[Federal Register Volume 61, Number 63 (Monday, April 1, 1996)]
[Rules and Regulations]
[Pages 14378-14380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7786]




[[Page 14377]]

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Part II





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 100 et al.



Office of the Assistant Secretary for Fair Housing and Equal 
Opportunity; Regulatory Reinvention; Streamlining of HUD's Regulations 
Implementing the Fair Housing Act; Final Rule

  Federal Register / Vol. 61, No. 63 / Monday, April 1, 1996 / Rules 
and Regulations  

[[Page 14378]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 100, 103, and 109

[Docket No. FR-4029-F-01]
RIN 2529-AA78


Office of the Assistant Secretary for Fair Housing and Equal 
Opportunity; Regulatory Reinvention; Streamlining of HUD's Regulations 
Implementing the Fair Housing Act

AGENCY: Office of the Assistant Secretary for Fair Housing and Equal 
Opportunity, HUD.

ACTION: Final rule.

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SUMMARY: This final rule amends HUD's regulations implementing the 
requirements of the Fair Housing Act. The Fair Housing Act makes it 
unlawful to discriminate in any aspect relating to the sale, rental, or 
financing of dwellings or in the provision of brokerage services or 
facilities in connection with the sale or rental of a dwelling. In an 
effort to comply with the President's regulatory reform initiatives, 
this rule streamlines these regulations by eliminating provisions which 
are obsolete or which do not require codification. This final rule will 
assist in HUD's continuing efforts to make its regulations clearer and 
to streamline the content of title 24 of the Code of Federal 
Regulations.

EFFECTIVE DATE: May 1, 1996.

FOR FURTHER INFORMATION CONTACT: Susan Forward, Deputy Assistant 
Secretary for Enforcement and Investigations, Room 5106, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410, telephone number (202) 708-4211. For hearing- and speech-
impaired persons, this number may be accessed via TDD by calling the 
Federal Information Relay Service at 1-800-877-8339. (With the 
exception of the ``800'' number, these numbers are not toll free.)

SUPPLEMENTARY INFORMATION:

I. Background

A. The Fair Housing Act and the President's Regulatory Reinvention 
Initiative

    The Fair Housing Act (title VIII of the Civil Rights Act, as 
amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. 3600-
3619) (the Act) makes it unlawful to discriminate in any aspect 
relating to the sale, rental, or financing of dwellings or in the 
provision of brokerage services or facilities in connection with the 
sale or rental of a dwelling because of race, color, religion, sex, 
disability, familial status, or national origin.1 HUD has 
implemented the requirements of the Fair Housing Act in 24 CFR parts 
100, 103, 106, and 109.

    \1\ The Fair Housing Act uses the term ``handicap.'' However, 
HUD prefers the use of the term ``disability.'' Accordingly, this 
final rule makes the necessary substitution.
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    On March 4, 1995, President Clinton issued a memorandum to all 
Federal departments and agencies regarding regulatory reinvention. In 
response to this memorandum, HUD conducted a page-by-page review of its 
regulations to determine which can be eliminated, consolidated, or 
otherwise improved. As part of this review, HUD examined its 
regulations implementing the Act. HUD has determined that these 
regulations may be streamlined by eliminating unnecessary provisions.
    Some provisions in HUD's regulations implementing the Act are now 
obsolete and may be removed. Further, some provisions are not 
regulatory requirements and, therefore, do not require codification. 
For example, several sections contain nonbinding guidance or 
explanations. While this information is very helpful to HUD's clients, 
HUD will more appropriately provide this information through handbook 
guidance or other materials, rather than maintain it in title 24. HUD 
believes these revisions will strengthen its enforcement of the Act by 
making the regulations clearer and more concise. The following section 
of the preamble details the streamlining amendments made by this final 
rule.

B. Streamlining Amendments

    This final rule implements the amendments to the Act made by the 
Housing for Older Persons Act of 1995 (Pub. L. No. 104-76, 109 Stat. 
787 (1995)) by revising HUD's provisions governing housing for persons 
``55 or over.'' Specifically, 24 CFR Secs. 100.304 and 100.315 have 
been merged, and the provisions of the amended Sec. 100.304 track the 
statutory language. In addition, the provisions describing the 
``significant facilities and services'' requirement for ``55 or over 
housing'' in Secs. 100.305, 100.306, 100.307, 100.310, and 100.316, 
have been deleted to conform to the new requirements for ``55 or over 
housing'' established by the Housing for Older Persons Act.
    The President's regulatory reform initiative calls for the 
simplification of regulatory requirements. Accordingly, this final rule 
streamlines paragraph (b) of Sec. 103.30 to eliminate the detailed 
requirements for the form of fair housing complaints. As amended, this 
paragraph states only that the Assistant Secretary for Fair Housing and 
Equal Opportunity may require complaints to be made on prescribed 
forms.
    Sections 103.105 and 103.110 have been revised to eliminate 
redundancies caused by HUD's consolidation, through a separate 
rulemaking, of the requirements for certification of State and local 
enforcement agencies and the Fair Housing Assistance Program (FHAP) 
regulations. Paragraph (a) of Sec. 103.105 has been removed, as it 
duplicates a provision of the consolidated certification/FHAP rule. 
This final rule also amends paragraph (c) of Sec. 103.110 to eliminate 
provisions that are repeated in the consolidated rule.
    Section 103.225 has been clarified by eliminating the reference to 
``the reasonable cause determination.'' The section is revised to make 
clear that an investigation will remain open until a determination has 
been made or a conciliation agreement has been executed and approved. 
Parts 106 (Fair Housing Administrative Meetings) and 109 (Advertising 
Guidelines) have been entirely eliminated, in accordance with the 
President's initiative on regulatory reinvention and reform, which 
requires the deletion of nonbinding guidance or explanations. While 
this information is very helpful to recipients, HUD will more 
appropriately provide this nonbinding guidance and information through 
handbook guidance or other materials rather than maintain it in the 
CFR.

II. Justification for Final Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
rule for effect, in accordance with its own regulations on rulemaking 
in 24 CFR part 10. However, part 10 provides for exceptions to the 
general rule if the agency finds good cause to omit advance notice and 
public participation. The good cause requirement is satisfied when 
prior public procedure is ``impracticable, unnecessary, or contrary to 
the public interest'' (24 CFR 10.1). HUD finds that good cause exists 
to publish this rule for effect without first soliciting public 
comment. This rule merely removes obsolete regulatory provisions, 
guidelines and advisory materials and conforms regulatory provisions to 
current public law. It does not establish or affect substantive policy. 
Therefore, prior public comment is unnecessary.

[[Page 14379]]


III. Other Matters

A. Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this final rule, and in so 
doing certifies that this rule will not have a significant economic 
impact on a substantial number of small entities. This rule merely 
streamlines regulations by removing unnecessary provisions. The rule 
will have no adverse or disproportionate economic impact on small 
businesses.

B. Environmental Impact

    This rulemaking does not have an environmental impact. This 
rulemaking simply amends an existing regulation by consolidating and 
streamlining provisions and does not alter the environmental effect of 
the regulations being amended. A Finding of No Significant Impact with 
respect to the environment was made in accordance with HUD regulations 
in 24 CFR part 50 that implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time of 
development of regulations implementing the Act. That finding remains 
applicable to this rule and is available for public inspection between 
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket 
Clerk, Office of General Counsel, Room 10276, Department of Housing and 
Urban Development, 451 Seventh Street, SW, Washington, DC.

C. Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this rule 
will not have substantial direct effects on States or their political 
subdivisions, or the relationship between the Federal government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government. No programmatic or policy changes 
will result from this rule that would affect the relationship between 
the Federal Government and State and local governments.

D. Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule will not have 
the potential for significant impact on family formation, maintenance, 
or general well-being, and thus is not subject to review under the 
Order. No significant change in existing HUD policies or programs will 
result from promulgation of this rule.

List of Subjects

24 CFR Part 100

    Aged, Fair housing, Individuals with disabilities, Mortgages, 
Reporting and recordkeeping requirements.

24 CFR Part 103

    Administrative practice and procedure, Aged, Fair housing, 
Individuals with disabilities, Intergovernmental relations, 
Investigations, Mortgages, Penalties, Reporting and recordkeeping 
requirements.

24 CFR Part 109

    Administrative practice and procedure, Advertising, Aged, Fair 
housing, Individuals with disabilities, Mortgages.

    Accordingly, under the authority of 42 U.S.C. 3535(d), 24 CFR parts 
100 and 103 are amended, and parts 106 and 109 are removed as follows:

PART 100--DISCRIMINATORY CONDUCT UNDER THE FAIR HOUSING ACT

    1. The authority citation for part 100 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d), 3600-3619.

    2. Section 100.304 is revised to read as follows:


Sec. 100.304  55 or over housing.

    (a) The provisions regarding familial status shall not apply to 
housing intended and operated for occupancy by at least one person 55 
years of age or older per unit pursuant to this section.
    (b) In order to qualify as housing for older persons under this 
section, at least 80 percent of the units in the housing facility must 
be occupied by at least one person 55 years of age or older, except 
that a newly constructed housing facility for first occupancy after 
March 12, 1989, need not comply with this section until 25 percent of 
the units in the facility are occupied.
    (c) Housing satisfies the requirements of this section even though:
    (1) On September 13, 1988, under 80 percent of the occupied units 
in the housing facility are occupied by at least one person 55 years of 
age or older per unit, provided that at least 80 percent of the units 
that are occupied after September 13, 1988, are occupied by at least 
one person 55 years of age or older.
    (2) There are unoccupied units, provided that at least 80 percent 
of the occupied units are occupied by at least one person 55 years of 
age or older.
    (3) There are units occupied by employees of the housing provider 
(and family members residing in the same unit) who are under 55 years 
of age, provided the employees perform substantial duties directly 
related to the management or maintenance of the housing.
    (4) There are insufficient units occupied by at least one person 55 
years of age or older to meet the requirements of this section, but the 
housing provider at the time the exemption is asserted:
    (i) Reserves all unoccupied units for occupancy by at least one 
person 55 years of age or older until at least 80 percent of the units 
are occupied by at least one person who is 55 or older; or
    (ii) Where application of the 80 percent rule results in a fraction 
of a unit, that unit shall be considered to be included in the units 
which must be occupied by at least one person who is 55 or older.


Secs. 100.305, 100.306, 100.307, 100.310, 100.315, and 
100.316  [Removed]

    3. Sections 100.305, 100.306, 100.307, 100.310, 100.315, and 
100.316 are removed.

PART 103--FAIR HOUSING COMPLAINT PROCESSING

    4. The authority citation for part 103 is revised to read as 
follows:

    Authority: 42 U.S.C. 3535(d), 3600-3619.

    5. Section 103.30 is amended by revising paragraph (b) to read as 
follows:


Sec. 103.30  Form and content of complaint.

* * * * *
    (b) The Assistant Secretary may require complaints to be made on 
prescribed forms.
* * * * *


Sec. 103.105  [Amended]

    6. Section 103.105 is amended by removing paragraph (a) and 
removing the paragraph designation ``(b)'' from paragraph (b).
    7. Section 103.110 is amended by revising paragraph (c) to read as 
follows:


Sec. 103.110  Reactivation of referred complaints.

* * * * *
    (c) The substantially equivalent State or local agency has failed 
to commence proceedings with respect to the complaint within 30 days of 
the date that it received the notification and referral of the 
complaint; or the agency commenced proceedings within this 30-day 
period, but the Assistant Secretary determines that the agency has 
failed to carry the proceedings forward with reasonable promptness.

[[Page 14380]]

    8. Section 103.225 is revised to read as follows:


Sec. 103.225  Completion of investigation.

    The investigation will remain open until a determination is made 
under Sec. 103.400, or a conciliation agreement is executed and 
approved under Sec. 103.310. Unless it is impracticable to do so, the 
Assistant Secretary will complete the investigation of the alleged 
discriminatory housing practice within 100 days of the filing of the 
complaint (or where the Assistant Secretary reactivates the complaint, 
within 100 days after service of the notice of reactivation under 
Sec. 103.115). If the Assistant Secretary is unable to complete the 
investigation within the 100-day period, HUD will notify the aggrieved 
person and the respondent, by mail, of the reasons for the delay.

PART 109--[REMOVED]

    9. Part 109 is removed.

    Dated: February 22, 1996.
Elizabeth K. Julian,
Acting Assistant Secretary for Fair Housing and Equal Opportunity.
[FR Doc. 96-7786 Filed 3-29-96; 8:45 am]
BILLING CODE 4210-28-P