Opinion ID: 1036880
Heading Depth: 3
Heading Rank: 5

Heading: Final HUD Resolution

Text: On September 30, 2010, Fort Belknap sent HUD information about its FCAS inventory. Specifically, the letter identified units in various Projects which had been paid off or conveyed. In addition to the seven Projects from the 2001 letter for which HUD had requested information in the 2007 letter, Fort Belknap included information on Projects MT10B010010 (challenged as part of the 2005 letter), MT10B010013 (challenged as part of the 2007 letter), and several Projects for which there was no previous challenge. The letter listed the DOFAs and conveyance dates for units in these Projects. Some of the information contradicted Fort Belknap’s responses to the 2001 letter. Fort Belknap acknowledged that the information might require changes to previous years’ grant allocation amounts and “formally request[ed] the opportunity to discuss [any such] findings and, if collection of any sum is proposed, to negotiate that action.” After Fort Belknap satisfied HUD’s requests for clarification, HUD wrote, in a letter sent on December 6, 2010 (“the 2010 letter”), that Fort Belknap had been overpaid $2,858,786 between 2000 and 2010. HUD explained that it would recover amounts associated with units challenged in 10 FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS. the 2001 letter for each fiscal year since 2000, units challenged in the 2005 letter for each fiscal year since 2003, units challenged in the 2007 letter for each fiscal year since 2006, and all other units for each fiscal year since 2009. Fort Belknap filed an administrative appeal of HUD’s decision addressed to HUD’s Deputy Assistant Secretary for Native American Programs and argued that: (1) HUD’s reductions exceeded the maximum reduction permitted by 24 C.F.R. § 1000.340(b),9 and (2) HUD’s action was not timely with respect to fiscal years 2000 through 2007, because it had not “taken action against” Fort Belknap within three years as required by 24 C.F.R. § 1000.319(d).10 HUD denied Fort Belknap’s appeal because (1) when the correct amounts of Fort Belknap’s grants were used, HUD’s reductions were within the permissible range established by 24 C.F.R. § 1000.340(b), and (2) HUD took action for purposes of 24 C.F.R. § 1000.319(d) when it sent the 2001 letter, the 2005 letter, and the 2007 letter. Fort Belknap sought reconsideration of this denial before the Deputy Assistant Secretary based on its disagreement regarding 9 24 C.F.R. § 1000.340(b) provides: “If an Indian tribe is allocated less funding under the formula than an IHA received on its behalf in FY 1996 for operating subsidy and modernization, its grant is increased to the amount received in FY 1996 for operating subsidy and modernization. The remaining grants are adjusted to keep the allocation within available appropriations.” Fort Belknap argued that HUD’s reductions exceeded the maximum amount permitted under this regulation. 10 That regulation provides: “HUD shall have 3 years from the date a Formula Response Form is sent out to take action against any recipient that fails to correct or make appropriate changes on that Formula Response Form. Review of FCAS will be accomplished by HUD as a component of A–133 audits, routine monitoring, FCAS target monitoring, or other reviews.” 24 C.F.R. § 1000.319(d). FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS. 11 whether the 2001 letter, the 2005 letter, and the 2007 letter constituted “taking action” under 24 C.F.R. § 1000.319(d). In a letter dated October 4, 2011 (“the final action letter”), the Assistant Secretary denied the request for reconsideration because: The correct interpretation of § 1000.319(d) is that if HUD fails to question an FCAS count within 3 years of the Formula Response Form at issue, HUD is precluded from seeking repayment for overpayments resulting from the counts reported in that Formula Response Form. In other words, the 3-year limitation applies to the time period before the first action HUD takes and does not limit the time that HUD can collect a repayment after the issuance of the Form so long as HUD begins the process within three years. After HUD denied Fort Belknap’s request to waive the repayment requirement or alter the repayment schedule, Fort Belknap filed a petition for review with this court. It argues that this court has jurisdiction to review HUD’s actions pursuant to 25 U.S.C. § 4161(d) and that HUD’s actions were “arbitrary and capricious” and/or based on a misinterpretation of 24 C.F.R. §§ 1000.318, 1000.319.