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The Department of Housing and Urban Development (HUD) hereby makes the following Program Reservation, or change therein, for low-income dwelling units to be provided pursuant to the 0. s. Housing Act of 1937. This is not a legal obligation but a statement of determination by YUD, subject to fulfillment of all lcgal and adainis rative requirements, to enter into an Annual Contributions Contract covering the number of units reserved, or such lesser number as may be consistent with the amount of contract and budget authority reserved by IUD with respect to the Progran Reservation. A Development Program which is approvablc by IUD must be subeuitted by August 1, 1979

If this time limit is cxcccaed, the Program Reservation will be cancelled unless HUD de termines, for good cause, to extend the time limit.

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NUMBER OF D.U.'S BY BEDROOM SIZE
FAMILY AND LARGE FAILY

ELDERLY, TIANDICAPPED
OR DISABLED

TOTAL
2-DR 3-BR 4-BR 5-BR 6-RN EFFIC. 1- 2-33 D.U.'s
4

4 8 12

4 24 20

20

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D-Detached Single Family: SD-Semi-Detached; R-rowi Aw-walk-up Apartments; NE-Clcvator

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* Approval of a Preliminary Loan is subject to securing Central Office

authorization to release any funds until the Catawba Indian claim
is resolved to a point that a title Insurance Company is willing to
Issuc an uncncumbcrcd titlo policy on lands in York County.

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Reference is made to a meeting on December 20, 1978, in my office in
regards to the status of the above identified project. It was agreed
that we have no other alternative but to cancel this proposal due to
the decision that title companies will not issue title insurance with-
out the "Indian Claims" exception in their policies. It is with regret
that this decision had to be made, but as explained to you, these funds
are from the 1974 allocation and we have been directed to cancel these
contracts unless we can expect an immediate construction start.

We would like to express our appreciation for your cooperation in this
matter and you may rest assured that when the "Indian" title problem
has been resolved, every consideration will be given to your housing
needs in the Rock Hill area.

If you have any questions in regards to this matter, please contact
our Multifamily Housing Representative, Ottis J. Smith, 765-5628 or
765-9522.

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This is in response to your memorandum of July 27. 1973. asking
that we advise you or lub's policy on title requirerent: l'or
prospective public housing sites where Indian clairs exist.
state that title cocpanies have announced that they will not. insure
against claias by Catawba Indians to land in three South Carolina
countics. Counsel for eng Rock Hill Housing Autiiority has noted
that the title policy for a Section 8 project approved by LUO
contained an exception for the Indian clains, and urces tnat
sisilar title Insurance should be acceptable for a public housing
project.
Sites for public housine projects may not be approved unless the
Authority can obtain good and marketable title. We are not
'prepared to approve at this tice the acquisition of sites subject
to Ludian claims. A title policy exczoting datages from Indian
clalng would not te accentable. lihile we have no information to
Judge the coric-sness of the claire involved here, or the
Likelihood of tinate damage from the assertion of the claims. the
insistence o! the title companies on the claims exception would
appear to indicate their view that there is a serious exposure. Le
do not find that there is justification for accepting less than
marketa. Le title.
Ine comparison to Section 8, as suggested by Authority counsel, is
not appropriate. In Section 6 without FHA cortgage insurance HUD
does not investigate the quality of the owner's title, since
continuance of the subsidy is based on occupancy by the families,
and HUD does not guarantce payment of dest service on the
obligations issues to finance development cost. In public housing,
HD widertakes a direct null raith and credit camítnent to'the
bolders or Authority bonds and notes.

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City Might Tackle Project
Delayed By Catawba Suit

Arredo

Despite HUD's rejection of the ROCK HILL - Despite a huge 76-unit project pcar Finley Road land claim by the Catawba Indian last week. Poore said HUD officials tribe that is blocking a housing have told him "everything that can project, the city of Rock Hill might be done will be done" to finance so ahead with some of the work.

the project. Housing Authority Director Jim

A private developer couldn't get Poore says the city might have a required lederal insurance for the chance to get funding for 60 of the project because of the title insur. planned 76 low- and middle-in.

ance delay. come housing units if the housing

Insurance companies will not authority, rather than a private give the housing authority title infirm, develops the project.

surance because of the Catawbas Poore told the authority commis- claim to 114,000 acres in York, sion he has asked the Department Lancaster and Chester counties. ol Housing and Urban Devel. The tribe claims the state's puropment (HUD) to waive a title in chase of the land under an 1840 surance requirement for the $2.6. treaty is invalid because it was not million project.

rauried by Congress, I'm hoping that we'll get some Poore said he thinks the Finley Aind of response on this title waiv. Road project can resume when the er in a few days," Poore said. claim is resolved.

EXHIBIT 10b

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