HUD's 2001 Budget
Congressional Justifications for EstimatesDEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
PUBLIC AND INDIAN HOUSING
INDIAN HOUSING BLOCK GRANTS
PROGRAM HIGHLIGHTS
a/ Includes fiscal year 1998 carryover.
NA = Not Applicable
SUMMARY OF BUDGET REQUEST
- SUMMARY OF BUDGET REQUEST
The Budget proposes an appropriation of $650 million for the Indian Housing Block Grants (IHBG) program in fiscal year 2001. This program provides a needs-based formula grant for housing and housing-related assistance either directly to eligible Indian tribes or through their tribally designated housing entities (TDHEs). The request includes up to $6 million to support related training and technical assistance activities.
Also included in this request is $5 million in credit subsidy for the Title VI Indian Federal Guarantees program. For administrative expenses to carry out this guaranteed loan program, $200,000 of the credit subsidy amount will be transferred and merged with the Department's appropriation for Salaries and Expenses. The $200,000 includes funds for travel related to marketing the program and on-site monitoring, and other training and systems developments.
In addition, the Department is requesting $5 million to create an Indian Homeownership Intermediary initiative in response to the August 6, 1998, Presidential Memorandum to the Secretaries of Commerce, Treasury, Interior, HUD and the Administrator of the Small Business Administration on "Economic Development in Native American and Alaska communities." The Budget also proposes language to allow tribes to house full-time law enforcement officials.
Summary Of Program Strategic Goal/Objectives
The Indian Housing Block Grants program, the Title VI Indian Federal Guarantees program, and the Indian Homeownership Intermediary programs are essential to achieve HUD's Strategic Goal 1: Increase the availability of decent, safe and affordable housing in Native American communities, and specifically Strategic Objective 1.1-to increase homeownership, and objective 1.2-to make affordable rental housing available to low-income Native American households on tribal trust and allotted trust lands and on fee simple lands in Indian and Alaskan Native areas, and to provide eligible Indian tribes and tribally designated housing entities the opportunity to provide additional housing to tribal members.
Also the Indian Homeownership intermediary initiative is essential for achieving HUD's Strategic Goal 3: Promote self-sufficiency and asset development by families and individuals; and Strategic Objective 3.2-enabling poor and disadvantaged families and individuals become self-sufficient and develop assets.
- CHANGES FROM 1999 ESTIMATES INCLUDED IN THE 2000 BUDGET
The fiscal year 1999 appropriations provided $200,000 for program administration as an addition to the requested $620 million in program budget authority. Actual outlays for fiscal year 1999 were $104 million lower than expected since the advance drawdown of funds by eligible Indian Tribes and TDHEs did not materialize. The 1999 carryover balances were revised to conform with the Department's transition to obligation-based accounting from the former reservation basis.
- CHANGES FROM 2000 ESTIMATES INCLUDED IN THE 2000 BUDGET
In fiscal year 2000, $175 million in carryover will be available from fiscal year 1999. In addition, $6 million was enacted for Title VI instead of $5 million as proposed in the fiscal year 2000 President's Budget. A guarantee limitation of $54.6 million was enacted compared to $45.2 million proposed in the President's Budget.
EXPLANATION OF INCREASES AND DECREASES
The proposed increase of $30 million of budget authority is required to progress toward meeting critical housing needs, and to allow tribal housing organizations to maintain their existing units while adding new units to their housing stock.
PROGRAM DESCRIPTION AND ACTIVITY
In 1996, to recognize the unique nature and needs of American Indian and Alaska Native areas, the Congress enacted Native American Housing Assistance and Self-Determination Act (NAHASDA, P.L. 104-330) to better assist Native American people and their communities. The IHBG program provides the funds that are needed to allow tribal housing organizations both to maintain existing units and to begin development of new units to meet their critical housing needs. The NAHASDA stipulates that each eligible Indian tribe or its TDHE receive annually a single block grant to meet the housing needs within their community. The tribe or its TDHE must submit both a 1-year and 5-year Indian Housing Plan (IHP), consisting of a mission statement, goals and objectives, needs statement, statement of financial and affordable housing resources, and proposed activities designed to meet the housing needs identified in the Plan.
The Department's Office of Native American Programs staff monitors the tribe or its TDHE to ensure compliance with the objectives of the IHP. To receive the Department's approval of the IHP, grantees must indicate that their first priority is the management and maintenance of existing dwelling units developed with HUD funds. Once approved, the tribe is eligible to receive funds through the annual formula allocation.
The IHBG allows grant recipients to develop and support affordable rental and homeownership housing and provide housing services through the following eligible activities:
Development
Grant funds may be used to support acquisition, new construction, reconstruction, and the moderate or substantial rehabilitation of affordable housing, and may include real property acquisition, site improvement, development of utilities and utility services, conversion of a project to homeownership, demolition, financing, administration and planning, and other related activities.
Indian Housing Assistance
Indian housing assistance provides for modernization and operating assistance for housing previously developed or operated under a contract between the Department and an Indian Housing Authority, now the tribe or its TDHE.
Housing Services
Funds may be used to provide housing counseling for rental or homeownership assistance, establishment and support of resident management organizations, energy auditing, supportive and self-sufficiency services, and other related services assisting owners, residents, contractors and other entities, participating or seeking to participate in eligible housing activities.
Housing Management Services
Grant funds may be used to provide management services for affordable housing which may include preparation of work specifications, loan processing, inspections, tenant selection, management of tenant-based rental assistance, and management of affordable housing projects.
Crime Prevention and Safety Activities
Funding may be provided for safety, security, and law enforcement measures and activities appropriate to protect residents of affordable housing from crime.
Model Activities
The Department may approve housing activities under model programs that are designed to develop and support affordable housing to comply with the mandate that new housing opportunities be developed, utilizing a wide variety of creative approaches and, among other things, establishing partnerships, leveraging other public and private funds, while ensuring long-term viability, implementing ideas that supplement limited Federal grant funds with other sources of capital, loans, buy-downs, and other financing mechanisms.
Law Enforcement
Funds can be used to provide housing for law enforcement officers on Indian reservations or other Indian areas. This activity will be designated as an eligible affordable housing activity in the Indian Housing Block Grant program. The presence of law enforcement officers will reduce or eliminate crime, especially drug-related crime, in and around tribal housing developments.
PROGRAM SET-ASIDES
Title VI Federal Guarantees for Financing for Tribal Housing Activities
The Budget includes a set-aside of $5 million for the continuation of the Title VI Indian Federal Guarantees program. This program provides loan guarantees for IHBG recipients, Indian tribes, and TDHEs who need additional funds to engage in NAHASDA-eligible affordable housing activities but are unable to borrow from other sources without the guarantee of payment by the Federal Government. The borrower pledges future IHBG funds as security to collateralize a federally guaranteed financial obligation.
Indian Homeownership Intermediary
The Budget also includes a set-aside of $5 million to develop non-profit homeownership intermediaries in Indian country. They will serve as a catalyst for the creation of a private homeownership-market in Indian Country.
Training and Technical Assistance
Up to $6 million of the total IHBG appropriation will be setaside to support the inspection of Indian housing units, contract expertise, and training and technical assistance to assist in the oversight and management of Indian housing or tenant-based assistance. Activities include, but are not limited to, training and technical assistance for tribal and TDHE staff, residents and ONAP staff, resident surveys, and data collection and analysis. Of this funding, up to $300,000 is included for related travel.
Fiscal Year 2001 Performance Measures
Performance Indicators:
Increase the number of Native American families being served under NAHASDA.
Baseline:
Baseline data will be extracted from the Annual Performance Reports required to be submitted by grantees within 60 days of the end of their program year. This activity began at the end of fiscal year 1999, the first full year of NAHASDA implementation. Data will be available during fiscal year 2000.
Goals:
Comments: Through NAHASDA implementation, the Department will continue to promote increased housing assistance for eligible low-income Native American families residing on reservations and in other traditional Indian areas. The annual increase in the number of Native American families served under NAHASDA's six eligible affordable housing activities each fiscal year will be tracked by the Department.
Content Archived: January 20, 2009
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