a. Fair Market Rental
If a Tribe seeks lease compensation based upon fair market rental, they must provide a
Fair Market Rental Analysis (FMRA) for their area, compare the costs for similar
properties, describe how the costs were developed, and other supporting documents as
needed. Typically, an appraiser completes a FMRA. The appraiser will consider the age
of the facility, square footage, location, amenities, and the condition of the property, as
compared to similar properties in the area.
b. Cost elements listed in 25 CFR Section 900.70 only.
If a Tribe requests lease compensation based on the elements contained at 25 C.F.R. §
900.70 (a-h), then the Tribe must provide documents supporting each cost element
requested. Supporting documents should include a copy of the program’s general
ledger, a crosswalk between the cost elements and the general ledger, actual costs from
the previous year, contractor quotes, and/or copies of invoices.
c. Combination
A Tribe may request compensation based upon a combination of the cost elements listed
in 25 CFR Section 900.70 and fair market rental. There must be documentation for each.
The FMRA may document which “other reasonable expenses” are allowable under 25
C.F.R. § 900.70.
Incorporating 477 Programs
The employment and training programs eligible for compensation are those programs that are
integrated into Tribal Workforce Development plans. These plans are approved by the Indian Affairs
Division of Workforce Development under the authority of Public Law 102-477, the Indian
Employment, Training, and Related Services Demonstration Act of 1992, as amended. PL 102-477 is
then incorporated into ISDEAA contracts, compacts, and funding agreements.