U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

CIRCULAR

HPMC-FHA 7580.1

November 2, 1970

Cancellation
Date:

SUBJECT:

Indian Employment, Training, and Economic Benefits from
Public Housing Development

1. PURPOSE. This Circular sets forth the HUD policy, authorities and requirements relating to proposals by Indian tribes and their local housing authorities to make special provision for Indian employment, training, and economic benefits in connection with the development of HUD-assisted public housing. This Circular shall apply to proposals by Indian housing authorities involving the waiver or variation of annual contributions contract and other HUD requirements to achieve such ends.

2. BACKGROUND.

a.

Federal law.

Section 3 of the Housing and Urban Development Act

of 1968 provides:

"In the administration by the Secretary of HUD of programs
providing direct financial assistance in aid of housing * * *
the Secretary shall--

(1) require, in consultation with the Secretary of Labor, that to the greatest extent feasible opportunities for training and employment arising in connection with the planning and carrying out of any project assisted under any such program be given to low income persons residing in the area of such projects; and

(2) require, in consultation with the Administrator of the

Small Business Administration, that to the greatest extent feasible contracts for work to be performed in connection with any such project be awarded to business concerns, including but not limited to individuals or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance, or repair, which are located in or owned in substantial part by persons residing in the area of such project." (underscoring supplied)

Distribution: 0-1, F-2, R-1,

HPMC-FHA 7580.1

In addition, the special treatment accorded Indians living on
or near reservations because of the special Federal interest
and responsibility in the promotion of employment opportunities
for them is reflected in Title VII (Equal Employment Opportu-
nity) of the Civil Rights Act of 1964. Section 701(b) of that
Act excludes Indian tribes (as well as Federal, State, and
local governments) from the nondiscrimination requirements of
Title VII. In addition, Section 703 (1) of that Act provides:
"Nothing contained in this title shall apply to any business
or enterprise on or near an Indian reservation with respect to
any publicly announced employment practice of such business or
enterprise under which a preferential treatment is given to any
individual because he is an Indian living on or near a reserva-
tion." (underscoring supplied)

b. President's Indian Policy. The President's July 8, 1970,
Message to the Congress set forth the Administration's policies
and legislative proposals in the field of Indian Affairs. In
addition to increasing economic and social development program
accomplishments, the President proposed that Indian tribes be
given the right by statute to take over and operate (without
the necessity of approval by any Federal official) any of the
programs (including the related Federal funds which would
continue to be appropriated without penalty because of such
takeover) operated on their reservation by the Bureau of Indian
Affairs and the Indian Health Service. In general, the Message
indicated a clear Federal policy of maximum cooperation with
and reliance on Indian tribes in the application of Federal
assistance programs to their needs.

State law. With the current exception of those in the states of Oklahoma, Maine, and Texas, Indian housing authorities are authorized and created by tribal ordinance independent of state law. If an Indian housing authority was authorized and established under state law, any pertinent requirements of that state's laws must be considered and complied with in connection with any proposal described in paragraph 1 above from such housing authority.

3. HUD RESPONSE TO INDIAN HOUSING AUTHORITY PROPOSALS.

a. Adequacy of regular requirements and procedures. In some
cases, the employment, training, and economic benefit objectives
of an Indian housing authority's proposal may be satisfied by
proper application of the provisions of paragraphs 3(c)(2)(e)
and 4 of the Low-Rent Housing Turnkey Handbook, RHA 7420.1.
Where Area Directors or Regional Administrators (or their

HPMC-FHA 7580.1

Deputies) determine such is the case, no special provision need be made under the terms of this Circular.

b. Inclusion of special requirements in Invitations for Bids, Construction Contracts, Invitations for Turnkey Proposals, and Contracts of Sale. In some cases, the Area Director or Regional Administrator (or their Deputies) may determine the need for and approve such modification of normal procedures and requirements as is necessary to achieve the employment, training, and economic benefit objectives of an Indian housing authority's proposal. However, any such modifications must be in accord with the requirements of subparagraph (d) below. Such modifications may include the addition of specific language to the Invitation for Bids, Construction Contract, Invitation for Turnkey Proposals, and Contract of Sale requiring the provision of preferential employment, training, and economic benefits for local Indian residents. An example of one type employment preference provision is attached to this Circular.

C.

d.

Waiver of Competitive Bidding and Advertising Requirements. Area Directors and Regional Administrators (and their Deputies) are authorized to waive the provision of Section 109(B) of Part Two of the Annual Contributions Contract to permit the negotiation of a Construction Contract or Contract of Sale in exceptional cases where he determines that such action is the only way of achieving the employment, training, and economic benefit objectives of the Indian housing authority and such action will be consistent with the requirements of subparagraph (d) below.

Additional requirements upon which approvals must be based. Approval by the Area Director or Regional Administrator (or their Deputies) of any waivers or modifications under subparagraphs (b) and (c) above shall be made only where he has determined that:

(1) There is no reason to expect that such approval will re-
sult in a higher HUD-assisted development cost than if
the regular requirements or procedures were followed.

(2) All developers and contractors located on or owned in sub-
stantial part by residents of the Indian reservation or
the housing authority's area of operation are given an
equal opportunity to meet any special employment, training,
and economic benefit requirements to be approved.

(3) All potential Indian employees and trainees living on or
near the reservation shall be provided equal opportunity

HPMC-FHA 7580.1

(4) The project site is on an Indian reservation or on land owned in trust by the United States for the tribe or individual Indians.

(5) If an Indian or tribal developer or contractor is to be
selected on a preferential basis, any subcontracting to
non-Indian contractors will be accomplished in such a
manner as to assure that the arrangement is not in fact
or appearance one in which the Indian or tribal organ-
ization is a front for the purpose of obtaining a contract
for the non-Indian developer or contractor.

(6) The Indian housing authority's proposal and the final
arrangement to be approved by HUD shall have the con-
currence of the tribal council or other executive
committee or official authorized to provide such con-
currence.

4. The provisions of this Circular should be brought to the attention of each Indian housing authority by the appropriate Area Director or Regional Administrator.