§ 261.4

(b) Repairs to housing that will become standard. Under this category:

(1) Financial assistance will be granted to finance repairs, renovation and/or enlargement of existing structurally sound but deteriorated dwellings which can economically be placed in a standard condition.

(2) Upon completion of work, the dwelling should at least meet the decent, safe and sanitary standards of standard housing as defined in

§ 261.2(i).

(3) The cumulative total expenditure of the Housing Improvement Program funds should not exceed $13,000 for any one dwelling.

(4) Undertakings under this category are primarily for applicants who are living in their own home. Applicants who rent from Indian owners are eligible on the condition that, prior to the start of the improvement, a written occupancy agreement exists for a minimum of five years. The agreement must provide that rent for the term cannot be raised because of the improvement work. The owner must also agree in writing with the tribe that in the event the agreement is terminated prior to expiration of the term, he will hold the premises vacant for up to six months for a new occupant who meets the eligibility requirements of this Part. Repair of a rental unit occupied by an eligible applicant but owned by a non-member of a Federally recognized Indian tribe (including non-Indians) will not be made unless approved in writing by the Area Director after receiving a written justification from the Superintendent.

(c) Down payments. Under this category:

(1) The Housing Improvement Program provides grants in order to make the applicant eligible to receive housing loans from tribal, Federal or other sources of credit. Grants are only for standard housing. The applicant must establish that he has an inadequate income or limited financial resources to meet the full cost of the loan.

(2) The grant should not exceed the amount necessary to secure the loan plus the closing costs or $5,000, whichever is less. (In the case of Alaska, the

grant amount should not exceed $6,000.)

(3) The method of advancing the grant must insure that the funds are used for the purpose intended. No security will be taken or lien made on the house because of the grant.

ry:

(d) New housing. Under this catego

(1) The Housing Improvement Program will provide the financing of the construction of new standard housing when it is established that there is no reasonable prospect that standard housing can by financed from sources other than the Housing Improvement Program. This category may not be used if there is an unmet need in the category given in paragraph (b) of this section, unless there is a dire need for assistance under this category and it is justified in writing and approved by the Area Director.

(2) The housing provided under this category must meet the housing standards of this Part 261. Two exceptions to standard housing will be permitted:

(i) Where one or more of the utilities are not available and there is no prospect of the utilities becoming available; and

(ii) In areas of severe climate, house size may be reduced to meet applicable building standards of the region. The house site must be chosen so that access to utilities is most economical, ingress and egress adequate, aesthetics are considered, and proximity to school bus routes are taken into account.

(3) The cumulative total expenditure of funds may not exceed $30,000 for a dwelling and equipment. (In the case of Alaska, the total expenditure of funds may not exceed $40,000.) The occupant will be responsible for all maintenance of the completed dwelling, and all utility fees, deposits or costs required for service. All contractor built houses must contain a oneyear warranty against defects, materials, and workmanship.

(4) The applicant must have ownership (as defined in § 261.2(h)) of the land on which the house is built. In the case of a leasehold interest, it must be for not less than 25 years. Within five years after completion of

construction if an owner of a house built on tribal lands desires to move, he must first notify the tribe of his intention. Within 60 days of such notice, the tribe shall have the right to either assume his interest in the house or designate someone to assume his interest. If the tribe takes no action, he may dispose of the house without regard to any restrictions in this Part.

(5) Adequate fire insurance where determined feasible by the Superintendent must be carried.

[40 FR 19195, May 2, 1975. Redesignated at 40 FR 44543, Sept. 29, 1975, and amended at 42 FR 43977, Sept. 1, 1977]

§ 261.5 Eligibility.

(a) Priority is given to families with the greatest need in relation to income, family size, and of not being eligible for other available programs providing housing assistance. Each application for assistance must be approved by the tribal housing authority or other officially designated housing entity of the tribe being served. Applications of non-tribal Indians must be submitted to the Superintendent of the local agency office for approval. Applications to the housing authority or other officially designated housing entity of the tribe being served must be in writing and must establish that: (1) The applicant is an Indian.

(2) The present housing of the applicant is substandard or inadequate in terms of capacity to meet the physical needs of the family.

(3) The economic resources of the applicant are inadequate or factors exist which make the applicant unable to secure housing from other sources.

(4) The applicant for assistance under one of the categories in § 261.4 meets the ownership requirements given under that category.

(b) After July 1, 1975, an applicant can only receive assistance one time under categories given in paragraphs (b), (c), and (d) of § 261.4.

(c) The Department of Housing and Urban Development financed houses under the administration of an Indian housing authority will not be eligible for assistance until the end of the project indebtedness to the Federal Government.

§ 261.6 Program implementation.

The Housing Improvement Program will be implemented according to the plans, priorities and requests of the tribe served. In accordance with this, the methods which may be used to implement the program are:

(a) Direct grants to applicants.

(b) Contract or grant agreements negotiated with tribes, Indian housing authorities established pursuant to tribal ordinances or state laws, or incorporated tribal organizations. The completion of a specified amount of housing construction or improvement will either be performed directly by the tribe or organization or through a program of the tribe or organization providing funds and assistance to Indi

ans.

(c) Contracts negotiated by the Bureau of Indian Affairs' Contracting Officer or his designated representative for elements of an agency Housing Improvement Program with one or more of the following: Tribes, Indian housing authorities, Indian controlled private enterprise, incorporated tribal organizations.

(d) Contracts with private nonIndian contracting firms in accordance with normal Bureau of Indian Affairs' contracting procedures.

(e) Programs administered directly by the Bureau of Indian Affairs.

§ 261.7 Appeals.

(a) If an applicant is denied assistance by failure to obtain tribal approval under § 261.5(a), he may appeal to the Superintendent. The Superintendent may approve assistance if the applicant is in serious need of housing. The Superintendent's decision on such appeals may be appealed by the applicant or the tribe under the provisions of Part 2 of this chapter.

(b) Denial of an application by a Bureau of Indian Affairs' official may be appealed under the provisions of Part 2 of this chapter. Notice of the right of appeal must be given each applicant in the notice of rejection.

§ 261.8 Inspection.

The Superintendent is responsible for inspection or the assurance that there is adequate provision for inspec

tion by Bureau of Indian Affairs' employees, contractors, or subcontractors during the course of construction. The Superintendent is also responsible for the provision of inspection prior to the purchase of an existing house. These inspections are not necessary where inspection is provided for by the Department of Housing and Urban Development or the Farmers Home Administration or other governmental agencies.

§ 261.9 Flood disaster protection.

No Housing Improvement Program funds, under categories (b), (c), and (d)

of § 261.4, will be expended in areas designated as having special flood hazards under the Flood Disaster Protection Act of 1973 (Pub. L. 93-234, 87 Stat. 977) unless the requirements for suitable flood insurance are met.

§ 261.10 Waivers.

A proposal for a waiver of the regulations of this Part 261 must be submitted to the Commissioner and will be considered if substantial justification is presented according to § 1.2 of this chapter.

Subpart A-General Provisions

§ 271.1 Purpose and scope.

(a) The purpose of the regulations in this part is to give the application and approval process for non-profit contracts with the Bureau under section 102 of Title I of the Indian Self-Determination and Education Assistance Act (Public Law 93-638, 88 Stat. 2203). Title I is known as the Indian Self-Determination Act. Contracts under the Act include "tribal governmental functions" as defined in § 271.2(q), "business related functions" as defined in § 271.2(d), and certain contractable trust resources programs or parts of programs as set forth in § 271.32. The nature of contracts with Indian entities which do not fall within the purview of the Act, including contracts which may provide for profit, and the conditions for entering into such contracts, are set forth in the regulations implementing the Act of June 25, 1910 (36 Stat. 861, 25 U.S.C. 47), commonly referred to as the "Buy Indian" Act.

(b) Section 104 of Title I of the Act provides authority for making grants for certain purposes. It is the Bureau's policy to make grants for the purpose specified in section 104 of the Act in lieu of contracts. Part 272 of this chapter gives the procedures and requirements for obtaining grants under section 104 of the Act.

(c) Nothing in these regulations shall be construed as:

(1) Affecting, modifying, diminishing, or otherwise impairing the sovereign immunity from suit enjoyed by an Indian tribe;

(2) Authorizing or requiring the termination of any trust responsibility of the United States with respect to the Indian People; or

(3) Permitting significant reduction in services to Indian people as a result of this Part.

(d) Nothing in these regulations shall be construed to mandate a tribe to apply for a contract or contracts with the Bureau to plan, conduct, and administer all or parts of any Bureau program. Such applications under these regulations are strictly voluntary.

§ 271.2 Definitions.

ar

As used in this part: (a) “Act” meal the Indian Self-Determination Education Assistance Act (Public La 93-638, 88 Stat. 2203).

(b) "Area Director" means the off cial in charge of a Bureau of Indian Affairs Area Office.

(c) "Bureau" means the Bureau of Indian Affairs.

(d) "Business related function' means all programs authorized to be administered by the Bureau for the benefit of Indians enumerated as line items in the Bureau's annual budget request under Tribal Resources Development as the Subactivities of Business Enterprise Development, Credit and Indian Action Teams; Revolving Funds for Loans; Indian Loan Guaranty and Insurance Funds; and also programs or parts of programs connected with construction projects but exclusive of the actual construction of the project.

(e) "Commissioner" means the Commissioner of Indian Affairs.

(f) "Days" means calendar days.

(g) "Economic enterprise" means any commercial, industrial, agricultural, or business activity that is at least 51 percent Indian owned, established or organized for the purpose of profit.

(h) "Indian tribe" means any Indian Tribe, Band, Nation, Rancheria, Pueblo, Colony or Community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) which is federally recognized as eligible by the United States Government through the Secretary for the special programs and services provided by the Secretary to Indians because of their status as Indians.

(i) “Indian” means a person who is a member of an Indian tribe.

(j) "Previously private school" means a school (other than a Federal school formerly operated by the Bureau) that is operated primarily for Indian students in any grade or grades from age 3 years through grade(s) 12; and, which at the time of application is controlled, and sanctioned or chartered by the governing body(s) of an Indian tribe(s).