indian people in Indian areas. We feel that the approach to Indian housing envisioned in H.R. 5988 will simplify the housing program and would for the first time address the Indian housing problem directly rather than as a spin-off of an existing program. We feel that this is long overdue and we congratulate the Interior Committee for developing this proposal. Although we have an immediate need for some 150 units, we have an additional need for some 200 to 400 units due to the substandard conditions of many of the present reservation dwellings. As you know, in the past we have been looking to the Department - RED LAKE ENTERPRISES - Red Lake Indian Sawmills (70 Years) / Red Lake Cedar Pence Plant / Chippewa Arts & Craft Shop Red Lake Housing Industry / Red Lake Pishing Industry (57 Years) . - Home of the Pamous Red Lake Wa)Ieyes PAGENO="0490" 484 The Honorable Morris K. Udall Page Two of Housing and Urban Development (BUD) program to supply much of this needed housing. Unfortunately, it appears that the BUD Indian housing program is coming to an end. It is our under- standing that the Administration plans to stop the present Indian housing program in HUD. We are already frustrated by the slow downs that have occured in the BUD program and should the future HUD Indian housing program be terminated, we fully support H.R. 5988, the ~Indian Housing Act of 1982." Along with our support we do have the following concerns and suggest the following alternatives: 1. We feel the bill should contain a "sunset~ provision in Title IV. The present BUD program does not provide for a periodic re- view and update which has resulted in several administrative pro- blems and has caused several parts of the program to become out- dated. Some provision in the bill that would allow for periodic review is important. 2. We strongly discourage the attachment of tribal trust funds in lieu of non-payment of financial obligations. We feel that this section should be re-written in order to make it clear that attachment of tribal trust funds can only be attempted as a last resort and there should be several steps listed that must be taken prior to even considering this sanction. Tribes without tribal trust funds face no similar risk. We feel the risk should be uniform and the sanctions imposed on tribes with trust funds should be the same as those tribes without trust funds. PAGENO="0491" 485 The Honorable Morris K. Udall Page Three 3. We applaud the bill's attempt at cutting as much red tape and paperwork as possible, but believe that you could reduce admin- istration even more by not requiring an annual income determination but by making this an every other year requirement. We also suggest that should a family have the good luck to increase their income substantially in any one year that their monthly payment would be increased gradually on some acceptable percentage basis. We further suggest the the Committee may want to consider a monthly payment based on a flat fee determined by the size of the unit. This would make administration and collections much more simple and straight forward. 4. We believe the authorization for the Housing Improvement Program (HIP) is too small and should be increased to at least $40,000,000 per year. 5. Section 103 is a little unclear to us concerning the possible sale of trust land. We suggest that this be re-written to make it clear that it is not intended to sell trust land. In summary, enactment of the "Indian Housing Act of 1982" will for the first time allow the tribes flexibility to build housing for their people in a number of income ranges. Because of the unique status of our lands and the historical nature of our governmental structure and relationship with the Federal government, we feel it is a Federal responsibility to assist us with decent shelter. H.R. 5988 addresses Indian housing needs within the context of our trust land and our special relationship with the Federal Government. We feel this is long overdue and again congratulate the Committee for addressing the Indian housing situation. PAGENO="0492" amenndian architecture Thank you for providing the opportunity to express an overview of the Indian Housing Bill, HR5988. I offer the following overview as an enrolled Northern Arapahoe (interested party) and as an Architect, who has six (6) years of experience in delivering homes to Indian people via the current HUD and BIA Product Delivery Processes. Indian Housing Bill, HR5988 goals are admirable and potentially far reaching in providing needed housing units for "Our People", the many tribes across this country. Its most positive trait is the aspect of Tribal groups having more direct control in all the aspects needed to deliver a housing unit from concept to the ground for their respective Tribal Constituents. The following suggestions are offered to make the bill better. Section 3, (9), Page 3-4, "Standard housing" ~g~sted ch~g~: (iii) The plumbing system includes a properly installed system of piping. Fixtures and worksp~q~ for kitchen area should consist of sink, stove and refrigi~itor with a 20 inch inclusive counter height work space between these kitchen utensils. A partitional bathroom with lavatory, toilet and bath/shower unit with optional choice of natural ventilation (window) or i~echanical vent Reasons: A direct personal review of BIA-HIP housing has shown a ii~k of design in a workable kitchen format which usually lacks in adequate counter space. An expressed Indian client preference is to have natural ventilation (window) for the bathroom. In most cases for the BIA and HIJD house the mechanical vent equipment is specified for minimum cost thus they are noisy and tend to fall apart. (w) The electrical system includes wiring and equipment properly installed to efficientjy and safely supply electrical energy for adequate ligh~Iiig and for operation of appliances Reasons: A direct personal review of BIA-HIP housing re~ai~.thetrdninizn itiipursued in specified electrical equipment, i.e. conduits, outlets, etc., and a vital area that should be looked at is 486 Deborah A. Broken Ropa Indian Affairs Staff U.S. House of Representatives Committee on Interior Insular Affairs .~ House Annex 1 - Room 422 Washington, D. C. 20515 REFERENCE: Review of Proposed Indian Housing Bill, HR5988 Ms. Broken Rope: INC. 116 east 22nd street minneapolis minnesota 55404 area code 612 871-1700 PAGENO="0493" 487 Deborah A. Broken Rope Indian Affairs Staff 16 April 1982 Page2 equipment such as electric/Gas-Lock-Timers for the electric and gas water heaters and thermal Recovery System for the electrical or gas furnace systems used to heat the house. This "new' equip- ment would make the equipment more energy efficient thus cost less to maintain for tribes or individuals living in the housing units. (v) Family size per dwelling is to be within the range of not less or more than: I. Five hundred and seventy square feet (570 sq. ft.) and one thousand and one hundred square feet (1,100 sq. ft.) for a family of up to four members. II. Eight hundred and fifty square feet (850 sq. ft.) and twelve hundred and fifty square feet (1,250 sq. ft.) for a family of five to seven members. III. One thousand twenty square feet (1,020 sq. ft.) and one thousand and four hundred and fifty square feet (1,450 sq. ft.) for a family of eight or more members, Reasons. The standards as stated in the present bill are far short in meeting absolute minimal comfort level square footage need of the number of people expected to live in these units. An example of square footage needed for one person follows in one type of space: i.e. bedroom, one person standing - 12 feet. 1 bed 1 minimum closet 1 chair 1 dresser Minimum 3O7~ circulation __________ TOTAL 21 sq. ft. 6 sq. ft. 3 sq. ft. 4 sq. ft. 46 sq. ft. 15 sq. ft. 60 sq. ft. 60 sq. ft. x 4 (people) 240 sq. ft. Minimum bathroom-average 40 sq. ft. Minimum workable kitchen 70 sq. ft. Minimum Dining 60 sq. ft. 142 ~ ft 4 x 307~ circulation 72 sq. ft. q. Maximum Living 120 sq. ft. 264 sq ft 4 x 307~ circulation 144 sq. ft. ___________ Absolute Minimum sq. ft. needed - 756 sq. ft. to serve 4 people. No ~q~are footage for storage included which is a highly desirable feature that Indian people want. No square footage for weather entry to cut energy cost, etc. Also proposing only a minimum to "those technocratic technicians who ever they may be in the future within the 0MB" that put annual budget line item appropriation together would estimate to the minimum dollars thus never appropriating the PAGENO="0494" 488 Deborah A. Broken Rope Indian Affairs Staff 16 April 1982 Page 3 necessary funds for our people to meet their basic needs. Title 11: INDIAN HOUSING FINANCE FUND This is a vital area that needs experienced handling. Does the BIA have the expertise to handle this sector of the housing delivery-pro- cess,~or providing necessary start up funding or ability to offer start up technical advice to newly created Tribal housing groups. Section 209, (2) Make Monthly Payments (3) accept respon- sibility for all utilities and maintenance - if a tribe does not receive adequate funding to provide a safe, decent and energy efficient hous- ing, they might put a tremendous burden on their own people. A more carefully worded clause should be worked out on tribal coliability and responsibility of the housing unit it subjugates its tribal mem- bers to live within. - A stronger clause to insure Indian involvement from design to construc- tion and administration should be included in the law. A general concern is that if Indian people are to initiate a bill on Indian housing we should take steps that guarantee to us a safe and quality home rather then accept, in my opinion of the current implica- tion of the bill as it is presently worded, a second class environment. We should demand a housing iunit that will be adequate to meet our basic living needs, address our varying climatic conditions, and have empathy to our respective cultural life styles. Respectively submitted, N ROADS Inc. b~ennis Sun Rhodes DSR:as cc: Virginia Toews Rick Farrell Forrest J. Gerard Ada Deer Louise R. Bruce La Donna Harris Alfred Ward Joe Oldman Betty Blue Shirely Plume Thomas Hodne - THE Hodne/Stageberg PARTNERS, Inc. PAGENO="0495" -1 18-934 0-83-32 489 PAGENO="0496" 490 IN 1t1~I'I.Y R}w};R TO: PUEBLO DE ACOMA THE SKY CITY P O.Bo~309 ACOMITA. NEW MEXICO 87034 OFFICE OF THE GOVERNOR TELEPHONE 5051 552.6606 RESOLUTION NO. TC-OCT-20-82-O5-O--4 SECOID LI G3/E2IIOE `~~` THE TRIBAL COUNCIL SUPPORTS PASSAGE OF COMPANION BILLS HR. 5988 AND ~cr~Y5 S-2847, THE INDIAN HOUSING ACT OF 1982. (ACOMA NEEDS 996 UNITS ESTIMATED COST OF $49,760,160 THROUGH 1991.) At a duly called meeting of the Tribal Council held at the Pueblo of Acoma on the 20th day of October , 1982, the following resolution was adopted: WHEREAS: Sec. No. 1 The Acoma Pueblo is an Indian Tribal organization and has full power and authority to act for the Tribe; and, Sec. No. 2 The Acoma Tribal Council exercises the rights and powers to negotiate with the federal government; and, Sec. No. 3 It is the policy of the United States in keeping with treaties (February 2, 1848, 9 STAT, 929) understanding and long established custom to provide certain necessary services and facilities to Native American Indians; and, Sec. No. 4 The Acoma Tribal Council acting in and for the authority of Pueblo of Acoma takes cognizance in addressing the housing needs for the community and Acoma people; and, Sec. No. 5 Congressman Morris Udall and Senator Thad Cochron have intro- duced bills providing for an `Indian Housing Act of 1982" to provide for an Indian Housing Program and for construction and financing of housing for Indians; and, Sec. No. 6 The bills were drafted with input from Indian country, and provide for the first time a legislative answer to the problems of obtaining, financing for the construction of private homes on trust lands, a statutory basis for the operations of BIAs Housing Improvement Program, and an alternative to overly long term federal committments in the construction of housing for low and moderate income Indian families on the Pueblo of Acoma Land Grant; and, PAGENO="0497" 491 Tribal Resolution No.TC-OCT-2o-82-05-Q-4 Page Two (2) Sec. No. 7 There is no direct connection between the Companion Bills and the ongoing Indian Housing Program of the Department of Housing and Urban Development though enactment of the proposed Act would assure continuation of the Indian housing effort were HUD Program to be curtailed; and, Sec. No. 8 The Bills' provisions giving flexibility to elected Tribal governments in the structuring, establishment, or designation of "tribal housing agencies' are supportive of the self- determination (PL 93-638) policy; and, Sec. No. 9 On Acoma Pueblo most of the homes are 50-400 years old, and are: Sub-Section (1) 20% are deteriorating. Sub-Section (2) 46% are dilapidated. Sub-Section (3) 62% are overcrowded. Sub-Section (4) 36% are without water. Sub-Section (5) 50% are without sewer. Sub-Section (6) 59% are heated with wood fuel. Sub-Section (7) 59% are without hot water. Sub-Section (8) 50% are lacking one or more plumbing facility. Sec. No. 10 Housing ranks #5 on Tribal priorities long range plans, and needs 996 housing units by 1991 with the estimated cost at $49,960 = $49,760,160. PAGENO="0498" 492 Tribal Resol ution No. TC-OCT-20-82-05-O-4 Page Three (3) NOWTHEREFORE BE IT RESOLVED: Sec. No. 1 That, the Acoma Tribal Council does hereby endorse the passage and enactment of H.R. 5988 and S-2847; and, Sec. No. 2 `It is time we acted to follow the principles of our founding fathers who wrote in the Constitution that we must promote the general welfare.". Governor, Pueblo of Acoma 1st Lt Governor .7 / .1 .T2~ ~-~` -2nd Lt~~iernor ~~1id~ Head~~unci lman ~%~~4Z~/7LL/i - 1. Tn a') Secretary ouncilman ATTEST: PAGENO="0499" 493 Tribal Resolution No. TCOCT-2O-82--05-O-4 Page Four (4) CERTI FICATION I, the undersigned, as Governor of the Pueblo of Acoma, "Sky City", hereby certify that the Acoma Tribal Council at a duly called meeting of the Tribal Council and the people of Acoma, convened and held on the 20th day of October 1982, at Acoma Pueblo, New Mexico, approved this resolution, a quorum being present, and that 8 voted for, and 0 opposed. Governor, Pueblo of Acoma ATTEST: Trib~l Secretáry-~ PAGENO="0500" 494 Prepared statement of Rick Farrell, Salish and Kootenai Housing Authority ANALYSIS OF PROPOSED BILL 0. INTRODUCTION Sec I. No comments Sec 2. No comments Sec 3. (1) There is no way to account for self employment income loss (net income) such as farm income type. (9)(IV)The reference to use of an applicable code could set a dangerous precedent in areas (or Reservations) where the Tribe has no code and does not want to allow other code to be ruling. Tribes or Housing Agencies should be able to set the standard as is done under contract now in many cases. (9) (V) As a comment, not a criticism. This clause could work against us by families being able to manipulate the "standardness" of their situations by adding more people even though the house might be new and in excellent shape. (10) As a comment; it is critical that one local agency be reorganized to handle all these programs, if not the existing HIP and MUD management programs. This would lessen confusion, administration, and problems associated with the funding (when directed to one agency). I. INDIAN HOUSING IMPROVEMENT PROGRAM sec. 101 (c) It should be spelled out exactly under what circumstances, though it maybe understood, that the Secretary can use direct granting, econtracting, and management powers. Under this he could by-pass existing Tribes or Agency Officials any time. (d) The administration charge is an excellent option here, since insurance might have to be held by the Agency. Shãuld be up to the discretion of the Tribes since they may decide to cover the administration expenze as part of program costs. Sec. 102 (a) (3) The word "new" should be eliminated since older existing standard housing might be fine. Sec. lO3Nô comments Sec. 104 Excellent clause to prevent profiting at the expense of HIP. Some thought will have to be given to this for special cased where the sale of unit would not bring a value equal to that added by a HIP grant. In such case appraisals should be conducted to determine what is eligible for a family to get out of the house on their own (whAt would l~e equivalent to what they had in it before the HIP grant). Sec. 105 This catagory may need additional funding as is explained in general comments. II. INDIAN HOUSING FINANCING FUND Sec. 201. No Comments Sec. 202. The Tribal Housing plan is an excellent idea. It can be used to assess need and kinds of programs that can be dispersed locally and nation wide. It will reveal a great deal about the program and its fundtion. Sed. 203. (a) If this means that the dollar amount for a designated number of units is negotiated out during the application phase, it is fine. I would be leary of identifying with the "prototype cost~, system used (and abused) under HUD. Why is the production method left open in the application phase, but spelled out later in section 215 as "bidding" which is indicative of the convention method. I think it was meant to be left open for local alternatives, but this one PAGENO="0501" 495 entanglement leaves an element of doubt. (b). I dislike the use of the priority clause (1) since it allows tribes who may have not received funding due to lack of capability a chance to gain e~ those who received funds and were in good management condition. It appears to penalize good management. Sec. 204. No Comments Sec. 205. This section should be changed since it is not being received well by the Tribes. Less strong wording could still obtain an equally effective result. Requiring some kind of Tribal support to guarantee payments by the residents is recognized not only as necessary to gain legislative support and continue the Indian Housing Program, but is also useful and effective for local operations and credibility. The Tribes are opposed, though, to any kind of language that sets a lien on assets, since it would be setting a precedent that could be dangerous. Instead of executisg an Agreement that would pledge their assets, they would prefer to sign a simple Agreement binding them to a specific performance that they, upon default, could be forced to honor by means of a lawsuit. This Bill could very well be unacceptable if this wording is not changed. The 30 day period for notification and responde could be extended to 60 or 90 days. Sec. 206 Cc) Limiting the time to get units under contract to one year might be unnecessary or uncalled for, but is an issue for consensus and not critical. As long as the release clause, is continuous, it will enable a justifiable delay time to be worked out. Sec. 207 No Comments Sec. 208 No Comments Sec. 209 No Comments Sec. 210 No Comments Sec. 211 No Comments Sec. 212 (b) The Indian Health Service should have only Consulting connections to the Housing Agency for construction and only for water and sewer services, not for entire con- struction inspection as is stated in this section. It should be clarified here exactly what the role of INS is expected to be, otherwise the IHS might be able to assume more re- sponsibility in the entire consturction sequence and imbalance the true authority over the project. Here the INS role must be reduced significantly or left entirely to the Tribes choice for the level of involvement. Sec. 213 (b) Alternative types of surety should be acceptable, as well. This should read that the agency shall require surety in approvable form from its contractors." There are currently other usable forms of surety equally as effective and reliable as performance bonds, and are easier to obtain for minority contractors. Limiting surety would mean a limit on consturction methods, of local development creativity, and a resulting potential cost savings that could be passed on through to the agency. Cc) Warranty bonds should reflect alternative types of surety and should be left up to the Local Agency for determination of what amount and what time limit. There is a possibility of cost savings if this is adjusted case by case. PAGENO="0502" 496 Sec. 214 No Comments Sec. 215 Contracts should not be limited to "bidding~ which is indicative of a conventional construction method. Bidding does not necessarily guaranty the lowest cost ot the Project nor the best product. Sec. 216 A clause should be added to limit the time a person could repeat assistance in this title. (ie. five years). Sec. 217 No Comments Sec. 218 No Comments Sec. 219 No Commen~ts Sec. 220 No Comments III INDIAN HOUSING LOAN GUARANTY FUND This program is new and long over due for the Reservation. It is highly desirable and is acceptable in the form as printed in the Bill. IV MISCELANEOUS Sec. 401 No Comments Sec. 402 (b & c) The training aspect is an exceptional idea since it will be needed constantly to keep the Housing Agencies informed and trained on the program function. I don't believe 1% will adequately handle the need for proper training for both BIA or Agency staff. It will have to be 11/2 or 2% at the very minimum. This section will end up being the most critical and relied upon, so should receive the highest priority. GENERAL COMMENTS 1.) KEEP THE PROGRAM SIMPLE At all costs we must keep the program as simple as possible, leaving a lot of the management details up to the local Housing Agency. A general rule of thumb that seems to help me keep this into perspective (and have learhed from operating the current HUD program) is that if there is not one way to do something (or one way that must be) in the program that has a reasonable consensus and agreement from the Tribes, then leave it out or up to the local agency to conduct as they wish or can convince the Secretary. There is a prevailing and natural fear that this program (even though it is well intentioned and even born with this precaution built in) could get out of hand and become as cumbersome and confusing as that with which we now struggle. Even though I realize and am confident that the focus in the creation of this bill was to avoid that band of bureaucracy and attitude, there is always a chance, if we are not alert, straight foreward, and ridiculously preventive now, that this could happen again. Even though the BIA is a natural to handle this program, and it is defined from the start to be uncom- plicated, the BIA does not have the best reputation for dealing with programs of this magnitude. There is some justification to be wary when there is so much more proceduralmaterial to come and the organization is not as yet in place. I am not totally convinced that t~e door has been satisfacto- rially closed to prevent a return of what many of us would like to see contained once and for all. The following are concerns I have that if not sufficientl~r controlled either now in the bill or later in drafting of handbooks, regulations, PAGENO="0503" 497 or statements of operation, could lead to repetative mistakes. Please take note that these are only items I am seeing that are indicators to future problems, and not direct criticisms or obstructions to my acceptance of this bill or its concept. I just want this program to be the best that it possibly can be. (a) In considering the above concern with the BIA, I am cautioned with the control of the program at the Central level. It if han- dles the number of decisions, reviews and approvals that the bill alludes it will, there will be a tendency either to expand, or to limit the range of flexibility that can occur at the local level. Both are bad side-effects. (b) Rent/payment calculations and reexaminations (as a result of a percentage system) if not controlled will lead to heavy management that presently no one wants to pay for (subsidize). Caution should dictate limitations to administration if funding support is anticipated to be low. (c) As was mentioned in the analysis of the bill, any relationship of cost allocation and number of units could easily become a formula that reeks of "prototype cost" and should be avoided. (d) Giving the Indian Health Service the control over inspectton that is interpreted in the analysis is also dangerous. Not so much because they wouldn't want it but because they are not expert enough to handle anything but sewer and water services, and they could not assume the responsibility along with the authority. There are individual problems at present with the INS and the local area should- have the option to request the involvement of the INS and determine the level of that involvement. (e) In specififying that "bidding" should be used, there is some indication that production methods will be limited. This kind of limit leads to use of a procedure which would be at a minumum suggested for use. Some local areas may have an all-around better way and be able to avoid such prodedures. They should not be dictated. (f) The types of b*nding should be left up to the Local Agency as long as it is sufficient to protect the project and approvable by the BIA. (g) The review of plans and specifications should be for yen- fication only, not in any repetative sense that would duplicate what has been conducted at the Local level. These submittals should be used for program compliance only and not for ` the protection of the Housing Agency or the Tribes." (h) Codes must be kept simple and never controlling where they bind us to outside jourisdiction or work against us in trying to save program costs and curtail confusion. 2.) INCREASE TITLE I EMPHASIS At this point it~ appears that the Title 1 segment of the program will be receiving much more attention that it is emphasized in the program proposal. This stems from two basic reasons: there may be more families to be serviced in this catagory and the program versatility is such that it may be the most effective and attractive to work with. According to our data, incomes of the families applying for housing assistance are such that Title 1 would have to pizt up most of the need1and the funding level and emphasis do not reflect that, this means essentially that the low, low income groups are being left out more, and are the ones (especially elderly) that most need the help. On our Reservation PAGENO="0504" 498 there are significant number of Low Rent (MUD) units to alleviate the problem some, but I can anticipate on others that these people will be left out. I would recommend that we leave this title open for interpretation in order, to be diverse enough to conduct imaginative development and management approaches (such as rental housing). This will better assist very low income families and prevent what could be a move to place people into an ownership position when they are not willing or able to assume the responsibility. This increased emphasis will necessitate increased funding. If a very low income family doesn't have an existing house to rehab and the only available assistance is new construction - how will that family afford the maintenance, for instance? We could be placing people in a position that they and we will both regret. 3.) MINIMIZE EFFECT OF ADDING PROGRAM We must be aware that, even though we are supporting and promoting a new and much more acceptable program and concept for Indian Housing,- its implementation will be an additional responsibilty to are alteady over loaded system (MUD programs administered locally) and will place Tribes and Local Agencies in stressful positions. Any consistancy, allignment, or phasing-in could alleviate this strain and get more Agencies off on the right foot. Recognizing that this situation exists will be important in eliminating unnecessary confusion and will be to the benefit of all concerned. 4.) MORE CONSULATATION FROM TRIBES Up till now (and for unknown reasons that I will not challenge) the local Tribes and Housing Authorities have not been consulted as to the design of thisbill. It is extremely important that, as the program requirements and guides are written, the local Agencies be included and consulted along the way for their advice and direction to insure that the program reflects their needs and requests. 5.) MODIFY TRIBAL GUARANTEE CLAUSE The tribal guarantee for replenishing the revolving fund by the Agency should be changed as explained in the earlier "analysis of the bill." The Tribes are not readily willing to accept this. - PAGENO="0505" 499 MONTANA INDIAN TARGETED JOBS DEMONSTRATION PROJECT P.O. B0X387 * BROWNING. MONTANA59417 TWO(2)YEAR PHONE(406)3385525 DEMONSTRATIOPIPROJECT AOM~NIBTUTION EXECUTIVECOMMITTEE CARLB.$CHlLXT,~.,j,.oj,~,, ~ April 28, 1982 VURRE1RUNNV~GFISHER.V~V,P,C,(d~ CAROLVNAUUARE.E,V$.~,,t,y STEWARTAUGARE,Ofte~ The Honorable Pat Williams U. S. House of Representatives Washington, D. C. 20515 Dear Congressman Williams: The Montana Indian Targeted Jobs Demonstration Project strongly opposes the weak Indian preference language contained in the proposed Indian Housing Act of 1982. Since you are co-sponsor of this bill, we are hoping that you can revise Section 215 50 it provides for the same strong Indian preference language that is contained in all other Indian legislation; that is, the Indian preference requirements imposed by Section 7(b) of the Indian Self-Determination Act. MITJDP, funded by HUD and five other federal agencies several years ago, uses the federal Indian preference requirements, as well as those of the tribes, to assist Indian construction contracting firms develop and become financially viable. It has been an extremely effective program. During the period when there was significant construction on the reservations in Montana, we had helped over 60 Indian firms get started. This ensured that federal dollars spent on the reservations stayed there and turned over three or four times to help promote Indian economic development. Most of the work done by the Indian contractors was on Indian HUD housing. Yet, if the language in the proposed Indian Housing Act is allowed to go through as written, it will effectively destroy this valuable program we have established and its vast impact on reservation economic development. When I testified before you and the other members of the Interior Committee in November of 1979, we agreed that Indian preference was an important means of promoting Indian economic development. MITJDP took that concept and showed how effective it can be in practice. On the other hand, we understand that Indian Housing Authorities are claiming that Indian preference adds to the cost of Indian housing or causes the job to be done with lower quality. We question whether they have any documenta- tion to support this compared to the hard proof we can present of the value of Indian preference as a tool for economic development. PAGENO="0506" 500 The Honorable Pat Williams April 28, 1982 Page Two I know that on our own reservation most of the projects that have gone belly-up have been handled by non-Indian firms. The same goes for quality. The Indian construction contractors know they have to live on their reservations and face the tenants of those houses day-in and day-out. Therefore, they toad to york harder and have greater pride than do contractors who slap together some houses and then never show their faces on the reservation again. I know I speak for more than just myself. All of the tribal governments continue to be strongly supportive of HITJDP and have appreciated the contributions it has made to Indian economic development. In light of the overwhelming evidence showing the value of Indian preference, combined with our own experience that Indian preference contributes to increased efficiencies and quality, we believe that the proposed language in the Indian Housing bill is not in the best interests of the Indian community. Since you are a co-sponsor of the bill, I hope that you will be able to use your position to change this language. While the strongest Indian preference language possible should be included, we would not object if the bill provided or just implied that procurement under the bill is covered by Section 7(b) of the Indian Self-Determination Act. Thank you for your long-standing support of Indian preference and of our Nontana Indian Targeted Jobs Demonstration Project and for your consideration of our request. We would appreciate it if you could include this letter in the hearing record on the Indian Housing Act bill. Sincerely yours, Carl B. Scuildi Executive Director CBS/mm cc: The Honorable Morris Udall PAGENO="0507" 501 ZIONTZ, PIRTLE. MORISSET. ERNSTOFF & CHESTNUT AT~ORNEVS AT LAW May 13, 1981 Frank Ducheneaux, Esq. Special Counsel, Indian Affairs House Committee on Interior and Insular Affairs 422 House Office Building, Annex I Washington, D.C. 20515 Re: FY 1982 Indian Housing Program Dear Mr. Ducheneaux: On behalf of the Colville Housing Authority we have been writing to various members of Congress in order to preserve the Indian Housing Program. Enclosed for your information is a copy of the letter and comments we sent to members of the Washington Congressional delegation, Senate Appropriations Committee, Senate Select Committee on Indian Affairs, and the House Interior and Insular Affairs Committee. We welcome any comments you may have concerning these letters, and wish to thank you for the information you provided us concerning the Supplemental Recission Bill and funding for the Indian Housing Program. Very truly yours, ZIONTZ, PIRTLE, MORISSET ERNSTOFF & CHESTNUT `Samuel J. Stiltner~ SJS/mg Enclosure cc: Harvey Moses Sr. Executive Director, Colville Housing Authority Norris Palmanteer Colville Business Council PAGENO="0508" 502 ZIONTZ. P~RTLE. MORISSET. ERNSTOFF & CHESTNUT SSESESIIC1$E SEATTLE. WASHINGTON 98104 May 11, 1981 The Honorable Dale Bumpers 3229 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Bumpers: On behalf of the Colville Housing Authority of the Colville Confederated Tribes, I am enclosing the Housing Authority's comments on the cost-effectiveness of the Indian Housing Program. As the comments also demonstrate, it is simply not true that there is a construction backlog in Indian housing programs. These programs have been managed expeditiously and in a cost-effective manner. A transfer of funds to other HUD programs, such as the Comprehensive Modernization program, leaves reservation Indians out entirely. Indian housing authorities also serve a dire need for housing on remote Indian reservations for which there is simply no alternative source. Moreover, support for Indian housing authorities represents support for cost-beneficial Indian self-government, long supported by both Republican and Democratic administrations and legislators. As President Reagan stated in his campaign: I can think of no better example of the problem flowing from paternalistic big government than the events that have happened to J~merican Indian communities. I would support Indian government through the fulfillment of treaty obligations and financial assistance, and not supplant Indian government by federal government bureaucrats. PAGENO="0509" 503 For these reasons we urge you to vote to preserve the HUD Indian Housing Program in the FY 1982 budget, in accordance with the findings of both the Senate and House Reports on BUD appropriations bills. Maintenance of Indian self- government and support for safe, decent housing on res- ervations no longer should fall prey to bargaining within "big government." The goals of fiscal responsibility and budget restraint simply will not be served by destruction of the Indian Housing Program's efficient local provision of basic survival services for the truly needy residents of Indian reservations. Very truly yours, ZIONTZ, PIRTLE, MORISSET Samuel J. Stiltner of Attorneys for Colville Housing Authority SJS/mg Enclosures cc: Frank Ducheneaux, Special Counsel for Indian Affairs Deborah Ann Brokenrope, Clerk of Indian Affairs Timothy C. Woodcock, Staff Director, Senate Select Committee on Indian Affairs PAGENO="0510" 504 COMMENTS OF THE COLVILLE HOUSING AUTHORITY CONCERNING- FUNDING FOR INDIAN HOUSING PROGRAMS We appreciate this opportunity to submit comments concerning funding for the Indian Housing Program. We understand that the Administration proposes to eliminate totally the Indian Housing Program and has presented to the Committee comparisons of the cost of the Indian Housing Program to non-Indian public housing intend- ed to show that the Indian Program has not been cost- effective. The Indian Housing Program has proven to be cost-effective and we invite fair comparison with the costs of non-Indian public housing. However, the Administration's arguments are misleading and we strongly object to the specific comparisons and conclusions which the Administration has tendered. The Administration asserts that the unit cost of Indian housing far exceeds the unit cost of non-Indian public housing. We ask that the Committee consider the following: 1. The Administration has stated that one home under the Indian Housing Program ultimately costs the taxpayers approximately $175,000. However, we understand that this figure was obtained by a statistical process invol- ving amortization over a 25 year period, and that no similar figure was prepared for public housing general- ly, so that a fair comparison is impossible. PAGENO="0511" 505 2. A fair comparison of Indian housing to public housing nust not neglect that public housing is mostly urban housing in high-density projects. These projects have economies of scale and location which are impossible in Indian country. - 3. A unit cost comparison, with public housing is unfair un- less the Committee recognizes that much public housing consists of one-bedroom elderly units; whereas Indian. housing is predominantly for families, and a substantial portion of Indian housing units have from four to five bedrooms. (Approximately 75 percent of the homes con- structed by the Colville Housing Authority have three bedrooms or more.) Obviously, the unit cost will be necessarily greater for the Indian Housing Program, al- though the cost per occupant may not be. 4. We understand that the Administration supplied cost figures for public housing which did not include the amount of federal operating subsidies, whereas the figures for Indian housing included the amount of such federal outlays. 5. The Administration cost figures for Indian housing in- cluded Alaska Indian housing costs.' The Alaska program is extremely unusual in its short construction season and in the stupendously high costs of labor and sup- plies. The inclusion of Alaska Indian housing .costs in 18-934 O-83----33 PAGENO="0512" 506 the Indian housing figures is unfair and misleading without consideration of these factors, because the pro- portion of Indian housing to public housing in Alaska is high due to the demography of that region. 6. The Adninistration has asserted that the Indian Housing Program is behind schedule on sone 22,000 units. Ac- cording to our information, the Administration actually has identified units within the normal pipeline process and labeled those as being behind schedule. The intend- edconclusion, that the Indian Housing Programs is not cost-beneficial, is obviously not warranted by this mis- characterization. 7. Finally, most Indian reservations are remote from con- tractors, skilled labor pools, and sources of supply. The Colville Indian Reservation is 120 miles from Spo- kane, Washington, from where contractors, subcontractors and supplies must be brought to carry out construction. The Colville Reservation encompasses more than one mil- lion acres of land in which there are four population centers (Nespelem, Inchelium, Kell* and East Omak). Construction at Keller or Incheliun requires use of Nes- pelern as a distribution point from which supplies and workers must travel across mountain passes or by ferry across Lake Roosevelt. PAGENO="0513" 507 The Administration has also eliminated the request for In- dian Health Service sanitation facility monies for this year. Un- der current practice, lBS does not contribute to Indian housing projects until the houses are already under construction. As a result, IRS requests its funding for Indian housing projects any- where from 18 months to three years later than BUD's requests for budget authority for the same housing. If the Administration's plans concerning IRS sanitation facility money are carried out~ it would be impossible to construct some 13,000 units for which BUD already has budget authority for 1978 to the present. To the ex- tent that this would affect work already under way, the proposed elimination is hardly cost-beneficial. The contin~uing need for new federally funded housing on In- dian reservations should be obvious and should not require docu- mentation. However, we note that a 1980 survey concerning the Colville Indian Reservation projected a need of 1,000 additional units by 1985, based on projected increases in reservation employ- ment and the clear trend of young, smaller families moving back to the reservation. Even if such a family could afford the enormous down payments and mortgage payments required in the private mar- ket, it woulâ be hard pressed to obtain financing to build on In- dian trust land, due to the near-impossibility of pledging trust land as collateral. The Colville Housing Authority's waiting list now has the names of some 230 applicants, and the list grows with PAGENO="0514" 508 - each passing week. These families should not be denied the bene- fits of the nation's public housing programs. Although the Adminstration has failed to demonstrate that the unit cost of Indian housing is greater than for public housing generally, many factors would justify any disparity in costs if indeed a disparity exists. Many costs are entirely beyond the control of the Indian housing authorities. In particular, there are pre-development costs which are unique to Indian housing. First, there certainly would be additional expense where a housing project is dependent upon the coordinated efforts of three separ- ate federal agencies. Moreover, many Indian projects must be de- veloped on allotted land, often on scattered sites, which must be leased to the housing authority. The checkerboard pattern of land tenure on Indian reservations, a confusing tangle of ownership and jurisdiction inflicted upon Indian people by the many radical shifts in federal Indian policy over a century, present problems of site selection, title examination, lease acquisition, utility easement acquisition and road access which have no counterparts in non-Indian public housing. The victims of conflicting -and chang- ing federal Indian policies should not be blamed; if the unit cost of Indian housing is in fact greater due to these factors, the elimination of the Indian Housing Program would penalize the tribes for problems which they did not create and resulting costs which are beyond their power to control. PAGENO="0515" 509 The hard truth is that Indian housing authorities generally have no alternatives to the BUD Indian Program. This should be contrasted with the options available to non-Indian public housing authorites. State and local governments have tax bases and other means of funding public housing which are simply not available to tribes. Within a span of ten years, the Colville Housing Authority has made great strides in capability in terms of producing many units of housing, on time, for the least cost possible.' The Col- ville Housing Authority has produced a housing project every year with the result that there are now more than 400 units either oc- cupied or under active construction. Nor can it be said that the Colville Housing Authotity is or ever has been behind on construc- tion; to the contrary, the Housing Authority has done everything possible to expedite each project. No project has ever been ex- tended. Each one has been completed prior to the projected date of completion, sometimes by as much as four months. The Housing Authority also has administered the pre-development phases in an efficient and expeditious manner. The target dates established by BUD upon initial approval of each project have always been met by the Housing Authority, and any rescheduling that has occurred dur- ing these pre-development periods has been made to accommodate the needs of agencies other than the Housing Authority. The current project illustrates this efficiency. The Colville Housing. Author- ity applied for the current project on March 1, 1980. Bids were PAGENO="0516" 510 opened on March 10, 1981, and the construction contract was signed on March 31, 1981. Again, we invite a fair comparison with any non-Indian public housing authority. Management capability of Indian tribes to construct and oper- ate low income housing projects has grâwn at a tremendous rate. This has been done in a much shorter tine than has been available to non-Indian public housing aathorities. Tribes across the country have developed administrative structures which now have an expertise which will be lost and expensive to regain should the Indian Housing Program be eliminated. The board members of the Colville Housing Authority and its Executive Director collectively bring to their work more than 42 years of experience in Indian housing. The loss of this experience would be anything but cost-beneficial. Finally, it should not be forgotten that federal Indian hous- ing funds are joined by tribal contributions. We refer here to tribal funds and services separate and distinct from BIA services or federal funds which have passed through the tribes. Much of the housing constructed by the Colville Housing Authority is on tribal land. The Colville Confederated Tribes have provided sur- vey assistance, legal counsel, road construction, office space and has contributed toward the wages of the Executive Director and his staff, utilities and transportation costs. In conclusion, the Administration's proposed elimination of the Indian Housing Program would be a devastating blow to Indians PAGENO="0517" 511~ whose tribes have struggled to achieve a satisfactory level of safe and decent housing on their reservations. Certainly, all must recognize that the current atmosphere entails a push for greater fiscal accountability which cannot and should not be re- sisted. Much can be done to streamline federal agency procedures. Moreover, budgetary cutbacks appear inevitable, and all who depend upon federal support must bear this burden. Reasonable cutbacks in the Indian Housing Program are not objected to, but the tota*l elimination of the Indian Housing Program is manifestly unjust and inequitable. The benefits of general public housing will not reach Indians who live on reservations far from urban centers -- how will the Administration justify leaving them out? PAGENO="0518" 512 5~ntee Sioux Tribe of Nebp.~tha Phofle: 8573302 Niob,.~a. Neb~. 68760 1~r. R.D. Drapeaux Assistant Area Director Bureau of Indian Affairs 115 4th Avenue S.E.. Aberdeen, South Dakota 57401 Dear Sir: Comments from the Santee Sioux Tribe of Nebraska on H.R. 5988, creation of an Indian Housing Office !iithin the Department of the Interior. H.R. 5988 does address a very critical need on Indian reservations and Mr. Udall should be commended for bringing this very serious issue before the House and Senate. Overall, the resolution is well drafted and addresses the needs, but the funding at the requested level will be far short of the housing demands on reservations, resulting in very little impact on reservations. Under Section 101, part C (4) should be removed from the proposed bill. Most tribes now have well qualified construction managers and skilled labor. Direct repair and construction by the Bureau, would hinder economic development on the reservations. Although short tern, housing construction actually addresses two needs on the reservation, improved housing and employment. Tribes with the capabilities of providing their own construction management and skilled labor should be allowed to negotiate for construction contracts. Indian contractors with proven `track' records, who have showed the ability to utilize local labor and successfully complete construction obligations should be given priority on all Indian Housing Projects. This would eliminate many of the Indian contractors who are in reality, paper corporations fronting for the non! Indian contractors. April 13, 1982 PAGENO="0519" 513 Section 104 `That, where such house is located on tribal land, the tribe shall have the right of first refusal on the sale of such house." Clarification should be made to what extent this paragraph means. Does it mean that houses c~nstructed on tribal land could eventually be housing non/Indians or non/tribal members? This part of the bifl, unless further clarified, could lead to future confusion and resentment. This closes our comme~its, we hope the bill will be adopted and that the needed funding will be allocated. Respectfully, Richard L. Kitto, Chairman Santee Sioux Tribe of Nebraska RLK/krw cc: Supt. Russell Bradley; Winnebago Agency file PAGENO="0520" 514 S~ntee Sioux Tpibe of Nebp,tha Phone: 857-3302 Niobrara. Nebr. 68760 M~. F~ciiia Vaeheneczux, Specicl M4t~tan~ Comm-Lttee on InWilo'~ and In4u-&VL A~aix4 U.S. Kowf,e o~ Repentc~tL~Je2 Wa4h.Lng~on, V.C. 20515 M'L. Vheneau.x: EncLo4ed .L.~s a copy o~ The cormnerz.t4 made ~o The Abvtdeen Aitea O~4Lce cLonee'Lnn~ K.R. 5988, e.&tahUth.Lng an IndLan Kow6Lng O~Lc!e Ln The VepcvL~mebvt o~ The IkvtexLofL. We. ai~e aLoo conce~tned aboa~ The commen-t.~ and a,t.t.L.tude o~ Rep~'~e4en~ta.tLve Jame.~s V. f1an~seyt, Utah. In h.Ls Mane.h 9, 1982 cavLe.~pondence to SeeAeta/Ly Watt he Lndiezvted Thvt~e exl.t~t.~s "quLt..e a nwobe't" o~ pvt.~on4, who would Wze to take a ulo4eA £oof~ at The te'unIjwt~on o~ IndLan T.'~lbe4 and The.L'r. 4pec.Lal xe&z.tion4hip wtth The Fede.~tcl Govenmeat. I-fe a140 LndAca.te-s .o the SeCJLeta/Lff That he doabt'~ wheThvL md-Lan t be.4/NaLLve. Ame'~.Lcan4 .`teaL-&j ex-L~t. The San-tee S-Lou.x T'tLbe be.&eve~ Replte4en.ta.tLve 1-1 an4en `~ a.t-tttude to be mo-'te derneanng and darnag.Lng o pltog'te44 on xe~~vwat.Lon4 Than any admLnJ~ttatLve badge-t cat. We thtce.'te~y hope Th.L'~ L~s no The p~evaLLLng at.tttude o~ The Cong'te.~. We hope thLs conce-'tn wAll be add.'te44ed and Indian t.'tLbe~S wAll be a.s4u.'ted That we do not have to ba.~tLe The "te'tnoLna.tLon t&a.U" once aga.Ln. R4paC,t1~LLL4(, - / -~ -~ II' Rogeit Thade-PI, SwsAne44 Manage.& San-tee Soux T'tAbe o~ !`tebxa.~faa RT/~w CC: SAle Ap-'t.L-e 19, 1982 Enc-eo-6w'Le: Con~ent6 on I-(.R. 5988 PAGENO="0521" * 515 ~ ~ Association of Western Washington Indian Housing Authorities -~ P.O. Box 32. Marysville, Washington 98270 Phone (206) 659-1281 Membe, itou~ng. Autbenti,s TO: Inter-Agency Task Force on Indian lousing Cascade Inteel,ibal Please find enclosed the position paper adopted by the East Cascade Association of Indian housing Authorities on March 23, 1982 and by Osebalis the Association of Western Washington indian Housing Authorities on March 25, 1982. These two Associations represent all IhlAs in Idaho, Oregon, and Washington. This position paper is shared by the IJIAs throughout the nation. thmnd heodore J. St~'. Ihilaire AEWIHA Executive Director Muddeshoa Nooksack GscnWe Qubas,h Sssntwes InscT,ibaI Sscasencth lshabp Qwkwe PAGENO="0522" 516 ASSOCIATION OF WESTERN WAShiNGTON AND EAST CASCADE INDIAN HOUSING AUTHORITIES The Reagan Ada i nstration i s Coils i dering rod i cal changes in the Federal housing Programs for Indian families and legislation is being drafted that would consolidate all Indian housing Programs into one comprehensive program to he ad- ministered by the U.S. Department of Interior. It is appropriate that the Associations of Western Washington and East Cascade Indian lousing Authorities state their position in this matter because those changes, if enacted would seriously affect housing for Indian families on legion X Reservations. The need for housing for the Pacific Northwest Indian families continues to grow as young families are formed and off-reservation families seek to return to their Reservations. It is obvious that if 37% of the Indian people in the Region arc under 16 years of age, that many new failies are forming, and that cessation of or interruption in housing production on Reservations will complicate the crisis that already exists in housing for the Pacific Northwest Indian families. The nerd for housing units will increase dramatically if housing production stops or slows down. Because the private sector decline to build houses on lndian land the only hope Indians have for housing i s from the Federal Government. Tile trust respon- sibility of tile Federal Government for Indian families. Since 1962, that has been done through the hUh) Indian lousing Program, a step-ehi 1(1 of tile Pitbl i e lou sing Program. Sony di iii CIII ties love been (xperi eneed i n ilousi ng product i (ri and sanagemen t in that program; yet i t has been produc i ng oh. an aecep t.~tb I e rate and has provided affordable and decent hous i ng . C ri I. i ci sm I eyed at the pio~~tais has never been intended to terminate it. PAGENO="0523" 517 A number of options for changes in the production program arc bei rig considered Most widely discussed arc flock Grants, lent Vouchers, a Revolving Fund, and Guaranteed loans. Tire Ill ock Grant Program would ci iminate the long term financing of note sales, require much larger annual appropriations, and probably be awarded to tribes rather than IliAs. Rent Vouchers would provide low-income families with subsidized rent, enable them to seek housing in existing and private housing and would reduce the federal need to construct public housing. A Revolving Fund would establish a source for loan authorizations that would be replenished by payments from home-owners. Guaranteed Loans would enable private financial in- stitutions to make loans on trust land without needing to hold the land in security. The Federal Government would make good any defaulted mortgages. Each of those options, however, contain inherent threats to a long term con- tinuation of Indian housing production. Block Grants will require a much larger annual appropriation, which will be difficult to obtain in a time which tire Federal Government is seeking to reduce the federal deficit. The result would be a castastrophic reduction in numbers of units. Also, Block Grants would most likely be awarded to Tribal Councils, which would have to build up an admini- stration for housing. The expertise and administrrrtive capabilities that 111Am have painstakingly developed over tire years would be lost, costly mistakes would occur and valuable time would he lost during tire transition period. Furthermore, if administered by the Department of Interior, an expertise and administrative capability would have to be developed there. Perhaps liii) housing development personnel could be transferred, but tirrre would still be lost as tire new program is learned and refined. lent Vouchers will provide a very limited benefit on Western Washington Be serva tions. There arc rio vacant uni Is avail able thur I wool ii enable I ow-income firm iii em a I ready inn hun-f i nranced projec Is , and si rice thrry a I ready rcce i ye wri fart PAGENO="0524" 518 assistance ~or rent, the extent of their benefit would be very limited. Rent Vouchers will not produce any new construction on Western Washington Reservations and new construction is the only answer to needs in Western Washington. The Revolving Fund would presumably enable moderate and higher income Indian families to enter into a mortgage situation, with the Revolving Fund replacing private banks and Savings and Loans as a provider of mortgage loans. The continued success of this program will depend upon the ability of families to repay their mortgages to the Fund. But the limited economic opportunities on Reservations make this a great risk for participants. If a family defaults, then what? Does the Tribe foreclose? Or does the Fund diminish, which robs another family of its hope for housing? Will this program go the way of the BIA Credit program, which ran out of money as Tribes found themselves unable to repay their loans? Guaranteed Loans have been available through Fm 1l.A. for a number of years and have not produced housing in any meaningful quantity. This is due to a nursbrr of reasons. First, few families have land in clear title. Second, few can afford the payments. Third, there has been very little technical assistance available to families to help them through the paperwork. And fourth, the trust status of the land has to be waived by the homebuyer so that if the hemebuyer defaults, the government can recapture its money by selling the house to another family, not necessarily Indian. Guaranteed Loans have little benefit to offer Reservation fami 1 i es Three important questions affect each of these options: I.) Which federal agency will administer the program? 2.) Will the Tribal Council or HOusing Authority receive the grant loan and develop the project? I . ) low will m:ln;1l~cment of the oretiped project:; be ads in i :; t reed? PAGENO="0525" 519 Questions I and 2 have a) ready been addressed; question 3 needs comment. It is important that there not be a variety of lousing Management Programs on each Ileservation. A variety confuses tribal members and occasions of jealousy among the residents of different projects. This undermines the sense of Community that Reservations seek to foster. Even now, with the huB program requiring a nearly total management program and rent payments and the lIlA lousing Improvement Program providing free housing and renovation to other families, misunderstandings, confusion, and jealousy is present. The introduction of a new management program or a new housing program without any management program, will only serve to in- tensify the confusion and jealousy already existent. If a new production program is introduced, it should bring with it a management program as similar as possible to the IRJD management program. Again, with regard to the management program, who will administer it, the Tribe or lIlA? it will serve only to add to confusion to have more than one management entity on a Reservation. There should be only one such entity. In the case of Block Grants, Revolving Funds, or Guaranteed Loans, further questions arise. Will mutual help program be available? Will Ills and IIJA continue to provide water, sewer, roads, and technical assistance? Will there be any incentive to invest development funds? What role will professional consultants, especially A/li fi riss, have? Will resident. counseling programs be included? Wi 11 minimum property standards, prototype costs limits, TllC limits, competi tive sealed bidding, Indian preference in contracting, l)avis-ltacon wage rates be re- qui red? Will carport, garages, b~mlconies, carpets, basements, and other quality features be al homed? What sort of freedom will be included and what restrictions wi]l be imposed. PAGENO="0526" 520 In light, of the foregoing consideration, AIiWIIIA and ECAIJIA oppose he proposed radical changes in the production program of Indian lousing. AWWIIIA and F:cAlil: believe that proposed changes will result in a serious interruption in production that will severely worsen the existing crisis and lead within a short time to a total termination of housing production for Region X Reservations. It is doubt- ful that the Block Grant program will be funded adequately to meet existing needs. The asSumJ)tion of administration of the housing program by the Department of Interior and Tribal Councils will result in an interrutpicn of production and in problems that will lead to an end of production. The Revolving Fund approach will result in a depleted fund and the end of production. The Guaranteed Loan approach will have no more uses than it currently has. Rental Vouchers, as already pointed out, will not meet Reservation circumstances. The best option, until now not discussed, is to retain the existing him- finance, lilA adminsitered program, modify it, and remove the excessive restricl.iom;, and complications. The program is working, the federal delivery system is in place, the Ill/is are functioning professionally, and given a chance this program will provide the needed housing on Indian Reservations. AWWIIIA and ECAIIIA strongly opposes the replacement of an effective program with new programs of doubtful effectiveness and advocates the continuation and streamlining of l:hc existing illiD Indian housing Program at a funding level of 4,000 to 6,000 units per year. PAGENO="0527" 521 IIUSOJ ut cii Nc. 12 Resolution objecting to the imposed cueupaacv regtz 1 at ons 21 C Lb 805 and 8e0. oHEREAS : the Associ ation of Weste ~n W~shj nt~ton hid in lousing Authorities strongly objects to the i esuntat ion of the now Occupancy regulat.i coo itupl cinented ii 24 CPU Oh md 861); WHEREAS those regulati one in 24 CLI) 805 and 860 will infi ice mirneceasa rv ha rdshi p on i ndi arms des mir n~ to 1 i ye in rus I arid beservatmon lands; and WHEREAS: md an fermi lies ate forced to occupy OnUS ing al `rudy being utilized by an existing `famrrLly or ti mice in substandard private housing oIl or off tire teservation; and WHEREAS: the new occupancy regulations published in 24 CPU 805 and 860 will dcny many very low-income Indians access to t;hc Public housing Program and penalize those individuals who are trying to improve their family conditions: NOW THEItEFOLIE BE IT RESOLVED by the Associat ion of Western Washington Indian Housing Authorities, in session this 17th day of September, 1982, with a quorum present, that HOD speci- fically exempt the Indian Housing Program from the provisions of 24 CFR 805 and 860. olin Parker, Chairman ATTESTED - Celeste Alaniz, Secretary 18-934 O-83---34 PAGENO="0528" 522 ROSS SWIMMER GENE THOMPSON Principal Chief Executive Director HOUSING AUTHORiTY JODA NELSON OFTFEC1-IROKEENATIONOFOK1'AHO~ NATHAN H. YOUNG, III Chairmen P. 0. Box 1007 .TA59LEQUAH. OKLAHOMA 74454 Deputy Director/Legal Counsel April 16, 1982 The Honorable Morris Udall Committee on Interior and Insular Affairs U.S. House of Representatives Washington, D.C. 20515 Attention: Frank Ducheneaux Dear Mr. Udall, The Cherokee Nation of Oklahoma wishes to express our gratitude to you for giving us the opportunity to testify on H.R. 5988, The Indian Housing Act of 1982. After consulting with our Principal Chief, Ross Swimmer, we would suggest the following amendments to H.R. 5988: Title IV: Miscellaneous Provisions Section 403: The Force Account method of construction shall be an allowable manner of development under this Act, subject to the approval of the Secretary. Section 404: Nothing in this Act shall be construed to prohibit a Tribal Housing Agency from participating in a housing program with other agencies or departments of either the United States or a state government. Section 405: All provisions of this Act shall be subject to the Indian Self-Determination and Education Assistance Act (Pub. L. 93-638). We hope that you will find these suggested amendments helpful. If your staff should have any questions, please have them contact me at their convenience. Yours Truly, ~~ung, III PAGENO="0529" 523 UNITED INDIAN TRIBES OF WESTERN OKLAHOMA AND KANSAS apoooncsnus Klckapoo of Oklahoma ca~o 4010 NORTH LINCOLN SUITE 200 Kiowa Chsysnna.Ampaho OKLAHOMA CITY, OKLAHOMA 73105 Olo-Mhoowla Potawatomi Phone (405) 424-1483 or (405) 424-1484 Dslawais Prairla Band Potawatomi Sac a Fox of MlaIOUd Iowa of Kansas Sac & FOX Of Oklahoma Iowa sf0 to,oma . Tonkawa April 9, 1982 wIchita Frank Duchenaux Committee on Interior - Insular Affairs U.S. House of Representatives House Annex 1 - Room 422 Washington, D.C. 20515 Dear Mr. Duchenaux: I have recently been given a copy of a bill cited as the "Indian Housing Act of 1982' sponsored by Udall, Kilder and Williams, whióh contain provisions to continue the Indian Housing Program throughout Indian Country. I firmly support the bill and agree fully on the provisions for specific Tribal agreements contained within. Therefore, I respectfully request your full support on this for reaching legislation which again, confirms the United States intent to live up to committments to our Indian Nations. If I can be of any assistance, you need only to advise. Sincerely, / A' _`~~` Newton Lamar, President NL:rf PAGENO="0530" USSERY & PARRISH, P. A. ATTORNEYB AT LAW 200 RIO GRANGE VALLEY BANK BUILDING - ALBUQUERQUE, NEW MEXICO B7103 TIo'aB~t 247-0145 AREA CBrB 505 April 28, 1982 The Honorable Morris K. Udall Chairman, House Committee on Interior and Insular Affairs U. S. House of Representatives Washington, D.C. 20515 Attn: Mr. Franklin Ducheneaux Re: House Bill 5988 Proposed Indian Housing Act of 1982 Dear Congressman Udall: Enclosed please find a statement by ALL INDIAN PUEBLO HOUSING AUTHORITY in connection with H. B. 5988. You had indicated at the hearings in Tucson last week that we would have until May 5, 1982, to submit statements. Thank you for the opportunity to attend the hearings and submit this statement. Yours very truly, L. Lamar Parrish 524 ALBERT T. USSERY L.L.AMAR PARRISH CHRISTOPHER L.TRANMELL CATHERINE BAKER STETSON LLP:sg Enclosure PAGENO="0531" 525 STATEMENT The ALL INDIAN PUEBLO HOUSING AUTHORITY would like to make a statement regarding the proposed Indian Housing Act of1982, H.B. 5988. We have been informed by the Chairman of the Interior Committee of the United States House of Representatives, the Honorable Morris Udall, that H.B. 5988 was not designed to take the place of HUD programs which presently furnish housing for needy Indian people, but that, instead, it was to provide an opportunity for the Department of Interior to undertake an - Indian housing program in a serious way and was designed to meet a wider spectrum of housing needs in Indian country. This is a noteworthy attempt by the Chairman of the Committee, the members of the Committee, and the Staff toward trying to meet housing needs on Indian reservations. The Bill, however, does contain some unclear portions and some parts which, in our opinion, need to be dealt with. The ALL INDIAN PUEBLO HOUSING AUTHORITY is located in central New Mexico, in the heart of traditional Indian country. It is composed of eleven Pueblos -- Acoma, Cochiti, Isleta, 3emez, San Felipe, Sandia, Santa Ana, Santo Domingo, Zia, Santa Clara, and San 3uan. We have had successful housing programs over the last fifteen years, having constructed 1333 new housing units and rehabilitated or modernized 59 units. We have done much to meet the great housing needs of the Indian people in central New Mexico through participation in HUD programs of various types. We have been an outspoken critic of existing and pn-going programs and have been most critical of the HUD program, its administration, its delivery system, its lack of awareness of Indian problems. Over the years we have voiced our complaints and suggestions and it should be noted parenthetically that these programs have shown some improvement over the years. Suffice it to say that the ALL INDIAN PUEBLO HOUSING AUTHORITY feels qualified to speak on the new proposed program, H.B. 5988. Title I, mostly a restatement of the familiar HIP-Program, contains such inadequate funding that very few new houses actually could be built under such program. Moreover, the provision that repayment for these funds could be required by either the tribe or the Secretary seems inappropriate and should be omitted. Title III, the loan guaranty portion of the Bill, may well meet the needs of affluent Indian families living on Indian reservations. By applying, for the purposes of obtaining and repaying the private loan, normal urban commercial standards, the monthly payments which a homeowner would be required to make would be so high as to be out of reach of virtually all Indian people living on reservations, even those with relatively well- paying jobs. Because of the unique and frequently severe circumstances which exist even ~4E~5~ - Bf~tTOD g atbLqJor-qua . r~a'~/ m~axi~o aniu PAGENO="0532" 526 for ~the more affluent Indian persons 1iving~ on the reservations, due primarily ~to reservation life itself, there should be some provision to subsidize at least part of the cost of Indian housing on reservations. However, there is definitely a need for a loan guaranty program for privately financed housing on Indian reservations, which program would recognize the difficulties brought about by the unique legal status of Indian land, and this Title addresses this need. Before specifically addressing Title II, which apparently would be applicable to the bulk of reservation Indian people, it should be noted that continued legislative action is required to meet the profound need for decent housing for Indian people, including a continuing involvement in the National Housing Program and special housing programs such as H.B. 5988 proposes. The Housing Act of 1937 applied to all Americans from the outset except for American Indians. The first HUE) houses were constructed on our reservations in the mid-1960's, some 25 years after public housing was made available to all other Americans. The desperate need for housing for American Indians is unquestioned. Twelve percent (12%) of the general population of Americans have inadequate housing; 60% of American Indians have inadequate housing (this Bill in a recital states 40%, although the U. S. Senate in 1981 found that the need was in excess of 69%) American Indians should not receive less than their proportionate share of housing from any national housing effort. HUE) housing for Indian people has been successful in that it has delivered many houses to needy people on reservations. It has been unsuccessful in that the delivery system is slow, burdened with red tape, overregulated, and results in a needlessly expensive structure. Unfortunately, this has resulted in harsh criticism of Indian programs and the critics in Congress have ammunition to attack the entire concept of Indian housing. Indian people should continue to participate in a national housing program, although the system does need change. We have made suggestions in the past as to how to change the Indian HUE) program in dramatic ways and to make it more responsive, faster, and cheaper. Perhaps these changes should be entertained in connection with this proposed bill. In the opinion of the Board of Commissioners of ALL INDIAN PUEBLO HOUSING AUTHORITY, parts of Title II of H.B. 5988 warrant attention: Few tribes would sacrifice their sovereignty and subject the trust funds held by the Government to unilateral seizure. That the~Government holds tribal funds in trust in the first place is not of the tribe's choosing, but is an archaic law of the same government which now proposes to seize those funds. The inadequate trust funds which now exist for most tribes illustrate the poverty of most tribes. Title II stands as evidence that we have not taken advantage of lessons learned from the years of involvement with HUE) programs. Its language is inadequate to deter the growth of overregulation, red tape, and the layers of bureaucracy. The Bill provides that the Tribe or housing agency must undertake construction within a year of the approval of a project or incur the displeasure of the Secretary. Since when have delays been the fault of the PAGENO="0533" .527 tribe or housing authorities? The maddening slowness of the delivery of housing units has perennially and historically been the fault of the Government, its endless reviews, its multiple layers of bureaucracy, its painstaking devotion to minutiae. The burden for speedy delivery should be placed on the Government in the same nature that 638 contracts place the burden on the Government for speedy approval. For example, if a project is submitted to the Government for approval and nothing is heard from the Government but a deafening silence for, say, thirty days (a frequent occurrence), then the project will be deemed -to have been approved and the housing authority or tribe may proceed accordingly. In short, the delays in delivery have always been the Government's fault, and this Bill has the burden wrongly placed. There should not be involvement by any other Government agencies, except on an information basis. The computation of monthly payments for participants results in excessively high payments. More deductions, such as those presently allowed in the HUD program, should be provided. The total dollars specified for funding is much too low. The administration by the BIA, including employee expenses, is to be paid first out of the fund before it is made available for housing. Given this, relatively few houses would be made available for the entire United States for Indian people. This would not meet the housing needs in New Mexico, much less the rest of the country. We are uncertain that, if separate from the national housing program and financed by an entirely different device, Indian housing would receive proper attention fron Congress and the Administration. We would like to emphasize our understanding that the Indian Housing Act of 1982 is designed to provide additional assistance to the Indian people in meeting their desperate housing needs and is not designed to take the place of existing HUD-type programs. It is believed that HUD programs should be strengthened and provided additional funding. The ALL INDIAN PUEBLO HOUSING AUTHORITY believes the members of this Committee have taken a step forward toward recognizing the Government's obligation toward the Indian people. ALL INDIAN PUEBLO HOUSING AUTHORITY By__________ PAGENO="0534" 528 RED LAKE RESERVATION HOUSING AUTHORITY Red Lake, Minnesota 56671 George Jones, Chairman George Gaasvig, Richard Barrett, Secretary Executive Director Joe May, Vice Chairman Wallace Kingbird, Commissioner Dan Raincloud Jr., Commissioner TO: Terry Brown FROM: George Gaasvig Executive Director Red Lake Reservation Housing Authority The Red Lake Reservation Housing Authority, is a Corporate entity established by the authority of the Tribal Council of the Red Lake Band of Chippewa Indians, by Reservation Housing Ordinance No.2-63. At the present time this Housing Authority administers 315 HUD Project homes. We have an immediate need for 150 units, immediately, substantiated by our backlog of applications. There is an additional need for 200-400 units due to the substandard condition of many occupied dwellings, lack of sanitary facilities in many homes, over crowding, and to house those families that have totally given up on seeking safe, decent & sanitary living conditions due to their con- tinued request and lack of response. Should future HUD developments be terminated, we fully support Bill H.R. 5988 "The Indian Housing Act of 1982' with the following concerns and/or alternatives: 1. The bill doesn't allow for a periodic review or updating. We feel this has been a problem with existing programs to the extent that they become outdated if they don't have such a measure built in. 2. We strongly discourage the attachment of tribal trust funds in lieu of non payment of financial obligations of a contract. In attending hearings and discussions on the bill, it is our opinion that very little research was done into the reasons for the excessive delinquencies of Indian Housing Authorities. For example: Policies under the existing HUD program, for determination of Adjusted Family Income, have not been updated since the mid- 60's. The orginial program was designed to give an allowance for the family to live on prior to figuring the rent. This amounted to (and still is) 5% of annual income p1us $300 per minor dependent. With todays economic conditions, this doesn't amount to nearly enough to exist on and hasn't for quite some time, with the result being that we are asking for 25% of in- come for rent before deducting enough to allow participants to live on. The end result of this lack of review and updating is the high delinquencies. PAGENO="0535" 529 3. We applaud the bills attempt at cutting as much red tape and paperwork as possible, but believe there is one area that is left untouched that could reduce the administratjon.tre- mendously while achieving the same~ result. This is in the area of annual income examination to determine the required rent, as required by the Brooke Ammendment. We feel that due to the economic conditions, unemployment rates, and gen- eral life styles on the reservation, the Brooke Ammendment is extremely difficult to administer. In our situation, it is the single most difficlut aspect of the program to admin- ister, and the magnitude of the problem is not reduced under the bill. To address the problem of delinquencies and the annual income re-exam- ination we offer the following alternatives: First, replace the annual re-examination of income for determining rents with a flat fee rent based on the size of the unit. The `ability to pay' aspect as addressed by the Brooke Amendment is already addressed through the social services program where an amount for rent is allocated to the recipient. This would eli- minate the re-examination problem, allow each participant to know exactly what his rent is and is going to be, keep the sizes of units in perspective, and make administration and collections much more straight forward. Secondly, after implementing the flat fee approach, drawing up a contract with the tribal authority to guarantee the payments to the funds as directed in the bill, but without the attachment of trust funds. With the flat fee system, the tribes would be better able to administer collection programs and to budget for any delinquencies that may develop. In conclusion, this bill if enacted, would for the first time, address the Indian Housing problem directly, rather than as. a spin off of an existing program. We feel that this is long overdue and again we congratulate the Interior Committee for developing this proposal. cc: Franklin D. Ducheneaux Counsel on Indian Affairs PAGENO="0536" 530 Ohemel.u.evi Indian. `I'ribe May 25, 1982 Honorable Morris K. Udall, Chairman Committee on Interior & Insular Affairs HOB Washington, D.C. 20515 Dear Sir, Our Tribe would like to offer its comments on the proposed bill for "Indian Housing Act of 1982.' Our Tribe received its first allocation of homes which were completed in late 1980. N~ we are faced with the possibility of no other housing from H.U.D. The 35 homes we n~z have do not meet the current needs of our people. Our tribal enroll- ment is small (approximately 450 members) and 35 families are enjoying living on the reservation in adequate housing. Many more would like to come hcme, but there are no living facilities available unless tribal members can afford to provide their own-- very few can. We believe that the Bureau of Indian Affairs understands all the canplexities involved with reservations, trust lands, etc. It seems that many regulations of H.U.D. conflict with reservation living and are not understood by the tribal people. We are of the opiniou that the B.I.A. will administer a housing prcgram in the best interests of tribes, ours in particular. Our. tribe does concur with the statement presented by Dr. Ned Anderson if Inter-Tribal Council of Arizona, a copy of which is attached. We believe that this analysis of concerns is stated very well. Very truly yours, CHEMEHUEVI INDIAN TRIBE Conkie Hoover, Secty/Treasurer Housing Commissioner ch: cc: B.I.A., Parker, Arizona All Mission Indian Housing Authority FROM THE OFFICE OF~ Secretary/Treas. Administrative Offices - P.O. Box 1976. Ohemehuevi Valley. california 92363 sf714) 858-4531 PAGENO="0537" 531 Conmients on "Indian Housing Act of 1982" The Indian Housing Act of 1982 is an attempt to address serious problems of federal Indian housing policy. The proposed bill would: - Establish formal statutory authority for Bureau of Indian Affairs programs in Indian housing; - Formalize the BIA's Housing Improvement Program; - Create in the B]A an Indian Housing Finance Fund; - Establish an Indian Housing Loan Guarantee Fund. Positive Features of the Bill The proposed bill has several positive features. These include: - A clear and strong role for Indian tribal governments in overseeing Indian housing efforts on Indian lands; - Housing standards that can be appropriately applied to the cultural traditions as well as the economic needs of the tribes; - Housing programs that can be utilized by both very low-income families and middle and higher income families. Concerns with the Bill There are several serious concerns with the bill in its current draft that need to be addressed. The major concern is the potential endangerment to tribal trust funds and ultimately, the potential for endangering the trust status of Indian lands. These concerns, and suggestions for resolving them are discussed below. 1. Trust Funds Section 205 of the bill provides that: Notwithstanding any other provision of law, the Secretary is hereby empowered, as provided in this section, to attach any obligated or unobligated funds held by the United States in trust for the benefit of any Indian or Indian tribe. This provision has the potential to cause serious problems for Indian tribal governments. Under this provision, Indian tribes would risk losing their trust funds if housing payments are not made by individual Indians and the housing Agency is unable to make quarterly payments into the Indian Housing Finance Fund. This Section would subject tribal governments to consequences that are not applied to any other public housing authority in the United States. When non-Indian individuals do not make their payments to public housing authorities, and those authorities do not make their payments, the federal governments does not confiscate the financial assets of corresponding city, county or other local governments. PAGENO="0538" 532 The potential threat of attaching obligated trust funds remeves the security for tribal governments to enter into contracts for programs financed with trust funds, including economic development efforts. If obligated trust funds are attached, then the tribe would be unable to meet its obligations to contractors. If there is the threat of attaching obligated trust funds, con- tractors would be reluctant to enter into agreements with tribal governments. If individuals fail to make their housing payments, thus making it hard for tribal housing programs to make their quarterly payments, then the trust fudns of the tribe can be attached. Therefore, the individual defaults, but the entire tribe must pay for his or her failure. Only tribes that have trust funds are subject to this provision. There are no enforcement provisions for those tribes that have no trust fund assets. Thus this provision unfairly discriminates against tribes with trust funds. The concept of attaching tribal trust funds fails to recognize that different tribes have different economic situations. There are alternative methods for providing financial security which should be considered. These include: - Establishment of a `Default Fund" made up of a percentage of collections from all tribal programs; - Individual surcharges within tribes to cover the Costa of those who fail to make payments; - Require mortgage insurance - Denial of further housing assistance to tribes that default. These and other possible alternatives would provide the financial security sought by the federal government without risking the loss of tribal trust funds. Reasonable approaches to addressing the question of tribal housing financial management need to be explored. This bill has the potential for including provisions for improving tribal housing management. This bill allows for a role for tribal governments in overseeing tribal housing efforts. The relationship between tribal governments and the housing programs needs to be strengthened. There is a need for coordination between housing and other tribal efforts including human services and economic develop- ment. There is also a need for stronger coordination between Indian housing programs and the judicial and legislative structures of Indian tribes. This bill allows for one percent of the total funds appropriated under Title I and Title II to be used for training and technical assistance. This resource should be used to provide housing management technical assistance to tribal governments. This technical assistance should be designed around the needs of the tribal governments. Section 203(c) requires that the tribe include in its application for assistance under Title II a tribal ordinance designating or establishing a Tribal Housing Agency. This ordinance, in practice, should be a comprehensive tribal housing ordinance. The tribal housing ordinance should include a - PAGENO="0539" 533 statement of tribal housing policy, tribal housing standards, eligibility for participation in tribal housing programs, penalties for failure to meet obli- gations, foreclosure procedures, and tribal enforcement procedures. 2. Trust Lands Another concern with the bill is the provision focs~ale of trust by the Secretary in Section 103. This Section provides tha~EheSecretary may sell a house constructed or acquired with Housing Improvement Program funds, along with the land upon which it sits, if: 1) HIP funds, minus 10% per year, are reimbursed to the federal government, and 2) The tribe has been given the opportunity to buy the house. This presents a danger for~tribal trust lands. Say thirty houses are built with HIP funds, and for some reason, the Secretary decides to sell those houses. The tribe cannot purchase the thirty houses, so they are sold to someone else, along with the land. The tribe ends up losing part of its lands. This problem could be ~resolved if the word"land" in the second instance in Section 103 is changed to the word "house". Another solution would be to strike the words "sale or". Other Concerns - - -- - There are other technical questions on the bill that need to be addressed in detail. The two concerns discussed above - Trust Funds and Trust Lands - seem to be the most serious problems with the bill in its current draft. These preliminary comments have arisen in discussion with elected tribal of~ioials and Indian-hoes-ing- personnel-.- Inter Tribal Council of Arizona reserves formal statement on the bill until the membership has had an opportunity to further study the bill. PAGENO="0540" 534 11011 TI1I~AI 110IJSI~0 AIJ[11OIITV tlouAe 8~LU 59S& Cong~e64rna~n I4~1vL~4 UdaU, M2zona How~ a Appwp'~LwtLon CoiwrA~ttee on InW1~Lo'L and In6uta/L A~aL/z4 Cong/r~e46man UdaJ2: It ~L~s ve'ty exc~LtLng and enaowLap,Lng ~o £Lnd out ~that you, and youx aonm~ttee Lo aga~~n £ootaLng out ~ the bene~t o~ the Ame'thuzn Ind.Lan. Youit p~topo~sed Hou~e SW, "Ind~an t1ou.~2ng Act o~ 19S2", ~ an £ncUcwtLon o~ thi~ conce.nn and e~o'zt. Lt ~Lo ueJ~y cL~4appO~LtvtLng to go ~Ln.to thL~ new adithiA~at~on'~ e~'ta on the p'LeJmi6e ofi bc2anthig the budget, but at the e.xpen4e and demiM o~ the Amei~can lncL~an.. The £e4e/LaL goveiuvnent ~4 agcvut on the path o~ dA~ega.'Ld.Lng and canceL&ng many ~Lat~on~sIvLp4 e~tab- Uohed by TJLeatLe4, etc., wLth the Ame~Lc,an Indcan6. One o~ the~ie ob4cmd ac~tLon4 L6 the po4A~tLon o~ the AdmJni,~etAc~Uon and 0MB on not £unding the HUt) Ind~Lan Howthtg P'wg'Lam. The2i~ `~ea4onJ~ng £4 the hegh ao4t o~ InctLan Hou~Lng Piwg'tam, but ~&i4tead o~ 4eLvtchLng Out wh4J, and nv~'thing on thL~s p'wbtem, theJJL 4L3np12 po4~tLon £4 to eVm.Lnate the p'wg'Lam. The "lnd~La.n Hou~Lng Act o~ 19~2" at tea4t £4 an atten~t to addn~4 the need to con- tLnue the wtgentF~y needed hows~ng pwgxam. We of~t& the ~o!1owJng wninent6 on the &U and hope~uJ1y £.t wW J,mpac~t the ~LnaL /~e4uLt. SectLon 3. (9) (`L) Standa'zd hou&Lng - Lt £4 ve~ty nc,owtag~ng that each i~eg~on, t'~be, e6tab&6he4 theA~A own 4tanda/Ld4 ~o't hou~Lng £netead o~ £mpo4A.ng £o'~e.~gn LLu.Lng 4tanda/Ld on the AmemLcan IndiLan. P.O. BOX 698 SECOND MESA ARIZONA 86043 (602) 131-2556 PAGENO="0541" J535 Howse &L~. 5988 Congkn~nvit ?~krnit~L~ Uda~U Page 2 TWLe I: lndian Hows~Lng lmp'wveineivt P'wg~'tam SectLon 101. (c) (3) Cont~act w~Lth p~Lva~te con4tjuic,tLon ~LJLm6 pW~4uoJvt to 4~tandW~d ~ede/La!~ con-t'iactLng p-tocedwLe6, on. Sec~tLon 101. (c) (4) have -LepaL'~s on. new con~tkuctLon pv~on.ined dL&ectty by the BwLeaEL o~ IndLan A~aijt4. The~s e p'wvA~sLon4 need -to be 4Loicken ai~ they aLe not con tant wLth -the -Ln-ten-t o~ cont'uzetLng and won.feLng wLth the abLIAshed Tn.Lba2 HouiLng Agency. Sec,tLon 101. (d) Th.t3 4eatLon 4houd be deLeted becau6e -the aLLen-teL Ln -the panLcuLo.n. tLtte wLLL be on exLaemeLij Low -Lncome and -to begLn wLth, they aLneady canneL a~ond hou4iJLg. To pLace them -Ln a home, compeL -them Lo pay tnLLt n.e~ntt -La the name 4Lta- tLon, wheAe the ~anLLty will end up La -the 4t'LeeL on. LLv-Lng lit a ve-ty deLapLda~ted homen. Ano-tken. po-Let, in owL a/Lea, mont o~ -the ~amL2y homen needLng n.epainn a'Le ousted by -the gamily, and natwutLty they tvLe no-t paying any n.en-tat paymen-tn. I~ nepa-IM a'Le -to be done on thLn home and a cha-ege ~oLLowo, Lt utLIL )Lenatt -La that ~amUy no-t allowing any impn.ovemen-tn on -that home becaune -they know -they canno-t a~ond the paymentn. Ran aLt, no imp'wvemetet on hounLng condLtLonn. SecLLon 104. A hou~se conntxuated, acquaed, on. n.epaiited pwtnuarvt ~to SectLon 102. (a) (2) on. (3) o~ hLn -tLtL.e may be noLd; Then Language han -LnrpLiccctLonn -that neaL pn.openty, even Land can be noLd, on -Il -linpL-Lca-ten appn.oval -to neLL. In owL nLtuatLon, -the Language an nuch," `~nay be Laann ~eiin.ed to ano-the'L Indian ~amiLy acceptab& -to the cLan, village, and -the TnJbaL CounciL " Than iwud -then eUm-Lna-te the necenn-Lty to n.eLmbuxn e -the Un~Lted Staten; the bene6Lto wLLL be ttann Lenned. PAGENO="0542" 536 How~e. ELU 5988 Cong'Le~4man MO/ot~ Udali Page 3 S~etLon 705. Th.~ app'wp'thtt~on~, Ln&te.ad o~ `~eacLLng ". no~t to exceed $30,000,000 ~ôt £LtcJt ~ yecut. ", Lt 4h0w&L head `. no~ £e~s than $30,000,000, ~n each ~cLtL yewt ThLc woald en~wte adequa~te ~wwUng each ~L~ca~ yeah. The nat ~o exceed Language does nat J~n4u~e adequate ~wuLLng. TLtL.e: IndLan Hou~.Lng ELnance Fund .Sec~tLon 203. (a) TxLba2 Hou&Lng Agenecj - Th~s 4e~t~ up Lhe xeqaLxemen~t ~ox Lhe TxLboi Counc(1 Lo eeLabV~oh Lhe Hou6Lag AgencLe~ to ad LeLex Lhe hOu4Lag p)wgxaim5. What iz.Lnd o~ Language ndLt be -~ th~s doauaen-t, wW~ La pLace the TxLbal Cowic~LLt ~n Lhe 4econdaxy po4L&on 04 Lax a~s en~oxc,Lng the co~Ctec~tLon Lo/tL~? I~ ~hL~s agency ~ Lo be ei,LabW had t~mJ.LLax ~to the pxeeent Howf-Lng Autho/~LtLe4 undea Lhe Hou&Lng Act oL 1937 a.~ amended, thv~ uL~L~t be ij'Jo ~epe'La~te hou.&Lng agenale4 on ~the xe4elwatLon. ShouLd theae be a pxouL&Lon ~o ~m~e,t the xe4ponbA1LtLe4,cont'~ac- LuaL obL~Lga-tLon4 oL Lhe p'~e4 cut HUt), Hou~-Lng AuthoaLty contxac~ts, ACC, -LL thL~ occwtx~~? OL cowt4e, -LL the pxe6ent Hou~Lng AtLthoal~ty become4 the de~Lgnated Kou~Lng Agency, po44-LbLy the'~e wLLt be no pxobLem6 -Lu thJ~ axea, but thL~ dapend6 on each -t'r-Lbe. SectLon 205. ThL4 ~ ec~tLon ~ J.jicon4-L4ten-t and the mo4-t con~ttove/t4aL ~Ln th~s ent~L'Le bAil. Thexe mu~t one xequLxement; eLthex the altachmen-t oL txuot £und4 axe to be xequed ox not be xeqwuted. MafaLng except~ons to thL~ p'tovA.~Lon -~s txea~tLng the IndLan TizIbe unLctLxLy, unequalLy, and cannat be tOLe'uLted. Becawse not aLt TxLbe4 hcwe txaot £uncLs, aLthex Jiid.Lv-Ldua-Uy ox thxo ugh TizIbal Councils, that ~Ln oxdex to Laeat a-U talbe4 equalLy, to maLe thLo pxogxam aua-LLabLa to aLL talbe4, thL~s pxov-L~Lon oL attachLng the Txu~st Fund -&s unacceptabLe. SeatiLon 205. (d) ThLs pxov-i_-s-Lon to negotLate a xepayment oppoxtunLty 4 houtd be xetaLned PAGENO="0543" 537 Kou~e BILe 5988 Cangne~s4ma~i Monj~..j.~ Udail Page 4 p'~La/L La Lhe ev-IcLIan p'wce~s. The beoL, and ma4L 4lngenL p'tov~Lelan La en~a-tce. caUecLlcin wouLd be La maIze p1w- v-lean heite thaL ~ a ThLbe, Hou&Lng Agency, becorne~ deLInquent at a ce~'z-taLn pe/L- centage o~ theJJL monthLy chvtge~, tha-t the T-~lbe becomeA ~cineUg-LbLe. i~O'~ cznothe,'L p feel, ~egwLdLe,s4 -16 tluzt t'~Lbe ha4 Ct deveLopment p1w feet unde'zway. The con- 4tJLuct(on o~ th~s deveLopment p'tog'tam 4houtd be denIed w~tLL the c.ottecllon ~`ta-te -16 heough~t back up to the acceptabLe Level. SectIon 209. (b) (2) Th16 4ecLIan 4houtd make `te6vtence La, and adapt the HUD LIml,tatlan on the mctxlmurn6 that a 6amily 4houtd pay 60/L 4heLtex, whIch -Inelude~ (1) payment on a hans e (`ten-tat) and (2) the payment £a't utleLtLe4 up La a `teaAonabte amount. Wiih thl(N~L April 29, 1982 ~ Hoanrable l,brris Udall House of Representatives Washington, D.C. 20515 Dear Sir: This letter is in reference to the recent proposal before Congress which would re-align Hill) under the BIA. In Section 215 of the Indian Housing Bill, the proposed "Indian Preference" language is ant in keeping with the strong Indian preference reguirecents which are rrandatory in order to further the current and past administration's direction to us on Tribal self-determination. We have found in the past, rmich to our regret, that if Indian preference is worded weakly, and/or left up to the interpretation of department-head bureat~rats, we (the Indians) sees to always end up an the proverbial short end of the stick as far as eiployirent, training arxl cuntracting are cencerned. Historically, we have had a very difficult tire in believing that the ~ite ittan would intentionally lie, or be less than honest in his dealings with us. It was a hard lesson for us to learn. And believe it or ant, there are sate of us that still have ant learned that lesson. It cust be a flaw in the Indian culture. As Qiainran of the Shoshone-Banrx)ck Tribes of Idaho, I ate genuinely anguished over the disproportionate ureeployrrent rate, lack of skilled work force and the sharrefully law per capita incare of our Tribal rrerrbers. Any wording used in the proposed Indian Housing Bill which is less darrending then that of Section 7(b) of the Indian Self-Determination Act, (P.L. 93-638), adds ~ rrr~r distress; in that it would be detrirrental in its effect upon all Tribal gJverrmwnts. As leader and representative of oy Tribe, I sincerely solicit your help in assuring that the Indian preference rarpiiratrents in Section 215 are strong and specific, and ant left up to the good intentians of the urrenliqhtened. Respectfully, R~ Willis Dixey, Shoshone-Banrock PAGENO="0573" 567 AMERICAN INDIAN COUNCLL OF ARCHITECTS AND ENGIW'E~F(~S CHARLES ARCHAMBAULT FREDERICK C. COOPER chairman secretary treasurer p.o. box M April 30, 1982 11675 Sw 66th ave. browning, montana 59417 portland, oregon 97723 The Honorable Morris Udall, Chairman Committee on Interior and Insular Affairs U. S. House of Representatives Washington, D. C. 20515 Dear Chairman Udall: The American Indian Council of Architects and Engineers has had an opportunity to review the proposed Indian Housing Act of 1982. While we support the general purposes of the Act, we were deeply disturbed by Section 215, which appears to be the "Indian preference" section of the Act. This section appears to severely undercut the Indian preference language contained in the Indian Self-Determination Act and the existing HUD Indian housing regulations. As written, it appears to make the implementation of an Indian preference program optional with the Secretary. Also, it uses the term "Indian affirmative action program" which connotes much less than would the normal "Indian preference" language. It is our concern that this language will lead to a vast diminishment in the enforcement of Indian preference on housing projects funded under your proposed bill. We were surprised to see such language coming from your Committee. In November of 1979 and again in May of 1980 your Committee held hearings on the role of Indian preference as a tool for Indian economic development. At those hearings, your Committee appeared to have concluded that Indian preference is a low-cost and extremely effective vehicle for ensuring the employ- ment of Indian workers and the utilization of Indian construction, architectural and other firms. Your Committee also played a leading role to compel HUD to enforce its Indian preference regulations under the existing Indian housing program. We do not understand, in light of those activities by your Committee, how the language in Section 215 of your proposed Indian Housing bill can be justified. It is our understanding that the Committee has been informed that tribal governments are opposed to Indian preference. If this is true, why is it that over 50 tribal governments have adopted extremely strong Tribal Employment Rights Ordinances (TERO5) which impose Indian preference requirements on all activities on the PAGENO="0574" 568 - The Honorable Morris tjdall April 30, 1982 Rage Two reservation -- nuch stronger than those contained even in Section 7(b) of the Indian Self-Determination Act. This clearly indicates that tribal governments support the general view that Indian preference is a vehicle for Indian economic development. Moreover, if strong language is not contained in the Indian Housing bill, it could severely undercut the authority of tribes to enforce their own Indian preference ordinances. There is some indication that under the law, a tribal government may not impose Indian contract preference requirements on federally-funded projects unless the federal government has done the same. (See, for example, the attached letter from 0MB.) We are aware that Indian Housing Authority directors are opposed to Indian preference. This is understandable since they, like all other employers and funding agencies, are opposed to any additional requirements that complicate their lives. (There is some hypocrisy here since many of these directors obtained their jobs because of Indian preference requirements.) This, however, is not sufficient grounds to oppose Indian preference. The argument that Indian preference adds to the cost of a project or decreases the quality simply is not true. Several years ago the BIA and the Facilities Construction and Operations Improvement Division of the Department of the Interior had a study conducted to determine what adds costs to construction projects. One of the questions asked of major construction firms was how much additional costs would be added to a bid if the project were covered by an Indian preference requirement. The answer by these major construction companies was that the additional costs would be negligible. We believe the accusations of higher costs and lower quality, therefore, are unsubstantiated and reflect nothing more than a prejudice that has been adopted by certain parts of the Indian community. The American Indian Council of Architects and Engineers and other Indian organizations would be pleased to work with you to develop more appropriate language. However, the easiest way to handle the issue is simply not to cover it in your bill. That way, Section 7(b) of the Indian Self-Determination Act would apply to the Act in the same way it applies to all other Interior Department projects for the benefit of Indians. (The present language, on the other hand, could be interpreted to say that Section 7(b) does not apply to housing projects funded under the bill'.) We would be glad to work with you in any way possible to implement the request made in this letter. Sincerely yours, CA/mm Charles Archambault cc: Cong. M. Edwards Chairman Cong. P. Williams PAGENO="0575" 569 OPI TRIRE van L. Sidney CHAIRMAN Raymond J Coin VICE-CHAIRMAN May 11, 1982 The Hono/wtbiLe Mov&L~s UdaU Koa~se o~ RepM2en~tcvUiJe4 235 Longwonth Hou4e O~~ce BuL&iLng CUaAhi~L~ton, V.C. 20515 Vea~t S~Lit: A copy o~ the p/wpo4ed Ind%an Hou~ng Act o~ 1982, I-fR 5988 ha4 `tecentfLy been ce,Lved -Le thAA o~4Lce. Atthough the PabUc Hea'zLng4 ~o'~ the S-LLL hcwe been concLuded, we wLoh Lo LabmLt Lhe6e cotmnenLo ~`tegaitd~Lng lnctLan ffoa4Lng. SLad-Le4 (awe 4kown thziL natLona2y, Koao~Lng ConditLon4 on IncUan RewwcntLons cv~e aLuocLou4, Lhe Ameitican IncUan beLng Lhe mo4-t iJL-hoaoed. ThLo manda~te6 Lhe need to eon-tLnue Lo p'wv~Lde Koui~Lng M4~4Lance Lo - ~the md-Lan PeopLu. A 4tz~e, decenL and 4anJ,tcvLy how6LnO ~ e~en.tAaL Lo Lhe U~e, heaP_th, ~a~e~ty and econom-Lcz gn.owth o~ the End,Lan PeopLe, and theee~oke a hasLy dec!=L~Lon /te- gaidLng Ind.Lan Kow&Lng muoL be auo~Lded. The HUV Indan ffow&Lng P'wgitam may be doomed ~ eLLm-LnatLon, howevn'~ ~the need so'. hows~Lng on Indian Re,~eJwatLon4 wLei con~tLnae Lo pe~'u~L~t. Coo'~d~Lna- Lion w~Uh Lhe va'iLoao Fede'uiJL Agenc~Le4 ~`~e4poni~LbLe ~o'~ de&ueey o~ hOa4~ng on Indian Re,se/wa.Uon4 ~ eooentLa2, ~ Lhe conLinua,tLon and de&ueey o~ Hou~Lng A~t~Lt~tanae 1'~ognam~ £o.'t Indian PeopLe. In)Lega/LcLte~4 o~ i~t~s pLace wi~th~Ln the ~ede'uzL govennmen~t, the /~e,ten-tLon o~ an Indian Hoalsing P'wg~am maoL be a 1~J.~'ut p~tLo'~LLy. Second, aUhough Lhe/te may be 4ome pkobem6 wL-th Lhe p'te4en~t I-WV IncUan Kou~Lng P/wg~iam, Lhe up- geacUng and `LeI'amp~fng o~ thA.6 hou~Lng pitogam may be mo4L econom-Lca2 and sea- 4LbLe. Th&tdty, Lhe t'utn~eizhing o~ Lhe Indian Hoa6Lng P'wgMm Lo anoLhvL ~andLng agency 4houLd be Lhe La&t aLteenatLve. The ptopo4ed Indian KoaIsAng Act o~ 1982, L6 a coninendabte e~o1it o~ yow~ committee in addxels&Lng the need ~ a contLunatLon o~ a HoaoLng A~s4Lsiance P'wgtam ~ the Indian PeopLe. Howeiien, thexe axe 4ome concc'uvs that need addee&sLng. One 4uch concaen ia the LntegxatLon o~ TxLhaL T'utht Fund6 in the pxopo4ed Indian tloa6Lng Act o~ 1982, it1s impact, e~ect on the TwSt xeL.aUon6hLp between the ~ede'taL gove.ltnme,vt and the Indian T'ribe1s. The/Le axe o/thex conceILn4 which the KopL TxLbaL ffow,Lng AwthonLty L4 add'~ei~Lng and LeLU be b'zingLng to yowL attention. &st wiahe4 on thL6 p'wpo4ed indian Hoa6Lng &U and may it pxoduce a mo4t compatibLe 4oLwtLon to thL4s tmgent and vitat Kou~ing need o~ the indian peopLe. ShouLd you have any que4ton4 ox need ~withex in~oxmatLon, pea6e do not he~sLtate to caLL this o,~frLce ox the IlopL TxLbaL Hou,s2ng AwthoALty at (602) 137-2 556. Ivan L. Sidney, - an IlopL T/LbaL CounciL THE In replyreferto: PAGENO="0576" 570 Côlville Confederated Tribes P.O. Box 150 - Nespelem, Washington 99155 (509) 634-4711 April 28, 1982 Senator Morris Udall, Chairman House of Representatives Committee on Interior and Insular Affairs U.S. Congress Washington, D.C. 20515 Dear Mr. Udall: On behalf of the Colville Confederated Tribes, I wish to express the Tribe's concerns regarding the Indian Housing Bill before your committee. I request you add the same language contained in Public Law 93-638, Sec. 7 (25 U.S.C. 450e (b)), Indian Preference requirements into Section 215 of the Indian Housing Bill before your committee at this time. If we are to continue to make significant progress in the future, Indian preference is a-viable vehicle for that progress. Thank you for your consideration in this matter. As in the past; I am looking forward to a positive decision from your committee regarding Section 215, and Indian preference. Respectfully, - Al Aubertin, Chairman Colville Business Council PAGENO="0577" 571 C 4-O52'47B5~9 03/30/82 ICS IPPIMTZZ CSP POMI 702'423.13pl TDMT FALLON NV `43 03-30 0807P EST 1S;08 EST Telegram CONGRESSMAN PAT WILLIAMS RPT OLY MOM CAPITOL ONE DC WE HAVE REVIEWED 918 PROPOSED BILL CITED AS INDIAN HOUSING ACT OF 1982, wE APE VERY MUCH OPPOSF:D TO THE INTRODUCTION AND/OR ADOPTION OF THIS BILL, HOUSING AUTHORITIES OF ARIZONA CALIFORNIA NEVADA AND NEW MEXICO HAVE TAKEN A STRONG POSITION AGAINST 818 INVOLVEMENT, FALLON PAIUTE Sp1OSHON~ MOUSING AUTHORITy AND LOVELOCK INDIAN HOUSING AUTHOW1TIES PU BOX 1195 FALLON NV 89408 18:08 EST IPMPOMX WSH PAGENO="0578" 572 (~~7033S12S 05,05/B2 Ics (PMBNGZ CSP PONT A1423B~ TO~P ONEIDA w5 391 0S~O5 6032P EAT 1~:3& fST 1.1.1 *.i Telegram westein union R~P MORRIS UDALL, CHAIRMAN OF INTERIOR AND INSULAR AFPA 1~5 CA~Il~JL IL THF POSITION iF ONEIDA TRIBE OF MISCONSIN REGARDING THE IN!! An HOUSINI, ACT (`F 19RZ "HRS9BA' THE O~EIOA (MIRE OF WISCONSIN DESIRES THAT THE FOLLOWING STATEMENTS BE ENIENED INTO THE CO~GRESSIOFJA1 RECORD REGARDING THE ABONE PQOPOSED LEG ISLAT ION, TITLE 1 INDIAN HOUSING IMPROVEMENT FUND. THIS TITLE WOULD PLACE UNNECESSARY DOSCRETIDNARY PDM~RS IN THE SECRETARY OF INTFRIOR AND HORK TO UNDERMINE SELFGOVERNMFNT. INDIAN PREFERENCE IS NOT PROVIDED FUR, AND SECTION 101 (C) (`4) MOULD ELIMINATE TRIBAL CONTROL WHEN TRIBES COULD PERFORM THE SAME SERVICES BY A M35 CONTRACT. TITLE 2 INDiAN HOUSING FINANCE FUND. MHILE THE PROBLEM OF ACCOUNTABILITY INHIBITS OTHER TRIBES FROM SHORING MANAGEMENT COMPETENCE, THE ONEIDA TRIBE OF WISCONSIN AND OTHERS HAVF MAINTAINED AN EFFECTIVE AND EFFICIENT TRIBAL HOUSING AUTHORITY, THIS TITLE MOULT IN EFFECT AUTPIORIZE ENCURBERANCE OF TRIBAL TRUST FUNDS AND AGAIN PLACE FIORE DISCRETIONARY BORER IN THE HANDS OF THE SECRETARY. IT COULD FURTHER REGUIRE TRIBES TO MAINTAIN TWD HOUSING AUTHORITIES. FINALLY, THIS TITLE, IF PASSED MOULD BE AN UNCONSTITUTIONAL DENIAL OF DUE PROCESS TO TRIBAL GOVERNMENTS DUE TO THE TOTALLY INADEDUATE P4OTIC~ PRUVISIONS, THERE MAY SF OTHER CONSTITUTIONAL CONS ICEPATICFIS AS WELL, TITLE 3 INDIAN HOUSING LOAN GUARANTEE FUND, TRIBAL COURTS ARE NOT SPECIFICALLY INCLUDED In THE TERM COURTS OF COMHCrNN, ~JL~IAAL~L~' SECTION 309 (A) (1). IT FURTHER IMPLIES FORECLOSURES OF INDIAN LANDS INDEPENDENT OF TRIBAL GOVERNMENT AUTHORITY, TITLE `4 MISCELLANEOUS PROVISIONS. NEITHER THIS TITLE NOR AN~ OTHER PROVISIONS OF THE PROPOSED ACT PROVIDES FOR R38 CONTRACTING PY TRIBES FOR HOUSING NOR SOVEREIGN IMMUNITY. CONCLUS~DN, THE ONEIDA TRIBE OF WISCONSIN OPPOSES THE INDIAN HOUSING ACT OF 1982 (HR5988), IN ITS PRESENT FORM. THE ONEIDA TRIBE URGES THE HOUSE COMMITTEE CN INTERIOR AND INSULAR AFFAIRS TO ADDRESS THE ABOVE CONCERNS. THE ONEIDA T'4IBE RECOGNIZES THE NEED TO HAVE AN INDIAN HOUSING MILL AND ACKNOWLEDGES THE PROBLEMS EXISTING IN THE PRESENT RELATIONSHIPS BETWEEN TRIBAL HOUSING AUTHORITIES AND THEIR FUNDING AGENCIES, ULTIMATELY, THE FEDERAL GOVERNMENT HAS A RFSPONSIBILTY TO ASSIST TRIBES TO PROVIDE ADEQUATE HOUSING, THIS HAS BEEN DONE IN THE PAST H U D. HRS9AS DOES NOT ADEQUATELY SAFEGUARD THE TRUST RELATIONSHIP BETWEEN THE U S AND THE TRIBES. IF THESE OBJECTIONABLE PROVISIONS MERE REDRAFTED TO SATISFY THE STATED CONCERNS, AND THE TRIBE WAS PERMITTED TO PARTICIPATE IN THE REDRAFTING OF THE SAME PROVISIONS, A RESOLUTION IS MORE LIKELY TO OCCUR, THIS POSITION IS SUPPORTED BY OUR PRESENT ONEIDA MOUSING AUTHORITY. SINCERELY GARY METOXEN, CHAIRMAN OF THE ONEIDA TRIBE OF INDIANS CF WISCONSIN 1b13W EST IPMPOMX WSH PAGENO="0579" ARAPAHO BUSINESS COUNCIL M PRO3P BOX 21~ FT WASHAKIE WY825I~i 573 4~0b$'453S12Lj 05/04/82 IC5 IPMMTZZ CSP WSHB 3073322473 4GM TORT LANDER WY 227 05.04 0919P EST CONGRESSMAN MORRIS UDALL WASHINCTON DC 20515 RE~ THE INDIAN HOUSING ACT OF 1982 (M,R.S98b) (134,21) DEAR CONGRESSMAN UDALLI THE NORTHERN ARAPAHO TRIBE OF WYOMING SUPPOHT THE CONCEPT OF THE INDIAN HOUSING ACT OF 1982 WITH SOME CHANGES. - UNDER TITLE I' SECTION 101 WE FEEL THAT THE CONTRACTING AUTHORITY REMAIN WITHIN THE INDIVIDUAL TRIBAL GOVERNMENT WHEN PROVIDING ASSISTANCE THROUGH CONTRACTING, AS IT IS WORDED NOW THE SECRETARY OF INTERIOR HAS THE AUTHORIZATION TO CONTRACT THE MOST PRIVATE CONSTRUCTION COMP4NY, SECTION l02(A) (2) (3) CONCERNING MAJOR REPAIR AND CONSTRUCTION, FINANCING THE TERM SHOULD SE DEFINED TO A DOLLAR AMOUNT, THE LIEN SHOULD BE PLACED ON MAJOR CONSTRUCTION ONLY, NOT FOR SMALLER REPAIRS, UNDER TITLE II. SECTION 203(C) SHOULD MAKE CLEAR THAT THE TRIBE RETAINS CONTROL OF OPERATIONS. DUE TO THE NATURE OF THE WIND RIVER INDIAN RESERVATION TRIBES, THE ARAPAHO AND SHOSHONE TRIBES, EACH TRIBE SHOULD BE GIVEN CONTROL OF OPERATIONS, THE NORTHERN ARAPAHO TRIBE WISHES THE 8PECI~IC LANGUAGE IN THE BILL BE INCLUDED TO BASE THE ALLOCATION OF THE NUMBER OF HOUSING U~ITS BE BASED ON THE POPULATION RELATIVE NEED, IN SECTION 205 THE TRUST FUNDS ARE HELD UP IN THE EVENT OF DEFAULT, WE WISH THIS SECTION BE ELIMINATED. WE PROPOSE THE USE. OF EXISTING TRIBAL COURT TO ENFORCE COLLECTIONS TO PREVENT DEFAULT, RESPECTFULLY SUBMITTED, JOSEPH OLDMAN CHAIRMAN NORTHERN ARAPAHO BUSINESS COUNCIL NORTHERN ARAPAHO TRIBE 21:21 EST MGMCUMP PAGENO="0580" SHOSHONE AND ARAPAHOE TRIBES 401 BOX ~17 FORT WASHAKIE WY 82510 574 !~~!~~MaIIgra1Ti lj `4.001005S130 05/10/82 ICS IPMMTZZ LSP WSHB 307~5582o8 P1GM TDMT LANDER WY 1420 05-00 02~SP EST HONORABLE MORRIS UDALL' CHAIRMAN COMMITTEE OF INTERIOR INSULAR AFFAIR HOUSE OF REPRESENTATIVES 235 CANNON HOUSE OFFICE BLDG WASHINGTON DC 20510 REt H.R,5988, INDIAN HOUSING (138.21) DEAR MR UDALL. THE SHOSHONE AND ARAPAHOE TRIBES OF THE WINO RIVER INDIAN RESERVATION IN WYOMING STRONGLY SUPPORT YOUR EFFORTS TO OBTAIN LEGISLAtION THAT WILL IONTINUE THE FEDERAL POLICY OF PROVIDING HOUSING FOR RESERVATION INDIANS. - THE IRISES COMMEND YOU AND YOUR CO-SPONSORS FOR YOUR RECOGNITION THAT RESERVATION INDIANS MUST LOOK TO THE UNITED STATES FOR AID IN THE CONSTRUCTION AND FINANCING OF HOUSING, THE STATE HAVE NO RESPONSIBILITY, YOUR STATEMENT IN THE MARCH3O 1982 CONGRESSIONAL RECORD MAKES CLEAR TO THE TRIBES THAT YOU UNDERSTAND THE DCSPERATE NEED. TITLE ONE OF THE BILL WOULD AUTHORIZE AN APPROPRIATION OF 30.MILLION EACH FISCAL YEAR FOR THE HOUSING IMPROVEMENT PROGRAM (HIP). THE TRIBES ARE SURE THAT YOU ARE AWARE THAT 30-MILLION DOLLARS ANNUALLY WILL NOT DO THE HIP JOB, THEY APPRCCIATE THAT THE 30-MILLION DOLLAR FIGURE IS IMPOSED BY CURRENT BUDGETARY RESTRICTIONS THAT HOPEFULLY WILL BE OVERCOME IN FUTURE CUNGRE?SES. THE TRIBES ARE MUCH CONCERNED AND STRONGLY OPPOSE SECTION 205 OF THE BILL AS DISCRIMINATORY AND GROSSLY UNFAIR, ?ECTION 205 WOULD MAKE THE TRIBES BE GUARANTOR OF EVERY INDIVIDUAL RECiPIENT OF A HOUSING BENEFIT. SECTION 205 WOULD SUBJECT ALL TRIBAL TRUST FUNDS TO ATTACHMENT FOR PAYMENT OF THE DEBTS THAT INUIVIDUAL INDIAN OWE TO THE RESERVATION HOUSING AUTHORITY. THE PROVISION IS DISCRIMINATORY BECAUSE NO ?YCH BURDEN IS CAST ON ANY OTHER POLITICAL ENTITY IN THE UNITED STATES, NO CITY IN THE UNITED STATES IS COMPELLED TO GUARANTEE PAYMENT OF MONIES OWING BY ITS HOUSiNG AUTHORITY. CERTAINLY, MUNICIPAL FUNUS ARE NOT SUBJECTED TO ATTACHMENT. - THE PROVISION IS UNFAIR BECAUSE IT REQUIRES ALL THE PEOPLE OF THE TRIBES TO ASSUME THE DEBTS OF SOME INDIVIDUALS, MEMBERS AND NON-MEMBERS. KEEP IN MIND THAT UNDER THE INL~IAN CIVIL RIGHTS ACT, TRIBES CANNOT DISCRIMINATE AMONG INDIANS ONTHE RESERVATION. SECTION 3 (s) OF H.R, 5q88 AUTHORIZES THE BENEFITS FOR ANY INDIAN ON THE RESERVATION WHETHER OR NOT A MEMBER OF THE TRIBE OF THAT RESERVATION, IN THIS FASHION THE BILL WOULD USE TRIBAL PROPERTY TO PAY THE DEBTS OF STRANGERS TO THE TRIBES, - AS WE SEE IT, UNLESS TRIBES ARE ELIMINATED tHOM SECTION 205, THE ONLY PAGENO="0581" 575 TRIBE WHO WILL PARTICIPATE ARE THOSE WITHOUt ANY TRIBAL TRUST PUNDS OR ANY PROSPECT OF RECEIVING SUCH FUNDS. THOS, THE OBJECTI~ OF THE BILL WOULD BE DEFEATED AND ELIGIBLE INDIANSWOULD BE DENIEUHUUSNG BENEFITS. SINCERELY ROBERT N1 HARRIS SR, CHAIRMAN SHOSHONE BUbINESS COUNCIL JOSEPH OLOMAN, CHAIRMAN ARAPAHOE bUSINESS COUNCIC 1'U49 EST MGMCOMP [ PAGE 2 PAGENO="0582" 576 ASSN ON AMERICAN INDIAN AFFAIRS 432 PARK AVE SOUTH NEW YORK NY lOOlb !~ Mallgram I 40485b7512L~ 05/04/82 ICS IPMMTZZ CSP WSHB 2126898720 MGM TDMT NEW YORK NY 265 05-04 0'4UP EST THE HONORABLE MORRIS K UDALL~ CHAIRMAN COMMITTEE ON INTERIOR AND INSULAR AFFAIMS U 5 MOUSE OF REPRESENTATIVES WASHINGTON DC 20515 DEAR CONGRESSMAN UDALL, - THE ASSOCIATION ON AMERICAN INDIAN AFFAIRS, UN BEHALF OF ITS ~0,000 INDIAN AND NON~INDIAN MEMBERS AND CONTRISUTURS, WOULD LIKE TO CONGRATULATE YOU AND THE HOUSE INTERIOR COMMITTEE ON ITS OUTSTANDING INITIATIVE IN DEVELOPING H,R, 5988, THE INDIAN HOUSING ACT OF 1982, THE ASSOCIATION SUPPORTS THIS INITIATIVE IN PRINCIPLE, RUT SU(i(.,ESTS THE FOLLOWING CHANGES IF THE SILL IS TO MEET ITS OJECTIVE OF HELPINI, TO RECTIFY THE DEPLORABLE STATUS OF INDIAN SOUSING, OUR MOST CRITICAL OBJECTION TO THE LEGISLAT1UN IS THAT SECTION 205 BE AMENDED TO DELETE THE PROVISION EMPOWERING `tHE SECRETARY OF THE INTERIOR TO ATTACH TRIBAL TRUST FUNDS, THE COMMITTEE SHOULD EXPLORE MORE APPROPRIATE ALTERNATIVES TO HELP ASSUR~ PAYMENT OF MONIES OWED TO THE FUND, WE ALSO SELIEVE THAT THE INDIAN HOUSING LOAN GUARANTEE FUND ESTAbLISHED UNDER TITLE III SHOULD INCLUDE INDIAN IRiSES AS WELL AS FAMILIES AS ELIGIBLE PARTICIPANTS, SECTION 302 SHOULD bE AMENDED TO CLARiFY THAT IT GRANTS NO NEW AUTHORITY TO IKE SECRETARY, WE WOULD ALSO LIKE TO POINT DOT THAT INDIAN TRIBES, UNLIKE NON.IND1AN STATE AND LOCAL UNITS OF GOVERNMENTS, DO NOT HAVE THE AUTHORITY TO ISSUE MORTGAGE REVENUE LOANS' AND SUGGEST THAT H,R, 5988 BE AMENDED TO RECTIFY THIS SITUATION AND PROVIDE INDIAN TRIbES THE NECESSARY AUTHORITY, WITH THESE AMENDMENTS, WE BELIEVE H,R, 5988 WILL GO A LONG WAY TOWARD PROVIDING SaFE, DECENT AND AFFORDABLE HOUSING TO INDIAN FAMILIES, STEVEN UNGER EXECUTIVE DIRECTOR ASSOCIATION ON AMERICAN INDIAN AFFAIRS 432 PARK AVE SOUTH NEW YORK NY 10016 16:13 EST MG MC 0 P4 P PAGENO="0583" 577 MA1LGRAR SERVICE CENTER 4-047504S 187002 07/06/82 ICS IPMBNGZ CSP JKSA 1 6016565251 MGM TDBN PHILADELPHIA MS 07-06 0340? EST TRIBAL ADMINISTRATION, P MARTIN ROUTE 7 BOX 21 PHILADELPHIA MS 39350 THIS MAILGRAM IS A CONFIRMATION COPY OF THE FOLLOWING MESSAGE: 6016565251 11GM TDBN PHILADELPHIA MS 208 07-06 0340? EST ZIP HONORABLE THAD COCHRAN UNITED STATES SENATE WASHINGTON DC 20510 IN A TELEPHONE CONVERSATION WITH ELMER SAVILLA OF THE NATIONAL TRIBAL cHAIRMENS ASSOC~IATION TODAY, HE MENTIONED TO ME THAT YOU WOULD LIKE 1~T' VIEWS ON THE SUBMISSION OF A COMPANION BILL TO H.R. 5938, THE PROPOSED INDIAN HOUSING ACT OF 1932. I WHOLEHEARTEDLY SUPPORT PASSAGE OF THE BILL, WHICH WOULD AID GREATLY IN REDUCING THE PERCENTAGE OF INDIAN SUBSTANDARD HOUSING FROM THE CURRENT LEVEL OF OVER 40 PER CENT. THE HOUSE COMMITTEE HAS REVISED LANGUAGE CONTAINED IN THE ORIGINAL DRAFT OF H.R. 5938 TO CLEAR UP PROBLEMS WITH THE CONVEYANCE OF TRUST LANDS AND THE ATTACHMENT OF TRUST FUNDS WHICH HAD CONCERNED ME. BUT DEMOCRATS ON THE HOUSE ~MMITTEE ADDED LANGUAGE REQUIRING THE PAYMENT OF DAVIS-BACON WAGES IN CONSTRUCTION WHICH I DO NOT THINK WOULD BE IN THE BEST INTEREST OF INDIAN TRIBES, IN TERMS OF COST EFFECTIVENESS AFID ENCOURAGEMENT OF TRI BAL CONSTRUCTION ENTER? RISES. I RESPECTFULLY URGE THAT YOU CONSIDER INTIIODUCING A COMPANION MEASURE TO H.R. 5988 IN THE SENATE A~EUT THE DAVIS-BACON WAGE REQUIREMENT. IF YOU WOULD LIKE FURTHER DETAILS ON THE MEASURE OR ON INDIAN HOUSING POSITIONS NATIONALLY, PLEASE HAVE YOUF~ STAFF CONTACT ME OR MR. ~VILLA. PHILLIP MARTIN, CHIEF MISSISSIPPI BANK OF CHOCTAW INDIANS PHILADELPHIA MISS 601-656-5251 1544 EST MCRCOhF' MCM 0 PAGENO="0584"