[House Report 116-664]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-664
======================================================================
HOUSING FAIRNESS ACT OF 2020
_______
December 17, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 149]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 149) to authorize funds to prevent housing
discrimination through the use of nationwide testing, to
increase funds for the Fair Housing Initiatives Program, and
for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 5
Section-by-Section Analysis...................................... 7
Hearings......................................................... 8
Committee Consideration.......................................... 8
Committee Votes.................................................. 9
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 14
Statement of Performance Goals and Objectives.................... 14
New Budget Authority and CBO Cost Estimate....................... 14
Committee Cost Estimate.......................................... 15
Unfunded Mandate Statement....................................... 15
Advisory Committee............................................... 16
Committee Correspondence.........................................
Application of Law to the Legislative Branch..................... 16
Earmark Statement................................................ 16
Duplication of Federal Programs.................................. 16
Changes to Existing Law.......................................... 16
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing Fairness Act of 2020''.
SEC. 2. TESTING FOR DISCRIMINATION.
(a) Eligible Activity Under FHIP.--Subsection (a) of section 561 of
the Housing and Community Development Act of 1987 (42 U.S.C. 3616a(a))
is amended--
(1) in the matter preceding paragraph (1), by inserting after
``discriminatory housing practices'' the following: ``or, in
the case of grants or contracts for activities under paragraph
(3) with qualified private, non-profit fair housing enforcement
organizations that have demonstrated expertise in managing and
implementing regional or national testing programs to address
systemic fair housing issues'';
(2) in paragraph (1), by striking ``and'' at the end;
(3) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(3) programs of regional or national testing and
investigations to (i) detect and document differences in the
treatment of persons seeking to rent or purchase housing or
obtain or refinance a home mortgage loan, and measure patterns
of differential treatment because of the status of a renter,
home buyer, or borrower as a member of the protected classes
under the Fair Housing Act (42 U.S.C. 3601 et seq.), and (ii)
measure the prevalence, nature, and extent of discriminatory
practices covered under the Fair Housing Act.
The results of any testing and investigations pursuant to paragraph (3)
may be used as the basis for the Secretary, or any Federal agency
authorized to bring such an enforcement action, or any State or local
government or agency, public or private nonprofit organization or
institution, or other aggrieved parties as defined by title VIII of the
Civil Rights Act of 1968 or other substantially equivalent State or
local fair housing law, or other public or private entity that the
Secretary has entered into a contract or cooperative agreement with
under this section to commence, undertake, or pursue any investigation
or enforcement action to remedy any discriminatory housing practice (as
such term is defined in section 802 of the Fair Housing Act (42 U.S.C.
3602)) uncovered as a result of such testing and investigations.
Testing conducted pursuant to paragraph (3) shall not constitute a
violation of any provision of criminal law or the Truth in Lending Act
(15 U.S.C. 1601 et seq.).''.
(b) Regulations.--Not later than the expiration of the 180-day period
beginning on the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall issue regulations that apply the
minimum tester training standards required under section 125.107 of
title 24, Code of Federal Regulations, to organizations conducting
testing under section 561(a)(3) of the Housing and Community
Development Act of 1987, as added by the amendment made by subsection
(a)(4) of this section. Any subsequent amendments, changes, and updates
to such minimum standards shall apply to all activities under such
section 561.
SEC. 3. FAIR HOUSING INITIATIVES PROGRAM.
(a) Amendments to Program.--Section 561 of the Housing and Community
Development Act of 1987 (42 U.S.C. 3616a) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting ``qualified''
before ``private nonprofit fair housing enforcement
organizations,''; and
(B) in paragraph (2), by inserting ``qualified''
before ``private nonprofit fair housing enforcement
organizations,'';
(2) in subsection (c), by adding at the end the following:
``(3) Program-earned income.--No restrictions on the use of
program-earned income received by qualified fair housing
enforcement organizations shall apply after the grant period
for such organization ends.'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``and''
at the end;
(ii) in subparagraph (D), by striking the
period and inserting ``; and''; and
(iii) by adding after subparagraph (D) the
following:
``(E) websites and other media outlets.'';
(B) in paragraph (2), by striking ``or other public
or private entities'' and inserting ``or other public
or private nonprofit entities'';
(C) in paragraph (3), by striking ``or other public
or private entities'' and inserting ``or other public
or private nonprofit entities''; and
(D) by adding at the end the following:
``(4) Limitation.--Notwithstanding any other provision of
this section, a State or local agency certified by the
Secretary under section 810(f) of the Fair Housing Act may
receive assistance under this subsection only to carry out
activities eligible for assistance under this subsection in
areas in which no qualified fair housing enforcement
organization is available to carry out such activities.
``(5) Eligibility.--Notwithstanding any other provision of
this section, if an award of funding under subsection (b) for
multiple fiscal years has been made to a qualified fair housing
enforcement organization, such organization is, subject only to
the availability of amounts provided in appropriation Acts,
eligible to receive funding under this subsection for each
fiscal year covered by such award under subsection (b).'';
(4) in subsection (e)--
(A) in paragraph (1) by striking ``Banking, Finance
and Urban Affairs'' and inserting ``Financial
Services''; and
(B) by adding at the end the following:
``(2) Priority.--In providing assistance under this section
with respect to metropolitan statistical areas for which there
are multiple applications for such assistance, the Secretary
shall give priority to applications submitted by qualified fair
housing enforcement organizations that have experience in
conducting fair housing enforcement activities.'';
(5) by striking subsection (g) and inserting the following:
``(g) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
carry out this section--
``(A) $58,000,000 for each of fiscal years 2021
through 2025, of which--
``(i) $55,000,000 shall be available for any
activities under this section other than
programs under subsection (a)(3), of which--
``(I) not less than $38,000,000 shall
be for private enforcement initiatives
authorized under subsection (b);
``(II) not less than $1,500,000 shall
be for the fair housing organizations
initiative under subsection (c);
``(III) not less than $10,000,000
shall be for the education and outreach
initiative under subsection (d), of
which--
``(aa) at least $8,000,000
shall be for local education
and outreach activities; and
``(bb) at least $2,000,000
shall be for national media
activities; and
``(IV) any remaining amounts shall be
used for any program activities
authorized under this section; and
``(ii) $3,000,000 shall be available only for
programs under subsection (a)(3); and
``(B) $70,000,000 for each of fiscal years 2026
through 2031, of which--
``(i) for each such fiscal year, $65,000,000
shall be available for any activities under
this section other than programs under
subsection (a)(3), of which--
``(I) not less than $44,000,000 shall
be for private enforcement initiatives
authorized under subsection (b);
``(II) not less than $1,500,000 shall
be for the fair housing organizations
initiative under subsection (c);
``(III) not less than $12,500,000
shall be for the education and outreach
initiative under subsection (d), of
which--
``(aa) at least $10,000,000
shall be for local education
and outreach activities; and
``(bb) at least $2,500,000
shall be for national media
activities; and
``(IV) any remaining amounts shall be
used for any program activities
authorized under this section; and
``(ii) for each such fiscal year $5,000,000
shall be available only for programs under
subsection (a)(3).
``(2) Availability.--Any amount appropriated under this
section shall remain available until expended to carry out the
provisions of this section.
``(3) Award of funding.--Within 90 days after the date of the
enactment of any Act making amounts available to carry out this
section, the Secretary shall issue a Notice of Funding
Availability with respect to such amounts and, within 180 days
after such date of enactment, the Secretary shall award such
amounts.'';
(6) in subsection (h)(1), in the matter following
subparagraph (C), by inserting ``and meets the criteria
described in subparagraphs (A) and (C)'' before the period at
the end; and
(7) in subsection (j)--
(A) in the matter preceding paragraph (1), by
inserting ``regarding such preceding fiscal year,''
after ``comprehensive report''; and
(B) in paragraph (2), by striking ``and the use of
such funds during the preceding fiscal year'' and
inserting ``, the use of such funds during the
preceding fiscal year, and outcomes such as the number
of housing units made available and accessible to
protected classes under the Fair Housing Act (42 U.S.C.
3601 et seq.)''.
(b) Study.--The Secretary of Housing and Urban Development shall
conduct a study to determine the feasibility, efficiency, and
effectiveness of converting the Fair Housing Initiatives Program under
section 561 of the Housing and Community Development Act of 1987 (42
U.S.C. 3616a) into a noncompetitive, entitlement program to provide
general operating funding to qualified fair housing organizations, the
appropriate levels of funding for such a program taking into
consideration the number of such qualified funding recipients, and what
factors should be considered in providing for an equitable distribution
to qualified recipients of funding. The Secretary shall submit a report
to the Congress setting forth the results of the study under this
subsection not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, which shall include
any recommendations regarding such conversion of the program.
SEC. 4. SENSE OF CONGRESS.
It is the sense of Congress that the Secretary of Housing and Urban
Development should--
(1) fully comply with the requirements of section 561(d) of
the Housing and Community Development Act of 1987 (42 U.S.C.
3616a(d)) to establish, design, and maintain a national
education and outreach program to provide a centralized,
coordinated effort for the development and dissemination of--
(A) materials and information about the fair housing
rights of individuals who seek to rent, purchase, sell,
or facilitate the sale of a home; and
(B) materials and information about the fair housing
responsibilities of industry professionals providing
products and services covered under the Fair Housing
Act (42 U.S.C. 3601 et seq.);
(2) expend for such education and outreach programs all
amounts appropriated for such programs;
(3) fully reinstate the regulations promulgated on July 16,
2015 (80 Fed. Reg. 42271), regarding the fair housing
obligations of each recipient of Federal housing and community
development funds to affirmatively further fair housing, as
that term is defined under title VIII of the Civil Rights Act
of 1968 (42 U.S.C. 3601 et seq.); and
(4) fully comply with the requirements of section 810(a) of
the Fair Housing Act (42 U.S.C. 3610(a)).
SEC. 5. GRANTS TO PUBLIC AND PRIVATE ENTITIES TO STUDY HOUSING
DISCRIMINATION.
(a) Grant Program.--The Secretary of Housing and Urban Development
shall carry out a competitive matching grant program to assist public
and private non-profit organizations in--
(1) conducting studies that examine issues regarding housing
discrimination and segregation and the Fair Housing Act,
including--
(A) the causes of housing discrimination and
segregation, including their effects on members of
protected classes under the Fair Housing Act, and their
effects on education, poverty, economic development,
health, and other socioeconomic factors;
(B) the incidence, causes, and effects of housing
discrimination and segregation based on personal
characteristics not protected under the Fair Housing
Act, including--
(i) veteran and military status; and
(ii) source of income;
(C) the ways in which the use of algorithms and
artificial intelligence in the housing and mortgage
lending markets impact the availability of housing for
protected classes under the Fair Housing Act, including
the use of digital and online platforms in the
advertising and provision of housing and other services
covered under the Fair Housing Act; or
(D) any additional topics of study related to the
implementation and expansion of the Fair Housing Act;
or
(2) implementing pilot projects that test solutions that will
help prevent or alleviate housing discrimination and
segregation.
A grant under this section may provide funding to an organization for
only activities under paragraph (1) or paragraph (2) or for activities
under both paragraph (1) and (2).
(b) Eligibility.--To be eligible to receive a grant under this
section, a public or private nonprofit organization shall--
(1) submit an application to the Secretary of Housing and
Urban Development, containing--
(A) the issues the applicant will address and a
justification for the need to address such issues;
(B) the applicant's experience in formulating or
carrying out programs or activities described in this
section; and
(C) the geographical area and period of time to be
studied;
(2) agree to provide matching non-Federal funds for 10
percent of the total amount of the grant, which matching funds
may include monetary donations and items donated on an in-kind
contribution basis; and
(3) meet the requirements of a qualified fair housing
enforcement organization, as such term is defined in section
561(h) of the Housing and Community Development Act of 1987 (42
U.S.C. 3616a(h)).
(c) Partnerships With Academic Institutions.--A public or private
nonprofit organization applying for a grant under this section may
partner with an academic or educational organization or institution for
the purpose of carrying out activities assisted with such grant
amounts.
(d) Report.--The Secretary of Housing and Urban Development shall
submit a report to the Congress on a biennial basis that provides a
detailed summary of the results of the comprehensive studies and pilot
projects carried out under subsection (a), together with any
recommendations or proposals for legislative or administrative actions
to address any issues raised by such studies. The Secretary may submit
the reports required under this subsection as part of the reports
prepared in accordance with paragraphs (2) and (6) of section 808(e) of
the Fair Housing Act (42 U.S.C. 3608(e)) and section 561(j) of the
Housing and Community Development Act of 1987 (42 U.S.C. 3616a(j)).
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out the provisions of this section $5,000,000 for
each of fiscal years 2021 through 2025.
SEC. 6. LIMITATION ON USE OF FUNDS.
None of the funds made available under this Act, or the amendments
made by this Act, may be used for any political activities, political
advocacy, or lobbying (as such terms are defined by Circular A-122 of
the Office of Management and Budget, entitled ``Cost Principles for
Non-Profit Organizations''), or for expenses for travel to engage in
political activities or preparation of or provision of advice on tax
returns.
Purpose and Summary
On January 3, 2019, Representative Al Green introduced H.R.
149, the ``Housing Fairness Act of 2020,'' which would
authorize increased funding for the Department of Housing and
Urban Development's (HUD) Fair Housing Initiatives Program
(FHIP) and make a number of reforms to FHIP. It would also
establish a new competitive matching grant program at HUD to
support comprehensive studies of the causes and effects of
ongoing discrimination and segregation, and the implementation
of pilot projects to test solutions.
Background and Need for Legislation
The Fair Housing Act of 1968 made discrimination in the
housing market illegal based on race, color, sex, religion,
national origin, disability, and familial status, and required
that HUD enforce the law. Later, Congress went on to authorize
HUD's Fair Housing Initiatives Program (FHIP) in 1987 under
Section 561 of the Housing and Community Development Act to
support the work of private fair housing organizations
conducting local fair housing complaint intake, private
investigations, and public education and outreach, among other
activities.
Since its inception, FHIP has become a central component of
the nation's fair housing enforcement infrastructure. FHIP
grantee organizations processed over 75 percent of all housing
discrimination complaints in 2018--three times the amount of
complaints processed by all federal agencies. Yet, FHIP funding
levels and the activities allowed under the program constrain
enforcement needs in the face of a rapidly evolving U.S.
housing market, increased housing discrimination complaints,
and documentation of ongoing industry practices that are in
direct violation of federal Fair Housing law.
H.R. 149, as reported by the Committee, authorizes a total
of $735 million over 11 fiscal years to support the federal
government's responsibility to enforce the Fair Housing Act.
This includes: FHIP reauthorization of $665 million over 11
fiscal years, authorization of $45 million for new eligible
FHIP activities over 11 fiscal years, and authorization of $25
million over five fiscal years for a new competitive matching
grant program. These amounts were requested by NFHA and reflect
their estimates of the funding levels necessary to support the
activities authorized in this bill. The bill makes several
reforms to FHIP that include the addition of eligible
activities under a new National Testing Initiative that will
allow national investigations into housing discrimination that
are currently prohibited. The bill also requires HUD to fully
comply with and expend all funds made available for education
and outreach activities under FHIP, reinstate the 2015
Affirmatively Furthering Fair Housing Rule, and fully comply
with all complaint intake, investigation, and response
requirements under the Fair Housing Act. Finally, the bill
creates a competitive matching grant program at HUD to support
comprehensive, publicly available studies of the causes and
effects of ongoing housing discrimination and segregation, as
well as the implementation of pilot projects to test solutions.
H.R. 149 is supported by: the National Fair Housing
Alliance, The Leadership Conference on Civil and Human Rights,
NAACP, the Center for Responsible Lending, the National Low
Income Housing Coalition, the National Association of Realtors,
the Asian Real Estate Association of America, the National
Association of Real Estate Brokers, the National Association of
Hispanic Real Estate Professionals, the Appraisal Institute,
Americans for Financial Reform, and National CAPACD, the
Consortium for Citizens with Disabilities Housing Task Force,
the National Action Network, the National LGBTQ Task Force
Action Fund, The Arc, and the 48 following nonprofit
organizations from 20 states across the country: Center for
Fair Housing, Inc., Southwest Fair Housing Council, Eden
Council for Hope and Opportunity, Western Center in Law &
Poverty, Fair Housing Council of Riverside County, Inc., San
Jose Law Foundation of Silicon Valley, Fair Housing Advocates
of Northern California, Fair Housing Council of Orange County,
Santa Ana Public Law Center, Santa Clara Project Sentinel,
Connecticut Fair Housing Center, Equal Rights Center,
Georgetown University Law Center--Civil Rights Clinic, Fair
Housing Center of the Greater Palm Beaches, Housing
Opportunities Project for Excellence (HOPE), Inc., Savannah-
Chatham Council on Disability Issues, Atlanta Metro Fair
Housing Services, Inc., Savannah-Chatham County Fair Housing
Council, Inc., Intermountain Fair Housing Council, Access
Living of Metropolitan Chicago, Chicago United for Equity,
Housing Action Illinois, Housing Choice Partners, Speak Up
Chicago, South Suburban Housing Center, HOPE Fair Housing
Center, Louisiana Fair Housing Action Center, Massachusetts
Fair Housing Center, Fair Housing Center of Metropolitan
Detroit, Fair Housing Center of West Michigan, Fair Housing
Center of Southeast & Mid-Michigan, Fair Housing Council of
Northern NJ, Long Island Housing Services, Inc., Housing
Opportunities Made Equal, Inc., Fair Housing Justice Center,
Inc., High Plains Fair Housing Center, Fair Housing Contact
Service, Housing Opportunities Made Equal of Greater
Cincinnati, Fair Housing Center for Rights & Research, Miami
Valley Fair Housing Center, Inc., The Fair Housing Center, Fair
Housing Council of Oregon, Fair Housing Rights Center in
Southeastern Pennsylvania, Fair Housing Partnership of Greater
Pittsburgh, Austin Tenants Council, Greater Houston Fair
Housing Center, Fair Housing Council of Greater San Antonio,
Fair Housing Center of Washington.
Section-by-Section Analysis
Section 1. Short title
This section provides that H.R. 149 may be cited as the
``Housing Fairness Act of 2020.''
Section 2. Testing for discrimination
This section amends subsection (a) of section 561 of the
Housing and Community Development Act of 1987 (42 U.S.C.
3616a(a)) to allow for regional and national systemic testing
activities under FHIP, which is intended to fund collaborative
investigations that address housing discrimination practices
that have been observed across geographies. FHIP grantees and
the HUD Secretary will be able to take enforcement actions
based on the results of these testing and investigation
activities.
This section also removes criminal liability for testers
conducting full-application lending discrimination testing and
authorizes full-application lending testing.
Section 3. Fair Housing Initiatives Program
This section further amends section 561 of the Housing and
Community Development Act of 1987 (42 U.S.C. 3616a(a)) to
streamline FHIP application processes and makes a number of
changes to FHIP grantee eligibility requirements to ensure
scarce funding goes to mission-drive organizations with the
greatest expertise in fair housing. It also clarifies that
Education and Outreach Initiative grants under FHIP can be used
to disseminate fair housing educational materials and content
via websites and other media outlets, and that grantees under
the Fair Housing Assistance Program (FHAP) may only apply for
FHIP funding when there is no other QFHEO operating in the
service area.
The amendments made by this section also remove a
requirement that FHIP grantees reimburse the federal government
for any settlement or court-ordered funds they receive as a
result of grant-funded enforcement activities after the
termination of the grant period to accommodate the multi-year
nature of private enforcement work under FHIP.
This section authorizes a total of $710 million in
appropriations for FHIP between fiscal years 2021 and 2031,
which are to remain available until expended.
Section 4. Sense of Congress
This section provides for a Sense of Congress that the HUD
Secretary should fully comply with the national education and
outreach components of the FHIP program and fully expend all
available funding for these activities; fully reinstates the
Affirmatively Furthering Fair Housing rule that was promulgated
on July 16, 2015; and fully comply with the administrative
complaint procedures established under the Fair Housing Act.
Section 5. Grants to public and private entities to study housing
discrimination
This section authorizes $5 million for each of FYs 2021
through 2025 to establish a new competitive matching grant
program that supports comprehensive studies on the causes and
effects of housing discrimination and residential segregation
and to test potential solutions. Grants may also be used to
study the incidence, causes, and effects of housing
discrimination based on characteristics not currently protected
under the Fair Housing Act.
This section requires the Secretary of HUD to report to
Congress on a biennial basis about the results of studies and
pilot projects funded with grants under this section and to
include any legislative or administrative recommendations or
proposals raised in such studies.
Section 6. Limitation on use of funds
This section creates a standard prohibition on the use of
any funds made available under the Act for political
activities, advocacy, or lobbying, the travel expenses
associated with those activities, or for the provision of
advice on tax returns.
Hearings
For the purposes of section 103(i) of H. Res. 6 for the
116th Congress, the Committee on Financial Services held a
hearing on April 2, 2019, entitled ``The Fair Housing Act:
Reviewing Efforts to Eliminate Discrimination and Promote
Opportunity in Housing'' to consider H.R. 149, as introduced.
Testifying before the Committee were: Debby Goldberg, Vice
President, Housing Policy and Special Projects, National Fair
Housing Alliance; Cashauna Hill, Executive Director, Greater
New Orleans Fair Housing Action Center; Kierra Johnson, Deputy
Executive Director, National LGBTQ Task Force; Skylar Olsen,
Director of Economic Research & Outreach, Zillow Group; and the
Minority witness, Salim Furth, Ph.D., Senior Research Fellow,
Mercatus Center, George Mason University.
Committee Consideration
The Committee on Financial Services met in open session on
February 27, 2020 and ordered H.R. 149 to be reported favorably
to the House with an amendment in the nature of a substitute by
a vote of 33 ayes and 25 nays, a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 149:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 149 are to address
ongoing discrimination, segregation, and other inequities in
the U.S. housing market by providing substantial new federal
fair housing investments for increased enforcement, research,
and to test solutions.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following estimate for
H.R. 149 from the Director of the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 149 would authorize the appropriation of $58 million
annually over the 2021-2025 period and $70 million annually
from 2026 through 2031 for the Department of Housing and Urban
Development (HUD) to make grants to states, localities, and
nonprofit organizations to prevent discriminatory housing
practices through the Fair Housing Initiatives Program. (In
2020, the Congress provided $46 million to the program.)
The bill also would authorize the appropriation of $5
million annually over the 2021-2025 period for a competitive
grant program for nonprofits to study the causes and effects of
housing discrimination and to implement pilot projects to test
approaches to preventing discrimination. Finally, the bill
would require HUD to study the feasibility and effectiveness of
converting the Fair Housing Initiatives Program into a
noncompetitive, entitlement program.
Most of the authorized amounts would be allocated for
activities carried out by nonprofit organizations to enforce
laws against discrimination in housing, as well as for
education and outreach efforts. CBO estimates that implementing
the bill would cost $207 million over the 2021-2025 period,
$541 million over the 2021-2030 period, and $195 million after
2030, assuming appropriation of the authorized amounts. That
estimate is based on historical spending patterns for the
programs and on information from the department.
The costs of the legislation, detailed in Table 1, fall
under budget function 750 (administration of justice).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 149
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2020-2025
----------------------------------------------------------------------------------------------------------------
Fair Housing Initiatives Program
Authorizationa............... 0 58 58 58 58 58 290
Estimated Outlays............ 0 1 22 48 58 58 187
Grant Program to Study Housing
Discrimination
Authorization................ 0 5 5 5 5 5 25
Estimated Outlays............ 0 1 3 5 5 5 19
Study
Estimated Authorization...... 0 1 0 0 0 0 1
Estimated Outlays............ 0 1 0 0 0 0 1
Total Changes
Estimated Authorization...... 0 64 63 63 63 63 316
Estimated Outlays............ 0 3 25 53 63 63 207
----------------------------------------------------------------------------------------------------------------
aThe bill also would authorize the appropriation of $70 million annually from 2026 through 2031 for this
program.
The CBO staff contact for this estimate is Jon Sperl. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 149. However,
clause 3(d)(2)(B) of that rule provides that this requirement
does not apply when the committee has included in its report a
timely submitted cost estimate of the bill prepared by the
Director of the Congressional Budget Office under section 402
of the Congressional Budget Act.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 149, as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 149, as reported,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 149 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 149 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes to Existing Law
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 149, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987
* * * * * * *
TITLE V--COMMUNITY DEVELOPMENT AND MISCELLANEOUS PROGRAMS
* * * * * * *
SEC. 561. FAIR HOUSING INITIATIVES PROGRAM.
(a) In General.--The Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'')
may make grants to, or (to the extent of amounts provided in
appropriation Acts) enter into contracts or cooperative
agreements with, 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 or, in the case of grants or contracts for activities
under paragraph (3) with qualified private, non-profit fair
housing enforcement organizations that have demonstrated
expertise in managing and implementing regional or national
testing programs to address systemic fair housing issues, to
develop, implement, carry out, or coordinate--
(1) programs or activities designed to obtain
enforcement of the rights granted by title VIII of the
Act of April 11, 1968 (commonly referred to as the
Civil Rights Act of 1968), or by 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 such
title VIII, through such appropriate judicial or
administrative proceedings (including informal methods
of conference, conciliation, and persuasion) as are
available therefore; [and]
(2) education and outreach programs designed to
inform the public concerning rights and obligations
under the laws referred to in paragraph (1)[.]; and
(3) programs of regional or national testing and
investigations to (i) detect and document differences
in the treatment of persons seeking to rent or purchase
housing or obtain or refinance a home mortgage loan,
and measure patterns of differential treatment because
of the status of a renter, home buyer, or borrower as a
member of the protected classes under the Fair Housing
Act (42 U.S.C. 3601 et seq.), and (ii) measure the
prevalence, nature, and extent of discriminatory
practices covered under the Fair Housing Act.
The results of any testing and investigations pursuant to
paragraph (3) may be used as the basis for the Secretary, or
any Federal agency authorized to bring such an enforcement
action, or any State or local government or agency, public or
private nonprofit organization or institution, or other
aggrieved parties as defined by title VIII of the Civil Rights
Act of 1968 or other substantially equivalent State or local
fair housing law, or other public or private entity that the
Secretary has entered into a contract or cooperative agreement
with under this section to commence, undertake, or pursue any
investigation or enforcement action to remedy any
discriminatory housing practice (as such term is defined in
section 802 of the Fair Housing Act (42 U.S.C. 3602)) uncovered
as a result of such testing and investigations. Testing
conducted pursuant to paragraph (3) shall not constitute a
violation of any provision of criminal law or the Truth in
Lending Act (15 U.S.C. 1601 et seq.).
(b) Private Enforcement Initiatives.--
(1) In general.--The Secretary shall use funds made
available under this subsection to conduct, through
contracts with qualified private nonprofit fair housing
enforcement organizations, investigations of violations
of the rights granted under title VIII of the Civil
Rights Act of 1968, and such enforcement activities as
appropriate to remedy such violations. The Secretary
may enter into multiyear contracts and take such other
action as is appropriate to enhance the effectiveness
of such investigations and enforcement activities.
(2) Activities.--The Secretary shall use funds made
available under this subsection to conduct, through
contracts with qualified private nonprofit fair housing
enforcement organizations, a range of investigative and
enforcement activities designed to--
(A) carry out testing and other investigative
activities in accordance with subsection
(b)(1), including building the capacity for
housing investigative activities in unserved or
underserved areas;
(B) 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
sales and rentals of housing and housing
advertising;
(C) carry out special projects, including the
development of prototypes to respond to new or
sophisticated forms of discrimination against
persons protected under title VIII of the Civil
Rights Act of 1968;
(D) provide technical assistance to local
fair housing organizations, and assist in the
formation and development of new fair housing
organizations; and
(E) provide funds for the costs and expenses
of litigation, including expert witness fees.
(c) Funding of Fair Housing Organizations.--
(1) In general.--The Secretary shall use funds made
available under this section to enter into 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 title VIII of
the Civil Rights Act of 1968, as amended. Contracts or
cooperative agreements may not provide more than 50
percent of the operating budget of the recipient
organization for any one year.
(2) Capacity enhancement.--The Secretary shall use
funds made available under this section 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. For purposes of meeting the
objectives of this paragraph, the Secretary may enter
into contracts or cooperative agreements with qualified
fair housing enforcement organizations. The Secretary
shall establish annual goals which reflect the national
need for private fair housing enforcement
organizations.
(3) Program-earned income.--No restrictions on the
use of program-earned income received by qualified fair
housing enforcement organizations shall apply after the
grant period for such organization ends.
(d) Education and Outreach.--
(1) In general.--The Secretary, through contracts
with one or more qualified fair housing enforcement
organizations, other fair housing enforcement
organizations, and other nonprofit organizations
representing groups of persons protected under title
VIII of the Civil Rights Act of 1968, shall establish a
national education and outreach program. The national
program shall be designed to provide a centralized,
coordinated effort for the development and
dissemination of fair housing media products,
including--
(A) public service announcements, both audio
and video;
(B) television, radio and print
advertisements;
(C) posters; [and]
(D) pamphlets and brochures[.]; and
(E) websites and other media outlets.
The Secretary shall designate a portion of the amounts
provided in subsection (g)(4) for a national program
specifically for activities related to the annual
national fair housing month. The Secretary shall
encourage cooperation with real estate industry
organizations in the national education and outreach
program. The Secretary shall also encourage the
dissemination of educational information and technical
assistance to support compliance with the housing
adaptability and accessibility guidelines contained in
the Fair Housing Act Amendments of 1988.
(2) Regional and local programs.--The Secretary,
through contracts with fair housing enforcement
organizations, other nonprofit organizations
representing groups of persons protected under title
VIII of the Civil Rights Act of 1968, State and local
agencies certified by the Secretary under section
810(f) of the Fair Housing Act, [or other public or
private entities] or other public or private nonprofit
entities that are formulating or carrying out programs
to prevent or eliminate discriminatory housing
practices, shall establish or support education and
outreach programs at the regional and local levels.
(3) Community-based programs.--The Secretary shall
provide funding to fair housing organizations and other
nonprofit organizations representing groups of persons
protected under title VIII of the Civil Rights Act of
1968, [or other public or private entities] or other
public or private nonprofit entities that are
formulating or carrying out programs to prevent or
eliminate discriminatory housing practices, to support
community-based education and outreach activities,
including school, church, and community presentations,
conferences, and other educational activities.
(4) Limitation.--Notwithstanding any other provision
of this section, a State or local agency certified by
the Secretary under section 810(f) of the Fair Housing
Act may receive assistance under this subsection only
to carry out activities eligible for assistance under
this subsection in areas in which no qualified fair
housing enforcement organization is available to carry
out such activities.
(5) Eligibility.--Notwithstanding any other provision
of this section, if an award of funding under
subsection (b) for multiple fiscal years has been made
to a qualified fair housing enforcement organization,
such organization is, subject only to the availability
of amounts provided in appropriation Acts, eligible to
receive funding under this subsection for each fiscal
year covered by such award under subsection (b).
(e) Program Administration.--
(1) Not less than 30 days before providing a grant or
entering into any contract or cooperative agreement to
carry out activities authorized by this section, the
Secretary shall submit notification of such proposed
grant, contract, or cooperative agreement (including a
description of the geographical distribution of such
contracts) to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
[Banking, Finance and Urban Affairs] Financial Services
of the House of Representatives.
(2) Priority.--In providing assistance under this
section with respect to metropolitan statistical areas
for which there are multiple applications for such
assistance, the Secretary shall give priority to
applications submitted by qualified fair housing
enforcement organizations that have experience in
conducting fair housing enforcement activities.
(f) Regulations.--
(1) The Secretary shall issue such regulations as may
be necessary to carry out the provisions of this
section.
(2) The Secretray shall, for use during the
demonstration authorized in this section, establish
guidelines for testing activities funded under the
private enforcement initiative of the fair housing
initiatives program. The purpose of such guidelines
shall be to ensure that investigations in support of
fair housing enforcement efforts described in
subsection (a)(1) shall develop credible and objective
evidence of discriminatory housing practices. Such
guidelines shall apply only to activities funded under
this section, shall not be construed to limit or
otherwise restrict the use of facts secured through
testing not funded under this section in any legal
proceeding under Federal fair housing laws, and shall
not be used to restrict individuals or entities,
including those participating in the fair housing
initiatives program, from pursuing any right or remedy
guaranteed by Federal law. Not later than 6 months
after the end of the demonstration period authorized in
this section, the Secretary shall submit to Congress
the evaluation of the Secretary of the effectiveness of
such guidelines in achieving the purposes of this
section.
(3) Such regulations shall include provisions
governing applications for assistance under this
section, and shall require each such application to
contain--
(A) a description of the assisted activities
proposed to be undertaken by the applicant,
together with the estimated costs and schedule
for completion of such activities;
(B) a description of the experience of the
applicant in formulating or carrying out
programs to prevent or eliminate discriminatory
housing practices;
(C) available information, including studies
made by or available to the applicant,
indicating the nature and extent of
discriminatory housing practices occurring in
the general location where the applicant
proposes to conduct its assisted activities,
and the relationship of such activities to such
practices:
(D) an estimate of such other public or
private resources as may be available to assist
the proposed activities;
(E) a description of proposed procedures to
be used by the applicant for monitoring conduct
and evaluating results of the proposed
activities; and
(F) any additional information required by
the Secretary.
(4) Regulations issued under this subsection shall
not become effective prior to the expiration of 90 days
after the Secretary transmits such regulations, in the
form such regulations are intended to be published, to
the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Banking, Finance and
Urban Affairs of the House of Representatives.
(5) The Secretary shall not obligate or expend any
amount under this section before the effective date of
the regulations required under this subsection.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out the provisions of this section,
$21,000,000 for fiscal year 1993 and $26,000,000 for fiscal
year 1994, of which--
[(1) not less than $3,820,000 for fiscal year 1993
and $8,500,000 for fiscal year 1994 shall be for
private enforcement initiatives authorized under
subsection (b), divided equally between activities
specified under subsection (b)(1) and those specified
under subsection (b)(2);
[(2) not less than $2,230,000 for fiscal year 1993
and $8,500,000 for fiscal year 1994 shall be for
qualified fair housing enforcement organizations
authorized under subsection (c)(1);
[(3) not less than $2,010,000 for fiscal year 1993
and $4,000,000 for fiscal year 1994 shall be for the
creation of new fair housing enforcement organizations
authorized under subsection (c)(2); and
[(4) not less than $2,540,000 for fiscal year 1993
and $5,000,000 for fiscal year 1994 shall be for
education and outreach programs authorized under
subsection (d), to be divided equally between
activities specified under subsection (d)(1) and those
specified under subsections (d)(2) and (d)(3). Any
amount appropriated under this section shall remain
available until expended.]
(g) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to carry out this section--
(A) $58,000,000 for each of fiscal years 2021
through 2025, of which--
(i) $55,000,000 shall be available
for any activities under this section
other than programs under subsection
(a)(3), of which--
(I) not less than $38,000,000
shall be for private
enforcement initiatives
authorized under subsection
(b);
(II) not less than $1,500,000
shall be for the fair housing
organizations initiative under
subsection (c);
(III) not less than
$10,000,000 shall be for the
education and outreach
initiative under subsection
(d), of which--
(aa) at least
$8,000,000 shall be for
local education and
outreach activities;
and
(bb) at least
$2,000,000 shall be for
national media
activities; and
(IV) any remaining amounts
shall be used for any program
activities authorized under
this section; and
(ii) $3,000,000 shall be available
only for programs under subsection
(a)(3); and
(B) $70,000,000 for each of fiscal years 2026
through 2031, of which--
(i) for each such fiscal year,
$65,000,000 shall be available for any
activities under this section other
than programs under subsection (a)(3),
of which--
(I) not less than $44,000,000
shall be for private
enforcement initiatives
authorized under subsection
(b);
(II) not less than $1,500,000
shall be for the fair housing
organizations initiative under
subsection (c);
(III) not less than
$12,500,000 shall be for the
education and outreach
initiative under subsection
(d), of which--
(aa) at least
$10,000,000 shall be
for local education and
outreach activities;
and
(bb) at least
$2,500,000 shall be for
national media
activities; and
(IV) any remaining amounts
shall be used for any program
activities authorized under
this section; and
(ii) for each such fiscal year
$5,000,000 shall be available only for
programs under subsection (a)(3).
(2) Availability.--Any amount appropriated under this
section shall remain available until expended to carry
out the provisions of this section.
(3) Award of funding.--Within 90 days after the date
of the enactment of any Act making amounts available to
carry out this section, the Secretary shall issue a
Notice of Funding Availability with respect to such
amounts and, within 180 days after such date of
enactment, the Secretary shall award such amounts.
(h) Qualified Fair Housing Enforcement Organization.--(1) The
term ``qualified fair housing enforcement organization'' means
any organization that--
(A) is organized as a private, tax-exempt, nonprofit,
charitable organization;
(B) has at least 2 years experience in complaint
intake, complaint investigation, testing for fair
housing violations and enforcement of meritorious
claims; and
(C) is engaged in all the activities listed in
paragraph (1)(B) at the time of application for
assistance under this section.
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
subparagraph (B) and meets the criteria described in
subparagraphs (A) and (C).
(2) The term ``fair housing enforcement organization'' means
any organization that--
(A) meets the requirements specified in paragraph
(1)(A);
(B) is currently engaged in the activities specified
in paragraph (1)(B);
(C) upon the receipt of funds under this section will
become engaged in all of the activities specified in
paragraph (1)(B); and
(D) for purposes of funding under subsection (b), has
at least 1 year of experience in the activities
specified in paragraph (1)(B).
(i) Prohibition on Use of Funds.--None of the funds
authorized under this section may be used by the Secretary for
purposes of settling claims, satisfying judgments or fulfilling
court orders in any litigation action involving either the
Department or housing providers funded by the Department. None
of the funds authorized under this section may be used by the
Department for administrative costs.
(j) Reporting Requirements.--Not later than 180 days after
the close of each fiscal year in which assistance under this
section is furnished, the Secretary shall prepare and submit to
the Congress a comprehensive report regarding such preceding
fiscal year, which shall contain--
(1) a description of the progress made in
accomplishing the objectives of this section;
(2) a summary of all the private enforcement
activities carried out under this section [and the use
of such funds during the preceding fiscal year], the
use of such funds during the preceding fiscal year, and
outcomes such as the number of housing units made
available and accessible to protected classes under the
Fair Housing Act (42 U.S.C. 3601 et seq.);
(3) a list of all fair housing enforcement
organizations funded under this section during the
preceding fiscal year, identified on a State-by-State
basis;
(4) a summary of all education and outreach
activities funded under this section and the use of
such funds during the preceding fiscal year; and
(5) any findings, conclusions, or recommendations of
the Secretary as a result of the funded activities.
* * * * * * *
MINORITY VIEWS
Committee Republicans unequivocally oppose illegal housing
discrimination and support efforts to hold bad actors
accountable. Unfortunately, H.R. 149 does nothing to deter or
punish localities that allow discrimination to occur and will
not support the victims of housing discrimination.
Instead, H.R. 149 drastically increases taxpayer funding
for a few non-profits that are more interested in their bottom
line than targeting and punishing bad actors.
The bill authorizes $735 million in new grant funding for
the Department of Housing and Urban Development (HUD)'s Office
of Fair Housing Initiatives Program (FHIP). FHIP is responsible
for overseeing local, regional, and national fair housing
testing programs.
However, Committee Democrats have yet to demonstrate how
this increased funding would assist the current HUD fair
housing programs in eliminating discrimination. This bill
throws more money at organizations without clear accountability
or transparency requirements to understand how the funding will
be used. It will also do nothing to ensure that the federal
government is doing all it can to end illegal discrimination
and hold bad actors accountable.
Republicans offered three commonsense amendments during
Committee markup that would have strengthened HUD's efforts to
eradicate discrimination and address the specific failures of
H.R. 149:
Rep. Kustoff offered an amendment that would
have allowed HUD to suspend a locality's community
development grants for one year if they violate fair
housing laws.
Rep. Stivers offered an amendment that would
have made grantees under the program submit audited
financial statements to HUD to show that any grant
money is well spent.
Rep. Zeldin offered an amendment that would
have created a Victims Compensation Fund that would
help the true victims in those communities, not just
the nonprofits who discover violations of the law. Any
proceeds from lawsuits in this bill would be submitted
to the Fund and distributed to those who were
discriminated against before the bad actors were
discovered.
Each amendment was rejected by Democrats on a party line
vote.
Stakeholders, victims, and advocates know that simply
increasing funding alone will not end illegal housing
discrimination.
Rather than come together to ensure a bipartisan approach
to prevent, deter, and punish bad actors who discriminate in
housing, Committee Democrats took the partisan path.
By rejecting commonsense policies that are proven to deter
and punish bad actors, H.R. 149 fails to improve the very
program it claims to support. For these reasons, Committee
Republicans oppose H.R. 149.
Patrick T. McHenry.
Bill Posey.
Bill Huizenga.
Ann Wagner.
Scott R. Tipton.
J. French Hill.
Lee M. Zeldin.
Alexander X. Mooney.
Ted Budd.
Trey Hollingsworth.
John W. Rose.
Lance Gooden.
William R. Timmons, IV.
Frank D. Lucas.
Blaine Luetkemeyer.
Steve Stivers.
Andy Barr.
Roger Williams.
Tom Emmer.
Barry Loudermilk.
Warren Davidson.
David Kustoff.
Anthony Gonzalez.
Bryan Steil.
Denver Riggleman.
Van Taylor.
[all]