; and (2) by inserting after paragraph (21) the following new paragraph: (22) Total development cost The term total development cost means, with respect to a housing project, the sum of all costs for the project, including all undertakings necessary for administration, planning, site acquisition, demolition, construction or equipment and financing (including payment of carrying charges), and for otherwise carrying out the development of the project, excluding off-site water and sewer. The total development cost amounts shall be based on a moderately designed house and determined by averaging the current construction costs as listed in not less than two nationally recognized residential construction cost indices. . II AFFORDABLE HOUSING ACTIVITIES 201. National objectives and eligible families The second paragraph (6) of section 201(b) ( 25 U.S.C. 4131(b)(6) ; relating to exemption) is amended— (1) by striking 1964 and and inserting 1964, ; and (2) by inserting after 1968 the following: , and section 3 of the Housing and Urban Development Act of 1968 . 202. Program requirements Section 203(a) ( 25 U.S.C. 4133(a) ) is amended— (1) in paragraph (1), by striking paragraph (2) and inserting paragraphs (2) and (3) ; and (2) by adding at the end the following new paragraph: (3) Application of tribal policies Paragraph (2) shall not apply if the recipient has a written policy governing rents and homebuyer payments charged for dwelling units and such policy includes a provision governing maximum rents or homebuyer payments. . 203. Homeownership or lease-to-own low-income requirement and income targeting Section 205 ( 25 U.S.C. 4135 ) is amended— (1) in subsection (a)(1)— (A) in subparagraph (C), by striking and at the end