Section 109 of Title I of the Housing and Community Development Act of 1974

Information by State  Print version

24 CFR 6

TITLE 24--HOUSING AND URBAN DEVELOPMENT

PART 6--NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES RECEIVING ASSISTANCE UNDER TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974

Subpart A--General Provisions

Sec.
6.1 Purpose.
6.2 Applicability.
6.3 Definitions.
6.4 Discrimination prohibited.
6.5 Discrimination prohibited--employment.
6.6 Records to be maintained.

Subpart B--Enforcement

6.10 Compliance information.
6.11 Conduct of investigations.
6.12 Procedure for effecting compliance.
6.13 Hearings and appeals.

Authority: 42 U.S.C. 3535(d) 42 U.S.C. 5309.

Source: 64 FR 3797, Jan. 25, 1999, unless otherwise noted.

Subpart A--General Provisions

Sec. 6.1 Purpose.

The purpose of this part is to implement the provisions of section
109 of title I of the Housing and Community Development Act of 1974
(Title I) (42 U.S.C. 5309). Section 109 provides that no person in the
United States shall, on the ground of race, color, national origin,
religion, or sex, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or
activity funded in whole or in part with Federal financial assistance.
Section 109 does not directly prohibit discrimination on the bases of
age or disability, and the regulations in this part 6 do not apply to
age or disability discrimination in Title I programs. Instead, section
109 directs that the prohibitions against discrimination on the basis of
age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) (Age
Discrimination Act) and the prohibitions against discrimination on the
basis of disability under section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794) (Section 504) apply to programs or activities funded in
whole or in part with Federal financial assistance. Thus, the
regulations of 24 CFR part 8, which implement Section 504 for HUD
programs, and the regulations of 24 CFR part 146, which implement the
Age Discrimination Act for HUD programs, apply to disability and age
discrimination in Title I programs.

Sec. 6.2 Applicability.

(a) This part applies to any program or activity funded in whole or
in part with funds under title I of the Housing and Community
Development Act of 1974, including Community Development Block Grants--
Entitlement, State and HUD-Administered Small Cities, and Section 108
Loan Guarantees; Urban Development Action Grants; Economic Development
Initiative Grants; and Special Purpose Grants.
(b) The provisions of this part and sections 104(b)(2) and 109 of
Title I that relate to discrimination on the basis of race shall not
apply to the provision of Federal financial assistance by grantees under
this title to the Hawaiian Homelands (42 U.S.C. 5309).
(c) The provisions of this part and sections 104(b)(2) and 109 of
Title I that relate to discrimination on the basis of race and national
origin shall not apply to the provision of Federal financial assistance
to grant recipients under the Native American Housing Assistance and
Self-Determination Act (25 U.S.C. 4101). See also, 24 CFR 1003.601(a).

Sec. 6.3 Definitions.

The terms Department, HUD, and Secretary are defined in 24 CFR part
5. Other terms used in this part 6 are defined as follows:
Act means the Housing and Community Development Act of 1974, as
amended (42 U.S.C. 5301-5320).
Assistant Secretary means the Assistant Secretary for Fair Housing
and Equal Opportunity.
Award Official means the HUD official who has been delegated the
Secretary's authority to implement a Title I funded program and to make
grants under that program.
Complete complaint means a written statement that contains the
complainant's name and address, identifies the Recipient against which
the complaint is made, and describes the Recipient's alleged
discriminatory action in sufficient detail to inform HUD of the nature
and date of the alleged violation of section 109. It shall be signed by
the complainant or by someone authorized to do so on his or her behalf.
Complaints filed on behalf of classes or third parties shall describe or
identify (by name, if possible) the alleged victims of discrimination.
Federal financial assistance means: (1) Any assistance made
available under title I of the Housing and Community

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Development Act of 1974, as amended, and includes income generated from
such assistance, and any grant, loan, contract, or any other
arrangement, in the form of:
(i) Funds;
(ii) Services of Federal personnel; or
(iii) Real or personal property or any interest in or use of such
property, including:
(A) Transfers or leases of the property for less than fair market
value or for reduced consideration; and
(B) Proceeds from a subsequent transfer or lease of the property if
the Federal share of its fair market value is not returned to the
Federal Government.
(2) Any assistance in the form of proceeds from loans guaranteed
under section 108 of the Act, but does not include assistance made
available through direct Federal procurement contracts or any other
contract of insurance or guaranty.
Program or activity (funded in whole or in part) means all of the
operations of--
(1)(i) A department, agency, special purpose district, or other
instrumentality of a State or local government; or
(ii) The entity of a State or local government that distributes
Federal financial assistance, and each department or agency (and each
State or local government entity) to which the assistance is extended,
in the case of assistance to a State or local government;
(2)(i) A college, university, or other post-secondary institution,
or a public system of higher education; or
(ii) A local educational agency (as defined in section 198(a)(10) of
the Elementary and Secondary Education Act of 1965), system of
vocational education or other school system;
(3)(i) An entire corporation, partnership, or other private
organization, or an entire sole proprietorship--
(A) If assistance is extended to the corporation, partnership,
private organization, or sole proprietorship as a whole; or
(B) Which is principally engaged in the business of providing
education, health care, housing, social services, or parks and
recreation; or
(ii) The entire plant or other comparable, geographically separate
facility to which Federal financial assistance is extended, in the case
of any other corporation, partnership, private organization, or sole
proprietorship; or
(4) Any other entity that is described in paragraphs (1), (2), or
(3) of this definition, any part of which is extended Federal financial
assistance.
Recipient means any State, political subdivision of any State, or
instrumentality of any State or political subdivision; any public or
private agency, institution, organization, or other entity; or any
individual, in any State, to whom Federal financial assistance is
extended, directly or through another Recipient, for any program or
activity, or who otherwise participates in carrying out such program or
activity, including any successor, assign, or transferee thereof.
Recipient does not include any ultimate beneficiary under any program or
activity.
Responsible Official means the Assistant Secretary for Fair Housing
and Equal Opportunity or his or her designee.
Section 109 means section 109 of the Housing and Community
Development Act of 1974, as amended.
Title I means title I of the Housing and Community Development Act
of 1974 (42 U.S.C. 5301-5321).

Sec. 6.4 Discrimination prohibited.

(a) Section 109 requires that no person in the United States shall
be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity funded in
whole or in part with Federal financial assistance, on the grounds of
race, color, national origin, religion, or sex.
(1) A Recipient under any program or activity to which this part
applies may not, directly or through contractual, licensing, or other
arrangements, take any of the following actions on the grounds of race,
color, national origin, religion, or sex:
(i) Deny any individual any facilities, services, financial aid, or
other benefits provided under the program or activity;
(ii) Provide any facilities, services, financial aid, or other
benefits that are different, or are provided in a different

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form, from that provided to others under the program or activity;
(iii) Subject an individual to segregated or separate treatment in
any facility, or in any matter of process related to the receipt of any
service or benefit under the program or activity;
(iv) Restrict an individual's access to, or enjoyment of, any
advantage or privilege enjoyed by others in connection with facilities,
services, financial aid or other benefits under the program or activity;
(v) Treat an individual differently from others in determining
whether the individual satisfies any admission, enrollment, eligibility,
membership, or other requirements or conditions that the individual must
meet in order to be provided any facilities, services, or other benefit
provided under the program or activity;
(vi) Deny an individual an opportunity to participate in a program
or activity as an employee;
(vii) Aid or otherwise perpetuate discrimination against an
individual by providing Federal financial assistance to an agency,
organization, or person that discriminates in providing any housing,
aid, benefit, or service;
(viii) Otherwise limit an individual in the enjoyment of any right,
privilege, advantage, or opportunity enjoyed by other individuals
receiving the housing, aid, benefit, or service;
(ix) Use criteria or methods of administration that have the effect
of subjecting persons to discrimination or have the effect of defeating
or substantially impairing accomplishment of the objectives of the
program or activity with respect to persons of a particular race, color,
national origin, religion, or sex; or
(x) Deny a person the opportunity to participate as a member of
planning or advisory boards.
(2) In determining the site or location of housing, accommodations,
or facilities, a Recipient may not make selections that have the effect
of excluding persons from, denying them the benefits of, or subjecting
them to discrimination on the ground of race, color, national origin,
religion, or sex. The Recipient may not make selections that have the
purpose or effect of defeating or substantially impairing the
accomplishment of the objectives of section 109 and of this part 6.
(3)(i) In administering a program or activity in which the Recipient
has discriminated on the grounds of race, color, national origin,
religion or sex, the Recipient must take any necessary steps to overcome
the effects of prior discrimination.
(ii) In the absence of discrimination, a Recipient, in administering
a program or activity, may take any steps necessary to overcome the
effects of conditions that resulted in limiting participation by persons
of a particular race, color, national origin, religion, or sex.
(iii) After a finding of noncompliance, or after a Recipient has
reasonable cause to believe that discrimination has occurred, a
Recipient shall not be prohibited by this section from taking any action
eligible under subpart C of 24 CFR part 570 to ameliorate an imbalance
in benefits, services or facilities provided to any geographic area or
specific group of persons within its jurisdiction, where the purpose of
such action is to remedy discriminatory practices or usage.
(iv)(A) Notwithstanding anything to the contrary in this part,
nothing contained in this section shall be construed to prohibit any
Recipient from maintaining or constructing separate living facilities or
restroom facilities for the different sexes in order to protect personal
privacy or modesty concerns. Furthermore, selectivity on the basis of
sex is not prohibited when institutional or custodial services can, in
the interest of personal privacy or modesty, only be performed by a
member of the same sex as those receiving the services.
(B) Section 109 of the Act does not directly prohibit discrimination
on the basis of age or disability, but directs that the prohibitions
against discrimination on the basis of age under the Age Discrimination
Act and the prohibitions against discrimination on the basis of
disability under Section 504 apply to Title I programs and activities.
Accordingly, for programs or activities receiving Federal financial
assistance, the regulations in this part 6 apply to discrimination on
the bases of race, color, national origin, religion, or

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sex; the regulations at 24 CFR part 8 apply to discrimination on the
basis of disability; and the regulations at 24 CFR part 146 apply to
discrimination on the basis of age.
(b) [Reserved]

Sec. 6.5 Discrimination prohibited--employment.

(a) General. A Recipient may not, under any program or activity
funded in whole or in part with Federal financial assistance, directly
or through contractual agents or other arrangements including contracts
and consultants, subject a person to discrimination in the terms and
conditions of employment. Terms and conditions of employment include
advertising, interviewing, selection, promotion, demotion, transfer,
recruitment and advertising, layoff or termination, pay or other
compensation, including benefits, and selection for training.
(b) Determination of compliance status. The Assistant Secretary will
follow the procedures set forth in this part and 29 CFR part 1691 and
look to the substantive guidelines and policy of the Equal Employment
Opportunity Commission when reviewing employment practices under Section
109.

Sec. 6.6 Records to be maintained.

(a) General. Recipients shall maintain records and data as required
by 24 CFR 91.105, 91.115, 570.490, and 570.506.
(b) Employment. Recipients shall maintain records and data as
required by the Equal Employment Opportunity Commission at 29 CFR part
1600.
(c) Recipients shall make available such records and any supporting
documentation upon request of the Responsible Official.

(Approved by the Office of Management and Budget under control numbers
2506-0117 and 2506-0077.)

Subpart B--Enforcement

Sec. 6.10 Compliance information.

(a) Cooperation and assistance. The Responsible Official and the
Award Official will provide assistance and guidance to Recipients to
help them comply voluntarily with this part.
(b) Access to data and other sources of information. Each Recipient
shall permit access by authorized representatives of HUD to its
facilities, books, records, accounts, minutes and audio tapes of
meetings, personnel, computer disks and tapes, and other sources of
information as may be pertinent to a determination of whether the
Recipient is complying with this part. Where information required of a
Recipient is in the exclusive possession of any other agency,
institution, or person, and that agency, institution, or person fails or
refuses to furnish this information, the Recipient shall so certify in
any requested report and shall set forth what efforts it has made to
obtain the information. Failure or refusal to furnish pertinent
information (whether maintained by the Recipient or some other agency,
institution, or person) without a credible reason for the failure or
refusal will be considered to be noncompliance under this part.
(c) Compliance data. Each Recipient shall keep records and submit to
the Responsible Official, timely, complete, and accurate data at such
times and in such form as the Responsible Official may determine to be
necessary to ascertain whether the Recipient has complied or is
complying with this part.
(d) Notification to employees, beneficiaries, and participants. Each
Recipient shall make available to employees, participants,
beneficiaries, and other interested persons information regarding the
provisions of this part and its applicability to the program or activity
under which the Recipient receives Federal financial assistance and make
such information available to them in such manner as the Responsible
Official finds necessary to apprise such persons of the protections
against discrimination assured them by Section 109 and this part.

Sec. 6.11 Conduct of investigations.

(a) Filing a complaint--(1) Who may file. Any person who believes
that he or she has been subjected to discrimination prohibited by this
part may file, or may have an authorized representative file on his or
her behalf, a complaint with the Responsible Official. Any person who
believes that any specific class of persons has been subjected to
discrimination prohibited by this part and who is a member of that

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class or who is the authorized representative of a member of that class
may file a complaint with the Responsible Official.
(2) Confidentiality. Generally, the Responsible Official shall hold
in confidence the identity of any person submitting a complaint, unless
the person submits written authorization otherwise. However, an
exception to maintaining confidentiality of the identity of the person
may be required to carry out the purposes of this part, including the
conduct of any investigation, hearing, or proceeding under this part.
(3) When to file. Complaints shall be filed within 180 days of the
alleged act of discrimination, unless the Responsible Official waives
this time limit for good cause. For purposes of determining when a
complaint is filed under this part, a complaint mailed to the
Responsible Official via the U.S. Postal Service will be deemed filed on
the date it is postmarked. A complaint delivered to the Responsible
Official in any other manner will be deemed filed on the date it is
received by the Responsible Official.
(4) Where to file complaints. Complaints must be in writing, signed,
addressed to the Responsible Official, and filed with (mailed to or
otherwise delivered to) the Office of Fair Housing and Equal Opportunity
at any HUD Office.
(5) Content of complaints. Each complaint should contain the
complainant's name, address, and phone number; a description or name, if
available, of the Recipient alleged to have violated this part; an
address where the violation occurred; and a description of the
Recipient's alleged discriminatory action in sufficient detail to inform
the Responsible Official of the nature and date of the alleged violation
of this part.
(6) Amendments to complaints. Amendments to complaints, such as
clarification and amplification of allegations in a complaint or the
addition of other Recipients, may be made by the complainant or the
complainant's authorized representative at any time while the complaint
is being considered, and any amendment shall be deemed to be made as of
the original filing date.
(7) Notification. To the extent practicable, the Responsible
Official will notify the complainant and the Recipient of the
Responsible Official's receipt of a complaint within 10 calendar days of
receipt of a complete complaint. If the Responsible Official receives a
complaint that is not complete, the Responsible Official will notify the
complainant and specify the additional information that is needed to
make the complaint complete. If the complainant fails to complete the
complaint, the Responsible Official will close the complaint without
prejudice and notify the complainant. When a complete complaint has been
received, the Responsible Official, or his or her designee, will assess
the complaint for acceptance, rejection, or referral to an appropriate
Federal agency within 20 calendar days.
(8) Resolution of complaints. After the acceptance of a complete
complaint, the Responsible Official will investigate the complaint,
attempt informal resolution, and, if resolution is not achieved, the
Responsible Official will notify the Recipient and complainant, to the
extent practicable within 180 days of the receipt of the complete
complaint, of the results of the investigation in a letter of findings
sent by certified mail, return receipt requested, containing the
following:
(i) Findings of fact and a finding of compliance or noncompliance;
(ii) A description of an appropriate remedy for each violation
believed to exist; and
(iii) A notice of the right of the Recipient and the complainant to
request a review of the letter of findings by the Responsible Official.
A copy of the final investigative report will be made available upon
request.
(b) Compliance reviews--(1) Periodic compliance reviews. The
Responsible Official may periodically review the practices of Recipients
to determine whether they are complying with this part and may conduct
on-site reviews. The Responsible Official will initiate an on-site
review by sending to the Recipient a letter advising the Recipient of
the practices to be reviewed; the programs affected by the review; and
the opportunity, at any time before a final determination, to submit
information

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that explains, validates, or otherwise addresses the practices under
review. In addition, the Award Official will include, in normal program
compliance reviews and monitoring procedures, appropriate actions to
review and monitor compliance with general or specific program
requirements designed to implement the requirements of this part.
(2) Time period of the review. (i) For the Entitlement program,
compliance reviews will cover the three years before the date of the
review.
(ii) For the Urban Development Action Grant (UDAG) program, the
compliance review is applicable only to UDAG loan repayments or other
payments or revenues classified as program income. UDAG repayments or
other payments or revenues classified as miscellaneous revenue are not
subject to compliance review under this part. (See 24 CFR 570.500(a).)
The compliance review will cover the time period that program income is
being repaid.
(iii) For the State and HUD-Administered Small Cities programs, the
compliance review will cover the four years before the date of the
review.
(iv) For all other programs, the time period covered by the review
will be four years before the date of the review.
(v) On a case-by-case basis, at the discretion of the Responsible
Official, the above time frames for review can be expanded where facts
or allegations warrant further investigation.
(3) Early compliance resolution. On the last day of the on-site
visit, after the compliance review, the Recipient will be given an
opportunity to supplement the record. Additionally, a prefinding
conference may be held and a summary of the proposed findings may be
presented to the Recipient. In those instances where the issue(s) cannot
be resolved at a prefinding conference or with the supplemental
information, a meeting will be scheduled to attempt a voluntary
settlement.
(4) Notification of findings. (i) The Assistant Secretary will
notify the Recipient of Federal financial assistance of the results of
the compliance review in a letter of findings sent by certified mail,
return receipt requested.
(ii) Letter of findings. The letter of findings will include the
findings of fact and the conclusions of law; a description of a remedy
for each violation found; and a notice that a copy of HUD's final report
concerning its compliance review will be made available, upon request,
to the Recipient.
(c) Right to a review of the letter of findings. (1) Within 30 days
of receipt of the letter of findings, any party may request that a
review be made of the letter of findings, by mailing or delivering to
the Responsible Official, Room 5100, Office of Fair Housing and Equal
Opportunity, HUD, Washington, DC 20410, a written statement of the
reasons why the letter of findings should be modified.
(2) The Responsible Official will send by certified mail, return
receipt requested, a copy of the request for review to all parties.
Parties other than the party requesting review and HUD shall have 20
days from receipt to respond to the request for review.
(3) The Responsible Official will either sustain or modify the
letter of findings or require that further investigation be conducted,
within 60 days of the request for review. The Responsible Official's
decision shall constitute the formal determination of compliance or
noncompliance.
(4) If no party requests that the letter of findings be reviewed,
the Responsible Official, within 14 calendar days of the expiration of
the time period in paragraph (a)(9)(i) of this section, will send a
formal written determination of compliance or noncompliance to all
parties.
(d) Voluntary compliance time limits. The Recipient will have 10
calendar days from receipt of the letter of findings of noncompliance,
or such other reasonable time as specified in the letter, within which
to agree, in writing, to come into voluntary compliance or to contact
the Responsible Official for settlement discussions. If the Recipient
fails to meet this deadline, HUD will proceed in accordance with
Secs. 6.12 and 6.13.
(e) Informal resolution/voluntary compliance--(1) General. It is the
policy of

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HUD to encourage the informal resolution of matters. A complaint or a
compliance review may be resolved by informal means at any time. If a
letter of findings is issued, and the letter makes a finding of
noncompliance, the Responsible Official will attempt to resolve the
matter through a voluntary compliance agreement.
(2) Objectives of informal resolution/voluntary compliance. In
attempting informal resolution, the Responsible Official will attempt to
achieve a just resolution of the matter and to obtain assurances, where
appropriate, that the Recipient will satisfactorily remedy any
violations of the rights of any complainant, and will take such action
as will assure the elimination of any violation of this part or the
prevention of the occurrence of such violation in the future. If a
finding of noncompliance has been made, the terms of such an informal
resolution shall be reduced to a written voluntary compliance agreement,
signed by the Recipient and the Responsible Official, and be made part
of the file. Such voluntary compliance agreements shall seek to protect
the interests of the complainant (if any), other persons similarly
situated, and the public.
(3) Right to file a private civil action. At any time in the
process, the complainant has the right to file a private civil action.
If the complainant does so, the Responsible Official has the discretion
to administratively close the investigation or continue the
investigation, if he or she decides that it is in the best interests of
the Department to do so. If the Responsible Official makes a finding of
noncompliance and an agreement to voluntarily comply is not obtained
from the Recipient, the procedures at Secs. 6.12 and 6.13 for effecting
compliance shall be followed.
(f) Intimidatory or retaliatory acts prohibited. No Recipient or
other person shall intimidate, threaten, coerce, or discriminate against
any person for the purpose of interfering with any right or privilege
secured by this part, or because he or she has made a complaint,
testified, assisted, or participated in any manner in an investigation,
compliance review, proceeding, or hearing under this part.

Sec. 6.12 Procedure for effecting compliance.

(a) Whenever the Assistant Secretary determines that a Recipient of
Federal financial assistance has failed to comply with Section 109(a) or
this part and voluntary compliance efforts have failed, the Secretary
will notify the Governor of the State or the Chief Executive Officer of
the unit of general local government of the findings of noncompliance
and will request that the Governor or the Chief Executive Officer secure
compliance. If within a reasonable period of time, not to exceed 60
days, the Governor or the Chief Executive Officer fails or refuses to
secure compliance, the Secretary will:
(1) Refer the matter to the Attorney General with a recommendation
that an appropriate civil action be instituted;
(2) Exercise the powers and functions provided by Title VI;
(3) Terminate or reduce payments under Title I, or limit the
availability of payments under Title I to programs or activities not
affected by the failure to comply; or
(4) Take such other actions as may be provided by law, including but
not limited to, the initiation of proceedings under 24 CFR part 24 or
any applicable proceeding under State or local law.
(b) Termination, reduction, or limitation of the availability of
Title I payments. No order terminating, reducing, or limiting the
availability of Title I payments under this part shall become effective
until:
(1) The Secretary has notified the Governor of the State or the
Chief Executive Officer of the unit of general local government of the
Recipient's failure to comply in accordance with paragraph (a) of this
section and of the termination, reduction or limitation of the
availability of Title I payments to be taken;
(2) The Secretary has determined that compliance cannot be secured
by voluntary means;
(3) The Recipient has been extended an opportunity for a hearing in
accordance with Sec. 6.13(a); and
(4) A final agency notice or decision has been rendered in
accordance with paragraph (c) of this section or 24 CFR part 180.

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(c) If a Recipient does not respond to the notice of opportunity for
a hearing or does not elect to proceed with a hearing within 20 days of
the issuance of the Secretary's actions listed in paragraphs (b)(1), (2)
and (3) of this section, then the Secretary's approval of the
termination, reduction or limitation of the availability of Title I
payments is considered a final agency notice and the Recipient may seek
judicial review in accordance with section 111(c) of the Act.

Sec. 6.13 Hearings and appeals.

(a) When a Recipient requests an opportunity for a hearing, in
accordance with Sec. 6.12(b)(3), the General Counsel will follow the
notification procedures set forth in 24 CFR 180.415. The hearing, and
any petition for review, will be conducted in accordance with the
procedures set forth in 24 CFR part 180.
(b) After a hearing is held and a final agency decision is rendered
under 24 CFR part 180, the Recipient may seek judicial review in
accordance with section 111(c) of the Act.