Documenting the inefficiency of the Housing and Urban Development (HUD) programs for American Indians, this report discusses HUD program administration and presents specific recommendations. The report is divided into the following sections and subsections: (1) 1977 is the ninth consecutive year HUD has promised more Indian housing than it has delivered; (2) Indian housing is desperately needed: (3) HUD's administration of Indian housing is disorganized and inefficient (HUD's Indian programs are disorganized, HUD has failed to assure coordination with the Bureau of Indian Affairs and the Indian Health Service, resulting in unnecessary delays; and HUD Indian housing lacks quality); (4) Indian housing programs are flawed by HUD's poor relationship with Indian housing authorities, (background; HUD has a poor relationship with Indian housing authorities; the HUD Indian housing regulations and handbook are not based upon reality and, therefore, are impossible for the Indian housing authorities to implement; and HUD is mismanaging its program to improve management of local Indian housing authorities); (5) recommendations (HUD should maintain a commitment to Indian housing authorities) high Indian housing goals; given the special nature of Indian needs, HUD should combine all Indian program activities into one Indian program office reporting directly to the Secretary; HUD should take the lead in the Federal Indian housing effort; and HUD must face squarely the responsibility to help build institutions as well as houses). (JC)