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HUD's 2001 Budget
Congressional Justifications for Estimates

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
BUDGET ACTIVITY 7: FAIR HOUSING AND EQUAL OPPORTUNITY

SCOPE OF ACTIVITY

The Assistant Secretary for Fair Housing and Equal Opportunity (FHEO) is responsible for administrative enforcement of the Fair Housing Act and ensuring that HUD programs promote fair housing and comply with civil rights laws.

WORKLOAD

The principal workload of Fair Housing and Equal Opportunity consists of processing and investigating housing discrimination complaints, implementing civil rights requirements in HUD programs, conducting compliance reviews, managing grants to fair housing organizations, reimbursing fair housing agencies for investigating housing discrimination complaints, and implementing voluntary programs.

  1. HEADQUARTERS

    The Immediate Office of the Assistant Secretary. The Assistant Secretary is responsible for fair housing and civil rights policy, enforcement of the fair housing and equal opportunity laws within HUD's jurisdiction, and management of the Office of Fair Housing and Equal Opportunity. The Assistant Secretary supervises the General Deputy Assistant Secretary, the Deputy Assistant Secretary for Operations and Management, the Deputy Assistant Secretary for Enforcement and Programs, the Director of the Office of Policy and Program Evaluation, and an immediate staff of five.

    1. Office of Policy and Program Evaluation. The Office of Policy and Program Evaluation serves as the central point for the formulation, clearance and dissemination of all FHEO policies, intra-departmental, evaluation, external, and all public information (internal and external) regarding FHEO, and is directly responsible for the design and development of voluntary compliance programs and for FHEO's fair lending oversight of Fannie Mae and Freddie Mac. The Office is responsible for evaluating various FHEO programs, policies, procedures and initiatives through studies and reviews to determine their effectiveness and to make recommendations, as appropriate.

      The Office prepares major statements of policy, coordinates the development of regulations, notices and other policy instruments; prepares major policy statements for the Assistant Secretary; and reviews all public presentations involving existing, new or proposed enforcement, compliance, affirmatively furthering of fair housing and voluntary civil rights program policy.

    2. Field Oversight Staff. The Field Oversight staff provides staff support to the General Deputy Assistant Secretary, to whom the Hub Directors report. It is the primary point of contact between the field and FHEO Headquarters. As such, it is responsible for advising and assisting the General Deputy Assistant Secretary on all matters relating to implementation of FHEO programs and activities in Field Offices, including rating the performance of Hub Directors. The staff is responsible for: communicating to the field FHEO policy which is developed by Headquarters program offices in consultation with the Office of Policy; monitoring field performance; and coordinating the provision of technical assistance related to enforcement, program operations and compliance matters in consultation with the Office of Programs and the Office of Investigations. Where management and budget issues are concerned, the staff consults with the Office of Management and Planning.

    3. Young Implementation Office. The Fort Worth Fair Housing Office is responsible for ensuring that the Department complies with the various court orders that came out of the Young v. Cuomo case. The Office also assures that funds are properly used to comply with the court ordered and HUD-approved desegregation plans for 70 PHA's in East Texas. Additionally, the office monitors and provides technical assistance to the 36-county areas of East Texas as identified in Young v. Cuomo, and takes corrective action when necessary.

    Office of the Deputy Assistant Secretary for Enforcement and Programs. The Deputy Assistant Secretary for Enforcement and Programs has the responsibility of making recommendations or decisions as appropriate on enforcement matters arising under: the Federal Fair Housing Act; Title VI of the Civil Rights Act of 1964; Executive Order 11063; Section 109 of the Housing and Community Development Act of 1974; Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act; and the Age Discrimination Act of 1975. It manages the Fair Housing Assistance Program and makes recommendations or decisions as appropriate on all matters related to the investigation of complaints. In addition, it is responsible for the disability policy, for administering the award and management of Fair Housing Initiatives Program grants, and for negotiating and implementing voluntary fair housing compliance programs.

    1. Office of Programs. The Office of Programs is responsible for the development and application of civil rights related program requirements to ensure that HUD programs embody fair housing and equal opportunity objectives and for making recommendations or decisions as appropriate on enforcement matters arising under Title VI of the Civil Rights Act of 1964; Section 109 of the Housing and Community Development Act of 1974; Section 504 of the Rehabilitation Act of 1973; Section 3 of the Housing and Urban Development Act of 1968; and the Americans with Disabilities Act of 1975.
      1. Program Standards Division. The Program Standards Division is responsible for developing fair housing policy, participating in the development, implementation and program management and administration of programs, (e.g., fair housing planning); and for reviewing all proposed legislation, regulations, handbooks, notices and other issuances relating to the administration of HUD programs; and for recommending appropriate revisions to such documents to implement applicable civil rights laws and Executive Orders. The Division is the focal point for implementing the Secretary's responsibility for assuring that all HUD programs affirmatively further fair housing.

      2. Fair Housing Initiatives and Fair Housing Assistance Programs Support Division. The FHIP/FHAP Support Division, located in the Office of Programs, is responsible for FHEO funded program activities under the Fair Housing Initiatives Program (FHIP) and the Fair Housing Assistance Program (FHAP). The FHIP is a competitive grants program designed to prevent or eliminate discriminatory housing practices. The FHAP provides funding to assist substantially equivalent State and local agencies in case processing, training, education and outreach, as well as provides and, where necessary, improves agency data and information systems, and capacity building activities.

    2. Office of Enforcement. The Office of Enforcement is responsible for developing policies and guidance and for providing technical support for enforcement of the Fair Housing Act and the civil rights statutes, including Title VI of the 1964 Civil Rights Act, Section 504 of the 1973 Rehabilitation Act, the Architectural Barriers Act of 1968, Section 109 of the Housing and Community Development Act of 1974, and the Age Discrimination Act of 1975, as well as Executive Orders.

      It is responsible for national coordination of investigative and conciliation practices, providing policy and guidance through written materials and technical assistance to the field, and with ensuring that national priorities are established and maintained.

      1. Fair Housing Enforcement Support Division. This Division is responsible for developing standards, regulations, rules, guidelines and handbooks for the implementation of Title VIII of the Civil Rights Act of 1968 and for formulating and carrying out the Secretary's responsibility for systemic and Secretary-initiated cases which are the most complex, controversial, or sensitive fair housing civil rights cases. It also provides technical assistance and reviews cases submitted by Enforcement Centers for determination of appropriate dispositions. In addition, the Division has responsibility relating to liaison and technical assistance to the Office of General Counsel.
      2. Program Compliance and Disability Rights Support Division. The Program Compliance and Disability Rights Support Division is responsible for the development of policies and procedures for assuring compliance by recipients of HUD financial assistance with Title VI of the Civil Rights Act of 1964, Section 109 of the Housing and Community Development Act of 1974; Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975; Title II of the Americans with Disabilities Act of 1990; and the Architectural Barriers Act of 1968. In addition, the Division formulates and communicates compliance standards for the design, construction and alteration of housing and other buildings to meet the requirements for accessibility imposed by the Fair Housing Amendments Act of 1988 and Section 504 of the Rehabilitation Act of 1973.

    Office of the Deputy Assistant Secretary for Operations and Management. The Office of the Deputy Assistant Secretary for Operations and Management is responsible for the development, direction, and supervision of the Office of Fair Housing and Equal Opportunity's operations and management functions. This responsibility includes: (a) utilization of resources to achieve equal opportunity goals; (b) personnel and training; (c) staff allocation; (d) performance of technical and management evaluations; (e) budget formulation and execution; and (f) contract administration. The Office of the Deputy Assistant Secretary includes the Office of Information Services and Communication and the Office of Management and Planning.

    1. Office of Information Services and Communication. This Office is responsible for all automation (computer) related activities and for correspondence received and sent by the Office of Fair Housing and Equal Opportunity. It is the FHEO component that performs primary liaison and coordination activities with the Technology Support Division. The Office participates as a voting member of the Departmental Technical Investment Board (TIB); develops and executes the FHEO proposed automation projects budget; tracks the timeliness of the completion of all Congressional, White House, Secretarial, Freedom of Information Act (FOIA) requests and internal FHEO correspondence; edits and reviews out-going correspondence for conformance with Departmental standards; and maintains chronological files of all outgoing signature correspondence.

      Technology Support Staff. The staff provides technical support to all FHEO offices in Headquarters and in field offices. In performing this activity, the staff assures that offices are provided necessary hardware equipment, software and access to systems necessary to carry out the duties of FHEO. It works extensively with FHEO program offices to understand the automation requirements necessary to assure that systems are developed and/or engineered to support program activity and that information collected provides for accounting for workload accomplishment. It also translates "program jargon" to technical jargon to assure that IT (technical staff) can develop systems, applications or programs that meet the stated requirement.

      The staff is also responsible for responding to all systems data related FOIA requests as well as internal requests from FHEO management, for developing and providing training for all systems/applications implementation activities as well as training on correspondence procedure, for providing on-site technical support and guidance to Office Directors tasked with responding to court orders or consent decrees when the Department is a party in various litigation throughout the country, and for maintaining E-mail lists for various groups to facilitate ease of communication and Internet Fair Housing Page content.

    2. Office of Management and Planning. The Office of Management and Planning is responsible for providing and coordinating the management, administrative, budgeting and program evaluation and planning functions of the Office of Fair Housing and Equal Opportunity. The Office supports the program components of FHEO through the following: budget preparation and administration; development and implementation of program management and performance evaluation and planning systems; administration of personnel services; interpretation of rules, regulations, standards, and guidelines related to personnel, labor/management, and procurement; liaison with the Office of the Inspector General to coordinate actions related to internal program audits and investigations; and liaison with the Chief Financial Officer on management controls and financial matters. In addition, the Office is responsible for program, technical and managerial training, and the development of training with industry groups and partners.

      It is also responsible for management planning including the development of Headquarters and Field Management plans, management controls, vulnerability and front-end risk assessments, coordination and implementation of the Government Performance Results Act (GPRA), and the Secretary's Performance Report. Other responsibilities of the Office include the management of internal and external audits, the institution of internal controls, the identification of management or operational deficiencies, and the development of recommendations to alleviate such deficiencies.

      Budget and Administrative Support Division. The Budget and Administrative Support Division is responsible for budget formulation and execution activities, contract administration, personnel and management services and labor/employee relations. The Division is responsible for formulating, reviewing and evaluating plans, standards and basic procedures on budget formulation, presentation and execution, including the administrative control of funds, procurement, and contracts. The Division is also responsible for developing and administering administrative support services for management of issuances, delegations, regulations, reports, forms, staff development, position management, internal FHEO affirmative action matters, office services, and grievances.

  1. FIELD

    The Fair Housing and Equal Opportunity Hub combines the fair housing enforcement and the program operations and compliance activities. The Hub is responsible for administering the Department's programs in connection with equal opportunity and civil rights including those covered under Title VIII of the Civil Rights Act of 1968, as amended; Title VI of the Civil Rights Act of 1964, Section 109 of the Housing and Community Development Act of 1974, as amended, Section 504 of the Rehabilitation Act of 1973, Section 3 of the Housing and Urban Development Act of 1968, the Americans with Disabilities Act of 1975, the Age Discrimination Act of 1975, and relevant Executive Orders.

    The field organization is made up of ten Hub geographic areas or territories with a Hub Director supervising all FHEO functions for each geographic area. Each geographic area is subdivided into one or more Program Centers headed by a Program Center Director who is responsible for carrying out all of the FHEO functions. The Program Center Directors have the capability of subdividing supervision with regard to the program/compliance functions and the enforcement function. At the Hub Director's office, there is an intake function for the entire geographic area supported by special assistants and clerical support. The intake of complaints which are subsequently reassigned to the Program Centers are formally accomplished in the Office of the Hub Director.

    The functions of the Hub Director are basically to: (1) ensure that all staff in the geographic area work consistently and cooperatively to carry out the mission of civil rights protection in program delivery and enforcement responsibilities as defined by statute; (2) ensure an appropriate allocation and deployment of resources throughout the geographic area with regard to general and specialty functions as required; (3) serve as the point of contact on all major policy issues regarding HUD's civil rights responsibilities within that geographic area and beyond, particularly with appropriate Headquarters offices (this includes interaction with the Secretary's Representatives and other high program directors to carry out "Community First" and "Place-Based" approaches on behalf of HUD's mission); and (4) serve as point of appeals, in consultation with Headquarters, for all Civil Rights Related Program Requirements and compliance determinations made by the Program Center Directors.

    The functions of the Program Center Directors are to: (1) supervise the Civil Rights Analysts and investigative staff assigned to the Program Center; (2) ensure an appropriate allocation and deployment of resources throughout the Program Center with regard to general and specialty functions as required; (3) serve as the point of contact on all major policy issues regarding HUD's civil rights responsibilities within that Program Center; (4) work closely with the Hub Director with regard to clarifications of policy and sensitive matters that have implications beyond the Program Center and require Headquarters involvement; and (5) interact routinely with the Program Directors to carry out Community First and Place-Based approaches for the sake of implementing FHEO's mission.

    TRAVEL

    The 2000 current estimate for FHEO travel proposes a total funding level of $1,211 thousand for Headquarters and field travel. Of this total, $500 thousand will support Headquarters travel and $711 thousand will support Field activities. The $1,242 thousand proposed for fiscal year 2001 represents a $31 thousand increase over the 2000 current estimate. This Budget represents continual support of management reform activities. These travel funds will support on-going efforts in the doubling of enforcement actions; joint investigations; on-site technical assistance; software installation; and national training for field staff in enforcement initiatives and program related activities. In addition, travel funds will support an Aged Case Strike Force with the objective of reducing the inventory of aged cases. Travel funds will also support the establishment of a Lending Task Force and the continuation of efforts regarding Secretary-initiated investigations.

    CONTRACTS

    The following table identifies the specific contracts required and is followed by a description of each.

    Public Information Services. The Department plans to continue its efforts in updating, developing, disseminating information, and providing program assistance on fair housing issues to the public. This service will include distribution of the Fair Housing Initiative Program's Notice of Funding Availability. These services will accommodate the submissions of the FHIP and FHAP Program work products, Section 3 reports, and the Regional Opportunity Counseling Programs and the increase in user requests based on greater familiarity with the services provided.

    Technical Services. The $1,027 thousand proposed for fiscal year 2001 represents a $490 thousand increase over the 2000 current estimate. This funding supports the cost for continual, expanded and additional services for the Department. The Department will enter into contracts to support the: (1) doubling of enforcement actions and compliance reviews; (2) evaluation of FHIP Proposals; (3) implementation of civil rights requirements of the Quality Housing and Work Responsibility Act of 1998; (4) development of a HUD-based national language interpreter service; and (5) continuing and expanded sign language services. The amount requested also includes incidental expenses the Department requires in support of its investigation and litigation process. Expenditures include acquiring expert witnesses, consultants, testers and appraisers to examine and establish evidence of fair housing discrimination. FHEO will continue its contract for providing administrative support to the evaluation of proposals submitted under the FHIP's Notice of Funding Availability. It will also fund the development of new standards which will help HUD disciplines to enforce the civil rights program related requirements. The Quality Housing and Work Responsibility Act of 1998 represents a major change in the way public housing programs operate and in the way civil rights requirements apply to those programs. Contract funds will: (1) assist the Office of Fair Housing to develop capacity in carrying out the 1998 Act; (2) develop analytical and evaluation tools which will assess the Housing Agencies' effectiveness in implementing the civil rights requirements; and (3) provide models which HUD may pilot in several housing agencies to test the implementation of the civil rights provisions of the 1998 Act. The civil rights provisions include admissions and occupancy standards, site-based waiting lists, deconcentration, affirmatively furthering fair housing certification, voluntary and involuntary conversions and the public housing agency plan. The HUD-based national language interpreter contract will accommodate interpreting services to reach non-English speaking complainants, assist in outreach programs and services and assist in investigations. It also supports continual and expanded services under the Department's contract for Sign Language Interpreting Service.

    Management Studies. These funds will support the Department's contract for the Business Process Redesign (BPR) project for FHEO operations and compliance activities. This BPR, when implemented, will provide timely and consistent information on program operations and compliance reviews and achieve more efficiency of operations with fewer employees. This requirement is necessary as set forth in the Department's new mission statement under the Business Operating Plan. In addition, these funds will support a feasibility study of the cost of processing complaints and alternatives to the amount of capacity building funding allocated under the FHAP.

    General Support. The $400 thousand proposed for fiscal year 2001 represents a $150 thousand increase over the 2000 current estimate. This funding will support the continuance of a contract to monitor the underwriting appraisal practices of Government Sponsored Enterprises(GSE's) to determine compliance with Federal fair lending laws. These funds will also support FHEO's program and operational activities. Services such as court reporters, public service announcements, advertisements, and a National FHIP Fair Housing Fair and Awards ceremony. These funds also support the implementation of the Fair Housing Amendment Act and the temporary employment services needed to augment full-time investigative staff.

    Training (Non-Federal). With the Department's reform in full operation, there are staff assigned to FHEO who have not been trained in the area of substantial equivalency. An agency to become substantially equivalent must have a performance assessment conducted. A nationwide training program will be developed and implemented on substantial equivalency certification and the use of information systems to input and maintain substantial equivalency information which staff is required to use to monitor the agencies' administration of its fair housing law or ordinance.

    JUSTIFICATION FOR S&E FUNDED INITIATIVES IN YEAR 2001

    In the fiscal year 2001 Budget request, the Office of Fair Housing and Equal Opportunity is proposing one initiative to be implemented. This initiative is to be carried out through a combination of FHIP and FHAP funds and Salaries and Expenses (S&E).

    Alternative Dispute Resolution: This new initiative supports the Annual Performance Plan and National BOP Program Goals of restoring the public trust by decreasing the number of complaints filed with HUD using Alternative Dispute Resolution mechanisms to resolve selected Fair Housing Act complaints through the conciliation process mandated under Section 810 of the Act.

    HUD staff will screen both pending and aged cases in their respective inventories and new complaints that are received in the inventory. Using established uniform criteria, HUD or FHAP staff will select those complaints that are appropriate for possible resolution through the Alternative Dispute Resolution (ADR) mediation process. Complaints alleging systemic discrimination or involving discriminatory policies that may affect a class of persons, and novel and complex cases, will not be selected for the Alternative Dispute Resolution process.

    Once a complaint has been selected for resolution through ADR, HUD staff will ask the complaint parties whether they are amenable to ADR. If so, HUD staff will make arrangements for an ADR conference. It is anticipated that the majority of ADR sessions will be face-to-face conferences. Persons conducting the ADR attempt will be trained professional mediators under contract with HUD.

    New complaints successfully resolved through ADR will not become aged since it is anticipated that the ADR process will be completed within 100 days of the filing of the complaint. This will substantially contribute to the reduction of aged case inventory and the resolution of pending aged cases through ADR. We do not anticipate a reduction in staff allocation needs, but rather project the need for additional staff. Existing investigative staff will have more time to devote to the reduction of the aged inventory and the development of meritorious cases, thereby contributing to our goals both of reducing aged cases and reducing housing discrimination. In addition, the quality of our efforts at informal resolution of complaints, mandated by the statute, will continue to improve because of trained professional mediators.

    Funding of $400,000 is required for the first year of operation. This is based on an average per ADR processed case estimate of approximately $400, plus start up costs.

    Based upon the experience of other ADR projects, it is estimated that approximately 1,000 complaints will be resolved through this initiative during the first year of its operation.

    Content Archived: January 20, 2009
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