Indian Housing Demonstration Project Act of 1991

Indian Housing Demonstration Project Act of 1991 - Directs the Secretaries of the Interior and of Housing and Urban Development (Secretaries) (HUD) to carry out a program to demonstrate the effectiveness of permitting Indian tribes (through the tribal government) to determine the housing needs of tribal members and the appropriate use of Federal housing assistance provided to the Indian tribe.

Requires: (1) the Secretaries, upon the selection of an Indian tribe for participation in such program, to permit the Indian tribal government to consolidate assistance received by the Tribe under specified programs for use under the demonstration program; and (2) the Secretary of HUD to authorize the Indian tribal government to receive any assistance under such programs that would be provided under the programs to the Indian housing authority of the Tribe.

Directs the Secretary of HUD to transfer to each participating Indian tribe under the demonstration program, all rights, titles, and interests of the United States and any Indian housing authority of the Tribe, in any housing projects and housing units for Indian families on Indian reservations and other Indian areas of the tribe, subject to a reversion right agreement.

Prohibits an Indian Tribe from being selected to participate in the demonstration program unless the Tribe has submitted a plan in compliance with this Act.

Requires an Indian tribe participating in the demonstration program to receive annual contributions (to the extent amounts are provided in appropriations Acts) for each fiscal year beginning after the Indian tribe is selected to participate in the demonstration program in an amount equal to the amount of such assistance received by the Indian housing authority of the Tribe in the last fiscal year beginning before such Tribe was selected.

Authorizes the Secretaries to waive provisions of any Federal law, regulations, policies, or procedures to enable the participating Indian tribe to implement its plan under this Act.

Directs the Secretaries to establish procedures and deadlines for Indian tribes to submit applications for participation in the demonstration program.

Requires the Secretaries to: (1) select a minimum of five to a maximum of ten Indian tribes (which shall include the Jicarilla Apache tribe of New Mexico) to participate in such program; and (2) establish criteria for the selection process.

Requires the Secretary of HUD to provide a grant to each participating Indian tribe for administrative expenses.

Authorizes appropriations.

Authorizes an Indian tribe to terminate its participation in the program, after a five-year period, by notifying the Secretaries in writing of such termination. Ceases any waiver provided for the Indian tribe under this Act, upon the termination. Prohibits such termination from affecting an Indian tribe's eligibility for assistance or the amount of it provided by programs specified under this Act.

Directs the Secretary of HUD to recapture any grant amounts received by the Indian tribe that remains unobligated upon the termination of such participation.

Requires the Secretaries to: (1) report to the Congress on the activities carried out under this Act by participating Indian tribes; and (2) evaluate the effectiveness of such activities.