In any foster-care or preadoptive placement of an Indian child under State law, including changes in foster-care or preadoptive placements, the child must be placed in the least-restrictive setting that:

Most approximates a family, taking into consideration sibling attachment;

Allows the Indian child's special needs (if any) to be met; and

Is in reasonable proximity to the Indian child's home, extended family, or siblings.

In any foster-care or preadoptive placement of an Indian child under State law, where the Indian child's Tribe has not established a different order of preference under paragraph (c) of this section, preference must be given, in descending order as listed below, to placement of the child with:

A member of the Indian child's extended family;

A foster home that is licensed, approved, or specified by the Indian child's Tribe;

An Indian foster home licensed or approved by an authorized non-Indian licensing authority; or

An institution for children approved by an Indian Tribe or operated by an Indian organization which has a program suitable to meet the child's needs.

If the Indian child's Tribe has established by resolution a different order of preference than that specified in ICWA, the Tribe's placement preferences apply, so long as the placement is the least-restrictive setting appropriate to the particular needs of the Indian child, as provided in paragraph (a) of this section.

The court must, where appropriate, also consider the preference of the Indian child or the Indian child's parent.