[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Proposed Rules]
[Pages 26022-26028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11849]



[[Page 26021]]

_______________________________________________________________________

Part V





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Parts 6, 180, 570



Nondiscrimination in Programs and Activities Receiving Assistance Under 
Title I of the Housing and Community Development Act of 1974; Proposed 
Rule

  Federal Register / Vol. 63, No. 90 / Monday, May 11, 1998 / Proposed 
Rules  

[[Page 26022]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 6, 180, 570

[Docket No. FR 4092-P-01]
RIN 2501-AC28


Nondiscrimination in Programs and Activities Receiving Assistance 
Under Title I of the Housing and Community Development Act of 1974

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish procedures to file a 
complaint for a claim of discrimination under HUD's community planning 
and development programs modeled on the Department's regulations 
implementing the prohibition against discrimination on the basis of 
disability and the regulations implementing the prohibition against 
discrimination on the basis of race, color, or national origin in 
Federal programs. The rule also would provide that hearings on 
complaints be conducted in accordance with HUD's consolidated hearing 
procedures for civil rights claims. This rule is needed to inform 
members of the public how to file complaints and how HUD will act on 
their complaints.

DATES: Comments due date: July 10, 1998.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW, Washington, DC 20410. Communications should refer to the above 
docket number and title. Facsimile (FAX) comments are not acceptable. A 
copy of each communication submitted will be available for public 
inspection and copying on weekdays between 7:30 a.m. and 5:30 p.m. at 
the above address.

FOR FURTHER INFORMATION CONTACT: Betsy Ryan, Director, Program 
Compliance Division, Office of Program Compliance and Disability 
Rights, Office of Fair Housing and Equal Opportunity, Room 5240, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Washington DC 20410-5000, telephone (202) 708-0404. Hearing or speech-
impaired persons may access this number via TTY by calling the Federal 
Information Relay Service at 1-800-877-8339. (Except for the ``800'' 
number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

I. Background

    Section 109 of Title I of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5301-5321) (Title I) provides as follows:

    No person in the United States shall on the ground of race, 
color, national origin, religion, or sex be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in 
part with funds made available under this title. Any prohibition 
against discrimination on the basis of age under the Age 
Discrimination Act of 1975, or with respect to an otherwise 
qualified handicapped individual as provided in Section 504 of the 
Rehabilitation Act of 1973 shall also apply to any such program or 
activity.

    The original language in section 109 of Title I (hereafter 
``Section 109'') was modeled on the language in Title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d-1) (Title VI). Title VI prohibits 
discrimination on the bases of race, color, and national origin in any 
program or activity for which federal financial assistance is 
authorized under a law administered by the Department. However, Section 
109 also includes protection against discrimination on the basis of 
sex. Additionally, unlike Title VI, which excludes employment practices 
except where employment is a primary purpose of the program, Section 
109 includes employment discrimination within its coverage.
    The Housing and Community Development Act of 1981 (Pub. L. 97-335, 
approved August 13, 1981; 95 Stat. 392) amended Section 109 to 
reference the prohibitions against age and disability discrimination in 
Title I programs under the Age Discrimination Act of 1975 (42 U.S.C. 
6101-6107) (Age Discrimination Act) and section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794) (Section 504). The purpose 
of this amendment was to clarify that although Section 109 does not 
directly prohibit discrimination on the bases of age and disability, it 
directs that the prohibitions against discrimination on the basis of 
age under the Age Discrimination Act and the prohibitions against 
discrimination on the basis of disability under Section 504 apply to 
Title I programs.
    Section 912 of the National Affordable Housing Act of 1990 (Pub. L. 
101-625, approved November 28, 1991; 104 Stat. 4079) also amended 
Section 109 to add protection against discrimination on the basis of 
religion. Age or disability discrimination actions in Title I programs 
may be brought under either the Age Discrimination Act or Section 504, 
as appropriate. Causes of action for race, color, and national origin 
discrimination may be brought under Title VI and/or Section 109. Causes 
of action for discrimination based on sex and religion may be brought 
under Section 109.
    The Department's regulations governing the Community Development 
Block Grant Programs are set forth in 24 CFR part 570. Section 570.602 
of these regulations incorporates the nondiscrimination provisions of 
Section 109, defining specific types of discrimination, and setting 
forth performance standards by which the Department judges whether a 
Recipient is complying with Section 109.
    To date, Section 109 has been enforced by utilizing the provisions 
of Sec. 570.602 and the procedures set forth in the Department's 
regulations at 24 CFR part 8, which implement Section 504 for HUD-
assisted programs and activities. The purpose of this rule is to set 
forth, in a new 24 CFR part 6, the policies and procedures necessary to 
enforce Section 109.
    In addition to proposing a new part 6, the Department also proposes 
to conform 24 CFR 570.602 to reflect the addition of the new part 6 to 
the Department's regulations. Specifically, the Department proposes to 
amend 24 CFR 570.602 to state the applicability of Section 109 to the 
Title I programs and to refer the reader to the new part 6 for the 
regulations governing Section 109. Additionally, the Department 
proposes to amend 24 CFR part 180 (Consolidated HUD Hearing Procedures 
for Civil Rights Matters) to include Section 109. The Department 
promulgated part 180 in an effort to promote uniformity and reduce 
confusion for HUD program participants who in the past were faced with 
separate hearing procedures for each civil rights statutory authority 
enforced by the Department. Part 180 consolidates HUD's hearing 
procedures for nondiscrimination and equal opportunity matters under 
the Fair Housing Act (42 U.S.C. 3601-3619), Title VI, the Age 
Discrimination Act, and Section 504. Amending part 180 to include 
Section 109 will further the Department's goals of promoting 
uniformity, avoiding redundancy, and reducing confusion for HUD program 
participants. The use of part 180 hearing procedures for Section 109 
hearings in no way affects the applicability of the hearing procedures 
provided for at 24 CFR 570.496 and 570.913, which govern non-civil 
rights matters under Title I. Section 570.913 is proposed to be amended 
in this rule to cross reference the procedures in parts 6 and 180 with 
respect to discrimination prohibited under Section 109, as described in 
Sec. 570.602.

[[Page 26023]]

    The proposed new part 6 provides specific time frames and 
procedures for the acceptance and investigation of complaints, 
improving response time and benefit to both complainants and 
Recipients. The proposed new part 6 is divided into two subparts. 
Subpart A (General Provisions) outlines the purpose and applicability 
of part 6, defines the important terms that are used in the regulation, 
and states in general terms the discriminatory acts that are prohibited 
by Section 109. Subpart B (Enforcement) sets forth the administrative 
enforcement provisions and refers the reader to 24 CFR part 180 for the 
administrative hearing procedures.

II. Findings and Certifications

Public Reporting Burden

    The information collection requirements contained in Sec. 6.6 of 
this proposed rule are already imposed on Recipients of Title I 
assistance under existing regulations at 24 CFR 91.105, 91.115, 
570.491, and 570.506. These information collection requirements have 
been approved by the Office of Management and Budget under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB 
Control Numbers 2506-0117 and 2506-0077. This rule incorporates these 
recordkeeping requirements, but does not require duplication of this 
information. An agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a valid control number.

Coordination

    The Department of Justice has reviewed and approved this proposed 
rule under Executive Order 12250. The Equal Employment Opportunity 
Commission has reviewed and approved this proposed rule under Executive 
Order 12067.

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.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(3) of the HUD regulations, the 
policies and procedures contained in this rule set out 
nondiscrimination standards and, therefore, are categorically excluded 
from the requirements of the National Environmental Policy Act under 24 
CFR 50.19(c)(3).

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this proposed rule before publication, and 
by approving it certifies that this proposed rule would not have a 
significant economic impact on small entities. The purpose of this rule 
is to provide for the enforcement of Section 109 of the Housing and 
Community Development Act of 1974, as amended, as it applies to 
recipients of Federal financial assistance from the Department of 
Housing and Urban Development. The rule is needed to inform members of 
the public on how to file complaints on the basis of discrimination 
under Section 109 and how HUD will act on their complaints. The rule 
sets out the process so that all parties involved in complaints will 
have certainty as to what procedures will govern. The proposed rule 
would not have a significant economic impact on a substantial number of 
small entities. The Department is sensitive, however, to the fact that 
uniform application of requirements on entities of differing sizes 
often places a disproportionate burden on small business. Therefore, 
the Department is soliciting alternatives for compliance from small 
entities that might be less burdensome to them.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this proposed rule would 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. 
Specifically, the requirements of this proposed rule are directed to 
Title I programs and activities, and do not impinge upon the 
relationship between the Federal government and State and local 
governments. Accordingly, the proposed rule is not subject to review 
under the Order.

Catalog

    The Catalog of Federal Domestic Assistance number for the program 
affected by this rule is 14.406.

List of Subjects

24 CFR Part 6

    Administrative practice and procedure, Civil rights, Community 
development block grants, Equal employment opportunity, Grant 
programs--housing and community development, Investigations, 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.

24 CFR Part 570

    Administrative practice and procedure, American Samoa, Community 
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan 
programs--housing and community development, Low and moderate income 
housing, New communities, Northern Mariana Islands, Pacific Islands 
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and 
recordkeeping requirements, Small cities, Student aid, Virgin Islands.
    Accordingly, subtitle A and chapters I and V of title 24 of the 
Code of Federal Regulations are proposed to be amended as follows:
    1. A new part 6 is added, to read as follows:

PART 6--NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES RECEIVING 
ASSISTANCE UNDER TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT 
ACT OF 1974

Subpart A--General Provisions

Sec.
6.1  Purpose.
6.2  Applicability.
6.3  Definitions.
6.4  Discrimination prohibited.
6.5  Discrimination prohibited--employment.
6.6  Records to be maintained.

Subpart B--Enforcement

6.10  Compliance information.
6.11  Conduct of investigations.
6.12  Procedure for effecting compliance.
6.13  Hearings and appeals.

    Authority: 42 U.S.C. 3535(d), 5309.

Subpart A--General Provisions


Sec. 6.1  Purpose.

    The purpose of this part is to implement the provisions of Section 
109 of Title I of the Housing and Community Development Act of 1974 
(Title I) (42

[[Page 26024]]

U.S.C. 5309). Section 109 provides that no person in the United States 
shall, on the ground of race, color, national origin, religion, or sex, 
be excluded from participation in, be denied the benefits of, or be 
subjected to discrimination under any program or activity funded in 
whole or in part with Federal financial assistance. Section 109 does 
not directly prohibit discrimination on the bases of age or disability, 
and the regulations set forth in this part 6 do not apply to age or 
disability discrimination in Title I programs. Instead, Section 109 
directs that the prohibitions against discrimination on the basis of 
age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) (Age 
Discrimination Act) and the prohibitions against discrimination on the 
basis of disability under Section 504 of the Rehabilitation Act of 1973 
(29 U.S.C. 794) (Section 504) apply to programs or activities funded in 
whole or in part with Federal financial assistance. Thus, the 
regulations of 24 CFR part 8, which implement Section 504 for HUD 
programs, and the regulations of 24 CFR part 146, which implement the 
Age Discrimination Act for HUD programs, apply to disability and age 
discrimination in Title I programs.


Sec. 6.2  Applicability.

    (a) This part applies to any program or activity funded in whole or 
in part with funds under Title I of the Housing and Community 
Development Act of 1974, including Community Development Block Grants--
Entitlement, State and HUD-Administered Small Cities, and Section 108 
Loan Guarantees; Urban Development Action Grants; Economic Development 
Initiative Grants; and Special Purpose Grants.
    (b) The provisions of this part and sections 104(b)(2) and 109 of 
Title I which relate to discrimination on the basis of race shall not 
apply to the provision of Federal financial assistance by grantees 
under this title to the Hawaiian Homelands (42 U.S.C. 5309).


Sec. 6.3  Definitions.

    The terms Department, HUD, and Secretary are defined in 24 CFR part 
5. Other terms used in this part 6 are defined as follows:
    Act means the Housing and Community Development Act of 1974, as 
amended (42 U.S.C. 5301-5320).
    Assistant Secretary means the Assistant Secretary for Fair Housing 
and Equal Opportunity.
    Award Official means the HUD official who has been delegated the 
Secretary's authority to implement a Title I funded program and to make 
grants thereunder.
    Complete complaint means a written statement that contains the 
complainant's name and address, identifies the Recipient against which 
the complaint is made, and describes the Recipient's alleged 
discriminatory action in sufficient detail to inform HUD of the nature 
and date of the alleged violation of section 109. It shall be signed by 
the complainant or by someone authorized to do so on his or her behalf. 
Complaints filed on behalf of classes or third parties shall describe 
or identify (by name, if possible) the alleged victims of 
discrimination.
    Federal financial assistance means: (1) Any assistance made 
available under Title I of the Housing and Community Development Act of 
1974, as amended, and includes income generated from such assistance, 
and any grant, loan, contract, or any other arrangement, in the form 
of:
    (i) Funds;
    (ii) Services of Federal personnel; or
    (iii) Real or personal property or any interest in or use of such 
property, including:
    (A) Transfers or leases of the property for less than fair market 
value or for reduced consideration; and
    (B) Proceeds from a subsequent transfer or lease of the property if 
the Federal share of its fair market value is not returned to the 
Federal Government.
    (2) Federal financial assistance includes assistance in the form of 
proceeds from loans guaranteed under section 108 of the Act, but does 
not include assistance made available through direct Federal 
procurement contracts or any other contract of insurance or guaranty.
    Program or activity (funded in whole or in part) means all of the 
operations of --
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or local government; or
    (ii) The entity of such State or local government that distributes 
such assistance, and each such department or agency (and each other 
State or local government entity) to which the assistance is extended, 
in the case of assistance to a State or local government;
    (2)(i) A college, university, or other post-secondary institution, 
or a public system of higher education; or
    (ii) A local educational agency (as defined in section 198(a)(10) 
of the Elementary and Secondary Education Act of 1965), system of 
vocational education or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraphs (1), (2), or (3) of this definition, 
any part of which is extended Federal financial assistance.
    Recipient means any State, political subdivision of any State, or 
instrumentality of any State or political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
individual, in any State, to whom Federal financial assistance is 
extended, directly or through another Recipient, for any program or 
activity, or who otherwise participates in carrying out such program or 
activity, including any successor, assign, or transferee thereof, but 
such term does not include any ultimate beneficiary under any such 
program or activity.
    Responsible Official means the Assistant Secretary for Fair Housing 
and Equal Opportunity or his or her designee.
    Section 109 means Section 109 of the Housing and Community 
Development Act of 1974, as amended.
    Title I means Title I of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5301-5321).


Sec. 6.4  Discrimination prohibited.

    (a) Section 109 requires that no person in the United States shall, 
on the grounds of race, color, national origin, religion, or sex, be 
excluded from participation in, be denied the benefits of, or be 
subjected to discrimination under any program or activity funded in 
whole or in part with Federal financial assistance.
    (1) A Recipient under any program or activity to which this part 
applies may not, directly or through contractual, licensing, or other 
arrangements, on the grounds of race, color, national origin, religion, 
or sex:

[[Page 26025]]

    (i) Deny any individual any facilities, services, financial aid, or 
other benefits provided under the program or activity;
    (ii) Provide any facilities, services, financial aid, or other 
benefits which are different, or are provided in a different form, from 
that provided to others under the program or activity;
    (iii) Subject an individual to segregated or separate treatment in 
any facility, or in any matter of process related to the receipt of any 
service or benefit under the program or activity;
    (iv) Restrict an individual's access to, or enjoyment of, any 
advantage or privilege enjoyed by others in connection with facilities, 
services, financial aid or other benefits under the program or 
activity;
    (v) Treat an individual differently from others in determining 
whether the individual satisfies any admission, enrollment, 
eligibility, membership, or other requirements or conditions which the 
individual must meet in order to be provided any facilities, services, 
or other benefit provided under the program or activity;
    (vi) Deny an individual an opportunity to participate in a program 
or activity as an employee;
    (vii) Aid or otherwise perpetuate discrimination against an 
individual by providing Federal financial assistance to an agency, 
organization, or person that discriminates in providing any housing, 
aid, benefit, or service;
    (viii) Otherwise limit an individual in the enjoyment of any right, 
privilege, advantage, or opportunity enjoyed by other individuals 
receiving the housing, aid, benefit, or service;
    (ix) Use criteria or methods of administration which have the 
effect of subjecting persons to discrimination or have the effect of 
defeating or substantially impairing accomplishment of the objectives 
of the program or activity with respect to persons of a particular 
race, color, national origin, religion, or sex; or
    (x) Deny a person the opportunity to participate as a member of 
planning or advisory boards.
    (2) In determining the site or location of housing, accommodations, 
or facilities, a Recipient may not make selections of such site or 
location which have the effect of excluding persons from, denying them 
the benefits of, or subjecting them to discrimination on the ground of 
race, color, national origin, religion, or sex; or which have the 
purpose or effect of defeating or substantially impairing the 
accomplishment of the objectives of Section 109 and of this part 6.
    (3)(i) In administering a program or activity in which the 
Recipient has discriminated on the grounds of race, color, national 
origin, religion or sex, the Recipient must take any necessary steps to 
overcome the effects of prior discrimination.
    (ii) In the absence of discrimination, a Recipient, in 
administering a program or activity, may take any steps necessary to 
overcome the effects of conditions which resulted in limiting 
participation by persons of a particular race, color, national origin, 
religion, or sex.
    (iii) After a finding of noncompliance, or after a Recipient has 
reasonable cause to believe that discrimination has occurred, a 
Recipient shall not be prohibited by this section from taking any 
action eligible under 24 CFR part 570, subpart C, to ameliorate an 
imbalance in benefits, services or facilities provided to any 
geographic area or specific group of persons within its jurisdiction, 
where the purpose of such action is to remedy discriminatory practices 
or usage.
    (iv)(A) Notwithstanding anything to the contrary in this part, 
nothing contained in this section shall be construed to prohibit any 
Recipient from maintaining or constructing separate living facilities 
or restroom facilities for the different sexes in order to protect 
personal privacy or modesty concerns. Furthermore, selectivity on the 
basis of sex is not prohibited when institutional or custodial services 
can, in the interest of personal privacy or modesty, only be performed 
by a member of the same sex as those receiving the services.
    (B) Section 109 of the Act does not directly prohibit 
discrimination on the basis of age or disability, but directs that the 
prohibitions against discrimination on the basis of age under the Age 
Discrimination Act and the prohibitions against discrimination on the 
basis of disability under Section 504 apply to Title I programs and 
activities. Accordingly, for programs or activities receiving Federal 
financial assistance, the regulations set forth in this part 6 apply to 
discrimination on the bases of race, color, national origin, religion, 
or sex; the regulations at 24 CFR part 8 apply to discrimination on the 
basis of disability; and the regulations at 24 CFR part 146 apply to 
discrimination on the basis of age.


Sec. 6.5  Discrimination prohibited-employment.

    (a) General. A Recipient may not, under any program or activity 
funded in whole or in part with Federal financial assistance, directly 
or through contractual agents or other arrangements including contracts 
and consultants, subject a person to discrimination in the terms and 
conditions of employment, including advertising, interviewing, 
selection, promotion, demotion, transfer, recruitment and advertising, 
layoff or termination, pay or other compensation, including benefits, 
and selection for training.
    (b) Determination of compliance status. The Assistant Secretary 
will follow the procedures set forth in this part and 29 CFR part 1691 
and look to the substantive guidelines and policy of the Equal 
Employment Opportunity Commission when reviewing employment practices 
under Section 109.


Sec. 6.6  Records to be maintained.

    (a) General. Recipients shall maintain records and data as required 
by 24 CFR 91.105, 91.115, 570.490, and 570.506.
    (b) Employment. Recipients shall maintain records and data as 
required by the Equal Employment Opportunity Commission at 29 CFR part 
1600.
    (c) Recipients shall make available such records and any supporting 
documentation upon request of the Responsible Official.
(Approved by the Office of Management and Budget under control numbers 
2506-0117 and 2506-0077.)

Subpart B--Enforcement


Sec. 6.10  Compliance information.

    (a) Cooperation and assistance. The Responsible Official and the 
Award Official, in obtaining compliance with this part, will provide 
assistance and guidance to Recipients to help them comply voluntarily 
with this part.
    (b) Access to data and other sources of information. Each Recipient 
shall permit access by authorized representatives of HUD to its 
facilities, books, records, accounts, minutes and audio tapes of 
meetings, personnel, computer disks and tapes, and other sources of 
information as may be pertinent to a determination of whether the 
Recipient is complying with this part. Where information required of a 
Recipient is in the exclusive possession of any other agency, 
institution, or person, and this agency, institution, or person fails 
or refuses to furnish this information, the Recipient shall so certify 
in any requested report and shall set forth what efforts it has made to 
obtain the information. Failure or refusal to furnish pertinent 
information (whether maintained by the Recipient or some other agency, 
institution, or person) without a credible reason for the failure or 
refusal will be considered to be noncompliance under this part.
    (c) Compliance data. Each Recipient shall keep records and submit 
to the

[[Page 26026]]

Responsible Official, timely, complete, and accurate data at such times 
and in such form as the Responsible Official may determine to be 
necessary to ascertain whether the Recipient has complied or is 
complying with this part.
    (d) Notification to employees, beneficiaries, and participants. 
Each Recipient shall make available to employees, participants, 
beneficiaries, and other interested persons information regarding the 
provisions of this part and its applicability to the program or 
activity under which the Recipient receives Federal financial 
assistance and make such information available to them in such manner 
as the Responsible Official finds necessary to apprise such persons of 
the protections against discrimination assured them by Section 109 and 
this part.


Sec. 6.11  Conduct of investigations.

    (a) Filing a complaint--(1) Who may file. Any person who believes 
that he or she has been subjected to discrimination prohibited by this 
part may file, or may have an authorized representative file on his or 
her behalf, a complaint with the Responsible Official. Any person who 
believes that any specific class of persons has been subjected to 
discrimination prohibited by this part and who is a member of that 
class or who is the authorized representative of a member of that class 
may file a complaint with the Responsible Official.
    (2) Confidentiality. The Responsible Official shall hold in 
confidence the identity of any person submitting a complaint, unless 
the person submits written authorization otherwise, except to the 
extent necessary to carry out the purposes of this part, including the 
conduct of any investigation, hearing, or proceeding under this part.
    (3) When to file. Complaints shall be filed within 180 days of the 
alleged act of discrimination, unless the Responsible Official waives 
this time limit for good cause. For purposes of determining when a 
complaint is filed under this part, a complaint mailed to the 
Responsible Official via the U. S. Postal Service will be deemed filed 
on the date it is postmarked. A complaint delivered to the Responsible 
Official in any other manner will be deemed filed on the date it is 
received by the Responsible Official.
    (4) Where to file complaints. Complaints must be in writing, 
signed, addressed to the Responsible Official and filed with (mailed to 
or otherwise delivered to) the Office of Fair Housing and Equal 
Opportunity at any HUD Office.
    (5) Content of complaints. Each complaint should contain the 
complainant's name, address, and phone number; a description or name, 
if available, of the Recipient alleged to have violated this part; an 
address where the violation occurred; and a description of the 
Recipient's alleged discriminatory action in sufficient detail to 
inform the Responsible Official of the nature and date of the alleged 
violation of this part.
    (6) Amendments to complaints. Amendments to complaints, such as 
clarification and amplification of allegations in a complaint or the 
addition of other Recipients, may be made by the complainant or the 
complainant's authorized representative at any time during the pendency 
of the complaint and any amendment shall be deemed to be made as of the 
original filing date.
    (7) Notification. To the extent practicable, the Responsible 
Official will notify the complainant and the Recipient of the 
Responsible Official's receipt of a complaint within 10 calendar days 
of receipt of a complete complaint. If the Responsible Official 
receives a complaint that is not complete, the Responsible Official 
will notify the complainant and specify the additional information that 
is needed to make the complaint complete. If the complainant fails to 
complete the complaint, the Responsible Official will close the 
complaint without prejudice and notify the complainant. When a complete 
complaint has been received, the Responsible Official, or his or her 
designee, will review the complaint for acceptance, rejection, or 
referral to an appropriate Federal agency within 20 calendar days.
    (8) Resolution of complaints. After the acceptance of a complete 
complaint, the Responsible Official will investigate the complaint, 
attempt informal resolution, and, if resolution is not achieved, the 
Responsible Official will notify the Recipient and complainant, to the 
extent practicable within 180 days of the receipt of the complete 
complaint, of the results of the investigation in a letter of findings 
sent by certified mail, return receipt requested, containing the 
following:
    (i) Findings of fact and a finding of compliance or noncompliance;
    (ii) A description of an appropriate remedy for each violation 
believed to exist; and
    (iii) A notice of the right of the Recipient and the complainant to 
request a review of the letter of findings by the Responsible Official. 
A copy of the final investigative report will be made available upon 
request.
    (9) Right to a review of the letter of findings. (i) Within 30 days 
of receipt of the letter of findings, a complainant or Recipient may 
request that a review be made of the letter of findings, by mailing or 
delivering to the Responsible Official, Room 5100, Office of Fair 
Housing and Equal Opportunity, HUD, Washington, DC 20410, a written 
statement of the reasons why the letter of findings should be modified.
    (ii) The Responsible Official will send by certified mail, return 
receipt requested, a copy of the request for review to the other party. 
Such other party shall have 20 days from receipt to respond to the 
request for review.
    (iii) The Responsible Official will either sustain or modify the 
letter of findings or require that further investigation be conducted, 
within 60 days of the request for review. The Responsible Official's 
decision shall constitute the formal determination of compliance or 
noncompliance.
    (iv) If neither party requests that the letter of findings be 
reviewed, the Responsible Official, within 14 calendar days of the 
expiration of the time period in paragraph (a)(9)(i) of this section, 
will send a formal written determination of compliance or noncompliance 
to the complainant, the Recipient, and the Award Official.
    (10) Voluntary compliance time limits. The Recipient will have 10 
calendar days, or such other reasonable amount of time specified in the 
letter transmitting the findings of noncompliance, from receipt of a 
formal determination of noncompliance within which to agree, in 
writing, to come into voluntary compliance or to contact the 
Responsible Official for settlement discussions. If the Recipient fails 
to meet this deadline, HUD will proceed in accordance with Secs. 6.12 
and 6.13.
    (11) Informal resolution/voluntary compliance. (i) General. It is 
the policy of HUD to encourage the informal resolution of matters. A 
complaint or a compliance review may be resolved by informal means at 
any time. If a letter of findings is issued, and the letter makes a 
finding of noncompliance, the Responsible Official will attempt to 
resolve the matter through a voluntary compliance agreement.
    (ii) Objectives of informal resolution/voluntary compliance. In 
attempting informal resolution, the Responsible Official will attempt 
to achieve a just resolution of the matter and to obtain assurances, 
where appropriate, that the Recipient will satisfactorily remedy any 
violations of the rights of any complainant, and will take such action 
as will assure the elimination of any violation of this part or the 
prevention of the occurrence of such violation in the future. If a 
finding of noncompliance

[[Page 26027]]

has been made, the terms of such an informal resolution shall be 
reduced to a written voluntary compliance agreement, signed by the 
Recipient and the Responsible Official, and be made part of the file. 
Such voluntary compliance agreements shall seek to protect the 
interests of the complainant (if any), other persons similarly 
situated, and the public interest.
    (iii) Right to file a private civil action. At any time in the 
process, the complainant has the right to file a private civil action. 
If the complainant does so, the Responsible Official has the discretion 
to administratively close the investigation or continue the 
investigation, if he or she decides that it is in the best interests of 
the Department to do so. If the Responsible Official makes a finding of 
noncompliance and an agreement to voluntarily comply is not obtained 
from the Recipient, the procedures at Secs. 6.12 and 6.13 for effecting 
compliance shall be followed.
    (12) Intimidatory or retaliatory acts prohibited. No Recipient or 
other person shall intimidate, threaten, coerce, or discriminate 
against any person for the purpose of interfering with any right or 
privilege secured by this part, or because he or she has made a 
complaint, testified, assisted, or participated in any manner in an 
investigation, compliance review, proceeding, or hearing under this 
part.
    (b) Compliance reviews--(1) Periodic compliance reviews. The 
Responsible Official may periodically review the practices of 
Recipients to determine whether they are complying with this part and 
may conduct on-site reviews. The Responsible Official will initiate an 
on-site review by sending to the Recipient a letter advising the 
Recipient of the practices to be reviewed; the programs affected by the 
review; and the opportunity, at any time prior to receipt of a final 
determination, to submit information that explains, validates, or 
otherwise addresses the practices under review. In addition, the Award 
Official will include, in normal program compliance reviews and 
monitoring procedures, appropriate actions to review and monitor 
compliance with general or specific program requirements designed to 
effectuate the requirements of this part.
    (2) Time period of the review. (i) For the Entitlement program, 
compliance reviews will cover the three years prior to the date of the 
review.
    (ii) For the Urban Development Action Grant (UDAG) program, the 
compliance review is applicable only to UDAG loan repayments or other 
payments or revenues classified as program income. UDAG repayments or 
other payments or revenues classified as miscellaneous revenue are not 
subject to compliance review under this part. (See 24 CFR 570.500(a).) 
The compliance review will cover the time period that program income is 
being repaid.
    (iii) For the State and HUD-Administered Small Cities programs, the 
compliance review will cover the four years prior to the date of the 
review.
    (iv) For all other programs, the time period covered by the review 
will be four years prior to the date of the review.
    (v) On a case-by-case basis, at the discretion of the Responsible 
Official, the above time frames for review can be expanded where facts 
or allegations warrant further investigation.
    (3) Early compliance resolution. On the last day of the on-site 
visit, after the compliance review, the Recipient will be given an 
opportunity to supplement the record. Additionally, a prefinding 
conference may be held and a summary of the proposed findings may be 
presented to the Recipient. In those instances where the issue(s) 
cannot be resolved at a prefinding conference or with the supplemental 
information, a meeting will be scheduled to attempt a voluntary 
settlement.
    (4) Notification of findings. (i) The Assistant Secretary will 
notify the Recipient of Federal financial assistance of the results of 
the compliance review in a letter of findings sent by certified mail, 
return receipt requested.
    (ii) Letter of findings. The letter of findings will include the 
findings of fact and the conclusions of law; a description of a remedy 
for each violation found; and a notice that a copy of HUD's final 
report concerning its investigation of the complaint allegations will 
be made available, upon request, to the Recipient.
    (iii) Response to the letter of findings of noncompliance. Within a 
reasonable period of time not to exceed 30 days after receipt of the 
letter of findings, the Recipient may request the commencement of 
discussions to resolve the findings of noncompliance voluntarily.


Sec. 6.12  Procedure for effecting compliance.

    (a) Whenever the Assistant Secretary determines that a Recipient of 
Federal financial assistance has failed to comply with Section 109(a) 
or this part and voluntary compliance efforts have failed, the 
Secretary shall notify the Governor of the State or the Chief Executive 
Officer of the unit of general local government of the findings of 
noncompliance and shall request that the Governor or the Chief 
Executive Officer secure compliance. If within a reasonable period of 
time, not to exceed 60 days, the Governor or the Chief Executive 
Officer fails or refuses to secure compliance, the Secretary shall:
    (1) Refer the matter to the Attorney General with a recommendation 
that an appropriate civil action be instituted;
    (2) Exercise the powers and functions provided by Title VI;
    (3) Terminate or reduce payments under Title I, or limit the 
availability of payments under Title I to programs or activities not 
affected by the failure to comply; or
    (4) Take such other actions as may be provided by law, including 
but not limited to, the initiation of proceedings under 24 CFR part 24 
or any applicable proceeding under State or local law.
    (b) Termination, reduction, or limitation of the availability of 
Title I payments. No order terminating, reducing, or limiting the 
availability of Title I payments under this part shall become effective 
until:
    (1) The Secretary has notified the Governor of the State or the 
Chief Executive Officer of the unit of general local government of the 
Recipient's failure to comply in accordance with paragraph (a) of this 
section and of the termination, reduction or limitation of the 
availability of Title I payments to be taken;
    (2) The Secretary has determined that compliance cannot be secured 
by voluntary means; and
    (3) The Recipient has been extended an opportunity for a hearing in 
accordance with Sec. 6.13(a); and
    (4) A final agency notice or decision has been rendered in 
accordance with paragraph (c) of this section or 24 CFR part 180.
    (c) If a Recipient does not respond to the notice of opportunity 
for a hearing or does not elect to proceed with a hearing within 20 
days of the issuance of the Secretary's actions listed in paragraphs 
(b)(1), (2) and (3) of this section, then the Secretary's approval of 
the termination, reduction or limitation of the availability of Title I 
payments is considered a final agency notice and the Recipient may seek 
judicial review in accordance with section 111(c) of the Act.


Sec. 6.13  Hearings and appeals.

    (a) When a Recipient requests an opportunity for a hearing, in 
accordance with Sec. 6.12(b)(3), the General Counsel shall follow the 
notification procedures set forth in 24 CFR 180.415. The hearing, and 
any petition for review, will be conducted in accordance with

[[Page 26028]]

the procedures set forth in 24 CFR part 180.
    (b) After a hearing is held and a final agency decision is rendered 
under 24 CFR part 180, the Recipient may seek judicial review in 
accordance with section 111(c) of the Act.

PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS 
MATTERS

    2. The heading of part 180 is revised to read as set forth above.
    2a. The authority citation for 24 CFR part 180 continues to read as 
follows:

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

    3. In Sec. 180.100, the paragraph (c) designation is removed and a 
new paragraph (c) is added immediately above the definition for Agency; 
and the definitions of ``Federal financial assistance,'' ``Non-Fair 
Housing Act Matters,'' and ``Recipient'' are revised to read as 
follows:


Sec. 180.100  Definitions.

* * * * *
    (c) Other terms used in this part are defined as follows:
* * * * *
    Federal financial assistance has the meaning provided in 24 CFR 
1.2, 6.3, 8.3, or 146.7, as applicable.
* * * * *
    Non-Fair Housing Act Matters refers to proceedings under this part 
pursuant to:
    (1) Title VI of the Civil Rights Act of 1964, as amended, (42 
U.S.C. 2000d-1) and the 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;
    (3) The Age Discrimination Act of 1975, as amended (42 U.S.C. 
6103), and the implementing regulations at 24 CFR part 146; or
    (4) Section 109 of Title I of the Housing and Community Development 
Act of 1974, as amended (42 U.S.C. 5301-5321), and the implementing 
regulations at 24 CFR part 6.
* * * * *
    Recipient has the meaning provided in 24 CFR 1.2, 6.3, 8.3, or 
146.7, as applicable.
* * * * *
    4. Section 180.105 is amended by removing ``and'' at the end of 
paragraph (a)(3), by removing the period at the end of paragraph (a)(4) 
and adding ``; and'' in its place, and by adding a new paragraph 
(a)(5), to read as follows:


Sec. 180.105  Scope of rules.

    (a) * * *
    (5) Section 109 of Title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301-5321) and implementing regulations at 24 
CFR part 6.
* * * * *
    5. In Sec. 180.310, paragraph (a) is revised to read as follows:


Sec. 180.310  Parties.

    (a) Parties to proceedings under this part are HUD, the 
respondent(s), and any intervenors. 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, 6, 8 or 146 and notices of proposed adverse action under this 
part.
* * * * *
    6. In Sec. 180.415, the section heading and paragraph (a) are 
revised to read as follows:


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 parts 1, 6, 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.
* * * * *

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

    7. The authority for part 570 continues to read as follows:

    Authority: 42 U.S.C. 3535(d) and 5301-5320.

    8. Section 570.602 is revised to read as follows:


Sec. 570.602  Section 109 of the Act.

    Section 109 of the Act requires that no person in the United States 
shall on the grounds of race, color, national origin, religion, or sex 
be excluded from participation in, be denied the benefits of, or be 
subjected to discrimination under any program or activity receiving 
Federal financial assistance made available pursuant to the Act. 
Section 109 also directs that the prohibitions against discrimination 
on the basis of age under the Age Discrimination Act and the 
prohibitions against discrimination on the basis of disability under 
Section 504 shall apply to programs or activities receiving Federal 
financial assistance under Title I programs. The policies and 
procedures necessary to ensure enforcement of Section 109 are codified 
in 24 CFR part 6.
    9. In Sec. 570.913, a heading is added to paragraph (a) and the 
introductory text of paragraph (a) is revised to read as follows:


Sec. 570.913  Other remedies for noncompliance.

    (a) Action to enforce compliance. When the Secretary acts to 
enforce the civil rights provisions of Section 109, as described in 
Sec. 570.602 and 24 CFR part 6, the procedures described in 24 CFR 
parts 6 and 180 apply. If the Secretary finds, after reasonable notice 
and opportunity for hearing, that a recipient has failed to comply 
substantially with any other provisions of this part, the provisions of 
this section apply. The Secretary, until he/she is satisfied that there 
is no longer any such failure to comply, shall:
* * * * *
    Dated: March 27, 1998.
Andrew Cuomo,
Secretary.
[FR Doc. 98-11849 Filed 5-8-98; 8:45 am]
BILLING CODE 4210-32-P