HUD IMPOSES SANCTIONS ON THE TULALIP TRIBES
Remedies to address performance problems

SEATTLE - On April 26, the U.S. Department of Housing and Urban Development (HUD) notified the Tulalip Tribes
that several remedies are being imposed on its Indian Housing Block Grant (IHBG) program to address the
performance problems experienced in its HUD-funded housing program. HUD is pursuing these sanctions after
several months of discussions with the Tribes on the proposed corrective actions to be completed.

Although some positive steps have been taken, including dismantling the former Tulalip Tribes Housing Authority,
it is estimated that a little over a year of additional effort is needed to close the outstanding findings that were identified in prior audits and monitoring reviews. The remedies imposed by HUD are designed to ensure the proper
use of federal funds as the Tribes addresses these outstanding problems and establishes the requisite
administrative capability within its new organizational structure for the delivery of housing services.

The following sanctions are being imposed and pursued by HUD:

Suspension of funds - All funds under the Tribes' current IHBG grants (1999 through 2004) are being immediately suspended, except for maintenance and operation funds.

• Maintenance and operation funds - The Tribes will be allowed to access up to $745,846 of funds per year from the date of the letter for the maintenance and operation of existing housing units.
  
  
• Termination of funds - HUD is seeking the termination of the remaining funds in the Tribes' 1999 through
  2002 IHBG grants in the total amount of $2,781,292.
  
  
• Withholding of 2005 grant - The Tribes' 2005 IHBG grant in the amount of $2,047,618 will be reduced
  to zero.
  
  
• Potential termination of additional funds - If acceptable A-133 audit reports for fiscal years 2002, 2003,
  and 2004 are not submitted by May 31, 2006, the remaining balances of the Tribes' 2003 and 2004 IHBG
  grants will be terminated.

HUD is encouraged by the actions that have been taken by the Tribes to improve its housing programs. HUD is also hopeful that the Tribes will successfully implement its overall strategy to bring its HUD-funded housing program into compliance with program requirements and improve the delivery of housing services for low-income Native American families.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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