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 U. S. Housing Act of 1937. This is not a legal obligation but a statement of determination by HUD, subject to fulfillment of all legal and administrative 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 HUD with respect to the Program Reservation. A Development Program which is approvable by HUD must be submitted by August 1, 1979 If this time limit is exceeded, the Program Reservation will be cancelled unless HUD determines, for good cause, to extend the time limit.

D-Detached Single Family: SD-Semi-Detached; R-Row; AW-Walk-up Apartments; M-Elevator

EXHIBIT 9c i

* 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
issue an unencumbered title policy on lands in York County.

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.

SUBJECT: Public llousing - Indian Claims Exception to Title Policy

This is in response to your memorandum of July 27. 1973. asking
that we advise you of livƆ's policy on titlé requirements for
prospective public housing sites where Indian clairs exist. You
state that title companies have announced that they will not insure
against claims by Catawba Indians to land in three South Carolina
counties. Counsel for the Rock Hill Housing Authority has noted
that the title policy for a Section 8 project approved by HUD
contained an exception for the Indian claims, and urges that
similar title insurance should be acceptable for a public housing
project.

Sites for public housing 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 Indian claims. A title policy exceoting damages from Indian
claims would not te acceptable. inile we have no inforzation to
Judge the coricusness of the claims involved here, or the
likelihood of ultimate damage from the assertion of the claims. the
insistence of the title companies on the claims exception would
appear to indicate their view that there is a serious exposure.
do not find that there is justification for accepting less than
marketa.le title.

The comparison to Section 8, as suggested by Authority counsel, is
·not appropriate. In Section 8 without FHA mortgage 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 deɔt service on the
obligations issued to finance development cost. In public housing,
HUD undertakes a direct full faith and credit commitment to the
holders of Authority bonds and notes.

Associated Press

ROCK HILL - Despite a huge land claim by the Catawba Indian tribe that is blocking a housing project, the city of Rock Hill might go ahead with some of the work.

Housing Authority Director Jim Poore says the city might have a chance to get funding for 60 of the planned 76 low- and middle-income housing units if the housing authority, rather than a private firm, develops the project.

Poore told the authority commission he has asked the Department of Housing and Urban Development (HUD) to waive a title insurance requirement for the $2.6million project.

"I'm hoping that we'll get some kind of response on this title waiver in a few days," Poore said.

76-unit project near Finley Road
Despite HUD's rejection of the
last week. Poore said HUD officials
have told him "everything that can
be done will be done" to finance
the project.

A private developer couldn't get
required federal insurance for the
project because of the title insur-
ance delay.

give the housing authority title in-
Insurance companies will not

surance because of the Catawbas'
claim to 144,000 acres In York,
Lancaster and Chester counties.

The tribe claims the state's pur-
chase of the land under an 1840
treaty is invalid because it was not
ratified by Congress.

Poore said he thinks the Finley Road project can resume when the claim is resolved.

EXHIBIT 10b