The Native American Housing Block Grant programs are authorized by the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) and the American Recovery and Reinvestment Act of 2009 (Recovery Act). Under the Recovery Act, funds may be used for new construction, acquisition, rehabilitation, including energy efficiency and conservation, and infrastructure development. Funds can also be used to leverage private sector financing for new construction, renovation and energy retrofit investments. Funds will be obligated within 30 days of the enactment of the Recovery Act. In selecting projects to be funded with Recovery Act funds, the recipient shall give priority to projects for which contracts can be awarded within 180 days from the date that such funds are available to the recipient.

The recipient will be required to obligate 100 percent of their funds within 1 year of the date funds are made available, expend at least 50 percent of such funds within 2 years of the date in which funds became available, and expend 100 percent of such funds within 3 years of such date. If the recipient fails to comply with the 2 year expenditure requirement, funds will be recaptured. If the recipient fails to comply with the 3 year expenditure requirement, the balance of the funds originally awarded to the recipient will be recaptured.