PART 108—COMPLIANCE PROCEDURES FOR AFFIRMATIVE FAIR HOUSING MARKETING Authority: 42 U.S.C. 3608, 3535(d); E.O. 11063, 27 FR 11527, 3 CFR, 1958-1963 Comp., p. 652; E.O. 12892, 59 FR 2939, 3 CFR, 1994 Comp., p. 849. Source: 44 FR 47013, Aug. 9, 1979, unless otherwise noted. § 108.1 Purpose and application. (a) The primary purpose of this regulation is to establish procedures for determining whether or not an applicant's actions are in compliance with its approved Affirmative Fair Housing Marketing (AFHM) plan, AFHM Regulation (24 CFR 200.600), and AFHM requirements in Departmental programs. (b) These regulations apply to all applicants for participation in subsidized and unsubsidized housing programs administered by the Department of Housing and Urban Development and to all other persons subject to Affirmative Fair Housing Marketing requirements in Department programs. (c) The term applicant (1) All persons whose applications are approved for development or rehabilitation of: Subdivisions; multifamily projects; manufactured home parks of five or more lots, units or spaces; or dwelling units, when the applicant's participation in FHA housing programs has exceeded, or would thereby exceed, development of five or more such dwelling units during the year preceding the application, except that there shall not be included in a determination of the number of dwelling units developed or rehabilitated by an applicant, those in which a single family dwelling is constructed or rehabilitated for occupancy by a mortgagor on property owned by the mortgagor and in which the applicant had no interest prior to entering into the contract for construction or rehabilitation. For the purposes of this definition, a person remains an applicant (2) All other persons subject to AFHM requirements in Departmental programs. (d) The term person (e) The term monitoring office includes any office within HUD designated by HUD to act as a monitoring office. As necessary, HUD will designate specific offices within HUD to act as monitoring offices through a notice published in the Federal Register. (f) The term civil rights/compliance reviewing office Federal Register. [44 FR 47013, Aug. 9, 1979, as amended at 50 FR 9268, Mar. 7, 1985; 64 FR 44095, Aug. 12, 1999] § 108.5 Authority. The regulations in this part are issued pursuant to the authority to issue regulations granted to the Secretary by section 7(d) of the Department of Housing and Urban Development Act of 1965, 42 U.S.C. 3535(d). They implement the functions, powers, and duties imposed on the Secretary by Executive Order 11063, 27 FR 11527 and title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3608. § 108.15 Pre-occupancy conference. Applicants shall submit a Notification of Intent to Begin Marketing to the monitoring office no later than 90 days prior to engaging in sales or rental marketing activities. Upon receipt of the Notification of Intent to Begin Marketing from the applicant, the monitoring office shall review any previously approved plan and may schedule a pre-occupancy conference. Such pre-occupancy conference shall be held prior to initiation of sales or rental marketing activities. At this conference, the previously approved AFHM plan shall be reviewed with the applicant to determine if the plan, and/or its proposed implementation, requires modification previous to initiation of marketing in order to achieve the objectives of the AFHM regulation and the plan. (Approved by the Office of Management and Budget under control number 2535-0027) [44 FR 47013, Aug. 9, 1979, as amended at 48 FR 20903, May 10, 1983; 64 FR 44095, Aug. 12, 1999] § 108.20 Monitoring office responsibility for monitoring plans and reports. (a) Submission of documentation. (b) Monitoring of AFHM plan. (c) Review of applicant's reports. (d) Failure of applicant to file documentation. [64 FR 44096, Aug. 12, 1999] § 108.21 Civil rights/compliance reviewing office compliance responsibility. The civil rights/compliance reviewing office shall be responsible for determining whether an applicant's actions are in apparent compliance with its approved AFHM plan, the AFHM regulations, and this part and for determining changes or modifications necessary in the plan after initiation of marketing. [64 FR 44096, Aug. 12, 1999] § 108.25 Compliance meeting. (a) Scheduling meeting. (b) Notice of Compliance Meeting. (c) Applicant data required. (1) Copies or scripts of all advertising in the Standard Metropolitan Statistical Area (SMSA) or housing market area, as appropriate, including newspaper, radio and television advertising, and a photograph of any sale or rental sign at the site of construction; (2) Copies of brochures and other printed material used in connection with sales or rentals; (3) Evidence of outreach to community organizations; (4) Any other evidence of affirmative outreach to groups which are not likely to apply for the subject housing; (5) Evidence of instructions to employees with respect to company policy of nondiscrimination in housing; (6) Description of training conducted with sales/rental staff; (7) Evidence of nondiscriminatory hiring and recruiting policies for staff engaged in the sale or rental of properties, and data by race and sex of the composition of the staff; (8) Copies of applications and waiting lists of prospective buyers or renters maintained by applicant; (9) Copies of Sign-in Lists maintained on site for prospective buyers and renters who are shown the facility; (10) Copies of the selection and screening criteria; (11) Copies of relevant lease or sales agreements; (12) Any other information which documents efforts to comply with an approved plan. (d) Preparation for the compliance meeting. (e) Resolution of matters. (f) Determination of compliance. (g) Determination of possible noncompliance. (h) Failure of applicant to attend the meeting. [44 FR 47013, Aug. 9, 1979, as amended at 64 FR 44096, Aug. 12, 1999] § 108.35 Complaints. Individuals and private and public entities may file complaints alleging violations of the AFHM regulations or an approved AFHM plan with any monitoring office, civil rights/compliance reviewing office, or with the Assistant Secretary for FH&EO. Complaints will be referred to the civil rights/compliance reviewing office. Where there is an allegation of a violation of title VIII the complaint also will be processed under part 105. [44 FR 47013, Aug. 9, 1979, as amended at 64 FR 44096, Aug. 12, 1999] § 108.40 Compliance reviews. (a) General. (b) Initiation of compliance reviews. (c) Nature of compliance reviews. (1) Applicant's sales and rental practices, including practices in soliciting buyers and tenants, determining eligibility, selecting and rejecting buyers and renters, and in concluding sales and rental transactions. (2) Programs to attract minority and majority buyers and renters regardless of sex, including: (i) Use of advertising media, brochures, and pamphlets; (ii) Conformance with both the Department's Fair Housing Poster Regulation (24 CFR part 110) and the Advertising Guidelines for Fair Housing (37 FR 6700) and any revisions thereto. (3) Data relating to: (i) The size and location of units; (ii) Services provided; (iii) Sales and/or rental price ranges; (iv) The race and sex of buyers and/or renters; (v) Race and sex of staff engaged in sale or rental of dwellings. (4) Other matters relating to the marketing or sales of dwellings under HUD affirmative marketing requirements, the AFMH Plan and this part. [44 FR 47013, Aug. 9, 1979, as amended at 64 FR 44096, Aug. 12, 1999] § 108.45 Compliance report. Following a compliance review, a report shall be prepared promptly and the Assistant Secretary for FH&EO shall make a finding of compliance or noncompliance. If it is found that the applicant is in compliance, all parties concerned shall be notified of the findings. Whenever a finding of noncompliance is made pursuant to this part, the report shall list specifically the violations found. The applicant shall be sent a copy of the report by certified mail, return receipt requested, together with a notice that, if the matter cannot be resolved within ten days of receipt of the Notice, the matter will be referred to the Assistant Secretary for FH&EO to make a determination as to whether actions will be initiated for the imposition of sanctions. [44 FR 47013, Aug. 9, 1979, as amended at 64 FR 44097, Aug. 12, 1999] § 108.50 Sanctions. Applicants failing to comply with the requirements of these regulations, the AFHM regulations, or an AFHM plan will make themselves liable to sanctions authorized by law, regulations, agreements, rules, or policies governing the program pursuant to which the application was made, including, but not limited to, denial of further participation in Departmental programs and referral to the Department of Justice for suit by the United States for injunctive or other appropriate relief.