[Federal Register Volume 61, Number 194 (Friday, October 4, 1996)]
[Rules and Regulations]
[Pages 52216-52229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25301]



[[Page 52215]]


_______________________________________________________________________

Part VI





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 1, et al.



Consolidated HUD Hearing Procedures for Civil Rights Matters; Final 
Rule

  Federal Register / Vol. 61, No. 194 / Friday, October 4, 1996 / Rules 
and Regulations  

[[Page 52216]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 1, 2, 8, 103, 104, 146, and 180

[Docket No. FR-4077-F-01]
RIN 2501-AC27


Consolidated HUD Hearing Procedures for Civil Rights Matters

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule consolidates HUD's hearing procedures for 
nondiscrimination and equal opportunity matters in a new 24 CFR part 
180. Currently, the hearing procedures established under the various 
civil rights statutory authorities are described in different parts of 
title 24. The consolidation of these procedures will eliminate 
redundancy from title 24, present uniformity, and assist in HUD's 
efforts to streamline the contents of its regulations. Additionally, 
this final rule makes appropriate adjustments in stated penalty amounts 
pursuant to the Debt Collection Improvement Act of 1996.

EFFECTIVE DATE: November 4, 1996.

FOR FURTHER INFORMATION CONTACT: Carole W. Wilson, Associate General 
Counsel for Litigation and Fair Housing Enforcement, or Harry L. Carey, 
Assistant General Counsel for Fair Housing Enforcement, Department of 
Housing and Urban Development, 451 Seventh Street, SW, Room 10270, 
Washington, DC 20410, telephone number (202) 708-0570 (this number is 
not toll-free). Hearing- or speech-impaired persons may access this 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

A. Consolidating HUD's Civil Rights Hearing Procedures

    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 could be eliminated, consolidated, or 
otherwise improved. As a result of this review, HUD has decided to 
streamline its regulations governing the hearing procedures for civil 
rights matters.
    Currently, the procedures for administrative hearings under the 
various statutory civil rights authorities are described in different 
parts of title 24. For example, HUD's regulations governing 
administrative proceedings under the Fair Housing Act (42 U.S.C. 3601-
3619) are found at 24 CFR part 104. The HUD regulations describing the 
hearing procedures under title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d-1) and the Age Discrimination Act of 1975 (42 U.S.C. 6103) 
are located at 24 CFR part 2. The procedures for hearings under section 
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) are found at 24 
CFR part 8.
    Many of these regulations contain nearly identical provisions. In 
order to eliminate redundancy from title 24 of the Code of Federal 
Regulations, HUD is consolidating its civil rights hearing procedures 
in a new 24 CFR part 180. The establishment of a uniform set of hearing 
procedures will also assist in reducing confusion among HUD program 
participants, who in the past were faced with separate implementing HUD 
regulations for each civil rights statutory authority. This final rule 
also assists participants in HUD programs by making several clarifying, 
non-substantive, revisions to the existing civil rights hearing 
procedures. On April 23, 1996 (61 FR 18026), HUD published a rule for 
public comment proposing to consolidate many of its non-civil rights 
hearing procedures in 24 CFR part 26. The rule finalizing the April 23, 
1996 proposed rule was published on September 24, 1996 (61 FR 50208), 
and takes effect on October 24, 1996.
    New 24 CFR part 180 extends to all nondiscrimination hearings many 
procedures that previously were found only in the regulations governing 
hearings under the Fair Housing Act. In the seven years since HUD 
published 24 CFR part 104 (54 FR 3298, January 23, 1989), these 
procedures have assisted parties in obtaining equitable resolutions to 
complaints of unlawful discrimination. Because of this success, 24 CFR 
part 180 adopts many of these procedures for use in administrative 
hearings under other civil rights authorities. For instance, 
Sec. 180.445 incorporates the settlement judge process that was 
developed by HUD's administrative law judges to resolve cases without 
the need for hearings. This rule also requires the parties to exchange 
exhibits and lists of witnesses prior to a hearing (See Secs. 180.440 
and 180.645).

B. Changes to Title 24

    In addition to establishing new part 180, this final rule makes 
several necessary conforming amendments to HUD's regulations in title 
24. For example, 24 CFR part 2 (Practice and Procedure for Hearings 
Under Title VI of the Civil Rights Act of 1964) and 24 CFR part 104 
(Administrative Proceedings Under Section 812 of the Fair Housing Act), 
are rendered obsolete by the consolidated hearing procedures in new 
part 180. Accordingly, the final rule removes these parts from title 
24. This rule also amends the following HUD regulations to remove any 
provisions describing nondiscrimination hearing procedures and to 
reference new 24 CFR part 180:
    1. 24 CFR part 1 (Nondiscrimination in Federally Assisted Programs 
of the Department of Housing and Urban Development--Effectuation of 
Title VI of the Civil Rights Act of 1964);
    2. 24 CFR part 8 (Nondiscrimination Based On Handicap in Federally 
assisted Programs and Activities of the Department of Housing and Urban 
Development);
    3. 24 CFR part 103 (Fair Housing--Complaint Processing); and
    4. 24 CFR part 146 (Nondiscrimination on the Basis of Age in HUD 
Programs or Activities Receiving Federal Financial Assistance).

C. The Debt Collection Improvement Act of 1996

    Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990 (28 U.S.C. 2461 note; Pub. L. 101-410, approved October 5, 1990; 
104 Stat. 890), as amended by the Debt Collection Improvement Act of 
1996 (31 U.S.C. 3701 note; Pub. L. 104-134, approved April 26, 1996; 
110 Stat. 1321-358), each Federal agency is required to issue 
regulations adjusting for inflation the maximum civil money penalties 
that can be imposed pursuant to such agency's statutes. This final rule 
adjusts the penalty amounts formerly described in Sec. 104.910 and set 
forth in Sec. 180.607 of this final rule.

II. Justification for Final Rulemaking

    In accordance with its own regulations on rulemaking in 24 CFR part 
10, HUD generally publishes a rule for public comment before issuing a 
rule for effect. However, part 10 provides an exception to the public 
comment requirement if the agency finds good cause to omit advance 
notice and public participation. The good cause requirement is 
satisfied when public comment is ``impracticable, unnecessary, or 
contrary to the public interest'' (24 CFR 10.1). HUD finds that in this 
case it is unnecessary to solicit public comment prior to publication 
of the rule for effect.

[[Page 52217]]

    This final rule consolidates HUD's regulations governing 
nondiscrimination hearing procedures in a new 24 CFR part 180. 
Currently, the administrative hearing procedures under the various 
civil rights statutory authorities are described in different parts of 
title 24. Many of these regulations contain nearly identical 
provisions. Consolidation of these requirements in a single part will 
eliminate redundancy, streamline the content of title 24, and establish 
uniformity. Although this final rule makes several clarifying revisions 
to the existing nondiscrimination hearing procedures, it does not 
affect or establish substantive policy.
    This rule also amends the maximum penalty amounts which may be 
imposed pursuant to a nondiscrimination hearing. These amendments are 
mandated by Debt Collection Improvement Act of 1996. Accordingly, it is 
unnecessary for HUD to solicit public comment on the adjustments to the 
penalty amounts.

III. Findings and Certifications

Executive Order 12866, Regulatory Planning and Review

    This final rule was reviewed by the Office of Management and Budget 
under Executive Order 12866, Regulatory Planning and Review. Any 
changes made to the final rule as a result of that review are clearly 
identified in the docket file, which is available for public inspection 
in the office of the Department's Rules Docket Clerk, Room 10276, 451 
Seventh Street, SW, Washington, DC 20410-0500.

Unfunded Mandates Reform Act

    The Secretary has reviewed this rule before publication and by 
approving it certifies, in accordance with the Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal 
mandate that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year.

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. As part of HUD's 
continuing efforts to implement the President's regulatory reform 
initiative, and to eliminate redundancy from title 24, this rule 
consolidates HUD's nondiscrimination hearing procedures. This final 
rule establishes a new 24 CFR part 180 which sets forth a uniform set 
of hearing procedures for civil rights matters. The rule will have no 
adverse or disproportionate economic impact on small entities.

Environmental Impact

    In accordance with 40 CFR 1508.4 of the regulations of the Council 
on Environmental Quality and 24 CFR 50.20(k) of HUD regulations, the 
policies and procedures contained in this rule relate only to hearing 
procedures and administrative law decisions, which do not constitute 
development decisions and do not affect the physical condition of a 
project area or building site. Therefore, this rule categorically is 
excluded from the requirements of the National Environmental Policy 
Act.

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. This final rule merely consolidates 
HUD's nondiscrimination hearing procedures. No programmatic or policy 
changes will result from this rule that would affect the relationship 
between the Federal Government and State and local governments.

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. This final rule eliminates redundancy from title 24 by 
consolidating HUD's nondiscrimination hearing procedures in a new 24 
CFR part 180. No significant change in existing HUD policies or 
programs will result from promulgation of this rule.

List of Subjects

24 CFR Part 1

    Administrative practice and procedure, Civil rights, Reporting and 
recordkeeping requirements.

24 CFR Part 2

    Administrative practice and procedure, Civil rights.

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 104

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

24 CFR Part 146

    Administrative practice and procedure, Aged, Civil rights, Grant 
programs--housing and community development, Loan programs--housing and 
community development, Reporting and recordkeeping requirements.

24 CFR Part 180

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

    Accordingly, title 24 of the Code of Federal Regulations is amended 
as follows:

PART 1--NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS OF THE 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT--EFFECTUATION OF TITLE 
VI OF THE CIVIL RIGHTS ACT OF 1964

    1. The authority citation for 24 CFR part 1 is revised to read as 
follows:

    Authority: 42 U.S.C. 2000d-1 and 3535(d).

    2. Section 1.9 is amended by revising paragraph (b) and removing 
paragraph (c), (d), and (e), to read as follows:


Sec. 1.9  Hearings.

* * * * *
    (b) Hearing procedures. Hearings shall be conducted in accordance 
with 24 CFR part 180.


Secs. 1.10,1.11  [Removed]

    3. Sections 1.10 and 1.11 are removed.


Sec. 1.112  [Redesignated as Sec. 1.10]

    4. Section 1.12 is redesignated as Sec. 1.10.

PART 2--[REMOVED]

    5. Under the authority of 42 U.S.C. 3535(d), Part 2 is removed.

[[Page 52218]]

PART 8--NONDISCRIMINATION BASED ON HANDICAP IN FEDERALLY ASSISTED 
PROGRAMS AND ACTIVITIES OF THE DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT

    6. The authority citation for part 8 is revised to read as follows:

    Authority: 29 U.S.C. 794; 42 U.S.C. 3535(d) and 5309.

    7. Section 8.58 is amended by revising paragraph (b) and by 
removing paragraphs (c), (d), and (e), to read as follows:


Sec. 8.58  Hearings.

* * * * *
    (b) Hearing procedures. Hearings shall be conducted in accordance 
with 24 CFR part 180.
    8. Section 8.59 and subpart E, consisting of Secs. 8.60 through 
8.71, are removed.

PART 103--FAIR HOUSING--COMPLAINT PROCESSING

    9. The authority citation for 24 CFR part 103 continues to read as 
follows:

    Authority: 42 U.S.C. 3601-19; 42 U.S.C. 3535(d).


Secs. 103.45, 103.50, 103.100, 103.115, 103.215, 103.330, 103.405, 
103.410, 103.500  [Amended]

    10. Sections 103.45, 103.50, 103.100, 103.115, 103.215, 103.330, 
103.405, 103.410, 103.500 are amended by replacing all references to 
``part 104'' with ``part 180.''

PART 104--[REMOVED]

    11. Under the authority of 42 U.S.C. 3535(d), Part 104 is removed.

PART 146--NONDISCRIMINATION ON THE BASIS OF AGE IN HUD PROGRAMS OR 
ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE

    12. The authority citation for 24 CFR part 146 is revised to read 
as follows:

    Authority: 42 U.S.C. 3535(d) and 6103.

    13. Section 146.43 is revised to read as follows:


Sec. 146.43  Hearings, decisions, post-termination proceedings.

    The provisions of 24 CFR part 180 apply to HUD enforcement of this 
part.
    14. A new part 180 is added to read as follows:

PART 180--HEARING PROCEDURES FOR CIVIL RIGHTS MATTERS

Subpart A--General Information

Sec.
180.100 Definitions.
180.105 Scope of rules.

Subpart B--Administrative Law Judge

180.200 Designation.
180.205 Authority.
180.210 Withdrawal or disqualification of ALJ.
180.215 Ex Parte communications.
180.220 Separation of functions.

Subpart C--Parties

180.300 Rights of parties.
180.305 Representation.
180.310 Parties.
180.315 Standards of conduct.

Subpart D--Proceedings Prior to Hearing

180.400  Service and filing.
180.405  Time computations.
180.410  Charges under the Fair Housing Act.
180.415  Notice of proposed adverse action regarding Federal 
financial assistance in Non-Fair Housing Act matters.
180.420  Answer.
180.425  Amendments to pleadings.
180.430  Motions.
180.435  Prehearing statements.
180.440  Prehearing conferences.
180.445  Settlement negotiations before a settlement judge.
180.450  Resolution of charge or notice of proposed adverse action.

Subpart E--Discovery

180.500  Discovery.
180.505  Supplementation of responses.
180.510  Interrogatories.
180.515  Depositions.
180.520  Use of deposition at hearings.
180.525  Requests for production of documents or things for 
inspection or other purposes, including physical and mental 
examinations.
180.530  Requests for admissions.
180.535  Protective orders.
180.540  Motion to compel discovery.
180.545  Subpoenas.

Subpart F--Procedures at Hearing

180.600  Date and place of hearing.
180.605  Conduct of hearings.
180.610  Waiver of right to appear.
180.615  Failure of party to appear.
180.620  Evidence.
180.625  Record of hearing.
180.630  Stipulations.
180.635  Written testimony.
180.640  In camera and protective orders.
180.645  Exhibits.
180.650  Public document items.
180.655  Witnesses.
180.660  Closing of record.
180.665  Arguments and briefs.
180.670  Initial decision of ALJ.
180.675  Petitions for review.
180.680  Final decisions.

Subpart G--Post-Final Decision in Fair Housing Cases

180.700  Action upon issuance of a final decision in Fair Housing 
Act cases.
180.705  Attorney's fees and costs.
180.710  Judicial review of final decision.
180.715  Enforcement of final decision.

Subpart H--Post-Final Decision in Non-Fair Housing Act Matters

180.800  Post-termination proceedings.
180.805  Judicial review of final decision.

    Authority: 29 U.S.C. 794; 42 U.S.C. 2000d-1 3535(d), 3601-3619; 
5301-5320, and 6103.

Subpart A--General Information


Sec. 180.100  Definitions.

    As used in this part:
    (a) The terms ALJ, Department, Fair Housing Act, General Counsel, 
and HUD are defined in 24 CFR part 5, subpart A.
    (b) The terms Aggrieved Person, Assistant Secretary, Attorney 
General, Discriminatory Housing Practice, Person, and State are defined 
in 24 CFR part 103, subpart A.
    (c) Agency has the same meaning as HUD.
    Applicant and Application have the meanings provided in 24 CFR 1.2 
or 24 CFR 8.3, as applicable.
    Charge means the statement of facts issued under 24 CFR 103.405 
upon which HUD has found reasonable cause to believe that a 
discriminatory housing practice has occurred or is about to occur.
    Chief Docket Clerk is the docket clerk for HUD's Office of ALJs, 
409 Third Street, SW, Suite 320, Washington, DC 20024. Telephone 
numbers are (202) 708-5004 and FAX (202) 708-5014.
    Complaint means a complaint filed under the statutes covered by 
this part.
    Complainant means the person (including the Assistant Secretary) 
who filed a complaint under the statutes covered by this part.
    Fair Housing Act matters refers to proceedings under this part 
pursuant to the Fair Housing Act and the implementing regulations at 24 
CFR parts 100 and 103.
    Federal financial assistance has the meaning provided in 24 CFR 
1.2, 24 CFR 8.3, or 24 CFR 146.7, as applicable.
    Hearing means a trial-type proceeding that involves the submission 
of evidence, either by oral presentation or written submission, and 
briefs and oral arguments on the evidence and applicable law.
    Intervenor is a person entitled by law or permitted by the ALJ to 
participate as a party.
    Non-Fair Housing Act matters refers to proceedings under this part 
pursuant to:
    (1) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-1) 
and the

[[Page 52219]]

implementing regulations at 24 CFR part 1;
    (2) Section 504 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 794) and the implementing regulations at 24 CFR part 8; or
    (3) The Age Discrimination Act of 1975 (42 U.S.C. 6103) and the 
implementing regulations at 24 CFR part 146.
    Notice of Proposed Adverse Action is the statement of facts issued 
pursuant to a non-Fair Housing Act matter upon which HUD has found 
reason to terminate or refuse to grant or continue Federal financial 
assistance.
    Party is a person who has full participation rights in a proceeding 
under this part.
    Prevailing party has the same meaning as the term has in section 
722 of the Revised Statutes of the United States (42 U.S.C. 1988).
    Recipient has the meaning provided in 24 CFR 1.2, 24 CFR 8.3, or 24 
CFR 146.7, as applicable.
    Respondent means the person accused of violating one of the 
statutes covered by this part, including a recipient.
    Secretary means the Secretary of HUD, or to the extent of any 
delegation of authority by the Secretary to act under any of the 
statutory authorities listed in Sec. 180.105(a), any other HUD official 
to whom the Secretary may hereafter delegate such authority.


Sec. 180.105  Scope of rules.

    (a) This part contains the rules of practice and procedure 
applicable to administrative proceedings before an ALJ under the 
following authorities:
    (1) The Fair Housing Act (42 U.S.C. 3601-3619) and the implementing 
regulations at 24 CFR parts 100 and 103, where no election to proceed 
in federal district court has been made;
    (2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-1), 
and the implementing regulations at 24 CFR part 1;
    (3) Section 504 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 794), and the implementing regulations at 24 CFR part 8; and
    (4) The Age Discrimination Act of 1975 (42 U.S.C. 6103), and the 
implementing regulations at 24 CFR part 146.
    (b) In the absence of a specific provision, the Federal Rules of 
Civil Procedure shall serve as a general guide.
    (c) Hearings under this part shall be conducted as expeditiously 
and inexpensively as possible, consistent with the needs and rights of 
the parties to obtain a fair hearing and a complete record.
    (d) Except to the extent that a waiver would otherwise be contrary 
to law, the ALJ may, after adequate notice to all interested persons, 
modify or waive any of the rules in this part upon a determination that 
no person will be prejudiced and that the ends of justice will be 
served.
    (e) All pleadings, correspondence, exhibits, transcripts of 
testimony, exceptions, briefs, decisions, and other documents filed in 
any proceeding may be inspected in the Chief Docket Clerk's office 
during regular business hours.

Subpart B--Administrative Law Judge


Sec. 180.200  Designation.

    Proceedings under this part shall be presided over by an ALJ 
appointed under 5 U.S.C. 3105. HUD's Chief ALJ shall designate the 
presiding ALJ.


Sec. 180.205  Authority.

    The ALJ shall have all powers necessary to conduct fair, 
expeditious and impartial hearings, including the power to:
    (a) Administer oaths and affirmations and examine witnesses;
    (b) Rule on offers of proof and receive evidence;
    (c) Take depositions or have depositions taken when the ends of 
justice would be served;
    (d) Regulate the course of the hearing and the conduct of persons 
at the hearing;
    (e) Hold conferences for the settlement or simplification of the 
issues by consent of the parties;
    (f) Rule on motions, procedural requests, and similar matters;
    (g) Make and issue initial decisions;
    (h) Impose appropriate sanctions against any person failing to obey 
an order, refusing to adhere to reasonable standards of orderly and 
ethical conduct, or refusing to act in good faith;
    (i) Issue subpoenas if authorized by law; and
    (j) Exercise any other powers necessary and appropriate for the 
purpose and conduct of the proceeding as authorized by the rules in 
this part or in conformance with statute, including 5 U.S.C. 551-59.


Sec. 180.210  Withdrawal or disqualification of ALJ.

    (a) Disqualification. If an ALJ finds that there is a basis for 
his/her disqualification in a proceeding, the ALJ shall withdraw from 
the proceeding. Withdrawal is accomplished by entering a notice in the 
record and providing a copy of the notice to the Chief ALJ.
    (b) Motion for recusal. If a party believes that the presiding ALJ 
should be disqualified for any reason, the party may file a motion to 
recuse with the ALJ. The motion shall be supported by an affidavit 
setting forth the alleged grounds for disqualification. The ALJ shall 
rule on the motion, stating the grounds therefor.
    (c) Redesignation of ALJ. If an ALJ is disqualified, the Chief ALJ 
shall designate another ALJ to preside over further proceedings.


Sec. 180.215  Ex Parte communications.

    (a) An ex parte communication is any direct or indirect 
communication concerning the merits of a pending proceeding, made by a 
party in the absence of any other party, to the presiding ALJ, and 
which was neither on the record nor on reasonable prior notice to all 
parties. Ex parte communications do not include communications made for 
the sole purpose of scheduling hearings, requesting extensions of time, 
or requesting information on the status of cases.
    (b) Ex parte communications are prohibited.
    (c) If the ALJ receives an ex parte communication that the ALJ 
knows or has reason to believe is prohibited, the ALJ shall promptly 
place the communication, or a written statement of the substance of the 
communication, in the record and shall furnish copies to all parties. 
Unauthorized communications shall not be taken into consideration in 
deciding any matter in issue. Any party making a prohibited ex parte 
communication may be subject to sanctions including, but not limited 
to, exclusion from the proceeding and an adverse ruling on the issue 
that is the subject of the prohibited communication.


Sec. 180.220  Separation of functions.

    No officer, employee, or agent of the Federal Government engaged in 
the performance of investigative, conciliatory, or prosecutorial 
functions in connection with the proceeding shall, in that proceeding 
or any factually related proceeding under this part, participate or 
advise in the decision of the ALJ, except as a witness or counsel 
during the proceedings or in its appellate review.

Subpart C--Parties


Sec. 180.300  Rights of parties.

    Each party may appear in person, be represented by counsel, examine 
or cross-examine witnesses, introduce documentary or other relevant 
evidence into the record and, in Fair Housing Act matters, request the 
issuance of subpoenas.

[[Page 52220]]

Sec. 180.305  Representation.

    (a) HUD is represented by the General Counsel.
    (b) Any party may appear on his/her/its own behalf or by an 
attorney. Each party or attorney shall file a notice of appearance. The 
notice must identify the matter before the ALJ, the party on whose 
behalf the appearance is made, and the mailing address and telephone 
number of the person appearing. Similar notice shall also be given for 
any withdrawal of appearance.
    (c) An attorney must be admitted to practice before a Federal Court 
or the highest court in any State. The attorney's representation that 
he/she is in good standing before any of these courts is sufficient 
evidence of the attorney's qualifications under this section, unless 
otherwise ordered by the ALJ.


Sec. 180.310  Parties.

    (a) Parties to proceedings under this part are HUD, the 
respondent(s), and any intervenor(s). Respondents include persons named 
as such in a charge issued under 24 CFR part 103, and recipients/
applicants named as respondents in hearing notices issued under 24 CFR 
parts 1, 8, or 146 and notices of proposed adverse action under this 
part.
    (b) An aggrieved person is not a party but may file a motion to 
intervene. Requests for intervention shall be filed within 50 days 
after the filing of the charge; however, the ALJ may allow intervention 
beyond that time. An intervenor's right to participate as a party may 
be restricted by order of the ALJ pursuant to statute, the rules in 
this part or other applicable law. Intervention shall be permitted if 
the person requesting intervention is
    (1) The aggrieved person on whose behalf the charge is issued; or
    (2) An aggrieved person who claims an interest in the property or 
transaction that is the subject of the charge and the disposition of 
the charge may, as a practical matter, impair or impede this person's 
ability to protect that interest, unless the aggrieved person is 
adequately represented by the existing parties.
    (c) A complainant in a non-Fair Housing Act matter is not a party 
but may file a motion to become an amicus curiae.
    (d) Any person may file a petition to participate in a proceeding 
under this part as an amicus curiae. An amicus curiae is not a party to 
the proceeding and may not introduce evidence at the hearing.
    (1) A petition to participate as amicus curiae shall be filed 
before the commencement of the hearing, unless the petitioner shows 
good cause for filing the petition later. The petition may be granted 
if the ALJ finds that the petitioner has a legitimate interest in the 
proceedings, and that such participation will not unduly delay the 
outcome and may contribute materially to the proper disposition 
thereof.
    (2) The amicus curiae may submit briefs within time limits set by 
the ALJ or by the Secretary in the event of an appeal to the Secretary.
    (3) When all parties have completed their initial examination of a 
witness, the amicus curiae may request the ALJ to propound specific 
questions to the witness. Any such request may be granted if the ALJ 
believes the proposed additional testimony may assist materially in 
elucidating factual matters at issue between the parties and will not 
expand the issues.


Sec. 180.315  Standards of conduct.

    (a) All persons appearing in proceedings under this part shall act 
with integrity and in an ethical manner.
    (b) The ALJ may exclude parties or their representatives for 
refusal to comply with directions, continued use of dilatory tactics, 
refusal to adhere to reasonable standards of orderly and ethical 
conduct, failure to act in good faith, or violations of the 
prohibitions against ex parte communications. If an ALJ suspends or 
bars an attorney from participating in a proceeding, the ALJ shall 
include in the record the reasons for such action. An attorney who is 
suspended or barred from participation may appeal to the Chief ALJ. The 
proceeding will not be delayed or suspended pending disposition on the 
appeal, except that the ALJ shall suspend the proceeding for a 
reasonable time to enable the party to obtain another attorney.

Subpart D--Proceedings Prior to Hearing


Sec. 180.400  Service and filing.

    (a) Service--(1) Service by the Office of ALJs. The Office of ALJs 
shall serve all notices, orders, decisions and other such documents by 
mail to each party and amicus curiae at the last known address.
    (2) Service by others. A copy of each filed document shall be 
served on each party and each amicus curiae. Service shall be made upon 
counsel if a party is represented by counsel. Service on counsel shall 
constitute service on the party. Service may be made to the last known 
address by first-class mail or other more expeditious means, such as:
    (i) Hand delivery to the person to be served or a person of 
suitable age and discretion at the place of business, residence, or 
usual place of abode of the person to be served;
    (ii) Overnight delivery; or
    (iii) Facsimile transmission or electronic means. The ALJ may place 
appropriate limits on service by facsimile transmission or electronic 
means.
    (3) Certificate of service. Every document served shall be 
accompanied by a certificate of service containing a statement as to 
the date of service, the method of service, the parties served and the 
address at which they were served, which is signed and dated by the 
person making service.
    (b) Filing--(1) Method. All documents shall be filed with the Chief 
Docket Clerk. Filing may be by first class mail, delivery, facsimile 
transmission, or electronic means; however, the ALJ may place 
appropriate limits on filing by facsimile transmission or electronic 
means.
    (2) Form. Every pleading, motion, brief, or other document shall 
contain a caption setting forth the title of the proceeding, the docket 
number assigned by the Office of ALJs, and the designation of the type 
of document (e.g., charge, motion).
    (3) Signature. Every document filed by a party shall be signed by 
the party or the party's attorney and must include the signer's address 
and telephone number. The signature constitutes a certification that: 
the signer has read the document; to the best of the signer's 
knowledge, information and belief, the statements made therein are 
true; and the document is not interposed for delay.


Sec. 180.405  Time computations.

    (a) In computing time under this part, the time period begins the 
day following the act, event, or default and includes the last day of 
the period, unless the last day is a Saturday, Sunday, or legal holiday 
observed by the Federal Government, in which case the time period 
includes the next business day.
    (b) Modification of time periods. Except for time periods required 
by statute, the ALJ may enlarge or reduce any time period required 
under this part where necessary to avoid prejudicing the public 
interest or the rights of the parties. Requests for extension of time 
should set forth the reasons for the request.
    (c) Entry of orders. In computing any time period involving the 
date of the ALJ's issuance of an order or decision, the date of 
issuance is the date of service by the Chief Docket Clerk.

[[Page 52221]]

    (d) Computation of time for delivery by mail. When documents are 
filed by mail, three days shall be added to the prescribed time period 
for filing any responsive pleading. Documents are not filed until 
received by the Chief Docket Clerk.
    (e) Untimely filing. The ALJ may refuse to consider any motion or 
other document that is not filed in a timely fashion.


Sec. 180.410  Charges under the Fair Housing Act.

    (a) Filing and service. Within three days after the issuance of a 
charge, the General Counsel shall file the charge with the Chief Docket 
Clerk and serve copies (with the additional information required under 
paragraph (b) of this section) on all respondents and aggrieved 
persons.
    (b) Contents. The charge shall consist of a short and plain written 
statement of the facts upon which reasonable cause has been found to 
believe that a discriminatory housing practice has occurred or is about 
to occur. A notification shall be served with the charge containing the 
following information:
    (1) Any complainant, respondent, or aggrieved person may elect to 
have the claims asserted in the charge decided in a civil action under 
42 U.S.C. 3612(o), in lieu of an administrative proceeding under this 
part.
    (2) Such election must be made not later than 20 days after receipt 
of service of the charge by serving written notice of such on the Chief 
Docket Clerk, each respondent, each aggrieved person on whose behalf 
the charge was issued, the Assistant Secretary, and the General 
Counsel.
    (3) If no person timely elects to have the claims asserted in the 
charge decided in a civil action under 42 U.S.C. 3612(o), an 
administrative proceeding will be conducted under this part.
    (4) If an administrative hearing is conducted:
    (i) The hearing will be held at a date and place specified.
    (ii) The respondent will have an opportunity to file an answer to 
the charge within 30 days after service of the charge.
    (iii) The aggrieved person may participate as a party to the 
administrative proceeding by filing a request for intervention within 
50 days after service of the charge.
    (iv) All discovery must be concluded 15 days before the date set 
for hearing.
    (v) The rules in this part will govern the proceeding.
    (5) If, at any time following service of the charge on the 
respondent, the respondent intends to enter into a contract, sale, 
encumbrance, or lease with any person regarding the property that is 
the subject of the charge, the respondent must provide a copy of the 
charge to such person before the respondent and the person enter into 
the contract, sale, encumbrance or lease.
    (c) Election of judicial determination. If the complainant, the 
respondent, or the aggrieved person on whose behalf a complaint was 
filed makes a timely election to have the claims asserted in the charge 
decided in a civil action under 42 U.S.C. 3612(o), the Chief ALJ shall 
dismiss the administrative proceeding.
    (d) Effect of a civil action on administrative proceeding. An ALJ 
may not continue an administrative proceeding under the Fair Housing 
Act after the beginning of the trial of a civil action commenced by the 
aggrieved person under an act of Congress or a State law seeking relief 
with respect to that discriminatory housing practice. If such a trial 
is commenced, the ALJ shall dismiss the administrative proceeding. The 
commencement and maintenance of a civil action for appropriate 
temporary or preliminary relief under 42 U.S.C. 3610(e) or 42 U.S.C. 
3613 does not affect administrative proceedings under this part.


Sec. 180.415  Notice of proposed adverse action regarding Federal 
financial assistance in Non-Fair Housing Act matters.

    (a) Filing and service. Within 10 days after a recipient/applicant 
has requested a hearing, as provided for in 24 CFR part 1, 8, or 146, 
the General Counsel shall file a notice of proposed adverse action with 
the Chief Docket Clerk and serve copies (with the additional 
information required under paragraph (b) of this section) on all 
respondents and complainants.
    (b) Contents. The notice of proposed adverse action shall consist 
of a short and plain written statement of the facts and legal authority 
upon which the proposed action is based. A notification shall be served 
with the notice containing the following information:
    (1) That an administrative hearing will be held at a date and place 
specified.
    (2) That the respondent will have an opportunity to file an answer 
to the notice of adverse action within 30 days after its service.
    (3) That the complainant may participate as an amicus curiae by 
filing a timely request to do so.
    (4) That discovery must be concluded by a date specified.
    (5) That the rules specified in this part shall govern the 
proceeding.
    (c) Consolidation. The ALJ may provide for non-Fair Housing Act 
proceedings at HUD to be joined or consolidated for hearing with 
proceedings in other Federal departments or agencies, by agreement with 
such other departments or agencies. All parties to any proceeding 
consolidated subsequent to service of the notice of proposed adverse 
action shall be promptly served with notice of such consolidation.


Sec. 180.420  Answer.

    (a) Within 30 days after service of the charge or notice of 
proposed adverse action, a respondent may file an answer. The answer 
shall include:
    (1) A statement that the respondent admits, denies, or does not 
have and is unable to obtain sufficient information to admit or deny, 
each allegation made. A statement of lack of information shall have the 
effect of a denial. Any allegation that is not denied shall be deemed 
to be admitted.
    (2) A statement of each affirmative defense and a statement of 
facts supporting each affirmative defense.
    (b) Failure to file an answer within the 30-day period following 
service of the charge or notice of proposed adverse action shall be 
deemed an admission of all matters of fact recited therein and may 
result in the entry of a default decision.


Sec. 180.425  Amendments to pleadings.

    (a) By right. HUD may amend the charge or notice of proposed 
adverse action once as a matter of right prior to the filing of the 
answer.
    (b) By leave. Upon such conditions as are necessary to avoid 
prejudicing the public interest and the rights of the parties, the ALJ 
may allow amendments to pleadings upon a motion of a party.
    (c) Conformance to the evidence. When issues not raised by the 
pleadings are reasonably within the scope of the original charge or 
notice of proposed adverse action and have been tried by the express or 
implied consent of the parties, the issues shall be treated in all 
respects as if they had been raised in the pleadings, and amendments 
may be made as necessary to make the pleading conform to evidence.
    (d) Supplemental pleadings. The ALJ may, upon reasonable notice, 
permit supplemental pleadings concerning transactions, occurrences or 
events that have happened or been discovered since the date of the 
pleadings and which are relevant to any of the issues involved.


Sec. 180.430  Motions.

    (a) Motions. Any application for an order or other request shall be 
made by

[[Page 52222]]

a motion which, unless made during an appearance before the ALJ, shall 
be in writing and shall state the specific relief requested and the 
basis therefor. Motions made during an appearance before the ALJ shall 
be stated orally and made a part of the transcript. All parties shall 
be given a reasonable opportunity to respond to written or oral motions 
or requests.
    (b) Responses to written motions. Within seven calendar days after 
a written motion is served, any party to the proceeding may file a 
response in support of, or in opposition to, the motion. Unless 
otherwise ordered by the ALJ, no further responsive documents may be 
filed. Failure to file a response within the response period 
constitutes a waiver of any objection to the granting of the motion.
    (c) Oral argument. The ALJ may order oral argument on any motion.


Sec. 180.435  Prehearing statements.

    (a) Before the commencement of the hearing, the ALJ may direct the 
parties to file prehearing statements.
    (b) The prehearing statement must state the name of the party 
presenting the statement and, unless otherwise directed by the ALJ, 
briefly set forth the following:
    (1) The issues involved in the proceeding;
    (2) The facts stipulated by the parties and a statement that the 
parties have made a good faith effort to stipulate to the greatest 
extent possible;
    (3) The facts in dispute;
    (4) The witnesses (together with a summary of the testimony 
expected) and exhibits to be presented at the hearing;
    (5) A brief statement of applicable law;
    (6) Conclusions to be drawn;
    (7) Estimated time required for presentation of the party's case; 
and
    (8) Such other information as may assist in the disposition of the 
proceeding.


Sec. 180.440  Prehearing conferences.

    (a) Before the commencement of or during the course of the hearing, 
the ALJ may direct the parties to participate in a conference to 
expedite the hearing. Failure to attend a conference may constitute a 
waiver of all objections to the agreements reached at the conference 
and to any order with respect thereto.
    (b) During the conference, the ALJ may dispose of any procedural 
matters on which he/she is authorized to rule. At the conference, the 
following matters may be considered:
    (1) Pre-trial motions;
    (2) Identification, simplification and clarification of the issues;
    (3) Necessary amendments to the pleadings;
    (4) Stipulations of fact and of the authenticity, accuracy, and 
admissibility of documents;
    (5) Limitations on the number of witnesses;
    (6) Negotiation, compromise, or settlement of issues;
    (7) The exchange of proposed exhibits and witness lists;
    (8) Matters of which official notice will be requested;
    (9) Scheduling actions discussed at the conference; and
    (10) Such other matters as may assist in the disposition of the 
proceeding.
    (c) Conferences may be conducted by telephone or in person, but 
generally shall be conducted by telephone, unless the ALJ determines 
that this method is inappropriate. The ALJ shall give reasonable notice 
of the time, place and manner of the conference.
    (d) Record of conference. Unless otherwise directed by the ALJ, the 
conference will not be stenographically recorded. The ALJ will reduce 
the actions taken at the conference to a written order or, if the 
conference takes place less than seven days before the beginning of the 
hearing, may make a statement at the hearing and on the record 
summarizing the actions taken at the conference.


Sec. 180.445  Settlement negotiations before a settlement judge.

    (a) Appointment of settlement judge. The ALJ, upon the motion of a 
party or upon his or her own motion, may request the Chief ALJ to 
appoint another ALJ to conduct settlement negotiations. The order 
appointing the settlement judge may confine the scope of settlement 
negotiations to specified issues. The order shall direct the settlement 
judge to report to the Chief ALJ within specified time periods.
    (b) Duties of settlement judge. (1) The settlement judge shall 
convene and preside over conferences and settlement negotiations 
between the parties and assess the practicalities of a potential 
settlement.
    (2) The settlement judge shall report to the Chief ALJ describing 
the status of the settlement negotiations, evaluating settlement 
prospects, and recommending the termination or continuation of the 
settlement negotiations.
    (c) Termination of settlement negotiations. Settlement negotiations 
shall terminate upon the order of the chief ALJ issued after 
consultation with the settlement judge. The conduct of settlement 
negotiations shall not unduly delay the commencement of the hearing.


Sec. 180.450  Resolution of charge or notice of proposed adverse 
action.

    At any time before a final decision is issued, the parties may 
submit to the ALJ an agreement resolving the charge or notice of 
proposed adverse action. A charge under the Fair Housing Act can only 
be resolved with the agreement of the aggrieved person on whose behalf 
the charge was issued. If the agreement is in the public interest, the 
ALJ shall accept it by issuing an initial decision and consent order 
based on the agreement.

Subpart E--Discovery


Sec. 180.500  Discovery.

    (a) In general. This subpart governs discovery in aid of 
administrative proceedings under this part. Discovery in Fair Housing 
Act matters shall be completed 15 days before the date scheduled for 
hearing or at such time as the ALJ shall direct. Discovery in non-Fair 
Housing Act matters shall be completed as the ALJ directs.
    (b) Scope. The parties are encouraged to engage in voluntary 
discovery procedures. Discovery shall be conducted as expeditiously and 
inexpensively as possible, consistent with the needs of all parties to 
obtain relevant evidence. Unless otherwise ordered by the ALJ, the 
parties may obtain discovery regarding any matter, not privileged, that 
is relevant to the subject matter involved in the proceeding, including 
the existence, description, nature, custody, condition, and location of 
documents or persons having knowledge of any discoverable matter. It is 
not grounds for objection that information sought will be inadmissible 
if the information appears reasonably calculated to lead to the 
discovery of admissible evidence.
    (c) Methods. Parties may obtain discovery by one or more of the 
following methods:
    (1) Deposition upon oral examination or written questions.
    (2) Written interrogatories.
    (3) Requests for the production of documents or other evidence for 
inspection and other purposes.
    (4) Requests for admissions.
    (5) Upon motion of a party, the presiding ALJ may issue an order 
requiring a physical or mental examination of a party or of a person in 
the custody or under the legal control of a party.
    (d) Frequency and sequence. Unless otherwise ordered by the ALJ or 
restricted by this subpart, the frequency

[[Page 52223]]

or sequence of these methods is not limited.
    (e) Non-intervening aggrieved person. For purposes of obtaining 
discovery from a non-intervening aggrieved person, the term party as 
used in this subpart includes the aggrieved person.


Sec. 180.505  Supplementation of responses.

    A party is under a duty, in a timely fashion, to:
    (a) Supplement a response with respect to any question directly 
addressed to:
    (1) The identity and location of persons having knowledge of 
discoverable matters; and
    (2) The identity of each person expected to be called as an expert 
witness, the subject matter on which the expert witness is expected to 
testify, and the substance of the testimony.
    (b) Amend a response if the party later obtains information upon 
the basis of which:
    (1) The party knows the response was incorrect when made, or
    (2) The party knows the response, though correct when made, is no 
longer true, and the circumstances are such that a failure to amend the 
response is, in substance, a knowing concealment.
    (c) Supplement other responses, as imposed by order of the ALJ or 
by agreement of the parties.


Sec. 180.510  Interrogatories.

    (a) Any party may serve on any other party written interrogatories 
to be answered by the party served. If the party served is a public or 
private corporation, a partnership, an association, or a governmental 
agency, the interrogatories may be answered by any authorized officer 
or agent who shall furnish such information as may be available to the 
party. A party may serve not more than 30 written interrogatories on 
another party without an order of the ALJ.
    (b) Each interrogatory shall be answered separately and fully in 
writing under oath or affirmation, unless it is objected to, in which 
event, the reasons for the objection shall be stated in lieu of an 
answer. The answers shall be signed by the person making them, and the 
objections may be signed by the attorney or other representative making 
them. The answers and objections shall be served within 15 days after 
service of the interrogatories.
    (c) It is a sufficient answer to an interrogatory to specify the 
records from which the answer may be derived or ascertained if:
    (1) The answer to the interrogatory may be derived or ascertained 
from the records of the party on whom the interrogatory has been served 
or from an examination, audit or inspection of such records, or from a 
compilation, abstract or summary based thereon, and
    (2) The burden of deriving or ascertaining the answer is 
substantially the same for the party serving the interrogatory as the 
party served. The party serving the interrogatory shall be afforded 
reasonable opportunity to examine, audit or inspect such records and to 
make copies, compilations, abstracts or summaries. The specification 
shall include sufficient detail to permit the interrogating party to 
locate and identify the individual records from which the answer may be 
ascertained.
    (d) Objections to the form of written interrogatories are waived 
unless served in writing upon the party propounding the 
interrogatories.


Sec. 180.515  Depositions.

    (a) Notice. Upon written notice to the witness and to all other 
parties, a party may take the testimony of a witness by deposition and 
may request the production of specified documents or materials by the 
witness at the deposition. Notice of the taking of a deposition shall 
be given not less than five days before the deposition is scheduled. 
The notice shall state:
    (1) The purpose and general scope of the deposition;
    (2) The time and place of the deposition;
    (3) The name and address of the person before whom the deposition 
is to be taken;
    (4) The name and address of the witness; and
    (5) A specification of the documents and materials that the witness 
is requested to produce.
    (b) Deposition of an organization. If the deposition of a public or 
private corporation, partnership, association, or governmental agency 
is sought, the organization so named shall designate one or more 
officers, directors or agents to testify on its behalf, and may set 
forth, for each person designated, the matters on which he/she will 
testify.
    (c) Procedure at deposition. Depositions may be taken before any 
disinterested person having power to administer oaths in the location 
where the deposition is to be taken. Each deponent shall be placed 
under oath or affirmation, and the other parties will have the right to 
cross-examine. The deponent may have counsel present during the 
deposition. The questions propounded and all answers and objections 
thereto shall be reduced to writing, read by or to and subscribed by 
the witness, and certified by the person before whom the deposition was 
taken. Non-intervening aggrieved persons may be present at depositions 
in which they are not the deponent.
    (d) Motion to terminate or limit examination. During the taking of 
a deposition, a party or the witness may request suspension of the 
deposition on the grounds of bad faith in the conduct of the 
examination, oppression of the witness or party, or improper 
questioning or conduct. Upon request for suspension, the deposition 
will be adjourned. The objecting party or witness must immediately move 
the ALJ for a ruling on the objection. The ALJ may then limit the scope 
or manner of taking the deposition.
    (e) Waiver of deposing officer's disqualification. Objection to 
taking a deposition because of the disqualification of the officer 
before whom it is taken is waived unless made before the taking of the 
deposition begins or as soon thereafter as the disqualification becomes 
known or could have been discovered with reasonable diligence.
    (f) Payment of costs of deposition. The party requesting the 
deposition shall bear all costs of the deposition.


Sec. 180.520  Use of deposition at hearings.

    (a) In general. At the hearing, any part or all of a deposition, so 
far as admissible under the Federal Rules of Evidence, may be used 
against any party who was present or represented at the taking of the 
deposition or who had due notice of the taking of the deposition, in 
accordance with the following provisions:
    (1) Any deposition may be used by any party for the purpose of 
contradicting or impeaching the testimony of the deponent as a witness.
    (2) The deposition of an expert witness may be used by any party 
for any purpose, unless the ALJ rules that such use is unfair or in 
violation of due process.
    (3) The deposition of a party, or of anyone who at the time of the 
taking of the deposition was an officer, director, or duly authorized 
agent of a public or private corporation, partnership, or association 
that is a party, may be used by any other party for any purpose.
    (4) The deposition of a witness, whether or not a party, may be 
used by any party for any purpose if the ALJ finds:
    (i) That the witness is dead;
    (ii) That the witness is out of the United States or more than 100 
miles from the place of hearing, unless it appears that the absence of 
the witness was procured by the party offering the deposition;

[[Page 52224]]

    (iii) That the witness is unable to attend to testify because of 
age, sickness, infirmity, or imprisonment;
    (iv) That the party offering the deposition has been unable to 
procure the attendance of the witness by subpoena; or
    (v) Whenever exceptional circumstances exist as to make it 
desirable, in the interest of justice and with due regard to the 
importance of presenting the testimony of witnesses orally in open 
hearing, to allow the deposition to be used.
    (5) If a part of a deposition is offered in evidence by a party, 
any other party may require the party to introduce all of the 
deposition that is relevant to the part introduced. Any party may 
introduce any other part of the deposition.
    (6) Substitution of parties does not affect the right to use 
depositions previously taken. If a proceeding has been dismissed and 
another proceeding involving the same subject matter is later brought 
between the same parties or their representatives or successors in 
interest, all depositions lawfully taken in the former proceeding may 
be used in the latter proceeding.
    (b) Objections to admissibility. Except as provided in this 
paragraph, objection may be made at the hearing to receiving in 
evidence any deposition or part of a deposition for any reason that 
would require the exclusion of the evidence if the witness were present 
and testifying.
    (1) Objections to the competency of a witness or to the competency, 
relevancy, or materiality of testimony are not waived by failure to 
make them before or during the taking of the deposition, unless the 
basis of the objection is one which might have been obviated or removed 
if presented at that time.
    (2) Errors and irregularities occurring at the oral examination in 
the manner of taking the deposition, in the form of the questions or 
answers, in the oath or affirmation, or in the conduct of parties, and 
errors of any kind which might be obviated, removed or cured if 
promptly presented, are waived unless reasonable objection is made at 
the taking of the deposition.


Sec. 180.525  Requests for production of documents or things for 
inspection or other purposes, including physical and mental 
examinations.

    (a) Any party may serve on any other party a request to:
    (1) Produce and/or permit the party, or a person acting on the 
party's behalf, to inspect and copy any designated documents, or to 
inspect and copy, test, or sample any tangible things that contain or 
may lead to relevant information and that are in the possession, 
custody, or control of the party upon whom the request is served.
    (2) Permit entry upon designated land or other property in the 
possession or control of the party upon whom the request is served for 
the purpose of inspection and measuring, photographing, testing, or 
other purposes stated in paragraph (a)(1) of this section.
    (b) Each request shall set forth with reasonable particularity the 
items or categories to be inspected and shall specify a reasonable 
time, place and manner for making the inspection and performing the 
related acts.
    (c) Within 15 days after service of the request, the party upon 
whom the request is served shall serve a written response on the party 
submitting the request. The response shall state, with regard to each 
item or category, that inspection and related activities will be 
permitted as requested, unless there are objections, in which case the 
reasons for the objection shall be stated.
    (d) Upon motion of any party, when the mental or physical condition 
(including the blood group) of a party or of a person in the custody or 
under the legal control of a party, is in controversy, the presiding 
ALJ may order the party to submit to a physical or mental examination 
by a suitably licensed or certified examiner or to produce for 
examination the person in the party's custody or legal control. The 
order may be made only on motion for good cause shown and upon notice 
to the person to be examined and to all parties and shall specify the 
time, place, manner, conditions, and scope of the examination and the 
person or persons by whom it is to be made. A report of the examiner 
shall be made in accordance with Rule 35(b) of the Federal Rules of 
Civil Procedure.


Sec. 180.530  Requests for admissions.

    (a) Any party may serve on any other party a written request for 
the admission of the truth of any matters relevant to the adjudication 
set forth in the request that relate to statements or opinions of fact 
or of application of law to fact, including the genuineness and 
authenticity of any documents described in or attached to the request.
    (b) Each matter for which an admission is requested is admitted 
unless, within 15 days after service of the request, or within such 
time as the ALJ allows, the party to whom the request is directed 
serves on the requesting party a sworn written answer which:
    (1) Specifically denies, in whole or in part, the matter for which 
an admission is requested;
    (2) Sets forth in detail why the party cannot truthfully admit or 
deny the matter; or
    (3) States an objection that the matter is privileged, irrelevant 
or otherwise improper in whole or in part.
    (c) An answering party may not give lack of information or 
knowledge as a reason for failure to admit or deny, unless he/she/it 
states that he/she/it has made a reasonable inquiry and that the 
information known to, or readily obtainable by, him/her/it is 
insufficient to enable the party to admit or deny.
    (d) The party requesting admissions may move for a determination of 
the sufficiency of the answers or objections. Unless the ALJ determines 
that an objection is justified, the ALJ shall order that an answer be 
served. If the ALJ determines that an answer does not comply with the 
requirements of this section, the ALJ may order either that the matter 
is admitted or that an amended answer be served.
    (e) Any matter admitted under this section is conclusively 
established unless, upon the motion of a party, the ALJ permits the 
withdrawal or amendment of the admission. Any admission made under this 
section is made for the purposes of the pending proceeding only, is not 
an admission by the party for any other purpose, and may not be used 
against the party in any other proceeding.


Sec. 180.535  Protective orders.

    (a) Upon motion of a party or a person from whom discovery is 
sought or in accordance with Sec. 180.540(c), and for good cause shown, 
the ALJ may make appropriate orders to protect a party or person from 
annoyance, embarrassment, oppression, or undue burden or expense as a 
result of the requested discovery request. The order may direct that:
    (1) The discovery may not be had;
    (2) The discovery may be had only on specified terms and 
conditions, including at a designated time and place;
    (3) The discovery may be had by a method of discovery other than 
that selected by the party seeking discovery;
    (4) Certain matters may not be the subject of discovery, or the 
scope of discovery may be limited to certain matters;
    (5) Discovery may be conducted with no one present other than 
persons designated by the ALJ;
    (6) A trade secret or other confidential research, development or 
commercial information may not be disclosed, or

[[Page 52225]]

may be disclosed only in a designated way; or
    (7) The party or other person from whom discovery is sought may 
file specified documents or information under seal to be opened as 
directed by the ALJ.
    (b) The ALJ may permit a party or other person from whom discovery 
is sought, who is seeking a protective order, to make all or part of 
the showing of good cause in camera. If such a showing is made, upon 
motion of the party or other person from whom discovery is sought, an 
in camera record of the proceedings may be made. If the ALJ enters a 
protective order, any in camera record of such showing shall be sealed 
and preserved and made available to the ALJ or, in the event of appeal, 
to the Secretary or a court.


Sec. 180.540  Motion to compel discovery.

    (a) If a deponent fails to answer a question propounded, or a party 
upon whom a discovery request has been made fails to respond 
adequately, objects to a request, or fails to produce documents or 
other inspection as requested, the discovering party may move the ALJ 
for an order compelling discovery in accordance with the request. The 
motion shall:
    (1) State the nature of the request;
    (2) Set forth the response or objection of the deponent or party 
upon whom the request was served;
    (3) Present arguments supporting the motion; and
    (4) Attach copies of all relevant discovery requests and responses.
    (b) For the purposes of this section, an evasive or incomplete 
answer or response will be treated as a failure to answer or respond.
    (c) In ruling on a motion under this section, the ALJ may enter an 
order compelling a response in accordance with the request, may issue 
sanctions under paragraph (d) of this section, or may enter a 
protective order under Sec. 180.535.
    (d) Sanctions. If a party fails to provide or permit discovery, the 
ALJ may take such action as is just, including but not limited to the 
following:
    (1) Inferring that the admission, testimony, document, or other 
evidence would have been adverse to the party;
    (2) Ordering that, for purposes of the adjudication, the matters 
regarding which the order was made or any other designated facts shall 
be taken to be established in accordance with the claim of the party 
obtaining the order;
    (3) Prohibiting the party failing to comply with the order from 
introducing evidence concerning, or otherwise relying upon, documents 
or other evidence withheld;
    (4) Ordering that the party withholding discovery not introduce 
into evidence, or otherwise use in the hearing, information obtained in 
discovery;
    (5) Permitting the requesting party to introduce secondary evidence 
concerning the information sought;
    (6) Striking any appropriate part of the pleadings or other 
submissions of the party failing to comply with such order; or
    (7) Taking such other action as may be appropriate.


Sec. 180.545  Subpoenas.

    (a) This section governs the issuance of subpoenas in 
administrative proceedings under the Fair Housing Act. Except for time 
periods stated in the rules in this section, to the extent that this 
section conflicts with procedures for the issuance of subpoenas in 
civil actions in the United States District Court for the District in 
which the investigation of the discriminatory housing practice took 
place, the rules of the United States District Court apply.
    (b) Issuance of subpoena. Upon the written request of a party, the 
Chief ALJ or the presiding ALJ may issue a subpoena requiring the 
attendance of a witness for the purpose of giving testimony at a 
deposition or hearing and requiring the production of relevant books, 
papers, documents or tangible things.
    (c) Time of request. Requests for subpoenas in aid of discovery 
must be submitted in time to permit the conclusion of discovery 15 days 
before the date scheduled for the hearing. If a request for subpoenas 
of a witness for testimony at a hearing is submitted three days or less 
before the hearing, the subpoena shall be issued at the discretion of 
the Chief ALJ or the presiding ALJ, as appropriate.
    (d) Service. A subpoena may be served by any person who is not a 
party and is not less than 18 years of age. Service on a person shall 
be made by delivering a copy of the subpoena to the person and by 
tendering witness fees and mileage to that person. When the subpoena is 
issued on behalf of HUD, witness fees and mileage need not be tendered 
with the subpoena.
    (e) Amount of witness fees and mileage. A witness summoned by a 
subpoena issued under this part is entitled to the same witness and 
mileage fees as a witness in proceedings in United States District 
Courts. Fees payable to a witness summoned by a subpoena shall be paid 
by the party requesting the issuance of the subpoena, or where the ALJ 
determines that a party is unable to pay the fees, the fees shall be 
paid by HUD.
    (f) Motion to quash or limit subpoena. Upon a motion by the person 
served with a subpoena or by a party, made within five days after 
service of the subpoena (but in any event not less than the time 
specified in the subpoena for compliance), the ALJ may:
    (1) Quash or modify the subpoena if it is unreasonable and 
oppressive or for other good cause shown; or
    (2) Condition denial of the motion upon the advancement, by the 
party on whose behalf the subpoena was issued, of the reasonable cost 
of producing subpoenaed books, papers or documents. Where circumstances 
require, the ALJ may act upon such a motion at any time after a copy of 
the motion has been served upon the party on whose behalf the subpoena 
was issued.
    (g) Failure to comply with subpoena. If a person fails to comply 
with a subpoena issued under this section, the party requesting the 
subpoena may refer the matter to the Attorney General for enforcement 
in appropriate proceedings under 42 U.S.C. 3614(c).

Subpart F--Procedures at Hearing


Sec. 180.600  Date and place of hearing.

    (a) For Fair Housing Act Cases. (1) Time. The hearing shall 
commence not later than 120 days after the issuance of the charge, 
unless it is impracticable to do so. If the hearing cannot be commenced 
within this time period, the ALJ shall notify in writing all parties, 
aggrieved persons, amici, and the Assistant Secretary of the reasons 
for the delay.
    (2) Place. The hearing will be conducted at a place in the vicinity 
in which the discriminatory housing practice is alleged to have 
occurred or to be about to occur.
    (b) For Non-Fair Housing Matters. Hearings shall be held in 
Washington, DC, unless the ALJ determines that the convenience of the 
respondent or HUD requires that another place be selected.
    (c) The ALJ may change the time, date or place of the hearing, or 
may temporarily adjourn or continue a hearing for good cause shown.


Sec. 180.605  Conduct of hearings.

    The hearing shall be conducted in accordance with the 
Administrative Procedure Act (5 U.S.C. 551-559).


Sec. 180.610  Waiver of right to appear.

    If all parties waive their right to appear before the ALJ, the ALJ 
need not conduct an oral hearing. Such waivers

[[Page 52226]]

shall be in writing and filed with the ALJ. The ALJ shall make a record 
of the pleadings and relevant written evidence submitted by the 
parties. These documents may constitute the evidence in the proceeding, 
and the decision may be based upon this evidence.


Sec. 180.615  Failure of party to appear.

    A default decision may be entered against a party failing to appear 
at a hearing unless such party shows good cause for such failure.


Sec. 180.620  Evidence.

    The Federal Rules of Evidence apply to the presentation of evidence 
in hearings under this part.


Sec. 180.625  Record of hearing.

    (a) All oral hearings shall be recorded and transcribed by a 
reporter designated and supervised by the ALJ. The original transcript 
shall be a part of the record and shall constitute the sole official 
transcript. All exhibits introduced as evidence shall be incorporated 
into the record. The parties and the public may obtain transcripts from 
the official reporter at rates not to exceed the applicable rates fixed 
by the contract with the reporter.
    (b) Corrections to the official transcript will be permitted upon 
motion of a party. Motions for correction must be submitted within five 
days after receipt of the transcript. Corrections of the official 
transcript will be permitted only where errors of substance are 
involved and upon the ALJ's approval.


Sec. 180.630  Stipulations.

    The parties may stipulate to any pertinent facts by oral agreement 
at the hearing or by written agreement at any time. Stipulations may be 
submitted into evidence at any time before the end of the hearing. Once 
received into evidence, a stipulation is binding on the parties.


Sec. 180.635  Written testimony.

    The ALJ may accept and enter into the record direct testimony of 
witnesses made by verified written statement rather than by oral 
presentation at the hearing. Unless the ALJ fixes other time periods, 
affidavits shall be filed and served on the parties not later than 14 
days prior to the hearing. Witnesses whose testimony is presented by 
affidavit shall be available for cross-examination as may be required.


Sec. 180.640  In camera and protective orders.

    The ALJ may limit discovery or the introduction of evidence, or may 
issue such protective or other orders necessary to protect privileged 
communications. If the ALJ determines that information in documents 
containing privileged matters should be made available to a party, the 
ALJ may order the preparation of a summary or extract of the 
nonprivileged matter contained in the original.


Sec. 180.645  Exhibits.

    (a) Identification. All exhibits offered into evidence shall be 
numbered sequentially and marked with a designation identifying the 
sponsor. The original of each exhibit offered in evidence or marked for 
identification shall be filed and retained in the docket of the 
proceeding, unless the ALJ permits the substitution of a copy for the 
original.
    (b) Exchange of exhibits. One copy of each exhibit offered into 
evidence must be furnished to each of the parties and to the ALJ. If 
the ALJ does not fix a time for the exchange of exhibits, the parties 
shall exchange copies of proposed exhibits at the earliest practicable 
time before the commencement of the hearing. Exhibits submitted as 
rebuttal evidence are not required to be exchanged before the 
commencement of the hearing if the submission of such evidence could 
not reasonably be anticipated at that time.
    (c) Authenticity. The authenticity of all documents submitted or 
exchanged as proposed exhibits prior to the hearing shall be admitted 
unless written objection is filed before the commencement of the 
hearing, or unless good cause is shown for failing to file such a 
written objection.
    (d) The parties are encouraged to stipulate as to the admissibility 
of exhibits.


Sec. 180.650  Public document items.

    Whenever a public document, such as an official report, decision, 
opinion, or published scientific or economic statistical data issued by 
any of the executive departments (or their subdivisions), legislative 
agencies or committees, or administrative agencies of the Federal 
Government (including Government-owned corporations), or a similar 
document issued by a State or its agencies is offered (in whole or in 
part), and such document (or part thereof) has been shown by the 
offeror to be reasonably available to the public, such document need 
not be produced or marked for identification, but may be offered for 
official notice, as a public document item by specifying the document 
or relevant part thereof.


Sec. 180.655  Witnesses.

    (a) Witnesses shall testify under oath or affirmation.
    (b) If a witness fails or refuses to testify, the failure or 
refusal to answer any question found by the ALJ to be proper may be 
grounds for striking all or part of the testimony that may have been 
given by the witness, or for any other action deemed appropriate by the 
ALJ.


Sec. 180.660  Closing of record.

    (a) Oral hearings. Where there is an oral hearing, the hearing ends 
on the day of the adjournment of the oral hearing or, where written 
briefs are permitted, on the date that the written briefs are due.
    (b) Hearing on written record. Where the parties have waived an 
oral hearing, the hearing ends on the date set by the ALJ as the final 
date for the receipt of submissions by the parties.
    (c) Receipt of evidence following hearing. Following the end of the 
hearing, no additional evidence may be accepted into the record, except 
with the permission of the ALJ. The ALJ may receive additional evidence 
upon a determination that new and material evidence was not readily 
available before the end of the hearing, the evidence has been timely 
submitted, and its acceptance will not unduly prejudice the rights of 
the parties.


Sec. 180.665  Arguments and briefs.

    (a) Following the submission of evidence at an oral hearing, the 
parties may file a brief, proposed findings of fact and conclusions of 
law, or both, or, in the ALJ's discretion, make oral arguments.
    (b) Unless otherwise ordered by the ALJ, briefs and proposed 
findings of fact and conclusions of law shall be filed simultaneously 
by all parties. In Fair Housing Act cases, such filings shall be due 
not later than 45 days after the adjournment of the oral hearing. In 
other cases, they shall be due as the ALJ orders.


Sec. 180.670  Initial decision of ALJ.

    (a) The ALJ shall issue an initial decision including findings of 
fact and conclusions of law upon each material issue of fact or law 
presented on the record. The initial decision of the ALJ shall be based 
on the whole record of the proceeding. A copy of the initial decision 
shall be served upon all parties, aggrieved persons, the Assistant 
Secretary, the Secretary, and amici, if any.
    (b) Initial decision in Fair Housing Act cases. (1) The ALJ shall 
issue an initial decision within 60 days after the end of the hearing, 
unless it is impracticable to do so. If the ALJ is unable to issue the 
initial decision

[[Page 52227]]

within this time period (or within any succeeding 60-day period 
following the initial 60-day period), the ALJ shall notify in writing 
all parties, the aggrieved person on whose behalf the charge was filed, 
and the Assistant Secretary, of the reasons for the delay.
    (2) The initial decision shall state that it will become the final 
agency decision 30 days after the date of issuance of the initial 
decision.
    (3) Findings against respondents. If the ALJ finds that a 
respondent has engaged, or is about to engage, in a discriminatory 
housing practice, the ALJ shall issue an initial decision against the 
respondent and order such relief as may be appropriate. Relief may 
include, but is not limited to:
    (i) Ordering the respondent to pay damages to the aggrieved person 
(including damages caused by humiliation and embarrassment).
    (ii) Ordering injunctive or such other equitable relief as may be 
appropriate. No such order may affect any contract, sale, encumbrance 
or lease consummated before the issuance of the initial decision that 
involved a bona fide purchaser, encumbrancer or tenant without actual 
knowledge of the charge.
    (iii) Assessing a civil penalty against the respondent to vindicate 
the public interest.
    (A) The amount of the civil penalty may not exceed:
    (1) $11,000, if the respondent has not been adjudged to have 
committed any prior discriminatory housing practice in any 
administrative hearing or civil action permitted under the Fair Housing 
Act or any State or local fair housing law, or in any licensing or 
regulatory proceeding conducted by a Federal, State or local 
governmental agency.
    (2) $27,500, if the respondent has been adjudged to have committed 
one other discriminatory housing practice in any administrative hearing 
or civil action permitted under the Fair Housing Act, or any State or 
local fair housing law, or in any licensing or regulatory proceeding 
conducted by a Federal, State, or local government agency, and the 
adjudication was made during the five-year period preceding the date of 
filing of the charge.
    (3) $55,000, if the respondent has been adjudged to have committed 
two or more discriminatory housing practices in any administrative 
hearings or civil actions permitted under the Fair Housing Act or any 
State or local fair housing law, or in any licensing or regulatory 
proceeding conducted by a Federal, State, or local government agency, 
and the adjudications were made during the seven-year period preceding 
the date of the filing of the charge.
    (B) If the acts constituting the discriminatory housing practice 
that is the subject of the charge were committed by the same natural 
person who has previously been adjudged, in any administrative 
proceeding or civil action, to have committed acts constituting a 
discriminatory housing practice, the time periods set forth in 
paragraphs (b)(3)(iii)(A)(2) and (3) of this section do not apply.
    (C) In a proceeding involving two or more respondents, the ALJ may 
assess a civil penalty as provided under paragraph (b) of this section 
against each respondent that the ALJ determines has been engaged or is 
about to engage in a discriminatory housing practice.
    (4) Findings in favor of respondents. If the ALJ finds that the 
charging party has not established that a respondent has engaged in a 
discriminatory housing practice, the ALJ shall make an initial decision 
dismissing the charge as against that respondent.
    (c) Initial Decision in Non-Fair Housing Act matters. The ALJ shall 
issue the initial decision as soon as possible after the end of the 
hearing.
    (1) Findings against Respondents. If the ALJ finds that a 
respondent has failed to comply substantially with the statutory and 
regulatory requirements that gave rise to the notice of proposed 
adverse action, the ALJ shall issue an initial decision against the 
respondent.
    (i) The initial decision shall provide for suspension or 
termination of, or refusal to grant or continue, Federal financial 
assistance, in whole or in part, to the involved program or activity.
    (ii) The initial decision may contain such terms, conditions, and 
other provisions as are consistent with and will effectuate the 
purposes of the applicable statute and regulations, including 
provisions designed to assure that no Federal financial assistance will 
be extended for the program or activity unless and until the respondent 
corrects its noncompliance and satisfies the Secretary that it will 
fully comply with the relevant statute and regulations.
    (iii) The initial decision shall state that it will become final 
only upon the Secretary's approval.
    (2) Findings in favor of respondents. If the ALJ finds that a 
respondent has not failed to comply substantially with the statutory 
and regulatory requirements that gave rise to the notice of proposed 
adverse action, the ALJ shall make an initial decision dismissing the 
notice of proposed adverse action. The initial decision shall state 
that it will become the final agency decision 30 days after the date of 
issuance.


Sec. 180.675  Petitions for review.

    (a) The Secretary may affirm, modify or set aside, in whole or in 
part, the initial decision, or remand the initial decision for further 
proceedings.
    (b) Any party adversely affected by the ALJ's initial decision may 
file a motion with the Secretary explaining how and why the initial 
decision should be modified, set aside, in whole or in part, or 
remanded for further proceedings. Such petition shall be based only on 
the following grounds:
    (1) A finding of material fact is not supported by substantial 
evidence;
    (2) A necessary legal conclusion is erroneous;
    (3) The decision is contrary to law, duly promulgated rules of HUD, 
or legal precedent; or
    (4) A prejudicial error of procedure was committed.
    (c) Each issue shall be plainly and concisely stated and shall be 
supported by citations to the record when assignments of error are 
based on the record, statutes, regulations, cases, or other authorities 
relied upon. Except for good cause shown, no assignment of error by any 
party shall rely on any question of fact or law not presented to the 
ALJ.
    (d) Such petitions must be received by the Secretary within 15 days 
after issuance of the initial decision.
    (e) A statement in opposition to the petition for review may be 
filed. Such opposition must be received by the Secretary within 22 days 
after issuance of the initial decision.
    (f) A petition not granted within 30 days after the issuance of the 
initial decision is deemed denied.
    (g) If the Secretary remands the decision for further proceedings, 
the ALJ shall issue an initial decision on remand within 60 days after 
the date of issuance of the Secretary's decision, unless it is 
impracticable to do so. If the ALJ is unable to issue the initial 
decision within this time period (or within any succeeding 60-day 
period following the initial 60-day period), the ALJ shall notify in 
writing the parties, the aggrieved person on whose behalf the charge 
was filed, any amicus curiae and the Assistant Secretary, of the 
reasons for the delay.


Sec. 180.680  Final decisions.

    (a) Public disclosure. HUD shall make public disclosure of each 
final decision.
    (b) Where initial decision does not provide for suspension or 
termination of, or refusal to grant or continue, Federal financial 
assistance.

[[Page 52228]]

    (1) Issuance of final decision by Secretary. The Secretary may 
review any finding of fact, conclusion of law, or order contained in 
the initial decision of the ALJ and issue a final decision in the 
proceeding. The Secretary shall serve the final decision on all parties 
no later than 30 days after the date of issuance of the initial 
decision.
    (2) No final decision by Secretary. If the Secretary does not serve 
a final decision within the time period described in paragraph (b)(1) 
of this section, the initial decision of the ALJ will become the final 
agency decision. For the purposes of this part, such a final decision 
will be considered to have been issued 30 days after the date of 
issuance of the initial decision.
    (c) Where initial decision provides for suspension or termination 
of, or refusal to grant or continue, Federal financial assistance. When 
the initial decision provides for the suspension or termination of, or 
the refusal to grant or continue, Federal financial assistance, or the 
imposition of any other sanction, such decision shall not constitute an 
order or final agency action until approved by the Secretary. Further, 
in the case of proceedings under title VI of the Civil Rights Act of 
1964, no order suspending, terminating, or refusing to grant or 
continue Federal financial assistance shall become effective until the 
requirements of 24 CFR 1.8(c) have been met.

Subpart G--Post-Final Decision in Fair Housing Cases


Sec. 180.700  Action upon issuance of a final decision in Fair Housing 
Act cases.

    (a) Licensed or regulated businesses. (1) If a final decision 
includes a finding that a respondent has engaged or is about to engage 
in a discriminatory housing practice in the course of a business that 
is subject to licensing or regulation by a Federal, State or local 
governmental agency, the Assistant Secretary will notify the 
governmental agency of the decision by:
    (i) Sending copies of the findings of fact, conclusions of law and 
final decision to the governmental agency by certified mail; and
    (ii) Recommending appropriate disciplinary action to the 
governmental agency, including, where appropriate, the suspension or 
revocation of the respondent's license.
    (2) The Assistant Secretary will notify the appropriate 
governmental agencies within 30 days after the date of issuance of the 
final decision, unless a petition for judicial review of the final 
decision as described in Sec. 180.710 of this part has been filed 
before the issuance of the notification of the agency. If such a 
petition has been filed, the Assistant Secretary will provide the 
notification to the governmental agency within 30 days after the date 
that the final decision is affirmed upon review. If a petition for 
judicial review is timely filed following the notification of the 
governmental agency, the Assistant Secretary will promptly notify the 
governmental agency of the petition and withdraw his or her 
recommendation.
    (b) Notification to the Attorney General. If a final decision 
includes a finding that a respondent has engaged or is about to engage 
in a discriminatory housing practice and another final decision 
including such a finding was issued under this part within the five 
years preceding the date of issuance of the final decision, the General 
Counsel will notify the Attorney General of the decisions by sending a 
copy of each final decision.


Sec. 180.705  Attorney's fees and costs.

    Following the issuance of the final decision, any prevailing party, 
except HUD, may apply for attorney's fees and costs. The ALJ will issue 
an initial decision awarding or denying such fees and costs. The 
initial decision will become HUD's final decision unless the Secretary 
reviews the initial decision and issues a final decision on fees and 
costs within 30 days. The recovery of reasonable attorney's fees and 
costs will be permitted as follows:
    (a) If the respondent is the prevailing party, HUD will be liable 
for reasonable attorney's fees and costs to the extent provided under 
the Equal Access to Justice Act (5 U.S.C. 504) and HUD's regulations at 
24 CFR part 14, and an intervenor will be liable for reasonable 
attorney's fees and costs only to the extent that the intervenor's 
participation in the administrative proceeding was frivolous or 
vexatious, or was for the purpose of harassment.
    (b) To the extent that an intervenor is a prevailing party, the 
respondent will be liable for reasonable attorney's fees unless special 
circumstances make the recovery of such fees and costs unjust.


Sec. 180.710  Judicial review of final decision.

    (a) Any party adversely affected by a final decision may file a 
petition in the appropriate United States Court of Appeals for review 
of the decision under 42 U.S.C. 3612(i). The petition must be filed 
within 30 days after the date of issuance of the final decision.
    (b) If no petition for review is filed under paragraph (a) of this 
section within 45 days after the date of issuance of the final 
decision, the findings of facts and final decision shall be conclusive 
in connection with any petition for enforcement.


Sec. 180.715  Enforcement of final decision.

    (a) Enforcement by HUD. Following the issuance of a final decision, 
the General Counsel may petition the appropriate United States Court of 
Appeals for the enforcement of the final decision and for appropriate 
temporary relief or restraining order in accordance with 42 U.S.C. 
3612(j).
    (b) Enforcement by others. If no petition for review has been filed 
within 60 days after the date of issuance, and the General Counsel has 
not sought enforcement of the final decision as described in paragraph 
(a) of this section, any person entitled to relief under the final 
decision may petition the appropriate United States Court of Appeals 
for the enforcement of the final decision in accordance with 42 U.S.C. 
3612(m).

Subpart H--Post-Final Decision in Non-Fair Housing Act Matters


Sec. 180.800  Post-termination proceedings.

    (a) A respondent adversely affected by the order terminating, 
discontinuing, or refusing Federal financial assistance in consequence 
of proceedings pursuant to this title may request the Secretary for an 
order authorizing payment, or permitting resumption, of Federal 
financial assistance. Such request shall:
    (1) Be in writing;
    (2) Affirmatively show that, since entry of the order, the 
respondent has brought its program or activity into compliance with 
statutory and regulatory requirements; and
    (3) Set forth specifically, and in detail, the steps taken to 
achieve such compliance.
    (b) If the Secretary denies such request, the respondent may 
request an expeditious hearing. The request for such a hearing shall be 
addressed to the Secretary within 30 days after the respondent is 
informed that the Secretary has refused to authorize payment or permit 
resumption of Federal financial assistance and shall specify why the 
Secretary erred in denying the request.
    (c) The procedures established by this part shall be applicable to 
any hearing.


Sec. 180.805  Judicial review of final decision.

    A termination of or refusal to grant or to continue Federal 
financial assistance is subject to judicial review as provided in the 
applicable statute.


[[Page 52229]]


    Dated: September 24, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-25301 Filed 10-3-96; 8:45 am]
BILLING CODE 4210-32-P