EXHIBIT "G" - Adjusted Prototype in Dollar S.F.
Graph.

EXHIBIT "H" - Recommended Prototypes, Recently
Rejected Jobs, Prototype Cost Limits

Page

1

2

3

7

9

11

13

15

17

19

Trends Graph.

EXHIBIT "K" - Comparison National and Indian Housing

EXHIBIT "M" - Navajo Housing Schedule 1980 and

Recommended Prototype Cost .

EXHIBIT "N" - Comparison Marketable House

21

23

25

27

29

31

Department of Housing and Urban Development
Washington, D. C.

20410

Attention: Mr. Jack Van Ness

Gentlemen:

The Navajo Housing Authority was chartered by the Navajo
Tribe of Indians during the calendar year 1963 for the
specific purpose of obtaining funding through the Depart-
ment of Housing and Urban Development to provide housing
to low-income persons on the Navajo Nation. Subsequent
to the chartering of the Housing Authority, the Housing
Authority has been instrumental in constructing
approximately 2,300 dwelling units for low-income persons.
The Department of Housing and Urban Development is aware
of the critical need for housing on the Navajo Nation.
It has been stated that the Navajo Nation needs a minimum
of 1,000 new housing units annually for the next twelve
years to be able to provide decent, safe and sanitary
dwelling units for needy Navajo people.

The dwelling units heretofore constructed by the Navajo
Housing Authority for the most part were not structurally
sound. The Department of Housing and Urban Development is
aware of the problems with the construction; in fact, in
the "Comprehensive Consolidated Management Review Report
of the Navajo Housing Authority" prepared by the United
States Department of Housing, and Urban Development, Los
Angeles Area Office, dated December 17, 1971, the Depart-
ment of Housing and Urban Development specifically noted
the inferior quality of the units which had been-con-
structed, and authorized $12,470,000 and subsequently
funded a modernization program in the amount of $1,200,000
to rehabilitate the existing units to a degree whereby they

P.O. BOX 387

Window Rock, Arizona 86515

Phone: (602)871-4114

could be considered safe, decent and sanitary housing. Subsequent to that, the problem of the sub-standard housing has been noted in the "Staff Report on the Indian Housing Effort in the United States" prepared by Henry M. Jackson, Chairman, Committee on Interior and Insular Affairs, United States Senate, during the calendar year 1975.

The Comptroller-General made a report to the Congress of the United States on sub-standard Indian housing and noted that the sub-standard Indian housing was increasing dispite Federal efforts. This report was dated March 31, 1978. Again, the United States Senate Select Committee on Indian Affairs submitted a report on Indian housing in the calendar year 1979, citing the same sub-standard housing conditions. Mr. Joseph Burstein as Special Counsellor to the Secretary, submitted a report to Secretary Harris dated November 7, 1977 in which he specifically outlined the need for a change in the approach to Indian housing programs and recommended that a special analysis be made of the situation to identify the needs and determine the manner in which they should be addressed.

The Navajo Housing Authority has made a diligent effort to increase the quality of sub-standard Indian housing on the Navajo Nation. The experience of the Housing Authority is that one of the major reasons for the poor quality of Indian housing units is the fact that the maximum prototype cost is too low, which results in sub-standard housing. It has been demonstrated that if a new dwelling unit is properly constructed, the maintenance requirements are substantially reduced, the tenants will pay their rent and exhibit pride in their dwelling unit. Because the prototype cost limitations are low for the Navajo Nation, the Navajo Housing Authority has been unable to obtain construction starts in any of the more remote areas and only several of the more easily accessible areas.

The Navajo Housing Authority has considerable experience in trying to maintain sub-standard quality housing which was built to mere compliance with the Department of Housing and Urban Development's minimum property standards. That is why a minimum house is not acceptable. The initial cost of construction of the type of house the Housing Authority desires to build may be more than a minimum house, but perhaps less costly because of the decreased maintenance requirements and fewer tenant vacancies.

The Housing Authority, in conjunction with the architectural firms employed by the Authority, have conducted an extensive investigation into the reasons why they are unable to obtain contractors to build the dwelling units within the prototype cost limitations.

The Housing Authority has found that in order to obtain construction starts, the prototype costs should be increased a minimum of from 25% to 40%. It is doubtful whether even with this increase conventional housing construction could be obtained at small projects in remote areas. Following you will find a detailed analysis portrayed graphically which presents detailed supporting documentation to justify the substantial prototype cost increase for the Navajo Nation.

In conclusion, the Navajo Housing Authority respectfully requests the Department of Housing and Urban Development to review the statistical supporting data in this report and to effect substantial prototype cost increases, so the Housing Authority may proceed to construction of dwelling units on the Navajo Nation. The Housing Authority further requests that the Navajo Nation be divided into six prototype cost areas, rather than the one area which is now in use. This is necessary because of the size of the Reservation, approximately the size of the State of West Virginia, which means that certain areas are closer to the material and labor markets than others, which should be reflected in higher prototype cost limits for some areas, as opposed to others.

Very truly yours,

NAVAJO HOUSING AUTHORITY

Roy Cleveland

Executive Director

enclosure