Overcrowded * 16% of the housing is classified as severely overcrowded (more than 1.51 persons per room). 33% of the housing is classified as overcrowded (more than 1.01 persons per room). It is the ultimate goal of the Minnesota Chippewa Tribal Executive Committee to develop mortgage financing for 500 tribal families. This goal is now only half accomplished. With the continued support of the Minnesota State Legislature, it is anticipated that this goal can be reached by 1983. At this point, the Tribal Home Loan Program could, without additional appropriations through the revolving basis of the program, develop an additional 50 units of housing per year thereby providing continuous home ownership opportunities for Minnesota Chippewa Tribal families. For further information contact, The Minnesota Chippewa Tribe Darrell Wadena - President P. O. Box 217 Cass Lake, Minnesota 56633 (218-335-2252) Mr. LUNDINE. Thank you both very much for providing very valuable testimony. The subcommittee will be adjourned until 2 p.m. [Whereupon, at 11:15 a.m., the hearing was recessed, to reconvene at 2 p.m., this same day.] AFTERNOON SESSION Mr. AUCOIN [presiding]. The subcommittee will come to order. This afternoon we will resume the hearings on the Indian and Alaskan Native housing programs. This panel this afternoon will be the Indian housing authority directors. We have with us. Mr. Roy Cleveland, the executive director of the Navajo Indian Housing Authority, and we welcome you, sir, to the subcommittee; Mr. Lloyd LeBeau, who was here yesterday, and we welcome you back, executive director of the Cheyenne River Housing Authority; and third, Mr. Ronald Froman, executive director of the Creek Nation Housing Authority. Gentlemen, we appreciate your taking the time to give this subcommittee your insights into the matter we are holding hearings on. Mr. Cleveland, I would like to recognize you first, if I may. We have your testimony and it will be entered into the record. If you would like to summarize your statement, we would be happy to hear from you at this time. STATEMENT OF ROY J. CLEVELAND, EXECUTIVE DIRECTOR, NAVAJO HOUSING AUTHORITY Mr. CLEVELAND. Thank you. Mr. Chairman, members of the subcommittee, I am Roy J. Cleveland, executive director of the Navajo Housing Authority. We have submitted a statement on behalf of the Navajo Housing Authority. In addition to the statement, we have submitted a prototype cost study which was done by the Navajo Housing Authority. Mr. Chairman, I would like to briefly summarize my statement. The Navajo Housing Authority was chartered by the Navajo Tribal Council in May of 1963. This charter enabled the Navajo Tribe to participate in the low-income housing program which was available at that time in 1963. It was recognized that there was an immediate need to develop 10,000 dwelling units for the Navajo families. As you may know, the Navajo Nation is 25,000 square miles, which is equivalent to the size of the State of West Virginia. There is a population-the current population is in excess of 155,000. Currently our goal has been to develop about 1,000 dwelling units per year, but we have not been able to do so. What happened to our objective in developing these units? There were numerous things involved. If I may do so, Mr. Chairman, in our report which we have submitted, on page 5 it outlines various problems that we are faced with, and I would like to read those. And these are the recommendations of the Navajo Housing Authority for the subcommittee to look into. Mr. AUCOIN. Please do. Mr. CLEVELAND. Our recommendation is that the Navajo Nation should be treated as one nation and not parcels of three separate States. The Navajo Nation goes into the States of New Mexico, Arizona, and Utah. The main portion of our nation is in Arizona. Even though they are in three separate States, we would like to be recognized as one nation. HUD uses the three States currently to establish prototype costs and also Davis-Bacon wage rates, and there is inconsistency in the methods that we are using. Also, the prototype cost that is currently being used is inadequate. No. 2, we state that the prototype cost limitations should be based upon actual bids received rather than on estimates of HUD personnel. No. 3, the DOL and HUD should cooperate to establish job training centers on the reservation to create a skilled available work force and require contractors and subcontractors to utilize the training centers. No. 4, more authority and additional personnel should be at the field offices, rather than in San Francisco, which is approximately 1,200 miles from Window Rock, Ariz., the capital of our Navajo Nation. The way it is presently, you have your office in San Francisco, you have field offices in Phoenix and Albuquerque. The Albuquerque and Phoenix offices are more of a mail stop than anything else. We would like to have the authority and responsibility given to the field office whereby the processing of production can be increased. Not only that; it is much easier to get into Albuquerque. There are adequate accommodations to handle this work. No. 5, postbid negotiations with the lowest qualified bidder should be allowed, provided his bid is not more than 110 percent of the available funding. No. 6, the Bureau of Indian Affairs should be required to construct all-weather roads to project sites when requested by the Navajo Housing Authority after a project is funded. No. 7, the Bureau of Indian Affairs should be required to maintain all roads to the project sites and all streets within the projects. No. 8, the Federal Government should designate one department as a lead agency having power to require the enforcement of the interdepartmental agreement between HUD, the Department of Interior Bureau of Indian Affairs, and the Department of Health, Education, and Welfare, the Indian Health Service. Back to item No. 7, Mr. Chairman, many of these projects that we had were developed 10 years ago or more. At the time that these projects were initiated or planned, there was no provision made as to how these access roads and/or streets on the projects should be maintained. Therefore, the majority of these streets and access roads are deteriorated. The BIA doesn't have the funds to correct these, according to their statements; and HUD does not have funding to correct these. We have estimated that on our current projects it would cost approximately $10 million just to upgrade our streets within our current projects. The Navajo Housing Authority has 2,283 public rental and mutual help units located on about 75 separate project sites. Some of our project sites are approximately 225 miles from our central office in Window Rock. Therefore, we request that adequate funding should be allocated in order that when these projects are developed, the streets can be built. correctly, the dwelling units to be developed correctly, therefore future maintenance problems and other problems can be eliminated. Another thing: HUD has established Navajo Housing-excuse me. The tribe has established Navajo Housing Authority through the funding of HUD. We are able in most instances to develop communities. Our main problems are that our reservation is vast, it is huge. There are many remote sites which are 150 miles or more from a training center or from our central office. Many of the costs that are involved in developing these projects are unique. For example, some of our projects, as I have stated, are 150 miles from the main supply point. When a contractor is required to come on the reservation to develop construction, he may be able to purchase concrete or other materials at the trading centers surrounding the reservation. A current cost of concrete is $50 a yard at these trading centers. By the time he delivers it to the project site and puts it in place, the cost is running about $250 per yard or more. We feel that HUD should recognize these and make allowances in establishing a prototype. Mr. Chairman, in addition to our statements, as I have mentioned earlier, there is a request for an increase in prototype costs from the Navajo Housing Authority to the Department of Housing and Urban Development. This is a statement which we have put together, and it ilustrates on occasions, on many occasions, how the prototype cost is ineffective on our reservations. Recently last fall, we put some of our projects out to bid. Some of the bids came in as high as 178 percent above prototype costs. Most of this cost is due to the remoteness, the inaccessibility to our projects. The people that are living in these remote areas are entitled to housing just like anyone else. Thank you, Mr. Chairman. If there are any questions, I would be glad to answer them. [Mr. Cleveland submitted a prepared statement on behalf of the Navajo Housing Authority along with a study entitled "Request for Increase in Prototype Costs From the Navajo Housing Authority to the U.S. Department of Housing and Urban Development." The material follows:] Project Office Shiprock, N.M. 87420 Project Office P. O. Box 97 Tohatchi, N.M. 87325 Project Office P. O. Box 187 Crownpoint, N.M. 87313 Project Office P. O. Box 137 Project Office P. O. Box 557 Ft. Defiance, Az. 86504 Project Office Fruitland, N.M. 87416 PREPARED STATEMENT OF ROY J. CLEVELAND, EXECUTIVE DIRECTOR The Navajo Housing Authority (NHA) was chartered by the Navajo Tribal Council in 1963 as an agency of the Navajo Tribe of Indians. The specific purpose was to enable the Navajo Tribe to participate in low-income Reservations. It was determined in 1963 that there was an immediate need for 10,000 dwelling units on the Navajo Reservation alone. This was not surprising since the Navajo Reservation contains 25,000 square miles, approximately the size of the State of West Virginia, with a present population in excess of 155,000 per |