| a. | Review. In addition to an appraisal and an analysis of environmental issues, all new construction must be reviewed to ensure sufficiency of water and sewer access. This analysis may be undertaken by the IHS or by a local health authority for the reservation that is authorized to perform this function. On fee simple land, this review may be conducted by the local government. |
Information on the IHS may be obtained from the tribe. The tribe must approve the IHS application and send the application to IHS for review. IHS will schedule the review and submit a report to BIA and to the owner. BIA will work with IHS to ensure that this review is completed. BIA will not sign a leasehold document until any needed water and sewer review is complete.
| b. | Eligible items. Within the LTV limits and the borrower’s ability to pay, the Section 184 mortgage may include any on-site infrastructure needed to support the rehabilitated or newly constructed unit. |
| c. | Off-Site infrastructure improvements. New Construction Project Development. If a tribe or IHA/TDHE incurs specific costs to develop the off-site infrastructure of a project development, Section 184 will allow the lesserof: (a) the actual pro-rata portion of those costs to be included in the cost of the individual home or (b) up to 10% of the cost to construct the subject house. |
Documentation must be provided (i.e., canceled checks, paid contracts) to clearly establish what the total cost of the development is and documentation as to the total number of homes within the development. Any costs included will be limited by the appraised value and loan limits for the area.
If the Indian Health Service or other agency provides the infrastructure at no cost to the tribe or IHA/TDHE, this amount cannot be included in the cost to be reimbursed to the tribe or IHA/TDHE.
