Law Could Stop Housing Abuses Indian Tribes Would Get Leeway In Spending Of Federal Funds

The future of federal housing aid for Native Americans could depend on interpretation of a new law, passed in the final 10 minutes of Congress’ 1996 session, The Seattle Times reported Thursday.

The new law could give tribes even more leeway in spending of federal funds, which could be disastrous, the Times says in the final segment of a copyright five-part series.

The newspaper investigated abuses since Department of Housing and Urban Development regulations were eased in 1992 to allow more decision-making by tribes. The Times found that many tribal leaders have taken advantage of the “new flexibility” in HUD’s Mutual Help program to help themselves and their friends and relatives.

With 100,000 Indians in need of decent housing, the challenge is to ensure HUD funds are allocated to help the poor, who often wait years for relief from rundown, overcrowded quarters without plumbing or electricity.

Supporters of the new law say that with strong enforcement of key regulations, it could work.

The Times said Congress could also amend the law, written by Rep. Rick Lazio, R-N.Y. Lazio proposed an overhaul of HUD in an effort to prevent termination of the agency, but managed to change only the Indian-housing program, the newspaper reports.

His law would provide housing aid to tribes in the form of block grants, leaving tribes to determine what housing is built, how much to spend and how much to charge occupants.

Federal officials may call for annual audits - as thorough “as may be necessary or appropriate” - and HUD officials will visit housing agencies “insofar as practical.”

Erma Vizenor, a Harvardeducated reformer, is working to clean up her tribe, the White Earth Band of Chippewa in Minnesota. Three tribal leaders were convicted last year of stealing nearly $900,000 from their people and she worries that the new law could be worse.

“What our tribes need is accountability to our own people,” she said. “Yes, I believe in self-determination, self-governance and sovereignty, but all of those terms do not mean crime, corruption and abuse. Those terms mean responsibility, accountability, justice and fairness.”

Chester Carl, executive director of he Navajo Nation’s housing authority, believes the new law will benefit needy Indians by cutting costs.

The block-grant program is clearly more flexible. A tribe will get a single grant to cover all of its housing needs rather than worrying about individual grants for different efforts.

But there are risks.

“We’re heading toward a very fragile time,” said Ruth Jaure, executive director of the National Association of Indian Housing Councils. “How do we design a program so we don’t fall into a pit? If you have a program that invites corruption, then what have you gained? We hope the legislation will have safeguards and HUD will use them.”