[Federal Register Volume 59, Number 166 (Monday, August 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21260]
[[Page Unknown]]
[Federal Register: August 29, 1994]
_______________________________________________________________________
Part X
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Fair Housing and Equal
Opportunity
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24 CFR Part 125
Fair Housing Initiatives Program; Proposed Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Fair Housing and Equal
Opportunity
24 CFR Part 125
[Docket No. R-94-1657; FR-3480-P-02]
RIN 2529-AA62
Fair Housing Initiatives Program
AGENCY: Office of the Assistant Secretary for Fair Housing and Equal
Opportunity, HUD.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would amend the Fair Housing Initiatives
Program (FHIP) regulation to provide for the implementation of
statutory amendments pertaining to private enforcement initiatives; the
funding of fair housing organizations; and the implementation of
national (including national fair housing month), regional and local,
and community-based education and outreach programs.
DATES: Comment due date: October 28, 1994.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rulemaking to the Rules Docket Clerk, Office of General
Counsel, Room 10278, Department of Housing and Urban Development, 451
Seventh Street, S.W., Washington, D.C. 20410. Communications should
refer to the above docket number and title. A copy of each
communication submitted will be available for public inspection and
copying between 7:30 a.m. and 5:30 p.m. weekdays at the above address.
FOR FURTHER INFORMATION CONTACT: Jacquelyn J. Shelton, Director, Office
of Fair Housing Assistance and Voluntary Programs, Room 5234, 451
Seventh Street, S.W., Washington, D.C. 20410-2000. Telephone number
(202) 708-0800. A telecommunications device (TDD) for hearing and
speech impaired persons is available at (202) 708-0455. (These are not
toll-free numbers.)
SUPPLEMENTARY INFORMATION:
I. Paperwork Reduction Act Statement
The information collection requirements contained in this rule have
been approved by the Office of Management and Budget, under section
3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520),
and assigned OMB control number 2529-0033.
II. Background
A. Program Authority and Description
The Fair Housing Act--Title VIII of the Civil Rights Act of 1968,
as amended, 42 U.S.C. 3601-19--charges the Secretary of Housing and
Urban Development with responsibility to accept and investigate
complaints alleging discrimination based on race, color, religion, sex,
handicap, familial status or national origin in the sale, rental, or
financing of most housing, and in other real estate-related
transactions. In addition, the Fair Housing Act directs the Secretary
to coordinate with State and local agencies administering fair housing
laws, and to cooperate with and render technical assistance to public
or private entities carrying out programs to prevent and eliminate
discriminatory housing practices.
Section 561 of the Housing and Community Development Act of 1987
(1987 Act), 42 U.S.C. 3616 note, established the Fair Housing
Initiatives Program (FHIP) to strengthen the Department's enforcement
of the Fair Housing Act and to further fair housing. This program
assists projects and activities designed to enhance compliance with the
Fair Housing Act and substantially equivalent State and local fair
housing laws. Implementing regulations are found at 24 CFR part 125.
Section 905 of the Housing and Community Development Act of 1992
(HCDA 1992) (Pub. L. 102-550, approved October 28, 1992), substantially
amends section 561 of the Housing and Community Development Act of
1987. On April 1, 1993, the Department published an Advance Notice of
Proposed Rulemaking (ANPR) (58 FR 17172) requesting comment on HUD's
implementation of section 905 of the Housing and Community Development
Act of 1992. The Department received three comments in response to the
ANPR, and is taking them into consideration, as discussed in the
relevant contexts below, in this proposed rule to implement the HCDA
1992 amendments in 24 CFR part 125.
B. General Effect of Section 905 on 24 CFR 125
In general, the section 905 amendments do not replace the original
section 561 provisions of the Housing and Community Development Act of
1987 (except for the demonstration period sunset provision of
subsection (h), as discussed below in this preamble), but rather,
supplement those provisions by authorizing additional activities. Thus,
the original section 561(a) provisions that provided the authority to
establish and fund the Administrative and Private Enforcement
Initiatives and the Education and Outreach Initiative are still in
effect. The entities eligible for funding under section 561(a) (State
or local governments or their agencies, public or private nonprofit
organizations or institutions, or other public or private entities that
are formulating or carry out programs to prevent or eliminate
discriminatory housing practices) remain eligible for funding under
these initiatives. The present regulations at 24 CFR 125 that implement
section 561(a) are not superseded and would not be removed by this
rule.
One provision of 24 CFR 125 that would be affected is Sec. 125.405,
entitled, ``Guidelines for private enforcement testing.'' These
guidelines were issued to implement section 561((c)(2) of the 1987 Act,
which required the Department to establish guidelines for testing
activities for use during the authorized demonstration period for FHIP.
As originally promulgated, FHIP was a demonstration program authorized
to expire on September 30, 1992. The passage of section 905 establishes
FHIP as a permanent program, and with the expiration of the
demonstration period, the requirement for testing guidelines is
removed. The Department considered two factors to be significant and
determinative in the decision to eliminate testing guidelines from the
regulation. First, in the original authorizing statute for FHIP,
Congress specifically limited the requirement for testing guidelines to
the demonstration period; and second, Congress did not include this
requirement in its permanent authorization of FHIP by section 905. The
revised Sec. 125.405 proposed here would remove the testing guidelines,
but would still require that testers must not have prior felony
convictions or convictions of crimes involving fraud or perjury, and
that they receive training or be experienced in testing procedures and
techniques. To provide consistency in the regulation, this provision
regarding testers would also be added to the Administrative Enforcement
Initiative at Sec. 125.204, and to the new Fair Housing Organizations
Initiative at Sec. 125.504.
The areas in which section 905 makes additions to the Fair Housing
Initiatives Program are: 1) private enforcement initiatives; 2) funding
of fair housing organizations; and 3) education and outreach
activities.
C. Section By Section Analysis and Implementation of Section 905
Section 905(a) is a statement of Congressional findings, which
provides insight into the considerations behind the statutory revisions
to FHIP. Sections 905(a) (1) through (4) list statutory initiatives
that address the issue of discrimination in housing markets: the Fair
Housing Act; the Home Mortgage Disclosure Act; and the Americans with
Disabilities Act. Sections 905(a) (5) and (6) cite recent evidence of
pervasive discrimination in mortgage lending markets, and against
Hispanic and African American homeseekers in at least half of their
encounters with sales and rental agents. Sections 905(a) (7) through
(9), proceeding within the context of the statutory initiatives and the
recent evidence of discrimination, provide specific direction for FHIP:
it should be revised and expanded to reflect the significant changes in
the areas of fair housing and fair lending that have taken place since
the Program's initial authorization in the Housing and Community
Development Act of 1987; continuing educational efforts by the real
estate industry are a useful way to increase understanding by the
public of their fair housing rights and responsibilities; and the
proven efficacy of private nonprofit fair housing enforcement
organizations and community-based efforts makes support for these
organizations a necessary component of the fair housing enforcement
system.
Section 905(b) makes the substantive amendments to section 561 of
the Housing and Community Development Act of 1987 (42 U.S.C. 3616 note)
that Congress enacted in light of the findings of section 905(a).
Structurally, section 905(b)(1) redesignates subsections (b) through
(e) of section 561 as subsections (e) through (h). Then, section
905(b)(2) inserts new subsections (b) through (d), which list eligible
activities and applicants for FHIP funding. Section 905(b)(3) replaces
the previous authorizations in redesignated subsection (g) of section
561 with new program funding authorization amounts that include
specific set-asides for the newly added activities. Finally, section
905(b)(4) strikes the FHIP demonstration program sunset provision of
redesignated subsection (h) (formerly subsection (e) of section 561),
replaces it with two new definitions, and adds new subsections (i), a
prohibition on the use of FHIP funds, and (j), which enumerates the
requirements for a Congressional report by the Department. The proposed
implementation of these amendments is discussed in detail below.
As mentioned above, two new definitions for purposes of FHIP are
added by section 905. Each defines an eligible applicant for program
funding. The first of these is, ``qualified fair housing enforcement
organization,'' (QFHO) defined in the statute to mean any organization
that--
(1) Is organized as a private, tax-exempt, nonprofit, charitable
organization;
(2) Has at least 2 years experience in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims; and
(3) Is engaged in all the activities listed in paragraph (2) at the
time of application for FHIP assistance.
In addition, an organization which is not solely engaged in fair
housing enforcement activities may qualify as a qualified fair housing
enforcement organization, provided that the organization is actively
engaged in each of the activities listed in paragraph (2) (that is,
complaint intake, complaint investigation, testing for fair housing
violations and enforcement of meritorious claims). The Department does
not interpret this provision to mean that an organization which is not
solely engaged in fair housing enforcement activities may qualify as a
QFHO just by being actively engaged in the necessary activities. The
threshold of two years experience in the necessary activities must be
met as well. Without such a reading, it would be more difficult for
organizations that exclusively concentrate their efforts on fair
housing enforcement activities to qualify as QFHOs than organizations
that pursue fair housing along with any number of other activities. The
Department believes that this provision was included in the statute to
avoid excluding organizations that should be considered qualified even
though they are engaged in a broader range of activities than are
eligible under FHIP. The proposed rule would clarify this point by
including organizations in the definition of QFHO whether or not they
are solely engaged in fair housing enforcement activities as long as
they meet the other qualifications, including the requirement for two
years of experience.
The second newly defined term is, ``fair housing enforcement
organization,'' (FHO) which, pursuant to the statute, means any
organization that--
(1) Is organized as a private, tax-exempt, nonprofit, charitable
organization;
(2) Is currently engaged in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims;
(3) Upon the receipt of FHIP funds will continue to be engaged in
all of the activities specified in paragraph (2); and
(4) For purposes of funding under FHIP's Private Enforcement
Initiative, has at least one year of experience in the activities
specified in paragraph (2).
From the above definitions, based on the statutory language, it is
apparent that the only difference between a QFHO and an FHO is the
length of time the organization has been involved in all of the cited
necessary activities, with two years being the threshold for a QFHO and
one year being the threshold for an FHO applying for Private
Enforcement Initiative funding. The statute does not address the issue
of whether the threshold lengths of time must be consecutive, or
whether they may be aggregated over a period of time. Another issue not
addressed by the statute is whether all of the necessary activities
must be performed simultaneously, or whether the threshold period of
time may be individually computed for each activity.
The Department has determined that these definitions were included
to ensure that the applying organizations met a certain level of
experience, but not to exclude experienced organizations on purely
technical grounds. To add clarification to the definitions along these
lines, the proposed rule would add that for the purpose of meeting the
threshold times, it is not necessary that the activities were conducted
simultaneously, so long as each activity meets the threshold period.
The rule would further provide that it is not necessary, for purposes
of satisfying the threshold period, that the activities were conducted
over a consecutive two year period of time. An organization may
aggregate its experience in each activity over the three year period
preceding its application to meet the two year threshold for QFHO
status. Similarly, for purposes of meeting the one year of experience
requirement for FHOs applying for funding under FHIP's Private
Enforcement Initiative, the rule would permit an FHO to aggregate its
experience in each activity over the two year period preceding its
application.
One of the comments on the FHIP ANPR recommended that the term
``meritorious claims,'' which is used in the definitions of both
``qualified fair housing enforcement organization'' and ``fair housing
enforcement organization,'' should itself be defined. The comment
suggested defining ``meritorious claims,'' as enforcement activities,
not more than two years old, that resulted in lawsuits, consent
decrees, legal settlements, HUD conciliations and agency initiated
settlements with the outcome of monetary awards for compensatory and/or
punitive damages to plaintiffs or complaining parties, or affirmative
relief and monitoring. The comment further called for the demonstration
of a continued effort in effective enforcement by an organization
through the continued filing of verified claims of discrimination with
HUD, the Department of Justice, State or local agencies and in federal
or State court.
The Department agrees that defining ``meritorious claims'' would
provide appropriate guidance for identifying QFHOs and FHOs. The
Department would adopt the suggested language, with the following
modifications. The suggested requirements for a demonstration of a
continued effort in effective enforcement, and that the activities be
not more than two years old, would not be included in the definition.
This is because, with regard to QFHOs, limiting meritorious claims to a
two year period would conflict with this rule's provision to permit
organizations to aggregate their experience over a three year period.
With regard to FHOs, limiting activities in the definition of
``meritorious claims'' to those not more than two years old is
redundant and unnecessary, since the rule only permits activities
within two years of applying to be considered for purposes of
qualifying as an FHO.
The comment also recommends that an organization not solely
involved in fair housing enforcement that wishes to qualify as a QFHO
must document its enforcement activity with copies of lawsuits,
settlements, or conciliations in which it has been involved. The
Department agrees in part, with this comment. The Department did not
plan to require such documentation from any organizations claiming to
be QFHOs, FHOs, or from organizations not solely involved in fair
housing enforcement that wish to qualify as QFHOs. Following this
comment, the Department proposes to include in the rule a provision
that the Department may request an organization to supply documentation
to support its claimed status. This approach would be minimally
burdensome, while still permitting further inquiry where it may be
warranted.
These definitions, as discussed above, would be added to the
Definitions section of the FHIP rule at 24 CFR 125.103. In addition,
the requirement for one year of enforcement experience by FHOs that
wish to apply for Private Enforcement Initiatives funding will be
included in Sec. 125.402, which lists eligible applicants for this
Initiative.
Under the new section 561(b), entitled Private Enforcement
Initiatives, as added by HCDA section 905, the Department is required
to make FHIP funds available to conduct, through contracts with private
nonprofit fair housing enforcement organizations, investigations of
violations of the rights granted under the Fair Housing Act, and
appropriate enforcement activities to remedy such violations. The
Department is further authorized to enter into multi-year contracts and
take other appropriate action to enhance the effectiveness of such
investigations and enforcement activities. The statute goes on to
specify that funds made available for Private Enforcement Initiatives
be used to conduct, through contracts with private nonprofit fair
housing enforcement organizations, a range of investigative and
enforcement activities designed to--
(1) Carry out testing and other investigative activities, including
building the capacity for housing investigative activities in unserved
or underserved areas;
(2) Discover and remedy discrimination in the public and private
real estate markets and real estate-related transactions, including,
but not limited to, the making or purchasing of loans or the provision
of other financial assistance in sales and rentals of housing and
housing advertising;
(3) Carry out special projects, including the development of
prototypes to respond to new or sophisticated forms of discrimination
against persons protected under the Fair Housing Act;
(4) Provide technical assistance to local fair housing
organizations, and assist in the formation and development of new fair
housing organizations; and
(5) Provide funds for the costs and expenses of litigation,
including expert witness fees.
Concerning the provision of funds for expert witness fees, the rule
would define ``expert witness'' in a way that recognizes that courts in
different jurisdictions may vary in their qualification requirements
for expert witnesses. The definition would also take into account the
possibility that an expert witness may prepare testimony and bill an
organization for a trial in which a settlement or other resolution is
achieved before a verdict, and before the expert has an opportunity to
testify. ``Expert witness'' would be defined to mean a person who
testifies, or who would have testified but for a resolution of the case
before a verdict is entered, and who qualifies as an expert witness
under the rules of the court where the litigation funded by this part
is brought.
There were a number of comments regarding the Private Enforcement
Initiative submitted in response to the FHIP ANPR. One of the comments
strongly opposed allocating further funds to support the use of testers
under the FHIP Private Enforcement Initiative. The comment argued that
the use of testers provides unreliable information regarding illegal
lending discrimination, and that funding education and training
programs for lenders and borrowers would better effect the purpose of
delivering more housing. The comment recommended that if testers are
funded, procedures should be adopted to ensure that:
(1) Safeguards are implemented to distinguish between an isolated
incident and patterns and practices of unlawful discrimination:
(2) A thorough review of the procedures and results of the May 1992
FHIP Notice of Funding Availability (NOFA) for testing discriminatory
mortgage lending practices is conducted and made public prior to
additional funding;
(3) A public comment period for annual reviews of listed non-profit
organizations eligible for funding is established to provide the public
with the opportunity to comment on the integrity of the organizations
listed prior to any grant agreements; and
(4) Procedures are established to rescind funding awards for
grantees that do not meet specific performance measures determined by
HUD in the grant process.
In response to this comment, the Department first of all wants to
make it clear that testing activities will continue to be funded. Both
Congress and the Department have determined that testing is a valid and
necessary component of fair housing investigative and enforcement
activities. Congress had the choice of permitting FHIP to expire at the
end of its demonstration period, or of establishing it as a permanent
program, and it chose the latter option. In establishing FHIP as a
permanent program with section 905, Congress explicitly cites testing,
and it cites it first, in the listing of Private Enforcement Initiative
activities. Further, the definitions of QFHOs and FHOs added by section
905 require testing as an activity that organizations must be engaged
in to qualify as QFHOs or FHOs. The role of testing as a basic fair
housing investigative and enforcement activity is firmly established.
Having acknowledged the integral status of testing in the Fair
Housing Initiatives Program, the Department makes the following
responses to this comment's four recommendations. First, regarding the
implementation of safeguards to distinguish between an isolated
incident and patterns and practices of unlawful discrimination, this
recommendation appears to miss the point that it is not necessary to
have a pattern of unlawful discrimination to constitute a violation of
the Fair Housing Act. A single instance of unlawful discrimination
would be just that: unlawful and a violation.
The comment's second recommendation, to wait for a thorough review
of the results of the testing funded by the May 1992 NOFA before
funding additional testing, will not be followed, in light of the
central role of testing in the FHIP. The May 1992 funding is limited to
testing of mortgage lending practices, one of many permissible
activities under the FHIP, and is incorrectly characterized by this
comment as a ``pilot-program.'' It provides no basis on which to delay
the funding of additional testing.
The comment's third recommendation, to provide an opportunity for
public comment on the integrity of non-profit organizations eligible
for funding, requests a procedure that is highly inappropriate. Such a
procedure impugns the entire class of applicants, and has nothing to do
with the quality of the applications submitted for funding, the sole
consideration in awarding funds.
The Department agrees with this comment's fourth recommendation,
and believes it is particularly appropriate in the context of multi-
year contracts, where the opportunity is present for an annual
performance review. The rule would make funding of multi-year contracts
not only contingent upon the availability of funds, but also subject to
a performance review of the previous year's activities.
Another of the comments also addressed the Private Enforcement
Initiative changes made by section 905. This comment recognized the two
broad categories of eligible activities under this initiative as
investigative activities and enforcement activities. It suggested that
investigations include, but not be limited to, testing, and that
enforcement activities should also be interpreted broadly to provide
complainants with a range of resolutions for fair housing complaints.
The comment included lists of specific investigative and enforcement
activities that should be eligible for FHIP funding.
As explained below, the Department intends to implement the
statutory requirements of section 905 in this rule, and to provide more
specific guidance within this statutory framework in NOFAs that will be
published as funds are appropriated. This NOFA guidance would include a
listing of specific activities, and to that extent, the Department
agrees with the recommendation of this comment.
The comment also addresses the issues of multi-year funding, and
recommends that this funding be limited to organizations that meet the
definition of a QFHO and that have successfully performed fair housing
enforcement activities for two or more consecutive years immediately
preceding their application. While section 905 does not itself limit
multi-year funding in this way, it does permit the Department to ``take
such other action as is appropriate to enhance the effectiveness of
such investigations and enforcement activities.'' Limiting the class of
eligible organizations, if it enhanced the effectiveness of the
activities, would, therefore, be permissible. However, to allow for
program flexibility, because the Department cannot foresee every
instance in which such a limitation might or might not be appropriate,
this rule would not include the limitation. Such a limitation may
appear in program NOFAs, to the extent determined appropriate to
enhance effectiveness.
The comment then suggests that all of the kinds of activities
listed in the Private Enforcement Initiatives should be eligible for
funding and weighted equally, ``unless a finding is made that the
rental and sales discrimination investigation needs are met.'' The
Department takes this to mean that where rental and sales investigation
activities are already being vigorously pursued, other activities will
be given priority consideration for funding. This is sensible, and the
Department would adopt such an approach, as appropriate, in individual
NOFAs.
The comment later states that, ``Because matching funds for fair
housing are very difficult to come by and many organizations providing
fair housing education and enforcement activities rely upon Community
Development Block Grant funds, [the comment] recommends that HUD state
clearly that no groups eligible for FHIP funds will be penalized or
disqualified because they receive Community Development Block Grants to
perform similar activities in their communities.''
The Department recognizes that the FHIP resources made available to
meet fair housing needs are very limited. Because of this, grant
applicants are encouraged, under the current regulations, to seek other
public and private resources. Section 125.105(d) includes as an
application requirement, ``an estimate of such other public or private
resources as may be available to assist the proposed activities.'' One
of the selection criteria (at Sec. 125.106(a)(2)) is, ``The extent to
which the project utilizes other public or private resources that may
be available.'' The Department's current policy is to favor applicants
who are able to obtain other resources. Under this policy, the receipt
of CDBG funds for fair housing purposes should assist, rather than
penalize or disqualify, an applicant.
However, the Department recognizes that where resources are scarce,
difficult resource allocation decisions must be made. The Department is
considering changing its policy to reserve the right, when choosing
between two otherwise equally deserving applicants, to consider the
resources presently available to each. This approach ties in with the
earlier comment concerning ordering priorities where rental and sales
discrimination investigation needs are being met. That comment
suggested giving priority to other activities where investigation
activities were adequate. Similarly, although fair housing resource
needs may not be adequate for either of two competing applicants, the
Department may decide that an applicant receiving CDBG or other funds
for fair housing activities is in a better, though still inadequate,
position than an equally-qualified applicant that does not receive such
funds. In such an instance, the award of FHIP funds would be made to
the applicant that is most resource-poor. This would not be done to
penalize an applicant that has funds available from sources other than
FHIP, but to distribute scarce resources in the most equitable and
efficient manner. The Department specifically invites comment on this
issue.
To implement the new investigative and enforcement provisions,
subpart D of 24 CFR part 125 , entitled ``Private Enforcement
Initiative'', would be amended. Because the original statutory language
authorizing private enforcement initiatives is not removed but, rather,
is supplemented by HCDA section 905, the present statements of purpose,
eligible applicants, and eligible activities at Secs. 125.401, 125.402,
and 125.403, respectively, would not be replaced. Instead, new language
taken directly from section 905, as discussed above, would be added.
To permit flexibility in the funding of FHIP activities and permit
the Department to allocate resources in response to developments in the
field, the Department intends to provide more specific guidance as to
particular activities and such issues as the availability and terms of
multi-year funding in Notices of Funding Availability (NOFAs) rather
than in the rule. Emphasis in separate NOFAs may be placed on more
standard investigation and enforcement activities, such as testing,
providing or securing private legal representation, and filing
complaints; or on pursuing innovations in such areas as analysis and
mapping of HMDA and census data, appraisal and credit reports,
underwriting standards, and title searches. Similarly, depending on the
Department's identification of significant long term efforts that need
to be undertaken with the resources expected to be available, the NOFAs
would provide information on such multi-year funding issues as
applicants, activities, performance stages, amounts, and duration. The
use of NOFAs in this way is consistent with the current regulations at
Secs. 125.104(d), 125.105(h), and 125.106(b). Each of these sections
provides for more specific information concerning eligible activities,
application requirements, and selection criteria, respectively, to be
included in NOFAs. This proposed rule would provide for additional
flexibility in making FHIP funds available, as follows. Besides adding
the new Fair Housing Organizations Initiative, discussed immediately
below, to the list of FHIP Initiatives at Sec. 125.104(c), a clarifying
change would be made to Sec. 125.104(d) so that requirements related to
eligible applicants are specifically included in the list of items for
which NOFAs will provide guidance. Section 125.104(d) would also be
amended for the purpose of promoting flexibility to provide that the
specific selection criteria for funding will be included in FHIP NOFAs.
The rule would provide that the selection criteria announced in NOFAs
will be designed to permit the Department to respond to and target
areas of concern and will promote the purposes of the Fair Housing
Initiatives Program in an equitable and cost efficient manner. Section
125.106, which in the current rule contains the provisions concerning
selection criteria, would be revised to provide instead for a general
waiver provision, permitting the Department to waive, in a published
NOFA or other Federal Register notice, any program requirement in the
rule that is not required by statute.
Section 905 next establishes the Fair Housing Organizations
Initiative, which has two purposes: continued development of existing
fair housing organizations, and the establishment of new fair housing
organizations. For the purpose of continued development of existing
fair housing organizations, it authorizes the funding of contracts or
cooperative agreements with qualified fair housing enforcement
organizations, other private nonprofit fair housing enforcement
organizations, and nonprofit groups organizing to build their capacity
to provide fair housing enforcement, for the purpose of supporting the
continued development or implementation of initiatives which enforce
the rights granted under the Fair Housing Act. The statute specifies
that these contracts or cooperative agreements may not provide more
than 50 percent of the operating budget of the recipient organization
for any one year.
Funds made available under the Fair Housing Organizations
Initiative are also to be used to help establish, organize, and build
the capacity of fair housing enforcement organizations, particularly in
those areas of the country which are currently underserved by fair
housing enforcement organizations, as well as those areas where large
concentrations of protected classes exist. To meet the objectives of
this ``establishing new organizations'' purpose, the Department is
permitted to enter into contracts or cooperative agreements with
qualified fair housing enforcement organizations.
One comment recommends that this section 905 provision should be
regarded as establishing a ``non-competitive, entitlement category to
provide general operating funds'' for QFHOs, for the continued
development or implementation of initiatives which enforce the rights
granted under the Fair Housing Act. The Department may, in the future,
consider such an approach, depending upon the size of the
appropriations for this purpose, and the number of QFHOs that would
receive assistance. Given the present level of available FHIP funding,
entitlement funding would not seem to be an efficient method of
implementing FHIP. The crucial issue, apart from developing a formula
that would distribute funds equitably and with the flexibility to
respond to new developments and perceptions, is whether such a funding
procedure would provide a meaningful level of support for qualifying
organizations. The Department specifically invites comment on the issue
of distributing FHIP funds according to an allocation formula, and on
what criteria might be used to provide for the fair and equitable
distribution of funds on such a basis. Although the Department will
continue to award FHIP funds on a competitive basis through the
publication of NOFAs, consistent with the current regulation at
Sec. 125.104(b), this section would be amended to permit the Department
to award funds through the publication of a NOFA, or through a contract
or cooperative agreement.
A new subpart E, entitled ``Fair Housing Organizations
Initiative'', would be added to 24 CFR 125 to implement these
provisions. Section 125.501 would state the two-fold purpose, derived
from section 905, of this initiative: 1) to develop or expand the
ability of existing eligible organizations to provide fair housing
enforcement, and 2) to establish new fair housing enforcement
organizations where they are most needed. These two purposes would be,
titled, respectively, ``Continued Development of Existing
Organizations'' and ``Establishing New Organizations.''
Section 125.502 would list the eligible applicants and give the
parameters of the activities for the purpose of Continued Development
of Existing Organizations. Eligible applicants for funding under this
purpose would be: (1) Qualified fair housing enforcement organizations,
(2) other private nonprofit fair housing enforcement organizations, and
(3) nonprofit groups organizing to build their capacity to provide fair
housing enforcement. The third category of applicants would consist of
already existing non-profit organizations that do not presently have
the capacity to perform fair housing enforcement activities, but that
will use FHIP funds to develop that capacity.
The activities for which these organizations would be able to apply
would be any activities listed as eligible at Sec. 125.403 under the
Private Enforcement Initiative. It is significant to note that, but for
the establishment of the Fair Housing Organizations Initiative, non-
profit groups in the third category of eligible applicants listed in
the preceding paragraph would not be eligible for funding to undertake
Private Enforcement Initiative activities. The Fair Housing
Organizations Initiative expands the scope of fair housing enforcement
by giving such groups the opportunity to enter the field. In this way,
the total number of private nonprofit fair housing enforcement
organizations is increased. With respect to private nonprofit fair
housing enforcement organizations, whether or not ``qualified,'' who
are eligible to apply for Private Enforcement Initiative funding, the
Department believes that the Fair Housing Organizations Initiative is
intended to permit them to maintain or increase the magnitude of their
current activities, or to undertake initiatives in new areas.
Section 125.502 would also include the statutory prohibition,
applicable only to the ``Continued Development of Existing
Organizations'' purpose of this Initiative, against providing more than
50 percent of the operating budget of a recipient organization for any
one year. One comment recommended that ``operating budget'' for the
purpose of this provision should be defined to mean: ``Funds spent on
activities reasonably related to fair housing enforcement, including in
kind or pro-bono services such as (but not limited to) volunteer tester
services, board and staff time; pro-bono or reduced rate legal
services; and donation of office space and other overhead expenses.''
This definition appears to include in the total size of the operating
budget not only the actual expenditures of an organization in providing
services, but the value of materials and services donated to the
organization. This would have the effect of enlarging the total size of
the operating budget, and thereby increase the amount an organization
would be eligible to receive, taking into account the statutory 50
percent limitation.
This rule would adopt an even broader definition of ``operating
budget'' than proposed in the comment. The recommendation that only
``funds spent on activities reasonably related to fair housing
enforcement'' be counted would not be followed, because such a
provision would have a disproportionate impact on eligible applicants
in the statutory category of ``nonprofit groups organizing to build
their capacity to provide fair housing enforcement.'' The Department
proposes to define ``operating expenses'' as, ``the applicant's total
planned budget expenditures from all sources, including the value of
in-kind and monetary contributions, in the year for which funding is
sought.'' Comments on this issue are specifically invited.
Section 125.503 would be added to implement the ``Establishing New
Organizations'' purpose of the Fair Housing Organizations Initiative.
The eligible activity under this purpose would be ``to help establish,
organize, and build the capacity of fair housing enforcement
organizations.'' Priority would be given for such efforts ``in those
areas of the country which are currently underserved by fair housing
enforcement organizations, as well as those areas where large
concentrations of protected classes exist.''
The statute states the Department ``may enter into contracts or
cooperative agreements with qualified fair housing enforcement
organizations'' for purposes of meeting the objectives of establishing
new organizations. The Department has inferred that the use of the
permissive term ``may'' rather than the mandatory term ``shall'' (which
is used, for example, in listing the eligible applicants for the
purpose of continued development) in citing qualified fair housing
enforcement organizations as eligible for funding under this purpose
means that QFHOs were not intended to have an exclusive eligibility for
``Establishing New Organizations'' funding. Addressing the national
need for private fair housing enforcement organizations, ``particularly
in those areas of the country which are currently underserved by fair
housing enforcement organizations as well as those areas where large
concentrations of protected classes exist'' as required by section 905,
would best be served by making this category of funding broadly
available. This rule would make funding to establish enforcement
organizations in targeted areas available to any eligible applicant
under any of the other FHIP Initiatives.
The Department proposes to use a comparatively simple process to
determine where the very limited amount of funds available for
establishing new fair housing enforcement organizations will be made
available, consistent with the statutory priority of targeting
underserved areas with large concentrations of protected classes.
Target areas will be identified by the Department on the basis of a
number of factors including, for example, the amount of funds
available; the absence in an area of substantially equivalent State or
local agencies, or private enforcement groups; and the presence of
large concentrations of protected classes. To encourage establishing
organizations where they are needed most, not only underserved, but
also, unserved areas would be identified for funding by the Department.
Addressing both underserved and unserved areas here would be consistent
with the new Private Enforcement Initiative activity, added by section
905, of carrying out testing and other investigative activities,
including building the capacity for housing investigative activities in
unserved or underserved areas. The target areas identified in this way
would be announced in the FHIP Notices of Funding Availability as they
are published in the Federal Register.
Section 905 also makes a number of additions to the Education and
Outreach Initiative of FHIP, addressing national (including national
fair housing month), regional and local, and community-based programs
or activities. As with most of the other section 905 amendments, the
existing subpart C--Education and Outreach Initiative at 24 CFR 125 is
not superseded but augmented with these statutory changes.
All three of the comments received were enthusiastic in their
endorsement of education and outreach activities. One of the comments
included lists of specific activities to be considered as national,
regional and local, or community-based programs. The Department intends
to include the statutory requirements in this rule, and then provide
more specific guidance in the NOFAs published for the Fair Housing
Initiatives Program. This is the approach used under the current FHIP
regulation and that would continue to be used to allow for flexibility
in the administration of the program.
The statutory amendments require that national education and
outreach programs be designed to provide a centralized, coordinated
effort for the development and dissemination of fair housing media
products, including--
(1) public service announcements, both audio and video;
(2) television, radio and print advertisements;
(3) posters; and
(4) pamphlets and brochures.
In addition, a portion of the amounts provided for a national program
would be designated for activities related to the annual national fair
housing month, which would also be made eligible activities in the
proposed rule.
Eligible for national program funding are qualified fair housing
enforcement organizations, other fair housing enforcement
organizations, and other nonprofit organizations representing groups of
persons protected under the Fair Housing Act. Cooperation with real
estate industry organizations in national education and outreach
programs is encouraged by the statute, although they are not
specifically listed as eligible for funding. These organizations would
be eligible for Education and Outreach Initiative funding as ``other
public or private entities that are formulating or carrying out
programs to prevent or eliminate discriminatory housing practices''
under the current FHIP regulation, which generally is not superseded,
but augmented, by the HCDA 1992 section 905 amendments. To implement
the statutory mandate to encourage cooperation, a preference in FHIP
NOFAs of several points would be given to applicants that demonstrate
cooperation with real estate industry organizations.
The statute specifically encourages the dissemination in national
programs of educational information and technical assistance to support
compliance with the housing adaptability and accessibility requirements
contained in the Fair Housing Amendments Act of 1988. This goal would
also be addressed by providing a preference of several points in FHIP
NOFAs to applications that proposed such activities.
With respect to regional and local programs, section 905 cites as
eligible to receive FHIP funds State and local agencies certified by
the Department under section 810(f) of the Fair Housing Act, or other
public or private entities that are formulating or carrying out
programs to prevent or eliminate discriminatory housing practices.
Unlike the case of the national program, section 905 does not
specifically list any eligible activities for regional and local
programs. The rule would make any activities eligible as national
program activities also eligible as regional or local activities. The
rule would define activities that are ``local'' in scope as activities
that are limited to a single unit of general local government, meaning
a city, town, township, county, parish, village, or other general
purpose political subdivision of a State. Activities that are
``regional'' in scope would be defined as activities that cover
adjoining States or two or more units of general local government
within a state.
Finally, section 905 makes FHIP funding eligible to support
community-based education and outreach activities, including school,
church, and community presentations, conferences, and other educational
activities. The rule would make any activities eligible as national
program activities also eligible as community-based activities.
Eligible for community-based program funding are fair housing
organizations and other nonprofit organizations representing groups of
persons protected under the Fair Housing Act, or other public or
private entities that are formulating or carrying out programs to
prevent or eliminate discriminatory housing practices. The rule would
define activities that are ``community-based'' in scope as those which
are primarily focused on a particular geographic area within a unit of
general local government.
To implement these statutory amendments, Sec. 125.302(b) would be
amended to include qualified fair housing enforcement organizations,
other fair housing enforcement organizations, and other nonprofit
organizations representing groups of persons protected under the Fair
Housing Act, to the list of eligible applicants. Section 125.303,
entitled ``Eligible activities'', would be more extensively revised.
The current listings of eligible activities, categorized according to
educational projects and outreach projects, would be combined into a
single category under Sec. 125.303(a) with the paragraph heading, ``In
general.'' This change would recognize that the current regulation has
been augmented and not superseded. It would also recognize that the
distinction between ``education'' activities and ``outreach''
activities is not hard and fast. This rule would consider ``education
and outreach'' as a phrase modifying a single category of activities.
Paragraphs (b) through (d) of Sec. 125.303 would be organized to
cover, respectively, national (including national fair housing month),
regional and local, and community-based programs, as discussed above.
III. Findings and Certifications
Environmental Review
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR Part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969. The Finding of No Significant Impact is available for
public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the
Office of the Rules Docket Clerk at the above address.
Impact on Small Entities
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this proposed rule before publication and
by approving it certifies that this rule does not have a significant
economic impact on a substantial number of small entities. The purpose
of the rule is to provide funding for fair housing investigation and
enforcement, and education and outreach activities.
Regulatory Agenda
This proposed rule was listed as item number 1666 in the
Department's Semiannual Agenda of Regulations published on April 25,
1994 (59 FR 20424, 20465) pursuant to Executive Order 12291 and the
Regulatory Flexibility Act.
Federalism Impact
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this rule will not have substantial direct effects on
states or their political subdivisions, or the relationship between the
federal government and the states, or on the distribution of power and
responsibilities among the various levels of government. As a result,
the rule is not subject to review under the order. The rule is limited
to implementing statutorily required revisions to the existing Fair
Housing Initiatives Program Regulation.
Impact on the Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule has potential
for a beneficial, although indirect, impact on family formation,
maintenance, and general well-being. By promoting the values of fair
housing, the rule would benefit families by seeking to end
discrimination as a factor in the availability of housing. Accordingly,
since the impact on the family is beneficial, although indirect, no
further review is considered necessary.
The Catalog of Federal Domestic Assistance Numbers for the Fair
Housing Initiatives Program are 14.408, 14.409, 14.410 and 14.413.
List of Subjects in 24 CFR Part 125
Fair housing, Grant programs--housing and community development,
Reporting and recordkeeping requirements.
Accordingly, the Department proposes to amend part 125 of title 24
of the Code of Federal Regulations as follows:
PART 125--FAIR HOUSING INITIATIVES PROGRAM
1. The authority citation for part 125 would be revised to read as
follows:
Authority: 42 U.S.C. 3616 note; 42 U.S.C. 3535(d).
2. In Sec. 125.103, the paragraph designations (a) through (h)
would be removed, and the definitions of expert witness, fair housing
enforcement organization, meritorious claims, and qualified fair
housing enforcement organization would be added in alphabetical order
to read as follows:
Sec. 125.103 Definitions.
* * * * *
Expert witness means a person who testifies, or who would have
testified but for a resolution of the case before a verdict is entered,
and who qualifies as an expert witness under the rules of the court
where the litigation funded by this part is brought.
* * * * *
Fair housing enforcement organization (FHO) means any organization
that--
(1) Is organized as a private, tax-exempt, nonprofit, charitable
organization;
(2) Is currently engaged in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims; and
(3) Upon the receipt of FHIP funds will continue to be engaged in
complaint intake, complaint investigation, testing for fair housing
violations and enforcement of meritorious claims.
(4) To be eligible to receive assistance under the Private
Enforcement Initiative, a fair housing enforcement organization must
have at least 1 year of experience in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims. For the purpose of meeting this 1 year
qualification period, it is not necessary that the activities were
conducted simultaneously, as long as each activity was conducted for 1
year. It is also not necessary for the activities to have been
conducted for a continuous year. An organization may aggregate its
experience in each activity over the 2 year period preceding its
application to meet this 1 year qualification period requirement.
(5) The Department may request an organization to submit
documentation to support its claimed status as an FHO.
* * * * *
Meritorious claims means enforcement activities that resulted in
lawsuits, consent decrees, legal settlements, HUD conciliations and
agency initiated settlements with the outcome of monetary awards for
compensatory and/or punitive damages to plaintiffs or complaining
parties, or affirmative relief and monitoring.
* * * * *
Qualified fair housing enforcement organization (QFHO) means any
organization, whether or not it is solely engaged in fair housing
enforcement activities, that:
(1) Is organized as a private, tax-exempt, nonprofit, charitable
organization:
(2) Has at least 2 years experience in complaint intake, complaint
investigation, testing for fair housing violations and enforcement of
meritorious claims; and
(3) Is engaged in complaint intake, complaint investigation,
testing for fair housing violations and enforcement of meritorious
claims at the time of application for FHIP assistance.
(4) For the purpose of meeting the 2 year qualification period for
the activities included in paragraph (2) of this definition, it is not
necessary that the activities were conducted simultaneously, as long as
each activity was conducted for 2 years. It is also not necessary for
the activities to have been conducted for 2 consecutive or continuous
years. An organization may aggregate its experience in each activity
over the 3 year period preceding its application to meet the 2 year
qualification period requirement.
(5) The Department may request an organization to submit
documentation to support its claimed status as a QFHO.
* * * * *
3. In Sec. 125.104, paragraphs (b), (c)(2), (c)(3), and (d) would
be revised, and paragraph (c)(4) would be added, to read as follows:
Sec. 125.104 Program administration.
* * * * *
(b) Funding in the Fair Housing Initiatives Program will be awarded
through a Notice of Funding Availability under a grant or other funding
instrument.
(c) * * *
(2) The Education and Outreach Initiative (subpart C);
(3) The Private Enforcement Initiative (subpart D); and
(4) The Fair Housing Organizations Initiative (subpart E).
(d) Notices of Funding Availability under this program will be
published periodically in the Federal Register. Such notices will
announce the amount of funds available and the funding available for
any Initiative, and may limit funding to one or more of the Initiatives
or categories of eligible applicants. The Notice of Funding
Availability will include the specific factors for award which will be
used in the selection of recipients to be funded, and will indicate the
relative weight of all selection criteria. The selection criteria
announced in Notices of Funding Availability will be designed to permit
the Department to respond to and target areas of concern, and will
promote the purposes of the Fair Housing Initiatives Program in an
equitable and cost efficient manner.
* * * * *
4. Section 125.106 would be revised to read as follows:
Sec. 125.106 Waivers.
The Department may waive, in a published Notice of Funding
Availability or other Federal Register notice, any requirement in this
part that is not required by statute.
5. Section 125.204 would be added to read as follows:
Sec. 125.204 Testers.
Testers in testing activities funded with Administrative
Enforcement Initiative funds must not have prior felony convictions or
convictions of crimes involving fraud or perjury, and they must receive
training or be experienced in testing procedures and techniques.
6. In Sec. 125.302, paragraph (b) would be revised to read as
follows:
Sec. 125.302 Eligible applicants.
* * * * *
(b) Public or private non-profit organizations or institutions,
including qualified fair housing enforcement organizations, fair
housing enforcement organizations, and other nonprofit organizations
representing groups of persons protected under the Fair Housing Act,
and other public or private entities that are formulating or carrying
out programs to prevent or eliminate discriminatory housing practices.
7. Section 125.303 would be revised to read as follows:
Sec. 125.303 Eligible activities.
(a) In general. Projects that may be funded as national, regional
and local, or community-based programs under the Education and Outreach
Initiative may include (but are not limited to) the following:
(1) Developing informative material on fair housing rights and
responsibilities;
(2) Developing fair housing and affirmative marketing instructional
material for education programs for national, regional and local
housing industry groups;
(3) Providing educational seminars, curricula, and working sessions
for schools, civic associations, community-based organizations, and
other groups;
(4) Developing educational material targeted at persons in need of
specific or additional information on their fair housing rights;
(5) Developing national, regional or local media campaigns
regarding fair housing;
(6) Bringing housing industry and civic or fair housing groups
together to identify illegal real estate practices and to determine how
to correct them;
(7) Designing specialized outreach projects to inform all persons
of the availability of housing opportunities;
(8) Developing and implementing a response to new or more
sophisticated practices that result in discriminatory housing
practices;
(9) Providing housing, mortgage lending, appraisal, and insurance
counseling services; and
(10) Developing mechanisms for the identification of, and quick
response to, housing discrimination cases involving the threat of
physical harm.
(b) National programs. (1) Activities eligible to be funded as
national programs shall be designed to provide a centralized,
coordinated effort for the development and dissemination of fair
housing media products, including:
(i) Public service announcements, both audio and video;
(ii) Television, radio and print advertisements;
(iii) Posters;
(iv) Pamphlets and brochures; and
(v) Activities related to the annual national fair housing month.
(2) National program applications, including those for Fair Housing
Month funding, may be eligible to receive, as provided for in Notices
of Funding Availability published for the Fair Housing Initiatives
Program, a preference consisting of additional points if they:
(i) Demonstrate cooperation with real estate industry
organizations; and/or
(ii) Provide for the dissemination of educational information and
technical assistance to support compliance with the housing
adaptability and accessibility guidelines contained in the Fair Housing
Amendments Act of 1988.
(c) Regional and local programs. (1) Activities eligible to be
funded as regional and local programs include any of the activities, to
be implemented on a regional and/or local basis, listed in paragraphs
(a) and (b)(1) of this section.
(2) Activities that are ``local'' are activities whose
implementation is limited to a single unit of general local government,
meaning a city, town, township, county, parish, village, or other
general purpose political subdivision of a State. Activities that are
``regional'' are activities that are implemented in adjoining States or
two or more units of general local government within a state.
(d) Community-based programs. (1) Activities eligible to be funded
as community-based programs include any of the activities, to be
implemented on a regional or local basis, listed in paragraphs (a) and
(b)(1) of this section, with an emphasis on school, church, and
community presentations, conferences, and other educational activities.
(2) Activities that are ``community-based'' in scope are those
which are primarily focused on a particular geographic area within a
unit of general local government.
(e) Classes of competition. Notices of Funding Availability
published for the Fair Housing Initiatives Program may divide Education
and Outreach Initiative funding into separate competitions for each of
the separate types of programs (i.e., national, regional and/or local,
community-based) eligible under this Initiative.
(f) Coordination of activities. Each non-governmental applicant for
funding which is located within the jurisdiction of a State or local
enforcement agency or agencies administering a fair housing law that
has been certified by the Department under part 115 of this subchapter
as being a substantially equivalent fair housing law must provide with
its application evidence that it has consulted with the agency or
agencies to coordinate activities to be funded under the Education and
Outreach Initiative.
8. Section 125.401 would be revised to read as follows:
Sec. 125.401 Purpose.
The Private Enforcement Initiative of the Fair Housing Initiatives
Program provides funding to non-profit organizations and other private
entities that are formulating or carrying out programs to prevent or
eliminate discriminatory housing practices. The purpose of these awards
is to assist in developing, implementing, carrying out, or coordinating
programs or activities designed to obtain enforcement of the rights
granted by the Fair Housing Act or State or local laws that provide
rights and remedies for alleged discriminatory housing practices that
are substantially equivalent to the rights and remedies provided in the
Fair Housing Act, and to conduct, through funding of private nonprofit
fair housing enforcement organizations on a single- or multi-year basis
(subject to annual appropriations and annual performance reviews upon
which further funding would be contingent), investigations of
violations of the rights granted under the Fair Housing Act, and
appropriate enforcement activities to remedy such violations.
9. Section 125.402 would be revised to read as follows:
Sec. 125.402 Eligible applicants.
Organizations which are eligible to receive assistance under the
Private Enforcement Initiative are:
(a) Qualified fair housing organizations.
(b) Fair housing enforcement organizations with at least 1 year of
experience in complaint intake, complaint investigation, testing for
fair housing violations and enforcement of meritorious claims. For the
purpose of meeting this 1 year qualification period, it is not
necessary that the activities were conducted simultaneously, as long as
each activity was conducted for 1 year. It is also not necessary for
the activities to have been conducted for a continuous year. An
organization may aggregate its experience in each activity over the 2
year period preceding its application to meet this 1 year qualification
period requirement.
(c) Private non-profit organizations and other private entities
that are formulating or carrying out programs to prevent or eliminate
discriminatory housing practices. Organizations which can be eligible
include, for example, private nonprofit fair housing and civil rights
groups.
10. In Sec. 125.403, paragraphs (c) and (d) would be revised, and
new paragraphs (e) through (i) would be added to read as follows:
Sec. 125.403 Eligible activities.
* * * * *
(c) Linking fair housing organizations regionally in enforcement
activities designed to combat broader housing market discriminatory
practices;
(d) Establishing effective means of meeting legal expenses in
support of litigation of fair housing cases;
(e) Testing and other investigative activities, including building
the capacity for fair housing investigative activities in unserved or
underserved areas;
(f) Discovering and providing remedies for discrimination in the
public and private real estate markets and real estate-related
transactions, including, but not limited to, the making or purchasing
of loans or the provision of other financial assistance sales and
rentals of housing and housing advertising;
(g) Carrying out special projects, including the development of
prototypes to respond to new or sophisticated forms of discrimination
against persons protected under the Fair Housing Act;
(h) Providing technical assistance to local fair housing
organizations, and assisting in the formation and development of new
fair housing organizations; and
(i) Providing funds for the costs and expenses of litigation,
including expert witness fees.
10. Section 125.405 would be revised to read as follows:
Sec. 125.405 Testers.
Testers in testing activities funded with Private Enforcement
Initiative funds must not have prior felony convictions or convictions
of crimes involving fraud or perjury, and they must receive training or
be experienced in testing procedures and techniques.
11. A new subpart E, consisting of Secs. 125.501 through 125.504,
entitled Fair Housing Organizations Initiative, would be added to part
125 to read as follows:
Subpart E--Fair Housing Organizations Initiative
Sec.
125.501 Purpose.
125.502 Continued development of existing organizations.
125.503 Establishing new organizations.
125.504 Testers.
Subpart E--Fair Housing Organizations Initiative
Sec. 125.501 Purpose.
The Fair Housing Organizations Initiative of the Fair Housing
Initiatives Program provides funding to develop or expand the ability
of existing eligible organizations to provide fair housing enforcement,
and to establish new fair housing enforcement organizations where they
are most needed.
Sec. 125.502 Continued development of existing organizations.
(a) Eligible applicants. Applicants eligible for funding under this
component of the Fair Housing Organizations Initiative are:
(1) Qualified fair housing enforcement organizations;
(2) Other private nonprofit fair housing enforcement organizations;
and
(3) Nonprofit groups organizing to build their capacity to provide
fair housing enforcement.
(b) Eligible activities. Activities eligible for funding under this
component of the Fair Housing Organizations Initiative are any
activities listed as eligible at Sec. 125.403 under the Private
Enforcement Initiative.
(c) Operating budget limitation. (1) Funding under this component
of the Fair Housing Organizations Initiative may not be used to provide
more than 50 percent of the operating budget of a recipient
organization for any one year.
(2) For purposes of the limitation in this paragraph, operating
budget means the applicant's total planned budget expenditures from all
sources, including the value of in-kind and monetary contributions, in
the year for which funding is sought.
Sec. 125.503 Establishing new organizations.
(a) Eligible applicants. Any applicants eligible under any of the
other FHIP Initiatives are eligible applicants for funding under this
component of the Fair Housing Organizations Initiative.
(b) Eligible activities. Eligible for funding under this component
of the Fair Housing Organizations Initiative are activities that help
establish, organize, and build the capacity of fair housing enforcement
organizations, particularly in those areas of the country which are
currently underserved by fair housing enforcement organizations, as
well as those areas where large concentrations of protected classes
exist.
(c) Targeted areas. FHIP Notices of Funding Availability will
identify those areas of the country targeted for funding under this
component of the Fair Housing Organizations Initiative.
Sec. 125.504 Testers.
Testers in testing activities funded with Fair Housing
Organizations Initiative funds must not have prior felony convictions
or convictions of crimes involving fraud or perjury, and they must
receive training or be experienced in testing procedures and
techniques.
Dated: July 29, 1994.
Roberta Achtenberg,
Assistant Secretary for Fair Housing and Equal Opportunity.
[FR Doc. 94-21260 Filed 8-26-94; 8:45 am]
BILLING CODE 4210-28-P
