FOR IMMEDIATE RELEASE
March 13, 1997
CONTACT: Christopher M. Changery
(202) 224-2251

CAMPBELL: HUD INSPECTOR GENERAL TESTIMONY ON NEW INDIAN HOUSING LAW "IRRESPONSIBLE"

WASHINGTON, D.C. -- Senate Indian Affairs Committee Chairman Ben Nighthorse Campbell today said Department of Housing and Urban Development Inspector General Susan Gaffney's testimony at a hearing yesterday was misleading because she was unfamiliar with a new Indian housing law.

In a letter to Gaffney, Campbell wrote that her claim that the Native American Housing Assistance and Self-Determination Act (NAHASDA) will allow for more abuse of funds and leave HUD powerless to punish those who misuse federal housing money was incorrect and "may have resulted from your organization's lack of knowledge about the new law."

Gaffney's testimony came at a joint hearing of the Senate Indian Affairs and Banking Committees on Indian Housing Programs

"As the hearing demonstrated, there are numerous problems with Indian housing programs, ranging from lack of technical ability to efforts to defraud the federal government. However, irresponsible commentary on the new law you admittedly were unfamiliar with is destructive to our mutual goal of cleaning up these problems and helping low income Indian families."

In a separate letter to HUD Secretary Andrew Cuomo, Campbell wrote that NAHASDA "is a crucial step toward better housing for Native American families and better accountability for federal spending. However, I feel that many of the statements made at yesterday's joint hearing may have been harmful to the process of ensuring the effectiveness of these programs. I hope you will join me in making sure the record reflects accurate information concerning both the statute and implementation of this law."

NAHASDA, signed into law last year, will take effect Oct. 1, 1997. The letter points out that 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.

Campbell's letter also points out that 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.

In the letter to Gaffney, Campbell took issue with her claim that part of the new law prevents the secretary from recovering funds spent to build houses for over-income families. Campbell pointed out that in those cases, the law requires the secretary to either reduce future grant payments by the amount of money misused or require the money to be repayed.

Campbell also asked for documentary evidence supporting her claims that mismanagement in Indian housing authorities is worse than in public housing authorities and that rent collection in Indian country is more difficult because of cultural factors.