This rule revises HUD's regulations regarding the way construction costs are controlled in the Indian Housing Block Grant (IHBG) program administered by IHBG grantees, who are Indian tribes or their tribally designated housing entities (TDHEs). This rule replaces the system of HUD-established Dwelling Construction and Equipment costs (DC&Es) with a choice between HUD-established Total Development Costs (TDCs) or standards established by the tribe/TDHE based on standards in its geographic area. This rule also provides that the construction, acquisition, or assistance of non-dwelling structures is either subject to tribally developed standards or to documentation of comparability to the size, design and amenities of similar buildings constructed in the geographic area. This rule follows an April 20, 2000 proposed rule and takes into consideration the public comments received on the proposed rule. After careful consideration of all the public comments received on the April 20, 2000 proposed rule, HUD has decided to adopt the proposed rule without significant change.