3. Aid the tribal housing authority in the preparation of the Application for Program Reservation for submission to the PHA. To support the application, the BIA will conduct and prepare or assist the tribal housing authority in the conduct and preparation of, sample surveys and reports on income, existing housing, family sizes, and attitudes toward mutual-help participation.

4. Assist the tribal housing authority in the preparation of the Development Program including site selection and descriptions, preliminary sketches, outline specifications, utility analyses, budgets (including costs for materials, participant contribution, and non-participant leadsmen and skilled craftsmen), and data on financial feasibility.

5. Assist the tribal housing authority to prepare dwelling unit designs, site plans, engineering studies, and preliminary and final working drawings and specifications.

6. Assist the tribal housing authority with site selection and land acquisition services, including appraisals, engineering surveys, soil investigations, maps, title evidence, negotiations, and other actions and documents, as necessary.

7. To the extent they are not adequately provided by the tribal housing authority or otherwise without charge to the mutual-help project or participants, the BIA will provide the tribal housing authority with adequate construction services, including overall superintendence, inspection (including quality of materials and construction and adherence to specifications), working documents, purchasing, accounting, cost control, and security of materials, equipment, and tools.

8. Assist the tribe in encouraging, within the limits of economy and feasibility, the use in the projects of locally developed or manufactured materials or products.

9. Upon request of the tribal housing authority or the PHA, the BIA will assist the authority in the establishment, subject to approval of the PHA, of maximum income limits, operating charges, and other conditions of eligibility and occupancy applicable to participants, and in the selection and organization of qualified participants and replacements for any of the participants.

10. Determine, or assist the tribal housing authority in establishing, wage rates for the participants and for any non-participants employed in the development of the projects.

11. To the extent that the BIA or the PHA determines that administrative services are not adequately provided by the tribal housing authority or otherwise without charge to the mutual-help project or participants, the BIA will provide for administration of the project. The expenses of such administration may be repaid in whole or in part by the tribal housing authority from the monthly service charges paid by the mutual-help participants. Such administration will include selection and certification of eligibility of participants; collection of participant payments; maintenance of book of accounts; preparation of budgets; preparation of required reports and financial statements; periodic reexamination of participants' income; inspection of dwellings to assure proper housekeeping and maintenance; maintenance and repair in case of participants' failure to take such action; obtaining of required insurance coverage; provision of legal services when necessary; and enforcement of all requirements of the agreement between the participant and the housing authority.

12. Upon request by the PHA, the BIA will review and approve perating budgets and insurance policies for the project and transmit hem to the PHA; conduct fiscal audits, management reviews, occu>ancy audits and maintenance engineering surveys; certify to the PHA hat the low-rent character of the project is being maintained and that the other requirements of the tribal housing authority's annual contributions contract are being met; and take any steps necessary to obtain correction of any deficiencies found.

13. Coordinate with the Public Health Service for the provision of health and sanitary facilities for anticipated or proposed projects. Where the PHS will not be able to provide such fa ciliti esin time for the completion of an anticipated or proposed project, the BIA, the PHA, and the tribe will arrive at a mutually satisfactory arrangement for the provision of such health and sanitary facilities as a condition to proceeding with the project. The BIA will certify to PHA that PHS specifications for installation, inspection, and performance of such facilities have been met.

14. Endeavor to formulate training programs for the mutual-help participants in order to obtain the highest level of competence in the construction and maintenance of their homes.

B. PUBLIC HOUSING ADMINISTRATION

In relation to mutual-help housing projects, the PHA will do the following:

1. Assist the tribal government and the tribal housing authority in the performance of the organizational steps to qualify for financial assistance from the PHA.

2. Furnish advice to the tribal housing authority and the BIA on the analysis of the market surveys made to support the Application for Program Reservation.

3. Determine the number of dwelling units for each Program Reservation.

4. Furnish advice to the tribal housing authority and the BIA on all aspects of site selection.

5. Furnish advice to the tribal housing authority and the BIA on the preparation of the Development Program.

6. Prepare an annual contributions contract (providing, among other things, for loans and annual contributions from the PHA), and provide loans and annual contributions in accordance therewith.

7. Prepare contract forms for use by the tribal housing authority in contracting with mutual-help participants.

8. Approve each project from the standpoint of minimum health, safety, and occupancy standards, and consult with the BIA concerning standards of livability.

9. Provide initial training in development and management procedures for personnel of the tribal housing authority and the BIA who will be working on mutual-help projects.

10. Conduct periodic visits for inspection of the projects during construction to ensure that the PHA's requirements are being met (the tribal housing authority will be charged a fee for this service, as required by law, such fee to be included in the development cost of the project).

11. Prepare forms of resolutions to be adopted by the tribal housing authority which will establish operating policies, procedures, and guidelines for the authority's operations.

If the foregoing is in accord with your understanding, I would apappreciate your signing this letter in the space indicated below an returning it to me for duplication, so that we may provide printed copies for use by personnel in our agencies. Enclosed is a signed copy of this letter which may retain as your copy of our agreement.

Sincerely yours,

MARIE C. MCGUIRE, Commissioner, Public Housing Administration.

AGREEMENT CONCERNING CONVENTIONAL LOW-RENT HOUSING ON INDIAN RESERVATIONS

The following agreement is entered into between the PUBLIC HOUSING ADMINISTRATION and the BUREAU OF INDIAN AFFAIRS bearing in mind that the financial and contractual relationships involved are between the Public Housing Administration, the housing authorities, and the tribal governments, and that the agreement contemplates promotion of the independent initiative and responsibility of the housing authorities and tribal governments involved.

A. The responsibilities of the Bureau of Indian Affairs shall be as follows:

1. Determine whether or not the Indian tribe has the legal capacity to engage in the PHA-aided program.

2. Designate, for each project, a representative of the BIA to act as a coordinator with the PHA and the housing authority.

3. Assist the tribal government, as necessary, in the preparation and implementation of a Workable Program, including application for planning assistance.

4. Assist the housing authority in the preparation of the Application for Program Reservation and Preliminary Loan for submission to the PHA. To support the application, the BIA will conduct and prepare, or assist the housing authority in the conduct and preparation of, sample surveys and reports on income, existing housing, and family sizes.

5. Coordinate with the Public Health Service for the provision of health and sanitary facilities for anticipated or proposed projects. Where the PHS will not be able to provide such facilities in time for the completion of an anticipated or proposed project, the BIA, the PHA, and the housing authority will arrive at a mutually satisfactory arrangement, where possible, for the provision of such health and sanitary facilities as a condition to proceeding with the project. In this case, BIA will certify to PHA that PHS specifications for installation, inspection, and performance of such facilities have been met. 6. Assist the housing authority, as necessary, in the selection of an architect and in the preparation of the Development Program, including site selection and description, community and neighborhood planning, preliminary sketches, outline specifications, utility analyses, budgets, and data on financial feasibility.

7. Assist the housing authority with site selection and land acquisition services, including appraisals, engineering surveys, soil investigations, maps, title evidence, negotiations, and other actions and documents, as necessary.

8. Assist the housing authority and its architect, as necessary, in the preparation of design, site plans, engineering studies, and working drawings and specifications.

9. Assist the housing authority in complying, and in obtaining compliance by contractors and subcontractors, with prevailing salary and wage rate requirements.

10. Assist the housing authority or architect in the provision of adequate construction services, including overall superintendence, inspection (including quality of materials and construction and adherence to specifications), purchasing, accounting, cost control, and security of materials, equipment, and tools. (Only construction by the contract method is covered. Additional details of agreement will be necessary when construction is by force account.)

11. Assist the housing authority in the establishment of conditions. of eligibility and, subject to specific approval of the PHA, of maximum income limits and rents.

12. Assist the housing authority in the administration of the project, including the selection and certification of eligibility of tenants; collection of rents; maintenance of books of account; preparation of financial statements; periodic reexamination of tenants' income; inspection of dwellings to assure proper housekeeping and maintenance; obtaining of required insurance coverage; provision of legal services when necessary; preparation of budgets; personal property procurement; investment of excess funds; and enforcement of all requirements of the agreement between the tenant and the housing authority.

13. Review and approve operating budgets and insurance policies for the project and transmit them to the PHA; conduct fiscal audits; management reviews, occupancy audits, and maintenance engineering surveys; and certify to the PHA that the low-rent character of the project is being maintained and that the other requirements of the housing authority's annual contributions contract are being met.

14. Identify any deficiencies that may exist in the operations of the housing authority and take any steps possible to obtain correction of such deficiencies, clearing such action in advance with the PHA in any particularly complex or aggravated situations.

15. Furnish an annual report of the program to the PHA covering the operations, in all phases, of PHA-assisted housing programs on Indian reservations; and assist the housing authority in the preparation of all other reports required by the PHA.

B. The responsibilities of the Public Housing Administration shall be as follows:

1. On request, assist the tribal government and the housing authority in the performance of the organizational steps to qualify for financial assistance from the PHA.

2. Approve the application for program reservation, prepare a preliminary loan contract, and advance funds in accordance therewith.

3. Prepare an annual contributions contract (providing, among other things, for loans and annual contributions fromjthe PHA), and provide loans and annual contributions in accordance therewith.

4. Furnish specimen forms of contract, resolutions, and the like, and other guidelines, for use by the housing authority.

5. Provide initial training in development and management procedures for personnel of the housing authority and the BIA who will be