Fort Belknap Housing Department v. Office of Public & Indian Housing , 726 F.3d 1099 ( 2013 )


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  •                 FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    FORT BELKNAP HOUSING                    No. 12-70221
    DEPARTMENT ; FORT BELKNAP
    INDIAN COMMUNITY COUNCIL; FORT
    BELKNAP INDIAN COMMUNITY ,
    Petitioners,        OPINION
    v.
    OFFICE OF PUBLIC AND INDIAN
    HOUSING ; U.S. DEPARTMENT OF
    HOUSING AND URBAN
    DEVELOPMENT ; UNITED STATES OF
    AMERICA ,
    Respondents.
    On Petition for Review of an Order of the
    Department of Housing and Urban Development
    Argued and Submitted
    March 7, 2013—Portland, Oregon
    Filed August 8, 2013
    Before: A. Wallace Tashima, Richard R. Clifton,
    and Carlos T. Bea, Circuit Judges.
    Opinion by Judge Bea
    2    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    SUMMARY*
    Housing / Tribal Affairs
    The panel dismissed a petition for review of a decision of
    the Department of Housing and Urban Development to
    withhold overpayments made to the Fort Belknap Housing
    Department under the federal rent-subsidy program for Indian
    Tribes and Tribal Designated Housing Entities.
    The panel held that because the Department of Housing
    and Urban Development had taken no “action” pursuant to
    
    25 U.S.C. § 4161
    (a), it lacked jurisdiction to entertain the
    appeal. The panel held it lacked jurisdiction because HUD
    neither alleged nor found that Fort Belknap failed to comply
    substantially with the provisions of the Native American
    Housing Assistance and Self Determination Act of 1996; and
    because HUD did not impose the remedies listed in 
    25 U.S.C. § 4161
    (a)(1). The panel dismissed Fort Belknap’s petition
    without reaching the merits.
    COUNSEL
    James L. Vogel (argued), Hardin, Montana, for Petitioners.
    Stuart F. Delery (argued), Acting Assistant Attorney General,
    Michael S. Raab, and Jonathan H. Levy, Attorneys, Civil
    Division, United States Department of Justice, Washington,
    D.C., for Respondents.
    *
    This summary constitutes no part of the opinion of the court. It has
    been prepared by court staff for the convenience of the reader.
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.        3
    OPINION
    BEA, Circuit Judge:
    Overview
    This case involves a federal rent-subsidy program for
    Indian Tribes and Tribally Designated Housing Entities
    (“TDHE”) that lease housing to Indians. The program
    provides per-unit payments while the Tribe or TDHE is
    leasing housing units to Indians, with a view that each unit
    eventually be conveyed to the Indian lessees. When the Tribe
    or TDHE conveys a unit, or a unit becomes eligible to be
    conveyed, unless such a conveyance is impractical, the Tribe
    should no longer receive rent subsidy money for the unit.
    What happened here? The Fort Belknap Housing
    Department (“Fort Belknap”), a TDHE which received funds
    through the program, claimed and received rent subsidy
    payments for units that were no longer leased, but had been
    conveyed, and for units that were eligible to be conveyed.
    There were no circumstances which made the conveyance of
    such units impractical. After investigation, the Department
    of Housing and Urban Development (“HUD”) demanded the
    return of the overpayments it had made.
    Fort Belknap petitions this court for review of HUD’s
    decision to withhold the amount of overpayments from future
    program payments. Fort Belknap argues this court has
    jurisdiction pursuant to 
    25 U.S.C. § 4161
    (d). On the merits,
    it claims HUD’s actions in procuring repayment of the
    overpayments were “arbitrary and capricious” and based on
    a misinterpretation of various regulations. Section 4161(d),
    however, allows an appeal only when HUD takes action
    4           FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    pursuant to § 4161(a). Because HUD has taken no action
    pursuant to § 4161(a), we lack jurisdiction to entertain this
    appeal and dismiss Fort Belknap’s petition without reaching
    the merits.
    I. Facts
    A. Statutory and Regulatory Framework
    Fort Belknap operates as a TDHE in Harlem, Montana,
    for the Gros Ventre and Assiniboine Tribes of the Fort
    Belknap Indian Reservation. Fort Belknap is eligible to
    receive funds under the Native American Housing Assistance
    and Self Determination Act of 1996 (“NAHASDA” or “the
    Act”), 
    25 U.S.C. §§ 4101
    –4212. The Act created the Indian
    Housing Block Grant Program (“IHBG Program”), the
    current mechanism for disbursing funds to eligible
    beneficiaries.   The Secretary of HUD1 carries out
    NAHASDA’s provisions, see 
    id.
     § 4102, and allocates the
    funds Congress appropriates to implement the Act, see id.
    § 4152.
    The IHBG Program utilizes a formula “to allocate
    equitably and fairly funds made available through
    NAHASDA among eligible Indian tribes.” 
    24 C.F.R. § 1000.301
    , subpart D.2 This formula consists of two parts:
    1
    The Office of Public and Indian Housing (“PIH”), a division of HUD,
    oversees allocations under the IHBG Program. PIH will be referred to as
    “HUD” throughout this opinion.
    2
    Congress appropriates a lump amount each year to be distributed
    among tribes/TDHEs. See 
    25 U.S.C. § 4151
    . Because the total amount
    of money available to all tribes is fixed, the IBHG Program is a zero-sum
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.                   5
    “(a) Formula Current Assisted Housing Stock (‘FCAS’); and
    (b) Need.” 
    24 C.F.R. § 1000.310
    . The FCAS component,
    which is at issue in this case, reflects the number of low-
    income housing units owned or operated by the Tribe/TDHE,
    multiplied by a fixed subsidy amount. See 
    24 C.F.R. § 1000.316
    . As relevant here, certain lease-to-own units
    (designated “Mutual Help” or “MH” units) are included in the
    FCAS calculation until (1) they have been conveyed by the
    Tribe/TDHE (i.e. transferred permanently to the lessees-
    turned-owners), or (2) they are eligible to be conveyed (i.e.
    have reached their Date of Full Availability” (“DOFA”)),
    unless the Tribe/TDHE proves that, for reasons beyond its
    control, conveyance is impractical.         See 
    24 C.F.R. § 1000.318
    .
    To ensure the accuracy of each year’s FCAS calculation,
    HUD sends all eligible tribes/TDHEs a “Formula Response
    Form” and requires them to report any changes to their
    previously reported inventory of housing eligible for the
    IHBG Program. See 
    24 C.F.R. § 1000.302
     (defining
    “Formula Response Form”); 
    id.
     § 1000.315(a) (“A recipient
    shall report changes to information related to the IHBG
    formula on the Formula Response Form, including
    corrections to the number of Formula Current Assisted Stock
    (FCAS), during the time period required by HUD.”). HUD
    uses the information gathered from these Formula Response
    Forms to calculate each tribe’s/TDHE’s grant allocation. See
    
    24 C.F.R. §§ 1000.312
    , 1000.314.
    game: Any change in one tribe’s allocation requires an offsetting change
    to other tribes’ allocations.
    6           FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    B. The 2001 Letter
    On August 1, 2001, HUD sent Fort Belknap a letter (“the
    2001 letter”) and stated that Fort Belknap “may have
    incorrectly received credit in . . . 1998, 1999, 2000, and 2001
    for 171 . . . [MH] units under the [FCAS] . . . component of
    the [IHBG] . . . formula.” In the letter, HUD notified Fort
    Belknap that it “believe[d] [these 171 MH] Projects ha[d]
    been conveyed or were eligible for conveyance prior to
    October 1, 1997.” The letter stated that, if Fort Belknap
    received funds for ineligible units,3 HUD would recover those
    funds. It also invited Fort Belknap to “provide information
    regarding the status of [the disputed] units to show that they
    should be counted as FCAS.”
    In response to the 2001 letter, Fort Belknap claimed
    several of the disputed units should remain in FCAS because
    they were occupied by “subsequent homebuyers” with new
    Mutual Help and Occupancy Agreements (“MHOA”) and
    different DOFAs than HUD had on record.4 HUD later
    agreed that these “units should be counted as FCAS, provided
    that the term of the MHOA has not expired and that the
    Tribe/TDHE continue[s] to operate, maintain and collect
    payments from the homebuyer for the units.” HUD stated
    that it would “continue to include units with subsequent
    3
    HUD challenged MH units in the following nine Projects:
    MT10B010001, MT10B010002, MT10B010003, MT10B010004,
    MT10B010006, MT10B010007, MT10B010008, MT91B010028, and
    MT91B010029.
    4
    A “subsequent homebuyer” is one who occupies a unit after the initial
    homebuyer has vacated without obtaining ownership under his lease-to-
    own agreement. Such an individual enters a new MHOA with the Tribe
    and, as such, has a different DOFA than that of the initial homebuyer.
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.                7
    homebuyers and/or DOFAs that continue to be within the 25-
    year term of the MHOA.”
    However, HUD excluded those units for which Fort
    Belknap offered no explanation from the FCAS calculations
    for fiscal years 1998, 1999, 2000, and 2001 and found that
    Fort Belknap had been overpaid by $330,524 during that
    period. By November 26, 2002, HUD and Fort Belknap had
    agreed that this amount would be repaid in roughly equal
    amounts over a five-year period.5
    C. The 2005 Letter
    On March 2, 2005, HUD sent Fort Belknap a letter (“the
    2005 letter”) very similar to the 2001 letter. Again, HUD
    challenged the eligibility for payment of designated units,6
    again relying on 
    24 C.F.R. § 1000.318
    (a). This time,
    however, HUD asked for specific information with respect to
    the disputed units. In particular, HUD asked Fort Belknap to
    provide “(1) [t]he date each unit became conveyance
    eligible[, and] (2) [t]he date each unit conveyed.” It
    continued: “If units have not conveyed, please provide an
    explanation for the delay.          If there are subsequent
    homebuyers, please provide a list of subsequent homebuyers,
    the date the new MHOA was signed and the term of the new
    MHOA.” HUD asked Fort Belknap to provide this
    information within 30 days. When Fort Belknap failed to
    respond within the initial 30-day period, HUD sent a follow-
    up letter and warned that it would assume Fort Belknap
    5
    Specifically, Fort Belknap agreed that HUD should deduct $66,104.80
    from Fort Belknap’s grant allocation for five years beginning in 2003.
    6
    HUD challenged units in Project MT10B010010.
    8           FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    agreed it had been over-funded unless it received a response
    within a second 30-day period. When Fort Belknap again
    failed to respond, HUD sent a another letter, stated that it
    assumed Fort Belknap agreed with the substance of the 2005
    letter, and subtracted $249,561 from Fort Belknap’s 2006
    allocation to recover the overpayment.
    D. The 2007 Letter
    On September 4, 2007, HUD sent Fort Belknap another
    letter (“the 2007 letter”) which again challenged the
    eligibility of designated MH units based on 
    24 C.F.R. § 1000.318
    (a).7 HUD asked for specific information with
    respect to these units (“the first inquiry”). HUD also stated
    that it had reviewed its files associated with the 2001 letter
    and realized it lacked certain information. In particular, for
    93 of the MH units in 7 of the Projects8 challenged in the
    2001 letter, HUD requested (1) a list of subsequent
    homebuyers by unit number, (2) the date the new MHOA was
    signed, and (3) the term of the new MHOA (“the second
    inquiry”). HUD requested that Fort Belknap respond with
    respect to both inquiries within 30 days. When Fort Belknap
    failed to do so, HUD sent a follow-up letter, warned Fort
    Belknap that a failure to respond to the first inquiry would be
    taken as an agreement it had been over-funded, and reiterated
    the substance of the second inquiry for Projects challenged in
    the 2001 letter. Fort Belknap requested an extension, and
    7
    HUD challenged MH units in the following three Projects:
    MT10B010011, MT10B010013, and MT10B0017.
    8
    HUD requested information with respect to the following seven
    P r o je c ts : M T 1 0 B 0 1 0 0 0 1 , M T 1 0 B 0 1 0 0 0 2 , M T 1 0 B 0 1 0 0 0 3 ,
    MT10B010004, MT10B010006, MT10B010007, MT10B010008.
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.            9
    when HUD granted Fort Belknap’s request for an extension
    to respond to the first inquiry, it again repeated the substance
    of the second inquiry. Finally, when Fort Belknap failed to
    respond to the first inquiry before the deadline, HUD sent a
    fourth letter, stated its assumption that Fort Belknap agreed
    it had been overpaid in the amount of $310,330, proposed a
    repayment schedule, and repeated the substance of the second
    inquiry for a third time.
    E. Final HUD Resolution
    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.
    II. Analysis
    Before this court may reach the merits of Fort Belknap’s
    petition, it must determine whether it has jurisdiction. See,
    e.g., In re Corrinet, 
    645 F.3d 1141
    , 1143 (9th Cir. 2011) (“As
    we must, we first consider whether we have jurisdiction to
    hear [the] appeal.”). Fort Belknap argues that the court has
    12 FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    jurisdiction pursuant to 
    25 U.S.C. § 4161
    (d). This statute
    provides that “[a]ny recipient who receives notice under
    subsection (a) . . . of the termination, reduction, or limitation
    of payments under this chapter” may file a petition for review
    of the Secretary’s action “with the United States Court of
    Appeals for the circuit in which such State is located, or in
    the United States Court of Appeals for the District of
    Columbia.” 
    25 U.S.C. § 4161
    (d)(1)(A). As relevant here,
    subsection (a) provides:
    [I]f the Secretary finds after reasonable notice
    and opportunity for hearing that a recipient of
    assistance under this chapter has failed to
    comply substantially with any provision of
    this chapter, the Secretary shall—
    (A) terminate payments under this chapter
    to the recipient;
    (B) reduce payments under this chapter to
    the recipient by an amount equal to the
    amount of such payments that were not
    expended in accordance with this chapter;
    (C) limit the availability of payments
    under this chapter to programs, projects,
    or activities not affected by such failure to
    comply; or
    (D) in the case of noncompliance
    described in section 4162(b) of this title,
    provide a replacement tribally designated
    housing entity for the recipient, under
    section 4162 of this title.
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS. 13
    
    25 U.S.C. § 4161
    (a)(1). In short, then, we have jurisdiction
    only where HUD (1) determines, after reasonable notice and
    an opportunity for hearing, that a recipient has failed to
    comply substantially with NAHASDA’s provisions, and (2)
    imposes one of the four statutorily required sanctions for such
    failure. See 
    id.
     As explained below, neither condition is met
    here. Accordingly, we lack jurisdiction over Fort Belknap’s
    petition and dismiss it without reaching the merits.
    A. This court lacks jurisdiction because HUD neither
    alleged nor found that Fort Belknap failed to comply
    substantially with the provisions of NAHASDA.
    This court has jurisdiction under § 4161(d) only where
    HUD finds “after reasonable notice and opportunity for
    hearing that a recipient of assistance . . . has failed to comply
    substantially” with some provision of NAHASDA. 
    25 U.S.C. § 4161
    (a)(1). Here, neither the final action letter nor any
    letter which preceded it alleged that Fort Belknap had failed
    to comply substantially with NAHASDA. In other words,
    HUD never provided “reasonable notice” of such a finding,
    as would be required under § 4161(a)(1). Similarly, HUD
    never found Fort Belknap to be in substantial noncompliance
    with NAHASDA’s provisions. Instead, it determined that
    Fort Belknap was overpaid because of its inaccurate FCAS
    counts and sought to recover those amounts. Though HUD
    determined that Fort Belknap failed to comply with
    NAHASDA by misreporting its FCAS counts, such
    misreporting is specifically excluded from the statutory
    definition of “substantial noncompliance” and cannot be the
    basis of jurisdiction in this court. Id. § 4161(a)(2) (providing
    that “[s]ubstantial noncompliance” excludes “the failure of a
    recipient to comply with the requirements . . . regarding the
    reporting of low-income dwelling units . . . in itself”).
    14 FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    HUD possesses the authority to recover the amounts of
    overpayment Fort Belknap received independent of its power
    to find substantial noncompliance under § 4161. See United
    States v. Mead, 
    426 F.2d 118
    , 125 (9th Cir. 1970). In Mead,
    this court held that, pursuant to the common law doctrine of
    payment by mistake, the Government is entitled to recover
    payments when it made those payments “under an erroneous
    belief which was material to the decision to pay.” 
    Id.
     There,
    via the Agricultural Conservation Program, the Government
    “assist[ed] farmers . . . in carrying out approved conservation
    practices” by “pay[ing] to or for each farmer the lesser of a
    fixed percentage of the cost price of dirt ditches or dams or a
    fixed price per unit of work performed.” 
    Id. at 120
    . Under
    the applicable regulations, contractors were to submit
    invoices with prices “based on [the] actual cost to the farmer
    measured in terms of cash, enforceable promises, materials
    and services rendered rather than the ‘true value’ of the
    completed project.” 
    Id. at 124
    . But, in Mead, the contractor
    had submitted invoices with “prices” which represented the
    projects’ true value, rather than their cost, and no farmer had
    paid an amount equal to “the fixed percentage of the claimed
    cost of the project which the farmer was to bear.” See 
    id. at 120
    . The Government asserted that it had paid the contractor
    based on the mistaken assumption “that it was sharing the
    cost of the conservation projects with the farmers rather than
    paying the entire cost (or substantially the entire cost).” 
    Id.
    The district court rejected this theory of recovery. 
    Id. at 121
    .
    This court reversed and held that “the government was
    mistaken in its payments to the extent that the payments
    exceeded the established percentage of the cost of each
    project; cost being measured by the value given by each
    farmer in cash, enforceable promises, services, equipment and
    materials.” 
    Id. at 124
    . Because the Government’s mistake
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS. 15
    “was material to the decision to pay, it [was] entitled to
    recover the payments.” 
    Id.
     On that basis, this court reversed
    and remanded so that the district court could “make findings
    on the issues of number and amount of payments made by
    mistake.” 
    Id.
    Like the Government in Mead, HUD can recover the
    amount of over payment to Fort Belknap pursuant to the
    doctrine of payment by mistake. It was not required to resort
    to § 4161 to recover those amounts, and it did not do so.
    HUD found that Fort Belknap had been overpaid because of
    HUD’s mistaken belief, based on the Formula Response
    Forms Fort Belknap submitted, that various MH units had not
    been conveyed and were not eligible to be conveyed but were
    instead still leased out, and therefore eligible for the HUD
    subsidy. HUD sought merely to recover the amounts it paid
    by mistake. Because HUD never found Fort Belknap to be in
    substantial noncompliance, § 4161 does not confer
    jurisdiction on this court.
    B. This court lacks jurisdiction because HUD did not
    impose the remedies listed in § 4161(a)(1).
    This court has jurisdiction under § 4161(d) only if HUD
    (1) terminated payments to Fort Belknap, (2) reduced
    payments to Fort Belknap “by an amount equal to the amount
    of such payments that were not expended in accordance with
    this chapter,” (3) limited the availability of payments “to
    programs, projects, or activities not affected by such failure
    to comply,” or (4) provided a replacement tribally designated
    housing entity. See 
    25 U.S.C. § 4161
    (a)(1)(A)–(D). Fort
    Belknap argues that, in a letter dated November 14, 2011,
    HUD “clearly anticipates that the monies for which their
    demand has been made have been expended for units not
    16 FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS.
    otherwise eligible. . . . If the monies were still in hand, HUD
    could have simply requested their return.” Thus, Fort
    Belknap argues that this court has jurisdiction because HUD
    imposed a remedy under § 4161(a)(1)(B) and reduced
    payments “by an amount equal to the amount of such
    payments that were not expended in accordance with this
    chapter.” This argument is without merit.
    HUD’s proposed repayment schedule was not a
    determination that the disputed funds “were not expended in
    accordance” with NAHASDA. In the 2010 letter, HUD asked
    Fort Belknap to contact its staff “to discuss repayment
    options for the over-funding received in FYs 2000 through
    2010.” It continued:
    Staff will work with your Tribe to find a
    suitable way to structure repayment. This
    may involve reducing previous and/or future
    year’s funding. Should you have funds that
    are not obligated, it may be beneficial to you
    to reduce previous years’ grants to enable
    compliance with the 2-year obligation
    performance measure.
    HUD repeated this invitation to discuss repayment options
    when it denied Fort Belknap’s administrative appeal. HUD’s
    November 14, 2011 letter stated that HUD would “extend the
    time for the Tribe to establish a repayment plan . . . . If a
    repayment plan is not established in this timeframe, HUD will
    deduct the funding for ineligible units over a five-year period
    beginning in FY 2012 through FY 2016.” Thus, the proposed
    repayment plan should be read as the option most convenient
    to HUD’s collection efforts; it had nothing to do with HUD’s
    FORT BELKNAP V . OFFICE OF PUB. & INDIAN HOUS. 17
    beliefs as to whether and how the funds in question had been
    expended by Fort Belknap.
    HUD never alleged nor found that any funds “were not
    expended in accordance with this chapter.” 
    25 U.S.C. § 4161
    (a)(1)(B) (emphasis added). Instead, it found that Fort
    Belknap “incorrectly received funding” for ineligible units.
    Because HUD’s remedy (i.e. the repayment of funds received
    in error) was not among those remedies listed in 
    25 U.S.C. § 4161
    (a)(1), this court lacks jurisdiction.11
    III. Conclusion
    For these reasons, Fort Belknap’s petition for review is
    DISMISSED.
    11
    At oral argument, HUD’s counsel suggested that Fort Belknap could
    raise its claims in the appropriate district court. W e do not decide whether
    any other court has jurisdiction, as that issue is not before us, but we note
    that our holding does not necessarily mean Fort Belknap is without
    judicial recourse.
    

Document Info

Docket Number: 12-70221

Citation Numbers: 726 F.3d 1099

Judges: Bea, Carlos, Clifton, Richard, Tashima, Wallace

Filed Date: 8/8/2013

Precedential Status: Precedential

Modified Date: 8/7/2023