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CED-81-139 1 (1981-07-02)

handle is hein.gao/gaobabccx0001 and id is 1 raw text is: 

                     UNITED STArES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548

                                          July 2, 1981
COMMUNITY AND ECOP40MIC
DEVELOPMENT DIVISION

      B-203827

      The Honorable James A. McClure
      Chairman, Subcommittee on Interior
        and Related Agencies                              115744
      Committee on Appropriations
      United States Senate

      Dear Mr. Chairman:

           Subject: Review of the. Navajo and Hopi Indian Relocation
                     Commission's Program (CED-81-139)

           In accordance with your March 4, 1981, request and subsequent
      agreements with your office, we have reviewed the Navajo and Hopi
      Indian Relocation Commission's relocation benefits, policies, and
      procedures.

           On June 9, 1981, we briefed your office on the results of our
      review. This letter summarizes the information provided to you at
      that time.

           --The Commission is regularly compensating relocation house-
             holds at the maximum amounts authorized by law (currently
             $66,000 for households of four persons or more and $44,800
             for households of three or less). Additional compensation
             is also paid by the Commission for dwellings and improve-
             ments (such as barns, corrals, fences, and orchards) owned
             by relocation households on the reservation.

           --The original replacement home benefit amounts of $17,000
             and $25,000 have been adjusted by the Commission, as auth-
             orized by law, for inflation on five separate occasions.
             The Commission's adjustment methodology has varied because
             (i) the previous inflation factor was abandoned by the
             Commission during the third annual adjustment in favor of
             a higher inflation index, (2) the Department of Housing and
             Urban Development's (HUD's) prototype cost areas used by
             the Commission have changed four times in the five adjust-
             ments, and (3) a completely revised adjustment methodology
             was adopted by the Commission for the fourth annual
             increase.

           --Of the 72 families that occupied a reservation homesite
             and were relocated as of December 31, 1980, 51 families,
             or 71 percent, have moved off-reservation. off-reservation
             relocations may increase total program replacement housing
             costs by about $23,207,000.


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