HUD SETTLES WITH TULALIP TRIBES TO CORRECT PERFORMANCE PROBLEMS WITH INDIAN HOUSING BLOCK GRANT PROGRAM

SEATTLE - The U.S. Department of Housing and Urban Development is pleased to announce that it has finalized a settlement agreement with the Tulalip Tribes to resolve performance problems HUD found in the Tribes' use of
federal Indian Housing Block Grant (IHBG) funds.

The settlement, finalized October 14, follows HUD's imposition of sanctions on the Tribes last spring for failure to satisfactorily resolve six findings identified in a monitoring review. The findings included failure to submit required audits and properly account for expenditure of funds.

"HUD is encouraged by the priority that the Tulalip Tribes has placed on improving the administration of its housing program," said Paula Blunt, HUD's General Deputy Assistant Secretary for Public and Indian Housing. "While much
work remains to be done, this agreement is a positive step forward toward the Tulalip Tribes achieving full program compliance within specified timeframes. Our goal is to ensure that IHBG funds are used to provide affordable and
safe housing for tribal members."

Under terms of the agreement, a partial suspension of payments from allocated, but not yet expended, IHBG funds
will remain in effect until all noncompliance issues are closed. The Tribes will be permitted to access $745,846 per year for maintenance and operation of existing housing.

Allowable expenditures above $745,846 will be reimbursed from current or future grants if all noncompliance issues
are closed by May 31, 2006. Any expenditure determined to be ineligible after audits are submitted will result in
grant reduction from either current or future grants.

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 HIV/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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