[Federal Register Volume 63, Number 40 (Monday, March 2, 1998)]
[Rules and Regulations]
[Pages 10124-10139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5300]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 256

RIN 1076-AD52


Housing Improvement Program

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule revises the procedures governing the Housing 
Improvement Program (HIP). The Bureau of Indian Affairs has revised the 
procedures to clarify and simplify the conditions and terms for 
providing housing assistance and to allow additional flexibility in 
administering the program. The new procedures will encourage innovation 
in providing housing assistance to eligible individuals.

EFFECTIVE DATE: April 1, 1998.

FOR FURTHER INFORMATION CONTACT: June Henkel, Division of Housing 
Assistance, Bureau of Indian Affairs, Department of the Interior, 
telephone (202) 208-2721.

SUPPLEMENTARY INFORMATION: This final rule is published under authority 
delegated the Secretary of the Interior to the Assistant Secretary-
Indian Affairs in the Departmental Manual at 209 DM 8. This final rule, 
revising regulations which govern the HIP grant process as codified at 
25 CFR part 256, was preceded by the publication of the NPRM in the 
Federal Register on July 15, 1996 (Vol. 61, No. 136, page 36829), with 
a 60-day comment period, and the Notice of Proposed Transfer of Funds 
to Tribal Priority Allocations in the Federal Register on September 4, 
1996 (Vol. 61, No. 172, page 46660), with a 45-day public comment 
period.

I. Background

    Current regulations provide for an emphasis on the repair and 
renovation of existing housing and for the award of Housing Improvement 
Program appropriations to Indian tribes based on a distribution formula 
which uses the current tribal housing inventory of need as its basis. 
These regulations seek to clarify and simplify the terms and conditions 
under which the program is operated. A funding distribution methodology 
was omitted from the proposed regulations based on the intention of 
identifying a Housing Improvement Program appropriations distribution 
formula for use in the Tribal Priority Allocation system. Comments 
received from tribes in that consultation process did not support 
either of the proposed alternatives.

[[Page 10125]]

Limited available appropriations for the program require the continued 
use of a needs based distribution methodology, viable annual work plans 
and compliance with the intent of the program. A total of 37 written 
comments were received from tribes, tribal entities, individuals and 
Federal agencies. The comments were consolidated and the Department's 
responses are summarized below. Public comments and subsequent 
responses are arranged by section of the proposed rule as printed in 
the Federal Register on July 15, 1996.

II. Review of Public Comments

    1. General comment: The proposed regulations appear to be unduly 
rigid.
    Response: The BIA agrees that the regulations as proposed do not 
provide a flexible framework for operation of the HIP and that there is 
too much emphasis on procedures and process-oriented tasks, at the 
expense of program performance and achievement of program goals. The 
final regulations are restated in a manner to provide program 
operational flexibility within defined parameters and to encourage 
innovative program implementation and methodologies while meeting the 
policies, objectives and goals of the program.

Section 256.2  Definitions

    2. Comment: The definition of ``cost effective'' should be included 
in Sec. 256.2.
    Response: The rule has been revised to include the definition of 
Cost effective means the cost of the project is within the cost limits 
for the category of assistance and adds sufficient years of service to 
the dwelling to satisfy the recipient's housing needs well into the 
future.
    3. Comment: The definition of ``decent home and suitable living 
environment'' should be included in Sec. 256.2.
    Response: Section 256.2 has not been revised because each servicing 
housing office will interpret the definition of decent home and 
suitable living environment on a case by case basis depending on the 
needs of a specific family.
    4. Comment: The definition of ``independent trades person'' should 
be included in Sec. 256.2.
    Response: The rule has been revised to include the definition of 
Independent trades person means any person possessing the ability to 
perform work in a particular vocation.
    5. Comment: The definition of ``Indian'' should be included in 
Sec. 256.2.
    Response: The definition of Indian was unintentionally omitted from 
the definition section of the proposed rule. The rule has been revised 
to include the definition of 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.
    6. Comment: In Sec. 256.2, add definition for manufactured housing, 
using the existing definition and descriptions using Housing and Urban 
Development manuals and regulations to add a clear and approved 
definition and to aide in defining what is allowable for expenditures 
for manufactured housing. A related comment suggested the addition of 
definitions for mobile, manufactured and modular housing.
    Response: The rule has not been revised to include the requested 
definitions for mobile, manufactured and modular housing because 
housing units under the rule must meet or exceed the definition for 
``standard housing'' provided in Sec. 256.2. That definition provides 
for the general construction of a housing unit, whether manufactured, 
modular or stick-built, to conform to applicable tribal, county, state 
or national codes. In the case of manufactured housing, the Housing and 
Urban Development, regulations, 24 CFR part 3280 applies.
    7. Comment: In Sec. 256.2, add the definition for ``ownership'' as 
provided in the current rule, which would also clarify Sec. 256.9 of 
the rule.
    Response: Sec. 256.2 of the rule has not been revised to include a 
definition for ``ownership'' because the revision clarifying Sec. 256.9 
is considered adequate for the rule.
    8. Comment: In Sec. 256.2, add the definition for ``permanent 
members of household'' means adults living in the household that intend 
to live there continuously from now on and any children defined as a 
child in this part.
    Response: The rule has been revised to include the definition as 
requested.
    9. Comment: The definition of ``standard housing'' should be 
included in Sec. 256.2.
    Response: The rule has been revised to include the definition of 
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 68 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 three persons;
    (2) Three-bedroom dwelling: Up to six persons;
    (3) Four-bedroom dwelling: Adequate for all but the very largest 
families;
    (f) Bedroom size: The first bedroom must have at least 120 square 
feet of floor space, additional bedrooms must have a minimum of 100 
square feet 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 that region.
    (vii) 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.
    10. Comment: In Sec. 256.2, add the definition for ``substandard 
housing means condition(s) exist that threaten the health and/or safety 
of the occupants.''
    Response: Sec. 256.2 of the rule has been revised to include: 
``Substandard housing means condition(s) exist that do not meet the 
definition of standard housing in this part of the rule.
    11. Comment: The definition of ``applicant'' in Sec. 256.2 should 
include minor children living with a non-Indian parent. Indian children 
are being punished by not being allowed to receive Housing Improvement 
Program assistance.
    Response: The definition of applicant has not been revised because 
once program services are provided under the rule, the recipient is not 
eligible to receive such services a second time, precluding receipt of 
housing assistance upon reaching the age of majority. The definition is 
adequate to identify applicants for the purposes of this rule.
    12. Comment: The definition of handicapped in Sec. 256.2 should be 
revised to reflect the definition of ``disabled''.
    Response: The definition of handicapped has been revised as 
requested.

[[Page 10126]]

    13. Comment: The definition of ``household'' in Sec. 256.2 should 
include the word ``all'' between means and persons, to identify ``all'' 
persons living with the head of the household and who function as 
members of a family.
    Response: The definition of household has not been revised because 
the definition is adequate to identify the household members for 
purposes of this rule.
    14. Comment: The definition of ``service area'' in Sec. 256.2 
should be revised to reflect that the service area is determined by the 
tribe through tribal resolution and not by the Area Director.
    Response: The definition of service area has not been revised 
because the definition is adequate to identify that ``service area'' is 
determined by the tribe.

Section 256.3  Policy

    15. Comment: We believe the national housing policy has been 
changed to delete the referenced objective. If so, we recommend 
revising Sec. 256.3(a) of the rule to read: ``The Bureau of Indian 
Affairs housing policy is that every American family should have the 
opportunity for a decent home and suitable living environment. To the 
extent possible, the program will serve the neediest of the needy 
Indian families.''
    Response: Section 256.3(a) of the rule has been revised to delete 
the referenced objective.
    16. Comment: Section 256.3(a) of the rule should be revised to 
replace the words ``neediest of the needy'' with ``eligible HIP 
applicants'' or ``The program will serve the neediest of the needy 
Indian families having no other resources for standard housing.''
    Response: Section 256.3(a) of the rule has been revised to read: 
The program will serve the neediest of the needy Indian families who 
have no other resource for standard housing.
    17. Comment: Section 256.3(a) of the rule states that to the extent 
possible, the program will serve the neediest of the needy, however the 
rule excludes the neediest of the needy who live in substandard mobile 
homes and/or who do not own their own land. There should be some way to 
service these people.
    Response: Section 256.23 of the rule, as rewritten, clarifies that 
families living in mobile homes are not excluded from the program. 
Section 256.23 of the rule, as written, provides for needy families who 
do not own their own land, but who can obtain a leasehold of the land 
to participate in the program.
    18. Comment: Section 256.3(a), (c) and (d) of the rule should be 
revised to accommodate Pub. L. 93-638 changes. In (d), the formula 
language should be removed. This could be handled administratively 
through policy or possibly through statute.
    Response: Section 256.3(a) and (c) of the rule have not been 
revised because Pub. L. 93-683, which provides for tribal operation of 
the Housing Improvement Program, is codified in section 900 of the 
rule. Section 256.3(d) of the rule has not been revised because the 
formula language is removed from the rule.
    19. Comment: Section 256.3(b) of the rule should be revised to omit 
the vague and confusing phrase ``provided services can be delivered to 
the geographic area within which the participant resides.''
    Response: Section 256.3(b) of the rule has been revised as 
requested.
    20. Comment: Section 256.3(b) of the rule should be revised to note 
that participation is dependent on need and eligibility regardless of 
tribal membership.
    Response: Section 256.3(b) of the rule has not been revised as 
requested because the rule establishes that participation in the 
program is dependent on membership in a Federally recognized Indian 
tribe and meeting basic program eligibility criteria. Receipt of 
services under the program is based on priority of need, regardless of 
tribal affiliation and the rule has been revised to reflect this.
    21. Comment: Section 256.3(b) of the rule stipulates that every 
Indian, regardless of tribal affiliation, living on the Pueblo of 
Laguna Reservation is eligible for Housing Improvement Program 
services. Section 256.7(b)(1) and (c)(1) and (2) impose the requirement 
that a participant must own or have leasehold of the home and/or land 
on which a home is to be constructed. This is in direct conflict with 
the Pueblo of Laguna Constitution, Article IX, Section 7, Prohibitions 
on Assignments, which states that ``no assignment shall ever be granted 
to any person not a member of the Pueblo of Laguna.''
    Response: Section 256.3(b) of the rule has not been revised because 
the intent of the rule is to ensure that all otherwise eligible home/
land owners/leaseholders living within the same service area have the 
same opportunity for participation in and receipt of program services.

Section 256.4  Information Collection

    22. Comment: The public reporting burden estimate of thirty minutes 
is too low.
    Response: The public reporting burden estimate of thirty minutes 
has not been revised because the estimate, used for the last six years, 
received no comments in response to the request for comments concerning 
the Housing Improvement Program Information Collection, published in 
the Federal Register on February 6, 1997 and is adequate for the 
reporting requirement.

Section 256.5  What Is the Housing Improvement Program?

    23. Comment: The phase ``basic building standards'' in Sec. 256.5 
of the rule should be replaced with ``standard housing.''
    Response: For purposes of consistency with the added definitions of 
``standard housing'' and ``substandard housing'' in Sec. 256.2, the 
rule has been revised to read: ``The Housing Improvement Program 
provides a grant to fund services to repair, renovate, replace or 
provide housing for the neediest of the needy Indian families having 
substandard housing or who are without housing and have no other 
recourse for assistance.''
    24. Comment: The answer to What is the Housing Improvement Program 
in Sec. 256.5 of the rule might be better answered by explaining that 
it is a construction program, under authority of the Snyder Act and 
defined by these regulations for the purpose of providing housing 
assistance to the most needy of the eligible American Indians and 
Alaska Native People.
    Response: Section 256.5 of the rule has not been revised because 
the program is not a construction program and is considered adequate 
for the rule.

Section 256.6  Am I Eligible for the Housing Improvement Program?

    25. Comment: Section 256.6 should include all criteria that would 
make an applicant ineligible for the program. These include the factors 
of home ownership and land assignments; the present housing is 
substandard and was not subsidized with government funds; there is no 
other resource for housing assistance; and, non-receipt of program 
assistance including down payment assistance and excluding category A, 
since October 1, 1986.
    Response: Section 256.6 of the rule has been revised to include 
these paragraphs in Sec. 256.6:
    (d) Your present housing is substandard as defined in Sec. 256.2;
    (e) You meet the ownership requirements for the assistance needed, 
as defined in Sec. 256.7;
    (f) You have no other resource for housing assistance;
    (g) You have not received assistance after October 1, 1986, for 
repairs and renovation, replacement or housing, or

[[Page 10127]]

down payment assistance available before the effective date of this 
rule; and
    (h) You did not acquire your present housing through participation 
in a Federal government sponsored housing program that includes 
provision for such assistance.
    26. Comment: Section 256.6(c) should be modified to provide for the 
use of tribal, county or state income guidelines.
    Response: Section 256.6(c) of the rule has not been revised because 
the intent of the rule is to establish uniform operating procedures for 
the national program. Provision for various income guidelines would 
result in disparate treatment. The use of the Health and Human Services 
poverty income guidelines is adequate for the purposes of the rule.
    27. Comment: Several commentators recommend that the annual income 
level of 125 percent of the Health and Human Services Poverty Income 
Guidelines specified in Sec. 256.6(c) should be increased to reflect a 
higher annual income level, making it comparable to the Indian 
Community Development Block Grant (ICDBG) guidelines.
    Response: Sec. 256.6(c) of the rule has not been revised because 
the intent of the rule is to identify the neediest of the needy and 
focus the delivery of program services to applicants who cannot qualify 
for other housing resources.

Section 256.7  What Are the Housing Improvement Program Categories for 
Which I Am Eligible?

    28. Comment: Several comments were received concerning the deletion 
of the down payment assistance category in Sec. 256.7 of the rule, such 
as the following: Due to the fact that our Tribe does not have a 
residential reservation, tribal members have no alternative but to 
purchase fee land in order to provide a home for their families. In the 
past, the down payment assistance category provided tribal members an 
opportunity to purchase a safe and sanitary home for their families, 
whom otherwise would not have had the necessary down payment requested 
by most mortgage lenders. A number of Tribes have begun to look for 
down payment assistance in order to make home ownership affordable for 
low-income tribal members.
    Response: We have not restored the down payment assistance category 
to Sec. 256.7 because its deletion refocuses the intent of the rule, 
which is to assist homeowners and those without homes, who do not have 
the resources nor the potential to obtain the resources, to have a 
standard home. Families who have sufficient financial resources and are 
able to make mortgage payments fall outside the parameters of the 
intended program recipients.
    29. Comment: Although the increase of moneys allowed to be spent on 
each home allows for more work it will decrease the number of homes we 
will be able to service. As the funding dollars get smaller and our 
portion of the pie is smaller, we will be limited to a realistic figure 
of helping 2 or 3 families per year.
    Response: Section 256.7 of the rule provides for needed flexibility 
within the program to provide for the variation in regional costs and 
for reaction to increased costs for construction materials and labor 
and has not been revised. While it is true that the number of families 
assisted by the program is dependent on the amount of funding 
available, the cost of the services provided under the program is 
dependent on the cost of construction materials and labor to provide a 
standard dwelling. In the past, project cost estimates exceeding 
program cost limits required that Tribes seek waiver of the program 
rule in order to provide the required services. Although it is 
important to provide program services to as many eligible families as 
possible, it is equally important to ensure that the limited number of 
families receiving one-time services under the program are provided 
thorough and quality services, regardless of cost, resulting in long-
term benefit to the family. Elimination of the cost limit does not mean 
that more moneys can be spent on a category C project for the purpose 
of providing the recipient family with a dwelling which exceeds one for 
which they qualify or which exceeds the definition of a modest, 
standard dwelling. The amount of funding appropriated by Congress for 
the program can increase or decrease in the future depending on 
tribally-defined priorities.
    30. Comment: Section 256.7 of the rule poses a misleading question 
for the offered response and should be restated to reflect what housing 
services are available under the Housing Improvement Program.
    Response: Section 256.7 of the rule has been revised to read: What 
housing services are available under the Housing Improvement Program? 
We have revised Sec. 256.7 to make it an overview of the assistance 
categories. Details of how to qualify for each category of assistance 
are now contained in Secs. 256.8 through 256.11. This arrangement 
allows for a clearer explanation of the qualification criteria.
    31. Comment: The cost limitations in Sec. 256.7 of the rule need to 
be increased. Over the past few years, building materials have been hit 
by inflation harder than any other category. This is especially true 
for lumber. Combined with the fact that most reservations are located 
in rural areas, it is obvious that cost limitations must be watched 
closely.
    Response: Section 256.8 (formerly Sec. 256.7) has not been revised 
because the rule as written accommodates increased costs for materials 
and labor for two of the three project categories and is considered 
adequate for the rule. The BIA agrees that such costs must be watched 
closely and revisions made, as necessary.
    32. Comment: The word ``are'' in Sec. 256.7(a) of the rule should 
be revised to ``may'' resulting in eliminating the assumption of 
eligibility for this assistance.
    Response: Section 256.8 (formerly Sec. 256.7(a)) has been revised 
to clarify the rule and further explain the circumstances for receipt 
of this assistance.
    33. Comment: Section 256.7(a) of the rule should be changed to 
better define the circumstances when the category of assistance should 
be used. Specifically, the commentator suggests that the rule be 
changed to include the conditions: That it is not cost effective to 
renovate the dwelling; that there is another resource which would meet 
the housing need but it is not immediately available; or, there are no 
other available resources other than the Housing Improvement Program, 
but there are no available funds to replace your house.
    Response: Section 256.8 (formerly Sec. 256.7(a)) of the rule has 
been revised to provide clarification and more explicit guidance for 
the purpose and use of this category of assistance.
    34. Comment: Several commentators recommend that the funding limit 
of $2,500 in Sec. 256.7(a) of the rule be increased to $5,000 to allow 
for meeting current cost increases and geographic location should not 
be cause to disqualify a person from having a decent home.
    Response: Section 256.8 (formerly Sec. 256.7(a)) retains the $2,500 
limit because it is the intent of the rule to provide short-term relief 
from conditions that are a hazard to the safety and health of the 
recipient, who anticipates obtaining standard housing in the near 
future. In cases requiring repairs that exceed the $2,500 limit, 
obtaining other resources or requesting a waiver of this rule may 
remedy the situation.
    35. Comment: Several commentators recommend the cost limit of 
$35,000 for housing repairs and improvements in

[[Page 10128]]

Sec. 256.7(b) of the rule should be increased to $45,000.
    Response: We have retained the $35,000 limit because it provides an 
increase of $15,000, or 75 percent of the former category cost 
limitation, and is considered adequate for the rule. The BIA will 
monitor category b project costs to ensure the cost limitation remains 
adequate for the rule.
    36. Comment: Section 256.7(b)(1) of the rule requires that the 
applicant be ``the owner of the dwelling'' and needs to include 
provision for the applicant with a leasehold, of not less than 10 
years.
    Response: Section 256.9(b) (which replaces Sec. 256.7(b)(1)) has 
been revised to read:
    (b) You must either:
    (1) Own the house; or
    (2) Lease the house with:
    (1) An undivided leasehold (i.e., you are the only lessee); and
    (ii) The leasehold will last at least 25 years from the date that 
you receive the assistance;'
    37. Comment: Section 256.7(b)(2) of the rule should emphasize 
inclusion of ``applicable building and energy code standards'' and 
``applicable building code standards'' should be defined.
    Response: We have not revised this provision (now located at 
Sec. 256.9(c)) because the phrase ``building code standards'' 
encompasses energy code standards, which typically are climate 
dependent and, as written, provides sufficient emphasis on building 
code standards and is adequate for the rule. ``Applicable building code 
standards'' can be tribal, local, state and/or national code standards 
and it is the responsibility of the servicing housing office to have 
knowledge of and determine which standards are applicable.
    38. Comment: Section 256.7(b)(3) of the rule provides that if the 
dwelling is sold within 5 years of the date of completion of the 
repairs, the grant will be voided and repayment of the full cost of 
repairs will be made to the Bureau of Indian Affairs. The rule does not 
address payment to the tribal housing office when services have been 
provided by the tribe under a Pub. L. 93-638 contract or self-
governance compact and the grant is voided. This needs to be consistent 
throughout the rule.
    Response: We have not revised this provision (now located at 
Sec. 256.9(d)(2)) because the tribe has already received and expended 
the funding that is being recaptured by the federal government. The 
funding will be redistributed for use in the Housing Improvement 
Program, using applicable federal guidelines, to one or more eligible 
Tribes within the recapturing area.
    39. Comment: Section 256.7(b)(3) of the rule should be revised to 
include a specified time frame for occupying the dwelling once 
construction is completed.
    Response: We have not revised this provision (now located at 
Sec. 256.9(d)(2)) because the issue of where an individual Indian lives 
is outside the scope of the rule. Indeed, such a rule would be 
contradictory to the intent of the Federal government to emphasize and 
support tribal sovereignty.
    40. Comment: Is the payback revision in Sec. 256.7(b)(3) of the 
rule ``if sold within 5 years of repairs'' very realistic or fair? 
Would a timeframe of 2-3 years be more appropriate or would a payback 
based on some objective measure of increased value which actually 
resulted in cash return to the client be more appropriate?
    Response: We have not revised this provision (now in 
Sec. 256.9(d)(2)) because the intent of the rule is to provide 
protection for the homeowner and the Federal government and to prevent 
avenues for windfall profits or unwarranted improvements to substandard 
housing and is considered adequate for the rule.
    41. Comment: In Sec. 256.7(b)(3) of the rule, change the amount of 
time for the grant agreement to 10 years with the full amount due for 
the first five years and the last five years prorated.
    Response: We have not revised the timeframe (now in 
Sec. 256.9(d)(2)) because the current agreement is considered adequate 
for the rule.
    42. Comment: The use of the word ``modest'' in Sec. 256.7(c) 
provides the opportunity for potential misuse of funds and requires 
further clarification.
    Response: Further clarification of the term ``modest'' (now used in 
the table in Sec. 256.7) can be found in the definition for standard 
housing in Sec. 256.2.
    43. Comment: To maintain continuity and avoid confusion, 
Sec. 256.7(c) of the rule should be revised to read: ``Category C--down 
payment assistance is eliminated.'' Then, Category D should be added as 
Sec. 256.7(d).
    Response: To avoid confusion, the following descriptors have been 
added: interim improvements, repairs and renovation, and replacement 
housing, to Secs. 256.7-256.11.
    44. Comment: In Sec. 256.7(c) of the rule, what is the dollar limit 
for a modest replacement home?
    Response: Section 256.7(c) of the rule does not specify a dollar 
limitation for a modest replacement home. Use of a specific cost limit 
for use throughout Indian Country has proven unrealistic because the 
costs for construction of similar dwellings in different parts of the 
country vary significantly due to varying costs of building materials 
and labor. The rule provides the required flexibility needed by each 
servicing housing office to determine and contain the cost of a modest 
home, based on its square footage and local or regional building 
materials and labor costs.
    45. Comment: Several commentaries concerned elimination of the 
Occupancy and Square Footage Chart (Table A) in Sec. 256.7(c) of the 
rule to provide more flexibility in program administration and because 
the square footage requirements are too restrictive.
    Response: We have retained the table, now located in Sec. 256.11, 
because the rule as written provides adequate program administration 
flexibility through unrestricted cost limitations, while providing for 
a modest dwelling as defined by the parameters of the occupancy and 
square footage chart.
    46. Comment: Would like to see a cost limit and consideration for 
family composition in Sec. 256.7(c) of the rule, since the square 
footage chart is not adequate for a family of four, consisting of a 
husband, wife, one female child and one male child.
    Response: Table A, now located in Sec. 256.11, has been revised to 
accommodate this family composition.
    47. Comment: The phrase ``in which you are living'' should be 
deleted from Sec. 256.7(c)(1) of the rule since some dwellings are in 
such condition as to be unsuitable for occupancy or the rule should be 
modified to address the issue.
    Response: This provision, now located in Sec. 256.10(a), has not 
been revised because it is the intent of the rule to ensure delivery of 
program services to applicants with no other recourse for housing 
assistance.
    48. Comment: Suggest that Sec. 256.7(c)(1) of the rule be revised 
to provide that the term of the leasehold interest is not less than 25 
years at the time of receipt of assistance.
    Response: We have revised this provision, now located in the table 
in Sec. 256.10, to read as follows:

[[Page 10129]]



------------------------------------------------------------------------
           If you                      And                   And        
------------------------------------------------------------------------
Lease the house in which you  Your leasehold is     The house cannot be 
 live.                         undivided and for     brought up to      
                               not less than 25      applicable building
                               years at the time     code standards     
                               that you receive      within the Category
                               assistance.           B cost limit.      
------------------------------------------------------------------------

    We have also made a corresponding revision to the same table for 
another provision formerly in Sec. 256.7(c). It now reads as follows:


------------------------------------------------------------------------
        If you * * *                And * * *             And * * *     
------------------------------------------------------------------------
Do not own a house..........  Have a leasehold on   The land has        
                               land that is          adequate ingress   
                               suitable for          and egress rights. 
                               housing and the                          
                               leasehold is                             
                               undivided and for                        
                               not less than 25                         
                               years at the time                        
                               that you receive                         
                               assistance.                              
------------------------------------------------------------------------

    49. Comment: Recommend that Sec. 256.7(c)(3) of the rule is revised 
to include procedures for repayment, as when a participant sells a home 
within the timeframe requiring repayment, to clarify roles and 
responsibilities.
    Response: This provision, now located in Sec. 256.10(b) has not 
been revised because the procedure is outside the scope of this rule. 
The servicing housing office has a responsibility to be familiar with 
applicable tribal or federal government procedures for recapturing 
funds.
    50. Comment: In Sec. 256.7(c)(3) of the rule, when a beneficiary 
inherits the home within the 10 years, and does not live in the home, 
but rents the home, is the renting of the home subject to repayment or 
considered the same as selling the home?
    Response: This provision, now located in Sec. 256.10(b), does not 
require repayment when a beneficiary inherits the home nor does 
inheritance of the home constitute the sale of the home. Repayment only 
becomes an issue when the home is sold.

Section 256.8  Who Administers the Housing Improvement Program?

    51. Comment: In Sec. 256.8 of the rule, the designation of the 
``servicing housing office'' as the entity administering the program in 
the service area is not acceptable as it does not provide for tribal 
operation of the program under a Pub. L. 93-638 contract or a self-
governance annual funding agreement.
    Response: Section 256.12 (which replaces Sec. 256.8) has been 
revised to clarify that the ``servicing housing office,'' a generic 
description of the servicing entity, provides for a Tribe or the Bureau 
to operate the Housing Improvement Program.

Section 256.9  How do I Apply for the Housing Improvement Program?

    52. Comment: Section 256.9(e) of the rule should be revised to 
reflect that proof of income must be provided from all ``permanent'' 
members of the household as defined in Sec. 256.2.
    Response: Section 256.13(e) (formerly Sec. 256.9(e)) of the rule 
has been revised as requested.
    53. Comment: Section 256.9(e)(1) of the rule requires submission of 
signed copies of current 1040 tax returns from all members of the 
household, but the IRS does not require filing if you make less than 
$2,500.
    Response: Section 256.13(e)(3) (formerly Sec. 256.9(e)(3)) provides 
for the submission of a signed, notarized statement explaining why a 
tax return was not filed and is sufficient for the rule.
    54. Comment: Section 256.9(e)(2) of the rule also should include 
provision for income received from Bureau of Indian Affairs, General 
Assistance programs, operated by Tribes through Pub. L. 93-638 contract 
and Self-governance annual funding agreements.
    Response: Section 256.13(e)(2) (formerly Sec. 256.9(e)(2) has been 
revised as requested.
    55. Comment: Section 256.9(e)(3) of the rule should provide for 
submission of a statement for household members over the age of 18. 
Coordinators should have the option to request additional information 
for dependent children, depending on the household situation, without 
having the applicant get verification from all family members, ages 0 
through 18 years.
    Response: Section 256.13(e)(3) (formerly Sec. 256.9(e)(3)) has not 
been revised because the intent is to identify the income of the 
household, including dependent children. A statement signed by the head 
of household regarding income of dependent children is considered 
adequate for the rule.
    56. Comment: In Sec. 256.9(f) of the rule, how long a period of 
time should the statement cover?
    Response: Section 256.13(f) (formerly Sec. 256.9(f)) has been 
revised to specify an annual trust income statement or a statement that 
there is no account.
    57. Comment: In Sec. 256.9(g) and Sec. 256.9(g)(1) of the rule, the 
terms ``sole possessory interest'' and ``exclusive possessory 
agreement'' are confusing. The attachment to the application has a 
section titled ``Item E--Land Information,'' which explains various 
land status descriptions. These definitions seem a more concise, 
detailed explanation for land status terms and should be reflected in 
the rule.
    Response: Section 256.13(g) (which replaces Sec. 256.9(g)) has been 
revised to read: ``Seventh, you must provide proof of ownership of the 
residence and/or land:
    (1) For fee patent property, you must provide a copy of a fully 
executed Warranty Deed, which is available at your county court house; 
or
    (2) For trust property, you must provide a copy of certification 
from your home agency;
    (3) For tribally-owned land, you must provide a copy of a properly 
executed tribal assignment that has been certified by the agency; or
    (4) For multi-owner property, you must provide a copy of a properly 
executed lease.''
    58. Comment: Section 256.9(g)(4) of the rule provides that ``For 
multi-owner property, you must provide a copy of a properly executed 
lease for not less than twenty-five (25) years.'' This results in 
inconsistency with the payback timeframes for each category.
    Response: Section 256.13(g)(4) (which replaces Sec. 256.9(g)(4)) 
has not been revised because the payback and lease timeframes are not 
related. The length of the lease provides assurance that the family 
receiving the Federal assistance, upon taking possession of the 
dwelling, will have not less than 25 years of use of the dwelling.
    59. Comment: Section 256.9(h) of the rule requiring the applicant 
to obtain a copy of the flood plain map is inappropriate. The delivery 
of program services to dwellings located in an area having special 
flood hazards is dependent on the applicant obtaining flood insurance. 
Therefore, the servicing housing office should have appropriate

[[Page 10130]]

access to the flood insurance rate map(s) (FIRMs) associated with its 
servicing area and be responsible for determining whether the dwelling 
is located in such an area and for notifying the applicant, when 
appropriate, that flood insurance must be obtained.
    Response: The Bureau agrees and has removed Sec. 256.9(h), 
Sec. 256.9(h)(1), Sec. 256.9(h)(2) of the rule and revised Sec. 256.14, 
accordingly.

Section 256.10  What are the steps that must be taken to process my 
application for the Housing Improvement Program?

    60. Comment: Section 256.10 of the rule should specify that the 
tribe should be fully involved in the application, prioritization and 
decision making process. This section should also include the addition 
of the Housing Improvement Program Committee and an explanation of 
their responsibilities in rating and ranking applications.
    Response: Section 256.14 (which replaces Sec. 256.10) has not been 
revised as the commentor suggested because it is the responsibility of 
the servicing housing office to develop the list of applications 
considered and/or received for that program year and, based on 
evaluation of the neediness of the applicant, to develop the priority 
list of families that will receive Housing Improvement Program services 
for the program year. However, we note that under Sec. 256.12(a) 
(formerly Sec. 256.8(a)) a Tribe pursuant to a Self-governance annual 
funding agreement or Self-determination contract can operate the 
Housing Improvement Program.
    61. Comment: Section 256.10 of the rule should be revised to 
include a requirement that the servicing housing office verify the 
availability/feasibility of water and wastewater facilities for each 
site prior to issuing the ``Priority List''. Coordination between the 
Indian Health Service and the Bureau of Indian Affairs is extremely 
important to ensure that homes will not be built at locations that 
cannot be provided essential health-related facilities.
    Response: Section 256.14 (which replaces Sec. 256.10) has not been 
revised as suggested because the definition for standard housing, in 
Sec. 256.2 of the rule has provision for two exceptions to standard 
housing, including the absence of one or more utilities where there is 
no prospect of the utilities becoming available. However, Sec. 256.16 
(formerly Sec. 256.12) has been revised to include provision for 
communication and coordination between the servicing housing office and 
the organization responsible for verifying the availability/feasibility 
for water and wastewater facilities.
    62. Comment: Section 256.10(a) of the rule should be revised to 
allow the servicing housing office to determine whether to return an 
incomplete application and to establish a deadline date by which the 
application must be completed.
    Response: We have revised Sec. 256.14(a) (which replaces 
Sec. 256.10(a)) as requested.
    63. Comment: Section 256.10(b)(1) of the rule should be revised to 
correspond with the official records schedule, which does not address 
the retention of ineligible applicant files. It is suggested that all 
ineligible applications and supporting documentation be returned to the 
applicants upon determination of ineligibility and that those 
applications not be used to develop workload and housing needs 
assessments.
    Response: Section 256.14(b)(1) (which replaces Sec. 256.10(b)(1)) 
has been revised to eliminate the use of these applications to develop 
workload and housing needs assessments. Applications will be handled in 
accordance with the official records schedule.
    64. Comment: Section 256.10(b)(2) of the rule, Table B, Priority 
Ranking Factors, should be revised to provide additional points for 
``aged persons'' to ensure that single, fixed-income elderly applicants 
are awarded sufficient points for priority placement on the priority 
list.
    Response: Section 256.14(b)(2) (which replaces Sec. 256.10(b)(2)) 
has not been revised because the ranking factors as provided in the 
rule is adequate to provide priority ranking for low-income and aged 
applicants.
    65. Comment: Section 256.10(b)(2) of the rule, Table B, Priority 
Ranking Factors, Ranking Factor 3, should be revised to require only 
one document to establish a condition of disability to reduce the 
burden to the applicant.
    Response: Table B, which is now located in Sec. 256.14(b)(2), has 
not been revised because the Bureau of Indian Affairs does not issue 
its own statement of disability condition for purposes of this grant 
program. The requirement to provide two independent statements of 
condition of disability for determination of point award for this 
ranking factor is considered adequate for the rule.
    66. Comment: Section 256.10(d) of the rule should be revised to 
specify that the servicing housing office will develop a list of all 
applicants for the program year and provide a status of the 
application. In addition, the rule should be revised to specify that 
``In the case of a tie, the family with the lower income will be 
`listed' first, since it is not known whether funding is available to 
provide Housing Improvement Program services.''
    Response: We have revised Sec. 256.14(c) (which replaces 
Sec. 256.10(d)) as requested and in response to the general comment to 
make the rule more flexible and less procedural.
    67. Comment: Section 256.10(e) of the rule should be revised to 
provide for the ``Inventory of Housing Improvement Program Applicants 
(IOHA).'' The suggested LEHIPA is only a list of eligible applicants. 
The preferred inventory is a complete listing of all applications taken 
for that program year and their status, providing a good program audit 
trail. Additionally, the rule should provide for comparison of the IOHA 
to the amount of funds available for project construction, since some 
Tribes must use a portion of the program funding to help cover 
administrative costs. Those applicants that will be served are 
considered the current Priority List.
    Response: Section 256.14(c)(4) (formerly Sec. 256.10(e)) has been 
revised to provide for the suggested listing, elimination of the 
LEHIPA, and comparison to available funding and in response to the 
general comment to make the rule more flexible and less procedural.
    68. Comment: Section 256.10(e) of the rule should be revised to 
specify that the servicing housing office will research and develop 
only those projects on the priority list that stand a good chance of 
being funded.
    Response: Section 256.14(c)(4) (formerly Sec. 256.10(e)) has been 
revised to identify that cost estimates will be provided for eligible 
applicants and in response to the general comment to make the rule more 
flexible and less procedural.
    69. Comment: Section 256.10(g) of the rule should be revised to 
require that applications for the program are updated annually. While 
it may be convenient to request that an applicant merely submit a 
letter confirming that their application is still accurate, interested 
applicants should be required to reapply each funding year in order to 
receive assistance. An annual system of updating applications seems to 
provide accurate, updated information from all sources and ensures that 
eligibility is sustained. This will ensure that the program remains up-
to-date, accurate and fair to all. However, the rule should be 
sufficiently flexible to afford Tribes the option to determine if and 
when applications are carried over, for not more than one year, once 
they have been through the prioritization process to accommodate 
extenuating circumstances.

[[Page 10131]]

    Response: Section 256.14(d)(2) (which replaces Sec. 256.10(g)) has 
been revised to accommodate annual updating of applications with a one 
year carryover option, and in response to the general comment to make 
the rule more flexible and less procedural. Accordingly, Sec. 256.10(h) 
of the rule is now found in Sec. 256.14(e) of the rule.
    70. Comment: Section 256.10(g)(3) of the rule is vague and should 
be revised to specify when an application ``must'' be updated.
    Response: Section 256.10(d)(2) (which replaces Sec. 256.10(g)(3)) 
has been revised as requested and in response to the general comment to 
make the rule more flexible and less procedural. Accordingly, 
Sec. 256.10(h) of the rule is now found in Sec. 256.14(e) of the rule.
    71. Comment: Section 256.10(h) of the rule should be revised to 
provide information on where servicing housing offices are to submit 
their annual reports and to whom the reports should be submitted in the 
case of for Pub. L. 93-638 contracting and self-governance annual 
funding agreement Tribes.
    Response: Section 256.14(e) (which replaces Sec. 256.10(h)) of the 
rule has been revised to identify that annual reports are submitted to 
the servicing area office and in response to the general comment to 
make the rule more flexible and less procedural. The general 
designation of servicing area office is used to accommodate area 
specific procedures for receiving annual reports from Tribes.

Section 256.11  How Long Will I Have to Wait for the Improvement, 
Repair, or Replacement of my Dwelling to be Done?

    72. Comment: Section 256.11 of the rule should be revised to 
include: (1) Availability of a contractor; (2) position on the priority 
list as two additional factors that affect the length of time that it 
takes to accomplish the work project.
    Response: Section 256.15 (which replaces Sec. 256.11) has been 
revised to include the requested factors.
    73. Comment: Section 256.11 of the rule should be revised to 
include ``other extenuating circumstances'' or `` other unforeseen 
factors'' to more accurately depict actuality.
    Response: Section 256.15 (which replaces Sec. 256.11) has been 
revised to include (f) Other unforeseen circumstances.

Section 256.12  Who is Responsible for Identifying What Work Will Be 
Done on my Dwelling?

    74. Comment: Section 256.12 of the rule should be revised to 
include provision for consultation with the homeowner.
    Response: Section 256.16 (which replaces Sec. 256.12) has not been 
revised because it is the responsibility of the servicing housing 
office to identify the work required to provide a dwelling which meets 
the definition of standard housing, as identified in Sec. 256.2 of the 
rule, and to communicate this information to the homeowner.

Section 256.13  What Will the Servicing Housing Office do to Identify 
What Work is to be Done on my Dwelling?

    75. Comment: How can a tribe with a limited amount of funding 
available for administration and operation of the program be expected 
to have the necessary funding needed to perform the activities 
identified in Sec. 256.13 of the rule?
    Response: Section 256.17 (which replaces Sec. 256.13) identifies 
what activities must be performed to ensure that the objectives of the 
Housing Improvement Program are met. It is incumbent on the servicing 
organization to ensure that there are adequate resources for the 
administration and conduct of the program.
    76. Comment: Section 256.13 of the rule refers to a trained and 
qualified representative from the servicing housing office. Who 
determines what the qualifications and training needs of the housing 
representative are?
    Response: Section 256.17 (which replaces Sec. 256.13) does not 
specify what the qualifications and training needs of the housing 
representative are because it is outside the function of the Housing 
Improvement Program. Federal government employees must meet or exceed 
the qualifications, education, and/or training requirements established 
for the position. The hiring organization is responsible for assessing 
the qualifications and/or training needs of its housing 
representative(s) to ensure adequate operation of the Housing 
Improvement Program.
    77. Comment: Section 256.13(c) of the rule requires that the 
representative approve dwellings estimated to require $35,000 or more 
in repairs for replacement. The rule should be revised to provide some 
flexibility for cases where the cost estimate only exceeds the $35,000 
limit by a small percentage.
    Response: Section 256.17(c) (which replaces Sec. 256.13(c)) of the 
rule has not been revised because the intent is to ensure that services 
provided under the program are not curtailed due to costs and will 
result in a dwelling that is completely repaired or replaced and to the 
extent possible, a home which will meet the long term needs of the 
recipient.
    78. Comment: Section 256.13(c) of the rule should be revised to 
emphasize that program services are to provide standard housing, which 
is not limited to replacement housing and includes referral to other 
housing resources. Beginning with the second sentence, revise the rule 
to read: ``If the estimated cost to repair your dwelling is $35,000 or 
more, the representative must approve your dwelling for replacement or 
may refer you to another housing source. The other source does not have 
to be for a replacement home, it may be for government subsidized 
rental units.''
    Response: Section 256.17(c) (which replaces Sec. 256.13(c)) has 
been revised beginning with the second sentence to read: ``If the 
estimated cost to replace your dwelling is $35,000 or more, the 
representative must approve your dwelling for replacement or refer you 
to another source for housing. The other source does not have to be for 
a replacement home; it may be for government subsidized rental units or 
other sources for standard housing.
    79. Comment: Section 256.13(d)(1) of the rule requires compliance 
with the occupancy and square footage criteria in Table A of the rule. 
The servicing housing office and tribe should be allowed to determine 
the square footage of each dwelling based on available funds and not be 
limited to the criteria in Table A.
    Response: Section 256.17(d)(1) (formerly Sec. 256.13(d)(1)) has not 
been revised because the criteria identified in Table A, now in 
Sec. 256.11 of the rule, provides the parameters for the modest 
dwelling which may be provided to the recipient of the Housing 
Improvement Program grant and is considered adequate for the rule.

Section 256.14  How Will I Be Advised of What Work is To Be Done?

    Section 256.18 replaces Sec. 256.14. No comments were received.

Section 256.15  Who Performs the Improvements, Repairs, or Replacement 
of My Dwelling?

    80. Comment: Section 256.15 should include provision for tribal 
construction companies and tribal ``force account'' construction. What 
if an eligible applicant is an unemployed carpenter or other skilled 
craftsman?
    Response: Section 256.19 (which replaces Sec. 256.15) has been 
revised to include provision for tribal repair and construction trades 
persons, tribal home building contractors and tribal construction 
companies. The rule does not preclude use of a ``force account.''

[[Page 10132]]

Section 256.20 of the rule is revised accordingly.

Section 256.16  How Are These Repairs or Construction Trades Persons, 
Home Building Contractors or Construction Companies Selected and Paid?

    81. Comment: Section 256.16 of the rule should provide for bidder 
advertisement and selection by a Bureau approved tribal procurement 
policy.
    Response: Section 256.20 (which replaces Sec. 256.16) has been 
revised to include provision for Federal procurement and other Bureau 
approved tribal procurement policy.
    82. Comment: Section 256.16 of the rule should be revised to 
clarify that the appropriate contracting office selects the winning 
bidder, after technical review by and written recommendation from the 
servicing housing office, and after determination that the bidder is 
qualified and capable of completing the project.
    Response: Section 256.20 (which replaces Sec. 256.16) has been 
revised to provide clarification that the appropriate contracting 
office selects the winning bidder.
    83. Comment: Section 256.16(d)(2) of the rule provides that final 
payment will be made to the contractor after the final inspection and 
after all provisions of the contract have been met, including punch-up 
items. This phrase ``punch-up items'' should be replaced with ``punch 
list.''
    Response: Section 256.20(d)(2) (which replaces Sec. 256.16(d)(2)) 
has been revised as requested.

Section 256.17  Will I Have To Vacate My Dwelling While Repair Work or 
Replacement of My Dwelling Is Being Done?

    84. Comment: In Sec. 256.17 of the rule, there should be some 
provision to assist families with relocation, assuming that we will 
serve the neediest of the neediest.
    Response: Section 256.21 (which replaces Sec. 256.17) has not been 
revised because the funding appropriated for the program is provided 
for the needed repairs and replacement of housing and does not provide 
for this type of assistance. Regretfully, these temporary relocation 
costs must be defined as the participant's responsibility. We suggest 
that other sources for this assistance be pursued.

Section 256.18  How Can I Be Sure That the Work That Is Being Done on 
My Dwelling Meets Minimum Construction Standards?

    85. Comment: The phrase ``applicable minimum construction 
standards'' in Sec. 256.18(a) of the rule should be revised to read: 
``applicable building codes'', to provide one definitive phase used 
throughout the rule.
    Response: Section 256.22(a) (which replaces Sec. 256.18(a)) has not 
been revised because the terms are not inclusive.
    86. Comment: Section 256.18(b) of the rule delineating inspections 
at specific stages of construction should be omitted and reference 
should be made to the ``applicable building code regulations'' for new 
construction.
    Response: Section 256.22 (which replaces Sec. 256.18(b)) of the 
rule has not been revised because it provides a necessary and flexible 
framework for the servicing housing office to schedule one or more 
inspections based on the scope of the project, as well as providing 
direction for three specific instances when an inspection is mandatory.
    87. Comment: Section 256.18(b) of the rule should be revised to 
include the usual inspections required as per building codes, such as: 
(1) Foundation; (2) Concrete slab or under-floor; (3) Plumbing, 
mechanical and electrical; (4) Frame and masonry; (5) Insulation and 
vapor barrier; (6) Lath and/or wallboard; (7) Other: The servicing 
housing office may require any other inspection to ascertain compliance 
with the building code; and, (8) Final.
    Response: Section 256.22 (which replaces Sec. 256.18(b)) has not 
been revised because it provides a necessary and flexible framework for 
the servicing housing office to schedule one or more inspections based 
on the scope of the project, as well as providing direction for three 
specific instances when an inspection is mandatory.
    88. Comment: Section 256.18(b) of the rule should be revised to 
read: ``Inspections under categories A, B, and C will be made as needed 
to ensure that applicable minimum construction standards and building 
codes are applied.''
    Response: We have not revised Sec. 256.22(b) (formerly 
Sec. 256.18(b)) because the purpose for review of the construction in 
Sec. 256.22(a) (formerly Sec. 256.18(a)) is considered adequate for the 
rule.

Section 256.19  How Will I Be Advised That the Repair Work or 
Replacement of My Dwelling Has Been Completed?

    89. Comment: Section 256.19 of the rule requires the servicing 
housing office to notify the Housing Improvement Program recipient, in 
writing, that work on the project has been completed. To cut down on 
paperwork, a phone call would suffice.
    Response: Section 256.23 (which replaces Sec. 256.19) has not been 
revised because written communication is recognized as an appropriate 
means of official notification. A copy of the notice signed by the 
recipient also provides the servicing housing office with 
acknowledgment of receipt of the notice. The requirement to provide a 
written notification does not preclude additional communication with 
the recipient regarding the status of the work project.

Section 256.20  How Many Times Can I Receive Improvements, Repairs, or 
Replacement Services Under the Housing Improvement Program?

    90. Comment: Section 256.20(b) of the rule should be revised to 
change October 1, 1986 to October 1, 1990.
    Response: Section 256.24(b) (which replaces Sec. 256.20(b)) has not 
been revised because the specified date corresponds with the 
congressionally mandated redirection of the program.

Section 256.21  Will I Need Flood Insurance?

    91. Comment: Based on the fact that we are serving the ``neediest 
of the needy'', we question whether any of our participants would be 
able to afford flood insurance, as specified in Sec. 256.21 of the 
rule. It is very difficult and expensive to obtain home insurance on 
our reservation due to land issues.
    Response: Section 256.25 (which replaces Sec. 256.21) has not been 
revised because Pub. L. 93-234, as amended, 87 Stat. 975, prohibits the 
expenditure of Federal funds for any purpose in an area identified as 
having special flood hazards, unless there is adequate flood insurance.
    92. Comment: In Sec. 256.21 of the rule, who may waive the 
requirement for flood insurance if the grantee cannot afford it? Also, 
the rule does not explain that a house should be raised above the flood 
plain when circumstances permit.
    Response: The Pub. L. 93-234, as amended, prohibition cannot be 
waived. The servicing housing office is responsible for knowledge of 
applicable building standards.
    93. Comment: Section 256.21, How long should the homeowner keep 
flood insurance in effect?
    Response: Section 256.25 (which replaces Sec. 256.21) does not 
specify the length of time that the flood insurance should be kept in 
effect because it is outside the authority of the rule. However, the 
servicing housing office should be familiar with and able to advise 
applicants of the specific requirements under the Flood Protection Act 
of 1973.

[[Page 10133]]

Section 256.22  Is my Federal Government-Assisted Dwelling Eligible for 
Services Under the Housing Improvement Program?

    94. Comment: We oppose Sec. 256.22 of the rule excluding repairs 
being made to homes that were purchased with ``Government subsidized 
funds''. Most housing on Indian reservations is purchased through 
federally subsidized programs sponsored by the Departments of 
Agriculture, Housing and Urban Development, and Veterans Affairs. Over 
time these homes may become substandard and neither the home nor the 
owner may be eligible for other housing assistance programs.
    Response: Section 256.26 (which replaces Sec. 256.22) has been 
revised to exclude only those homes purchased through Federal 
government-sponsored home programs for which other housing assistance 
is available.
    95. Comment: Section 256.22 of the rule appears to make Housing and 
Urban Development owned housing ineligible for the Housing Improvement 
Program. The rule should be revised to include such homes in the 
program or to provide exceptions for the older, substandard Housing and 
Urban Development housing that is not eligible for any other housing 
assistance programs, or when the home has been paid-off, is under new 
ownership and the new owner otherwise qualifies for the Housing 
Improvement Program.
    Response: Section 256.26 (which replaces Sec. 256.22), as revised, 
excludes homes purchased through Federal government sponsored home 
programs for which other housing assistance is available. Housing and 
Urban Development owned housing is eligible for housing assistance 
through tribally designed housing programs under Pub. L. 104-330, 
Native American Housing Assistance and Self-Determination Act of 1996.

Section 256.23  Are Mobile Homes Eligible for Services Under the 
Housing Improvement Program?

    96. Comment: Section 256.23 of the rule excludes services to 
applicants with a mobile home, but these are the dwellings that often 
have the health and safety deficiencies and eventually require 
replacement.
    Response: Section 256.27 (which replaces Sec. 256.23) is not 
intended to exclude applicants living in a mobile home from 
participation in the program, but is intended to eliminate repairs and 
renovations to mobile units. Typically, these repairs and renovations 
do not meet the definition of cost effective, as defined in Sec. 256.2 
of the rule. The rule has been revised to focus the question on the 
services available to the eligible applicant and has been revised to 
read:
    ``Sec. 256.27  Can I receive Housing Improvement Program services 
if I am living in a mobile home? Yes. If you meet the eligibility 
criteria in Sec. 256.6 of the rule and there is sufficient funding 
available, you can receive any of the Housing Improvement Program 
services as identified in Sec. 256.7, except that if you require 
Category B services and your mobile home has exterior walls of less 
than three inches, you must be provided Category C services.''
    97. Comment: Section 256.23 of the rule specifies that mobile, or 
modular homes are no longer eligible for assistance under the revised 
regulations. Manufactured housing, including mobile homes, which are 
required to meet Department of Housing and Urban Development building 
code standards in 24 CFR part 3280, should be included in the services 
provided under the Housing Improvement Program. The rule should be 
revised to provide for manufactured housing, including modular homes, 
with the axles and tongue removed and installed on a concrete 
foundation.
    Response: Many comments were received concerning Sec. 256.23 of the 
rule. The majority of these comments opposed the exclusion of mobile 
homes from the Housing Improvement Program. The rule, now in 
Sec. 256.27, as revised, addresses the eligibility of applicants living 
in a mobile home and clarifies which services cannot be provided to 
sub-standard mobile homes. Section 256.2 of the rule, as revised to 
include the definition for standard housing, satisfies the comments for 
provision for manufactured housing, including modular housing, when 
that housing meets the definition of standard housing. Practically, 
this includes, but is not limited to: the manufactured housing meeting 
Department of Housing and Urban Development building code standards in 
24 CFR part 3280; that the axles and tongue are removed; and, that the 
unit is installed on a concrete foundation.
    Section 256.24  Can Housing Improvement Program Resources Be 
Supplemented With Other Available Resources?
    98. Comment: Section 256.24 of the rule should be revised to read: 
``Yes. Housing Improvement Program resources may be supplemented 
through other available resources to increase the number of Housing 
Improvement Program recipients.''
    Response: Section 256.28 (which replaces Sec. 256.24) has been 
revised as requested.
    99. Comment: Sections 256.24(a) and 256.24(b) of the rule should be 
deleted to enable the servicing housing office to determine if 
supplemental funds can be used to exceed the Housing Improvement 
Program limits in order to meet the needs of the recipient.
    Response: Sections 256.24(a) and Sec. 256.24(b) of the rule have 
been omitted as requested. However, Sec. 256.28, as revised in response 
to the previous comment, restricts any increase in resources for the 
purpose of increasing the number of Housing Improvement Program 
recipients. This restriction is to ensure that the improvements, 
repairs, renovations, replacements and housing provided under the 
program can not be construed to be extravagant or unnecessary, while 
offering these services to as many eligible recipients as possible. If 
additional resources are available to exceed program limits, the tribe 
may wish to establish an entirely separate tribal housing program, that 
does not use Housing Improvement Program funding, and therefore does 
not need to adhere to the rules of the Housing Improvement Program.

III. Findings and Certifications

    The major purpose of the revision has been to provide simplified 
administrative guidelines and to make the program more flexible and 
responsive to the needs of tribes and the intended recipients of the 
program.
    The Department of the Interior has certified to the Office of 
Management and Budget (OMB) that this rule meets the applicable 
standards provided in sections 3(a) and 3(b)(2) of Executive Order 
12988.
    This rule is not a significant regulatory action under Executive 
Order 12866, and therefore will not be review by the Office of 
Management and Budget.
    In accordance with Executive Order 12630, the Department of the 
Interior has determined that this rule does not have significant 
takings implications.
    This rule will not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.).
    The Department of the Interior has determined that this rule does 
not have significant federalism effects.
    The Office of Management and Budget has approved the information 
collection requirements in part 256 under 44 U.S.C. 3507 et seq. and 
assigned control number 1076-0084. The information is collected to 
determine applicant eligibility for services and eligibility to 
participate in the program based on the

[[Page 10134]]

criteria referenced in Sec. 256.10 and in Table B. The public reporting 
burden for this form is estimated to average 30 minutes per response, 
including the time for reviewing the instructions, gathering and 
maintaining data, and completing and reviewing the form. Comments 
concerning the accuracy of the burden estimate and suggestions for 
reducing the burden should be directed to the Bureau of Indian Affairs, 
Information Collection Clearance Officer, MS 4140-MIB, 1849 C Street, 
N.W., Washington, DC 20420, and to the Office of Management and Budget, 
Office of Information and Regulatory Affairs, Washington, DC 20503. 
Response is required to obtain a benefit under 25 CFR part 256. The 
information is confidential and protected under The Privacy Act of 
1974, 5 U.S.C. 522a, as amended, and for use only in conjunction with 
official U.S. government business relating to the Housing Improvement 
Program. Applicants are informed of the necessity to provide the 
confidential information and must sign a written Privacy Act statement, 
which authorizes the use of the information. A Federal agency may not 
conduct or sponsor and a person is not required to respond to a 
collection of information unless it displays a currently valid OMB 
control number.
    The Department of the Interior has determined that this rulemaking 
does not constitute a major Federal action significantly affecting the 
quality of the human environment and that no detailed statement is 
required pursuant to the National Environmental Policy Act of 1969.
    The primary author of this document is Ms. June Henkel, Office of 
Tribal Services, Bureau of Indian Affairs, Department of the Interior, 
Washington, DC.

List of Subjects in 25 CFR Part 256

    Indians; Indian--housing.

    For the reasons set forth in the preamble, part 256 of Title 25, 
Chapter I of the Code of Federal Regulations is revised as set forth 
below.

PART 256--HOUSING IMPROVEMENT PROGRAM

Sec.
256.1  Purpose.
256.2  Definitions.
256.3  Policy.
256.4  Information collection.
256.5  What is the Housing Improvement Program?
256.6  Am I eligible for the Housing Improvement Program?
256.7  What housing services are available under the Housing 
Improvement Program?
256.8  When do I qualify for Category A assistance?
256.9  When do I qualify for Category B assistance?
256.10  When do I qualify for Category C assistance?
256.11  What are the occupancy and square footage standards for 
housing provided with Category C assistance?
256.12  Who administers the Housing Improvement Program?
256.13  How do I apply for the Housing Improvement Program?
256.14  What are the steps that must be taken to process my 
application for the Housing Improvement Program?
256.15  How long will I have to wait for the improvement, repair, or 
replacement of my dwelling to be done?
256.16  Who is responsible for identifying what work will be done on 
my dwelling?
256.17  What will the servicing housing office do to identify what 
work is to be done on my dwelling?
256.18  How will I be advised of what work is to be done?
256.19  Who performs the improvements, repairs, or replacement of my 
dwelling?
256.20  How are these repairs or construction trades persons and 
home building contractors selected and paid?
256.21  Will I have to vacate my dwelling while repair work or 
replacement of my dwelling is being done?
256.22  How can I be sure that the work that is being done on my 
dwelling meets minimum construction standards?
256.23  How will I be advised that the repair work or replacement of 
my dwelling has been completed?
256.24  How many times can I receive improvements, repairs, or 
replacement services under the Housing Improvement Program?
256.25  Will I need flood insurance?
256.26  Is my Federal government assisted dwelling eligible for 
services under the Housing Improvement Program?
256.27  Can I receive Housing Improvement Program services if I am 
living in a mobile home?
256.28  Can Housing Improvement Program resources be supplemented 
with other available resources?
256.29  What can I do if I disagree with actions taken under the 
Housing Improvement Program?

Authority: 25 U.S.C. 13


Sec. 256.1  Purpose.

    The purpose of the part is to define the terms and conditions under 
which assistance is given to Indians under the Housing Improvement 
Program (HIP).


Sec. 256.2  Definitions.

    As used in this part 256:
    Agency means the current organizational unit of the Bureau that 
provides direct services to the governing body or bodies and members of 
one or more specified Indian tribes.
    Appeal means a written request for review of an action or the 
inaction of an official of the Bureau of Indian Affairs that is claimed 
to adversely affect the interested party making the request, as 
provided in part 2 of this chapter.
    Applicant means an individual or persons on whose behalf an 
application for services has been made under this part.
    Area Director means the officer in charge of a Bureau of Indian 
Affairs area office, or his/her authorized delegate.
    Bureau means the Bureau of Indian Affairs.
    Child means a person under the age of 18 or such other age of 
majority as is established for purposes of parental support by tribal 
or state law (if any) applicable to the person at his or her residence, 
except that no other person who has been emancipated by marriage can be 
deemed a child.
    Cost effective means the cost of the project is within the cost 
limits for the category of assistance and adds sufficient years of 
service to the dwelling to satisfy the recipient's housing needs well 
into the future.
    Disabled means legally blind; legally deaf; lack of or inability to 
use one or more limbs; chair or bed bound; 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.
    Family means one or more persons maintaining a household.
    Household means persons living with the head of household who may 
be related or unrelated to the head of household and who function as 
members of a family.
    Independent trades person means any person possessing the ability 
to perform work in a particular vocation.
    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.
    Indian tribe means an Indian or Alaska Native tribe, band, nation, 
pueblo, village or community that the Secretary of the Interior 
acknowledges to exist as an Indian tribe pursuant to Pub. L. 103-454, 
108 Stat. 4791.
    Permanent members of household means adults living in the household 
that intend to live there continuously from now on and any children 
defined as a child in this part.
    Secretary means the Secretary of the Interior.
    Service area means the reservations (former reservations in 
Oklahoma), allotments, restricted lands, and Indian-

[[Page 10135]]

 owned 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.
    Service housing office means the Tribal Housing Office or Bureau 
Housing Assistance Office administering the Housing Improvement Program 
in the service area in which the applicant resides.
    Standard housing means a dwelling in a condition which is decent, 
safe and sanitary so that it meets the following minimum standards:
    (1) General construction conforms to applicable tribal, county, 
state or national codes and to appropriate building standards for the 
region;
    (2) The heating system has the capacity to maintain a minimum 
temperature of 68 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;
    (3) The plumbing system includes a properly installed system of 
piping and fixtures;
    (4) The electrical system includes wiring and equipment properly 
installed to safely supply electrical energy for lighting and for the 
operation of appliances;
    (5) Occupants per dwelling do not exceed these limits:
    (i) Two-bedroom dwelling: Up to four persons;
    (ii) Three-bedroom dwelling: Up to seven persons;
    (iii) Four-bedroom dwelling: Adequate for all but the very largest 
families;
    (6) Bedroom size: The first bedroom must have at least 120 square 
feet of floor space, additional bedrooms must have a minimum of 100 
square feet of floor space each.
    (7) 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 that region.
    (8) 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.
    Substandard housing means condition(s) exist that do not meet the 
definition of standard housing in this part of the rule.
    Superintendent means the Bureau official in charge of an agency 
office.


Sec. 256.3  Policy.

    (a) The Bureau of Indian Affairs housing policy is that every 
American family should have the opportunity for a decent home and 
suitable living environment. The Housing Improvement Program will serve 
the neediest of the needy Indian families who have no other resource 
for standard housing.
    (b) Every Indian who meets the basic eligibility criteria defined 
in Sec. 256.6 is entitled to participate in the program. Participation 
is based on priority of need, regardless of tribal affiliation.
    (c) Tribal participation in and direct administration of the 
Housing Improvement Program is encouraged to the maximum extent 
possible. Tribal involvement is necessary to ensure that the services 
provided under the program are responsive to the needs of the tribes 
and the program participants.
    (d) Partnerships with complementary improvement programs are 
encouraged to increase basic benefits derived from the Housing 
Improvement Program fund. An example is the agreement with Indian 
Health Services to provide water and sanitation facilities for Housing 
Improvement Program houses.


Sec. 256.4  Information Collection.

    The information collection requirements contained in Sec. 256.9 
have been approved by the Office of Management and Budget under 44 
U.S.C. 3507 et seq. and assigned clearance number 1076-0084. The 
information is collected to determine applicant eligibility for 
services and eligibility to participate in the program based on the 
criteria referenced in Secs. 256.9 and 256.10. Response is required to 
obtain a benefit. The public reporting burden for this form is 
estimated to average thirty minutes per response, including the time 
for reviewing the instructions, gathering and maintaining data, and 
completing and reviewing the form.


Sec. 256.5  What is the Housing Improvement Program?

    The Housing Improvement Program provides a grant to fund services 
to repair, renovate, replace or provide housing for the neediest of the 
needy Indian families having substandard housing or who are without 
housing and have no other recourse for assistance.


Sec. 256.6  Am I eligible for the Housing Improvement Program?

    You are eligible for the Housing Improvement Program if:
    (a) You are a member of a Federally recognized American Indian 
tribe or Alaska Native village;
    (b) You live in an approved tribal service area;
    (c) Your annual income does not exceed 125 percent of the 
Department of Health and Human Services poverty income guidelines. 
These guidelines are available from your servicing housing office;
    (d) Your present housing is substandard as defined in Sec. 256.2; 
and
    (e) You meet the ownership requirements for the assistance needed, 
as defined in Sec. 256.7(b);
    (f) You have no other resource for housing assistance;
    (g) You have not received assistance after October 1, 1986, for 
repairs and renovation, replacement or housing, or down payment 
assistance; and
    (h) You did not acquire your present housing through participation 
in a Federal government-sponsored housing program that includes 
provision for the assistance referred to in paragraph (g) of this 
section.


Sec. 256.7  What housing services are available under the Housing 
Improvement Program?

    There are three categories of assistance available under the 
Housing Improvement Program, as outlined in the following table

------------------------------------------------------------------------
                                                         Where to find  
      Type of assistance           What it provides       information   
------------------------------------------------------------------------
Category A--Interim             Up to $2,500 in        Sec.  256.8.     
 improvements.                   housing repairs to                     
                                 the house in which                     
                                 you live.                              
Category B--Repairs and         Up to $35,000 in       Sec.  256.9.     
 renovation.                     repairs and                            
                                 improvement to your                    
                                 house.                                 
Category C--Replacement         A modest dwelling      Sec.  256.10-11. 
 housing.                        that meets the                         
                                 criteria in Sec.                       
                                 256.11.                                
------------------------------------------------------------------------


[[Page 10136]]

Sec. 256.8  When do I qualify for Category A assistance?

    You qualify for interim improvement assistance under Category A if 
it is not cost effective to renovate the dwelling in which you live and 
if either of the following is true:
    (a) Other resources to meet your housing needs exist but are not 
immediately available; or
    (b) You qualify for replacement housing under Category C, but there 
are no Housing Improvement Program funds available to replace your 
house.


Sec. 256.9  When do I qualify for Category B assistance?

    You qualify for repairs and renovation assistance under Category B 
if you meet the requirements of this section.
    (a) Your servicing housing office must determine that it is cost 
effective to repair and renovate the house.
    (b) You must either:
    (1) Own the house; or
    (2) Lease the house with:
    (i) An undivided leasehold (i.e., you are the only lessee); and
    (ii) A leasehold that will last at least 25 years from the date 
that you receive the assistance.
    (c) The servicing housing office must determine that the repairs 
and improvements will make the house meet applicable building code 
standards.
    (d) You must sign a written agreement stating that, if you sell the 
house within 5 years of the completion of repairs:
    (1) The assistance grant under this part will be voided; and
    (2) At the time of settlement, you will repay BIA the full cost of 
all repairs made under this part.


Sec. 256.10  When do I qualify for Category C assistance?

    (a) You qualify for replacement housing assistance under Category C 
if you meet one of the four sets of requirements in the following 
table.

------------------------------------------------------------------------
 You qualify for Category C                                             
     assistance if * * *            And * * *             And * * *     
------------------------------------------------------------------------
You own the house in which    The house cannot be   ....................
 you are living.               brought up to                            
                               applicable code                          
                               standards for                            
                               $35,000 or less.                         
You lease the house in which  Your leasehold is     The house cannot be 
 you are living.               undivided and for     brought up to      
                               not less than 25      applicable building
                               years at the time     code standards for 
                               that you receive      $35,000 or less.   
                               assistance.                              
You do not own a house......  You own land that is  The land has        
                               suitable for          adequate ingress   
                               housing.              and egress rights. 
You do not own a house......  You have a leasehold  The land has        
                               on land that is       adequate ingress   
                               suitable for          and egress rights. 
                               housing and the                          
                               leasehold is                             
                               undivided and for                        
                               not less than 25                         
                               years at the time                        
                               that you receive                         
                               assistance.                              
------------------------------------------------------------------------

    (b) If you qualify for assistance under paragraph (a) of this 
section, you must sign a written agreement stating that, if you sell 
the house within 10 years of assuming ownership:
    (1) The grant under this part will be voided; and
    (2) At the time of settlement, you will repay BIA the full cost of 
the house.
    (c) If you sell the house more than 10 years after you assume 
ownership, the following conditions apply:
    (1) You may retain 10 percent of the original cost of the house per 
year, beginning with the eleventh year.
    (2) If you sell the house after the first 20 years, you will not 
have to repay BIA.


Sec. 256.11  What are the occupancy and square footage standards for 
housing provided with Category C assistance?

    Housing provided with Category C assistance will meet the standards 
in the following table.


------------------------------------------------------------------------
                                                    Total house square  
  Number of occupants       Number of bedrooms       footage (maximum)  
------------------------------------------------------------------------
1-3....................                 *2                      900     
4-6....................                 *3                     1050     
7+.....................                 *4                   **1350     
------------------------------------------------------------------------
*Determined by the servicing housing office, based on composition of the
  family.                                                               
**Adequate for all but the very largest families.                       

Sec. 256.12  Who administers the Housing Improvement Program?

    The Housing Improvement Program is administered by a servicing 
housing office operated by:
    (a) A Tribe, under a Pub. L. 93-638 contract or a self-governance 
annual funding agreement; or
    (b) The Bureau of Indian Affairs.


Sec. 256.13  How do I apply for the Housing Improvement Program?

    (a) First, you must obtain an application, BIA Form 6407, and a 
Privacy Act Statement from your nearest servicing housing office.
    (b) Second, you must complete and sign BIA Form 6407 and the 
Privacy Act Statement.
    (c) Third, you must submit your completed application and signed 
Privacy Act Statement to your servicing housing office. Submission to 
the nearest BIA housing office does not preclude tribal approval of the 
application.
    (d) Fourth, you must furnish documentation proving tribal 
membership. Examples of acceptable documentation include a copy of your 
Certificate of Degree of Indian Blood (CDIB) or a copy of your tribal 
membership card.
    (e) Fifth, you must provide proof of income from all permanent 
members of your household.
    (1) You must submit signed copies of current 1040 tax returns from 
all permanent members of the household, including W-2's and all other 
attachments.
    (2) You must provide proof of all other income from all permanent 
members of the household. This includes unearned income such as social 
security, general assistance, retirement, and unemployment benefits.
    (3) If you or other household members did not file a tax return, 
you must submit a signed notarized statement explaining why you did 
not.
    (f) Sixth, you must furnish a copy of your annual trust income 
statement from your Individual Indian Money (IIM) account, for royalty, 
lease, and other monies, from your home agency. If you do not have an 
account, you must furnish a statement from your home agency to that 
effect.
    (g) Seventh, you must provide proof of ownership of the residence 
and/or land:
    (1) For fee patent property, you must provide a copy of a fully 
executed Warranty Deed, which is available at your local county court 
house;
    (2) For trust property, you must provide certification from your 
home agency;
    (3) For tribally owned land, you must provide a copy of a properly 
executed

[[Page 10137]]

tribal assignment, certified by the agency; or
    (4) For multi-owner property, you must provide a copy of a properly 
executed lease.


Sec. 256.14  What are the steps that must be taken to process my 
application for the Housing Improvement Program?

    (a) The servicing housing office must review your application for 
completeness. If your application is incomplete, the office will notify 
you, in writing, what is needed to complete your application and the 
date it must be submitted. If you do not complete your application by 
the deadline date, you will not be eligible for assistance in that 
program year.
    (b) The servicing housing office will use your completed 
application to determine if you are eligible for the Housing 
Improvement Program.
    (1) If you are found ineligible for the Housing Improvement Program 
or otherwise do not qualify for the program, the servicing housing 
office will advise you in writing within 45 days of receipt of your 
completed application.
    (2) If you are found eligible for the Housing Improvement Program, 
the servicing housing office will assess your application for need, 
according to the factors and numeric values shown in the following 
table.

----------------------------------------------------------------------------------------------------------------
                  Ranking factor and                                                                            
     Factor           definition               Ranking description                    Point descriptors         
----------------------------------------------------------------------------------------------------------------
        1          Annual Household      Income/125% FPIG--(% of 125% of            Points--(Maximum=40)        
                         income                       FPIG)                                                     
                   Must       0-25................................  40.                                 
                   include income of  26-50...............................  30.                                 
                   all persons        51-75...............................  20.                                 
                   counted in         76-100..............................  10.                                 
                   Factors 2, 3, 4.   101-125.............................  0.                                  
                   Income                                                                               
                   includes earned                                                                              
                   income,                                                                                      
                   royalties, and                                                                               
                   one-time income.                                                                             
        2            Aged Persons                 Years of Age                             Points               
                   For the    Less than 55........................  0.                                  
                   benefit of         55 and older........................   1 point per year of age over 54.   
                   persons age 55 or                                                                            
                   older, and                                                                                   
                   Must be                                                                              
                   living in the                                                                                
                   dwelling.                                                                                    
        3              Disabled       % of Disability--(A%+B%/2)..........          Points--(Maximum=20)        
                       Individual                                                                               
                   Any one    100%................................  20.                                 
                   (1) disabled       or..................................  10.                                 
                   person living in   less than 100%.                                                           
                   the dwelling.                                                                                
                  (The percentage of                                                                            
                   disability must                                                                              
                   be based on the                                                                              
                   average (mean) of                                                                            
                   the percentage of                                                                            
                   disabilities                                                                                 
                   identified from                                                                              
                   two sources (A+B)                                                                            
                   of statements of                                                                             
                   conditions which                                                                             
                   may include a                                                                                
                   physician's                                                                                  
                   certification,                                                                               
                   Social Security                                                                              
                   or Veterans                                                                                  
                   Affairs                                                                                      
                   determination, or                                                                            
                   similar                                                                                      
                   determination)..                                                                             
        4         Dependent Children       Dependent Child--(Number of               Points--(Maximum=5)        
                                                    Children)                                                   
                   Must be    1...................................  0.                                  
                   under the age of   2...................................  1.                                  
                   18 or such other   3...................................  2.                                  
                   age established    4...................................  3.                                  
                   for purposes of    5...................................  4.                                  
                   parental support   6 or more...........................  5.                                  
                   by tribal or                                                                                 
                   state law (if                                                                                
                   any).                                                                                        
                   Must live                                                                            
                   in the dwelling                                                                              
                   and not be                                                                                   
                   married.                                                                                     
----------------------------------------------------------------------------------------------------------------
*FPIG means Federal Poverty Income Guidelines.                                                                  

    (c) The servicing housing office will develop a list of the 
applications considered and/or received for the Housing Improvement 
Program for the current program year. The list will include, at a 
minimum, sufficient information to determine:
    (1) The current program year;
    (2) The number of applications considered and/or received;
    (3) The eligible applicants, ranked in order of need, from highest 
to lowest, based on the total numeric value assigned according to the 
factors shown in Table B. (In the case of a tie, the family with the 
lower income will be listed first);
    (4) The estimated allowable costs of the improvements, repairs or 
replacement projects for the eligible applicants and the ``Priority 
List,'' identifying which applicants will be served based on the amount 
of available funding, starting with the most needy applicant and 
continuing until the amount of available funding is depleted; and
    (5) The applicants not ranked, with an explanation (such as reason 
for ineligibility or reason for incomplete application).
    (d) Your servicing housing office will inform you in writing within 
45 days of completion of the listing whether funding is available to 
provide Housing Improvement Program services to you in that program 
year.
    (1) If funding is available, you will be provided appropriate 
information concerning the availability of Housing Improvement Program 
services.
    (2) If funding is not available, you will be advised, in writing, 
and provided appropriate information concerning submission for the next 
available program year. At the option of your servicing housing office 
and when extenuating circumstances exist, your application can be 
carried forward, for one year, into the next program year. You will be 
advised that you must provide written confirmation that the information 
in your application is still accurate and that you must provide current 
income documentation for that application to be considered in the next 
program year.
    (e) Your servicing housing office will prepare an annual report 
identifying construction work undertaken during the fiscal year and 
related construction expenditures. The annual report is due to the 
servicing area office on the fifteenth day after the end of the fiscal 
year. The report, at a minimum, will contain:
    (1) Number of Eligible Applicants;
    (2) Number of Applicants Provided Service;
    (3) Names of Applicants Provided Service;
    (4) For Each Applicant Provided Service:
    (i) Date of Construction Start;
    (ii) Date of Construction Completion, if applicable;
    (iii) Cost;

[[Page 10138]]

    (iv) HIP Category.


Sec. 256.15  How long will I have to wait for the improvement, repair, 
or replacement of my dwelling to be done?

    The length of time that it takes to accomplish the work to be done 
on your dwelling is dependent on:
    (a) Whether funds are available;
    (b) The type of work to be done;
    (c) The climate and seasonal conditions where your dwelling is 
located;
    (d) The availability of a contractor;
    (e) Your position on the priority list; and
    (f) Other unforeseen factors.


Sec. 256.16  Who is responsible for identifying what work will be done 
on my dwelling?

    The servicing housing office is responsible for identifying what 
work is to be done on your dwelling or whether your dwelling will be 
replaced. This includes responsibility to communicate and coordinate, 
through provision of the current Priority List, with the Indian Health 
Service, when it is the organization responsible for verifying the 
availability/feasibility of water and wastewater facilities.


Sec. 256.17  What will the servicing housing office do to identify what 
work is to be done on my dwelling?

    (a) First, a trained and qualified representative of your servicing 
housing office must visit your dwelling to identify what improvements 
or repairs are to be done under the Housing Improvement Program. The 
representative must ensure that flood, National Environmental 
Protection Act (NEPA) and earthquake requirements are met.
    (b) Second, based on the list of improvements or repairs to be 
done, the representative must estimate the total cost of improvements 
or repairs to your dwelling. Cost estimates must be based on locally 
available services and product costs, or other regional-based, 
industry-recognized cost data, such as that provided by the MEANs or 
MARSHALL SWIFT. If the dwelling is located in Alaska, documented, 
reasonable, substantiated freight costs, in accordance with Federal 
Property Management Regulations (FPMR 101-40), not to exceed 100 
percent of the cost of materials, can be added to the cost of the 
project.
    (c) Third, the representative must determine which Housing 
Improvement Program category the improvements to your dwelling meet, 
based on the estimated cost of improvements or repairs. If the 
estimated cost to repair your dwelling is more than $35,000, the 
representative must approve your dwelling for replacement or refer you 
to another source for housing. The other source does not have to be for 
a replacement home; it may be for government-subsidized rental units or 
other sources for standard housing.
    (d) Fourth, the representative must develop a detailed, written 
report, also called ``bid specifications'' that identifies what and how 
the improvement, repair, or construction work is to be accomplished at 
the dwelling.
    (1) When the work includes new construction, the ``bid 
specifications'' will be supplemented with a set of construction plans. 
The plans must not exceed the occupancy and square footage criteria 
identified in Sec. 256.7. The plans must be sufficiently detailed to 
provide complete instructions to the builder for the purpose of 
construction.
    (2) ``Bid Specifications'' are also used to inform potential 
bidders of what work is to be done.


Sec. 256.18  How will I be advised of what work is to be done?

    You will receive written notice from the servicing housing office 
of what work is being scheduled under the Housing Improvement Program. 
You will be requested to concur with the scheduled work by signing a 
copy of the notice and returning it to the servicing housing office. No 
work will be started until the signed copy is returned to the servicing 
housing office.


Sec. 256.19  Who performs the improvements, repairs, or replacement of 
my dwelling?

    Independent or tribal repair or construction trades persons, home 
building contractors, or construction companies will perform the 
improvements, repairs, or replacement of your dwelling.


Sec. 256.20  How are these repairs or construction trades persons, home 
building contractors, or construction companies selected and paid?

    The servicing housing office must follow Federal procurement or 
other Bureau-approved tribal procurement policy. Generally, your 
servicing housing office develops a ``bid specification'' or statement 
of work, which identifies the work to be performed. The appropriate 
contracting office uses the ``bid specification'' to provide 
information and invite bids on the project to interested parties. The 
contracting office selects the winning bidder after technical review of 
the bids by and written recommendation from the servicing housing 
office, and after determination that the bidder is qualified and 
capable of completing the project as advertised.
    (a) Payments to the winning bidder are negotiated in the contract 
and based on specified delivery of services.
    (1) Partial payments will not exceed 80 percent of the value of the 
completed work.
    (2) Final payment will be made after final inspection and after all 
provisions of the contract have been met, including punch list items.


Sec. 256.21  Will I have to vacate my dwelling while repair work or 
replacement of my dwelling is being done?

    (a) You will be notified by the servicing housing office that you 
must vacate your dwelling only if:
    (1) It is scheduled for major repairs requiring that all occupants 
vacate the dwelling for safety reasons; or
    (2) It is scheduled for replacement which requires the demolition 
of your current dwelling.
    (b) If you are required to vacate the premises for the duration of 
the construction, you are responsible for:
    (1) Locating other lodging;
    (2) Paying all costs associated with vacating and living away from 
the dwelling; and
    (3) Removing all your belongings and furnishings before the 
scheduled beginning work date.


Sec. 256.22  How can I be sure that the work that is being done on my 
dwelling meets minimum construction standards?

    (a) At various stages of construction, a trained and qualified 
servicing housing office representative or building inspector will 
review the construction to ensure that it meets applicable minimum 
construction standards and building codes. Upon completion of each 
stage, further construction is prohibited until the inspection occurs 
and approval is granted.
    (b) Inspections are, at a minimum, made at the following stages of 
construction:
    (1) Footings;
    (2) Closed in, rough wiring and rough plumbing; and
    (3) At final completion.


Sec. 256.23  How will I be advised that the repair work or replacement 
of my dwelling has been completed?

    The servicing housing office will advise you, in writing, that the 
work has been completed in compliance with the project contract. Also, 
you will have a final walk-through of the dwelling with your servicing 
housing office representative. You will be requested to verify that you 
received the notice of completion of the work by signing a copy of the 
notice and returning it to the servicing housing office representative.

[[Page 10139]]

Sec. 256.24  How many times can I receive improvements, repairs, or 
replacement services under the Housing Improvement Program?

    (a) Under Interim Improvements, Category A, you can receive 
services under the Housing Improvement Program more than one time, for 
improvements to the dwelling in which you are living to improve the 
safety or sanitation of the dwelling:
    (1) For not more than a total cost of $2,500;
    (2) For not more than one dwelling.
    (b) Under Repairs and Renovation, Category B, after October 1, 
1986, you may receive services one time, for repairs to the dwelling 
that you own and occupy that requires not more than $35,000 to make the 
dwelling meet applicable building code standards.
    (c) Under Replacement Housing, Category C, after October 1, 1986, 
you may receive services one time, for a modest replacement home.


Sec. 256.25  Will I need flood insurance?

    You will need flood insurance if your dwelling is located in an 
area identified as having special flood hazards under the Flood 
Disaster Protection Act of 1973 (Pub. L. 93-234, 87 Stat. 977). Your 
servicing housing office will advise you.


Sec. 256.26  Is my Federal government-assisted dwelling eligible for 
services under the Housing Improvement Program?

    Yes. You may receive services under the Housing Improvement Program 
if your home was purchased through a Federal government sponsored home 
program that does not include provision for housing assistance.


Sec. 256.27  Can I receive Housing Improvement Program services if I am 
living in a mobile home?

    Yes. If you meet the eligibility criteria in Sec. 256.6 and there 
is sufficient funding available, you can receive any of the Housing 
Improvement Program services identified in Sec. 256.7. If you require 
Category B services and your mobile home has exterior walls of less 
than three inches, you must be provided Category C services.


Sec. 256.28  Can Housing Improvement Program resources be supplemented 
with other available resources?

    Yes. Housing Improvement Program resources may be supplemented 
through other available resources to increase the number of Housing 
Improvement Program recipients.


Sec. 256.29  What can I do if I disagree with actions taken under the 
Housing Improvement Program?

    You may appeal action or inaction by an official of the Bureau of 
Indian Affairs, in accordance with 25 CFR Part 2. You may appeal action 
or inaction by tribal officials through the appeal process established 
by the servicing tribe.

    Dated: February 24, 1998.
Kevin Gover,
Assistant Secretary--Indian Affairs.
[FR Doc. 98-5300 Filed 2-27-98; 8:45 am]
BILLING CODE 4310-02-P