FOR IMMEDIATE RELEASE
March 12, 1997
CONTACT: Christopher M. Changery
(202) 224-2251

NEW INDIAN HOUSING LAW GOOD FIRST STEP IN PREVENTING FUTURE ABUSES

WASHINGTON, D.C. -- Senate Indian Affairs Committee Chairman Ben Nighthorse Campbell said today's committee hearing shows that a new law can help prevent future abuses in Indian housing programs.

At a joint hearing with the Senate Banking Committee, members heard from the Department of Housing and Urban Development, General Accounting Office and tribal representatives on published allegations of misuse of federal funds by Indian Housing Authorities. Witnesses also testified on the Native American Housing Assistance and Self-Determination Act, P.L. 104-330, which was signed into law last year and takes effect Oct. 1, 1997.

"Based on today's testimony, I think it is clear the new law gives HUD some tools to ensure federal grants help people who need houses, not line someone's pocket," Campbell said. "I look forward to suggestions from the administration on how to further strengthen the law."

Under the new law:

• Tribes must submit detailed one- and five-year plans, which are reviewed by HUD, outlining their housing plan and how they will spend the money;



• Tribes must submit annual performance reports, which are audited by HUD, showing how the housing money was spent;



• HUD must make annual reports to Congress on progress made and how money was spent;

If HUD finds "substantial non-compliance" with any provision of the new law, the secretary can:

• Terminate or reduce payments to the tribe;



• Limit which programs the tribe can fund with the grants;



• Replace the Tribal housing entity



• Refer cases to the U.S. Attorney General for civil prosecution to get money back.

Campbell said no law will help prevent abuses if government agencies do not enforce the rules. "We are in a period of returning control to local governments -- even in programs involving federal money," Campbell said. "The feeling shared by many members of both parties is that local problems are best solved by local solutions, not by one-size-fits-all solutions from a Washington bureaucracy. But this does not mean federal agencies can ignore their responsibility to ensure federal dollars reach the people they were intended to help."