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24 CFR 107
TITLE 24--HOUSING AND URBAN DEVELOPMENT
CHAPTER I--OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
PART 107--NONDISCRIMINATION AND EQUAL OPPORTUNITY IN HOUSING UNDER EXECUTIVE ORDER 11063
Sec.
107.10 Purpose.
107.11 Relation to other authorities.
107.15 Definitions.
107.20 Prohibition against discriminatory practices.
107.21 Prevention of discriminatory practices.
107.25 Provisions in legal instruments.
107.30 Recordkeeping requirements.
107.35 Complaints.
107.40 Compliance meeting.
107.45 Resolution of matters.
107.50 Compliance reviews.
107.51 Findings of noncompliance.
107.55 Compliance report.
107.60 Sanctions and penalties.
107.65 Referral to the Attorney General.
Authority: 42 U.S.C. 3535(d); E.O. 11063, 27 FR 11527, 3 CFR, 1958-
1963 Comp., p. 652; E.O. 12892, 59 FR 2939, 3 CFR, 1994 Comp., p. 849.
Source: 45 FR 59514, Sept. 9, 1980, unless otherwise noted.
Sec. 107.10 Purpose.
These regulations are to carry out the requirements of E.O. 11063
that all action necessary and appropriate be taken to prevent
discrimination because of race, color, religion (creed), sex or national
origin in the sale, rental, leasing or other disposition of residential
property and related facilities or in the use or occupancy thereof
[[Page 570]]
where such property or facilities are owned or operated by the Federal
Government, or provided with Federal assistance by the Department of
Housing and Urban Development and in the lending practices with respect
to residential property and related facilities of lending institutions
insofar as such practices relate to loans insured, guaranteed or
purchased by the Department. These regulations are intended to assure
compliance with the established policy of the United States that the
benefits under programs and activities of the Department which provide
financial assistance, directly or indirectly, for the provision,
rehabilitation, or operation of housing and related facilities are made
available without discrimination based on race, color, religion (creed),
sex or national origin. These regulations are also intended to assure
compliance with the policy of this Department to administer its housing
programs affirmatively, so as to achieve a condition in which
individuals of similar income levels in the same housing market area
have a like range of housing choices available to them regardless of
their race, color, religion (creed), sex or national origin.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985]
Sec. 107.11 Relation to other authorities.
(a) Where allegations of discrimination on the grounds of race,
color, or national origin are made in a program or activity of Federal
financial assistance of the Department which does not involve a contract
of insurance or guaranty, the provisions of title VI of the Civil Rights
Act of 1964 and regulations implementing title VI, Nondiscrimination in
Federally Assisted Programs, under part 1 of this title shall apply. Any
complaint alleging discrimination on the basis of race, color, religion
(creed), sex or national origin in a program or activity of the
Department involving a contract of insurance or guaranty will be
received and processed according to this part.
(b) Where a complaint filed pursuant to this part alleges a
discriminatory housing practice which is also covered by title VIII of
the Civil Rights Act of 1968, the complainant shall be advised of the
right to file a complaint pursuant to section 810 of that title and of
the availability of Department procedures regarding fair housing
complaints under part 105 of this title. The complainant shall also be
advised of the right to initiate a civil action in court pursuant to
section 812 of the Civil Rights Act of 1968 without first filing a
complaint with HUD.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985]
Sec. 107.15 Definitions.
(a) Department and Secretary are defined in 24 CFR part 5.
(b) State means each of the fifty states, the District of Columbia,
the Commonwealths of Puerto Rico and the Northern Marianas, and the
territories of the United States.
(c) Assistance includes (1) grants, loans, contributions, and
advances of Federal funds; (2) the grant or donation of Federal property
and interests in property; (3) the sale, lease, and rental of, and the
permission to use (on other than a casual or transient basis), Federal
property or any interest in such property without consideration or at a
nominal consideration or at a consideration which is reduced for the
purpose of assisting the recipient or in recognition of the public
interest to be served by such sale or lease to the recipient, when such
order granting permission accompanies the sale, lease, or rental of
Federal properties; (4) loans in whole or in part insured, guaranteed,
or otherwise secured by the credit of the Federal Government; and (5)
any Federal agreement, arrangement, or other contract which has as one
of its purposes the provision of assistance.
(d) Person includes one or more individuals, corporations,
partnerships, associations, labor organizations, legal representatives
or agents, mutual companies, joint-stock companies, trusts,
unincorporated organizations, trustees, trustees in bankruptcy,
receivers, fiduciaries and public entities.
(e) Public entity means a government or governmental subdivision or
agency.
(f) Discriminatory practice means: (1) Any discrimination on the
basis of race, color, religion (creed), sex or national origin or the
existence or use of
[[Page 571]]
a policy or practice, or any arrangement, criterion or other method of
administration which has the effect of denying equal housing opportunity
or which substantially impairs the ability of persons to apply for or
receive the benefits of assistance because of race, color, religion
(creed), sex or national origin, in the sale, rental or other
disposition of residential property or related facilities (including
land to be developed for residential use), or in the use or occupancy
thereof, where such property or related facilities are:
(i) Owned or operated by the Secretary;
(ii) Provided in whole or in part with the aid of loans, advances,
grants, or contributions agreed to be made by the Department after
November 20, 1962;
(iii) Provided in whole or in part by loans insured, guaranteed or
otherwise secured by the credit of the Department after November 20,
1962; or
(iv) Provided by the development or the redevelopment of real
property purchased, leased, or otherwise obtained from a State or local
public agency or unit of general purpose local government receiving
Federal financial assistance from the Department under a loan or grant
contract entered into after November 20, 1962.
(2) Any discrimination on the basis of race, color, religion
(creed), sex or national origin or the existence or use of a policy,
practice, or any arrangement, criterion or other method of
administration which has the effect of denying equal housing opportunity
or which substantially impairs the ability of persons to apply for or
receive the benefits of assistance because of race, color, religion
(creed), sex or national origin in lending practices with respect to
residential property and related facilities (including land to be
developed for residential use) of lending institutions, insofar as such
practices relate to loans, insured or guaranteed, by the Department
after November 20, 1962. Examples of discriminatory practices under
subsections (1) and (2) include but are not limited to the following
when based on race, color, religion (creed), sex or national origin:
(i) Denial to a person of any housing accommodations, facilities,
services, financial aid, financing or other benefit provided under a
program or activity;
(ii) Providing any housing accommodations, facilities, services,
financial aid, financing or other benefits to a person which are
different, or are provided in a different manner, from those provided to
others in a program or activity;
(iii) Subjecting a person to segregation or separate treatment in
any matter related to the receipt of housing, accommodations,
facilities, services, financial aid, financing or other benefits under a
program or activity;
(iv) Restricting a person in any way in access to housing,
accommodations, facilities, services, financial aid, financing or other
benefits, or in the enjoyment of any advantage or privilege enjoyed by
others in connection with such housing, accommodations, facilities,
services, financial aid, or other benefits under a program or activity;
(v) Treating persons differently in determining whether they satisfy
any occupancy, admission, enrollment, eligibility, membership, or other
requirement or condition which persons must meet in order to be provided
any housing, accommodations, facilities, services, financial aid,
financing or other benefits under a program or activity; and
(vi) Denying a person opportunity to participate in a program or
activity through the provision of services or otherwise, or affording
the person an opportunity to do so which is different from that afforded
others in a program or activity.
(3) Noncompliance with relevant affirmative fair housing marketing
requirements contained in Department programs and regulations.
(4) A formal finding of a violation of title VIII of the Civil
Rights Act of 1968 or a state or local fair housing law with respect to
activities also covered by E.O. 11063.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985; 61
FR 5205, Feb. 9, 1996]
Sec. 107.20 Prohibition against discriminatory practices.
(a) No person receiving assistance from or participating in any
program
[[Page 572]]
or activity of the Department involving housing and related facilities
shall engage in a discriminatory practice.
(b) Where such person has been found by the Department or any other
Federal Department, agency, or court to have previously discriminated
against persons on the ground of race, color, religion (creed), sex or
national origin, he or she must take affirmative action to overcome the
effects of prior discrimination.
(c) Nothing in this part precludes such person from taking
affirmative action to prevent discrimination in housing or related
facilities where the purpose of such action is to overcome prior
discriminatory practice or usage or to overcome the effects of
conditions which resulted in limiting participation by persons of a
particular race, color, religion (creed), sex or national origin.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985]
Sec. 107.21 Prevention of discriminatory practices.
All persons receiving assistance from, or participating in any
program or activity of the Department involving housing and related
facilities shall take all action necessary and proper to prevent
discrimination on the basis of race, color, religion (creed), sex or
national origin.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985]
Sec. 107.25 Provisions in legal instruments.
(a) The following documents shall contain provisions or statements
requiring compliance with E.O. 11063 and this part:
(1) Contracts, grants and agreements providing Departmental
assistance for the provision of housing and related facilities,
(2) Contracts, grants and agreements regarding the sale, rental or
management of properties owned by the Secretary,
(3) Corporate charters and regulatory agreements relating to
multifamily and land development projects assisted by the Department,
(4) Approvals of financial institutions and other lenders as
approved FHA mortgagees,
(5) Requests for subdivision reports under home mortgage procedures
and for preapplication analysis of multifamily and land development
projects, and
(6) Contracts and agreements providing for Departmental insurance or
guarantee of loans with respect to housing and related facilities.
(b) The provision or statement required pursuant to this section
shall indicate that the failure or refusal to comply with the
requirments of E.O. 11063 or this part shall be a proper basis for the
imposition of sanctions provided in Sec. 107.60.
Sec. 107.30 Recordkeeping requirements.
(a) All persons receiving assistance through any program or activity
of the Department involving the provision of housing and related
activities subject to Executive Order 11063 shall maintain racial,
religious, national origin and sex data required by the Department in
connection with its programs and activities.
(b) All lenders participating in Departmental mortgage insurance
programs, home improvement loan programs, GNMA mortgage purchase
programs, or special mortgage assistance programs, shall maintain data
regarding the race, religion, national origin and sex of each applicant
and joint applicant for assistance with regard to residential property
and related facilities. Racial data shall be noted in the following
categories: American Indian/Alaskan Native, Asian/Pacific Islander,
Black, White, Hispanic. If an applicant or joint applicant refuses to
voluntarily provide the information or any part of it, that fact shall
be noted and the information shall be obtained, to the extent possible,
through observation. Applications shall be retained for a period of at
least twenty-five (25) months following the date the record was made.
(c) If an investigation or compliance review under this part reveals
a failure to comply with any of the requirements of paragraph (a) or (b)
of this section, the respondent shall have the burden of establishing
its compliance
[[Page 573]]
with this part and with the equal housing opportunity requirements of
the Executive order.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 52442, Dec. 24, 1985]
Sec. 107.35 Complaints.
(a) The Assistant Secretary for FH&EO, or designee, shall conduct
such compliance reviews, investigations, inquiries, and informal
meetings as may be necessary to effect compliance with this part.
(b) Complaints under this part may be filed by any person and must
be filed within one year of date of the alleged act of discrimination
unless the time for filing is extended by the Assistant Secretary for
FH&EO. Complaints must be signed by the complainant and may be filed
with the Assistant Secretary for Fair Housing and Equal Opportunity,
Department of Housing and Urban Development, Washington, DC 20410, or
any Regional or Area Office of the Department. All complaints shall be
forwarded to the Director, Office of Regional Fair Housing and Equal
Opportunity in the appropriate Regional Office which has jurisdiction in
the area in which the property is located.
(c) Upon receipt of a timely complaint, the Director of the Office
of Regional FH&EO shall determine whether the complaint indicates a
possible violation of the Executive Order or this part. The Director of
the Office of Regional FH&EO or a designee within a reasonable period of
time shall conduct an investigation into the facts. The complainant
shall be notified of the determination.
Sec. 107.40 Compliance meeting.
(a) Where preliminary analysis of a complaint, a compliance review
initiated by the Assistant Secretary for FH&EO, or other information
indicates a possible violation of E.O. 11063, or this part, the person
allegedly in violation (respondent) shall be sent a Notice of Compliance
Meeting and requested to attend a compliance meeting. The Notice shall
advise the respondent of the matters to be addressed in the Compliance
Meeting and the allegations contained in a complaint received pursuant
to Sec. 107.35. The purpose of the compliance meeting is to provide the
respondent with the opportunity to address matters raised and to remedy
such possible violations speedily and informally, to identify possible
remedies; and to effect a resolution as provided in Sec. 107.45.
(b) The Notice of Compliance Meeting shall be sent to the last known
address of the person allegedly in violation, by certified mail, or
through personal service. The Notice will advise such person of the
right to respond within seven (7) days to the matters and to submit
information and relevant data evidencing compliance with E.O. 11063, the
Affirmative Fair Housing Marketing Regulations, 24 CFR 200.600, the Fair
Housing Poster Regulations, 24 CFR part 110, the Advertising Guidelines
for Fair Housing, 37 FR 6700, April 1, 1972, other affirmative marketing
requirements applicable to the program or activity and any revisions
thereto. Further, the person will be offered an opportunity to be
present at the meeting in order to submit any other evidence showing
such compliance. The date, place, and time of the scheduled meeting will
be included in the Notice.
(c) Whenever a compliance meeting is scheduled as a result of a
complaint, the complainant shall be sent a copy of the Notice of
Compliance Meeting and shall be provided an opportunity to attend the
meeting.
(d) The Area Office having jurisdiction over the program will
prepare a report concerning the status of the respondent's participation
in Department programs to be presented to the respondent at the meeting.
The Area Manager shall be notified of the meeting and may attend the
meeting.
(e) At the Compliance Meeting the respondent and the complainant may
be represented by counsel and shall have a fair opportunity to present
any matters relevant to the complaint.
(f) During and pursuant to the Compliance Meeting, the Director of
the Office of Regional FH&EO shall consider all evidence relating to the
alleged violation, including any action taken by the person allegedly in
violation to comply with E.O. 11063.
(g) If the evidence shows no violation of the Executive order or
this part, the Director of the Office of Regional
[[Page 574]]
FH&EO shall so notify the person(s) involved within ten (10) days of the
meeting. A copy of this notification shall be sent to the complainant,
if any, and shall be submitted to the Assistant Secretary for FH&EO.
(h) If the evidence indicates an apparent failure to comply with the
Executive order or this part, and the matter cannot be resolved
informally pursuant to Sec. 107.45, the Director of the Office of
Regional FH&EO shall so notify the respondent and the complainant, if
any, no later than ten (10) days after the date on which the compliance
meeting is held, in writing by certified mail, return receipt requested,
and shall advise the complainant, if any, and the respondent whether the
Department will conduct a compliance review pursuant to Sec. 107.50 or,
where appropriate, refer the matter to the Assistant Secretary for FH&EO
for possible imposition of sanctions. A copy of this notification shall
be submitted to the Assistant Secretary for FH&EO. The compliance review
shall be conducted to determine whether the respondent has complied with
the provisions of E.O. 11063, title VIII of the Civil Rights Act of
1968, Department regulations and the Department's Affirmative Fair
Housing Marketing requirements.
(i) If the respondent fails to attend a compliance meeting scheduled
pursuant to this section, the Director of the Office of Regional FH&EO
shall notify the respondent no later than ten (10) days after the date
of the scheduled meeting, in writing by certified mail, return receipt
requested, as to whether the Department will conduct a compliance review
or, where appropriate, refer the matter to the Assistant Secretary for
FH&EO for possible imposition of sanctions. A copy of this notification
shall be submitted to the Assistant Secretary for FH&EO and sent to the
complainant, if any.
Sec. 107.45 Resolution of matters.
(a) Attempts to resolve and remedy matters found in a complaint
investigation or a compliance review shall be made through the methods
of conference, conciliation, and persuasion.
(b) Resolution of matters pursuant to this section and Sec. 107.40
need not be attempted where similar efforts by another Federal agency
have been unsuccessful in ending and remedying the violation found with
respect to the same respondent.
(c) Efforts to remedy matters shall be directed toward achieving a
just resolution of the probable violation and obtaining assurance(s)
that the respondent will satisfactorily remedy any violation of E.O.
11063 and will take actions to eliminate the discriminatory practices
and prevent reoccurrences. Compensation to individuals from the
respondent may also be considered.
(d) The terms of settlements shall be reduced to a written
agreement, signed by the respondent and the Assistant Secretary for
FH&EO or a designee. Such settlements shall seek to protect the
interests of the complainant, if any, other persons similarly affected,
and the public interest. A written notice of the disposition of matters
pursuant to this section and of the terms of settlements shall be given
to the Area Manager by the Assistant Secretary for FH&EO or a designee
and to the complainant, if any. When the Assistant Secretary or a
designee determines that there has been a violation of a settlement
agreement, the Assistant Secretary immediately may take action to impose
sanctions provided under this part, including the referral of the matter
to the Attorney General for appropriate action.
Sec. 107.50 Compliance reviews.
(a) Compliance reviews shall be conducted by the Director of the
Office of Regional FH&EO or a designee. Complaints alleging a
violation(s) of this part or information ascertained in the absence of a
complaint indicating apparent failure to comply with this part shall be
referred immediately to the Director of the Office of Regional FH&EO.
The Regional Director of the Office having jurisdiction over the
programs involved and the Area Manager shall be notified of all alleged
violations of the regulations. A complaint is not a prerequisite for the
initiation of compliance review.
(b) The purpose of a compliance review is to determine whether the
respondent is in compliance with the Executive order and this part.
Where allegations may also indicate a violation
[[Page 575]]
of the provisions of title VIII of the Civil Rights Act of 1968, HUD
regulations issued thereunder and Affirmative Fair Housing Marketing
requirements, a review may be undertaken to determine compliance with
those requirements. The respondent shall be given at least five (5) days
notice of the time set for any compliance review and the place or places
for such review. The complainant shall also be notified of the
compliance review.
Sec. 107.51 Findings of noncompliance.
(a) A finding of noncompliance shall be made when the facts
disclosed during an investigation or compliance review, or other
information, indicate a failure to comply with the provisions of E.O.
11063 or this part. In no event will a finding of noncompliance precede
the completion of the compliance meeting procedures set forth in
Sec. 107.40.
(b) Determinations of noncompliance with E.O. 11063 shall be made in
any case in which the facts establish the existence of a discriminatory
practice under Sec. 107.15(g)
(c) The existence or use of a policy or practice, or any
arrangement, criterion or other method of administration which has the
effect of denying equal housing opportunity or which substantially
impairs the ability of persons, because of race, color, religion
(creed), sex or national origin, to apply for or receive the benefits of
assistance shall be a basis for finding a discriminatory practice unless
the respondent can establish that:
(1) The policy or practice is designed to serve a legitimate
business necessity or governmental purpose of the respondent;
(2) The policy or practice effectively carries out the interest it
is designed to serve; and
(3) No alternative course of action could be adopted that would
enable respondent's interest to be served with a less discriminatory
impact.
[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985]
Sec. 107.55 Compliance report.
(a) Following completion of efforts under this part, the Director of
the Office of Regional FH&EO or a designee shall prepare a compliance
report promptly and the Assistant Secretary for FH&EO shall make a
finding of compliance or noncompliance. If it is found that the
respondent is in compliance, all persons concerned shall be notified of
the finding. Where a finding of noncompliance is made, the report shall
specify the violations found. The Director of the Office of Regional
FH&EO shall send a copy of the report to the respondent by certified
mail, return receipt requested, together with a Notice that the matter
will be forwarded to the Assistant Secretary for FH&EO for a
determination as to whether actions will be initiated for the imposition
of sanctions. The Regional Director of the Office having jurisdiction
over the programs involved and the Area Manager shall also receive a
copy of the report and the notice of intention to refer the matter to
the Assistant Secretary for FH&EO.
(b) The Notice will provide that the respondent shall have seven (7)
days to respond to the violations found and resolve and remedy matters
in the compliance report. At the expiration of the seven (7) day period
the matter shall be referred to the Assistant Secretary for FH&EO.
(c) The complainant shall be sent a copy of the findings and
compliance report and shall have seven (7) days to comment thereon.
Sec. 107.60 Sanctions and penalties.
(a) Failure or refusal to comply with E.O. 11063 or the requirements
of this part shall be proper basis for applying sanctions. Violations of
title VIII of the Civil Rights Act of 1968 or a state or local fair
housing law, with respect to activities covered by the Executive order,
or of the regulations and requirements under E.O. 11063 of other Federal
Departments and agencies may also result in the imposition of sanctions
by this Department.
(b) Such sanctions as are specified by E.O. 11063, the contract
through which Federal assistance is provided, and such sanctions as are
specified by the rules or regulations of the Department governing the
program under which Federal assistance to the project is
[[Page 576]]
provided, shall be applied in accordance with the relevant regulations.
Actions which may be taken include: cancellation or termination, in
whole or in part of the contract or agreement; refusal to approve a
lender or withdrawal of approval; a determination of ineligibility,
suspension or debarment from any further assistance or contracts
provided, however, that sanctions of debarment, suspension and
ineligibility are subject to the Department's regulations under part 24
of this title; and provided further, that no sanction under section 302
(a), (b) and (c) of E.O. 11063 shall be applied by the Assistant
Secretary for FH&EO without the concurrence of the Secretary.
(c) The Department shall use its good offices in order to promote
the abandonment of discriminatory practices with regard to residential
property and related facilities provided with assistance prior to the
effective date of E.O. 11063 and take appropriate actions permitted by
law including the institution of appropriate litigation to provide such
equal housing opportunities.
(d) In any case involving the failure of a lender to comply with the
requirements of the Executive order or this part, the Assistant
Secretary for FH&EO shall notify the Federal financial regulatory agency
having jurisdiction over the lender of the findings in the case.
Sec. 107.65 Referral to the Attorney General.
If the results of a complaint investigation or a compliance review
demonstrate that any person, or specified class of persons, has violated
E.O. 11063 or this part, and efforts to resolve the matter(s) by
informal means have failed, the Assistant Secretary for FH&EO in
appropriate cases shall recommend that the General Counsel refer the
case to the Attorney General of the United States for appropriate civil
or criminal action under section 303 of E.O. 11063.
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