Tribal housing authorities around the country began receiving letters Friday from the federal Department of Housing and Urban Development, notifying them that hundreds of millions of dollars in housing block grants would be released following a federal judge's ruling.

"They're trying to get the funding out as quick as they can," said Marty Shuravloff, chairman of the National American Indian Housing Council. "I'm just relieved we've got to the point that the funds have been released. It would be very detrimental to the tribes whose funds were being withheld to not receive those services."

The block grant dispute began after the Fort Peck Housing Authority, an agency of the Assiniboine and Sioux Tribes of Montana, filed suit against HUD for unfair block grant appropriations.

U.S. District Judge Richard Matsch of Colorado agreed in a May 25 ruling.

Matsch said HUD's interpretation of a federal statute was unreasonable, resulting in haphazard funding allocations "with reductions to some tribes and windfalls to others"based on factors that are not related to tribal housing needs."

HUD responded to the court ruling by deciding to withhold all undistributed 2006 block grant funds to nearly 200 tribes around the country. HUD Assistant Secretary Orlando Cabrera had warned tribes the Fort Peck case could affect current, past and future block grants awarded under the Native American Housing Assistance and Self-Determination Act of 1996.

But Matsch ruled otherwise in a June 30 amendment to his earlier decision. The court order, he said, "does not extend beyond Fort Peck Housing Authority."

"This action was not certified as a class action," Matsch wrote, "because other Indian tribes are not parties in this case and have had no opportunity to take a position with respect to the … rule as it affects them."

Consequently, Cabrera began notifying tribes that his department would resume processing the 2006 Indian Housing Block Grant awards "effective immediately."

Tribal leaders and National American Indian Housing Council representatives earlier had implored U.S. senators and HUD officials to ensure that $300 million - about half of all 2006 Native American Housing Block Grant funds - would be delivered to 189 tribes.

Block grants comprise the bulk of the money used by tribal housing programs.

(Reach reporter Jodi Rave at 406-523-5299 or jodi.rave@;lee.net.)