Memorandum Of Understanding Among The Department Of The
Treasury, The Department Of Housing And Urban Development, And
The Department Of Justice
Preamble
The United States Departments of the Treasury, Housing and Urban
Development, and Justice enter into this memorandum of understanding
(MOU) in a cooperative effort to promote enhanced compliance with
the Fair Housing
Act (ACT), 42 U.S.C. §§ 3601 et seq., for the benefit of residents
of low-income housing tax credit properties and the general public.
It
is recognized that the Department of Treasury's (Treasury) Internal
Revenue Service (IRS) is responsible for administering and enforcing
the tax laws in the low-income housing tax credit program under
§ 42 of the Internal Revenue Code, 26 U.S.C. § 42. In accordance
with § 1.42-9 of the Income Tax Regulations, 26 C.F.R. § 1.342-9,
low income housing tax credit properties are to be rented in a manner
consistent with the Act. Noncompliance of these properties with
the low-income housing tax credit provisions is required to be reported
to the IRS by state housing finance agencies under 26 U.S.C. § 42(m)(1)(B)(iii).
It
is recognized that the Department of Housing and Urban Development
(HUD) is responsible for enforcing the Act, 42 U.S.C. §§ 3601 et
seq. In doing so, HUD is required to investigate allegations of
housing discrimination, attempt conciliation of the complaint, and
determine whether there is reasonable cause to believe discrimination
has occurred under the Act. Upon finding reasonable cause, HUD must
bring the case before an administrative law judge, or if either
party elects to have claims or complaints decided in a civil action,
HUD must refer the complaint to the Department of Justice for prosecution
in the United States District Court.
It
is recognized that the Department of Justice (Justice) is responsible
for enforcing the Act, 42 U.S.C. 3601 et seq. Pursuant to section
3614 of the Act, Justice may file a lawsuit whenever the Attorney
General has reasonable cause to believe that any person or group
of persons is engaged in a pattern or practice of discrimination
or denial of rights to a group of persons where such a denial raises
an issue of general importance. Justice also may file a lawsuit
upon referral of matters from HUD involving the legality of any
state or local zoning or other land use law or ordinance and after
receiving a referral from HUD following an election by a party to
a HUD complaint to have the matter decided in a civil action. Justice
may enter into settlement agreements and consent decrees with property
owners to obtain compliance with the Act. In event a property owners
fails to comply with the terms of the settlement agreement or consent
decree, Justice may seek a court judgement to enforce the terms
of the settlement agreement or consent decree.
1.Coordination
of Notifying Low-Income Housing Tax Credit Property Owners about
Charges, Lawsuits, and Other Actions
HUD
and Justice will identify low-income housing tax credit properties
for which there is: 1) a charge by the Secretary of HUD for a violation
of the Act; 2) a probable cause finding under a substantially equivalent
fair housing state law or local ordinance by a substantially equivalent
state or local agency; 3) a lawsuit under the Act filed by Justice;
or 4) a settlement agreement or consent order entered into between
HUD or Justice and the owner of a low-income housing tax credit
property. HUD or Justice will then transmit the address of the property
and a summary of these actions to the appropriate state housing
finance agency, using a current list of contacts and addresses of
state housing finance agencies provided by the IRS.
Upon
the state housing finance agencies reporting this information to
the IRS (using Form 8823, Low-Income Housing Credit Agencies Report
of Noncompliance), the IRS will send a letter to involved property
owners notifying them that a finding of discrimination, including
an adverse final decision by the Secretary of HUD, an adverse final
decision by a substantially equivalent state or local fair housing
agency, or an adverse judgement by a federal court, could result
in the loss of low-income housing tax credits. Similarly, the IRS
will also send notification to property owners that a judgement
enforcing the terms of a settlement agreement to property owners
that a judgement enforcing the terms of a settlement agreement or
consent decree could result in the loss of low-income housing tax
credits. The IRS, HUD, and Justice will collaboratively develop
the model letters addressed to property owners and other entities.
HUD and Justice will also send to the IRS and the appropriate state
housing finance agency a summary of the above-referenced actions,
describing relevant information such as the precise nature of the
violation, the dates of the violation, and proposed corrective actions.
1.Designating
Contacts and Interagency Technical Assistance and Training
Hud
and Justice will designate personnel to provide the IRS upon request
with technical assistance and problem resolution concerning emerging
civil rights and discrimination matters involving the administration
of the low-income housing tax credit program (e.g., accessibility
issues, section 8 vouchers, civil rights interpretative issues,
and published guidance). In addition, HUD and Justice will provide
training upon request to a few designated IRS personnel about the
Act. The IRS will designate personnel to provide technical assistance
and training upon request to HUD and Justice personnel on general
tax administration issues under the low-income housing tax credit
program, in a manner consistent with the IRS's disclosure limitations
contained in section 6103 of the Internal Revenue Code.
1.Training
for State Housing Finance Agencies and Others
HUD
and Justice will make training available upon request to state housing
finance agencies and other entities (e.g., developers, property
management companies, syndicators) on the Act, including training
on inspecting for Act accessibility criteria referenced in the uniform
physical condition standards in 24 CFR 5.703. HUD will also encourage
substantially equivalent state and local fair housing agencies to
invite state housing finance agencies and other entities to participate
in civil rights training developed by the substantially equivalent
agencies.
1.HUD's
Pilot Program to Train Architects on the Act's Accessibility Requirements
HUD
has begun the process of developing a pilot program in one region
of the country to provide training and technical assistance to architects
and others on the accessible design and construction requirements
of the Act. HUD has also proposed expanding this program to four
regions in FY 2001. HUD will promote participation in the program
by members of the American Institute of Architects, including those
involved with the design and construction of low-income housing
tax credit properties.
1.Cooperation
in Research Concerning Low-Income Tax Credit Properties
HUD
and Treasury will cooperate in research sponsored by either Department
concerning low-income housing tax credit properties.
1.Cooperation
to Identify and Remove Unlawful Barriers to Section 8 Tenants
In
consultation with the state housing finance agencies, HUD, Justice,
and the IRS will cooperate in in identifying and removing unlawful
barriers to occupancy of low-income housing tax credit properties
by individuals holding section 8 vouchers.
1.Cooperation
in Assisting Syndicators of Low-Income Housing Tax Credit
HUD,
Justice, and the IRS will cooperate in helping the national associations
of investment syndicators of low-income housing tax credit properties
to enhance practices by syndicators in monitoring and promoting
compliance with the Act and the low-income housing tax credit program.
1.Annual
Civil Rights Meeting Among Federal Agencies and Participation in
National Conference of State Housing Finance Agencies
HUD,
Justice, treasury, and other interested federal agencies will meet
annually to discuss emerging civil rights issues and new methods
and programs to increase civil rights compliance in the low-income
housing tax credit program. IRS will encourage the state housing
finance agencies to invite HUD and Justice to than annual national
conference of state housing finance agencies. HUD and Justice agree
to designate personnel to conduct training and discuss emerging
civil rights issues at the national conference.
Implementation
This
MOU will become effective 30 days from the date of the last signature
on this documents.
The
parties agree to confer on the interpretation and application of
the memorandum as necessary and to conduct a mutual annual review
of its operation.>
Nothing
in this MOU shall be construed to impair or affect i) HUD's or Justice's
authority to enforce the Act, ii) the IRS's authority to administer
the low-income housing tax credit program, including complete administrative
discretion to deny low-income housing tax credits in the event of
a violation of the ACT, or iii) the IRS's disclosure limitations
under section 6103 of the Internal Revenue Code.
LAWRENCE H. SUMMERS
Secretary of the Treasury
August 9, 2000
ANDREW CUOMO
Secretary, U.S. Department of Housing and Urban Development
August 11, 2000
JANET
RENO
Attorney General
August 11, 2000