8021.1

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CHAPTER 3. NEGOTIATING VOLUNTARY AFFIRMATIVE

MARKETING PLANS AND AGREEMENTS

3-1. DEFINITIONS AND DISTINCTIONS.

a\. Agreements. Voluntary affirmative marketing agreements are

quasi-contractual instruments negotiated between HUD

Headquarters and any national association that represents some

component of the housing industry, e.g., Realtors, Realtists,

home builders and real estate license commissions. Each

agreement is designed to carry out a broad equal opportunity

program, including outreach advertising, affirmative employment,

safeguards against racial steering, etc.,\--all designed

to ensure that housing will be marketed on an equal

opportunity basis. The national association party to an

agreement then commends its adoption by member affiliates

on a State and local level, and HUD\'s relationship shifts

to the Area Office for purposes of technical assistance,

monitoring, and organizing a citizen participation component.

When approved and signed by a Regional Administrator, an

agreement permits signatory applicants for HUD housing

assistance to reference that document as meeting HUD fair

housing/equal opportunity requirements.

b\. Plans. Voluntary affirmative marketing plans are similar

to agreements in purpose, but are negotiated on a local

rather than a national level. While certain minimum plan

elements, and housing industry group and individual signatory

member responsibilities, are required to be included in

all voluntary plans, local plan development is generally

flexible. Optional provisions are negotiable and plans need

not follow a standard format. In addition, the negotiation of

voluntary plans do not exempt applicants for HUD housing

assistance from fulfilling standard EO fair housing requirements.

Voluntary plans are further distinguished from HUD\'s

individual affirmative marketing plans in that the former

involve all signatory members of an industry group in a

given area, and must be signed by the Assistant Secretary

for FHEO, while the latter are restricted to individual

project applicants for HUD assistance.

3-2. PURPOSE AND ADVANTAGES.

a\. Voluntary affirmative marketing plans and agreements promote

institutional change on an areawide basis. The Department

cannot expect complete equal housing opportunity until the

real estate and building industries, apartment house association

members, financial institutions, and local governments

demonstrate their acceptance of minority applicants and

affirmatively promote open communities.

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Page 3-1 11/79

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8021.1

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b\. There are several advantages to these voluntary plans and

agreements over individual affirmative marketing plans:

\(1\) A voluntary program may involve all key elements of

the housing industry\--i.e. brokers, apartment house

managers, and lending institutions, as well as builders.

\(2\) An industry group plan is likely to be more effective in

achieving the objectives of affirmative marketing

than an individual plan because of the areawide impact

made by the most important firms of any industry

group that simultaneously commit themselves to undertake

educational activity among their employees and the

public, spend their own funds for affirmative marketing,

and effect a continuing liaison with the minority

community through Community Housing Resource Boards.

\(3\) The industry group program applies to conventional,

as well as HUD-assisted and insured housing, and the

former constitutes over 90% of the housing market.

3-3. PROGRAM EMPHASIS. The Office of Voluntary Compliance is currently

involved with four kinds of voluntary affirmative marketing

instruments, each tailored to the particular kind of housing

industry represented: builder groups, real estate boards,

apartment house associations, and mortgage lending groups.

Each Area Office FHEO Director must decide whether to negotiate

with one group or a number of them simultaneously. The course

taken should be influenced by the \"readiness level\" of the

particular industry groups, negotiating difficulty expected,

and community \"climate.\"

3-4. SELLING POINTS. Since industry representatives may not be

interested in adopting voluntary programs unless they perceive

a direct benefit to them, HUD negotiators should continually

stress these benefits to the industry and to the community.

a\. Advantages to the housing industry:

\(1\) Avoids the necessity of builders, doing business

with HUD, filing detailed affirmative marketing plans

for each HUD project application.

\(2\) Enables builders to secure waivers from the Veterans

Administration and the Farmers Home Administration

with respect to their equal opportunity requirements.

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11/79 Page 3-2

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8021.1

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\(3\) Taps the minority and female market for housing more

efficiently than individual plans, since group

advertising is periodically employed to assure housing

availability to potential minority and female home

seekers.

\(4\) Achieves economies of scale over individual action,

since industry-group staff assist individual firms in

fulfilling their commitments under the voluntary agreement

or plan.

\(5\) Provides credit for leadership in dealing with a critical

social problem, and puts signatory firms on record in

support of fair housing and equal opportunity.

\(6\) Promotes understanding and good will among the minority

community, women\'s groups and industry groups.

\(7\) Makes it more difficult for discriminatory firms to

undercut legitimate business competition.

\(8\) Reduces the likelihood of discrimination by agents of

signatory firms.

b\. Advantages to the community:

\(1\) Reduces the prospect of blockbusting, discrimination,

and racial impaction by making housing more readily

available, and providing an outlet for minority housing

demands.

\(2\) Enhances the image of the city and should result in

reduced racial tension.

\(3\) Promotes voluntary compliance with civil rights laws,

thereby enhancing awareness of and respect for these

laws.

3-5. THE NATIONAL REALTORS AGREEMENT

a\. Background. A standardized Voluntary Affirmative Marketing

Agreement between HUD Headquarters (FHEO) and the National

Association of Realtors (NAR) was adopted by the NAR at its

annual convention in San Francisco on November 11, 1975.

(See Appendix A.) Copies of the Agreement were then

dispatched by the NAR to its 1,696 member boards across

the country, with a cover letter and explanatory booklet

(Realtors Guide to Practice Equal Opportunity in Housing)

urging endorsement of the Agreement through local HUD

Area Offices.

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Page 3-3 11/79

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8021.1

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b\. Applicability and Coverage. The Agreement applies only

to those local real estate boards and member firms that

endorse it. Subscription is not required of member firms

of a local Board that endorses the Agreement, nor does

Board adoption impose affirmative marketing obligations on

any Realtor member of the Board who has not voluntarily

and independently subscribed to the Agreement. However,

in respect to signatory firms, coverage of the Agreement

extends to all housing, however financed, sold or rented

through those firms. Every effort should be made by Area

Office FHEO Directors to bring previously executed voluntary

Realtor plans up to the standard established by the National

Agreement.

c\. Parties and Administrative Responsibility. The Agreement

operates through three official parties on a local level:

the HUD Area Office, a signatory Board of Realtors, and

signatory member firms of that Board. Interpretation and

overall direction of the Agreement is provided by HUD

Headquarters and the National Association of Realtors while,

on a local level, administrative responsibility is vested in

the Member Board\'s Equal Opportunity Committee.

d\. Key Real Estate Board Responsibilities

\(1\) Places a fair housing ad in a newspaper of general

circulation and makes an effort to secure the

HUD-approved \"Publisher\'s Notice\" in the local press and

on television. Suggested ads are contained in Appendix

\"F\" of the Affirmative Marketing Handbook, prepared

by the NAR with HUD endorsement, and distributed to

all local Boards of Realtors and HUD Field Offices.

\(2\) Provides educational materials and training courses for

member Realtors pertaining to their responsibilities

under fair housing laws and this Agreement.

\(3\) Disseminates to member firms the HUD/NAR-approved

suggested office procedures and techniques designed

to prevent discrimination. These are contained in the

NAR Affirmative Marketing Handbook, pages 43-56.

\(4\) Urges minority brokers to join the local Board of Realtors.

\(5\) Sponsors outreach and training programs to attract and

qualify minority brokers and salespersons. The

controlling word is \"sponsor\" rather than \"conduct.\"

\(6\) Monitors progress of the Agreement through the Board\'s

EO Committee.

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11/79 Page 3-4

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8021.1

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\(7\) Assesses progress of the Agreement at least semi-annually

with HUD and a Community Housing Resource Board (CHRB).

\(8\) Pays for administrative costs. Section VI of the

Agreement does not require a local Board to subsidize the

operation of a Community Housing Resources Board,

although it may do so if it chooses. CHRB activity is

eligible for funding under Community Development Block

Grant Regulation 570.206(c). To secure such

funding, application must be made to the county or

municipal agency designated to administer the CDBG

program.

e\. Responsibilities of Signatory Realtor Firms

\(1\) Place Equal Opportunity logo or slogan in classified

ads of 6 inches or longer, except when that page contains

the \"Publishers Notice.\"

\(2\) Place EO logo or slogan in all brochures.

\(3\) Circulate in-house information on the Agreement and

the Federal Fair Housing Law.

\(4\) Display the Fair Housing Poster in all places of

business, including model homes.

\(5\) Recruit minority employees to be considered for vacancies

as they occur.

\(6\) Adopt office procedures, suggested by HUD and the NAR,

which are designed to ensure against discrimination.

While adoption of these procedures is not required of

signatory firms, failure to provide some effective

safeguards against racial steering\--which these procedures

were primarily designed to prevent\--could be construed

as lack of commitment by the signatory firm in question.

That problem should be referred by HUD and/or the CHRB

to the Board\'s Equal Opportunity Committee with the

expectation that the particular firm either respond or

terminate its participation in the program. Should this

become an endemic problem with broker signatories to an

Agreement, the Agreement should be referred to the

Assistant Secretary for possible termination.

\(7\) Advise homesellers, by means of pamphlet, of legal

responsibility not to violate applicable fair housing

laws.

\(8\) Monitor the above listed affirmative marketing practices.

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Page 3-5 11/79

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8021.1

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f\. Adoption by State Association of Realtors. State Association

adoption of the Agreement should be encouraged as part of its

leadership role with Member Boards within the State. In

addition, a State Association serves, in effect, as the Member

Board for those Realtors located in unassigned territory, not

located within the jurisdiction of a local Board of Realtors.

Hence, a \"rural\" Realtor in unassigned territory is able to

subscribe to the Agreement only if it has been adopted by the

State Association. In rural states lacking a local Board

structure, a signatory State Association has obligations under

the Agreement similar to those of a Member Board, such as

administration, monitoring, displaying of posters, providing

materials and training, and advertising in a newspaper that

has state-wide circulation. HUD would have responsibility for

organizing a state-wide CHRB (for example, a state human

rights agency could function as a nucleus in the organization

of a state-wide CHRB). Under these circumstances, Realtor

firm signatories to a State Association Agreement have the

same obligations as Realtor firm signatories to a Member

Board Agreement.

g\. HUD Area Office Responsibilities

\(1\) Solicits endorsement of the Agreement by real estate

boards in the metropolitan areas of local office

jurisdiction. Endorsements should appear for each

Board separately on the signature page of a copy of the

Agreement. The Agreement requires execution in

triplicate by representatives of the Board, the HUD Area

Manager, the Regional Administrator and the Director

for Regional Fair Housing and Equal Opportunity.

Additional signed copies should not be requested of a

local Board.

\(2\) In soliciting local Board endorsement of the Agreement,

HUD officials may not require terms or conditions other

than those approved by the National Association of

Realtors and HUD Headquarters (FHEO), as contained in

the National Agreement. In the event that a local

Board should prefer to negotiate its own agreement with

HUD that is at variance with the National Agreement,

HUD representatives must refuse to sign anything less

comprehensive than the National Agreement. Moreover,

such Board officials should be advised that the NAR

will terminate its errors and omissions liability

insurance coverage for Boards that endorse a deviant

agreement.

\(3\) Organizes a Community Housing Resource Board (CHRB)

per 3-5h of this Handbook.

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11/79 Page 3-6

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8021.1

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\(4\) Monitors and evaluates the Agreement per Chapter 4

of this Handbook.

\(5\) Becomes familiar with NAR instructions for implementing

the Agreement and other Realtor material on Fair Housing

Two primary sources of Realtor material are Realtors Guide

to Practice Equal Opportunity in Housing and the NAR\'s

Affirmative Marketing Handbook.

\(6\) It is the local real estate Board\'s responsibility to

secure all Realtor fair housing posters and documents

from the National Association of Realtors, 430 North

Michigan Avenue, Chicago, Illinois 60611.

\(7\) Exempts any Realtor signatory of this Agreement from the

requirement of completing Form HUD-9556 (Joint HUD-VA

Nondiscrimination Certification) if he/she desires to

participate in the sale of HUD or VA owned properties.

This exemption information should be provided to HUD\'s

Housing Management Division and the local Veterans

Administration Office. However, in addition to fulfilling

the commitments of the Voluntary Realtors Agreement,

a signatory Realtor recipient of HUD financial subsidy/

insurance is required to file monthly occupancy reports

with HUD on Form(s) HUD 935.1 (Monthly Sales Report) and/or

HUD 935.4 (Monthly Rental Report), as applicable.

\(8\) Accepts requests from local Boards and CHRBs for technical

assistance, conducts and participates in workshops, and

works closely with CHRBs and Boards until they understand

their functions and have begun effective cooperation.

Assistance should be requested from the Regional Office

and Headquarters, as needed.

h\. Community Housing Resources Board (CHRB)

\(1\) Following a real estate Board\'s decision to adopt the

Agreement, the first major task of a local HUD Office

is to organize a Community Housing Resources Board

(CHRB), consisting of a cross section of representatives

of community organizations throughout the metropolitan

area that have a demonstrated interest in fair housing

and equal opportunity. This should be done in consultation

with whatever local human rights agencies, women\'s

groups, and civil rights/fair housing organizations

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8021.1

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are functioning in the area. Recommendations for

organizational representation - one from each organization

\- should be solicited from the chief elected

official of each organization. The local real estate

Board should be included in that representation.

\(2\) The CHRB is an essential component to any voluntary

plan or agreement. It is organized by local HUD FHEO

staff to: (a) maximize communication between the

housing industry group(s) involved and the minority

and women\'s groups of the particular community; and

\(b\) enhance the prospect of implementation of industry

group commitments. The first objective requires

broad minority and fair housing group representation

on the CHRB. The second objective requires the most

influential community representation possible, e.g.,

real estate board, Chamber of Commerce, Mayor\'s Office,

League of Women Voters, local bar association, mortgage

lending institutions, etc.

\(3\) Joint meetings, referred to in the Agreement, should be

held at least quarterly in order to maximize the

prospect for success in attaining the above stated

objectives. Indeed, monthly meetings would be

desirable in the initial stages of agreement or plan

implementation.

\(4\) Appointments to a CHRB should be made for a one-year

term, renewable annually at the discretion of HUD\'s

FHEO Director. The constructive participation of a

current appointee in the work of the CHRB should be

considered prior to reappointment or replacement.

If necessary, an Area Office FHEO Director may also

dissolve a CHRB, but only with the full concurrence

of the Director of Regional FHEO and the Assistant

Secretary for FHEO.

\(5\) A list of CHRB designees, and the organizations which

they represent should be forwarded through the Director

of Regional FHEO to the Assistant Secretary for Fair

Housing and Equal Opportunity, Attention: Director,

Office of Voluntary Compliance. News releases relative

to CHRB appointment should be handled at the Area

Office level.

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11/79 Page 3-8

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8021.1

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\(6\) The CHRB is a third party monitoring and advisory

body. Minutes should be taken for each meeting

of the CHRB and the real estate Board. Progress

under the Agreement may well be conditioned upon the

prestige of the CHRB and its interest in building a

better community. HUD representatives should seek to

sustain a cooperative and conciliatory working

environment between the Equal Opportunity

Committee of the Board and the CHRB.

\(7\) Civil rights/fair housing, and women\'s representatives

on the CHRB should function in direct liaison with

their organizations to assist HUD, the real estate

Board, and member firms in the affirmative recruitment

of minority and female salaried and sales employees.

The CHRB should also assist and seek to resolve relevant

problems brought to its attention by the local Board

or any of its signatory firms.

\(8\) As part of its monitoring functions (to \"assess progress\"

requires monitoring), the CHRB is expected to question

the real estate board\'s EO Committee with regard to

Board and signatory firm progress in meeting their

commitments under the Agreement. The CHRB should

also monitor housing ads for the presence of the

\"Publisher\'s Notice\", EO logo or slogan, and to review

the appropriateness with which human models are portrayed.

\(9\) Another way for the CHRB to assess progress is to

maintain a record of any audits or discrimination

complaints that their respective organizations may

have referred to HUD, other agencies, or the courts.

While HUD could not discuss the merits of complaints

in the process of investigation or conciliation at

meetings with the CHRB and the Board, the status of

such complaints could be reported, and the Board\'s ED

Committee could be apprised of the nature and extent

of the problem that exists. Moreover, the kind of

treatment accorded housing referrals made by the CHRB

should be discussed at these meetings in order to get

as complete a picture as possible of real estate

practices. However, no CHRB may undertake testing

of member brokers.

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Page 3-9 11/79

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8021.1

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i\. Evaluation, Amendment and Termination

\(1\) Section VIII of the Agreement is ambiguous in several

respects. It is here clarified (in parenthesis)

according to HUD-NAR interpretation:

\"This (nationally executed) Agreement shall be

effective for five years upon approval by the

Assistant Secretary for Fair Housing and Equal

Opportunity of HUD. During the sixty days prior

to the expiration of each year (of the locally

endorsed Agreement, as computed from the date of

the highest ranking HUD official\'s signature),

representatives of the Board, the State or local

human rights enforcement agency (if represented

on the CHRB), the Community Housing Resources

Board, and HUD will meet to evaluate the effectiveness

of the Agreement. HUD and the Board shall determine

whether the Agreement, or some modification

thereof, should be adopted for the following

year. (Readoption does not require re-execution

by HUD.) However, where an evaluation of the

Agreement at any time during its term reveals

that reasonable progress is not being made toward

achieving its objectives, the Agreement may be

modified upon mutual consent of the parties.

(Modification requires approval of the Assistant

Secretary for FHEO and will result in NAR termination

of the local Board\'s errors and omissions

insurance.) Where the parties are unable to agree

upon the terms of a modification, any party may

terminate the Agreement (although HUD may not do

so without approval of the Assistant Secretary

for FHEO).\"

j\. Reports. While there is no provision in the Agreement

that requires performance reports of Realtor signatories,

Report Form HUD 941-A is used to assist HUD FHEO staff in

the annual evaluation (See Appendix C). This annual

evaluation report is required by HUD Headquarters for each

and every Agreement that has been in effect for six months

or longer.

k\. Record of Signatories. While Section 1-C of the Agreement

has been waived by both HUD and the NAR, the Agreement

contemplates that the Board will maintain a current list

of all Realtors who have individually subscribed to it.

The NAR Affirmative Marketing Handbook (p. 20) states,

with HUD concurrence: \"This list shall be made available

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11/79 Page 3-10

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8021.1

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to responsible officials of HUD upon reasonable request.

It should be made available to parties other than HUD only

on such terms and conditions as are mutually agreed upon

by HUD and the Board.\"

l\. Effectuating the Realtors Agreement on a Local Level.

Listed below are procedural steps that might be used

by local HUD FHEO personnel to implement the Voluntary

Realtors Agreement:

\(1\) Contact the State Association of Realtors

(Executive Vice President) having professional

jurisdiction over local real estate boards to be

solicited for Agreement execution, and seek his/

her assistance in approaching those local Boards.

\(2\) Arrange informal lunch with the Executive

Director/Executive Vice President, or President

of the local real estate board. Bring copy of

the Agreement together with copy of the NAR

Affirmative Marketing Handbook. If conversation

is affirmative, go to Step 3.

\(3\) Meet with special committee of the Board (EO

Committee may already exist). Bring sufficient

copies of the Agreement together with NAR

Affirmative Marketing Handbook. Cover the

Agreement paragraph by paragraph. Note any

objections or controversy in interpretation.

Try to clarify using NAR Handbook. Advise the

Committee that you will respond to outstanding

questions by mail.

\(4\) Consult with Regional Office or Headquarters

(Voluntary Compliance) to clarify items noted

above. Write a letter to the EO Committee

Chairperson, copy to the Executive Vice President,

responding to items of concern, and request that

the Committee give a favorable recommendation to

the Executive Board.

\(5\) Accept invitations by the Board to attend

meetings concerning the Agreement. Use this

Handbook and NAR Handbook as guides. Should an

impasse be reached concerning some difficulty,

suggest that the problem be referred to the National

Office of the NAR in Chicago, Attn: Director of

Member Activities.

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Page 3-11 11/79

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8021.1

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\(6\) Indicate desire to attend Board meeting at

which final decision will be made on adoption

of the Agreement. If the decision is favorable,

immediately request a committee of the Board to

work with you in setting up a press conference

and signing ceremony within two weeks.

\(7\) Press Conference and Signing Ceremony. Secure

approval of the Board for the invitations,

announcement and press release. Invitations

should go to key persons in the area who are

involved with civil rights, politics, the

building industry and the news media.

\(8\) Consider Organizing a County-Wide CHRB. In

counties where a number of Agreements have

been executed or are anticipated, consider the

feasibility of organizing a county-wide CHRB

that could relate to all of the signatory

Boards in that county. Business might be

facilitated by having representatives of the

several Boards meet simultaneously with the

one CHRB.

\(9\) Select CHRB Members. CHRB members should be

recruited, not as individuals, but as group

representatives. Thus, initial contact should

be with the head of the agency or organization

desired to be represented. The agency head

should be supplied with a copy of the Agreement

and its implications should be fully discussed.

The obligations of CHRB representation should

also be discussed, and a request made to

formally designate one person to represent that

agency on the CHRB.

\(10\) Contact the nominated representative to be

assured that he/she fully understands the

implications of the nomination. If there is

a question as to the nominee\'s willingness to

undertake the responsibilities involved, go

back to the agency head to discuss the

possibility of a substitute nomination. Once

the designation is firm, a letter of

appointment should be sent to the representative

accompanied by: (1) a copy of the April 1976

HUD Challenge magazine article, \"The Precedent-Setting

Agreement Between HUD and NAR;\" (2) a

copy of the Agreement; (3) a list of members

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11/79 Page 3-12

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8021.1

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of the local real estate Board\'s EO Committee;

\(4\) a list of other CHRB members, and (5) the

HUD Handbook for Community Housing Resource

Boards.

\(11\) Convene first meeting of the CHRB by mail with

telephone reminder. This meeting should be

coordinated with the Chairman of the Board\'s

EO Committee and should be held at the local

Board Office with members of its EO Committee.

The meeting should be informal, and should be

well publicized in advance, inviting media

representation, and announcing CHRB membership.

The meeting should facilitate representative

group members meeting each other and the agenda

should focus on the modus operandi of the CHRB,

and a general discussion of the Agreement.

\(12\) Convene second meeting of the CHRB by mail with

telephone reminder. This meeting should be a

working session with CHRB members, Chairperson

of the EO Committee and FHEO Director. Elect

officers of the CHRB, determine meeting place

and time, etc. Clarify that future meetings of

the CHRB will be convened by its Chairperson,

and should include the Chairperson of the Board\'s

EO Committee. Possible meeting places: Chamber

of Commerce, FHEO Office, Board Office, local

human rights agency office. Provision should be

made for taking, transcribing, and mailing minutes

of all CHRB meetings. If other offices/agencies

cannot undertake this service on a voluntary

basis, the local HUD Office should do so.

m\. Miscellaneous Inquiries and Information

\(1\) Is any member firm party to an Agreement immune from

complaint investigation?

In no way is any exemption or immunity from compliance

with Title VIII or any other fair housing law granted

or implied by the Agreement.

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Page 3-13 11/79

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8021.1

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\(2\) Should HUD authorize a local Board\'s Equal Opportunity

Committee to investigate Title VIII complaints

against member firms?

No. HUD may not delegate its investigative authority

to any nongovernmental body.

\(3\) Are prospective renters, as distinct from home buyers,

covered by an Agreement?

Section II-A includes all services offered by a

REALTOR firm to prospective home buyers and renters.

\(4\) Does the Freedom of Information Act apply to meetings

or records of the Board\'s Equal Opportunity

Committee?

The Freedom of Information Act does not apply to

meetings or records of nongovernmental bodies,

notwithstanding the fact that HUD may attend meetings

of such a body.

\(5\) Can interested parties, who are not members of the

Community Housing Resource Board, the Real Estate

Board, or HUD attend meetings of the Board\'s Equal

Opportunity Committee?

Not without unanimous consent of the officially

designated representatives of the above three groups,

since those meetings are intended as working sessions,

not public forums.

\(6\) Can the local Real Estate Board be represented on

the Community Housing Resource Board?

Yes. Indeed, it is necessary that a Board

representative participate in CHRB activities in

order to facilitate communication between the two

groups. Other members of a CHRB cannot veto Board

representation because the responsibility for

appointment resides in HUD.

\(7\) Should HUD provide technical assistance to the

Community Housing Resource Board as well as the

local Real Estate Board?

Yes, to the extent of the Department\'s available resources.

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11/79 Page 3-14

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8021.1

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\(8\) Since a Realtor signatory to the Agreement is

exempt from filing an individual affirmative

marketing plan when selling HUD acquired

properties, what are the requirements if the

Realtor is also a builder or developer who

applies for a HUD-insured loan?

A builder/developer applicant for HUD assistance,

who is also a Realtor signatory to a Voluntary

Realtors Agreement, is exempt from filing an

individual affirmative marketing plan; but as

a builder/developer, he/she must submit monthly

occupancy reports directly to the HUD Area Office.

Form(s) HUD-935.1 and/or HUD-935.4 should be used for

that purpose.

\(9\) What does I-C of the Agreement mean in respect to

\"non-signatory members of any classification?\"

It means that member firms or brokers of a local

Board that did not sign an Agreement at the time of

its endorsement by the Board may subsequently sign

the Agreement. However, subsequent to the printing

of the Agreement, HUD Headquarters and the NAR

decided that HUD approval need not be required to

enable non-signatory firms to sign at a later date.

Non-Realtors are not eligible to sign the Agreement.

\(10\) How will the Board\'s ED Committee monitor progress

of the program if there are no reporting requirements?

The Agreement calls for an assessment of progress

at least semi-annually (V-A-4). We do not care

how a local Board assesses progress, but we do

want to know what that progress is. If a Board\'s

EO Committee cannot assess progress, then it should

be given an opportunity to develop whatever methods

it deems necessary to provide that assessment.

The risk in formally modifying the Agreement on

a local level is having the \"errors and omissions\"

insurance with NAR terminated. However, if an

adequate assessment of progress becomes impossible

to obtain, the HUD Area Office should recommend

termination of the Agreement to the Assistant Secretary for

Fair Housing and Equal Opportunity who has sole HUD

authority to terminate.

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Page 3-15 11/79

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8021.1

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\(11\) What is the role of a State or local human rights

agency referred to in Section VIII? Is it a party

to the Agreement?

No. It is important to involve the local office of

a State and/or municipal human rights agency in the

local Agreement, but this should be done through

representation on the Community Housing Resource Board.

\(12\) Do member firms of a local real estate Board have to

sign the Agreement?

Signatures are not required of member firms of a local

Board as a condition of executing the Agreement on a

local level, and adoption of the Agreement by a local

Board does not impose affirmative marketing obligations

on any Realtor member who has not voluntarily and

independently subscribed to the Agreement. However, the

provision for member firm commitments in the Agreement

does anticipate eventual member subscription. Obviously,

an Agreement that continues to have only Board endorsement

is less likely to be implemented in all of its aspects.

Hence, after the Agreement has been executed, the

Board should be encouraged to secure endorsement of

the Agreement by member firms. Repeated failure by

the Board to secure member firm endorsement should be

reported to the Assistant Secretary for FHEO, Attn:

Office of Voluntary Compliance, who will work with

the NAR to resolve this problem.

3-6. AGREEMENT WITH NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

\- (REALTISTS)

a\. Background. Selecting as its theme \"Democracy in Housing,\"

the National Association of Real Estate Brokers was

organized forty years ago because (1) Blacks faced severe

discrimination in all aspects of housing in America, and

\(2\) those Blacks who were licensed real estate practitioners

were excluded from membership in the major trade association

(then the National Association of Real Estate Boards) and

thus denied an opportunity to provide their clients with trade

association services. In order to promote cooperation

between the NAR and NAREB and to expand and extend the

range of minority sales experience and responsibility, HUD

undertook the negotiation of a voluntary affirmative

marketing agreement with NAREB patterned closely upon

the former\'s agreement with the NAR. (See Appendix E.)

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11/79 Page 3-16

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8021.1

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b\. Similarity to Realtors Agreement. The Realtist Agreement

should be implemented, monitored and evaluated in the

same way and on the same Voluntary Affirmative Marketing

Agreement Report (Form HUD-941A) as the Realtors

Agreement. (When using Form HUD 941A to report on a

Realtist Agreement, write Realtist at the top of the

form and substitute the word \"majority\" for \"minority\"

whenever the latter appears.) Moreover, provisions of the

Realtist Agreement that are substantially equivalent to

provisions of the Realtors Agreement should be interpreted

and applied similarly.

c\. Points of Special Interpretation. Notwithstanding the

similarities attended to above, there are a few points

in the Realtist Agreement that warrant exposition.

\(1\) Advertising. Section IV-A-1 stipulates that \"some

of this advertising should promote the use of minority

brokers in other than racially changing areas or areas

of minority concentration.\" Perhaps the best way to

indicate availability to sell in the general housing

market area is to include advertising in newspapers

of general circulation and by direct mail to target

groups.

\(2\) Special Outreach. Section IV-A-6 commits member

signatories to \"\...make similar efforts to inform the

majority white population of available housing

opportunities located in areas of minority concentration.\"

This might be accomplished, not only through

ads in newspapers of general circulation, but also by

providing listing information to selected church

groups and interracial organizations.

3-7. THE NATIONAL HOME BUILDERS AGREEMENT

a\. Background. The genesis of HUD\'s Voluntary Affirmative

Marketing Agreement with the National Association of Home

Builders (NAHB) is found in the Dallas Plan of 1972, which

was conceived as a means of extending the effect of HUD\'s

affirmative marketing regulations to all housing developed

by major builders in the Dallas metropolitan area, including

conventionally financed housing not covered by HUD regulations.

It was also believed that a program of self-regulation

by the home building industry would be more effective

in extending equal housing opportunity than a plethora

of individual plans pertaining to a multitude of subdivision

applications that vastly exceed HUD\'s capability to

effectively monitor. (Voluntary Home Builders Agreement found

in Appendix F.)

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Page 3-17 11/79

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8021.1

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b\. Applicability and Coverage. The National Home Builders

Agreement is not self-executing. It has significance only

to the extent that it is endorsed by builder groups on a

local level, and its provisions apply only to those signatory

groups and member builders. The Agreement covers all

housing, however financed, developed, built or sold by

those signatories. In consideration thereof, parties are

exempt from the need to file individual affirmative

marketing plans when applying for HUD-insured loans or

subsidies.

c\. Parties and Administrative Responsibility. Parties to the

agreement consist of HUD and a local Home Builder Association.

The Agreement is administered by the local Builder

Group, with support from the nearest HUD FHEO Director,

and with citizen participation through a Community Housing

Leadership Board. Many provisions of the Agreement pertaining

to local Builder Group responsibilities and individual

firm commitments are similar to those found in the Realtors

Agreement. The remainder of this section of the Handbook

will focus on the significant points of difference between

the two Agreements.

d\. Builder Agreement Permits Deviation. Unlike the Realtors

Agreement, with respect to which the National Association

maintains close scrutiny over content and operation

because of uniform liability insurance requirements, the

Home Builders Agreement allows for flexibility at a local

level, provided that any deviant agreement is at least as

comprehensive in its commitments as the national model,

and is approved by the Assistant Secretary for FHEO.

Similarly, the amendment process is easier to effect than

the Realtors Agreement, although both require Regional

and Headquarters approval.

e\. Recommended Supplementary Features to Include in Deviant

Agreements. The sales and rentals reporting procedure

in the model agreement could definitely be improved.

Section 3-C and 3-E enable builders to report their

occupancy data either directly to HUD or to the Builder

Groups on a quarterly basis. The latter then total those

data for all reporting builders and forward the results

to HUD. In the latter alternative, the Department has

no record of individual firm sales or rentals and cannot

bring corrective action to bear in time to prevent racial

selection practices. Moreover, a tardy quarterly report

to the Builder Group from a builder, and a tardy report

from the Builder Group to HUD, could easily result in a

four to five month lag from the time of occupancy to HUD

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11/79 Page 3-18

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8021.1

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receipt of a report, and even then the report would not

identify the builders. Thus, in negotiating Voluntary

Home Builder Agreements, HUD FHEO staff should seek to

amend the national model by securing monthly occupancy

reports directly from the individual builder signatories.

If that is unacceptable to the Builder Group, HUD FHEO

staff should seek a two-month report directly from the

builders. Should that be unacceptable, staff should

strive to get a breakdown of individual firms in the Builder

Group\'s quarterly reports on form(s) HUD 935.1 and/or HUD

935.4. Other desirable features to seek for inclusion in

a Voluntary Builders Agreement are:

\(1\) The appointment of an Equal Opportunity Officer for

each signatory firm with responsibility for

implementing the Agreement in respect to that firm.

\(2\) Provision for affirmative employment practices in

the hiring and training of minority and female

construction, sales and clerical personnel.

\(3\) Elaboration of Builder Group monitoring procedures

vis-a-vis individual builder signatories.

f\. Community Housing Leadership Board (CHLB). There are two

significant differences between the Community Housing

Resource Board as described in the Realtors Agreement, and

the Community Housing Leadership Board (CHLB) of the Home

Builders Agreement. The first lies in the responsibility

of membership appointment which, in the Builders Agreement,

resides with the Builder Group. The second difference is

the absence of explicit reference to the need for minority

and fair housing group representation on the CHLB.

Local HUD Office Equal Opportunity Directors can exercise

a veto over persons who, in their judgment, do not have

\"a substantial interest in housing and equal opportunity.\"

Alternatively, and preferably, local HUD offices should

require additional members to ensure that minority and

women\'s interests are adequately represented.

g\. Relationship of CHRB to CHLB. Wherever possible, HUD

staff should urge that the same citizen group involved in

a Realtors Agreement (CHRB) be requested to function as a

CHLB for the Builders Agreement.

h\. Reports. Irrespective of the reporting frequency decided

upon, Form(s) HUD 935.1 (single family sales) and/or HUD 935.4

(multi-family rentals), should be used as appropriate. Although

these forms are designed for monthly use until 95% of

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Page 3-19 11/79

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8021.1

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rent-up or sales, they would be suitable for a longer

report period when used in conjunction with a Voluntary

Home Builders Agreement. In any case, the reporting

period/frequency should be specified in the Agreement,

and in cover instructions to builder signatories. In

addition to these occupancy reports, the Builder Group

is required to provide HUD, at least quarterly, with a

description of all actions taken by the Group to implement

provisions of the Agreement. These reports should

be considered when developing the HUD annual evaluation

required for all voluntary affirmative marketing agreements.

Data supplied by a Builder Group in its quarterly

occupancy reports should be supplemented through HUD/FHEO

contacts with the Builder Groups\' EO Officer, and through

inquiries addressed at meetings of the Builder Groups\'

Equal Opportunity Committee.

i\. Termination. While the Realtors Agreement on a local

level may be terminated by either HUD, through the

Assistant Secretary for Fair Housing and Equal

Opportunity, or by a local real estate board, the

Builders Agreement may not be terminated unilaterally by

HUD without providing the Builder Group with an

opportunity for a hearing and determination of the facts.

Section VI of the Agreement controls Section X in this

respect.

j\. Miscellaneous Points of Clarification

\(1\) In Section 3-A-2, what is meant by stating that

\"inclusion of the slogan or logo is not necessary

in any classified advertisement where there exists

a Publisher\'s Notice?\"

If the particular page of advertising contains the

HUD-approved Publisher\'s Notice, signatory builders

are exempt from the need to print the HUD logo or

slogan in their advertising on that page.

\(2\) In Section 3-C-1, clarify the statement that \"The

HUD Area Office shall supply Builder Group an

identification of the minority groups whose housing

opportunities the parties seek to increase, by cost

and kind of housing.\"

What is here sought are estimates of housing demand

potential by minority groups whose access to housing

has been restricted by reason of discrimination.

The best procedure to follow in making such estimates

is set forth in a HUD booklet entitled, \"A Model

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11/79 Page 3-20

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8021.1

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Procedure for Analyzing the Minority Housing Market.\"

All HUD economists should have access to this booklet,

which was prepared by the Washington Center for

Metropolitan Studies and published in 1975. If expertise

is unavailable to undertake such an analysis for your

local community, then a rough estimate of cost

qualification could be made by establishing gross family

income categories for each minority group (assuming

that contemporary income data can be obtained),

establishing the number of minority families within

each income category, and assuming that each group

of families can afford housing that costs within 25%

of the income limits established. If neither the

expertise nor contemporary demographic and income

data is available, HUD personnel should not attempt

to guess at the number and kinds of housing units

affordable by any minority group. There should be

no problem, however, in identifying those minority

groups whose housing opportunities the parties seek

to increase.

3-8. AGREEMENT BETWEEN HUD AND THE NATIONAL ASSOCIATION OF REAL

ESTATE LICENSE LAW OFFICIALS (NARELLO)

a\. Background. There are many real estate brokers who are

not affiliated with either the National Association of

Realtors or the National Association of Real Estate Brokers.

However, all persons seeking to market residential real

property are licensed by the State as a prerequisite for

doing business. Thus, in order to impact upon the marketing

activities of unaffiliated real estate practitioners,

HUD, on November 9, 1977, entered into an Affirmative Fair

Housing Marketing Agreement with the National Association

of Real Estate License Law Officials (NARELLO). NARELLO

represents all of the State real estate licensing agencies

in the country.

b\. Major Provisions (See Appendix G.)

\(1\) A requirement for each real estate licensee and

candidate for a license to receive education in

fair housing principles and practices.

\(2\) Testing on fair housing principles and practices in

real estate licensing examinations.

\(3\) Disciplinary action against licensees who violate

fair housing laws.

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Page 3-21 11/79

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8021.1

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\(4\) Affirmative efforts to assist minorities and women to

enter the real estate business.

\(5\) Cooperation between HUD and the responsible licensing

authority.

c\. Obtaining New Agreements. Each Director, Office of Regional

FHEO, should identify the state real estate licensing

agencies in his or her Region that have not adopted the

Affirmative Fair Housing Agreement. The Monthly Status

Report Check List may be consulted for this purpose. The

Director should contact the chief administrative officer

of the real estate licensing agency in non-adopting states.

The identity, address and telephone number of such persons

may be obtained from Headquarters\' Office of Voluntary

Compliance. In making contact, the Director should

determine what measures, if any, the agency has taken in

regard to the Agreement. If Agreement adoption has not

been formally considered by the agency, the Director should

request that the agency do so at its next business meeting.

If Agreement adoption has been formally rejected by the

agency, the Director should request that the agency reconsider

its position and should offer to meet with the agency

to discuss the Agreement. If the agency rejects Agreement

adoption and the Director believes that the rejection is

final, the Assistant Secretary for FHEO should be so advised.

d\. Adoption Procedures. Agreement adoption is evidenced by

execution on the signatory page by appropriate licensing

agency officials, the Regional Administrator and the

Assistant Secretary for FHEO. Procedurally, this may occur

in any of several ways.

\(1\) The agency may adopt the Agreement, execute three

signed copies, and forward them to the Regional

Office or a Field Office within the Region. In that

event, the signature of the Regional Administrator

should be added and the three signed copies be

sent to Headquarters. The Assistant Secretary for

Fair Housing and Equal Opportunity will sign them and

return two of the copies to the Regional Office.

A completed agreement should then be presented to

the agency.

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11/79 Page 3-22

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8021.1

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\(2\) The agency may adopt the Agreement, execute the

signature page and forward it directly to

Headquarters. In that event, the Assistant Secretary

for Fair Housing and Equal Opportunity will sign

three copies of the Agreement and forward them to

the appropriate Regional Office. The signature of

the Regional Administrator should be added and a

completed Agreement should then be presented to

the agency. A copy of the completed Agreement should

be returned to the Director, Office of Voluntary

Compliance, for Headquarters file.

e\. Agreement Presentation. The presentation of an Agreement

to a licensing agency pursuant to any of the above procedures

may be accomplished by mail or through a personal

visit by Regional Office FHEO personnel. The latter method

is preferable because a presentation ceremony affords HUD

and the agency an excellent opportunity to impress both

the real estate industry and the public with the fair

housing posture being taken. Recent presentation ceremonies

have involved state governors and the news media.

The Director, Office of Voluntary Compliance, can render

advice on arranging a ceremony and attendant publicity.

In all cases a press release should be issued. The

Assistant Secretary for FHEO will send a letter thanking

the agency for its commitment to fair housing.

f\. Recordkeeping. The existence of Affirmative Fair Housing

Agreements will be recorded by the Regional Office on its

Monthly Status Report Check List.

g\. Implementation. Following are steps to implement the

Affirmative Fair Housing Agreement:

\(1\) Field Offices may be requested by a licensing agency

to render technical advice or assistance in planning

or carrying out Agreement provisions. Such requests

may be fulfilled at the field level or forwarded to

the Director, Office of Voluntary Compliance, for

handling.

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Page 3-23 11/79

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8021.1

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\(2\) Licensing agencies, upon request, normally advise

representatives of other governmental agencies

whether a particular firm or individual has a

current valid license. These agencies also entertain

complaints alleging violation of state license

requirements and standards. In the event that a

finding of a violation of Title VIII has been made by

HUD, it would be appropriate for the Director, Office

of Regional FHEO, to request consideration by the

licensing agency as to whether it should undertake

administrative action against the licensee in question.

Further cooperation may be initiated with the advice

and prior consent of the Director, Fair Housing Enforcement

and Section 3 Compliance.

\(3\) Agency requests for literature, instructional materials

and the like (available per Agreement sub-paragraph

VI.B.) should be referred to the Director, Office of

Voluntary Compliance, for handling.

h\. NARELLO Affirmative Fair Housing Agreement Committee. A

new committee has been formed by NARELLO to represent that

organization\'s interests in having members adopt the

Affirmative Fair Housing Agreement. The Affirmative Fair

Housing Agreement Committee will monitor HUD\'s progress in

obtaining Agreement adoption and will assist HUD with those

members that have responded negatively or have not responded

to the Department\'s adoption solicitations. The Committee

will apply its expertise in licensing matters to clarify

issues that may have prevented Agreement adoption in various

states. The Committee may also deal with problems of

implementation. Unless otherwise instructed by the Assistant

Secretary for FHEO, contact with the Committee will be

channelled through the Director, Office of Voluntary Compliance.

i\. Monitoring. The Director, Office of Regional FHEO, is

responsible for monitoring each Affirmative Fair Housing

Agreement executed within his/her region. Monitoring

shall be accomplished through personal contact with an

appropriate official or officials of a licensing agency.

A copy of an internal use format appropriate for

monitoring the NARELLO Agreement is included as Appendix

M to this Handbook. The monitoring report shall be

completed by Regional Office FHEO personnel using information

gained through agency contact and a copy shall be

forwarded to the Office of Voluntary Compliance upon

completion. Monitoring shall be accomplished within six

months following the execution of an Agreement and annually

thereafter within 30 days of the anniversary of the

execution of the Agreement.

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11/79 Page 3-24

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8021.1

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3-9. MORTGAGE LENDER PLANS

a\. Background. Title VIII of the Civil Rights Act of 1968

prohibits discrimination by any lending institution engaged

in making commercial real estate loans against any applicant

for housing assistance because of that applicant\'s race,

religion, color, sex or national origin. The Act further

requires that \"All executive departments and agencies shall

administer their programs and activities relating to housing

and urban development in a manner affirmatively to further

the purposes of this title and to cooperate with the

Secretary of HUD to further such purposes.\" In cooperation

with the Assistant Secretary for Fair Housing and Equal

Opportunity, those Federal regulatory agencies responsible

for supervising the activities of real estate lending

institutions have already prescribed minimum procedures

\-- a housing logotype poster, a notice of nondiscrimination,

and advertising guidelines\--to be used by banks and savings

and loan associations under their authority. 1/

b\. Applicability. The types of lending institutions suitable

for developing Voluntary Affirmative Lending Plans and the

names of their respective regulatory agencies, are set

forth in tabular form below.

Type of Lending Institution Regulatory Agency

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Federally-insured Savings Office of Community Investment,

and Loan Associations Federal Home Loan Bank Board,

1700 G St., N.W., Washington,

20552, Phone: 202-377-6000

National Banks (Any bank Consumer Examination Division

with \"National\" in its name) Comptroller of the Currency

Washington, D.C. 20219

Phone: 202-447-1600

State member commercial Office of Consumer Affairs,

banks of the Federal Federal Reserve System,

Reserve System 20th and C St., N.W.

Washington, D.C. 20551

Phone: 202-452-3401

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1/ See Federal Financial Regulatory Agencies: Nondiscrimination by

Supervised Lending Institutions in Making Loans for Housing

Purposes, HUD Bulletin, December 1972.

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Page 3-25 11/79

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8021.1

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Mutual Savings Banks and Office of Consumer Affairs

Commercial Banks, other and Civil Rights

than National Banks or Federal Deposit Insurance

State member banks of the Corp, 550 17th St., N.W.

Federal Reserve System Washington, D.C. 20429

Phone: 202-389-4427

Federal Land Banks and Farm Credit Administration

Federal Land Bank Associations; 490 L\'Enfant Plaza, S.W.

Federal Intermediate Washington, D.C. 20578

Credit Banks, & Production Phone: 202-755-2195

Credit Association

Type of Lending Institution Regulatory Agency

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State Savings and Loan State Banking Authorities

Association, State

Chartered Commercial Banks,

a few Mutual Savings Banks

Mortgage Bankers HUD and the VA insofar as

Federally-insured mortgages

are involved

Insurance Companies State Insurance Commissions

c\. Major Parties to a Voluntary Lenders Plan

\(1\) HUD, through Area Managers with jurisdiction

over the metropolitan area in question. Sign off

required by Regional Administrator and Assistant

Secretary for FHEO.

\(2\) The members of a \"Lenders Group\", consisting of as

many lending institutions from the area as possible.

Area bank representatives may already meet on a regular

basis for clearinghouse purposes. Such a clearinghouse

could function as the nucleus for a lenders group to

include, in addition, insurance companies and mortgage

bankers.

d\. Rationale. These Plans are designed to accomplish two

objectives: (1) to develop a condition in which all people

within a given market area, without regard to race, color,

religion, sex, national origin, or marital status, will be

afforded the same opportunity to apply for and, if qualified,

receive commercial real estate and home improvement loans;

and (2) to advance equal employment opportunity within firms

signatory to the Plan.

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11/79 Page 3-26

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8021.1

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e\. Minimum Elements to Include in the Plan

\(1\) Specification of parties: HUD and as many lending

institutions in a given area as can be convened,

collectively identified as the Lender Group.

\(2\) Statement of objectives: Define equal lending

opportunity for housing purposes and equal employment

opportunity in lending institutions.

\(3\) Scope: Include the terms and conditions of all loans

for the purpose of purchasing, constructing, improving,

repairing, or maintaining a dwelling.

\(4\) Application Process: Each signatory to the plan

will develop written, standardized loan application

criteria, subject to review by HUD; make these

criteria available to all loan applicants; and make

loans based solely on an applicant\'s ability to fulfill

the criteria.

\(5\) Advertising:

\(a\) Each lender signatory will advertise the fact

that it is an equal lending institution. Those

firms that have not already done so will place

\"Equal Housing Lender\" posters in conspicuous

places throughout their offices.

\(b\) The Lender Group will develop information on fair

lending practices which will be offered monthly

to consumer groups of the area, such information

to be prepared bilingually, if warranted by the

ethnic composition of the area.

\(c\) The Lender Group will conduct an advertising campaign,

to include newspaper ads declaring member signatories

to be fair lending establishments; will prepare and

distribute flyers, newsletters, and brochures for

distribution to fair housing and consumer groups;

and will place advertisements in minority newspapers

and publications. Each member signatory advertisement,

newsletter, and pamphlet should display the

equal housing lender logotype.

\(6\) Employment: Each lender signatory will undertake

affirmative employment practices to assure equal opportunity

in employment, promotions, placements, layoffs,

terminations, and benefits for all employees, and shall, in

addition, undertake sensitivity training for all employees

who deal with minority and women loan applicants.

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Page 3-27 11/79

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8021.1

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\(7\) Equal Opportunity Officer: Each lender signatory will

designate an Equal Opportunity Officer to carry out

the provisions of the plan.

\(8\) Reporting: A reporting system to indicate problems

and progress will be developed, that is mutually

satisfactory to the signatories.

\(9\) Equal Opportunity Committee: The Lender Group will

organize an Equal Opportunity Committee to consist of

the Equal Opportunity Officer from each firm. The

Committee will supervise and monitor the plan on

behalf of signatory members, prepare and conduct

training in respect to the plan, and function in a

liaison capacity with HUD. Indeed, such a Committee,

if organized promptly, could function as the Lender

Group\'s negotiating team to develop the plan.

f\. Optional Elements to Seek in the Plan

\(1\) Each lender signatory will provide minority and female

owned businesses an opportunity to bid on printing,

office supplies, sign painting, advertising, and other

services needed by lender signatories.

\(2\) The Lender Group, through its Equal Opportunity Committee,

will develop a \"Code of Fair Mortgage Lending Practices\"

and commend its endorsement by each member firm. (See \"Flag

Program\" developed by Mortgage Bankers of America.

Appendix I.)

\(3\) The Equal Opportunity Committee will constitute a

loan review committee whenever loan disapproval warrants.

\(4\) The Lender Group will adopt, and advocate for endorsement

by each member firm, a general policy of investment and

reinvestment in the area immediate to the location of

each lending institution, and adopt and advocate a policy

of correspondent reviews to police loan practices in

other areas.

\(5\) The Lender Group will adopt, and advocate for endorsement

by each member firm, equitable foreclosure procedures.

(e.g., Borrowers should be assured that foreclosure

procedures will not be used to negate affirmative

lending procedures.)

\(6\) Affirmative disclosure reporting under the Home Mortgage

Disclosure Act of 1975 requires lenders to post notice

of loans made by census tract and zip code. This

information should be made available to the loan review

committee.

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11/79 Page 3-28

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8021.1

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\(7\) A Community Housing Resource Board, organized by HUD,

will meet at least quarterly with the Equal Opportunity

Committee to assess program progress and to facilitate

communication with minority groups in the area.

\(g\) Model Lenders Plan. Attached as Appendix H is a model

lenders plan which included the optimum provisions of an

ideal plan.

3-10. APARTMENT MANAGERS AND OWNERS PLANS

a\. Specific Rationale. Apartment housing councils, whose

members develop and manage rental units, are found in

metropolitan areas throughout the United States. Because

of their influence over management policies, these groups

of apartment owners and managers have a tremendous potential

for reducing housing discrimination.

b\. Initiating a Plan. Discussion with metropolitan housing

associations should be initiated by the Area Office

FHEO Director.

c\. Major Parties to a Plan

\(1\) HUD Area Manager, Regional Administrator and

Assistant Secretary for FHEO.

\(2\) The local Apartment Association, through signature of

its officers, and signatory members of the Association.

d\. Minimum Elements to Include in a Plan

\(1\) Specification of parties to the plan, referring

to apartment house management firms collectively as

the Housing Association.

\(2\) Statement of objectives and definition of equal

housing opportunity and related goals.

\(3\) Scope to include all apartments developed and rented

by signatory management firms to be covered by the plan.

\(4\) Provision for monitoring of the plan.

\(5\) Organization of a Community Housing Resources Board

by HUD, consisting of representatives of the City and

community organizations throughout the metropolitan

area having a substantial interest in fair housing

and equal opportunity, to meet at least quarterly

to advise and assist in monitoring the plan.

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Page 3-29 11/79

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8021.1

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e\. Necessary Apartment Association Responsibilities

\(1\) Organize an Equal Opportunity Committee, consisting

of an Equal Opportunity Officer from each affiliate

member of the Association, that will:

\(a\) supervise and monitor the plan on

behalf of the Association;

\(b\) develop training for employees of affiliate

members to acquaint them with the purpose

and provisions of the plan; and

\(c\) meet at least quarterly with the Community

Housing Resource Board.

\(2\) Commend adoption of the plan to its constituent members.

f\. Necessary Individual Member Responsibilities

\(1\) Affirmatively advertise and market all available

rental units using the HUD equal opportunity logo.

\(2\) Provide training for all staff members to acquaint

them with the purpose and provisions of the plan.

\(3\) Display equal housing opportunity posters where

they are clearly visible to all applicants.

\(4\) Designate an Equal Opportunity Officer to represent

management in supervising the development and

implementation of the aforementioned tasks, and to

participate in a periodic review of the plan with

HUD.

g\. Optional Additional Responsibilities

\(1\) The Association will develop disciplinary procedures

and/or remedial actions in respect to any of its

members found guilty of an illegal discriminatory act.

\(2\) Member signatories will develop an affirmative employment

program to assure equal opportunity in the recruitment,

hiring, and terms and conditions of employment for all

staff.

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11/79 Page 3-30

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8021.1

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\(3\) The Association will develop a standard application form

containing eligibility requisites for renting an

apartment, with written and verbal instructions to rental

staff that the criteria be uniformly applied to all

applicants. All applicants should be requested to

fill out a form, to be time and date stamped,

irrespective of immediate vacancy. All forms should

be retained by the rental office for not less than

one year and be made available to HUD upon its review

of the plan. Application forms should make provision

for the applicant\'s name, address, telephone number,

color, and sex, and indicate the reason for any

applicant\'s rejection. 1/

h\. Model Apartment Association Plan. Attached as Appendix J

is a model plan which includes the optimum provisions of

an ideal plan.

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1/ In those states that do not prohibit the identification

of applicants by color, the HUD negotiator should seek to

have applicants identified on the application as per HUD

racial/ethnic/sex categories.

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