Opinion ID: 172239
Heading Depth: 4
Heading Rank: 3

Heading: HUD's consideration of the Cherokee Nation's Challenge

Text: Under 24 C.F.R. § 1000.336(a), An Indian tribe ... may challenge data used in the IHBG formula. Because the regulations do not provide explicitly for a third party to challenge a tribe's IHBG funding, the UKB contends HUD acted arbitrarily and capriciously by acting on the Cherokee Nation's letter that requested a review of the formula area for other tribes in the Cherokee Nation's jurisdictional area. The majority expresses grave concerns that HUD permitted the Cherokee Nation to appeal absent an explicit regulation. Maj. Op. at 1246. I do not share these concerns. HUD considered the Cherokee Nation's letter to be a challenge under 24 C.F.R. § 1000.336. Aplt. App'x at 25. As before, I would give substantial deference to HUD's interpretation of its own regulations. Although the regulation does not reference explicitly the ability of one tribe to challenge the existence of another tribe's formula area, this omission is similar to the absence of a formula area factor in the need formula in 24 C.F.R. § 1000.324. Just as the identification of the number of relevant households must necessarily be bound by a geographic boundary, census data relevant to those same households under the same need formula must also be confined by a geographic boundary. Despite the majority's view that this certainly was not a challenge to census data, Maj. Op. at 1246, I would consider a challenge to the location or existence of such boundaries as a challenge to the number of people within those boundaries. In this regard, the Cherokee Nation's letter challenged data used in the IHBG formula. Accordingly, I would defer to HUD's application of 24 C.F.R. § 1000.336. Relatedly, the UKB challenges HUD's consideration of the Cherokee Nation's appeal of HUD's decision that the UKB satisfied the formula area requirement. The letter notifying the Cherokee Nation of this decision stated, In accordance with 24 C.F.R. § 1000.336(b)(1) and 1000.118, you have the right to appeal this decision. Aplt. App'x at 173. Section 1000.336(b)(1) provides in pertinent part: In the event HUD challenges the validity of the submitted data, the Indian tribe ... and HUD shall attempt in good faith to resolve any discrepancies so that such data may be included in formula allocation. Should the Indian tribe ... and HUD be unable to resolve any discrepancy by the date of formula allocation, the dispute shall be carried forward to the next funding year and resolved in accordance with the dispute resolution procedures set forth in this part for model housing activities (§ 1000.118). Section 1000.118 provides in pertinent part: (a) Within thirty calendar days of receiving HUD's denial of a proposal to provide assistance to non low-income Indian families or a model housing activity, the recipient may request reconsideration of the denial in writing. The request shall set forth justification for the reconsideration. The UKB contends that neither of these sections provides for third party appeals. Aplt. Br. at 22. Moreover, the UKB asserts that the Cherokee Nation did not file its appeal within the required thirty days. I would reject both arguments. HUD instructed the Cherokee Nation of its right to appeal under the cited regulations. Having concluded that HUD appropriately considered the Cherokee Nation's letter as a challenge under § 1000.336, it would be illogical to conclude that the Cherokee Nation could not appeal an adverse determination under the same regulation. Further, I note that no relevant language in § 1000.336 limits who may bring a challenge or appeal beyond An Indian tribe. 24 C.F.R. § 1000.336(a), (b)(1). This regulation does not exclude third-party appeals or challenges by an Indian tribe, such as the Cherokee Nation. Regarding the thirty-day limit, HUD sent a letter notifying the Cherokee Nation of its right to appeal on October 18, 2005. Aplt. App'x at 172. The Cherokee Nation filed its appeal on November 16, 2005. Id. at 174. Consequently, I would conclude that the Cherokee Nation appealed [w]ithin thirty calendar days of receiving HUD's denial, satisfying 24 C.F.R. § 1000.118(a).