U.S. Department of Housing and Urban Development
Public and Indian Housing
Special Attention of: Notice PIH 96-26 (HUD)
ONAP Administrators; Facilities Planning Issued: May 15, 1996
& Development Directors; Facilities Expires: May 31, 1997
Management Directors; and
Indian Housing Authorities (IHAs) Cross Reference: 24 CFR Part 950
Subject: Policies and Procedures on Maximum Allowable Total Development Cost
(TDC) for the HUD-assisted Indian Housing Program
1. Purpose: This Notice provides policies and procedures on the maximum
allowable Total Development Cost (TDC) for the HUD-assisted Indian
Housing (IH) Program. The imposition and determination of the maximum
TDC of a project is required by Section 6(b) of the U.S. Housing Act of
1937, as amended. A schedule of per unit maximum allowable TDCs for
Indian TDC Areas is included.
2. Background: The maximum allowable TDC ensures that adequate funds for
decent, safe, sanitary, durable, cost effective, energy efficient, and
culturally relevant housing will be provided for IH development
projects. The statutory maximum allowable TDC represents an upper limit
to be used by Area Offices of Native American Programs [herein after
called area offices] in the funding of IH developments and the review of
development budgets. All costs, excluding off-site water and sanitation
facilities infrastructure and any donations received, excluding other
HUD funds and Mutual Help Contributions, are considered in determining
the maximum allowable TDC of an IH development.
The maximum allowable TDC for a development is calculated by multiplying
the number of units for each bedroom size and structure type in the
development by the applicable per unit maximum allowable TDC for bedroom
size and structure type published herein and adding the resultant
amounts for all units in the development.
3. Applicability: All IH developments without an approved Actual
Development Cost Certificate shall be covered by the provisions of this
Notice.
4. Development Grant Approval: The area office shall reserve finds for
initial Development Grant Approval at the maximum allowable TDC for that
IH development. The area office may reserve below maximum allowable TDC
for special circumstances; such as, but not limited to:
a. The area office has insufficient finds to reserve at maximum
allowable TDC.
PI: Distribution: W-3-1, R-3-1(PIH), R-9, 138-7
b. The estimated cost per unit is significantly below maximum
allowable TDC.
5. Cost Review for IH Developments: The staff person assigned IH cost
responsibilities shall review the Development Grant Approval and all
development budgets for compliance with the published maximum allowable
TDC. A record of the review shall be kept on file at the area office.
6. IHA Responsibilities: The IHA is responsible for ensuring that the
housing design(s) for each IH development meets the building codes
adopted by the tribal or local government and the cost of the units to
HUD will not exceed the maximum allowable TDC or funds reserved.
7. Maximum Allowable TDC Area and Maximum Allowable TDC:
a. The maximum allowable TDC Area is the geographic area associated
with the published maximum allowable TDC figures. The area office
determines the maximum allowable TDC Areas within its jurisdiction.
Each maximum allowable TDC Area published herein specifies:
1) a geographical area with a defined boundary;
2) a type of structure;
3) a specific number of bedrooms included in the design; and
4) a dollar amount expressed as a maximum allowable TDC per unit.
b. The maximum allowable TDCs are determined by the Secretary pursuant
to Section 6(b) of the U.S. Housing Act of 1937, as amended, which
requires the construction cost guideline for the project (which
shall be determined by averaging the current construction costs, as
listed by not less than 2 nationally recognized residential
construction cost indices, for publicly bid construction of a good
and sound quality) to be multiplied by 1.75 for non-elevator type
structures.
c. The schedule of per unit maximum allowable TDC's included in this
notice are for single family dwellings (1-4 family structures). For
multifamily structures (more than 4 family), the area office shall
request maximum allowable TDCs from the Headquarters Office of
Native American Programs on a case by case basis.
8. Creation of New IH TDC Areas: Area offices should annually assess the
adequacy of the maximum allowable TDC Areas that currently exist within
its jurisdiction. The TDC Area should be a single contiguous physical
area with a clearly identified boundary line. The area and boundary line
should be indicated on a current state road map and maintained on file
in the area office. TDC Areas should have a relatively consistent
construction bidding environment and should be mutually exclusive in a
geographic sense. The area office may recommend to ONAP Headquarters the
addition or modification of a TDC Area for publication.
9. Exceeding Published Maximum Allowable TDCs:
a. The TDCs may be exceeded by up to 10% of the published maximum
allowable TDC for special situations; such as, but not limited to:
1) An increase in cost due to relocation costs as required by
other regulations or laws.
2) An increase in cost due to on-site solid waste start-up costs
necessary to access existing solid waste removal services.
3) An increase in cost due to the use of energy efficient housing
design(s).
4) An increase in cost due to the use of culturally relevant
design(s).
The area office Administrator may approve TDCs up to 110% of the
published maximum allowable TDC for special situations.
b. The TDCs may exceed 110% of the published maximum allowable TDC for
good cause; such as, but not limited to:
1) An increase in costs due to unforeseen site improvement costs
(on-site only, not including any cost related to roads or
driveways.)
2) Cost increases due to project delays beyond the control of the
IHA.
Each request to exceed 110% of the published maximum allowable TDC
for an IH development shall be submitted to the Deputy Assistant
Secretary for Native American Programs for approval. The requests
must specify the "good cause" with appropriate documentation
supporting the recommended action.
c. The area office shall maintain on file a copy of the justification
and supporting documentation for each request to exceed maximum
allowable TDC and the subsequent approval or disapproval.
d. Any request to exceed the published maximum allowable TDC for an IH
development is subject to fund availability.
10. Time Adjustments: Data used for the calculation of maximum allowable
TDCs will be adjusted for time to coincide with the publication of
maximum allowable TDCs. No adjustments to the published maximum
allowable TDCs herein are authorized.
Kevin Emanuel Marchman, Deputy Assistant Secretary
for Distressed and Troubled Housing Recovery
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom
EASTERN/WOODLANDS
Alabama State Ala $70,352 $76,633 $89,765 $107,531 $121,229
Mowa Band of Choctaw Ala $73,630 $80,210 $94,021 $112,724 $127,128
Poarch Band of Creek Ala $73,008 $79,534 $93,245 $111,821 $126,121
Mashantucket W. Pequot Conn $110,550 $120,526 $131,796 $157,553 $177,359
Mohegan of CT Conn $110,550 $120,526 $131,796 $157,553 $177,359
Paucatuck E. Pequot Conn $110,550 $120,526 $131,796 $157,553 $177,359
Schaghticoke Conn $111,868 $121,958 $133,293 $159,233 $179,201
Eastern Muskogee Fla $69,146 $75,313 $88,164 $105,531 $118,937
Seminole, Tampa Fla $75,186 $81,901 $95,958 $114,983 $129,646
Seminole (Big Cyprus) Fla $78,405 $85,391 $99,893 $119,470 $134,599
Seminole (Brighton) Fla $78,405 $85,391 $99,893 $119,470 $134,599
Lower Muskogee Ga $67,035 $73,022 $85,560 $102,530 $115,607
Pokagon Potawatomi Ind $104,111 $113,527 $124,440 $149,226 $168,198
Schedule Page 1
All TDCs listed are for detached dwellings (one-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom
Sac & Fox Iowa $92,090 $100,424 $110,148 $132,199 $149,057
Aroostook Band of Me $91,684 $99,965 $109,423 $130,982 $147,528
MicMac
Houlton Maliseet Me $91,684 $99,965 $109,423 $130,982 $147,528
Indian Township Me $94,752 $103,317 $113,173 $135,599 $152,786
Penobscot Me $94,752 $103,317 $113,173 $135,599 $152,786
Pleasant Point Me $94,752 $103,317 $113,173 $135,599 $152,786
Mashpee Wampanoag Mass $109,889 $119,815 $131,158 $157,01 1 $176,849
Nipmuc Mass $109,380 $119,251 $130,404 $155,894 $175,493
Wampanoag (Gay Head)Mass $136,813 $149,170 $163,278 $195,439 $220,123
Bay Mills Mich $87,546 $95,457 $104,537 $125,210 $141,062
Grand Traverse Mich $88,414 $96,405 $105,598 $126,516 $142,549
Hannahville Mich $91,637 $99,913 $109,348 $130,862 $147,379
Huron Potawatomi Mich $94,880 $103,458 $113,367 $135,892 $153,143
Schedule Page 2
All TDCs listed are for detached dwellings (one-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom
Keweenaw Bay Mich $91,179 $99,420 $108,901 $130,475 $147,009
Lac Vieux Desert Mich $91,179 $99,420 $108,901 $130,475 $147,009
Little River Mich $88,414 $96,405 $105,598 $126,516 $142,549
Little Traverse Mich $88,414 $96,405 $105,598 $126,516 $142,549
Manistique Mich $89,443 $97,524 $106,780 $127,863 $144,035
Pokagon Potawatomi Mich $94,880 $103,458 $113,367 $135,892 $153,143
Saginaw Chippewa Mich $93,442 $101,885 $111,572 $133,627 $150,540
Sault Ste. Marie Mich $91,637 $99,913 $109,348 $130,862 $147,379
(Escanaba)
Sault Ste. Marie Mich $91,179 $99,420 $108,901 $130,475 $147,009
(Marquette)
Sault Ste. Marie Mich $87,546 $95,457 $104,537 $125,210 $141,062
(Sault Ste. Marie)
Boise Forte Minn $102,400 $111,651 $122,235 $146,349 $164,850
Fond du Lac Minn $104,136 $113,547 $124,356 $148,961 $167,825
Grand Portage Minn $104,136 $113,547 $124,356 $148,961 $167,825
Leech Lake Minn $99,108 $108,066 $118,383 $141,850 $159,834
Schedule Page 3
AlI TDCs listed are for detached dwellings (one-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom
Mille Lacs Minn $101,371 $110,532 $121,053 $145,002 $163,364
Minnesota Dakota Minn $92,022 $100,348 $110,046 $132,046 $148,870
(Lower Soo)
Minnesota Dakota Minn $107,199 $116,884 $127,985 $153,266 $172,656
(Prairie Island)
Red Lake Minn $99,108 $108,066 $118,383 $141,850 $159,834
White Earth Minn $90,788 $99,002 $108,557 $130,240 $146,826
Mississippi Band Miss $64,914 $70,717 $82,922 $99,459 $112,187
of Choctaw
Cayuga NY $109,009 $118,862 $130,197 $155,990 $175,758
Oneida NY $98,773 $107,702 $117,992 $141,396 $159,329
Seneca NY $109,009 $118,862 $130,197 $155,990 $175,758
St. Regis NY $98,924 $107,854 $117,986 $141,119 $158,894
Cherokee NC $70,799 $77,123 $90,372 $108,305 $122,123
NC State NC $73,221 $79,752 $93,363 $111,758 $125,956
Narragansett RI $112,307 $122,437 $133,828 $159,893 $179,953
Schedule Page 4
All TDCs listed are for detached dwellings (on-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom
Catawba SC $69,000 $75,171 $88,156 $105,755 $119,297
Bad River Wisc $95,816 $104,482 $114,530 $137,351 $154,817
Forrest County Wisc $94,080 $102,586 $112,409 $134,739 $151,842
Ho-Chunk Wisc $94,948 $103,534 $113,470 $136,045 $153,330
Lac Courte Oreilles Wisc $95,816 $104,482 $114,530 $137,351 $154,817
Lac du FIambeau Wisc $94,080 $102,586 $112,409 $134,739 $151,842
Menominee Wisc $94,446 $102,984 $112,837 $135,239 $152,400
Mohican Wisc $94,080 $102,586 $112,409 $134,739 $151,842
Oneida Wisc $93,578 $102,036 $111,776 $133,933 $150,913
Red Cliff Wisc $95,816 $104,482 $114,530 $137,351 $154,817
Saint Croix Wisc $95,816 $104,482 $114,530 $137,351 $154,817
Sokoagon Wisc $94,080 $102,586 $112,409 $134,739 $151,842
Schedule Page 5
All TDCs listed are for detached dwellings (one-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom SOUTHERN PLAINS
Northeast Kan $73,713 $80,303 $94,150 $112,910 $127,351
Kickipoo, et al
Chitimacha La $67,596 $73,639 $86,337 $103,538 $116,780
Ardmore Okla $67,650 $73,689 $86,305 $103,370 $116,531
Chicasaw
BartlesviIle Okla $68,090 $74,171 $86,902 $104,132 $117,411
Osage
Enid Okla $67,339 $73,350 $85,918 $102,919 $116,027
Otoe MS, Ponka, Kaw, Tonawa,
Cheyenne Arapaho
Lawton Okla $68,273 $74,365 $87,081 $104,274 $117,538
Caddo, Comanche, Kiowa, Apache
McAlester Okla $68,906 $75,064 $87,991 $105,500 $118,983
Choctaw
Muskogee Okla $69,217 $75,402 $88,379 $105,952 $119,486
Cherokee, Creek
Shawnee Okla $71,030 $77,381 $90,736 $108,831 $122,758
Schedule Page 6
All TDCs listed are for detached dwellings (on-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom
Absentee, Shawnee, Sac & Fox,
Seminole
Stillwater Okla $67,339 $73,350 $85,918 $102,919 $116,027
Pawnee
Eagle Pass Texas $70,215 $76,488 $89,646 $107,462 $121,185
Kickapoo
Houston Texas $73,456 $80,014 $93,731 $112,290 $126,598
Alabama Coshata
Schedule Page 7
AlI TDCs listed are for detached dwellings (one-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT
Indian One Two Three Four Five
TDC Area State Bedroom Bedroom Bedroom Bedroom Bedroom NORTHERN PLAINS
Southern Ute Colo $88,618 $96,632 $105,905 $126,975 $143,108
Ute Mountain Ute Colo $88,618 $96,632 $105,905 $126,975 $143,108
Blackfeet Mont $91,774 $100,065 $109,552 $131,168 $147,752
Chippewa Cree Mont $91,774 $100,065 $109,552 $131,168 $147,752
Crow Tribal Mont $92,276 $100,614 $110,185 $131,974 $148,682
Fort Belknap Mont $91,774 $100,065 $109,552 $131,168 $147,752
Fort Peck Mont $92,642 $101,013 $110,613 $132,474 $149,239
Northern Cheyenne Mont $92,276 $100,614 $110,185 $131,974 $148,682
Sash & Kootenai Mont $91,042 $99,268 $108,696 $130,169 $146,637
Omaha Tribal Neb $87,955 $95,911 $105,151 $126,128 $142,179
Ponca Neb $87,955 $95,911 $105,151 $126,128 $142,179
Santee Sioux Neb $85,487 $93,219 $102,174 $122,517 $138,090
Winnebago Neb $87,955 $95,911 $105,151 $126,128 $142,179
Schedule Page 8
All TDCs listed are for detached dwellings (one-four family dwellings). For
other structure types, e.g., walkup, elevator, etc., contact the Area ONAP
Office.
SCHEDULE OF MAXIMUM ALLOWABLE TDC PER UNIT