The recipient must use one of the methods described in paragraph (b) or (c) of this section to determine if a non-dwelling structure meets the limitation requirements of § 1000.160. If the recipient develops, acquires, or rehabilitates a non-dwelling structure with funds from NAHASDA and other sources, then the cost limit standard established under these regulations applies to the entire structure. If funds are used from two different sources, the standards of the funding source with the more restrictive rules apply.

The recipient may adopt written standards for non-dwelling structures. The standards must describe the type of structures and must clearly describe the criteria to be used to guide the cost, size, design, features, amenities, performance or other factors. The standards for such structures must be able to support the reasonableness and necessity for these factors and to clearly identify the affordable housing activity that is being provided.

When the recipient applies a standard to particular structures, it must document the following: (i) Identification of targeted population to benefit from the structures;

Identification of need or problem to be solved;

Affordable housing activity provided or supported by the structures;

Alternatives considered;

Provision for future growth and change;

Cultural relevance of design;

Size and scope supported by population and need;

Design and construction features that are accessible to persons with a variety of disabilities;

Cost; and

Compatibility with community infrastructure and services.

If the recipient has not adopted program standards specified in paragraph (b) of this section, then it must demonstrate and document that the non-dwelling structure is of a cost, size, design and with amenities consistent with similarly designed and constructed structures in the recipient's general geographic area.