The fiscal year 2001 Budget request for the Fair Housing Initiatives Program (FHIP) is $29 million. This is an increase of $5 million from the fiscal year 2000 Appropriation. The increase supports education and outreach activities to private fair housing organizations, state and local government agencies, housing industry and other advocacy groups and other public or private entities that are designed to increase compliance with the FH Act and substantially equivalent state and local fair housing laws.

Specifically, the $5 million increase will be used for the following education and outreach program initiatives: (a) $2.5 million to provide greater education and outreach to housing providers, and industry and fair housing and disability advocacy organizations to increase awareness and to provide technical assistance regarding the accessibility provisions of the FH Act, its implementing regulations and the Fair Housing Accessibility Guidelines; (b) $1 million to establish a training academy to train private groups, state agencies and others using testing to carry out the FH Act; and (c) $1.5 million to provide additional funds to total $7.5 million, for the third year, in support of the National Housing Discrimination Audit begun in fiscal year 1999.

Responding to the rise in attention to the accessibility requirements in the FH Act, which became effective in March of 1991, increasing industry concerns about how to meet these statutory mandates (e.g. during a 2-month period in fiscal year 1999, the Fair Housing Information Clearing House logged over 400 calls relating to construction accessibility from building industry professional) and an increasing number of Title VIII complaints filed by people with disabilities and private fair housing groups, the fiscal year 2001 FHIP program seeks to provide major support for additional efforts by HUD to promote awareness of and technical assistance regarding these provisions.

In fiscal year 2001, through a $2.5 million incremental component in the Education and Outreach Initiative (EOI), FHIP will fund the initial 2 years of a nationwide Project for Accessibility Training and Technical Assistance (PATTA), which is based upon a pilot initially funded in one region of the country using $1 million of fiscal year 1999 FHIP EOI funding. This project will have a training component and a technical assistance component. Under the training component, HUD will fund a joint housing industry and fair housing disability group partnership to develop the curricula, individual courses and expert staff to establish the continuing capacity to deliver HUD approved training on the accessibility requirements of the FH Act. This training will take the form of individual seminars for: State/local building code inspectors who approve buildings for occupancy; officials who develop building codes; architects and other building professionals who address the design and construction accessibility requirements of the FH Act; employees of private fair housing groups; and persons with disabilities.

The technical assistance component will also require a joint partnership of industry and advocacy groups�in this case to establish and oversee accessibility technical assistance centers in four broad regions covering the United States. These centers will provide case-by-case technical assistance. Considerable staff time is devoted to answering specific situation questions that arise daily from housing builders/technicians in the field. The centers would be staffed by a full-time technical assistance representative and would arrange to have architectural plans reviewed by an expert architect familiar with FH Act requirements. The representatives would answer questions about the design and construction requirements, perform on-site "as built" inspections, give technical advice on retrofitting property and on new construction, manage a resource library, and provide assistance to persons with disabilities seeking housing. PATTA will build upon a joint industry/advocacy group training and technical assistance pilot that HUD is beginning with fiscal year 1999 funding in the Northwest Hub/Region.

In fiscal year 2000, the Fair Housing Partnership was created to facilitate partnerships between FHIP organizations and FHAP agencies to focus on the fair housing needs of immigrant (especially ethnic minorities who are not English-speaking) and other underserved populations (i.e., persons protected under the FH Act who are homeless, reside in rural areas, and persons with disabilities). In fiscal year 2000, allocations of $3.5 million were assigned to FHAP and FHIP, i.e., a total of $7 million in support of the Fair Housing Partnership between government and private entities. These partnerships will foster fair housing outcomes that individual organizations could not achieve alone.

The Fair Housing Partnership was begun in fiscal year 2000, and the conditions for participating in the Partnership are described fully in the fiscal year 2000 FHIP SuperNOFA. We seek to continue the Partnership in 2001 and to use the Partnership to promote education and outreach projects concerning the accessibility provisions under the FH Act.

Fair housing testing expands beyond rental housing and into other practices covered under the Act. HUD is taking steps to insure the quality of the testing performed by fair housing groups. This expansion into new areas brings with it the need to develop methodologies and approaches that are sound and meet HUD investigatory standards. There is no cookie cutter approach to conducting fair housing tests; testing by its very nature demands flexible approaches. HUD's goal is to assure that FHIP funds support quality testing without stifling creativity.

The 2001 Budget proposes $1 million to establish a Fair Housing Academy to conduct HUD-approved training for testing and self-monitoring. The requested funding will be used to develop the curriculum and course material, identify a faculty and rent a site to carry out the training. After the establishment of the Academy, HUD expects users of this training (private fair housing organizations as well as industry representatives) to pay the cost of attending each course, including a share of the overhead. We will solicit jointly submitted proposals from a fair housing organization and university to create the academy and carryout the related activities.

Funding is needed to assist private activities which support the Department's enforcement of the FH Act, as well as efforts to increase the rate of home ownership among underserved groups. The request also includes $7.5 million for third-year funding of an innovative audit-based testing program, begun in fiscal year 1999, to measure the extent of housing discrimination nationally and in selected geographical areas.

The fiscal year 2001 funds will support the Secretary's commitment to fair housing and provide resources to implement those fair housing initiatives authorized under the Housing and Community Development (HCD) Act of 1987, as amended by the HCD Act of 1992.

The Budget also proposes a fiscal year 2001 appropriation of $21 million for the Fair Housing Assistance Program (FHAP) which is described in a separate justification. The total funding requested for both programs in fiscal year 2001 is $50 million. Together, these two programs form a national comprehensive fair housing strategy against housing discrimination based upon greater cooperation between the public and the private sectors.

The 2000 Budget estimated fiscal year 1999 obligations at $38.5 million. Actual 1999 obligations were $22.4 million. Obligations were lower than expected due to the selection of grant recipients occurring near the end of fiscal year 1999, causing the obligations to occur in fiscal year 2000. Outlays also were lower at $13.2 million, $4 million below the estimate shown in the 2000 budget reflecting slower actual rates of activity by grant recipients.

Obligations in fiscal year 2000 are expected to increase from $27 million to $40 million. The $13.1 million net increase results from a $16.1 million increase due to the obligation of carryover from 1999, less a $3 million decrease due to actual appropriations by the Congress. Outlays are expected to increase by $4.8 million to $22.8 million, reflecting the obligation of carryover from 1999.

EXPLANATION OF INCREASES AND DECREASES

The fiscal year 2001 Budget request of $29 million represents an increase of $5 million above the 2000 appropriation of $24 million. The increase for the FHIP is for a new focus on accessibility education and outreach through the PATTA, for the establishment of a fair housing Training Academy, and for an increase to the third-year funding of the audit-based testing program.

PROGRAM DESCRIPTION AND ACTIVITY

1. Legislative Authority. Section 561 of the Housing and Community Development Act of 1987, as amended, authorizes the execution of grants, contracts, or cooperative agreements with State or local government agencies, public or private nonprofit organizations, institutions or other entities that are formulating or carrying out programs to prevent or eliminate discriminatory housing practices. FHIP supports projects and activities designed to enhance compliance with the FH Act and substantially equivalent State and local laws. Section 905 of the Housing and Community Development Act of 1992 expanded the provisions of the Fair Housing Initiatives Program to build the capacity of fair housing organizations in unserved and underserved areas, to establish a national media campaign for dissemination of fair housing information, and to establish funding for celebration of National Fair Housing Month.

FHIP is a critical component in the Department's effort to address fair housing education, enforcement and compliance. The other principal component of the Department's comprehensive fair housing strategy is FHAP, authorized by the FH Act (Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988). That program, for which the Budget proposes a $21 million funding level in 2001, is described in a separate justification.

The FHIP was established by the Housing and Community Development Act of 1987 for the purpose of eliminating and preventing housing discrimination. This program provides a coordinated approach to further the purposes of the FH Act, to guarantee the rights of all people to seek housing in an open market free of discrimination, and to inform the public and the housing industry of their rights and obligations under the FH Act. FHIP also enhances and facilitates the delivery of the Department's housing and community development programs, such as HOME and Community Development Block Grants, by providing a free and open housing market.

2. Purpose. The FHIP is intended to supplement current fair housing enforcement activities of the Department. These activities include programs of enforcement, voluntary compliance, and education and outreach. FHIP provides the financial means to assist projects and activities designed to enhance compliance with the Fair Housing Law and substantially equivalent State and local laws.
3. Program Components. There are four major program components under the Fair Housing Initiatives Program. Together, these components support public and private enforcement, education and outreach activities, and capacity building for fair housing enforcement organizations.

1. The Private Enforcement Initiative. The proposed level of funding for this major component of FHIP is $9.5 million in fiscal year 2001. This major component of FHIP will consist of $6 million for multiyear projects (the same level as fiscal year 2000), plus $3.5 million for the Fair Housing Partnership enforcement projects. The $6 million will fund the following multiyear projects: (a) a project(s) to carry out testing and other investigative activities; (b) a project(s) to investigate and remedy discrimination in public and private real estate markets and real estate-related transactions through assisting victims to identify practices that denied them equal housing opportunity; and (c) a project(s) to respond to individual complaints of discrimination from home seekers.

   The $3.5 million will be set aside for private fair housing groups and other private non-profit organizations that participate in the innovative Fair Housing Partnership with FHAP agencies. This partnership initiative is proposed to focus on the fair housing education and enforcement needs of immigrant and other underserved populations by ensuring the full protection of the FH Act to persons protected by the Act who have language and cultural barriers, reside in rural areas, are homeless or have disabilities. FHAP agencies and private groups will jointly engage in strategic planning to address the fair housing enforcement needs of these populations.

2. The Education and Outreach Initiative. A funding level of $17.5 million is requested for this component of FHIP for fiscal year 2001. Under this component, resources will be used for the following specific activities: (a) a national education and outreach project with a major focus on the underserved; a national assessment of the public awareness of the Fair Housing laws and level of awareness by specific segments of the real estate industry that is consistent with HUD's commitments under its Annual Performance Plan and its Strategic Plan (such efforts will allow HUD to better target its enforcement and education and outreach activities under EOI and PEI); the Project for Accessibility Training and Technical Assistance; and the Fair Housing Academy; (b) funding for 40 regional, local and community-based projects; and (c) the continuation of the National Housing Discrimination Audit begun in fiscal year 1999, and funded again in fiscal year 2000 (funds will be allocated for the audit-based testing initiative in 20 additional communities). This audit-based testing project will establish local indices of discrimination based on race and national origin in sales and rental housing. This project will also allow development of an annual national index of discrimination. The communities selected will include metropolitan and non-metropolitan areas.

3. The Administrative Enforcement Initiative. No funds are being requested under this initiative for fiscal year 2001 because eligible applicants under the Administrative Enforcement Initiative receive support for case processing and other enforcement related activities under the Fair Housing Assistance Program.

4. The Fair Housing Organizations Initiative. The fiscal year 2001 Budget request for this component of the FHIP is $2 million. Funding will be provided to build the capacity of existing organizations to enforce the rights granted under the FH Act. The focus of funding will be to develop agencies to serve underserved protected classes. There are many areas without a public or private fair housing group within a reasonable distance or where such populations are not being effectively served by established groups. In fiscal year 2001, we will fund the creation of two fair housing agencies to better serve underserved population groups consistent with the Annual Performance Plan (APP), including those that face language and cultural barriers. The efforts to develop fair housing groups in underserved areas commenced in 1994. Those new groups made a notable difference in the knowledge that people had in those communities of their fair housing rights and responsibilities. Funds will also be provided to enable continued development of at least 10 private organizations with less than 4 years of experience in fair housing enforcement to better assist underserved groups.

4. Link to Strategic Goals and Objectives. One of the means of achieving the strategic objective: "Housing Discrimination is reduced" is to "educate protected groups, the housing industry, grantees, and project sponsors about the FH Act and the Americans with Disabilities Act." Projects related to accessibility design and construction, within the Education and Outreach Initiative, will assist FHEO in reducing housing discrimination by educating those in the business who design, build and inspect housing under the accessibility requirements of the FH Act.

The expected outcome will be an increased housing stock for persons with disabilities and a systemic change in the design and construction of housing for Americans. The 1999 study of compliance with the accessibility requirements of the FH Act can be used as a benchmark for measuring the impact of this initiative.

The Fair Housing Training Academy will assist FHEO in achieving its strategic objective of reducing housing by increasing awareness of fair housing. The Fair Housing Training Academy would also develop the standards by which all civil rights professionals and housing industry representatives will be trained, leading to better and more consistent compliance with the Title VIII requirements. The expected outcome: the Academy will provide the tools necessary to train and certify fair housing professionals and industry representatives.

All of the strategic objectives contained in the APP will be positively affected by the Fair Housing Partnership through empowering the public, encouraging networks of State and local fair housing enforcement agencies working in unison with private fair housing organizations, and encouraging a fair housing presence in places where there is little or no such presence. These are the driving forces behind ensuring that this Partnership Initiative will continue to be funded under both the FHIP and FHAP. HUD expects that an informed and educated public, housing/real estate industry, and mortgage banking and financing industry, along with aggressive and effective enforcement, will assist in affirmatively furthering fair housing where the outcome of such actions will go a long way toward eliminating barriers to accessibility in housing.

Expected Outcomes: The FHAP agencies and the FHIP groups/organizations will work together to develop programs designed to: (a) reduce the number of units that fail to meet the accessibility requirements of the FH Act and (b) deal with housing discrimination in underserved and unserved areas, thus providing the means to better serve the immigrant populations and the economically deprived that have been victims of or victimized by discriminatory housing practices.

PERFORMANCE INDICATORS

The predominant goal of the Office of Fair Housing and Equal Opportunity is the achievement of Strategic Objective 2.1: Housing Discrimination is reduced. External factors that are not within the control of the Department, yet impact the success of achieving this objective, include the following: (1) many people are not aware of their fair housing rights; and, (2) discrimination can be subtle as well as overt, which makes prevention and enforcement difficult.

Nevertheless, achievement of the below listed outcome and output indicators for the Fair Housing Initiatives Program (FHIP) should result in the reduction of housing discrimination (numbering refers to their location in the Department's Annual Performance Plan):

• 2.1.3�The share of the population with adequate awareness of fair housing law increases.
• 2.1.4�The share of newly constructed buildings that are accessible to persons with disabilities increases.
• 2.1.b�At least two new fair housing groups funded by the FHIP will serve geographic areas that are not sufficiently served by public or private fair housing enforcement organizations and that contain large concentrations of protected classes.

The efforts of the Office of Fair Housing and Equal Opportunity to promote equal housing opportunities go beyond enforcement of fair housing laws. There are activities in which FHEO is involved that are not funded within either FHIP or FHAP but do support Strategic Goal #2. One of those activities is the Analysis of Impediments to Fair Housing Choice (AI) which is a component of Fair Housing Planning within the Consolidated Plan. This activity will empower communities to implement their own strategies for promoting housing choice and coordinate them with their Consolidated Plan and community development programs. This is a cross-program activity that includes Community Planning and Development and Public and Indian Housing.

PROGRAM HIGHLIGHTS AND ACCOMPLISHMENTS