1 1 Non-Discrimination and Fair Housing Requirements For Grant Administrators

2 Overview State and Local Governments receiving CDBG funds must take measures to: –Ensure non-discriminatory treatment and equal access –Affirmatively further fair housing –Provide economic opportunities to low-income residents (Section 3)

3 Overview - continued Requirements apply to: –Housing –Benefits/opportunities created by CDBG –Employment –Business opportunities, such as contracting

4 Applicable Laws and Regulations Several Federal laws protect individuals from discrimination and apply to CDBG funded activities. These include: –Section 109 of the Housing and Community Development Act of 1974-prohibits discrimination on the basis of race, color, national origin, sex or religion in any CDBG- funded program or activity (24 CFR (b)).

5 Applicable Laws--continued –Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination in housing- related transactions on the above basis as well as familial status and handicap (disability). - Title VI of the Civil Rights Act No exclusion from participation in federally funded programs or activities based on race, color, or national origin

6 Applicable Laws - continued Section 104(b)(2) of the Housing and Community Development Act of 1974 – requires that each grantee certify that the grant will be administered in conformance with the Fair Housing Act and that the grantee will “affirmatively further fair housing” (AFFH).

7 Applicable Laws - continued Section 504 of the Rehabilitation Act of 1973 – prohibits discrimination based on disability in any program or activity receiving federal financial assistance. Architectural Barriers Act of 1968 – requires that buildings constructed or assisted with federal funds be accessible to and usable by handicapped persons.

8 Applicable Laws - continued Section 3 of the Housing and Urban Development Act of 1968 requires that employment and other economic opportunities arising in connection with housing rehab, construction or other public construction projects shall be given to low- and very low-income persons, to greatest extent feasible (24 CFR Part 135 and 24 CFR ).

9 Affirmatively Furthering Fair Housing (AFFH) States and Local Governments receiving CDBG funds must certify that they will affirmatively further fair housing (24 CFR and 24 CFR Part (a)(1)).

10 Affirmatively Furthering Fair Housing continued State government responsibilities: –identifying impediments to fair housing choice –conducting fair housing planning –taking actions to overcome the identified impediments –maintaining records –assuring that local governments comply with certifications.

11 Affirmatively Furthering Fair Housing - continued Local government responsibilities: –Develop proposed action to AFFH for state review and approval –Develop complaint procedure –Develop method for documenting efforts to promote and monitor activities –Other requirements may be imposed by state

12 Section 504 Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in Federally assisted programs on the basis of disability. –Includes standards for new construction, substantial rehabilitation –Requires adaptations needed so that a qualified person with a disability may fully participate in a program, take advantage of a service, perform a job, or be able to use and enjoy a dwelling - including common areas –Applies to the recipient and any sub-recipient –Additional guidance at 24CFR Part 8 and 9 and HUD Notices CPD and CPD

13 Section 3 24 CFR and 24 CFR Part 135 Requires that to greatest extent possible: –Training, employment and other economic opportunities arising in connection with CDBG- funded housing or other public construction projects must be provided to low- and very low- income persons residing in the program/project service area. –Contracts be awarded to business concerns that are located in or owned by persons residing in program/project service area and that will employ low-and very low-income persons who reside in the service area.

14 Section 3 - continued Applies to: –Housing Rehabilitation –Lead Hazard Abatement –Housing Construction –Other Public Construction Projects –$200,000/$100,000 thresholds

15 Section 3 - continued Requirements: –Notify Section 3 residents of employment and training opportunities –Notify contractors of Section 3 requirements –Facilitate employment/training opportunities for Section 3 residents

16 Section 3 - continued Who is a Section 3 Resident? –A resident of a public housing or a L/M income person residing in the area in which HUD assisted project is located

17 Section 3 - continued What is a Section 3 Business Concern? –owned by Section 3 resident(s) –employs a substantial number of Section 3 residents (30% of permanent FTE position) or –subcontracts with business concerns owned by or employing Section 3 residents (at least 25% of dollar award of all subcontracts)

18 Section 3 - Reporting States are responsible for reporting to HUD annually on all contract and subcontract activities in period for contracts over $10,000. Local governments must provide required information.