	Background

The Settlement Act, enacted on December 22, 1974, was intended to  provide for the final settlement of a land dispute between the Navajo and  Hopi tribes that originated nearly a century ago. It required Navajo households residing on lands  partitioned to the Hopi Tribe (Hopi Partitioned Lands) to relocate and,  similarly, Hopi households residing on lands partitioned to the Navajo  Nation (Navajo Partitioned Lands) to relocate. ONHIR previously developed  plans to close out its activities in 2008, according to ONHIR officials, but  has continued to operate. The Settlement Act states that ONHIR will  cease to exist when the President of the United States determines that its  functions have been fully discharged. If  an applicant is certified, the applicant becomes an ONHIR client for  relocation. Eleven cases were pending in the federal  district courts and four in federal appeals court as of March 2018, and  according to ONHIR officials, at least 240 households that were denied  eligibility benefits and whose decisions were upheld by the hearing officer  (and are within the 6-year statute of limitation) could potentially file for  appeals in federal court before the end of fiscal year 2018. During this 2-year  period, ONHIR is responsible for helping homeowners, who are located  on-reservation, request warranty repairs. Executive Branch or Congressional Action May Be Needed to Terminate ONHIR and Effectively Transfer Remaining Relocation Activities

		ONHIR Has Not Yet Requested a Presidential Determination for Closure

As previously mentioned, ONHIR was not designed to be a permanent  agency. ONHIR Has Not Developed Complete Information on Its Remaining Activities

Although ONHIR officials anticipate that the agency will close by  September 2018, they have not ensured that complete information related  to its relocation activities can be made available to other successor  agencies. In its March 2017 transition plan and October 2017 implementation plan,  ONHIR has not developed detailed information on how it plans to identify  and prepare information in the paper case files and client database for the  240 or more denied households that could file for federal appeals. Federal  internal control standards state that management should identify, analyze,  and respond to risks related to achieving the defined objectives. The Settlement Act Does Not Include Provisions for Transferring Remaining Relocation Activities to Successor Agencies

In its transition and implementation plans, ONHIR has identified a number  of potential successor agencies that could be selected to take over  ONHIR’s remaining activities in different areas. However, officials at these  agencies said they currently do not have the authority to undertake these  activities under the Settlement Act. However, as previously  mentioned, cash payments are not currently authorized under the  Settlement Act and legislation would be needed to provide such  payments. Conclusions

The relocation of Navajo and Hopi families has taken more time than  originally anticipated when the Settlement Act was enacted in 1974,  extending ONHIR operations more than 30 years beyond the original  estimates. In addition, although ONHIR believes it has completed most of its  responsibilities under the act and believes it can close by September  2018, it does not have the authority to make this decision. Moreover, OHNIR has not prepared complete  information about its various activities, such as eligibility determinations,  appeals, and home building, which increases the risk that successor  agencies will not be able to effectively assume ONHIR’s activities. (Recommendation 1)
The Executive Director of ONHIR should prepare complete information on  the remaining denied households who could still file for federal appeals. Although we present background information about  other federal agencies and tribal entities with responsibilities in Indian  Country as well as perspectives from various agencies on the transition  and remaining activities, we did not independently evaluate these  agencies’ authorities or capacity and do not draw conclusions about  which agencies and tribal entities including HUD should be provided the  necessary authority by Congress to continue ONHIR’s remaining  activities. In ONHIR’s comments, which are summarized below and reproduced in  appendix II, ONHIR did not explicitly agree or disagree with our five  recommendations but stated that it had either already taken steps or had  plans to once a successor is identified. With regard to the draft report’s first recommendation to request a  presidential determination as to whether ONHIR has fully  discharged its responsibilities and whether it should close, ONHIR  stated that it has worked for decades with the Office of  Management and Budget within the Executive Office of the  President on completing its work. GAO staff who made key contributions to this report are listed in appendix  V.

Appendix I: Objectives, Scope, and Methodology

This report examines (1) ONHIR’s management of the eligibility and  appeals processes and the status of these activities; (2) ONHIR’s  management of the home-building process and the status of these  activities; (3) executive branch or legislative actions that may be  necessary to terminate ONHIR in an orderly manner and transition  remaining relocation activities; (4) ONHIR’s management of Navajo trust  lands and related transition activities; and (5) legislative actions that may  be necessary to address other Settlement Act provisions. Appendix II: Comments from the Office of Navajo and Hopi Indian Relocation

	GAO Comments

1. The two  photographed houses are on the Navajo reservation, shown to us  during our site visit. We continue to believe that ONHIR  should proactively compile necessary information rather than waiting  for a successor to request it.
Why GAO Did This Study

In 1974, the Settlement Act was intended to provide for the final settlement of a land dispute between the Navajo and Hopi tribes that originated nearly a century ago. The act created ONHIR to carry out the relocation of Navajo and Hopi Indians off land partitioned to the other tribe. ONHIR's relocation efforts were scheduled to end by 1986. However, those efforts continue today.
GAO was asked to review ONHIR's operations. Among other things, this report discusses (1) ONHIR's management and the status of relocation activities and (2) executive branch and legislative actions that may be needed for ONHIR to close and transfer remaining activities. GAO reviewed documentation; interviewed officials at ONHIR and other federal agencies, as well as from the Navajo Nation and Hopi Tribe; and conducted two site visits to ONHIR's offices and the Navajo reservation in Arizona.

What GAO Found

As of December 2017, the Office of Navajo and Hopi Indian Relocation, and its predecessor agency (collectively, ONHIR), has relocated 3,660 Navajo and 27 Hopi families off disputed lands that were partitioned to the two tribes and provided new houses for them. Although the Navajo-Hopi Settlement Act of 1974 (Settlement Act) intended for ONHIR to complete its activities 5 years after its relocation plan went into effect, the agency has continued to carry out its responsibilities for over three decades beyond the original deadline and the potential remains for relocation activities to continue into the future. For example, GAO found that by the end of fiscal year 2018
at least 240 households whose relocation applications were previously denied could still file for appeals in federal court and if the court rules in their favor these households could become eligible for relocation benefits under the Settlement Act, and
ONHIR is still responsible for helping homeowners who might request repairs for 52 relocation homes that remain under warranty.
ONHIR believes that it has substantially completed its responsibilities under the Settlement Act and has stated its intent to close by September 2018. However, ONHIR does not have the authority to close its operations and has not yet taken the steps necessary to facilitate such a closure. GAO identified a number of areas where either executive branch or congressional actions would be needed to affect a closure of ONHIR, as shown in these examples:
The Settlement Act states that ONHIR will cease to exist when the President determines that its functions have been fully discharged. ONHIR, however, has not requested a determination nor provided specific information to the President that could facilitate such a decision.
ONHIR has prepared a transition plan and identified potential successor agencies that could assume its remaining activities. However, officials at these agencies said they currently do not have authority under the Settlement Act to undertake ONHIR's activities. Without congressional authorization these agencies would not be able to succeed ONHIR.
ONHIR has prepared an implementation plan to guide its closure but has not yet taken necessary steps to ensure that all the key information about its activities has been compiled. For example, ONHIR's database for tracking warranty requests is missing information, such as the date of warranty repairs and other contractor information. Similarly, ONHIR has not prepared complete information from its files on the remaining denied households who could file for federal appeals. Federal internal control standards state that agencies should identify and respond to risks and use quality information. By not preparing complete information on the relocation activities it has been engaged in, ONHIR places an effective transition of its functions to another agency at risk. This is because any successor agency authorized to continue these activities will not have the complete information needed to effectively fulfill these functions.

What GAO Recommends

GAO is making four matters for congressional consideration; including that Congress provide successor agencies necessary authority to continue ONHIR's remaining activities if it closes. GAO is also making five recommendations to ONHIR, including that it request a closure determination from the President and prepare necessary information to facilitate the transfer of its activities to a successor. ONHIR neither agreed nor disagreed with the five recommendations and stated it had either already taken steps or planned to once a successor is identified. GAO continues to believe the recommendations are valid, as discussed in the report.