As used in this part 256:

Area Director means the Officer in charge of one of the Bureau of Indian Affairs Area Offices, or his/her authorized delegate.

Assistant Secretary means the Assistant Secretary-Indian Affairs, or his/ her authorized representative.

Dilapidated means a state of disrepair.

Family means one or more persons maintaining a household.

Handicapped means legally blind; legally deaf; lack of or inability to use one or more limbs; chair or bed bedbound; inability to walk without crutches or walker; mental disability in an adult of a severity that requires a companion to aid in basic needs, such as dressing, preparing food, etc., or severe heart and/or respiratory problems preventing even minor exertion.

Indian means any person who is a member of any of those tribes listed in

the FEDERAL REGISTER pursuant to 25 CFR part 83 as recognized by and receiving services from the Bureau of Indian Affairs.

Nonmember Indian means any person who is a member of a Federally recognized tribe living in another tribe's approved service area.

Ownership means having fee title, trust title, leasehold interest, use permit, indefinite assignment or other exclusive possessory interest. In the case of Alaska, the term also includes one who the Superintendent determines has a reasonable prospect of becoming an owner, in accordance with the provisions of the Alaska Native Claims Settlement Act (85 Stat. 688).

Secretary means the Secretary of the Interior.

Service area means reservations (former reservations in Oklahoma), and allotments, restricted lands, Indianowned fee lands (including lands owned by Corporations established pursuant to the Alaska Native Claims Settlement Act) within a geographical area designated by the tribe, and approved by the Area Director to which equitable services can be delivered.

Standard Housing means a dwelling in a condition which is decent, safe, and sanitary so that it meets the following minimum standards;

(a) General construction conforms to applicable tribal, county, state or national codes and to appropriate building standards for the region.

(b) The heating system has the capacity to maintain a minimum temperature of 70 degrees in the dwelling during the coldest weather in the area. It must be safe to operate and maintain and deliver a uniform distribution of heat.

(c) The plumbing system includes a properly installed system of piping and fixtures.

(d) The electrical system includes wiring and equipment properly installed to safely supply electrical energy for lighting and for the operation of appliances.

(e) Occupants per dwelling do not exceed these limits:

(1) Two-bedroom dwelling: Up to four persons;

(2) Three-bedroom dwelling: Up to seven persons;

(3) Four-bedroom dwelling: Adequate for all but the very largest families;

(f) Bedroom size: The first bedroom must have at least 120 sq. ft. of floor space, additional bedrooms must have a minimum of 100 sq. ft. of floor space each.

(g) Two exceptions to standard housing will be permitted:

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

(2) In areas of severe climate, house size may be reduced to meet applicable building standards of the region.

(g) The house site must be chosen so that access to utilities is most economical, the ingress and egress are adequate and aesthetics and proximity to school bus routes are considered.

Superintendent means the Officer in charge of the Agency or other local office of the Bureau of Indian Affairs.

Tribe means any Indian Tribe, Band, Nation, Rancheria, Pueblo, Colony, or Community, including any Alaska Native Village which is federally recognized as eligible by the United States Government for the special programs and services provided by the Secretary to Indian tribes because of their status as Indians.

§256.3 Policy.

(a) The Bureau of Indian Affairs' housing policy is consistent with the specific objectives of the national housing policy which declares that every American family should have the opportunity for a decent home and suitable living environment. To the maximum extent possible, tribes will be involved in the administration of the program.

(b) Every Indian, as defined in § 256.2 and eligible pursuant to § 256.6, is entitled to participate in this program irrespective of tribal affiliation, provided equitable services can be delivered to the geographic area within which they reside.

(c) The general distribution of HIP funds among tribes is based on a consistent, valid, and certified inventory

of tribal housing needs, a viable work plan, and the tribe being in compliance with the intent of the program. Every effort will be made to use HIP funds in conjunction with other programs so that the result will be a greater amount of housing improvements than would otherwise be possible with the HIP funds alone. An example of this is the agreement with the Indian Health Services to provide water and sanitation facilities for HIP houses. In cases where training programs are used in conjunction with the HIP, funds are to be limited to the purchase of materials, and to the provision of inspection and skilled labor which are otherwise not available.

(d) Tribal allocation levels are determined on the basis of the HIP's responsibility of the total housing needs derived from the tribal inventories of need. The emphasis of the HIP will be on repair and renovation of existing housing while other federally-assisted programs are responsible for the bulk of the new house building effort. As such, the BIA's funding calculations are based on 90% of the repair need and up to 10% of the new construction need indicated by tribal housing inventories. (The exception is Alaska, where the percentage is 95% of repairs and 35% of new construction). The HIP may provide a grant for the financing of the construction of a limited amount of new standard housing when it is established that the applicant has been denied housing assistance from sources other than the HIP. Thus, each fiscal year, the BIA will allocate funds appropriated for HIP in proportion to the identified housing needs.

§ 256.4 Program categories.

The HIP will provide assistance in the following categories:

(a) Repairs that will remain nonstandard. Under this category:

(1) Financial assistance will be granted to finance repairs and additions to existing substandard housing needing replacement so that it is safe, more sanitary, and livable until such time as standard housing is available.

(2) The standard to be applied in deciding whether to provide assistance is improvement in the condition of the house, i.e., improved livability or re

duced health and safety hazards, even though it may be obvious that such an undertaking will not improve the house to the extent that it will meet the standard of decent, safe, and sanitary. Examples of the improvement that may be undertaken are: Weather tightening and the repair of doors, windows, roof, electrical wiring, plumbing, and chimney.

(3) The cumulative total expenditure of the HIP funds shall not exceed $2,50C for any one dwelling.

(4) The funds shall be granted and no restrictions on the use of the home may be imposed.

(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 shall fit the definition of standard housing as defined in § 256.2.

(3) The total expenditure of the HIP Program Funds shall not exceed $20,000 for any one dwelling. (In the case of Alaska, reasonable, substantiated freight costs in accordance with Federal Property Management Regulation (FPMR) 101-40, not to exceed 100% of the material cost, may be added).

(4) Undertakings under this category are for applicants who are living in their own homes.

(5) The applicant must sign a written agreement that if he/she sells the house within five years following the date of completion of the repairs, the grant will be voided and the grantee will repay the full amount of the grant at the time of settlement to the Bureau of Indian Affairs.

(c) Down Payments. Under this category:

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

(2) The grant shall not exceed the amount necessary to secure the loan

plus the closing costs or ten percent (10%) of the purchase price of the house plus the closing costs or $5,000, whichever is less. (In the case of Alaska, the grant amount shall not exceed $6,000).

(3) The method of advancing the grant must ensure that the funds are used for the purpose intended. The applicant must sign a written agreement that if he/she sells the house within five years following the date of purchase, the grant is voided and the amount of the grant will be fully repaid by the grantee to the Bureau of Indian Affairs at time of settlement.

(d) New housing. Under this category: (1) The HIP may provide a grant for the financing of the construction of a limited amount of new standard housing, either site-built or factory-built, when it is established that the applicant has been denied housing assistance from sources other than the HIP.

(2) The housing provided under this category must meet the housing standards of this Part. Mobile units with an integral frame are specifically excluded.

(3) The total expenditure of HIP funds shall not exceed $45,000 for a dwelling and equipment. (In the case of Alaska, the total expenditure of funds shall not exceed $55,000, plus reasonable, substantiated freight costs in accordance with FPMR 101-40, not to exceed 100% of the materials cost). The occupant will be responsible for all maintenance of the completed dwelling and all utility fees, deposits or costs required for service.

(4) The applicant must have ownership of the land on which the house is located. In the case of a leasehold interest, it must be for not less than 25 years. The applicant must sign a written agreement that if he/she sells the house within the first ten years from the date of ownership, the grant is voided and the full amount of the HIP grant will be repaid by the grantee to the Bureau of Indian Affairs at time of settlement. Subsequent to the first ten years, if the grantee sells the house, he/ she may retain 10% of the original grant amount per year beginning in the eleventh year, with the remaining amount to be repaid to the Bureau of Indian Affairs. If the sale occurs twenty years or more after the date of own

ership, no repayment of any part of the grant will be due the Bureau of Indian Affairs.

(5) Adequate fire insurance, where determined feasible, must be carried.

$256.5 HIP application.

Individuals wishing to participate in the Housing Improvement Program must fill out BIA Form 6407. Application forms may be obtained from tribes or the nearest Bureau of Indian Affairs Office. Completed applications should be submitted to tribes or the nearest BIA office, where applicable. Each application for assistance should be approved by the tribe. Nonmember Indians apply for assistance through the tribe in whose jurisdiction they reside.

$256.6 Eligibility.

(a) To establish eligibility for selection to receive a grant under §256.7, an applicant must show 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 applicant has been denied, or is ineligible for, housing assistance from sources other than the HIP.

(4) The economic resources of the applicant are inadequate or factors exist which make the applicant unable to obtain housing from other local, state or Federal sources. Applicants whose annual income exceeds the Department of Health and Human Services Poverty Income Guidelines by 225% or more shall be ineligible for HIP assistance on the basis of need. Determination of eligibility will be made on a case-by-case basis.

(5) The applicant for assistance under one of the categories in §256.4 meets the ownership requirements given under that category.

(b) After October 1, 1986, an applicant may only receive assistance once under categories given in paragraphs (b), (c), or (d) of § 256.4.

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

$256.7 HIP selection criteria.

Once the eligibility requirements of § 256.6 are satisfied, development of priority lists of eligible applicants shall be accomplished by a ranking system based on six basic factors of need: Annual income, family size, overcrowded living conditions, age, handicap or disability, and HUD-IHA financed housing. Eligible applicants may receive points for any or all of these six factors. Priority will be given relative to the number of points received. Appendix A to this provides a summary of selection criteria.

(a) Factor No. 1—Annual Household Income (Up to 40 points available).

(1) The eligible applicant's total annual household income and other resources, if any, must be evaluated in order to determine priority in terms of degree of poverty. If an individual is counted as a family member for the purpose of determining Family Size (Factor No. 2), the annual income of that person must be included in the total annual household income on the HIP application. Examples of income which must be included are royalties and onetime income. A specific definition of the type of resources which must be included is set forth in 25 CFR part 20.

(2) In order to determine whether or not the applicant is entitled to points under Factor No. 1, it is necessary to compare the total combined annual household income against the Federal Poverty Income Guidelines which are published annually by the Department of Health and Human Services. The most current issue of the Guidelines published in the FEDERAL REGISTER by Health and Human Services (HHS) will be used during the selection process. A yardstick for determining applicant income priority is provided based upon 125% of the Poverty Income Guidelines. In addition, even greater point values are available for applicants whose annual income falls substantially (25% or more) below the poverty level. In order to facilitate calculations, a chart of the various income levels is provided to each tribe annually upon publication of new revised Poverty Guidelines by HHS each year.

(b) Factor No. 2—Family Size (5 points per dependent child). A dependent child

for purposes of this subsection is a person meeting the definition of "child" in 25 CFR part 20.

(c) Factor No. 3-Overcrowded Living Conditions (Up to 10 points possible).

(1) The definition of "standard housing" identifies the acceptable limits for family size per dwelling (see §256.2). In order to earn points under Factor No. 3, the applicant family must exceed the limits for its dwelling established in §256.2. A family is overcrowded if:

(i) Three or more persons occupy a one-bedroom dwelling.

(ii) Five or more persons occupy a two-bedroom dwelling.

(iii) Eight or more persons occupy a three-bedroom dwelling.

(2) Depending upon the circumstances and the degree of overcrowding, as well as the family structure, the committee reviewing HIP applications can award as little as 1 point, or as many as 10 points, for the overcrowding factor.

(3) The preceding overcrowded living description is not feasible in Alaska where, because of the unique climatic conditions, a dwelling is frequently not divided into the conventional room arrangement customary in the contiguous 48 states. Recommended guidelines for Alaska only are therefore based upon gross square feet per occupant, ranging from 2 to 10 points for Factor No. 3. (See appendix A to this part.)

(d) Factor No. 4-Age-(1) Elderly couple. (Up to 21 points per individual available.) Points are awarded based upon age, beginning at age 55, with a maximum of 21 points per elderly person available. Appendix B to this part is a schedule, by age, of the number of points to be awarded in this category. If an applicant family has an elderly relative who is a permanent household member, points are added to the application for this person.

(2) Single, Elderly, Living Alone (Up to 32 points). Special priority amounting to 150% of the Factor No. 4 standard schedule, as identified in paragraph (d)(1) of this section, is provided only for an elderly individual living alone and applying for a grant from HIP. An elderly widower/widow, age 70, living by him/herself plus 50% (8 points) adds up to a total of 24 points. In calculat

ing allowable points using the schedule shown in appendix B, decimals should be eliminated by rounding to the next higher whole number.

(e) Factor No. 5-Handicap or Disability (Up to 20 points available per application).

(1) The many and varied degrees and types of disability present a complex ranking situation. A general definition of handicapped is provided as a guide. The selection committee evaluating HIP applications shall determine the number of points, up to the maximum of 20, merited by the applicant (or family member) based upon the degree of disability.

(2) Applicants should provide as much documentation as possible concerning the disabled person's condition. This could include a doctor's certification, Veteran's Administration determination, Social Security determination of degree of disability, or similar information which would assist the HIP committee in its point calculation.

(f) Factor No. 6-HUD/IHA Financed Houses (Deduct 30 points). A deduction of 30 points shall be applied to applicants who own HUD-IHA houses after the project indebtedness ends, as described in §256.6(c). These houses represent new standard housing obtained with Federal housing assistance.

(g) Tie Breaker. If two applications are assigned the same number of points, two considerations will determine which application has priority.

(1) Tie Breaker No. 1-The applicant living in the most dilapidated conditions will receive priority.

(2) Tie Breaker No. 2-The family with the lower income will be served first.

§ 256.8 Program Implementation.

The HIP will be implemented either by means of Pub. L. 93-638 contracts with the tribes, or administered directly by BIA, according to the HIP plans and priority of the tribe served. The HIP consists of two parts: Receipt, review, and screening of applications submitted by Indians for housing assistance, determination of eligibility, and development of applicant priority lists; and design, construction, and repair/renovation of dwelling units. The