[Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
[Rules and Regulations]
[Pages 3796-3802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1621]



[[Page 3795]]

_______________________________________________________________________

Part V





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Parts 6, 180 and 570



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

  Federal Register / Vol. 64, No. 15 / Monday, January 25, 1999 / Rules 
and Regulations  

[[Page 3796]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 6, 180, 570

[Docket No. FR 4092-F-02]
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: Final rule.

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SUMMARY: This rule establishes procedures to file a complaint for a 
claim of discrimination under HUD's community planning and development 
programs funded under Title I of the Housing and Community Development 
Act of 1974. The procedure is modeled on HUD'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 provides 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. The rule also 
informs the public of HUD's procedures for conducting compliance 
reviews.

DATES: Effective date February 24, 1999.

FOR FURTHER INFORMATION CONTACT: Betsy Ryan, Office of Enforcement, 
Office of Fair Housing and Equal Opportunity, Room 5208, Department of 
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 
20410-5000, telephone (202) 619-8041, ext. 6991. (This telephone number 
is not toll-free.) Hearing or speech-impaired persons may access this 
number via TTY by calling the Federal Information Relay Service at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    On May 11, 1998, the Department published a proposed rule to 
implement the provisions of section 109 of Title I of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5301-5321) (Title I), at 
63 FR 26022. The comment period ended on July 10, 1998, and no public 
comments were received. This final rule makes only clarifying changes 
to that proposed rule.
    Section 109 was modeled on the language of 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, 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. Section 109 was amended to direct 
that the existing prohibitions against discrimination on the basis of 
age and against discrimination on the basis of disability apply to 
Title I programs, and it was amended to add protection against 
discrimination on the basis of religion. (See complete history in the 
proposed rule preamble, published on May 11, 1998, 63 FR 26022.)

II. Changes From Proposed Rule

    Only minor, clarifying changes are made to the May 11, 1998 
proposed rule in the adoption of this final rule. The changes affect 
Secs. 6.2, 6.3, and 6.11. To provide a complete version of the rule, 
this final rule republishes the language of the proposed rule, with 
minor clarifications.
    The applicability section of the rule, Sec. 6.2, did not 
specifically mention the Secretary's partial waiver of Section 109 with 
respect to programs for native Americans. A new paragraph (c) has been 
added, comparable to the paragraph dealing with Hawaiian Homelands. New 
paragraph (c) states that the section 109 protections against 
discrimination on the basis of race and national origin do not apply to 
grant recipients under the Native American Housing Assistance and Self-
Determination Act, and it references the provision of the Indian 
Community Development Block Grant rule that already makes race and 
national origin restrictions inapplicable to Indian tribal entities.
    The definition of Federal financial assistance found in Sec. 6.3 
contained a grammatical inconsistency, which is corrected in this rule.
    At the proposed rule stage, Sec. 6.11 was organized into two 
paragraphs. Paragraph (a) applied to complaints; paragraph (b) applied 
to compliance reviews. The provisions dealing with response after 
issuance of a letter of findings, informal resolution process, and 
right to file a civil action were all contained within paragraph (a), 
although these procedures actually are applied to compliance reviews as 
well. At this final rule stage, Sec. 6.11 is reorganized to place the 
provisions applicable to both in separate new paragraphs (c), (d), (e), 
and (f), and the language is revised slightly to make it appropriate to 
apply to both situations. In light of these revisions, a paragraph that 
dealt with the issue of response to the letter of findings of 
noncompliance was removed from the paragraph on compliance reviews 
because it was redundant.
    This final rule makes no substantive changes to the process 
provided in the proposed rule.

III. Findings and Certifications

Public Reporting Burden

    The information collection requirements in Sec. 6.6 of this 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 final rule 
under Executive Order 12250.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes requirements for Federal 
agencies to assess the effects of their regulatory actions on State, 
local, and tribal governments, and the private sector. This rule does 
not impose any Federal mandates on any State, local, or tribal 
governments, or on the private sector, within the meaning of the UMRA.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(3) of the HUD regulations, the 
policies and procedures 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 final rule before publication, and by 
approving it certifies that this final rule would not

[[Page 3797]]

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 will not have any 
meaningful impact on small entities. The entities that receive 
assistance under Title I of the Housing and Community Development Act, 
to which this rule applies, are either States or ``entitlement 
jurisdictions'', all of which have populations of greater than 50,000 
and consequently do not fall within the definition of small entities. 
In addition, we note that the proposed rule preamble specifically 
invited comment on alternatives to the compliance procedure for small 
entities that might be less burdensome to them. There was no response.

Executive Order 13083, Federalism

    The Department has determined that, under section 1 of Executive 
Order 13083, Federalism, the policies contained in this rule are not 
policies that 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 final 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 
final 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, Northern Mariana Islands, Pacific Islands Trust Territory, 
Puerto Rico, Reporting and recordkeeping requirements, Small cities, 
Student aid, Urban renewal, Virgin Islands.

    Accordingly, subtitle A and chapters I and V of title 24 of the 
Code of Federal Regulations are 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) 42 U.S.C. 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 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 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 that 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).
    (c) The provisions of this part and sections 104(b)(2) and 109 of 
Title I that relate to discrimination on the basis of race and national 
origin shall not apply to the provision of Federal financial assistance 
to grant recipients under the Native American Housing Assistance and 
Self-Determination Act (25 U.S.C. 4101). See also, 24 CFR 1003.601(a).


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 under that program.
    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

[[Page 3798]]

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) Any 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 a State or local government that distributes 
Federal financial assistance, and each department or agency (and each 
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 the 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 that is 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. 
Recipient does not include any ultimate beneficiary under any 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 
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, on the grounds of 
race, color, national origin, religion, or sex.
    (1) A Recipient under any program or activity to which this part 
applies may not, directly or through contractual, licensing, or other 
arrangements, take any of the following actions on the grounds of race, 
color, national origin, religion, or sex:
    (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 that 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 that 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 that 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 that 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. The Recipient may not make selections that 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 that resulted in limiting 
participation by

[[Page 3799]]

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 subpart C of 24 CFR part 570 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 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. Terms and conditions of employment include 
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 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 that 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 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. Generally, the Responsible Official shall hold 
in confidence the identity of any person submitting a complaint, unless 
the person submits written authorization otherwise. However, an 
exception to maintaining confidentiality of the identity of the person 
may be required 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

[[Page 3800]]

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 while the complaint 
is being considered, 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 assess 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.
    (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 before 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 implement the 
requirements of this part.
    (2) Time period of the review. (i) For the Entitlement program, 
compliance reviews will cover the three years before 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 before the date of the 
review.
    (iv) For all other programs, the time period covered by the review 
will be four years before 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 compliance review will be made available, upon 
request, to the Recipient.
    (c) Right to a review of the letter of findings. (1) Within 30 days 
of receipt of the letter of findings, any party 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.
    (2) The Responsible Official will send by certified mail, return 
receipt requested, a copy of the request for review to all parties. 
Parties other than the party requesting review and HUD shall have 20 
days from receipt to respond to the request for review.
    (3) 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.
    (4) If no 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 all 
parties.
    (d) Voluntary compliance time limits. The Recipient will have 10 
calendar days from receipt of the letter of findings of noncompliance, 
or such other reasonable time as specified in the letter, 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.
    (e) Informal resolution/voluntary compliance--(1) 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.
    (2) 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

[[Page 3801]]

violation of this part or the prevention of the occurrence of such 
violation in the future. If a finding of noncompliance 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.
    (3) 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.
    (f) 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.


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 will notify the Governor of the State or the Chief Executive 
Officer of the unit of general local government of the findings of 
noncompliance and will 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 will:
    (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;
    (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 will follow the 
notification procedures set forth in 24 CFR 180.415. The hearing, and 
any petition for review, will be conducted in accordance with 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.
    3. 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.

    4. 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.
* * * * *
    5. 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.
* * * * *
    6. 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

[[Page 3802]]

respondents in hearing notices issued under 24 CFR parts 1, 6, 8 or 146 
and notices of proposed adverse action under this part.
* * * * *
    7. 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

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

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

    9. 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.
    10. 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: January 12, 1999.
Andrew Cuomo,
Secretary.
[FR Doc. 99-1621 Filed 1-22-99; 8:45 am]
BILLING CODE 4210-32-P