HPMC-FHA 7580.2A

4.

contractural obligations to HUD by not proceeding diligently or on a timely basis with the development of the housing.

ANNUAL CONTRIBUTION CONTRACT WAIVERS. In line with the provisions of paragraph 3 of this Circular, HUD Area Directors may waive the following annual contributions contract provisions with respect to projects now or hereafter placed under such contracts:

a. The 90 percent limitation on loans contained in Section 7 of Part One of the Annual Contributions Contract for Mutual-Help Projects, Form HUD-53040.

b.

The 10 percent minimum required Mutual-Help Contribution provisions of Sections 203(C) and 406(D) of Part Two of the Annual Contributions Contract for Mutual-Help Projects, Form HUD-53041.

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HPMC-FHA 7581.1A

CIRCULAR

ATTEN: REGIONAL OFFICE: ARA for HPMC,

Low-Rent Housing Specialist;

AREA OFFICE: Director, Operations
Division, Program Managers, and
Multifamily Housing Representatives

October 29, 1971

SUBJECT: Development Cost for Housing Projects in Indian Areas

1.

PURPOSE. To state HUD policy and authorization for the inclusion in HUD-assisted development cost of certain necessary costs of water and sewerage facilities, streets, curbs, street lights and sidewalks for low-rent public housing projects located in Indian (including Alaskan Native) areas. This Circular cancels and supersedes RRA Circular 3-27-69, "Development Cost for Certain Indian Housing May Include Wells and Septic Tank Systems."

2. BACKGROUND.

8.

b.

The Indian Health Service (Department of Health, Education and Welfare) administers a program under which water and sewerage facilities are provided to Indian homes. The Bureau of Indian Affairs (Department of the Interior) administers a program under which roads are constructed in Indian areas. Under the U. S. Housing Act, the development cost of HUD-assisted low-rent public housing projects may include the costs of water and sanitation facilities, streets and sidewalks necessary for such housing.

The planning and development of housing in Indian areas must be coordinated with the above Indian Health Service (IHS) and Bureau of Indian Affairs (BIA) programs so that the facilities and roads to serve the housing are available when needed and so that the development of the housing may be taken into account in the plans of those agencies. Assistance available to Local Housing Authorities in Indian areas from the IHS and BIA should supplement that which is available from HUD in connection with the planning and development of low-rent public housing to expedite production and provide the maximum benefit from the combined Federal investment in connection with the development of the housing.

DISTRIBUTION: 0-3,W-3-1LHA's 138 Tabs. 6,7,9,045E-3,

HPMC-FHA 7581.1 A

3. REGIONAL AND AREA OFFICE ACTION.

8. The HUD-assisted development cost of low-rent public housing in Indian areas shall include the planning, construction, and inspection costs of providing within the housing project boundaries all needed (1) water and sewerage facilities (including distribution systems, wells, spetic tank systems, connections, etc.) and (2) all-weather streets, sidewalks, curbing and street lights. Connections to water distribution and sewerage collection systems are generally more desirable than the provision of on-site wells or septic tank facilities. Therefore, the development cost of a project should include connection fees (or other costs) necessary to cover the project's pro rata share (based on the total design mumber of homes served by the system) of the construction costs for water distribution and sewerage collection systems if the resulting total development cost of the project would not be greater than if on-site facilities were provided under the terms of this Circular. Inclusion of any of the foregoing costs is not required in those cases where the Area Director or Regional Administrator can determine that the facilities will be otherwise provided in a timely manner which will not inhibit or delay the development or occupancy of the housing.

C.

In implementing the above policy, Area Directors and Regional
Administrators should utilize the following formula or guide-
lines. The selection and planning of sites should be accom-
plished in a manner which will result in HUD-assisted develop-
ment costs for on-site utilities and streets which are
reasonable in comparison to similar types of projects generally
throughout the area or region involved. Where the Area Director
or Regional Administrator determines that such costs for a
project would not be reasonable because of the use of scattered
sites or the low density use of the site or sites, the HUD-
assisted development cost should be held to a reasonable level
by (1) changing sites or site density or (2) arranging for
part or all of the facilities involved or their cost to be pro-
vided by the IHS, BIA, tribal government, or other source.

To the maximum extent feasible, the technical assistance or advice of the appropriate IHS and BIA Area or Agency Offices should be utilized in connection with the provision of facilities under the authorization provided by this Circular.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

CIRCULAR

SUBJECT: Housing Assistance in Indian Areas

HPMC-FHA 7581.2

June 18, 1971

1.

PURPOSE. To provide a current statement on HUD authority and policy in connection with the provision of housing assistance in Indian areas under the low-rent public housing program and to supersede the RHA Circular of 3-27-69 "Housing Assistance for Indian Families in Rural Farm Areas."

2. HUD AUTHORITY AND RESPONSIBILITY. Section 206 of the Housing and
Urban Development Act of 1968 amended the Section 1 of the U. s.
Housing Act to emphasize HUD's authority and responsibility
for assisting in the provision of housing for all low-income fami-
lies in Indian areas, including those families engaged in farming
activities.

3. REMOTE AREAS HOUSING STANDARD. The provision of housing in remote
areas of Indian reservations requires special consideration with
respect to strict conformance to the requirements of Minimum
Property Standards for One and Two Living Units (FHA No. 300) and
for Multifamily Housing (FHA No. 2600). Indian Housing Authorities
should be encouraged to develop new design and program concepts so
as to overcome the factors that make it difficult to economically
provide such housing, and to obtain housing that might better
conform to local patterns of living. The mandatory provisions of
the Minimum P perty Standards shall be complied with. Otherwise,
field offices shall use their discretionary authority to accept
equivalent variations from the standards, taking full cognizance
of the definition of "low-rent housing," contained in Section 2 of
the U. S. Housing Act of 1937: "decent, safe, sanitary dwellings
within the financial reach of families of low income, and developed
and administered to promote serviceability, efficiency, economy,
and stability, and embraces all necessary appurtenances thereto."
Consideration shall be given to extra durability required for
economical maintenance of assisted housing as well as the provision
of amenities designed to guarantee safe and healthy family life and
neighborhood environment. Good design should be encouraged as an
essential component of such housing to reflect the architectural
and cultural standards of the community.

OPR.: FS: DISTRIBUTION:A-3,A-6, A-9,A-23,B-3,B-6,B-9,B-23,

HPMC-FHA 7581.2

4.

FEASIBILITY CONSIDERATIONS. Housing Authorities should be urged to recognize the need to ensure that housing to be located in remote areas will be operated during the duration of the Annual Contributions Contract on a financially and administratively feasible basis. Authorities should consult HUD Area or Regional Office staff as to whatever steps might be necessary at the earliest possible stage to minimize the risks involved.

45-306 O-75-23